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Is trading FX for living a myth?

  • #41
  • Jun 20, 2007 10:15am Jun 20, 2007 10:15am
I think it's doable as long as you have some decent size account. Minimum $10,000 dollars. I hit one or two good trades a month and makes about 1000 to 2000 dollars using 5 lots. I used to make a lot more when I was going in about 10 to 15 lots at a time. But now the amount that my clearinghouse let me trade is maximum 10 lots and that's not all that appetitizing. I mean, once I place 5 lots, I don't feel like going in anymore. Complete emotional based decision and it's a big NO NO, but who cares? But I think if you devote your time to it you can do it better. I personally don't even feel like devoting my time on it, so I just trade whatever (sometimes on the trend line, on the news or on fundamental reasons). After 2 years of trading, I have general idea of how to trade. I think I can do better but it's too much work to wake up early in the morning since US hour is pretty much dead. I wake up once in a while whenever I feel like making extra bucks. Since trading on trendline takes the least time, I trade on that nowadays.
  • #42
  • Jun 20, 2007 10:37pm Jun 20, 2007 10:37pm
Quoting WHTenn
I have been doing it for 5 years now.... it can be done.
Thanks, I will try my best to trade.

______________________________
Living needs faith!
Living needs faith!
  • #43
  • Jun 20, 2007 10:41pm Jun 20, 2007 10:41pm
Quoting milkcake
I think it's doable as long as you have some decent size account. Minimum $10,000 dollars. I hit one or two good trades a month and makes about 1000 to 2000 dollars using 5 lots. I used to make a lot more when I was going in about 10 to 15 lots at a time. But now the amount that my clearinghouse let me trade is maximum 10 lots and that's not all that appetitizing. I mean, once I place 5 lots, I don't feel like going in anymore. Complete emotional based decision and it's a big NO NO, but who cares? But I think if you devote your time to it you can do it better. I personally don't even feel like devoting my time on it, so I just trade whatever (sometimes on the trend line, on the news or on fundamental reasons). After 2 years of trading, I have general idea of how to trade. I think I can do better but it's too much work to wake up early in the morning since US hour is pretty much dead. I wake up once in a while whenever I feel like making extra bucks. Since trading on trendline takes the least time, I trade on that nowadays.

Dear milkcake,

Thanks you for your sharing.

You have 2 yrs of trading experience and have general idea of how to trade.

May you share a little bit of your general idea? Thanks again.

_______________________
Living needs faith!
Living needs faith!
  • #44
  • Jun 21, 2007 11:34am Jun 21, 2007 11:34am
A question to all full time/successful traders:

What time frame charts do you use and how long your trades last?

thanks.
  • #45
  • Dec 20, 2007 9:00am Dec 20, 2007 9:00am
Quoting FXHolic
A question to all full time/successful traders:

What time frame charts do you use and how long your trades last?

thanks.

I use Daily, Weekly, 4 hour, 1hour and 15 min. I actually have 3 different trading systems that I use so I am paying attention to all of them.
It is hard to say which is better or more important though.

here is an example.... I trade a long tern stratagy (weekly/daily) itis long term Buy the EURUSD yet my 4hour/1hour stratagy tells me to short the market. see what i mean by whichis most important!

the point is I make money in all stratagies. all give me profits or I would not be trading them

learn a system use small lots and start working on other means for additional pips. I keep divesified don't put all your eggs in one basket!

hope this helps you out.
M4X............ Hedging My Way To Profits!
  • #46
  • Dec 20, 2007 9:32am Dec 20, 2007 9:32am
Quoting FXHolic
A question to all full time/successful traders:

What time frame charts do you use and how long your trades last?

thanks.
I use Daily - 4h or 4h - 1h timeframe charts.
  • #47
  • Dec 20, 2007 9:38am Dec 20, 2007 9:38am
Ok, I have been looking at this thread for a long time. It is not about trading FX for a living. Think about trading and investing and speculating for a living.

I have a business and I have real estate and I have FX trading and I have bond fund holdings and I have some Stock holdings and I have cash in a money market.

