What do I Need to do to Build Wealth by Trading Forex

by May 20, 2021Forex Truth

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To build wealth in Forex trading there is only one way.

And Forex truth says that is by trading which means you need to buy or sell currencies. If you know how to trade you can make money and build wealth.

Knowing how to trade is not easy and that is the hardest part to get wealthy by trading Forex. You need to be successful to make money and by making money you can build wealth to the highest level.

But, to get there, knowing how to be successful takes time, patience, discipline, consistency, emotion control, strategy, risk management.

Well, you see that it takes a lot.

But it is same as all in your life.

You need to invest something to get something back.

The one thing we always invest is time. You need to spend time wisely and take out of each minute as much is possible.

Building wealth by trading Forex takes time like building palace one stone by stone. You need to make foundation to go up so you need to learn basics about Forex trading to make money.

Making money by Forex trading is not easy and making a lot to build wealth is even harder.

You need to invest money to make money. Without money you cannot start trading Forex.

To make more and build wealth by trading Forex you need to decide.

Will you invest more time and trade steadily for longer period and build wealth or you will invest a lot of money and shorten the way to build wealth?

Both ways are fine and legit but you need to decide which one suits you best.

Time for Building Wealth by Trading Forex

If you decide to invest your time to build wealth by trading Forex be prepared to invest years.

If you are beginner and you do not know how to trade Forex you need to sit down and start learning.

At the beginning you will make Forex beginner mistakes but that is good because you can learn from your mistakes.

Pay attention to always reevaluate your knowledge by investigating what was wrong on your previous mistake.

Remember – Repetition is mother of knowledge

Why does it take years if you decide to follow path with investing more time?

The thing is that you do not have so much money where one trade can give you thousands of dollars.

You need to make small amount of money on each trade and compound that account.

If you make 10% on each trade you need to make 10 profitable trades to make 2.5 times more. That means, if you invest $1,000 and after you make 10 trades you will have $2,500.

And that is without losing trade.

Now, if you make calculation based on your initial account balance you can see how much time you need to double the amount of money on your trading account.

To build wealth by trading Forex I am thinking about making a lot of money where you do not need to work from 9 to 5.

Because you do not have a lot of money and you have decided to invest more time it is smart move to have daily job. With the daily job you can save more money and increase your trading account.

Doing that you will speed up the process of increasing trading account balance which will speed up reaching the ultimate goal, building wealth by trading Forex.

Additional Stream of Income

If you are not interested in trading Forex for a living but to make it as a side income to your monthly salary, you can do that also.

You can start trading with small amount of money and make money by trading Forex as additional stream of income. By adding each month small amount of money on the trading account you will follow the path that many wealthy people have done.

If you combine two channels of income you can quickly increase trading account to certain amount that will give you more freedom. If you can increase income channels to three or four, that is even better.

By increasing your trading account regularly you could compound your account balance which will lead to fast growth of account balance.

Albert Einstein famously said that compound interest is the most powerful force in the universe.

 

Compound interest is the 8th wonder of the world. 
He who understands it, earns it;
he who doesn’t, pays it.” 

Money for Building Wealth by Trading Forex

If you choose to invest more money to shorten the way to build wealth by trading Forex you will need to do the first step.

The first step is to learn how to trade. Without knowing how to trade you will not go to far.

Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime

This quote is one thing to remember. It is something you need to remember because when you see that you can copy other traders or pay for the signal this quote should be a warning.

Warning that will warn you that in the future traders that you copy or signals you are following could stop coming to you. You can end up alone without knowledge how to trade and consequently without income from Forex.

If you invest a lot of money in Forex it will shorten the way to build wealth. That is because you will make more money with less pips on each trade.

You will be able to make monthly salary just with one trade. And that trade can happen in just few minutes or in a day. It all depends on the trading signal you will trade.

Build Wealth by Trading Forex by Managing the Risk

The other benefit having more money on your trading account is that it will allow you to manage risk more precisely. The reason is that you will not be greedy and you will not risk to much on each trade.

You will not hunt for fast profit and risk a lot on each trade. Risking to much mostly ends up losing all your money on your trading account.

