Forex for a trader
Can forex make you millionaire

Can forex make you millionaireCan forex make you millionaire. . , - . , - , . . , , , , , , , , . , , , , , . , - ? , - , , . , , . , ? , , . . , , , . , , . , . : . , . , , . . - , . , . , . , . , , . , 2000 , 20000 , . - . -, . , , . : , . , . , ! . 1969. Quantum ( -). Quantum . – , « » – . , , . – . 1965 . , . . . 5 , . , . ( ), . . , . , , . – . 18 , , 12415 $ 2 $. 2003-2006 «Barclays» . « : 2 ». , . , . : - . 70- . , , 400 , 200 . , . , . , , , . , . 21 : , ? : . , , , - , . , . FXFINPRO CAPITAL . , . . Can You Really Become a Millionaire from Forex Trading? There are some questions that are frequently asked by novice traders: How much money can I make through Forex trading every month? How many trade setups will I have every day and how many pips can I make every month?

Can I start with a $100 account and grow it to a million? … Among all the frequent questions, there is one question which is asked by some novice traders more often: Can I Become a Millionaire through Forex Trading? I have two clear answers for this question and I explain about each of them in details: Making lots of money through Forex trading is completely dependent on some special conditions. When someone has the proper conditions, he can make millions through Forex trading. When he doesn’t have the proper conditions, he will do nothing but wasting of time and money. – What Are Those Conditions? You can increase your wealth and become richer through Forex trading and become a millionaire or even a billionaire. However, if you are among those who want to turn a $500 or even a $5000 account into millions, then I have to tell you that you will have a hard time. I am not saying that it is impossible to make millions with Forex. Anything is possible in this world.

However, you have to be patient, because it can’t be done overnight, or even in one year. You will be faced with some challenges that finding a good broker that doesn’t cheat you, is the biggest one. Forex brokers don’t let you grow your account consistently, because in most cases, your profit is their loss. – Forex Is Not a Get-Rich-Quick Scheme. Currency trading is not an easy way of making money and making a living. It is the same with the stock trading and all the other kinds of tradings and investments. To make money consistently through Forex trading and maybe to become a millionaire finally, you have to pass some important stages. There are so many jobs that you can follow and become a millionaire. It is not the job that has to make you a millionaire. It is “you” who has to follow the job properly to become a millionaire. For example, there are so many millionaire real estate agents and brokers in big cities like New York. However, there are a lot more agents who cannot even cover their monthly expenses in the same cities. All agents are in the same areas, have access to the same markets and customers, ruled under the same jurisdictions, use the same advertising media and… . But, how can some of them become millionaires, and most others fail to have even one sale per month?

Whatever the reason is, it has nothing to do with the real estate business itself, because it is the same for all the agents and brokers. The reason is in the agents and brokers behavior, life and work style. – Behavior, Life and Work Style. Forex trading is like that too. It possible to become a millionaire through forex trading, as it is possible to become a millionaire through stock trading, programming, marketing, importing and exporting, constructing, and… The more important question is “how?” There are two things that you have to do to become a millionaire Forex trader: 1. First you have to learn and master the trading techniques. 2. You have to have a reasonable amount of capital to invest in the Forex market. You can’t become rich through growing a $500, $1000 or even a $10,000 account. It is not even possible to make a living through such an account, whether you master the trading techniques or not. I’ve never seen even one single retail Forex trader who has become able to become rich or millionaire through growing a small account with a retail Forex broker. Even I’ve never seen a Forex trader who has been able to make a living like this. There is no consistently profitable and professional currency trader who trades through the retail Forex brokers. You have to have enough capital to trade currencies through a bank account. And, as the bank accounts are not leveraged, your capital has to be reasonably enough. Those who don’t believe in what I explained above, can spend some time and money on retail Forex trading through the retail Forex brokers. I am 100% sure that they will remember what I’ve explained above, and will be back to this site after losing a lot of money and wasting a lot of time: Trading Strategies Don’t Work If You Don’t Choose the Right Living Strategy.

