Is it possible for an amateur forex trader to make sustainable profits

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    LoginSign UpShare QuestionTwitterFacebookGoogle+Related TopicsLogistics and Supply Chain ManagementBusinessFinanceTrading (finance)Foreign Exchange MarketIs it possible for an amateur forex trader to make sustainable profits trading forex?How specifically do you make money in forex? Does a broker pay you some quarterly dividends?Want Answers71  33 Answers Quora User, Ten+ years (since late 2002) of curre… (more) Ten+ years (since late 2002) of currency trading (forex) experience.100 upvotes by Coen Kuijpers, Marc Bodnick, William Petroff, (more)Loading…Sure it's possible to earn sustainable profits trading forex. I have been doing it for over 10 years.It's also possible to lose money trading forex. In fact the very best traders do both regularly. Losing money in a trade is just part of trading. The trick comes in developing the skill set to steadily increase your account balance even though individual trades can go in either direction. There are very specific things you can learn in order to do this regularly and successfully.What you are looking for as a trader is an edge. The process of analyzing the market, watching price behavior, exercising prudent money management and risk management and forecasting the likely next move of the market with the successful outcome being determined by the choice you make on the basis of the training and experience that you have gained makes this the most exciting and profitable competitive endeavor in the world of finance. All of those above listed skills are learned. Of all the people I have mentored and who trade profitably I have never met a single one who was born knowing how to trade. Every one of them learned what they now use to earn money trading, a step at a time. Most came to this having no previous experience at trading any kind of financial instrument.One can approach this by visiting free sites on the internet but it will most certainly take you much longer and that approach will expose the trader to losses, but from which he/she can learn. That approach requires you to learn on your own without very (if any) effective feedback. Using a mentor (whom you would hire), who is already trading successfully and profitably, can teach you the ropes that will greatly accelerate your learning curve and will save you years of time and potentially tens of thousands of dollars in losses. In this kind of learning it can really be a question of being penny wise and pound foolish. Getting immediate feedback as concepts are learned and practiced are invaluable. Find a good mentor with whom you are compatible. All of that can all be done on line.One of the beauties of trading forex is that you can trade quite realistically (while you are learning) with what amounts to "pretend money". You can do that as long as you want to with no financial exposure to any possible losses. This is very useful as you acquire, then develop, and then hone and sharpen your new trading skills. When you are ready, you  can then switch over to real money, but still trade in very small amounts (as low as 10 cents a pip, and in some cases even a penny a pip) while you develop your trading skills and prove to yourself what you now know. Once switched to a real money account, one can actually trade while risking as little as a few dollar bills.The second half of your question asked how does one make money in forex. No, there are no quarterly dividends (as such) in this endeavor. Each trade position that you take in the forex market can be held for a short time or a long time. By short I mean seconds or minutes. By long I mean hours, days, weeks or months. You decide this by the style of trading that you enter into. When you close your position, the gain or loss is instantly credited/debited to your brokerage account. This is a highly liquid market (meaning you will find someone to take your trade or get you out of it at virtually any time) and orders in either direction and either opening or closing a position are executed in milliseconds. It is the biggest market in the world far surpassing any of the bond or equity markets to the tune of some four trillion dollars a day changing hands (yes, that's four thousand billion dollars a day).Rather obviously then, the answer to the question would be that whenever you want to be paid and you have had profitable trades, you would instruct your broker to use whatever money transfer method he offers to get your money to the bank account that you control. These usually include wire transfers, credit/debit card transfers and even such systems as Paypal. Just more recently in 2014, crypto currencies in the form of altcoins such as Bitcoin are another possibility for low cost money transfers.Trading the forex is very definitely a thinking person's game. Pattern recognition, signal interpretation, analysis of indicators and what they are telling you, mental discipline and understanding of human psychology all make forex trading the most fascinating of human financial endeavors. It makes no difference whether the currency market you decide to trade is going up, down or sideways – you can still profit if you have learned how to assess the market you are facing. Similar to the lyrics in the "The Gambler" by Kenny Rogers, you've got to know when to hold'em, and when to fold'em. There is a lot of forex trader wisdom in the song. Listen to it several times.Here are the lyrics … The Gambler Lyrics modified slightly by me to fit trading.You've got to know when to hold 'emKnow when to fold 'emKnow when to walk awayAnd know when to runYou never count your moneyWhen you're sittin' at the 'puterThere'll be time enough for countin'When the tradin's doneEvery trader knowsThat the secret to survivin'Is knowin' what to throw awayAnd knowin' what to keep'Cause every trade's a winnerAnd every trade's a loserAnd the best that you can hope for is to diein your sleepForex trading is accessible 24 hours a day, 5 1/2 days a week from virtually anywhere in the world. You have no employees, no payroll to meet, very low overhead, no accounts receivables, no billing, no commute and no related car expenses, no dress code, and no office politics. You have no set hours that you must work, no boss and you can work from the comfort of your own home. If you want to travel, take your laptop with you and trade from any location in the world where you have a reliable DSL quality internet connection. But you do have to be disciplined. You do have to learn how to take losses. There is no free lunch. You do have to think. You have to be a decision maker. Trading is a business and it must be approached that way – in a businesslike manner. Trading is for intelligent people who take responsibility for themselves and their own decisions. It is not an easy road to riches but the road does go there and if you have the journey in you, you can go there too. As we say to travelers in Panama, "¡Buen viaje!"Updated 31w ago. 18,309 views.Upvote100DownvoteComments6+ More Answers Below. Related Questions

