If you trade Forex through a market maker, you really are not trading in an open market, you are taking a position against the MM. Regardless of how the MM manages their risk your trade has really no effect on the other traders. Having said that, if the profitability ratio (95%-5%) were to change drastically you may find the MM either moves to an ECN model or closes its doors.
Hypothetically; in a real market such as futures or and ECN its alot more diffucult to say what the impact would be. The reason is that of that 5% who are profitable, some are very profitable and some are barely profitable. Profitable traders will always compete with each other for what cash is available no matter how much that is. The best of the best will always make the most and the worst of the best may find, if the ratio changes, that they are not profitable anymore.
BUT, and its a big BUT, human nature does not change. Fear and greed are basic components of our psychological make-up. It can take years to deal with those issues and years more to aquire discipline. That's why its pretty easy to find a profitable trading method but extremely difficult to trade it profitably.
I very much doubt the profitability ratio will change.....ever.
Steve
Hypothetically; in a real market such as futures or and ECN its alot more diffucult to say what the impact would be. The reason is that of that 5% who are profitable, some are very profitable and some are barely profitable. Profitable traders will always compete with each other for what cash is available no matter how much that is. The best of the best will always make the most and the worst of the best may find, if the ratio changes, that they are not profitable anymore.
BUT, and its a big BUT, human nature does not change. Fear and greed are basic components of our psychological make-up. It can take years to deal with those issues and years more to aquire discipline. That's why its pretty easy to find a profitable trading method but extremely difficult to trade it profitably.
I very much doubt the profitability ratio will change.....ever.
Steve
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