Can i be rich trading forex
It is also important to mention that one has to maintain risk using SL, stocks amount, trading several stocks, etc. Additionally, there could be stocks, having potential, but unavailable in the trading platform. There also are fundamentals, causing a sound stock to go in opposite direction. To sum it up, I prefer to trade forex, using stocks as a secondary market. Thank you for your comment: Forex is a much better market — in my experience — to achieve long term profitability due to the fact that it is easier to exploit inefficiencies, trading costs are lower and minimum capital requirements are lower.
Thanks again for your comment! It is better to say simply that it is a hard skill to acquire that cannot be taught without personal experience. I absolutely agree that stocks are a quicker and easier way to build wealth than Forex.
I find trends much easier to identify in stocks and they last longer than in Forex. One of my favorite quotes is: With stocks, wealth is literally being created out of nothing, and all you have to do is find the right stock at the right time. With Forex, your not winning unless someone else is loosing, not unlike Futures and Options which are also a zero sum game. Apply those 2 filters and the winners rise right to the top! Thank you for your email: I also find it much easier to exploit mechanical inefficiencies in forex perhaps due to the lower cost or the fact that I simply now this market better and I believe that the average compounded yearly returns you can get in forex when you do have a long term edge are bigger than those you can expect from stocks when attempting to do the same thing.
You are also very right about your trading rules. As a matter of fact there are several academic studies regarding mechanical systems on stocks involving those exact same rules. In fact a study published in and revised to add data in shows that you can just buy stocks at all time highs with a 10x 20 day ATR trailing stop and achieve an average return bigger than that of the market.
I completely agree with you, stock is the best way of making money beside real estate. Forex in particular seems to have a certain mystique about it.
The major currencies are highly liquid, there is often a good amount of volatility, and the retail brokers will let you trade with large amounts of leverage. It can also be enticing because rather than having to look at boring company reports and exotic financial ratios, you can read about how the economy is doing and make guesses on where economic policy is going to go. Of course they do. People can get rich from anything.
People can get rich from winning the lottery or from betting on horse racing. Some people trade forex for a few months and double or triple their money. Does this mean that they will become rich? In fact if they are making money very quickly then it is extremely likely that they will lose it all even quicker. Trying to become rich from doing a few trades in forex over a short period of time will not make you successful as pretty much the only way you can achieve very high percentage wins is by taking unmanageable risks.
If you are taking unmanageable risks then the one thing which is almost certain is that you will get burnt — and probably badly. There is even a big chance that you will lose a lot more than you put in.
If you look at the forex bulletin boards then you can find many sorry accounts from people who make a large amount of money very quickly but then lost it all in a fraction of the time. Did they become rich? Remember that as forex is a game of currency pairs, for one currency to go up, the opposing currency must go down.
This means that where people are making money, others are losing money. This is very different to trading in stocks and shares where it is possible for all the shares to go up in value at the same time if the economy is doing great, and for them all to go down at the same time if some major economic upset occurs.
These questions are probably familiar to you:. You probably notice a theme to all these questions: Forex can make you money. It can make you a lot of money, but it will not happen fast. I am sure you already know that Forex is not a get rich quick scheme.
Many people out there spout that line. And as with any career it can take a long time to master Forex. So, if you are considering Forex you need to ask yourself two simple questions:. I have been trading for nine years now and I have yet to meet anybody who has gotten rich fast in Forex. I am not saying that it is impossible. What I am saying is that the vast majority of successful traders get rich slowly.
Becoming a successful Forex trader breaks down into five steps:. Most new traders want to jump from step one to step five in the space of a few months. Realistically, you will have to go through each step to succeed and it will take you some time. So I am sorry to be the one to tell you this but Forex is very much a get rich slowly game. Well the fact is that most people do not get rich quick in any career or business.
So giving up on Forex because it will take you time to achieve success is silly. I personally feel that the best thing about Forex is the freedom it provides. Unlike most careers, once you become consistently profitable in Forex you can scale back your chart time. Over the past two months, I set up a stop watch and timed the total amount of time I spend trading per week.
I found that on average I spend six hours per week trading. Compare that against the hour work day most people are forced to do these days. Forex is the obvious winner. Forex certainly does have a lot of benefits and it can turn your life around. However, please do not fall into the trap of thinking that you will be rich within six months.
Click here to cancel reply. Email will not be published required. It is very much in the beta stage right now. You are still on the old Super VIP system. Always refreshing advice from an experienced trader. Thanks Nick ur method have been life saving for me. You do not have to have excessive cash in order to succeed. What you need is know someone who has blown theirs risking too much any any amount.
What has the purchase date got to do with anything? I see what your saying but the logic is quite simple and is commonly used by software and web application designers. The new web application that allows users to view the course is currently in the beta stage. The fact that it is new means that it can have a lot of bugs.
I am only allowing a small group of people to access it at the moment so they can give me their feedback and I can fix bugs. If I give access to over one thousand people I will receive hundreds of bug report emails weekly. As with most new software or web apps we are currently beta testing so it is not publicly available.
Top notch post Nick! I still remember starting out and thinking how fast I was going to make money. Until I started losing it of course. I would like to say to the younger croud that I hope you fully understand how lucky you are.
Take the following to heart!!! Oh; for you smarty pants that think at 50 we have to take it slow; just 3 years ago I smoked a local highschool sprinter in the Never underestimate old peoples o:. I spent the last 2 weeks contemplating if I should continue. Then I lost it ALL! Very scared of loosing any more but this is my chosen career.
I will start over but take it slow. This is my first time that I will post here as I feel that what Nick said is important. I want to share with everyone a trading story and why it is better to wait for your trades.
Many years ago when I was young and naive and living on Long Island I used to pass by a brokerage firm in Bay Shore on my way to the marina. The brokers would leave the door open and you can see the ticket tape. This how I got interested in trading. Back then I had no idea what the numbers and letters represented. One day out of curiosity I was standing outside the door looking at that ticket tape and one of the brokers invited me in.
He told me have a sit and enjoy the show. Sitting a few sit from me was this old man. Anyway, as I was sitting there this old man got up and started yelling. I still remember the words as it startled me. So did everyone else in the room. It was a long time ago. At the time I did not know what that meant. The broker picked up his phone and said something like buy 50 something something.
I could not hear him but now I know that is what it was. The old man sat back down at his chair. I had no idea what just happen. Who the hell was gay in that movie? I went to talked to the broker that invited me in asked him about the crazy old man.
He told me he comes here a couple of time a month and trade the meats. He told me just sit down and watch him again in about an hour.