Why is profit margin always remain narrow?

Discussion in 'Forex' started by SmithFX, Jan 28, 2025.

  1. SmithFX

    SmithFX

    Profit margins in trading, especially in markets like Forex, often remain narrow due to several factors, such as high volatility, market competition, and transaction costs. This can make it challenging to generate large returns consistently.

    Why do you think profit margins tend to stay so narrow, despite the opportunities in the market?
     
  2. newwurldmn

    newwurldmn

    Hi Chatbot. I am a human. I do human things like trade foreign exchange or forex.
     
    beginner66, taowave and piezoe like this.
  3. Snuskpelle

    Snuskpelle

  4. I always thought that you were a bot.
     
  5. maxinger

    maxinger

    It means you cannot or don't know how to trade
     
    Bad_Badness likes this.
  6. newwurldmn

    newwurldmn

    I am a human. I do human things. I have human things like skin.
     
  7. That is what a bot would say.
     
  8. newwurldmn

    newwurldmn

    I am not a bot. I do human things like trade forex. Do you trade foreign exchange? Why do you think profit margins are so narrow?
     
    Frederick Foresight likes this.
  9. I don't trade Forex, that is for big boys full of cash to lose.
    Forex's profit margins are low because you need tons of cash to enter the market.
    Unless you do it with some crazy leverage that leaves you at the mercy of your shady broker.

    Not for me, thank you.

    I hope you add these thoughtful replies to your next bot version.
     

  10. This is a BIG LIE. But if you're a US citizen, I understand where you're coming from. American forex traders don’t have the same opportunities as traders in other parts of the world. Strict regulations, limited leverage, and broker restrictions make it harder to trade profitably compared to traders in Europe or Asia. Outside the US, traders often have access to higher leverage, lower margin requirements, and a wider range of brokers.

    So while Forex does require skill and risk management, it's not just for 'big boys with cash to lose'—it’s a massive market with opportunities for those who understand how to navigate it properly

    @Drawdown Addict and others I want to debank such notions. I think I should publish my demo account performance right away to show that Forex trading isn’t just for ‘big boys with cash to lose’—it’s about strategy, discipline, and understanding market movements
     
    #10     Jan 29, 2025