Is it Possible to Make Money in Forex Market

I am a novice player in Forex Market. I started trading without any background and lost some money. Then I decided to learn how to trade! Anyway, I studied some books (Getting Started in Currency Trading, and the John Murphy's Technical Analysis book, and a couple more). Eventually I registered in a Technical Analysis course through Canadian Securities Institute.

I've already tried to develop some trading strategies and tested them on InterbankFx plattform. Apparently one the strategies works well. I'll be done with the Tech Analysis course in 20 days from now but I'm still hesitant if I'll be able to really trade and make money in Forex. Could you give me some hints?

1. Is it really possible to make money for a living through FX market?
2. If yes, how long would it take?
3. Is there a chance that I manage to quit my daytime job and stick to FX market as my only source of income?
4. If yes, how long would it possibly take?
5. Is there some body out there that really makes over $100k per month through Forex trading? If yes, how? Can I reach that point the future?

Please help me to have a better understanding of the world that I'm into right now. I really want to stay and survive.

Thanks,

aparsai,

Welcome, You are just at the tip of the iceburg. Yes it is possible to make a living at this. I have relatives that do this. I don't think they make 100k a month but, they have a house and food to eat. This is not a "get rich quick" kind of thing. The main thing that a person needs is the patience.

I will leave you with that because I am sure the "seasoned" traders here will be able to explain things alot better.

BTW, you are at the best forum on the web. If a person wants to succeed, this is where they will.

the best person to answer those questions correctly is yourself because it depend a lot on the person and how much time they have dedicated to learning how to trade. My answer is 3-6 months but then again, I was lucky enough to have read Vegas' files. So take you time and look up "Vegas" on this forum before you pay for another expensive course.

Well said....well said!!

Hi aparsai,

Great questions, but complex ones to answer because a lot of the answer depends on you, your personality, your psychology, your level of discipline and your account size. So, given all the variablity that lies within you as a budding trader, let me answer in general terms:

Yes, it is possible to make a living trading forex.

Yes, it is possible to make a good living trading forex.

Expect to have "forex" on the brain for 4 to 8 hours each day during your learning phase. This includes reading good books, studying charts, thinking about it and dreaming about it. Think "obsessed".

Expect to be obsessed for 2 to 5 years before becoming consistently profitable (yes, the Vegas documents will accellerate this time). Think of it as getting a college degree since for most people it takes the same amount of time and the same dedicated level of study. Worth it though for the income!

Once you've learned to trade with consistent profitability, and you have compounded your account up to say, $400,000, then a conservative 3%-4% monthly return will yield you $12,000 to $16,000 per month. Is that enough for you to live on? How long that will take will depend on your starting balance and your level of aggressiveness.

Hope that helps give you an overall idea of what you're up against.

Holler if'n you have any more questions and feel free to PM me if you like.

Dial

dialist is exactly right. I have been demoing for almost 2 yrs now. I am "obsessed" with this. I have dreams of my charts, watching the next candle pop up on the screen. I have my charts set to 4 hours and I cannot stay away from the computer for more than 1\2 hour. I am always watching the charts. I love this. I wake up in the AM and before I go get a cup of coffee, I am turning the computer on. When it is time for work, I write down the price on my charts and get to work, I turn on the computer and see what the price does all night. When watching prices, I am reading forums. When I get home from work, I check my charts again. I sleep for about 4-5 hrs a day and the rest of the time ( except when playing with my daughter ) I am doing this. I am OBSESSED and I love it. I am not sure who said it but, they put it this way, if you were going to go to college to be a doctor, it would take at least 8 yrs of college. And like dialist said, think of this learning as college. Right at the moment, I make a whopping $7.50 at my job. I want a better life for my daughter and this is the way to do it. She is my motivation. If it takes me 20 yrs, I will be making some good money at this. FOREX IS LIFE, THE REST IS JUST DETAILS!!

IT is possible and it is better than any stable work at office.

I am saying based on my own experience.

I left my job because of the trading. I have gone long path till I decided it, but my long-run prospects, my systems and my character showed me that trading environment is my home and I can manage to earn for a living.

Great Q's Aparsai, and have enjoyed reading each of the responses.

I had the same Q's when beginning the FX adventure. A couple years before my FX adventure i read a great book called "Safe Strategies for Financial Freedom" by Van K. Tharp ( a full time trader ). Spured on by its teachings, my wife and i had begun to bring down what V.T. calls one's "Financial Freedom Number". The book is a great read, easily found at most book stores or Amazon.

With that book/teaching in mind i share the following 2 pips:

I think one of the deciding factors is how much money will one need to live the lifestyle they have chosen? Each of us will have our own response. I'll share mine quickly just as an example, and this is not, i realize, for the "typical" individual, but then the world would be pretty boring if we all lived the same life?

