Is It Possible To Make Money In The Forex Market?
Welcome to a new blog post. This blog post will be about is it even possible to make money trading the Forex markets. Please remember I am not a professional trader and I am not giving financial advice. These blog posts are here to guide and give my own opinion on trading the markets.
Can you really make money Forex trading?
Yes of course! But its far from easy becoming consistently profitable in Forex trading. I heard that it takes on average two years to become a consistently profitable Forex trader. That includes the Wall Street traders, traders mentored from a young age and the new trader coming into the markets for the first time. On average it takes two years. Are you prepared to put years into something and see no return? If you ask most people would they work for 80 hours per week for 2 years and then they are financially free, most of them would say yes of course. So why don’t they do it? The reason people don’t put the time into learning how to trade is that they are only seeing the instant gratification of trading and they want the financial rewards now.
Now that so many people can trade the markets, the average trader is now your average person looking to earn some extra money or replace their income. Most trades that I have spoken to start their journey on becoming a trader so that they can become free of the 9 to 5 and travel the world. This is the reason I entered the world of trading as well. Being able to trade and having the power to take control of how you make money is a beautiful thing. If you put enough time in trading to learn how to trade for yourself, without signals it can be an amazing life where you can live the life you want. The average person might not be able to do this straight away but you build up to that. Start with a small amount in your account and build upon what you have. Over time the account will start to become a good size where you can live off trading by itself and replace your income. This is also a reason why many people buy courses and get scammed online. Showing someone their dream and showing how they came from nothing and learned this strategy that made them a multi-millionaire now. Trading is beautiful and a monster at the same time. The markets are manipulated by the bigger banks and institutional traders make a massive amount of money trading hundreds of millions. Especially on the higher liquidity markets, banks can manipulate the price to make sure they can enter the markets at a better price. If you want to learn more about his method of trading you can search the stop loss method in Google or YouTube and find information. I would search for common terms if you are looking to get started in Forex trading. Some of the common terms I would search would be Forex factory, forex capital markets, forex rates, forex bank, forex news trading, forex exchange, forex calendar and finally currency pair.
The best definition of a trader I have found- “A crazy person who risks his or her own money for freedom rather than exchanging their freedom for money” I'm not sure who said this but I 100% agree with it. I'm not too sure about the crazy part but I know that to begin trading you’re definitely not thinking the way everyone else does. Trading is something most people think is gambling and does not work. Most people do not know what they are talking about and you need to make sure you never listen to these people. Even inside the trading community, most traders lose money and do not understand what it takes to be a consistently profitable trader. Your friends, family and random strangers might tell you that you’re wasting your time trading but you need to stay focused and learn. I hope that soon, you will be able to show those people that doubted you, that you made it. The majority of traders I know the definition of a trader is very similar to the one I presented earlier. For me, this clarified why I started trading and why many traders start risking their own money to get that elusive freedom from working a job. Trading has been something that ever since I found it and learned how amazing it can be, I have been obsessed with learning and improving myself. Trading has forced me to get better and even if I lost and lost, it forced me to get better. Improve my discipline, free my mind to think about the world differently, break away from retail thinking.
The facts are that most lose money in the markets and give up. Something I always think about when I'm ready to quit is a saying that goes something like this. If you don't build your dream, someone will hire you to help build theirs. If you really want to trade. Never give up. It will be hard and you will want to quit if you are doing this alone. Trading is something that can enable you to have the life you want but It’s important to have the right perspective when coming into the markets for the first time and not giving up if things go wrong. Learn from the mistakes and keep going. The markets are random and the reason some people make money and some fail to keep their money at all is money management and psychology. Even though you can make money easily in the markets, you can easily lose it all. Gambling nowadays is everywhere in society, from TV adverts, billboards, phone adverts and more. Gambling has given people an easy way to put money into an account and have the potential of making double or triple their money within a day. The same thing that attracts people to the markets. Short term gains and the temptation of quick gains easily tempt people into trading their hard-earned money. Trading is something that takes time and a massive amount of self-reflection. The reason people lose money is mainly down to a select few reasons. One of those reasons is system hopping and that’s what I personally thought was the issue with my trading success in the early days. I now understand that the reason I was losing money was due to psychology and greed. Another reason people lose money is patience and understanding that trading is not getting rich quick. If you come into the markets thinking you can make consistent money straight away, you would not take time to learn anything and when you lose your money, you would just quit. I hope to see more and more people get into trading and understand that even though it takes time to learn, you can trade profitably as well.
A great video on trading expectations and what a new trader should be looking at when starting to trade is a video by Jason Graystone. He creates great educational on Youtube for traders around the world. When I started trading he was one of the first traders I listened to and he really grounded me and made me focus for the long-term.
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Thank you for your time and I hope to see you in the next blog post.