How Is That Possible?
You may or may not agree with me that there is a risk in everything. You take a risk even when you drink a glass of water. You take a risk when you go to school. You have to risk your time and money, and chances are what you learn in school never help you to make a living or never make any money for you in future. Then you will have to take another risk, go to school again and learn something new, or run a business. There are risks in everything you do, and trading, either currencies or stocks, is not an exception.
The good news is that you can think carefully, decided and plan wisely, and limit your risks and maximize your benefits as much as possible.
You can do the same in Forex trading. Some people think in order to become a profitable Forex trader they have to spend and lose some money. This is not true. You can become a profitable Forex trader without losing any money. You can become a profitable Forex trader, risk-free.
Someone defined risk as doing something you didn’t learn. If you can swim, jumping into a pool might not be a big deal, but if you cannot swim, it is risky to jump into a pool. One way is that you start from the basics, learn a trading system, and practice on a demo account to master the system. To save you some time, enroll for our professional Forex course.
When you learn the basics and master your trading system through demo trading, you can open a live account and start trading with real money. That is the time that you can lose your hard earned money. Although you have already mastered your trading system, still you need to pass some other stages to become able to repeat your success with real money. There is a very simple and easy way to start trading with real money almost without risking any money. It becomes 100% risk-free after some time:
You can open a live account with the smallest possible balance. You have to open this live account with the money that you can afford to lose. This can be different from trader to trader. While $1000 is the money that a trader cannot afford to lose, another trader can start with a $10,000 account without any problems. Your live account initial balance has to be determined in a way that you can trade with it 100% emotion free, the way you have been trading with your demo accounts.
So, you open such a live account and start trading. You have to treat it exactly as your demo account. You have to trade patiently till you double the initial balance. If so, you can withdraw the principal and keep on trading with the profit. Therefore, you will not be trading with your hard earned money anymore and trading becomes risk-free for you after this stage. For example, if you have started with a $5000 account, turn it into $10,000 and then withdraw $5000. Then keep on trading with the residual balance ($5000).
This is how you can become a profitable Forex trader with the minimum possible risk or even risk-free
Chances are your inner demon makes you think that it takes a long time to grow a small account, and so, you’d better start with a bigger account to save time and become wealthy faster.
This is a big mistake. Be aware of it when it starts whispering in your ears to make you open a big live account.
If you open a $5000 account and make 25% profit per month, you will have a $15,407,439.56 account after 3 years.
$5000 is too much for you? Then open a $1000 account, make 25% profit every month and have a $3,081,487.91 or a $44,841,550.86 account after 3 and 4 years respectively.
There is no doubt that those who believe Forex Trading is gambling know nothing about Forex and gambling. They say Forex trading is like gambling, because there is an important similarity between Forex trading and gambling: Most traders and gamblers lose.
Most Forex traders lose, because they don’t know how to trade the “high odds” trade setups. They enter the markets just based on their emotions, or because “they think” that a currency will go up against another one, or just because a friend has the same position. There is no proper reasoning behind what they do. So they lose.
It is the same in any business, not only Forex or stock trading. If you act without proper knowledge and experience, and you leave it to chance and luck, you will lose all you have. This is what so many entrepreneurs and businesses do and get bankrupt.
Let me give you an example. You have some money and you want to invest it and make some profit. You ask for your friend’s advice and he says you will make a lot of money if you import cucumbers from China. You do it while you know nothing about the cucumber market in your country and whether there is a demand for it or not, or, whether it is the right season and time to do that, what competitors you have, and how much is the cucumber price in China and your country, and so many other things you have to investigate and find out.
You order cucumbers to a Chinese company or you give your money to your friend and ask him to do it for you. You import a lot of cucumbers. Chances are you make a lot of profit (which rarely happens when you trade like that), but most probably you will lose a lot of money, because you know nothing about this business. You didn’t know how to sell cucumbers in your country. And, you have not thought about cucumbers storage expenses and so many other things…
What you did apparently looks like a business and trade, but it is a speculating in reality, because you did it without any knowledge, experience, research and investigation. You did it just based on your friend’s poor advice, and left the rest to your luck while you didn’t consider that luck comes to you when you are prepared enough:
“ The harder I work, the luckier I get! ”
This is what most Forex traders and gamblers also do. Import/export, Forex and Stock trade, and also gambling are all the same and will return the same result (loss) if you do them like what I explained above. However, if you do them properly and professionally, and you take action when you are completely prepared, there is a much higher probability that you win and make profit.
In Forex trading, if you learn and master a trading system, and so you know when is the best time to buy and sell, and wait for the best and strongest opportunities to enter the market, there is a much higher probability to make profit. This is what professional and experienced traders do.
Also, while most gamblers and card players lose because they don’t know how to play the high odds hands, many professional and experienced gamblers make a lot of money, just because they are experienced, knowledgeable and patient enough.
What I am trying to say is that you can speculate and lose your capital in any business, be it Forex, stock, blackjack, poker, real estate, construction, import/export, or even bakery. If you want to win and make profit, you have to act at the right place and right time. And, who knows where is the right place and what is the right time? Yes; someone who is knowledgeable and experienced enough.
Professional gamblers and card players, as well as Forex and stock traders make profit consistently, because they are knowledgeable and experienced enough to distinguish the high odds opportunities, and they are patient enough to wait for the high odds opportunities to occur.
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