There are scores of inspiring stories of young traders from the middle of nowhere who start out in the industry and make it big with millions in returns almost overnight. While that’s the part the public sees online and in the news, the success is not as simple as a quick trade and booming returns. It comes from dedicated work, daily trading and continuous learning from the educational resources of these hard earned achievements. Even so, these types of success stories aren’t your everyday achievements and are not always realistic expectations.
On the other hand, you also get the types of temporary successes where a trader hits the jackpot for a few days and subsequently loses everything due to an overeager new-found confidence. When it comes to trading – and most other aspects of life – luck is not usually on your side to the extent of immediate success. Instead, your success depends on skills and educated trade transactions.
Achieving success through dedication and focus
A wise method to start your trading strategy is to consider how you would act if the investments were the equivalent of your own business. You would plan every move, take time to consider what’s best and work systematically to avoid foolish mistakes. You would organize your moves according to goals, profit targets and a budget while monitoring progress. Your forex trading strategies require the same level of meticulous planning and organization in order to be successful. Dedication and focus will allow you to achieve your goals before luck will.
Googling topics like “forex monthly returns” might give the indication that it’s possible to make millions each month, and while this may be possible in some cases, it can often be accompanied by some kind of catch. Even traders who are making $1m a month – like the big financial news covers you see every day – might not even be making much profit compared to the amount they are spending to make that kind of return. Many of these stories often carefully select the information they reveal, sometimes with the intention of fooling amateur traders who don’t have a good sense of realistic outcomes and potential risks.
For traders just starting out, it’s safest to begin with a demo account to get the feel of the industry and develop trading strategies and techniques before diving straight in with a large deposit and all your capital. If you go all in based on the success stories in the news, you risk not only losing all your capital but also putting yourself off trading entirely, while there could be many opportunities for high returns and large successes in the future. Even the most popular Wall Street traders don’t share their many failures – it happens to the majority of investors.
The reality of trading
Traders often make their money through a combination of strategy and careful financial management. Unfortunately, this does not eliminate the reality of losses and failures in this industry. A realistic return average in 2018 for professional forex traders is between 1% and 10% of what they put in each month. As a new investor, your focus should be extensive learning and studying educational resources on techniques and methods.
There are unlimited tools and analyses available on the trading techniques of professional investors. Before venturing into the trading industry, it’s best to learn as much as possible in preparation for the possibilities and risks that are likely to come your way in the future, especially if you want to avoid losses and increase returns. Rather than rely on luck and the sensationalism of the news, learn to rely on your self-made skills and abilities in the industry.