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How to make money in the forex market

  • #1
  • First Post: Jun 11, 2017 12:05am Jun 11, 2017 12:05am
Hello Guys and Girls

I feel that I can ease your pain a lot, and transfer you in to a money making machine you are dreaming so hard about.

Why would I do this?
Just because I am profitable and have been so for several years now that has not always been the case! And I honestly feel the pain just by talking about it.

Lets get started:

The forex market is a very good place to be if you can't find enough liquidity in the stock market cause this market is 5-6x bigger than all the bourses combined.
Now, you have stepped in to a market with no real value, this is truly a negative sum game!

This is the biggest problem, if you want to make money over time you should look at the daily chart and larger pip reward to reduce the transaction cost. You should also look for a trend and you should compare this to not only eurusd but at least 6-7 different crosses. You should only pick one cross at the time!

This is very important cause there is time to be in eurusd (or any other cross) and not, believe me, if you are in eurusd all the time you will loose.

Now, your exit strategy are---> none.

You should start with picking 1 day in the week or month for what is the best buying opportunity.

If you back-test you're buying strategy you will probably see that it has a success rate of 60-70% and you're exit strategy have probably the same.. This results in your success rate together will only be 36-49% not including transaction costs (meaning you can't win (yes 2-3% can make strategy's that work) and you can't make a suitable exit strategy!!!).

That is the solution!
And if you make 20-50% in a year that is very good! you are then trading like a professional and this is boring but at least you are making money!!

and the worst thing is that you will probably not learn from this post :-/ I warned you!

PS stock market is 10-100x easier than forex!!
  • #2
  • Jun 11, 2017 3:09am Jun 11, 2017 3:09am
Quoting Larseg
PS stock market is 10-100x easier than forex!!
maybe so, but most hedge funds fail to deliver returns that beat the markets. 2016 avg hedge fund return was just over 5%. Trading stocks or equity options has been easy if you have done one thing in the last decade: btfd. That not likely to change, but one needs patience be cause the fd's are few and far between.

https://www.ft.com/content/4b727f0a-...e-f14e55513608
"If The Fool persists in his Folly he will become wise." - William Blake
  • #3
  • Jun 11, 2017 4:15am Jun 11, 2017 4:15am
Quoting The Fool
{quote}maybe so, but most hedge funds fail to deliver returns that beat the markets. 2016 avg hedge fund return was just over 5%. Trading stocks or equity options has been easy if you have done one thing in the last decade: btfd. That not likely to change, but one needs patience be cause the fd's are few and far between. https://www.ft.com/content/4b727f0a-...e-f14e55513608
Sensei,

What is BTFD? Also, why does this behavior unlikely to change?

Thanks
  • #4
  • Jun 11, 2017 4:20am Jun 11, 2017 4:20am
btfd = "buy the freakin dip". If one simply buys & holds an index fund like SPY, he will have realized positive returns. However, if he bought the index on every decent (10%? 15%?) dip over the same time period, his returns would be much better...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #5
  • Jun 11, 2017 5:29am Jun 11, 2017 5:29am
Quoting The Fool
btfd = "buy the freakin dip". If one simply buys & holds an index fund like SPY, he will have realized positive returns. However, if he bought the index on every decent (10%? 15%?) dip over the same time period, his returns would be much better...
Thanks Sensei.
  • #6
  • Jun 11, 2017 5:55am Jun 11, 2017 5:55am
Quoting Larseg
PS stock market is 10-100x easier than forex!!
yes n no
stocks can be easly manipulated
one should follow related stocks news regular base
earnings seasons can be big pain in the ass
openning gaps very often
needs more initial capital to trade
higher cost
limited trading time

regulated
longer n stronger trends
way more instruments
limited trading time

n more
WaBaS Where are Buyers and Sellers
  • #7
  • Jun 11, 2017 6:22am Jun 11, 2017 6:22am
Quoting mr.brown
{quote} yes n no stocks can be easly manipulated one should follow related stocks news regular base earnings seasons can be big pain in the ass openning gaps very often needs more initial capital to trade higher cost limited trading time regulated longer n stronger trends way more instruments limited trading time n more

Off course there are exceptions to the rule.. but... if you buy stocks (companies) that are doing well (which is actually 10-100x easier than forex to calculate/guess) you will make money...

Remember: the stock market is almost always wrong but the stock will be rightly priced probably once a year or more due to quarterly/yearly statements....

