Trading in the real world

well, to scalp the markets, you’ll need the right broker and platform, and not short time frames.
But also another thing. Scalping has never been profitable, as we all know the 90/90 in trading keeps circulating in circle of doom. by being a retail trader you trade the markets how they want you to trade it. being a pro trader stipulates something much different comparing to what the other 90% of losers do.
90% will lose capital or bomb their accounts within 90 days…and the broker? well he has got 90 days to make sure that you do, so they will be sending you info, analysis signals ect ect. No broker likes a successful trader, they are annoying,. So the broker has got 90 days to rape you, do you think he will wait till day 90? for sure not mates,let get on with it then…lets rape him. Perfect explanation of a broker luring you in with its options on the table and services they offer.
you become the bitch as a retail trader. the brokers bitch.

That my friends is why you need to be on the opposite side of the 90% that lose… Doesn’t matter if we talk about discipline, patience or character. Be the bigger guy. Be open minded and professional enough to know these things.

Actually I had already decided to cease posting here due to the lack of interest (I hate just talking to myself). But maybe I’ll add a few words here.

This so-called 90/90/90 rule is factually shown to be largely untrue nowadays. For example, under current regulatory rules issued by ESMA (European Securities and Markets Authority), European brokers have to actually declare the level of retail clients losing money - and they are hardly likely to exaggerate their numbers! This currently stands at around 70-75% with most such brokers, e.g.:

Forex.com (UK):
" CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money."

Whilst this only covers European brokers, other regulatory authorities are also tightening their grip on brokers, for example, by lowering maximum leverage and enforcing negative equity protection.

Nowadays, it is a fallacy that brokers in general do not want clients to win. It is only the style of the earlier times “bucket-shop” type brokers to live off Newbie traders’ equity, and in any case, in most cases it is the traders themselves that lose their own money without any “help” from the broker! These same non-regulated, or dubiously regulated, firms are also the ones guilty of spread manipulation, etc. But, these are, in my opinion, a dying breed.

The mainstream, properly regulated brokers want to see clients with long and successful trading accounts. If a trader is not winning consistently then he is not increasing his trading position size and no broker is going to make a living from a handful of microlots. It is a simple thing for a broker to pass large positions through to the real market and hedge (or partially hedge) their exposure.

So the real message to newcomers is to always select a well-capitalised, reputable broker that is properly regulated and with segregated client funds. Many of these brokers are also working on improving their own in-house training material.

So, in my opinion, that entire post is about 10 years out of date and only relates to the most nefarious brokers that somehow still seem to exist here and there in the remaining remote corners of the globe- and who still manage to squeeze funds out of the most gullible of wishful thinkers.

So, having said that, I’ll go back into hibernation… :zipper_mouth_face:

Yeah…uh…its ok mate. i do understand now why you are talking to yourself here.
you have a lot to learn

I wouldnt be suprised if the number is actually higher than 90%.
The brokers tells you that 72% lost money, but first you dont know in which timeframe, it could be in 3 months or 6, the higher the timeframe the higher the number will have a tendency to grow. Second because 72% lost money doesnt mean the other 28% made money, most brokers probably have a significant number of accounts that dont have funds in them, and those accounts didnt lost money but didnt make money either.

No they actually want you to deposit as much as you can, and blow the account as fast as you can, thats why they used to offer 1:500 leverage some even more.

Well you are 100% right on that one! :+1::crazy_face: Glad we can agree on something!

"I wouldn’t be surprised” is another way of saying “i dont know”
So thanks for your opinions and conjecture! :grinning:
BTW not only is leverage limited to 30% in many cases amongst reputable, regulated brokers, it is not compulsory for traders to use excessively high leverage even when they are available!
But, like i said, the brokers do not have to do anything to make clients lose money since at least some 70% do that through their own naivity and inexperience. This site is filled with threads on how and why newcomers lose.

But whatever the losing percentage is, it is far too high. But simply crying about it or just repeatedly pointing the finger just at the remaining bucket shops in this business is not going to help anyone do better!

There are a lot of experienced traders willing to help newcomers but unless they work at it like in any other profession they will never get anywhere. That is obvious!

But every profitable trader (and i don’t mean those make-believe millionaires) started somewhere and eventually got there. And “there” simply means consistently profitable, having already withdrawn at least their original own funds, and finding a comfort level for risk exposure.

I don’t know if you are a serious poster here or just another weekend troll, but your comments are on topic concerning trading in the real world so i thank you for your thoughts! :+1::grinning:

Note that you use past tense “used to”!

That is the whole point. No one is saying that brokers (or most any other business) are saints. Of course they make their money where they can! But the world changes, and the broker business response with it.

In those olden times, there was a constant flow of newbies with money to pour down the drain thinking they just might make a fortune. And, of course, brokers were not going to say no to that income! But that does not mean they were not also interested in the big size traders who make money and trade regularly.

But times have changed and the regulators have entered the ring and brokers needed to refocus their interests and client base. This means not only are the risks to Newbies more transparent but they are also more limited in what risks they can take via leverage.

So the broker income profile changes and their business strategy changes, at least within the areas properly regulated. Of course, there are still regions and administrations willing to allow the bucket shops to set up and, for some reason, still many newcomers willing to bless them with their savings.

