DislikedYou can always reduce the cost of trading by trading higher timeframes making it easier to overcome this "disadvatage".Ignored
QuoteDislikedI also disagree with the "Someone has to lose in order for you to win" Theoy.
Let's say you went short 100K on EUR/USD and price drops 30 pips and you decide to exit the trade. So you need someone to buy back your position. I'll buy your position and wait for price to go up 40 pips and exit. Now someone else bought my position. We both just made a profit. In the end someone will eventually lose but I don't see why there has to be a huge surplus of losers for the chosen few to make a killing. The purpose of the market is to find an equilibrium...
If there are a chosen few making a killing, and there is not a large surplus of losers, then that means there a chosen few losing a killing.
I think (just my speculation) that the vast majority of retail traders slowly dribble away their FX money. So if 50,000 traders are losing a $1000 /year on average, then that's $50MM being absorbed by 1. Brokers. 2. Banks. 3. a handful of very successful traders. 4. 50,000 traders who make a bit over break even.
QuoteDislikedSo that would make you part of the under capitalized group? 10% -20% on 50, 000 is 5000 - 10 000 a month mate! I could sure pay my bill with that......