why is my broker giving me technical analysis recommendations

Discussion in 'Forex' started by cole_, Feb 13, 2018.

  1. cole_


    Given that the broker is the buyer when I sell and the seller when I buy, it is always in my broker's best interest for me to be on the wrong side of the market. so why does it offer on its platform ta recommendations like this?

    does this mean the technical analysis methods its proposing are bullshit?

    or is there some reverse psychology going on here?
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  2. ...only in spot forex (and in fact, they're very specifically not a broker in this case). If they're acting as your broker they are only facilitating the transaction and have no financial interest in the outcome of the trade.
    Xela likes this.
  3. cole_


    my understanding is that if i consistently win trading they will put my trades on the actual market instead of taking the other side
  4. Trading Central is a decent TA analysis actually
  5. your broker's intent is to feed you with as much resources as possible: news, tech analysis, fundamental stories. they want you to trade more!

    if I were a broker, I will run monthly statistics on my customers. if I spot a custoner making positive returns, I tag him & check again next month. if he is still positive, I look through his trade stats & it seems like he has an edge. I look again next month, he is consistent. highly likely knows what he is doing

    I set my system to stop taking the other side of his trades. I set an amount instead to copy his trades
    PennySnatch, Peter10 and Simples like this.
  6. nickynoes


    They want you to trade more and generate more commission.
  7. zdreg


    hubris and not the road to trading success.
    lawrence-lugar likes this.
  8. Pekelo


    It is like your drug supplier giving you tips about how to shot it...

    Whatever encourages you to moore business.
    jharmon likes this.
  9. Xela


    Although I strongly suspect (a) that we're talking about spot forex, and (b) that the party you're thinking of as a "broker" is actually a counterparty, it still isn't possible to answer this question with certainty or even with reliability, without knowing who the broker is.

    If you'll excuse my answering a question with a question, here's one to think about (even though I know you're not in the UK): why, in the UK, do all the high street racing betting shops ("bookies") plaster their walls daily with copies of the Racing Post newspaper, displaying both sides of every single page of all the possible information available about the horses, races, tracks, going conditions, jockeys, statistical analysis, previous winners, and so on and so forth?

    I suspect the answers to these two questions may be broadly the same.

    I don't know: I don't even pretend to be able to understand "normal psychology", so I'd have no chance at all with the reverse kind.

    I'm not suggesting you're necessarily wrong, but why is that your understanding? What evidence do you have for the assertion?
    happyscalpie likes this.
  10. cole_


    publicly their entire business model is just making money off of the bid ask spread. however why would they not want to bucket consistent losers?

    my theory is that they bucket consistent losers, make money on the bid ask spread between the traders that inconsistently make and lose money, and put the consistently winning traders on the real ecn market. that would be the way for them to maximize profit and there is not much stopping them
    #10     Feb 14, 2018