I've done the full gammut of management, research grant admin, and related and after reading V.T.'s book about three years ago sat down with my wife and we looked at our liabilities to see how we could lower our monthly living expenses. I didn't want to look at how i could increase our income, just lower our outgo. And before one thinks we drive an old beater...it is a nice Volvo X70 cross country, so i'm not talking about starving here...

So my wife and I lowered our outgo to about 1200 dollars a month, that includes everything but food. Then we calculated how many hours i actually needed to work to bring home twice that each month...and the answer was about 20 hours a week. At which time i stepped out of management and down to working 25 hours ONLY during the Asian session (4pm-9pm) weeknights (due to my seniority i could request this "lousy" nite shift - nobody else wants to work it!). I wake up at 5ish Pacific Time, i trade off 15m/30m/4hr charts and also follow the Vegas Daily for an exit/entry "indicator" as such. My day is filled with study up until about 2ish or so when my wife arrives home and we'll take a walk on the river in our back yard or chat a while. Then she will take over the charts/tradestation after i've briefed her on the "trading day" and she will watch the Asian session.

As said in an above post, expect to spend some quality time in chart reading/watching and studying everything that pushes your buttons on trading. Think of it as your college degree. Don't get anxious, and have in mind that it might take 5 or so years. What else could do for any of us, what this opportunity has the ability to do and give us the freedom after we have earned our "degree"??

In a couple years or so we will move into an RV and possibly be National or State Park Hosts (there is a nice State Park down the road to begin the "Hosting" adventure without leaving my current employment) and trade from stellite dish on the RV-roof since the "nest" will be empty. This is our dream we talk about and hold before us each day in fun dream-time-talk.

Now not everyone can live like this, but the point i'm sharing is that one can become a "full time trader" only when their trading income exceeds their "Financial Freedom Number". . .

So in all the study time, getting one's financial liabilities down to a bare bones minimum for a chosen lifestyle is probably a good addition to the mix ? ?

aparsai,

A lot of us started in the same boat as you. I remember sitting in my hotel room and watching the forex made easy infomerical ... I was looking for a way to make an extra income and forex came to my rescue ... so I thought!

It turned out not to be so easy, but if you are willing to work for it, you will get what you put in.

1. As most answered, yes u can make a living. I currently have a nice job, so I trade at work. Two checks are better than 1, but I trade small sums because I'm planning to manage my retirement account when I leave my employer.

2. It took every trader here a different amount of time to build up what it takes to trade.

3. Don't quit your job just yet. First learn what it takes to make in this game.

4. Again ... time is up to you.

5. I don't make $100k per month in forex, but that would be a nice goal for me one day. I'm trying to avoid the trap of thinking big now ... that's how most get into trouble real quick in this game.

Good luck to you ....

Amen to that Pipex. I remember reading once that if your position size is large you can actually move the market. I've done that! Whenever my position size gets above a certain number relative to my account, the market always begins to move......against me! The higher my leverage, the faster it moves......against me!

Now I ain't ignernt. I do know that "moving the market with a large size" is talking about major banks and players with billions to play with. But it sure seems like I had that power back when I was still being greedy.

Dial

The tough early times in trading will make the good times all much sweeter later on.

You must remember a few words:

1. Discipline
2. Patience
3. Courage

I listed them in order for a reason.

The answer to all of your questions is YES. It can be done, but it will not happen over night. It will take good old fashion hard work to get where you want to be. You must believe that you can succeed and have desire to be successful.

AMEN to that

I'm setting conservative goals to begine with... I'm doing a practice account and trying to average $100 per day (5 day weeks, $500 / week) until I have saved up a real life sum of at least $2,000 (probably 12 - 16 weeks) to give it a go. If I cannot sustain the average gain of $100 per day by the time I get $2k saved up I will continue to practice until I can, and my initial funding will just keep growing until I know what I'm doing.

Just bought two books on technical analysis and I think charts almost all day and dream them at night I talk my co-workers ears off about this stuff since I find talking about something makes me recall it better.

I also think one can make a living from FOREX, my goal income is on the low side but I don't aspire to live in a castle and drive 7 different Ferarris or anything

Thanks so much for replying to my questions. Now, I'm confident that I'm on the right track but I need to be more patient. I'll do my best to be more actively involved in discussions and ask futher questions as I go ahead.

Aparsai

I am normally reluctant to post on here because last time I posted I got bombarded with questions that I didn't have to time to answer.

You can make this a living if you want. Alot of people will tell you this system and that , but you have to remember that each persons brain works differently and only you can tell what works for you. The person that originally showed me forex , makes a substantial amount each month from forex , more than a 65 year old guy (my teacher) can spend , but didn't work for me. I ended up using a system that was designed for stocks and overlayed against what I had been taught and the 2 of them together really made serious points. There was a study done in New York about 12 years ago with 20 students, they were given 5 different trading strategies , the amazing thing was that a different 20% exceled in each trading strategy , meaning that each persons brains work slightly differently.

