Forex and futures trading is highly leveraged and therefore a lot of money can be made trading. Some professional traders make upwards to nine figures a year—the reality, however, is that most do not. The traders who are able to reach the upper echelons have done so by working very hard and closely adhering to the rules. Treat your trading like a hobby, though, and you will get hobby results.
If you plan on working hard, the results will come. This opportunity could be there for you if you are willing to put the time and effort in making trading a high priority.
Before getting ahead of ourselves, if you are relatively new to trading you should not be risking any real money while you are in the process of learning to trade. Trade on a demo platform and learn the methods outlined in this educational course. A demo account can be obtained for free here.
Although the sky is theoretically the limit as to how much you can earn as a trader, you need to first learn how not to lose money. I have outlined the main objectives in order of importance that you should have when trading the markets.
I. Capital preservation at all costs (lesson 1-2)
II. Placing good trades (Lesson 3-4)
III. Marking large profits on your trades (Lesson 5-6)
This entire educational course will aim at covering the above objectives in depth and will provide you with clarity and examples for your understanding.
It is important for you to follow this process: the three steps are there for your own long-term benefit. Skipping steps and trying to get ahead prematurely will most likely ensure your failure as a trader.
As with the classical Trivium taught in medieval schools, the first step is acquiring knowledge (module I), the second step, understanding (module II), and the third, step wisdom (module III). And wisdom in the markets comes with large profits.
In the first module “knowledge” you will learn how to preserve your capital. By doing so, you will need to learn about money management, although money management alone is only half the equation of money preservation. You will also need to learn how to read the language of the markets and develop a system that is mathematically designed to make you money. This first lesson will focus on money management while the second lesson will teach you how to read the language of the markets (“the price action source code”).
Within money management, there are a few concepts that are imperative to preserving your money with a statistical edge: risk-to-reward ratio, position sizing, and trade accuracy.
Together with price action setups you will identify an edge with high probability. As we will discuss, with such systems, you do not have to be right with all your trades to be consistently profitable. In fact, you can average out to be right only 45% of the time and still make money consistently.
To increase accuracy and your chances of being right you must be able to read the markets with a great level of understanding; that is, knowing where to enter and exit trades, and then to have the wisdom of knowing when not to trade. This is the winning edge, but it does not come easy.
Have you ever wondered why in most world poker tournaments it is always the same players, tournament after tournament, at the last table?
Unlike the slots or roulette, poker is a game of chance with skill involved. These poker players accept the probabilities of the game, they know how to read their opponents, and they have the wisdom to know when not to be in a hand. See the similarity with becoming a successful trader?
In the final analysis, it is your knowledge of capital preservation, your understanding of placing good trades, and the wisdom to know when not to be in the markets that will get you to became the successful and profitable dream trader that you want to become.