You have to think about hidden risk. If all your investments/speculations are FX, you are really only in one trade. This is called systemic risk... You must deversify and spread out your risk.
  • #48
  • Dec 20, 2007 10:05am Dec 20, 2007 10:05am
Quoting smjones
Ok, I have been looking at this thread for a long time. It is not about trading FX for a living. Think about trading and investing and speculating for a living.

I have a business and I have real estate and I have FX trading and I have bond fund holdings and I have some Stock holdings and I have cash in a money market.

You have to think about hidden risk. If all your investments/speculations are FX, you are really only in one trade. This is called systemic risk... You must deversify and spread out your risk.
Yes Scott. Trading Forex should be considered one little piece of a bigger plan.
I've always thought most people would be much better traders and make more if they expected less.

If someone starts with 5 or 10k and makes a reasonable return, say 20% per year they're not satisfied. Not if they're focused on making a living from Forex. I think that's what causes reckless trading and such a high failure rate--trying to wring too much out of this. Yes, we should have worthy goals but they have to be reasonable.

If more time was focused on trading well and less on trying to trade for a living there would be more full-time traders.
  • #49
  • Dec 20, 2007 10:10am Dec 20, 2007 10:10am
  •  mld
  • | Joined Sep 2007 | Status: Pips Raining Cats & Dogs | 85 Posts
Quoting FXHolic
A question to all full time/successful traders:

What time frame charts do you use and how long your trades last?

thanks.
5-15 time frame - upto 1 hour at most
  • #50
  • Jan 3, 2008 10:38pm Jan 3, 2008 10:38pm
Quoting WTB
No, living off forex trading is not a myth.

What it is INDEED a myth is newcomers' believes that they will be able to turn a 5K account into 100k in their first year.
+1
  • #51
  • Edited 6:53am Jan 4, 2008 6:10am | Edited 6:53am
After 3 years of trying to trade forex to make a living i can honestly say i couldnt do it.

Maybe some people can. At most i can break even. Forex is just to volatile market.

You get to kinds of people on this forum.

1. Those who are honest enough to admit they dont make a living trading forex.

2. And those who lie when they tell you they are making a living trading forex.

I could be wrong, but my commen sense tells me that a professional trader would not hang out on a site like this while getting slammed by newbies and other inexperienced traders.

best of wishes to everyone trying to make a living trading forex.

Lemme just quantify with what i mean trading for a living. I do not talk about the trader that sits in Zimbabwe and when he makes $10 a month he earns ZM 1 000 000. I am talking about making enough money so you can pay your bond and car and support your family and go on an annual holday anywhere in the world.
  • #52
  • Jan 4, 2008 6:48am Jan 4, 2008 6:48am
My 2 buddies Gnat and NOFX are neither of these and they both trade for a living. I hope to join them soon.

Ever think that maybe if your sitting in front of charts all day a little light relief and a chat on a forum with some like minded people would be quite appealing?



Quoting Time
After 3 years of trying to trade forex to make a living i can honestly say i couldnt do it.

Maybe some people can. At most i can break even. Forex is just to volatile market.

You get to kinds of people on this forum.

1. Those who are honest enough to admit they dont make a living trading forex.

2. And those who lie when they tell you they are making a living trading forex.

I could be wrong, but my commen sense tells me that a professional trader would not hang out on a site like this while getting slammed by newbies and other inexperienced traders.

best of wishes to everyone trying to make a living trading forex.
  • #53
  • Jan 4, 2008 11:20am Jan 4, 2008 11:20am
Well said Cryten...
  • #54
  • Jan 4, 2008 4:24pm Jan 4, 2008 4:24pm
I'm curious as well to learn the proportion of full time traders who use the dailies or higher. It seems to me that starting with a high timeframe such as the daily is easier for a beginner, especially if they have a full time job. That's my approach to starting.
  • #55
  • Jan 4, 2008 9:50pm Jan 4, 2008 9:50pm
Quoting shadeslay
I would say it's doable, I know people that trade other markets for a living. So it has to be doable on the FX market. I've found indicators, especially those that indicate over bought and sold. Aren't as effective, because of the trendiness of FX they give a lot of false signals. They do help with trend strength, but I've had the best success with price action and support 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 most times.
using ADX indicator to see how many buyer and seller are.

tried this with the big news. so you know what happend.
  • #56
  • Jan 4, 2008 10:14pm Jan 4, 2008 10:14pm
Quoting smjones
Ok, I have been looking at this thread for a long time. It is not about trading FX for a living. Think about trading and investing and speculating for a living.

