Hello traders.
One of my friends tells me that an individual cant make profit in the forex market.
He says it is because trading is a zero sum game and BIG COMPANIES like hedge funds take money from individual traders.
Individual traders don’t have developed technique and don’t have information advantage, so they will eventually fail. (This is what my friend says.)
What do you think about it?
Can an individual make money?
Your friend’s opinion is wrong.
As a private retail trader you don’t even have to be a great trader, only good enough to make more money than you lose. you can do this by running more winning trades than losers, or having larger winners than the losers, or a combination of both. The aim is not to become as rich as a hedge fund or a billionaire, it is to make money and it is absolutely do-able.
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Definitely. You just need to follow where the big money flows.
You can make money, you can make big money, you are unlikely to make big money without having big money to start with.
I am using MA and Bollinger band.
My friend says it is used by millions of people and it is why I am prone to fail.
What do you think?
Like any tools, the success of the job depends on how you use them.
I am in trend-following trades. I find the use of a couple or so MA’s invaluable for confirming trends, and gauging their strengths relative to each other. But I wouldn’t use any indicator for entry signals. Also I never scalp and never trade reversals.
But anyway, the point is that there is nothing inherent and structural in private retail forex trading which makes it impossible for a client to make good money. The fact that most of them can’t do it is saying heaps about theses traders but nothing much about the markets.
Can I know your yearly return rate?
No you can’t. In any case, returns are so individual and heavily affected by how you manage position size, exit tactics, pyramiding opportunities, number of correlated trades etc. that such a metric is useless as a guide to how well another trader would make it work.
But ask anything about the strategy. I have posted it before. It will be no bother.
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Sounds a convenient excuse to hide the fact that THEY can’t make money in forex.
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Do you think 30%+ a year is good return?
I also think all the individuals can make money in the forex market.
What really needs are simple strategy, discipline and tight money management.
Everyone can make profit.
Also it doesn’t need any complicated math and science.
It’s a lot better than you’ll get in a bank
Making 30% a year, do you think it is difficult?
Your friend is correct about that. If these tools were so good, many would not fail.
Very easy doable. 10% a month is already doable.
Trading size? 2%? 5%? 10%?
0,5 - 1% of your capital
winning ratio and RR ratio?
How many trades a month?
80% + winratio.
Roughly around 10 trades a month