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Got into a discussion with someone, he says forex is inherently a losing game

  • #41
  • Mar 16, 2010 9:31am Mar 16, 2010 9:31am
Quoting Darkstar
LOL! Dude, the stock market is a mechanism that allows the underlying companies to raise capital. Period. The idea that it was designed to help you save for retirement is nothing more then the sales pitch that gets you to give these companies your money.
Hahaha soo truee !!
When retailers are in the market, they will create another crisis/recession/depression XD
  • #42
  • Mar 21, 2010 5:18am Mar 21, 2010 5:18am
Quoting lolpie
..compared to stocks

Here - http://forum.bodybuilding.com/showpo...&postcount=136. And here - http://forum.bodybuilding.com/showpo...&postcount=174

What do you guys think? I disagree, but I don't know enough about how the markets work to really explain.
He's right. I put 5000 USD into forex, six months later I''ve barely broken even. My broker got around 3000 USD in commissions. There's truth to that saying "where are the customers' yachts"? Had I invested that same money in the stock market in my country I'd have gotten around 20%.
  • #43
  • Mar 21, 2010 5:23am Mar 21, 2010 5:23am
Quoting dr_zeus

So if you bought AUDJPY in Jan 2009 at 65, and sold it in Jan 2010 at 85, you'd have made a 31% capital return plus another 3% or so interest.

Levered it at 2x, and you made 70% last year. And this took as much prognostication as stock trading.
That's a big if. How about if you'd gone short the EURUSD at 1.00?
  • #44
  • Mar 21, 2010 1:39pm Mar 21, 2010 1:39pm
Quoting hawkman
That's a big if. How about if you'd gone short the EURUSD at 1.00?
You would have hit your stoploss at some point.

If you had shorted AUDJPY at 65 and held it, you'd hurt right now. Your stoploss protects you from this. Find a recent support line, put your SL under it and go.

If you longed AUDJPY at 65, you could easily have a 2:1 leverage with a stop loss of 100 pips for a 2% risk.
  • #45
  • Jul 6, 2015 5:53pm Jul 6, 2015 5:53pm
Your friend is right - it is a losing game. But, there IS a way to make money at it!

Sell some BS indicators, sell BS trading books, sell BS forex "education" courses.

There are always suckers waiting to buy the next "can't lose" system
  • #46
  • Jul 6, 2015 6:09pm Jul 6, 2015 6:09pm
Quoting gravitist
Your friend is right - it is a losing game. But, there IS a way to make money at it! Sell some BS indicators, sell BS trading books, sell BS forex "education" courses. There are always suckers waiting to buy the next "can't lose" system
I like this answer, a lot.
100% right, but not related to initial Forex market, but to his "accessories".

Maybe I am wrong, but if you buy 51% of stocks then you can give orders to that company manager and you can control it.
Then you can make to pay your invested money even if you ruin later the company and you will know when to exit.
Having and using those internal information gives you an edge vs Forex market. I believe.
I want to buy PATIENCE
  • #47
  • Last Post: Jul 6, 2015 6:56pm Jul 6, 2015 6:56pm
The guy is talking about stocks vs forex as a long term investment. In that respect I'd agree with him. Forex (atleast in my opinion) isn't suited as a long term investment you wouldn't hold a position for years and years like you might do with stocks. I'm sure there are those that do indeed do this but I wouldn't recommend it unless a long term trend that spans years has been established. This doesn't mean your short term stratagy in forex can't have a long term outlook.
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