Can You Get Rich By Trading Forex?

Before we go any further, we are going to be 100% honest with you and tell you the following before you consider trading currencies:

 

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1. All forex traders, and we do mean ALL traders, LOSE money on some trades.

 

Ninety percent of traders lose money, largely due to lack of planning, training, discipline, not having a trading edge and having poor money management rules. However, this statement is FALSE.

 

When I first got into trading, I constantly heard the scary statistics that 90-99% of traders fail, and only the top 1% make it. However, in reality, this is not entirely true, let me explain. I'll also explain how to start the process to become the "1%" everyone says you have to be

Trading is one of those career choices with no set rules, no guidance, and no school. It is up to the individual to learn and succeed. This leads to many people quitting after a year or two, as most people don't have the discipline or time to continue to trade. I call this the drop-out rate, not the fail rate.

The drop-out rate is normal in any career you choose. For instance, doctors usually have an 18% drop-out rate while going through school but have only a 4% fail rate when taking exams. Trading has a higher dropout rate, but for those who stick to it, it also has a higher success rate. Let's explore why "most traders fail" and see how you can be one of those traders who don't fail.

 

Time:

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Time is probably the number one reason traders fail because they don't have enough time to be successful. It takes doctors, lawyers, engineers, etc., a minimum of 4 years to get a degree and become fully licensed to practice in the field. So, why wouldn't trading be different? Many traders think they will be profitable within months, which is why they give up so fast when they see how unprofitable they are. The real question is, if it is going to take time, but you need an income, how can you learn to trade? The easiest way is to get a full-time job and then trade around the hours of the full-time job. For instance, if you are working a night shift job, then you can easily trade during the day. (This is what I did). But if you work a 9-5 job, it becomes a bit trickier. You can either trade a market that is open for a longer part of the day, such as futures or crypto, or ask your work if they can work from 10-6, meaning you will be there for market open, which is the best time to trade. Either way, if you want to stick to trading, you will need a job to supplement the cost and allow you to trade for a longer period. This is also just like any college student, who gets a part time job to pay for school, housing, and food.

 

Consistency:

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Sometimes we don't want to, but when you are in school you have to show up everyday you have class, that way the knowledge get's soaked in, and you are consistently building on top of what you are learning, The same thing goes for trading, if we are not consistently learning, and improving on what we are learning how can we get better? The answer is we won't. So even if you have bad days, show up the next day because you learn based on the bad days. This also goes into another idea, most traders chase this huge day of profits, but when you finally become a lawyer or doctor, you don't get this massive paycheck right away. You still have to consistently show up to work, and earn your pay. And over time that pay will increase as you are moving up within that respected field. Same goes for trading, once you have learnt and "mastered" your strategy then you still need to show up to earn your paycheck, and the more paychecks you earn the bigger your account will grow and so will the profits. It is the same as any other job, you start off with a base salary and over time move you move up. But the only difference is within trading, you can continuously move up without any ceiling stopping you

 

Discipline:

 

The way I think of trading is like I am in school taking a test. I spent the previous days studying, and now ready to take what I learned and apply it to the market. But on a test around law would you answer as if you were a doctor? No right! The same thing applies when trading. If your trading with your strategy, but lose, don't go and trade another strategy that you are not familiar with. Because that is like a lawyer taking a test for a doctor. This is where the key part of discipline comes in. Sticking to the degree (strategy) that you are trying to learn will pay off in the long run, more then you know. And just like in school you have different courses you need to learn, same goes for trading. When getting a business degree you learn many parts of what makes a business. Some economics, some law, etc. When you put it all together in the end you are extremely knowledgeable within that field. Same goes for trading, you need to learn about all aspects; technical, fundamentals, psychological, etc. Once you have taken apart in learning everything, then you are a well rounded trader, and will truly understand major aspects of what is going on during the day.

 

Conclusion

 

In the end, by treating the learning steps of trading like you are in school working to get a degree, and sticking to it you can and will be profitable. But remember like any good student, you will have to study all aspects of trading including the psychological side, you will have to be discipline, and trust the process. Once you have "finished" the learning process (never really stops), then you can transition to treating it like a job. I also want to note that I had 20+ friends get into trading past two years and within 1 month quit, I wouldn't add this to the fail rate as they simply just dropped out, and didn't give it the time/effort they truly needed to succeed

 

If you hate to lose or are a super perfectionist, you’ll also probably have a hard time adjusting to trading because all traders lose a trade at some point or another.

 

2. Trading forex is not for the unemployed, those on low incomes, are knee-deep in credit card debt or who can’t afford to pay their electricity bill or afford to eat. Unless if you take SenseiFx trades.

 

You should have at least $10,000 of trading capital (in a mini account) that you can afford to lose.

Don’t expect to start an account with a few hundred dollars and expect to become a gazillionaire.

 

The forex market is one of the most popular markets for speculation, due to its enormous size, liquidity, and the tendency for currencies to move in strong trends.

 

You would think traders all over the world would make a killing, but success has been limited to a very small percentage of traders.

The problem is that many traders come with the misguided hope of making a gazillion bucks, but in reality, they lack the discipline required for really learning the art of trading. Most people usually lack the discipline to stick to a diet or to go to the gym three times a week.

 

If you can’t even do that, how do you think you’re going to succeed one of the most difficult, but financially rewarding, endeavors known to man (and woman)?

 

Short term trading IS NOT for amateurs, and it is rarely the path to “get rich quick”. You can’t make gigantic profits without taking gigantic risks.

 

A trading strategy that involves taking a massive degree of risk means suffering inconsistent trading performance and large losses.

A trader who does this probably doesn’t even have a trading strategy – unless you call gambling a trading strategy!

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Forex Trading is NOT a Get-Rich-Quick Scheme

 

Forex trading is a SKILL that takes TIME to learn.

Skilled traders can and do make money in this field. However, like any other occupation or career, success doesn’t just happen overnight.

 

Forex trading isn’t a piece of cake (as some people would like you to believe).

 

Think about it, if it was, everyone trading would already be millionaires. The truth is that even expert traders with years of experience still encounter periodic losses. Drill this in your head: there are NO shortcuts to forex trading.

 

It takes lots and lots of PRACTICE and EXPERIENCE to master.

 

There is no substitute for hard work, deliberate practice, and diligence.

 

Practice trading on a DEMO ACCOUNT until you find a method that you know inside and out, and can comfortably execute objectively. Basically, find the way that works for you!!!