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Is It worth to Become a Forex Trader? is the question I am usually asked, plus so many other similar questions:
Is it worth to spend time on forex trading to become a forex trader?
Is forex trading a promising business or it is wasting of time and money?
These are all good questions. Before you do something, you really have to know whether it is worth to spend any time on it or not. You have to know whether it is worth to spend your time on learning forex, or it wont get you anywhere finally.
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This eBook shows you the shortest way to achieve Success and Financial Freedom:Is Forex Worth It to Spend Time?
The short answer is, Forex is an opportunity that enables you to invest some money to make more money. It is an investment opportunity to increase your wealth. So it is worth to learn how to trade Forex and make money with it. However, there are some conditions that you have to met to become a profitable Forex trader. Without having those conditions you cant make any money through Forex trading.
Those who ask these questions are from two different groups. Members of the first group already know that forex makes money. What they want to know is that whether they will become able to make money through forex trading or not. The short answer to this group is, if others can make money from forex trading, you can do it too. You dont have to be genius, highly educated or rocket scientist to make money through forex trading. You just have to be serious and disciplined, both at the beginning that you want to start learning, and also when you have learned and you want to keep on trading to make profit consistently.
The second group want to know how much money they can make through forex trading. I mean they know it makes money and they know they will become able to make money with it, but they want to know whether it makes more money compared to the other businesses or not. They want to know whether it is worth to spend time on learning forex, or theyd better to spend their valuable time to learn something another business because they can make more money easier and faster.
To answer this question, lets see how much money the other jobs makes. Family doctors usually make about $105-140,000 per year after the tax, while they have to study for about 20 years to become a family doctor and have such an income. They have to work at least 8 hours per day, every day. Sometimes they have to work on weekends too.
Average elementary school teachers make $53,000, while lawyers make $130,000, sport coaches make $37,000, janitors make $25,000 and teacher assistants make $25,000 per year.
Now the question is how much a forex trader can make?
It can be different for different traders and it depends on several different factors, like trading style, account size and
Indeed, Forex trading has a big and unlimited potential in making money and increasing your wealth. However, you have to do it the right way, otherwise you can lose a lot of money with it.
Something that you have to consider is that it is very hard to know Forex or stock trading as a full time jobs. They are investment opportunities that enable you to increase your wealth. You can make a lot of money with them while you already have a lot of money and you have at least one good source of income, and at the same time you trade currencies and stocks to increase your wealth. Forex trading is a way to force your money to make more money for you. It can hardly be used as the only source of income.
Therefore, the answer of this question that Is It Worth to Become a Forex Trader? is yes because when you become a profitable Forex trader, you can trade currencies and make profit. However, I dont recommend it as a full time job that you spend all of your time and money on it. It is a good investment opportunity but not a good full time job.
It is worth to become a forex trader but you have to keep in mind that you cant make any money through Forex trading when you HAVE TO make money. I mean if you have no job and income or you have a job but your income doesnt suffice, it will be too hard to make any money through Forex trading. The first and most important reason is that you will have a lot of fear to risk your money, and at the same time you will have a lot of greed to make money. These two emotions, fear and greed, dont let you think and decided properly. You will make a lot of mistakes and you will lose your money.
On the other hand, when you dont have enough money, you cant open a reasonable live account and make a reasonable amount of profit just by taking a small 2-3% risk in each position (trade setup). You will have to open a small account and then you try to grow it by taking big risks. As a result, you will wipe out your account.
To become a profitable Forex trader and investor, first you have to have a good source of income that makes a reasonable amount of money consistently. This income not only covers your life expenses, but also leaves a reasonable amount of capital to open a proper live Forex trading account.
Then, while you still have your source of income, you learn how to trade Forex, and when you become a profitable Forex trader, you can use a portion of your money to invest in the Forex market to increase your wealth.
This is the best way of making money through Forex trading. It can be wasting of time and money if you follow the other ways.
Now the question is how you can have a good source of income before you become a good and profitable Forex trader. Fortunately, it has become possible to do it through the power of the Internet and Data Technology systems. This is what the members of LuckScout Millionaires Club are doing.
It is worth to spend time and money to generate a great source of income that makes a lot of money and then use a portion of the money you make to make more money through Forex trading and the other investment opportunities like stock, real estate and .
This eBook shows you the shortest way to achieve Success and Financial Freedom:
Can You Really Become a Millionaire from Forex Trading?
How Does It Feel to Be a Professional Full Time Trader?