And also, there are more people buying stocks (long) than shorting AND! the companies doing badly will disappear!! A country won't!

The only profitable way I have made money in forex is from the carry trade and with this mentality..

I do however wish you all of luck and I hope some of you will read this when you have tried it all and failed

kisses
  • #8
  • Jun 11, 2017 6:38am Jun 11, 2017 6:38am
Quoting Larseg
{quote} Off course there are exceptions to the rule.. but... if you buy stocks (companies) that are doing well (which is actually 10-100x easier than forex to calculate/guess) you will make money... Remember: the stock market is almost always wrong but the stock will be rightly priced probably once a year or more due to quarterly/yearly statements.... And also, there are more people buying stocks (long) than shorting AND! the companies doing badly will disappear!! A country won't! The only profitable way I have made money in forex is from the carry...
"the stock will be rightly priced probably once a year or more due to quarterly/yearly statements...."

Larseg, Could you kindly expand more on this? How is correct pricing related to yearly/quarterly statements...

Thanks
  • #9
  • Jun 11, 2017 9:46am Jun 11, 2017 9:46am
Quoting Larseg
{quote} Off course there are exceptions to the rule.. but... if you buy stocks (companies) that are doing well (which is actually 10-100x easier than forex to calculate/guess) you will make money... Remember: the stock market is almost always wrong but the stock will be rightly priced probably once a year or more due to quarterly/yearly statements.... And also, there are more people buying stocks (long) than shorting AND! the companies doing badly will disappear!! A country won't! The only profitable way I have made money in forex is from the carry...
how do u know the company will do good? cyristal ball ?
so called online giant $AMZN was almost losing money since 2014, would u buy it that day?
stocks market rallies well known fact. if it would be easy, every trader/instution would make gain
but ofcourse its easy to talk like "stocks r easier" after 8 yrs of rally why didnt u buy $TSLA $FB $AMZN $NFLX etc after the global crises ?

u are posting w/o knowledge, u have an idea w/o data
Attached Image (click to enlarge)
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WaBaS Where are Buyers and Sellers
  • #10
  • Jun 11, 2017 9:56am Jun 11, 2017 9:56am
Quoting mr.brown
{quote} how do u know the company will do good? cyristal ball ? so called online giant $AMZN was almost losing money since 2014, would u buy it that day? stocks market rallies well known fact. if it would be easy, every trader/instution would make gain but ofcourse its easy to talk like "stocks r easier" after 8 yrs of rally why didnt u buy $TSLA $FB $AMZN $NFLX etc after the global crises ? u are posting w/o knowledge, u have an idea w/o data {image}
w/ your thin stocks knowledge u r lucky u didnt trade those days while u would have been shorted many stocks regarding to ur trading strategy
$TSLA $AMZN $NFLX etc
WaBaS Where are Buyers and Sellers
  • #11
  • Jun 11, 2017 10:01am Jun 11, 2017 10:01am
Quoting Larseg
PS stock market is 10-100x easier than forex!!
Says every noob who sucks at trading.
  • #12
  • Jun 11, 2017 10:16am Jun 11, 2017 10:16am
Hi everyone,

I would not agree that stock markets are easier than forex or vice-versa. They require different skill-sets and abilities. In either case, there is no magic bullet.

In the forex market, in my view, the two core aspects for successful trading are psychology and risk-management. Within the stock market, the only people who make constant and consistent returns year on year are investors rather than traders (an exception to this would be Paul Tudor Jones). Investors, like Warren Buffett, look for opportunities which may come to fruition over several years.

In both cases, forex and stock market, it is the continual practice of risk management and long-term, rather than quick return, strategies that make winners. Compound interest takes care of the rest.

Just my two pennies worth.

Have a great Sunday everyone!
  • #13
  • Jun 11, 2017 1:32pm Jun 11, 2017 1:32pm
Quoting aaven
{quote} "the stock will be rightly priced probably once a year or more due to quarterly/yearly statements...." Larseg, Could you kindly expand more on this? How is correct pricing related to yearly/quarterly statements... Thanks

That is the good thing, the companies have to post results on how much they are making and you can act accordingly...
Or you can assume that a stock is going down because they can't sell enough products etc....

you get the idea... Forex is not like this, there is no real valuation, you buy nothing of value and that is the problem!
  • #14
  • Jun 11, 2017 1:44pm Jun 11, 2017 1:44pm
Quoting mr.brown
{quote} how do u know the company will do good? cyristal ball ? so called online giant $AMZN was almost losing money since 2014, would u buy it that day? stocks market rallies well known fact. if it would be easy, every trader/instution would make gain but ofcourse its easy to talk like "stocks r easier" after 8 yrs of rally why didnt u buy $TSLA $FB $AMZN $NFLX etc after the global crises ? u are posting w/o knowledge, u have an idea w/o data {image}

Ehhh... you should really stop trading and crack some books.

