How much can you make Forex Trading and how much do you risk?
Sunday, December 29, 2013
, Posted by Ryanita at 1:59 PM
kasparov
how well the known systems work in Forex trading (carry trade,...) and how much do you risk applying them, and for how long?
Answer
Traditional trading of stocks on margin at 2:1 leverage is considered risky. Forex is leveraged at 100:1 and even 200:1 but few people take the time to understand this and simply focus on potential profits. All beginners focus on all the wrong things like "How much can you make?"
How much do you risk? Beginners risk their entire account and their house every time they put on a trade. How long? minutes. A leveraged position is almost impossible to hold more than an hour by anyone less than an astute trader. Most people don't have a clue what a trader is or does, but it takes many years to become an astute trader. There are no shortcuts. Most people think that if they work harder and learn more, they will eventually become successful at trading like they would any other conventional "job"; not true. Most very smart, hard-working people lose money trading.
Factoid: 90% of traders lose money, regardless of what they trade.
The carry trade is generally done only by institutions with millions of dollars to invest and need a place to park those millions.
Known systems? You mean that make money consistently? Myth.
Traditional trading of stocks on margin at 2:1 leverage is considered risky. Forex is leveraged at 100:1 and even 200:1 but few people take the time to understand this and simply focus on potential profits. All beginners focus on all the wrong things like "How much can you make?"
How much do you risk? Beginners risk their entire account and their house every time they put on a trade. How long? minutes. A leveraged position is almost impossible to hold more than an hour by anyone less than an astute trader. Most people don't have a clue what a trader is or does, but it takes many years to become an astute trader. There are no shortcuts. Most people think that if they work harder and learn more, they will eventually become successful at trading like they would any other conventional "job"; not true. Most very smart, hard-working people lose money trading.
Factoid: 90% of traders lose money, regardless of what they trade.
The carry trade is generally done only by institutions with millions of dollars to invest and need a place to park those millions.
Known systems? You mean that make money consistently? Myth.
Which is the best way to become a millionaire on the stock/forex markets; speculating or investing?
William M
Just curious as to which option is the best option if you want to become a millionaire on the stock/forex markets out of speculating or investing? Also, which is the best recommended and what are the advantages/disadvantages to each of them?
Answer
Investing requires thoughtful study and the use of analytical techniques proven to enable one to track corporate progress. The uninformed tend to view stock investments as speculative but the stock investor will usually call currency markets a potential win-or-lose-it-all proposition.
You wouldn't believe the long hours an investor puts into his/her work. Credibility is on the line at all times for retail investors rely upon us for secure, meaningful information before making their investments in our recommendations.
Investments rarely lose all money invested in a day or a week. This isn't the case alternatively in the case of currency trading. A successful investor must be vitally aware of and able to summon up balance sheet stats on each portfolio investment. Working at this is a full time job and then some, it's not just calling the broker and placing your order. Still, it's the greatest woork in the world for me and anyone who happens to enjoy geopolitical drama and has a penchant for detail.
Some might argue that this isn't about safety but only about making $1 million. When luck is the premise, anything can happen. But you also ask about which is "the best way" and I'll have to vote for investing as it can eventually lead towards big earnings. I've won some major gains, also have lost my share. But I know from experience a diligent investor with basic skills and lots of hard work can do it.
Len
Investing requires thoughtful study and the use of analytical techniques proven to enable one to track corporate progress. The uninformed tend to view stock investments as speculative but the stock investor will usually call currency markets a potential win-or-lose-it-all proposition.
You wouldn't believe the long hours an investor puts into his/her work. Credibility is on the line at all times for retail investors rely upon us for secure, meaningful information before making their investments in our recommendations.
Investments rarely lose all money invested in a day or a week. This isn't the case alternatively in the case of currency trading. A successful investor must be vitally aware of and able to summon up balance sheet stats on each portfolio investment. Working at this is a full time job and then some, it's not just calling the broker and placing your order. Still, it's the greatest woork in the world for me and anyone who happens to enjoy geopolitical drama and has a penchant for detail.
Some might argue that this isn't about safety but only about making $1 million. When luck is the premise, anything can happen. But you also ask about which is "the best way" and I'll have to vote for investing as it can eventually lead towards big earnings. I've won some major gains, also have lost my share. But I know from experience a diligent investor with basic skills and lots of hard work can do it.
Len
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