Hey guys new to forex, got a few questions for you guys :)

Hey guys, I’m new here! I’ve been getting a bit more free time lately so I bought a book “currency trading for dummies” it wasn’t that helpfull I found but it got me interested so I made an trial account at Forex.com.

So I’ve been mucking around with “play” money on the forex website playing around with the dynamics of EUR/USD I’ve been just figuring out the whole buy when weak sell when strong and made a lot of “money”

But I know it’s not going to be like the real thing, so luckily I found the “school” on this website now I am learning there’s more to it than just guesswork

I want to get good at trading but I have a few questions…

  1. How much ~can you make?
  • I mean I don’t have much in the bank now, I am just starting a new job and I want to save. Do you guys think it’s not too much of a fantasy to think that I could say, make a bit out of forex? considering I educated myself sufficiently before going into real life trading…
  1. Do you guys mostly have your day jobs? or do you do forex for a living ( I think I would like to do it part time otherwise I feel I might get a bit obsessed)

EDIT just remembered to put in a final question:

  1. IS Forex.com a good site? I’ve been using it but I’ve seen some stuff saying otherwise, what’s you guys opinions on the demo/trading account tools on the site?

and if it’s no good what’s a good alternative? What it your favorite trading website/platform or what’s the best one for beginners? (unfortunately I have Mac so not many of the platyforms work)

anyway I’m really glad I followed up on my interest and got involved in this - I’ll see how far I can go

cheers guys have a great day

Jon

“1. How much can you make?”

Depends how long you’ve been practising. Ideally, aim to breakeven when you first go live and ideally do not aim too high. You could very well start off with $10, although not recommended. :stuck_out_tongue:

“2. Do you guys mostly have your day jobs? Or do you do forex for a living”
Well, I’m currently in my last year of high school right now, I trade London Open and Close, which is only 4 hours of the day. It’s nice because I can still manage my other priorities.

“3. Is Forex.com a good site?”
Never had much experience with them, but I don’t ever plan on trying them out. I have heard some stuff about them. I currently am with IBFX, it offers decent spreads. My mini account allows me to trade penny pips and only 50:1 leverage which is safe. =)

I’d say just keep at it. When I first started getting involved in forex, I creeped around this forum and website from about June 2010, and finally decided to make a forum account in September. It’s nice to be able to ask questions and get advice from more experienced traders. I didn’t really demo much to be honest… $50 000 to start is unrealistic and would just create bad habits, in my opinion. I’ve started live about a month ago with $200USD. Up at around $380USD now.

At first I was very interested in indicators, because I felt they were almost magic…Haha. But soon I realized it just clustered my charts and now I trade pretty much naked and make trades purely based off of price action.

I would say get to a know most methods of technical analysis, but not very in depth. Then, choose a few that suits your trading style and personality and try to develop something for yourself. I actually just printed out about 1500 pages of historical charts and trying to clean up my London Close trading. It just takes work. =)

Hope that helps!

Regards,
Clark.

Cool, thanks for the reply ClarkFX, Yeah I am still figuring out the timezone stuff (kindergarten in pipschool :p) never had to think of timezones before being from Australia they are fairly important I am coming to realise…

I will check out IBFX

currently I think it’s just a matter of getting as much experience as I can like you said…

I agree with point your point about demo accounts and starting with “$50,000” It does seem fairly ridiculous I try not to get to excited about it since I doubt trading with real money is going to be anything like it, 1. I don’t have that much 2. I know I’m going to freak out (at this stage) if I had real money in the game, I want to put in real money only when i am 100% confident I have done my work, learning etc (I might not even put a cent in if it turns out I’m not cut out for this).

but demo stuff is good for getting a feel of where all the buttons are/ how buying selling kinda works.
It seems like they could be starting people with “$50000” to give people a false sense “man this is easy! i ~could do this with REAL money!” Does Forex.com make profit out of user’s loss? It’s just I had some guy pestering me on the phone about changing my demo to a “live” account I just said I wasn’t ready…

yeah I hope so man, the “school” is very good, they definetely use the Keep It Simple approach! Do you use any other forums?

Yeah, I absolutely hate dealing with time zones. I come from Mountain Time so the conversions are rediculous. Hence, I wish I lived in Eastern Time.

Demo with IBFX I’d say, or maybe even try Oanda since they offer incredibly low spreads. =) The $50 000 demo will create so many bad habits it will hurt you in the long run. I’d say learn, find a trading plan you can stick to, and money management strategy and paper trade it. Then pop in $200 in there, that’ll give you practise in live trading and dealing with the emotions involved. Even if you lose the $200, think of it as tuition fee.

I’m not too sure about Forex.com but you should probably find a non-dealing desk broker if it is one of your concerns. =) Haha, I opened a few demos with various brokers, they’d call me all day while I’m in class, it was rediculous that’s why I stayed away from demos, even though that is a bad excuse.

