I'm a newb to forex. I've invested in stocks for several years, and have traded short-term for a few years (options as well). After seeing the alleged 90% failure rate printed many times (can anyone cite an actual study and its methods for deducing this number) I just wanted to ask: what is a realistic expected return (whether per year, month, whatever)?
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Reality of Forex Investing ?
- Thread starter nazsmith
- Start date
Hey there,
unfortunately there isn't a realistic or expected return. I've seen some guys return 1000 pips in a month and others lose a 1000 pips in a month. Your success is determined by your commitment. You need to understand how the market works and what makes it move.
Personally, I'm doing fairly well. I've never really traded often, and I'm relatively new to forex. However, I do have basic TA skills and I escpecially understand fundamentals of the market. Three weeks ago, I was trading stocks and decided to "invest" for the long term in a handful of companies. Low and behold, the market took a huge dump and I was down almost 20%. I contemplated pulling my money and concentrating on school, but my buddy told me to take a look at forex. So I did! Over the past three weeks I've traded the USD/CAD and the EUR/USD. I've made my losses back plus some. I've also quit my part time job since I make more doing this a couple hours in the morning, and I can now concentrate more on school.
As for that 90% failure rate, its kind of hard to judge because there is no way to evaluate the commitment and effort of every trader out there. Some people research the hell out of everything (usually successful) and some decided to trade because they have a gut feeling or because the chart looks pretty (usually failures). I, for one, believe that if you commit yourself and actually put the effort in, you can make a decent chunk of change.
My thoughts,
Eric
unfortunately there isn't a realistic or expected return. I've seen some guys return 1000 pips in a month and others lose a 1000 pips in a month. Your success is determined by your commitment. You need to understand how the market works and what makes it move.
Personally, I'm doing fairly well. I've never really traded often, and I'm relatively new to forex. However, I do have basic TA skills and I escpecially understand fundamentals of the market. Three weeks ago, I was trading stocks and decided to "invest" for the long term in a handful of companies. Low and behold, the market took a huge dump and I was down almost 20%. I contemplated pulling my money and concentrating on school, but my buddy told me to take a look at forex. So I did! Over the past three weeks I've traded the USD/CAD and the EUR/USD. I've made my losses back plus some. I've also quit my part time job since I make more doing this a couple hours in the morning, and I can now concentrate more on school.
As for that 90% failure rate, its kind of hard to judge because there is no way to evaluate the commitment and effort of every trader out there. Some people research the hell out of everything (usually successful) and some decided to trade because they have a gut feeling or because the chart looks pretty (usually failures). I, for one, believe that if you commit yourself and actually put the effort in, you can make a decent chunk of change.
My thoughts,
Eric
Quote from nazsmith:
I'm a newb to forex. I've invested in stocks for several years, and have traded short-term for a few years (options as well). After seeing the alleged 90% failure rate printed many times (can anyone cite an actual study and its methods for deducing this number) I just wanted to ask: what is a realistic expected return (whether per year, month, whatever)?
Think of it like a poker table. You can get lucky for a while and even poor traders can have a long profitable run but eventually the most skillful players get all the chips. Some people necessarily lose because they have a spread (rake) that decreases the pot with every trade, so even if they have a break even strategy there are costs to overcome that will make breakeven a loser. A skilled trader can be more profitable in FX than in nearly any other market which is what keeps people coming back.
Trader/God
Quote from risktaker:
You guys all sound like a bunch of fake hustlers posting here to rustle up some more new idiots and take them for a few $K each. Forex sounds worse than Livermore's sad description of a bucket shop in his day.
Yeah these guys really do! But my trading is FOOLPROOF and RISKFREE and has 200% RETURNS. Risktaker I would be happy to trade for you for only 50% of all profits. But only cause its you!
Trader/God