Every trader's dream is to achieve trading for a living. Although it is very difficult, but it is doable.
In order to do that, first of all you need a startup capital. You cannot open an account in forex for $2000 and say I want to make a living from that! Any trading system or style, one wants to follow, will have a drawdown. And if you are looking at making around $1500-2500 a month, which is 150 to 250 pip if you are trading whole lots, then you should expect drawdowns of not less than 300 pips. Your account won't tolerate that.
Basicaly in order to be able to make 1500-2500 USD a month you would need to have an account of 25,000 USD or more. This means you are making around 6% a month. Which is also somehow diffcult to acheive too.
The next thing you need to look at, is finding a system. A good system is the key of success. If you have your own system or you want to follow another peron's system, you need to look at these things first: 1. Max Drawdown, 2. Feasibilty and hours of trading.
Another thing to take into consideration is money management, risk and reward. Personal things like Fear, Greed, and discipline.
show me somebody that is doing this. It cant be done they say only2-4% of 100 traders can do it the rest are Lozers
What systems can you reccomend to achieve these results?
great topic,,,there are lot of systems here but i thought trade in long range is so clearly. In this case we need patient and what the profits can we get it at the end of month,,^^
mmmmm, as u said the account must be 25,000 or more that good idea to walk to second step....margin will be far also trade with 2-3% to support account and get less lose.
How many traders can living with forex....?? look, marign call like monster he can eats everthing in his way,,,,people who created that system were know they will see lot of losses in forex...This system wasn't show unit internets born....traders before when they got lose pips..they didn't lose anything ..they just wait price moving up or down to get profit without margin,,,,,,,,,,,,when interents born they create that system.
Before thinking to start...we must know one thing how can we protect our account first.!! maybe i'm new here but, in forex no....i have 2.5 years experience...2 years enough wiht more readings and discovers.
i can share with u what i know
First let me say its my opinion that you have it backwards, the first thing you need is the system. then the capitol.
What I mean by that is learn to crawl before you walk, and walk before you run.
trade demo, trade small account. Treat every penny in your demo like it was your last one.
To take chances in a demo is a self deffeating practice.
I also think there are several systems that will produce good profit, if followed correctly. Thats what the demo is for to learn to follow the rules of a system to a T.
when everybody is winner, where the money come from?
are we rob the bank?
are we enemy of the bank? (e.g: george soros)
for forex because we get usd as basis so we are enemy of the Fed?
According to me, most who trade for a living does not scalp the market as we say, they usually trade on higher timeframes from H4 and over. You will be amazed how the simplest system works perfectly on higher timeframes. Most who trade for a living are therfore position traders.Most losers are those who sit and keep staring at the monitor for hours and hours thinking that they would make their first million next week. They are always looking for a system to catch each and every move. A totally false perception... Just try even the simplest systems on the H4 and see for yourself how at the end you are able to come up with some pips. Try using MA crosses, stochastics, adx, pivots, all of these work great of higher timeframes. Thats my two pips All the best.
Its not so much as where does the money come from more like a constant liquid transfer of wealth.No one actually owns money its more its value that determines how much there is.
As for the 2-4% thing well I see different figures on this every week.
It stems from a comment now documented in many books and online references made by FXCM's CEO Drew Niv (Well known scammer and crook) who said "hed be surprised if 15% of his customers ever made a profit."
Why would you take comments made off the record by known scammers in the FX industry as anything more than dribble then they get passed around from person to person and you end up with figures like this.
There is many people, many many people, who have made lots of money trading financial markets, and trade for a living even with company's setup etc to claim losses etc.
Alot more than 2-4% and the majority youll never know about because as youd know that information is confidential.
(Except for Drew Niv who would probably sell your underwear size to someone in afghanastan then pay lawyers to avoid prosecution)
what you mean by 2-4%?
i know that fxcm statement.
i know what we got if we win is from loser. who is the loser? that what we must describe.
how bout if so many winner on forex? e.g:this just fantasy story. one man is very expert and can easily double up their account, what happen if this man is unstopable. he can make 1 billion 2 billion and unlimited money, he can make 1000 billion in a month. from where is that money????
i doubt if only from loser trader. if he have enormous money to trade, what he face now is not trader but the central bank itself.
i make this post because sometimes i see on my chart. who foolish one that want buy instead of selling on that time. i doubt any trading system buying instead of selling in that time.
i think posibility for this case is the buyer is not chart trader, only common people that make regular transaction on bank, they are who change their currency for business, export import, vacation, etc. they didn't care for just few or hundred pip movement. they do buy 'not' because of the price crossing ma, hit support resistance,their EA give signal or anything else but because they just need it, whatever price it is. they just do 'real' transaction. are you see chart first if you change your usd to your country currency? LOL
remember on forex 95% transaction is for speculation, like us. only 5% is real transaction. so the loser on the case above is 'real' transaction.
and, do you know if all people selling one thing, this thing price will go down.
that just market law. for this case who is the loser? who have this thing.
it should work on currency too i think. we trader didn't care what price now, just care it will up or down. it's possible if all trader take one direction on one time and the loser is who have this currency->the Fed and their people.
i give you beautifull example:
on my country on 1998, george soros and other speculant is crushing my country currency. so for this example who is the winner and who is the loser you already know it. the winner is speculator and the loser is the country and the people. there is so many people (who are not trader) on my country suddenly rich on that time,especially exporter. reversely, importer suddenly bankcrupt.
i disagree,scalping is the way to go imaging targeting 1 pip with 10 standard lot which is 100usd
for a month just target 10pips and that becomes 1k usd
tight stop with trailing is the way to go - the problem is having a 90% accurate system that's about it