Does anyone really make money off of the Forex?

Making money is possible in Forex…very possible. But it could take time before you get to a point where you can make it and keep it consistently.

The very nature of the question “Does anyone really make money off of the FOREX” implies that you haven’t done enough homework. If you have no system that you have absolute confidence in then there is no way to make money in forex or any other market. Stop trading real money until you have a tried, tested and true method

The homework and preparation to trade properly takes time, some people more than others. It is often a process of trial and error, trying different methods to see what fits you. When you find that fit and combine it with a proper mind-set, then there is no stopping you and you feel like something has just “clicked”. Then you’re on your way and it truly is magic that moment. Until you get to that point there will be many difficult moments when you feel that trading profitably is too elusive, just not worth it or impossible. STICK WITH IT!!! It is possible, you just need the commitment before you arrive at your “ah-ha” moment.

I can honestly say i do make money trading Forex, but i’ve been at this since 2004 and this year was my turning point. It just sort of all came together after a while and i think i just got my head right

hi pipbull,

can you clarify this ‘leverage’ word? i have heard it is possible to open a micro trading account with �100($200) and be offerred 100:1 leverage, meaning you can trade with �10,000 ($20,000).

is this correct? because i tried to take advantage of alpari (uk)'s 100:1 leverage offer on a live account and they opened one for me with �100 equity, �100, margin �100 balance. i didn’t see no �10,000.

prior to this i hasd conversed with one of their reps on the phone and they assured me 100:1 leverage means �100=�10,000 trading capital.

as a senior trader here, please refer to brokers who offer 100:1 leverage i would appreciate your input on this. please don’t refer me back to alpari(uk) as i believe i was misled.

thanks

hypnos63

The equity in the account will be your �100. At 100:1 leverage you won’t be able to open a minilot (�10,000) because the ‘100:1’ refers to the margin you need to set aside (in this case �100). Since you also have to pay the spread which will be a few pips at (say) 50pence per pip you would not have enough in your account.

Even if you had �150 in your account, don’t try to open a minilot - 100pips move against you would have you margin called and down to �100 again. This 100 pips may happen in one trade - or if you set stops, after several trades. Don’t forget you are losing a few pips in spread each time you open as well.

IMHO don’t trade a �10,000 lot unless you have AT LEAST �2000 and better �5000 balance. Find a microlot broker (�1,000 Lots = 5pence per pip) and make sure you have (ideally) �500 deposit.

Hope this helps

From the sound of your basic question, hypnos63, I would strongly suggest that you go through the free Babypips school before you do anything else. It will give you a good overview of the Forex market, including things like leverage, Stop Losses, and how to choose a broker:

School of Pipsology - - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

You can also do a search of the forums and find many recommendations for brokers. Most offer 100;1 leverage, but you need to know what that means for you and how best to use it. The school will explain that.

thanks andyk, and in2blues. i will re-read the babypips school treatment of this and search for a micro-lot broker. will appreciate any other helpful tips.

Oanda is probably your best bet for a micro broker as they don’t have an initial account minimum and you can trade any size you want, not even standard mini lots, you can trade like 1/1000 of a lot if you want.

Setup a demo with them but make sure you are successful for at least two months in demo before you risk your HARD EARNED money. Don’t think you can skate by and do a week and your ready to go (99% of noobies think this, and 99% go on to lose money). Take your time, don’t rush this. Its not an overnight process, so respect it for what it is and it will save you money.

thanks daedulus. i have already been practising on the alpari demo and will take a look at the oanda demo. appreciate the pointers.

i have been advised to put in trailing stops to lock
in profits when using a particular strategy.

how does this work with metatrader
platform?

i have seen the order button that lets me put in a
trailing stop, but how does this differ from the
regular stop-loss setup? when initially placing the
order?

i’m looking to place buy or sell stops with a
trailing stop to ;lock in profits’. how would i do
this on metatrader 4?

I love Trailing Stops (TS). Oanda doesn’t offer them at all, though, and with MetaTrader you have to keep the platform running. When you shut down MetaTrader, your TS no longer functions, although your regular stop will, as they are stored on the server side.

