May 22, 2011
What do you think about forex trading, is it really profitable?
By Planet Wealth
I want to try forex trading, I don’t know how to start, I want somebody who experienced it to share with me his/her experience
Topics: trading tips | 7 Comments »
7 Responses to “What do you think about forex trading, is it really profitable?”
Comments
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May 22nd, 2011 at 3:08 pm
Forex trading is profitable if you are able to abide by three simple rules:
1) Stick to one or two strategies that work year in, year out.
2) Apply excellent money management techniques. This means you should never expose more than 3-5% of your account to the market at any given time. This way, a losing trade will not hurt your account irreparably.
3) Aim for a reasonable profit margin of at least 40% monthly. Some people say that aiming for up to 40% is suicidal. My experience has shown that if you have a excellent strategy (and I have seen a blog where there are more than 30 strategies to choose from), some of them can deliver up to 100 pips over 2 days of trading, if the trader makes the right entry and follows the rules.
For me, I do not trade every day. This is my 6th year in the market. I have learnt that excellent strategies, applied with excellent money management, is what makes the difference between success and failure.
You need to get access to strategies, and use them. One of my favorites is using crude oil to trade currency pairs involving the USD, JPY and CAD. When you know such relationships, you know why things happen in the forex market.
When you know why a credit rating downgrade in a Eurozone country causes the EURUSD to drop in value, you are already on your way to knowing how to trade forex profitably.
When you know that the CHF is a safe haven currency and that when terrible things are happening economically in Europe, a SELL position on the EURCHF can rake in 1000 pips (as happened in Nov 2010 because of the Irish debt problem), then you are on your way to trading profitably.
Forex trading is profitable. Just like a door has a key which locks and unlocks it, so also forex trading has keys. You need the keys to be able to unlock them.
May 22nd, 2011 at 3:08 pm
I’ll share with you what I’ve experienced with the Forex.
I started trading over 10 years ago. At first I educated myself for several months. Then, during a major drop in the market, I was able to find a excellent strategy. I traded it live, and made some money for a few weeks. Then, when the huge drop finished, the strategy didn’t work anymore, so I lost all the money I had made, plus I lost a thousand or so more.
Then, over the course of the next 10 years or so, I educated myself a lot more. I made probably a dozen different strategies. Blew away probably $4000 more dollars on those strategies.
In the end I finally found one strategy that would work, but it wasn’t very exciting. It worked, but only on the hourly chart, and it held onto trades for an average of 10 days! So it traded so slow, I did the math, and determined it would take the rest of my life to make much money on it. And God forbid it should "change behavior" again after all that time, and bomb out like the others, after years of me waiting for it to do excellent.
But a while back I stumbled across and new website, and I’ll be pleased to share the link below in my source(s). basically it does what I always thought was impossible… it gets professional, successful traders to share their strategies with people like me. Now, the key to the success of the website is that it doesn’t question those pro traders to share their WHOLE strategy, just their buy and sell signals. So they are called "Signal Providers". And since they get to still keep their underlying strategy secret, many pro traders are willing to share just the buy and sells, especually if they get paid for it.
The website pays them, and the website makes money on all the traffic that they get as a result, so it’s a win-win situation. And for me, it gives me access to free information on what some of the best traders out there are doing at any time of the day. So if I’m wondering if buying or selling would be a excellent thought at any time of the day, i can head over there (in fact I keep the website open at all times pretty much) and see what they are doing.
Even better though, I see you can make a demo account and have your demo account "follow" what they are doing. You can even follow several of them at once. I found that it is safer really to follow several of them, because, then if one Signal Provider does terrible, then the others you are following will tend to make up for it, so you still come out profitable. It’s less likely for 10 excellent traders to all do terrible at once, than for just one to do terrible. So there is safety in numbers.
Anyway if you are new to the Forex and you want to save yourself 10 years of headache and losses, I suggest you head over there as well and bookmark it. Set up a demo account, and follow some of them. But I’ll give you some additional tips to help…
Even with a excellent strategy, or several excellent strategies, you’ll still lose money most likely if you trade too agressively. I’ve lost money on excellent strategies. Thing is, you see you have a excellent strategy, so you get super excited, and you want to take it to the bank and get rich by tomorrow morning. Patience is the key. You need to aim for like 10% account balance growth per month MAX. Which means you can’t expect to take a $1000 account and up it to a million in one year. That would be WAY too aggressive. The level of agggressiveness in your trading is determined by your lot size. If you trade huge lot sizes on a small account, and then you have just a few losses at first, you’ll bomb your whole account. Then it really stinks to then watch the strategy continue to do excellent over the course of several months… without you. So whatever you do, don’t bomb your account in 3 to 5 trades! Trade small, and have patience.
So if your account is $1000 or less, trade micro lots, and no more than 3 to 5 open at a time. If your account is TEN TIMES BIGGER then you can trade mini lots. Okay? Don’t go trade multiple mini lots on a $500 account. You’ll blow all your money away in just a few hours at that kind of aggression. Trade small.
Here are all the links you’ll need to get set up:
May 22nd, 2011 at 3:08 pm
Forex trading can be very profitable for the less than 5% that attempt it. Trading can take 3-5 years to become consistently profitable. Forex Trading can take longer (than simpler forms of trading… like trading stocks).
Read books on general day & swing trading.
Read books specific to Forex Trading.
Learn trade money management (risk control).
Know market and personal psychology.
If you want to know how successful traders get to where they are today… read;
Millionaire Traders by Cathy Lien & Boris Schlossberg
http://www.amazon.com/Millionaire-Traders-Everyday-People-Beating/dp/0470452544/ref=sr_1_1?s=books&ie=UTF8&qid=1305634531&sr=1-1
May 22nd, 2011 at 3:08 pm
Aaron if you are going to try to bullshit someone at least use your own words, instead of copying some shite off the internet. By the look of your pic 10 years ago you would have probably been 6. Dont make me fuking laugh. You know as much about fx trading as a fucking retard
May 22nd, 2011 at 3:08 pm
her
http://www.forexar.tk
May 22nd, 2011 at 3:08 pm
Honestly, you need to start slow and build yourself up. Like most things trading is all about discipline. If you can’t control your emotions you will not succeed. It is also vital that you only trade with money you can afford to lose. It will take time, but can succeed. Do you research and trade on a practice account like it was real and don’t trade real money until you are making solid trades.
May 22nd, 2011 at 3:08 pm
Now a days investors and financial institutes are looking to make more profit from Forex currency trade. It has grown as a profitable business within the last few years. Although there are also risks of loss but there is no gain without risk.