Talk:Forex simulator

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[edit] External Link

When I posted this I had reservations about referencing ForexInterBank and went ahead anyway thinking that it served a useful purpose. Agree it probably shouldn't be there. This being said and only recently discovering your apparent reservations about private investors getting involved in forex trading in the first place, why would you say that a simulator is "interesting but dangerous"? That, I think, is a bit of a stretch - akin to the idea that any and all investments are a crap shoot and that the little guy is best served sitting on his hands on the sidelines.

My interest in this is really related to education. While 85% of private investors fail, 15% are, according to your own sources, successful. I keep asking myself, what do these guys know that the vast majority don't? Off the top of my head, I'm guessing that it really boils down to a disparity in experience levels.

Most traders, sold the ridiculous dream of making a $1,000 a day trading the forex, get burned undoubtedly because they don't know what they're doing. I'm also rather inclined (perhaps idealistically) to think that a stand alone simulator would be a far better way for new traders to perfect their trading skills than live demo accounts which could, I suppose, be manipulated much like the live, interactive software that is available for people to download from gambling sites. On a personal note, I wasn't allowed to sit down in the cockpit of a B-52 until I'd completed 80 hours of simulator training. Pilots spent even more fanny time there and it's a good thing for the folks I flew with. Had I not mastered my skills there, we probably would have found ourselves with dry tanks in the mid-Pacific.

Anyway, keep up the good work.

Mcduffodonnell01 17:02, 7 April 2006 (UTC)

I actually like the idea of a simulator - but ultimately this is probably going to turn out pretty much the same way as any type of "paper trading" useful as far as it goes ... The "dangerous" part is that it is advertising for a retail FX broker.

BTW I don't think that 15% of retail forex traders make profits. The quote was from one of the more reputable (as far as I can tell) retail brokers, who says to THE WALL STREET JOURNAL that he'd be surprised if 15% make money. Given the hedged quote and the context, I think he may have over-estimated! As far as investment advice on Wikipedia - I think it clearly doesn't belong - too many hustlers. So even this doesn't belong:

buying and holding a diversified portfolio, e.g. an ETF or Index fund, clearly beats over half of all mutual funds over the long run (as short as 5 years). It's not a case of sitting on your hands, it's just that non-professionals have some fairly simple ways to invest passively that are fairly profitable, and that trying to reach above your ability has some major penalties. For example - you'd never want to play golf for money against Tiger Woods. Smallbones 18:34, 7 April 2006 (UTC)

Point well taken. Mcduffodonnell01 18:54, 7 April 2006 (UTC)

I revisited this page after I spent a little time doing some more homework and decided to post the external link again. The basis for Smallbone' deletion, that the provider was a FX retail broker, is invalid. As it turns out, ForexInterBank isn't a retail FX broker, it's an educational services provider. If Smallbones or anyone else for that matter can find a source for a forex simulator (not a demo account), feel free to add it. The more the merrier.

Mcduffodonnell01 13:54, 9 April 2006 (UTC)

[edit] Looks like an advert

It still like like a straight advert to me. The "Forex clubs" look like a method of introducing traders to retail brokers, i.e. a hidden advert inside an obvious advert. [1] Smallbones 06:50, 10 April 2006 (UTC)

Hadn't noticed that. I'm wondering why on forex scams you cite an official from FXCM. Seems to me that that constitutes a commercial endorsement even if well intended.

Mcduffodonnell01 15:22, 10 April 2006 (UTC)