Month: August 2024
Bruce Kovner was a NYC Taxi Cab Driver who didn’t have money to trade forex. So in 1977, he borrowed $3,000 on his credit card and started his journey trading forex and futures. He eventually made $11 Billion.
Many people don’t know his name. But he is a legend of forex trading who started with no money and ended up making a true fortune. This is a lesson to all those who procastinate and think that trading forex requires a lot of money. What this story shows is that anyone with determination can start trading forex with no money and end up making a fortune. Now, don’t take me wrong! This does not mean that you and me can repeat the success story of Bruce Kovner. What it means is that if we want we can also make a mini fortune something like a few million dollars in the next few years trading forex.
Forex is a huge market. Everyday something like $3 trillion get transacted in the global forex market. You too can take part in this global forex trading game and if you are really good at it claim your share.
How do you play a game? With determination and will power to win the game. This is exactly how you should also play the forex trading game.
Now, as shown by Bruce Kovner, you don’t need a lot of capital to play this game of currency trading. You can start with only a few hundred dollars and over time compound that small amount into a huge fortune.
However, what you need is the right methods and the right forex trading strategies. This requires determination, effort and learning on your part. But one thing is clear money is not important in starting forex trading.
What is more important is your mind, your discipline and your determination in winning the forex trading game. Trading is all about discipline and right strategies.
Let me give you another example of Richard Dennis. Richard Dennis is another trading legend famous for his Turtle Traders. Whatever, once upon a time, he was a small time trader. He started trading commodities with only $300. Guess, how much he made eventually in the next few years? He made $200 million plus. What these stories illustrate that all great traders had started small but they had the determination to succeed big. You too can follow in their footsteps. You don’t need money to trade forex, you only need determination and the right skills! Good Luck!
One of the most important aspects of Forex trading is Forex money management. Money-management tends to be one of the more difficult concepts to grasp even for the most experienced Forex trader. Even understanding the basis basics of Forex money-management can help your Forex trading go along way. The importance of money management has been the focus for educators that teach forex trading. Most would think that the main focus would be on technical analysis and understanding the importance of economic events and the news calendar.
The first and most basic of money management decisions will be what is the account size? When funding your forex trading account the funds that are deposited in the account should be considered to be risk capital. The decision and determination of the account size is very subjective and is a very personal decision so one should look very closely look at his or her personal financial situation to make this determination.
Forex money management techniques should also be applied on a per trade basis. The value of each trade should be a certain percentage of the account equity. Once again this would be determined by each individual Trader as to the specific number but it should be within their comfort level. This is where discipline comes into play. The tendency is for traders to increase their trade amounts depending upon their level of confidence in a particular trade.
Trade management is a critical aspect of Forex money management. Knowing when to exit a trade especially those losing trades is very important for account preservation. It is also important for the Trader to recognize and to let winning trades increase. Even though this may be common knowledge it is one of the hardest habits for any Forex trader to break.
The use of leverage in for Forex is also an important Forex money management decision. Leverage while it can offer many opportunities in the Forex market can also be something that can be detrimental to an account as well.
It is very important before a Forex trader begins to have a trading plan. Sticking to that plan and staying disciplined are also key factors in Forex money-management.