Forex Tree Dude
So many people want to jump right into the deep end when they begin Forex trading. I know I did. What you need to do, however hard it may be, is force yourself to start small. Be careful. Plan each step of your journey carefully before you put any of your hard earned and harder parted with money into Forex. If I had just listened to this advice when I started…well, you might not be reading this today!
What kind of money do you think it takes to open a forex account? Fifty bucks? Five hundred? Five thousand? Believe it or not, you can open a Forex account with as little $0.00 bucks, but for the purposes of this example, let’s say that you saved up five hundred dollars for your first Forex investment. How does that first five hundred help you to make money?
With a process I call “reversed interest, compounded, with payments” you can start turning a profit with your first Forex investment.
What the heck is “reversed interest, compounded, with payments”? Let me explain:
Reversed interest: Reversed interest is the amount of interest that you will make off of an account. If you keep an account–pretty much any account–in good standing, the financial institution that holds that account will add money to your account in the form of interest.
For example: Let’s say you open an account with a 5% monthly interest rate on all accounts kept above one hundred dollars. 5% of a hundred dollars is $5. So, let’s say in your first month, you have one hundred dollars. The bank adds $5 to your account–for free. You just made $5! On month two, you have two hundred dollars in your account. The bank adds in $10. In two months you’ve made a $15 profit on your account!
I name these interest payments “reversed” because it is rare that the account holder is paid interest instead of being charged interest.
Compounded: This is the sweet part of Forex trading. The more you have in your account, the more you are given in your “reversed interest” every month. The “reversed interest” you earn is based upon how much money is in your account at the time the interest payment is calculated. If you keep adding money to your forex account, your interest payments (aka FREE MONEY) will get bigger and bigger, without your having to do much work at all!
With Payments: Where do these payments come from?
The easiest way to get these payments is to make payments into your Forex account. Where do you find the money to do this? The easiest way is to tap into the payments you make to yourself each month: your 10%.
Figure out how much of your Income you need to pay your bills, buy food and take your spouse out to a nice dinner and then put the rest into your Forex account. Not only are you paying yourself by doing this, which is the goal of that 10%, your Forex account is paying you as well–simply for saving your money.
The nice thing about this system is that, with forex, your interest payments earn interest!
Imagine making these payments into your Forex account regularly for six months. At the end of six months, what do you think you will see? Remember that there is no magic number: what you can afford to pay into your account will be different than what somebody else can afford. One thing is for sure: if you keep at it, the amount of money you can make through interest alone is astronomical!
Getting started with Forex can be tricky, especially if you are the type to leap before you look, like me. I talk more about this and other Forex issues on my blog (http://www.forextreedude.com). Be patient, I’m still in the start up phases of this project, but it is one that I believe in!
Look for my next post at the Geek knows, One of Casey’s fellow bloggers!
You will see more from me here with some of my more popular trades.
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