This article is about Forex trading to make you rich and we’re going to give some alternatives to conventional investment wisdom. Why, because most traders in Forex follow the norm and make average gains and/or lose money.
What we are going to show you here, is how to change your system from making average gains and/or losing money, to making spectacular gains, with simple changes in trade selection, money management, and mindset.
Forex trading offers the opportunity to make money fast, so let’s see how it can be done.
1. Accept The Risk & Volatility
All good Forex traders incorporate volatility into their trading.
You can’t profit in trading foreign currencies on the Forex, without taking calculated risks.
Many traders back away from a market because it is too risky for them. Not everyone is comfortable trading volatile foreign currencies. For those who are comfortable taking large risks, for large possible rewards, the possible profits can be astronomical.
Drawdowns are part of trading. It’s the highly volatile market that makes Forex trading so fun and potentially highly profitable.
To well-informed Forex traders, a draw down is not something to fear, but something to possibly profit from.
Volatility is what creates big potential opportunities, and big potential profits.
2. Trade Infrequently
Many traders trade frequently and always like to be in the market. They think that in FOREX trading if they are not in the market, they will miss a move, or that by trading more frequently, they will make money – wrong!
The big moves in Forex trading, with the best risk to reward, come a few times a year, and you should trade infrequently.
Focus on the trades that make the really big gains
3. Don’t Diversify
Diversification is an accepted wisdom, believed by most investors in Forex trading, but it won’t make you money fast, – it will do the exact opposite.
4. Money Management
So far, you may think that we are being a little rash, but this is not the case.
We are focusing on the big opportunities that allow us to make meaningful gains, and this is where money management becomes so important.
If you are taking a big risk, for a big reward, make sure you try to put in as many safeguards as possible, so that the position doesn’t move against beyond the point you are comfortable with/can afford.
Buying options at or in the money, to give you staying power, and prevent yourself from getting stopped out.
Many traders lose, not because they were wrong in market direction, but because they were stopped out by a volatile counter move, and options will give you staying power.
Many traders start trailing their stops to close, they then get stopped out, but the trade runs on to make spectacular gains. Don’t fall into this trap, keep your stop in its original position, until the move is well in profit, before moving it up.
You’re looking to make money fast, and you’re trading selectively, so have the guts to go for a trade when it looks good, and milk it for all it’s worth.
5. Understand the Power of Compound Growth
In Forex trading the way to make money fast, is to understand the power of compound growth. For example, if you target 50% a year in your trading, you can grow an initial $20,000 account, to over $1,000,000, in under 10 years.
“The bust creates the buy in opportunity, and the boom creates the fortune.” Michael “MJ The Terrible” Johnson – Founder & Owner – Masters of Money, LLC.
Forex: Frequently Asked Questions – https://www.mastersofmoney.com/forexfrequentlyaskedquestions/
Risk disclosure: *All investments involve risk. Before making any financial or investment decisions, we highly advise that you seek the advice of a properly licensed and trained investment professional.