How Can You Become a Consistently Profitable Forex Trader? Unlike what most people think, it is not possible to start making money right after learning the Forex trading basics and a trading strategy. There is something very important that most people don’t consider: To learn how to trade Forex, become a consistently profitable trader and hopefully a millionaire, first you have to have a source of income that supports your currency investment. I mean you have to have an income that covers your expenses and leaves you some free time to sit at the computer and learn how to trade with peace of mind. Unfortunately, you can’t make any money through Forex trading and any other kinds of trading when you HAVE TO make money and you have financial problems. – False Forex Success Stories. Most people think that they can learn to make money through Forex trading within a short time, and become a full-time Forex trader who makes thousands or even millions of dollars. This is is not true at all. There are so many false Forex millionaires stories over the Internet. Be careful not to be deceived by them. None of the real millionaires or billionaires, like George Soros, have made their wealth through full-time Forex or stock trading: How Did George Soros Make His Money? They are experienced business people who make a lot of money through several sources of income they have.

Then they invest a portion of their wealth in currency, stock, real estate… markets to increase their wealth: A Short Term Investment Strategy That Makes You a Millionaire. This is how they’ve become millionaires or billionaires. None of them have achieved this through full-time Forex or stock trading and with retail brokers. Therefore, if you like to become a millionaire, first you have to have a good source of income that makes a reasonable amount of money that not only covers your expenses, but also leaves some money for your trading and investments. Then you can start learning how to trade. You have to keep on learning and practicing until you become a consistently profitable trader. There are two ways to do that. – The Hard and the Easy Way. One way which is the harder and in most cases the impossible way, is following too many trading strategies, robots and time-frames, and sitting at the computer for several hours per day. That is the hard way which can hardly take you to your destination.

The simpler and easier way is learning the Forex trading basics, and then a simple and strong trading strategy. Then you have to master your trading strategy through demo trading. When you succeed to make profit consistently for 6 consecutive months at least, you can open a small live account and start practicing with it. If you can make profit consistently for 6 consecutive months with your live account too, the way you could make profit with your demo account, then all you have to do is that you keep on trading with your live account to grow it. However, you will be faced with another problem at this stage which is finding a good broker. Unfortunately, it becomes harder every day to find a reliable broker. Finding a broker that allows you to grow a small $5000 account into a reasonable amount of money, is not that easy, and is one of the challenges that you will be faced with when you want to become a millionaire Forex trader. However, there is a solution for this problem. – You Need a Source of Income. Forex trading is not a full-time job. It is not a business as well. It is an investment opportunity. You should already have an income to become able to invest in the currency market. You can keep on making money with the source of income I explained above, to save a reasonable amount of money to open a bank account and start trading with it. Trading through a bank account will have a lot more advantages compared to trading through Forex brokers. (Please refer to the articles I listed above.) The only problem of trading through a bank account is that you have to have a lot of money because banks don’t offer any leverage.

Therefore, to become able to trade through a bank account, you have to have a lot of money already. That is why I emphasized on having a strong source of income earlier in this article. You can’t become a millionaire Forex trader without a good income and backup. Turning a small $5000 account into a million dollar account is possible theoretically. You can do it slowly and surely when you become a consistently profitable trader and you have enough patience. However, Forex brokers don’t let you do that in reality. Because of the same reason, we have some programs to help our followers to create a reliable and strong source of income while they also learn how to trade Forex. While they are learning to become consistently profitable Forex traders, they create a good source of income through the other systems we introduce (learn more here). When they become a consistently profitable Forex trader finally, they have enough money to open a professional live Forex trading account with a bank to trade professionally and grow the money they make.

This is how they can become a millionaire Forex trader while they also have some other good sources of income to support their Forex and stock trading investments. So, the answer of this question that whether it is possible to become a millionaire through Forex trading, is in the facts that I explained in details above. Be careful not to be deceived by the scam mentors or brokers that encourage you to open small $100 or $500 accounts with the high leverages like 500:1 or even 2000:1 that some market maker brokers offer these days, to turn your money into millions within a short time. They are there to make money from your losses, not to make you a millionaire. Just before you go, did you check This System? Make sure to do it now, otherwise you will regret. Read related articles: + Click Here to learn who we are and why this site was created. + Click Here to receive our eBook for free. Hi Chris What are your thoughts on NZDUSD daily as a forming trade? I think the market is exhausted; strong break of BB; if current candle closes as strong bullish this looks a strong long entry. This is my first day of reading the charts per your strategy, so would welcome your comments. Thanks. Welcome to LuckScout. The pattern is not strong enough so far. Let’s see how the current candle will close.

