The forex is a powerful, amazing market. I truly believe that more money can be made faster in the foreign exchange than any other market in the world. In fact, one of the keynotes of my business is to prove to people how they can make more money in the currency markets in 1 week that most people make in the stock market all year long.
But there is just one problem – the forex can eat you up and spit you out just to eat you up again. And it does this to the majority of traders.
So how in the world can you survive and make money in such a market?
I just answered my own question. First, you have to survive.
What I mean by this is that the primary goal of trading – especially as a beginner – must be to protect your trading account. You absolutely cannot take massive losses!
Too many traders get caught up in the prospect of doubling their account in just a few weeks. But to double your account that quickly requires that you risk all of your trading capital.
And your trading capital is all you have as a trader. You can be the most successful, experienced trader to ever enter a trade, but if you don’t have any money to trade with, you are absolutely worthless as a trader.
So before you worry about making big money, you first need to worry about how to survive.
And exactly how do you do that?
No, that does not mean risking more money each trade. It means thinking about the big picture. The next trade you make should be the stepping stone to the next trade. Don’t load up on one trade thinking it is going to make you rich. Even if you get lucky and make it through the first trade (which is rare), it won’t work twice.
You need to start off risking a small amount per trade – around 2% of your account. Take it slow and easy. Survive first, then you can grow rich in the forex.