Is trading FX for living a myth?
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Thread: Is trading FX for living a myth?

  1. #1
    I'm new to FX, but I have traded stocks for several years.

    I believe I understand most of the TA indiors and a few risk management, but I cannot have an acceptable effect in demo FX account.


    (I suggest trading for living like having a job; I don't mean trading for wealthy.)

    Can anyone give me some insight?

    Thanks Beforehand.

    ________________________
    Living wants faith!

  2. #2
    IF you're successfully trading an account, regardless of what the size, then borrowing money to trade is just another business decision. If you aren't, then borrowing is tantamount to fiscal suicide.

  3. #3
    You are welcome.

    Quote Originally Posted by ;
    Thanks . That is the Solution in a nutshell.

  4. #4
    I would say it is doable, I know people that exchange other markets for a dwelling. So it needs to be achievable on the FX market. I have found indiors, especially those that indie over bought and sold. Are not as powerful, due to the trendiness of FX they provide a lot of false signs. They do help with trend power, but I have had the best success with price action and encourage and resistance (trendlines, H/L/C, MA's, fibs, preceding high/low and around numbers). I mainly just search for PA around those regions, the more from the area the better that the PA will probably be times.

  5. #5
    I think your question is reasonable and that I adored the dichotomy of your query and your own username

    But if you let me, I want to discuss my opinion here, of course, this query is populating my thoughts for quite a while.

    I my view, forex can be traded for living if it is traded as a business. Any business. And today it is easier to me to know this concept better, since I began a real company with my sister, producing fitness clothing.

    In a real company your profits a fairly predictable as your gross margin. You know how much your products cost (and you realize they're at good prices or not) and you know for how far you CAN market (and you know if your prices are good).

    In forex, you know for how much you bought, but you don't know for how far you WILL market.

    The difference is that in real business sales are more difficult to create (so you know how for much you CAN market, but you don't know whether you're likely to market). In forex, however, you sell at a click, but you don't know for how much you will sell (and when to market), and this is NASTY.

    In a real company you are in possession of a predetermined P/L and then you've got to work hard to create sales. In forex you know you can sell how much you want at any time, but you don't know your P/L beforehand.

    So I came to the conclusion that forex for a living is simpler if you make it function as a real business. If you restrain your losses to a minimum, you should also reduce your profit requirements. It's fairly easy and fast to create, say, 0.5% of your funds a day in forex. But that would provide you about 10 percent a month. This is pretty good compared to real business, but with a $250 account you earn $25. With $25,000 $ 2,500 is made by you.

    Bottom line, I believe today that yes, if you've got a good amount to start trading forex, you can live from it, working hard to lower the risk and to accomplish your profit target (sales are granted, you've got to work on the gross profit margin)

    In a real business you want a good amount to start working and you need to work hard to improve your sales, as you're gross margin (price-cost) is more or less fixed.

    That's the reason why the million dollars from a $250 account is as unthinkable as attempting to build a real company with $250 of functioning funds

  6. #6
    No, residing off Currency Market trading isn't a myth.

    What it actually is a myth is newcomers' believes they will have the ability to turn into a 5K account into 100k within their first season.

  7. #7
    Quote Originally Posted by ;
    I'd say it is doable, I know people that exchange other markets for a dwelling. So it has to be achievable on the FX market. I've found indiors, particularly the ones that suggest over bought and sold. Aren't as effective, because of the trendiness of FX they provide a lot of false signals. They do help with trend strength, but I've had the best success with price action and encourage and resistance (trendlines, H/L/C, MA's, fibs, previous high/low and round numbers). I mostly just look for PA around those areas, the more in the area the better the PA will be times.
    Dear shadeslay,

    Thank you for your view. I always use crossover systems with triple timeframes for trading decision, but it doesn't have a successful results, or that I want more money and emotional direction. I believe yours PA is very excellent way to exchange, since Jesse Livermore also utilized PA in his amazing times (eg. 1907 and 1929). But, unlike crossover systems (MACD, K%-D%) having apparent signals, PA appears difficult to have a crystal clear sign to entry and to exit. But I'll start to check out PA for trading decision.

    Living needs !

  8. #8
    Quote Originally Posted by ;
    I think that your question makes sense and that I loved the dichotomy of your query along with your username

    But if you allow me, I would like to share my view here, of course, this query is populating my thoughts for quite some time.