Regards,
Clark.

cheers for the advice mate, appreaciate it alot. Yeah I see what you mean by bad habits on demos, I definetely need to learn more and develop an actual stragtegy other than like on the demo account I just find myself Buying and predicting/hoping it goes up, selling and hoping down etc… lol it’s a start, not a very good one but at least it’s a start :stuck_out_tongue:

I’d like to offer a reality-check on your question #1, and then I’ll leave your other questions for others to answer.

[B]1. How much can you make? [/B]

How much you can make in the forex market depends on whether you know how to trade, and [B]how well[/B] you are able to trade.

[ul]
[li][B]If your trading and money management skills are lousy,[/B] you could lose your entire account in a flash — say, in one week, or less. In that case you would be earning NEGATIVE 100% per week. And, after week #1, there wouldn’t be any more weeks, unless you dump more of your hard-earned money into your forex account.
[/li]

[li][B]If you have mastered the basics of trading,[/B] you might be able to break even on a consistent basis. In that case, you would be earning 0% per week, 0% per month and 0% per year. That’s probably not your goal, and it shouldn’t be. But, it’s a hell of a lot better than going broke.
[/li]

[li][B]If you are able to become a good trader,[/B] practicing good money management skills, using good discipline, you might be able to earn 1% per week on a consistent basis, week after week, year after year. If that sounds paltry to you, do the math. 1% per week compounded over 50 weeks per year (give yourself at least 2 weeks off each year!) produces an annual growth rate of more than 64% per year. Try earning 64% per year — not in one lucky year, but year after year — in the stock market, or the real estate market.
[/li]

[li][B]If you become a very good trader,[/B] you might earn 2% to 3% per week, which is 169% to 338% per year, compounded over 50 weeks. Tell me ANY other investment which can deliver those returns, year after year.
[/li]

[li][B]If you become an elite trader,[/B] you might earn 5% per week, which compounds to over 1,000% per year. And if you become one of the best of the elite, there is no upper limit to your earnings.
[/li][/ul]

So, where do you fit in all of that? You [B]don’t[/B] know, because you [B]can’t[/B] know yet. You have a ton of learning and practicing ahead of you, before you can even evaluate your prospects. You’re like a young athlete, asking “If I play this sport professionally, how much can I earn?” The only answer to that is another question, “How good are you?”

I’m sure you’d like for everyone here to post certified copies of their latest tax returns, so you could see how much money everyone makes (or loses) from trading forex. Obviously, that will never happen.

A VERY FEW traders on this forum do reveal their earnings. But, most of us do not, and there are good reasons for NOT posting that kind of information on a public website, not the least of which is that it’s nobody’s damn business. (But, that doesn’t stop the occasional snoop from asking, straight out, “How much do you make on an annual basis?”)

The forex market is stingy, and it can be brutal. And it will break your heart by breaking your account, if you give it half a chance. In order to survive in this business, you’ll have to train yourself in facts, and techniques, and disciplines that you [B]haven’t even heard of yet.[/B]

Do you really want to take on all that hard work, all that struggle, all the disappointments and setbacks — just to make 50% per year, or 100% per year, or 1,000% per year on your money?

Hey Clint, thanks for that it made me think! I guess the reason for me asking that “how much can you get” it sounds a bit ignorant or even pretentious as you say but I wasn’t actually meaning to come off that way.

I try to see myself as a bit of a realist and I come into anything with no false hopes, and to be honest I don’t have high expectations about forex. Actually I have heard alot of negative things about trading, eg. it’s a zero sum game, you can’t win against the system etc. even “it’s all just a scam”. So I am skeptical I guess you could say.

So when I ask “how much can you get” it’s more along the lines of, to use your analogy, I am asking the athletes who have been in the game for long enough: Is it possible to be financially successful at this sport? After putting in the hard yards, do you get your reward for effort? etc…

hope you get my meaning

*Oh and if I were to trade even in a years time and earn 0% per week trading I would be happy, I would take value in education/experience

Hey, jonny

My comment about “snoops” asking how much other people make was NOT aimed at you. I’m sorry if it sounded that way. There was nothing objectionable about your question, “How much can you make?” That’s a perfectly proper question to ask, and I’m glad that you are examining this forex thing from that angle, as well as others. Again, I took no offense at your question, and I apologize if my answer offended you.


Regarding “negative things” that you have heard about forex, about its being a zero-sum game, and about its being a “scam” —

Let’s take those concerns in the opposite order.

[B]First, the “scam” allegation.[/B] Forex absolutely is not a scam. It is a market-place populated (primarily) by two types of players: commercial interests and speculators.

An example of a commercial interest is Toyota converting euro (from the sale of Japanese cars in Europe) into yen to be deposited in bank accounts back in Japan.

An example of a speculator is you, if you decide to trade forex. You have no commercial interest in converting currencies; if you decide to engage in that activity, it will be solely for the purpose of earning a profit on a favorable change in a particular exchange rate.

