Why isn't everyone gambling on Forex?
With 500:1 leverage, trading 10 standard lots (or $1,000,000) of a currency is only $2000. If a currency moves 100 pips in your favor, that's $1000 profit off $2000.
With 250:1 leverage, that's $1000 profit off $4000. With 100:1, it's $1000 profit off $10,000.
Because people also lose when gambling.
Then don't lose.
The way not to lose is to not play.
What's the fun in that?
If I want fun I can buy fun for a known price.
>buying fun where the enjoyment is temporary
>not gambling fun where the enjoyments could be perpetual
and if it goes against your favor? you owe your broker.
marketwatch.com
What kind of idiot trades without a Stop-Loss?
no broker guarantees stop loses. your orders literally mean jack shit
>shorting a meme stock
Nice way to JUST yourself
Just another reason why options are awesome.
>With 500:1 leverage, trading 10 standard lots (or $1,000,000) of a currency is only $2000. If a currency moves 100 pips in your favor, that's $1000 profit off $2000.
>With 250:1 leverage, that's $1000 profit off $4000. With 100:1, it's $1000 profit off $10,000.
What are the losses with this leverage?
What could possibly go wrong? What percentage of people are successful FOREX traders, just curious?
How do Index fund investors fare against FOREX traders?
Once a stoploss is hit a market order is sent meaning you get filled at an abhorrent price PLUS the huge spread which these "2000:1 leverage" brokers offer.
they get rich off of gamblers.
>lose all your money
>enjoyment over
nice perpetual enjoyment you got there
>If a currency moves 100 pips in your favor, that's $1000 profit off $2000.
What happens if it moves 100 pips down?
>marketwatch.com
I thought they liquidate you before that and you couldn't end up owing money on margin? Someone said polo does that at least... I don't do it obviously
Why do people always bring up examples like this when talking about trading?
If you're that retarded you deserve to lose your money.
So you're telling me I can go on this Forex site, bet $1, and potentially make $250 today? If I'm wrong, I lose $1 who cares. Then repeat?
look up "leverage"
they won't let you use that kind of leverage with only $1 of collateral, and if you did, you would lose as much as you stand to gain
No, if it goes the other way you owe $250 for the $1 collateral you put up.
>losses
Depends on how much you have on the trade and how many pips you lose/gain. As you can imagine, greater leverage equals greater losses and gains respectively, but on a 1mil demo account I made like 15k overnight on 100:1 leverage betting everything.
I lost 18k with another 1mil demo account that made the opposite order.
>wrong, success
myfxbook.com
Very few are successful, this guy has data going back to '03 and he has a podcast where he's talked to some of the best forex traders in the world.
>index
index fund investors actually make money. Forex is for losing money. The brokerages for forex put you in a loser circle the moment you join, if your account survives for 3 months then they have to actually take action to prevent them losing money from your competence.
It's not for the faint of heart, it's probably not a good idea to call it an 'investment' in the first place.
Of course, the pros are that you can make more than you would in a year in an index off one decent news trade. One guy posted here that he made 9k off a 50k account, setting his stop loss at 1k.
So, basically it's like a very slow, very complex casino.
But if you lose you have to pay a million back?
>marketwatch.com
How the fuck does this happen? Don't they have a stop-loss built in place, or maybe they did they just never told the goy and decided to charge him.
>relying on a stop loss to protect you from overnight PR
This is how you lose 800%
Just trade options similar upside, easier prediction, lower risk as you will only lose what you put in