Well, it depends on a lot of factors. You should know one thing though — making consistent profits as a retail forex trader is very difficult, let alone becoming a millionaire.
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In fact, a great majority of retail traders lose all their money. However, a few traders, like George Soros, Stanley Druckenmiller, Bill Lipschutz, and some others, have actually amassed great wealth trading Forex and other financial markets. If they can do it, you too can, but it requires years of hard work, dedication, patience, and discipline. You will need to build a profitable strategy, have enough funds, and be mentally ready for the emotional battle. If you approach the market looking to make quick and easy money, you will be in trouble.
You must be willing to learn the skills and put in the hard work if you are to become the trader you want to be. In this post, we will discuss the things you must do to succeed in forex trading and the practical steps to take in building wealth from the market. There too much dishonest content on social media meant to promote forex trading as a very easy way of making money — where any person can amass an incredible amount of money by just clicking the buy or sell button.
You would see images of young people with ocean-front mansions and the latest Bugattis and Bentleys claiming to have made all that money trading forex for a few weeks or months. That is outrageously deceptive. You should never fall for it. Remember, if it is too good to be true, it is obviously not true. It is becoming very common these days.
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There is also another group whose favorite product use to be binary options. I was intrigued and continued trading, doubling my stake size with each trade. With the advent of cryptocurrencies, the game has been with ICOs initial coin offers. Forex trading is the hardest way to make easy money. While it is possible to become a millionaire trading the forex market, it is very difficult — more like swimming in a shark-infested ocean. You are battling the central banks, the big commercial banks, investment and hedge funds, other retail traders, and most importantly, your broker.
The forex market has no central regulation, so it is more like a jungle where only the fittest survive. Being a retail trader, you are at the lowest level of the food chain, and everything is organized in such a way as to collect from you rather than you making money. You are in a fight with everyone else, including your broker, especially if you happen to be using any of those dishonest brokers or dealing desk brokers in general. But in spite of all those apparent difficulties, you can make money from the forex market if you focus on doing it the right way.
To win the battle, you must be smart enough to survive first. Thus, survival should be your watchword.
Take your mind away from making all the millions in the market. In this game, money is only a by-product of doing things right. It is only when you survive long enough that you would begin to understand how to play the game and start making money.
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Trading is an art that you can only learn through consistent practice. You can master it and possibly make a lot of money from it, but you must be ready to put in the hard work and have the mind to stomach the heartbreaks. There would be many ups and downs, but if you are determined and passionate enough to carry on when the going gets tough, you are likely to achieve your goals because many people have done it before you. If they can do it, you too, with the right effort and guidance, can do it.
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Breaking down the process of making money from forex, you will see that becoming a millionaire is something achievable if you get it right and allow your money to grow. Read on to learn what you need to do to stand a chance! You stand a good chance of achieving that if you can do the following:.
The primary thing in becoming successful in any career is to learn the necessary skills required to thrive in that career — a lawyer must learn how to argue with facts, a doctor must learn to diagnose and treat diseases, and so on. In the same way, if you want to be successful in forex trading, you need to put in the hard work and acquire the skills. Talking about the skills for forex trading, it is a lot of work because there are many aspects of the game that you need to master.
As a newbie, you would start by learning the trading terminologies and how to use the trading platforms, which are the basics. From there, you step up to learning how to analyze price charts and interpret price movements, both directly with the raw price data or indirectly with the help of the various indicators. This is what traders refer to as technical analysis. In addition to that, you also need to learn the basics of fundamental analysis — interpreting economic data and the potential effects of political news and events. You then use all those to create a few reliable trading strategies.
The next is to learn how to manage your trading capital and the amount you risk in a trade, as well as how you manage your trades in such a way that you do not risk more than you intend. You achieve this by knowing the amount you want to risk in the first place, placing the right trade size, and using a hard stop loss to make sure that your risk remains as you intended. This is known as money and risk management. But the ultimate trading skill is developing your mind to think and act like a trader.
This means focusing on the process, instead of the outcome, because you know that the outcome of each specific trade does not matter.
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With this reality, it becomes clear that your emotions, such as excitement, fear, anger, hope, and greed, can work against you, so you have to tame them. This is known as trading psychology, and you will keep learning it all through your trading life. While you can teach yourself all those skills, it pays to learn them from an expert by enrolling in a paid trading course, like the one offered by Pro Trading School.
In forex trading, as with any other business, you need money to make money. Hence, having a good and reliable source of income is extremely important, and there are many reasons for that, such as the ones we will discuss shortly. As an adult, you have to feed, clothe, pay your rent and utility bills, and take care of other miscellaneous expenses. All these require money, and within the first few months of your trading journey, you will most likely not be making enough money from forex, if at all you would have made any, to take care of them with your trading profits.
So, a source of income is very vital for your survival at that stage. And even when you start seeing big and regular profits, you still need another source of income to take care of your needs if you want to grow your account and become a millionaire one day. The more profits you make and retain on a regular basis, the shorter the time it would take you to become a millionaire.
True is that they prefer you to lose your money. As soon as possible! Contrary, if you follow the correct way for a few years they will not see any considerable profit from you. Over the route of several years, you will be the one taking the true profits! They create a virtual market for y ou and from time to time let you trade and they make money when you lose.
Their interest is to make you lose as soon as possible, then they try to motivate you to add more funds to your account and lose your funds more and more. If you really want to be a millionaire in the forex market forget about making money on the easy and fast way. Such thing like cold cash in the forex market does not exist. You will need time to learn how to trade forex. You will have to learn about money management. Actually, you should start trading on a demo account. People trade to make money in forex but forex trading is not like making money. You must understand the way of making money with the positions you are opening and the reasons behind it.
Trade for 2 or 3 months on a demo account. If you make success on a demo account, you can open a real account and start real trading. Or something else you are doing wrong. After you see the mistake you can correct it and after that restart trading on a demo account until you get recurring success. It is right to say that the Forex market is only for risk takers. But only if you get the right guidance through the right adviser or build up your own knowledge to start trading with high precision. If you are new to trading you can start with the small investment.
And you have to keep revising your risk on the higher side to earn more. This can be the right approach.