Can forex trading make you rich ?

BluePanther posted:
Emphasis on:

'Out of the 241 trades, 16 of them were responsible for ALL of the profit. Most people in this world can't handle it. Yet, it is the only way I have ever seen anyone make money trading. Ever. I was on Wall Street for 23 years. All of the successful fund managers will have long losing streaks, sometimes lasting 6 months to a year. And then... boom! They let their winners run and they wipe out all of their losses. It is how trading works.'

BluePanther posted:
Emphasis on:

'Out of the 241 trades, 16 of them were responsible for ALL of the profit. Most people in this world can't handle it. Yet, it is the only way I have ever seen anyone make money trading. Ever. I was on Wall Street for 23 years. All of the successful fund managers will have long losing streaks, sometimes lasting 6 months to a year. And then... boom! They let their winners run and they wipe out all of their losses. It is how trading works.'

AniLorak posted:

BluePanther posted:
Emphasis on:

'Out of the 241 trades, 16 of them were responsible for ALL of the profit. Most people in this world can't handle it. Yet, it is the only way I have ever seen anyone make money trading. Ever. I was on Wall Street for 23 years. All of the successful fund managers will have long losing streaks, sometimes lasting 6 months to a year. And then... boom! They let their winners run and they wipe out all of their losses. It is how trading works.'

23 years!!! Man, that’s really amazing! May I know your favorite trading instruments?

AniLorak posted:
23 years!!! Man, that’s really amazing! May I know your favorite trading instruments?

FXMouthPiece posted:
Can anyone who has actually become rich from Forex please stand up and provide some advice. There seems to be a lot of pretenders giving their 2 cents on this thread

AniLorak posted:
May I know your favorite trading instruments?

togr posted:

BluePanther posted:
Emphasis on:

'Out of the 241 trades, 16 of them were responsible for ALL of the profit. Most people in this world can't handle it. Yet, it is the only way I have ever seen anyone make money trading. Ever. I was on Wall Street for 23 years. All of the successful fund managers will have long losing streaks, sometimes lasting 6 months to a year. And then... boom! They let their winners run and they wipe out all of their losses. It is how trading works.'

I have quite opposite experience.
Grab all the smaller profits you can. Do it thousand times and accept bigger loss from time to time.
So first have some profits and then you can afford the loss.
Affording the loss first makes not sense as you cannot guarantee the profits will eventually come.

BluePanther posted:

togr posted:

BluePanther posted:
Emphasis on:

'Out of the 241 trades, 16 of them were responsible for ALL of the profit. Most people in this world can't handle it. Yet, it is the only way I have ever seen anyone make money trading. Ever. I was on Wall Street for 23 years. All of the successful fund managers will have long losing streaks, sometimes lasting 6 months to a year. And then... boom! They let their winners run and they wipe out all of their losses. It is how trading works.'

I have quite opposite experience.
Grab all the smaller profits you can. Do it thousand times and accept bigger loss from time to time.
So first have some profits and then you can afford the loss.
Affording the loss first makes not sense as you cannot guarantee the profits will eventually come.

I would say your strategy is “exceptional” rather than “common”; suitable mostly for scalping.
Other traders would follow the slow and patient, “trend is your friend” method. After trying your method for many years with small successes and huge losses, I now prefer holding positions longer term, riding the trend and lowering my stress. Day trading is quite stressful.

niceGLer posted:
I actually found it easier to keep the holding period short ie. intraday trades. But alas, I don't have time for that since I have a family. On the other hand I can't program so I just have to accept the accumulating losses while I learn trading long term...

BluePanther posted:

niceGLer posted:
I actually found it easier to keep the holding period short ie. intraday trades. But alas, I don't have time for that since I have a family. On the other hand I can't program so I just have to accept the accumulating losses while I learn trading long term...

Look at 4H timeframes and greater. Provided 1) you do not take huge risk and 2) you have adequate margin to weather drawdowns, you should scale into trends.

Follow strong support and resistance levels, but be aware of the possibility the market may not respect a long-term resistance / support and breach it - so err on side of caution.

Do not start trading with small money. $10,000 might be a good start, but with small risk you won't get rich overnight. Patience.
Nothing worth doing is easy. If it were, then everyone would do it.

togr posted:
Well I still do not get it.
If you start with $10k and have losses for 6 months, there won't be much left to recover losses in your lucky=profitable month.

BluePanther posted:

togr posted:
Well I still do not get it.
If you start with $10k and have losses for 6 months, there won't be much left to recover losses in your lucky=profitable month.

I understand your logic:
A loss of 10% requires a gain of 11.11% to recover;
A loss of 20% requires a gain of 25% to recover;
A loss of 30% requires a gain of 42.86% to recover;
A loss of 40% requires a gain of 66.67% to recover;
A loss of 50% requires a gain of 100% to recover.

This is why you not only need initial risk capital, but you also need INCOME from elsewhere to replenish your potential drawdows / realised losses. A person who has $10,000 and NO or LOW INCOME is in NO POSITION to trade. Or you start with more than the minimum (eg. $100,000). But you still need a income from elsewhere.

'To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable.' Edgar Bronfman, Sr.

togr posted:
Well I still do not get it.
If you start with $10k and have losses for 6 months, there won't be much left to recover losses in your lucky=profitable month.

BluePanther posted:

niceGLer posted:
I actually found it easier to keep the holding period short ie. intraday trades. But alas, I don't have time for that since I have a family. On the other hand I can't program so I just have to accept the accumulating losses while I learn trading long term...

Look at 4H timeframes and greater. Provided 1) you do not take huge risk and 2) you have adequate margin to weather drawdowns, you should scale into trends.

Follow strong support and resistance levels, but be aware of the possibility the market may not respect a long-term resistance / support and breach it - so err on side of caution.

Do not start trading with small money. $10,000 might be a good start, but with small risk you won't get rich overnight. Patience.
Nothing worth doing is easy. If it were, then everyone would do it.

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togr posted:
Well isn't it better to have system than produces profit from the very beginning, with limited risk?

togr posted:
Grab all the smaller profits you can. Do it thousand times and accept bigger loss from time to time.

Mark Shawzin posted:
Most people in this world can't handle it.

Each trader to their own strategy. 😎