anon46773462:
There is one topic that has been bothering me for some time now. When one follows the various threads here there are a few issues that are continually raised, one of which concerns how much money can I make from forex trading. Whilst this may seem a natural and reasonable question, it is strange how it always seems to hit two extremes: how to make millons and become rich or how to avoid losing all my money.
The latest example I saw today was a question titled:
[I]" How to make 1000 pips per month"?[/I]
The other strange thing is that this question is often asked even before the newcomer has started to study and understand what trading and foreign exchange are all about. Why is it that newcomers always have their eyes glazed over with images of huge wealth and extravagant lifestyles?
One lovely quote that I think really puts one’s feet firmly on the ground was from one of BP’s own stars, our friend MoneyNVRSleeps, who said:
[I]“1% is like transferring a barrel of water across a highway 1 teaspoon full at a time.” [/I]
here:
301 Moved Permanently
I think that is a brilliant summary of the reality of forex that many simply ignore. To make big money you will need at least one of two things: a [I]very[/I] big account to start with or an extremely high risk exposure per trade combined with a consistent and continual extremely high success rate.
Since the majority of people who come here cannot produce either of these why can they not initially be content with low ambitions and the simple pleasures of trading the markets?
Surely it is better to learn and train and develop professionalism in one’s trading and be happy with a modest return than dream of the impossible before one has even learnt what a pip is?
Yes, it is possible to earn a living from forex, but why not do your apprenticeship and learn your trade before deciding whether to do so? Why not focus on how to build a personal trading approach/method, create a trade journal, structure a risk and money management parameter set, test it and develop it, establish when it is producing a consistent gain (no matter how small)…and only then think about earnings, full- or part-time trading, how it fits into my life objectives, etc.
Another strange misconception that shows a deep lack of understanding of trading and markets is the commonly associated question of “what percentage can I make per month?” To start with, talking of a percentage of an account balance is totally meaningless since the balance on one’s account is completely arbitrary beyond the minimum to sustain one’s positions, and varies enormously between traders. And secondly, the profit potential per month is more determined by the market itself than by one’s trading prowess - but this is another topic for later…
Your answer doesn’t take into account expectation, marketing and marketing’s effects on expectation both conscious and sub-conscious and also the low barrier to entry.
Example, 3 years of study then 4 years of demo in a structured environment before going live may be the absolute best way to become a trader. If some very successful traders that you know personally did it this way and they encourage you to do the same, you may well make that decision.
However, without knowing people who have gone that route and succeeded, who is going to take a route that guarantees no profit for 7 years, with no guarantee after that either for that matter?
It takes 15 mins to get an account up and running. You take a trade with no knowledge whatsoever and it’s a winner.
Of course with hindsight our opinions may or may not be very different than they were day 1, or year 1, or year 10 for that matter, depending on the ride so far.
In a post recently someone wrote, “where are all the Villa’s and shiny Range Rovers?”…
You see there is even an expectation on how traders will spend their earnings. Can’t a trader buy what he/she wants, does he/she have to live up to some out dated stereo type? More senseless marketing, but it has an effect on perception.
Some will win most will lose, that’s how it’s been ‘designed’. The industry is not complaining.
id shoot myself if id have to drive a land rover:58:
Be prepared for your trading credentials to be questioned then
there are cars that are more expensive and that are not from england and ugly looking SUVs:59::59::59:
Indeed there are and any fool with a half decent credit rating and no money can buy one, the marketing boys have done a good job. Perception, trading…Range Rover, Lambo…yada, yada, yada
WinPsych:
Indeed there are and any fool with a half decent credit rating and no money can buy one, the marketing boys have done a good job. Perception, trading…Range Rover, Lambo…yada, yada, yada
information not important/usefull for BPparticipantd
You are right! It doesn’t need to be waterproof until it starts raining and even then “too big to fail” haha
lexys
November 28, 2016, 7:42am
39
Indeed - [i]at least[/I] as boring and mundane and time consuming and committing as any other career, and a good deal more so than many, I would suggest. But still miles better than “going out to work (for someone else)”.
anon46773462:
Excellent post, WynPsych, thank you for the points you raise!
I fully agree with you that most newcomers have an image of what forex trading is about and the stereotyped life style that it promises - and that this is precisely the image that the industry creates.
But still, even with this kind of distorted initial image, it surely doesn’t take much reading here, and a look through the school, to soon realise that things are not [I]quite [/I]that straight-forward…
And surely, everyone knows that, in careers, there is an approximate correlation between the education, training and skills required and the level of earnings that can be expected? Of course, there are always exceptions in every field of human activity, but does anyone seriously expect to earn an exceptional income without an equally exceptional amount of hard work, diligence, and a specialist skill set?
But I guess it is another question whether it really matters on not, and should the industry be expected to demand proof of ability and funds before granting a live account.
I must admit that I don’t consider it a [I]problem [/I]that so many lose their limited cash reserves as well as their self-pride, but it is so intensely sad and a grubby reflection on the professionalism of the entire industry.
But ultimately, it is for the individual to work it out for themselves - that there [I]is[/I] a middle of the road existence between the millions and the total loss - and that it [I]is[/I] occasionally as boring and mundane and time consuming and committing as any other career…
You are right Manxx, but as you noted yourself, the questions keep coming…
lexys:
Indeed - [i]at least[/I] as boring and mundane and time consuming and committing as any other career, and a good deal more so than many, I would suggest. But still miles better than “going out to work (for someone else)”.
This post is to replace the missing ‘double like’ button!
lexys
November 28, 2016, 8:36am
49
Sushi [I]assembled[/I] in Sunderland from imported ingredients might not be, though … :33:
lexys
November 28, 2016, 9:00am
51
As Clarkson once said “Well, it’s a Lotus, so obviously it’s going to spend more time at a garage than actually on the road”. :o
anon46773462:
Hmmm, maybe not worth going down [I]that [/I]road too far, never know what might be revealed, for example:
[I]"… the Lotus Elan gearbox that was originally sourced from the Ford Cortina & Escort Mexico."
" …The Lotus Elise used a Toyota gearbox from about 2005…"[/I]
lets just eat pizza and not think too much
I did not just see a pic of a Bentley in this thread…i did not!
anon46773462:
Depends…is it the Italian or the NewYork version? And where did the ingredients come from?..or is it actually Greek:
“The ancient Greeks covered their bread with oils, herbs and cheese, and in the 6th century BC, the soldiers in Persian King Darius I armies baked flatbreads with cheese and dates on top of their battle shields. Modern pizza evolved from similar flatbread dishes in Naples, Italy in the 18th or early 19th century”
Isn’t global trade wonderful? - for other things than just forex!
you are overthinking it again
