Is Forex trading worth it? If so, why?
Why do I trade? Is it to be rich? Do I trade as a hobby? Do I love it? do I hate it?
These questions I've asked myself now for over 11 years. Forex trading has been an expensive venture for me. Back in my first 2 years of trading I lost $30k. I almost went bankrupt because I was naive and greedy. I now have been profitable for over 15 months. Is forex trading harmful? I've seen a countless amount of people lose everything and more trading. Why do we put ourselves threw all of this just for a chance at the profitable 5% club?
What are your dreams and goals in trading? Are they realistic? Are we wasting time? I wanted to open this up to everyone to see if we can get a good discussion on why you trade and why it's beneficial.
Trading is beneficial for me because I love it. I've always loved it even when I was losing. It may have been more of an addiction early on though.I did not like the stress involved but eventually I realized I was stressed because I was risking to much while trading. I trade for a living now. It took me 10 years to get there. It's been worth it but I wish I did things WAY different. If we're still trying to find our way when does trading start to become unhealthy?
My wife hated trading so much. I lost so much and almost lost her. I just about took trading over her. This would have been a huge mistake. Things got bad. I was trading when she wasn't looking and lying about it. I was caught a few times when I thought I was being secretive. It almost felt like I had a porn problem and getting caught in the act. I think she would have liked me being addicted to porn instead! Eventually I stopped trading entirely for about a year. I would still think about it and strategies but I did uninstall all my charts. I gradually came back into trading with a different mindset. I didn't live trade till years later. Long story short....Eventually I started making consistent profit and my wife jumped on board. She was skeptical for months though. I went threw more hard times before I found my way but I do feel like I was one of the lucky few to finally make it.
Don't let your life fall apart like mine almost did all in the name of forex. Realize how important demo trading is and that 1-5% profit per month is VERY difficult but normal to achieve.
What about you guys? Any stories you want to share? Good/difficult times? Have you made it? Still trying to find your way? Lets talk
So many good things have been said here to help people on there journey of thinking in a different way.
Now lets talk a bit about why 95% of people lose in trading.
What are the biggest mistakes that are made? Why do only 5% of traders profit? What needs to change and how can this number grow?
Currencies form an integral part of a diversified portfolio.
Not to mention nearly going bankrupt DESPITE seeing the markets 10 times better than i did when i was simply "profitable"... How strange.. But the only thing i want to comment on for now is what you said about "dont let your life fall apart like mine did".... from my experience with reading about and talking to the only successful trades i know, this seems to be a "pre requisit" for the job... I feel like most flounder about in between in some state of delusion and happily stay there never seeing the truth. Too scared to face themselves or something i dont know.
Ive heard this quote that "if you dont know who you are, the market is an expensive place to find out" its maybe something more along the lines of this... The abis ... It seems like any real trader needs to visit this destination at least once to apprecite the opportunity of everything behind that big hole. Im just rambling now but well done for pushing through, im at the "everyone thinks i have a problem, and im starting to almost believe them" stage lol... But i know what I see. The only rhing that brought me to my failure was my ego... The better i saw it the better i thought i was... This is the great paradox and beautiful line in the sand i beleieve. this is the great irony and tragedy.. The great misconception yet great opportunity... Risk control thats all it is. No matter wtf you see
It looks like you learned from your mistakes. Can you tell what mistakes you made?
Wish you a lot of green pips in the future
This is not a thread to explain what I'm doing just a place for us to open our minds to new ways and possibilities by talking about our past and feature. I honestly didn't start profiting till I threw out everything I learned on FF and other places.
Try making even 1% per month. So many try to make 50-100% per month and lose their accounts. Just try 1% and see how far you can push the 1% profit without having massive loss month after month. A good solid REALISTIC profit is 5-10% per month. Start small and see where it goes. Good luck.
Why do I trade?
To get rich. No pretense necessary.
Is it to be rich?
To gain the knowledge how to rake in $$$ much much more than what I earn from my job in the corporate world. Best description is to create a private cash$$$ atm for me and posterity as long as this forex instrument exist. This knowledge is the goal.
Do I trade as a hobby?
Base on my goal I treat forex activities as an on-going part-time research. Why research ? Because whatever info available today in the public domain of books, videos, forums etc. will not give me the 'stuff'(kid stuff yes, real stuff no.....don't waste your precious time, I told you so) required to attain my goal, not even close. No surprise this.
Do I love it?
What not to love this research work that I do to realise my goal ? Surely YES
Do I hate it ?
YES !!! Why ? Because of the amount of work(making dreams is free, making dreams a reality is not free, it comes with a huge cost) , the sacrifice of time to make progress in this journey. Mountain load of work but the progress forward is miniscule. EVERYTHING(I repeat EVERYTHING) comes from the grey cells between the ears, extreme hard work and lots of luck. Why luck ? You could be condemned to find water in Sahara.
Is forex trading worth it ?
Read what each one speak about it, process it thru your grey cells then you should know what's the worth to the speaker. He/She told you about it's worth to himself/herself.
Yes, if you are armed with the required competency(that is if you understand the competency requirements in the first place) and insanely mad enough to work that hard and you belief you are blessed to be the lucky type to give yourself a chance to achieve this goal. Mostly a resounding NO is the appropriate recommendation. Don't be unnecessary casualty for chasing an impossibility, I know. But if you must be my guest.
