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Is Forex trading worth it? If so, why?

Quoting trader34
{quote} Agree with the last part. yet to see anyone here, or elsewhere actually offering any real education to new traders. Just sales pitches and false hope.

I have stumbled across some.
Quoting trader34
{quote} Agree with the last part. yet to see anyone here, or elsewhere actually offering any real education to new traders. Just sales pitches and false hope.
This is something I've thought a lot about.

I've done quite a bit of work towards putting some educational material together for traders, but there's some roadblocks.

1. The "base" education that a trader needs is out there already. Babypips, investopedia, this site ... all helps with that level of understanding that you need (e.g What is Support & Resistance, what's consolidation, what is a trend etc).
2. Lots of psychology stuff out there as well
3. NUMEROUS blogs and sites selling systems/methods of various value.
4. But, how do you put all that stuff together? There isn't much out there covering that.

The problem, as I see it, is that the new trader often loses the will to continue quite early. It's really up to them to get through the early stages and then seek a deeper understanding. A couple posters on this thread are perfect examples of traders who have their own style, styles that go against everything that's traditionally taught...and they trade like this because they understand how it works. That takes a long time.
Quoting tashkent
{quote} first of all, trading can not be taught. second, nobody knows anything. knowledge is just a set of data which is proven to be correct most of the time but not all the time. knowing is an eternal process for search of truth and not the final outcome. nothing that you "know" is absolutely correct. after all this, if there are still people who thinks they "know" something and can teach it, they have delusional disorder.

Mostly agree, trading is generally an abstract concept. Hard to quantify how anyone can consistently navigate all the aspects. However in the purely mechanical sense, trading could be taught better than the standards on offer.
More so by removing the likes of Greg Secker and Jared Martinez as "educators" and mentors. This world is hard enough to navigate without their kind.

Quote
I've done quite a bit of work towards putting some educational material together for traders, but there's some roadblocks.

Yes, many roadblocks. But I don't believe the available resources are as good as people say. They're an ok taste, but very few of them go into any depth about the way the market functions in reality, about the relative uselessness of traditional technical analysis strategies, nor about the very real risk when using retail brokers. As you rightly said in an earlier post, the fundamental principles go largely ignored. Everyone can plot a trendline or draw some other meaningless scribbles, but hardly anyone knows about the way the participants in the true interbank market interact.

Quote
The problem, as I see it, is that the new trader often loses the will to continue quite early. It's really up to them to get through the early stages and then seek a deeper understanding. A couple posters on this thread are perfect examples of traders who have their own style, styles that go against everything that's traditionally taught...and they trade like this because they understand how it works. That takes a long time.

Agreed. But perhaps if there were not so many false hopes sold early on, prospective traders would not lose interest early.
Most come in expecting there to be some big secret, someone who will eventually come in and say "Here, this is how you do it." Of course it will never be the case. Telling someone new to this that they need to spend a few years learning, practicing, failing and trying again would likely be frowned upon by the huge industry built around Forex!

Quote
I have stumbled across some.
Good for you, but you would be one of the lucky ones!

Quote
If I ever have a moment during my day when I feel like "the stars have aligned" and I "suddenly understand it all" - I turn off the computer because if I don't, I'm going to do something stupid -

Now that is the truth!!
Wealth comes from what you keep, not what you earn
forex is worthy, it is the bridge of 2 currency, and together they have connect the world economic, etc etc etc....
sound great isn't it.
but if it is 'the forex' that we trade, it is bounded by contract, only for us to return what we buy / sell. Thus even if we move the market, we will return it back to where it begin if we close it.
imagine, what we buy, is not ours, and will be returned.
what we sell, only gives profit if returned.
Quoting scottik187
I'm not saying trade the fundamentals, I'm saying learn what they mean and their implications. It's about having an understanding of the market as a whole.
It is important to come to an understanding of markets as a whole but knowledge of fundamentals is not necessary.
Quoting Atokys
{quote} It is important to come to an understanding of markets as a whole but knowledge of fundamentals is not necessary.
The macroeconomic and geopolitical fundamentals influence the market as a whole. To think otherwise would be foolish. It's not an either/or relationship. You can have sound technical understanding supported by fundamental knowledge.
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting alexpi
{quote} The macroeconomic and geopolitical fundamentals influence the market as a whole. To think otherwise would be foolish. It's not an either/or relationship. You can have sound technical understanding supported by fundamental knowledge.
It may influence the markets, but is it necessary to know in order to trade the markets?

