wahkao3
High Supremacy Member
- Joined
- Mar 6, 2005
- Messages
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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.
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.