Forex - A negative sum game for losers
The regulators are finally starting to get the whole picture of the extreme harm to society the forex industry causes.
According to data drawn from the CNMVs latest study, from January 1st, 2015 to September 30th, 2016, 82% of investors who entered into CFD transactions made a loss. The total losses of 30,656 investors, including transaction costs, spreads and fees, came to 142 million (the aggregate results were losses of 52 million plus 90 million in fees, spreads and other costs).
Some European Union countries have proposed and in some cases even implemented a range of initiatives to limit the leverage of investments in these products or restrict their marketing by placing constraints on advertising or remote sales via call centres. CNMV stated they didnt rule this option out.
More an more countries in Europe impose regulations that put limits to marketing, leverage, promotion etc. RoW will follow soon.
95% of all businesses fail within a few years.
Most of businesses failure means also huge debts.
A positive thing about "stocks/fx/futures/options/commodities Trading" is that traders who fail end up without money in their trading account, but no debts.
Trading is and always will be a ZERO SUM game. When you have completely understood the meaning of that phrase you will see that your expectations for trading (as evidenced by you above diatribe) are completely misplaced. Think of it this way... There is a reason the call this activity "SPECULATING". Put you big boy panties on and deal with it.
Who cares if average Joe doesn't know how to trade? He is old enough to make his on decisions. People also gamble in casinos and we all know probabilities are working against them. People lose money in Forex not because system is rigged, but because most retail traders don't want to learn boring math and statistics behind money and risk management. They want thrill, excitement and have get rich quickly attitude, that's why they get ruined. No one asks them self why hedge funds and investment banks are employing top math, IT and financial graduates for their trading desks, if trading is so easy. Trading is not a rocket science, average person can learn it, but you have to learn. I'm in the game for eight years and I'm still learning.
It's a "less than zero" sum game.
Retail forex is a tax on people who are bad at finances
Lottery is a tax on people who are bad at math.
The above mentioned posted info is no diatribe, it is the reality of forex.
Trading is business just like any other business. If you want to become successful attorney you have to go to law school, take bar exam and then practice law for years if not decades before having any chance of becoming good lawyer. Why would such competitive field as financial markets be any different? People have an illusion of easy money waiting for them around the corner. If it were so easy, we would have hundreds of millionaires on this forum by now.
- what you are still learning after 8 years, that is really improving your profitablity, beside adapting to market conditions?
- how your learning curve looks like and how much improvement you expect to unlock by additional learning
- what you have learned in regards to max leverage applied and minimizing trading costs?
By the way.....
I care if there is a huge gap between retail forex brokers marketing claims and what average Joe actually can achieve based on hard evidence.
I care if people are getting ripped of in an epic scale based on false promises, spread widening, plattform freezes, manipulation or outright fraud.
FX is like any other market.
I've seen it all.
If you trade like a sucker, you will burn like a sucker.
And the reality is:
99.99% are suckers.
Maybe it's worth to refresh the collective memory.....just one example.....
The Swiss SNB Tsunami........15.01.2015
Retail forex with typical leverage up to 100 and in some cases even up to 1000 (at very shady brokers) can financially ruin you within the blink of an eye, if you trade overleveraged. The counterparties of retail traders are interested to provide retail traders as much leverage as possible. It gives them a mathematical edge.
You can find attorneys in the phone book. There are no "millionaire retail forex traders" in the phone book.
.. and I know what your reply will be, I will just give you the answer now:
Absence of evidence is not proof of existence.
as you surely know, only a small percentage of "traders" survive in the long run, you are not one of them, accept it and move on with your life.
stop wasting yours and other people time
They luckily find themselves on the right side of a big move.
... and 2 weeks later, it's all gone (:
[quote=HudithePfupf;9706033]Goals: 80% of all day traders quit within the first two years.
Which says it all, no need to read the rest really. Dreams of becoming millionaires shattered, they find consolation by convincing themselves ( and usually trying to convince others ) that trading is a fool's errand. This gives trading the widely perceived, though wrongly perceived reputation as a slaughter house for gamblers, which in many ways it is for those with the wrong approach. Only those who have been the distance and done the mileage, know otherwise, and they are relatively few.
It's a good business.
The risk is less than the risk of building and operating a factory, establishing retail chain stores, plus almost every single business activity, even of that of opening a grocery store.
I <3 trading
So is every other business or job, the greatest companies may survive even 100 years, but they all fail sooner or later (a bad market recession or depression, a war, a new particular taxation or regluation, whatever, and they are gone).
Human life itself do have a survival rate of 0% (everybody die sooner or later).
If you like make money (or try to make money) with trading, you can and should do it.
If you don't like it, don't do it.
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