Brokerage conflict of interest - brokers want you to lose money

[wahkao3]

Brokerage conflict of interest - brokers want you to lose money

i just learnt of the conflict of interest with brokers, particularly CFDs
Summary as below

- 90% of retails traders lose 90% of their money within 90 days
- given this statistics, your broker often take the other side of the trade and statistically they will make money
- Except for HFT, real professional traders do not trade frequently. They adopt a fundamental view , not technical view. 80% FA, 20% TA.
- brokers do not want you to be a professional trader. They hope you day trade in and out of the market as often as possible. Notice how most of their marketing encourages trading rather than investing ?
- they charge you commissions
- they charge you spreads
- and worse of all, they charge financing charge around 3% ear, on daily basis


what you all think? come in discuss.

 

[athulican]

Don't trade lor.

 

[funkid]

Brokerage conflict of interest - brokers want you to lose money

i just learnt of the conflict of interest with brokers, particularly CFDs
Summary as below

- 90% of retails traders lose 90% of their money within 90 days
- given this statistics, your broker often take the other side of the trade and statistically they will make money
- Except for HFT, real professional traders do not trade frequently. They adopt a fundamental view , not technical view. 80% FA, 20% TA.
- brokers do not want you to be a professional trader. They hope you day trade in and out of the market as often as possible. Notice how most of their marketing encourages trading rather than investing ?
- they charge you commissions
- they charge you spreads
- and worse of all, they charge financing charge around 3% ear, on daily basis


what you all think? come in discuss.

knn jjww again.

did the broker point a gun to ur head and forced ur to trade ?

 

[wahkao3]

Don't trade lor.

yes, i dont trade
good luck to those who do
their broker will love them deep deep

 

[lsm_83]

Just to share my on my investing in stocks.

During first 3 months of trading, I lose more than $15k (on paper value). Subsequently, paper lost getting bigger and bigger. As a result, lost more then 25k (paper value). As times passed, my paper loses become positive again and now on the positive side.

As I mainly trading on banks share, I learned to hold instead of 'playing' contra.

Am still learning to value investing.

 

[Shihtzu]

trading daily is so stressful and you are always trying to beat the people doing it. Those people doing it sometimes might have insider news of what's happening too.

I buy when its cheap and just hold with a super long term view. eg. I bought some technology stocks in the states and never look at it much

 

[plexxor]

don't believe your broker lor

 

[17smiles]

Just to share my on my investing in stocks.

During first 3 months of trading, I lose more than $15k (on paper value). Subsequently, paper lost getting bigger and bigger. As a result, lost more then 25k (paper value). As times passed, my paper loses become positive again and now on the positive side.

As I mainly trading on banks share, I learned to hold instead of 'playing' contra.

Am still learning to value investing.

Same here as well, I am just slowly coming to terms with the basics of knowing what are the characteristics of an undervalued stock. There are other variables like Gearing, Company Portfolios, historical Dividend Per Share, etc, besides just looking at a P/B ratio

Like for example, I bought some REIT shares of a company this week because of its strong historical Dividend Yield. If I had paid attention to its historical Gearing ratios, I might've decided against buying it Thankfully the current company's report said it was looking to reduce its future Gearing ratios down to 36-37%, by selling off a couple of its properties that are not contributing returns. I was also fortunate to discover that the stock was undervalued, albeit by only 5%

Morale of the story: Do Your Own Due Diligence

 

[chainer9999]

Come on la Wk3. 90 percent of traders lose money. Then the other 10 percent leh? Will have such problems about comms and such?

 

[Sinkie]

Brokerage conflict of interest - brokers want you to lose money

i just learnt of the conflict of interest with brokers, particularly CFDs
Summary as below

- 90% of retails traders lose 90% of their money within 90 days
- given this statistics, your broker often take the other side of the trade and statistically they will make money
- Except for HFT, real professional traders do not trade frequently. They adopt a fundamental view , not technical view. 80% FA, 20% TA.
- brokers do not want you to be a professional trader. They hope you day trade in and out of the market as often as possible. Notice how most of their marketing encourages trading rather than investing ?
- they charge you commissions
- they charge you spreads
- and worse of all, they charge financing charge around 3% ear, on daily basis

what you all think? come in discuss.

