Forex scam

[Genie47]

Please read this article from Wiki.

 

http://en.wikipedia.org/wiki/Forex_scam

 

So does it mean that all this talk about making money from Forex is a pipe dream since it is a negative sum game?

[Square_guy]

Firstly it is wiki. Second it is a collection of quotes of newspapers and journals. Both can be extremely misleading taken on their own.

[Stary]

Please read this article from Wiki.

 

http://en.wikipedia.org/wiki/Forex_scam

 

So does it mean that all this talk about making money from Forex is a pipe dream since it is a negative sum game?

 

 

whoever who wrote that has a very poor knowledge about forex as a trading tool.

 

I personally know so many forex traders who trades at home and still able to make a living out of it.

 

Which investment/speculation tools was ever a zero sum game? Even the low cost ETF is a negative sum because you still have to pay commission charges anyway. But that doesn't mean you will surely lose money in ETF.

 

Same with stocks. It was always a negative sum game but surely you have heard of successful retail traders as well.

 

Whether you make money or not in trading has nothing to do with zero sum or negative sum. It has to do with your technical analysis ability and whether you have the right psychology and money/risk management skills.

 

 

[Khyber]

whoever who wrote that has a very poor knowledge about forex as a trading tool.

 

I personally know so many forex traders who trades at home and still able to make a living out of it.

 

Which investment/speculation tools was ever a zero sum game? Even the low cost ETF is a negative sum because you still have to pay commission charges anyway. But that doesn't mean you will surely lose money in ETF.

 

Same with stocks. It was always a negative sum game but surely you have heard of successful retail traders as well.

 

Whether you make money or not in trading has nothing to do with zero sum or negative sum. It has to do with your technical analysis ability and whether you have the right psychology and money/risk management skills.

Well sais starry ...

[Chewbacca]

I cannot agree with Stock market being a zero or negative sum game.

 

That's the first thing that crossed my mind when I read the article.

 

But dividends, options, free child stocks (whatever the technical term is), etc makes it's positive sum game.

[Stary]

But dividends, options, free child stocks (whatever the technical term is), etc makes it's positive sum game.

 

The article is looking from the trading point of view and not from the investment point of view.

 

From the trading aspect, nothing can ever be a zero-sum. If it is zero sum, then all the brokers and trading houses will have nothing to earn.

[Freestylers09]

actually i dun noe whats negative or zero sum means..LOL

[Acemundo]

actually almost all systems are zero sum game.

 

stock market would have been one as well if not for the fact that the stocks represents value of company and that company can grow and pay dividend.

 

hence, only non-closed system like stock market are not zero sum game. Then again, whether the company can grow is dependent on the management of the the company whose shares are traded over the counter. some of the management of such companies I have seen are just contented to draw big salaries and keep level of operation status quo. Shares of such companies could be zero sum or negative sum.

Edited May 6, 2010 by Acemundo

[Acemundo]

zero sum means in a close system, for one to gain x dollar, the other parties must collectively lose x dollar.

 

negative sum means almost the same, except that the x dollar means 0.99xdollar for the winner and 1.01xdollar for the losers after deducting transaction or brokerage cost.

[Freestylers09]

oh....

 

but i feel is rotating around de ba...

 

even trading firm also use the $ to hedge it like those CFD players shorting etc..so this will never end i guess

 

different day of the month,this hegde fund etc evolve around from stocks market etc..play a part in it also..

 

neverending game is how i feel..so who is the real loser or winner? maybe its the percentage of comission that make firms "sure win"

 

imo

[Acemundo]

hehe if it is rotation then all will get equal chance and equal win loss over a period of time. but it doesn't happen that way. some always lose, others always win.

 

this game is mostly big fish eat small fish. granted there are a few small fishes that can make good money but most times it is the big fishes that has the information beforehand. i still remember one particular stock i held in the past suddenly rise quite significantly. small fish like me don't know and just sell it. big fish know there is acquisition coming up which was announced in the coming weeks.

[Freestylers09]

hehe if it is rotation then all will get equal chance and equal win loss over a period of time. but it doesn't happen that way. some always lose, others always win.

 

this game is mostly big fish eat small fish. granted there are a few small fishes that can make good money but most times it is the big fishes that has the information beforehand. i still remember one particular stock i held in the past suddenly rise quite significantly. small fish like me don't know and just sell it. big fish know there is acquisition coming up which was announced in the coming weeks.

 

 

nothing special..i dun see the up or down end of day..i see during the intraday trading timing

 

wah...i still remembered i saw ard 4pm -20+ for index,5 pm +50 due to window dressing,everyone say kelong..LOL

 

counters morning up 10c from 40c-50c..afternoon cornered people become negative 7c..etc etc

 

when big boys doing distributions..scary sia..which houses selling etc..

 

its a tiring game..muz think alot..LOL

 

 

[Acemundo]

hhaa if u see intraday trading you must have the time to monitor lor...

 

so most passive investor are still gonna be caught out. basically passive investor can only hope to ride the wave with the big boys. big boys gain $1, you only gain maybe $0.70. if you move wrong direction from the big boy, then instead you lose $1 to them.

[Chewbacca]

The article is looking from the trading point of view and not from the investment point of view.

 

From the trading aspect, nothing can ever be a zero-sum. If it is zero sum, then all the brokers and trading houses will have nothing to earn.

 

Eh, if you look at it this way, then nothing is ever zero or +ve sum game.

 

In the end, someone's got to feed the brokers and trading houses. And stocks much better than trust funds in this regard.

[Genie47]

I think this URL is more informative of Forex.

 

www.babypips.com

 

Has a school as well.

[Albeniz]

UK pound is now S$2.04+ and Euro is ~S$1.77.

 

Time to load some?

[Sosaria]

UK pound is now S$2.04+ and Euro is ~S$1.77.

 

Time to load some?

 

If you're holding for a long term, and have a load of spare cash on standby, then yes, go ahead. For sure, the Pound and Euro are now below normal levels, and will surely rise again to what they were before. But who knows how long it takes?

 

To make sure you can get some money out of forex, for not-so-large amounts, it's best to handle your cash yourself without going thru brokers. Open a bank foreign currency account, etc.

[Albeniz]

Deleted. Double post.

Edited May 7, 2010 by Albeniz