The Forex Fantasy: False or Feasible?

Beginner Questions
1

I’ve just recently learned about this market and I am quite excited at the opportunity. I’ve been reading through the School articles on this website and also the forums.

I noticed there are traders and websites offering up their own daily trading “signals” such as in this thread 301 Moved Permanently

Are people actually consistently netting 500+ pips every month this way? The reports on his website seem to suggest so, and since he isn’t selling anything (yet?) it makes me a little less skeptical.

If you can consistently stay in the green on the order of 500 to 1000 pips or more every single month, whether through your own analysis of the market or with tips from someone else - what’s to stop your profits from growing exponentially? Say for every $2500 of capital you have you buy $10k lots in your prospective trades - earning $1 a pip. If you make 1000 pips in the first month you’re up $1000, eventually you have $5000 and now you can earn $2 a pip. So that month you make $2000 - and so on. At what point would gains like this break down and why? Assuming intelligent money management here that leaves large amounts of capital in the account (relative to the amount invested) to allow for losing streaks that will later be offset.

It’s intriguing, but if people are actually that successful with it, how come I never heard about it? The average urban adult probably knows where wall street is, but ask them about floating exchange rates and I bet a lot of them will draw a blank.

Are you making 100s of pips a month? Are your profits increasing exponentially? If not, how come?

2

i have a system (self developed) that seems to give me 300 pips per month.

plenty of other systems work too. why do banks earn money through trading if there’s no surefire way to earn? :wink: why do casinos always win?

earning is a sure thing if you know what you’re doing. i believe that psychology is the main thing that seperates those who lose money consistently from those who win consistently.
would you dare to jump into the trade if the indicator tells you to? would you hold on to it if the exit signal isnt there yet? etc etc.

3

Forex is like a fantasy where dreams can actually come true
of course it can go the other way

im still currently learning

but making 100s of pips each month seems doable since most currency pair go up and down 100s of pips each day

as for winning consistently, first learn the basics
understand the market, read books, go to classes and etc.
lots of info online and offline
knowledge = money, time = money,
so both are needed for you to make money

and yes like jawn said lots of psychology is involved
often trader misses out on opportunities due to fear or panic
or keeping a losing position with the same idea
they often go back to analysis to prove themselves right then sometimes even add more to a losing position
eventually they get margin called

so lots of it is the mind too
to understand a little more
i recommend you read
Trading In The Zone by Mark Douglas
his other book, The Disciplined Trader is great too

and as for everything else, you are merely trying to develop a system that gives you a better probability to make money
of course there are lots of systems out there, you could find one that works for you or develop your own

but point is even with the most detailed analysis you can still lose money, just because the market is filled with unknown variables
sure you can say history repeats itself usually but sometimes they can go a different course
so nothing in the future is for a fact
you are just trying to gain an advantage by making it go in your favor

lots of books and sources recommend trading no more than 2% of your account
why is that? they fear you will lose
a big lose can easily wipe out your account
and others talk about money management
sure you can do all that
but if you trade only 2% of your account, your profit will obviously be small too
probably that’s a longer way to reach your the fantasies of striking it rich
maybe years?

so if you wanna strike it rich
you gotta take more risk
taking more risk of course means the higher chance of wiping your account
so do it at your own risk

first try it out on a demo account
then whenever u feel ready, open a live account
try no more than 500$
unless you are rich go ahead put in whatever amount u want
then work your way up
over the way up there, im sure you might blow your account at least once maybe 10 times maybe 100
but losing is another way of learning
just dont give up
patience, knowledge, experience, confidence and alot more attributes are required to go up the ladder
it might look tough, but if you want to give up better give up early
than wasting a little more time to give up
else go in all the way

yes there are lots of nonsense in my post
but some are true…
so ignore the nonsense, take in whatever u feel is useful
good luck

4

“so if you wanna strike it rich
you gotta take more risk”

So, so, so wrong. But if there was no regulation, brokers and casinos would probably have this as their strapline on their ads.

5

I consistently net positive my account between 400-1000 pips a month.

And I am relatively new to live trading. Just keep learning everything you can.

If you approach it like a skill that you have to learn, OVER TIME, then you’ll do just fine. If you jump in and do stupid trades trying to get rich quick you might make some money initially, but you’ll eventually lose your account.

What I like to tell everyone is don’t worrry about the money. Concentrate your mental focus on becoming an extremely skilled trader who is savvy and knows what he is doing and can execute in a live situation, not just all talk. In other words you know how to trade well. Not just throw money in and gamble. If you can do that the money will follow as a bi-product.

It’s not rocket science. Trading isn’t even that hard. However, most people try to skip the part where you need to actually study and get lots of experience under your belt. They try to jump in and trade large, just because they read someones winning system. (demo any new technique AND after it works ease it in and trade very small with it live)

Experience, Experience, Experience. …SCREEN TIME… Demo, then trade live with very small amounts as much as you can without wearing yourself out. Allow your self mistakes, then elimenate the mistakes and keep going. Don’t quit just because you lose a few trades, find out why you are losing or repeat what you do when you win. Do, that and you’ll be ahead of about 99% of new traders.