Keep in mind that with most brokers, a TS doesn’t become active until 1 pip after your setting. For example, if you have a 20 pip TS, the price must move 21 pips for it to become active, at which point your TS would have moved up 1 pip. So, if you’re using a TS to lock in 20 pips in profit, the price would actually have to move 40 pips before your TS would be at the 20 pip level.

So, continuing with the 20 pip profit example, when you initially place your order, you set a Stop Loss at 20 pips and a Trailing Stop for 20 pips. If your trade goes against you before the TS kicks in, then your SL protects you. If everything goes fine, once the price moves 20 pips, you can move your SL to break even and the TS will kick in after that.

I really wish all brokers would do it the way EFX does. Theirs is a pip-for-pip TS. So, when I set a 20 pip TS and the price moves 1 pip, my TS moves 1 pip. That means that the price only has to move 20 pips to lock in my profit instead of 40 pips with most other brokers. It follows the price all the way. I love it.

thanks in2blues. are you talking about efx.co.uk, or efxgroup.com?
what does alpari uk do?

this means i can’t use oanda, because the strategy i’m talking about has no exit point. they advise trailing stops.

another thing in2blues, what if i keep the stop- loss in place after 20 pips? or foget to move it to break even? will the TS still supersede and kick in when its supposed to? talking about metatrader.

EFX: Experience Forex Freedom

I don’t use trailing stops for the simple reason that too often price retracements can hit your stops and then continue in the original direction. They are fine for a lot of people but I was burned once too many times by them to consider using them.

I only use them if my contracts stops are already at their last stop loss values with profits locked in and i’m letting profits ride overnight or something when i’m not at the screens to manage them.

But if your managing the trade somewhat actively, I don’t feel they are necessary and can be detrimental.

This however, is just my opinion, based off my trading style, and others may swear by them and have excellent luck.

If your method advises trailing stops, why don’t you just do it manually… i.e. if price moves up 5 pips, you move your stop up 5 pips, etc? The 1 for 1 trailing up is what kills a lot of people and kicks them out too soon. Price never moves from a to b in one straight line move, it moves, comes back a bit, then moves again, so if your trailing stop is too tight, its gonna knock you out and then work. If you can I would just manually move stops.

thanks
daedulus. however the strategy is a long period one (daily-weekly) can’t be closely monitored. appreciate the imput

As daedalus said, it’s EFX Group.

Yes, the TS will still move past it without a problem.

You make a very good point. I’ve been stopped out with a TS like that, too. It all depends on how tight your stops are, as you say.

Are you really being serious?

So he is averaging 2 pips profit a day then with 100 lot size?

That method can be very profitable with proper money management.

I’m being completly serious. But trading a 4hr chart its not like hes daytrading or something. So I don’t know about what his daily average would work out to be. Last month he had about 8 trades the entire month and averaged between 40-90 pips per trade. Total he had a little over 500 pips. 500 X 100 Std. Lots = 500,000 USD.

Every trader knows that the key to really profiting is adding size. I’m just as happy to double my size and half my pip quota for a day! Easier for me, less commissions, why not?

Congrats to him. Can’t believe his broker hasn’t started messing with his trades yet since he is pulling out that kind of money. Do you know which broker he is using? Which I’m sure his account is so big they really don’t mess with his trades like they would a small account trader.

To hear everyone tell it: You start winning/pulling out money, and they start messing with your trades, making you pay/lose.

Glad to hear some positive feedback. Make sure to post a pic when he buys it! Hope he doesn’t pick yellow! LOL!

I’m suprised they haven’t been messing with his trades either! I asked him about that but he says hes had no problems. Whats more amazing is hes actually been using deutche bank, which is essentially fxcm, which as far as I know, is a bucket shop more or less. But I guess if its working for him its working for him. Maybe they have set his account aside to take positions with him, instead of hedged against? (Is that even possible?)

And whats the matter with yellow?! Hes ordered a Rosso Corsa Red with black interior and red stiching. It should be amazing! I love yellow cars, and i’ll make sure i post a pic up of what i’m in the market for when I find the perfect one!

No offense about the yellow but come on, its a ferrari. It stands out by itself, it doesn’t have to be yellow to do it.

But thats just my opinion. Have at it, I don’t own a ferrari. I’m going after the LP 640! That is my goal in 2 years!

What ever you get, good luck getting it! Hope you get it!!