30 truths about forex trading that you must always have at the back of your mind.
It brings back old memories; 2007 was when I began my journey.
Immediately after college, my dad told me I needed the skill to keep on moving in this world.
He said education is more than the 4 walls of the classroom.
Then he arranged a tutor to teach me about forex trading.
I started trading at a very young age.
I started with Northfinance Forex Broker back then ..(I doubt if they still exist)
My mentor explained all the fundamental aspects of trading.
We print news sheets from forexfactory.com to prepare ourselves to trade the news every week.
Once the actual result is out we trade it immediately.
Sometimes we are faster and sometimes we are late. Funny kinds of stuff.
He taught me how to use RSI overbought or oversold, MACD, parabolic SAR. Just mention any kind of indicator. I learned how to use them well.
I graduated from my forex lessons ?…and I was very happy ?.
Not knowing my live classes just started in the forex world.??
I go to an Internet hub every day to trade, my dad deposited another fund into another broker called Marketiva, because Nortfinace broker claimed my funds were not deposited. That was harsh.
Anyways, I started trading on Marketiva. Buying and selling using 10,000 quantity. we call them lot sizes today in other brokers.
For the next 5 days, I was making money ?, my dad was proud of me. but my mum was scared that this is some kind of lie or some sort of scam, it is not possible to print money online.
The following week I made more money, she started smiling a bit.
Now I know I have the skill to make my family a millionaire.
My dad goes the extra mile to lend money.
YOU KNOW WHY? I told him we can print even more money if we have the capital to invest.
Because I believed in the oversold and overbought so well.
He borrowed the money. Thousands of ? dollars.
Did I blow it all? Yes ??. a story for another day.
I crashed ? all the funds.
I remembered dreaming of lot sizes and trying to enter for trades In my dreams and a lot of ? sleepless nights ???.
I remember I still did not give up. by 2012 I developed another method to beat the brokers in their game trading news event only, ranging from non-farm payroll, GDB, trade balance, interest rate, and so on.
By 2012 I had started learning to program on Java and Javafx so I Learned mql4 coding too.
With this knowledge of mql4,mql5 I could turn any forex idea and strategy into a robot that works on auto.
So, I decided to turn the news idea into a printing money machine robot.
I reinvested in forex, my dad looked for a way to lend money again from friends without my mum knowing. (I won’t advise anyone to borrow money from the bank to trade forex)
I made a minimum of 3k trading per trade while trading news events.
I started making crazy ? money. Printing money, but I made the silly mistake of not withdrawing the money, it was piling in the brokers’ account.
I built my account trading news to like 90k or so profit.
Now time to withdraw.
The broker said I can never withdraw the funds…????
You know why?
They told me I was not trading according to their rules.
I was shocked ????. Which rules?
I have never heard this before. My mentor never told me this.
The broker told me, my trades must not be closed within 1 minute or 2 minutes.
Trade must be opened more than 2 minutes before closing them back.
Woohoo???, I can’t believe my eyes.
All profit DELETED. Yea all profit has gone.
What did I do next?
Story for another day.??
I shared all that to make a point;
That I have seen the good, the bad, and the ugliest in forex trading. Over 14 years of experience trading.
And in this article; I will reveal 14 forex truths that you likely won’t find anywhere and in one place at the same time.
1. Forex is the same with other businesses where you buy and sell. Where you lose and win. Where you learn or quit.
2. Forex is not a quick-rich scheme although most people approach it this way.
But note: any business you treat like a quick-rich scheme will also treat you like a cool fool cos you could lose all your funds in a twinkle of an eye.
3. Don’t allow anyone to lie to you; the only strategy that works in forex is the strategy that makes money for you.
4. Forex trading is not the same with sports betting, binary options, casinos, lotto & other dice throwing games. Likening all these to forex trading & treating it as gambling is the beginning of financial sorrows.
5. Wait a while before you start telling everyone that you are a forex trader: friends, neighbors, family members, colleagues, relatives e.t.c.
Most people see forex trading as gambling & that you are taking money from the world without labor or working legitimately for it. Not knowing forex trading is called the “Zero Sum Game”.
6. Forex trading is not a do-or-die affair. It is not competition & you can’t compete with anyone.
7. Don’t quit your job immediately when you start trading your live account in forex. Respect the process, go to your job while you trade. You can continue doing your job and continue trading.
