Forex Worth It?

blackhat50 said:

i take it you don't follow eur/usd pair? whatever you do, don't look at its 5 year chart. thanks in advance.

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sorry but you're just plain dumb. I don't get what you're saying but most news event don't cause a 500pip swing... I've seen 300 recently with the bailout and that was not 300 instantly, you could have easily closed a position.

In fact the main pair I trade is E/U, however I trade it on a tick chart...so I have no need to look at a useless 5yr chart. My trades last anywhere from 6 seconds to a couple minutes. I have no need to experience high drawdown by holding or carry trading by the hour,day,week,month,year... that is no way to make money

when you hear ppl making a lot on the currency, theyre either lucky or theyre really a good trader.

a lucky trader basically is someone who doesnt know enough about the currency and suddenly the market direction is going his way and he made a fortune.

a good trader is one who analyze the market pretty well and know so much about the currency, trend, and stuff.

So whats the difference between the two? a lucky trader will eventually lost the money the next day coz he thinks hes so good that he traded all his money, maybe not the next day, but sooner or later he will. whilst, a good trader will become profitable in the long haul.


I'm a trader myself and altho i havent trade for months since obama election (lost some big bucks due to greed), i do think forex is profitable with the right skills and knowledge. just like blackhat u cant get rich overnight, right?

or you can do scalping too!

just my 2cents

stealthisblog said:

Hey. I was just wondering, how many of you have actually made money through forex? I've heard of some people making a lot, but I don't know if its luck, fake, or they're just some of the few people who can actually do it.

Even wikipedia says its a scam:

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http://en.wikipedia.org/wiki/Forex_scam

Well, has anyone made real money? I hope so, cause if its true I definetely want to get in on this.

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scalping is a form of trading it should not be the black sheep that it is...

or rather yea it should be the black sheep, I don't need more competition out there in the scalping style

start trading on investopedia.com first

I don't think its a scam at all. I do think a lot of people get Scammed with it though. You need to gain a lot of knowledge before you can actually start making money without relying on luck. I would suggest reading up and understanding the market to the best you can before you start trading anything. Just my two cents...

Forex is not a get rich overnight scheme. It is no scam. To make money from forex you should avoid fear and greed. Greedy ppl loose in forex. Get a good trainer and train and deemo for some time before putting in your money. So many are making it through forex. It is really real.

I agree with mikehustle. Daytrading is dangerous. Stay away. I've found using bollinger bands and cci on the hourly and daily charts to work extremely well.

I cannot agree more with romeo216. Daytrading and forex are both risky. I have been aday trader for 20 years, with some good times and bad. I do IM to give myself a steady income. I do use bollinger bands as my number 1 indicator. I consider myself a scalper. IE make lots of very small profits, maybe 20-40 trades a day.

Forex is much for the pros. It is ruled by banks and huge intitutions and also it is a 24 hour thing.

Daytrading is NOT RISKY! In fact it has less risk than you're overnight carry trades!

LIMIT exposure to market...that is one of the major rules. You guys are failing to see that you are at a huge disadvantage here because by the time you get the news the banks have already heard it.

I used a series of WMA's on the tick chart and I have no problem with day trading, I can grab a trade of 6 pips that brings in an = amount of money as your TP of 60 pips on carry trades. Only I limit my exposure to the market so I am in a far better position.

Spanky,

Why would you only want to grab a trade of 6 pips? How much are you risking? Is it worth it, for 6 pips? One loss could wipe out all your profits. It doesn't make good sense to trade that way.

You be better off getting a job at a car wash and risking no money at all!

What does it cost to get into forex ?
I mean fees, monthly fees and the like.

Spankythepyro, how can daytrading not be risky/ While I agree the buy and hold theme that the big boys have been selling for ears is wrong, daydrating puts 10-20% of your portfolio if not more at risk everyday. Because of the leverage that is used. Several bad weeks or months in a row and your toast.

