Is this feasible?

Hi guys, first time poster here and very new to the world of forex.

I was just wondering if some of you more seasoned guys could give an opinion on my long term plan with regard to forex trading?

Right, as things stand, I work full time and plan to study for around one hour a day, using the babypips school to learn the basics.

I thought that maybe after 3 months or so I could graduate to a demo account, whilst still working on the babypips school.
Hopefully I would aim to open a live account in about 12 months.

My circumstances will probably only allow me to start trading with about
$500.

Now with this in mind, how long do you guys think it would take to get to the stage, where your trading income could replace the day job???

I know it’s one of those “how longs a piece of string” questions, but do you
guys think it’s feasible to get to the stage were you can make a decent living (for me say $50000 to $60000 pa) from such humble beginnings.

I appreciate most newbie traders fall by the wayside, but with patience and perseverance, could an average guy achieve this goal in, lets say 5 years from starting out?

Your thoughts and opinions would be much appreciated

Steve

I started out thinking I could do it in record time, probably not unlike everyone else. :slight_smile:
I figured I was super smart, and with $10,000 started my first commodity account.
Well…its 12 years later (for trading, 8 for Forex), and only recently have I started to make a living.
(last 2.5 years)
It was a long hard road for sure.

Its definitely doable to start from such humble beginnings and make a living off trading.
BUT…
It will take a long time, if youre conservative and treat it like a business.
If you wanna do it fast…like most…you will most likely lose everything before you make a penny.

But thats not a bad thing either.
The best education in trading is a busted account.
A $3000 course cannot teach you half of what you learn from actually losing $3000 in the market.

Psychology is the NUMBER 1 determining factor in trading success.
The market has nothing to do with your success, its all in your mind.
I know you hear that everywhere but its THE MOST applicable thing in trading. Never forget it.

Thats why its always super easy for everyone to make money in Demo, but not with a real account.

A person without the right mindset can trade a positive expectancy system and still lose. He could have 90% winners and still lose.

Whereas a person that picks trades 50/50 with a coin toss, but has the trading mindset, can make money.

Just give it time.
It takes as long as it takes, but dont fall into the trap that makes you think you can do it in a year with $300. ITS NOT GONNA HAPPEN.
Youll have to trade with leverage of over 400:1 and thats suicide.

Sure people have taken $300 and turned it into $1,000,000 but they just got lucky and ended up on the small end of the bell curve.
Run any monte carlo simulation with 400:1 leverage and youll see 96% of accounts bust out. 3% make it past the million mark, then bust out. And 1% make billions. Its just a statistics game at that leverage.
Those that made a million off $300, in 6 months, are just a statistical anomaly/rarity, not trading superstars.
BUT…its funny…that those are the stories we hear, and get excited about.
When really, its like getting excited about the lottery, and buying tickets for the rest of your life, in hopes of winning.

But I think the #1 thing I learned during these last 12 years, is …
Backtests are worthless. Forward tests ONLY!!
Because your mind/emotions are more fundamental to success than your system.

I could’ve cut my time in half if I knew that when I started.
Or actually understood it. Because I did know it, I had read it.
But didnt really get it.

Dont jump from system to system, timeframe to timeframe.
Pick a timeframe/system suitable to your personality and stick with it for at least a year, in a FORWARD test.

Time will tell, whether youre a trader or not.

You must have a passion for trading, to succeed. No ifs ands or buts.

I have a few thoughts on at least the first part of your learning time frame. Babypips school is the best idea you could come up with, but it won’t take you as long as you think. Even repeating chapters that were initially confusing to you will not make the overall course much longer. It really is brilliantly written and can provide a comprehensive overview for everything you’d need to at least start a demo account in just a week or two (depending on how much time you have to study it).

Once you have a demo account, I’d recommend only sticking with it long enough to learn how your chosen platform works. In fact, the best thing about demos is seeing which platforms you like the best.

Once you know how to place orders, follow their progress and place indicators on your chart, you should start thinking about opening a micro account. The only reason I say that is nothing prepares you better for doing well in forex then getting used to the psychology of trading, as Siphon mentions. I opened a micro account after only a couple weeks of getting used to my chosen trading platform.

Even if your micro account only has $100 in it (the minimum to trade a single microlot with a 20-pip stop loss under 2% money management rules), you will get used to the feelings of euphoria and despair associated with any live trading. And you’ll gradually learn to control those feelings and trade dispassionately. No demo can ever teach you that and the $100 (or a bit more) is better spent than blowing it on a forex trading course (all the good info is always free somewhere – usually here!) or a dopey trading bot.

I can’t agree with this more. There is a huge difference in your trading with real money on the line. So unless you can really psyche yourself out into actually believing your demo is real (which I wasn’t able to), i would suggest starting with a micro account sooner rather than later. Real world experience is the best experience.

Keep in mind that $500 to $50000 in five years is an extremely lofty goal. Professional traders that could do that would, and are making millions a year. A perfect example is Andrew Hall. If you don’t know of him, google “Andrew Hall Citibank”.

I say this as both a warning and a beacon. It can be done, though the work, planning, testing and perseverance will be tremendous!

Start with a demo first then put your money on the line. You may be surprised what you learn about yourself.

Guys,

Many thanks for the comprehensive replies, I will definitely take on board what you all suggest.

The time frames I mention, were pretty much picked out of the sky, though I would be over joyed if I could achieve my goal in that time frame.

Slow meticulous progress, is what I’m really after (though making a million would be nice lol) so that I can gradually reduce my day job hours, then maybe one day, I can trade full time.

Now if that takes 2, 5 or 10 years, I can live with that, as long as I can see myself making forward steps towards that end goal.

Many thanks again

Steve

If you could just save up $10,000 and practice with smaller amounts until you’ve saved that amount, you will shave years off your goal. Starting with $500 and expecting it to compound by itself is whimsical thinking, you’ll spend 2-3 years just getting over $1000, assuming you are quite proficient at learning this FX stuff.

Also, being modest about your goals keeps your head right for trading. Shooting for the stars leads to terrible trading practices, and that’s a surefire way to never reach your goals.

Short answer
is it feasible. Yes
is it likely. Statistically NO
only You can make it happen, no one else

Anybody can do it if they have the right attitude. Willingness to learn, patience, perseverance, does not easily break from losses and time to consume. With a one hour per day allocation for forex learnig, it will take you years to master it, but with the right basics like reading the school of pipsology, you can get it in less than a year. Practice first with a demo account and observe the different factors that affects the market. Good luck.