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Is it Possible to Make Money in Forex Market

  • #101
  • May 8, 2011 1:22am May 8, 2011 1:22am
Quoting Marv
Automated trading has its place, and so does discretionary trading.

What you're saying might be true for discretionary trading that has relatively straightforward and identifiable rules, but there are things that are nearly impossible to code. I for one don't simply look at statistically collectable patterns in price data, or some TA formations etc. but many different things on different layers pertaining to the market, some of which are not technical at all, are hard to quantify, and are concerned with only the present unique moment (i.e. are...
also a very good perspective! thanks for your contribution.
  • #102
  • May 8, 2011 1:50am May 8, 2011 1:50am
Quoting Custos
Yeah, I don't think claims on threads can be considered as proof.
I have to disagree.
http://www.forexfactory.com/showthread.php?t=10372

I have never seen reliable statistics about profitable traders.
What's more every broker claims that 'we are the best'...

30% was just a usual figure believed to be proportion.
RichieEU
  • #103
  • May 8, 2011 2:14am May 8, 2011 2:14am
Quoting RichieEU
I have to disagree.
http://www.forexfactory.com/showthread.php?t=10372
I was actually commenting on your statement that you can make a living in forex and many threads can prove that.

My personal belief is that a real minority here is actually trading for a living (profitably). Trading profitably is more difficult than you think and requires lots of research, which most are not willing to do.
  • #104
  • May 8, 2011 2:22am May 8, 2011 2:22am
Quoting Custos
I was actually commenting on your statement that you can make a living in forex and many threads can prove that.

My personal belief is that a real minority here is actually trading for a living (profitably). Trading profitably is more difficult than you think and requires lots of research, which most are not willing to do.
Ok. Misunderstanding

What exactly do You mean by 'research, which most are not willing to do' ?
RichieEU
  • #105
  • May 8, 2011 2:41am May 8, 2011 2:41am
Quoting RichieEU
Ok. Misunderstanding

What exactly do You mean by 'research, which most are not willing to do' ?
well, most are just going with screen time. But I am of the belief that real scientific research is needed to be profitable. For me that means getting at least a sample of 10,000 trades/occurences to be able to say with a certain statistical likelihood that patterns are random or really occur over and over again. And you need to cancel out the researcher bias as well, meaning that normally if I manually research patterns, I will (unconsciously) influence the results, cause I might want the patterns to work. So here a computer program comes in handy, cause it allows you to get the big sample and to cancel out researcher bias (because the computer program is neutral and doesn't have any motives). Of course as hanover pointed out, these patterns also need to make sense. If they don't then it might just be coincidence.
This all is just for price based edges. For fundamental edges, I think the only way is still to do everything manually and here you can't get the 10,000 occurences normally, so you need to be satisfied with less.
  • #106
  • May 8, 2011 2:59am May 8, 2011 2:59am
Quoting diallist
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.... Expect to be obsessed for 2 to 5 years before becoming consistently profitable...
WOW!! Is this the rule!? - I agree with every word. Generally anything takes a solid "obsessed" year to to move for the "how" phase to being able to create without training wheels and I accept that I'll have to burn a year before I really know what I'm doing in any venture.

FX takes that statement and kicks your A#$! with it. I'm a longtime experience business, web, game programmer, etc. After 20+ years of HARDCORE programming I met MT4. Arrrrrrggghhh!!...... It kicked my tail for years before I became mildly profitable (since I had to learn Forex FIRST) and not until almost 3 years for me to be able to check the [Done] box where I found my own approach that best suit me and was EA tradeable. (Manual trading is easier but my emotions could never handle the stress. For me its EA or nothing which significantly upped the ante)

With my 'addictive' personality (sweet when steered to learning and exercise instead of drugs) I generally feel I have an advantage over most people that want to have a 'life' and FX still kicked my butt. To answer the original question - Yes, its possible to make living with FX (and a pretty nice one) - once you have a profitable system its pretty easy to get the funds you need to trade by selling the signals. (Zulutrade, Collective2, RentASignal, Tradency, etc..)