If you do not know, one of the main reasons why traders fail in Forex trading is because they are under capitalized.

To low amount of money will lead to over trading and over sizing which leads to burning all money on the trading account.

If you invest enough you will avoid common problem many trader face while trading Forex. But, and BUT, you need to plan the risk you will take on each trade.

How to Build Wealth by Trading Forex – Have a Plan

If you are going to build the wealth by trading Forex you must think like a wealthy person and that means having a vision and a long-term plan.

The plan is there to guide you how to spend money and how to increase it. Same way as you pay attention where you will spend your salary during the month you need to pay attention how will you spend your money on the trades.

The plan is there to guide you step by step to reach the goals you have set for yourself. Plan should contain trading plan and risk management plan.

Trading plan will define how you will open the trades. When the right signal has met all the criteria you have defined.

Risk management plan will define how much you will lose or make on each trade. With defined levels for loss and profit you can calculate how much win ratio you need to have in order to be profitable.

With trading plan and risk management plan you need to set goals. Goals must be defined in a long term so you know what you are striving for.

With large goals you can cut them into smaller with shorter period. Small steps will make your trading life easier and you will keep the will for trading. That way you will move forward to build your wealth by trading Forex.

Without plan you can expect to lose money very fast and to move away from trading because you will think it is to hard.

Remember – small steps will lead you to your goal

Be Smart and Invest Into Mentor to Build Wealth by Trading Forex

Those who understands what means having knowledge and being a professional in their job, understands that having someone who is professional trader and who will teach them trading, increase the chance of being profitable.

When you want to speed up the process and not to make beginner mistakes you will find someone who will show you the right path.

The mentor is one of the best choices you can make in your trading career at the beginning. Mentor will show you what not to do, where to focus to learn things that are useful and what to avoid so you do not end up like 95% of traders – those who lose the money.

Mentor will show you trading strategies that are already profitable so you do not waste time searching and testing for the profitable strategy. You only need to follow the rules and steps that are defined.

As you can see having a mentor has many advantages and you would be years ahead of those who do not have a mentor.

Building wealth by trading Forex is not easy and mentor can show you his results how did he managed to make money by trading. To be wealthy you will need all the help and knowledge you can get.

Real Life Experience Towards Building Wealth by Trading Forex

The real life experience is the most valuable part of any education. I am sure you have searched the Internet through forums just to find someone who will tell about his experience.

Reading that experience you can connect with the persons life because the road he has taken is similar to yours. By having someone with similar experience in his life you can easily understand what will happen in the future.

If you are already experienced in your life you can immediately learn from his experience and not making mistakes that will return you two steps back. You will move fast forward just by avoiding mistakes which over 90% traders do.

For example, I as a mentor would show you which problems you would face and mistakes you would make. I would show you on real examples you already have experienced what you have done wrong and which consequences you will face.

That way I would help you to overcome those problems. I would show you them because you need to know them and understand them. If you do not understand them you will repeat them.

Learn From the History

Those Who Do Not Learn History Are Doomed To Repeat It

Conclusion

Build wealth by trading Forex is possible and reachable but not easy and quickly.

You can select two ways to build wealth by trading Forex, more time with less money or more money with less time.

Whichever choice you select you need to have the right knowledge and the right attitude to reach the goal. Goals must be set and defined so you can follow them. If you do not have goals you will get lost eventually.

With goals you need to plan to have trading plan and risk management plan. Planning is very important and it will help you stay on the track.

With defined risk you will save your money from being wasted for nothing and you will stay in the market for longer period of time.

If you want to make better choice and avoid beginner mistakes, if you want to learn faster, learn only what matters and to get trading strategy that is profitable, then find a mentor who will show you everything you need to know.

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“Disclosure: Some of the links in this post are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. This does not cost you anything extra on the usual cost of the product, and may sometimes cost less as I have some affiliate discounts in place I can offer you”

Frano Grgić

Frano Grgić

A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners. Market analysis is featured by Forex Factory next to large publications like DailyFX, Bloomberg... GetKnowTrading is becoming recognized among traders as a website with simple and effective market analysis.

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