Forex Trading Course - Part 1.2
This is one of the most important lessons you will have so read this page carefully and throughout the course do not forget this lesson.
I have no doubt by now that you will have seen on social media a post somewhat like the pictures here where you've been told that you will become mega rich in a few months by following their signals and trading the forex markets. Sound too good to be true?... It is!
If you are learning to trade the forex markets with the intention of getting rich quick, stop reading and save yourself some money. However, if you are intending on learning a skill to consistently grow your money and compound your wealth in the long-term then please continue reading.
To be clear, there is a lot of money to be made trading forex. There is also a lot of money to be lost. Like any other investment, you need to have a realistic plan of how you are going to grow your money.
I prefer the example shown in the picture to the side, where you will gradually grow your money over time.
I'm not going to go into too much detail now of why you won't be getting rich quick with forex as that will all be explained in the risk management lesson further into the course.
For now, all you have to do is have a realistic expectation of what you can achieve financially in the forex markets. Make sure you stay disciplined! Keep in mind, I know a lot of profitable traders who are consistently making around 7% per month. So, if in one month you've grown your £300 investment to £330, a £30 profit doesn't sound like a huge achievement but you should be pleased that you have outperformed a lot of profitable traders (and the other 90% that lost money that month)!
I'm going to give you an example now of how patience and consistency can pay off in the long-term. If you start with a £500 investment and make 10% monthly, your results will look like this over the next 5 years...
End of year 1 - £1,569.21
End of year 2 - £4,924.87
End of year 3 - £15,456.34
End of year 4 - £48,508.62
End of year 5 - £152,240.82
I'm sure you are interested to know, in year 6 that figure becomes £477,796.91!! If you can grow your account to that size without withdrawing any of it then you must have ice in your veins, but you get the idea.
Hopefully you now have a better understanding of what it takes to make good money in the forex markets, so make sure you don't go handing your notice in at work just yet!