All forex traders have a negative losing edge

Discussion in 'General Forex Discussion' started by new digital, Sep 11, 2019.

  1. new digital

    new digital Master Trader

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    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.





     
    SymphonyTrading likes this.
  2. Sarn642

    Sarn642 Trader

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    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 ?
     
  3. new digital

    new digital Master Trader

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    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.
     
  4. SymphonyTrading

    SymphonyTrading Trader

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    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 ?
     
  5. new digital

    new digital Master Trader

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    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/
     
    SymphonyTrading likes this.
  6. new digital

    new digital Master Trader

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