Comments on: What’s the secret to making a living from internet based forex trading? http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/ Information and resources for those looking to learn about trading and the markets Tue, 22 May 2012 13:19:03 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Is Trading for a Living Worthwhile? | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/#comment-16208 Is Trading for a Living Worthwhile? | The Essentials of Trading Mon, 22 Feb 2010 14:39:07 +0000 http://www.theessentialsoftrading.com/Blog/?p=462#comment-16208 [...] the weekend regarding a post I did about trading for a living. I’ve just read the article What’s the secret to making a living from internet based Forex? where you mentioned that if you want to make 2500 per month you need [...] [...] the weekend regarding a post I did about trading for a living. I’ve just read the article What’s the secret to making a living from internet based Forex? where you mentioned that if you want to make 2500 per month you need [...]

]]> By: Lou Vozza http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/#comment-12125 Lou Vozza Fri, 11 Apr 2008 16:26:50 +0000 http://www.theessentialsoftrading.com/Blog/?p=462#comment-12125 Hi John, As you know , there is no "secret" to FX trading. It's the same as every other trading vehicle. a) You must have a trading plan (be that fundamental or technical) b) You must have discipline in trading that plan . c) This requires hard work- You have to look at charts if you're a technical trader. You have to know global news and be aware of Central Bank policies.If you're a fundamental trader you need to know economic policies of various countries. You need to know when there are economic data releases -like US Employment. d) you must use good risk control e) you MUST be psychologically prepared to lose money on trades. f) You need at least 100K in risk capital ..Away from other assets so you're not putting yourself at serious financial risk. This just scratches the surface. There is a lot more as you know. You can't just put a position on in the morning, go to the beach and come back in the afternoon and see how much money you made. Apologies,John, for the lengthy rant :-) Lou Vozza Hi John,

As you know , there is no “secret” to FX trading. It’s the same as every other trading vehicle.

a) You must have a trading plan (be that fundamental or technical)
b) You must have discipline in trading that plan .
c) This requires hard work- You have to look at charts if you’re a technical
trader. You have to know global news and be aware of Central Bank
policies.If you’re a fundamental trader you need to know economic
policies of various countries. You need to know when there are economic data releases -like US Employment.
d) you must use good risk control
e) you MUST be psychologically prepared to lose money on trades.
f) You need at least 100K in risk capital ..Away from other assets so you’re
not putting yourself at serious financial risk.

This just scratches the surface. There is a lot more as you know. You can’t just put a position on in the morning, go to the beach and come back in the afternoon and see how much money you made.

Apologies,John, for the lengthy rant :-)

Lou Vozza

]]> By: links for 2008-04-11 : Trader Eyal http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/#comment-12123 links for 2008-04-11 : Trader Eyal Fri, 11 Apr 2008 14:34:49 +0000 http://www.theessentialsoftrading.com/Blog/?p=462#comment-12123 [...] What’s the secret to making a living from internet based forex trading? | The Essentials of Tradin... “the answer is the same to trading for a living in any market. It takes sufficient capitalization and consistent application of a proven strategy.” Some good comments by John in reponse to someone asking about trading forex for a living. (tags: Trading Living Forex) [...] [...] What’s the secret to making a living from internet based forex trading? | The Essentials of Tradin… “the answer is the same to trading for a living in any market. It takes sufficient capitalization and consistent application of a proven strategy.” Some good comments by John in reponse to someone asking about trading forex for a living. (tags: Trading Living Forex) [...]

]]> By: If You’re Going to Provide Advice on Trading, Don’t Be Ignorant | The Essentials of Trading http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/#comment-12119 If You’re Going to Provide Advice on Trading, Don’t Be Ignorant | The Essentials of Trading Fri, 11 Apr 2008 13:01:18 +0000 http://www.theessentialsoftrading.com/Blog/?p=462#comment-12119 [...] Forman - The Essentials of Trading authorYesterday I started answering a LinkedIn question post about trading for a living. I mentioned then that there were several ignorant statements being made. Here are some of them. [...] [...] Forman – The Essentials of Trading authorYesterday I started answering a LinkedIn question post about trading for a living. I mentioned then that there were several ignorant statements being made. Here are some of them. [...]

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/#comment-12118 John Fri, 11 Apr 2008 09:14:22 +0000 http://www.theessentialsoftrading.com/Blog/?p=462#comment-12118 I'm not going to disagree with you there Bill, though I would make the point that if one were making 2.5% in a trade for a living perspective, it wouldn't be compounded, so it's only 18% annually. Even still, I personally would prefer a larger capital base and a smaller monthly result assumption. Yes, a better return is possible, but why put yourself under that pressure? I think a decent rule of thumb might be to figure your long-term average monthly (or weekly, or whatever) return and make your determination on capitalization requirements based on half that, with some factoring for the volatility of the returns you see. I’m not going to disagree with you there Bill, though I would make the point that if one were making 2.5% in a trade for a living perspective, it wouldn’t be compounded, so it’s only 18% annually. Even still, I personally would prefer a larger capital base and a smaller monthly result assumption. Yes, a better return is possible, but why put yourself under that pressure? I think a decent rule of thumb might be to figure your long-term average monthly (or weekly, or whatever) return and make your determination on capitalization requirements based on half that, with some factoring for the volatility of the returns you see.

]]> By: Bill aka NO DooDahs! http://theessentialsoftrading.com/Blog/index.php/2008/04/10/whats-the-secret-to-making-a-living-from-internet-based-forex-trading/#comment-12115 Bill aka NO DooDahs! Thu, 10 Apr 2008 13:37:49 +0000 http://www.theessentialsoftrading.com/Blog/?p=462#comment-12115 As discussed previously, I don't believe that returns compounding 4% monthly are *sustainable*, long-term (over multiple years). I think 2.5% compounded monthly (which is basically 35% annually), over a significant period of time, *is* pushing near the edge of possibility, or at least would involve levels of activity, return volatility, and leverage that most people (including some serious traders) would find intolerable if they were having to live off of the equity withdrawals. I would up that estimate of starting capital to $300,000. 20% annually is much more realistic for most folks; the 35%+ crowd would likely be a subset of the seasoned veterans only. Take 5% to protect for increases in cost of living and take 5% to grow capital for retirement, and the remaining 10% is the $2500 monthly that they need to live right now. As discussed previously, I don’t believe that returns compounding 4% monthly are *sustainable*, long-term (over multiple years). I think 2.5% compounded monthly (which is basically 35% annually), over a significant period of time, *is* pushing near the edge of possibility, or at least would involve levels of activity, return volatility, and leverage that most people (including some serious traders) would find intolerable if they were having to live off of the equity withdrawals.

I would up that estimate of starting capital to $300,000.

20% annually is much more realistic for most folks; the 35%+ crowd would likely be a subset of the seasoned veterans only. Take 5% to protect for increases in cost of living and take 5% to grow capital for retirement, and the remaining 10% is the $2500 monthly that they need to live right now.

]]>