Its been 6 months since I started forex trading. Before this, I have traded in stocks and CFD. My trading experience in forex has been mixed so far.
My initial forex trades mostly ended in profits. Using my limited knowledge of technical analysis and constantly updating myself on daily news, I managed a decent return of USD1000 with a USD2500 as capital.
Gradually I became more confident and started to double up on my trades, abandoning my initial strategy and plan, only to watch with horror as my trades went against me. Realising by then that I only traded out of anger (to recoup back my losses), I began realising my folly when my initial capital and profit were depleted to USD500!
I experienced the above in the space of the first 3 months.
Nowadays I would set myself a weekly profit target with daily stop loss. This is to prevent myself from overtrading and overextending my margin. The past month has been good with the exception of a few bad trades this week. Been telling myself to just keep focusing on the fundamentals ie GDP, indicators, slumping world economy etc but seems the market movers main focus now is the ānoisesā coming from DT and white house at the moment.
This question can give rise to an endless debate. Yes, it is possible to make money in forex, provided you take care of certain facts and risks pertaining to your trade.
Risk and profit in a forex market are directly related to each other. If the risk associated with forex is high, then so is the return. Therefore, be wise when you take decisions regarding your investments. Always be clear about the agenda of how the market really works. Also, never start trading in forex without having a trading strategy. There is no right or wrong though, but strategizing according to the present market situation is really important .
The basic game is simple ā buy low and sell high. To avoid major losses, make sure you use a stop loss. It is also very important to stay up-to-date with the current market news to take actions accordingly.
Contrary to what youāve read on many websites across the web, Forex trading is not going to take your $10,000 account and turn it into $1 million. The amount we can earn is determined more by the amount of money we are risking rather than how good our strategy is BluestacksKodiLucky Patcher
It really depends what your definition of āmaking money in the forex marketā really is.
Trading for a living? Yes, but you need a big capital and preferably a stable income source.
Investing? Yes, find reputable fund managers to trade for you.
That is the point of trading. You make profit from trading in forex market. But a gentle reminder is that it does not automatically generate you all profit. You are bound to deal with loss and profit. You will learn as you grow naturally and you will gain more and more profit along with some losses on the way.
People are showing interest in this premise even after knowing that there is a big chance of Loss. The main reason is to trade the market only because of the trading volume. Forex trading is the profitable marketplace for traders.
You can perform a two-way trade here, and itās one of the best opportunities for FX trading. Moreover, you can get profit by selling currency as well as by buying.
This is why everyone is interested in the Forex market. Now itās your turn to think again about it and make the best decision to make money.
If you know how to manage money and risk and, you have a solid fundamental knowledge of the market or markets that you are trading and, there is enough liquidity in those markets, you are at least giving yourself a chance.
Remember itās to sides to a trade , try trading opposite of what your indicators are telling you, , there maybe a considerable amount of lag working against youā¦
Maybe the stats do speak for themselves, but weāve all been fooled by stats at least once in our lives. Its a well known statistic that 74.76% of all statistics are made up online by a bloke with a beard on the spur of the moment.
Thanks for the reply. Iām looking for an outline of how a particular pair is selected for a trade in a particular direction at a particular point in time.
Just like any other business, trading involves a lot of risk. The trades placed can go into the wrong direction as well, which requires lot of practice and patience. If you have a clear head now, you can give it another shot, but be optimistic, when you trade and try to gather as much knowledge as possible to make the best of available opportunity.
I am not consistent but I have made more money than lost. So Iām on the good side of trading at the moment Just stick to your trading plan and youāll be on the right path.
You are very lucky bro. Iām in the middle. Iām still losing, but hope that soon my strategy will work. To be honest I say these words for more than a month and nothing changes. I think that I just need some help. I have a friend who told me about the best mt4 ea and that it can help me to monitor my forex and that now I donāt have to worry about the perfect time when to start trading. It analyses the market and tells us when is the best time to start to make money hehe. This is incredible! I need to try it for sure. If you want Iāll tell you my results.
I started trading 8 years ago and basically broke even or made very little for 5 years!
3 years ago I had 1k, risking 10 per trade. Now 1k is my risk per trade. Anything is possible my friend but you need to understand the majority of people fail, Iām not going to say anyone can do this, infact I encourage people to really question WHY they want to do this because personally for me the first 5 years were the hardest thing I have ever done and I do hard things often. But I did it because I love it. The people I see fail are the ones who donāt have the passion to push through the hard times.
Thatās an interesting post, @Trade.Ninja. And there have been many similar stories of difficulties and failings in the early years.
I would like to ask you (because it could be of great use to others here who are now in the same position as you were back then) how did you turn your situation around? Did you just improve your discipline and money control, or did you change your strategy e.g. timeframe, products, PA, indicators, etc.
It is clear that if one keeps repeating the same approach then one should expect the same overall result, what did you change that turned your trading around?
I spent the first 5 years looking for the holy grail setup, and I accumilated many good ones but I always wanted better, instead of 60% win rate I wanted 70 or 80 etc. When I shifted my attention to Psychology and Risk management everything changed and to be honest it is so much more rewarding than trying to find the perfect setup.
Excellent! I really hope many people take note of what you say and think seriously about what they are themselves doing.
I am sure many traders think that optimising their trading means trying to squeeze every last drop out of every move.
Whereas it is really more about optimising oneās own performance in terms of evaluating trade set-ups, analysing risk exposure, managing and protecting oneās equity, and working systematically and professionally with patience and discipline.
Just stick to your trading plan and youāll be on the right path.