How hard is it to make $100k-$200k in forex?

[Trembling Hand]

I didn't have to look elsewhere. I traded forex before I traded futures, and I switched back for the lower required margin and more flexible position size. I have changed my approach a few times, mostly in the first few months, and more recently by trading slower timeframes.

So you where making money trading a couple of hours a day on indexes but you moved away from making money on something because you wanted lower margins

Interesting

 

[nomore4s]

I didn't have to look elsewhere. I traded forex before I traded futures, and I switched back for the lower required margin and more flexible position size. I have changed my approach a few times, mostly in the first few months, and more recently by trading slower timeframes. I'm not going to say trading is easy, because it's a subjective statement and one that has caused a lot of friction in the past.

So you where making money trading a couple of hours a day on indexes but you moved away from making money on something because you wanted lower margins

Interesting

I also find this interesting.

Mr J, I remember having a running discussion with you about your claims regarding how easy trading is and that doubling your money was going to be no problem at all.

It appears that maybe it isn't so easy and you're not quite as profitable as you would like to make people believe?

 

[Naked shorts]

While we're at it... Mr J, can you change your avatar pic yet?!!

 

[Mr J]

So you where making money trading a couple of hours a day on indexes but you moved away from making money on something because you wanted lower margins

Interesting

I don't care about the market I trade, but the strategy I use. My current strategy suits me perfectly, and it is better used on forex at the moment. I don't have a large amount of capital and I'm reasonably aggressive with what I do have, so the lower margin requirements of forex and more flexible position sizing are very important.

Why did I change? Because the strategy I was using for futures (and forex before that) didn't suit me. Short-term trading, glued to the monitor etc just isn't my thing. I wasn't putting in the effort, so I changed to a strategy that better suits my personality.

Mr J, I remember having a running discussion with you about your claims regarding how easy trading is and that doubling your money was going to be no problem at all.

It appears that maybe it isn't so easy and you're not quite as profitable as you would like to make people believe?

I didn't say doubling money was easy, I said trading was easy. I don't care how profitable others think I am, and haven't tried to pass myself off as anything other than what I am. Whatever conclusions people draw are their own assumptions.

Back to topic?

While we're at it... Mr J, can you change your avatar pic yet?!!

Sure.

 

[graham_h]

Bond Uni do a dgree corse in commerce that lasts two years.
They have a trading room set up.
That'd be the best way I'd reckon
Graduate from there and work for one of the major banks

 

[Naked shorts]

Bond Uni do a dgree corse in commerce that lasts two years.
They have a trading room set up.
That'd be the best way I'd reckon
Graduate from there and work for one of the major banks

Dont you need money to go to Bond?

 

[Trembling Hand]

Bond Uni do a degree course in commerce that lasts two years.
They have a trading room set up.
That'd be the best way I'd reckon
Graduate from there and work for one of the major banks

Interesting. And what do they do in this trading you?

I'd be very surprised if that was the "best" way considering how quickly academic theory breaks down once its applied to the market with real $'s but interested to hear what they do.

 

[surfingman]

Bond Uni do a dgree corse in commerce that lasts two years.
They have a trading room set up.
That'd be the best way I'd reckon
Graduate from there and work for one of the major banks

Can't see any floors in that comment!

I thought along the same lines when I was at Uni, reality is far from this unfortunately. You will be starting from the bottom and working your way up, the best way is know someone who can get you a start with a good company and can help you along the way.

Although I did finish just before the GFC, but hey I hope this works for you Graham.

 

[graham_h]

I'm not going to bond Uni
My point was if you want to be a "trader" not necessarily Forex, I would say to make good money doing, it would be a good idea to get qualified

This guy did and he's going ok ;-)
http://www.farleigh.com/

 

[Knoxy]

My experience is that trading is about mastery of self. Therefore 'the' university is the markets trading real money, not an academic institution. But I guess I studied engineering at uni rather than trading so no first hand experience. Also don't believe you learn that much paper trading, completely different story with $s at stake.

Recently XAUUSD and GPBJPY have had over 200 pt daily range and you can easily switch when the next pair's volatility takes off. If your method can't consistently take 20 - 30 pt out of a 200pt daily range as some suggest above, you might as well give up trading forex.

 

[Mr J]

Also don't believe you learn that much paper trading, completely different story with $s at stake.

You can still see the markets move, so there's plenty to be learned.

My point was if you want to be a "trader" not necessarily Forex, I would say to make good money doing, it would be a good idea to get qualified

How does study of maths, economics etc make one "qualified" for an activity they did not study?

 

[Knoxy]

You can still see the markets move, so there's plenty to be learned.

