Hello, this is Russ from Melbourne, Australia. I am looking for ways that can earn money when I am sleeping. So the next day I can fire the boss… I just find that Forex is the one which is also much easier than winning lotto. So I started trading with small amount 25 days ago. Good news is that I didn’t lost my money from 20 trades. But even bad news is that I didn’t earn either. So I am here and enroll me in Babypips School…
Welcome aboard. Congrats for not losing your ass.
Seek and you will find, only something being impossible is impossible… (other cheese types available…) happy studies and good luck 
Thanks Guys. I wish I could find this forum earlier, which will same my heaps to borrow books from the library… BTW, what’s best aspect you like this forum about?
Hey Russ, just joined this forum and from Melbourne too. Live in Williamstown but work CBD. Living for the day I am fire the boss too;)
If you fancy a coffee to exchange ideas, let me know.
Good trading
Hello Russ.
Welcome.
But: “whoa there cowboy”!!! LOL!!!
Please read this (and not just you but ANYBODY that THINKS they’re going to open a trading account with $100 and is going to “quit their day job” in the near future):
When To Quit Your Day Job by Jim Wyckoff (Synergistic Trading brought to you by TraderPlanet.com)
Oh and by the way: don’t think for one minute that the advice only applies to futures traders i.e. that it does not apply to FOREX traders (as a matter of fact it’s even MORE apt for FOREX traders because you stand a far better chance of making money trading futures than you do trading FOREX).
Also (and depending on your current lifestyle and monthly expenses): you need CAPITAL. I USED to agree that your PERCENTAGE GAINS (per month) were important. No more i.e. 10% of a $100 account probably doesn’t even cover the cost of your Internet connection and don’t let anybody tell you that you’re going to start trading and make 1 000% per month and you don’t need a lot of capital because of LEVERAGE. It’s a fallacy. If you’re serious about making money in this business then you NEED money to MAKE money (just like any other business).
Sorry: I didn’t mean to “rain on your parade”. But this type of thread needs a “reality check post” somewhere in it.
Regards,
Dale.
I agree…it takes money to make money in any business and forex is no different…however I feel if you have enough confidence and a good strategy with a good amount of capital (minimum £2000) then you have a good chance of making money if you apply yourself…and also a quick question why is it better to trade futures than forex???
“It takes money to make money”.
Sure thing, but this isn’t the only factor. Imagine if I gave you $ 1000000 and said: “Take this, start any businesses that you want and make profit”. After a day or two, you come to me, looking sad and saying: “I’ve failed and I lost all of your capital”.
My point is: Skill and natural talent for trading and economy is 70% and amount of money invested is 30%.
Yeah I agree with you…but the point I was trying to make was that you need a sensible amount of capital in order to place half decent trades that are going to make you half decent profits, you cant start trading with the idea that $100 will make you rich over night, but then again it’s all about trial & error and learning the etiquette of trading. I myself have been demo trading for about 6 months and I learn new things all the time, however I have been trading with a live account for a month just as a training programme
before I decide to invest a larger amount and Ive found it more straight forward trading shares rather than forex and have made more gains trading shares compared to forex and Im not quite sure why this is as I only intended to trade forex in the first place…!!
Hello.
Yeh well: to avoid the risk of my getting “slaughtered” here AGAIN because of the FOREX vs. Equities and Commodities trading debate I won’t go into detail (although there’s “101” reasons why trading Equities, Commodities, Futures, etc. is preferable to trading FOREX). SOMEWHERE here is an (old) thread where a “raging” discussion took place on this very topic.
As for THIS topic: having HUGE amounts of capital is by NO means a guarantee of success as has been quite quite correctly noted. Of course: a half-decent technical trading system, self-discipline, and above all the RELIGIOUS implementation of risk / money management are requirements for success (profitability). BUT in my experience (first as a trader and now as the Manager of Deltastock AD’s South African Office): I believe I’ve now “seen it all”. The logic (for some reason) is this: a (new) trader will start with $100 and MAYBE, for a LITTLE while, will be HUGELY satisfied with 10% or so per month. So: they do everything “right” but eventually get frustrated because they’re making no REAL money. What happens??? They increase their trade size, “throw all caution to the wind”, ignore their risk / money management rules (which is what enabled them to be profitable in the first place), and try to build their account up quickly THINKING that once they do HAVE a bigger account THEN they will revert back to their original trading plan. What happens??? One or two bad trades and all the profit as well as the initial $100 capital is “gone in a flash”. Then, and to compound the “mess”, they’ll deposit more funds and then NOT ONLY try to play “catch up” BUT STILL try to “make it big quick”. And the cycle repeats itself over and over and over (and at the same time they’re learning VERY bad habits which are EXTREMELY difficult to “unlearn” after a period of time has elapsed).
