The trading volume brought about by speculators is estimated to be more than 90%!

Yo Hello Forex Heroes , From morocco , im really affraid of trading after Reading That topic yesterday , in the lesson that talk about the markets liwuidity in what is forex , so i searched about who are speculators it and i was very scared because i though that 90% of traders Take a super risk , idk , in samury im so so affraid if there is a big persontage of Luck in the Forex :face_with_peeking_eye: , INeedHelp :slightly_frowning_face:

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Nobody knows for sure what proportions of forex volumes are speculative, because it isnā€™t a centralized market, so there isnā€™t even a way of knowing what the volumes transacted are, let alone the motivations of those transacting them.

But authority sites like Investopedia and Wikipedia have been saying for years that more than 90% of the volume is speculative.

I find this easy to believe, because I think the main participants, by volume, are people like George Soros, and investment banks, and hedge funds, and thatā€™s all ā€œspeculative volumeā€.

Be aware, also, that when you ā€œtradeā€ forex with a counterparty ā€œbroker,ā€ your trades are only bets, and no currencies are changing hands, and these ā€œtransactionsā€ are not in any market at all, anyway.

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Hi, help with what? Regards Greg

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This is what our AI friend says. I tried 3 times to get quantification but Co-pilot uses qualitative words in its response.

You

describe all the parties involved in forex trading and their quantitative contribution to the volume of trading in the forex market

Co-pilot

Certainly! The forex (foreign exchange) market is a vast and decentralized financial arena where currencies are traded. Various participants converge, each contributing to the overall trading volume. Letā€™s explore these key players and their quantitative impact:

  1. Commercial Banks:
  1. Central Banks:
  1. Investment Banks:
  1. Multinational Corporations:
  1. Hedge Funds:
  1. Retail Traders:
  1. Market Makers:
  1. Speculators:

Understanding the roles and quantitative contributions of these participants is vital for navigating the dynamic forex market. Their combined actions shape liquidity, volatility, and trading opportunities. :star2::currency_exchange:

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i just want to Know if Luck control forex trades , if its so risky , I can Learn evrything about anything but , the funny thing is i heat luck and I love trading Forex exactelly , i know that Stocks is Less Risky but idk why i love trading forex , i just need some hope to continu it

Hello there! it is understandable to feel worried about trading. while itā€™s true that trading involve risks, many successful traders focus on disciplined strategies and risk management. with my experience I always seek guidance and start with smaller trades to build confidence.

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Spot FX market is deepā€¦ futures FX market is deeperā€¦ FX derivatives market is massive.

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Iā€™m not sure what can help you. Scare of forex market, I assume you are overthinking of it. Forex market is not that bad. But it must be told badly, to avoid any timid personality to have involvement in. :grin:

You have to realize every single aspect of our life is speculation (99%). You go to a new restaurant, you donā€™t know how the taste, you go in to have a try. You are speculating it probably can be ā€œeatenā€. You sent your resume to find a job, also consider as speculation. Itā€™s a game of number or statistic. The more you send, the more interviews you may have. Even when we are looking for a partner in life, itā€™s also a speculation.

Back to Forex Market, itā€™s true that Forex is traded by speculator for 80%. The rest 20% will be done by institutions. Iā€™m borrowing Pareto Principle here, base on my last data the number, more and less, is about the same.

Take note: Most institution trades forex as hedging mechanism. Profit is not a necessity.

You have to know the 20% of the institution that get involvement controls over the rest of it. The reason is simple the institutionā€™s fund is extremely huge. Imagine, there can be a thousand of us, retail trader. Let say each of us using 1k USD. Our power will be 1 million USD. The institution trader can be only 200 firms. But they are bringing 10 million each. How can we fight them? :sweat_smile: This is one of the reason of why forex is be said as a high risk instrument. 90% traders is losing money.
The same thing for statement 90% people fail to find their life partner for the first attempts.

You have to know, most traders who trade on retail broker is an OTC product. The transaction isnā€™t done in an exchange. That means, even you trade 10 million lot, it wont effect the price at all. The price on our chart is price movement by the gigantic institutions and government central banks. So we, retail traders, are only a tiny little bug in the middle of dinosaurā€™s fight. :sauropod: ROARRRRRā€¦

As a little tiny bug, we just make a hop, following those dinosaurs. Careful, donā€™t get stepped flat. You must analyze who are the strongest, suck it blood. Once you feel enough, immediately jumps back to your bunker. Even the strongest dinosaur will get tired and down :grin:

I wish this illustration can enlighten you ā€¦ Now look at how Goldsaurus will fight USDaurus. Who will win? :t_rex: :sauropod: ā€¦ roarrrrrrr

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Thank Brother :heart: :slightly_smiling_face:

Trading is a game of probability, if you know how to trade, luck is nothing to do.

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hhhh bro you are stoping My bran :grin: im just Fighting to learn what is forex :sweat_smile: But thanks for the information :heart: Ill stay Hard :fire: :crossed_swords:

Helloooo! :blush: Welcome welcome! :smiley: I mean, trading is mostly about your strategy and discipline. But I wouldnā€™t say luck plays absolutely no part in it. :open_mouth: And also, about this comment on stocks being less risky, if youā€™re concerned about forex being easily manipulated against ordinary traders like us, I feel like itā€™s much easier to do that with stocks. :sweat_smile:

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Since youā€™re already going through the school, Iā€™m sure youā€™d go through this lesson in the coming days, but hereā€™s a lesson about the stocks vs forex thing I mentioned earlier. :blush: Good luuuuck!

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Thank you very much @ria_rose, I think i just had an emotional War in my brain on Risky Forex

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HAHAHA I feel you! :blush: I have a lot of those happening too. :stuck_out_tongue: But I hope you donā€™t get discouraged by it. :smiley: Good luck with your trading! :smiley:

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Hhh thanks
for your support :slightly_smiling_face:

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I think youā€™re scared to lose money. Thatā€™s usually the biggest fear. Next comes failure or losing in general. So what do you do?

Step 1: DONā€™T trade real money if you donā€™t have the real money.
Step 2: Trade a DEMO account.
Step 3: Realize that you will LOSE. Itā€™s a guarantee. So you need proper risk management to keep you in the game.
Step 4: Understand what proper risk management actually means. Itā€™s more than just a stop loss.

Thatā€™s a good start for you. Donā€™t overcomplicate it.

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Helloooo! :blush: Just wanna check in with you. I hope youā€™re doing a lot better than you were last week. :blush: Have you already tried demo trading? :blush:

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No I didnt , I Think im to far for it , Im right now just Exploring This world how its working , and its littrelly amazing , i Downloaded TradingView to see the big picture , just a few Days

Yep! Thanks brother for the Great advices