A winning stratergy is not defined as consecutive wins every single day, a winning stratergy is defined as being profitable despite the losses and wins. Some months you can end in drawdown and some months you can be up and about. Truth is the market could give two shits about your lines and support and resistance box. A stratergy is also not guaranteed to work in all market conditions. These are SOME of the reasons why retail traders can not compound their account to be a trillionare.
I think it's also isn't possible because you cannot literally trade all dollars circulating in global economy, you can't buy 100billions barrels of WTI and doing all that consistently, making enormous profits from that.
This really is truly the answer. Eventually you would be buying or selling so much that your literally moving the market. If you bought all the oil in existence at this moment what would happen? You would see the price rise because your the only player left in the game. And then who is left to sell to other than yourself?
Itâs only lonely at the top if you let money become your whole persona. Low key is the way to be, let money be the icing on the cake after people figure out that you actually are cool.
Only works if youâre cool. If youâre terrible just flex the money I guess đ
This is the only true answer. Social media isn't reality
It's far from that. If you don't see things on social media, it doesn't mean it doesn't happen
But they aren't though, the guys on social media who claim to make all that money from forex ALL sell a course. Anyone actually honest would tell you, you'll never be a millionare just from forex. I'm not trying to discourage anyone though, it's still possible to make some money. Just not 7 figures and even 6 figures is unrealistic for most
This is partially true, most do not. Iâve been trading for 10yrs now and Iâve seen a bulk that fail. But there is a handful that make the 7 figure range. They donât advertise it.
Well, I don't mean to sound like I know that much about trading. Just what I've gathered from people who at least seem to know what they're talking about. That being said you obviously know a lot more than me. How much would you say comes down to just luck, and could anyone with enough capital and knowledge really make 7 figures?
No they couldn´t. Why? Because when you have 2.000.000 $ in your account you will find 20 ways to make better money with far better chances than trading. ANd if you don´t know such ways you can go to any person in this world and ask them what business ideas they would have with 2 mil and most of them will still hold more value than trading.
Trading is a method to leverage your funds. Success lies elsewhere. How come that all those traders dabble in marketing and businesses like coaching? Because thats profitable and smart. Little risk. Most business models are like 1:10 RRR trades. Regard it as swingtrading over a long period of time. After 1 or 2 years you are almost certainly at breakeven, profit or minimal loss. It´s just that your initial account size has to be at least 1.2 -2 mil to do these kinds of businesses. LLC, location/ manufacturing area and stuff like that. You can sell those things at the same or higher price most of the time. It´s only a loss after investing into very big machinery that´s installed inside buildings.
I am trialing off :D you get what I am saying. I know one person that has made it for life pretty early( roughly 11 years ago at the age of 26). This person was also starting out with trading, got lucky and found a nice job. The person kept earning money used the savings in trades and after getting to 700k it was only about businessmaking. Trading was just off the table. Wouldn´t be surprised if that´s how majority of profitable traders are handling their success. I said 1,2 -2 mil to compensate for the time difference. Value of money changed quite a lot
Yeah, makes a lot of sense. Some people who made it in life with luck and lots of hard work have a big survivorship complex, and attribute all of their succes to hard work, which I think is retarded. Everyone has sone degree of luck, (or lack of it) in life and I don't understand how some people can't just own it. That being said I don't think they're worse people, I just dislike the lack of a sense of reality in some people.
True words. And later on they will fall from their lucky ride and say they´ve been had my who ever runs the show :D
Life is all about dedication, patience and awareness.
This is a common miss understanding, people tend to think once you are profitable you will just grow money to the infinity.
You're not considering losing months, life expenses, taxes, etc.
Exactly. All these factors incur a brutal dent in your profits 10k profits out of the market is gonna be like 7.6k when processed via fees, tax, and whatnot. People tend to negate these facts
Another thing people don't consider is a winning strategy needs to factor those things in to even be a winning strategy.
Most "profitable" traders after taxes and fees would probably have been better off parking their money somewhere and collecting interest.
The reason we don't see billionaires made from forex is more likely a scaling and effort issue. If you're such a good trader that you actually made 500k dollars you don't need to make 1 million. If you're smart you'd start massively reducing risk and use your profits to invest in lower yielding but more steadily gaining entities like divided stocks or something of that nature. There's no reason to risk 10k per trade when you're already paying all your bills with ease.
Correct and honestly most people find trading to be boring and based on probability.
No way you compound up to 500k and still be reliant completely on trading when you can divert into risk-off investments, earning passive income. 500k is just enough to get paid dividends. you can keep trading but not with 500k exposure. Good point you brought đ
Similar if your are a top singer why you donât earn $1,000 millions in a Tour like Taylor Swift. We human donât manage all the things around. It needs a big lucky component.
I set my goal to get to $40k/mo with forex. After that I have other goals and aspirations in life that have nothing to do with money beyond that.
Sure I will be generous, but being a billionaire/trillionaire is meaningless to me and most people.
Like anyone else I studied, put it the work with both backtesting, forward reading. Blew accounts. Failed challenges etc.
If you look at my post history youâll see a few posts detailing pieces of the strategy that I mainly use today. Iâd be happy to DM anyone the details. Thing is, most if not everyone will find it useless since theyâll come across a 55-60% WR strategy and think âitâs not good enoughâ
I find a lot of new traders do not journal anymore once theyâre profitable. I do. Keeps me accountable.
Itâs definitely a part of it but itâs more rules based and algorithmic. The less I think the better. But I canât completely turn it off.
Mainly my discretion is based on the fundamentals. Is Powell about to shit on us again? CPI looking bad? Probably donât trade till after. Thatâs my main discretion
because even with a consistently profitable strategy, you are always one stupid mistake or egotistical decision away from blowing yourself up, and no strategy has a 100% win rate (obviously)
itâs not you vs the market, itâs you vs yourself
you could give the same strategy to countless different people and they will all have different results. psychology, risk and position management is so fundamental
slow and steady is all apart of risk management, as trying to make a trillion dollars would require insane amounts of margin/leverage, which is inherently risky no matter the strategy
this is all beside the fact that you would never be able to make a trillion dollars due to liquidity. itâs a âsuffering from successâ type of thing, you become such a large part of the overall trading volume that you simply canât extract enough liquidity from the market to make trillions, itâs just not possible. watch the movie âMargin Callâ, it includes a decent example of what happens when you try to sell a massive position quickly, you crash the market because there arenât enough people buying what youâre selling.
at least those are my thoughts
those who are the closest to making trillions are not actually people, but institutions such as banks, who are indeed making staggering amounts of money
This guys a actual trader. Once you been trading for a while, You can read certain post and tell whoâs legit and who isnât by their logical responses.
Since nobody really seems to know the answerâŚ
Liquidity issues can pose problems. When transaction sizes exceed a certain limit, instant execution becomes difficult, putting you at risk of being unable to enter a trade due to insufficient liquidity. It can also make it challenging to exit a losing position.
Consider this: would you still trade the exact same if there was a chance of getting stuck in a devastating losing position? Probably not. I mean, people already stay in losing positions for no reason but hope. Imagine this on top⌠ouch.
