Forex trends are ponzi schemes

just food for thoughts.


ponzi scheme:
- early investors join the scheme.
- the scheme grow up, absorbing more and more investors.
- the more investors join, the bigger the scheme grow, the bigger the profits for the (early) investors.
- when there are no new investors, the scheme stop growing, and investors go for the exit.
- who exit late pay. (late exiters losses = profiters profits).



trend:
- early investors join the trend.
- the market go in the trend direction, attracting more and more investors.
- the more investors join, the bigger the trend grow, the bigger the profits for the (early) investors.
- when there are no new investors, the trend stop growing, and investors go for the exit.
- who exit late pay. (late exiters losses = profiters profits).



so that's it, trading, playing with thousands of temporarily (on all time-scales, from the half minute ones to the ones that last for decades) ponzi scheme.

Source.