Do you guys find that forex trading sucks? | Forex Factory

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Do you guys find that forex trading sucks?

  • #1
  • First Post: Edited 6:00pm Dec 18, 2011 2:27pm | Edited 6:00pm
I've traded forex for the past year. I trade on about $100,000 account and normally trade futures and equities.

Normally if I trade a currency I trade it through a futures contract. I decided to incorporate forex into my trading but was greatly disappointed.

There is too much volatility and the markets don't adhere to any trading theory or indicator. Forex markets don't even adhere to basic psychology that most markets adhere to.

You also can't write covered calls or puts that help to add income to your positions. It just seems like the forex markets fluctuate wildly and in order to profit you just need luck. It just seems like it's a huge gamble rather than investing.

I can't imagine any serious traders trading in the forex markets. Do other traders on this site feel the same way. I was just trying to see what other people thought.
  • #2
  • Dec 18, 2011 3:13pm Dec 18, 2011 3:13pm
Quoting erock

I can't imagine any serious traders trading in the forex markets. Do other traders on this site feel the same way. I was just trying to see what other people thought.
There's only one trade these days, "the risk" or the "risk off". Just look at a 20D correlation of the S&P with the AUDUSD. My point is that over the last year or more, if you can't read and make money in FX, you most likely could not do it anywhere else either.
  • #3
  • Dec 18, 2011 3:40pm Dec 18, 2011 3:40pm
Quoting erock
I've traded forex for the past year. I trade on about $100,000 account and normally trade futures and equities.

Normally if I trade a currency I trade it through a futures contracts. I decided to incorporate forex into my trading but was greatly disappointed.

There is too much volatility and the markets don't adhere to any trading theory or indicator. Forex markets don't even adhere to basic psychology that most markets adhere to.

You also can't write covered calls or puts that help to add income to your positions. It just seems like the...
always lots of opportunities. not that much difference with currency futures.
  • #4
  • Dec 18, 2011 3:45pm Dec 18, 2011 3:45pm
I disagree with that. My point is that equities and futures have more stability than forex.

By having more stability those markets adhere to normal fluctuations. For example when equity or futures markets are in down trends they tend to continue in a down trend, allowing to make a profit and vice versa in up trends.

Forex markets really don't follow that at all. You'll be in a trend and the market will just swing back against you.

Forex markets are almost psychotic, not really behaving normally. I find that most forex traders trade on small accounts. The guys that may have $250 to $5,000.

I can't imagine hedge fund manager trading in forex. They do trade foreign currency it's just through a futures contracts and everything is in dollars.

Usually when I trade equities and futures I can profit 10 to 15% annually. I recently incorporated forex and it screwed up my track record, I was up .5% because of the forex positions.

The one thing I love about equities and futures is covered calls and puts, this allows you to add income. You can't use these with forex. I find that forex really is just a gamble

I don't mean to disrespect any forex traders on here, just wondering how you guys consistently over years turn any profit at all
  • #5
  • Dec 18, 2011 3:48pm Dec 18, 2011 3:48pm
Quoting Porkpie
always lots of opportunities. not that much difference with currency futures.

major difference between currency futures and forex. One being currency futures all are paired with the dollar.

You are trading them through a futures contract which is paired with the dollar, everything through a futures contract will pair with the dollar. This has more stability.

You don't have the wild swings in currency futures that you do with forex.
  • #6
  • Dec 18, 2011 4:02pm Dec 18, 2011 4:02pm
It's the only thing I have ever traded. I have looked at other instruments but they seem to behave the same to me. They go up, down or sideways.

Are you saying after all these years there is something easier than forex
  • #7
  • Dec 18, 2011 4:09pm Dec 18, 2011 4:09pm
Quoting willf
It's the only thing I have ever traded. I have looked at other instruments but they seem to behave the same to me. They go up, down or sideways.

