If you spend any time researching forex trading, you would undoubtedly come across stories of beginners becoming rich over a short period. It usually ends with an invite to buy their course which will ‘help’ you to achieve the same. However, are there people who came from nothing and became millionaires just by trading forex? We will be approaching this question from different angles. The truth might surprise you.
What it takes to become a Forex millionaire
In any entrepreneurial pursuit, there are levels. Some people will always make minimum wage for reasons we will get on to later. On the other hand, there are others who can become very wealthy very quickly. And it is rarely down to luck. Similarly, in the world of forex, you are unlikely to turn a profit. Among those who turn consistent profits, some make a steady side income, and remain at their 9-to-5, while a small percentage trade forex full time, and live life on their terms. Besides their financial position, there are significant differences between these sets of people.
You get what you dedicate your time to. If you learn how to trade forex for a few minutes a day, and spend hours watching Netflix, you will become knowledgeable about films and tv, but a subpar forex trader. Take another person who learns for hours each day and applies the theories on a demo account. After a short period, they are likely to have a profitable strategy. Imagine someone trying to lose weight while still eating unhealthy foods and doing no exercise. They will simply remain fat.
Human beings are naturally lazy, We want to do little for maximum reward. To become a good forex trader, you must go against this mechanism. While others spend hours watching sports, you learn how to trade. You can watch the highlights in 5 minutes later. If you want what few people have, you must be willing to do what few people will. We live in a world filled with distractions. And it is harder than ever to stay focused. I understand. However, if you have been trading for months, or even years without result, ask yourself this question “Was I fully committed?”
Besides a trading strategy, top traders are logical thinkers. They rarely base their trading decisions on news reports alone. The key is to delve deeply into the numbers and decide what the most likely outcome will be. As you grow as a trader, you will be able to do this more quickly and even form connections which most people will miss. For instance, exit polls in one country could suggest that an incoming President is more business-friendly. As a result, this could affect critical industries, and hence the price of a particular currency. Industries, currencies and commodities are linked.
Money management is a crucial part of becoming wealthy through forex. If you spend all your profits on depreciating assets, you won’t hit 7 figures anytime soon. The best traders are masters at managing their money, They are disciplined about how much they invest and withdraw each trading day. As a result, they never invest more than they can afford. It is challenging to stay focused when your account is in the negative. Undoubtedly, emotions will play a role as you make riskier trades.
When I first started trading, I spent months using a demo account. This enabled me to build a reasonably robust trading strategy. After that, I invested 10% of disposable income. Trading on a demo account and dealing with real money is an entirely different experience. I trained myself to control my emotions and disregard previous results. Once I learned how to ‘play’ the data in front of me, my accuracy rate improved dramatically.
I regularly speak to other Forex traders, most of which trade on a full-time basis. The one element which always comes up is timing. There is no rush to enter a trade. However, if your accuracy rate is low, it doesn’t matter how many times you trade, you won’t make any money. You need time to assess a trade before choosing to go in or wait for better indicators.
It can take time to learn this skill. I am naturally an impatient person so waiting 2 hours (or sometimes more) between trades took some effort. I make a few trades each day, and this has helped to increase accuracy.
The truth about 7 figure forex traders
If you suddenly came into a lot of money, would you want everyone to know about it? Probably not, because it attracts negative attention. People might want you to pay their debts, relatives will come for their ‘share’, etc.
Throughout history, wealthy people have always valued privacy.
From experience, the Forex traders who flaunt their wealth have something to sell. More often than not, they are selling hope. You hope that by buying their course, you can quit your job and becoming wealthy very quickly. More often than not, they market it as a foolproof system that “anyone can follow”.
The cold hard truth is that you will need to put in a lot of effort to become a forex millionaire. Do you like money more than sports, tv and social media? If so, great. You are halfway there.
To conclude, I hope you found this article insightful. You can become rich through forex; however, it requires a commitment which few people are willing to go through. There is a lot of information out there, but you will need to take action.