Hi there !
Naadhan can disagree all he wants but Naadhan is wrong or prove me wrong
I understand your feelings but the truth is traders don't make the huge returns on their money in FOREX like they do in penny stocks.
'Making a living' isn't my goal.
My goal is to become wealthy so I no longer have to 'make a living'.
I may actually trade both FOREX and penny stocks but honestly the gains in penny stocks are much larger but they can take longer. That's one thing FOREX can do better, is it's fast. You can make money very quickly in FOREX if you're willing to sit there at the computer and do it. My penny stock speed isn't very good yet but I'm still new. I'm hoping to get better at picking winners so I can do it regularly.
That is great that he's making a living trading FOREX and that he's happy but is he wealthy?
How much money does he make and how much money did he start with?
How long did it take him?
How long will it take him to get wealthy trading FOREX?
Let's define wealth by having net $1,000,000.00 (One million dollars USD).
To be honest one million USD isn't wealthy but if you've made net $1,000,000.00 by trading then you're doing great
Some questions for Naadhan's friend :
Have Naadhan ask his friend to share his trading style?
How much money does he regularly make in a year ?
How much money does he make on his typical trade and how much money is being used?
How many hours a day he needs to work studying charts, sentiment, fundamentals, placing traders, etc?
A lot of traders spend less than 30 minutes a day which is great.
Saying he makes a surplus out of FOREX doesn't mean much.
That just means he makes more than his bills cost. Meaning, if he has a low cost of living say, $1,000 USD a month then he could be making $1,001 USD a month.
Given that he's only surplus $1 a month doesn't mean anything worthwhile.
I know FOREX traders who make a living trading full time FOREX but they don't make very much money.
By the end of the year they net about $50k to $70k.
Ok, who would you rather be?
The guy slamming his head into the wall over and over making $100.00 a hit and at the end of the year make 200% on your money [FOREX]
The guy sitting back relaxing taking his time and making 800% at the end of the year?
Or over the next 3 years 2,000% on your money?
In FOREX it's not likely to double your money or more in a single trade.
In penny stocks this is not unusual.
Sometimes in penny stocks you can make more than 5 times your money in a single trade without having to really work for it. Sure you need to take time to find the company and then place the trade, but after that it's a sitting game.
In FOREX when you are wrong, you've lost money and you'd better stop the bleeding get out and take the loss. Only fools allow their accounts to get drained because they hope the market will turn around.
In penny stocks when you are wrong you can sit and hold and let time work for you. Does it really matter if it takes years to make hundreds or thousands of percent gains on your money invested when you are wrong? How about just breaking even instead of taking losses? You aren't working for it. It just happens over time.
In FOREX you'd have to trade a hell of a lot to make 1000% gains. The potential for doing this in one trade and letting time pass is not realistic.
In FOREX most of your money is not used. It's just sitting there. Typically I've never heard of any good trader trading more than 30% of his account in FOREX. That means 70% or more of your account is dead money. New traders should not even use 5% of their account.
In Penny stocks you can use every cent thereby increasing your potential for gains by diversifying or increasing your gains by using every cent you have to trade.
Take a look at these recent penny stock plays.
Some of which I've traded. Others I was too new and too scared to take a chance.
Chart em up.
AAMRQ, FARE, JRCC, SIRI, S ,ZNGA, RSH, MJNA,SPWR, and many many more
You tell me how much work you'd have to do in FOREX to make those kinds of returns.
Penny stocks you can buy, hold and sit and profit if you like or you can day trade / short term trade them.
Penny stocks are stocks and the companies and traders want them to go up when they are low.
Everyone's working for you, unlike currencies where they work against you.
FOREX traders look at those returns and realize they came with only 1 trade.
How many FOREX trades and and how many hours of analyzing would you have to do for you to make those returns?
How many $$$ lost in paying spreads, etc.?
How many hours of your life trading FOREX would you have to give up to make those returns?
Answer honestly please.