Can Forex Trading Make you rich? If you concluded plans to storm the forex market to make money, top among the questions that are likely on your mind right now is whether or not the forex market can turn your financial fortune around. And whether can Forex Trading make you rich. Newbies have consistently inundated us with this question.
To answer this question, we have to put things in perspective. The simple and straightforward answer to this question is yes, you can become rich trading forex, but it depends on several factors which we would highlight in the course of this article.
Before we enumerate these factors, let’s quickly give a rundown of some bigwigs in the forex space who have made it big. Their stories could motivate you to strive for success and push you to adopt their trading strategies.
Top among the heavyweights in the forex market is George Soros. Soros is currently worth $8 billion; a lot of money, right? Oh yes, he made his money through numerous investment portfolios. In 1992, Soros made the news for breaking the bank of England. How did he do it? While the United Kingdom withdrew from the ERM, Soros took a favorable position that changed his financial fortune. That position fetched him more than $1 billion.
Other notable heavyweights in the forex market are Stanley Druckenmiller and Bill Lipschutz. These men are a force to reckon with when the word forex is mentioned anywhere globally. For Mr. Druckenmiller, he consistently made double-digit profits before his retirement. As of 2018, he was worth $2 billion.
Similarly, Bill Lipschutz made lots of money in the 1980s trading forex. He had no prior experience in the forex market but became the Sultan of currencies after long years on the market.
The list of successful traders is endless; you can do a simple Google search to see for yourself. Their stories clearly show that with luck, education, hard work, dedication, plus the use of the right trading indicator, the sky is your limit. You can also join the list of the wealthiest guys trading forex if you adopt the following four principles.
These principles are valid regardless of your trading location – US, Canada, Australia, India, Tokyo, or South Africa; you name it. The principles are valid in all of these countries.
What are these principles and how do I leverage them? Read on to find out in a bit.
#1. Start Small And Think Big
If you meet any experienced or expert trader for professional advice, 9 in every 10 of them would advise you to look elsewhere if your intention for trading forex is to make quick money. The truth is that it takes time to build wealth even though there are some traders that fortune would smile on them on their very first trade.
So if you desire to be rich trading forex, start small. Whether you are a forex fanatic or you have no knowledge of the forex market, we encourage you to start small. Immediately you register on a broker, start with a demo account to master the art of trading, and build trading strategies you can rely on. While there are several forex brokers on the internet, some of them are promising and guarantee a high return on investment.
Once you gain some level of expertise and confidence, you can then move to start trading using a live account. You can start with as low as $100, and from there, you increase your earnings. Be confident and level headed and know that getting rich in forex trading is not something to be left to luck.
#2. Learn, Learn, And Keep Learning
There is a famous adage that says, “you cannot give what you don’t have.” We agree with this adage. As humans, we are what we know! Your knowledge of the forex market will determine your level of success. One thing you need to know about the forex market is that it keeps changing year in year out.
The trading strategies that worked in the 1980s may not work in this present century. The market keeps changing regardless of the currency pair you are attracted to. If you are to remain competitive in the industry, you have to step up your game by learning, learning, and learning. Knowledge will open up your mind and reveal the trading tactics and techniques that are in vogue.
You can imagine the billions of dollars those that started cryptocurrencies are making. They took the risk and adapted a new currency. So if you want to become rich trading forex, don’t stop learning. If you are committed to getting rich through forex trading, be committed to self in learning.
#3. Do Your Due Diligence
Before you switch from a demo account to a live account, take some days off to do your due diligence. It will help you decide the trading platform to work with. Plus, due diligence will help you to learn from the experiences of expert forex traders.
#4. Use The Right Tool
You will agree with us that human intellects are prone to forget things, particularly when it comes to figures and numbers. You will also agree with us that the forex market is mostly made up of figures and numbers. Forex indicators come handy to help you out in this regard.
There are so many winning indicators you can use. From MT4 alert indicator, price action indicator, swing high low indicator to harmonic pattern indicator, the list is endless. These tools will enable you to take a favorable position that would guarantee consistent profits. Additionally, for effective risk management, forex indicators have got you covered. In the modern day of fast trading, getting rich in forex trading needs an analytical strategy which can be closely monitored with the help of forex indicators.
To remain competitive in the forex market, you have got to adopt the principles we have shared in this article. Also important is a reliable forex broker. A forex broker can be the difference between your success and failure. So stick with a reputable broker that has a track record of success and guarantees high returns on investment. It is of imminent importance that one should understand the forex trade is no quick get rich scheme and to become rich trading in forex is a skill to be perfected with effort and self-discipline.
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