Forex Mistake #1 – I’m Going To Get Rich

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It is very can i be rich trading forex when you search for the advantages of forex trading to read tons of websites telling you why forex is so much better than stocks and why it represents a much juicier opportunity can i be rich trading forex profits with unprecedented leverage and limitless potential. There are some obvious differences between the forex and stock markets which we all know. For example on the bull market fueled by the dot com bubble there are at least 3 or 4 well known examples of people who took a K capital and turned it into millions dollars within a single year.

During the past 20 years you can in fact find many examples of people who got rich this way trading stocks while in forex this is not the case. The answer is related to the way can i be rich trading forex which the markets develop and the assets they trade. Fluctuations of these values are usually very small and fixed and the profit you can extract from them is limited. For example if you had a 10K account and you had a 1: Now if the can i be rich trading forex went only pips against you, you would get a margin call and lose all your capital.

If you wanted to take that 10K account to can i be rich trading forex million you would need to risk much more and the problem would become even bigger. Now with stocks this is very different since when you trade can i be rich trading forex stock when you buy it you only risk losing all your money if the stock goes to zero and you have unlimited upside potential. Since there are companies that can go from very low values to extremely high trading values in several years it becomes obvious that anyone who catches them when they are small with a large amount of money can truly become a millionaire much quicker than someone trading forex.

If you buy a stock at 50 pennies and then the stock goes to dollars in 2 years you have made in fact times your initial investment, easily taking a 10K investment to 2 million dollars. I have developed a view of the forex market within the past few years can i be rich trading forex a better investment vehicle than stocks. I can trade the forex market successfully using mechanical trading strategies and get an average compounded yearly profit higher than that of the stock market meaning that — in the long term — for me it is better to invest in forex and make returns from inefficiencies within currency pairs than to do the same with stocks.

The forex market gives an opportunity to build robust investments with fewer capital and to remain calm under market crashes something which stock investors simply cannot do because it affects them directly. It is my belief that forex is a better long term investment than stocks from a yield and stability perspective.

To sum it up, the idea that forex is a better market to get a lot of riches quicker is a hollow and unfounded one. If this is your can i be rich trading forex I would look into stocks where there are many documented cases of people who have done exactly this gone from a few thousand to a few million while if your goal was to grow your capital for long term profitability then forex might be a good opportunity with much better and stable long term rewards when compared to stock trading.

I know this sounds like the total inverse of what people usually believe but if you follow my train of thought you will see that it actually makes a lot of sense! If you would like to learn more about forex mechanical trading systems and how you to can design and build your own likely long term profitable systems please consider joining Asirikuy. I hope you enjoyed this article!

I have to admit that trading them is much harder. It is also important to mention that one has to maintain risk using SL, stocks amount, trading several stocks, etc. Additionally, there could be stocks, having potential, but unavailable in the trading platform.

There also are fundamentals, causing can i be rich trading forex sound stock to go in opposite direction. To sum it up, I prefer to trade forex, using stocks as a secondary market. Thank you for your comment: Forex is a much better market — in my experience — to achieve long term profitability due to the fact that it is easier to exploit inefficiencies, trading costs are lower and minimum capital requirements are lower.

Thanks again for your comment! It is better to say simply that it is a hard skill to acquire that cannot be taught without personal experience.

I absolutely agree that stocks are a quicker and easier way to build wealth than Forex. I find trends much easier to identify in stocks and they last longer than in Forex. One of my favorite quotes is: With stocks, wealth is literally being created out of nothing, and all you have to do is find the right stock at the right time. With Forex, your not winning unless someone else is loosing, not unlike Futures and Options which are also a zero sum game.

Apply those 2 filters and the winners rise right to the top! Thank you for your email: I also find it can i be rich trading forex easier to exploit mechanical inefficiencies in forex perhaps can i be rich trading forex to the lower cost or the fact that I simply now this market better and I believe that the average compounded yearly returns you can get in forex when you do have a long term edge are bigger than those you can expect from stocks when attempting to do the same thing.

You are also very right about your trading rules. As a matter of fact there are several academic studies regarding mechanical systems on stocks involving those exact same rules. In fact a study published in and revised to add data in shows that you can just buy stocks at all time highs with a 10x 20 day ATR trailing stop and achieve an average return bigger than that of the market.

I completely agree with you, stock is the best way of making money beside real estate. Good article, However, with limited funds, it will be very hard to really get into some of the more interesting stocks out there. Becuase of my own limited budget i try to find underpriced stocks, or atleast stocks under 1 USD each.

All he needed was to train them for 2 weeks, and 3 years after they started, the group of people i believe it were 16earned a total of million Dollar. I agree with you MKattenberg. With only a small or limited amount of funds it is hard to find a good company to buy shares. I totally agree as you said stocks trading is better idea for short term profits than forex which always keep your heart pumping for any sudden movement in the market.

However, in past I made some amount from stocks trading but at that time I have no facility of live account and knowledge to predict the market trends even with simple averages line. But, I think in case of low price stocks a can i be rich trading forex strategy could be easily applied to win the trade with no loss. Mail will not be published required.

