Do people earn money with Forex Trading?

[iman90]

Hello guys, this is my first post in this community. My name is Iman and I am from Germany. I am trading Forex for over 4 years and today I want to talk about if people earn money with it or not...

First of all, I need to say that everything in this post is my own opinion and experience and I would love to hear other opinions too :)

For those who don't know: The foreign exchange market – also known as forex or the FX market – is the world’s most traded market, with a turnover of $5.1 trillion per day.
To put this into perspective, the U.S. stock market trades around $257 billion a day; quite a large sum, but only a fraction of what Forex trades.
Forex is traded 24 hours a day, 5 days a week across banks, institutions, and individual traders worldwide. Unlike other financial markets, there is no centralized marketplace for forex, currencies trade over the counter in whatever market is open at that time.

Trading Forex involves the buying of one currency and simultaneous selling of another. In Forex, traders attempt to profit by buying and selling currencies by actively speculating on the direction currencies are likely to take in the future.

In my opinion, the biggest problem about Forex trading is that it looks much easier as it is and there are enough people outside that pretend to earn millions of dollars in a short time...

Well, let’s be honest with ourselves.....if it’s that easy why not everyone doing it? So everyone could be a trading millionaire and living the dream life...

Forex trading requires years of experience and hard work. You will lose a lot of money and if you are not ready for it then you won't be successful for sure.....every dollar that you lose is like a lesson to you :)

For me personally took over 4 years to make a constant profit with Forex trading so don't give up too fast and never hope for fast results :)

Forex trading IS NOT A get-rich-fast system and it will never be but if you put enough work and effort into it you will have a good chance to be successful...(Still not a guarantee...)
That was a quick summary from my side and I really excited about your thoughts about this subject :)

With regards
Iman Iranmanesh

Comments

[pickpub]

As a former FX broker and service provider, I offer the following advice.

1. Don't read the message boards, most of what they say is absolute nonsense.
2. Don't pay attention to social media.
3. Don't manually trade, create your own algorithms - make sure they are backtested and forward tested. Create an algo in Python that connects to the API of your broker.
4. You saw that I used the word 'algorithms'... that's by design because you need to create multiple algorithms and allocate your capital across different strategies like it is a portfolio.
5. If you see a strong, stable copy trading strategy (social trading) available for your use... make it a part of the overall portfolio. Check the Sharpe, Sortino, Treynor Ratios on them. Do your homework on it before you get involved. Understand how these particular strategies work because they can be a lot of smoke and mirrors.
6. Leverage is a tool, don't abuse it. Think of it like a line of credit, you should not exhaust it. Factor leverage into your portfolio optimization.
7. Portfolio management enables you to minimize risk and maximize return based on allocations and selections.

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