Being rich is defined by money. You can be suddenly rich, but if the expenses are on the higher level then money will last likewise shortly. On the other hand, wealth is defined by time. Your wealth is defined by how long your assets will last without you working. In this way, a wealth building strategy must be built on relatively reliable streams of income. A reliable stream of income is again most of all based on consistency. The most relevant question will therefore be: Is it possible to create a consistent stream of income from Forex trading?
Wealthy individuals have their focus on passive income streams. There is a clear understanding that the more streams of income can multiply the current assets, the wealthier they become. Let us relate this situation to any given Forex trading strategy. The question will then be: How can you transform your trading strategy into a Forex trading income stream of assets? The answer is quite simple. Namely, by making sure the strategy is performing at the same continous level.
We understand that an income stream of assets must be both consitent and predicatble. The first step is therefore to apply cosnsitency to the Forex trading strategy. Furthermore, we also understand that a trading strategy can vary based on daily market conditions. However, such conditions must either be clearly implemented or eventually eleminated (not traded) from the strategy.
We can achieve consistency by applying a sustainable level of clarity. The level of clarity must include exactly when a market entry shall take place. At the same time it also implies at what market conditions not to participate in. In addition it is also a good idea to define the external factors affecting the strategy. This means, how much volatility, and what type of volatility, should be allowed to affect the strategy. Independence is a key-word affecting the level of consistency.
What does it mean to impose the strategy with a maximum level of independence? In our opinion it means to carefully consider the type of volatility allowed. On one hand, fundamental events are causing one type of volatility. The sudden price peaks are filtered out by the strategy. However, we like to take benefit if the increased volatility that follows in the wake of such events. On the other hand, the “real market movments” is made by supply and demand alone.
Creating a consistent Forex trading strategy takes time. However, allowing consistency to create a Forex trading income stream is likewise rewarding in the end. Therefore, your trading can clearly be a part of your future wealth building strategy. It will however require hard and pragmatic work. But when you will have the result you will also have a pipeline of incomeing assets that supports your wealth. The size of the pipeline will again be defined by the performance of your trading strategy.