It is often a good idea to think of forex trading in a similar way you would think about other types of investments. The ultimate goal is to make better than average returns on your money in the LONG TERM.
Many new traders get caught up in the advertisements enticing them into the “biggest financial market in the world” and “200 to 1 leverage” etc and lose focus of this very important viewpoint of making better than average returns in the LONG TERM.
Clearly there is no point taking the time to learn to trade forex if you are happy with average returns as these can be achieved elseware in a relatively passive setup. For example mutual funds. These allow you to invest your money with a degree of risk in hope of gaining more than the risk free interest rate offered by your bank.
Forex Investing does give the trader the opportunity to benefit from above average returns in the long term. However, it does take a lot of hard work and discipline to get there. Most traders give up because they learn it is a lot more difficult than they first anticipated or they don’t have the desire to put the required amount of time and effort into learning to trade effectively.
So far, I have made an empercis on thinking long term. This is very important because a single trading day or week should have little effect on your overall results in the long term. Your trading account will inevitably fluctuate on a daily basis, unless of course you are not trading!
The big secret of forex investing is the power of compounding.
The power of compound is what really delivers the opportunity of wealth. Warren Buffet is currently the richest man in the world. This is because his investments have made him an average of over 20% per year for decades. 20% per year is achievable with forex trading.
There are many forex information sites out there offering all kinds of strategies, it has always been my view that you are best learning to trade and saving your hard earned money on your trading rather than spending it on any forex related services.
Many new traders get caught up in the advertisements enticing them into the “biggest financial market in the world” and “200 to 1 leverage” etc and lose focus of this very important viewpoint of making better than average returns in the LONG TERM.
Clearly there is no point taking the time to learn to trade forex if you are happy with average returns as these can be achieved elseware in a relatively passive setup. For example mutual funds. These allow you to invest your money with a degree of risk in hope of gaining more than the risk free interest rate offered by your bank.
Forex Investing does give the trader the opportunity to benefit from above average returns in the long term. However, it does take a lot of hard work and discipline to get there. Most traders give up because they learn it is a lot more difficult than they first anticipated or they don’t have the desire to put the required amount of time and effort into learning to trade effectively.
So far, I have made an empercis on thinking long term. This is very important because a single trading day or week should have little effect on your overall results in the long term. Your trading account will inevitably fluctuate on a daily basis, unless of course you are not trading!
The big secret of forex investing is the power of compounding.
The power of compound is what really delivers the opportunity of wealth. Warren Buffet is currently the richest man in the world. This is because his investments have made him an average of over 20% per year for decades. 20% per year is achievable with forex trading.
There are many forex information sites out there offering all kinds of strategies, it has always been my view that you are best learning to trade and saving your hard earned money on your trading rather than spending it on any forex related services.
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