I just don't get it

[anon46773462]

In the US, forex is regulated by the CFTC and NFA, and the NFA website provides information on how an individual or organization must register to provide forex trading services including the requirements they must meet: Registration and Membership | NFA

Thanks for that useful link. That may well provide some kind of protection regarding official organisations. But what we are talking about here is more to do with the individuals and unofficial business enterprises that roam the internet selling all kinds of products and services without any kind of regulation or authentication.

[FOREX.com]

But what we are talking about here is more to do with the individuals and unofficial business enterprises that roam the internet selling all kinds of products and services without any kind of regulation or authentication.

And the solution is to seek out properly regulated individuals and organizations when choosing financial services providers.

[anon46773462]

And the solution is to seek out properly regulated individuals and organizations when choosing financial services providers.

Absolutely! 100%!

[midwest]

Barrigan, I understand where you’re coming from. I have a positive expectancy as I suspect many if not all the BP staff does and many of the posters. It is a good place to learn the basics and get feedback.

I would like to correct one oxymoron about the 95% thing. It is simply if not true. The problem lies in the way the data is collected, analyzed and reported. First off the folks who make up this statistic used open and closed accounts and didn’t take into logic if the same trader did both. That I find is the biggest issue. Investing.com did a very large study of traders trades and found that (I’ll try to remember the stats as best I can) 55% of the trades were placed on the correct side. That by itself would be enough to be profitable. But the outcome was not profitable for the majority. Why it’s a little item often overlooked by the traders emotions called cash management.

[eddieb]

55% of the trades were placed on the correct side. That by itself would be enough to be profitable.

Hi Midwest.
At first glance your comment would appear correct, but because the average size of losses is far greater than the size of wins, it doesn’t work out as you would expect.

Newbies Guide To Becoming A Forex Trader

Most traders win more often than they lose…FACT The chart below, taken from the DailyFX Traits Of Successful Traders, shows that over 50% of trades are wins… [image] …which begs the question, why do the vast majority of new traders lose on their trades? this next chart, from the same source, shows the average difference in the size of losses incurred in pips. [image] Now we're beginning to get the picture! If you look at EurUsd, the most commonly traded pair, you'll see that a…

[midwest]

eddied, if you read the rest of my small statement I went on to say something about cash management! which you article get into a little bit in the follow up. I personally have an excellent win-loss ratio but doesn’t say I’m going to be profitable by it self.

So we must look at position sizing in relationship to the account size and momentum of
the pair.

Rookie rules:

1. always use a stop loss
2. never place a trade greater than 2% of the account size, 1% is much better.
3. never have more than 5% of the account size at risk from the total trades
4. never exceed 1/2% of the account size in total open positions.

I was trading at a 0.01 quantity until I got a handle on the rules passed on to me.
Once I was consistently profitable then I started with position sizing but still according to the sound money management rules presented above.

Frankly if all street traders did this then it would just be us against the big boys. So not for nothing human nature being what it is makes the zero sum game profitable for the select few that understand cash management rules.

[eddieb]

Midwest, I wasn’t disagreeing with you and I did read the rest. I think it’s just one of those instances were something gets lost in translation on the Internet.

Namaste

[FerdousAzam]

I agree with some points. But I don’t agree that this materials are not helpful. Of course good materials are the key components. Like in a class everyone read the same text book but the final outcome of every student is different. It’s all about how you understand the things. How much passion you have for your work.