Please allow me to introduce myself... my name is Michael J. Huddleston. I know exactly what you're wondering right now. Yes, in fact, most have wondered the very same things and many Forex Traders find themselves pondering precisely the same thought...
What do I need to do to build wealth in Forex Trading?
I've read and met so many individuals in my 18+ years trading experience and heard the wildest and quite ridiculous expectations from some of the most charming and sincere folks... and what have they gone on to do? They joined the grave yard of the quick and the dead.
So you want to be wealthy, eh? Well this has to be individualized for it to matter to you personally. What is wealthy to you? One million? Ten million? 50k consistant profits monthly? What ever you determine for your personal taste or definition... it needs to be personal. Many times new traders try to force themselves into molds they never were intended to be. You have to be a free thinker... determine your own goals and risk parameters. This is not a team sport, nor should it be a "hobby". This is a risky business and the grave yard for fools and the lazy has an ever increasing appetite for the next one in line.
So with the gloomy side already touched on, let's discuss how one might go about building his/her bank roll into "that wealth milestone".
First let's be honest:
If you are going to gamble and not put in the time this business requires to understand it and yourself, save yourself the time and misery... flush your money in the toilet right now... or better yet, give it to a worthy charity. I say this because you can overleverage a demo account and build a fantasy about how big you could (and in your own mind will) start a real account with five thousand or ten thousand dollars and suddenly own the world.
Real money brings on a whole new level of emotional attachment to trades. If you think not... refer back to this post after the first trade execution when and if you decide to go to real money.
Demo 50k yourself into a pipedream:
If you have a demo account and most offer a balance of $50,000 to play with... do not use this as a means of building your expectations. Only leverage what you actually have to risk in real dollar terms. Brokers want you to get used to spending hours at your day jobs on the boss's timecard spending monopoly money in Forex... when you get lucky and hit it big on a demo trade, this will trigger all kinds of warm and fuzzy fantasy chemicals into your blood stream. Once you open a real account... your frustration and haste to leave the rat race will have you programmed to overleverage your real account and like 90% of new traders... blow the account in the first 30-90 days from depositing the initial capital.
Hello??? My gut tells me you probably have already been there and done that...
Alright already... So what do you need to build wealth?
You might think ten thousand is a good start or perhaps twenty-five thousand or maybe only the real big dogs only make it big starting with fifty thousand as a starting account? Well if you are new to this business and you open with balances like these... you again are joining the ranks of the quick and the dead. You will most definitely lose a large percentage of that large beginning balance... and you will without a doubt allow emotions to enter the trading.
You will overtrade (trade too frequent, with no real reason to be in the trade) in a mad dash just to get back to "even". Afterall, you are perfect and this was your only mistake right? Getting back to "even" you will show your friends at work and family how smart you are... but you will not accept losses. You will abondon all control and you will click on the entry button over and over with hopes of finding that lottery win in trading to get your losses back. Your trades will enter the Panic Zone, where every pip fluctuation will appear as the beginning of the next 100 pip swing and you simply must be on board to earn it all back, and earn it back immediately. This will compound the losses and your account will pull a hat trick and go.. Poof! Leaving you feeling busted and disgusted.
The Shoestring Secret...
You can develop proper risk control and trade management with as little as one hundred dollars. It matters not how much you earn in the first stages of your trading... it's your consistency that is what is golden. Do you trade with real technicals or on a gut feeling or desire to be in the action? Resist the "gambler's" approach or you will see your account erode and your dreams melt away.
A trade is a trade and it is the same outcome whether you leverage one dollar, fifty cents or one thousand per pip. If you don't know what you are doing... whatever you choose to bank roll your live account with... it will disappear no matter what you begin with. So start small and on a shoe string. One hundred dollars is nothing, most could probably find things around the house to sell to get this money together and fund the account. Try doing that for twenty five to fifty thousand account funding!
You want the majority of your trades made on equity earned in the market... there is less emotional attachment to this versus your hard earned starting equity. So begin small, grow it steady and slow if need be. It is far easier to except a loss on realized profits than from out of pocket funds. When you begin live trading this will make more sense to you... trust me.
Oh bull... I can't get rich on a hundred dollars...
Actually, you can build any amount to a fortune if the proper conditions are met. The magic of compound interest is remarkable. If you have day dreamed at your desk job or stared blankly into the TV at night, pondering what it must be like for the big dogs who trade huge lots and harvest 500 pip trades and thought you were never going to get to that level... think again.
Imagine what patience and proper trading can do over time as you develop yourself as the Forex Trader you aspire to be? Consistant gains on a monthly basis is your goal; as long as you focus there and control risk... money will deposit into your account.
So easy a caveman can do it...
Okay, we all have read their posts or talked to them in a chat room... some hot shot 20 year old still wet behind the ears who has mastered the fine art of demo trading and thinks they have discovered the keys to Solomon's mine because of it... I have a reality check for you; see the first portion of this post. Their grave stone is being prepared already.
Remember demo trading is precisely that... demonstration only. You can't take yourself to dinner on Demo profits and further more, try buying your spouse that new piece of jewlery on that last Euro/Dollar demo win!
I don't understand, don't I need 2000 pips per minute to get rich?
This unfortunately is the biggest barrier to new traders and forces many to throw in the towel long before they ever really understand how this all works. You do not need unrealistic pip wins, nor do you need to over leverage your live account to get wealth from trading.
Think about this...
Forget trying to double your account every 30 days! If you could get six percent... yes a measly 6% monthly on your account, over the course of a calendar year you would more than double the beginning balance!
Imagine doubling the account over 5-7 years annually... it can grow to millions and it never needs to assume radical risks per trade!
What do you need to do to make 6% a month?
Well if you could find one trade per week... yes one trade, not thirty four from Sunday night to Friday afternoon... just a single solid trade netting a measly 20 pips. Your risk would be limited to 2% on the trade and that's it.
Even an overtime desk jockey could find a twenty pipper between Sunday to Friday if they were looking for it. The best part of it is you can lock in the twenty pips in proper trade management and allow it to run and still follow your wealth plan.
Overtime - Percentage Returns:
Eventually you will learn the flows and mechanics in the Forex markets and your trading will permit more risk tolerance... and this will allow greater returns in percentage.
Imagine growing an account to one million dollars and still making 6% a month then! Who's a big dog now?
It is not a race, remember that. It's your trading journey, pace yourself and enjoy the walk.
Hundred dollars seems too small but short on capital? For the new traders that are willing to deliver pizza if need be:
Fund yourself a $1000 account and trade it properly and this might happen to you...
Year 1: 1000 turns 2000
Year 2: 2000 turns 4000
Year 3: 4000 turns 8000
Year 4: 8000 turns 16000
Year 5: 16000 turns 32000
Year 6: 32000 turns 64000
Year 7: 64000 turns 128000
Year 8: 128000 turns 256000
Year 9: 256000 turns 512000
Year 10: 512000 turns 1,024,000 <= Big Dog Status!
All from a shoestring account, one trade a week profiting on twenty pips at 2% or less risk. It is simple and that's precisely why most don't follow it. It doesn't answer the get rich quick for everyone... and that is why the losers carry the title. Ask yourself this... where are you after the first twelve months, if you're not finding success, revisit this post.
There is hope for the new trader and his/her path need not be unfruitful. Looking at the outline above, at what point would you feel the desire to go professional... assuming you were consistantly profitable? It can be exciting can't it?
You have no excuse now. You are armed with a simple wealth plan. It covers all the majors and the minors are timing trades. I will highlight trades and methods in this thread to show you don't need a lot of pips or leverage to make it big in this game.
Inner Circle Trader's Introduction Video Series:
I Know Exactly What You Are Looking For
Forex Risk Management
Contending With Trade Psychology
The Excellence Of Execution
Trading Support & Resistance
Inner Circle Trader's Core Concepts Introduction
Handling Losses & Inevitable Drawdowns
Trade Forex Like The Insiders - Secrets To The COT Report
Major Market Analysis
The Search & Destroy Market Profile
The Reversal Market Profile
Correlation Concepts - Inner Circle Trader's Smart Money Concepts
Optimal Trade Entry - Inner Circle Trader's OTE Pattern
Fibonacci Concepts In Forex
Trading The Figure
How Professionals Use Indicators
Trading The Key Swing Points
Exploring The Asian Range
Trading The Asian Session
Trading The New York Session
The London Close Tactic
The Power Of Three - Accumulation - Profit Release - Distribution
The Judas Swing - Inner Circle Trader's Exclusive Market Maker Swing
Short Term Trading - Inner Circle Trader's Short Term Trading Model
The Trader's Trinity - Inner Circle Trader's Exclusive Overbought - Oversold & S&R Concept
High Probability Price Patterns - Inner Circle Trader's Collection
Scalping 20 pips Per Day - Inner Circle Trader's Method
Inner Circle Trader's How To Capture Explosive Forex Profits
ICT Tools & Resources:
* For a complete list of tools seen in this thread consider this Zip file: [ICT MT4 Collection]
Instructions: Download the zip file, Extract to MT4 platform of your choice under the Experts\Indicator folder. Restart MT4 find tools in Custom Indicator drop down tab. Enjoy!
Thank You Babypips for making us the first thread to hit 1,000,000 views! I wish to thank you all for allowing me the extreme pleasure to share with you my life's work. I do not know how many thousands of hours I have spent in developing these concepts and ferreting out those concepts that produce consistently. There is one thing I know for sure and it is this... complete Babypips School for a primer and then graduate to this thread. In my opinion, you won't find a better starting point than right here. The tools and concepts are geared specifically in mind to get your trading in sync with the "Smart Money". I will be eagerly awaiting those who find this material and their stories as a result of my contribution to the history pages of Forex. I am closing this chapter but the story is far from over... continue the education & journey in my new Babypips forum thread :
ICT's Millionaire Traders Guild
Inner Circle Trader's Babypips Bio ::Click Here::
Please share your success stories with ICT: InnerCircleTrader@gmail.com
I Sincerely Wish You Good Luck & Good Trading!