why people work as trader?

[sameer666]

hi

this question just came to my mind, that i m not sure but why expert peopel in trading , just work as a trader n not do trading for themself instead of working. doesn't it make more sense as forex is really a making make machine. please comment

thanks

[rhodytrader]

Originally Posted by sameer666

hi

this question just came to my mind, that i m not sure but why expert peopel in trading , just work as a trader n not do trading for themself instead of working. doesn't it make more sense as forex is really a making make machine. please comment

thanks

It's a question of leverage and risk. You can make a lot more money trading someone else's millions than you can your own thousands, even if you're only making a percentage of the profits. Also, your own wealth isn't at risk trading someone else's money.

[kingen]

Trading other people's money (usually a super-large amount of money), can be more profitable than trading your own money. A broker trading billions of dollars a year, can become much richer, than someone trading their own capital (usually a smaller amount of money).

A broker usually takes some form for commision, like 6 percent of profits. 6% of a whole lot of money can be much more than 100% of a traders own profits, if you understand what I mean.