I was thinking about the same thing as Adam about NZDUSD, but NZDUSD just broke monthly support and has not really moved down yet, so I am not sure. Chris, about USDCAD, for the last bearish setup you scored it 98. There is another one forming in daily chart. Hi Adam & Stanley, Both the latest setups you guys mentioned on Nzdusd and usdcad are not strong setup. Will be dangerous if we enter ?? Hi Chris , This is my 1st comment on luckscout .. thanks for the gold valued articales.. i m still reading on ur articales . As “Adam” mentioned above where we can see lower bollinger band breakouts On the NZDUSD ? even 14022017 & 15022017 candles are not in enough breakouts for strong trade setup …. 17022017 candle also bit strong for bearish .. Please correct me if i’m wrong .. Thank you, this article is another big motivation for us. I would like to ask you about NZDUSD, I think on monthly time frame we are on support line, and on daily – nice bullish engulfing are forming with strong LBB breakout, but we must wait for closed.

Chris, I opened a short position on NZDUSD based on the DBB system on the weekly timeframe. Now, a bullish engulfing pattern is formed at the daily chart. I do no think that this setup is strong mainly due to the candle’s long upper shadow. However, what does this mean for my already open position? Should I close it due to the presence of the long setup (although weak) ? Today most of my open positions (based on DBB) hit the SL. When I looked back I saw that in most cases there was a weak (no BB breakout or weak candles) setup formed with the last two candles. Please consider this as a general question. I have read many times your strategy for maximising profits by opening two positions. Do you use a weak setup as an indication that it is time to close the second open position?

The upper shadows of the daily candlesticks tell me that Bears still have the control. So the price can go lower. However, holding or closing of the position is your own choice and is what you have to decide about. > Do you use a weak setup as an indication that it is time to close the second open position? When the position has made a good profit, yes. But when the trend is strong and the weak setup is just formed as the first reversal, then I hold the position. As others have mentioned the USDCAD is looking like a potential trade but seems to have 2 negative points. Long tail on the second candle which seems to be because it is stuck on the middle band on the 4hr chart. It also seems like USDCAD still has a bit of steam behind it, with a constant zigzag in an uptrend movement. So far it doesn’t look like a 100 gauge trade. You are right. So far USDCAD has not formed a 100 setup.

Uptrend is still too strong. Very nice article. Thanks for the motivation. I thought today would throw up some strong trade setups across a few of the pairs. But as we approached the close, many of the candles developed long shadows which voided most if not all the setups. I can’t see any strong trade setups on the daily charts, although we may get a few from the yen crosses on the weekly very soon. Do you agree? Or have I missed a pair? I don’t see any 100 setup either. Seems like AUDJPY is about to touch 50 day moving average. Although MA is not steep but might have long setup ? 50SMA direction is good. We have to wait for the price to retest and forms a buy signal above it. hi chris, just want to know if i should double my demo account before i go into live account? or i just have to be positive for 6 months ?

You have to be able to repeat your success consistently and consecutively for 6 months. If you double your account in this process, even better. However, depend on your trading style, you can make for example 5% profit per month which is great. You have to repeat the 5% profit every month for 6 months at least. If so, your account will not be doubled, but you have repeated your success consistently. This is what you have to do. Hi Chris, thank for the sma50 system. It is really simple to understand but to use it in trading need some guide and practice. Last month there is no 100 score set up, is it normal for your point of view? You are welcome. It happens rarely that a month comes and goes with not even one 100 setup. Fruitful months will always come. We will share more strong trading systems little by little that enables the traders to have trade setups every month. I located a triangle pattern on EURJPY 4H and it broke above resistance line, it went up but then it went down recently.

