Is it a fair business ?

[PittsburghFX]

Originally posted by bobnat
Pittsburgh,

Thanks for sharing your experiences and knowledge.

There have been a number of discussions on the net as to what constitutes scalping and there isn't really a general consensus. I think we all can agree that straddling the news is something that the brokers don't like and are doing there best to discourage.

Is scalping defined primarily by time? Or is it a combination of time with certain events? Perhaps it seems to be an obvious question, but I'm interested in your take on it.

If I get in with 10 lots and pick off 15 pips in 2 minutes is that what you call "picking"?

Thanks,

Nat

Scalping and Picking, yes is defined solely by time. You must hold your position for a certain amount of time before your off their radar. This simply means your giving them time to offset their net position. You can be nailed for picking at 3PM EST, anytime you hold a position less then a certain number of minutes you will be nailed for picking. 2 min is still under their radar.

[bobnat]

Thanks for the info.

Nat

[activefxtrader]

If I understand correctly on the last 5 page of this thread, all brokers love losers especially mini-account advertisers. Now the following questions must be cleared :

a- Why they abuse advertising methods (or marketing strategies) which means, they are marketing a product that gives the client a chance to win great profits (mini-accounts, high leverages,etc.) if they are using offshore style brokerage (it seems really clear now) why don't they simply advertise we love losers arguments instead of you have great chances with great software (trading platforms, trade on the charts, etc.)

b- If we will be the victims of the markets makers, what are the alternative strategies for mini-account holders even standard account holders ? Can we fight against this silent fraud by using real BANK accounts and paying commissions for every trading at forex markets (that seems to be more clear now, there are really huge amount of commissions in the FX market instead of what they advertise NO COMMISIONS, etc.)

c- Lets start to think what is the scalping again. I think we are going wrong direction and I know many account holders on the market that they are using ultra-scalping tecniques on 1 or 3 pip spreads on all majors. This is the reason why we lost many trades at EUR/GBP 5 pip spread when they are at 2 or 1 pip spread on this pair or many other majors like USD/JPY or EUR/USD. THEY ARE ALWAYS SCALPING and they are the main supporters of the fight against scalpers team. It is clear for us why they hate scalp traders. Because they want to win all the trades and they dont want to share their profits with small guys.

[PittsburghFX]

A. You entirely misunderstood. Brokers provide you a mini account to get started. You have the freedom, we all do, of making stupid irrational decisions in regards to trading. There are people who do very very well from trading, but it is a very small bunch. It has nothing to do with the brokers end.

B. Trading is not gambling, it sounds that you might be thinking that it is. Having been trained by FXCM, it is not gambling get rich quick crap. People with that mentiality blow up fast and are weaded out of the market.

C. The spread exists in everymarket. You may have ever traded anything else, but indeed there is a spread in stocks, futures, options and so forth. Plus the other markets have a commission. SO the spread is a big costs because you are trading with 100:1 Leverage or greater.

It is foolish to say anything about sharing the profits with the little guy. That simply doesn't cut it. People who scalp do not give any market maker enough time to offsett their net aggregated position, plain and simple. You have never been there and seen it.

I don't mean at all to cut you up, but I would think twice before really getting into the thread. There is no such thing as a little guy in the markets. The fact is, with instant volume and dealing direct with the market makers, the little guy has the volume advantage as well as the pleasure of being on automatic execution. Big players are harrassed more than anybody. Because a big player can really scew the market makers net position quickly without notice. Thats why most are put on manual or asked to call it in. If the market makers won every trade then it would be poor executions and people would not trade with them.

[alasrado]

How often does FXCM offset it's positions w/ interbank ?

[PittsburghFX]

The platform that you trade off of and I do as well are all modeled like the interbanks. FXCM is more modeled after the actual Interbank platform, however other market makers have more features, charts, research, stuff like that to target individual niches. FXCM's plain jane is very similar to what they trade from other banks. All offsetting means is that when you go long, they see themselves as a market maker just shorted, if they want rid of the short they click buy from the Interbank platform. Very straightforward and simple in that regard. Developing the relationship to trade with Interbank, pricelsss. Hey, that sounds like those Mastercard commercials. Cool!

Real Time Streaming Charts =$100
Real Time Streaming news = $50
Computer with two monitors to trade = $1400

Picking the right direction on a Non Farm day = Priceless

LOL

[MickMason]

Paranoia warning!

I see marketmakers improving their charts and trading platforms all the time, maybe it's just to get more market share but do they have a way of watching what indicators traders are using or when they're about to place a trade or is that a bit far-fetched?

Mick

[bobnat]

Pittsburgh,

This has turned into a very fascinating and informative thread. I hope you don't mind some more questions.

You say that the MM needs time to offset their aggregrate positions in the IB. So, does this mean that no matter what the bet and size, there is always a bank somewhere willing to take the other side? This concept really fascinates me for some reason. Maybe because it hints at the fact that there are so many ways to view the markets, from so many time frames.

Nat