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Are trading costs the main reason of losses in trading?

  • #201
  • Aug 21, 2019 11:45am Aug 21, 2019 11:45am
Quoting Mingary
{quote} no no no ... the transaction cost is paid on a win or a loss. Both incur a transaction cost. I agree, there is no transaction cost cheap enough that can save a bad trade. But, here I don't agree.. it's not "just under 80 % of retail trader lose" it's more 99.9999 % depending on the period considered. Like I read somewhere else "retail forex is a negative sum game for losers" https://www.forexfactory.com/showthread.php?t=651547 and so it must be true ...
that is 99.9999 stat you are pulling out your ass. the stat I am quoting comes from brokers according to regulatory requirements. maybe you should just leave this forum because you clearly don't know what you are talking about. I don't live a lavish life but afford a 600k uk mortgage and a wife that doesn't need to work and a daughter in what people would consider a comfortable UK lifestyle. All paid for by profits I withdraw from trading forex which i have been doing since 2005. zero sum gain, please, maybe in your bubble but certainly not mine
  • #202
  • Aug 22, 2019 9:32am Aug 22, 2019 9:32am
Quoting tropical_g
{quote} that is 99.9999 stat you are pulling out your ass. the stat I am quoting comes from brokers according to regulatory requirements. maybe you should just leave this forum because you clearly don't know what you are talking about. I don't live a lavish life but afford a 600k uk mortgage and a wife that doesn't need to work and a daughter in what people would consider a comfortable UK lifestyle. All paid for by profits I withdraw from trading forex which i have been doing since 2005. zero sum gain, please, maybe in your bubble but certainly...
Don't you think that brokers would have a vested interest in painting a more positive picture?
Ask your favorite retail forex broker to give you the total amount of customer funds at the beginning of a quarter and the total customer funds at the end of the quarter (no new accounts). It will be down, always. It's not a zero sum game, it's a negative sum game. That's why brokers have a busy marketing department ..
Now you are telling me your are making a living from Retail Forex as your only source of income ? Possible yes, but improbable.
Extraordinary claims require extraordinary evidence. or to put it in it's original form, which I like better "the weight of evidence for an extraordinary claim must be proportioned to its strangeness"
  • #203
  • Edited 11:01am Aug 22, 2019 10:28am | Edited 11:01am
Quoting Mingary
{quote} Don't you think that brokers would have a vested interest in painting a more positive picture?
sure they do but are mandated to operate within the regulatory framework and reporting false information would be in breach and they will be fined or potentially lose their licence to operate, not to mention reputational damage and its effects on future business. Do you know anything tangible about this industry or do you make it up as you go.

what I make from fx is my business and giving you, a stranger spreading lies about the industry and an attitude of deserving is really not the way to ask for something. I am not interested in handing over my private financial information to a stranger on the web and asking for it shows you have little concern for sensitive information being broadcast for millions to see.

would you publish your latest paycheck receipt and bank statements? my trading account is effectively the same thing, so would you?
  • #204
  • Aug 24, 2019 12:19am Aug 24, 2019 12:19am
Quoting tropical_g
{quote} sure they do but are mandated to operate within the regulatory framework and reporting false information would be in breach and they will be fined or potentially lose their licence to operate, not to mention reputational damage and its effects on future business. Do you know anything tangible about this industry or do you make it up as you go. what I make from fx is my business and giving you, a stranger spreading lies about the industry and an attitude of deserving is really not the way to ask for something. I am not interested in handing...
I know way too much about this industry for my own good. Curiosity kills the cat.
I have no reason to believe anything about your claim as it is in fact an "extraordinary" claim.
  • #205
  • Aug 24, 2019 2:45am Aug 24, 2019 2:45am
Quoting Mingary
{quote} I know way too much about this industry for my own good. Curiosity kills the cat. I have no reason to believe anything about your claim as it is in fact an "extraordinary" claim.
all your knowledge is fictional. you have made it up or read it somewhere on a conspiracy blog. I have every reason to believe you are living on government benefits and can't believe someone as fictional as you can manage to hold down a job. unless you prove with a paycheck and bank statement of course.
  • #206
  • Aug 27, 2019 2:07am Aug 27, 2019 2:07am
Quoting komposter
{quote} And what is max leverage on CFD can you have? Any hidden costs/commissions?
It depends on broker regulation.
Perhaps even 1:100

Commission depends on broker as well.
spread, slippages as usual
  • #207
  • Sep 2, 2019 12:45pm Sep 2, 2019 12:45pm
Quoting Lk009
{quote} It depends on broker regulation. Perhaps even 1:100 Commission depends on broker as well. spread, slippages as usual
Could you please show me some example?
I want to compare FX and CFD costs.

Thank you!
  • #208
  • Feb 11, 2020 12:11pm Feb 11, 2020 12:11pm
I think this can only happen if you do not know how to properly assess the situation and calculate the risks in relation to your capital. Because only some dishonest broker can earn on such situations, and if the company is normal - in this case there is no benefit. It all depends on you, on the approach that you take for yourself. It is natural that highly risky approaches can lead to certain losses and difficulties in implementation of ideas. But I have a number of acquaintances who can't work in a different way, and it also brings them results if they manage to direct their energy in the right direction. Yes, you can work and earn money with that too.
  • #209
  • Feb 11, 2020 2:43pm Feb 11, 2020 2:43pm
Quoting Lk009
Are trading costs the main reason of losses in trading?

No.

Poor trading decisions, a lack of trading knowledge and little to know trading expertise are the primarily causes of a loss of capital. Trading costs are typically ancillary to profit and loss. For example, scalping the wrong instrument with inappropriate contract details, market conditions and underlying data driven dynamics that are supportive to scalping would be a good cause for losses. Yet, it was not scalping itself that caused the losses, but the inappropriate use of that method of trading.

The primary focus for a Trader should be on learning how to trade by way of learning how to reduce the risk of trading. The more risk is mitigated the higher the chance of netting profits instead of losses.
  • #210
  • Feb 12, 2020 4:43am Feb 12, 2020 4:43am
The trader is the main reason for losses in trading.

A good trader will make money even with larger spreads and commission.

That's one reason why chasing the broker with the smallest spreads is a bit of a red herring (unless you are a scalper of course). If a swing trader can't make money with 2 pips spread, they aren't going to make money with a 0 pip spread.

Just my 2 pennies worth...
  • #211
  • Feb 29, 2020 6:47am Feb 29, 2020 6:47am
You know, in fact, calculations really matter in trading - it's true. But I can't say that it's some colossal knowledge and so on either. Because if you trade regularly and competently, leave a normal free margin - you will definitely have a positive result or at least you will not allow any huge losses, which can harm your capital. In fact, you should not forget how many assets you use in your work. If you have small capital and you use 10-12 assets at once, of course you will have problems even if only half of the trades are unprofitable. I am strictly convinced that you can make money on the market with any capital, it is another thing that with small capital and profit will be small too.
  • #212
  • Last Post: Mar 10, 2020 10:15am Mar 10, 2020 10:15am
Quoting Sainrad754
You know, in fact, calculations really matter in trading - it's true. But I can't say that it's some colossal knowledge and so on either. Because if you trade regularly and competently, leave a normal free margin - you will definitely have a positive result or at least you will not allow any rufus huge losses, which can harm your capital. In fact, you should not forget how many assets you use in your work. If you have small capital and you use 10-12 assets at once, of course you will...
It all depends on you, on the approach that you take for yourself. It is natural that highly risky approaches can lead to certain losses and difficulties in implementation of ideas
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