Different opinions on what we are doing. We trade against
brokers and not the market. If you are trading against the market,
it means if it is going down you are going up.
If you trade in the same direction as the market then you cannot
beat it. Both of you will stop at the same level and reverse at
same level and behave exactly the same. Do you get it? You cannot
trade more than the actual value of US dollar so you cannot beat it!
You cannot beat what you are imitating. Brokers do not know
much about the market than you do. You are betting with them
that the market will go up or down.
He then borrow you money to do that. Your order is not actually
submitted. they pay whoever after two days. So they can
offset your win
-----------------------------------
Extra:
The main market traders are the central banks,
largest commercial banks, and hedge funds investors.
These market participants trade exclusively among themselves
in a market called the inter-bank market. This market is not
accessible to the general public or the so-called retail traders.
The retail market is the market where individuals, corporate
entity even banks trade among themselves via brokers
by speculating which direction the main traders (the market) is
going.
This is a different market entirely. If they speculate
the direction very well, they win against their brokers
and if they are wrong they lose money to their brokers.
This is how the retail market was designed to function.
And because you are not the only one speculating, no matter
how good you are against them, they still make money from
99% of other retail traders who do not know what I have
just told you. (I said we speculate on the direction of the main
trade). So it is not really a big deal if 1% out of 99% is making
it.
So no matter how bad your broker is, you can always beat
your broker if you can speculate the direction of the
main trade. Your broker is not even more knowledgeable about
the market than you. Most rely on the same wrong linear
models like the rest 99% of retail traders.
The spread and other costs are normal costs. If you win your
trades most times, these have no effects on your equity. if your
broker give you a spread of 5pips, you made 25pips you have
cover this cost anyway. Even if it is 1pip! that is why it is important
never to give a pip back to them. Each pip makes you richer.
If you are too good for them, the only thing they can do
is to imitate your trade or watch. Good brokers will use
your position to hedge against their fund by taken same
position with other brokers.
This is my little understanding on the way I view and trade
the market. That is why I now trade to imitate the entire
market system and not the price my broker gives me.
Having said, if you have a broker with poor infrastructure -
server downtime, someone fiddling with your positions, poor
platform without trailing stop. server time out, poor equity
not NFA regulated, excessive spread when you are on trade
etc.etc. then your broker have the edge.
Let me explain. You are winning and you put your stop loss say
10pips or 20pips and all of a sudden you lose or someone stopped
your trade. Then you are trading against your broker.
Change your broker to NFA one or to a more popular one with
many traders.
I have one live account with one such broker, I cannot narrate
how fustrating it is with this broker right now. But I am
testing it to give better advice to my clients.
Even in such a bad situation you can also beat your broker
with pending order if you can read the market correctly
something mechanical systems cannot do.
Again forget about having an edge over the market.
Some people sell plugin claiming to have an edge over
the market, how can this be when we are not part of the
market.
You mean or they mean having an edge over your broker.
The market is a system of its own with so many determining
factors, all we can do is to imitate its direction and use
that skill to bet and have an edge over our brokers
who borrowed us money to speculate the direction of
the market.
this is my 2 cents. may not necessarily be what 99.99% traders
will subscribe to