I said easier, not easy, but..if you buy an index - then tis actually easy!

ok, a stock is not purely valued by its loosing/earning money statement, its ok to loose money as loong as if they are expanding or have expanding possibilities and can make a lot of moeny in the future in dividends etc... , something like AMZN actually has done, and FB but not TESLA so Tesla should probably not be a buyer??? However this is why stocks are easier, there are lots of companies and you can buy whatever you believe in, and if you are broad its even easier... You can actually even buy sp500 index and make 9-10% a year without doing anything!
  • #15
  • Jun 11, 2017 1:45pm Jun 11, 2017 1:45pm
Quoting FrontierGV
Hi everyone, I would not agree that stock markets are easier than forex or vice-versa. They require different skill-sets and abilities. In either case, there is no magic bullet. In the forex market, in my view, the two core aspects for successful trading are psychology and risk-management. Within the stock market, the only people who make constant and consistent returns year on year are investors rather than traders (an exception to this would be Paul Tudor Jones). Investors, like Warren Buffett, look for opportunities which may come to fruition...
Great. I appreciate your point. Strategies will work better when you have real money and risk management approach. Otherwise you don’t get maximal result from trading at all.
  • #16
  • Jun 11, 2017 1:51pm Jun 11, 2017 1:51pm
Quoting The-Flipper
{quote} Says every noob who sucks at trading.

I can guarantee that I am a better trader than you, I have made somewhere between 20-50% for several years so I am actually in that 5% league, I do however make more money in stocks and have stopped trading forex as it is EASIER not EASY!!!!

Thank you for the positive reply, I hope you have a great day off today cause you need to be ready for loosing money tomorrow
  • #17
  • Jun 11, 2017 1:53pm Jun 11, 2017 1:53pm
Quoting FrontierGV
Hi everyone, I would not agree that stock markets are easier than forex or vice-versa. They require different skill-sets and abilities. In either case, there is no magic bullet. In the forex market, in my view, the two core aspects for successful trading are psychology and risk-management. Within the stock market, the only people who make constant and consistent returns year on year are investors rather than traders (an exception to this would be Paul Tudor Jones). Investors, like Warren Buffett, look for opportunities which may come to fruition...
I am talking long term trading yes,
  • #18
  • Jun 11, 2017 5:08pm Jun 11, 2017 5:08pm
Quoting Larseg
{quote} I can guarantee that I am a better trader than you, I have made somewhere between 20-50% for several years so I am actually in that 5% league, I do however make more money in stocks and have stopped trading forex as it is EASIER not EASY!!!! Thank you for the positive reply, I hope you have a great day off today cause you need to be ready for loosing money tomorrow
I've seen and done it all.
If someone tells me that stocks are easier than Forex, then he's FOS.

But whatever.
I don't care.

FX beats every other market in trading conditions,volatility and costs.

But i don't expect noobs to get that cause they have no clue how to make money.
  • #19
  • Jun 11, 2017 7:40pm Jun 11, 2017 7:40pm
Quoting The-Flipper
{quote} I've seen and done it all. If someone tells me that stocks are easier than Forex, then he's FOS. But whatever. I don't care. FX beats every other market in trading conditions,volatility and costs. But i don't expect noobs to get that cause they have no clue how to make money.
No trading is easier, they only looks like to be easier but earning money from trading business requires a lot of skills however the good part is that we can learn those skills.
  • #20
  • Jun 11, 2017 8:36pm Jun 11, 2017 8:36pm
Quoting Larseg
..You should start with picking 1 day in the week or month for what is the best buying opportunity...
I think that's the reason most newer traders lose - how on earth is a newer trader to know what is the best buying opportunity? Risk management is the easy part, it's the finding the best opportunity which makes someone a successful trader. If someone maintains a disciplined Risk 1: Reward 3 but has one thousand losing trades for each profiting one, he's going to have a net loss.
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