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Forex is profitable ?

ComebackKing
May 13 2018 at 08:00
37 posts
I've no idea why anyone would bother scalping FX. Why not just trade currency futures on the CME? 100% transparent and no real 'spread' like FX or stocks.

Sky44
May 13 2018 at 08:23
9 posts
Even with low spreads am now sure that scalping works long term. I've never seen a profitable scalper account

SCR Traders (Pikasso)
May 14 2018 at 06:29
168 posts
ComebackKing posted:
I've no idea why anyone would bother scalping FX. Why not just trade currency futures on the CME? 100% transparent and no real 'spread' like FX or stocks.


Why not? many trade CME, but they choose another places to share expirience and demonstrate their results. Here is mostly forex spot.

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maria_taylor
May 14 2018 at 06:48
40 posts
Definitely Forex is profitable but not for everyone. some traders have made millions from Forex as well some have lost millions. All you need for profitable trades is in depth knowledge of Forex, good experience and of-course you have be patient enough.

ComebackKing
May 14 2018 at 13:47
37 posts
Pikasso posted:
ComebackKing posted:
I've no idea why anyone would bother scalping FX. Why not just trade currency futures on the CME? 100% transparent and no real 'spread' like FX or stocks.


Why not? many trade CME, but they choose another places to share expirience and demonstrate their results. Here is mostly forex spot.


I said why not, because of the spreads. If you are scalping, why give yourself such a disadvantage from the start? I 100% understand FX as a longer term trade but anything intraday IMO is better on the futures market - simply because of the spreads.

As far as making money in any market trading, most fail. FX isn't a bad place to learn because you can trade mini and micro lots and not lose a lot of money for your tuition while you are learning. There's never a guarantee that you will ever make money, no matter how much time and effort you put in. You should be willing to invest a decade of your time and effort because it might take that long.

vontogr (togr)
May 15 2018 at 11:47
4862 posts
ComebackKing posted:
I've no idea why anyone would bother scalping FX. Why not just trade currency futures on the CME? 100% transparent and no real 'spread' like FX or stocks.


I am not familiar with currency futures on the CME
What are the costs trading there?

Straycat
May 15 2018 at 11:50
12 posts
I've been trading for years and have only recently started to be consistent (non scalping though). Stay away from big spread brokers they will just steal your money

ComebackKing
May 15 2018 at 14:03
37 posts
togr posted:
ComebackKing posted:
I've no idea why anyone would bother scalping FX. Why not just trade currency futures on the CME? 100% transparent and no real 'spread' like FX or stocks.


I am not familiar with currency futures on the CME
What are the costs trading there?


Should be between $4 and $5 per contract. Most discount brokers will charge $.50 or less per contract, the rest of the cost are CME exchange fees that cannot be avoided. There are no mini or micro lots so that's definitely a disadvantage. Tick increments and values differ by currency so you'd need to do some research there.

I will say that FX is very forgiving for newer traders, you can still trade real money but also have a small investment so that when you lose - and you 100% will lose when you're learning, you won't lose a ton. There's no such environment with futures. There's still a ton of leverage of the mini/micro contracts on CME have no real liquidity so you're left trading the full size contract. This will get expensive in a hurry if you've not honed your craft. There are probably some platforms where you can trade demo accounts for as long as necessary for little to no cost but that's beyond my experience.

vontogr (togr)
May 15 2018 at 14:20
4862 posts
ComebackKing posted:
togr posted:
ComebackKing posted:
I've no idea why anyone would bother scalping FX. Why not just trade currency futures on the CME? 100% transparent and no real 'spread' like FX or stocks.


I am not familiar with currency futures on the CME
What are the costs trading there?


Should be between $4 and $5 per contract. Most discount brokers will charge $.50 or less per contract, the rest of the cost are CME exchange fees that cannot be avoided. There are no mini or micro lots so that's definitely a disadvantage. Tick increments and values differ by currency so you'd need to do some research there.

I will say that FX is very forgiving for newer traders, you can still trade real money but also have a small investment so that when you lose - and you 100% will lose when you're learning, you won't lose a ton. There's no such environment with futures. There's still a ton of leverage of the mini/micro contracts on CME have no real liquidity so you're left trading the full size contract. This will get expensive in a hurry if you've not honed your craft. There are probably some platforms where you can trade demo accounts for as long as necessary for little to no cost but that's beyond my experience.

For $5 you can buy sell 100,000 EURUSD with good forex broker. And with high leverage. So i do not quite see the advantage of futures contract.

ComebackKing
May 15 2018 at 14:41
37 posts
My point is that scalping is better done with currency futures. For the record, I don't scalp currencies at all. I do trade the ES but I'm also not scalping that and I only started to dabble in FX since I'm consistent with my ES trading.

I've stated my opinion and the reasons behind it. If I were to scalp or even trade currencies intraday I'd do so via futures on the CME, but I'm familiar with that exchange and the markets there. I don't like broker spreads, they are arbitrary and you're instantly losing money as soon as you enter a trade. That's not the case with futures (not counting commissions). I do chat with a professional FX trader quite often and he shares my opinion; actually he had that opinion before me :-) Regarding commissions, with the leverage in futures and dollars per tick, they end up being a very minor cost. If you're trading the Yen then 1 tick will cover the cost of your commissions. I trade the ES and 1 tick is worth $12.50, so even if I close a trade for a 1 tick profit, which is basically a scratch, I'm still making money. The opening move in the ES this morning was 50 ticks to give you a little context. Futures trading can get expensive very, very quickly if you're on the wrong side of the market - that's a big benefit of FX - you can be wrong and not lose a ton of money if you're trading micro lots.

In the end it does not matter to me if someone scalps FX or futures or whatever else, there's nothing in it for me either way. I do think that one owes it to one's self to at least explore all available options, even try them out to see what best fits. I've traded stocks, options, crude oil, gold and corn before I finally decided on S&P index futures. To me it's like going to college, you should take a few courses and see if something fits you.

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