Let’s cut to the chase. Yes, you can become rich by trading Forex. In fact, there are a few notable figures who have made it over the years. To mention but a few, Alexander Elder, Martin Schwartz, Lawrence Hite, Jack D, George Soro and Stanley Druckenmiller.
Aren’t they the richest trader the world has ever known? Aren’t they Forex traders?
Not to let their trading success get into your head minus these facts though; these revered Forex millionaires have put a lot of time in learning how to trade, when to trade, when not to trade and when to call it a day.
In this discussion I will highlight a few important lessons that you need to master on your way to becoming a millionaire trader, beginning with: –
You Will Not Win All Your Trades All The Time.
While it is possible to have a good winning streak in Forex, and to earn 1000+% returns form trading in just one month; it is also possible to loose everything in a flash.
The irony is, even the billionaire Forex traders mentioned in the first paragraph have lost some money in some trades. Which makes loosing in Forex just as routine and normal bathing, eating, dressing or maybe toileting.
What however makes the difference between Forex traders who end up racking millions and those you give up and count their loses is, millionaire traders are more strategic in their investing and hedging. And they NEVER GIVE UP.
These are all good vibes which you can learn to start trading profitably. But just not when you want to start trading Forex with $5, $10, $100, $200 or less. You’ll NEVER become a millionaire with such small accounts.
Trading is Not for You If You Kinda Tala Loan, Branch Loan or Sportspesa Loan Guy. Just Give it up.
This may be one of those least popular facts, but at least it is a fact. And it will save you money if you take it.
In fact, the thought of even trying to trade Forex with mobile money loan should already be your number one fear in 1,000 ways to die.
Think of it from this angle, “if $100 is not enough to trade and make reasonable profits in Forex, would $5 be?”
Recognizing that trading Forex with $5 is gambling – which can not amount to anything but loses is itself victory.
Don’t expect to start trading with some few dollars of borrowed money and make consistent profits in Forex.
The market will devour you. It will eat you alive. It will get you into more debt.
Rather, focus your energies on finding a job (if you are unemployed) – trading is not a job and it certainly isn’t for the unemployed; grow your business to optimal operations (if you are self employed) – trading is not a business for armatures and it certainly isn’t an investment to use loan money on.
Put your financials in order and only trade with your surplus income.
If you have little capital to start, say $1,000; then why not take advantage of broker bonuses to add to your account balance?
XM Forex currently offers 50% and 20% trading bonuses. You can take advantage of these bonuses and increase your account balance as shown in the table below.
When Trading, Don’t Quantify Your Trades in Terms of PIPS per Day, PIPS per Month or PIPS per Year.
Who does that?
Certainly not millionaire traders!
The idea behind not quantifying your trades in PIPS is because there is no certainty that you will gather all the PIPS that you want consistently.
In one month you can gather 1200 PIPS and in the other, only earn 12.
Now, what happens if you have set your mind to 1200 PIPS monthly?
You’ll obviously push yourself to making more unrewarding trades that will certainly blow your entire account.
The millionaire way to ensure that even as you continue to gather PIPS you don’t end up losing everything is to instead quantify your progress in profit/loss goal ratios.
Again, it’s easier this way because most brokers now send profit/loss appropriation reports to traders at the end of the month.
Take your total PIP profit then divide it by your total PIP loss. If your profit loss ratio is 2:1 then this is an indication that your system is working. Stick to it. And hope that this ratio grows in favor of your profits.
Forex Trading is Not a Get Rich Quick Scheme. Revisit Your Belief.
There is a reason Forex brokers have education sections on their platforms.
And there is a reason they continue to make educational videos, organize webinars, attend expos and or even organize free Forex Seminar (See what’s coming next to you) for traders.
It’s all because Forex trading requires continuous learning.
And only after learning and becoming skillful, can you begin earning profits.
Take note though, not everyone who learns how to open a position in Forex; how to use stop loss and take profit tools does end up becoming a millionaire trader. Sometimes it just doesn’t happen. But it can if you gain experience trading with reasonable amounts.
The best way to test this theory is to Open A Demo Account and to practice without risks.
Can you get rich by trading Forex? Find out with XM Forex (Android MT4 Trading Platform).