Couple questions from a complete noob

Hey guys. I’ve been playing online poker for the last 4 years and while the money decent, I’d like to make more so I thought I’d give trading a shot. I just have a few questions before I really commit to it though.

  1. I keep seeing people who claim that averaging 5% a month is fairly easy. Why aren’t these people managing huge amounts of money? Some people would kill for 10% a YEAR. Surely you should be able to find a ton of investors if you can do 5% a month consistently.

  2. I can never seem to find a straight answer to the “how much can you make?” question. What % of forex traders are making millions doing this? What does an average professional make?

  3. In poker I was lucky enough to have a friend who was making consistent profits and he let me watch him play as he explained his thought process and answered any questions I had. In a couple of weeks I learned stuff that would have taken me years to learn on my own or through reading books.

The truth is that I’m a bit lazy and I don’t like reading. Would anyone be willing to help me by holding my hand through some of the basics? I’d be willing to pay for this.

For me, why bother? I do not care to handle another man’s money. It would change my psychological behavior during my trades.

An easy guess would easily be that only a small fraction are millionaires from trading Forex. There is no average amount of money. The field is so vast across the board that you won’t be able to pin point any type of amount. I personally know a couple traders who pull down 100k a year. Whether that’s average or not, I wouldn’t know.

Don’t offer money. Someone will accept it and you won’t learn a thing from them. Traders that mentor do not do it for profitable gain. And if they do, I would suspect they are in the business of taking your money and not in the business of trading Forex.

Hey Mastergunner, thanks for the answers.

For me, why bother? I do not care to handle another man’s money. It would change my psychological behavior during my trades.

To make millions from commissions and %'s of profit.

An easy guess would easily be that only a small fraction are millionaires from trading Forex. There is no average amount of money. The field is so vast across the board that you won’t be able to pin point any type of amount. I personally know a couple traders who pull down 100k a year. Whether that’s average or not, I wouldn’t know.

Don’t offer money. Someone will accept it and you won’t learn a thing from them. Traders that mentor do not do it for profitable gain. And if they do, I would suspect they are in the business of taking your money and not in the business of trading Forex.

Yeah, both of these make sense.

I’m just trying to figure out if its worth it for me. I make a decent living playing poker and I only work 2 hrs a day. Would averaging atleast 250k a year after putting in years of hard work be an outrageous goal? Is this amount reserved for elite traders?

I would say to stick with what you know if you’re not willing to invest your own time. It’s a tough business and it requires absolute devotion until you leave it. You can’t make 1 system and follow it until the grave. Markets change and you can see that by looking back at charts from circa 1990 compared to today.

mastergunner99’s viewpoint is obviously incorrect, not all traders with great knowledge do so with the intention of financial gain in mind, a mentor may not want to work for peanuts either because it requires time, effort and energy in instructing a person new to this game, he wants to know that his efforts are being appreciated and a mere pat on the back and a thank you from a newbie is clearly missing the point in most instances. Mastergunner99 has an even less argument when a mentor does not require money up front. Perhaps the real issue here is that mastergunner99 was taken advantage of earlier in his career and now he paints a negative picture of all trading instructors, ruining the reputation of even those that do have honest intentions.

Many other industries have their so called gurus or just plain individuals that have no hidden agenda, from flight instructors, music teachers, voice coaches, attorneys, doctors, etc… who teach in a private setting or institutions of higher learning, Why should trading instructors be singled out? The key point here is that potential students have to separate the wheat from the chaff, because not all mentors are perpetrators of fraud, but in mastergunner99 understanding TradingFish he is making it clear to you that all have hidden agendas, which is clearly not true.

I believe that mastergunner99 may want you to think that you were born yesterday.

I think mastergunner was just trying to tell me to be careful. Wherever there is a chance to to make alot of money in a short period of time there are going to be scammers. Telling everyone I’m clueless and willing to pay probably wasn’t the greatest idea either. A trading instructor doesn’t really need any credentials. Anyone can say they’ve made millions trading and I have no way to tell the difference without seeing a copy of their tax returns.

I’m not looking for someone to teach me how to make millions. Just someone to point me in the right direction and help me avoid making the same mistakes they made when they were learning. I know that all the information I need to get started is in a couple of beginner books and on this website. I’m just trying to get there quicker. I also know that time is valuable so I don’t expect free help.

Speak Out" against the Proposed CFTC Leverage Change to 10-1 for all US Brokers.


Just received this e-mail from GFT, let your opinion be heard and stop this new rule change from happening. Even if it does not affect you, they soon may enact a policy that will. SPEAK OUT now!


Dear Valued Trader,

The U.S. Commodity Futures Trading Commission (CFTC) announced on January 13, 2010 that it is seeking public comment on proposed regulations concerning retail forex trading.

As part of the proposed regulations, “leverage in retail forex customer accounts would be subject to a 10-to-1 limitation,” which means 10:1 leverage would be the maximum amount allowed for forex traders in the U.S.

An example of how the proposed regulatory restrictions would affect a major currency pair appears below:

Maximum Leverage under

Current Regulations Maximum Leverage under Proposed Changes
USD/JPY USD/JPY
100:1 leverage (one percent) 10:1 leverage (10 percent)
1 lot (100,000) 1 lot (100,000)
Margin requirement: $1,000 Margin requirement: $10,000

We believe that all traders should have the right to choose the amount of leverage that is appropriate for his/her risk appetite, and that this basic principle of ‘choice’ is being threatened by the proposed CFTC regulations.

