June 16, 2011
Does Forex trading actually work online?
By Planet Wealth
I went through some training, and afterwards trained myself on virtual cash. but after I thought I was excellent enough and I paid in real cash, I lost the whole stuff in the first month. Do people really make a living in this?
Topics: trading tips | 9 Comments »
9 Responses to “Does Forex trading actually work online?”
Comments
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June 16th, 2011 at 3:08 pm
From Money Magazine (a while back).
Only about 20% of first time forex traders make money in their first year out.
You’re not alone.
Also google Forex Scam.
Or the company name you were dealing with followed by the word scam.
Some of these companies will not give you the right numbers.
And you will reckon you lost money, even though you made money.
(they keep the profits).
Only deal with companies you trust…
June 16th, 2011 at 3:08 pm
Hi.. patrick….
I experienced same thing when i started forex trading back in 2007. i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has fantastic impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is vital in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don’t trade emotionally anymore.
if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.
June 16th, 2011 at 3:08 pm
The difference between demo trading and real trading is in demo you do not care if you win or loose. The main things you need to learn is dont be too greedy and dont chase losses, This can be helped by placing stop losses and take profits. Set your take profit to an amount you will be pleased with that is not to high and then leave the platform to trade, this way you trade will automatically be closed, so you do not keep trying to get a few more dollars and your trade turns on you. http://www.bestforex-broker.com
June 16th, 2011 at 3:08 pm
It is simply really Patrick, the answer is really simple because there are people who make "nice return". Not monthly income. There’s huge different between return of investment and income. You see, forex just like other financial products are literally an investment and every investment need time to develop and give you result. People cannot expect to get millions in months trading forex, you got to bit by bit Develop it. start with small, micro account where you can trade $.1/pip with deposit of $1K, when you got to $2K you trade $.2 and so on.
I have friend of mine that starting with micro account, now he is trading 1 pip=$20 after around 4-5 years trading the same account. so, when you "reach" this level, you can make regular withdraw month after month.
Hope this help,
June 16th, 2011 at 3:08 pm
They do, but you have to be careful about setting stops and not chasing after your losses like a gambler on a losing streak. It’s especially tough to try and "scalp" small movements out of the market because this small term movement can be very volitile and can knock you out in a minute. That’s because leverage — which is nice when it works FOR you — is a double edge sword that can kill you just as quick when a trade explodes back in your face.
The huge players with more money to toss around (margin) can back their stops out several hundred pips and ride the very long term trends in the market and stay away from all the market "chop" or turbulence that kills many smaller traders who are working down in the trenches with small 20-30 pip stop losses. This can result in death by a thousand cuts as you keep getting stoppoed out for small losses because you’re not giving the trade room to breathe.
Study what you did incorrect, know your mistakes and slowly get back in the game. This time play within your means, both financially and technically. And be careful to control your emotions.
June 16th, 2011 at 3:08 pm
look stock trading in my opinion is simpler.. i traded stocks for 6 years befoer i went to the moon with forex… i blew up my account 3 times in one year 5K year account UGH and i stuck with it now 5 years later I turned 100 dollars off complete failure no money left thats all she wrote I turned that 100 in 200 then into 1000…. 5000….. 10000… 100000…..just in 5 years.. then 5 years later.. i turned that 100K into 32 MILLION dollars. ANYTHING IS POSSIBLE
June 16th, 2011 at 3:08 pm
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is similar to what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. The net winnings of everyone combined equals zero. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Really Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. But, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: "Go to Forexcrap,com/q2347." The "q2347" is a signal to the Forexcrap site that you are being referred to them by "q2347." If they sell something to you, "q2347" gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a excellent number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Read the warnings in the links below:
June 16th, 2011 at 3:08 pm
Hi.. patrick….
I experienced same thing when i started forex trading back in 2007. i have attended a lot of seminars, read counless books on forex trading and it all cost me thousands of dollars. the worst thing was i blew up my first account. after that i opened another account and the same thing happened again. i started to wonder why i couldn,t make any money in forex trading. at first i thought i knew everything about trading. finally i found that the main problem i have was i did not have the right mental in trading. as we know that psychology has fantastic impact on our trading result. apart from psychology issue, there is another problem that we have to address. they are money management, market analysis, and entry/exit rules. to me money management is vital in trading. i opened another account and start to trade profitably after i learnt from my past mistake. i don’t trade emotionally anymore.
if you are serious about trading you need to address your weakness and try to fix it. no forex guru can make you Professional trader unless you want to learn from your mistake.
June 16th, 2011 at 3:08 pm
To answer your question: Yes people make a living through this.
But thats 5 – 10% of the forex traders out there. It takes discipline and perseverance.
And it also requires you to learn the proper system that forex traders need to be consistently profitable.
It includes money management , trading psychology and of course Price Action.
14 years of Full time forex trading experience,
Asia Forex Mentor
Ezekiel Chew
http://www.asiaforexmentor.com