Are you saying after all these years there is something easier than forex

HAHAHAH, much much easier than forex. When you go over to equities and futures it's like a breathe of fresh air. So much more stability and Also the ability to add income through covered options is huge plus.
  • #8
  • Dec 18, 2011 4:12pm Dec 18, 2011 4:12pm
How do I find out more? Like brokers, platforms etc?
  • #9
  • Dec 18, 2011 4:18pm Dec 18, 2011 4:18pm
forex for me is the best market of all . i don't rely on luck to enter my trades but on a solid trading system. if you cannot trade forex don't blame forex because you're a looser in this market. blame yourself. maybe you should stick to the markets you know.
  • #10
  • Dec 18, 2011 4:28pm Dec 18, 2011 4:28pm
Quoting willf
How do I find out more? Like brokers, platforms etc?

How much do you trade on? To trade futures or equities the right way you need 50 to 100k minimum. I trade through interactive brokers.

What I typically do is take 100k and put it into U.S. T notes. I can then trade against the note and have access to 97% of my capital to trade. The yields on notes right now are very low but typically they yield 3%. So I can collect 3% right from the start

I then take 45% of my money and go into bonds. I'll take the other 45% of my money and go into equities and 10% will go on margin for futures.

I'll risk 1 percent on each trade for futures and equities and then write covered calls and puts to add income.

The t note will yield 3% the bond positions yield 6%. the covered calls usually yield 4%. The equity and futures trades yield around 10 to 15%. I only risk 1 percent on each trade, greatly eliminating any risk.

Before I do any trading at all I have a return on average of around 6% from the notes and bond positions. Then the covered calls and trading positions come in hopefully pretty strong.

Forex screwed up my trading, I went in thinking it was a great opportunity to add more positions and another instrument to trade, but I was mistaken.

I made a small return but not much. Anyone that can consistently profit strong on forex God bless you!
  • #11
  • Dec 18, 2011 4:30pm Dec 18, 2011 4:30pm
Quoting deltatrade
forex for me is the best market of all . i don't rely on luck to enter my trades but on a solid trading system. if you cannot trade forex don't blame forex because you're a looser in this market. blame yourself. maybe you should stick to the markets you know.

Really, what do your returns average? How long have you traded forex for? Sticking to the markets I know is what I intend on doing
  • #12
  • Dec 18, 2011 5:19pm Dec 18, 2011 5:19pm
Quoting erock
the markets don't adhere to any trading theory or indicator.
I'm not quite sure what you mean by "trading theory", in this context.

Personally, I agree with you that indicators are terribly unreliable, vastly overrrated for forex trading and generally a triumph of hope over experience.

But there are certainly some substantial traders in major financial institutions who include some input from indicators in their trading decisions (and some have even written books about doing so), albeit that "indicator-based trading" is more typically the preserve of the "home-based, small trader" - and it's no secret that there's quite a substantial annual turnover of those traders.

Of course, not all "technical analysis" involves indicators, per se.

Quoting erock
Forex markets don't even adhere to basic psychology that most markets adhere to.
No, indeed ... but they may adehere to some different basic psychology from that of "most markets".

Quoting erock
I can't imagine any serious traders trading in the forex markets.
That's ok, as long as you're not planning to apply for a trading position at Goldman Sachs.

Quoting erock
I can't imagine hedge fund manager trading in forex.
Even now, there are many who do so very successfully for a living, some of them for decades, some of them trading 7-figure and 8-figure positions every day.
  • #13
  • Dec 18, 2011 5:40pm Dec 18, 2011 5:40pm
Quoting Xela

Even now, there are many who do so very successfully for a living, some of them for decades, some of them trading 7-figure and 8-figure positions every day.
Which ones? There are thousands of hedge fund managers, Most aren't profitable. The top ten hedge fund managers to my knowledge do not trade forex.

George Soros traded currency, but he did it through futures
  • #14
  • Dec 18, 2011 5:41pm Dec 18, 2011 5:41pm
Quoting erock
I disagree with that. My point is that equities and futures have more stability than forex.

By having more stability those markets adhere to normal fluctuations. For example when equity or futures markets are in down trends they tend to continue in a down trend, allowing to make a profit and vice versa in up trends.

Forex markets really don't follow that at all. You'll be in a trend and the market will just swing back against you.

