Once you can trade profitably are you rich?

Hey

One last question:

Would it be fair to say that after years of learning and practice once someone can trade profitably are they potentially rich?

Or would you find it hard to get started if you had little capital to play with?

Thanks

depends on your definition of rich, and starting capital. but if someone can learn how to consistently trade profitably after years then i would say they are "well off" and certainly on the highway to "rich".

If you can consistently make good returns, then being rich will be a factor of your spending and saving habits. That is difficult for some in itself, yet even more difficult is learning to trade profitably. Dare I say it, the true key to learning to trade profitably is in my opinion endurance. If becoming "rich", having free time, and living an easy life are your sole motivations, it will be more than difficult to succeed or learn this craft. Like most self made rich men in any field that start from scratch, you have to really love what you do and strive for extreme professionalism. You have to get dirty and move beyond the grail formulas and systems, you have to understand everything there is to know about your field, and you have to stay dedicated to your professional goals, even through the times where it may seem you have hit a plateau and cant get past your current level. Without a certain love for the field and for learning and countless hours, I doubt one in that position will ever get there through trading. You are much more likely to go broke than to get rich, in fact, most go broke at least once before turning that corner, just part of the growing pains. Again, this is just an opinion.

There is already a thread here on this topic.

One question you should be asking yourself is; "is it possible for anyone to succeed in Forex?". Answer: If there were no successful traders, forex would have been long dead. Like in any business, you may not also succeed in Bank Robbery if you do not know how, and you may never know how because there is no officially and legally recognised school for that except you learn it from jail. The only way to know how to trade Forex is to school yourself sufficiently in order to get thorough knowledge, and with willingness, passion, practice, patience, endurance and diligence the sky's the limit. According to how God made man, human possibilities are limitless. You just have to discover the right key/s to open your door/s. If you are finding it difficult in doing something, then you do not yet know how to do it. The only way to know how to trade Forex is to learn how to trade Forex.

As for comparing robbing a bank with FX trading, You need to make a really big bank robbery to get a net personal share of US$100,000 out of the rest of the team and you need to make this big bank robbery every year consistently without also regularly spending some time or all rest of your lifetime in jail, and you will have to loose all the money if caught (you definitely will get caught). In Forex you can get at least US$100,000 in a year beginning with US$1,000, the next year you can diligently turn US$100,000 to US$1million in lesser time.

Try putting down the self-help book for a bit.

what do you think the best way to learn forex?? I have been looking around here on forexfactory.com and I see a ton of people that are serious about trading for a few months, make a few good post, and then never come back to this website, I would like to hear peoples thoughts on this.

Thanks

Happy 4th of July!

This is infinitly more important then whether you trade profitably or not.

I know a guy that makes $250k a year. He has a big house and all the latest toys, yet can't afford gas for his car.

Another guy I know turned $30K a year into millions by living cheap and investing all his money wisely.

Being rich comes down to what your spend your money on. If you spend it on crap, no matter how much you earn you'll never be wealthy.

How true...

If you can find a method that always wins consistently, yes, you will be rich in few years, because compound interest, for example, if you find a method that gives you a 1% per day always consistently, you can turn 1,000 into 1,000,000 in 3 years and into 100,000,000 in 5 years (assuming more or less 21 days per month, months without sundays, saturdays and holidays).

Do you see it now? There is no money for all traders, we can't all start with 1,000 dollars and turn them into 100,000,000 in 5 years, that's one more reason because only 1% of traders win, because if we could win all consistently over the years forex simply doesn't exist, all banks and brokers go to bankrrupcy and governments prohibit trade in forex for not distort currencies and control inflation.

I say things like this because rookies must to know that this is no a primrose path, to live off forex is the hardest work in the world IMHO, when you begin in forex you have 99% of chances of lose. It's better to know this truth before start than after blowing an account.

A man stands for a long time with his mouth open before a roast duck flies in.

Think about it. The winners will keep increasing their lot size if they are that good. The losers keep having to refund their account when they keep going bust. So when you think about it, for every hedge fund or banks that pulls money out of the forex market consistantly, there has to be hundreds of smaller players they are feeding on. Why do you think the "experts" start writing books? Would you have time to write books if you could make a lot of money trading? Here is the way i figure it. The veteran forex traders, a couple of them women(hint, hint,), who have made a name for themselves as professional traders, still cannot make enough to make it worth their while. You think these people actually want to live in hotel rooms and give the same seminar over and over 3x a week hoping you will subscribe to their service or buy their software if they could clear even 1/4 million a year by trading?

