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I hate forex - the truth about gains in Forex

  • #21
  • May 8, 2008 1:22am May 8, 2008 1:22am
Excelent post FXEZ .

We all need to focus on our strength to excel in our businesses
  • #22
  • May 9, 2008 8:27am May 9, 2008 8:27am
iam very new to forex and hardly qualified to give an opinion on this.iam still demo trading a 5k account but from my experience so far,the story isnt gloomy. i think with proper money management rules, 50% return is possible or is demo a lot different from live? if i start a demo of 5k today, and tommorrow,my account balance reads 10k,isnt it possible to keep doing the same trading style for a month and keep gaining? maybe there is something am yet to know. iam planning to start live trading next week.
  • #23
  • May 9, 2008 8:59am May 9, 2008 8:59am
Quoting abasiakara
if i start a demo of 5k today, and tommorrow,my account balance reads 10k,isnt it possible to keep doing the same trading style for a month and keep gaining?
oh dear...for how long have you been trading that demo? do you plan to start trading next week with 5k as well?
  • #24
  • May 9, 2008 9:21am May 9, 2008 9:21am
Quoting abasiakara
iam very new to forex and hardly qualified to give an opinion on this.iam still demo trading a 5k account but from my experience so far,the story isnt gloomy. i think with proper money management rules, 50% return is possible or is demo a lot different from live? if i start a demo of 5k today, and tommorrow,my account balance reads 10k,isnt it possible to keep doing the same trading style for a month and keep gaining? maybe there is something am yet to know. iam planning to start live trading next week.
This is thread for hating forex, you seems to love forex
and yes you are funny......
  • #25
  • May 9, 2008 9:26am May 9, 2008 9:26am
Quoting abasiakara
iam very new to forex and hardly qualified to give an opinion on this.iam still demo trading a 5k account but from my experience so far,the story isnt gloomy. i think with proper money management rules, 50% return is possible or is demo a lot different from live? if i start a demo of 5k today, and tommorrow,my account balance reads 10k,isnt it possible to keep doing the same trading style for a month and keep gaining? maybe there is something am yet to know. iam planning to start live trading next week.
Making 50% is not a question of money management, it's a question of finding the holy grail. I dont think it is possible to make 50% monthly as if it was possible, we would have a serious problem with one lucky dude able to but the whole planet in a few years.

Just make the calculation, with 50% monthly return, the lucky dude would have his account grown by 130 time in one year and by 2184164 time in 3 years. Do you realise how many time that would round in 10 years ?

Money management will only work for risk management (limiting your drawdown) and compounding (growing your account quicker).

Quoting Syafi
This is thread for hating forex, you seems to love forex
and yes you are funny......
I had one pending order today. Hit by two pips, reversed, SL hit by one pip (-60 pips) and reversed again (would be in gain for 30 pips atm)

I hate that.... Definitly !!!

Well in fact it makes me laught out of hatred i guess...
  • #26
  • May 9, 2008 4:39pm May 9, 2008 4:39pm
Quoting Cdawg
Well i think % returns change according to how much your are investing and your risk appetite.

If i am am only investing $500 dollars to start with, um 10% (monthly) is not worth my time and effort for $50 bucks a month (other than learning how to trade forex).

Change that to $500k to start, obviously 2% a month would be great ($10k) for most.

But who the heck has 500k sitting around, i know i dont!!

I am not trying to be mean, but how do you expect to start a business on only $500? And if you do, do you expect it to return a living right away? A little far-fetched.

I understand the under-capitalised part, I really do. And that's what keeps most retail traders in the category of "liquidity".

However, a "paltry" 4% a month on said $500 account in 10 years is 59k. Not a bad return. Besides, you can always add to the account as time goes on. Just like your 401k.

Clockwork
  • #27
  • May 9, 2008 4:45pm May 9, 2008 4:45pm
Quoting melpheos
i'd be more than happy with 2% weekly...

At the end of the year that would be compounded 190%... That sounds low but with 1% risk/trade that is pretty good.

3% would be awesome
This kind of attitude will come to serve you well as time goes by. (And your account compounds over and over.)

The only people getting 50% returns a month, every month.....are the ones in the commercials for the "newest" system!

