Forex Trading-Does Anyone (Besides Gurus And Institutions) Make Money in Forex?

by Nathan Pennington - Date: 2007-02-07 - Word Count: 260 Share This!

Sometimes it just feels very much like David and Goliath. It's us small traders up against the brokers, banks, and huge institutional traders. How can we possible win? They can gun for stops (sometimes they do). They can throw their weight around, and we might get squished in the process.

Ever felt like that?

Yeah, I know. That's how it seems. Now let me show you the view from the other side of the window. You see, ever since retail forex traders entered the market in hordes, the large traders have been having a harder and harder time making the profits they used to.

In fact an article showing a study to that effect just came out not that long ago. One institutional trader with some billion under management was complaining because his fund was flat for the year. He was losing as much as he was making. Why?

He blamed all the small traders for making the market "random." All the little guys ate his lunch!

The article when on to show the top funds that trade the spot currency market have really struggled since the explosion of retail trading. Who's David and who's Goliath now?

All that said most retail traders bust their accounts too, but you need the whole story. Most retail traders are trying to trade with very small accounts and leverage that is obscenely high.

If you have enough money in your account, and you control your leverage, your probability of success in trading just shot way up. After that it's just practice and patience. (Yeah, I know neither one is easy.)

Related Tags: forex trading

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Download it free here: Forex Trading

Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide

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