I located 2 SR Lines (closed price & highlow price), but I got confused whether this pair has broken the support line (which shows that the resistance line wasn’t valid), or it’s just currently retesting the broken resistance line? I know I can wait to see how it goes later, but I guess something similar will happen again one day so I would like to hear an opinion from an experienced trader like you. Thanks a lot Chris! Support lines look OK, but the resistance line doesn’t look like a valid resistance, because the second point that you used to plot the line is too far from the first point and it is not chosen from a strong high. The high has to be stronger. In spite of this, the upward movement was not that bad. We cannot expect to see a too strong trend forms after each breakout. Reference to the resistance line: So when you say “the high has to be stronger” means candle need to be big regardless of whether its bullishbearish. Also, as you can see market actually reacted to these lines. I originally thought that as long as market react to your lines it is valid. It is not only the matter of the candlesticks size. Several candlesticks has to participate in creating a high or a low. The “peak” and “valley” has to be strong and more visible than the other highs and lows. Price can react to any line, as weak trade setups also make the price move accordingly. But we wait for the too strong trade setups to have a higher success rate. Therefore, we have to follow the strong lines too. Thank you Chris. It sounds like LuckScout will be alive for quite some time.

I am sure to follow till the last day!! Thanks once again. Thank you too Ted. thank you so much sir for your priceless lectures. my question is this: how were you applying the lot size(s) to grow the $1000 account to multi millions in five years, in the use “this calculator” you published. i found that info extremely helpful. please i would appreciate your reply. thank you sir. You are welcome. The lot size is not considered in that calculator. It merely calculates the balance and monthly income based on the monthly profit a trader makes. This is great, but almost every trader say it’s impossible to make more 3%month, is it because they have too many lose trade due to over-trading or because they find little opportunity to trade in a month? How do you know that they are traders?

Thank you for this article and your motivation words ?? I believe it’s possible to become a millionaire trading , with accurate education and discipline as taught by Mentor Chris. Thanks Boss Chris, God bless you. Hi Chris, what advise will you give to someone who is dying to join the Millionare’s Club but cannot because the ?99 per month constitutes almost 35% of his monthly income? Thanks for your good works. Sorry to hear that the monthly fee is not affordable for you. Of course it is not ?99. It is $99 ?? We will think about a solution for people like you. Thank you for following us. You made a comment about brokers not letting you make a lot of money trading. How do you feel about futures and your strategies. CME and the futures markets are a lot more regulated in the US. My CM account is being closed so I’m researching where to open a new account. Experience have proven that regulation can’t prevent the brokers from cheating the clients. Therefore, you’d better to start with a small account to test the water first. It was very depressing news when I heard on Feb 9 that CM is being forced out of the US markets. I have an account with them since Jan 2016, not a long time, but they seem to be okay and their spreads are pretty good – much better than those of. com (a subsidiary of GAIN Capital) where the accounts will be transferred. Now retail traders in the US have even fewer choices while the remaining brokers rejoice over the demise of one of their largest competitors so they can consolidate even further. Goldman Sachs was recently ordered to pay a $120m fine by the CFTC for attempted manipulation and false reporting of ISDAFIX benchmark rates, a global benchmark for interest rate products. Wells Fargo was caught late last year creating millions of fake accounts for their customers so they could charge them fees.

I don’t remember much happened to Wells Fargo as a consequence of such frauds other than the CEO testifying before Congress and some employees fired. I don’t think what CM did was worse than what Goldman and Wells Fargo did, but the big banks got off with not even a slap on the wrist while CM was forced to close up shop in the US. Where’s the standard in enforcement when apparently the regulators can do whatever they want and not have to account for their actions? Too bad CM, like most businesses in the US, does not have people in high places, or they didn’t make the right donations, and the result is they can lose everything overnight that they have spent years building. Join Our 24,000+ Loyal Followers & Receive Our eBook For FREE Now! Click Here to Enter Your Email Address and Check Your Inbox. Join Our 24,000+ Loyal Followers & Receive Our eBook For FREE Now! Click Here to Enter Your Email Address and Check Your Inbox. Can forex make you millionaire. Still have a question? Ask your own! A lot of people today have a dream to become a millionaire because of media advertising and TV. People see the lives of celebrities and millionaires and they want to have the same lifestyle. The most popular question: can I be a millionaire trading forex? Yes, you can be a millionaire trading forex but it is not easy like you see on internet advertising and media. If you start small say with just $5,000 and make 10% of your capital each month after 5 years you will indeed be a millionaire. If you make just 10% of your capital each month you can be millionaire.

