by: Andrew Daigle Forex trading is fast becoming the top method of
making money on the internet and plenty of average people are trying
their hand at becoming millionaires. For most people, forex trading is
a much needed source of a second income, to supplement their current
single income from their main profession. However, the true potential
to become very wealthy is not tapped by most such investors and they
earn mere pennies on the dollar, compared with what they could be
earning. While everyone has their own forex currency trading system,
this will be in proportion to your risk appetite and will only bring
the returns that you strive for. While there are many ways to invest
your money in currency, most people play safe by either investing small
amounts or spreading their money very thin across the various
currencies they are invested in. This makes for a very small return but
practically no risk potential, since the bases are mostly covered so
that if one currency depreciates, the other appreciates and the losses
are minimal. However, clearly this will never make the forex trader a
millionaire. Life is short, and most forex trading millionaires made
their money fast off the forex market. These individuals are generally
highly leveraged, because they know that money makes money, and the
more money they invest, the greater the risk and the greater the
potential reward. Also, betting on unlikely currencies is risky and can
have a huge potential upside. So what exactly will leveraging yourself
mean for you? You can start with a portfolio, meaning that you put your
investment towards buying a part of the forex trading. Then, you buy
shares of the forex trading the world over, depending on what countries
appeal to you. The prices of these shares may rise slowly to increase
your portfolio, and you are still playing safe. Once your total
portfolio value goes over the 5000 dollar mark, you as a forex trader
can apply for something known as a console, which now puts you in the
position to act as an agent for others. At this point, you can process
exchanges for small investors who want to buy and sell currencies
through you. For each transaction processed, you will earn a fee of 6%
and this can roll into your portfolio, increasing further, making your
status as a forex trader more credible. Other than an unlikely event
such as a war or natural calamity, nothing on the forex market will
give you a sudden unexpected windfall. Do not expect to become a
millionaire over night. You will have to plan and strategize, and most
importantly, leverage yourself, to truly make a lot of money. The forex
market will generally move like the stock market, in small digits and
only when you have plenty of money spread out on the forex market do
you stand a chance of making a great deal of profit. While this type of
trading is not for the faint hearted, experience in forex trading will
bring some confidence to your forex trading strategy, especially as you
learn which systems work for you and which don't. As your level of
confidence grows, the process will seem much less daunting. However, it
is great to be cautious and be sure of any risks you take. That said,
do remember that millionaires are always highly leveraged in the forex
market – take calculated risks.
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