I have a business and I have real estate and I have FX trading and I have bond fund holdings and I have some Stock holdings and I have cash in a money market.

You have to think about hidden risk. If all your investments/speculations are FX, you are really only in one trade. This is called systemic risk... You must deversify and spread out your risk.
Spot on.

If "Trading" is your business.
I think of it like this, the forex is just a "profit vehicle". You're buying and selling stuff after all aren't you.
Funds/bonds/cd's/stocks/real estate/b-b-b-a-a-anks {sorry, choked on that one a bit} etc. are "investment vehicles". That's where you put your forex profits, and "make your living" from.

I could be way off, but hey, it works for me.
Carpe Divitiae
  • #57
  • Oct 4, 2009 12:44pm Oct 4, 2009 12:44pm
Quoting Faith
I am new to FX, but I have traded stocks for few years.

I think I know most of the TA indicators and some risk management, but I cannot have an acceptable result in demo FX account.

Is trading FX for living a myth?
(I mean trading for living like having a job; I do not mean trading for rich.)

Can anyone give me some insight?
http://kedaii.com/FS/images/12.gif
Thanks in advance.

________________________
Living needs faith!
it is possible but you need to put in effor and dedication
  • #58
  • Oct 4, 2009 2:14pm Oct 4, 2009 2:14pm
Quoting Faith
I am new to FX, but I have traded stocks for few years.

I think I know most of the TA indicators and some risk management, but I cannot have an acceptable result in demo FX account.

Is trading FX for living a myth?
(I mean trading for living like having a job; I do not mean trading for rich.)

Can anyone give me some insight?

Thanks in advance.

________________________
Living needs faith!
Yes you can do it. I do it on a daily basis for my employer.

1. Pick a currency. (go with EURUSD because of the low spread)
2. Open 4 charts using 15M, 1H, 4H and 1D timeframes.

Buy signal

1. The trend on 4H and 1D is UP
2. The 15M and 1H are OS.

Sell Signal

1. The trend on 4H and 1D is DOWN
2. The 15M and 1H are OB

Use a SMA of 200 for the trend.

Run it on Demo account first to get a handle on TP and SL. Dont risk more than 3% per trade.

You wont win every trade due to the odd trend reversal but you will catch > 80%.

It really is that simple. Good luck.
  • #59
  • Oct 4, 2009 3:06pm Oct 4, 2009 3:06pm
Quoting scooby-doo
Yes you can do it. I do it on a daily basis for my employer.

1. Pick a currency. (go with EURUSD because of the low spread)
2. Open 4 charts using 15M, 1H, 4H and 1D timeframes.

Buy signal

1. The trend on 4H and 1D is UP
2. The 15M and 1H are OS.

Sell Signal

1. The trend on 4H and 1D is DOWN
2. The 15M and 1H are OB

Use a SMA of 200 for the trend.

Run it on Demo account first to get a handle on TP and SL. Dont risk more than 3% per trade.

You wont win every trade due to the odd trend reversal but you will catch...
No way is it ever that simple.

I googled 'risk % per trade', and the first thing I got was a CMS article on trading psychology and how it affects trading a plan, especially losses it accrues.

ANY plan at the level of yours will earn nothing without this.
  • #60
  • Oct 4, 2009 3:12pm Oct 4, 2009 3:12pm
Quoting ha-pattern
No way is it ever that simple.

I googled 'risk % per trade', and the first thing I got was a CMS article on trading psychology and how it affects trading a plan, especially losses it accrues.

ANY plan at the level of yours will earn nothing without this.
Utter Rubbish.
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