If your trading is affecting your job, simply turn your forex strategy and idea into a robot or expert or even a semi-expert that sends you a signal to your mobile phone while you go do your job.
I can help you turn your idea into a robot or semi robot.
8. Always take a calculated risk. Only God knows the future.
9. Your starting capital matters in forex. Why? I touched on that in my article; How to invest in forex trading. $10,000 is a good place to start.
10. Though; Money management is important. Your strategy is the ? key.
11. Leave your emotions on the bed, when trading forex.
12. While you trade forex, have another source of income. Always invest alongside offline business or online business.
Because your strategy may not be active every time. And I won’t advise you to force any trade. Can you make forex a full-time job? Let me answer this in the next paragraph.
13. Yes forex can be a full-time job if you are disciplined and serious about it.
14. Personal discovery is the best form of forex training along with what you learned from a real mentor and trader.
14. The fastest way to quickly know if your idea will work or not: Turn it into a robot or semi robot and backtest it with real data for at least 14 years… I regret not knowing this in 2007. I regret ? it.
15. Underfunded or Undercapitalization is very dangerous in trading. Know the rules that make a trade and find the right capital that works for it.
16. Don’t ever buy a strategy online either robot or indicator if you don’t
Have an idea of how it works. You may end up blaming yourself.
17. Demo trading is good. But like I have said: First, Backtest with real data, demo trade then go to live.
18. Focus on returns rather than bragging on pips earned.
19. Don’t lend money from the bank to trade if you have not used your money to trade for month’s even years…
Note, when lending money from any source, take note of the interest rate. Don’t do what will go against your strategy or over trade to cover up the interest rates fast.
20. Do not repeat my mistake of blindly following the so-called gurus that lured us into trading through mouth watery seminars or webinars and flashing dollars on the internet especially on Instagram. 99% of them make money on demo accounts, they are not real, and they are scammers.
21. Please, do not wait to learn from your personal experience, you might lose a lifetime fortune doing so. It is too painful & wasteful. It is better to copy & paste a successful trader.
22. There is nothing like a late entry in forex trading. Entry opportunities are endless. You just have to find your price level (let it be at the right time) & not someone else’s level. We see things differently and always be patient. If the train of opportunity passes another will come. PATIENCE is the ? key.
23. Always use stop loss in trading is a myth…You can also have other ways to get out of the market if you are wrong.
24. Every trader is supposed to have at least 9000 pips worth of free equity to weather any terrible shock capable of dropping 1000 – 5000 pips in minutes & quickly rebounding after wreaking havoc on accounts.
25. Don’t imitate those doubling and tripling money daily, weekly, and monthly on any forum or any other platform. I know many of them doubling account for years now yet they are still trading below 1k balance and refunding every time. Let them keep chasing shadows. If you see me tell you to make 100% monthly, RUN AWAY from me, NEVER EVER imitate me. The end is very terrible. Patience pays in the long term in FX.
26. Set realistic goals. Stable 30%-70% per YEAR is a Huge Success. If you can get there – other investors will find you and give you their money ?
27. Brokers can make you go broke, that is why they are called brokers?.
Be careful, choose wisely. Some brokers trade against you.
28. Does mt4 or mt5 indicators work? Yes, they work and no they don’t work. Let me explain.
All those indicators respect price. They follow the price. Not the price following them… Like I have said, mathematically all those indicators have their formula for looking backward and giving signals.
But if your indicators tell you place a buy trade and a piece of news comes out which is against the signal. Will you blame your indicator?
In summary, anything that makes you money in forex works. Indicators are predicting based on the past and the past cannot always tell you the future.
29. 90% of traders online wanting to help you out are scammers. What about me ???
Don’t trust me until you have seen my live trading account history for my account history, then you know if I am a scammer or not.
30. Don’t forget all these truths about forex trading.
Summary of the Truths About Forex Trading
Use your head while going into forex business.
The first rule of any investment is INVESTIGATION.
Investigate ? your mentor, your strategy, and any vendor online selling any forex-related idea, software, and signals
Forex is real but are you also real? Are you realistic?
Those who know the truth are not equal to those who love it.
If you wanna gamble, I would give you a lift to Las Vegas.