No the vast majority of traders go broke purely because they cannot trade. Brokers advertise their ability to meet a traders needs. They don’t force people into opening an account and start trading. They don’t know the skill of that trader and they are not responsible for the trades that trader makes.
If a trader makes bad trading decisions and then loses all his money that again is not the brokers fault or not as a direct result of what the broker does.
Only the trader is responsible for his or her ability to make money and most traders are not skilled enough or educated enough to be able to make it in the trading game.
Yes the number’s outrageous. Also that lower leverage under ESMA may have actually improved things for private retail traders.
For the future I see there’s room for a “middle ground” class of trader - one who has passed a mandatory test of competence. The upside for these guys might be they retain the protections that private retail traders have but professional traders don’t, but they can use smaller accounts than the pro clients and have more relaxed leverage allowances.
I’m coming from the starting point that ESMA’s objective is firstly to protect the industry.
Yes, I think it had two big effects. Firstly, it made trading more unattractive to small equity accounts once they realised that it would take a much longer time to reach a high level of profitability (and also restricted what the marketeers could promise!). Secondly, it raised the awareness of the dangers of trading and the high risk of losing money.
These are some of the impacts that major brokers have had to consider in changing their business rationale and clientele appraisal.
I certainly agree that there should be some kind of qualification for trading and one way would be through progress development within the brokerage. But that is a big but important topic!
I generally only trade instruments that interest me personally, like oil, EURGBP, stock indices, so I naturally follow these topics in general as well as in trading. So, although, I trade off my TA analysis, I can’t deny that there is probably some additional input from my own thoughts! But I couldn’t quantify that!
What kind of additional analysis do you consider essential?
Now you are just making yourself look silly as well as undermining any credibility that might have existed in your former posts.
Instead of resorting to spraying personal insults about people who are not even here (the usual response of people who have nothing concrete to say), I’d suggest you go for a nice Sunday walk instead of imitating a typical weekend troll.
Yes it can be very limiting, if not actually suffocating, for a small equity account. And I guess that was (part of) the idea.
I think leverage is one thing that could certainly be earned by one’s track record with the broker. I.e after 6 months it can be increased, etc.
But I guess that is not always so easy as people have accounts for various reasons. Separate accounts can be used for short term or long term trades, different instruments, testing systems, and so on.
This is, in fact, one way that some losing accounts may actually even be winning accounts if they are aggregated across all accounts held by a trader in various brokerages. e.g. a commodities account with one firm may be at a loss whilst the mainstream forex account is well in profit at another.
I have being around the markets a long time and make a decent living from them as shown pretty much daily, however when I see these arguments there is something that is missed out all the time. The average retail trader has none of the skill set to be able to make a wage as they believe that its a few buttons pressed and a fortune in the bank. Well suck it up buttercup as the trading world is hard the same as flying a plane, as planes are pretty much automated as well but could you do it … not unless trained.
The failure rate is not a true reflection as it is based on all traders of which a good 3 quarters never put any effort in and when they lose blame every body but themselves.
Very easy to blame someone else for your own failings , as is seen here all the time by the clueless who will never make it as too dumb to understand that the flashy cars and the stupid claims of the instagram posts are fake or want everything FREE so deserve to fail.
Have you every being at a level that you can back this up ? As the brokers want successful traders at a higher level as we pay higher fees due to our positions and don’t cost the broker a penny in advertising , to gain a new client costs the firms a fortune and if they rock up and blow a £500 account the broker has lost money. The end game for the broker is to keep a good trader trading not chase a revolving door of the clueless
I have on many an occasion expressed my dislike of trolls and today has just proved that they are here , clueless without any info to back up their claims. @Manxx you are right to back off from forums because as long as the likes TP89 are here there is no point as they will never succeed and simply throw insults when proved wrong as possibly believe the earth if flat too , sad world we live in. Maybe the moderators should be investigating the actions of such people as clearly here not to contribute but insult and in a modern world this behaviour is unacceptable. You cannot have a a clear debate or share ideas when someone is clearly just out to cause harm.
Missed the point and clearly never being in business , the cost of sale is not $500 total out of it comes the building, cost of employees , heat , advertising insurance etc etc the world is not free
He has already had three posts removed from this thread. The only take-away from his entire input is that losers are nearer 90% and that our brokers don’t “like” us because we make money. OK, if that is what he wants to believe, then let him. Personally I never hear anything from any of my brokers so I don’t really care what they think - besides, who, exactly, in the broker company, might be expressing this dislike? The shareholders? The Chairman? Managing Director? Systems Manager? Sales staff? Compliance staff? admin? Hmm, maybe ALL of them!
The rest of the comment is best left to the moderators to deal with!
BTW, I watched your vid about the edge and I am going to post some thoughts on that one, kind of an extension to your points. But now it is time to take the dog for a walk in the sunshine!
Hopefully the mods will look at the actions as not the first time and with look remove all together as clearly has no intention of being civil.
I know I say its nice where you live but dont rub it in as raining here lol , I dont hear much from brokers either but do have chats every once n a while and speak with many at catch ups. They generally do want traders to trade at a profit which is why they give the tools out, gaining new guys costs a fortune and the clueless will never understand that but then again they think a green lambo will be theirs in a week
Hey that’s not fair!!! You’ve had a heatwave andBBQ weather for weeks, I’ve only just got above zero and out of those long underwear things!
Actually, it has been a very cold spring here and the leaves are only just appearing on the trees, but the plus side is that we are heading towards the midsummer with no night at all, just daylight 24 /7.
This is our pup in the forests bordering where we live - see no leaves on the deciduous trees, thankfully there are lots of conifers!
Personally I never hear anything from any of my brokers so I don’t really care what they think - besides, who, exactly, in the broker company, might be expressing this dislike? The shareholders? The Chairman? Managing Director? Systems Manager? Sales staff? Compliance staff? admin? Hmm, maybe ALL of them! 
, I dont hear much from brokers either but do have chats every once n a while and speak with many at catch ups. They generally do want traders to trade at a profit which is why they give the tools out, gaining new guys costs a fortune and the clueless will never understand that but then again they think a green lambo will be theirs in a week