Clockwork
  • #28
  • May 9, 2008 10:35pm May 9, 2008 10:35pm
the biggest misinterpretation of the Market could be summarized in one sentence

"trying to achieve speculative gain from the market volatility"

ppl failed to understand that the goal is not to achieve a certain percentage of your account but is to ACCEPT what the Market let you to take. ppl think that they can work really hard and in the end we all can understand the market movement.

in real business we find this to be true most of the time

many store owners, service providers, or any other small business owners understand this that it is not the income derived from the activity that is important. but they know for sure that people need their service and they can make money out of it. it doesn't matter how much they can sell per month as long as people still come to the store and generating income for them. they mostly judged by reality not projection. if something new come to the market, they will test it and ask what're their customers think about it.

if you think of the Market as something that you can exploit, then you need to be someone who has the insider info. there were some cases regarding this issue in stockmarket, as a forex trader, if you knew 100% sure that the ECB would interfered 2 weeks ago based on your insider's info you will surely be rich from forex trading.

in most cases we dun have that kind of access and that's leave us to the fact that we have to ACCEPT what the Market generously willing to give us.
  • #29
  • Edited 7:03am May 10, 2008 6:52am | Edited 7:03am
Quoting abasiakara
iam very new to forex and hardly qualified to give an opinion on this.iam still demo trading a 5k account but from my experience so far,the story isnt gloomy. i think with proper money management rules, 50% return is possible or is demo a lot different from live? if i start a demo of 5k today, and tommorrow,my account balance reads 10k,isnt it possible to keep doing the same trading style for a month and keep gaining? maybe there is something am yet to know. iam planning to start live trading next week.
Hi Abasiakara

Demo trading is very different from live trading. Do not be fooled into thinking you can easily double your account every month let alone everyday or week. If you could double your $5k account monthly, you will have $10,240,000 at the end of the 12 month period! Do you really think that is realistic !? If you do, I would suggest you don't start live trading just yet because it will surely lead to your account being blown in no time. However, if you still intend to live trade soon, then stick to a sensible 2% to 3% maximum exposure of your account at any one time. At least this way, it'll give you a fighting chance while you get to face the harsh realities of trading and develop a more realistic expectation of the kind of income that can be generated once you become a skilled trader.
My advise is " Learn how to trade and not gamble !" . Have realistic expectations of what kind of returns one can get from trading according to one's abilities. Newbies dream of easy riches from trading but will always find that dream shattered, turning into a terrifying nightmare when they blow one account after another. I speak from experience. It is better to learn how to trade and get rich slowly in a sustainable manner.

Hope that helps!

Bakuli
  • #30
  • May 10, 2008 7:14am May 10, 2008 7:14am
Quoting melpheos
Making 50% is not a question of money management, it's a question of finding the holy grail. I dont think it is possible to make 50% monthly as if it was possible, we would have a serious problem with one lucky dude able to but the whole planet in a few years.

Just make the calculation, with 50% monthly return, the lucky dude would have his account grown by 130 time in one year and by 2184164 time in 3 years. Do you realise how many time that would round in 10 years ?

Money management will only work for risk management (limiting your drawdown) and compounding (growing your account quicker).



I had one pending order today. Hit by two pips, reversed, SL hit by one pip (-60 pips) and reversed again (would be in gain for 30 pips atm)

I hate that.... Definitly !!!

Well in fact it makes me laught out of hatred i guess...
This is a good example within itself. If one were to find the "holy grail", the profit margin would not remain exponential as they would quickly hit a top due to market liquidity. For example, first month you start trading with 10 full lots, second month 15 lots, third 22 lots, etc... It would get to the point where the market is not liquid enough at one given point that slippage would be a huge problem potentially eating into your profits. So even if one were to make 50% a month it would only last for a short bit, it would get to the point where the individual would have to determine the max # lots that they can easily sell at any given point and stop at that number. So to start things would grow exponentially for a short period of time, at that poing their growth would dwindle down from an exponential status to a linear progression. Even with this happening there will still be good and bad months as each trade provides different results. If their system works 100% of the time the only thing they can guarantee is a 1 pip profit each time, after that there's no knowing how far the market will move in one direction and for how long.
  • #31
  • May 10, 2008 7:58am May 10, 2008 7:58am
Talk with this topic will live forever

May I suggest one book by Kathy Lien and Boris S.

"Millionaire Traders"

It is a book of success stories of regular traders who made millions from as small as $1000. Those traders were not only FX traders but also stocks and commodities traders.

