Many people go into forex trading and they slap down $1,000 into their account. They start trying to go for the long shot, the big money. They try to double their account in a week. It may work for a little while but in the end, they lose and lose, every time.
So they try again. and blow up their account yet again.
They wonder, “why can’t I make any money?” They often tell others, ” Forex is a scam! You can’t make money! It is rigged to put money in the brokers account!”
ALL BULL CRAP!
Look at McDonalds. A franchisee sets up a new location, hires all the people, goes through TRAINING, puts out his marketing material, and he is ready to go.
Does he try to charge $1,500 for a hamburger in hopes that one person will buy it for the BIG PAYOFF? NOOOOOO! He charges $1. Then he sells another for the chump change of a little one dollar bill. Over and over, he sells his hamburgers for $1. He often sells meals for $6 as well.
Some times, he gets the big payoff when a bus comes in with 40 starving teenagers. he may make $500 in just a few minutes. Is this, however, how he makes the majority of his money? Nope. The majority of his wealth is built $1 at a time. Over and Over.
Now when his business becomes successful, he may want to build another location. Now instead of making $1, he makes $2 instead. two location, each selling one hamburger equals $2.
Lets fast forward a few years. Now the franchisee owns 147 locations. Instead of making $1, he is making $147. This is a huge jump. It takes time to get there but the franchisee doesn’t care. He is looking 10 or 20 years down the road.
In order to succeed in forex trading, just like the McDonalds franchisee, a trader has do take small, consistent gains, over and over.
Lets say his account is $1,000 and he is consistently making a profit of $10 per day. 6 months or a year later, his $1,000 investment becomes $2,000. Now he makes $20 per day. The following year, his account is $4,000 and he is making $40 per day.
By the LAW OF COMPOUND INTEREST, in 11 years, if he doubles his account, each year, this trader will be worth $1,000,000!