Thanks all for your time and advice.
Apologies I meant I started Oct 2015 (not last Oct as I am a bit a disoriented, working pensioner).
I do feel there might be a safer way to lose small amounts (ok to win as well depending on time span).
I am, however, angry why brokers allow clients to drive their car so fast and blind folded. They have moral duty not to behave like sharks. I was allowed maximum half deals for 2 weeks or so but could have opened as many deals as I wanted anyway. I was aware of possibility of loss but not that steep.
The prediction surveys of various brokers varied and contradicted each other, reports were misleading but all were saying - for example- that Brexit effect had already been absorbed into the current market. Eventually and due to stress I just closed all deals of that black January 2016
The brokers attitude doesn't look honest, their spread tactics(for new deals and high spikes) are dubious and their legally imposed warning is not enough to protect people from quickly losing money they earned over several years of hard work.
That is a very sad situation and you have my deepest sympathy for your experiences. You are really learning the hard way!
But my overall assessment is that foreign exchange trading is not for you at all. It is very demanding at ALL levels, there is no easy or safe way to trade it.
Regarding brokers, they recognise the requirements of the regulatory authorities (and not always even that much!) as the limit of their moral duty to their clients. Your suitability is left pretty much for you to decide. They will only advise you that trading forex involves risks and that you should only risk what you can afford.
In some ways, it is correct that traders take responsibility for their own actions, but I agree that there could be more specific warnings about the possible extent of risk - but ultimately it is like smoking, how far should governments and companies go in deterring people from doing so without infringing their freedom to make their own decisions.
I would guess from your interest in trading GBP that you are based in the UK. This is a demanding currency to trade even under normal conditions, but for a novice to trade it during Brexit year and beyond is truly high risk even for professional traders and veterans in the retail trading sector - personally, I think you should not risk your retirement capital in such verntures. Sorry, but that is my view!
I am, however, angry why brokers allow clients to drive their car so fast and blind folded.
I hear you there.
Some are unregulated; some are inadequately regulated.
The ones most accessible and attractive-looking to neophyte traders do tend to be the worst (strictly speaking, they're not "brokers" at all, though they're allowed to present and promote themselves as "brokers": they're actually counterparty market-makers whose own business model typically depends on their clients losing money). Appreciating the differences between these operations and genuine brokers often requires some experience ... in some cases expensive experience.
However, this may not be what underlies your own losses at all, of course.
It's probably not what you want to hear at all, but I'm afraid I agree with Manxx's post, and his conclusion, just above.
others here have experienced, I may think entirely
differently. I am guilty of having made some broad
generalisations where really I should stress that these
are not applicable to all people, obviously.
In my hearts of hearts I wish I had a mentor that I
could work with face to face and who could show
me how 'proper' trading is done... I know that it could
make all the difference, but that kind of mentorship
is precious and rare, so unfortunately I cannot have
That is totally understandable and entirely natural!
But, you know, it is surprisingly just a difficult on the other side of the fence! It is one thing to be responsible for one's own trading, but entirely something else to manage others! It is a huge challenge to guide others but simultaneously granting them sufficient room to grow individually and at the same time restricting their risk of damage. A simple limit on position exposure is never sufficient.
I think you have shown very many talents in your trading journey so far and you already possess enormous experience and knowledge about trading.
I think, if anything, you may be too early in placing so much importance on results. Results wont produce the method, but the method will produce the results.
Everyone starts somewhere and most people start from small beginnings. It is only once the knowledge and experience can be combined with confidence and the beautiful expression: a "positive expectancy" that one should start to focus on the reality of the possible returns.
There are so many factors that make up one's trading profile and they need to be logically identified and arranged and quantified. For example, trading style (fundamental v. technical or a hybrid of the two), time frame (weeks, days, hours, etc) position size, risk per trade, which markets, etc, etc.
You already possess the knowledge to create all that. Personally, all I think you need to add is a model that tells you if the rest of the trading community is currently thinking the same way. If not, bow to the greater knowledge. if so, then just "go with the flow" Typically things like 200 SMA etc,etc.
Interestingly, this is precisely what I am currently doing with Turbo's high 5. It is an attractive idea but I am not at all familiar with longer term, breakout methods and I am looking at how I can make it work for me within my own criteria. You have the talent and the intelligence - just don't look for results before the process. Just a personal opinion, as always, friend!
this is precisely what I am currently doing with Turbo's high 5. It is an attractive idea but I am not at all familiar with longer term, breakout methods and I am looking at how I can make it work for me within my own criteria.
Nobody can call Donchian breakouts "unsound" in principle, anyway - this much is for sure. It appears that Turbo has come up with an interesting "take" on them.
I agree that there are many brokers who trick their clients but cannot agree that Forex is gambling. It is a tough business, yes, and it's not for everyone. It takes years, lots of practice, analysis and research to eventually be able to make significant profits. But not everyone have the time and patience to do that as in the end, you really need to commit to it. Otherwise you might indeed lose too much. And I am really sorry that you had such a tough experience. Perhaps it would be better if you take a small break and give yourself some time to decide whether you really want to continue trading and if it'll be worth it for you. And if you feel that your broker hasn't been honest with you, withdraw your money and close the account, there is no point on losing even more.
No, all of trading strategies are not unprofitable actually; here money management is very important issue! But it’s true; there is nothing like 100% in Forex business! Even, if you get only 70% success by your strategy, till now you have a chance to become a successful Forex trader, it’s all about money management and risk management knowledge!
it’s all about money management and risk management knowledge!
Well I wouldn't say it is ALL about money and risk management. But you are right that without this then even the best of trading strategies may not actually succeed.
But, of course, all trading has to be based on a sound approach to actual position-taking that has a track record of consistently producing the risk/reward parameters on which the risk/money management criteria are based.
Without that, the best that your money management can do is ensure that your account disappears extremely gracefully in a series of well-planned, smoothly executed, and beautifully homogenous losses, 2% at a time.......
Kadheim, your story is a common one, guys that are called brokers are usually bookmakers, they refer to retail traders as 'punters', those punters are not seen as customers.
There's no discrimination whatsoever between institutional & retail environments as far as those terms & labels are concerned.
Politely, to their face & in any correspondence, they are of course clients or customers, but in reality & in-house, they're all punters whether they're transacting via institutional brokers or retail bookies.
They all simply place bets on the movement of financial instruments but generally the only crowd that gets sniffy about these labels & what it is they're actually involved in, is the retail sector. The vast majority of professional players really could care less & quite often refer to themselves as punters/gamblers.
They're simply industry terms that get bandied about every day of every week & which just so happen to accurately describe the endeavor that's being undertaken.
Underfunded & ill-prepared retail punters are by no means the exclusive donors of broker profits. Professional punters swell the satchels too on a very regular basis.