Einfach mal so - aus einem russischen Forum gemopst

 

I corresponded with Bill Willams in the summer 2006, at that time I have been crazy about Trading Chaos.

And he constantly repeated, that he trades in futures and shares.

And I have always answered him, that I am involved with Forex.

 

And just now, probably, I understand, why did he dissuade me from Forex trading.

I think, that Bill Williams already knew about Forex controllability.

I would like to share with you this information.

It's quite interesting and instructive.

 

A material below he has sent me by the separate letter, and he has named it

" Reasons why I do not trade Forex ".

 

Ohne weitere Wertung, in vielem hat er imho grade bei Retail Brokern recht

 

10.07.2006

....reasons

why I do not trade Forex

bill wms

 

WHEN TO NOT TRADE FOREX

Because so many people bombard us with requests

about forex, we teach people how to trade it.

Better to teach them the right way than to let

them commit financial suicide. Nevertheless, we

do not advocate forex trading unless you have a

particular reason as to why you need to trade

during the middle of the night, or you have a

specific need to trade in currency pairs that

do not involve the U.S. dollar. If the U.S.dollar

is involved and you are able to trade during U.S.

market hours (7:20am-2:00pm U.S.Central Time) you

are much better off trading currencies in the

Chicago currency futures markets. Here is the

reason why:

 

* Brokers deceive you about there being no com-

missions. $30 minimum/round turn(called spread)

is in reality a commission that eats up your

capital at an astonishing rate. Even winning

traders lose money and end up with negative

results because of this outlandish overhead.

Trading futures, you never have to pay a broker

more than $10/round turn, and usually quite a

bit less than that.

 

* Guaranteed fills. True but... The only way a

broker can guarantee fills is for the broker to

become the buyer or seller of last resort. That

means the broker is running a bucket shop. All

forex brokers are the buyer and seller of last

resort.

 

* Brokers do not tell the truth about volume.

They show the volume for all forex trading,

which doesn't even come close to the volume

they truly have at their own brokerage, which

is where you are trading. Volume in currency

futures is considerably higher than the volume

traded at any single forex broker, often great-

er by a factor of ten.

 

* Leaning. Brokers say they are charging you a

3 pip spread to trade the popular currency

pairs. But in reality a broker may be making

as much or more than 10 pips on your trades.

He does this by skewing prices. Since you are

not trading at an exchange, the broker can

feed you any price he wants to feed you. He

can buy at the bank for perhaps 7 pips less

than he sells to you. He then charges you 3

pips for the privilege of being ripped off for

a total of 10 pips.

 

* Unregulated. Forex may sound like an exchange

but it isn't. It exists entirely in cyberspace

with every broker and every bank having diff-

erent prices for any particular currency.There

is no regulation,even for brokers who register

with the CFTC and the NFA. Forex brokers do

not have to mark to market each day as do

futures brokers. If your forex broker files

for bankruptcy or absconds with your money you

have zero recourse.

 

* No guarantee. If a forex broker does go out

of business, you could lose all your money.

There are no guarantees and no one standing

behind it. Futures brokers are required to

mark to market every day. They have to put up

cash to cover every open trade on their books.

Future brokers have gone broke, but no future

customer has ever lost one cent of the money

in his trading account because of a failed

broker. Nor have they had to wait for their

money. It is immediately available.

 

* You can get exactly the same action in the

euro fx futures as you get in the"Euro" forex.

Commissions are as low as one tenth per round

turn depending on volume, through a regulated

broker, trading electronically at an exchange

where you know the true price of the currency.

 

* What is the true price? A forex broker can only

give you the price of a currency as quoted to

him by the bank through which he trades. Banks

have diffeing prices for a currency. You never

know what the real price is because there is no

central exchange through which all prices flow.

Besides not knowing the true price from the

bank, you can also be deceived by "leaning" or

"skewing" of the real price at the bank. Forex

brokers comonly lean the prices.

 

* Forex brokers are not truthful. They lure

people in with hype and false advertising: "No

commissions!" "Guaranteed fills." "24 hour

trading:" Who in their right mind is going to

trade in the middle of the night unless they

have a special need. While it is true that

total forex volume is greater than in the

futures, futures volume at the exchange is

greater than the volume at your broker for the

most popularly traded currencies. The only

place where the liquidity differential matters

is in currencies like the Mexican peso, the

Brazilian real, and somebody's drachma. Those

thinly traded currencies may be more liquid in

forex. But if you trade anything but the few

most liquid and popular currencies, you are

going to be paying at least 5 pips, and often

more. Unless you have a particular comercial

need to deal in Polish ziotys, Indian rupees,

or some other thinly traded currency, you don't

need forex.

 

* You are told by forex brokers that there is

little or no stop running. This is one of their

biggest and boldest fabrications. The truth is

there is far more stop running in forex than in

futures, and possibly as much stop running as

in the stock market. I have friends who work in

forex as well as many traders who of necessity

have to trade forex. One of my students is a

market maker in forex. These are people who

should know, but in case you don't want to

believe me or them, simple observation of forex

trading will reveal the vast amount of stop

running that takes place there. Who is it that

runs the stop? It's your friendly forex broker,

that's who. The broker has a vested interest in

seeing to it that your orders are filled. Stop

running is nothing more than order filling.

The broker sees to it that everybody's orders

get filled.

 

* Probably you have heard that if your are win-

ning regularly in forex, you may be barred from

trading. Is this true? Yes it is. The fact that

is true is just another proof that when you

trade forex you are trading at a bucket shop.

In the book, "Reminiscnces of a Stock Operator,

" we are told that Jesse Livermore was banned

from trading a certain stock brokers because

they couldn't stand him beating the housel. The

same thing is true with many forex brokers.

Since they are the ones guaranteeing you a fill

they in effect the buyer and seller of last re-

sort. The truth is that most forex brokers have

precious little liquidity at their firms. In

order to give you the impression that there is

liquidity, it is the broker who gives you your

fill. It is the broker who does the stop run-

ning that supposedly doesn't exist in forex.

But if you are regularly beating the socks off

the broker, he will ban you from trading at his

firm.

Now you know the truth about forex. I challenge

any and all forex brokers to prove that I am

wrong.

Einfach mal so - aus einem russischen Forum gemopst

 

Wird Zeit, dass sich einer um die Bookmark Funktion kümmert.

 

 

btw.

Der Derivatehandel wird sich weiterentwickeln.

Und wisst Ihr, wer neben den Kanonenfutter-Retailern (sorry wenn das jetzt ein wenig hässlich klang) noch auf der Strecke bleiben wird: Die Market Maker.

Das ist ein aussterbendes Geschäftsmodell.

Dem gegenüber steht allerdings eine stetig steigende Nachfrage seitens der Endkunden.

ERGO: Evolution is ongoing.

 

Sofern die Aufsichtsbehörden keinen Riegel vorschieben, dürfte mittelfristig alles besser werden.

Wobei die Industrie ja bereits auf einem guten Weg ist.