August 28, 2011

If there any body who is earning his living by FOREX trading. Is it liable?

By Planet Wealth

I would be thankful if some one provide me his/her personal experience about forex trading, particularly in Range trading.

Topics: trading tips | 1 Comment »

One Response to “If there any body who is earning his living by FOREX trading. Is it liable?”

  1. Paul U Says:
    August 28th, 2011 at 12:44 am

    Earning a living with Forex is dependent on three factors. First, your starting account balance. Second, your actual performance level. And third, your living requirements.

    If you are opening an account with $500…the answer is no…you will not be able to make a living at Forex. Even $1000, $5000, $10,000 or $25,000 would not be enough of an initial account size to make a comfortable living in the Forex market.

    The next area of importance is your skill as a Forex trader or the effectiveness of the strategy that you follow. If you are a 50/50 trader and win on half of your trades and lose the other half you cannot make a living at Forex. If you have the time, the patience, the discipline and the knowledge to make at least 20 pips in 4 out of 5 days of daily trading you may have a excellent shot at making a living from the Forex market.

    I also personally know quite a few conservative Forex hedge traders that consistently make over 8% return per month.

    Here is where things get fascinating. Let’s say that you have an account of $100,000. If you were to earn over 8% per month and only draw off 4% ($4000) per month you may be able to live quite comfortably with that income level. And your account balance would continue to grow, more than doubling every 18 months.

    So I guess a excellent goal would be accumulate an investment amount of $100,000 before deciding to simply live off of your Forex investment. It is incredible to me how many people are working very hard while they have well over $100,000 sitting in CDs, money market accounts and mutual funds earning only 3% to 10% per YEAR.

    The final point to keep in mind is to choose if you want to spend the bulk of your time sitting in front of the computer day trading, or you want to go through the stress of hoping that you guess the news releases correctly as a fundamentals trader. Or would you prefer to be a conservative Forex hedge trader spending about 30 minutes a week to manage an account of any size.

    I wish you well and I hope that you can soon realize your goal of generating a comfortable living through Forex trading.

    paul

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