I read only the first chapter since I'm not interested on "being lucky" repertoire. But I think it is important to note that one of the forex master in that book claimed to achieve an average of 20% return per year and they have been trading for at least 15 years.
  • #32
  • May 12, 2008 6:06am May 12, 2008 6:06am
Hi Bakuli,
Thanks a lot for giving me a new perspective to forex trading.many thanks too to FxRichard. That bit on exponential and linear progression opened my eyes. I will still go ahead with my live and tell the story one month from start date.It might not be a fantastic result but i'll definitely survive. Afterall,iam still learning!
  • #33
  • Feb 6, 2009 4:42am Feb 6, 2009 4:42am
I think you guys make it very hard trading FX and very tight to collect profits, its enough to understand the impact of the news its can deliver you from 30 granted pips up to 150 up to 300 pips which is mean if you open trade with 10k you can make 00$ ...

also a good method the breakouts work out if 5 times failed 10 times will success and get you a good income.

A good thing I did read and very useful is to watch chart on different time scales as 5m 15m 30m 1h 4h 1d.

Wish you all success in your trades
  • #34
  • Feb 6, 2009 10:56pm Feb 6, 2009 10:56pm
I hate reading this forum...

When i started, (2 months ago) I took $1000, doubled it in a night (using 1 lot)- and I have been consistantly banging off 120-150 pips every night (gbp/usd) using a breakout method/ drawing my own Support/Resistance, laguerre using bigger lots now, Manipulating the london/us sessions only.

I must be some freak accident, im sick and tired of reading this shit.

-logging off and going into my own little profitable world.

Oh yeah and get this.. IM USING A 5 MINUTE TIMEFRAME!!!!!! This must be a real shocker for those that have been trading for YEARS here, saying its all 'noise'...
lowest draw down possible please.
  • #35
  • Feb 8, 2009 12:44am Feb 8, 2009 12:44am
Quoting ehrek
I hate reading this forum...

When i started, (2 months ago) I took $1000, doubled it in a night (using 1 lot)- and I have been consistantly banging off 120-150 pips every night (gbp/usd) using a breakout method/ drawing my own Support/Resistance, laguerre using bigger lots now, Manipulating the london/us sessions only.

I must be some freak accident, im sick and tired of reading this shit.

-logging off and going into my own little profitable world.

Oh yeah and get this.. IM USING A 5 MINUTE TIMEFRAME!!!!!! This must be a real shocker for...
Just curious....
  • #36
  • Feb 8, 2009 1:57pm Feb 8, 2009 1:57pm
Quoting Syafi
People say We can easily double/triple and
even make 1000% our money investing in forex everyday .

What I get since last 4 month is only 5-20% / month. .
last year was even worst, I get -20% to breakeven..

Whats the real problem here?
Me ? or the expectation ?
Or i need more time to ever double my money every single day until forex is closed for ever because I get all the cash in the world !

=================================================

Do you hate forex ?
Did you enter forex...
Hm.. I think you hate it because you expect too much. Option 2. At first, expect low, really low. Im a noob but I still expect nothing spectacular in the beginning.
  • #37
  • Feb 8, 2009 2:16pm Feb 8, 2009 2:16pm
i love forex....

started 6 years ago with $4000 and never added to my initial deposit and now average more than that per month and the last 6 months more than double that per month.

forex is one way to make mucho dinero in this catastrophic economic environment while everyone else loses theirs. getting richer while everyone gets poorer multplies one's relative wealth.

one can make good money in good times and great money in bad.
  • #38
  • Feb 8, 2009 6:21pm Feb 8, 2009 6:21pm
Quoting Fx24k
i love forex....

started 6 years ago with $4000 and never added to my initial deposit and now average more than that per month and the last 6 months more than double that per month.

forex is one way to make mucho dinero in this catastrophic economic environment while everyone else loses theirs. getting richer while everyone gets poorer multplies one's relative wealth.

one can make good money in good times and great money in bad.
Thats very impressive. What kind of methodology do you use, if you dont mind..
  • #39
  • Feb 8, 2009 7:27pm Feb 8, 2009 7:27pm
started like almost everyone else with technical/day/scalp trading but transitioned into fundamental/swing/long term trading.lot less stress and more profits plus don't have to be glued to the screen when the markets open.
do have an economics degree and traded stocks for years before trying forex so understood how the markets work so i may have had an advantage over others who start out new.
tried every system and strategy and learned to just keep it simple.i study charts for spotting trends,entry/exit points,etc., but base most of my decisions on fundamentals.
even traded penny stocks for a while and forex is a lot safer.
  • #40
  • Feb 8, 2009 9:55pm Feb 8, 2009 9:55pm
5%-20% a month is a short term goal. In the long run, the more you trade, your average return will reduces dramtically. Even if you are able to make a minimum of 5% a month, you are looking at 60% ROI, thats awesome by any standard.

I seriously think a consistent 5% a month is huge stretch of your imgaination, but its possible!

Happy trading!
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