Hello guys(sorry for bad english) Im a newbie in forex market, I just finished technical analysis on School of Pipsology . then I opened a demo account on a broker with really small capital (50$) worked for like 2 weeks and I made like 2-5$ a day trading 0.01 lot on gold and currencies.Im really confused.I read all over the internet that like 90% of traders lose money and you can make only 5% of your capital every month . I mean my results and these informations are not the same. I feel something is wrong.Guys please be honest traders do really make good fortune or just lose money in long-term . and my other question . what is these market makers. I thought forex market is so big that no one can change the flow of it with big moneys. after all big economies are involved.there should be a difference between forex and stock markets.
Maybe you are the next Paul Tudor Jones
It took me years to be profitable but that doesn’t mean it’s the same for everyone
You could be a natural
The trading outcome from two weeks trading small lots on a demo account doesn’t mean a thing. Too short a time and you could have got lucky. Good for you. Everyone needs luck.
Seriously, you have to trade for years to learn how to be consistent - the best tip I can give you when you go live, is the most important doctrine is to safeguard your capital with your life by limiting risk. You will lose trades, that’s inevitable and a good learning process, but NEVER lose big, that’s a death warrant about to happen.
Without capital, you cannot trade.
Give yourself some time. I myself have been trading on demo accounts from 3-4 months sill not confident in moving to a live account.
I’ve had a month where I made a 16% return on capital. These is no one size fits all. You are making your own truth as you trade. After your account is sizable then it becomes really hard to get in and out of trades without having price work against you. If you ever get to the point that you consume all of the liquidity then something has to change, this is the problem that institutional traders go through. 2 weeks is not long enough to really understand how your strategy behaves. I recommend 6 months, there you get to see how it behaves when world events happen.
Tbwpex if you knew everybody looses why did you even start?? You can be profitable after 3 months… take care
It is fact that the vast majority of new traders do lose their money. But there are many reasons for this and most of these reasons are nothing to do with the market itself, they are about the traders. This does not mean that it is impossible to succeed in trading financial instruments, it just means the traders need to learn a lot more than just entering positions.
There is no fixed limit on earnings. This measure is related to the issue of risk in trading. The potential for losing is as great as it is for gaining (except maybe with bought options) therefore if you are aiming to earn 100% gains then you are likely to be risking 100% losses, the result of which is obvious!
So the figure of 5% is not a cap on your trading, it is the reasonable result from taking reasonable risks with respect to one’s available trading capital. Excessive risk-taking by abusing leverage and overtrading often lead to excessive losses and blown accounts.
The aim of any trader should be long-term survival and consistent earnings, not quick fortunes. This aim requires more attention to preserving capital than just hoping for big hits. Therefore we arrive at a figure of around 5% being a reasonable return on reasonable risk. But all traders are different and strategies are different. This 5% is just a benchmark, not a straitjacket on your trading.
Market making is not about moving prices. The forex market is successful because it has sufficient liquidity to absorb all kinds of orders. Liquidity is of two kinds. Firstly, it provides depth to the market by providing the amount of money needed to meet all the orders. Secondly, there always has to be an available bid and offer price in order for anyone to trade anything.
The market makers are the financial institutions that provide this constant bid/offer availability regardless of whether customers wish to buy or sell to them. They also offer the raw bid/offer service to brokers who, in turn, can then give bid/offer prices to their clients, i.e. us. This bid/offer service from the market makers is therefore what creates liquidity and not price movement. Although, of course, these price/offers then move in response to the changing buy/sell pressures that they are experiencing.
Honestly two weeks is no time. This market is very volatile. Maybe you just got lucky.
It’s common for people to trade forex on the demo account first and then move to live trading. Demo trading is a good way of clearing your doubts if you think that you are not ready to risk your money.
I think you should open a live account that use exact same strategy you are using. Lets see what you say after 2 weeks. Yes, there is the broker factor, but choose wisely.