You can start with $5K and in 5 years you will be millionaire. If you start with $10K you can be in 4 years and if you start with $100K you will be in 2 years. With just 10% a month you can fulfil your dream. Think about it. In any other industry you can not start with $5K and be a millionaire in a few years but in the forex market you can. If you like to trade forex because you think you can be millionaire overnight or in a week or month please exit NOW because you will lose all your money and may also lose your t-shirt. Brokers always hide this reality and tell you stories about doubling your money overnight. They prefer for you to lose your money to them as soon as possible because if you follow the correct way for a few years they will not see any substantial profit from you. Over the course of several years you will be the one pocketing the true profits! This is of course not in their best interest because 90% of brokers are just market makers and have no relation with the market and banks. They just create a virtual market for you and let you trade and they make money when you lose. And they lose when you make money. For them their interest is to make you lose as soon as possible then they try to motivate you to add more funds to your account and lose your funds more and more. If you really you want to be a millionaire in the forex market please forget about making money easily. You can not make a cold cash in forex market because that does not exist. You will need time to learn how to trade forex develop a strategy with 60% probability to win or more learn money management and take your time and start trading just on a demo account.

Be patient! Trade for 3 months on a demo account. If you can have success on a demo account then you can go and open a real account and start real trading. If you can not have success on a demo account then something is not right: maybe your strategy or you do not respect money management rules. After you know the error correct it and then restart trading on a demo account until you start seeing recurring success. Do no longer hesitate and join us now! Here you can find everything Forex related! Why Day Traders Can Make Big Returns, But Aren’t Millionaires. In this article I look at why a lot of successful day traders aren’t filthy rich, what prevents them from being so and how day traders (or anyone) can increase their wealthincome. Whether you’re a day trader, want to be, or are just want to understand why your profits or income aren’t rising, there’s something in this article for you. Day traders can make great returns…

they have to if they hope to make a living from the markets. But if they make great returns, why don’t you hear of more millionaire or billionaire day traders? Most day traders save up cash to fund their trading and therefore usually start with $30,000 to $40,000+ for day trading stocks, $2000+ for forex day trading and $3500+ for day trading futures. To see the potential for day trading each market, read How Much Money Can I Make As a Day Trader . Individual trader performance varies of course, but that article highlights that consistently making 10% or 20% (or more) a month is quite possible. When people hear of day trading making 10% or 20%+ a month they typically raise the following questionscomments: Where are all the millionaire day traders then? On a $50,000 account, making 20% a month (and forget even higher returns!) you’re doubling your account every 4 or 5 months. Again, where are the day trading billionaires?

Why aren’t these day traders managing other people money and making 100%+ year returns as a hedge fund manager? Top hedge funds make 20% or 30% a year, and often not consistently, so a day trader making 10%+ a month (120% per year) is insane…if they could really do it, why aren’t they managing other people’s money?! Why don’t I ever hear of someone making 120% per year, except when heshe is trying to sell me something like a book, subscription or trading course? Let’s address these questions and concerns. Few Day Trading Millionaires. First, there is an assumption that there aren’t many day trading millionaires because day trading isn’t really talked about on business television or on the news. Most day traders work from home and most have very low public profiles. You hear much more about investinginvestors, not day tradingday traders. So just because a lot of people don’t know of them doesn’t mean they aren’t there. That said, there aren’t many day trading millionaires compared to the total number of people that day trade. That’s a highly likely statement…there are very few millionaires in any field compared to how many people are involved in that field. In every field there’s a wide of array of incomes, and rarely (if ever) is there a large collection right at the top of the pay scale. Instead, incomes are spread out, from very low pay up to millions of dollars a year, with most participants clustered somewhere around the median.

In other fields you can be very good at something and not be a millionaire, and so it is with trading. Another reason there are few day trading millionaires is that very few succeed at day trading in the first place, and it takes a long time to master. Aside from the statistical improbability that all good traders can be millionaires, there are other more tangible reasons why even great day traders aren’t millionaires. These reasons include the “personal ceiling” and “market ceiling.” Day Trader Personal Ceiling. In life most people find an income level they’re comfortable with and stay there. They may want more money, but do little work to actually make that a reality. This is called the personal ceiling. It’s a resistance level which prevents us from progressing, without a significant shift in psychology, to the next stage in making more money.