Open FF after a few months or years and you'll see those aspiring millionaires replaced by new aspiring millionaires.
Its really a great opportunity we have here with our 50:1 100:1 leverage... Seldom will appreciate it till its gone. But what a ride. I wouldnt change a dam thing... And yea MM is the holy grail, the parameters that you adapt for the next 100 trades based on the power and nature of your entry ... "Everyone" focus on the entry, but the exit is where the money is made. Loss or profit... Ok ill stop now.. Good thread you've started
I love this! So true. I tried to sell one of my profitable EA's back about 2 years ago. I don't sell anymore as I have no need. I stated 5% monthly profit in the ad. I had a hard time making a sale because MOST traders thought 5% was not worth the time. So crazy to me.
I dont even care about money anymore, i know how to get that, funny thing is trading showed me something different. Something i needed to see first.. I never realised before for example what drove me to pick up a guitar as a teenager.. After 7 years trading i now know .. This is the sort of thing you cant learn anywhere else.. But can avoid.
Currency trading has developed a kind of dramatic quality on FF.
Personally, I do not see how trading currencies should be any different from trading interest rates, grains, softs, stock indices, metals or energies.
Loads of great advice on this thread, I might post something a bit later today as I've made a ton of mistakes and lost a boat load of money in the process (from the sound of it like everyone else) even though I'd heard all the advice about risk & money management I basically thought "it won't happen to me".
It's a calling.
Your P&L cannot be the most important thing in your life, BUT trading for trading's sake can be.
It's the love for taking right action as a trader regardless of P&L. Doing the right thing over and over and over again and seeing the results of that.
When you reach your comfort zone, push further. Trading is about learning to love discomfort; learning to be at ease with the uncertainty and complexity. Staying in the present.
Trading is NOT about learning a "method" or a particular "set-up" to use in the market just like how game/pick-up artistry is not about learning a particular "opening" or "technique" to use on a girl. Beginners and newbies DON"T GET THAT. They are looking for that magic pill/quick fix that can send them from being a total loser to suddenly making lots of money or being good with girls. They are unwilling to walk the path -- to gain their own reference experiences and BECOME that person who can trade. A trader.
It is not about memorising or learning a particular method. It is about learning through trial and error combined with some theory of how the market works. It is about understanding things for yourself and actually going through the repetitions called trading. If something doesn't work for you, try something else; all the way understanding that success at the markets will take time. Most aren't willing to put in the effort and hardwork necessary to become a good trader. You don't become a trader by reading trading books or blogs or FF threads; you become a good trader by trading.
When you truly dedicate your life to mastering this and you start to love the process more than the P&L, that's when you will start getting all the profits. But by then the profits wouldn't even matter; money (beyond a certain point) can't buy you happiness anyway. It's the flow state experience that trading brings you that draws you back to your desk day after day. It's something you do for the rest of your life.
Think bigger also.
Excellent topic, and something all prospective traders should read
Well said here. Thanks for post. Honistly it's hard to know who is actually a pro. What does the word pro even mean in the trading world?
It's worth it if you can do it "right". Problem is, what is "right" is different for everyone.
There's a universe built around retail trading. Expertly designed by marketing departments to cultivate a certain mentality that generates a consistent profit; for forums (advertising) and for brokers (making retail traders trade more often because of what they read on forums). Watching people run the same path I did when I started trading from the vantage point of profitability is an interesting experience in self-reflection. Retail traders tend to look at this as a "journey" and build on a foundation of unrealistic expectations and statistically wind up in ultimate disappointment. I forgot where I read it once but retail traders boast some ridiculously high confidence levels with little-to-no success to warrant it. As someone who has never really been self-confident, this has always intrigued me.
I've never personally experienced utter catastrophe in trading. At my worst I had suffered losses of around $2,000 while chasing the dream of being a "day trader". Eventually, I came to the realization that the mindset that leads to all all the searching for indicators and EAs, learning to code, over-trading, over-leveraging, losing money, and taking forex forums seriously was by design. I asked myself:
"How can I ever be consistent when every new thread takes me on a different path?"
"How can I be profitable trading if I'm so invested in coding?"
"What value do forums really have?"
When I first started, I looked at trading as an "experience" and a "journey". I wanted to talk to my friends about it. I thought the fact that I knew what I did about it made me come off as "smart" and reality is just.. significantly different. I never invested any time into demo trading; personally, I found that whole concept to be a farce anyway. On the homefront, my wife never took issues with my trading. Surprisingly, she supported my decision to leave a stable job and start a business which, since she has one of her own, led to her understanding that I likely wouldn't get paid for a significant amount of time. Though I count you as lucky if you can get your wife or husband on board and trade as a team - that's really cool. My wife still looks at this as an alien language and when she asks me "how the market was today?" she can never pay attention long enough for me to completely answer, lol.
I don't really have any "dreams" with trading. I do have the goal of running my business until I either retire or the whole thing collapses, either of which I've long since accepted as realistic possibilities. I too wish I would have done things a little differently along the way but, we live and we learn, I suppose. I look back at my experiences with forums, coding, and accomplishing nothing and I laugh at myself. Even today, as I sift through this place on my lunch break or at night on my phone, I still can't believe the level of absolute rubbish I took seriously.
But, if I had to answer the question "are we wasting our time trading?" I'd definitely say no. Most people here are way too busy wasting time on all the garbage around trading to be wasting time trading anyway so
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