Quote:
Originally posted by gibsonmh
I'd like to know if anyone is able to make any money, consistently, in forex trading. I've been trying for three months now, and I find my self 70 pips down, and wanting to quit.
Are there any success stories out there anyone is willing to share. I see great opportunity in Forex, but I'm not sure I have the financial strength to bear with the losses I'm incurring.
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Gibsonmh
It all depends upon what you mean by "consistently".
My research suggests that nobody can make money consistently every day or even every week. But you CAN make money consistently if you expand your event horizon to one year. In other words it is possible to end every year with higher equity than the year before.
The obvious next question is "how much can you make consistenty" if you want to trade for a living. There are three important factors that influence this:-
(a) The size of your fund.
(b) The success of your Entry, Stop Loss and Exit strategies.
(c) Your compounding (or Money Management) strategy.
The last is the most influential. If you want a nice smooth equity curve with very little in the way of drawdowns you need to set your sights low but if you are not risk-adverse and can take large losses at times your potential gains increase dramatically.
My strategy is to wait until my tradng fund reaches a specific point and then I draw out 30%. I don't think of the fund as being "real money" at all, only my drawings.
At any given time my fund should always be approximately 70% of my drawings to date.
Have fun