Howdy everyone, how are my fellow forex traders and those who want to be doing today? First I would like to address those of you who are not trading forex yet, but who are seriously considering it: Congratulations! The first and most important step is to actually decide to enter the great world of forex trading. Why do I think it is great? Because if you are committed to it, have the right mindset and want to truly create an asset base with a long-term time horizon to create monthly cash flow from the comfort of any location you chose, then forex trading can provide you just that.
Now I know from experience and through friends and friends of friends that there are a lot of options available for someone to earn a living, a great one, online. The problem with many of those options is that they are centered around MLM schemes, require you to contact strangers and sell a product or service and in the worst case are a pure scam. Either way, you need to depend on the other side to purchase whatever you are offering which makes the entire business unreliable in my opinion. The people at the top tend to earn most of the money. Just look at Herbalife and how it is basically a pyramid scheme, offering actual products.
Forex trading is different. No need to rely on others, no need to contact strangers and trying to sell them anything. When it comes to trading forex, it is all on you. You can either create your own trading strategy or follow someone’s strategy if you can get access to it. Many forex brokers offer a copy service which allows you to follow the traders you believe will return you the most and their trades are automatically copied into your own trading account. You can even follow different traders in order to diversify your overall forex portfolio. Either way you decide, forex trading will allow you to earn money 100% independent.
One thing I would like to point out is that it does require a few key ingredients which, unfortunately, many totally ignore. Without those ingredients, it is like cooking a meal without using salt and pepper. It just won’t taste right and the same holds true for trading forex. The salt in forex trading is patience and the pepper is discipline. Without those two, you are doomed to join the ranks of those who tried forex trading, failed at it and like to shift the blame to everyone except themselves. While is sounds very simple to say that you will approach forex trading with patience and discipline, it is much harder to apply.
A lot of new traders approach forex trading with false confidence gained in demo trading accounts. I think using a demo account is the wrong way to get started and in my opinion it should never be used. No matter how much a traders claims that they will treat it like a live account, it doesn’t compare. The psychology of trading is crucial. You can’t learn how to cook a meal in a virtual simulator. You can’t season your food, smell it and taste it. Therefore whatever you would do in a virtual cooking simulator is 100% useless when you actually stand in the kitchen and cook. Every good cook knows that you have to burn a few meals before you get it right.
The same is true when it comes to trading forex. You may need to blow a few smaller accounts in the name of education, but it is money well spent! I blew through a few accounts myself, never bothered with demo, but looking back I learned things about trading and about myself that I can only recommend it. I do admit that I don’t have the time to trade forex full-time, I love my job and have no intentions to quit. Forex is meant as a second income stream to improve my overall life and plan for the future. I have a long-term plan in mind and am in the seventh year of building my forex portfolio at PaxForex.
Since I am unable to trade full-time, I decided a three-tier approach to my forex portfolio. I have one account where I trade myself, I put 50% of my money there and am making monthly deposits in it. I am only trading the major currency pairs in it according to a trading system which I developed and which turned profitable just earlier this year. I also run a second trading account where I copy the trades of two forex traders who have a good track record. I put 30% of my money there and let the trades play out. In my third and final trading account I deploy an EA which I bought last year and who trades the remaining 20% of my money. I am growing my three accounts steadily and consistently at PaxForex and if all keeps going at this pace, in 2020 my forex earnings will eclipse the salary of my job. You can achieve the same, as long as you decide to get started, don’t forget the salt and pepper!