How We Will Win If All Use The Same Style Trade ?!!

 

Hello ,

If a large number of people use a certain method in a particular trade or style in the trade, does this make the profit guaranteed or makes the loss of their way even if the proportion of their money high in the market.
And how will the profit be made if all the people in the world are trading the same way who will win if?
Am I talking about automated trading or manual trading if everyone uses one program? How will everyone win?

thank you

 
Ahmed Ahmed Elnagdy:

Hello ,

If a large number of people use a certain method in a particular trade or style in the trade, does this make the profit guaranteed or makes the loss of their way even if the proportion of their money high in the market.
And how will the profit be made if all the people in the world are trading the same way who will win if?
Am I talking about automated trading or manual trading if everyone uses one program? How will everyone win?

thank you

They will not

 
Respective country or region looses through its central bank.
 
Ahmed Ahmed Elnagdy:

Hello ,

If a large number of people use a certain method in a particular trade or style in the trade, does this make the profit guaranteed or makes the loss of their way even if the proportion of their money high in the market.
And how will the profit be made if all the people in the world are trading the same way who will win if?
Am I talking about automated trading or manual trading if everyone uses one program? How will everyone win?

thank you

If everyone's buying, it means it's good idea to buy also, don't you think so ? It's called the market sentiment and sometimes it's enough to catch good deals, for sure you'll find plenty of documentation about.

 
Icham Aidibe:

If everyone's buying, it means it's good idea to buy also, don't you think so ? It's called the market sentiment and sometimes it's enough to catch good deals, for sure you'll find plenty of documentation about.

It is not possible for such a scenario. Someone has to sell in order for someone to buy. You cannot have one without the other. And going with the majority doesn't always work. The people with the biggest pockets (large financial institutions and banks) are the winners more than 95% of the time. Those are the people you should follow, but they aren't so easy to find. It involves understanding how supply and demand works, and knowing where to find such areas. Not easy to do, nor guaranteed to work out in our (retail traders) favor.  

 
I think the banks that provide forex liquidity would salivate at the prospect of running the stops of the mass of traders all holding the same positions.
 
Icham Aidibe:

If everyone's buying, it means it's good idea to buy also, don't you think so ? It's called the market sentiment and sometimes it's enough to catch good deals, for sure you'll find plenty of documentation about.

Sentiment is a contrarian indicator
 

According to the Wikipedia entry Retail foreign exchange trading, the retail market is only about 5.5% of the whole Forex.  

So, all of us retail traders are just a small drop in the market, and we can't make any significant change.
Even if we all trade the same strategy, there is still more than enough room to earn (and lose).

 
Drazen Penic:

According to the Wikipedia entry Retail foreign exchange trading, the retail market is only about 5.5% of the whole Forex.  

So, all of us retail traders are just a small drop in the market, and we can't make any significant change.
Even if we all trade the same strategy, there is still more than enough room to earn (and lose).

In 2016, it was reported that retail foreign exchange trading represented 5.5% of the whole foreign exchange market ($282 billion in daily trading turnover).

<=>

$282 billions is 5.5% of the daily trading turnover

50k/monthly is a drop in the ocean.

 
Still, 5.5 pct going to same direction AT THE SAME TIME changes things.
Look for sentiment indicator for instance by fxcm, it is used as contrarian indicator, look for it.
To help visualize the reason, it is equivalent to a situation that one trader issues millions of lots of buy trades in a second. 
If as some people here claim, it is good to go with the crowd, then it would have been so easy to this guy, he would just have to go all in to make profit.
But he will surely get a very bad average entry price caused by himself. There are people in this forum that can approve that this actually happens.






 
Amir Yacoby:
Still, 5.5 pct going to same direction AT THE SAME TIME changes things.
Look for sentiment indicator for instance by fxcm, it is used as contrarian indicator, look for it.
To help visualize the reason, it is equivalent to a situation that one trader issues millions of lots of buy trades in a second. 
If as some people here claim, it is good to go with the crowd, then it would have been so easy to this guy, he would just have to go all in to make profit.
But he will surely get a very bad average entry price caused by himself. There are people in this forum that can approve that this actually happens.






"Trend makers" and "trend followers", are the words you are looking for ? 

Reason: