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The trading volume brought about by speculators is estimated to be more than 90%!

babypips.com 2 days ago

I’m not sure what can help you. Scare of forex market, I assume you are overthinking of it. Forex market is not that bad. But it must be told badly, to avoid any timid personality to have involvement in.

You have to realize every single aspect of our life is speculation (99%). You go to a new restaurant, you don’t know how the taste, you go in to have a try. You are speculating it probably can be “eaten”. You sent your resume to find a job, also consider as speculation. It’s a game of number or statistic. The more you send, the more interviews you may have. Even when we are looking for a partner in life, it’s also a speculation.

Back to Forex Market, it’s true that Forex is traded by speculator for 80%. The rest 20% will be done by institutions. I’m borrowing Pareto Principle here, base on my last data the number, more and less, is about the same.

But you have to know the 20% of the institution that get involvement controls over the rest of it. The reason is simple the institution’s fund is extremely huge. Imagine, there can be a thousand of us, retail trader. Let say each of us using 1k USD. Our power will be 1 million USD. The institution trader can be only 200 firms. But they are bringing 10 million each. How can we fight them? This is one of the reason of why forex is be said as a high risk instrument. 90% traders is losing money.
The same thing for statement 90% people fail to find their life partner for the first attempts.

You have to know, most traders who trade on retail broker is an OTC product. The transaction isn’t done in an exchange. That means, even you trade 10 million lot, it wont effect the price at all. The price on out chart is price movement by the gigantic institution and government central bank. So we, retail traders, are only a tiny little bug in the middle of dinosaur’s fight. ROARRRRR…

As a little tiny bug, we just make a hop, following those dinosaurs. You must analyze who are the strongest, suck it blood. Once you feel enough, immediately jumps back to your bunker. Even the strongest dinosaur will get tired and down

I wish this illustration can enlighten you … Now look at how Goldsaurus will fight USDaurus. Who will win? … roarrrrrrr

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