The world is full of pitfalls and, as they say, “Fools and their money are soon parted”. Which also points to the fact that the entry criteria to retail trading is far too low and permits even the most unsuited people to risk their money - which in my opinion (and, yes, it is only an opinion) is one of the greatest reasons for so many people losing their money very quickly.

According to your bio you joined 13 hours ago and straight away to attack a long term contibutor and very successful trader in @Manxx

The idea of this site is to provide content that others will either find interesting and or informative.

So may I suggest you introduce yourself and tell us what type of trader you are and what you hope to gain from this site.

Blackduck

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You are spot on with this comment. I have been with the brokers I use for most of my trading career and rarely have I had to contact them with any problem. However when I have they have been incredible helpful and very professional.

It will be sad to see you go as personally I enjoy your contribution to this site.

Cheers

Blackduck

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This is an interesting comment. One minute you are saying you need the right market right broker and platform and no short timeframes. The next minute you are saying that scalping has never been profitable.

So please explain!! What is the right market, what is the right broker platform and timeframe?? And can you or can you not scalp and be profitable???

Blackduck

Very large financial markets include: Forex, Stock, Future, BO, Bonds, and more. and within these markets are a lot of trading products. As such, all cash flows will be heavily distributed throughout the world.
And only the person standing above can see where this money is concentrated. For retail traders who have money, they are not sure to buy such investment information :face_with_thermometer:

I have also been with the same (UK-regulated) brokers for at least 12 years now. And I have never had any negative issues with any of them. In fact, in spite of the inference that such brokers apparently do not “like” long term clients, I often receive positive slippage on both entries and exits - hardly symptomatic of a broker “out to get me”! :slight_smile:

To be honest, I never even hear anything from them except for their routine e-mail notices of contract changes, etc. They never try to impose ideas or training things or signals on me. They are just like a bank account where I do business and get confirmations and account statements as required. And that is about it.

I only decided to stop posting here because the original idea was to offer a place to discuss more deeply the issues that @lang15 raises in his excellent videos. But there seems to be no need for such a discussion forum as there is no response, and I really don’t want to appear to be just imposing my views on others! I guess those videos simply speak for themselves for those who want to learn which is a good thing! :+1:

I find @Lang15 to be a genuine nice guy who is also a very good trader and I like watching his videos. He speaks highly of you and with good reason. Stay well stay safe and happy trading.

Cheers

Blackduck

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This is surely the main argument in favour of technical analysis of price? No one can say what the majority of market participants are saying and even less about what they are actually doing in the markets.

But what we can see is the overall impact of the sum total of all that opinion and action as it impacts upon the price of financial instruments to the extent that they are free markets. And analysing the underlying pressures causing those movements is where TA finds its value? Or what do you think?

Yes I thought exactly them same thing when I saw the very first video of his and started going back through some earlier ones. I find them very realistic, genuine and in the real world.

He kind of fills the real-world gap between the two extremes usually talked about i.e. blown accounts and millionaires! :smiley:

Take care yourself, too! :slight_smile:

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I wouldn`t be suprided is another way of saying, its my opinion but i dont have a exact number.
The broker tells you that 70% lost money, but it doesnt tell you that the other 30% make money. Thats why i said that the longer the timeframe those statistics refer to the higher the % of losers will probably be.

I used past sense used to because most of them where now FORCED to reduce leverage by regulations.
Like U_FX said if you are a sucesfull trader you will be annoying to them because they will have more work because of you and less return.

Forced to reduce leverage, yes, but no one forces a trader to use those extreme levels of leverage. It is ignorance and greed on the part of the naive trader who over-extends their exposure in the rash hope of getting rich quick. And, sure, like I said, if a trader is dumb enough to give up his money so quickly using high leverage and short term trading then the broker is not going to complain very much about that!

In fact, any reasonable trader will usually agree that sensible risk management and account equity means there is no need for high leverage at all anyway!

As for brokers disliking successful big players, well I don’t where you get that view from! Again your opinion? Ok, whatever! But it really doesn’t matter what your broker “thinks” about consistent traders, they are hardly going to lose any sleep over it or try and “sack” you, so it is rather an irrelevant argument don’t you think?

As i understand it, some brokers do not encourage automated scalping involving huge numbers of trades each for a few pips. Otherwise, their only concern is managing their overall exposure. And they hardly hedge every microlot individually from every Newbie.

But I doubt if there are many brokers smugly laughing on the journey home because they managed to kill a couple of $100 accounts today! In fact, from an admin point of view, a content and successful trader is far less of a cost “burden” to a broker than all those people moaning because their 10-pip stops keep getting hit.

Anyway, you have said your view and that is fine. It is hardly going to change the world… so let’s leave it that maybe some brokers don’t like their clients. (and maybe some others (might, possibly) actually do! :joy:)

Like I said, You don’t know! It is all your opinion and speculation. Fine! That is what forums are for!

The main issue is that we do know that far too many people lose money. Whether it is 50-60-70-80-90%, whatever, it is far too many and for many different reasons!!

And the regulators are most likely to keep on tightening the screws until the figures are acceptable. But the reason for that need is to protect the fools and the innocents from themselves and unregulated educators and marketeers. If you really want to rant about something then watch some of @Lang15’s videos and see who are the real cowboys in this market!