Dork
Most Forex traders operate in the retail forex market, which is totally distinct from the “genuine” interbank market.
The other forex traders who also trade on the retail forex market, as well as, it might surprise you, your broker, are your rivals in this market. These other retail traders lose when you profit from forex trading, and your broker also loses. Forex traders in the retail market typically lose money. Your forex broker will actually predict that you will ultimately lose money. Given that the vast majority of forex traders lose money, this is a totally logical assumption.
Do you want to know a secret that a forex broker doesn’t want you to know?
This is it: All traders are split into two groups by Forex brokers. There are Forex traders who are successful, known as winners, and there are traders who are unsuccessful, known as losers. Guess into which category all new Forex traders are placed? All new accounts are placed in the loser group by retail Forex brokers because they assume that all new clients are unlikely to generate money. A trader may join the winner group after several months of consistently lucrative Forex trading.
Although it might seem unexpected, it is true. If you begin to profit from Forex trading over a period of months, you will join the winners. Your trades will start to be hedged by your retail Forex broker. To put it another way, if you belong to the winning group, your retail Forex broker will execute trades in the interbank market, which is the actual Forex market, to balance the gains made by the winning group. For instance, if the majority of the traders in the winner group have chosen to purchase the EUR/USD, the Forex broker will place a trade to purchase the currency pair in the interbank market in the hopes that, should the winners be correct, they can use the profits from the trade to pay the winning traders. Your retail Forex broker handles successful traders in this manner.
How about losers in trading? Your Forex broker expects that you won’t make money when you establish an account because the majority of Forex traders lose money. Your broker won’t start worrying about your trading until you start routinely turning a profit on the Forex market. You know what happens to all those lost deals, right? Those unsuccessful trades fill your broker’s wallet.
Every unsuccessful trade results in “business earnings” for your broker. This is because your Forex trade’s opposite side is handled by your broker. It’s true that certain retail Forex brokers will pair up trade orders such that a trader with a purchase order will be paired with a trader with a sell order. The vast majority of retail Forex brokers do not, however, do this. Your broker will accept the risk on your trades and presume that they will ultimately lose money unless you are a consistently profitable trader. Although this topic is not frequently discussed, it is real. Because your losses translate into losses for your broker, your Forex broker wants you to lose.
Would you like to move up to the group of successful traders from the group of losers? Do you want to be one of the 5 percent of successful traders? I am confident that you have the ability to join the 5 percent, and I will soon outline exactly how you can do so.
