Does anyone make money in Forex Trading?

[astrosmurf]

Originally posted by gibsonmh
...Most strategies I've investigated, and back tested, simply do not work.

I was just wondering what the results of others have been, as I really don't see a lot of the systems discussed yielding positive results. I was wondering if it was worth continuing....

I started my forey into the Forex 6 months ago.
I first started trading on "instinct" with no particular plan. Results: Down 50K (well a 50k demo account anyway).
I learned from that.
I moved onto Neural Networks (as I am a programmer) and this did not produce good results (very good in backtesting, but it got killed during paper trading).
I learned from that.
I tried trading using a MACD strategy, again - disaster.
I learned from that.
I've been examining many different systems (mostly those on MoneyTec) and absolutely none of the systems I've seen on MoneyTec are relable enough for me, so I've had to develop my own, not based on any indicators.
I'm paper trading my new system and it seems very promising.

What I'm trying to say here is that profitable systems are seriously HARD to find, and those that have them don't want to share (who would blame them?)
But if you keep persevering, you'll eventually find one that you're happy with.
Then trade it.

So you ask if it's worth continuing?
I say yes.

(Oh, and don't listen to those that would discourage and patronise you by saying that your Forex "education" will take years - it doesn't have to!)

[Blaiserboy]

People do earn money trading Forex....... it took me three years before I could honestly say I can make money......

I think that what you will find is........ you need a simple system. you have to practise it for hundreds of hours. and then paper trade for weeks and weeks before using real money......

Perhaps check these two sites for systems

www.nqoos.com

www.dacharts.com

do not try to be too fancy. but learn fully any tools that you intend to use...

[mshwanz]

I agree with the fact that trading has to be simple and requires lot and lots of time with the market. The more you trade on your own analysis, the better you get and learn something with every trade.

[geiseb_hd]

I dont want to simplify the wisdom of the postings on this thread or any other ideas shared by experienced traders on moneytec, but wanted to throw in my short-lived experience. Back in January '05, I got interested in the forex and bought a number of ebooks and systems. None of them, except with Mr Bain's system, offers a daily facility where newbie traders can see how the guru interprets the chart. The overall wisdom dispenses on chat forums like moneytec and various others, is that forex trading, is an exception art form, that the trader has to learn and invest massive amounts of energy, time and of course money, to have profitable trades. Forex trading in particular, and trading in general, are one of the few professions so complicated by hype, rumour, fear and greed.

Why dont we make the same assumptions about medical doctors, scientists, teachers, almost all kind of professions. You need to invest personaly all the needed resources yet the masters, who earn their living from publishing, not trading, complicated every damned aspect of trading. I recently, after demo's(which in my view dont help at all), lost 1k on a highly leverage account. When I consulted my advisors - authors who sold me the ebooks - only one, a charming lady from the west coast in the US, offered me 1 simply system, covered in her ebook. Trade the stochastics(14,3,3,E) in a 10 or 15 minute timeframe and nothing else and u will get your money back. simply striaght forward answer.

The other fellow from Australia referred me to bigtime traders Down Under who earned millions from fibs and 1234 trading etc. I simply ask him if I can stick to the basics in his book and come up with profitable trades. Yet he tried to complicate the whole issues.

It would be too much cheap advertising for me to reveal these ebook sellers or traders. On the other hand, I have not yet regained my money but having gone in demo mode, I can spot numerous opportunities, just watching the stochastics(14,3,3,E) in 5 and 15 minute timeframes. Wigh quick reflexes and a nice platform, I feel I can make profitable trades. The other obstacles is that I am behind a firewall and only www.mgforex.com, seems to be viable option to trade from my job somewhere in the Horn of Africa.

Just my 2 cents worth.

[fdisk]

I was trading successfully with a demo account for 3 months. I went live and was not prepared for the emotions of trading live and taking my first loss of real money. I for what ever reason changed my stratagy I was using on my demo and completly lost my discipline and lost my $700.00. Very expensive lesson but lesson well learned. I am now working hard on my discipline and do not too bad. I have had mostly positive trades but there will always be losses you've just have to have good money management and know when to cut your losses and learn from them. Those that learn not from their mistakes are bound to repeat them time and time again.

[J327]

Besides brokers making $$$ every time you trade, trading is a zero sum game. So to answer your question, yes, someone is definitely winning. And if you look around, and see a bunch of people losing money...someone else is depositing a check. And if you know a bunch of people consistently losing money, then someone by default must be making money consistently.

[geiseb_hd]

Fdisk

I had the same problem with the discipline. basically there was no discipline at all, as I was trusting numbers I was getting from a usually 80% accurate system. I am now strictly doing a demo with stochastics(14,3,3, E), supplemented by momemtum(20) and 10,21,62 wmas in Metatrader 4. Its not that much of a great system, but it gets the trades easily around the london open and gives you early signals to enter, especially the momemtum. Just trading off the stocs in 15 minute timeframe is great. I am not sure if the discipline will be there when I go live again in a months time. What I will do is simply to deposit a minimum amount, say $500, and take 1 position for a 30 pip a day. That way I know I will have 2b slow to be build up the arsenal slowly.

[overgrowth]

Hi Guys,

You've been talking about trading off stochs though I don't think anyone has mentioned exactly what your trigger is.

Stochs are very handy when used as a divergence indicator, however it sounds more as though you're looking for stochs crossovers ?

I've checked out GBP/USD for this morning with 14,3,3,E in the 15 min chart and can't see anything obvious to trade from.