Registered: Feb 2012
11-12-12 03:18 PM
Quote from oilfxpro:
There are so many threads negative about day trading , it was time to ask why is there no successful day trader in the popularity of George Sorros , Jim Symons etc.
Trading is a zero sum game and day trading is a negative sum game.The only people making money out of it is brokers.
If it was profitable to day trade , brokers would hire people to trade with broker's capital.
A few internet marketeers are selling motoring , under the guise of successful day trading , but these are just scams.
This is an insteresting question. Is Forex really a zero sum game? I learned that companies that make positions to hedge risk of their future income and their cost that are denominated in currency different from their basic one.
Actually they give up their extra profit -that originates from exchange rate gain- to avoid unexpectable losses, and they fix their exchange rate for a future moment. Just the opposite what a trader does. It is -strictly speakig- zero sum game, but they don't hurt each other's insterests. If a US company will have for example EUR 50.000 income in half a year it will make EUR futures contract and fix the future exchange rate with it, so in half a year it can get almost the same amount of money in USD than it would get with today's prompt prices while if it exchanges the money on propmt price in half a year even 10-20% percentege losses or gain as well could be suffered.
Anyone who has experience how this looks like at the banks or at the comapanies feel free to comment my opinion!