You have to follow the "Bruce Lee" method of learning. His style , was as he said , "All styles and none" , which is to say that he learn't them all but didn't use a lot of it , but understood the thinking behind it and the thought. I know an awful lot about techincal analysis , but for my trading I use very little of what I have learn't , but i still understand everything else.

I would make sure you learn as much about your "traders mind" and the psych as you can , because over time this is 10 times more important than the technical analysis , and also risk management which is what actually makes you money , not the analysis of the charts. For example , I was reading a book called "Trading in the Zone" by Mark Douglas , all the your traders mind , in there he mentions about a "Risk Free Trade" , basically having a trade that you are unable to loose money on and the fact that this totally changes your thinking , you become a lot more objective and a lot clearer and the levels of emotions are reduced considerably. I basically added this on to my strategy of having a zero stop after being profitable by 20 points , I had a greater number of non profitable trades (ie , not making a thing), but the level of successful trades (not loosing anything) went to the 90% level of all my trades , and the average number of points profit per trade increased , even though I was getting a higher proportion of trades being stopped out for a zero.

If you are really serious about doing this and making very decent cash , I would become a Bruce Lee and learn as much as you can , without accepting any "guru" with this system or that , you will go in a circle and feel overloaded from information and then you will simplify your strategy and risk management and get to the next level. The sooner you "be your own man" the sooner you will get to make a decent living out of it. You should be able to do it in 2 years , if you don't look for short cuts and are willing to open your mind to new ideas but at the same time not accepting them as fact. Remember that this system may work now , but eventually it will stop working , but the market's fear and greed mentality will never change. It is the same now as when the Japanese started the first futures market in the world for rice over 500 years ago.....

From my own development and talking to other professional traders over the years , your progression should roughly follow this route-

1) Excitement as finding the pot of gold that will solve all of lifes problems
2) Following a "gurus" strategy without question
3) Becoming disenchanted when you realise that the system has faults
4) Thinking that if you learn more things will make it easier to get trades correct
5) Learning every piece of technical analysis you can looking for something that will give you 100% of correct trades
6) Having technical paralysis , having 6 different things giving conflicting signals and not taking a trade at all and then beating yourself up for not taking it and missing points when your "gut" feeling told you it was going to go there
7) Concentrating on one thing and having it go correct all the times but getting stopped out on them at the bottom of a pullback
8) Lightning bolt ! Realising that the reason you are not successful is not because of your strategy , but your mental state and the willingness to completely accept risk
9) Understanding that the market is not an absolute and that it is a graphical representation of the collective thoughts of in infinate number of traders all thinking indepentantly and that unless you know the reasons why the market reacts to things you will never have any faith in the technical indicators you are using (making a new low in stocks, means EVERY holder is now loosing money , etc etc etc )
10) Accepting the market as a whole and that anything can happen and only your risk management will stop you doing serious damage and that there is always tomorrow and another trade and there is no need to worry if you miss this one.

I am a professional trader and after many years of trading from home , have recently decided to work for a major trading house again as I am going bored and lonely at home. The things that they asked me in the interview were not what my trading strategy was , but all about my mental space and risk management , because to them that was more important than your strategy or your win/loss rate. That should tell you something......

I know this post doesn't tell you the magic formula to press this button or that and make money, but I hope this helps you anyway.

Have a good day !

Bear

Hi Aparsai

Welcome. It is certainly possible to make a very good living trading forex. Please re-read what Dial wrote and i quote "Expect to have "forex" on the brain for 4 to 8 hours each day during your learning phase. This includes reading good books, studying charts, thinking about it and dreaming about it. Think "obsessed".

Trading is a journey and you will find out more about yourself in the next few days and months. There is no secret/magic formula to success as a trader. All you really need is loads of hard work, a lot of patience, Iron Discipline (emotional content), a great forum (like this one)and above all you have to enjoy what you are doing.

Happy trading
MM

Word of advice, take post #15 of this thread by Bear73 and copy it and paste it in a word processing program. Read it, understand it, and read it again. Post #15 is what trading is all about. You may not understand it now, but with more experience and as time goes on in the learning process, this post will become crystal clear.

Bear73,

You are amazing. I'm really happy that I posted those questions. The steps that you mentioned are almost the same as what has happened to me so far. It will definitely helps me to draw a brighter future in trading. I do beleive in what you said and can't explain how thankful I am by your amazing answer. I'll save it somewhere safe for later use.

I also need to thank Dial and many others.

Thanks,
aparsai

Aparsai,

I think everybody answered your questions in full details and they all said the same thing, so I am not going to repeat what they said...I just wanted to say that if you are doing what you like to do, for sure you will make money over the long haul....Just don't think too much about the money, think about your trading decisions and how you can make good trading calls and decisions and money will follow...


Thanks,

Nader

Agree!! Trade to trade well....the money will eventually follow!!