Learning the skill of forex trading can give you the ultimate financial freedom. Forex market is like an ATM machine. But this ATM machine only works when you have the right skills. Many people have this misconception that you need a lot of capital in order to trade forex. Do you know this fact that people like Richard Dennis and Bruce Kovner started with a small sum of money and turned that into a fortune.
Richard Dennis was a small time trader who had started with less than $500 and turned that into $150 million in the next few years. He is considered to be a trading legend. He is famous for his Turtle Trading System. Bruce Kovner was once upon a time a NYC Taxi Cab driver who had no money to trade forex or commodities. So, he borrowed $3,000 on his credit card and turned that into $43,000 in his first trade on soybean futures contracts. He got his first trading lesson on the importance of risk and money management when he later on watched that $43,000 plummet into $23,000. In the coming few decades, he made billions of dollars! Today his net worth is estimated to be more than $4 billion.
What this shows is that you donât need a large sum of money to succeed at trading. However, what you need is the right skills and the right training. Many people donât educate themselves properly when they start trading forex! When they lose their hard earned money, they give up. So, first get proper training and education and then think about trading live with your hard earned money.
If you follow the steps provided in this article sincerely, you can easily turn your $250 into something like $1 million in the coming 14 months. So, letâs get started. Suppose, you are new to forex trading. What you need to do is to learn some forex trading basics. Most of the info is available free online. Look for a trading system that you can rely on!
Make a list of 3 best forex systems available in the market. Ensure that these forex systems have got 60 days money back guarantee. This way, if you donât feel satisfied with the forex system, you can get a refund. Now, purchase the best forex system in your opinion. Test it on the demo account for one month. If you feel that the system is not easy to trade, simply go for a refund. Try the next forex system in your list. After one or two tries you will find a good forex system that suits your personality and style and does not take more than 3-4 hours to trade daily.
Suppose, you find a system that works for you during one month of demo account trading. Suppose, the system made something like 100% return for you during one month of demo account trading. Now, open a micro account with a $250 deposit and turn that $250 into $500 in the next month with that system. On a micro account, 1 pip is equal to 10 cents, so if you lose 100 pips, you only lose $10. This makes your risk very low when trading live on the micro account. A micro account is best for your initial training.
Once, you turn that $250 into $500 in one month on the micro account switch to a mini account and turn that $500 into $1000 in the next month and that $1000 into $2000 in the coming month. 1 pip on a mini account is equal to $1. Trading on a mini account will give you more realistic training on how to manage risk and leverage when trading live.
Once, you have made $2,000, you are all set for trading on the standard account. You have successfully handled the micro and mini account and consistently doubled your capital each month, so you will be able to trade comfortably on the standard account where 1 pip is equal to $10. During these first four 4 months of trading, you developed confidence in your trading system that it works under the different market conditions. This is very important. You need to have confidence in your trading system. The choice of a right trading system is very important.
If your trading system consistently makes more than 100% return every month, do the maths, in the next six months, you will be able to turn your $2000 into $1 million. So, in less than 14 months, you can achieve your goal. Even if your trading system makes a consistent return of something between 30-60% per month, you will be able to reach your goal of $1 million. But it will take more months! Whatever trading system you ultimately choose, you should be comfortable trading with it. The first four months of trading as suggested above will teach you a lot about the performance of your trading system so donât miss them! Good Luck!