Become a Profitable Forex Trader in 5 Easy Steps
Cheap Forex VPS: Do You Really Need a VPS for Forex Trading?
Whether you think you can, or you think you cannot, you are right. – Henry FordView all posts by LuckScout Team
trading is not risky by itself. The way that some people trade , is risky.
Hi, Great article as always. I would like to ask you if you trade more pairs (different cross pairs or half different? ) at the same time and if so under which condition (e.g. after stop loss is moved to break even)?
I enter whenever I see a too strong setup. No matter if I already have an open position or not. Of course one has to be careful to have enough free margin.
One of my mentor said In Trading We Are not a Machine Gunner, But We Are Elite Sniper..
It is a beautiful and wise saying. It is indeed about over-trading and what I always emphasize regarding taking the too strong setups. A machine gunner shoots too many times to any target he sees. He wastes too many bullets to hit one or a few targets. He loses too many times to have one or a few winning times. It is like a trader who takes too many positions based on any signals he sees. He loses in most of them.
Sniper Elite is someone who cares about each of his bullets. He never shoots unless he is 100% sure that he can hit the target. Like when I tell you that you should only take the too strong setups and avoid the other ones.
Hi, i am trying out your strategy and combine with my fundamental analysis. By having strong price action set up and strong fundamental outlook, i am more confident on my trade. I am shorting nzd/usd, eur/usd,gbp/usd and long usd/chf.
Your sentence: To achieve 20% of ROI monthly is piece of cake really make me wanna achieve it! Gonna learn from you everyday. I focus on major pair for now but if there is a very strong trade setup for cross currency pair, i would go for it as well.
You are simply amazing . You replied all the comments!
And i am curious about your risk % for each trade. Is it 2% ? I am trying out between 0.5%-1% and will increase once i show consistent result.
I try scalpeling on smaller timeframe like 1min,5min,15 min on demo account and i felt very tired and get stopped out easily. After reading your articles, i think of trading 1 hour chart but right now, i dont even want to look at 4 hour chart if i can find something on daily chart.
However, i still have some problem since i always tempted to take profit when the price starts to retrace a little bit. I keep telling myself to check the position max 3 times daily haha. How do you overcome the temptation to took profit at retracement and open another position at low price.?
My risk is a little higher than 2%. I dont talk about it here, because I dont want people to copy me blindly. I take too strong setups and so I allow myself to take a higher risk.
The inner demon always makes us check the positions too many times. We have to ignore it. You will get used to checking the charts once every day if you do it for a while. Nothing happens if we lose some of the profits. There are always good setups on the way.
Hi did I miss something on JPY because other currencies rallied against it?
AUDNZD: Looks like the monthly can close above the BMB and daily and weekly above resistance.
We already announced the AUD/JPY and GBP/JPY long trade setups on the weekly charts. We expected to see such a strong movement.
You mentioned in a different post that you were going to analyze the AUD/NZD W that was formed on the Daily. Did I miss a post on that? Cant seem to find it anywhere. I also see that the weekly had a long trade set up based on the DBB strategy but the tweezers are a little intimidating.We just might have a long trade here for next week.
Hi, Is it better to wait untill Gold hits Rock bottom and then wait for a reversal trade back up all the way to 2017.Or can a trade be considred on the way down.
We should trade only when a too strong setup is formed. That is the rule of thumb. If gold formed a too strong 100 score setup, we will go for it.
Do you also look at 100 strong trade set ups on GOLD?
Hi, I am starting to check all the charts that you mentioned, with the set ups. What is the method that you follow, when you look at the chart. Example. you would for instance first go to the daily chart, then you will check chart .., then you will check A start, what charts do you check and do you look at smaller time frames etc. Thnx for your patients with beginners like me.
hi thanks for that article this is my first month demo trading and i am just amazed by the results, by following exactly what you teach us my account is up by 43 percent. I truly believe you when you say 20 percent is a piece of cake! Have a great weekend!
You are welcome Steve. Congratulations for your success. You will have to repeat it over and over. You are almost there.
I actually went through the charts and checked the daily and the weekly. I saw on USD/CHF weekly a possible dark cloud, but the shadow looks not right. When i look at daily it looks like a possible trade can form, but only if the next one or two candles are dark cloud or bearish engulfing. It seems quit simple. But i still have a lot to learn. Am i on the right track? I should have probably only checked after the day close?
You right it must be another chart. dont see it there.
