Did you know that Retail Forex is only 4% of the whole Market? | Forex Factory

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Did you know that Retail Forex is only 4% of the whole Market?

  • #1
  • First Post: Jan 8, 2015 7:51am Jan 8, 2015 7:51am
A fact that I was not aware of.

Funny, 96% of the daily FX Order Flow is NOT retail flow, but institutional flow. So regarding the price movements we play only a very minor role in this market

http://forexmagnates.com/how-big-is-...-forex-market/
Forex is a losers game.
  • #2
  • Jan 8, 2015 8:35am Jan 8, 2015 8:35am
Yet some people still believe that the big bad banks are out there to take their money
  • #3
  • Jan 8, 2015 9:06am Jan 8, 2015 9:06am
Quoting merquise
Yet some people still believe that the big bad banks are out there to take their money
Not to mention those who don't want to share their trading secret fearing some change in the market conditions
MT4/MT5 EAs/Indicators/Alerts coder
  • #4
  • Jan 8, 2015 9:20am Jan 8, 2015 9:20am
To paraphrase Professor Henry Higgins, "By George, I think he's got it!"

To noobs (and not to mention, assorted conspiracy theorists) reading this: Can we move forward now, PLEEEEEASE?
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #5
  • Jan 8, 2015 2:36pm Jan 8, 2015 2:36pm
Quoting merquise
Yet some people still believe that the big bad banks are out there to take their money
I'd say its's true to some degree based on some scams that brokers did. You can read about those in Brokers forum. Trader makes profit and broker would not pay.
  • #6
  • Jan 8, 2015 6:42pm Jan 8, 2015 6:42pm
Quoting Vitez
{quote} I'd say its's true to some degree based on some scams that brokers did. You can read about those in Brokers forum. Trader makes profit and broker would not pay.
Brokers are not banks.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #7
  • Jan 9, 2015 3:18am Jan 9, 2015 3:18am
Quoting skenobi
{quote} Brokers are not banks.
Don't they work for the banks?

If we are pigeons then it should be easier to make money.
  • #8
  • Jan 9, 2015 3:40am Jan 9, 2015 3:40am
Quoting Vitez
{quote} I'd say its's true to some degree based on some scams that brokers did. You can read about those in Brokers forum. Trader makes profit and broker would not pay.
I would say that that is up to those brokers...the point here is that the whole spot Forex market is not rigged and not against the retail trader as a majority likes to think. It is a good way to justify ones loses though On the other hand a regulated broker is highly unlikely to manipulate prices to get its clients money..
  • #9
  • Jan 9, 2015 3:58am Jan 9, 2015 3:58am
Quoting merquise
{quote} I would say that that is up to those brokers...the point here is that the whole spot Forex market is not rigged and not against the retail trader as a majority likes to think. It is a good way to justify ones loses though On the other hand a regulated broker is highly unlikely to manipulate prices to get its clients money..
I agree yes that the extra negative thinking (the game being rigged etc) is not helpful at all.

And for sure our ego likes to hear that it's rigged after loses are done hehe.

It's just that something is missing...the majority loses in the long run and I haven't read the answer that would actually make sense. I guess it's some sort of illuminati secret...... anyway trading is still good fun!
  • #10
  • Jan 9, 2015 4:28am Jan 9, 2015 4:28am
Quoting FerruFx
{quote} Not to mention those who don't want to share their trading secret fearing some change in the market conditions
Yeaahhhh!! This is great...hahaha.
  • #11
  • Jan 9, 2015 4:41am Jan 9, 2015 4:41am
My belief is that the majority sees this as some kind of video game and really don't take it seriously..and the reason for that is they have a hard time to comprehend that something "virtual" like this can make you real money as opposed to work hard for your money in some coal mine, etc...
  • #12
  • Jan 10, 2015 4:20am Jan 10, 2015 4:20am
Do we have any posibility to compete against the "big banks and hedge funds"?

In my previuos "life" as an Internet Marketer I'm subscribed to a lot of Marketing Gurus Newsletters (like in trading) and I remembered a letter from Perry Marshall (an Google Adwords marketing expert) talking about competing with the big fishes and corporations.

I think this paragraph from one of his free newsletters has a lot of similarities with trading and competing againts banks and big institutions. I hope you like it...

"In a Villa meeting room during a visit, I spotted a wildlife book which sported nighttime infrared photography of African wildlife. One chapter caught my eye: A fight to the death between a pride of lions and a pack of jackals.
At 15 pounds, a jackal is no match for a 250 pound lion. A lion can rip a jackal to shreds with impunity.
But the researchers estimated the weight of the Jackals at 4300 pounds and the lions at 4100.
The infrared photographs reveal a vicious, bloody contest. But the jackals outweighed the lions and in the end the jackals prevailed.

Every entrepreneur knows what it is to feel like a lone scavenger trying to survive in the wild, to face savage lions. How do "little guys" like you and me compete with Fortune 500 and Fortune 1000 corporations?

We stick together.

To me, the teamwork and cooperation is one of the most satisfying aspects of being a renegade entrepreneur. I loved it when I was cutting my teeth in the beggining and I still love it now. The way us little guys work together, share information and stick up for each other. Individually, we're nothing. Together, we're mighty.

