Trading in the forex market is one of the few opportunities in the world in which almost anyone can become very wealthy in a relatively short period of time. With an average daily trading volume in excess of $5 Trillion per trading day, the forex market is far and away the largest and most liquid financial market in the world. While at the same time, it’s the financial market with the least barriers to entry that currently exists.
The forex market trades 24-hours per day, 5-days per week, and there are at least 25 tradable currency pairs with sufficient volatility to offer traders plenty of trading opportunities to generate profits (Alpha) on a daily basis. There are forex brokers located in vey corner of the globe eager to open highly leveraged accounts for traders of all size. With circumstances like this, one can’t help but to ask the question, “Why isn’t everybody trading the forex market and getting rich?” Or is it only some Forex Treaders are rich?
Are Forex traders are rich?
The answer is two-fold. The first part is the risk. In the same way a person can take up trading and make an extraordinary amount of income, you can also lose that same amount of money very quickly. Unfortunately, this is the fate of most people who attempt to make a quick fortune by trading the forex market. The result is extreme frustration which leads most people to just give up. However, for those that don’t “give up” and accept the notion that trading is a skill which needs to be learned, developed, and honed over time in order to master, the opportunity offered by the forex market is abound. Once mastered, trading is a skill that will yield untold amounts of wealth that has no limit when applied to financial markets as enormous as the forex market.
A career as a trader is no different that any other profession that necessitates a skill for which mastery requires an extensive amount of knowledge, experience, and time. Take for example a Doctor, a Lawyer, a Professional Athlete, or an Artist; Doctors don’t make medical break-throughs their first day out of medical school, Lawyers don’t become Supreme Court Justices their first year out of law school, Professional Athletes don’t win championships (i.e. Super Bowls or World Series )their fist time out on a field right out of high school (maybe there’s one or two exceptions here), and actors and musicians don’t win Oscars or Grammys respectively on their first gigs (maybe there’s one or two exceptions here too). The point is that all those that pursue these types of professions do not reach the pinnacle of their careers until such time as they have achieved mastery of their skill. This includes a career as a trader.
Successful Forex trading
The title of this article is “Why Forex Traders Are Rich.” This title is missing a critical element. It should read “Why SUCCESFUL Forex Traders Are Rich.” There are and will be many people that will embark upon a career as a trader, and there will be many more that will “dabble” in the forex market. For those that are willing to put in the hard work, commitment, and time into developing the necessary trading skills, and most importantly for those that don’t give up, once mastery of trading is achieved, “the world will be your oyster.”