Thread: Is trading FX for living a myth?

I think that trading forex for a living for a number of people can be a myth, since they might not have the essential experience/plogy/disipline to make a living out of trading the forex market.

But perhaps for others who have the disipline, the encounter, and also the plogy it can very well be attainable.

By way of instance, some people wouldn't like to work in an office each day, while others may. Some may want to work on a construction site, a few in client support, some in manufacturing. . .and so on.

Different people are suited to various professions/businesses. I think that is a actuality that can not be dismissed. Trading forex for a living is a business. That is only my opinion.

Originally Posted by ;

showthread.php?p=1468313#post1468313 Disliked I believe that trading forex for a living for some people might be a myth, as they may not have the essential experience/plogy/disipline to earn a living from trading the forex market.

But maybe for others who have the disipline, the experience, and also the plogy it may very well be attainable.

For instance, some people wouldn't prefer to work at an office each day, while others may. Some may want to work on a building site, some in customer support, some in manufacturing. . .and so on.

Different people are suited to various professions/businesses. I believe that's a fundamental actuality that can't be dismissed. Trading forex for a living is a organization. That is only my view. Ignored

Very true Phil. I believe that the washout rate is so high since this is not what people expect. There is a difference between discovering something does not concur with you and level out failure.

I believe a lot of individuals are attracted to Forex trying to escape the very demands that Forex requires. Surely not all but a share that is big. Does not make these people poor, more like victims of misinformation.

[quote=billflet;1468248]

Originally Posted by ;

I believe if you began with a small loan and lost it would be tempting to take an additional loan. See the Issue?

Thank you, Bill, I practically have no expertise aboul loan , (maybe somebody contemplate leverage as loan also, or loan as leverage?) , It's exly as everything you say, ... since forex functions with leverage, it might tempting to leverage it one step further,... and thus gives the Identical difficulty with it :d

and congratulations for your bussines too

[quote]

Originally Posted by ;

IF you're successfully trading an account, regardless of what the size, then borrowing cash to trade is just another business decision. If you are not, then borrowing is tantamount to fiscal suicide. [/quote

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Thanks Dopey. That is the answer in a nutshell.

Just a little background on myself....

I'm a painting contractor by day, and a part time Forex trader. I speak 4 languages, play 6 instruments, and after analyzed completely from all necessary history courses for the school I attended.

And I still SUCK at Forex.

A typical drama in Forex is that: Two great weeks, one bad one. It comes out to flat even.

However, I recently met a person who makes a living trading Forex. He deals for Rubbermaid and before that exchanged for Scott's (The yard care supply firm.)

He resides in a 400k house. (I painted it, watched it, so it's true.)

He explained, at any given instant, he might be selling anywhere from 20-200 million Euros....or buying them. He also has to deal with the Brazilian Real. (Main currencies that Rubbermaid has him working)

Sometimes they are buying Euros on the cheap, to pay employees over there. Sometimes its also speculation, but the latter is uncommon.

More frequently than not, he is buying because he wants to, and the price does not matter. They need to pay German employees for example.

So yes, he makes a living. Oh, and here's something EXTREMELY IMPORTANT: He does NOT exchange Forex for himself. He deals stocks. This says a lot I would think. (Surely he understands when his company is going to dump 200 million, and still couldn't be bothered with it.) He said I was crazy to do it. And that he never would.

Once I asked him about indiors, he explained Price.

I then asked about Fibonacci, he explained If it works for you. But let's put it this way: Which time period? How do you know to follow along with the 15 minute, or even monthly? .

As for the rest of the market, I really don't know. I really don't know if it's possible to produce a living. For those who have him buying 200 million EUR/USD, then it is going to throw items out of wack. Is it really possible to exchange against that?

The fact that you will never hear: most substantial Foreign Exchange transactions are out of necessity, not because John in Cleveland thinks the CAD is going to tank.

And even when he thinks that? Why? What does he know that a major company or bank just like Barclay's does not?

The reality is that this game was not meant for retailers to get into. If you would like to see what Foreign Exchange is really about in its purest form, have a look at some historic charts from the 1970's for example. (Before we arrived at and killed REAL movement.)

However, I must admit I think that you will need a massive account to do this. There is a theory (newspaper) going about from a much adored trader here in FF, and it says that if you simply earn 5 pips each day, in 18 months you'll be at like 250,000 dollars. (starting with something like 1000 dollars.)

Okay, so where do we loe our 5 pips? By the way, the pseudo-system prescribes a 20 pip stop-loss to get your own 5.

Oh, also there are others earning a living at this, I don't have any doubt. The gurus do nicely.

However, I suppose in theory it's possible. But trust me about this, MOST people bragging about making a living doing this, or the great trade they made yesterday, are flat out lying.

The stats do not enjoy, but most estimates are that 90-95 percent of traders fail. So since there are so many successful traders at FF, either the learning curve has been chopped in half, (God I wish that were true. ) Or you will find some lying fools here. (Although, let me the very first to state that I'm sure SOME do it. . .but most probably aren't.)

