The smartest thoughts about trading - page 5
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Isn't there going to be a scheme? Isn't it easy to draw a diagram of what everyone always talks about (I didn't say such a thing) - some people losing is others winning on FX? Where does the money go for the 95% of traders who lose all the time?, ok, trading isn't easy, so most lose money. And if, hypothetically, assuming 95% of traders win, where would the money come from in that case?
Yes, yes, those questions belong in this thread, or shall we pretend that no one has ever had such questions, it all goes without saying?
Isn't there going to be a scheme? Isn't it easy to draw a diagram of what everyone always talks about (I didn't say such a thing) - some people losing is others winning on FX? Where does the money go for the 95% of traders who lose all the time?, ok, trading isn't easy, so most lose money. And if, hypothetically, assuming 95% of traders win, where would the money come from in that case?
Yes, yes, those questions belong in this thread, or shall we pretend that no one has ever had such questions, it all goes without saying?
If we assume that all traders in the market started to buy Euros for dollars at some point, the Euro price will continue to rise and there will be a trend. The trend will stop when the buyers run out of money (which they are willing to invest). If nothing is bought and sold, the price stands still. At this point, everyone will be in profit. Suppose everyone guessed at one moment that the price will not rise further and simultaneously decided to close transactions. Do you think everyone will profit? The answer is no, because prices will gap and return to the initial level. Some trades will be closed at the beginning and some will have "Price has changed" or "Trade-flow is busy" on their screen. And this is not because of brokerage companies. This will happen to all brokerage companies. With this type of recalculation, even if all bids are the same, less than 50% of traders will win because there is a spread. So it is theoretically impossible to have 95% winners with the same rates for all.
If we assume that all traders in the market started to buy Euros for dollars at some point, the price of Euros would rise steadily, there would be a trend. The trend will stop when the buyers run out of money (which they are willing to invest). If nothing is bought and sold, the price stands still. At this point, everyone will be in profit. Suppose everyone guessed at one moment that the price will not rise further and simultaneously decided to close transactions. Do you think everyone will profit? The answer is no, because prices will gap and return to the initial level. Some trades will be closed at the beginning and some will have "Price has changed" or "Trade-flow is busy" on their monitor. And this is not because of brokerage companies. This will happen to all brokerage companies. With this type of recalculation, even if all bids were the same, less than 50% of traders will win because there is a spread. So 95% of winners with the same rates for all is theoretically impossible.
Not exactly. If we assume that ALL traders decided to buy Euros for dollars, at that point, the market will cease to exist and there will be no more trading. Trading will start when at least 1 trader decides to sell euros, with the price set by the seller. it may even become almost infinite. All this only happened because ALL traders decided to buy.
Suppose all at one moment guessed that the price will not rise further and at the same time decided to close trades. How do you think everyone will profit?
No one will profit, because there is no one to sell, because ALL at the same time decided to sell.
I am not exaggerating. The point is that if traders suddenly realised that prices would rise, they could buy now from sillier traders, and sell later at a higher price.
But in the event that expectations were wrong, gaps will occur. and the price will come back, but this is not a mathematical fact, the price may return to a completely unknown level.
Do you think everyone will profit? The answer is no, because there will be a gap and prices will return to their original level.
No one forbids the use of SL as an insurance for both losses and profits. And in general, the main thing is to exit the market on time, but there is always a problem with that.
The winners are well-known service providers - brokers, banks, brokerage companies - their risks are minimal or non-existent, if the brokerage company is honest, then the money of losing traders will be taken by the liquidity provider - the bank, it is profitable for the bank to perform virtually hedged transaction opening and closing loss-making orders
david2: and vasya_vasya:
You seem to have forgotten that traders do not trade with each other, there is no exchange of currencies (commodities) between them. They operate with the deposit currency (not a pair) and never see any other currencies in their hands, no matter what pairs they trade.
david2: and vasya_vasya:
You seem to forget that traders don't trade with each other, there is no exchange of currencies (commodities) between them. They operate with the currency of the deposit (not a pair) and they never see any other currencies in their hands, and it doesn't matter what pairs they trade.
I understand just fine how pricing is done in forex.
dmmikl86:
Аксиомы биржевого спекулянта
Never keep track of the price of a stock you've already sold.
Just like chicks have this habit, after they buy another piece of clothing, they spend half a day looking for other prices for the same stuff. would choke :(
I have an excellent understanding of forex pricing.
That's great. If you don't mind, could you draw a diagram, please - where the money comes from, where it goes. Money flow in short. Not pricing, but the cash flow.
In fact, I didn't originally ask a question about pricing, but because of that phrase:
A market exists only because the redistribution of money always takes place at the expense of the majority of participants for the profit of the minority.
Isn't there going to be a scheme? Isn't it easy to draw a diagram of what everyone always talks about (I didn't say such a thing) - some people losing is others winning on FX? Where does the money go for the 95% of traders who lose all the time?, ok, trading isn't easy, so most lose money. And if, hypothetically, assuming 95% of traders win, where would the money come from in that case?
Yes, yes, those questions belong in this thread, or shall we pretend that no one has ever had such questions, it all goes without saying?
Scheme
Think about where the money goes into the system by different countries, losing one - that is rightly noted, but by the state that is everyone who is taxed, it only takes a skillful grasp.