Starting your journey at THIS forum is the best first step you could make. You'll be exposed to the entire FX world and numerous approaches and profitable strategies. It can seem overwhelming due to the fact that there are many ways to be profitable. Take your time and play with them. Master a couple so you know 100% how they work and start demo trading until you find a profitable system that matches your personality. Before you know it you'll be on that beach in the Bahamas.
  • #107
  • May 8, 2011 3:25am May 8, 2011 3:25am
Quoting cuallito
2) That said, I don't recommend waisting your time with EAs, they lead to laziness. The best trading computer is the human brain and a good intuition. Remember, a computer program just does what it's programed to do, so if the market does something that the EA's not designed to handle, you'll probably loose a bunch of money!
Simple answer: You need a better EA. - Robots can only setup actions and reactions to price movement. I dont even think of FX as prices. Its just a line trying to escape all of my traps. Most only design for the price to move their desired way and have poor responses for when FX moves a different way.

Your trending EA is helpless when the market ranges and vice-versa. Your EA has to be able to cope with anything the price can and WILL do. If you're good most of those moves with create profit for you otherwise your 'its not working' strategy has to preserve as much capital as possible. Its a VERY fine line between reward and risk. How much risk to allow (think carefully because you WILL hit a string where your worst case will happen MULTIPLE times unexpectedly) and how much reward balances the losses.

FX is a living entity and it resists taming. It will exploit any weakness in your EA. Cutting off all avenues where it can hurt you and mitigating damage while adding profit is one greatest challenges in programming. Its possible to beat the system but you'll have to find your own EA path cause its so painful to teach a computer to trade that most working methods are still ancient chinese secrets. (And I ain't talkin!!)
  • #108
  • May 8, 2011 3:40am May 8, 2011 3:40am
Quoting Custos
well, most are just going with screen time. But I am of the belief that real scientific research is needed to be profitable. For me that means getting at least a sample of 10,000 trades/occurences to be able to say with a certain statistical likelihood that patterns are random or really occur over and over again. And you need to cancel out the researcher bias as well, meaning that normally if I manually research patterns, I will (unconsciously) influence the results, cause I might want the patterns to work. So here a computer program comes in handy,...
In your opinion it is good to search patterns or not? To predict 'future' based on 'past'. Cause once You point it as unconsciously influence (to find patterns, that previously worked) and once You point out that good program is neutral and big sample could be handy.

I think for myself that traders would love to predict future based on future patterns and well sometimes they are right. But it sounds like diviner foretell...
RichieEU
  • #109
  • May 8, 2011 3:55am May 8, 2011 3:55am
Quoting RichieEU
In your opinion it is good to search patterns or not? To predict 'future' based on 'past'. Cause once You point it as unconsciously influence (to find patterns, that previously worked) and once You point out that good program is neutral and big sample could be handy.

I think for myself that traders would love to predict future based on future patterns and well sometimes they are right. But it sounds like diviner foretell...
Please read my post better, cause it says explicitely what I mean. if you MANUALLY research patterns, you will unconsciously influence the results. If you let a program do that, then you don't have that problem.

So, then how else to profit from the markets if not through prediction? Some people have the argument going between reacting to the market and predicting direction. In the end all of them are predicting. If I go long, then I predict that the market will go up, if I go short, I predict that the market will go down.
  • #110
  • May 8, 2011 4:13am May 8, 2011 4:13am
Quoting Custos
Please read my post better, cause it says explicitely what I mean. if you MANUALLY research patterns, you will unconsciously influence the results. If you let a program do that, then you don't have that problem.

So, then how else to profit from the markets if not through prediction? Some people have the argument going between reacting to the market and predicting direction. In the end all of them are predicting. If I go long, then I predict that the market will go up, if I go short, I predict that the market will go down.
Agree. Everything is prediction.
I understood "research" in meaning of over 10 years old charts in compare to actual market.
And yes, I will read your posts better
RichieEU
  • #111
  • May 8, 2011 10:12am May 8, 2011 10:12am
Quoting Custos
Well, maybe we have different definitions of what inefficiencies and efficiencies are.
I think so.
  • #112
  • Jul 17, 2011 1:45am Jul 17, 2011 1:45am
Quoting aparsai
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,
Take it easy. It's impossible to beat a negative math.expectation game.
Game, because it's impossible to predict market's movement. Too many factors and large subjects in the world and they don't care what your analysis or indicators show.
It's impossible to make money here in a long term perspective. Short term- yes, long term- no. Only brokers will win long term because an endless stream of "traders" will leave their money to them sooner or later.
  • #113
  • Apr 28, 2012 4:11am Apr 28, 2012 4:11am
Quoting Bear73
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...
Great post!!!