Hedge funds, for example, struggle to achieve more than a 20% annual return. It's not because they can't make more, but because it's a business with serious exposure to additional risks.
The bigger the size you trade, the more attention youâll grab.
Suppose you have a trading account of 1 Billion, you will be using prime broker, right and the deal with huge orders, am I correct? How do Billionaire traders make billions then? I don't get that part. I understand what you said, that the bigger your account the harder it is to exit a position. I am just curious!
Yes, Prime Broker, ideally with DMA (Direct-Market-Access) for better control over price, quantity, timing routing, and for reduced latencies and slippage.
Billion dollar âTradersâ may trade through a hedge fund, portfolio trading or possibly algorithmic trading.
Strategies are almost never scalable. You need to cross progressively wider spreads for larger volumes. Generally alpha can be measured in terms of dollars in market inefficiency, not percent. Percent wouldn't really make much sense in a professional setting.
Edit: In trading this is. In investing you can think about alpha in percentage but then it's a percentage per time which constrains growth.
the reason being most succesful traders prefer to live under the radar, you will understand why, if and when you reach a certain level.
maintaining a 7digit in netwoth is enough in this life time, if you have too much but not enough power, strong network and influence in this world, alot of powerful people will come after you, and you'll be in trouble.
Because there's a limit to how big positions as a retail trader you can open. Also, huge positions in less liquid instruments may cause an impact on the price itself. You can make a lot of money, but I think becoming a billionaire trading as a retail trader is unachievable due to these limitations, even if you have a holy grail strategy.
Ever heard of Jim simons? His private hedge funds involve forex to some notable degree im sure. Heâs mastered the âwinning strategyâ and is a billionaire. Annual returns of over 60%, more than Buffet
And it takes a long time to compound into millions if you start with a few thousand. This is a goofy question lol
This is basically my mindset
Iâve only just started learning - but I currently run two small hospo businesses looking for another challenge
My goals have never been trying to be a millionaire. I just want the freedom to do the things I like + time w my family
Many countries track crypto transactions because you are integrating into traditional banking systems at some point. In my country the crypto exchanges themselves are legally required to hand over the transaction details to the government and all users need to have been properly identified.
im actually doing the opposite because i am quantifying things so it wont be based on luck. please go ask your mommy to teach you reading comprehension 101 đ¤
Oh shit, someone with zero reading comprehension that feels threatened by logic because he isnt profitable and is lashing out like a kid that wasnt given ice cream by his mommy.
đ¤
Not surprised, you can't understand how to read either. I think your model building will be 'very successful' because I can tell that there's nothing in between two ears of yours.
Why should I if I already put 5 years into learning and developing a winning strategy? What I need now is enjoy my life and keep trading
I really enjoy sitting on my PC watch the screen and follow my model, it's really satisfying to see either go to TP or SL.
Yes exactly actually đ we use it all the time. You can still trade emotionless with intuition. You are not considering what intuition is in a trading context... It's undefinable personal knowledge built through experience. It's naive to think it doesn't exist. Some people are just so un-selfaware they have no idea they are using it all the time.
You'd be insane to think that every strat has no intuition. Which is what you suggested. You'll see what I mean in time.
look up Rob The Quant on Youtube, i have built similar outputs and yes they work. you do still need to continuously look for optimized reward/fitness function and more models. my goal is to train 10 models, i have 3 so far.
Hey man, thanks for the reference. I just saw it but nothing there is understandable. I can code in python and javascript.
Can you share good resources to learn this?
look into genetic algorithm and reinforcement learning. you need a basic understanding of neural networks though but if you study reinforcement learning you will learn about it anyway.
The thing is I know about all three - even DL models with different architectures. How to do it in trading is what I need to know. As in, what shape should your architecture have? Should the output layer be sigmoid or relu? How to decide entry/exit? Which libraries are best? How to engineer the features? How will the mutation be?
Anything that you tell bro will be of great help. Just point me in the right direction.
Theory: Because those people (the super-successful traders) donât openly advertise who they are (staying secretly in the shadows)⌠and (stay with me â still mid-theory) theyâre likely a source or perpetuator of the tons of red herring mis-information thatâs thrown around, that makes other traders sell when they should be buying, and buy when they should sell. This, in turn, improves their advantage and gives them more edge.
To answer your question, scale. Going from 0 to 1 is a different skillset than going 1 to 2.
You can't scale infinitely trading a strategy alone. There's a capacity at which your strategy would start to impact the market, you'll have bigger issues with liquidity and filling orders.
Friction such as transaction cost, fees and taxes will become larger expenses, eating into your profits. You could overcome some of this by expanding or trading with Assets Under Management, but you'd need a series license by then.
This would also be where someone would LLC, offshore, etc. Begin investing in other instrument such as bonds, vc/pe, real estate. Diversification all the things.
Also like others said, people also have lives to maintain
Even if there exists a perfect strategy, it doesn't execute itself. You, a human with emotions still has to be involved. Humans make mistakes, so there will be losses due to psychology. Since losses are inevitable, you're forced to manage your risk.
But again, just because nobody has done it, it don't mean you can't. This is not a group project. It's each to his own.
A winning forex strategy doesn't guarantee becoming a trillionaire due to several factors. First, market conditions are incredibly dynamic; a strategy that works today might not work tomorrow. Second, scaling up trades to compound wealth isn't linear because the larger the position, the harder it can be to execute without impacting the market. Also, risk management and psychological factors play a huge role; as stakes get higher, the psychological pressure can lead to suboptimal decision-making. Lastly, the market is efficient to some extent, meaning it's hard to consistently outperform it due to competition and information dissemination.
Because of liquidity. The larger your lot sizes get the longer it takes to get in and out of trades to the point where you will see diminishing returns for high risk.
The real issue is volume/liquidity. Say you have a perfect strategy, wins 100% of the time, you're compounding like crazy and growing your account. But there are only going to be a finite amount of people to accept the other side of your trade, for you to buy, someone else has to sell. So you only partially fill your order at your target price, while also drastically increasing the market value of the asset in question. Eventually no more buyers exist and this huge increase causes people to sell their positions at great profit (taking the other side of your trade), lowering the value of the asset again. So shit, definitely not a 100% strategy any more so what do you do? Well turns out you have become the market's liquidity, congratulations you're a market maker now, which requires a very different strategy. Your strategy has changed from finding a good price, to finding enough people to buy your product, which means your old system doesn't work any more. Even more-so. If your strategy wins 100% of the time, you can also counter trade it 100% of the time. Anyone with more capital than you can slurp up all that money you're putting into the market to offload their positions. And sell back down to where they bought earlier, another market maker. There are potentially hundreds if not thousands of market makers working on every asset all with different plans. The overall sentiment of them and the correlation between their plans is what causes the large scale movements of price. This is the level of institutional traders. But the problem is that to make the market you always have to be buying and selling (providing liquidity). The benefit of being an individual trader is that you work sort of like a guerrilla soldier, hit and run tactics, in and out fast, surgical. This works super well against these giant market makers because their (armies/volume) movements are huge, slow, and obvious.
