I’ve been thinking about these two questions for a while but please excuse me if there is another thread like this already on the forum.
I have wondered seeing some of the comments on here where people state they are completely new to forex firstly how they come to know of forex and secondly why so many want to trade full time?. Does the marketing of some of the gambling type brokers draw them in?. Is it that it’s often marketed as a short cut to wealth?. Is it all about the money? Or is it about the perceived/potential/expected (even if untrue) lifestyle that it could provide?.
I’d love to hear other peoples thoughts on this, it’s so rare for me personally to hear other traders and potential traders experiences.
I’ll go first…
I was turned on to forex around 4 years ago when dealing with a customer of my then business. He worked as an fx trader for nomura in London and I came to know about Nomura after sending a sample of what he was buying to his office. I got the job for him and we got to talking and I had given him quite a sharp deal with a view to getting some recommendations in his locality so he was very open with me. He was maybe 4-5 years younger than me, clearly more successful, and had a really nice apartment on the river which I guess would have been around the £3-4mil price range. With hindsight I wish I had known the right questions to ask but he did give me an insight into the positives and negatives of the industry but I found that on the 4 hour journey home I couldn’t stop thinking about what he was telling me. From the next day I think I have spent every day either educating myself or trading or both.
Why am I so attracted to it full time?. I come from a background of only wanting to work for myself. I’ve had businesses with sky high overheads and everyday you start from the bottom of a hole to cover these costs before making any money. The fact of covering employees wages before your own has worn very thin with me as you very rarely get any appreciation for this sacrifice. The other big factor in why for me is that many times I have been taken for money from customers, the biggest of these from a customer I had dealt with for 12 years and considered a friend who took me for the thick end of £72k and simply folded his ltd company and started again elsewhere. Add to this thousands each month in electricity bills, business rates, paye bills, wages, staff not turning in, maternity pay, sick pay, insurance, maintenance, machinery, stock wastage, delivery costs etc etc etc and forex suddenly becomes the purest form of either making or losing money and that’s why for me it is all I want to do moving forward.
Well, a longer post than I expected so hope I didn’t bore too many of you!.
I really hope to hear others thoughts and experiences on this, sorry if it’s in the wrong place forum wise, I look forward to reading the replies,
Nice post.
I think the low bar to entry is a big reason many enter fx, often after hearing how much moneycan be made.
Unfortunately, many do not seem willing to put the effort in to learn how to trade, or even how to read charts looking at some of the questions.
For me, Forex is a kind of hobby which has unlimited opportunity to develop, advance, improve your skills, implement your own ideas with a relatively lower costs than ordinary offline business. There is no need to solve some red tape problems, deal with hassles that have no direct relation to the business itself.
Despite of odds against you trading helps me to relieve stress, forget about everyday routine, etc…
Thanks god I discovered such an outstanding opportunity to earn and live when I want and where I want
If you are looking for financial independence it can be achieved from many different and diverse activities, FX being one of them, only if you have a big capital to start with (how big? depends where you live, and what your monthly expenses are).
With a sufficient capital/portfolio, i would suggest you put most of your investments in international equities (stocks and fixed income securities) with a 1:1 leverage, for a long term horizon (min.5 years value investing). A small part in FX (1-5%) with a higher leverage in line with your risk tolerance.
In time as you get older, it is always wise to increase the allocation for fixed income securities and decrease the allocation of equities and FX. It is always good to have an extra income from any low cost activity, so your monthly expenses are covered regardless of your investment/trading performance. This way there will be no mental pressure on your trading.
[QUOTE=“eddieb;712773”]Nice post. I think the low bar to entry is a big reason many enter fx, often after hearing how much moneycan be made. Unfortunately, many do not seem willing to put the effort in to learn how to trade, or even how to read charts looking at some of the questions.[/QUOTE]
Thanks eddieb,
All good posts. And oceanmen you certainly have a good idea there.
Well, it seems like you were dealing with some business which requires lot effort in so many different fields. If you don’t feel like dealing with all those obligations you have mentioned than trading in general is a right place for you. “But” In trading forex you are going to deal with your self and your emotions. If you are whiling to spend few years hard work, learning and doing everything else what is necessary about trading than may be you can became a successful trader and with enough trading capital you can make for living and much more.
I just want to remind you that it is estimated that around 5% of people will succeed in trading.
For me FX is about being independent. I work for no one, call my own hours and the [I]potential[/I] to give myself a pay raise as my skill increases is something that appeals to me. There is no one to blame for the amount I am getting or not getting, it all reflect upon me and the hard work I put in.