There is always another personal ceiling above us though, and eventually we hit one we can’t get through. Most people hit a personal ceiling at whatever the average income of the population is. Some hit it theirs sooner (based on opportunity, desires and skills), some hit it later. But eventually we all hit a point where making money becomes much more difficult, or not worth the hassle (even though we want it). You can make more money, but the personal ceiling makes it difficult . Day trading is no different. One trader may decide (or get stuck at) a $2000 per month income is fine for their lifestyle. Another doesn’t quit till they make $50,000 a month, but then they can’t seem to make much more than that. Everywhere in life we hit limits where it takes extreme work to move further, and so it is with day trading. We reach a point where making a bit more money requires what seems like an exponential amount of work, and so we get stuck (unless we find a different way of doing things). The personal ceiling is mostly psychological, but it is also just life. Sickness, relationships, deaths, vacations, natural disasters, personal disasters, babies, drama, emotions…there are loads of things that can divert us just when it seems like we’re getting on track. Does it always seem like you get sidetracked right before you think you’re going to have a breakthrough? That’s the personal ceiling taking on its many forms.

To break through it means a lot of work and often personal sacrifice…and for what, more money? To some it’s worth breaking through, for others it isn’t. Beliefs and values also contribute to the personal ceiling. Money has never been my motivator for trading, rather my motivator is freedom. So I trade for a few months, and then usually take a few months off. Money isn’t the only things day traders seek…they may only day trade so they have the time to pursue other passions. While some people come to trading for money, most of the day traders I know do it because they don’t want to spend 8 hours in an office and two hours commuting in traffic. Quality of life is more than making money–that’s my own belief of course, and contributes to my own personal ceiling in terms of money. In terms of freedom though, the ceiling has been smashed wide open.

I tend to make as much money as is required to maintain that freedom, since that’s my motivator. What’s the typical personal ceiling? Day traders I know typically make between $40,000 and $300,000 per year, working for themselves. Once you can make $40,000year consistently there really isn’t a reason why you can’t make $60,000, or $100,000 or $200,000. And yet the fact remains, people find a spot they are comfortable at and typically stop there. To increase your income you’ll have to progress very slowly, marginally increasing position size. Try to jump income levels too quickly and your emotions are likely to get the best of you, leading to a backward slide. The personal ceiling is a conceptual, but a very real thing. Day Trading Market Ceiling. There also a Day Trading Market Ceiling.

A successful day trader (not an investor, though) will eventually get capped out, as the market simply can’t accommodate an infinitely increasing position size for a particular strategy. To make more the trader either needs to alter the strategy, or also trade something else…and this may or may not work. Change one thing and you can’t assume all else will stay the same. To attain the returns discussed in the “How Much Day Traders Make,” multiple trades are made each day. Trades are likely only lasting a couple minutes. While multiple-millions of dollars worth of stocks, futures or currencies may change hands over the course of couple hours, day traders have precise entry points. Therefore, position size is limited to the amount of liquidity (volume) available at the exact moment a trader needs to get into and out of trades. Investors, hedge funds and mutual funds can accumulate or dispose of positions over weeks, taking advantage of days or even weeks worth liquidity. Day traders don’t have that luxury. It doesn’t matter if a stock trades millions of shares a day; if there is only 100 shares available when they need to take the trade (based on the strategy) that’s all they get. That’s an extreme example, but at any given moment there isn’t infinite liquidity available–there is what there is, and that means there is a limit to how big of a position you can accumulate and dispose of when your strategy calls for it. Based on personal experience, in day trading forex I wouldn’t be comfortable taking more than 5 standard lots on a day trade. Some may take more, most traders would take way less. Taking a larger amount would mean significantly increased risk of slippage or partial fills (you end up with the whole position on losing trades, but only partial positions on some winning trades). Possible gains attained by taking a larger position are offset by these negative factors.

