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Are trading costs the main reason of losses in trading?

  • #161
  • Aug 11, 2019 12:00pm Aug 11, 2019 12:00pm
Quoting BubaYaga
{quote} You could be more selective with the trades you take and only take those which pay a positive swap
Next step is to open only trades that will be profitable =)))
  • #162
  • Aug 11, 2019 10:38pm Aug 11, 2019 10:38pm
Quoting tropical_g
{quote} So earning a rollover is a scam. What are the brokers gaining by paying you interest? for someone that's been on this forum for 7 years you really haven't learned much! this is obviously the wrong business for you if you don't understand basic rate differentials. country A has a rate of 2% country B has a rate of 0% Country A has a tighter monetary policy than country B and the cost of money is more due to the economic health of the economy. Country B has a loose monetary policy because the economy is struggling so the cost of money is free...
The broker will pad the swap to an obscene level. The usual scam is to advertise a low spread / commission, then they gouge on the swap.
Any retail forex broker worth his salt will make sure to pay as little as possible on positive swaps and to charge as much as possible on negative swaps.
They can get away with it and they do.
It's a rip off.
  • #163
  • Aug 11, 2019 10:54pm Aug 11, 2019 10:54pm
Quoting Mingary
{quote} The broker will pad the swap to an obscene level. The usual scam is to advertise a low spread / commission, then they gouge on the swap. Any retail forex broker worth his salt will make sure to pay as little as possible on positive swaps and to charge as much as possible on negative swaps. They can get away with it and they do. It's a rip off.
if you are using leverage then what do you think you are paying for the privilege? would you open a business that lends money to people and not charge them for the service? get real
  • #164
  • Edited 11:43pm Aug 11, 2019 11:10pm | Edited 11:43pm
Quoting tropical_g
{quote} if you are using leverage then what do you think you are paying for the privilege? would you open a business that lends money to people and not charge them for the service? get real
I am not saying you should not be paying for the "privilege", I am saying that the broker will screw you on the rate.
"price gouging" on the swap rate they offer their customer is common practice.
Would you go to the local loan shark to borrow money ?... I guess you would ...
  • #165
  • Aug 12, 2019 12:59am Aug 12, 2019 12:59am
Quoting Mingary
{quote} I am not saying you should not be paying for the "privilege", I am saying that the broker will screw you on the rate. "price gouging" on the swap rate they offer their customer is common practice. Would you go to the local loan shark to borrow money ?... I guess you would ...
The brokers don't screw you the info is clear on each of their websites on how much you will be charged. Seems to me that you just jump in without doing your due diligence and then moan about it with blanket statements about the industry. Stop trading immediately and take up a hobby because you are never going to make it in this industry.
  • #166
  • Aug 12, 2019 1:09am Aug 12, 2019 1:09am
Quoting tropical_g
{quote} The brokers don't screw you the info is clear on each of their websites on how much you will be charged. Seems to me that you just jump in without doing your due diligence and then moan about it with blanket statements about the industry. Stop trading immediately and take up a hobby because you are never going to make it in this industry.
Your average broker will pad the swap to such a level that the rate is extremely small on positive swaps and obcenely huge on negative swaps.
I agree, this is a hidden cost to be aware of, that and the fact that it pushes traders to close their position before EOD, turning their trading into daytrading.
Day trading is certainly a losing proposition for most retail forex traders but better for the broker;
  • #167
  • Aug 12, 2019 1:30am Aug 12, 2019 1:30am
Quoting Mingary
{quote} Your average broker will pad the swap to such a level that the rate is extremely small on positive swaps and obcenely huge on negative swaps. I agree, this is a hidden cost to be aware of, that and the fact that it pushes traders to close their position before EOD, turning their trading into daytrading. Day trading is certainly a losing proposition for most retail forex traders but better for the broker;
BS
  • #168
  • Aug 12, 2019 1:34am Aug 12, 2019 1:34am
Btw
Here is a cool EA for trading cost control.
Attached File(s)
File Type: ex4 TradingCostEA.ex4   1.1 MB | 374 downloads
  • #169
  • Edited 4:20am Aug 12, 2019 4:09am | Edited 4:20am
Quoting tropical_g
{quote} BS
No, that is a fact. The swap rate setting is at the broker's discretion they can even do it per trader.
If you think your broker does not scheme (within the rules / law) to get as much money as possible from customer funds you are a bit too trusting....
But mostly, they don't have to do anything to get the clients money sooner or later! they just rely on the 90/90/90 rule
  • #170
  • Aug 12, 2019 4:17am Aug 12, 2019 4:17am
Quoting Mingary
{quote} If you think your broker does not scheme (within the rules / law) to get as much money as possible from customer funds you are delusional. But mostly, they don't have to do anything to get the clients money sooner or later! they just rely on the 90/90/90 rule
brokers I trade with are regulated, you do know what regulations are don't you.
  • #171
  • Aug 12, 2019 4:24am Aug 12, 2019 4:24am
Quoting tropical_g
{quote} brokers I trade with are regulated, you do know what regulations are don't you.
Like I said, they try to get away with shenanigans within regulations. It makes sense, it's good business. Why should they not maximize their profit as much as possible ?
Of course a non regulation broker is a lot lot worse.
  • #172
  • Aug 12, 2019 4:26am Aug 12, 2019 4:26am
Quoting Mingary
{quote} Like I said, they try to get away with shenanigans within regulations. It makes sense, it's good business. Why should they not maximize their profit as much as possible ? Of course a non regulation broker is a lot lot worse.

