Forex Trading

[Vitaly the Winne]

I know this is by no means a new topic, and @MJ DeMarco even talked about it in TMF , what are your guys's experiences with curency trading as a process focused discipline, rather than event driven success?

For those of you who are currently doing it, what did it take to master the skills in order to achieve consistently profitable trading, and what are some sacrifices you've had to make, and some things you've had to say no to in order to prioritize mastery?

 

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[mjason]

I wonder why no one have ever replied to this thread. Basically I am a currency trader too. But I have just got into this. So basically I am a beginner in FOREX. I have only made 10 trades so far out of which 6 winning trades. I am learning about FOREX trading from Udemy courses. If you're interested you should check too. For me FOREX trading is a great thing to do but I don't know why no one is talking about that here. I know that is not something related to entrepreneurship but is that the reason ?

 

[SchenkFinancial]

Here is the thing about Forex. Image a casino. If you look at the electronic scoreboard at the bottom of a roulette wheel, you are going to see long runs of red and long runs of black.

It should always be red and black on a rotating basis but life is not like that. You get clusters of good luck and clusters of bad luck. Most traders become euphoric when they have clusters of good luck and this jeopardizes their money management.

The profitable Forex traders in this business do not read markets better than anybody else, they just manage risk exceptionally well. The objective of doing business, whether you are in the media business, whether you are in the stock market or the Forex market, is to do business at the least risk.

 

[rynor]

I used to trade Forex earlier this year. I studied for 6+ months, learning different strategies, all of the basics, etc. I even took a couple of courses on it just to see what other people look for and base their trades off of. Technical analysis + some fundamental was my strategy of choice.

Through a lot of trial and error, I found that you typically have to start with high capital upfront in order for it to be "worth it". BUT on the same token, the risks are significantly higher with bigger capital and leverage. One or two bad trades can wipe out your account if you're overleveraged. In my experience, I was using a small account trading microlots, only making $5-10 per successful trades. The pip gains were good, but I simply wasn't making enough money to sustain myself, and I didn't have the necessary capital to put into trading. It wasn't really feasible to keep going. Additionally, I realize that there are a lot of bigger players in the market that have the ability/capital to shift the trade directions in their favor, which wipes out a lot of the smaller guys.

My advice is before you start trading real capital, use a demo account for months until you become consistently profitable and have idea about risk analysis. You can take the BabyPips course to get your feet wet with the terminology, strategies, etc. Lastly, you will have to realize earlier on that nobody wins every trade, and that there is a lot that goes into trading.

There are also a ton of fake "gurus" in Forex as well. Do your research before you buy courses. A lot of the teachers don't make their money trading Forex, but rather off of the courses they're selling. Those who can, do; those who can't, teach.

Hope that somewhat helps and best of luck to you.

The profitable Forex traders in this business do not read markets better than anybody else, they just manage risk exceptionally well.

Very important to understand. The best traders have the best psychological understanding of how to deal with risk. One bad run will crush your confidence and you will start to make terrible decisions with your capital. It's important to be able to walk away.

 

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