Should you feel strongly about the proposal, there is still time for you to help determine the outcome of these proposed regulations. You can make an impact by sending comments directly to the CFTC at: <[email protected]>.

Please include ‘Regulation of Retail Forex’ in the subject line of your message and the identification number
****** in the body of the message.

You can also submit your comments by any of the following methods (include above ID number):

  • Fax: (202) 418-5521
  • Mail: David Stawick, Secretary
    Commodity Futures Trading Commission
    1155 21st Street, N.W.,
    Washington, DC 20581
  • Courier: Use the same as mail above.

In the next few days, GFT and the rest of the U.S. forex industry will be releasing a more formal opinion about the proposed changes. If you wish, you can read further details about the regulation on the CFTC website by clicking here.

In the meantime, we encourage you to voice your opinions to the CFTC and your local U.S. representative.

As always, we thank you for your business.

Best Regards,

GFT

The key point here TradingFish is that very often newbies want a quick solution otherwise they’re quick to point out that it doesn’t work and out of desperation what some struggling traders do is attend high priced seminars in the hope that things will turn around when in reality it’s the trader that’s being exploited by a shrewd businessman that is making people believe that buying a seminar worth thousands of dollars is the answer when in fact it may not be the answer. It’s true that some traders learn quickly but that is not the standard, many toil away for many months, some years.

It’s obvious that many people new to this game are clumsy, sloppy, clearly not proficient so something begins to give and it’s usually not pleasant. That’s the conundrum that faces people new to this game, they may want education that is free, but often times the markets makes them pay a costly tuition for not being educated or if they are not being guided correctly as well, and that’s where a mentor can help a person immensely, it’s just unfortunate that some mentors exploit this, whereas some mentors do not, that’s what I’m making clear, what irony, a person who wants to make big money as an attorney for example does not become an attorney overnight and that’s precisely want newbies often want or expect, but ask yourself, does it make sense?

Simply put, there is enough information available on the internet, along with the scores of people that do offer assistance at no cost, that it makes no sense to drop a dime for a “mentor”.

You cannot purchase success in Forex. It is something that requires dedication, hard work, patience, and a thorough understanding of how the markets behave to achieve monetary success.

Your assertions that I have somehow been burned are absurd. I question why you have so heavily defended this. Perhaps you have something to sell, or maybe you’re one that is paying another for services that could otherwise be provided for free.

Incorrect again mastergunner99, you’re missing the point entirely, a person whose aim is to learn how to play a musical instrument for example consults with a music teacher with great experience. There is wisdom in consulting a person with experience, period.

I’m not insinuating that a newbie trader does not require a mentor, what I’m making clear is that it could be of great value to a person that is struggling, that is not in dispute nor can it be challenged, even an ignorant person understands that, get that through your head

You’re also incorrect in me saying that you were burned, you’re putting words in my mouth apparently, I said that: “perhaps”, not that you were.

So… anyone want to mentor me?:o

When you start seeing ads everywhere touting that a music teacher can turn you into a musical sensation making tons of money, then we can carry on with that analogy.

There’s a vast difference in the results when one searches for Forex Mentor vs Music Teacher. Doesn’t quite seem that music teachers are in the business of creating financial independence to those that aren’t even musically inclined.

Have you gone through the BabyPips school yet?

Have you gone through the BabyPips school yet?

I’ve skimmed it.

Hi trading Fish
In your own words you are a bit lazy, why would anyone want to mentor a lazy student ? certainly not me ! to trade forex requires dedication, it is not and never will be a get rich quick industry. You earn money playing poker and it is highly unlikely that you will have the self discipline to trade forex. Not trying to be negative here just practical. Imho, spend some time, find a system, here or on one of the other sites (FF) that has an actively trading thread. You will have the benefit of "live " help from people that are actually trading. You will find out whether trading suits you before committing to anything

best regards
Dave

You’re clearly missing the point again mastergunner99, a person that consults a person with great experience has great value, period.

I believe that the spirit of this thread’s original intent at the beginning is being compromised by you at this point. whereas i’m just doing my best to inform TradingFish only, with objective reasoning, you’re making it a little too personal i believe.

Let me know when you’ve completely gone through the school. It took me about three days to initially digest all the information Babypips provided.

On the contrary, if you think this is too personal, then you are the one that’s creating it too be personal. You think I missed the point? Heck, TradingFish himself even understood my point.

You have effectively created an argumentative stance about nothing. Congrats.

Have your last word if you want it and move along with something more tangible.

If i may Superior Master Contributor and Member mastergunner99, moving along here…barring anymore more outbursts from you of course… I hope that TradingFish is now better informed of the options before him.

Regarding your questions TradingFish, a person may not want the obligations associated with managing capital for one because it brings about unpleasant issues that are inherent with such endeavors, such as threats from investors who might argue that a money manager could have made more money for them or they might feel that the money manager did not do much of anything, threats of lawsuits, and so on …

Of what value is it to know TradingFish if a trader makes millions or if a trader makes 100K per year, I mean, what is actually being gained by knowing this? it clearly does not make a person a better trader if he has this information, understand this key point, some traders have different ambitions, different goals, some are content with making just enough to send their sons or daughters to college, others may finance their travels, while others are not interested in disclosing how much they earn for the entire world to see for obvious reasons, and besides who really wants to inform their neighbor that he makes millions per year? would that really serve his interest?