Does anyone really make money off of the Forex?

It’s very easy to lose thousands of dollars over the span of 2 years, trading nothing but 50 dollar micro accounts.

Of course that means using leverage, which the Dodd Frank act, did not go far enough in addressing. I am sure if the law limited the leverage to 10:1, I wouldn’t have lost my life savings, over the last two years, learning the FOREX market.

This site certainly does benefit the wealthy, contrary what the other poster said, many of the newer traders are victims and FOREX is zero sum, which means when one trader loses, another benefits.

Look at this way, the millionaires, they make money when all the sheep get slaughtered, from reading all these feel good stories here, about how someone made thousands of dollars in one day, trading the AUS/NZD after the down turn.

In reality, only 1 percent of millions of people, profit. The Government did a study on all the retail brokers that are regulated now, and ACCORDING TO THEIR OWN STATISTICS, 90 percent of retail traders lose, this is taken over the course of several years.

So long as my speech isn’t banned here, this is advice for newer traders, from an honest experience in the minority here.

I am not here to lie, of course after losing mounds of capital, and spending many years, maybe a trader can make a living doing this, and only pay the 14 percent capital gains tax rate, that Romney pays.

But I referring to 99 percent of FOREX traders, why should they be victims so that just that one percent can have the freedom, or luxury, to make a living at their expense?

It takes many years, and a lot of capital to learn FOREX, something no one here or anywhere will tell you. But that is the truth, and you know and I both know that. It is thoughts like in your post, which is exactly why need the government to step in, and regulate this market, for the safety of the rest of us.

You’re making money off of me, and most of the traders in the FOREX market like me. You are spending my life savings now, for your luxuries and rent, and if not for the government stepping in when it did, with DODD FRANK, and limiting leverage, you would continue your tyranny on my life.

So yes, we do need the government to protect us, limit leverage to 10:!, and finally not have to continue to fall for these scams.

It’s pointless Banker to talk to this guy…It’s a waste of time…

Hey that may be true, but according to the government research, that is not only true of me but the majority of FOREX traders.

That is something not listed anywhere on this site, only the feel good stories to elicit emotional reactions from people, to put their capital at risk for a big pay off.

So the government has to increase regulations to put a stop to the evil doers, who capitalize on the “incompetent, dumb, or pathetic” traders like myself.

Yea, their evil capitalists who exploit us, for their own financial gain.

I have nothing against FOREX, if I were able to be successful, I would use my money to lobby for stricter rules on the market, so that future traders don’t have to face financial ruination, like many of us do now, to the evil manipulations they use to make inexperienced traders lose their money.

As mentioned before, 50:1 going to 10:1 will help us immensely, when we are risking capital learning the market.

You might want to reread the late edit, those few who are presently successful at this have a responsibility to newer traders.

George Soros, arguably the best currency trader, was very influential with his time and money lobbying for the new regulations on this market.

Equal number of winners and losers. If you do have a trading system and want to leverage the returns, be careful. Everyone out there things they are smarter than then next guy. But like you, the next guy thinks he is smarter than you. If you are asking yourself “can I make money trading currency?” Ask yourself how will you beat the problem of it being a zero sum game? And there is your answer.

I am speechless!! high leverage is only for the extremely dumb or the extremely talented… :smiley:

I really think if you are going to blame the gov. for your stupidity then better to blame it at the school level… :smiley:


If I sell 2500 Units for 1% risk, having 1:1, 10:1, 50:1, or 45682:1 doesn’t matter, more leverage just gives me more available units to trade and a smaller margin window if you [I]CHOOSE[/I] to use those units.

Leverage has absolutely nothing to do with protecting you, and those life savings. It just gives you more of what you can’t afford. It’s up to you to take it and play it.

Also you do not need a big capital to learn like you say, because you’ve got demo accounts, and it doesn’t matter if you trade with 10K or 50$ because losing 1% is 1%. If you can’t afford micro/mini lots, get a unit account and define pip price per your liking.

If you do not define risk, and risk more than you can afford to lose, you are a gambler.

It’s not that 95% of traders lose, it’s that 95% of those in the market are gamblers.

And no, I’m not rich, and have a day job, and taxed 50% of capital gains like any joe out there.
The difference is that I define risk, not only in the markets but in life.
I would only put what I can afford to lose in any situation; ie not my life savings. :wink:

But if I feel there is some pain to be dealt by running some stops, I will gladly [B]join in the move[/B] and take it from you.
Because that’s the whole idea of the game!

my 2 cents.

My look at the hypocrisy, George Soros was right then?

If we are making money against the big banks, and not fellow traders, then the new Government rules are protecting us after all.

No one is taking money from others, but from the big institutions and banks, and the rules need to change so that the little guys don’t lose money, by getting pushed around by the rich banks who hunt stops and take our money regularly.

Reducing the leverage to 10 to 1 will happen after President Obama’s re-election. The dodd frank act, will get a lot more comprehensive than those meager provisions already in it.

