Q&A: Is it possible to make a good living trading Forex?
Question by William M: Is it possible to make a good living trading Forex?
I am nearly 18, and I have a very strong interest in Forex trading. I have a practice account with FX Express and have discovered some interesting things and techniques that I’ve discovered myself on how to make money.
I’ve developed my own strategy that works everytime I trade so far, and I’m making 10% compounded everyday I place a trade. in fact I want it to be my career. I will open up a live account with real money as soon as I turn aged 18 with maybe a couple of hundred. The only problem is that my mum and step-dad say “You’ll never make a living out of it”, or “You’ll lose all your money.” What I’d like to know is if its actually possible to make a decent living out of Forex trading and do you or anyone you know currently do this as a day trader. I’d like to prove them wrong.
Best answer:
Answer by MikeJ
There’s no guarantee you’ll lose all your money, as your parents say, but the odds are definitely out of the beginner’s favor (the same can be said for anyone new to trading). That said, no one can tell you with absolute certainty that you won’t succeed — after all, some do!
I distrust “retail forex” practice simulators as the broker has an incentive to get you to trade. In “retail forex”, the opposite side of each of your trades is taken by your broker, so they generally profit if you trade a lot and lose. One way to confirm practice results might be to look at the foreign currency quotes of a third-party site and make sure your trades are still profitable. Be sure to take into account the spread, which in effect is paid to the broker as a transaction fee every trade.
Also, beware the fallacy that hard work and intelligence necessarily lead to success in trading. Literally hundreds (if not thousands) of former floor traders, who had the advantages of top educations and years of industry experience, are now unable to make a dime in today’s markets. Markets change all the time, and no amount of effort guarantees anything.
Add your own answer in the comments!
Yes, it’s possible, but not with a couple of hundred dollars of starting capital. Think about it, for many professional traders, having a 50% profit on the year is considered a good year. If you start of with $ 200, and make 50% profit, you would have $ 100 profit. Is $ 100 enough for you to live off of? Not unless you live in a cave.
However, if you start off with $ 100,000 capital, and make 50% profit for the year, then you would end up with $ 50,000. Is that enough to live off of? Probably yes.
Yes, I know $ 100,000 is a lot of money. But you can start up with $ 5,000 and work your way up. You are still young. I would get a job and start saving, and on the side, continue to trade and research using a micro account. (Notice how I didn’t say demo account because demo accounts success do not translate to real account success). Anyways, once you know you can be profitable with real money, then you wouldn’t hesitate as much to put in $ 5000, or $ 10,000 or whatever you have saved up in your account.
Lots of people make great living as day traders. But it takes time and patience to get there. Hope this helps.
Yes, it is possible to live off trading. However, your expectations are too lofty. If you think you can make 10% a day on and on, you will have a rude awakening.
what if your money made you 5 – 20% per month
with no risk at all,what if you dont need to work and just enjoy life
what if you can watch your wealth growing while you are having fun
visit myfxfunds dot com
The real opportunity for attaining wealth is available for the Forex trader if you are willing to learn and stay disciplined. Forex is one of the world’s largest financial markets dealing in the real time exchange of currencies of different countries. This currency exchange market has a greater volume of buyers and sellers than in any other financial market of the world.
The Forex market may seem easy at times but I can assure you that it is not. You must have a good education and experience prior to trading otherwise you will lose most if not all of your money.
You should be able to decide on the capital investment required and risk involved in order to determine how much you can put up for initial capital for trading. I highly recommend getting a good Forex trading broker with low commissions, fees, etc.
One of them i found is http://www.finexo.com/