All forex traders have a negative losing edge

Casinos have an edge of average 5% in their favour, this is why casinos make money.

https://wizardofodds.com/gambling/house-edge/

All forex traders have a negative edge, due to the spread. Every time a trader trades , he loses a 1 to 5 pip spread, if volatility is low and forex volatility can be very low, the negative edge of the forex traders can be 2 to 5%. This is why most traders lose money. The more you trade , the more you lose, the more you trade, the more money a broker makes.

All this technical analysis is lagging , it provides no edge.

https://en.wikipedia.org/wiki/Gambler's_fallacy

Forex traders also have a negative mental edge , because the human brain is designed to make them lose.

Evidence trend following has no edge. The great trend follower lost more money than he made.

https://www.earnforex.com/forum/threads/95-trendfollower-traders-lose-at-trend-trading.30230/

https://en.wikipedia.org/wiki/Richard_Dennis

$50 million losses in 1987 million in today's terms is around $200m to $300m

Most people who believe they can profit from forex , suffer from the dunning kruger effect.


Traders make mistakes and lose more

https://www.earnforex.com/forum/threads/traderss-mistakes.34543/


Virtually impossible to make money from forex

https://www.earnforex.com/forum/threads/virtually-impossible-to-make-money-from-forex.35968/

Trading forums are the blind leading the blind.



 
  • Like
Reactions: SymphonyTrading
Sure it's so, it's kinda impossible to make any realy money with that help really. I clearly do not see any real idea behind that matter. I do hope it will really get me going no matter what ? I just want some confirmation behind such thing. Can you please correct me ?

technical analysis does not give any edge , in fact it also has a negative edge. It can not grantee future profits will happen.

https://www.earnforex.com/forum/threads/technical-analysis-does-not-give-any-edge.35703/

https://www.earnforex.com/forum/threads/99-of-forex-traders-likely-to-lose.35678/

If you trade a million trades and pay 1.5 pips spread, you lose 2,250,000 in spreads , if systems do not work and technical analysis is useless and has no edge , you have negative losing edge.You will lose all your money.
 

SymphonyTrading

Active Trader
Sep 9, 2019
41
5
34
I agree with much that is said here in regards to human tendencies and the numbers not in your favor. I'm new to Forex, I have traded mostly futures eminis and equity options and I use technical analysis and have trading plan. That has worked for me in those markets. Am I in for a rude awakening in Forex ?
 
I agree with much that is said here in regards to human tendencies and the numbers not in your favor. I'm new to Forex, I have traded mostly futures eminis and equity options and I use technical analysis and have trading plan. That has worked for me in those markets. Am I in for a rude awakening in Forex ?

E minis are volatile , forex volatility can die , leaving traders with very high costs of trading volatility.E minis are predictable , forex t/a is random

https://www.earnforex.com/forum/threads/virtually-impossible-to-make-money-from-forex.35968/
 
  • Like
Reactions: SymphonyTrading
You have alot of negative posts

There is so much misinformation and opinions from amateurs , 99 % of stuff on forums is written by amateurs, these amateurs suffer from the D K effect.

The truth and good information is very negative.

 

DT77

Active Trader
Feb 24, 2019
316
47
44
54
If the trader's edge is bigger than the spread then the traders has an edge
 
If the trader's edge is bigger than the spread then the traders has an edge

An edge is present before any trade is placed, 95 % to 99% of traders have a negative edge.If they roll the roulette 1, 000 times , they are going to lose ...due to spread
 

DT77

Active Trader
Feb 24, 2019
316
47
44
54
Yes you are correct. But what if my strategy makes an average 10% profit on every trade. Who has the edge?
 
Yes you are correct. But what if my strategy makes an average 10% profit on every trade. Who has the edge?

If..............................................
 
The concept of an edge in business.



It is important to understand the concept of an edge , in any business venture. 98 % of new business start ups fail , because they do not have an edge. Established businesses decline because they lose their edge.



To understand the edge , we have look at casino edge.

Casinos have an approximate average edge, in favour of the casino, of 5 %.This means that , if the casino games are played a thousand times , the player is likely to lose 5% of the time, he may win 100 consecutive times , but he he still lose 5 % of all games played.
 
Last edited by a moderator:

jim carter

Trader
Oct 5, 2019
12
1
7
35
Yes you are correct. But what if my strategy makes an average 10% profit on every trade. Who has the edge?
Its almost impossible to make a 10% profit on every day. And if its so, I would like to know what is that strategy that guarantees a 10% profit on each trade.
 
Its almost impossible to make a 10% profit on every day. And if its so, I would like to know what is that strategy that guarantees a 10% profit on each trade.

All forex traders have a negative edge, due to the spread. Every time a trader trades , he loses a 1 to 5 pip spread, if volatility is low and forex volatility can be very low, the negative edge of the forex traders can be 2 to 5%.They can lose everyday
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,443
903
144
Odessa
www.earnforex.com
All forex traders have a negative edge, due to the spread. Every time a trader trades , he loses a 1 to 5 pip spread, if volatility is low and forex volatility can be very low, the negative edge of the forex traders can be 2 to 5%.They can lose everyday
And if the trader's edge is greater than the spread? Or if the spread is zero?
 
And if the trader's edge is greater than the spread? Or if the spread is zero?

An edge is present before any trade is made, therefore any trader's edge is subjective opinion, the trader also has a negative psychological edge , because the human brain is wired to lose in trading. Objectively and psychologically , the trader has no edge , so it can not be greater than the spread.

We can dream on , believing a trader has an edge, but it is only a dream. So the question is irrelevant.

No one offers zero spread, there is no such thing as a free lunch. When broker offers zero spread , you are asking for no fills , re quotes, slippage and brokers going bust. It a scam.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,443
903
144
Odessa
www.earnforex.com
An edge is present before any trade is made, therefore any trader's edge is subjective opinion, the trader also has a negative psychological edge , because the human brain is wired to lose in trading. Objectively and psychologically , the trader has no edge , so it can not be greater than the spread.

We can dream on , believing a trader has an edge, but it is only a dream. So the question is irrelevant.

An edge is nothing more than a positive expectancy of trades. Saying that traders cannot have an edge would only be true if markets were 100% efficient (which they obviously aren't) or that traders are capable only of random trading (which is also false).

No one offers zero spread, there is no such thing as a free lunch. When broker offers zero spread , you are asking for no fills , re quotes, slippage and brokers going bust. It a scam.

Quite a few brokers do. Of course, they charge commission for trading and slippages do occur on larger volumes. But with low trading volumes, they work rather great.
 
An edge is nothing more than a positive expectancy of trades. Saying that traders cannot have an edge would only be true if markets were 100% efficient (which they obviously aren't) or that traders are capable only of random trading (which is also false).



If markets are inefficient, 99 % of forex traders would make money, but the reality is 99% of forex traders lose.


Quite a few brokers do. Of course, they charge commission for trading and slippages do occur on larger volumes. But with low trading volumes, they work rather great.


Positive expectancy is not an edge, it is a historical expectancy of the same forex casino game i.e . This positive expectancy or so called edge of yours will fail in the future. This is why writing all sorts of analysis, without using it works, because it is never used for real trading.

There are no forex systems with an edge. An edge is something that happens more often repeatedly, in a random situation or random forex game or a casino game.


correction:
Quite a few brokers pretend to give zero spreads . Of course, they charge commission for trading and slippages.

commission for trading and slippages = equals spread, so same thing .