Mechanical Forex Trading in the FX market using mechanical trading strategies. Posted in Articles Tags: October 29, at October 29, at 1: October 29, at 2: March 9, at 7: April 17, at January 27, at January 31, at 9: November 4, at 9: Leave a Reply Click here to cancel reply.

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I have been working hard with the Super VIP guys and it has been taking up a lot of my time. Over the last two weeks I started noting down some of the most common questions newbies in the Super VIP group have asked me.

These questions are probably familiar to you:. You probably notice a theme to all these questions: Forex can make you money. It can make you a lot of money, but it will not happen fast.

I am sure you already know that Forex is not a get rich quick scheme. Many people out there spout that line. And as with any career it can take a long time to master Forex. So, if you are considering Forex you need to ask yourself two simple questions:. I have been trading for nine years now and I have yet to meet anybody who has gotten rich fast in Forex. I am not saying that it is impossible.

What I am saying is that the vast majority of successful traders get rich slowly. Becoming a successful Forex trader breaks down into five steps:. Most new traders want to jump from step one to step five in the space of a few months. Realistically, you will have to go through each step to succeed and it will take you some time. So I am sorry to be the one to tell you this but Forex is very much a get rich slowly game.

Well the fact is that most people do not get rich quick in any career or business. So giving up on Forex because it will take you time to achieve success is silly. I personally feel that the best thing about Forex is the freedom it provides.

Unlike most careers, once you become consistently profitable in Forex you can scale back your chart time. Over the past two months, I set up a stop watch and timed the total amount of time I spend trading per week.

I found that on average I spend six hours per week trading. Compare that against the hour work day most people are forced to do these days. Forex is the obvious winner. Forex certainly does have a lot of benefits and it can turn your life around. However, please do not fall into the trap of thinking that you will be rich within six months. Click here to cancel reply.

Email will not be published required. It is very much in the beta stage right now. You are still on the old Super VIP system. Always refreshing advice from an experienced trader. Thanks Nick ur method have been life saving for me. You do not have to have excessive cash in order to succeed. What you need is know someone who has blown theirs risking too much any any amount. What has the purchase date got to do with anything? I see what your saying but the logic is quite simple and is commonly used by software and web application designers.

The new web application that allows users to view the course is currently in the beta stage. The fact that it is new means that it can have a lot of bugs. I am only allowing a small group of people to access it at the moment so they can give me their feedback and I can fix bugs. If I give access to over one thousand people I will receive hundreds of bug report emails weekly.

As with most new software or web apps we are currently beta testing so it is not publicly available. Top notch post Nick! I still remember starting out and thinking how fast I was going to make money. Until I started losing it of course. I would like to say to the younger croud that I hope you fully understand how lucky you are.

Take the following to heart!!! Oh; for you smarty pants that think at 50 we have to take it slow; just 3 years ago I smoked a local highschool sprinter in the Never underestimate old peoples o:. I spent the last 2 weeks contemplating if I should continue. Then I lost it ALL! Very scared of loosing any more but this is my chosen career.

I will start over but take it slow. This is my first time that I will post here as I feel that what Nick said is important. I want to share with everyone a trading story and why it is better to wait for your trades. Many years ago when I was young and naive and living on Long Island I used to pass by a brokerage firm in Bay Shore on my way to the marina.

The brokers would leave the door open and you can see the ticket tape. This how I got interested in trading. Back then I had no idea what the numbers and letters represented. One day out of curiosity I was standing outside the door looking at that ticket tape and one of the brokers invited me in.

He told me have a sit and enjoy the show. Sitting a few sit from me was this old man. Anyway, as I was sitting there this old man got up and started yelling. I still remember the words as it startled me. So did everyone else in the room. It was a long time ago. At the time I did not know what that meant. The broker picked up his phone and said something like buy 50 something something.

I could not hear him but now I know that is what it was. The old man sat back down at his chair. I had no idea what just happen. Who the hell was gay in that movie? I went to talked to the broker that invited me in asked him about the crazy old man. He told me he comes here a couple of time a month and trade the meats.

He told me just sit down and watch him again in about an hour. So I sat there, watching all those numbers on that ticket, still confuse but more intrigue then before. About an hour and a half later as I watched the ticket tape the old man did it again.

Then old man then leave. Everyone in the room just watch him leave. I went to talked to the broker that invited me in. He told the story about this old man. He said a couple of times a month this old man comes in and buys the meats at the CME.

Mostly he trades the bellies. He only trades 50 lots and always go for half a point or more depending on the time of day. I had no idea what this man was talking about but he told me that this old man makes a nice living doing this.

Later, as I got older I realize what this old man was doing. If my theory is correct, this old man would trade off of the meat and agriculture reports and buys after the selling stop. He would wait for the trade to COME to him. This is important what I am saying. This old man only traded a couple of time a month. Lets do the math. He trade 50 lots. Multiply that by what, 50 lots. How much is that? Nick only trades about 6 hours a week and is making a living. I hope you all enjoy this story.

BTW, last year issue of Traders magazine they have their annual top traders. He only trades a couple of times a month and takes the rest of the month off. How would you like to have that job?