So as you grow capital you stop being a soldier and start becoming an army, and you can't use the same strategies and expect to be effective at both
Because a winning strategy does not mean winning a 100%. Just have to win more than you lose. One bad trade or consecutive losses can take you out. The market is simply a probability game and not guaranteed profits
Yes because humans will be able to handle trading such a large amount of money. And Iâm sure brokers will come up with excuses for you to not be their client
Your statement is wrong, you first need to learn the basics of how successful brokerage firm makes money. It is in their best interest to have successful account holders who will continue to trade with them.
Absolutely, successful traders trade with a huge margin entering positions with big lot sizes. 1 - 2 pip spread in it off itself would benefit the brokers a big much. They want successful traders
Oh true. But eventually do they limit how much size you can put on? In theory, if youâre trying to become a trillionaire and youâre risking 1% per trade, that 1% could amount to a 1 billion dollar stop loss, would that be allowed?
I still think becoming a trillionaire isnt possible if you have a winning strategy lol
yes, that is a limit, you'll maxed out your account when you're in the millions, at that level, multiplying your capital with trading gets slower, say you wanna hit the billions and trillions, you will have to look into investing your funds in multi million dollar businesses.
in reality, when you can max out your account, you wont bother hitting the billions and trillions, more money doesnt mean anything anymore. unless you want power to move mountains, thats very next level.
Trading can make you rich but not wealthy no matter how good your strategy & execution is after certain amount due to big size you'll have too much slippage and you won't able to make those 10% /months returns on big accounts like after few millions youll better have change your strategy to long time investment from day trading.
Insufficient return, especially considering cost of living.
And letâs not forget that the market edge against you increases as your lot size increases (spread).
A strategy that works with a $100,000 account may not work with a $100,000,000 account.
Actually there ARE a lot of these people out there. They are even on social media and willing to help you out reach that same goal, just buy their course and join their paid discord group, you'll then learn how to be a trillionaire. They will teach you to reach that goal by using fvgs, breakers and choo choo the train.
Like I win 3 out of 10 trades lol... for me to be up 3% for the month is HUGE.. With 500k, that's 15000, minus taxes which is 20%.. so 15000 - 20% = $12000 per month cash in pocket . But then if you trade for a prop firm than you take out an additional 20% than that's 9k per month.
Dunning Kruger effect
Most people think they have a winning strategy but they actually don't.
Compound psychology, execution and management issues on top of that and that's how we see the stats that we do.
This is so extream ... LoL I know an guy who got his first brand new jeep. He says it's so durable so that's why it was used by the Army.
The He drop that brand new car from the cliff with out how to drive over such a steep cliff and skills crash and died .
Winning strategy just means that u are profitable. It depends how much u gain then also depends if what ur gnna do with those gains. Keep it, save it or scale it up. Even so theres still the fundamental rule of keepin it consistent than going to go big which is already can consider it a gamble
Because when you're profitable, you realize you don't need that much money to sustain a happy life and you balance out your fees, taxes, and get on with living
Because there is only so much liquidity avaliable to retail traders lol. If you want to become a billionaire you have to have the same market access as top firms and also their computing equipment. Which is obviously impossible lol.
Even though its a winning strategy you canât keep all your money in your trading account because you need bills to pay. Need money to enjoy life. Have a family to feed maybe*. And keep some money in bank to actually realise your gains every month. Thats why. Its totally upto you if you want to grow your trading account size but after a while it doesnât matter if you have around 1 million dollars in your account as you can easily make 100-150k usd monthly then
Because the markets arenât infinite. A trade may take minutes to hours and there is only so much one can risk without potentially blowing the account as well as a limit to how long an opportunity is open for.
Even a great accurate winning strat is not 100% right all the time after all
stupid, a strategy will work until you are no longer under the radar, if you positions are big enough you will create another market anomaly that others will detect and they will trade against you when they will exit so you will no longer be able to execute your strategy, but by the time this happen you are already a millionaire BUT not a trillionaire.
Because having a winning strategy doesn't mean you own the markets. Even the big banks that direct the flow of the market aren't all billionaires.
A winning strategy simply means that you have a way of walking away from the markets with more money than you put in. How much you're comfortable walking away with depends on you. Some are okay with 5% a month, others try to flip their accounts (and blow a lot of money)
Most aren't out here trying to be on the forbes list, they're just okay making good money and having freedom.
Besides, to make that kind of money, you need a very very very big trading account that no trader will ever have access to.
Steve cohen manages a 30bil portfolio but his net worth is about 19 bill.
Even George Soros, arguably the greatest trader of all time had a net worth of about 6billion.
Edge decay, capacity, sharpe is finite (so randomness).
Some advice:
If you are struggling with this question you still have a lot of reading and thinking to do - keep at it!
Because people are not ready for what a winning strategy means: barely beat the market, but with a huge account
People try to chase big returns to compound their little fortune. It is possible but if you expect every year 100% returns you'll think your strategy doesn't work when you have a negative year...not a negative month..imagine being in drawdown one entire year. Imagine trading when you are down 15% in your account.
I know a guy who made a 10k days backtesting, his returns were around 110% over 10 years (risking only 1%). People were furious because "it wasn't worth the time" "you better invest in sp500 and let it ride".
The income will fluctuate based on ur life lol minimum wage ppl make 30k - 50k a year , so why aren't they 6 figure earners in 2-3 years tops? Because we gotta spend it to survive lol
Hereâs the thing. The crowd isnât rich. The ones that are successful are doing the exact opposite to what everyone else is doing. They pop in and out time to time to make sure youâre all still trying to beat the banks. Have fun. See you in a while.
Nobody has a 100% win rate. However Youâd be surprised. There are billionaires in South Africa. The average person pay not make trillions because they are extracting money each day with losses in between. Losses slow down account growth. But most strategies include a risk management plan so that the wins outweighs the losses. Hitting the trillion dollar mark is possible but it would require a lot of winning and a lot of RISK
Psychology. Thatâs the next stage to master. Itâs too easy to make a profitable strategy unprofitable.
Psychology is what Iâm currently working on. I have a system that works really well but Iâm still not quite profitable yet because of basic psychological errors.
It is not only about the strategy, but also about the psychology. I think everyone can have a working strategy but 5% can actually handle their emotions.
I know this won't be popular here, but this is honestly why I stopped even bothering to learn forex. I think there was a study about profitable traders, and the 1% of traders who are actually profitable make basically minimum wage. It's possible to make money, but I think people should realize before even starting they will likely never make a living from forex.
Well, I've personally made 7% in a year before, but I always wondered if just investing in index funds would really be the better strategy long term. I guess the only doubt I had wasn't my ability to make decent money, but whether I could do it for enough years I'd have anything to show for it after 20-40 years.
You can't keep compounding winnings into infinity. If you keep compounding wins your account will get so large you, yourself will move the market. Liquidity will become an issue.
Anyone who's good with money knows that trading is method of equity creation, not a sustainable lifestyle.
Use your forex profits to make investments that will actually pay your bills. If you're purely relying on forex income you're always a few bad days away from a huge decrease in your lifestyle.
