Can You Actually Make Money Trading Foreign Currencies?

 

Ron from The trading Coach

I’m often asked the same 2 questions by people when I tell them I am a Trading Coach that specialises in educating and coaching people to create a Lifestyle Income From Trading Forex..

The first one usually is if anyone really makes any money trading forex, given that it is “so risky” …

As a former ATO auditor, I like to ignore hearsay and unsupported opinion and look purely at the facts and figures to get a real understanding of the strength of an opportunity.

Here are some facts and figures about forex trading

From 2006 to 2016, the amount traded on the forex market has risen from around $1.4 Trillion US per day to approximately $5 Trillion US per day.  Now, if trading currency wasn’t profitable, why would the daily trading volume increase so much over 10 years?

All of the US equities markets (everything from blue chip stocks to frozen concentrated orange juice) trade approximately $200 Billion US per day.

If you have a look at the comparison of these figures, you will see that the “forex” market trades approximately 25 times the volume of the US Equities Market.  Again, if trading currency wasn’t profitable, why would it trade such a huge daily volume in comparison to the US Equities Market?

The major market volume traded on the forex market is by Banks, Hedge Funds and Investment Funds – the “Experts” in making money.  If it wasn’t profitable, why would the “Big Kids” in investing be doing it?

So… The answer to Question 1 is: “YES, YOU can make money trading forex.”

This usually spawns the next question (usually prefaced with “I know someone that lost their house trading forex…”) 
“Ok, so the big players can make money trading forex, but surely it’s way too complicated and risky for people like me to trade, right?”

My response usually is “Each type of investing has benefits and risks and; once you know the risks and understand how to balance Risk and Reward, all can be very profitable.”

Not everyone is suited to trade forex, but the myth that trading forex is any riskier than investing in a property or buying and selling shares is just that… a myth.

As a parallel, not everyone is suited to becoming a world class body builder or fitness model, but that shouldn’t stop someone from wanting to improve their health and fitness.

Producing a positive result from trading is just like producing a positive result from any pursuit – whether that’s investing, business, sport etc., it requires focus, commitment, discipline and a realistic expectation of the results that you can produce for the amount of effort that you invest.

Trading Forex; like trading any CFD, is a leveraged investment, but You are in control of how much you risk on each trade and an intelligent risk management and stop loss strategy is a must-have for any trader.

Five Key Elements

The Truth is, to generate a Consistently Positive Income Stream from Forex Trading requires 5 Key Elements. 

If you don’t have these elements, then yes; like any other active investment option, you probably won’t make money consistently, or you could lose money.

But, if You approach forex trading like any other profit making active investment and apply these 5 Key Elements you increase the Probability considerably in your favour.

In Summary, these 5 Key Elements That You Need to Be a Successful Profitable Forex Trader are:

  1. Risk Management
  2. A Focused Education
  3. A Profitable Trading Method
  4. A Strong Trading Plan
  5. The Traders Mindset

If you would like to learn more about these Key Elements that You Need to Trade Forex Successfully and Profitably, please download our free report by clicking here 

 

 The Trading Coach was started to share strategies of the use of Technical Analysis Indicators as well as Business Structures and Traders Mindset Strategies that are used by Professional Traders from around the world. The Lifestyle Income From Trading Program has been developed to help Professional Traders and Aspiring Traders to learn the step by step methods used to potentially create a Lifestyle Income from Trading. Click here to view the website now

 

 

 

 

 

 

 

 

Phil

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