Hello ; i really apreciate if someone can answer my question…
So i know that forex traders make a lot of money i’m not saying millionaire but a good amount of money but i was reading that if you have a 1000$ account the value of a pip is 0.10$ so a 50 pips win daily is 5$ so 5×22days = 110$ so how do they make money? Do they increase leverage? Or do they start trading with 100000$ in their account?
My plan is to start with a $2,000 account. With proper position sizing and a good money management plan I should be able to make a little money. Once I get real experience and my trade plan proves itself to be profitable under real conditions, then I plan to deposit additional funds to get my account up to $100,000. After that, I plan on drawing my account down to $100,000 at the end of each month to put to other uses, or to be my full time income.
2 Likes
Sadly, you’re wrong - 90+ percent of forex traders actully LOSE money - many to the state of bancruptcy.
If you’re thing this is an easy way to make a fortune, buy a lottery ticket !
1 Like
Yes it is. Don’t think it’s a way of easy source to earning money and also don’t think this is impossible to make money from here , everything is possible that you want from this volatile trading place . just you have to maintain some inevitable part of trading with great patience.
2 Likes
You’ve been very seriously misinformed there, and about something very important indeed.
That’s just wrong.
The value of a pip, for each currency-pair, is the value of a pip: it has no connection to your account size.
I strongly recommend that wherever you read that, you permanently strike that source off your list of “available information about trading” because it’s ridiculous beyond words.
If you take a pair like EUR/USD, for example, its pip-value is $10 per full lot. There isn’t a way of changing that. Whatever your account size and whatever your leverage. It’s just an objective reality: that’s the pip-size of that pair, period.
Essential to understand the most basic principles before moving on. Learning forex trading is like building a big tower. You need a completely solid base, otherwise it’s all going to collapse at some point.
Here’s a better source for you: Learn Forex Trading at School of Pipsology - BabyPips.com
4 Likes
Yes, this is true that from forex a trader can make unlimited money and live a standard life only from this business. But for this you have to learn first the very basic of forex trading. Also big amount of capital is a plus point for anyone to make big profit. Else you need a very good money management which is possible only through a very good trader. Finally what do you have or not but proper knowledge is necessary for doing all this things.
1 Like
If you try to get rich quick your going to go broke. It is more important to focus on controlling you loses.
1 Like
You indicated some common basic initial parts of trading that we can’t avoid, good knowledge , money management , powerful strategy , controlling emotions , give up from revenge trading and much more all indicates a proper trading discipline which is the key to make certain a complete trading life.
1 Like
Not sure that anyone really answered your question, so I’ll try. Yes leverage is involved. And more importantly - money management. This means that you are setting goals that are at least 3x what you risk, and that you are taking the most statistically sound trade set-ups. In order to do that you must have knowledge of the market behavior. It’s a hard field to make money in, most people fail. The people who succeed are making money off of those who are less knowledgeable, less disciplined, less in control of their psychological weaknesses. Good luck though! The ones who succeed love it, put years in to it, come back after failing time and again…they must learn and adapt their strategies until finally they start winning more than losing.
2 Likes
Each trader has its own style of trading .They choose the time of their ease. They also use their unique strategy , tools and ways to make profit . I know one thing clearly that no body can make profit without having experience of trading. Trader has to know what way is better for profit taking.
1 Like
It’s not an easy deal to know what way is better for making profit. and only trading strategy cannot bring profit at all times , we need to be experienced and knowledgeable for that of course I agree but it’s a long time process , that’s why we fail to interest to keep motivation with great patience.
1 Like
I also think that more than leverage or lot size profit is based on your risk management . Just lot size or high leverage will not make profit. You have to learn all fields as market analysis . usage of different tools , risk taking decisions etc. Traders have to make money slowly no need to be hurry in trading. slow but sure performance is better than loosing.
1 Like
Interesting opinions here. As for me, getting into forex is like living life - you take the risk. You lose or you win.
1 Like
Forex traders when learn trading they know how to react market. slowly they are able to face market situations. one day they are bale to make profits. Profits are not easy as people think . They have to get knowledge all about this business . after making good plan applying their good strategy they will make sure profits.
The fundamental aspect of the market is extremely complex and it can take years to master them. First, having an excellent understanding of the fundamentals and how the various releases impact the market. Secondly, knowing how to execute the trades with precision and without hesitation.
I have everything to agree with you, beginners think Forex is a means to become rich quickly. they do not know that it takes time to become a successful trader, it takes a lot of work, time, and having a mind. I think forex should be considered a real job.
Sorry , not agree with you. Beginner knows the reality of this market. But they cannot control the emotions when trading live , as a result they trade with no analysis and strategies ultimately become a loser. so the traders who are newcomers first of all have to control emotions .
Not only beginners, there is no one successful or loser which has no emotions. But the different is experienced traders always able to control their emotions by proper trading discipline that cannot the beginner. That’s why they have to be disciplined and experienced by passing long times in here with great survive.
When I was a newbie lost my valuable $500 within very short time, after some losses I tried to recover that by revenge trading and ultimately became loser. it was my emotions now I understand. Still sometimes I attacked by this nature but never do the same mistake. Emotions must be can removes just keep a cool mind when trading and don’t think the immediate and past losses at all. That’s all.
1 Like
Hadden , you lost very little than me. By the way, I not agree with you cooling mind attitude for controlling emotions. Sorry. That’s not possible to keep relax mood when trading, because every faction of Forex market make traders hyper always. If you have a trading regulation with live experience then you could control the emotions you have in spite of having excitement. Otherwise not.