Registered: Mar 2007
07-27-12 03:00 AM
Quote from Tango 6 Alpha:
Wrong. Failure to understand the business you are committed to, has got to be one of the biggest reasons why so many Retail FX Traders don't make it through to the FXPB stage.
If you already have FXPB start-up capital and you don't already have the requisite trading experience, knowledge and/or skill to be a successful trader long-term, then you really don't have any business opening a true Institutional Account (most won't allow it anyway).
So, it is important for the "newbie" to develop both an understanding of how to trade consistently, as well as an understanding of the business that controls the bid/ask of each position they take. Otherwise, you end up on trading platforms like Oanda and a host of other arcade game type trading platforms, thinking that you are actually trading through a genuine "Broker" to the "real" Interbank Market - when neither will be true in any case.
In all of the entire United States of America, there are only 3-4 genuine FX Brokers out there:
- DCFX (originally out of New Zealand, but has a San Diego, Ca., Office)
If you are trading "Retail FX" anywhere else, then there is a very high probability that you are trading with a pure Bucket Shop. And, that means that your trades will never see the light of day on the real Interbank Market - which by definition means that you are trading inside a closed-loop proprietary pool of liquidity, where your Bid/Ask is being "cooked" just right for the conditions that keep short-term day traders less than profitable in the aggregate.
A newbie to "FX" must take the time to educate themselves and learn something about how the "Retail House" is operated. It is NOT the same as the Interbank House. Both Houses are run differently and the net/net effect on your bottom line hangs on the understanding of how they differ.
Once you generate a boat load of capital AND you develop some basic (fundamental) technical trading skills, the sky is truly the limit in FX. But, it will need to be done on a genuine Institutional trading platform and through a genuine Prime Brokerage Account.
Can you be successful long-term in Retail Bucket Shops? Sure, but that all depends on what you classify as "successful" to begin with and you can count on running into all manner of "dealer gamesmanship" along the way: Excess slippage, Unfilled Orders, Partial Filled Orders, Price Spike Not Seen on Other Platforms Near Your Stop Level, etc., etc., etc. So, get ready for those games.
Or, better yet - take the $300k that worked hard to build in Retail, and move it to a low level (entry) Institutional brand and start building real wealth with lightening fast executions, precious little slippage, instant fills, genuine depth of market discovery, iceberg order types, Alias order types and inside the pip spreads - down to zero spreads at times.
- Its a Career - not a hobby.
- Its a Profession - not job.
- Its a Vocation - not a temporary assignment.
- Its a Business - not personal relationship.
- Its a Life - not a fad.
This is the mentality of those who end up successful in FX.
How's Antioch treating you? Mercedes still working?