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What's the inspiration left for retail trading?

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  • First Post: Jan 19, 2015 9:44am Jan 19, 2015 9:44am
With the black swan event .... the following question arises what confidence and inspiration retailers are left with to continue ?

1. With 3 Trillion turn over it boasts of good liquidity .... Lack of liquidity is being termed of the issue .. no reason that this cannot happen again....
2. STOP was supposed to be fail safe .. but no ...this functions as a market order only and may not be filled based on liquidity
3. Some of the entities are re-correcting the filled price ( the early SL's to a 2000-4000 Pip slippage
4. Losses are citied due to Client insolvency - who gained on the other end - not known


i know it is individual to decide to trade or not ... but what inspiration could one have in taking up or continuing in Retail trading.......
Quoting connect_ananth
but what inspiration could one have in taking up or continuing in Retail trading.......
//-----

hey ananth..... because the reward far far out weighs the risk...... many of us did not trade the chf due to the risk..... and yes, we absolutely stood a strong chance of large losses even though our accounts were in no way affected by the chf......

but why should we not continue doing something so profitable for us...... will i make changes to better protect myself in the future...... dang straight..... began those changes on the 15 'th.......

the thought of quitting has never entered my mind......h
to trade and code, keep both simple... no call to impress....h
Hi Hayseed ...

The reason i opened this thread is to collectively understand the protections available and one needs to be aware of when you meant Future do u mean "Futures" Market ...

Offcourse the other question is what is the success factor in your profitability ?
and this is why I trade IG and NADEX, dont have to worry about this stuff

because they are their own exchange and its way easier to make more............for me!!
Learn, a forex trader must, unlearn and relearn he will.
a trading account needs to be treated as a business.. that makes you the CEO.. CFO.. and who ever is in charge of risk assesment. I also never traded any CHF crosses.. I just hated the whole concept of a pegged currency.. .. that turned out to be a good intuition. Other things people can do to help control their risk.. is to always have a stop loss in place.. this will take care of the 99.9% of the events. and a person can also control their leverage.. there is no one holding a gun to your head forcing you to take the full 100:1.
what FXCM could do now.. is that next time someone decides to peg their currency.. they can tell them to beat it.. and say they refuse to make trades in a pegged Currency.. They already halted trading in the Ruble.. cause of volatility.. they should have done it to the CHF crosses also.. cause of "pegged intervention".. would have saved them 270 million bucks. Next time some central bank decides to peg.. I hope, brokers do tell em to F off.. and refuse to create liquidity in those currencies.
Quoting connect_ananth
Hi Hayseed ... The reason i opened this thread is to collectively understand the protections available and one needs to be aware of when you meant Future do u mean "Futures" Market ... Offcourse the other question is what is the success factor in your profitability ?
//-----

hey ananth..... wasn't thinking of 'Futures' market when mentioning 'future', but now that you point it out , you are correct......

by future, i meant from this point forward..... on thursday and friday i withdrew a little over 30k and opened a etrade 'futures' account and began opening a citi fx pro account..... i will keep my fxcm account also......

success factor == my willingness to silently attempt to do what so many loudly insist can't be done......h
to trade and code, keep both simple... no call to impress....h
Quoting Pooks
a trading account needs to be treated as a business.. that makes you the CEO.. CFO.. and who ever is in charge of risk assesment. I also never traded any CHF crosses.. I just hated the whole concept of a pegged currency.. .. that turned out to be a good intuition. Other things people can do to help control their risk.. is to always have a stop loss in place.. this will take care of the 99.9% of the events. and a person can also control their leverage.. there is no one holding a gun to your head forcing you to take the full 100:1.
Pooks .


Agreed but given that Forex is not regulated there is no guarantee that under the pretext of Liquidity non availability another run of similar sort can happen with non-pegged currencies too ,,, let us say due to war or terriorist attack ( rumour...)