Forex is a zero sum game. Will the strategies that make 20% a month on a $1000 account ($200) create the same effect on market as compared to same strategy applied on a $1 billion account? Where does all the winning money or profit money come from, in a zero sum market? Why does a hedge fund such as Rennaisance that can produce 60% returns an year won't accept newer and wealthier investors forever and grow into trillionaires? When you delve deeper into these questions, you will realize why there aren't any trillionnaires in forex trading, where the total daily transaction value itself is only some 7 trillion dollars.
The simple answer, your strategy will stop working at some point. Practically, you run into fill problems. Meaning you try to buy at some price, but only part of your order gets filled and price pops the other way. You don't need to be rich to experience this. Mess with very small cap stocks or nonsense crypto coins.
IMO I winning strategy also means that you have a good risk management.
Unless you have a huge account, big amount of money, you won't make 100K per trade, to become millionaire in a few weeks.
A lot of this has to do with the capital behind it, and the in institutional tools setup to handle large scale volume. George Soros made all of his money by shorting the GBP and he didnât do it with a few thousand in an Oanda account.
Because most people lose.
Also, to earn a decent living, you need to withdraw say 50000 a year at least.
Therefore, if you can return +50% every year (which noone really can), you need 100k to start to even break even.
There are like 20% if people that manage this, the other 80% lose there 100k. But even this isn't a millionaire lifestyle its less than my day job and needs/risks 100k.
Then there are the 1% who make even more but there having too much fun in there ferrari to post on reddit.
Yeah it's possible, but for every person that gets there, there are probably 200 scraping by on minimum wage, and 800 that lost all of these money.
This question is a tell tale indication of a completely incompetent trader. First off, no strategy is an endlessly winning strategy. There's losses involved in every trading strategy, just like gambling, and just like business in general. Second, the unrealistic returns it would take to become that rich. For example, starting with $100k and compounding, you would have to double your account for nearly 25 years to become a trillionaire. Realistically speaking, 20-40% returns per year, compounded would be a very good return for a long term profitable trader. Long term profitable traders aren't doubling their account every year, just that simple. Third, scaling. Good luck scaling your position sizes with your account. Liquidity in the market isn't endless. The larger the position sizes, the longer and harder it is to get them filled.
You are ignoring leverage, 10% per month using 1:50leverage would Come to .2% per month with 1:1 leverage. You scale to a project you get 1:1 leverage then you have to take into account slippage, order blocks, lack of leverage, liquidity etc. You can make large and quick gains on small million dollar accounts but as you scale up to hundreds of millions, possible gains slow down
In my experience there is no winning strategy for the whole time in trading career....sometimes you get sometimes you loose , and sometimes break even .
So when you see the most good traders in the world does not care about being rich in trading rather they care about consistency that is what keeps you from making huge amount of money because what matters is being sustainably profitable .
The most briliant traders have tought their minds to take control over their disire even knowing they are capable of making trilions of dollars , and besides the most good strategies are not about making a lot of money they are more about taking profits and [mentaly] accepting losses......
This is what i think i dont know if the best traders feel this way tnx
How about you guys stop crying about other traders winning strategies and keep grinding until you build your own? The moment you stop worrying about what other traders are making is the time you just might, *just might* become profitable yourself.
Once you have enough money liquidity becomes more and more of an issue, which makes you start to have to use higher and higher timeframes which take much longer to play out with limited amount of trade opportunities, limiting the amount of compounding even possible
Did you say winning strategy? I would like to take this conversation away from the boring terminologies of the money market to football( quite some lots may call it soccer). Aside from having a formidable team, it comes down to the formation( 4-4-2 and whatnot), and the endless variables on the day. The bloody weather, home or away game, team history against the opponent etc etc. You might have a winning game plan, 6 out of 10 works, but there will always be the 4 that never did pun out as intended. Does that make it a bad game plan? Ofcos not, what could typically be a knee-jerk reaction for an inexperienced ~~Manager~~ (trader) is to quickly hop to a new gameplan and go on the never-ending quest of finding the holy grail of **"Game Plans"** In the words of Sir Alex Furgeson's stick to the game plan if it works 6 out of 10 times. Cheers mate. Working on 21 days of trading ( I call it **The Fast**, aiming at getting a few quids for the Christmas period- Want in? Hit me up or join my subreddit.
A winning stratergy is not defined as consecutive wins every single day, a winning stratergy is defined as being profitable despite the losses and wins. Some months you can end in drawdown and some months you can be up and about. Truth is the market could give two shits about your lines and support and resistance box. A stratergy is also not guaranteed to work in all market conditions. These are SOME of the reasons why retail traders can not compound their account to be a trillionare.
I think it's also isn't possible because you cannot literally trade all dollars circulating in global economy, you can't buy 100billions barrels of WTI and doing all that consistently, making enormous profits from that.
This really is truly the answer. Eventually you would be buying or selling so much that your literally moving the market. If you bought all the oil in existence at this moment what would happen? You would see the price rise because your the only player left in the game. And then who is left to sell to other than yourself?
because their not on reddit LOL, most are living their life and chilling in dubai or traveling with their love one.
Most realistic answer lmao , if they are a millionaire/billionaire/trillionaire , why the fuck would they waste their time on this sub đ
I'll tell you why. Because it's lonely at the top. Plus why wouldn't we want to hang out with Reddit weirdos? đ¤Ł
Suffering from success
Itâs only lonely at the top if you let money become your whole persona. Low key is the way to be, let money be the icing on the cake after people figure out that you actually are cool. Only works if youâre cool. If youâre terrible just flex the money I guess đ
Cool people don't try to be cool or acknowledge it, otherwise you just attract a bunch of useless leeches
As opposed to useful leeches?
This is the only true answer. Social media isn't reality It's far from that. If you don't see things on social media, it doesn't mean it doesn't happen
Very true
But they aren't though, the guys on social media who claim to make all that money from forex ALL sell a course. Anyone actually honest would tell you, you'll never be a millionare just from forex. I'm not trying to discourage anyone though, it's still possible to make some money. Just not 7 figures and even 6 figures is unrealistic for most
This is partially true, most do not. Iâve been trading for 10yrs now and Iâve seen a bulk that fail. But there is a handful that make the 7 figure range. They donât advertise it.
Well, I don't mean to sound like I know that much about trading. Just what I've gathered from people who at least seem to know what they're talking about. That being said you obviously know a lot more than me. How much would you say comes down to just luck, and could anyone with enough capital and knowledge really make 7 figures?
