August 1, 2010
How much can you make Forex Trading and how much do you risk?
By Planet Wealth
how well the known systems work in Forex trading (carry trade,…) and how much do you risk applying them, and for how long?
Topics: trading tips | 1 Comment »
One Response to “How much can you make Forex Trading and how much do you risk?”
Comments
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August 1st, 2010 at 12:45 am
Traditional trading of stocks on margin at 2:1 leverage is considered risky. Forex is leveraged at 100:1 and even 200:1 but few people take the time to know this and simply focus on potential profits. All beginners focus on all the incorrect things like "How much can you make?"
How much do you risk? Beginners risk their entire account and their house every time they place on a trade. How long? minutes. A leveraged position is nearly impossible to hold more than an hour by anyone less than an astute trader. Most people don’t have a clue what a trader is or does, but it takes many years to become an astute trader. There are no shortcuts. Most people reckon that if they work harder and learn more, they will eventually become successful at trading like they would any other conventional "job"; not right. Most very smart, hard-working people lose money trading.
Factoid: 90% of traders lose money, regardless of what they trade.
The carry trade is generally done only by institutions with millions of dollars to invest and need a place to park those millions.
Known systems? You mean that make money consistently? Myth.