Also, like someone else said, if you are willing to put in the effort, then the rewards will reflect it. Like anything worth doing, it takes time and practice, but once you master it, its yours to keep.
To me, trading FX is a noble cause, why? Because it is more than about money. I have to learn about who I am at my core and deal with all my conditioning around money, whatever niggling concepts I have about wealth and prosperity, if I don’t handle it clearly, it will come out in my trading somehow and bite me in the ass. It really is a self-improvement course.
All this to say is, all the best to you and hope you succeed in your endeavours.
My how is a while ago actually, and while not specifically Forex at first, trading interested me because of my why answer.
I knew from the start that it was not just another get rich quick deal, but still like to dream, and I knew it would be hard work getting into it, and once there, succeeding at it.
My why is mostly to be able to make money for myself, and hopefully ultimately be able to work for myself, which means making enough to live on, and if I have one down the road, my family, instead of just making someone else money off of my efforts in a regular job.
[QUOTE=“Rambo35;712860”]Well, it seems like you were dealing with some business which requires lot effort in so many different fields. If you don’t feel like dealing with all those obligations you have mentioned than trading in general is a right place for you. “But” In trading forex you are going to deal with your self and your emotions. If you are whiling to spend few years hard work, learning and doing everything else what is necessary about trading than may be you can became a successful trader and with enough trading capital you can make for living and much more. I just want to remind you that it is estimated that around 5% of people will succeed in trading.[/QUOTE]
Thanks Rambo, I’m aware of the stats. I’ve been trading a little while and I’m quite happy with the way it’s all headed. Psychologically etc I feel good. Just made me think of another question though, having made a little profit from trading if I decided to become a philanthropist and stop trading tomorrow and help others would I be in the 5% or the 95%?.
I was really hoping to hear other peoples experience of how they come to the decision that they want to trade full time or even at all, there are so many that post in the introduce yourself page that state know nothing but want to do it full time. It’s just a curiosity thing wanting to know how others come to firstly find out about it if they have little knowledge.
I like it. It’s good to hear people talk about what they hope to achieve.
Jd4 my mother used to buy shares when I was young and put them away. She was a housewife and used to say that was her way of contributing to the family financially. She used to check the prices all the time in the paper and say “not yet”. I can still remember the day she cashed in her whitbread shares, she made a killing. Imagine checking the newspaper for your prices. Still makes me laugh.
Hey profit baby, That’s how I feel about it, physical business with staff etc has become an uphill struggle overheads wise. A big one for me too is not wanting to deal with problem customers, people not paying or expecting a rolls Royce for the price of a ford. If we want to unload our stock in forex there’s always someone there to take it and there’s little messing around. I love it for that element alone. Maybe I’ve become cynical but the fewer people you deal with the better!. Ha.
Some people still do that (I have heard it called the “hold and pray method”), and that is not a bad way to trade, but it is definitely not a way to make a living, if that is your ultimate goal.
As far as your mother contributing “financially”, imo anyway, that was only one way she did it. While I do not know your specific situation, I have a feeling it was as follows. Raising the kid(s) instead of having to pay a baby sitter, making food so your family didn’t have to eat out all the time, and keeping the house clean instead of having to pay someone else to do it.
[QUOTE=“JD4;712892”] Some people still do that (I have heard it called the “hold and pray method”), and that is not a bad way to trade, but it is definitely not a way to make a living, if that is your ultimate goal. As far as your mother contributing “financially”, imo anyway, that was only one way she did it. While I do not know your specific situation, I have a feeling it was as follows. Raising the kid(s) instead of having to pay a baby sitter, making food so your family didn’t have to eat out all the time, and keeping the house clean instead of having to pay someone else to do it.[/QUOTE]
She was a legend and like you say she did everything but that was always our rainy day money!. As far as wanting to provide for your family it’s the best reason to do this or anything else. Good luck and thanks for the reply.
I was always interested in money, and more in making money. I went to a high school specialised in economics, then at university I went to do a degree in finance, I’m just about to finish next semester. During university the stock market and the foreign exchange came up, order types, futures, etc. but we never went into details.
Then I soon realised, that I don’t want to work as an employee. I am very hard-working and I love to take action, but working for somebody else and making his dreams come true is just not to my liking. So I started searching for ways how can I be financially independent. Mostly I was interested in trading, but I tried online poker and blackjack (with card counting and stuff), but I realised that trading is my way, so I really started to study and make it possible.
Beside financial freedom and not working for others, the other reasons I like to do this are, that there is the potential to make more money, then in every other job, also you can increase your monthly income at a much higher rate, and decide when you want to work. Moreover I think being financially independent nowadays, especially at younger age is quite special.
