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Who has become rich trading forex?

  • #21
  • Jun 28, 2006 3:06pm Jun 28, 2006 3:06pm
Quoting alig
Is this the real thing, is this just fantasy!
you can tell its real because people are not telling you that it is easy. its hard but can be done, ive seen guys on this very forum go from newbie to making big money.
Relax and be happy.
  • #22
  • Jun 28, 2006 3:33pm Jun 28, 2006 3:33pm
Quoting alig

Is this the real thing, is this just fantasy!
... Easy come, Easy go. Sellin' High, Buyin' Low.

Gotta love Freddie.
  • #23
  • Jun 28, 2006 3:57pm Jun 28, 2006 3:57pm
The longer you trade (in term of years), your %/month will decrease.
That's of course if you're a very good trader and make money constantly.
Some of big rollers here, make 1 - 3% per month...

If someone tells you, they make 40-100% /month, check with them again in 6 months. You'd be very surprised...



Quoting alig
Thank you for your opinions.
I am still not convinced that there are guys who can make consistently 100%+ per year every year.

I think fijitrader said that 90% of people trading forex lose money over a long time and 90% of remaining 10% doesnt earn enough to make for a living. So only 1% make it big.
I wonder if they (this 1% traders) really exist.

So I would like to know, who can earn 100%+ profit per year every year or at least 40%+ profit per year every year?

If you can do it, I would like to know if you are trading fundamentals or technicals or both?
  • #24
  • Jun 28, 2006 5:19pm Jun 28, 2006 5:19pm
Do people become rich trading the Forex? The answer lies in one word that starts with d and ends with e. If you can figure it out and develop it OVER TIME because it can't be developed in a day or two, you can do very well in the Forex market.
  • #25
  • Jun 28, 2006 7:31pm Jun 28, 2006 7:31pm
Quoting raczekfx
The longer you trade (in term of years), your %/month will decrease.
That's of course if you're a very good trader and make money constantly.
Some of big rollers here, make 1 - 3% per month...

If someone tells you, they make 40-100% /month, check with them again in 6 months. You'd be very surprised...
spoken like a true veteran...
Relax and be happy.
  • #26
  • Edited 9:09pm Jun 28, 2006 8:42pm | Edited 9:09pm
The day will come, I will be one..

Quoting merlin
spoken like a true veteran...
  • #27
  • Jun 28, 2006 9:03pm Jun 28, 2006 9:03pm
Quoting alig
Tell me your story. How did you do it? How much did you earn, how much did you lose and please be honest.
I am searching for a top 1% traders who can really beat this game.

Is this the real thing, is this just fantasy!
I can see that you are not convinced that there are traders out there who really make money consistently out of the forex market...If everyone is losing, who is winning??? If the structure of traders in the forex market is 99% losers as you say, then where are the remaining 1%???

Besides, you are saying that you are searching for the top 1% traders who can really beat this game....It's not about beating the game....It's about beating yourself in the first place....It's about being conservative & risk oriented...It's about thinking about how much can I lose on this specific trade before I think about how much can I potentially win on this trade...It's about beating fear & greed inside yourself...It's about adjusting your leverage according to the probability of success of every trade...It's about when to close a trade, it's about when to take a vacation & stop trading for a while....

So as you can see, it's about yourself in the first place....You will find yourself involved in almost every single action in the market, so if you can't handle yourself, no matter how good your entries or exits are, you won't be able to consistently make profits....


Thanks,

Nader
  • #28
  • Jun 30, 2006 8:59am Jun 30, 2006 8:59am
Quoting ItalianSharp

If you have a $100,000 account and risk 1.5% per trade with a 40 pip max stop loss, you can afford to open roughly 37 contracts per trade.
I'm confused about this, maybe its my misunderstanding.

Shouldn't it be 3.75 max contracts per trade.

1.5% of 100,000 is 1500. So 1500 is your total loss for all right? Then 1500/40 max pip loss. 37.5 and say you are trading the Eur/Usd for 10 dollars a pip. So 37.5/10 = 3.75. So if you open 3.75 lots and it moves 40 pips against you(hopefully not), you then hit your 1.5% max loss target.

Am I just missing something? I'm not trying to be a butt about it, just making sure I have it right over here on my side since I do the same.