Among the 20 pairs you trade, are there any of the pairs that are correlated either negatively or positively.
Yes, may of them are correlated. Of course, let me tell you that all the currency pairs are somehow correlated. Even gold and USD are correlated.
I hope you would be adding NZDCHF (weekly chart) to your analysis for the week as well.
28th Sep There was a shooting star candle. But the big bearish candle earlier could have been a NO for us to go long or wait for a confirmation candle.
Right now, it is forming a High Wave Pattern on the weekly chart.
Good time to go long with combination of earlier shooting star candle?
Yes, I have had an eye on it since the 2014.09.28 Hammer was formed. No good confirmation so far.
Thanks for the informations, good thing is that, you get to explain your articles in a detailed manner such that i really dont have questions to ask.
I remain loyal to the bollinger band strategy for now, after which i may letter consider DBB. This is a great opportunity and i really dont want to waste it.
Hi, if i`m not mistaken, NZDUSD candlestick that form the set up is not 100. Is it because of the resistance line make it a strong 100 set up?
Yes, resistance level has a very important role in this trade setup, because it is on the monthly chart.
, Thank you again for all the articles this week giving myself a months R&R always good to give oneself a break . Studying is very intense . Keep up all the great work and good luck to all the coming week .
I would like to ask you about my favourite pair GBPCAD 🙂
Sure. I will have the analysis today or tomorrow before the market open.
you have mentioned too much and advise for novice trader that where they should start in trading and what are the tracks. is it possible for you( of course depend on time) to write an article about the easy steps for trading stock for those who want to trade based on their stock selection not by funds,efts and and
Most of the things I say here can be applied to any kind of trading. You need the same discipline and patience to trade stocks too.
Hi, the AUD/USD daily shows a red bar last 10/29 with its tail sticking out of the BUB. what do you think of it, is that a set up and how would you grade it? Thanks.
It is a short setup, but it is not that strong. I will have a detailed analysis before the market opens.
Thanks a lot for your analysis! Gold did close below monthly and weekly support level. I will open 2 short positions when the market opens. 😀
You are right, Gold is very bearish , the negative point is it is oversold right now and it close at 1172 , it seems not a very strong breakout the support level ( 1180 ), in my point of view we are better to wait a while to see the reaction of market about the oversold situation.
10/31/2014 about noon on my local time , something happened to JPY and all JPY pairs start going up suddenly . i know i was effect of a news in market (because i checked market calendar ) . my question is, have news any effect on big picture of market or not ? . i mean is it possible a news change the market trend in W1 or MN time frames or their effect limited to short time ? should we have an eye on merket calendar or not ?
News follow the long time frames directions and signals, and long time frames signals form based on the news. I mean they are not against each other. They are complementary to each other. As you see, we already had a long position with GBP/JPY and AUD/JPY based on a strong long trade setup on the weekly chart, and when the news was released it kicked the price up.
Events like 11 Sep, can change the market condition unexpectedly. However, such drastic events happen very rarely.
i confused . i agree with long time frames signals form based on the news
but i disagree with News follow the long time frames directions and signals
04:44 JPY BOJ 2014 Monetary Base Target (OCT 31)
04:44 JPY Bank of Japan Monetary Policy Statement
i think the value of JPY became lower against other currencies because of this events . so the pairs like GPB/JPY and AUD/JPY went up on charts .and we were lucky that events wasnt against our chart analyze .
thank you so much .i got my answer in your last sentence . changing the market condition is depend on the importance of event .
When your SL gets hit, when do you decide to reenter the same trade? I know you said when your trade is spiked out, so do you wait for that candle (spike) to close? When is strong setup made invalid?
As I only take the too strong setups, I enter as soon as the market hits my SL.
EurGbp it looks form a DBB short setup, my question is the last bearish candle is over sold or not ?
I also have a open short position from 17/10 till now,
Yes, it is a short position base on the DBB system. And yes market is over sold.
Is it possible to have two strong trade set-ups that correlate negatively at the same time i.e when one pair is going down the other is going up. How do you trade such 100% trade set up and how do you identify such pairs among the ones you are trading?
I always to keep my life and business. In trading, I only see the too strong setups. When there is a too strong setup that meets all my criteria, I go for it. I dont care about anything else.
If you already have an open trade, how do you deal with gap up or gap down?
There is a gap up in G/J daily when the market opened yesterday, how will you deal with this situation if you are already in the trade (buying).
