Is it harder to make money now?

[quote=]Futures Magazine: John you have been involved in the cash forex market for more than 40 years. How has it changed in that time?

John Taylor: People recognize that it exists now. It used to be that I would go to ****tail parties and would say what I did and everyone would walk away. Now they talk my ear off. It has changed a lot. Obviously the size of the market [is bigger] and participants are making more so it is harder to make money, perhaps because there are so many participants and fewer of the participants [are stupid participants], the stupid participants are still there but there are a lot of professional participants that are trying to make money which makes it harder.[/quote]
I’d really appreciate it if somebody would elaborate a bit on this. I read this interview from a link in the

“Sunday reading” thread. To sum it up I think Mr.Taylor was saying that it’s harder to make money in the

forex market now because traders are getting smarter. But this seems to contradict what I’ve read in the BP

school. Shouldn’t trading become easier? Since more people knowing about S&R, Fib etc. will make these

levels self-fulfilling :33:.

Sounds about right. There’s a lot more participants in the forex market now than before. A lot of them are chasing the volatility that’s in the forex market now seeing as the stock markets have become a bit of a procession on low volume and participation overall and are more susceptible to HFTs juking prices. These are mostly smart, professional participants who are fully wired into the circuit and these are the type of people / organisations that us retail lot are competing against every time we open a trade. It’s never going to get easier in my opinion as there’s too much money at stake for big players.

The market seems to be difficult because it has greater variability than before, does not change the fact that they still ruled by supply and demand. Ask yourself where the price will be attractive again to the purchase or sale on.

Markets are there since a couple of thousand years. Nothing changed the supply and demand or greed and fear basics. People who talk about markets are going to get more difficult are probably those, who lose money and need someone to blame for it.

If more people enter those markets, that’s even better. It means more liquidity and more stupidity (regarding money) in the market.

Profitable investments or trading is simple: Proper risk control, buy lower, sell higher. Avoid fear and greed. Make time your friend.

Most people trade against time and basics and with too much risk and leverage. Well, most even not have a plan to trade. No wonder they lose. But that’s not because of algo trading or more people trading or whatever excuses somebody comes up with.

Evolution is the key of survival. BUt what tha hell knows theese experts about? They never did “right click buy/sell” on a chart. The basic rule of any bussines no matter if it is internet based or a restaurant “Never listen to the opinion of the experts” and “Don’t let the mass panic dictates you desicitions”


What John Taylor and Buckscoder are referring to are two completely different things. John Taylor is referring to the increase in professional big players coming in forex - these guys on the whole are not stupid and provide more professional competition in the marketplace. Buckscoder seems to be referring more to the retail side of things which have also increased - these guys are not winners by and large but they don’t make up a large percentage of the market all in all and don’t really factor in what John Taylor’s talking about. I’d be willing to listen to what John Taylor has to say - he does manage the world’s biggest forex trading fund after all and most likely knows what he’s talking about.

It just depends what is happening in the market, a couple of years ago the EURO took a massive dive, you could have put a short on in the morning when you got up, go to the pub, come back later and you could well have made a pile of money.

Wednesday’s are better than Monday’s, March is likely to be better than August, it’s impossible over Christmas, so the question is it more difficult? it’s compared to when.

Quite - I think that if you know what you are doing you can make a lot of money, whereas if you play at it you can lose a lot of money. That was true last year, it is true this year, and I fully expect it to be true next year.

sounds like someone is feeling nostalgic…

Things always were better in the good old times buddy…

Now who is paying a buck for everytime someone says or hears that being said??