I just want to prove you can really make money in Forex. Very sorry if anybody being offended by it.
Good night.
Thought I would stop in and see how the productive posting was going on the topic of the original post. 
I guess you just dont get it. Your post was a response to the thread question, and it was just sarcasm that was not constructive in any way. If you’d been talking to someone else like I was, it’d be different…my post was obviously not a response to the original one.
In the future, if you’re responding to the original post seriously try to provide some insight instead of sarcasm. If you can’t see the difference between my sarcastic post and yours then, once again, I don’t know what to say to you. (I’m guessing a lack of insight is probably why you just make sarcastic posts…because you have nothing important to say? Maybe I’m wrong, so go ahead and prove me I’m wrong that you can’t make a serious, constructive post. If you can do that then I’ll happily apologize for insulting you earlier.)
Happy to have you look at all my posts. Simply left click my user name and select View all posts. Apology accepted, and try not to be so sensitive.
so far it seems that the returns in forex are compareable to stocks…a little odd because i’d always heard forex trends better --> more profits
Most believe that the same rule applies in FX as in other financial markets. About 80% consolidation, 20% trend. Except for last year when the majors took on some serious trends, FX trends tend to be similarly sized, percentage wise, as in other markets. The difference in FX is margin requirement. (most likely disappearing soon in the US)
Trends are relatively defined. As such I don’t buy into the 80/20 range/trend “rule”. For instance, in my eyes, pairs look to trend more than get caught up in a range.
Is this a serious issue, like the governments really likely to reduce leverage? I read about it a bit but it sounded like it was a movement that wouldn’t really happen…I might not even get a chance to trade forex if my roll (im going to put a small maount in like 1000-1500) cant fit within good bankroll management…
Initially, I was going to daytrade stocks, but I didn’t have $25,000 for the margin requirement, so I decided to check into trading emini S&P’s since I heard you could get away with a few thousand bucks. Turned out that was a bit optimistic, from what I understand you shouldn’t even consider eminis unless you have $10K per contract you trade (more like $20K for swing trading), even though the margin requirement is much lower.
I knew that Forex was available, but it just had a very bad aura around it. It sounded like a total scam, I heard stories about unscrupulous brokerages, etc. They had all these commercials for FX seminars on CNBC and I saw all these people with a dumb expression on their face at the computer - I said “that’s not going to be me”.
However,realizing I was undercapitalized, I had no choice but to give it a shot. I mean, you could start trading with just $20 if you wanted to, so I figured its a good way to get my feet wet. I got into it, and I have to say its really cool. I frankly don’t want to touch stocks now because I find FX is in a way less complicated. Going short or long is easy. You don’t need to pay for live price feeds (the futures exchanges charge like $55 a month for that). Currencies don’t suffer the problem of money flowing in and out of it as an asset class, which happens with stocks and commodities. There’s always something happening, and you can trade at different hours of the day. I was sold on it and I’m sticking to it.
Do you think its viable to open account for, say, 500 bucks and have good bankroll management if this 10:1 leverage limit comes into effect?
I would recommend a broker that can offer you either microlots (1,000 units) or something like Oanda, where you can have any size lot you want. I don’t know what risk tolerance you usually trade with, but I like the 1% deal, and depending on the size of your stop, you should have enough to at least triple your position size if you want to add to the trade (that’s with 10:1 leverage).
As I like to say in these cases, let’s do the math…
10:1 leverage, you want to trade micro lots (even with larger leverage, trading mini lots on a $500 account is suicidal).
1 micro lot = $1000.
1 pip = $0.10.
10:1 leverage = $100 for each micro lot position.
The most you could reasonably hold would be 4 micro lots. At 4 micro lots, each pip is worth $0.40. A 25 pip stop loss works out to $10.00. If you risked 2% per trade with a 25 pip stop loss, you’d be risking $10.00, with a $90 cushion before having to drop 1 micro contract. So yes, it works out decently if you’re not Mr. Super Leveraged.
But it won’t let you hold down a multiple position. Say you got an EURUSD and a CADCHF doing something at the same time, then you have to split it as 2 lots here, 2 lots there, even though the risk is totally de-coupled in those cases.
If you’re a long term trader, you really get screwed. Lets say you want to have a position in EUR/USD, CAD/CHF, AUD/USD, and GBP/JPY - you’re so out of luck because you’ll need to have some pretty wide stops (i.e. 100 pips). Without bigger leverage that’s tough.
Those curious about the success rate of day traders should find this article interesting.
It studied the complete transaction history of the Taiwan Stock Exchange over a five-year period. From that mass of data, they were able to identify specific market participants and categorize their trading as day trading vs. investing.
The bottom line is as follows:
Our analysis makes clear the need for comprehensive risk disclosure. Prospective day traders should be apprised of their likelihood of success: only two out of ten make money; fewer do so consistently. These results paint a rather dim portrait of day traders. However, we do document a select few are able to consistently earn profits sufficient to cover transaction costs. We identify day traders who earn substantial profits over a six-month period and analyze the performance of their subsequent trades. These profitable day traders continue to earn stellar returns.
Although the market is 24 hours generally speaking it is not advisable to trade during all of them. There are particular times when there is low liquidity, such as between sessions, where it may be best to not trade. However with three good sessions a day you will certainly see more action than the stock market.
With respect to those who have been around a while I would like to challenge the sentiment that a forex trader should aim for no less than 20% per week and that a used car trader could match that return:
Taking a 1000$ investment and making 20% per week the year end balance is 13,104,630.94. Yes, that’s a $13 million balance and a 1.3 million % return. I’d be surprised if either a car salesman could achieve this or the majority of successful traders.
Yea I’m aware that different currencies have different volumes at different hours. Fortunately I have a good source that shows which currencies are hte most active at which time (the three sessions asian, euro, us and the mini session of australia/nzd).
Man, this thread was derailed. Maybe not so much derailed, but on a tangent. Folks, let’s get back on topic.
Back to the original post:
Forex possible returns, noobs,experts etc.
What are the “nomimal” daily, weekly or monthly rate of return for a ForEx trader?
Sorry for being blunt…
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300 pips per week is very achievable.
How much is the % of gains depends on the risk individual traders take.
But dont expect them to share with you the real figures as most tend to be superstitious and very very cautious. Including sharing their trading methods with anyone. It comes with the nature of trading.
I love it when old threads get resurrected…
Not really… I can’t back that up.
I don’t know how many necromancers we have out there but dang we have had a lot of zombies threads running around.