Such a small gap is normal and doesnt matter. I have long positions with GBP/JPY and I didnt care about the gap.
Does g/j setup has 95 score ,because of strong bearish candles before ?
maybe my question is stupid but i didnt understand how can we buy or sell a currency pair different from our currency account?
For example how can i buy gbp/usd if my currency account is eur?
we will have other spreads (because of exchanging into eur) to pay when we close the order?
Glad to hear you have found your answer. Please let me know if you still need any help.
I dont know if you could please help me with the following? Its the hardest part!
You suggest to start trading with a $2000 account.
In that case lets say I need to set a 100 pips stop loss.
If I understand your teaching in the Risk Management And Position Size Calculation and Money Management articles, I should then make equal the 100 pips to the amount I am willing to risk in the trade (2%).
Since I open 2 positions (the first to be closed at TP1 and the second to be closed at TP2), I will then open 2 positions of 1% each.
So if price goes against me for 100 pips, it hits the stop loss and I lose only 2 times 1%, that is 2% total.
1% of 2000$ is 20$ and if stop loss is hit I lose 20$ for each of the 2 position opened.
To do this I have to calculate my position size, and the position size calculator of LuckScout says its 0.02 lots.
So I should open 2 positions of 0.02 lots and, if stop loss is hit, I will lose 20$ for each position, for a total of 40$, equal to 2% of my 2000$ account.
1 If 100.000$ is 1 lot, then 20$ is 0.0002 lots,
but the position size calculator of LuckScout says its 0.02 (but that would be 100.000*0.02=2000$, not 20$). Where am I wrong?
2 If we open an account with an ECN/STP broker, the minimum lot must be 0.1. How can I trade with a 2000$ account then (which require opening 0.02 lots position for a 100 pips stop loss), and respect the 2% rule?
1. One lot is 100,000 unit of a currency pair you trade. It has nothing to do with $20. Each currency pair has a different pip value per for each lot. For example, when you trade one lot EUR/USD, each pip makes/loses about $10. So 2 pips is $20 profit or loss.
2. You either have to take a higher risk, OR, open a bigger account if you want to take only 2% risk and trade with an ECN/STP broker.
Dear, first of all I am so happy I was correct in the calculations! This is thanks to your great teaching and articles on money management! So this is the way I should calculate my position sizing. Even if I dont understand everything yet, to not make mistakes I will use the LuckScout calculator.
I wanted to follow the plan you outlined opening a 2000$ demo account, but then it is not possible to take even a 100 pips stop loss! Because 0.1 lot is 1$ each pip, and then 100 pips are 100$, which is 5% of 2000$. So if I want to take 2 positions (TP1 and TP2), the minimum I need to open them is 2 times 0.1 lot, equal to 200$, which is 10% of 2000$!
Does this mean it is not possible to learn the ropes with a 2000$ account. Then what minimum account do you suggest to open in order to comply with ECN/STP broker?
I am asking because I want to start demo trading and then open a real account of the same size and use it as part of my training, trading like I was doing with the demo to build the good habit: I am so grateful to you for teaching this process!
It is recommended not to take more than 2-3% risk. The risk level is what a trader has to decide about. Novice traders wipe out their accounts because of taking too big risks. Professional traders sometimes take a much higher than 2-3% risk.
If there is a real ECN/STP broker that allows 0.01 lot, then you can start even with $1000 account. However, as far as I know, the strong and real liquidity providers dont support 0.01 lot. I am checking an ECN/STP broker now and it says:
I think micro accounts are all dealing desk accounts, because they know that 99.99% of these accounts will be wiped out anyway because they are not opened by professional traders. So they prefer to keep the money in their own pocket and not to give it to liquidity providers.
If that is the story, then $5000 account will be ideal to start.
I know your articles almost by heart and I follow You word by word because I trust you and I want to start in the best way and do good executing your teaching.
Thats why I wanted to start with the 2000$ account.
If you suggest to start with a 5000$ account I will do it. First on demo, and then live with my real money.
But you also trade opening 2 positions, and the total of the 2 positions has to be the maximum risk acceptable.
You teach that I should start with 2% risk, but to trade a setup I have to open 2 minimum position of 0,1 lots, equal to 100$ each for 100 pips stop loss, for a total of 200$ (that is 2% of 10000$, but 4% of 5000$)
Then what shall I do? Start trading with 5000$ and risk 200$ that is 4% (not 2% as the golden rule), or start trading with 10000$ (that frankly I wouldnt be comfortable to start with).