Forex markets are almost psychotic, not really behaving normally. I find that most forex traders trade on small...

this is outrageous! just because you cant trade forex doesnt mean that the market sucks, it means YOU suck...... the market is correct 100% of the time. Forex is known for its criteria of being the most technical and trendy market. "youll be in a trend and the market will just swing back against you" -----WTF is this? its called a short squeeze....you trade 100k account and you couldnt figure that out? There are thousands that make livings off of forex alone, many are hedge fund managers. Forex is the most traded market in the world. Forex is a traders market, if you cant handle it then get out. However, I urge to to continue trading forex as you provide liquidity to the market . Sorry if this post was brash, but sometimes the truth hurts.
  • #15
  • Dec 18, 2011 5:43pm Dec 18, 2011 5:43pm
Quoting mfoste1
this is outrageous! just because you cant trade forex doesnt mean that the market sucks, it means YOU suck...... the market is correct 100% of the time. However, I urge to to continue trading forex as you provide liquidity to the market . Sorry if this post was brash, but sometimes the truth hurts.

Do you make a profit trading forex? and answer the question honestly
  • #16
  • Edited 6:20pm Dec 18, 2011 5:48pm | Edited 6:20pm
Quoting mfoste1
this is outrageous! just because you cant trade forex doesnt mean that the market sucks, it means YOU suck...... the market is correct 100% of the time. There are thousands that make livings off of forex alone, many are hedge fund managers. However, I urge to to continue trading forex as you provide liquidity to the market . Sorry if this post was brash, but sometimes the truth hurts.

You're missing my point, my point is that you are trading the shittiest of all markets and that is why you don't make a profit.

If you want success, look at successful traders. Follow the large traders and watch what they do. Look at the top 10 hedge fund managers in the world and look how many trade forex. Do you see my point.

Forex is the market that no one wants to trade. I think the guys that trade this market are guys with $400 in their account, that have this dream of turning it into $4,000 and just get wiped out.

Personally I think this market should be banned
  • #17
  • Edited 6:03pm Dec 18, 2011 5:52pm | Edited 6:03pm
Quoting mfoste1
"youll be in a trend and the market will just swing back against you" -----WTF is this? its called a short squeeze....you trade 100k account and you couldnt figure that out? There are thousands that make livings off of forex alone, many are hedge fund managers. Forex is the most traded market in the world. Forex is a traders market, if you cant handle it then get out. However, I urge to to continue trading forex as you provide liquidity to the market . Sorry if this post was brash, but sometimes the truth hurts.
It's not called a short squeeze, it's called insane volatility that loses all of your money. I trade a 100k account and that's why I DON'T trade forex. I have other options.

Sorry to burst your bubble but nobody is making money off of forex, including you.
  • #18
  • Dec 18, 2011 6:11pm Dec 18, 2011 6:11pm
I am a professional trader, trading forex for over 10 years, and I am up +110% this year.

Forex it is a complicated market, but it is not more riskier than commodities or equities at all, totally the contrary if you know how to trade it. (this is the original reason of the higher leverage in forex, to compensate the daily smaller price moves compared with your "safe" markets).

You just cant come from other markets and begin trading forex the same, because this attitude will end you in trouble.

You are free to express your opinions but come to a forex community and telling us that forex should be banned, looks like out of the line to me.

Pepe
  • #19
  • Dec 18, 2011 6:18pm Dec 18, 2011 6:18pm
You often here people complaining about volatility of FX. But it's this volatility that makes it worth trading.
  • #20
  • Dec 18, 2011 6:18pm Dec 18, 2011 6:18pm
Quoting privatefr
I am a professional trader, trading forex for over 10 years, and I am up +110% this year.

Forex it is a complicated market, but it is not more riskier than commodities or equities at all, totally the contrary if you know how to trade it. (this is the original reason of the higher leverage in forex, to compensate the daily smaller price moves compared with your "safe" markets).

You just cant come from other markets and begin trading forex the same, because this attitude will end you in trouble.

You are free to express your opinions...
Let me ask you a couple of questions. How much money do you trade on? What has your average return been for the past 10 years. You are up 110% this year but what were you down the previous 10 years.

I'm just expressing my expericence of the forex market. Which wasn't negative but wasn't positive. I take back what I said I don't think that it should be banned but I just don't think it's a good trading market to make money in. Just my opninion
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