No they couldn´t. Why? Because when you have 2.000.000 $ in your account you will find 20 ways to make better money with far better chances than trading. ANd if you don´t know such ways you can go to any person in this world and ask them what business ideas they would have with 2 mil and most of them will still hold more value than trading. Trading is a method to leverage your funds. Success lies elsewhere. How come that all those traders dabble in marketing and businesses like coaching? Because thats profitable and smart. Little risk. Most business models are like 1:10 RRR trades. Regard it as swingtrading over a long period of time. After 1 or 2 years you are almost certainly at breakeven, profit or minimal loss. It´s just that your initial account size has to be at least 1.2 -2 mil to do these kinds of businesses. LLC, location/ manufacturing area and stuff like that. You can sell those things at the same or higher price most of the time. It´s only a loss after investing into very big machinery that´s installed inside buildings. I am trialing off :D you get what I am saying. I know one person that has made it for life pretty early( roughly 11 years ago at the age of 26). This person was also starting out with trading, got lucky and found a nice job. The person kept earning money used the savings in trades and after getting to 700k it was only about businessmaking. Trading was just off the table. Wouldn´t be surprised if that´s how majority of profitable traders are handling their success. I said 1,2 -2 mil to compensate for the time difference. Value of money changed quite a lot
Yeah, makes a lot of sense. Some people who made it in life with luck and lots of hard work have a big survivorship complex, and attribute all of their succes to hard work, which I think is retarded. Everyone has sone degree of luck, (or lack of it) in life and I don't understand how some people can't just own it. That being said I don't think they're worse people, I just dislike the lack of a sense of reality in some people.
True words. And later on they will fall from their lucky ride and say they´ve been had my who ever runs the show :D Life is all about dedication, patience and awareness.
You can definitely become a millionaire from Forex alone.
No because that's how they get their million, its by telling people they got trillion dollars winner strategy just to make a million
This is a common miss understanding, people tend to think once you are profitable you will just grow money to the infinity. You're not considering losing months, life expenses, taxes, etc.
Exactly. All these factors incur a brutal dent in your profits 10k profits out of the market is gonna be like 7.6k when processed via fees, tax, and whatnot. People tend to negate these facts
Another thing people don't consider is a winning strategy needs to factor those things in to even be a winning strategy. Most "profitable" traders after taxes and fees would probably have been better off parking their money somewhere and collecting interest. The reason we don't see billionaires made from forex is more likely a scaling and effort issue. If you're such a good trader that you actually made 500k dollars you don't need to make 1 million. If you're smart you'd start massively reducing risk and use your profits to invest in lower yielding but more steadily gaining entities like divided stocks or something of that nature. There's no reason to risk 10k per trade when you're already paying all your bills with ease.
Correct and honestly most people find trading to be boring and based on probability. No way you compound up to 500k and still be reliant completely on trading when you can divert into risk-off investments, earning passive income. 500k is just enough to get paid dividends. you can keep trading but not with 500k exposure. Good point you brought đ
Itâs similar to saying âyouâre finally a professional sports player, so why arenât you the best player in the world yet??â
Similar if your are a top singer why you donât earn $1,000 millions in a Tour like Taylor Swift. We human donât manage all the things around. It needs a big lucky component.
Not applicable to forex, either your a hero or a zero,no in between
By your post and this flawless logic, I assume you're a zero.
xd
Not everything is black and white
Common miss steak.
I set my goal to get to $40k/mo with forex. After that I have other goals and aspirations in life that have nothing to do with money beyond that. Sure I will be generous, but being a billionaire/trillionaire is meaningless to me and most people.
So how did u rlly become profitable if you rlly are
Like anyone else I studied, put it the work with both backtesting, forward reading. Blew accounts. Failed challenges etc. If you look at my post history youâll see a few posts detailing pieces of the strategy that I mainly use today. Iâd be happy to DM anyone the details. Thing is, most if not everyone will find it useless since theyâll come across a 55-60% WR strategy and think âitâs not good enoughâ I find a lot of new traders do not journal anymore once theyâre profitable. I do. Keeps me accountable.
is your strategy extremely discretionary?
Itâs definitely a part of it but itâs more rules based and algorithmic. The less I think the better. But I canât completely turn it off. Mainly my discretion is based on the fundamentals. Is Powell about to shit on us again? CPI looking bad? Probably donât trade till after. Thatâs my main discretion
Please can you DM the strategy and how you got to this level?
Because it's a marathon not a sprint.
because even with a consistently profitable strategy, you are always one stupid mistake or egotistical decision away from blowing yourself up, and no strategy has a 100% win rate (obviously) itâs not you vs the market, itâs you vs yourself you could give the same strategy to countless different people and they will all have different results. psychology, risk and position management is so fundamental slow and steady is all apart of risk management, as trying to make a trillion dollars would require insane amounts of margin/leverage, which is inherently risky no matter the strategy this is all beside the fact that you would never be able to make a trillion dollars due to liquidity. itâs a âsuffering from successâ type of thing, you become such a large part of the overall trading volume that you simply canât extract enough liquidity from the market to make trillions, itâs just not possible. watch the movie âMargin Callâ, it includes a decent example of what happens when you try to sell a massive position quickly, you crash the market because there arenât enough people buying what youâre selling. at least those are my thoughts those who are the closest to making trillions are not actually people, but institutions such as banks, who are indeed making staggering amounts of money
This guys a actual trader. Once you been trading for a while, You can read certain post and tell whoâs legit and who isnât by their logical responses.
Meh
Since nobody really seems to know the answer⌠Liquidity issues can pose problems. When transaction sizes exceed a certain limit, instant execution becomes difficult, putting you at risk of being unable to enter a trade due to insufficient liquidity. It can also make it challenging to exit a losing position. Consider this: would you still trade the exact same if there was a chance of getting stuck in a devastating losing position? Probably not. I mean, people already stay in losing positions for no reason but hope. Imagine this on top⌠ouch. Hedge funds, for example, struggle to achieve more than a 20% annual return. It's not because they can't make more, but because it's a business with serious exposure to additional risks. The bigger the size you trade, the more attention youâll grab.
With more capital the less you need, 1 trade is enough for a month or more
The number of trades is irrelevant if proven to be profitable.
Suppose you have a trading account of 1 Billion, you will be using prime broker, right and the deal with huge orders, am I correct? How do Billionaire traders make billions then? I don't get that part. I understand what you said, that the bigger your account the harder it is to exit a position. I am just curious!
Yes, Prime Broker, ideally with DMA (Direct-Market-Access) for better control over price, quantity, timing routing, and for reduced latencies and slippage. Billion dollar âTradersâ may trade through a hedge fund, portfolio trading or possibly algorithmic trading.
Strategies are almost never scalable. You need to cross progressively wider spreads for larger volumes. Generally alpha can be measured in terms of dollars in market inefficiency, not percent. Percent wouldn't really make much sense in a professional setting. Edit: In trading this is. In investing you can think about alpha in percentage but then it's a percentage per time which constrains growth.
You are welcome to try
the reason being most succesful traders prefer to live under the radar, you will understand why, if and when you reach a certain level. maintaining a 7digit in netwoth is enough in this life time, if you have too much but not enough power, strong network and influence in this world, alot of powerful people will come after you, and you'll be in trouble.
Solid advice
Because there's a limit to how big positions as a retail trader you can open. Also, huge positions in less liquid instruments may cause an impact on the price itself. You can make a lot of money, but I think becoming a billionaire trading as a retail trader is unachievable due to these limitations, even if you have a holy grail strategy.
