Category Archives: Forex trading

The Perils of Day and Position Trading in Zero-Sum Markets. Part Four: Forex Position Trading

This is the fourth and last part of a series of articles on the perils of day and position trading in futures and forex markets. In this part, the results of simulations involving a large number of random trading systems … Continue reading

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The Perils of Day and Position Trading in Zero-Sum Markets. Part Three: Forex Day Trading

This is the third part of a four part series on the perils of day and position trading in futures and forex markets. In this part, the results of simulations involving a large number of random trading systems using intraday … Continue reading

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Shorting the Euro and Buying US Stocks Has Made Big Profits

While the retail investor had not made any profits in the US stock market this year on the average, hedge funds and speculators have made big profits shorting the euro and buying US stocks. This has accelerated the fall of … Continue reading

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Is this the Beginning of the End of Retail Forex Trading as We Know it?

The removal of the Swiss franc peg to the euro last week by the Swiss National Bank caused huge losses to retail forex traders and brokers. It is unlikely that after this event retail forex trading will be the same … Continue reading

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Why the Swiss National Bank Actually Helped Forex Speculators

For the majority of retail speculators it is better losing it all at once and getting on with their life rather than losing their capital slowly over time and wasting many years to find out that profitable  high leverage forex … Continue reading

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From Bitcoin to Beatcoin

With a drop of about 75% from the highs of November of last year, the bitcoin is now beaten hard. Fantasy slowly but painfully gives way to reality and the dreams of some of creating wealth ex nihilo (or maybe … Continue reading

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Frequent Retail Forex Trading is a Losing Negative-Sum Game

Based on a simulation of 20,000 random long/short systems trading EURUSD using daily data, the percentage of winners turns out to be a number statistically indistinguishable from 0 even in the presence of 1:1 leverage and when spread and slippage are in the range of 2 … Continue reading

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