I trade roughly 6% and use 3 trades at a time(scale in/out).
  • #29
  • Jun 30, 2006 9:53am Jun 30, 2006 9:53am
To succeed and win long term surely you have to be prepared to work consistently at an elite level. You have to possess a deep motivation to excel and dominate in a competitive environment.

If prior to opening their first live position each new trader asked themselves one question, the success to failure ratio would make much better reading.

The question that they should ask does not relate to intelligence, or the number of TA books they have bought or even the number of trading seminars they have signed up for, it is quite simply:

Is winning my driving passion? if it is, then welcome on board. if it isn't then it is best to stay out.

Quite simply, the top 1% view money as a by product of winning/success. It is not their driving force. If you want to operate in the 1% bracket you have to be addicted to winning rather than making money. can forex make you rich? Yes.
  • #30
  • Jun 30, 2006 10:47am Jun 30, 2006 10:47am
Quoting ItalianSharp
FOREX and trading in general should be treated and perceived just like any other business.

I know a few traders who make a really good living out of it. Why shouldn't it be possible?

You asked whether there are some traders who can consistently make 40%+ per year. In my opinion a trader who follows FOREX all day long should be making at least 50% per year every year. Anything less than that wouldn't be worth the risk, sacrifice and time.

Now, what does it take to achieve a constant 50% return year in year out?

If you have a $100,000 account and risk 1.5% per trade with a 40 pip max stop loss, you can afford to open roughly 37 contracts per trade.

Let's say you adjust the # of contracts per trade whenever your capital grows by 20%.

In our case, when your capital reaches $120,000 you adjust # of contracts from 37 to 45.

With this simple money management scheme it would take you roughly 1,200 pips to achieve your 50% goal.

Thats roughly 100 pips per month, which is roughly 25 pips per week.

Do you still think it's impossible to make some decent money in this business?

A good trader should make at least 100 pips per month on average. Of course, there might be months when he breaks even and other months where he makes 300 pips.

If you can't make at least 1,000 pips per year you better look for other businesses or get a job because trading isnt for you.

Now, let's all keep in mind that the 50% mentioned in the above example was obtained by using leverage, specifically a 1 to 3.7 leverage. Hence, a 50% return obtained trading FOREX using a 3.7 leverage would correspond to a mere 13.51% return if you were trading stocks without using margin.

Now answer this question: do you think that if you were a full time stock trader you could achieve a consistent 15%+ return year in year out?

If your answer is yes, then you should be able to do much better in FOREX thanks to leverage.

In my opinion what it really takes to be a full time successful trader is:

1) Right psychological attitude

2) Stable system that generates consistent results.

As you can see, if your objective is to make at least 50% a year, you dont need a system that makes you 1,000 pips per month. All you need is something stable enough to avoid big drawdowns and good enough to generate 100 pips per month.
This is a realy good post. Instead of chasing fantasy leads all day people need to keep realistic expectations. I read all kinds of crazy stories about massive amounts of pips people were making and became discouraged with my results. When you realize alot of it is hot-air you will set reasonable goals and start to profit.

Just my opinion
  • #31
  • Jun 30, 2006 10:51am Jun 30, 2006 10:51am
Quoting JoJoDawg
I'm confused about this, maybe its my misunderstanding.

Shouldn't it be 3.75 max contracts per trade.

1.5% of 100,000 is 1500. So 1500 is your total loss for all right? Then 1500/40 max pip loss. 37.5 and say you are trading the Eur/Usd for 10 dollars a pip. So 37.5/10 = 3.75. So if you open 3.75 lots and it moves 40 pips against you(hopefully not), you then hit your 1.5% max loss target.

Am I just missing something? I'm not trying to be a butt about it, just making sure I have it right over here on my side since I do the same.

I trade roughly 6% and use 3 trades at a time(scale in/out).
I was referring to mini-contracts of $10,000 each.

Sorry, I should have specified it in my earlier post.
  • #32
  • Jun 30, 2006 10:52am Jun 30, 2006 10:52am
Quoting hidethereal
This is a realy good post. Instead of chasing fantasy leads all day people need to keep realistic expectations. I read all kinds of crazy stories about massive amounts of pips people were making and became discouraged with my results. When you realize alot of it is hot-air you will set reasonable goals and start to profit.