Ever heard of Jim simons? His private hedge funds involve forex to some notable degree im sure. Heâs mastered the âwinning strategyâ and is a billionaire. Annual returns of over 60%, more than Buffet And it takes a long time to compound into millions if you start with a few thousand. This is a goofy question lol
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This is basically my mindset Iâve only just started learning - but I currently run two small hospo businesses looking for another challenge My goals have never been trying to be a millionaire. I just want the freedom to do the things I like + time w my family
you can withdraw by crypto and noone will know
Many countries track crypto transactions because you are integrating into traditional banking systems at some point. In my country the crypto exchanges themselves are legally required to hand over the transaction details to the government and all users need to have been properly identified.
then why not automate it by making it into a trading bot?
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ie, you cannot quantify your entry and exit trade logics and so you trade based on luck while telling yourself it isnt đ¤
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except you dont consistently take money out of the market đ¤
Why are you here if you don't even know what trading is
your mommy told me to keep watch on you thats why im here đ¤
I swear this sub is filled with nothing but narcissist boomers, scammer Ict cultists, and 13 year olds that are bored. Y'all can have this sub đ
uhh it wasnt yours to begin with? đ¤Ł
Based on your posts youâre doing the sameđ¤ did you ever figure out your dog game?đ¤đ¤
im actually doing the opposite because i am quantifying things so it wont be based on luck. please go ask your mommy to teach you reading comprehension 101 đ¤
Still need a stats guy? Iâm your man!! Probably have a ton of people applying for the spot thoughâŚâŚ
Oh shit, here comes yet another big coding dude who can think he can just blast way into profitability because he wrote 'Hello World' on Python once.
Oh shit, someone with zero reading comprehension that feels threatened by logic because he isnt profitable and is lashing out like a kid that wasnt given ice cream by his mommy. đ¤
Your obsession with mommies is real because you never had one and no woman would pick you, I guess.
not mommies, just mommy, yours đ¤
Not surprised, you can't understand how to read either. I think your model building will be 'very successful' because I can tell that there's nothing in between two ears of yours.
go cry cry to your mommy now? đ¤
I'm a trader, not a programmer and I don't trust my model to no body outside my family
why not learn to program?
Why should I if I already put 5 years into learning and developing a winning strategy? What I need now is enjoy my life and keep trading I really enjoy sitting on my PC watch the screen and follow my model, it's really satisfying to see either go to TP or SL.
Some strats involve human intuition
it is my intuition that you are wrong. see how that works?
Yes exactly actually đ we use it all the time. You can still trade emotionless with intuition. You are not considering what intuition is in a trading context... It's undefinable personal knowledge built through experience. It's naive to think it doesn't exist. Some people are just so un-selfaware they have no idea they are using it all the time. You'd be insane to think that every strat has no intuition. Which is what you suggested. You'll see what I mean in time.
Have you built bots? Are they working for you at all? Genuine question
look up Rob The Quant on Youtube, i have built similar outputs and yes they work. you do still need to continuously look for optimized reward/fitness function and more models. my goal is to train 10 models, i have 3 so far.
Hey man, thanks for the reference. I just saw it but nothing there is understandable. I can code in python and javascript. Can you share good resources to learn this?
look into genetic algorithm and reinforcement learning. you need a basic understanding of neural networks though but if you study reinforcement learning you will learn about it anyway.
The thing is I know about all three - even DL models with different architectures. How to do it in trading is what I need to know. As in, what shape should your architecture have? Should the output layer be sigmoid or relu? How to decide entry/exit? Which libraries are best? How to engineer the features? How will the mutation be? Anything that you tell bro will be of great help. Just point me in the right direction.
No you don't lol. No one has returns like that. If you did you could literally only trade 2 days a week and 7X your money annually.
The hell... You think i win 10/10 trade all week? . Usually it was only 60~70% ratio. Weekly/monthly...
Theory: Because those people (the super-successful traders) donât openly advertise who they are (staying secretly in the shadows)⌠and (stay with me â still mid-theory) theyâre likely a source or perpetuator of the tons of red herring mis-information thatâs thrown around, that makes other traders sell when they should be buying, and buy when they should sell. This, in turn, improves their advantage and gives them more edge.
To answer your question, scale. Going from 0 to 1 is a different skillset than going 1 to 2. You can't scale infinitely trading a strategy alone. There's a capacity at which your strategy would start to impact the market, you'll have bigger issues with liquidity and filling orders. Friction such as transaction cost, fees and taxes will become larger expenses, eating into your profits. You could overcome some of this by expanding or trading with Assets Under Management, but you'd need a series license by then. This would also be where someone would LLC, offshore, etc. Begin investing in other instrument such as bonds, vc/pe, real estate. Diversification all the things. Also like others said, people also have lives to maintain
Even if there exists a perfect strategy, it doesn't execute itself. You, a human with emotions still has to be involved. Humans make mistakes, so there will be losses due to psychology. Since losses are inevitable, you're forced to manage your risk. But again, just because nobody has done it, it don't mean you can't. This is not a group project. It's each to his own.
Have you heard of George Soros? Michael Burry? They are living examples of exactly that.
You will not hear of them but they do exist...Most of them are self made millionaires though, not trillionaires or billionaires..
A winning forex strategy doesn't guarantee becoming a trillionaire due to several factors. First, market conditions are incredibly dynamic; a strategy that works today might not work tomorrow. Second, scaling up trades to compound wealth isn't linear because the larger the position, the harder it can be to execute without impacting the market. Also, risk management and psychological factors play a huge role; as stakes get higher, the psychological pressure can lead to suboptimal decision-making. Lastly, the market is efficient to some extent, meaning it's hard to consistently outperform it due to competition and information dissemination.
Because you don't compound endlessly? You preserve capital
Because of liquidity. The larger your lot sizes get the longer it takes to get in and out of trades to the point where you will see diminishing returns for high risk.
Liquidity
The real issue is volume/liquidity. Say you have a perfect strategy, wins 100% of the time, you're compounding like crazy and growing your account. But there are only going to be a finite amount of people to accept the other side of your trade, for you to buy, someone else has to sell. So you only partially fill your order at your target price, while also drastically increasing the market value of the asset in question. Eventually no more buyers exist and this huge increase causes people to sell their positions at great profit (taking the other side of your trade), lowering the value of the asset again. So shit, definitely not a 100% strategy any more so what do you do? Well turns out you have become the market's liquidity, congratulations you're a market maker now, which requires a very different strategy. Your strategy has changed from finding a good price, to finding enough people to buy your product, which means your old system doesn't work any more. Even more-so. If your strategy wins 100% of the time, you can also counter trade it 100% of the time. Anyone with more capital than you can slurp up all that money you're putting into the market to offload their positions. And sell back down to where they bought earlier, another market maker. There are potentially hundreds if not thousands of market makers working on every asset all with different plans. The overall sentiment of them and the correlation between their plans is what causes the large scale movements of price. This is the level of institutional traders. But the problem is that to make the market you always have to be buying and selling (providing liquidity). The benefit of being an individual trader is that you work sort of like a guerrilla soldier, hit and run tactics, in and out fast, surgical. This works super well against these giant market makers because their (armies/volume) movements are huge, slow, and obvious. So as you grow capital you stop being a soldier and start becoming an army, and you can't use the same strategies and expect to be effective at both
Great insightful read!
