Happy Chinese New Year to those of you who are celebrating this occasion. I did not have time to write any blog post for the past 2 weeks as I am busy with my Chinese New Year preparation and celebration.
Finally I am back at work and today I shall be sharing with you guys about the below question from one of our fellow traders.
Below is the question:
Hi Kelvin, my question to you is, can I really make money from forex considering everything in the market is just random. There is so much bullshit on the internet, I do not know who to believe.
In fact, during this Chinese New Year where I met up with friends and relatives. I have some of them who has tried trading for sometime but eventually give up telling me that there is no way anyone can make money from forex trading as there are government intervention and other external factors that will cause spikes or disturbance to their strategy.
But the fact is there are alot of people like me who are making a living from trading forex. In fact, my uncle has a friend who is helping his client to manage their trading account as he is able to generate 12 to 15% profit every month from trading forex.
No doubt that there are external factors that could affects our trading but these factors do not occur everyday. It just happen once in a while and that is why I say that there is no way you can win 100% of the time in all my blog post.
However with a decent risk reward ratio, you do not need to win 100% of the time to make money. In fact, with a risk reward of 1:3, you only need to win 30% of the time to make money from trading.
If you have a strategy that has a risk reward of 1:3 and 50 to 60% winning accuracy, you can easily grow your account by 30% every month. If you have an account size of $20,000, you can make $6,000 per month. Imagine you are able to grow your account by 30% every month, you will have $96,536.18 in six months time.
Stop looking for strategy that can win 100% of the time as you will never be able to find any. You just need a strategy that wins 50 to 60% of the time with risk reward of at least 1:2, you will be able to make money from forex trading.
If you are still struggling in your trading, get yourself a decent course and then stick to it for at least 3 to 4 months on a demo. You will eventually be able to make money from forex trading. Last but not least, stop looking for any forex softwares or robots that can help you to trade.
These softwares are created by marketers who are looking to exploit your greed and laziness in trading. It will never work, if there is any that works, this world will have no employees as everyone can make money automatically with a software.
I hope that I have answered your question and do feel free to give your comment if there is anything you want to share with us.