Can You Get Rich By Trading Forex?
Can You Get Rich By Trading Forex?
I get this question at least ten times a month if not more, especially from those looking to trade (for profit) in the financial markets. I’ve been trading for about 15 years, and I can tell you with 100% certainty that there is absolutely no way to make money (or even break-even on average) trading forex unless you are a pro trader and have done the work and have the screen time.
The reason is very basic: You’re playing against other people’s money – not your own, so that makes it impossible to be profitable given the averages of everyone else on the floor.
You can gain up to 1% on an average day trading (in USD), but that comes down to a lucky month (and in many cases, you’ll have the same amount of days where you made money compared to where you lost money). The average is NOT going to make you rich – and in fact, if your account is under $100K, due to the way margin works, the margin calls everyday will push it out of the red zone a lot.
Can you make money trading forex? Sure if you work hard at it, dedicate more time (and more money than it’ll probably take) to it, and most importantly, have a process in place to trade – but even then, the results are so random that I’d rather focus on other things.
There are endless systems out there for forex (all of which I’ve tried to some degree or another) – all of which have varying degrees of success. The truth is just like any other thing in life, How bad do you want it. My wife at one point said I was crazy for the amount of time I spent looking at charts.
Now if you look at guys like Paul Tudor Jones, George Soros, These guys are very rare. But with that being said, what defines rich? I know a guy who has no debt, and makes 30k a year and in his mind he believes he is rich. And I know of another trader I call X, He makes well over 1 Million a year.
I have said it over and over in this blog, You do the work and put in the screen time and find constancy, Then yes I do believe a guy or gal can become rich. Depending on what that definition is for you of course. 97% of the traders out there do not make money though, and the odds are against you right away.
Everyone’s different in their motivation, and everyone has different goals. Some people are just traders, some people are just looking for something to do that they can control. If you are reading this, I’d bet it is the second one.
Also I look at the markets like this, I see folks in the store week in and week out that play Lotto, and scratch tickets. My question to you is this. Why do you think these folks play these week in and week out? Simple they want what most of us want, Freedom to do what you want in this world. So what is the difference? trading, starting a business etc. They do it for the freedom in the end right?
The question you need to ask yourself is why do you want to be a trader? Why are you here? Do you love and have a passion for the markets? If not and you just want the cash, then this more than likely is not for you. Over and over I keep saying, find what it is that you want to do with your life and do that.
I hope this article sheds some truth to all the trash that is out there on this exact subject, can you get rich in forex? Find your passion in this world and do that, If it is forex then great. I write this blog to help with the learning curve for new traders out there and hope you have found this to help.
David Is A Sixteen Year Veteran In The Forex World. He Gives His Advice On What Works And What Does Not.