interestingly,recently i had lunch with a guy that used to be FD of a Swedish car manufacturer many years ago. In conversation he mentioned that he did his currency changes same day, same time each week! wish i had been trading then!
The following user says Thank You to MajorMagnuM for this post:
For anyone who denies market positions are not a gambling proposition: without risk, no reward.
Have only been practicing on account since March, but from what I have witnessed, Forex allows institutional money to spike price on news, hundreds of pips in both directions, taking out your stop loss, only to come back to the center of gravity.
I have been experimenting positions without a stop loss and results have improved. Even with a 200 catastrophic stop loss in place, they have taken me out only to return to where they were trading prior to news release. Unregulated market=risk=gambling!
With any market or instrument, get to know it before you trade it. Each has it's own personality and if you are not 50/50 on your predictions, continue practice. Then it's time to cut your losses short and let your winners run...where I am working hard disciplining myself...UUUGGGHHH. So easy to preach...many times over hard to do.
The more I study this game, the more I am intrigued.
In my opinion, forex isn't in itself any more gambling-related than any other kind of trading.
There are "traders" who will treat anything as "gambling".
Forex just attracts more than its share of them because of the market opening hours, ready availability of huge leverage, and the promotional activities of so-called "brokers" who are actually market-makers trading against their own clients. It isn't intrinsically the fact that it's the forex market that makes it gambling: it's more the customers it happens for various reasons to attract.
The following 2 users say Thank You to Tymbeline for this post:
In everything you do you have to know best practices and work with the best. True in the fx trading business it's a little hard to know at first who is a pro and who would just lead you to loses and dead ends but if you're patient and won't rush into things then you'll get yours. I'm just starting with fx trading myself and it is very confusing but i'm sure with the help of forums and blogs like this i'll get to the good people.
Brokers (particularly of the counterparty market-maker type) come and go all the time. I don't know "how many" there are. I doubt whether this information is even definitively collated anywhere.
Here's the point, though: there are genuine brokers (who execute trades in the interbank market on behalf of customers who can't themselves deal there, just like stockbrokers buy shares for their clients) and they have no incentive for their clients to lose, because they're not involved in the transaction other than carrying it out in exchange for a fee.
On the contrary, if anything, they prefer their clients to win, because that way they remain clients and generate future commission income for the broker.
And then there are the majority of firms advertising themselves online as "forex brokers" who are actually counterparty market-makers, hold the other sides of their own clients' positions and are effectively trading against them - while holding their funds, and to a large degree also making up both the rules and the prices.
We all decide for ourselves which type of broker to use.
The following user says Thank You to Tymbeline for this post:
TracyRichards and SamuelClark, most forums will take you in circles in other words they are not really run or followed by pros, any one serious with forex should begin with babypips for introduction and then fxstreet which is a collection of forex pros. All are unique in their own right, just find one that appeals to you.
The following user says Thank You to kaan for this post: