Can forex trading make you a millionaire?
But the main factor about day trading is that only a minority can make money out of day trading and the rest end up losing their entire capital in day trading. Below is the list of rules for the best stock trading:
- Rule 1:Never over trade.
- Rule 2:Always set a target and the ability to stop on time.
- Rule 3: Trade only when trading conditions are met.
- Rule 4: Understand market psychology.
Also, day traders need strong skills in technical analysis and fundamental analysis. Traders with big experience always analyze their mistakes and trade only when their setup is available in the market. If anything goes out of their plans- they close their trade and fix the losses.
One must understand that trade stocks are influenced by big players like hedge Funds, Mutual Funds, FIIs, DIIs, etc. They are market movers and market makers.
Read more about forex trading in myfxbrokers
Do not open a trade impatiently! If you start trading stocks the same way you trade fruits in the market, then no one can stop you from creating wealth. Discipline is a core element of any profitable trading strategy. And patience is a measure of quality. Most market participants lack discipline and patience. For day traders it is pretty clear that their strategies do not work every day. So, they accept market conditions and plan their strategies according to market conditions. He should never trade the money he needs. As a result, he may be left without money at all.
To choose the right strategy, you need to understand the difference between stock trading and day trading. Trading stocks is impossible without fundamental and technical analysis. The tactic of investing in stocks is to create long-term profits. And day trading is based on price activity and traders want to make money on the same day and they must exit the trade either at a profit or at a loss
It is quite possible to make a million dollars in about half a year on Forex. For this you need a little mathematics and, the most, the absence of greed.
Like many other traders, at first, I tried to make the most from each transaction, which often led to drawdowns, losses and drains. I realized that I needed to come up with some clear plan according to which I would move by increasing my depot. One of the traders said that it is enough to make 10-20% per day to have a good profit. But I decided to calculate how much I need to do the smallest % per day to get a million bucks in half a year.
Everything turned out to be simple:
We take an initial deposit of $ 1000.
If you increase it by 4% every day, then in half a year you will have $ 1,000,000!
(subject to reinvestment – that is, you will not withdraw profits)
Calculate yourself on a calculator
1 day: 1000 + 4% = 1040
2nd day: 1040 + 4% = 1081.6
And so on (if we count 25 working days per month), we get: 1 month – $ 2265
- 2 month – $ 7104
- 3 month – $ 19695
- 4 month – $ 54603
- 5 month – $ 145,564
- 6 month – $ 388,051
- 7 month – $ 1034482