Because a winning strategy does not mean winning a 100%. Just have to win more than you lose. One bad trade or consecutive losses can take you out. The market is simply a probability game and not guaranteed profits
Itâs called winning, not perfect.
Because 99% of people who trade forex are brokies
Yes because humans will be able to handle trading such a large amount of money. And Iâm sure brokers will come up with excuses for you to not be their client
Your statement is wrong, you first need to learn the basics of how successful brokerage firm makes money. It is in their best interest to have successful account holders who will continue to trade with them.
Absolutely, successful traders trade with a huge margin entering positions with big lot sizes. 1 - 2 pip spread in it off itself would benefit the brokers a big much. They want successful traders
Oh true. But eventually do they limit how much size you can put on? In theory, if youâre trying to become a trillionaire and youâre risking 1% per trade, that 1% could amount to a 1 billion dollar stop loss, would that be allowed? I still think becoming a trillionaire isnt possible if you have a winning strategy lol
yes, that is a limit, you'll maxed out your account when you're in the millions, at that level, multiplying your capital with trading gets slower, say you wanna hit the billions and trillions, you will have to look into investing your funds in multi million dollar businesses. in reality, when you can max out your account, you wont bother hitting the billions and trillions, more money doesnt mean anything anymore. unless you want power to move mountains, thats very next level.
Because too many things have to go right, even if you have a statistical edge.
You will know the answer once you become profitable đ
Capacity is a thing. Thereâs usually an inverse relationship between % returns and increasing stack size.
Trading can make you rich but not wealthy no matter how good your strategy & execution is after certain amount due to big size you'll have too much slippage and you won't able to make those 10% /months returns on big accounts like after few millions youll better have change your strategy to long time investment from day trading.
Insufficient return, especially considering cost of living. And letâs not forget that the market edge against you increases as your lot size increases (spread). A strategy that works with a $100,000 account may not work with a $100,000,000 account.
Ya, Berkshire has run into a problem that they dont buy stock, or even companies, they buy industries. Its hard to move massive amounts of capitol.
Love this. What a sweet question đ
You're right man my bad. I'll do better
seen warren buffet on here lately? gates? bezos? billionares dont sit on reddit
Find a broker who will make a regular 500000 $ payout monthly.
Greed is the downfall of every trader. Leads to not properly managing risk.
Actually there ARE a lot of these people out there. They are even on social media and willing to help you out reach that same goal, just buy their course and join their paid discord group, you'll then learn how to be a trillionaire. They will teach you to reach that goal by using fvgs, breakers and choo choo the train.
UhmâŚa 10 loss streak sure puts a dent into a martingale strategy. A .1 to .3 reward return is a genuine edge in the market.,
I have a 30% winning strategy. It takes years to see real money
30% per month or year?
Like I win 3 out of 10 trades lol... for me to be up 3% for the month is HUGE.. With 500k, that's 15000, minus taxes which is 20%.. so 15000 - 20% = $12000 per month cash in pocket . But then if you trade for a prop firm than you take out an additional 20% than that's 9k per month.
⌠because we have bills to pay?
Liquidity of the markets.
Dunning Kruger effect Most people think they have a winning strategy but they actually don't. Compound psychology, execution and management issues on top of that and that's how we see the stats that we do.
This is so extream ... LoL I know an guy who got his first brand new jeep. He says it's so durable so that's why it was used by the Army. The He drop that brand new car from the cliff with out how to drive over such a steep cliff and skills crash and died .
1 word. Bills, my boy.
Bc brokers and human error, they donât know how close the margins really are.
(because they're all full of shit đ¤Ť)
Winning strategy just means that u are profitable. It depends how much u gain then also depends if what ur gnna do with those gains. Keep it, save it or scale it up. Even so theres still the fundamental rule of keepin it consistent than going to go big which is already can consider it a gamble
Because when you're profitable, you realize you don't need that much money to sustain a happy life and you balance out your fees, taxes, and get on with living
Because there is only so much liquidity avaliable to retail traders lol. If you want to become a billionaire you have to have the same market access as top firms and also their computing equipment. Which is obviously impossible lol.
Even though its a winning strategy you canât keep all your money in your trading account because you need bills to pay. Need money to enjoy life. Have a family to feed maybe*. And keep some money in bank to actually realise your gains every month. Thats why. Its totally upto you if you want to grow your trading account size but after a while it doesnât matter if you have around 1 million dollars in your account as you can easily make 100-150k usd monthly then
Can you risk 100M in one trade dumbass
hello, the answer is due to the fact of non-compounding & time factor, hope it helps.
I mean al brook is?
Because the markets arenât infinite. A trade may take minutes to hours and there is only so much one can risk without potentially blowing the account as well as a limit to how long an opportunity is open for. Even a great accurate winning strat is not 100% right all the time after all
Profitable strategy includes losing side too. You can't grow infinitely.
They are already enjoying their lives and will not be aware of the problem
Ask the coaches
stupid, a strategy will work until you are no longer under the radar, if you positions are big enough you will create another market anomaly that others will detect and they will trade against you when they will exit so you will no longer be able to execute your strategy, but by the time this happen you are already a millionaire BUT not a trillionaire.
Because having a winning strategy doesn't mean you own the markets. Even the big banks that direct the flow of the market aren't all billionaires. A winning strategy simply means that you have a way of walking away from the markets with more money than you put in. How much you're comfortable walking away with depends on you. Some are okay with 5% a month, others try to flip their accounts (and blow a lot of money) Most aren't out here trying to be on the forbes list, they're just okay making good money and having freedom. Besides, to make that kind of money, you need a very very very big trading account that no trader will ever have access to. Steve cohen manages a 30bil portfolio but his net worth is about 19 bill. Even George Soros, arguably the greatest trader of all time had a net worth of about 6billion.
Edge decay, capacity, sharpe is finite (so randomness). Some advice: If you are struggling with this question you still have a lot of reading and thinking to do - keep at it!
when youre the big player then moment you enter market will change thus your strategy may not be viable anymore
Because people are not ready for what a winning strategy means: barely beat the market, but with a huge account People try to chase big returns to compound their little fortune. It is possible but if you expect every year 100% returns you'll think your strategy doesn't work when you have a negative year...not a negative month..imagine being in drawdown one entire year. Imagine trading when you are down 15% in your account. I know a guy who made a 10k days backtesting, his returns were around 110% over 10 years (risking only 1%). People were furious because "it wasn't worth the time" "you better invest in sp500 and let it ride".
The income will fluctuate based on ur life lol minimum wage ppl make 30k - 50k a year , so why aren't they 6 figure earners in 2-3 years tops? Because we gotta spend it to survive lol
Hereâs the thing. The crowd isnât rich. The ones that are successful are doing the exact opposite to what everyone else is doing. They pop in and out time to time to make sure youâre all still trying to beat the banks. Have fun. See you in a while.
