Item of the month - October 2009

[FXDM]

Well... in my opinion most of systems/EAs are not profitable because of their strategy/logic... in other words they are not profitable because of themselves. Don't blame to brokers or market...

Why and How? Because most of them have one way to trades, even a lot of them have NO way (scam systems/EAs) while the market has 3 ways (at least) to performs.

FXDM

 

[D-Trader]

What I think.

Brokers earning from spreads defference and the money you loose. Broker are not going against you but you are entering not at the right moment. You are loosin money collected by broker this extra bonus to broker from you. If you enter at the right moment you will win and beoker earned from spread. You are the only who let give the broker bonus.

If you are good experienced and well educated to trade and you make no mistake will win the trade every time. But the question "who will bell the cat".

Many traders thinks that the signal is on his side and enter the trade. I read an forex article someone wrote. "Signal is what you are seeing not what you are thinking".

Don't blame others if you are deciding yourself. (Nobody force you to enter the trade how long you click with mouse with your own finger).

 

[ericcyc]

Do brokerage firms make their money by collecting on the spread on each and every tra

I am sure there are many full time traders out there that were ex-brokers. Wonder what these ex-brokers have to say on this

 

[clem699]

This issue is very important and based on the diverse opinion,it clearly shows that forex is indeed very complex.It may be true that brokers are there to make money from you but any thing is the level of exposure and experience of the trader.In as much as there are people out there making money from the market,then any other person can as well do same but the question should be HOW PREPARED IS HE,WHAT INFORMATION DOES HE POSSESSES?A trader is as good as the information at his disposal.

Secondly,one good way to know if your broker is cheating on you is to compare his quotes with others and if there is wild margin difference,then you have a good case against such broker.If no much difference,then i think the trader should accept full responsibility for losses that may occur from such trades.

Thirdly,i am one of those who don't trust EAs,except your own personal one which should actually be reviewed regularly for good performance and i know that the owner will likely not reveal it to any other person.I do not believe in purchase of EAs or robots because it will likely fail in the long run.

 

[PistolDave]

I don't want anyone to misunderstand me. I don't really think most brokers are really out to cheat anyone out of their rightful profits that come from a trade you win on. They don't need to. They profit immensely by simply taking the opposite side of your trade. That is, if you are buying, then they are selling to you. They control the spread so they ALWAYS make money on that. They also know you as a small trader will be overleveraged and undercapitalized so you won't be able to withstand the small moves against you and you will lose more often than a large trader. So it would be in their interest to take the opposite side of small positions and hedge the large trades into the IB market, since the large positions are likely to be larger and better funded traders who would not so easily shaken out by the "noise" of the market.

It's simple to understand: If most small traders lose their account within a very short time (true) then it either comes from overtrading and is eat up by the spread, or they are overleveraged with tight stops and are losing their accounts bit by bit. If your broker takes the opposite side of your trades it is a win/win situation for them overall. Like I said earlier, they will milk you dry and send you crying home to mommie if you trade the same way as most small traders do. There are effective ways to trade. Learn them well and You MIGHT make it. Might.

Be patient, take time to learn the right ways, and don't think you can turn $1000 into a million anytime soon no matter what the hype says.

Caveat Emptor.

PD