Its the same old story, the guys who sold the picks and shovels got really rich while the very lucky few who struck gold in the California gold rush made a decent hit, but nothing like the consistancy of Levy Strauss who sold all the miners jeans! So why do I trade? Because I am a winning equities trader and want to see how much of an edge that will give me in Forex in the long run. Bottom line is, if I find I can make more by selling my system than trading it, I will be gone! And yes, I also find it a fascinating science and art that I believe as the Internet morphs year after year, we will have more interesting tools to use for trading in 5 years than we have now. So Forex trading may reward the patient.

I predicted that pip spreads would HAVE to narrow for all these competing brokers to stay in business, and lo and behold they are. I think we will see the day in the near future when a full pip spread will be just for the suckers and you will be able to frequently buy on the bid like in equities. I also am predicting that someone somewhere is working on different types of currency instruments to compete with all these brokers, much like the mutual fund industry exploded when they came out. Ahhhhh, the next 5 years shall be very interesting for us. I am also hoping there will be more sellers offfffffffffffffffff tware and systems that will have the integrity to actually give every buyer a 90 day money back guarantee. And maybe big entities like the money show can make it their policy that if you dont do it, you cant rent space! I see Forex becoming much more of an honest "gentlemans game" in the future with very tiny spreads you can actually scalp for a hobby and break even.

Whew- I LIKE roast Duck...

not hard at all my dear, you said years of learning and this is enough to be hero on the chart

Quoting Daytrader50

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Why do you think the "experts" start writing books? Would you have time to write books if you could make a lot of money trading?

Ignored

Interesting. So what you’re saying is that if you know how to make money doing one thing, there is no reason to do anything else.

Do you think Jack Welch needed the money when he wrote "Strait from the Gut?" How about Bill Gross when he wrote "Bill Gross on Investing", or George Soros with "The Alchemy of Finance"?

There are many reasons to write a book, and few of them are financial.

1) Some people just have a life goal to write a book.
2) Some people want to gain the title of "published author".
3) Some people have longer-term goals, which are easier to attain after becoming a published author. ie- start a hedge fund
4) And some people are just so effin bored with whatever that are doing that they write a book for fun.

The truth is, writing a book is one of the WORST ways to make money. It takes a good year of your life (or more) and then the average book only sells ~300 copies. In most instances, you would make more money working the line at McDonalds.

Its also a mistake to assume that successful trading is a time intensive enterprise. LEARNING to trade is extremely time consuming, but once you know what you’re doing you will find that you have more time then you can fill. Many successful traders start businesses or take part time jobs or volunteer, just to have something to do. Is it so great a leap to assume that some of them would want to write a book?

Now it's entirely possible that the only reason someone would write a forex book is because they need the money, but to say it's the ONLY reason is at best misguided.

Quote

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You think these people actually want to live in hotel rooms and give the same seminar over and over 3x a week hoping you will subscribe to their service or buy their software if they could clear even 1/4 million a year by trading?

Writing a book is not synonymous with becoming an information products marketer, but I agree, it would be hard to believe that anyone who could make money trading would live that kind of lifestyle by choice...

I agree. I have a friend at the top of his game in IT who writes books. His time would be much better spent from a finanacial perspective selling his services but he continues to write books for his own reasons.
My uncle also wrote a book which took him years to publish. A labour of love with minimal finanacial gain compared to his usual earning potential.

I did write a book about sales art, but when I wrote it wasn't about the money, its because of how brilliant ideas I got and I was afraid to forget my ideas nor every thing I discover in my researches. also cause i love what I'm doing

Altruism doesn't exist, people ALWAYS do the things to gain something, but there is something that we ALL want: power, and this is the only reason that writers of books have: they want to be famous and get power by their influence. The same reason leads people to want more money: to have more power, power to satisfy their desires, power to impose their points of views, etc.

I'll tell you what would be coolly ironic ... A picture of a Roast Duck on the cover. (Or is it ironically cool? (Is there one word for all that? I bet Chuck Norris would know what it is. Or make one up if he needed to)

Anyway - if Darkstar writes it, StoragePro buys it, happily adding to his ginormous pile of filthy lucre. Rock on, man.

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"Once you can trade profitably are you rich?"

depends on how you define rich. But once you can trade profitably, you have to remain consistant and continue to compound your winning trades to make some serious money.

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