Can you really make money on forex?
by admin on Tuesday, July 27th, 2010 | 4 Comments
Is it a scam? Has anyone here made any thing using this system? Maybe not quit your job money and move to an island but some extra income that would be deemed as good? Have you lost any money using this system? Do you think you did something wrong or that the entire system is a ploy by the website to steal your money lol? Please let me know. I’d like to know peoples experiences with this.
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I’ve read a lot about Forex, but I’ve never seen a proven profitable forex strategy, despite the claims of some scam web sites.
Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words "Forex" and "lose" to see this is the consensus.
Forex is what we call a "zero sum" game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the "bets" in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game.
Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you.
There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it.
Further complicating the problem is the large number of Forex scams on the internet. Most Forex websites are of questionable honesty. You will find many people on the Internet that claim they made a lot of money using Forex. They are usually liars trying to make money. They will say: "Go to Forexcrap,com/q2347." The "q2347" is a signal to the Forexcrap site that you are being referred to them by "q2347." If they sell something to you, "q2347" gets a kickback. These coded signals can be hidden by different methods in the link. Other people will refer you to their own private website or blog for the purpose of trying to get money off you. Also there are a good number of trolls out there that like to pretend they are successful forex traders just for the fun of it.
I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot.
Can you really make money on Forex. Answer: Yes.
What else are you asking? What website? What system?
Forex is a great place to make money. But you need to know that 95% of those that try, get killed in the first 1-3 months & quit (with losses exceeding 30% of their accounts). If you last a year… you have about a 50% chance of being profitable going forward.
Why?……
It’s very hard (the brokers lead you to be other wise….. paper trading means very little)
Little skill in technical analysis
No skill in trading money management.
Very fast moving markets.
High leverage
If a "system" or "robot" is offered…. run away as fast as you can.
If you have the time and desire to learn this trade….. be prepared to buy a couple of hundred dollars in books & spending a lot of time learning this skill.
After you learn it…… you have to develop the "art" of trading….. only you can do this for you!
I think the answer is YES. However, I think the hardest part is not to loose your money before you start seeing some profit
Anyhow, that was my experience when I started trading FX with a $300 mini account couple of months ago. I was down to 185$ only a few weeks after I opened my account, but then I relized that something was wrong
I was too involved in each trade, whenever I had a winning position I would always take profits right away, fearing that the market will turn back on me and not allowing the the profits to grow. When I had a loss I would panic, forget about placing a stop or move it even further into the loosing territory thus increasing the amount I lost.
Today I am up to $527 (which is not much for some) or 33% monthly return. I think the biggest lesson I learned for the past two months is that there is no place for emotions in trading, you have to always follow some basic rules for every trade:
1. Know at which point you are entering the market
2. Know where to place your stop (I usually place it 10 pips below entry so that I don’t loose more that $10 on each trade)
3. Know where to take profit
I hope this will help you and perhaps other forex beginner FOREX trader, who probably are wondering (like me in the beginning) : If Forex has such a high profit potential, why I am I only loosing money?
For further details about beginner Forex Trading check out this site: http://WWW.HOWTOTRADEFOREIGNCURRENCY.COM