At 10:1 or 15:1 leverage a forex day trader–using a day trading forex strategy similar to mine — may cap out at around a $50,000 to $75,000 account (including leverage, that means trading close to $1million). Beyond that, they may find little additional gains, unless they alter their strategy, take longer term trades or stagger their entries and exits at various prices. Changing a strategy to accommodate a larger position isn’t a bad thing, but it takes additional researchpractice time…and is it worth it? Only each individual can answer that for them self. In the ES futures market I cap out at about 10 contracts, and that only requires a $40,000 to $75,000 account (maybe even less depending on how much you risk per trade). There is no reason to trade more in my opinion. Could you day trade more contracts? Sure, you could probably get away with 100 contracts some dayssome trades…but why? It would take a long time to work up to carrying those sorts of positions, and even trading a few contracts can produce a good living. The same goes for the stock market. Even in a very liquid stock or ETF like the SPDR S&P 500 (SPY) you will hit a limit on how much you can effectively trade on a short time frame. It may be a big limit, but you do hit it. To see the minimum amount of capital you need to day trade, see How Much Do I Need to Become a Day Trader.

The bottom line is that you hit a limit on the amount of capital you can utilize effectively, and beyond that your percentage returns will likely decrease. For example, it’s much easier to make 10% a month on a $20,000 account than it is to make 10% a month on $20,000,000. That means day trader tend to withdraw all proceeds over and above their “efficient capital limit.” So a $50,000 day trading forex accounts stays a $50,000 account and monthly profits are withdrawn and spent (like any other job) or allocated to something else. In other words the account doesn’t keep compounding indefinitely, the trader nor the market can withstand doing that…there are ceilings…psychological, natural (life) and structural (market). Expanding Your Profit Potential. Unless day traders do something outside of day trading–such as investing some of the proceeds (fewer market ceilings with investing) or starting a business–they are unlikely to make the millions a year they are dreaming of. For most day traders making $500 to $3,000 is a good day….that seems to be the ceiling for most traders I know. Some days are higher and some days are lower. Factor in some losing days too and making $50,000 to $200,000 per year day trading is a more reasonable expectation..if you’re good.

Save some of that and eventually having more than a million dollars in assets is a possibility…just like any job. The one thing that is a big advantage with day trading is that it is possible to have huge days, weeks or months that bolster your income. While some jobs pay bonuses, it is pretty rare in the employment world to make $600day on average and then all of a sudden have one day where you make $10,000 or $25,000. In trading that can happen, for example when the market has a massive move that is suited to your strategy perfectly. These events happen in day trading, maybe not very often, but when they do they provide a big opportunity to put away a nice big nest egg for a rainy day. When I was younger I thought day trading was the only way to trade the markets…”Screw investing!” My views have changed as I’ve gotten older. Every day trader should invest, putting away for a rainy day and developing their trading skill set across longer time frames. Unlike day trading, investing is less capped. You can buy every share for days on end if you feel like it (assuming it suits your investment strategy)… hell, you can buy the whole company. Warren Buffett is a great example of that. If you’re a day trader, in additional to day trading and investing some of your profits, also create another income stream. It doesn’t have to be trading related, but have another income stream . If you go to any wealth building seminar you will undoubtedly hear them say to develop multiple streams of income, and passive streams of income (like investing in stocks or real-estate, or collecting rent from your real-estate or dividends from the stocks you own). Quite possibly you started day trading to provide you with some extra income! That is great, but why stop there?

As you generate more capital, look for places to put it where it can generate more money. The more income streams the better. If you are looking for some investment strategies to produce another stream of income, here are some ideas: CAN SLIM Investing Strategy – Screening, Entry and Exit Methods: The CAN SLIM investing strategy seeks out growth stocks with solid fundamentals and strong price momentum. Top Trader’s Magic Formula Investing Strategy – The Magic Formula is an investing strategy designed by Joel Greenblatt, a professor and former hedge fund manager. According to Mr. Greenblatt, the strategy averaged returns of 30%year (our research revealed a lower but still impressive number). How to Find Good Dividend Stocks to Invest In – Learn how to find good dividend stocks to invest in by quickly filtering through available dividend stocks for ones that offer a great yield as well as capital gains potential. Day Traders and Trading Products. The more capital you have the harder it is to find places to put that capital to work. This is why large hedge funds typically have lower percentage returns than individual traders. It’s comparing apples to oranges.

