Thursday, January 1, 2009

Can Someone Really Become a Forex Millionaire?

It happens every single day. The great news is that the majority of them started off with very humble beginnings, before they became a forex millionaire. Now for the bad news. There are A LOT more people losing money trading forex. I would say that for every single forex trader that is hitting the big time, there are about 90-100 of them who just crashed their accounts.

So why is that the case? How come there is such a large discrepancy between the haves and the have nots in forex trading? Well, lets think about it. This may seem rather obvious, but how come more people just don't trade like the forex millionaires do? Seems rather simple, right?

But when you don't know what the successful traders do, then its pretty hard to emulate them. Fair enough. Then lets look and see what most of the unsuccessful traders do, and stop emulating them.

This may be a rather general statement, but many struggling traders love bells and whistles. They love the idea of playing around with indicators, and coming up with a mechanical system. You can go on just about any forex forum, and you'll find hundreds of threads where people are using indicators like Stochastics, Moving Averages, etc.... to come up with some kind of holy grail.

However, if you do a little reading about the most famous traders of all time, you'll know that a vast majority of them did not use indicators. Even today, when you look at the most well known traders around, most of them absolutely despise indicators.

There is a very good reason for that. These traders would rather trust their own eyes to be the judge of the market, than any of those indicators. They understand that there is some kind of price analysis that has to be done, otherwise you are just like a robot waiting for your indicators to give you a signal. The signal should be coming from within.

In summary, it is definitely possible to become a forex millionaire, however, it does require you to see the market from a whole new set of eyes.

John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

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