This article is all about FOREX trading making you rich – and we’ll offer some alternatives to conventional investment wisdom. Why? – Because most FOREX traders follow the norm and make average profits – this article is all about making spectacular profits from FOREX Trading and making money fast!
Here, we will assume that you know how to trade and have a methodology for FOREX trading that you are comfortable with and can apply with discipline.
What we will show you here is how to change your system from making average gains to making spectacular gains with simple changes in trade selection, money management, and mindset.
FOREX trading offers the opportunity to make money fast – so let’s see how this can be done.
1. Accept Volatility and Risk with Joy
All good FOREX trading systems involve volatility.
You cannot have a profitable FOREX trading method without taking calculated risks and making losses – if you cannot accept risk, don’t trade it.
Many traders walk away from a market because it is too risky – but risk also means reward! If you are a trader who doesn’t like volatility, go and find something else to do.
Drawdowns are part of trading; it is the volatile markets that make FOREX trading fun and highly profitable.
For the well-informed FOREX trader, a drawdown is not something to fear, but something to enjoy.
Remember volatility = great opportunity!
2. Trade Infrequently
Many traders trade frequently and like to always be in the market. They think that if they are not in the market in FOREX trading they will miss a move or make money by trading more often – wrong!
The big moves in FOREX trading come a few times a year, with the best risk to reward, and you should trade infrequently.
Focus on the trades that deliver big gains
3. Do Not Diversify
Diversification is an accepted wisdom in Forex trading, believed by most traders, but it won’t make you money fast – quite the opposite.
4. Money Management
You might think we’ve been a bit hasty so far, but that’s not the case.
We’re focusing on the BIG opportunities that allow us to make meaningful gains, and that’s actually where money management becomes so important.
If you are taking the risk, you need to control it – risk up to 10% per trade, but here’s how to increase your chances of success:
1. Buying options at or in the money to give you staying power – and prevent you from being stopped.
Many traders lose not because they were wrong in the market direction – but simply because they were stopped out by a volatile counter-move – and options will give you staying power.
2. Many traders start chasing their stops to close, then they get stopped out – but the trade continues to make spectacular gains. Don’t fall into this trap – keep your stop in its original position – until the move becomes thoroughly profitable, before moving it up.
You want to make money fast and you trade selectively – so dare to enter a trade when it looks good – and milk it for all it’s worth.
5. Understand the Power of Compound Growth
The way to make money fast in FOREX trading is to understand the power of compound growth. For example, if you aim for 50% per year in your trading, you can grow an initial $20,000 account to over a million dollars in less than 10 years.