Did you earn from Forex?
- Thread starter Samuel23
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How much do people make in FX? I think it depends on how big your account is. The bigger the account, the better chances of profit...
Get earning from forex business is will making happiness in minds, but sometime leading trader being over confident, I am ever reading statement from friend on forum he can making easy profiut with small capital then he add new deposit with expectation to get more but what happen is opposite with expectation and get margin call account
I don't think there is one answer. It all depends, each person is different. But for someone starting out, I definitely think its important to look at the strategies used by people who are successful.
I agree. It also depends on the amunt of capital you trade with
Hi guys,
I have been doing research on the strategies used by online retail currency traders and have found that most of the studies out there don’t seem to focus on retail currency traders or look into them as a section of global currency traders. (Frommel, Hang, & Van Gysegem, 2015) (Neely & Weller, 2011) (Bank for International Settlements, 2011) and (Omrane, Bauwens, & Giot, 2003) are an example of such studies (you can check for the references to them below). The studies shown above represent many studies conducted on strategies used in currency trading that have a general view of who trades currencies.
Although there are some studies that point to online retail currency traders (which I can share in my literature review), they are simply not enough. Especially given the fact that the currency markets are more accessible today and online retail currency traders are increasingly becoming a key part of the global currency trade.
Another problem I found while conducting my research was that lot of research done on trading strategies fails to discuss the underlying reasons for choosing a trading strategy. Studies like Pukthuanthong-Le and Lee (2008) for instance used a database of currency futures from 1975 to 2006 to illustrate the existence of technical trading. Frommel Hang & Van Gysegem (2014) use models to establish a relationship between changing fundamentals and market volatility. Omrane, Bauwens & Giot (2003) look at intraday data within a certain framework and volatility models, to show spikes in volatility as a result of changing fundamentals. These studies point to certain strategies used in currencies but fail to show the underlying reason for their use. Even in studies like Cheung and Chinn (2001) that have a direct approach where they get information directly from surveys carried on institutional traders. The study doesn’t show why traders use certain strategies and not others.
All this has led me to believe that there is a need for information on retail currency traders, especially on the strategies they use and the reason for their use. This has motivated me to carry out a research to better understand retail currency traders, the strategies they use and the various factors behind their use. I believe that as a trading community we should build on our body of knowledge just as institutions carry extensive research on trends on their fields to help them move forward.
References
Frommel, M., Hang, X., & Van Gysegem, F. (2015). Further Evidence on Foreign Exchange Jumps and News Announcements. Emerging Market Finance and Trade, 774-787
Neely, C., & Weller, P. (2011). Technical Analysis in the Foreign Exchange Market. ST Louis: Federal Reserve Bank of ST Louis.
Bank for International Settlements. (2013). Triennial Central Bank Survey: Global Foreign Exchange Turnover in 2013. Basel: Bank for International Settlements.
Omrane, W. B., Bauwens, L., & Giot, P. (2003, March). News Announcements, Market Activity and Volatility in the Euro/Dollar Foreign Exchange Market. CORE Discussion Paper.
Pukthuanthong-Le, K., & Lee, T. (2008). Weak-Form Efficiency in Currency Markets. Financial Analyst Journal.
Cheung, Y.-W., & Chinn, D. M. (2001). Currency traders and exchange rate dynamics: a survey of the US market. Journal of International Money and Finance, 439-471.
I have been doing research on the strategies used by online retail currency traders and have found that most of the studies out there don’t seem to focus on retail currency traders or look into them as a section of global currency traders. (Frommel, Hang, & Van Gysegem, 2015) (Neely & Weller, 2011) (Bank for International Settlements, 2011) and (Omrane, Bauwens, & Giot, 2003) are an example of such studies (you can check for the references to them below). The studies shown above represent many studies conducted on strategies used in currency trading that have a general view of who trades currencies.
Although there are some studies that point to online retail currency traders (which I can share in my literature review), they are simply not enough. Especially given the fact that the currency markets are more accessible today and online retail currency traders are increasingly becoming a key part of the global currency trade.
Another problem I found while conducting my research was that lot of research done on trading strategies fails to discuss the underlying reasons for choosing a trading strategy. Studies like Pukthuanthong-Le and Lee (2008) for instance used a database of currency futures from 1975 to 2006 to illustrate the existence of technical trading. Frommel Hang & Van Gysegem (2014) use models to establish a relationship between changing fundamentals and market volatility. Omrane, Bauwens & Giot (2003) look at intraday data within a certain framework and volatility models, to show spikes in volatility as a result of changing fundamentals. These studies point to certain strategies used in currencies but fail to show the underlying reason for their use. Even in studies like Cheung and Chinn (2001) that have a direct approach where they get information directly from surveys carried on institutional traders. The study doesn’t show why traders use certain strategies and not others.
All this has led me to believe that there is a need for information on retail currency traders, especially on the strategies they use and the reason for their use. This has motivated me to carry out a research to better understand retail currency traders, the strategies they use and the various factors behind their use. I believe that as a trading community we should build on our body of knowledge just as institutions carry extensive research on trends on their fields to help them move forward.
References
Frommel, M., Hang, X., & Van Gysegem, F. (2015). Further Evidence on Foreign Exchange Jumps and News Announcements. Emerging Market Finance and Trade, 774-787
Neely, C., & Weller, P. (2011). Technical Analysis in the Foreign Exchange Market. ST Louis: Federal Reserve Bank of ST Louis.
Bank for International Settlements. (2013). Triennial Central Bank Survey: Global Foreign Exchange Turnover in 2013. Basel: Bank for International Settlements.
Omrane, W. B., Bauwens, L., & Giot, P. (2003, March). News Announcements, Market Activity and Volatility in the Euro/Dollar Foreign Exchange Market. CORE Discussion Paper.
Pukthuanthong-Le, K., & Lee, T. (2008). Weak-Form Efficiency in Currency Markets. Financial Analyst Journal.
Cheung, Y.-W., & Chinn, D. M. (2001). Currency traders and exchange rate dynamics: a survey of the US market. Journal of International Money and Finance, 439-471.
a trader generally does have a lot of earnings from forex business. because it makes trading in the forex business is easy. only consistency profit difficult for us to keep. therefore, always use a trading plan well if you want to survive in the forex business.
well how much do people make, i dont think there is a precise answer for that, by nature we dont like talking about how much we make. haha but we we do earn and others make it really big.
I think profit and loss is part in trading, but here as trader will learn how to minimize the risk to increasing profit, and will happy if we can making more winning trades and look money growth
Every successful investor has a strategy he follows. In forex you are constantly learning, constantly testing and it is a very long journey.
I cannot say that forex is the main sourse of income for me. I trade because I like it, it's smth like hobby. Sometimes I get rather good profit, but I don't think that I will leave my job and will get money only from trading. but who knows..)
Yea certain success trader share experience in forex if he also faced many disaster in forex which losing huge capital in total, but he still interested to try again, until he having dedicated to treat forex as full time trader with selling all asset on real business, but if we comfort treat as part time still possible making additional income here
I think in every trades we will not always making profit, risk also as part in trading and we should trade with risk management of course, I am also sometime get easy profit but sometime getting loss
The amount of profits that we will be getting in our trades will only depend on how much risks we are taking. This is why we have to first of all think about the risks in our trades.
So many broker provided copy trading service, on my broker also offer this service, but I am so far still like with learn standalone and having interested with manual trading analysis, but it's good if we can follow expert trader it will help much to making profit
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