Your Questions About Successful Trading Forex

Steven asks…

How to step up my Forex game?

Hola,

I’ve been trading Forex in a demo account for over 2 months now. I’ve lost everything once in the process, made over $1,000 some days, etc. But I would like to research forex trading more to get more expert opinions. I’ve read the whole beginner’s guide on www.babypips.com (good resource for people brand new to Forex!)

Anyway I was just wondering…… are there any people out there famous for trading Forex full-time and being successful at it? Are there any widely-acclaimed books or articles or schools of thought? Keep in mind I’m not referring to “systems” you have to pay for, ie. scam artists.

My forex blog:
www.yarcofin.wordpress.com

John answers:

I don’t trade forex full time, but I have alot of experience trading other markets. I guess if you’re trading technicals then you can use those no matter what the market.

One thing I’ve noticed about forex is that if I pick a direction and enter when volatility is shrinking usually end up with a winning trade.

As for resources, I think the best teacher is going to be experience. Just trade as small as you can while you learn.

Charles asks…

Realistic Forex profits?

I’m looking to start trading Forex (first with a robot and eventually manually.)

I’f I open a live account with $500, would it be realistic to turn that into a $1000 account in 3 or 4 months? I’ve done a little bit of the math and that would only be earning 1.1% a day on base $500. That’s not including the possibility of earning say lower percentages per day with the daily profits compounded.

I see this as fairly conservative. I’ve heard super successful traders can earn 10% a month. The average seems to be less than 5%. I consider this conservative because say you take that same $500 and invest in stocks instead of currencies, on a good month, you might be able to make $1000 or more. I think trying to double the investment over a 3 or 4 month period is realistic.

But what do you think? Please respond.

John answers:

Consistently for 10 years,

100% return per year is good trader
100% return per quarter is genius trader

$500 is enough to start trading Forex. You need a mini forex a/c.
If you are smart and experienced, you can turn $500 into $5 Millions.
But this result is not typical.

Betty asks…

Does anyone know about some of the Forex robots and if any are worth using to trade currencies?

Has anyone had experience using the Forex robots that are available and are there any you would recommend? How successful have they been from a return standpoint?

John answers:

The Federal government warns there are a lot of Forex frauds out there, and these Forex robots appear to be one type of these scams. If these robots really worked, there would be scads of articles about them in the Wall Street Journal and other financial publications talking about them. When I do a web search, I can not find a single reputable news article encouraging the use of Forex robots. The link below is a Federal website warning you about Forex fraud.

There are a lot of people on the Internet claiming they have done very well using Forex robots. These appear to be of two types. One is the outright liars. You might meet a person called “Zboy227” who says “I made a lot of money using ScamRobot2000, go to their website at ScamRobot .com/Zboy227.” The “/Zboy227” tells the website that Zboy227 has referred you. If you buy the product, Zboy227 gets a commission. He is only lying to you to get a commission.

There is a lot of luck in Forex. Sometimes you will run into people on the web who have tried a robot for a few days and have had some beginner’s luck with it. They start bragging about how well they have done. Later, they start to lose money, but they rarely get back on the web and talk about how much money they lost. People like to brag about their successes, but rarely talk about their losses. The result is that much of the feedback about these Forex robots is positive.

I may point out that websites that sell Forex robots admit there are a lot of scams out there. Of course they claim the other guy’s robot is a scam, but their robot works. If you do a web search on the words “forex robot” and “scam” you will find a lot of sites saying their competitors are scams.

I will admit I have not personally tested every robot out there, and I can not prove they are all scams. But I would be very hesitant to spend a lot of money on a robot without clear proof it really works.

Mandy asks…

Is there a catch or scam in the demo forex accounts?

So I’ve been playing around with forex trading on a practice account with $50k. I was able to make over 3k on a successful transaction. And I can make at least a few hundred on each transaction. And all that is in a matter of hours, sometimes minutes? It’s hard to believe that those practice accounts are the same as real account. I mean I turned 50k into 55k in one day on the practice account? That doesnt seem realistic. Can anyone explain me what’s the catch?

John answers:

The catch is that you can loose 5k or more in a very short period of time too.

Exchange rates go up and down every day. And anybody can make money once in a while in Forex trading. But to be profitable in your trading over weeks and months you need to avoid loosing money. And to avoid loosing money over the long term is very, very difficult.

Sharon asks…

a question about trading and traders?

i would like to know who are the best traders in the world and what have they traded in to make money and become successful is it forex oil shares gold silver etc

John answers:

Read;

Millionaire Traders by Kathy Lien & Boris Schlossberg
Market Wizards, by Jack Schwager

It doesn’t matter what they trade… It’s how they trade. In both books there are Equity, Forex & Commodity traders that are at the “top of the heap”…..

The big secret is: “Trading Money Management”.

Read these books… They’re well worth the time.

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