you clearly don't understand regulars and what it means to brokers or the industry as a whole. no wonder you can't make a success of this business you have wasted 7 years of you life.
  • #173
  • Aug 12, 2019 4:40am Aug 12, 2019 4:40am
Quoting tropical_g
{quote} you clearly don't understand regulars and what it means to brokers or the industry as a whole. no wonder you can't make a success of this business you have wasted 7 years of you life.
Actually, I do understand.
First of all, it's not a business.
Granted, it's a business for the broker. For the Retail forex trader though, it's glorified gambling. He can pretend he is running a business. I don't have a problem with that.
But I think, overall, the whole activity it's a bit delusional. Reality sinks in eventually (;
It's actually harder on people who were determined to treat it as a business... Let's just decide it's a game, like a casino game.
  • #174
  • Aug 12, 2019 4:46am Aug 12, 2019 4:46am
Quoting Mingary
{quote} Actually, I do understand. First of all, it's not a business. Granted, it's a business for the broker. For the Retail forex trader though, it's glorified gambling. He can pretend he is running a business. I don't have a problem with that. But I think, overall, the whole activity it's a bit delusional. Reality sinks in eventually (; It's actually harder on people who were determined to treat it as a business... Let's just decide it's a game, like a casino game.
I completely agree with you man. After many years of believing that there was a way to predict outcome, and being frustrated over and over, I realized that for a small fish such as myself, its nothing more than a fancy gambling game with the odds well in the favor of the house. But... once you come to that conclusion, it is a bit of a relief.

-fighter-
  • #175
  • Aug 12, 2019 4:46am Aug 12, 2019 4:46am
Quoting Mingary
{quote} Actually, I do understand. First of all, it's not a business. Granted, it's a business for the broker. For the Retail forex trader though, it's glorified gambling. He can pretend he is running a business. I don't have a problem with that. But I think, overall, the whole activity it's a bit delusional. Reality sinks in eventually (; It's actually harder on people who were determined to treat it as a business... Let's just decide it's a game, like a casino game.
why are you wasting your time on a trading forum if you believe its a waste of time
  • #176
  • Aug 12, 2019 5:01am Aug 12, 2019 5:01am
Quoting fighterdude
{quote} I completely agree with you man. After many years of believing that there was a way to predict outcome, and being frustrated over and over, I realized that for a small fish such as myself, its nothing more than a fancy gambling game with the odds well in the favor of the house. But... once you come to that conclusion, it is a bit of a relief. -fighter-

I know for a fact that some people make good money consistently as retail traders over long period of time. There arent many but they do exsist. So the notion that FX is a form of gambling is compeltely false. It may seem like gambling for those that fail but profitable traders opinion is completely different.
  • #177
  • Aug 12, 2019 5:03am Aug 12, 2019 5:03am
Quoting xtradex
{quote} I know for a fact that some people make good money consistently as retail traders over long period of time. There arent many but they do exsist. So the notion that FX is a form of gambling is compeltely false. It may seem like gambling for those that fail but profitable traders opinion is completely different.
I'm perfectly fine with that. I didn't say that people don't make consistent money trading. There are poker players who make consistent money... just the idea that it is gambling doesn't automatically mean that you can't make money doing it.

My apologies for any misunderstanding.

-fighter-
  • #178
  • Aug 12, 2019 6:37am Aug 12, 2019 6:37am
Quoting tropical_g
{quote} why are you wasting your time on a trading forum if you believe its a waste of time
It's not a waste of time. I get a chance to chat with people like you.
  • #179
  • Aug 12, 2019 6:42am Aug 12, 2019 6:42am
Quoting Mingary
{quote} It's not a waste of time. I get a chance to chat with people like you.
a fruitless endeavour
  • #180
  • Edited 8:17am Aug 12, 2019 6:44am | Edited 8:17am
Quoting tropical_g
{quote} a fruitless endeavour
I wanted to say: It has been a privilege to chat with a "real Retail Forex Trader" such as yourself. .
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