    Matthew Radon163 upvotes by Grace G. Smith, Rosemary C. Fowler, Douglas L. Aguilar, (more)Loading…of course…first u need know what forex is (forex is like trading foreign currencies by buying them and then later selling them when they go up in value) (usually currencies pairs are traded/// like gbp to usdnext u need to know candle pattern charts.. down means decrease in currency.. so i usually buy currencies when their down in value and selll them when the value goes up.finally i use software for begginners.. i made more than my friend with.. the forex money software is actually manula though its a robot… I would buy currencies when their down in value manually… and then set the forex robot to selll only for profit or else it wont sell.. thats called a no loss robot… I use this one "http://forex-traders-toolshed.com/"Written 8w ago. 4,412 views.Upvote163DownvoteComment1 Scott Masters, The safe way to double your money is … (more) The safe way to double your money is to fold it over once and put it in your pocket12 upvotes by Frances Williams, Quora User, Ian Lavoie, (more)Loading…eThere are three things that would help you better understand the fundamentals of the industry, the practice, and therefor the potential pitfalls, risk and potential gains.First – get reading. There are numerous free forums, articles and blogs out there with active traders posting daily as well as educational threads. One that I found particularly useful is the school of pipsology at babypips (google this). Lots of great posts with visuals explaining the trades and the graphs. Once you have an understanding of how trading works, the why and the when you will have a better self educated feel for the potential and the risk,Second – Demo and practice. Try out some platforms risk free using demo accounts. There are some great ones out there provided by a large variety of brokers. The most common platform is MT4 which is provided through a variety of guises with a selection of various tools. FXCM is another popular one. My personal favourite at the moment (on which I am only demo-ing at the mo) is at https://mahifx.com, just a personal choice, but I find the speed, tightness of the spreads and one click trading suits my style of trading. By experiencing trading without the risk of losing money, you will learn how to follow charts/trends and to generate strategy and systems. What you won't learn however, are the psychological effects of trading when it is real hard earned money with real risk. That leads us onto the next stageThird – Trade live but very small at first – Set up a live account but with a very small amount of capital. Something you would not suffer for losing, (as that is ultimately the most likely outcome at first) but enough that you care about it. There are a large amount of brokers that do not require a minimum deposit. I would chose one of those for practice live trading. By trading live you will learn what you can not through demo accounts. The psychology and mental effects that you will experience through trading real money. Everyone deals with this in a different way, and you will most likely learn alot about yoruself through this. Learn to control your emotions, not to chase a big win as a result of a series of losses.In forex you are constantly learning, constantly testing and it is a very long journey. It is certainly not easy money and it is a very risky business. I hope this has helped.Written 154w ago. 7,087 views.Upvote12DownvoteComments3+ Rolf – Edgewonk, Trader and EntrepreneurTrader and Entrepreneur9 upvotes by Quora User, Herry Winarso, Sowrabh Behl, (more)Loading…It is possible, however research and retail broker data clearly states that less than 1% of traders can actually make profits. The problem, however, doesn't lie in the difficulty along but in the way the average "trader" approaches trading. In the end, trading, regardless of the market, is a profession just like any other. You wouldn't expect to watch some youtube videos, read a couple of articles and then be ready to work as a surgeon or a lawyer. If you really want to follow this path, it shouldn't be for the money, but because you have a passion for it. The path to becoming a consistently profitable trader can be a long one. You'll very likely experience frustrations, setbacks and times when you just want to quit. If you are just in for the money, your motivation probably won't be enough. Research shows that the majority of traders quit within 2 months. The best you can do, is accept that becoming a professional trader usually takes years and you will need to treat it like a business and a new skill-set you have to develop. This means, learning the basics about the markets, constant self improvement, following the financial markets, analyzing your trading performance, tracking your trades and collecting as much data as possible to be able to spot weaknesses in your strategy or things where you should further improve on…I am attaching you the pyramid showing the survival rate of traders. This is not to demotivate you, but to show you that most people who set out to becoming a professional trader, quit. However, it clearly is possible to make profits – as Rich nicely described! Before you dive into the world of trading, check yourself and ask yourself if you have the correct mindset and the determination, or are just looking for the quick money. This is not possible in trading, unfortunately. However, if you can develop a passion for trading, you'll learn a lot about yourself and can have fun on the journey! May the pips be with you! Written 26w ago. 5,260 views.Upvote9DownvoteComment Daniel Lindsay, Blogger on MahiFX.com and Full Time F… (more) Blogger on MahiFX.com and Full Time Forex Trader4 upvotes by Ian Lavoie, Alex Wu, Quora User, (more)Loading…Forex currency trading is probably one of the friendliest financial disciplines for amateurs to break into. It doesn't require a lot of overhead to get going and start building profit. The new trader must treat their venture with the seriousness that it deserves however. A lot of people jump into it and think that it's something they can just make a bunch of money with overnight. Because of that mentality, they wind up blowing out their accounts because they didn't take a very good approach to actually learning what they need to know to make sustainable profits.Take the time to research strategies and look for the right fit for you. Test out strategies in a demo account until you're comfortable with how the strategy works and to ensure you can be profitable with it. The biggest challenge that new traders face is in hitting their stride with all of the emotions and stress that come with putting your money out into the market. That makes risk and money management of the utmost importance for long-term success.There are a lot of numbers thrown around about there being a 95-97% failure rate for new traders. That largely has to do with wading through the massive amount of information available on the internet, trying to figure out what is useful to that person, while ensuring they aren't overlooking important information. It's very difficult but it is doable. Which is pretty much like any other pursuit in life.Written 71w ago. 4,522 views.Upvote4DownvoteComment MoreWrite an answerRelated Questions

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