Last year my friend’s daughter went through a tough emotional time. She had recently lost a loved one and wanted to meet her favorite recording artist more than anything. Has been dreaming about it for years, and with her recent bereavement, this was the only thing she could imagine would ease her mind.
Unfortunately, when he finally came to perform in her town, a meet and greet VIP ticket cost way more than she and her family could afford.
If that wasn’t bad enough, the next day, this artist was photographed spending time with a child because a fan had written him a heartfelt email about how much her little brother (the child mentioned above) loved the music this artist made. It didn’t cost anything: just a touching email and a PR person to book the photographer.
The heroine of our story then turned to the artist on Twitter, saying that she’s not a great writer of heartfelt emails and can’t afford the VIP ticket and asked the artist what she can do to feel life is a bit fairer.
The artist responded very diplomatically, but the gist of his response was: money makes the world go round.
And he is correct. People in western society could tolerate living in tremendous debt without caring much about it, except the lack is felt in every walk of life—the lack of comfort, the lack of opportunity, the lack of resources. So “getting rich” is probably in the top 3 of most peoples’ wishlist.
Will you get rich trading Forex?
When considering getting into the world of Forex, this question is probably the first one to come up. I’m going to give you my honest unequivocal answer to it. Will you get rich trading Forex? The answer to that is… ready? MAYBE.
By the way, this would be my answer to any question that starts with “will I get rich…” Think about it. “Will I get rich if I join a rock group?” Your group might become the new kings of rock, grow world-famous, and make millions. They might also end up breaking up and making no money. So, maybe. “Will I get rich robbing a bank?” You might get away with the money and never be caught. You might be captured before you even leave the bank. So, maybe.
Forex trading is the same as everything else in life, except for one way in which it’s unique: it contains within it the chance of legally acquiring vast wealth. With this chance, there must always be the knowledge that it is not easy to come by and that everybody loses. Even the wealthiest, most experienced traders sometimes lose while trading Forex.
Yes, this is what everyone wants to know. But what you should ask is not “hot to get rich trading Forex,” but “who is getting rich Trading Forex.” Finding common ground between the ones who have achieved this goal is the best way to find your way to reach it yourself. Whether intentionally or otherwise, these success stories paved the way for everyone who stayed behind to achieve similar success through emulation.
The success stories
Success happens, but how often? The generalistic description of those who achieve success in Forex is either someone who was already wealthy – such as a hedge fund with plenty of resources or someone very experienced and skilled at Forex Trading. That doesn’t mean you won’t get rich. You might develop that unique strategy that wins the day or make a transaction that gets extra lucky and get the windfall we all dream of getting.
The most skilled traders would have a strategy based on a finite number of investments, keeping losses at a minimum, with the occasional massive gain all made by quick transactions. Green traders might choose to try to earn small amounts on a large number of smaller investments, causing them to hold off on selling until the asset is on the rise, which often results in more significant losses.
What you actually need
These success stories have a few predominant traits which become clear upon examination and can be applied to most of them.
- Trading strategy: the skilled traders build a strategy based on investing in a select few assets and getting out quickly. This method keeps their losses low, and whenever the investment is successful, it’s big enough to offset the losses. A mistake many inexperienced traders make is investing small sums in a broad array of assets and waiting for them to go up. Eventually, they hold them so long that the losses become massive. Check last updates about forex market here.
- Malfunction immunity: Systems and platforms can malfunction at the worst of times, leading to massive losses, even take out entire brokerages. Traders with deeper pockets can survive to trade another day. The point here is: never invest more than you can afford to lose.
- Information staff: Wealthy traders have staffers. One of the things this staff does is stay up-to-date on the world of trade on a minute-by-minute basis, giving them a serious edge on people who don’t have the time or energy to do this type of research.
- Volatility immunity: Forex is a very volatile business. A severe drop can create massive losses and can be just as common as a system malfunction. This is another example of why it’s so essential to be liquid beyond your investment.
- Unregulated market immunity: Forex is an unregulated field, which comes with a counterparty risk, which means one of the parties involved in a transaction fails to live up to their end of the bargain. The parties in the transaction being human makes this a universal possibility for consideration.
- Fraud: I’m not saying you should try to manipulate the market. I’m saying that fraud happens in the field of Forex, thanks to the lack of regulation and that the larger the trader, the more manipulation force they have. In 2015 four large banks were fined over $10 billion for attempts to manipulate the exchange rate. Not suggesting you should try fraud or that there are many fraud attempts, but be aware of it and pay attention to what happens to your money.
The Not-Failure stories
Very few people get rich in Forex trading. So should the average person avoid it altogether?
Did you know that approximately 65% finish their year at a net loss? That means around 35% either break even or complete the year with a net gain. These are much better odds than most people are aware of. There is a wide gap between making a profit and getting rich. It is in that gap that many average traders operate.
Your takeaway
So what have we learned? Firstly, we learned that people could undoubtedly get rich trading Forex. They have before, and they will again. Secondly, we learned that the best way to build a winning strategy that doesn’t have to rely on luck is to examine common traits between success stories and try to implement them.
Finally, we learned that there is also a possibility of making a profit and being successful without being wealthy. Returning the example of my friend’s family from the start of this article – they would have been happy with a comfortable life and a show ticket. They don’t need a private island, and neither do most people. I hope this article helps you come at least a little closer to your life goals.