Large funds can continue to take on more capital though because their trades are typically longer-term. Shorter term funds may accept additional funds by invite only. Day traders typically don’t trade for other people because once successful they don’t need to…there is no advantage. If a day trader has a $50,000 forex account (and that is their “efficient capital limit”) and can make 20% a month, accepting more capital doesn’t do any good. Returns will likely drop and even if paid a percentage of the profits on the additional funds it may not pay off. If the day trader only wants to trade up to $50,000 (remember it’s leveraged), the only reason to accept outside capital is if they have less than $50,000 themselves. But it only pays to accept capital up to your “efficient limit.” For each trader and strategy this will be a bit different. What about mirror trading (where other traders copy a pro trader’s trades)? Well, if I feel I’m maxing out the positions I can take (up to what I think the market can accommodate), why would I want hundreds of other people punching into the market at the exact same moment as me? Talk about slippage (for the people mirroring, not for me). It works for some strategies, not for others. And if I declare my day trades in advance, hundreds of people may step in just slightly ahead of my order, preventing me from getting in. For these reasons a pro trader may find that providing signals may not be worth the problems it causes. For some people it may be worth it…especially if they aren’t actually taking the trades themselves (they are just selling you a product but aren’t actually traders). So the seemingly simple “mirror” or “copy” trading networks that are popping up all over the place aren’t without major problems either. That said, mirror trading and providing trade signals works much better with investment strategies, because a few cents difference in execution (between the signal provider and the people who receive the signals) doesn’t matter on a long term trade.

If a day trader wants to make more money they either come up with more strategies (but then there is the issue of having the time and mental focus to implement them all…and we still face the ceilings) or they come up with a way to produce income outside of trading. If they love trading, this may involve writing books, selling courses, speaking at conferences or starting a website or chat room. In the real world developing multiple streams is part of personal finance 101. Everyone should have multiple streams of income. Even if it is just investing in some dividends stocks. The secondary income doesn’t have to be trading related though; any source of secondary income is good assuming it’s efficient and you enjoy doing it. Final Word On Day Trading Millionaires. Interestingly, day traders with the highest returns can’t utilize a lot of outside capital. There is both a personal limit that each person feels comfortable trading, and there is also a physical maximum that each day trading strategy and market will reach. On short-term trades, that limit isn’t that high. At a certain point taking a larger position size will actually start reducing returns. This is what we can call the efficient capital thresholdlimit. Once a trader hits their limit it’s pretty common for those traders to offer their knowledge to others.

Some are skeptical of this: “If you make so much day trading, why are you teaching others, and not sitting on a beach somewhere?” Well, I have done that. I have spent an entire year on the beach and was bored out of my mind. Sitting around doing nothing is not my idea of a fulfilling life. As humans we need to do something…at least the ambitious people. Teaching others a skill is just a method of creating multiple streams of income—a practice encouraged in most personal finance books you’ll read. Also, helping others has a lot of benefits…it adds a positive and personal element to an industry that is tough and solitary for most day traders.

If you want to day trade to make millions a year, you’ll likely be disappointed. Very few day traders, or even people in other professions, make millions a year. It takes more than just being great at something to become rich ….and becoming great is a lot of work in and of itself. Generating wealth also requires a lot of personal discipline outside of day trading, such as not spending everything you make. If you want to really make a lot of money you’ll probably have to establish multiple streams of income and invest some of what you make. If you just day trade you can become a millionaire over a number of years…but only if you save, don’t rack up debt, and invest some of your proceeds…just like people in normal jobs. And doing all those things isn’t easy either. Want to Know How I Trade? It’s all in the Forex Strategies Guide for Day and Swing Traders eBook. More than 300 pages of forex basics and strategies that build your skill step by step, providing a clear cut plan to successful trading. 140 . wrayjustin Trading Pennies for Dollars FXMarketMaker Professional Trader Hot_Biscuits_ Models and Bottles spicy_pasta RichJG Financial Astrologer El_Huachinango MOD finance_student Prop Trader AutoModerator » the front page of the internet.

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