For those who know how to analyze the market and trade in longer time frame such as 3 hours to a day, the opportunity to make money in Forex(retail) is unrivaled for small investor. I have been followed Forex market for a while using Realtick platform for analyzing the market. Realtick used GTIS feed (who get best price from more than 200 competitivesources around the world) for Forex data. What I have observed is that my broker price match with Realtick price most of the time. So what I can say from this is that making money or not from Forex trading depend on how good I am, not having to be afraid that my broker try to rip me off by lower or spike the price to hit my stop. Besides, trading with a longer time frame would 1. Capitalize more on the longer movement of the market swing. 2. Not having to worry about the little dirty trick some broker try to do on those who make quick trades. For those who might have doubt on the retail Forex Market, my word to you is that it is possible that you can make more than 100% of your money per month. I have observed and predict a few 100+ pips swing, and it did go that way within matter of hours or minutes, and my broker price was also on track with it. The only real trick to the whole trading thing is to have a solid anlysis system that precisely depict the market. Currently I trade both futures Emini and Forex after futures market active hour. Having been in both market at the same time, let me give you a slight comparison between the two. Target profit is: $500 Emini Forex Capital currently $10,000 $3000 traded contract/lot size 10 contracts 2 lots points need to wins 1 point 25 pips Average time to hit target 1-5 min 30 min- 2 hours Potential max profit per day $2000- 4,000 $1000-2000 Potential max loss per day $2000 $1000-2000 (without stop loss) In general, for small investor forex is more ideal, but require more time to monitor the market, before you can capitalize on your good trade. One more comment on the difference between Emini trading and Forex. Emini is like poker where all the player compete and cut throat each other, where Forex (retail) is like black jack, where players compete with dealer. Thus us player can work together to have a better chance of picking out the good cards.
Somewhat true. If you can predict the next 100 point move and trade it on EUR/USD spot, just about the only thing a rogue broker could do is close your account, lose your order for a few days, or simply refuse to fill your close postition order. None of this happens at OANDA.
Having said that Forex is like playing Blackjack where we all can work together to pick out better card, I have an idea. I have done research around the net about Forex advisory service where some of the site charge between $200-500 month for the service. Like I said before I have observed and predicted a few 100+ pips movement and it did run that way. It is just recently that I have quite accomplished my goal of understanding the market. Frankly I have lost lots of money in the futures market before I make the biggest gain: the true understand of the market based on my selected indicator. I have dilligently study just about all the major indicator like CCI, DMI, RSI, K%D% and have developed an automated system using Realtick feed based on CCI and DMI. It works for a while, but then still make bad trade, i think because it doesn't have a broad vision as my eye, a human flexible eye. The program quite limit in seeing a bigger picture. As of today, I have master something else: MACD and MA and bollinger and a secret ingredient that put these together. These 3 are the most simple (yet effective when work together )indicators that I have overlooked. It is so amazing that I feel I can gain back all my loss in the next 4 months in futures, and make will tons of money in Forex. I am not afraid to face defeat, for I know you can only be a good leader when you know the taste of failure and defeat. What make me keep going is the desire to gain the true knowledge of the market. That is the my true goal in the past 4 years. If it is in the futures market, I wouldn't even think about sharing any of knowledge or trade because we are competitors. But it is a different story in Forex. we are players vs. dealer. I want to ask for some volunteers to monitor my prediction in 4 weeks. I have developed an interface in FLash where you can see and hear my trades in real time along with comments via a website. Those who participate will benefit the following: 1. Once successfuly having a proven records in 4 weeks. You will have free access to my trading service life time. 2. I will train you my technique of analyze the market based on MACD, MAs and Bollinger and the secret ingredient. You will be surprise of what you have missed out on those indicators. Once having a proven records with the witness of those voluntary. I will have a paid service that does this: You ONLY pay if my advise are winning trades for that month. And you can send check and money order out of your winning at the end of the month, no credit card involved. And of course I will have 1 month trial with no credit card for those who want to see a proven record before joining the group. Profit wise, I believe in my ability to win an average of 200 pips a month consistently. I judge my ability before I say these words. I have no regret of saying it for I know there will be critics about my words. But like I believe, you never know until you try it.