Also does that mean that I cannot consider more that 100 pips stop loss (because my position would become again smaller than 0,1 lot)?
Sorry trying to understand this but this is the hardest part for me in order to start on the right track.
You have understood it properly. It is exactly as what you mentioned.
Now that you want to open a $5000 demo account, try 4% risk (two 2% positions) but take only the too strong 100 score setups. You will not get hurt. If it worked on the demo account, and you could make profit consistently for 6 consecutive months, then do the same with your live account.
Yes, you have to avoid the setups that need more than 100 pips stop loss. When a too strong setup forms, you can wait for the price to go against the setup for a while. If it does, then you can enter with a better price and tighter stop loss.
Now I have it clear and Ill do as you say.
I always feel I cannot thank you enough for your guidance and kindness!
If they have a dealing desk for micro accounts, what keeps them from not using it also for the other accounts? How do I know that the same dealing desk will not trade against me also on the ECN/STP Pro account?
They are afraid to lose to the big accounts because some of those who open big accounts are profitable. So they can make the broker lose. That is why they dont place the big accounts on the DD system.
Thats a good answer! Havent thought about this but it makes a lot of sense.
This also means that they probably have different price feeds (in order to hunt SLs and so on) between the two accounts, right?
do we have ECN networks like in the case of ?
They are a derivative instrument so this means that the price doesnt necessarily have to be same as on the exchange the underlying is traded. What keeps the broker then not to modify the quotes as he wishes, for example to hunt our SLs?
In case of the Market Makers also hunt SLs and the price feeds are different from broker to broker but most of the time its only a few pips difference (higher arbitrage?).
Can we find honest ECN brokers for CFDs? or every time we trade CFDs we have the broker as counterparty? What about Direct Market Access?
i am interested with your words If you open a $2000 account and make 20% profit per month, after three years you will have a $1,417,603.75 account. If you start withdrawing your monthly profit after that, then you will have a monthly income of $283,520.75 every month. what i dont understand here is how many pips i have to get equal to 400 (20% from 2000) for the first month. And how much i have to spend per pip to get itplease teach me how to calculate it.. i already read your calculator article but i dont really understand how to used it..
Different currencies pip value is different. Therefore, it is not possible to say how many pips you need to make 20% per month. You can use the below calculator:
I have been poking around sites for a year now. I even paid to learn from a well known individual on the internet. But, since i came across your site i have leaped ahead in knowledge and courage to keep going in. I thank you for taking the time to teach all those that want to make the effort to build a better life for themselves.
I am glad to hear that you are happy with the things you are learning here, and I wish you to reach your destination which is making a living through trading, becoming a full time trader, and becoming a millionaire trader finally.
please give some examples for first second and third months the rest i will try to calculate it
I dont know what you mean. Please clarify.
what is pips value per trade should i used to get usd400 profit base on usd2000 account.
thank alot for the excel calculator help me alot..
Its me again. I was reading your article above and in it you wrote that with patience and discipline and just checking the charts for thirty minutes a day, it is possible to make huge wealth if you start with only 2000-5000 USD. My question is, what if you start with only 1000 USD? is it too little? Is 2000 USD the absolute minimum for one to be able to make any significant gains in trading?
You can do that, but if you sign up for an account with a true ECN/STP, then you should not be able to trade smaller than 0.1 lot. Therefore, your risk will be higher.
The broker I have my eye on claims to be an ECN/STP broker, but he also offers lots of much less than 0.1 lots (up to 0.01 lots). Is this a red warning flag? Should I be suspicious?
Ask them who their liquidity providers are. Then contact the liquidity providers and ask whether they support 0.01 lots or not. You will find out then.
I have start live account with small investment but often appear warning level margin can you explain how to avoid this
You see the warning when you want to take a new position?
thanks, i gain a lot of informations when you answer these questions.
Great article. Awesome book title brother Kamal! It has been an interesting journey thus far for me in the world from having it in my lap in my 20s and not understanding what all the blinking numbers meant to lucking out and finding Fxkeys now Luckscout and doing rather well in demo accounts considering the amount of time ive been trading. Ive dealt with many emotions from being happy and hopeful to sad and hopeless. One thing about it though and that is at least we learned the truth here about what it really takes to trade properly. Now we have a solid plan to get to our beloved dreams. Thanks, team and fellow luckscout members!
Thank you too Charles. We are glad that you like what we do for you on this site 🙂
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