However, if you would like to get this done, please start SMALL. This way, you'll only lose time, and not money. I presume that with your desktop you have to have made money in stocks, which is why I do not understand why you would play with this. (Forex acts nothing like stocks. When is the last time you heard someone promoting Walmart stocks to pay someone in Kansas?)

The fact of the matter is that banks are earning more than ever in this market, wonder where they are receiving the money from? You and I.

And I for one do not feel that 5th/3rd does not need more money from me.

However, I treat it as a pastime, that way it never really upsets me. I took it serious after, and learned that there is not a lot to learn. Just read through the posts, you'll get 5 thousand distinct ideas.

However, there's also brokers murdering their customers positions, lying gurus, fear trading because Trichet farted in the overall management of England, etc..

I think there are tendencies out there, but smaller time frames will kill you, and if you're trading a daily chart, you want 200 pips leeway, and that means you can't trade much money in that. (Unless of course, your account is large enough.)

However, there can be some hope on the horizon. CME/Reuters have been in the practice of supplying a centralized market. It's not for us of course, but in theory, some brokers will leap on board.

A lot of successful traders can tell you to not use more than 10:1 leverage, and less if possible. So in fact, you need to trend trade, and might find a positive yield of 20 percent in a year. Sounds just like the stock market. But again, money, money, money, is what you need to get, in order to get it from the market.

Just my observations, and now I hope that they are wrong...

This is a topic that's dear to my heart. My final goal is to exchange for a living. Since I have found FF, I'm glad to say that I'm in my way. My goal to begin trading for a living is 5 decades. I invested (year 1) 1st year studying all that I could and (year 2) 1st year reside fighting and (year 3) 2nd year reside do very nicely at this point. So today I'm in my 3rd year and that I actually ought to be ready to exchange for a living by the end of this calendar year, but I shall wait and continue to work on my trading consequences, capital preservation and plogical makeup. Just like everything else in this game ... you have to take steps to get to another level.

Joyful Trading 2 All ....

Originally Posted by ;

A little background on I believe there are trends out there, however smaller time frames will kill you, and if you are investing in a daily chart, you need like 200 pips leeway, so you can't trade much money in that. (Unless of course, your account is large enough.)
Only my observations, and that I hope they are wrong....

You've got good points there. But I have to disagree that you want 100-200 pips for prevent loss. In my trade of Fiber and Cable, it requires just 50 and 70 (maximum) respectively with daily charts. And the pal of yours is a hedger. Hedgers never aim to create money in market.

Forex reminds me of futures market. Originally, people (hedger) trade futures from necessity before the speculators (people who never require any commodity but take paper profit instead) came in.

You're able to trade forex like stocks as well. Buy, hold for a year and use no stop loss. But you need to use zero leverage.

Using zero leverage will result in lower profit. So you need leverage and this needs an elaborate money control and usage of stop loss.

Originally Posted by ;

You have good points there. However, I must disagree that you need 100-200 pips for prevent loss. In my commerce of Fiber and Cable, it requires only 50 and 70 (max) respectively using daily charts. And the pal of yours is a hedger. Hedgers never aim to create money in market.

Forex reminds me of futures market. Originally, folks (hedger) trade stocks out of demand before the speculators (those who never need any commodity however take paper profit rather) arrived in.

You're able to trade Foreign Exchange like stocks as well. Buy, hold for a year and utilize no stop loss. However, you need to utilize zero leverage.

Using zero leverage will lead to lower profit. So you need leverage and this demands an elaborate money management and use of stop loss.

True, he is a hedger, which is my point precisely. He sells millions since he wants too. Multiply this by God only knows the number of companies, and this creates an issue for us small guys.

That I happen to know that in my city, (because he told me) that there are a few companies you may have heard of, Rubbermaid, Scotts, Limited Brands (Victorias Secret, Express, etc.), Honda of America, and Batelle all transaction in this market. All need to create trades, therefore this is my point precisely. Hedgers. Chopping us up.

So now that I think about it, if Honda of America is an area bargain, and they're sending their dollars back to Japan...I figure the carry trade is coming out of the Columbus, Ohio area?

Huh....go figure, and the banks all think that it's Japanese retail men are doing it...

Originally Posted by ;

True, he's a hedger, which is my point precisely. He sells millions since he needs too. Multiply this by God only knows the number of businesses, and this creates an issue for us small guys.

All must make trades, therefore that is my point precisely. Hedgers. Chopping up us.

It is a problem if you don't adapt to it. With every difficulty comes options, so find a means around it. Use this knowledge or what you think to be causing you problems for your advantage. discusses how years back before the ton of clickers, he had been discussing with fellow spouses(or traders he knew), the way this could impact the current environment they grew to know. It is this thought process of constantly trying to be ahead of and adapting to the environment, rather than falling victim too it, that makes a true long-term successful trader(in my view).

Mike

Originally Posted by ;

I can only speak for myself, but I actually do make a living at trading. It had been hard won. It took intensive study and a degree of due diligence and discipline that many jobs don't need. It's a strain that thrives in this environment and develops to the challenge. So cutting the wheat begins at the base. If anyone finds themselves in any one of the groups then save yourself a lot of money and give up. What I will share may seem harsh, but it's not mean spirited in the...

Got some insights,
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