    I my view, FX can be traded for living if it's traded as a business. Any business enterprise. And now it's easier to me to know this concept, because I started a true business with my sister, creating fitness clothing.

    At a true business your gains a fairly predictable as your gross margin. You know how much your products cost (and you realize they're at good costs or not) and you know for how much it is possible to market (and you know whether your prices are good).

    In FX, you know for how much you bought, but you do not know for how much you WILL market.

    The distinction is that in actual small business sales are more difficult to make (so you know just how for much you CAN market, but you do not know IF you're going to market). In FX, however, you sell at a click, but you do not know for how much you will sell (and when to market), and that is NASTY.

    In a true business you are in possession of a predetermined P/L and you've got to work hard to make sales. In FX you know that you can market how much you need at any moment, but you do not know your P/L beforehand.

    So I came to the end which FX for a living is simpler if you force it to work as a true business. If you restrain your losses to a minimum, you also need to decrease your profit demands. It is fairly easy and fast to make, say, 0.5 percent of your funds per day in FX. But that would provide you about 10% a month. That is pretty good when compared with actual business, but with a $250 account you make $25. With $25,000 you make $2,500.

    Bottom line, I think now that yes, in case you've got a fantastic amount to begin trading FX, you can live out of it, working hard to decrease the risk and also to accomplish your profit goal (earnings are granted, you've got to work on the gross profit margin)

    At a true business you want a fantastic amount to begin working and you need to work hard to enhance your earnings, as you're gross margin (price-cost) is more or less repaired.

    That's the reason why the thousand dollars out of a $250 account is as unthinkable as wanting to construct a real business with $250 of operating funds
    Dear ,

    Thanks for your detail explanation when comparing trading FX with running business, as it's extremely persuasive, particularly in part of controling losses by lowering profit requirement. It is a simple fact that shield captial is the most crucial issue in such trading business. In the present moment, I wish I can constantly earn around 80 to 100 pips weekly with demo account before trading live.

    !

  9. #9
    Quote Originally Posted by ;
    It is fairly easy and quick to create, say, 0.5% of your funds per day in FX. But that would give you about 10 percent a month. This is pretty good when compared with actual organization, but with a $250 account you earn $25. With $25,000 you earn $2,500.

    Bottom line, I believe today that yes, in case you've got a good amount to begin trading FX, you are able to live out of it, working hard to decrease the risk and to accomplish your profit goal (sales are granted, you've got to work on the gross profit margin)

    In a true business you need a good amount to begin working and you need to work hard to enhance your sales, since you're gross margin (price-cost) is more or less fixed.

    That is the reason why the thousand dollars out of a $250 account is as unthinkable as trying to build a real business with $250 of working funds
    hellow, in actual bussiness it is okay to loan in the bank, is it okay to do it on FX? This question haunts me over and over again.
    Please gives us some insight

  10. #10
    [quote]
    Quote Originally Posted by ;
    hellow, in actual bussiness it's ok to loan from the bank, is it ok to take action on forex? Me haunts .
    Please gives us some insight]
    Buddy Gwan,

    Good question. A few facts to take into account. Should you borrow money to begin a company, generally, you'd be buying equipment, inventory etc.. These items could be sold if the company failed and at least part of this loan may be paid back by selling those assets. You would also have first payroll cost and other start up costs that could not be retrieved. But you'd probably have some of your money in the business as well. My point is that when you borrow for most businesses the loan would be at least partly secured.

    With what we do in Forex there's a high risk of losing the borrowed cash and no way to pay it back.
    However if you're successfully trading a little account with consistent positive outcomes I could see the urge to use borrowed money to grow your account faster. I figure if you had enough income from other sources to repay a little loan which you might consider it. But just if repaying the loan wouldn't be a burden. Even then I don't think you'd discover many who would condone it.

    I think if you began with a loan and dropped it, it would be tempting to take another loan. See the Issue?

    I lived in Reno for a couple years (gambling town) and I watched many men and women destroy themselves and lose everything. I don't consider Forex gambling, but my time in Reno has made me look at things from the conservative side.
    With all that said, I have to admit to buying mutual money back from the eighties with borrowed cash. Borrowed at 6 or 7% and 25-35% yields.

    As for the topic of the thread, I don't think residing off Fx is a fantasy. I do believe it's harder than most men and women expect. Iowned tiny businesses and've been employed for the previous 30 decades. Not one of them are unforgiving as Forex.

    A fantasy? Nope. Difficult, demanding and uncertain? You betcha!

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