How Ordinary People Made Millions Trading Forex?
How many times, you must have heard this oft quoted statistic that more than 90% of new traders fail and give up trading in a few months. Only a few lucky ones survive in the long run.
Yet, still daily millions of ordinary people around the globe wake up, turn on their computers and try to make a living trading the financial markets online. Do you want to join them?
The interesting fact is this that the same statistic of failure exists in other businesses like restaurant business. New restaurants open on daily basis; most fail. Only a few succeed.
But despite the high probability of failure, still the possibility of making it big never stops people from starting new business ventures. The same thing also applies to forex trading.
Kathy Lien is a professional forex trader. She is a great writer too and has written many books on forex trading. In one of her books, Millionaire Traders, she tells the story of 12 ordinary people who beat the Wall Street at its own games.
These 12 stories are remarkable and inspiring. The rag to riches story of Hoosain Harneker, the 10 pips a day trader is especially worth mentioning. He lost almost all his money in a failed business partnership.
After that he had no money. He was heavily in debt and did not want to borrow more. His best friend told him to trade forex. His friend emailed him the forex trading system that he used to make pips daily. The forex trading system was based on simple moving averages. Hoosain did not have even a few hundred dollars at this stage and did not want to borrow from his friend.
Hoosain took six months to save $1000 to open an account so that he could trade forex. But during those six months, he practiced and practiced the forex system on the demo account.
His wife was not sure about his success. He promised his wife that he would never trade forex again if he blew up the $1000. All the 12 people in the Millionaire Traders had blown their accounts in the first few months of trading except Hoosain.
Hoosains advice to new forex traders: Begin by practicing on your demo account and double your amount three times in a row. Dont trade live before that. Paper trading gives you the confidence to face the daily turmoil of the forex markets.
Now many new traders jump straight into live trading without practicing on their demo accounts. They make consecutive losses. Consider forex trading to be difficult and give up.
Forex trading needs a lot of discipline. You can learn from the success stories of these 12 ordinary but remarkable people who had the discipline and determination to make it big.