Just my opinion
Thanks I appreciate it.
  • #33
  • Jun 30, 2006 11:10am Jun 30, 2006 11:10am
Good comments from all. I think most people who start down the path of knowledge of forex have the passion to succeed at it but like the other posters have said its about having a plan and sticking to it. Use your stop loss , take profit, trailing stops religiously and stick to them and leave them alone. Of course you need a decent strategy/system but most seem to work if you stick to them the way they are intended. Some are probably better than others but they all have pos/negs so just pick one and ride it out for awhile to learn more. If you don't like it after 3-6 months then try a different one. Anyway, I think I rambled off track but I think forex can make you wealthy and I hope to be there someday myself.
  • #34
  • Jul 1, 2006 4:17pm Jul 1, 2006 4:17pm
Quoting ItalianSharp
I was referring to mini-contracts of $10,000 each.

Sorry, I should have specified it in my earlier post.
Ah ok... I should have thought of that too. Thanks for clarification.


By the way I hope everyone had a good run on Thurs. and Fri. I just need to stop trying new things while trying to test my own system. A good way to make a awesome run look mediocre.
  • #35
  • Jul 1, 2006 4:31pm Jul 1, 2006 4:31pm
Quoting trucco
...But thats it. for me forex now is a way to have a kind of 1/2 more salary from my normal work.
I lost the idea to become rich...
Truco,
You can't possibly get all that rich from forex if you don't reinvest your profits. It is necessary to build equity before starting to cash regular paychecks from FX, I think. I have been mistaken before.


I keep hearing that the most successful traders are the ones who have an absolutely infinite passion for FX. Such traders, I am told, focus more on perfecting their systems, or methods, than dreaming about the possible millions they could make.

Best!
  • #36
  • Jan 17, 2007 6:17pm Jan 17, 2007 6:17pm
I have turned the corner a relatively short time ago, yet in hours spent it has been an eternity since I have been trading profitably. Rich? oh yes, I am filthy rich. I have a great family, a nice home, good friends, and an enormous passion for the markets that has kept me here for countless years. You are truly rich when you love what you do and can live comfortably off of it. Even when I couldn't and had to work other jobs, I still considered myself rich for just being able to partake and learn and grow. Wouldn't trade this profession for the world, regardless of pay(I would be more likely to adjust my lifestyle).Just my opinion.
Man who scratches ass should not bite fingernails
  • #37
  • Jan 17, 2007 6:47pm Jan 17, 2007 6:47pm
I think the questions and answers in this thread are constantly flickering around peoples heads for the first 4-6 months they get involved.

As someone said, the lower you start on in general, the longer it will take if you do becokme successfull.

I think Compounding profits is crucial in the long run
  • #38
  • Jan 17, 2007 7:08pm Jan 17, 2007 7:08pm
Know how much you are willing to bet that "You are Not Wrong!"

You cannot register a vehicle without Proof of Insurance.

As a Newcomer to Trading Spot Currencies, it would be nice if it were Mandatory to provide Proof Of Stop Loss. At least Proof that you have a Price in mind that will Prove to you, you have entered a Bad Trade.

Personally, I don't prefer to Place SL with my Borker {just a... my business is 'My Business' little idosyncracy I have} BUT I Always know where my Losing Trade {at Market} Exit will be.

hth
  • #39
  • Jul 20, 2007 3:19am Jul 20, 2007 3:19am
dunno if there's anyone still following this thread, but i was just curious if these 3.5 million/year or otherwise rich forex traders use the same old online retail forex brokers so often discussed on forums here (fxcm, dbfx, fxsol, etc...)? some of them seem a little sketchy, and i'd much rather lose money cuz i made a mistake trading rather than cuz i chose the wrong broker (not that that is the objective either way right? ). thanks for the info.
  • #40
  • Jul 26, 2007 4:43pm Jul 26, 2007 4:43pm
Quoting smjones
I know at least 5 who make over 1 million a year that are on this forum, They just do not want that info to be public. I have seen some of their statements.
Scott, I wouldn't dare ask for their identity or trading method, but are you able to disclose whether these folk are scalpers, swing, position or hedge/carry traders; use predominantly TA or FA; and what size account it's necessary to trade, in order to make a $1m+ annual income?

Just to appease my curiosity..... if that's permitted

Thanks
David
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