Is Forex Trading profitable?

Suprdomain · Sep 14, 2015

I would like to know your views on Forex trading - its advantages and disadvantages.
One of my neighbors recommended me to try Alpari and get a bonus: http://alpari.com/en/promo_bonus/alpari_bonus/
Do you think that it will be a good way to earn money online?

Any other recommendations are always welcome.... Thanks in advance.

accelerator · Sep 14, 2015

For the majority of people I would say no. Foreign currency movements are very hard to predict. It's not good for most people, because they won't be able to develop the techniques that let them win more often than lose. For extremely analytical people with good technical charting skills, who are prepared to put in a huge amount of effort, it might be suitable.

The problem with this type of trading is there is a lot of risk involved which needs to be mitigated by high technical skill levels. If you can't do that, then find something else.

lazarus · Sep 17, 2015

It is an art and I find, to do it very profitably you have to immerse yourself into so many event happening in trading and world events.

I like to make long trades (4-5 Days) as I try to not let my trades roll over a weekend. I keep the leverage quite low. I found that snipping on the shorter time frames is not for me. I also try to stick to 1 to 2 currency pairs but mainly the USD/EUR.

I use MT4 Charts and the usual indicators tools like bollinger bands / fibonacci retracement whilst on a candle stick view ect.
I do make profit but it took me a long time studying to get to that place.

Remember stoploss is your friend.

Laz

accelerator · Sep 17, 2015

Exactly. It's a lot of studying and then it's a very "hands on" activity, where you have to watch things very closely. Even then, it's difficult to get right. You also need to control your risk very carefully.

As far as do I think it's a "good" opportunity for most people, then no I don't really. In terms of a good way to make money online, then no again, because there are much better ways to make easier money for very low risk.

If anyone wants a second opinion on a possible online money making opportunity, then you can PM me for my thoughts.

Thanks

philipp · Sep 21, 2015

I have tried this. Agreed 100% on keeping leverage low. I have done well at trading shares, and think this is mainly because there is a limited volume of information to read up on and make a decision. However with forex you have to immerse yourself in world news, keep up with all the important calendar dates... it just feels like so much more of a gamble.

Another point is that it's important to understand that in forex spot trading you typically buy and sell CFD contracts, which unless you are quick at cutting losses can eradicate the value of your entire account. You have to be quite ruthless about accepting losses, they can snowball quickly and wipe you out in no time at all. Hence the 'leverage' (horrible word) comment.

P.

RobM · Sep 21, 2015

I have consistently made money with forex over the last 10 years purely on technical analysis. I do *not* study news or keep an eye on current affairs as, in my experience, the news is a reaction to the market and not the other way around. However to make a profit someone has to lose (around 95% according to figures bandied around on the web) - most people give up and, if done blindly, is less than the chance of a coin flip due to spread. One of the main things is good money management - for example I don't risk more than 1% of my capital per trade. I usually only trade on the 1h chart but mostly with the daily chart as a trend guide. I should add that technical or fundamental analysis both have their proponents and there are some times when news *does* cause sudden market swings - it's just I usually find a general trend is locked in place from technical indicators before news is released that bolsters it.