Hi. I've been trading for 5 years and I just blew up my umpteenth account. Sounds familiar right.
It got me thinking: cannot there be an app, based on the timely injection of funds from a central pool, into one's trading account at a moment's notice - at the crucial moment of margin call alert for example.
Traders make payment contributions into some escrow-type central account based on registered membership. Once "account in jeopardy" has been salvaged, funds are returned back to the central pool.
I've argued time past that, though FX trading indeed is "zero sum total" in structure, it is a scientific fact that no actuall losses can occur for ALL traders at poibt of closing trades, and I will prove it right here:
1. Assume 5 short-term traders and 5 long-term traders to be all the traders in the FX universe.
2. The 5 shot-termers each enter, and then soon exit winning trades, at the expense of the 5 long-termers whose accounts are showing losses (consistent with zero sum) - but still have their trades open. These are deep-pocketed trades that are prepared for the longer haul.
3. In the course of time, market prices change from purchase pressure from the short-termers who have made new trades in the opposite direction to their initial trades and once more they exit in profit. The long-termers can ride the swings to then pick such a time as when their own open trades are in profit, to then exit.
4. Exiting in profit by the long-termers will be at the expense of the short-termers who were at the wrong end of these exit trades. However, by waiting for their open trades to be in profit before exiting, therefore mean such a cycle between traders at opposite ends of trades, can result in no party having to register actual losses eventually.
The app for accounts in jeopardy can be a useful tool towards that Uhuru.
Can we not form such an association-based app traders? I would like to see this created as open source material for the trading community.
It got me thinking: cannot there be an app, based on the timely injection of funds from a central pool, into one's trading account at a moment's notice - at the crucial moment of margin call alert for example.
Traders make payment contributions into some escrow-type central account based on registered membership. Once "account in jeopardy" has been salvaged, funds are returned back to the central pool.
I've argued time past that, though FX trading indeed is "zero sum total" in structure, it is a scientific fact that no actuall losses can occur for ALL traders at poibt of closing trades, and I will prove it right here:
1. Assume 5 short-term traders and 5 long-term traders to be all the traders in the FX universe.
2. The 5 shot-termers each enter, and then soon exit winning trades, at the expense of the 5 long-termers whose accounts are showing losses (consistent with zero sum) - but still have their trades open. These are deep-pocketed trades that are prepared for the longer haul.
3. In the course of time, market prices change from purchase pressure from the short-termers who have made new trades in the opposite direction to their initial trades and once more they exit in profit. The long-termers can ride the swings to then pick such a time as when their own open trades are in profit, to then exit.
4. Exiting in profit by the long-termers will be at the expense of the short-termers who were at the wrong end of these exit trades. However, by waiting for their open trades to be in profit before exiting, therefore mean such a cycle between traders at opposite ends of trades, can result in no party having to register actual losses eventually.
The app for accounts in jeopardy can be a useful tool towards that Uhuru.
Can we not form such an association-based app traders? I would like to see this created as open source material for the trading community.
I see Beasts. I drop my scalpel and beckon on theatre nurse: "Charts!..""