Exactly so should retailers remove their greed and trade closer to 1: 1 ,1:5 ,,,and have smaller profits ....so even if you have these scenarios and in the wrong end one will be in a position to repay ....or do they have a different choice ,,
I think that Flash Crash of 2010 in the United States Equity markets regulated by the FTC or whoever .. is proof that it does not matter if its regulated or not. So your point that not being regulated is a negative is invalid.
Quoting Pooks
I think that Flash Crash of 2010 in the United States Equity markets regulated by the FTC or whoever .. is proof that it does not matter if its regulated or not. So your point that not being regulated is a negative is invalid.
I would assume you dont know what IG and NADEX is ?
Learn, a forex trader must, unlearn and relearn he will.
Actually, there is nothing worse than the Unites States super regulated Stock market.. they have "flash crashes" every single day.. with all the GAPS.. and HALTED TRADING..

for example the FXCM stock..

that dropped from $27 to $1. .was HALTED.. isn't that basically exactly what happened to the currency market.. anyone who owned that stock.. got screwed by the regulators who halted trading.. and let it open at a much much lower price. Pretty much also wiping out any accounts that might had been on margin, even if the Margin in the USA is 4:1 tops.
I personally don't care about your IG and NADEX advertisements. I think you guys are just spamming up the boards.
Quoting Pooks
I think that Flash Crash of 2010 in the United States Equity markets regulated by the FTC or whoever .. is proof that it does not matter if its regulated or not. So your point that not being regulated is a negative is invalid.

You make a point ,,, so regulated or non-regulated is not a point .. as a business this is a Systemic risk that one need to be aware of even though could be 0.001% in the greed to make quick riches ....
Quoting COGSx86
{quote} I would assume you dont know what IG and NADEX is ?

COGS ...


Binary trading for sure would have capped the loss but how reliable is Binary trading ,...have heard there is heavy amount of price rigging and have experienced it few times too.....
Quoting Pooks
Actually, there is nothing worse than the Unites States super regulated Stock market.. they have "flash crashes" every single day.. with all the GAPS.. and HALTED TRADING.. for example the FXCM stock.. that dropped from $27 to $1. .was HALTED.. isn't that basically exactly what happened to the currency market.. anyone who owned that stock.. got screwed by the regulators who halted trading.. and let it open at a much much lower price. Pretty much also wiping out any accounts that might had been on margin, even if the Margin in the USA is 4:1 tops....

For me halting just helps to bring some sanity into market and stabilize the price discovery .... So .. Technically Sudden absence of Liquidity can happen any time for any instrument and due to what ever reason .. and simply that is the risk that one has to be aware when one clicks the BuY or SELL button...
Quoting COGSx86
and this is why I trade IG and NADEX, dont have to worry about this stuff because they are their own exchange and its way easier to make more............for me!!
I was considering Nadex also, that's if my broker gets me back the money in my account that I closed Friday. They say they weren't effected substantially by the Swiss Franc mess and that they are operating as normal but time will tell. Funny part is they E-mailed all their US clients today saying that do to regulatory reasons they can no longer accept US clients and they have an arrangement with Tallinex to transfer all US client's accounts to them by 1/30/2015 and if you don't want that to happen please close your account. Needless to say I'm on pins and needles at the moment until I see that money in my banking account!
What is the lesson learnt from the SNB move? From now on ALL retail traders will heed the risks and treat Fx as a business.

Well, until the next batch come along!
One against the many.
Quoting FxSpartan
What is the lesson learnt from the SNB move? From now on ALL retail traders will heed the risks and treat Fx as a business. Well, until the next batch come along!
Well , the only issue is that it was lucrative that anyone with an id proof and 25$ to be trading .....in forex and will 1000 of brokers serving and luring across the globe .... did that all change in that one single day ..... what impacts does it leave with Retail forex trading and firms livelihood surrounding this ... Banks have been in this situation for ages ,, and can withstand these shocks ... but what about a ordinary man slapped around 300 K loss .... (94 is of Oanda were short CHF) ... so similar cases across the world .....
I think it can only be positive... Lets just say BROKER X.. declares bankruptcy and closes up shop.. .. those same people who ran BROKER X.. most of them will get hired for other Brokers.. or some will start their own NEW ones.. so BROKER COMPANY Y goes into existence. With more experience under their belts, and hopefully still honest intentions, COMPANY Y in theory should be superior to Company X.
Quoting Pooks
I think it can only be positive... Lets just say BROKER X.. declares bankruptcy and closes up shop.. .. those same people who ran BROKER X.. most of them will get hired for other Brokers.. or some will start their own NEW ones.. so BROKER COMPANY Y goes into existence. With more experience under their belts, and hopefully still honest intentions, COMPANY Y in theory should be superior to Company X.
Pooks ..

As a trader .. and forex as business you will select and expect the company to be good .... But if you say this episode is good ... why there is only handful FXCM, Alpari , and one NZ company went into trouble while there are 1000's of more which have not been affected so far and functional .... something to ponder about ...
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