I was thinking how the Apex predators a.k.a banks,HFs trade.These guys edges relies solely on information.Forex is decentralized and big banks trading desks have the orderflow of their big clients like ECB,BOJ,BIS etc and basically front-run these orders as its not illegal in fx.
HFTs make use of low fees and speed not available to retail guys to trade the tiny market imbalances.Macro traders eg. Soros have contacts in high places and trade off the fundamental information.
It seems its the retail crowd that trades off 'probabilities' taking one way bets.This is like shooting in the dark hoping to make consistent hits.Sure some guys can do it and based on statistics about 2% are longterm profitable. http://www.google.com/url?sa=t&rct=j...47008514,d.d2k
http://www.google.com/url?sa=t&rct=j...47008514,d.d2k
In the old days locals in the pit knew who was trading what,they could tell how the market would behave by the tone of the screams,they could actually see the volume coming in,their trading costs were low and they could trade the spread,these edges are no longer in existence since electronic trading took over.
The point I want to make is, do you truly believe you can beat the market in the long run? Are you that good as to be a world champion? I know you think you're that damn good!!!
Now try to outsprint Usain Bolt,outplay Lebron James,outbox Mayweather...yes you champ!!!
HFTs make use of low fees and speed not available to retail guys to trade the tiny market imbalances.Macro traders eg. Soros have contacts in high places and trade off the fundamental information.
It seems its the retail crowd that trades off 'probabilities' taking one way bets.This is like shooting in the dark hoping to make consistent hits.Sure some guys can do it and based on statistics about 2% are longterm profitable. http://www.google.com/url?sa=t&rct=j...47008514,d.d2k
http://www.google.com/url?sa=t&rct=j...47008514,d.d2k
In the old days locals in the pit knew who was trading what,they could tell how the market would behave by the tone of the screams,they could actually see the volume coming in,their trading costs were low and they could trade the spread,these edges are no longer in existence since electronic trading took over.
The point I want to make is, do you truly believe you can beat the market in the long run? Are you that good as to be a world champion? I know you think you're that damn good!!!
Now try to outsprint Usain Bolt,outplay Lebron James,outbox Mayweather...yes you champ!!!
wo-yoy! wo-yoy! wo-yoy! wo-yoi! wo-yoy-yoy-yoy!