Romeo216,

Why would I want to grab a trade for 6 pips? Because my pips are worth alot, and it is all a majority of the moves go for, some go less some go more.

I am risking on average 2-5 std lots per trade depending on market conditions, I do not use high leverage, so that will allow you to figure out my account size.

I generally do not having losing days, 3 lost trades in a row is my cutoff and only happens once in a blue moon when you have 90%+ hitrate.

You need to put compounding gains in your favor..the only way to get a good quick compounding system is day trading.. however there is a limit due to market depth.

EDIT: Justone: there should be no recurring fees with forex, however if you have a good broker they will take comission on trades, a broker that does not take comissions is generally a bucketshop/crook. There is also something called rollover which you can read into, it can be neg. or pos. depending on the interest rates of the currency pair traded.

I have heard of a forex traders who was making a lost for one whole year before gaining a profit.

I started out with oanda when I first began forex, I would not suggest going live with them. When I had a live account my orders were slipped on both entry and exits, I experienced misquotes as well.

I would not reccomend oanda, ibfx, fxcm, or any other low deposit broker for that matter.

What I do reccomened though is adm or fxdd w/ a institutional feed account (currenex), to get these you should call the respective companies. efx is another option to trade with an ecn, but their comissions are high.

A friend of mine is a forex trader software autopilot progammer and makes a full time living with forex. He consults part time on such projects.

He swears by auto pilot robots.

I personally think forex is gambling. It like buying real estate, or playing the stockmarket. Who know... it is perhaps like keeping your money in the bank....

Banks have been failing... who knows what is not gambling any more!

A friend of mine is a forex trader software autopilot progammer and makes a full time living with forex. He consults part time on such projects.

He swears by auto pilot robots.

I personally think forex is gambling. It like buying real estate, or playing the stockmarket. Who know... it is perhaps like keeping your money in the bank....

Banks have been failing... who knows what is not gambling any more!

I just haven't heard of or seen many successful traders shoot for 6 pips on a trade. I understand your pips being worth a lot but your system is a little on the weird side to me. It seems like you'd lose more than you win.

romeo216 said:

I just haven't heard of or seen many successful traders shoot for 6 pips on a trade. I understand your pips being worth a lot but your system is a little on the weird side to me. It seems like you'd lose more than you win.

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it seems like it doesn't it? I know where you are coming from, you are thinking about spread making your losses bigger and your winners smallers.

Spread is relative to move strength, also like I was telling you in your other thread, you need to shoot for the lowest spread possible from your broker.

My broker gives me 0-0.7 for E/U in normal market conditions. E/Y is a little bigger on the spread side for me but its moves are also bigger.

The bots are junk btw, watch it trade...see how much drawdown it actually makes.

As a forex trader who just takes away consistent profits from market , i would just like to say few words .I read all discussion that you guys have been going through.
I would say everyone is right in there own sense . Forex market is no doubt a zero sum game. The saying of 95% fail and 5% make it rest holds true.
The question here is not of a method whether scalping or long term but rather the person who consistently gets the profits from the market and moves it to bank is a winner in this game.
About the questions asked by the thread starter ,
I would say Forex is a business. Yes consider it a business and remember that as you treat a business you would need an initial investment and patience along with right money management to make profits in this market.
I will give you an example : Just try this on demo forex account.
Take a coin and flip it eevry time you want to trade . If heads comes buy and if tail comes sell .No emotions . NOTHING ELSE just make sure each time you open a trade you use only 1% of the available equity margin for it. Do this for 3 months and tell me results after 3 months . I bet many will get profits in this time since there wouldnt be psychological involvment. This is just a task. I dont advice you to trade on real money account with this. But this is task to rule out the emotional attachment to the trade.
Just do it . Dont reply to this without doing it. I give this task to every student whom i teach forex trading. There are lot of things to tell about forex but i guess this isnt the right place!
Happy trading..