FOREX trading guarantee
- Thread starter Michael_P
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Indeed, even seasoned pros got burn trading future forex contract all over the world.
The "problem" in forex, like gold and commodities, is that it is basically a zero sum game (will not grow in value other than against inflation the longer you hold it). Big trader can manipulate the market for commodities, but gold and forex are strategic monetary tool that sovereign nations use for their advantage. I do not think too many traders have enough influence against short term irrational behavior, or currency wars, between various nations.
It is like poker against someone with unlimited chips, regardless of how good is your hand you will never win.
The "problem" in forex, like gold and commodities, is that it is basically a zero sum game (will not grow in value other than against inflation the longer you hold it). Big trader can manipulate the market for commodities, but gold and forex are strategic monetary tool that sovereign nations use for their advantage. I do not think too many traders have enough influence against short term irrational behavior, or currency wars, between various nations.
It is like poker against someone with unlimited chips, regardless of how good is your hand you will never win.
Originally Posted By: PandaBear
It is like poker against someone with unlimited chips, regardless of how good is your hand you will never win.
I am pretty sure you don't understand how poker works.
It is like poker against someone with unlimited chips, regardless of how good is your hand you will never win.
I am pretty sure you don't understand how poker works.
Originally Posted By: Michael_P
I like the poker analogy. I was able to use it twice already. Thanks Panda.
The poker analogy might have worked for people who don't understand how short stack poker works. A person who cannot completely call a higher raise with his money on the table can either fold or can put in all of what he has. If he puts in what he has, there is a separate pot to put in what the short stack added plus the same amount from each other in the pot. Amounts greater than what the short stack put in from each player will go into a side pot. The best hand of the participants of the side pot wins the side pot. All participants in the main pot, where all have the same amount in, can win the pot with the best hand of the larger group. So with two people in the pot, he can double up. With three in the pot, that short stack guy can triple up, and so on.
So in other words, you don't loose what you have put in just because somebody else puts in more. You get a fair deal with your short stack.
I like the poker analogy. I was able to use it twice already. Thanks Panda.
The poker analogy might have worked for people who don't understand how short stack poker works. A person who cannot completely call a higher raise with his money on the table can either fold or can put in all of what he has. If he puts in what he has, there is a separate pot to put in what the short stack added plus the same amount from each other in the pot. Amounts greater than what the short stack put in from each player will go into a side pot. The best hand of the participants of the side pot wins the side pot. All participants in the main pot, where all have the same amount in, can win the pot with the best hand of the larger group. So with two people in the pot, he can double up. With three in the pot, that short stack guy can triple up, and so on.
So in other words, you don't loose what you have put in just because somebody else puts in more. You get a fair deal with your short stack.
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