The battle is bloody but jackals often do prevail against the lions. And even though lions get more respect in the jungle, sometimes you find it's more rewarding to be a jackal."

That's why I love to "spent" my time in Forums. I'm subscribed in a lot of them but this is great.

Thank you to everybody who shares freely their knowledge and opinions.
  • #13
  • Edited 6:50pm Jan 11, 2015 12:11pm | Edited 6:50pm
Quoting Webforecast
"In a Villa meeting room during a visit, I spotted a wildlife book which sported nighttime infrared photography of African wildlife. One chapter caught my eye: A fight to the death between a pride of lions and a pack of jackals. At 15 pounds, a jackal is no match for a 250 pound lion. A lion can rip a jackal to shreds with impunity. But the researchers estimated the weight of the Jackals at 4300 pounds and the lions at 4100. The infrared photographs reveal a vicious, bloody contest. But the jackals outweighed the lions and in the end the jackals...
Your optimism is admirable but is misplaced, methinks.

At 4% of the order flow Serengeti (assuming that statistic is true), I have very serious doubts that retail traders can even manage a viable and cohesive tag team of jackals (to use your example) with a 200 pound advantage over a Bank Trader pride of lions who command 96% of the space.

Instead of being too focused on "competing" with Big Banks, you should instead be focused on competing with your own record and making sure you have a working edge all the time.

Big Banks aren't your worst enemy. You are.

Quoting Webforecast
And even though lions get more respect in the jungle, sometimes you find it's more rewarding to be a jackal."
The above is the only sensibly optimistic statement in the entire post.
I'm not trying to convince anyone. I'm not in the "convincing" business.
  • #14
  • Jan 11, 2015 12:41pm Jan 11, 2015 12:41pm
Jackals do not hunt together in large numbers and therefore will not outnumber a pride of lions.

You must be referring to Hyena's. They hunt in bigger numbers and Lions often back off and give up their "kill" when outnumbered by them. Hyena's are very opportunistic animals. Many of them have been killed by lions when the above happens.

From the most beautiful continent in the world.....
AFRICA!
Never Ever Give Up!
  • #15
  • Jan 11, 2015 1:11pm Jan 11, 2015 1:11pm
It's interesting to read that some confuse hyenas with jackals and others brokers with dealers!
Education about the forex market is free to any individual and and yet many prefer to follow the herd! Herds get slaughtered!

For those wishing to know who are the participants of the forex market just need to read the Banks Tri-annual report.
One against the many.
  • #16
  • Edited 5:17pm Jan 11, 2015 1:14pm | Edited 5:17pm
Quoting Webforecast
Do we have any posibility to compete against the "big banks and hedge funds"? In my previuos "life" as an Internet Marketer I'm subscribed to a lot of Marketing Gurus Newsletters (like in trading) and I remembered a letter from Perry Marshall (an Google Adwords marketing expert) talking about competing with the big fishes and corporations. I think this paragraph from one of his free newsletters has a lot of similarities with trading and competing againts banks and big institutions. I hope you like it... "In a Villa meeting room during a visit, I...
Best advice would be to do the exact opposite of the majority of these threads.
  • #17
  • Jan 11, 2015 3:35pm Jan 11, 2015 3:35pm
i have a different point here

are the big players move the market against small player to take their money ???

the answer is yes

before you attack me or say that i am wrong

let's take this example

according to the percents in the first post

if the total t market is 100 dollar so we control 4 dollar and big player control 96 dollar

if we get margin call ( as we all know the 95% of the small player lose ) they will win our 4 dollar witch represent 4.16 % of their money


and that is the percent of profit the banks make yearly ( from 2 - 7 % )

and take in to consideration that the 4% is nearly constant witch mean when the 4% get margin call they make another deposit

which mean another 4% gain for the big player


so don't underestimate that 4% it worth a very big fortune
  • #18
  • Jan 11, 2015 3:41pm Jan 11, 2015 3:41pm
the what is the solution ???

walk with the big players which mean to walk against the small one

if you are from the 95% that lose that mean you should reverse the way you think in Forex and the way you make analysis too
  • #19
  • Jan 11, 2015 3:51pm Jan 11, 2015 3:51pm
Zelenko I don't think that you understand fully what this means at all. As someone said study the market participants. The majority of FX participants are there t buy one currency for another. The dealers at the banks are merely executing orders for their clients which are major hedge funds, corporations and other banks. They are here to compete against each other not against small retail traders because we (small retail traders don't have the amounts of money they need),,we are just getting in their way when we speculate and lose money.. Here this video is quite educational about those approaches. I can't say that it is like that now at the time of computer modernization but I believe that philosophy is still the same...

Inserted Video
  • #20
  • Jan 11, 2015 5:22pm Jan 11, 2015 5:22pm
We in the small time retail game can't compete against the big guys, but we don't have too compete to be profitable.

All we need to do is find our little place in the market where we can take a piece of the action.

Find your niche, be disciplined, maintain your edge, and take a little piece of what is a truly enormous pie.
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