Resolved Question
Why do others have to lose in order for you to win?
Sometimes I hear people say that as a reason for not giving out their strategy or other reasons.
I thought it would be easier to make money if everyone in the world worked together.
If everyone went long same time and short same time... would be very easy to make money.
about 1 year ago
Best Answer - Chosen by Voters
If you bet the eurusd is going down and you short it, someone somewhere on earth is at the same time long the eurusd. If you are right, and the pair falls, you profit while simultaneously the other side of your trade who bet against you loses money, its how the market works. If everyone were to went long at the same time, who's going to be the person shorting? Lol thats not how the market works, there will always be people out there who want to sale and another people who wants to buy.
about 1 year ago
Answers (3)
In order for you to buy some currency another person has to be selling currency, like any other market the currency is a physical item, if everyone tried to buy currency there would be no sellers and therefore no way to open a position. Obviously when you buy a position someone else might be selling short, or someone might be closing a position that has already gained them profit. The other reason that some lose while others win is that people can look at the same data and read it differently. Some trades will always be a loss (for everyone). That is the nature of trading markets. It would be a perfect world if everyone could profit constantly from markets. But its not possible. The way to win is to learn to preserve capital and minimise the losses.
about 1 year ago
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This isn't exactly true. Even though 80%-90% of market participants are speculators, there are still some who engage in the spot fx market to hedge or to do business. For instance, an importer in the us wishes to buy some ninja stars in japan would first need to exchange his us dollar for the Japanese yen. In effect, he engages in the foreign exchange market. Strictly speaking, every winning trade doesn't necessarily need to be accompanied by a losing one.
about 1 year ago
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Is really dificult to be synchronized, if everyone is making the same thing probably no one will will. In order for the free market works you need buyers and sellers, if not the market will not move. Every person is unique so everyone have their own opinio for someone is good time to buy and for someone is a good time to sell, but is not what the people think is about what the graphics and indicators are telling and showing. So if you want to ake money trading in forex, you need to learn how the market moves and analyze the graphic and the indicators you need to know about the major economic news and their impact in the currencies, you need to educate yourself and have discipline. Is the only way to make forex a good investment and not a gambling game.
about 1 year ago
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