Are you making a living trading FOREX?

[tradertrader]

"The result from any trading strategy completely depends on your money management"... is wrong and is harmful thinking.

The big problem most traders have is they have a disadvantage (negative expectation) on their bets. More precisely, they have a disadvantage on the sum total of the money they put in action.

But yes.... poor money management, mostly over betting, can break a person who has an edge on their bets.

And yes... poor trade/ bet sizing can cause other problems as well.

The big winning trading firms, like Renaissance Technologies, devote serious and continued thought to looking for meaningfull edges.

For a cautionary tale involving over betting (poor money management) look at Long Term Capital.

unlike most you are intelligent but I disagree
the edge belongs to a trader himself/herself and not strategy or tactics
positive expectancy, negative expectancy are all just illusions --things "gurus" came up
money management is the only objective tool available to traders
Renaissance Technologies' competitive advantage is math PhDs and computer power they use
Long Term Capital's Meriweather traded like they did at Salomon Brothers
good bye wish you well

 

[777]

unlike most you are intelligent but I disagree
the edge belongs to a trader himself/herself and not strategy or tactics
positive expectancy, negative expectancy are all just illusions --things "gurus" came up
money management is the only objective tool available to traders
Renaissance Technologies' competitive advantage is math PhDs and computer power they use
Long Term Capital's Meriweather traded like they did at Salomon Brothers
good bye wish you well

What I am saying is that winning traders must have an edge to pair with money management.

Some examples:

You can not beat roulette by managing your money well because you have a disadvantage on your bets: negative expectation.

A skilled poker player can make a living if he manages his risk well.

A blackjack card counter will win in the long run, if he is allowed to play, if he does not continually risk too high a percentage of his bankroll on small edges.
_______

Example of how to lose money gambling with an edge:

If I have a coin that will come up heads 60 percent of the time I should do quite well continually betting on heads.

However, if I continually bet 50 percent of my bankroll on heads, in the long run, I will lose money.

 

[MichaelJohnFX]

Not me personally, it's a side income for me atm. Despite making quite a bit on it, I'd never quite my day job for it. But that's just personal preference

 

[Riley.R]

I think I would really love to see myself making a living from forex some day.

 

[cortney302]

I think I would really love to see myself making a living from forex some day.

Just like you, I also plan on getting into forex trading full time. But I’ve seen many of my friends losing onto their hard earned money. Worst part is they don’t know what went wrong despite watching lots of videos and eventually have left it far behind. I guess that’s what is holding me back in leaving my day job.

 

[hilfspaul]

Just like you, I also plan on getting into forex trading full time. But I’ve seen many of my friends losing onto their hard earned money. Worst part is they don’t know what went wrong despite watching lots of videos and eventually have left it far behind. I guess that’s what is holding me back in leaving my day job.

Well I guess the reason is that they completely depended on the videos when instead they should have invested their time in studying the fundamentals of trading and the currency pairs along with the factors that affect them, before risking their money. See, unless you are well adept with the working of the market, how can you expect to mint money, especially when it’s so volatile.
Another aspect that I give a lot of weightage is to design a trading plan. The key factors should include setting up your profit goals, your risk tolerance level, the methodology you’ll be following and the evaluation process. Remember to start your trading journey with a demo account. There are many brokers like Fxview, eToro, IG, and Forex.com offering good platforms like MT4, MT5, and Acttrader to practice on.

 

[cortney302]

Well I guess the reason is that they completely depended on the videos when instead they should have invested their time in studying the fundamentals of trading and the currency pairs along with the factors that affect them, before risking their money. See, unless you are well adept with the working of the market, how can you expect to mint money, especially when it’s so volatile.
Another aspect that I give a lot of weightage is to design a trading plan. The key factors should include setting up your profit goals, your risk tolerance level, the methodology you’ll be following and the evaluation process. Remember to start your trading journey with a demo account. There are many brokers like Fxview, eToro, IG, and Forex.com offering good platforms like MT4, MT5, and Acttrader to practice on.

Thanks and I’m sure this could be the reason. I on the other hand have been working on learning about the market in detail with courses designed for the beginners, so that’s sorted. Now, when I’ll be through with the course and start trading on a live account, what should be the first easy strategy to understand the trade better?

 

[hilfspaul]

Pin Bar. That’s the thing you should be looking for. Quiet an obvious pattern; it makes identifying and understanding the chart quite easy for beginners. Other strategies that I swear by are to know your entry and exit points including weekly and daily charts. Also, undertake weekly analysis at the end of the week to determine the patterns and news that affected or could affect your trade and how to go about it.

 

[Pegrinn]

These are really good tips that will help you make trading more convenient and productive.

 

[Dr_Trade]

I often observed from my trading experience that most of the traders try to believe in trading strategies that are not backtested and ending up with losing. You can search on the existing trading strategy, but it is better advised to use them as a backtesting/demo trading rather than trading live. My favourite is the bollinger band strategy that helps me to predict the moment and gives me confidence to enter and exit the trade at the right moment.


You can search on the existing trading strategy, but it is better advised to use them as a backtesting/demo trading rather trading li