Lol big big! If u can beat the market returns exponentially, I think your Brokers will be following you instead of going against u

Thanks for the weekend joke

 

[simon_84]

As I mainly trading on banks share, I learned to hold instead of 'playing' contra.

Am still learning to value investing.

bank stocks are not for fast in fast out, you would have to hold a few months to allow the price to move up from your entry price.
typically the best time to sell is perhaps during Q2 prior to CD.

value investing is more than just buying at 52 weeks low and selling and 52 weeks high, it also includes the business fundamentals of the stock during the 52 weeks low pricing range.
criteria to which why the price is at a discount also plays a part.

 

[Sinkie]

knn jjww again.

did the broker point a gun to ur head and forced ur to trade ?

I think wahkao3 next thread will be

- Government wants all singaporean to lose money
- They hope you spend as often as possible. Notice how most of our advertisement or marketing on TV encourages you to spend rather than save ?
- they charge you gst
- they charge you erp
- they take away your earning and put into cpf
- they keep raising minimun sun so u can't touch your cpf
- they tax u
- and worse of all, they charge you interest for using your own cpf to buy housing

what you all think? come in discuss.

 

[wahkao3]

Like for example, I bought some REIT shares of a company this week because of its strong historical Dividend Yield.

dont be hard up over dividends!!!

 

[wahkao3]

bank stocks are not for fast in fast out, you would have to hold a few months to allow the price to move up from your entry price.
typically the best time to sell is perhaps during Q2 prior to CD.

value investing is more than just buying at 52 weeks low and selling and 52 weeks high, it also includes the business fundamentals of the stock during the 52 weeks low pricing range.
criteria to which why the price is at a discount also plays a part.

haha banking stocks. i dont like big banks. i like small ulu ulu banks
for example, wolverine.
i camped at wolverine for 1 year already......

http://forums.hardwarezone.com.sg/s...verine-can-buy-buy-liao-can-huat-5100313.html

 

[wahkao3]

I think wahkao3 next thread will be

- Government wants all singaporean to lose money
- They hope you spend as often as possible. Notice how most of our advertisement or marketing on TV encourages you to spend rather than save ?
- they charge you gst
- they charge you erp
- they take away your earning and put into cpf
- they keep raising minimun sun so u can't touch your cpf
- they tax u
- and worse of all, they charge you interest for using your own cpf to buy housing

what you all think? come in discuss.

i didnt pluck all these points out of thin air. I am not so clever.
i got these info from a reputable former goldmen sachs trader.

 

[wahkao3]

Lol big big! If u can beat the market returns exponentially, I think your Brokers will be following you instead of going against u

Thanks for the weekend joke

for cfd, brokers take the other side mah, no meh

 

[HerbalTeaSeller]

So if I were to buy 100k shares of OCBC using normal brokerage the brokers still want moi to lose money despite my shares is in CDP?

Then I use CFD buy 100k shares of OCBC but with leverage lesser cash outlay remaining money can be use to tank the losses if not for other investment opportunities but only pay financing & slippage then how?

Lose money blame broker, win money laugh at broker?

So what? Don't touch CFD? Don't trade stocks? What is your main objective in this thread?

 

[MikeDirnt78]

Some people are paying thousands* of dollars for taxes.

If you don't work, you don't need to pay taxes. So it is better not to work.

 

[Sinkie]

for cfd, brokers take the other side mah, no meh

You still alive why you still buy insurance to bet against your life?

 

[MuppeJack]

Brokerage conflict of interest - brokers want you to lose money

i just learnt of the conflict of interest with brokers, particularly CFDs
Summary as below

- 90% of retails traders lose 90% of their money within 90 days
- given this statistics, your broker often take the other side of the trade and statistically they will make money
- Except for HFT, real professional traders do not trade frequently. They adopt a fundamental view , not technical view. 80% FA, 20% TA.
- brokers do not want you to be a professional trader. They hope you day trade in and out of the market as often as possible. Notice how most of their marketing encourages trading rather than investing ?
- they charge you commissions
- they charge you spreads
- and worse of all, they charge financing charge around 3% ear, on daily basis


what you all think? come in discuss.

Basically what anton is trying to convey is that, most gurus (mostly IBs) are preaching the ''trade to make fast income" and luring in thousands of gullible individuals.

The Brokers want both profitable and non profitable Traders.