If you want to be a successful forex trader, greed is probably the biggest obstacle you’ll have to overcome. If you try to get rich on every trade, you’ll more than likely end up blowing your account – slow and steady wins the race. It’s the great paradox that all traders face – if you want to get rich quickly, you have to do it slowly.
Imagine you’re risking your entire balance on a trade. Sure you might win the first two, or three trades and triple your balance a few times, but eventually you’ll lose one (and lose everything!). Now what if you were still aiming to make double your risk when you trade, but only risking 1% per trade? Say you place 10 trades in a week and get half of them right – 5 winners/5 losers:
1. -1%
2. +2%
3. -1%
4. -1%
5. +2%
6. -1%
7. +2%
8. +2%
9. -1%
10. +2 %
Total = +5%
Okay, so with your modest $5000 balance that might not be life changing ($250 a week)… but what happens when you compound that return over a year?
You can get rich relatively quickly through trading, but it doesn’t happen overnight. It happens over hundreds, if not thousands, of systematic, high probability and low risk trades. In order to ‘get rich quick’, you have to be patient – If you truly want to satisfy your greed, keep it in check.
More News Posts
China manufacturing PMI shrinks more than expected in April as US trade war bites
Chinese manufacturing activity shrank more than expected in April as…
US stock futures muted ahead of econ data barrage, megacap earnings
U.S. stock futures were largely muted Monday evening after subdued…
Australia’s Alkane to acquire Canada’s Mandalay to form a $650 mln gold producer
Australia’s Alkane Resources Ltd (ASX:ALK) will acquire Canada’s Mandalay Resources…
Trump said ’doing fine’ with China, has no plans to fire Powell
U.S. President Donald Trump delivered remarks on the state of…
US stock futures rise after Trump remarks rattle Wall St; tech earnings due
U.S. stock index futures rose in early Asian trade on…
China CPI, PPI inflation fall more than expected in March as US trade war heats up
Chinese consumer inflation shrank more than expected in March, reflecting…
Australia consumer sentiment hits 6-mth low in April on US tariff worries- Westpac
Australian consumer sentiment fell to a six-month low in early…
Black Monday or Face Ripping Rally?
Following last week’s unprecedented two-day bloodbath in stocks post-tariffs, investors…
Oil prices extend steep declines as OPEC+ output hike, Trump tariffs weigh
Oil prices extended losses in Asian trading on Friday after…
Trump unveils sweeping tariffs on all imports and higher levies on “bad actors”
President Donald Trump said Wednesday the United States will impose…