What is the hidden game in Forex Trading?
Thursday, September 10th, 2009 at
6:46 am
I feel there is a game in Forex trading but i’m not able to figure it out. I feel it’s not transparent as all broker companies pretend, can any one advice me, is my feeling right or wrong?
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FX Mania
http://www.geocities.jp/fxtrading777/
Tagged with: game • geocities • jp
Filed under: Forex Companies
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the Forex doesn’t have a central organism where currencies are dealt. You have to think of it as the global exchange of currencies. If you go to a bank and buy US dollars with your local currency then you have participated in the forex, in other words you have participated in that global exchange. But the idea is much broader. Forex includes the exchange of goods and services, investment transactions, speculation and everything else involved with money, even when you purchase something in a mall for your own use. All this is hardly transparent which makes it difficult for the layman and not so layman. Thats the nature of the Forex but it doesn’t mean you can’t make consistent profits from this enormous market.
A complex system such as the worldwide exchange of currencies can be narrowed down to relatively simple concepts for you to use. However, exactly because of this reason and it’s low transparency, many scam artists arose to sell supposedly "profitable" trading strategies.
Be careful.
btw, there’s no game. Forex is just forex, it can’t be manipulated like a stock for example. The currency market is too large to be manipulated with the idea of scamming people.
Use a big broker when trading forex
fxtrade.com
I would say wrong. If you are talking about costs, as always this is hidden. Basically you have the cost that is associated with the spread. As you know the price is higher to buy than it is to sell. The diference goes to the "house". Then, this spread could be slightly widened to make your cost even higher. Then, the "house" may charge you commission.
Other than that FX is the cleanest, simplest form of trading.
If I have meisunderstood your question fell free to contact me on http://www.shareworld.co.uk
First there’s the non hidden game, which is simply that it is difficult to make consistent returns in any kind of trading because of the way financial asset prices work.
Then there’s perhaps a lot of "behind the scenes" stuff that the public is generally unaware of. Some of this is legal, other is borderline, and other is not legal. This can be anything from the way finance works on Wall Street, to less than honest dealings, to flat out fraud.
You don’t have to worry about reputable forex companies. They don’t engage in fraud. Look for companies that have memberships with securities dealers in the United States. That means they’re "regulated" and won’t rip you off.
Some non regulated companies might be a different matter.
Hi,
1. Firstly I would like to tell you that nobody could predict the market. Therefore Elliot waves together with some other technical indicators are very useful when you are making analysys for enter/exit point
2. All currency pairs are good. Some of them have higher volatility and some lower volatility. Usually traders are trading with several currency pairs that they like.
3. As you have noticed leverage could be as profitable as detrimental. For that reason traders use money risk management rules. The main rule is don’t risk more than 2% of your trading funds, which is rule No.1.
4. Rule No.2 – Listen and follow the market. Trend is your friend.
5. Rule No.3 – Don’t listen experts. They are paid for their speech. If their forecasts are so successful why they don’t trade themselves? Trading is much more profitable than salary for making forecasts.
6. Rule No.4 – Never trust "black boxes". All of them are created by historical data. Their presentations looks very good but market is alive because traders are live personse and nobody could predict next movement of thousands live traders.
7. There are many online forex brokers. I know nothing about forex.com as brokerage company. But I don’t like their trading terminal. I preffer MetaTrader 4.
Trading forex is very exciting and profitable business
Good luck!