I trade the markets successfully without any appreciation for fundamentals. I am sure there are many others that do too.
An expert is a man who has made all the mistakes which can be made
This is due to fundamentals, right.


http://i.imgur.com/K3goCzr.png

If you trade with fundamentals, it sure sounds 'educated'.

Fundamentals, as in the latest economic data

Or,

The big money's reaction to the latest data release

Or,

Both ?
I am trader since many years and I think FX is totally worth it, but always keep second income while you are still learning.
We are proud to be most consistent signal provider in entire industry.
Quoting Neio
{quote} It may influence the markets, but is it necessary to know in order to trade the markets? I trade the markets successfully without any appreciation for fundamentals. I am sure there are many others that do too.
Again, it's a "both" relationship. Nothing is "necessary" in order to be successful, but everything can help.

It's like building a house - yes, you could build it with four walls, some floors and two main columns, and you would have a good house for nice weather. If you have a solid foundation to which everything connects it will be a better house which can survive rougher times.

The more you know the better you understand how reality connects with the market. If you are successful using only technical analysis you could be even more successful if you have an understanding of the fundamentals. By that I don't mean the emotion-inducing macroeconomic numbers on the FF main page
Quoting alexpi
{quote} The macroeconomic and geopolitical fundamentals influence the market as a whole. To think otherwise would be foolish. It's not an either/or relationship. You can have sound technical understanding supported by fundamental knowledge.
Didn't claim otherwise.

The assertion is that one can trade profitably while completely disregarding fundamentals.
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting alexpi
{quote} Again, it's a "both" relationship. Nothing is "necessary" in order to be successful, but everything can help. It's like building a house - yes, you could build it with four walls, some floors and two main columns, and you would have a good house for nice weather. If you have a solid foundation to which everything connects it will be a better house which can survive rougher times. The more you know the better you understand how reality connects with the market. If you are successful using only technical analysis you could be even more successful...
Why do you need fundamentals when you can see which way price is moving?
An expert is a man who has made all the mistakes which can be made
Quoting Neio
{quote} Why do you need fundamentals when you can see which way price is moving?
Why do you think?
Think forward!
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting skfx
{quote} Why do you think? Think forward!
Appreciate your reply, but it was not a question that I need an answer to.

The market movement shows you how it is reacting to fundamentals. So why spend time trying to figure out how the market is going to react to fundamentals? (no answer required)
An expert is a man who has made all the mistakes which can be made
Quoting Neio
{quote} Appreciate your reply, but it was not a question that I need an answer to. The market movement shows you how it is reacting to fundamentals. So why spend time trying to figure out how the market is going to react to fundamentals? (no answer required)
My apologies!
Not easy to gauge a rhetorical question over a forum.

Try making a statement instead next time.
rgds
  •  Neio
  • Joined Oct 2012 | Status: Can't think outside?Enlarge the box | 688 Posts
Quoting skfx
{quote} My apologies! Not easy to gauge a rhetorical question over a forum. Try making a statement instead next time. rgds
No worries. I am just responding as it was suggested that fundamentals are required to trade or that interpreting fundamentals will make you a better trader. My view is that it is not necessary but then I guess it depends on how long term your view is. Mine is very short. I trade not invest.
An expert is a man who has made all the mistakes which can be made
Point is, the most objective interpretation of fundamental factors is a price chart.

It would be wiser to let the insiders and strong hands do the analysis and simply tag along with the winning side.
Quoting Neio
{quote} No worries. I am just responding as it was suggested that fundamentals are required to trade or that interpreting fundamentals will make you a better trader. My view is that it is not necessary but then I guess it depends on how long term your view is. Mine is very short. I trade not invest.
Sure, i agree Neio! Shorter term trading is more about getting in tune with sentiment through sessions.

Tracking fundamentals is required if you would like to stay INFORMED of global markets and what is currently driving prices and what may influence prices going forward.

Quoting Atokys
Point is, the most objective interpretation of fundamental factors is a price chart. It would be wiser to let the insiders and strong hands do the analysis and simply tag along with the winning side.
Wouldn't it be better to sit up in the front seat rather than jumping in the boot?
You have little feel for anything sitting in the boot.
I prefer to know what's going on. Some on the other hand prefer not to know, that is also a choice.

rgds
Quoting Neio
{quote} No worries. I am just responding as it was suggested that fundamentals are required to trade
Who made that suggestion? You're missing the point.
ok, everybody back to work now.
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