The purpose of the forex market is to facilitate commercial currency transactions, not to provide a casino for speculators. However, speculators are a vital part of the forex market — just as they are vital to the commodity futures markets — because they provide liquidity to the market. The liquidity provided by speculative activity benefits the commercial interests by ensuring that there are always buyers in the market when the commercial interests want to sell, and sellers in the market when the commercial interests want to buy.

All of that describes an important element of the international financial markets; it’s NOT a description of a scam.

[B]Second, the idea of a zero-sum game[/B]. The forex market absolutely is a zero-sum game, and there’s nothing evil about that.

When commercial interests transact a currency exchange, each party to the exchange pays and receives exactly the same value. If the current price of the EUR/JPY (that is, the exchange rate between the euro and the Japanese yen) is 115.00, then for each 1 million euro that Toyota pays to a counterparty in Europe, they receive 115 million yen to send back to Japan. Their counterparty, in turn, pays Toyota 115 million yen, and receives 1 million euro in exchange. Each party pays, and receives, exactly the same value.

Now, suppose that after Toyota does this currency exchange, the price of the EUR/JPY changes, due to normal market forces, to 115.50. Suddenly, the 1 million euro that the counterparty collected from Toyota, which was worth 115 million yen a few minutes ago, is now worth half a million yen MORE than before. And the 115 million yen that Toyota collected from the counterparty, which was worth 1 million euro just a few minutes ago, is now worth 4,329 euro LESS than before. One party has realized a profit on this change in the EUR/JPY rate, and the other party has taken a loss on this rate change; and one party’s profit EQUALS the other party’s loss.

Nobody thinks of this situation as being sinister in any way. However, when the SAME thing occurs between speculators, some people start referring to this equality of profits and losses as a “zero-sum game”, implying that something illegal, unethical, or dishonest is going on. This is nonsense.

[B]Which brings us to “negative things” said about the forex market.[/B] If those negative things involve the idea that the whole forex market is a scam, or that there is something unsavory about a “zero-sum game” — well, I think we have blown a hole in those arguments.

That being said, there is lots of room for improvement in this business. Here and there, scattered throughout this worldwide market, there are abuses, and some cases of outright fraud. Most of the fraudulent activity which occurs can rightly be called scams. But, it’s WAY too much of a stretch to call the whole market a scam, just because a few crooked operators have set up shop as forex brokers, or trading advisors, or “education” providers.

Here’s another issue. There is a lot of manipulation of prices at the interbank level of this market (that’s the top of the forex food-chain, if you will). And people who are looking for something to criticize say, “See, see, the forex market is rigged”. Okay, maybe to that extent, it is. But, there is also some fraud at the ballot-box in almost every election. Yet, those people who are so quick to criticize the forex market don’t seem to run around screaming, “See, see, politics is rigged”. Curious, eh?

I think that the vast majority of complaints regarding the forex market in general, and most of the complaints against specific brokers in particular, come from disgruntled, failed traders, who want to blame anything or anyone for their failures.

One of the brokers on this forum, who was called a “scam” by some ignorant poster, googled a handful of broker names and found that EVERY single broker out there has been called a “scam” by literally thousands of malcontents.

I think there’s a simple reason for that: Eighty percent, or more, of all those who try forex trading FAIL at forex trading. And a whole bunch of those failed traders cry, and throw tantrums, and blame the crooked market or their crooked broker, like two-year-olds who can’t have their way.

I tune that stuff out. I don’t read it, or listen to it, or think about it.

Okay, I’m done. Sorry about the length of this post. I didn’t mean to write a dissertation.

Good luck.

I agree with Clint’s excellent post, so won’t overlap with it, but to answer your original questions for myself:

  1. I am full time at this, I trade Forex and Forex only;

  2. If you find that you have any aptitude for this, and you are prepared to put the work in, then 10% a month is definitely realistic. I aim for more than that each month. Your income would obviously depend on the size of your account;

  3. I don’t know the website you mentioned.

As you say, one does hear a lot of criticism of Forex trading, but then in my experience people who have had a bad experience of something, or have a chip on their shoulder, tend to shout about it an awful lot louder than contented people who have had a good experience. So don’t let the naysayers dissuade you - give it a go and find out for yourself. This site is a great place to ask questions aimed at all levels of experience. If you make it work you won’t look back. One advantage of Forex trading is that the startup costs are low - just a computer, an internet connection and some seed capital - compared with other businesses that offer anything like the same rewards. So assuming you have the time to work at it, it is worth having a go.

ST

Clint im in love with you, u are my favourite person in this forum :)))

Thanks, Simon. I agree with your excellent post, as well.

There are a dozen, or so, posters on this Forum who are worth reading. You’re one of them.

Thanks (I think).

Awwh, thank you for the unsolicited compliment! I am a big fan of your back catalogue of film work, too. For A Few Dollars More stands out, for me.

Lol at your slightly uncomfortable thanks to Kuzia - thank you for brightening a rather rainy morning!

Hi, all
How much can you earn on Forex?