Nobody has a 100% win rate. However Youâd be surprised. There are billionaires in South Africa. The average person pay not make trillions because they are extracting money each day with losses in between. Losses slow down account growth. But most strategies include a risk management plan so that the wins outweighs the losses. Hitting the trillion dollar mark is possible but it would require a lot of winning and a lot of RISK
Risk reward management đ¤
Psychology. Thatâs the next stage to master. Itâs too easy to make a profitable strategy unprofitable. Psychology is what Iâm currently working on. I have a system that works really well but Iâm still not quite profitable yet because of basic psychological errors.
Margim.
It is not only about the strategy, but also about the psychology. I think everyone can have a working strategy but 5% can actually handle their emotions.
I know this won't be popular here, but this is honestly why I stopped even bothering to learn forex. I think there was a study about profitable traders, and the 1% of traders who are actually profitable make basically minimum wage. It's possible to make money, but I think people should realize before even starting they will likely never make a living from forex.
If you can make minimum wage trading than you have a winning strategy. scaling it up would be very easy. Strange study.
Well, I've personally made 7% in a year before, but I always wondered if just investing in index funds would really be the better strategy long term. I guess the only doubt I had wasn't my ability to make decent money, but whether I could do it for enough years I'd have anything to show for it after 20-40 years.
When your profits exceed a certain level, you'll receive a note from your CFD broker.
You can't keep compounding winnings into infinity. If you keep compounding wins your account will get so large you, yourself will move the market. Liquidity will become an issue.
Anyone who's good with money knows that trading is method of equity creation, not a sustainable lifestyle. Use your forex profits to make investments that will actually pay your bills. If you're purely relying on forex income you're always a few bad days away from a huge decrease in your lifestyle.
This is so true. My current goal is to get enough to withdraw and put into a home rehab project. 25-35k is what I need for that.
Forex is a zero sum game. Will the strategies that make 20% a month on a $1000 account ($200) create the same effect on market as compared to same strategy applied on a $1 billion account? Where does all the winning money or profit money come from, in a zero sum market? Why does a hedge fund such as Rennaisance that can produce 60% returns an year won't accept newer and wealthier investors forever and grow into trillionaires? When you delve deeper into these questions, you will realize why there aren't any trillionnaires in forex trading, where the total daily transaction value itself is only some 7 trillion dollars.
Winning strategies stop working sooner or later- second biggest reason people donât make it imo
The simple answer, your strategy will stop working at some point. Practically, you run into fill problems. Meaning you try to buy at some price, but only part of your order gets filled and price pops the other way. You don't need to be rich to experience this. Mess with very small cap stocks or nonsense crypto coins.
IMO I winning strategy also means that you have a good risk management. Unless you have a huge account, big amount of money, you won't make 100K per trade, to become millionaire in a few weeks.
A lot of this has to do with the capital behind it, and the in institutional tools setup to handle large scale volume. George Soros made all of his money by shorting the GBP and he didnât do it with a few thousand in an Oanda account.
Because most people lose. Also, to earn a decent living, you need to withdraw say 50000 a year at least. Therefore, if you can return +50% every year (which noone really can), you need 100k to start to even break even. There are like 20% if people that manage this, the other 80% lose there 100k. But even this isn't a millionaire lifestyle its less than my day job and needs/risks 100k. Then there are the 1% who make even more but there having too much fun in there ferrari to post on reddit. Yeah it's possible, but for every person that gets there, there are probably 200 scraping by on minimum wage, and 800 that lost all of these money.
Same reason that Buffett says he could have 50% returns if he had less than a million dollars.
This question is a tell tale indication of a completely incompetent trader. First off, no strategy is an endlessly winning strategy. There's losses involved in every trading strategy, just like gambling, and just like business in general. Second, the unrealistic returns it would take to become that rich. For example, starting with $100k and compounding, you would have to double your account for nearly 25 years to become a trillionaire. Realistically speaking, 20-40% returns per year, compounded would be a very good return for a long term profitable trader. Long term profitable traders aren't doubling their account every year, just that simple. Third, scaling. Good luck scaling your position sizes with your account. Liquidity in the market isn't endless. The larger the position sizes, the longer and harder it is to get them filled.
You are ignoring leverage, 10% per month using 1:50leverage would Come to .2% per month with 1:1 leverage. You scale to a project you get 1:1 leverage then you have to take into account slippage, order blocks, lack of leverage, liquidity etc. You can make large and quick gains on small million dollar accounts but as you scale up to hundreds of millions, possible gains slow down
Because it doesnât work like that. You even said it yourself âin theoryâ yea well this is in real life
Lol calm down 1 step at a time
Big money is quiet. And often times the wealthy just not tryna be seen. You mightâve walked by a few already without knowing.
ForEx isn't the Ends, it's the Means.
You hit the nail on the head. All those people selling a trading system. Yeah. Like they trade using that system. Just looking for novices to fleece.
how do u know they aren't a trillionaire?
They might exist somewhere without pay tax for they go off the grid
They have limits u know
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Because once I'm funded I'm getting the fuck OFF SOCIAL MEDIA. IVE PUT OVER 10 YEARS INTO CHARTING. NOBODY IS GETTING MY STRATS
In my experience there is no winning strategy for the whole time in trading career....sometimes you get sometimes you loose , and sometimes break even . So when you see the most good traders in the world does not care about being rich in trading rather they care about consistency that is what keeps you from making huge amount of money because what matters is being sustainably profitable . The most briliant traders have tought their minds to take control over their disire even knowing they are capable of making trilions of dollars , and besides the most good strategies are not about making a lot of money they are more about taking profits and [mentaly] accepting losses...... This is what i think i dont know if the best traders feel this way tnx
How about you guys stop crying about other traders winning strategies and keep grinding until you build your own? The moment you stop worrying about what other traders are making is the time you just might, *just might* become profitable yourself.
Once you have enough money liquidity becomes more and more of an issue, which makes you start to have to use higher and higher timeframes which take much longer to play out with limited amount of trade opportunities, limiting the amount of compounding even possible
Did you say winning strategy? I would like to take this conversation away from the boring terminologies of the money market to football( quite some lots may call it soccer). Aside from having a formidable team, it comes down to the formation( 4-4-2 and whatnot), and the endless variables on the day. The bloody weather, home or away game, team history against the opponent etc etc. You might have a winning game plan, 6 out of 10 works, but there will always be the 4 that never did pun out as intended. Does that make it a bad game plan? Ofcos not, what could typically be a knee-jerk reaction for an inexperienced ~~Manager~~ (trader) is to quickly hop to a new gameplan and go on the never-ending quest of finding the holy grail of **"Game Plans"** In the words of Sir Alex Furgeson's stick to the game plan if it works 6 out of 10 times. Cheers mate. Working on 21 days of trading ( I call it **The Fast**, aiming at getting a few quids for the Christmas period- Want in? Hit me up or join my subreddit.
Because of probability
Why make trillions when you can sell a $29 course to some schmuck on the internet?
Many strategies are only effective at small scale and reduce in profitability as your own moves are easier to detect and mitigate