Quiting forex after one year

[bluewrath666]

Hello everybody

I would like to hear your opinion about an important issue to me: I have been trading forex for just under one year now (with 42000 EUROS starting investment a 14% ROI up-to-date not much as you can see) . After one year of efforts I am seriously considering quitting forex go into a regulated market (perhaps Eminis) basically because I have reached the conclusion that the little guy is completely at the mercy of his broker. I am not going to give you every little detail here but it might be sufficient to say that too many times my stops have been taken "manually" (I consider a move to be manual when a spike that is not reflected in another feed I am following appears in my brokers chart takes my stop inmediatelly goes back in line with the market). I made a very conservative calculation a couple of weeks ago regarding how much money I have lost due to these situations it is in the range of 9000 EUROS (that is without taking into account potential profits I could have made by just not being stopped)

This means that you have to have a very very good year just to avoid ending into negative territory. Odds seem to me too overwhelming in this market when you realize that you have to battle the market your broker...


Can anybody comment about similar experiences? I WANT TO KNOW IF THIS IS JUST MY EXPERIENCE OR WHAT.

Anybody here really knows of any retailer going through a broker that has been making serious money CONSISTENLY for years in forex? I am really interested on knowing I am starting to believe it is just a legend needed to support the enormous industry that makes its living out of us...

[MickMason]

Originally posted by bluewrath666


Anybody here really knows of any retailer going through a broker that has been making serious money CONSISTENLY for years in forex? I am really interested on knowing I am starting to believe it is just a legend needed to support the enormous industry that makes its living out of us...

You made 14% in your first year in a business where 90% lose you're not happy?

If your broker is hunting your stops then change broker stop-hunting on a regular basis is not universal among brokers.

You say you're quitting where will you invest your money to achieve a better return?

Mick

[Mr 50%]

Hi

14% return in the first year of trading is pretty good. Espeically when most of the big trading mistakes are made during the first year of trading. Most traders lose their account in the first year.

What you should do is look to build on it year on year quarter on quarter etc.

I'm guessing that you are doing this full-time perhaps thats where your problem is i.e. you need a regular income that's one thing you must avoid with FX trading especially in the early years namely to rely upon profits as though your drawing a salary.

Maybe should look at doing a job as well as trading especially in the early years ?

[bluewrath666]

Hello Mick Mason

Thanks for replying.

I do not underst your point: You say I should be grateful happy for having made 14 % shut up?

You say also that Brokers do not stop-hunt (???).

Are you by any chance a fx broker or part of the industry? Sorry for being blatant.

I mentioned that I am considering moving my money to a REGULATED market (E-minis perhaps).

[Idoogye]

You did ask for opinions. Here are mine: a 14%/year ROI is pretty good unless you are working yourself into a frazzle to achieve that. There are big-time fund managers who consider 10% a good return.

Obviously some brokers do stop-hunt just as some brokers guarantee stops - until they decide not to honour their "guarantee". But ALL brokers don't do those things. ( no I'm not a broker or industry professional.)

Trading is no easier in a regulated market. If you try ES I think you may find it just as exasperating as forex if not more so. Since the stock market ( by extension the stock indices) operate on the "greater fool" principle price action there is even less rational than in the spot currencies. (This is very much the voice of experience speaking to you now.)

But it's your time your money. Whatever direction you decide to take I wish you well.

Cheers!

[MickMason]

Originally posted by bluewrath666


I do not underst your point: You say I should be grateful happy for having made 14 % shut up?

You say also that Brokers do not stop-hunt (???).

Are you by any chance a fx broker or part of the industry? Sorry for being blatant.

I mentioned that I am considering moving my money to a REGULATED market (E-minis perhaps).

Hi bluewrath666

You sound a little upset by my comments. I didn't say you should be grateful shut up what I said was that you sounded dissatisfied with the return on your money when in reality 14% is quite healthy for a small investment bearing in mind you have only been trading a year.

I don't believe non-regulation is stifling your profit potential even regulated markets have ways of parting you your money if brokers are that way inclined. Find a reputable broker whatever market you trade they're not all stop-hunting thieves out to ruin their clients you know. Brokers are not the enemy.

I am part of the industry only by way of being a trader I have no ulterior motive for my comments.

Mick

[viggen]

I think he meant the risk versus reward ratio is too high that the majority of the risk comes stop hunting rather than market related.

I think 14% roi is quite low too in a market where you can lose your shirt in 5 mins.

[MickMason]

Originally posted by viggen
I think he meant the risk versus reward ratio is too high that the majority of the risk comes stop hunting rather than market related.

I think 14% roi is quite low too in a market where you can lose your shirt in 5 mins.

Hi viggen

Risk/Reward ratios are the decision of the trader if the trade is right then even a disht broker will have difficulty spiking price far enough to trigger a stop. Sure it happens occasionally when prices nearly hit stops the dealers get a little overzealous but not to the extent that it should affect overall profitablility. Don't forget there are traders hovering to snipe at spikes a disht broker who does it regularly would soon be targeted.

I'm not sure about 'lose your shirt in 5 mins' if that's the risk then there's something desperately wrong with your strategy

Mick