I don’t think you’re getting the point.

Firstly, advocating stop hunting is unethical to say the least, no retail trader can put in an order like that, so that is an unfair luxury of the Rich.

Secondly, having the freedom to use leverage IS the problem. People have freedoms all the time, and they abuse those freedoms, that is why most of the country is obese, or have some type of disorder.

It’s up to government to regulate those freedoms, to protect us, and MOST new traders may be gamblers, but that is exactly why they have to be protected, with 10 to 1 leverage.

I am living proof, I have 2 years experience in FOREX, and have lost my life savings. I know the dangers of leverage, but was unfairly manipulated, or tempted, to use it against myself. The government has to put a stop to this, or many more people are going to lose a lot of money, as the majority presently are.

Many brokers have been audited by the FED, it was found that 9 out of 10 people in the market, have lost tens of thousands of dollars, and are net losers as traders. That says a lot

Can you show us some of your trades?

To be honest, you can only blame yourself. Trading is far more risky than investing. If you were unaware of the risks involved then that’s down to your (I mean anyone who starts trading, not you directly) lack of research and understanding.

If people are willing to throw tens of thousands of dollars at new accounts, then more fool them…it’s pure stupid and shows how naive some people can be. This is a business, and lets not forget that…

sman you are one pathetic dude. I feel sorry that you lost so much money trading but the blame is only on you. A loser at 100:1 leverage will be a loser regardless if it’s 10:1 or 5:1 or 1:1. You can control your position size depending on your risk appetite. No one forces you to use all that leverage. Do you think cars should be capped at a maximum speed of 60mi/h because that is the suggested speed limit?

Sure you can, no one is stopping you from putting in an order at a key high/low. If the trade goes your way, you essentially took out some poor dude’s stop for your gain.

It is absolutely pathetic that you are blaming Capitalism for your losses and you are calling on the govt to regulate everything to the hilt to make you feel a widdle better. I can’t think of a more childish way of coping with your losses

I suppose if you made money on forex you wouldn’t be evil, because you MUST be oh so morally superior to all those other “evil doers”?

And your calls for more regulations are actually quite funny…, As if the people in govt are any better than people on Wall Street. People are so evil and greedy blah blah blah… So lets put them in govt and give them even more power and control and let them “regulate” everyone. I mean, are you even listening to what you are saying? Perhaps you should delve into what special interest groups lobby for these unconstitutional “regulations” that obviously didn’t do a good job at protecting you from your own incompetence…

More often than not your beloved regulations that are illegally created to regulate those “evil” corporations, are actually written by the largest corporations in the sector that the government is going to regulate. It’s called chrony Capitalism.

Being a politician must be the easiest job in the world. Pass laws, regulations and new rules, most of which are unconstitutional, and then when they all backfire and fail like they did in 2008, blame it on Capitalism, the constitution and lack of regulations… And sure enough people like you buy into that notion.

And I’m sick of reading all your nonsense about how speculators are evil. In a free economy (no longer the USA) many people act on market incentives individually from one another. This decentralized structure actually keeps the market stable. Speculation is only dangerous when it is based on centralized moved like a new law or Federal Reserve actions that trigger many people to make similar bad decisions at roughly the same time.

Since you are so eager to live in a more authoritarian society I suggest you book ship and move elsewhere instead of having the govt and the lobbyist bureaucrats forcing this garbage down everybody’s throats. Do you ever wonder why regulations cost small businesses 30% more to comply with than large corporations? That’s the whole point of regulations… to reduce competition.

You are not a good trader. That is your fault. It’s not my fault, it’s not Romney’s fault and it certainly isn’t the fault of the non existent free market that you so vehemently blame for all of your problems. It’s time to grow the heck up and start taking responsibility for you own actions.

Yes the problem is freedom…? Man, c’mon… You can’t be serious. Do you have any idea at what this country was founded upon. Obviously not. You are implying that our corrupt government should regulate absolutely everything. From the dinner plate to the trading realm there is no limit to how they can regulate us.

Listen, part of living in a free society is responsibility for you actions. If you want to be totally safe, go to prison. Nothing will hurt you there. Oh wait, you want this whole country to be one giant prison where nobody has a free will. Well IMO you should quit complaining and move to a country that reflects your values, such as North Korea. Trust me, you won’t have to worry about over leveraging your account or becoming obese there. They have plenty of regulations to protect you.

And your “noble” role models like Soros, who make billions and then try to kick the door closed behind them so nobody else can come close to them, are actually jerks. Soros has his own agenda when he is lobbying, it certainly isn’t the agenda of the Constitution or anybody who aspires to be successful one day. Soros made his billions, now he wants to shut everybody else out. Not because he cares about you, but because he is a lousy character.

I think you should take time to really study the forex market. When people dream of becoming medical doctors, they go to medical school, when they want to become Lawyers, they go Law school, so if you do want to become a forex trader, please go to a forex school, I recommend you start with Baby pips.

Maybe BabyPips should use this as their new slogan :wink: