Is Trading a mugs game for noobs

[timsk]

Tim

If brokers are not the problem why are here posts like this on T2W

http://www.trade2win.com/reviews/brokers/214-ig#review-5676

Hi toony,
I can't comment on any particular review (and there will be loads more and any number of threads on here with similar tales) as I don't use IG index myself (never have) and I don't know the trader who posted the review.

Suffice to say, if you're worried about brokers, don't choose one who (like IG) is simply a market maker, i.e. they are the ones on the other side of your trades. Choose one who hedges their book in the underlying market and doesn't win if you lose. There are lots to choose from these days - including a few spread betting providers. Brokers that operate this business model have a vested interest in you doing well, so that you continue trading and, if you're making money, will likely increase size. The more you trade and the larger the position size, the more money the broker makes through commission and/or the spread.

As a general rule of thumb (which doesn't necessarily apply to the post you linked to), people who moan about their broker can't trade profitably. No matter which broker they're with they'll lose money and they can't/won't accept it's down to their own (lack of) ability - and look for someone else to blame for their losses. That's nearly always the broker. There are exceptions to this of course; I accept fully that not all brokers are good and some have behaved very badly in the past and, probably, a few still do.

Hope all that makes sense.
Tim.

 

[toony]

Hi toony,
I can't comment on any particular review (and there will be loads more and any number of threads on here with similar tales) as I don't use IG index myself (never have) and I don't know the trader who posted the review.

Suffice to say, if you're worried about brokers, don't choose one who (like IG) is simply a market maker, i.e. they are the ones on the other side of your trades. Choose one who hedges their book in the underlying market and doesn't win if you lose. There are lots to choose from these days - including a few spread betting providers. Brokers that operate this business model have a vested interest in you doing well, so that you continue trading and, if you're making money, will likely increase size. The more you trade and the larger the position size, the more money the broker makes through commission and/or the spread.

As a general rule of thumb (which doesn't necessarily apply to the post you linked to), people who moan about their broker can't trade profitably. No matter which broker they're with they'll lose money and they can't/won't accept it's down to their own (lack of) ability - and look for someone else to blame for their losses. That's nearly always the broker. There are exceptions to this of course; I accept fully that not all brokers are good and some have behaved very badly in the past and, probably, a few still do.

Hope all that makes sense.
Tim.

Yes Tim a very helpful reply.

thanks

 

[darktone]

If brokers are not the problem why are here posts like this on T2W

http://www.trade2win.com/reviews/brokers/214-ig#review-5676

Just another loser bleating their frustrations Id guess, or some chump from another broker trying to steal some business.

Have a read of this thread. When youre done put yourself in the brokers / MMs shoes.
You have a very profitable trader who is respectful of your pricing taking it out of you month after month.
Do you:-
i) Fǔck with him.
ii) Tailcoat his trades at twice his size.


Btw. Were you repelled?

I give you a clue.
There is only one person who can truly screw you over, and that is you! Or more accurately, the entity that you believe to be you.

Have you been repelled yet?

 

[NVP]

Just another loser bleating their frustrations Id guess, or some chump from another broker trying to steal some business.

Have a read of this thread. When youre done put yourself in the brokers / MMs shoes.
You have a very profitable trader who is respectful of your pricing taking it out of you month after month.
Do you:-
i) Fǔck with him.
ii) Tailcoat his trades at twice his size.


Btw. Were you repelled?

Totally agree.......I grew up in a family of bookmakers in the 60's

Dad and grandad had betting offices behind a jewellers in londons exmouth market and were also professional gamblers as well

They tried to be as ethical as possible with their clients ......why ?

Because it was good business to do so

Why eat the chicken when it will lay you eggs day in day out ?

N

 

[toony]

Just another loser bleating their frustrations Id guess, or some chump from another broker trying to steal some business.

Have a read of this thread. When youre done put yourself in the brokers / MMs shoes.
You have a very profitable trader who is respectful of your pricing taking it out of you month after month.
Do you:-
i) Fǔck with him.
ii) Tailcoat his trades at twice his size.


Btw. Were you repelled?

Thanks for this very helpful reply - not repelled yet I now feel I have a more balanced view.

 

[Pat494]

Hi toony,
I can't comment on any particular review (and there will be loads more and any number of threads on here with similar tales) as I don't use IG index myself (never have) and I don't know the trader who posted the review.

Suffice to say, if you're worried about brokers, don't choose one who (like IG) is simply a market maker, i.e. they are the ones on the other side of your trades. Choose one who hedges their book in the underlying market and doesn't win if you lose. There are lots to choose from these days - including a few spread betting providers. Brokers that operate this business model have a vested interest in you doing well, so that you continue trading and, if you're making money, will likely increase size. The more you trade and the larger the position size, the more money the broker makes through commission and/or the spread.

As a general rule of thumb (which doesn't necessarily apply to the post you linked to), people who moan about their broker can't trade profitably. No matter which broker they're with they'll lose money and they can't/won't accept it's down to their own (lack of) ability - and look for someone else to blame for their losses. That's nearly always the broker. There are exceptions to this of course; I accept fully that not all brokers are good and some have behaved very badly in the past and, probably, a few still do.

Hope all that makes sense.
Tim.

Good points Tim and now how about naming some ?

 

[timsk]

Good points Tim and now how about naming some ?

Hi Pat,
Any direct market access (DMA) broker falls into this category. That is to say, they make their money from commissions on trades - rather than taking the other side of your trades and profiting when you lose.

Of the spread betting providers that hedge their clients trades in the underlying market, I'm loathed to just pick out one or two as that may be seen as an official T2W endorsement. What I suggest members look for is a SB or forex broker that offers 'No Dealing Desk' (NDD) and 'Straight Through Processing' (STP). Such brokers make it very clear that they operate a different business model to the traditional market making one as it's central to their USP. There are a couple mentioned on this thread: Broker recommendations?? - and then there's good ol' Google of course!
Tim.