Now compare the above to the scenario where somebody is trading with DECENT capital and 10% per month MORE than covers their living expenses, entertainment, and is able to improve their lifestyle and quality of life. They don’t NEED to “chase” or be on the lookout for the “one life changing trade”. See my logic???
My other personal “bugbear” are these “straight line compounding spreadsheets”. Yes: take $100 and add 10% (or whatever) compounded (for whatever period) and it LOOKS like it’s REAL easy to eventually end up with thousands (even milliions) of USD in what APPEARS to be a relatively short space of time. These spreadsheets that make trading so “irresistable” to the new trader don’t account for losses, losing periods or losing streaks, etc.
One thing I have to disagree with also (NorwoodFX): I don’t believe that “natural talent for trading” is necessary (I’m not even sure such a thing exists). Feel free to comment and disagree with me on this but remember “The Turtle Trading Experiment”??? For those interested simply Google it. Put another way: I DO believe that “anyone can trade” if they’re going to trade using a decent technical trading system, are able to discipline themselves to actually FOLLOW such decent technical trading system, and adhere to strict risk / money management rules. I’ve proved it to myself and others (that I train) have proved it to me beyond a shadow of a doubt. I would say this: “natural talent for trading” (if there is such a thing) COULD be beneficial (and possibly necessary again with the proviso that there is such a thing) if you’re a FLOOR TRADER. But I don’t think it applies to your average online retail trader.
Anyway: there’s my $2 000 (recommended minimum trading capital required to trade CFDs on Equities, Commodities, Futures, etc.) worth!!! LOL!!!
Regards,
Dale.
You’re right. My bad choice of words. Trading is something that is learned.
And I would trade commodities. But futures or equities? No, thanks. I have my own reasons.
Great convo fellaz…now im still in the early stages of my trading quest, can anyone recommend any decent books or articles that can help me choose a specific strategy as I mainly have been trading purely on ‘price action’ and feel I need a more concrete style and strategy to base my trading on…
Hello.
Well: I’d be MORE than willing to assist you but if I told you HOW in a post like THIS you can “bet your ar*e” it would be deleted (it would seem that forum rules on ALL forums EVERYWHERE seem to have changed making it REALLY difficult to “offer” somebody something). The best I can do for you: take a look at my profile and read the information on the “About Me” tab and then decide (and no: I cannot assist you to become an overnight millionaire trading FOREX, with a $100 trading account, at ONE KAJILLION to one leverage)!!! LOL!!!
Regards,
Dale.
“One kajillion to one leverage”.
I lol’d on that one.
LOL!!!
Well I’ve been known to exaggerate somewhat over the years!!! LOL!!!
Alright and to be fair: the “largest noose” (highest leverage) I’ve seen to date is 1 500:1 (on FOREX OBVIOUSLY)!!!
Regards,
Dale.
Those $100-200 micro accounts are only good to see how Forex trading “looks like” in IMO.
Agreed (although I have to admit for a long time I thought otherwise). Logic dictates that if you cannot make a certain return (of say 10%) per month on a $100 account then you’re not going to be able to make a certain return (of say 10%) per month on a $100 000 account. I now vehemently disagree with this. There are a LOT of psychological factors that come into play in BOTH scenarios. It’s a LOT easier to psychologically manage risk (risking, say, 1% or even 0.1%) on a $100 000 account than it is to manage risk on a $100 account. Sound odd??? Think about it. If you’re risking 0.1% on a trade but are still able to make, say, $10 000 per month (on a $100 000 account) then you’re going to be REAL happy. Once again: compare this to the scenario of making $10 per month (on a $100 account)??? It is almost a GUARANTEE that a) the trader will be risking WAY more than 1% per trade (and most CERTAINLY not be able to bring themselves to only risk 0.1% per trade) on a $100 account (in an ATTEMPT to make some REAL money) and b) they will therefore be overtrading their account. NOT that I’m a big fan of the BabyPips School (I believe that there is just TOO MUCH information there i.e. “information overload”) BUT one thing that IS QUITE CORRECTLY stated is that “the number one reason for failure is being undercapitalized” (and therefore, by definition, being unable to adequately manage risk). The two are inextricably linked.
Regards,
Dale.
I dont think anyone in this forum actually makes real money trading forex, I havent spoken to anyone who makes money trading forex, all I hear is theory’s about how people can ATTEMPT to make money and TRY this, that and the other to maybe get a slight chance of guessing where to enter a trade once, let alone repeating it and making money on a regular basis. All I seem to be reading is ooh you need good money management, good risk/reward, discipline and how only 3 people out of every 100 actually make money trading forex. I think the only people making money are institutions and banks, the rest are just chasing hopeless dreams playing this chronic guessing game!!!
Your comment is pretty much ignorant, sir.
“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
-Mark Twain.
Think no one has told him it requires hard work/research/education and smidgen of luck - much similar to getting a well payed job anywhere else.