The honest and clear answer is NO. You can't depend on anyone or even any system, EA or MAM/PAMM or signal service etc to make a passive monthly income as usually it is advertised by the forex brokers or service providers.
All such systems or services ultimately make money for the system developer or service providers while wiping out the balance of the retail trader now or later. This is the hard truth and many traders may disagree on this point, but I am saying this after more than 15 years of trading experience with unlimited trials and errors with unlimited highly sophisticated automated trading systems as well as manual trading system and because of some fundamental facts:
1.Forex market is designed for retail traders to loose so that the lost money will flow to the big players pockets who deal with few million USD to Billion USD and they usually make 2% to 5% per month which is also not guaranteed all the time. In this process, the retail forex brokers, signal providers, PAMM/MAM providers play a role in attracting traders to invest and loose ultimately once they have made enough profit. It is portrayed in websites that 95% of traders loose, but I can say that it is almost 99% of traders who loose and only 1% make might be making profit and also, not consistently every month or every year etc.
2.Irrespective of whichever strategy a trader uses the forex market adjusts itself to make it a zero sum game so that the strategy will either permanently fail or give a huge drawdown to wipe out the balance.
3.Forex trading is not a job. It's a risky business and so those who manage to survive in the market, then they sometimes make money in few years small or big depending on their risk taken and the markets and provided if they stay away during bad markets whether months or years, but there is no guarantee to make money consistently every month just like salary or passive income etc.
So all the fancy advertisements in various websites are just to accumulate enough buyers or investors before they wipe out the balance and then, change the EA name or service name etc and repeat. That may sound very hard for many forex traders, but that is the forex game!!!
I will not call forex as gambling from my point of view, but it might be called as gambling based on understanding of forex market by the regular retail traders. Forex is a business and so who understands it as business may make profit sometimes, but who understands it as a job will ultimately keep expecting for ever to make some money monthly basis and continue his loosing cycle month after month and year after year.
So understanding the forex market behavior is very important to make profit sometimes and not like the retail traders expecting 100% per month or 1000% per month etc for ever. Hardly maximum 5% per month on average can be possible if we consider a trading period of 6 to 12 months which is nothing for a retail trader if he invests few thousand dollars. Take example of top hedge funds like BlackRock or Renaissance etc and they even don't make money every year and sometimes they give large drawdown as well. So if someone is trying to just spend few thousand dollars and trying to make money consistently, he might be just gambling which I can say.
But in reality, gambling or business, all such terminology doesn't matter in forex. Understanding of forex market and surviving in the forex market, waiting for the right opportunity, making profit and avoiding bad markets are some of the tips someone can follow to make overall profit year after after without guarantee of course.
Finally, as a rule of thumb in forex, never invest in forex which you can't afford to loose. So in that context, someone can gamble and keep some hope using automated or semi-automated type of trading systems. These are good for trials and errors with small amount of money which should be okay to loose also just like gambling.
What is the full meaning of gambling? gambling, the betting or staking of something of value, with consciousness of risk and hope of gain, on the outcome of a game, a contest, or an uncertain event whose result may be determined by chance or accident or have an unexpected result by reason of the bettor's miscalculation. slot machine.
Having said that, (or copy paste it :-). What if you are the casino and have the odds on your side, is it still gambling then? What about the pro pokerplayers, they have loosing streaks as well, but in the long run they are profitable. The best trader who explains this on youtube is Mark douglas.
Is it worth putting your time in this to learn? Well, i'm trading now for 5 years and still learning but profitable. The learning process will never end, just stay humble and on track. For me it was worth putting my time and money in this, but it was never easy.
Look for a good mentor, and go for it. But give it some time.....:-)
99% of traders lose money, you can't expect to win every time so yeah ! To be really ruthless is to not take any of these lies. Trading is just a business, so treat it like one ! but it's hard anon, do you know why ? Because it's MONEY and money is connected to emotions the truth is over 80% of traders are emotional in the markets and that's why they lose everytime In business you create product to make you money, in trading - you are the product !
Forex trading is undeniably a lucrative business. However, it will necessitate extensive subject knowledge and expertise. Forex trading is profitable. You can also learn it with or without the assistance of a mentor.
Yes, you can be really profitable in the long-run if you focus on your learning in the initial days. And there are many retail traders who are profitable in the long-run by constantly making the efforts, so it is quite possible.
Yes there are profitable retail traders but they generally keep themselves to themselves as let's be honest the space is full of toxicity towards anyone who claims to be successful due to the sheer number of scammers that aren't and claim to be.
If you can't spot the liquidity then you are the liquidity.
sebking1986 posted: Yes there are profitable retail traders but they generally keep themselves to themselves as let's be honest the space is full of toxicity towards anyone who claims to be successful due to the sheer number of scammers that aren't and claim to be.
You are 100% correct.
There are lots of retail traders that make decent money in this business. But they don't just loud it.
So I know 4 people that making money from forex, one got couple of millions and he don't want to say how much he earned, he load big amount in to account and waiting till it blow up or no he called it runs, one was starting from the bottom have zero on bank account now he has 364K I seen his bank account and some of the trades he made always saying that back testing, money management, process is important, they got few years experience the guy who haw millions on account he was saying that he remember like he was going instead to the school to the companies shops and ask people who work there how products going out he also lost millions, I believe that you can earn from forex but you can also lost everything, I watched one review that traders with vip account 1 milion on trading account have to have to get invitation and they all say that is gambling and most of them trading everything, sorry for my English. Good lock you all !!!
One laptop, or even a tablet, and a good internet connection is all that we need to trade on Forex. The minimum requirements for the MetaTrader 4 or 5 platform are what most average grade old computers can easily handle. It is all you need for starting trading on Forex.
You can also take geopolitical condition under your consideration as part of fundamental analysis because it helps. If you are not better at this, try to watch videos on Youtube primarily to fix the lacking.
Forex trading can be extremely profitable depending on your knowledge and expertise. There is no doubt about it. However, it takes time to become consistently profitable in the market. There is no trader in the market who has made a profit from the first day of trading. Profitable trading is only possible through hard work and consistent learning.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.