Thursday, June 29, 2017

Can Anyone Really Make Money From Forex?

September 19, 2011 by  
Filed under Forex FAQ & Latest Post


Today we have a very good question from one of our fellow readers of this blog. In fact, this is a question that I personally has asked before when I first started trading a few years back.

Below is the question:

I am unable make any profit. I always make losing trade more than winning. What do u say about Forex? Can anyone really makes money. Give me a honest answer pls. Also want to know is it worth investing in small amount or u really required a big amount?
pls advice me the best. lost so far around USD 20000.

If you ask me whether anyone can really make money from trading forex, I will tell you YES. But not everyone who has got into forex trading eventually make money from it. In fact, 90% of new traders who get into trading lost all their money and only 10% of them actually make money from it.

So what really separates these 2 groups of people?

The group that eventually make it believe that forex trading takes time to learn and they are willing to put in effort and time to learn the rope and then practice it until they are able to make money from it. There are people who spent 2 years on demo before they eventually make money from trading.

Those 90% who did not make it are those that believes that forex trading is as simple as just UP or DOWN. These people usually do not take up any proper course and they are unwilling to go through demo account as they are very eager to make money immediately.

As for the amount to invest, $5000 is good enough for you to start a mini account. My personal advice to you at the moment is to stop trading for sometime and start looking for a good course that will teach you good strategy. At this point of time, no matter how much you are going to invest, you are going to lose it all.

I believe the reason for your losses so far is due to your lack of good trading strategy. With a good trading strategy, you should have a decent winning percentage and a good risk reward ratio. Do not be mistaken that a good trading strategy is one that wins 100% of the time. In fact, there is no such strategy. If you ever came across someone who tells you that he has a strategy that wins 100% of the time and is selling you the course, you must be very wary of him as he or she must be a scammer.

Spend at least 3 months on a demo account with the strategy that you have learned so that you are able to execute it with the best ability. Once you are able to produce consecutive profitable months with your demo, you can then start going LIVE as this will make sure that you will not lost your money again.

I understand that you must be very eager to get back your $20,000 now as it is not a small sum. However with this revenge mindset, it will make you very emotional in trading and will create more losing trades for you.

Trust me, you will be able to make back your money one day if you are willing to work hard to learn the trade and put your learning into practice. Do not rush to make money in forex as this is usually what kills most new traders.

The above are based on my personal opinion and if anyone of you have anything to share, do feel free to give your comment as it will be valuable to other traders here in this community.

Comments

5 Responses to “Can Anyone Really Make Money From Forex?”
  1. Hassan says:

    Ho Kevin,
    i have been trading for a year now, had mostly breaken even until yesterday when i did the most stupid thing, while winning a trade, i entered another with a 100000 contract and got a margin call when it went against me 30 pips, i lost 7K.
    have been reading since and i am convinced to go back to demo.
    i am also convinced that i should stick to a way of trading, usualy i dont have a way, sometime i trade S/R , othertimes BB , but it seems i dont understand either.
    what is your suggestion here and do yyou offer coaching ?

    • Kelvin says:

      Hi Hassan

      You are right, you have to stick to a way of trading. This is the only way you can be profitable in your trading. I bet it must be very painful to lose 7K due to margin call problem. When you hit the margin call, it usually means that you have overtraded your account.

  2. ikechukwu says:

    Hi, i think what you need is a mentor. You need to look for someone who you feel is good in trading and beg him to let you into his trading room. I don’t know where you are located, i would have been able to teach you a thing or more. And pls, don’t go live until you are able to make consistent profit on demo.

  3. joachim says:

    hi, there. i think there is a way to make money, but it is nothing which is achieved fast and easy. i still work with a demo account after nearly 1 year. i do not loose neither do i win much in the moment but this is progress already. at least for me, because there is still a lot to learn. greetings joachim

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