Please tell me the hard truth

Beginner Questions
42

Replying to Gracewilson22 post: I started trading with 100USD. Trading forex is risky so invest as much as you can afford to loose.
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Yeah, trading forex is risky, but at the end, it all balls down on your risk and money management skills, which is why a lot of people still get burned. Personally, I feel it is not about the amount you can afford to lose, cause you will always lose anyway if you do not have a good strategy, cannot drop your emotion in the pit to stick with the strategy, and above all, you have no clue how to manage your money and the risk.

As long as you have tried and demonstrated your strategy over time using a demo account until you are sure it has a good win rate, combined with profitability over time with your risk to reward ratio (I use 1:1.5), while risking nothing less than 2% per trade, and having each trade you make in a trading journal for analysis, you are good. If not, and you decide to enter the market even with $100, you will still end up losing.

Above was my own experience, until I learned from my mistakes and now I am doing very well. Thanks to babypips and other resources and quality videos on YouTube. I backtested few strategies, fine tuned them, used demo to focus on the best strategy with good win rate for 6 months, a step that also helped me discard all emotions when I got into live market. By the way, the money management calculator on baby pips has been a great help for me, automating the process for me, since I started a bit lazy calculating myself the lot size I should put in, due to my risk level of 1% on any pair that goes with my strategy and the number of pips of stop loss (trading view helps with this), without trading more than 3 market pairs at once.

So, in a nutshell, your survival in the market is based on your strategy, but above your strategy, how well you understand money and risk management, which is something a lot of newbie traders have no clue of. And if you are not ready to put a lot of work into being a successful trader, which is a business and not a get rich quick scheme, you will never find it easy.

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43

I agree on this. Thanks! I like to hear your doing well. Best off luck

44

This gets shared a lot. I’m not sure if they still update it. But some good titles on there.

45

Word. Many traders don’t understand this and don’t think before investing and come in the category of those ‘why 90% traders fail’.

46

It is not easy to make money through forex trading. You will lose several times before you can make profits. Learn to accept your losses the way you will accept your profits.

47

I have personaly seen evidence of some saudi’s making $3-15k a day. They have huge accounts though and have a team of analysts with 10+ years experience. Experience is everything, they know how to trade and when to trade, they simply dont take trades unless their 100% sure, I only seen them lose rarely to sudden events like a random vaccine announcement. Also they use ridiculous stop losses like 100-160 pips and always seem to go for 20/40/60 pips wins and sometimes hold their trades for days, which kinda goes against the risk reward ratio lessons but hey they are making serious bank so I cant say anything.

48

It is quite difficult to become a successful forex trader. It takes a trader a lot of determination and practice to be able to make some noticeable gains. What I suggest is first demo trading with your broker to get an idea of whether you will be able to do it for a long-time or not. When you are sure that you want to do it, you can go ahead.

49

It is not at all easy to make profit through Forex. It is not less than a 9-6 job, you have to spare more time in order to make good profit through trading and moreover it’s really hard to control your emotions.

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50

there can never be a clear answer to that. capital totally depends on how much you can afford to lose. dont keep a winning mindset that you will always win. it is unpredictable market where anything can happen at anytime,

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51

it would be ludicrous to believe making good profits straight away and consistently, for months-years without effort,knowledge ,experience and mental discipline.Regarding amount its best to practice with small account to gain the experience if your prepared to take it serious and put the time in

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52

All your queries depend on one thing and that’s how well versed you are with the forex trading techniques, instruments, and indicators. The profit percentage is something that can’t be predefined. As far as starting capital is required, $100 would be sufficient in micro account.