Is there a Secret to Forex?
I hear quite often that people have found a “Secret to Forex” or that they are able to be extremely profitable from this “One weird trick”.
I have heard it time and again, but no “trick” that I have ever tested has lived up to its claims (how about you?)
Now, I could talk for a while about why these tricks do not work, but that is another article for another day.
This article is to tell you that, ironically, I believe there IS a secret to Forex. I believe that THIS one weird trick does have the potential to make you rich… The trick is this: Not buying into the tricks.
There is already a large majority of traders trying to “exploit” these tricks in the market and losing money. When we jump on the bandwagon and fall into this idea that we can use a secret to get instantly rich, we just add ourselves to the group that is easy to take advantage of–the DUMB money. We become part of the bundle of people that are simply handing their money over to the few percent that are making money in this game.
By the way, if someone did find a trick to Forex that could make them this insane amount of money, do you think they would be selling it to you for a hundred dollars? I don’t think so.
That is not to say that people selling systems are all frauds, but if someone is telling you that you can double your account every month (or every day in some cases!) you need to RUN.
Staying away from crazy claims and black box systems will save you money by not buying the products AND not losing your money trading with them.
Again, having your accounts traded by automated systems is perfectly fine and can be very profitable for you; but you want them to be automated systems that are based on real, solid strategies and not tricks that try to take advantage of the market and not strategies trying to make 100% a month…
The secret to Forex trading is to stop trying to trick it–You can’t.
If we spent less time trying to find a loophole in the market, and more time studying the markets, doing thorough analysis, and perfecting our money management strategy, I believe we would be a LOT better off.
And I would actually like to take a moment here to ask you to share this article with Facebook, Twitter, LinkedIN or whatever you use (maybe even email) because I think it is really critical for all the struggling traders to understand what I am talking about in this article. So if you don’t mind taking a moment to do so, I would appreciate it! …. Back to the trick you need to know in Forex!
I don’t have a problem with getting rich from trading; I just have a problem when people say it is “easy and quick”. No one that I have ever met has earned enough money to be considered rich, and said it was easy or quick.
Nick from Forex4noobs talks about Getting Rich Slow in one of his articles. He makes some really good points and confirms some of the things I am talking about in this article. One great thing Nick says is that he finds it very silly when people give up on Forex because it takes time and effort, because any career you want to succeed in is going to take tons of time and effort.
My challenge to you is to look at Forex as a career from here on out. It may not be your only source of income, but it still requires you to put the time and effort in to slowly move up the ranks.
Here is the situation I want you to envision: Your Trading Account is your Business, and you, as the individual trader, are a new employee of your business.
Year #1: You make a lot of mistakes. You make a few bucks throughout the year, but overall, you cost the business money.
Year#2: You start working extra hours to really become good at what you are doing. Still mistakes, but less of them. Your wage increases somewhat, and you are basically a break-even asset to the business.
Year#3: Now you have a pretty good idea of what this takes. You spend more time planning and studying so that you can execute better. Of course, compared to the pros in your field, you are considered a rookie, but at least this year you helped your business get over the break-even point by a small margin.
Year#4: This year is going to be your year. You understand what it takes. You have streamlined your process, cut some unnecessary expenses (those would be some foolish/bad trades), and really know how to execute when the time comes. Not being used to succeeding quite this much, you tend to give up some potential gains for your business here and there, but you are definitely helping the business be profitable.
Year#5: You now consider yourself experienced. You been through a lot, and you know how to handle yourself. You are getting to the point where it actually takes you a lot less time than it used to, to make a lot more many than you used to. Of course, now that you have more responsibility, your mistakes will actually cost you more money, but that is okay because your day-to-day successes are making you much more as well.
Year#6 and beyond: You did it! You now are basically on cruise control. You still have a while before you can retire, but things are simple for you and making money is just a process.
If we could think like that ^^, we would be a lot more stable in our trading, don’t you think?
For me, and probably you too, it is hard to focus long term when it comes to Forex, but I understand that real wealth is made using time to its advantage.
For instance, if you are able to double your account every year–instead of every month–imagine the money you would have after a 60 year long career. To give you a hint, If you had a 10 thousand dollar account and doubled your account every year for 60 years, you would be the richest person on earth.
So, allow me to encourage you to focus on the long term. I understand that with finances, we want it right now, and we may even need it right now, but trying to make a living off a small account is a very, very dangerous thing to do.
A small account can grow and provide you with real income eventually, but it needs to be a long term process just like a career in any other field.
Please leave a comment with your thoughts and opinions! And Follow me on Twitter!
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