The twitter link does not work btw.

Have a great day too.
  • #114
  • Apr 28, 2012 4:49am Apr 28, 2012 4:49am
Quoting Ged
Take it easy. It's impossible to beat a negative math.expectation game.
Game, because it's impossible to predict market's movement. Too many factors and large subjects in the world and they don't care what your analysis or indicators show.
It's impossible to make money here in a long term perspective. Short term- yes, long term- no. Only brokers will win long term because an endless stream of "traders" will leave their money to them sooner or later.
Not sure that it is true, at least I hope not otherwise I am wasting my time. You definitely can predict some trends, but whether they are sufficiently distinct and certain to make a living at the kind of risk you are happy with is a different matter.

I used to know someone who worked in FX and was never short of money, however I was doing something different at the time and never got around to asking them exactly what they did in the bank so don't know at which point they made their profit.
  • #115
  • Apr 28, 2012 8:27am Apr 28, 2012 8:27am
Wow! It looks like this thread died, then Random One and Black Bird resurrected it.
I don't want to discuss whether or not someone can make money. I do, so it ends the argument.
My point is that I am not into "predicting" which way the market will go. I know "predict" is a matter of semantics, but I still believe and know for me personally it goes beyond that. It is a matter of understanding the cyclical nature of the markets. As an example, there is a reason that I have been believing that the GBP/USD is headed to circa 1.6350, and that eventually it will be paying 1.4350 another visit. It is the cyclical nature of the markets that avails me that understanding. It is a probe into the mathematics of the markets to get the understanding.
Complicated? No! It is a matter of devising the proper methodology in order to ascertain that.
Will I be wrong? Absolutely! It's my right to be wrong. I'm human. That is why the markets are not wrong. I'm right much more than I'm wrong. That is the simplicity of making money in forex.
  • #116
  • Apr 29, 2012 8:13am Apr 29, 2012 8:13am
Quote
1. Is it really possible to make money for a living through FX market?
Yes it is.
Quote
2. If yes, how long would it take?
It took me 2 years : 6 months of studying, 8 months of demo trading and live microlot trading, a year to develop my own trading style.
Quote
3. Is there a chance that I manage to quit my daytime job and stick to FX market as my only source of income?
If you have a strong motivation to learn new things and always keep your head open to new possibilities, definitely yes.
Quote
4. If yes, how long would it possibly take?
It depends on many factors: are you patient? Are you a fast learner? Have you got self discipline to study books, apply those things and learn new things everyday? In general, however, i think two/three years.
Quote
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?
I'm not making all those money :-)
To reach that sum, while having a proper money management and a good trading system, you should have a lot of money in your account imho.
  • #117
  • Apr 30, 2012 4:08am Apr 30, 2012 4:08am
Is it Possible to Make Money in Forex Market? Yes, I personally know a few successful traders) cause of them I came to forex
  • #118
  • Apr 30, 2012 8:56am Apr 30, 2012 8:56am
Good Question!!

Yes indeed you can make money in forex with a proper knowledge of trading..
  • #119
  • Apr 30, 2012 9:12am Apr 30, 2012 9:12am
I wonder how many of you smart people posting those answers have actually been profitable traders for at least 3 years of continuous trading.

5%?
  • #120
  • Edited 12:23pm Apr 30, 2012 12:00pm | Edited 12:23pm
WHO AM I?

Forget about funky trading strategies peddled around, forget about rules or money management theories.

If you can honestly answer the above question, then from your answer you would come to either of 2 conclusions, either you immediately stop this fxtrading journey youre about emberking on to stick to your 9 to 5 or youll plunge into trading.

The answer to that question would be your ultimate guide in fomulating your own unique trade method that only you understand the entry and exit rules.

This process should take you nothing less than 4years of your blood and sweat!
The only way not to think about money is to have a great deal of it
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