Agreed, I wasn't saying there is nothing to be learned by paper trading. My advice to a newb would still be to open a nano account, realising the likelihood of losing a couple of hundred bucks but being exposed to the full learning experience. Why restrict yourself to half the subject paper trading? (unless you're too broke in which case fx isn't for you anyway...)

As far as learning maths etc., I feel my analytical background ie. degree and 25 y engineering is the basis of my trading method. I can see maths background as useful if folk want to go that way.

 

[MRC & Co]

Agreed, I wasn't saying there is nothing to be learned by paper trading. My advice to a newb would still be to open a nano account, realising the likelihood of losing a couple of hundred bucks but being exposed to the full learning experience. Why restrict yourself to half the subject paper trading? (unless you're too broke in which case fx isn't for you anyway...)

And then those on 'nano' accounts, always remain that way, am yet to see anyone step up and do good size who starts on an account that small.

Use a SIM, refine your strategy, and replicate it live. It will be a lot easier to start hitting size when your doing it successfully on the SIM anyways.

 

[Trembling Hand]

And then those on 'nano' accounts, always remain that way, am yet to see anyone step up and do good size who starts on an account that small.

Use a SIM, refine your strategy, and replicate it live. It will be a lot easier to start hitting size when your doing it successfully on the SIM anyways.

XACTLY.

 

[vincent191]

Interestingly enough I have received a couple of unsolicitated emails recently promoting courses to trade forex. I have also heard a few ads on radio promising quick returns trading fx.

One of the common themes is a woman who sounds like an ordinary housewife saying "I have learnt how easy & profitable it was to trade fx and now I earn a good income by just trading a few hours everyday from home."

The email promotes a system whereby you can trade fx profitably regardless of whether the share market goes up or down. Readers are offered an invitation to attend a free seminar. I suspect "strong arm" tactics will be applied to sell you one of those sure fire systems during the seminar.

My personal belief is that trading fx is NOT for everybody and with every kind of investment especially betting on which way the market will move involves a large degree of risk. The higher the promised return and easy money the higher the risk.

Where have all the flowers gone, Oh when will they ever learn.....Bob Dylan.

 

[Mr J]

My advice to a newb would still be to open a nano account, realising the likelihood of losing a couple of hundred bucks but being exposed to the full learning experience. Why restrict yourself to half the subject paper trading? (unless you're too broke in which case fx isn't for you anyway...)

Paper/nano is pretty much the same. We will only learn and develop our emotional and mental limits when we play with amounts that are meaningful to us.

As far as learning maths etc., I feel my analytical background ie. degree and 25 y engineering is the basis of my trading method. I can see maths background as useful if folk want to go that way.

I'm sure it can help, but how many others with your background would make for a good trader? How much importance should be placed on your ability to transfer and apply that knowledge?

One of the common themes is a woman who sounds like an ordinary housewife saying "I have learnt how easy & profitable it was to trade fx and now I earn a good income by just trading a few hours everyday from home."

Yes, I've seen that one. Gave me a good laugh.

My personal belief is that trading fx is NOT for everybody

It's not for most. People will generally make poor traders for the same reasons that most people are poor gamblers.

 

[jersey10]

It's not for most. People will generally make poor traders for the same reasons that most people are poor gamblers.

MrJ
Can you elaborate on this? I would be interested to hear your thoughts

 

[Trembling Hand]

MrJ
Can you elaborate on this? I would be interested to hear your thoughts

My guess is they don't play the numbers they play their ego. Wanting the big win, wanting to be right, forcing their needs onto the outcome.

 

[Mr J]

Pretty much. They look for the winners or the big score, with a poor understanding of probability, risk, reward, variance, price etc. In sportsbetting for example, most people look to pick "winners", usually favourites, and with little regard to current and historical price, or price at other betting shops. It's not so much trading and gambling, but any activity that requires analysing price and probability. For whatever reason people just don't seem to do it well naturally, despite the fact that it is a critical skill for survival (we do these calculations subconsciously over and over every day).

 

[Knoxy]

And then those on 'nano' accounts, always remain that way, am yet to see anyone step up and do good size who starts on an account that small.

Use a SIM, refine your strategy, and replicate it live. It will be a lot easier to start hitting size when your doing it successfully on the SIM anyways.

Think you're missing the point I was attempting. A nano account is a SIM account but with money involved. You can develop the same strategy in both, the demo account with it's extra zeroes has no extra advantage.

I don't advocate trying to build a nano into a full trading account. Just saying if someone new to FX with say 50k risk money comes along, they should consider trading a nano account first with a small portion to have some minimal 'skin in the game' rather than muck around for 6 months on a demo. They can open the real trading account but would first experience some of what having real money at stake involves. Don't think I'm alone in saying most traders act differently between demo and real and it's important to learn this about oneself.