Not long after I first became involved in Forex trading I began to have a series of insights. I noticed that other people did not appear to be aware of some of the things that somehow seemed obvious to me. The funny thing about Forex Secrets is that once you see them, you will wonder why they are not obvious to everyone. In the Forex Trading world people are attracted to this business primarily through the marketing efforts of the Forex brokers. And most of the training available is either directly or indirectly connected to the Forex broker industry. To put it more clearly, if the training is not directly through a broker it is likely that the training program is connected with an introducing broker. An introducing broker is a person or company that refers customers to a broker and receives compensation in the form of a percentage of the PIP spread that the broker collects on all the trader’s trades.
Now, when I first learned about Forex brokers I assumed that it would make business sense for the broker to be very concerned about the trader’s long term success since they seem to make their money from the PIP spread that is charged on each of the customers’ trades. Apparently, that was a naive assumption on my part. It didn’t take long to start hearing about how most of the retail Forex brokers in the U.S. actually keep the trades “in house” meaning that they do not really exist on the interbank market. Because it is a known principle that 90-95% of Forex traders fail and lose their accounts usually within 3 – 6 months, it makes business sense for brokers to just keep their accounts instead of being content with the PIP spread on the trades. If this is shocking or does not make sense just do some research on the subject and you will surely find plenty of information to further enlighten you.
So there are two things to consider here. One is that many Forex brokers may have a vested interest in the certain loss of the majority of traders. And the second is that Forex brokers have a vested interest in traders placing many trades on the short term time frames. Is it any wonder that almost all Forex trading training courses teach only how to trade on the extreme short term time frame?
So the first thing that should be obvious about Forex trading but still remains a “secret” is that in order to succeed you will want to do what the rest of the world is not doing.
 |
|
|
|
|
|
|
|
|
Forex secrets
Not long after I first became involved in Forex trading I began to have a series of insights. I noticed that other people did not appear to be aware of some of the things that somehow seemed obvious to me. The funny thing about Forex Secrets is that once you see them, you will wonder why they are not obvious to everyone. In the Forex Trading world people are attracted to this business primarily through the marketing efforts of the Forex brokers. And most of the training available is either directly or indirectly connected to the Forex broker industry. To put it more clearly, if the training is not directly through a broker it is likely that the training program is connected with an introducing broker. An introducing broker is a person or company that refers customers to a broker and receives compensation in the form of a percentage of the PIP spread that the broker collects on all the trader’s trades.
Now, when I first learned about Forex brokers I assumed that it would make business sense for the broker to be very concerned about the trader’s long term success since they seem to make their money from the PIP spread that is charged on each of the customers’ trades. Apparently, that was a naive assumption on my part. It didn’t take long to start hearing about how most of the retail Forex brokers in the U.S. actually keep the trades “in house” meaning that they do not really exist on the interbank market. Because it is a known principle that 90-95% of Forex traders fail and lose their accounts usually within 3 – 6 months, it makes business sense for brokers to just keep their accounts instead of being content with the PIP spread on the trades. If this is shocking or does not make sense just do some research on the subject and you will surely find plenty of information to further enlighten you.
So there are two things to consider here. One is that many Forex brokers may have a vested interest in the certain loss of the majority of traders. And the second is that Forex brokers have a vested interest in traders placing many trades on the short term time frames. Is it any wonder that almost all Forex trading training courses teach only how to trade on the extreme short term time frame?
So the first thing that should be obvious about Forex trading but still remains a “secret” is that in order to succeed you will want to do what the rest of the world is not doing.
Now, when I first learned about Forex brokers I assumed that it would make business sense for the broker to be very concerned about the trader’s long term success since they seem to make their money from the PIP spread that is charged on each of the customers’ trades. Apparently, that was a naive assumption on my part. It didn’t take long to start hearing about how most of the retail Forex brokers in the U.S. actually keep the trades “in house” meaning that they do not really exist on the interbank market. Because it is a known principle that 90-95% of Forex traders fail and lose their accounts usually within 3 – 6 months, it makes business sense for brokers to just keep their accounts instead of being content with the PIP spread on the trades. If this is shocking or does not make sense just do some research on the subject and you will surely find plenty of information to further enlighten you.
So there are two things to consider here. One is that many Forex brokers may have a vested interest in the certain loss of the majority of traders. And the second is that Forex brokers have a vested interest in traders placing many trades on the short term time frames. Is it any wonder that almost all Forex trading training courses teach only how to trade on the extreme short term time frame?
So the first thing that should be obvious about Forex trading but still remains a “secret” is that in order to succeed you will want to do what the rest of the world is not doing.
Subscribe to:
Post Comments (Atom)
Posts
0 comments:
Post a Comment