Whatamp;#39;s the chance of making a large amount of money in forex day trading? -

Your chances are good if you; Take 6 months to a year reading, learning and paper trading. You fully understand the fundemental and technical aspects amp;(just as important) use very exact money management techniques. Ignoring the above will put you with the 95% of people that blow their FX accounts (usually very very very quickly). Consider yourself warned! This is a great market for those that take the time and make the effort. All others lose big. Huge profits can be had, but in my study of the markets, I ve read of no well-known financiers (other than George Soros of course, who is known for the billion dollar profit he made shorting the British pound) who were exceptionally skilled in FX trading. Look at Warren Buffett. He is protecting himself against the weakening dollar by spreading his money amongst 5 different currencies, obviously with no attempt to trade his way into huge profits on that front. And knowing what I do about him, if he can t do it (or doesn t try to), I certainly have a lot to learn if I am to attempt such operations. Generally speaking, when we look at FX, we re talking about whole economies, many many variables at play, and extreme complexity. That s what makes it so much harder than just picking out one good company and making money off the stock. And look at how many people are good at THAT: not many. If you are really good at understanding currency, and how the banking market works, you can make a lot of money, depending on what a lot of money is to you. If you just sign up for some software that will quot;tellquot; you when the time is right to trade, it s going to be tough. What you have to understand is, even though you are trading money, you are trading inside of a variable market. Anything can happen. Pretty good if you put a substantial amount of capital at risk and you know how to trade forex. First of all you need to adjust your thinking a little on why you are interested in the Forex market. If you go in looking at quot;making a large amount of money in forex day tradingquot; you may have a very difficult time. The two greatest forces working against you in Forex are fear and greed. Focusing your attention on trying to make a large score will put both of these emotions into play in a destructive way. If you enter the Forex market with the intention of generating a consistent, steady return and you give yourself a little time and you let the law of compound interest work in your favor you can do quite well. This may sound like a minor technicality but I guarantee you that it will make a huge difference in your chance for success.