Can you build wealth from Forex trading? The questions sounds more like a cliche than anything else. The world has seen many enough traders with the romantic mindset that Forex trading will make them rich. Thankfully it is not that simple. The first thing is; being rich does not equal to being wealthy. The second point is; in order to answer the question you must define what being wealthy really means to you! Lastly, and perhaps most important, how do you define success? At what point in your trading activity (or in life) can you state that you are really successfull?
What is your definition of wealth? We have surely heard about thousands of traders seeking material goods as a result of their prominent market knowledge. However, does that make you happy? Definitiely, these are abilities one could easilly refer to as a Forex trading lifestyle. But, what happens after this? What happens when the feeling of abundance and freedom is gone? Perhaps such feelings has never been there at all?
Those who conduct real wealth in their life has made an important discovery. By building real wealth, it is more easilly understood that wealth is not about money. The feeling of wellbeing, abundance and freedom becomes likewise important. Likewise is the feeling of growing success. However, concepts like success will never come to you “for free”. It has to be deserved. But, when the feeling of abundance is implemented, you are likely to accelerate your way to a wealthy lifestyle.
Hard work is still required to achieve success as a Forex trader. Furthermore, when sufficient market experience is in place you need to implement at least a likewise amount of discipline. In the long term perspective, perhaps you would also like to eliminate human emotions from your trading. If so, then you will want to implement your trading strategy, or part of it, as an algorithm. Whatever you choose to include in your trading activity, a trading strategy should include 3 major concepts. The first is a solid risk- and money management. On the top of this comes of course the trading strategy itself. These concepts need to be in place to work against success.
So, are you able to grow wealth from Forex trading? The answer is a clear yes. However, the answer must come with certain conditions. First of all a well proven trading strategy must be in place. The strategy must contain your likewise well proven abilities to manage the funds you have under management. At the moment you manage to maintain the strategy on a consistent level you can consider to grow a welathy lifestyle. In this case, Forex trading has given you the opportunity to build wealth.
When you start having abundance of your own assets is the time to consider a new level of money management. How are you going to maintain your own growth? Are you considering to reinvest everything into your FX portfolio? What then about the concept of “putting all the eggs in one basket”? Or, do you have a plan to create your own private investment strategy? No matter what you choose, keep onto your own building of abundance. It creates a new fundament that you perhaps haven’t felt before. Your wealthy lifestyle.
Tore Herbert Hoff is a professional Forex trader. He has a decade of experience from trading in the Forex market. included in this experience is building successful trading strategies, but also periods in “learning by mistake”. Life esperiences has therefore given a strong sense of discipline. It is just another example that the way for achieving success requires hard work. However, when you reach that point, the feeling of abundance is highly rewarded.