When you first get into forex you have to have an endgame insight. Well what does that mean? Pretty much a magic number that you want to get to in your trading bank account that you can then start withdrawing your ROI from your funds. So let’s say you want to live off of $5,000 USD a week and you know you can get to 5% ROI trading forex on average a week (I will go into more detail on the return later in the article).
Now that you have that 5% number you can now figure out how much you need to leave in your trading account to withdraw $5k weekly. It boils down to 0.05 (5%) x A = $5,000. In this case it is easy to figure out by dropping the 0’s 5% of what equals $5 which is 100 and add back on the zeros brings you to $100,000. So if you want to live off 5k week if you know you can get 5% return a week (1% a day on average) then you know that magic number is 100K.
But I don’t have 100k to do this? Well most of us including me don’t I am still on the road to 5k a week or 260K a year. Now onto the million dollar question.
Can someone become a millionaire trading forex? Of course you can, but you will either need time and patience to grow a smaller account or a larger account to get there more quickly. You need to set an ROI goal not a pip goal because you pips have nothing to do with your ROI. Yes that is right it is your risk to reward that makes the difference not if you get 100 pips or 1,000 pips. See the below illustration that shows a 1% average ROI with starting with $5k.
Is It That Simple To Make Money In Forex?
The above is just showing the math not the actual hard work and details that has to go into getting to that 1% ROI a day. There are a million different ways to get to 1% a day. Some people put a 50 pip stop loss others, myself included, use a 5-10 pip stop loss. The choice is yours and you can do both. I actually do both bigger and smaller stop losses based on the time I have available and to make sure I get my 1%+ daily average you have to be actively trading. You can check out a free strategy HERE from a 7 figure trader I have learned from personally in our trading group.
So to make things much simpler you need to learn the basics of forex which including setting up a demo account, taking trades, and risk management. Once you have those basics down all you have to do is master a strategy and stick to the rules of the strategy. The worst thing you can do is break the rules and win a trade. Always stick to the strategy or your own rules! That is a must to succeed in forex or any trading. Trading boils down to 90% mindset and 10% technicals.
The other side of things is fees and spreads from your broker which will work itself out over time. That is why when most people trade on the math of forex earnings you just leave that out of it because it complicates the matter much more. You need to do your research on what broker you need to use and you can start by looking at our resources page. But don’t stop there do your own research.
You as the trader have all the control over pressing that buy/sell button, setting your stop loss, and taking your profits. You need to figure out the best and simplest way this will work for you. I am not saying that when you choose a strategy you have to stick with it forever. Pick a strategy test it and give it a chance before you quit with it. If people are having tons of success and you aren’t that more then likely boils down to a mindset issue. You should then look into mindset training whether it be reading a book, doing some mind exercises like meditation, or finding a mentor.
For me I do what works with my time. Being a stay at home dad can be challenging especially being on a small farm and having to do chores so my time during the day is limited. I trade longer term in the beginning of the week so I can close out my trades by the weekend and more new paradigm trading during the week as I can.
The path to being a millionaire can be as simple as getting 5 pips a day…But it takes time and VOT (volume of trades) to get to this point
Check out our New Paradigm Page for more information on this.
Below is another example if you simply started with $100.00 in your trading account. It would take longer of course to get to your millionaire goal but once the compound interest affect kicks in you will see the benefits. Make sure you look at the ROI and not the actual amount of money you are getting back. Once you get to a point where you have mastered a strategy you will be able to get to that ROI at will. But remember you will lose trades thats a given you need to learn to trade like a robot with no emotion and definitely not revenge trading.
If you started with $100.00 and went for 20% monthly (1% daily over 20 days trading a month) it would take you approximately 52 months to have that $1 million in your bank account. So is it worth waiting 4 years to be a millionaire and literally print as much money as you want? Let me restate that you can trade part time and still get to this point in a little over 4 years by investing only $100? Sounds to good to be true to me but most people want to have that million by next month and aren’t willing to wait. It is a valid point that it doesn’t matter what you invest money wise as you still need to invest time into learning to trade and into correcting your mindset I can’t state that enough.
Now this is just the math will everybody who tries this get there? Unfortunately only a small percentage will and it isn’t for anyone reason but more often then not it is 100% because of a persons mindset. That is why I read or listen to at least one book a week on mindset. I am not a millionaire but I do learn from millionaire traders and all of them have one thing in common they have almost completely conquered their mindset issues. Full disclaimer these results are not TYPICAL! But if you just do the math the path is there. Join our free group and you can get there. Learn directly from the gurus that started with less than most and put the groundwork in. So you can get there by shortcut when it comes to trading but you need to put the time in.
Multi-Millionaire Forex Traders
These are the traders I learn from and have direct access to in multiple ways.
- Founder: Scans, Forks, and Fibos Facebook group.
- He is the original OG for New Paradigm trading. Kind of like the GE commercial I guess is one way to put it he didn’t create things such as pitchforks, fibonacci, trading with tight stop losses, but he made them all better and put the grunt work into everything. He backs up everything he states with examples and years of data. He is way ahead of the curve when it comes to forex trading. There is nothing wrong with old paradigm trading with big stop losses but why not go for 5 pips a day vs 100 to make the SAME ROI!
- Trading Tools: Pitchforks, Fibonacci, Trend Lines, TAB29, Elliot Wave, Wave Projections
- Probably the most caring guru mentor I have ever come across
- The main reason I have stuck with IML for over a year at the time of this writing
- I have purchased his software TAB29 indicator for tradingview which he now gives away for free (lite version) with IML subscription lol.
- His training is second to none
- He focuses more on mindset as the way he trades you are setting traps and waiting for the trade to come to you not forcing or guessing on a trade
- Strategy: New Paradigm aka tight stops with energy points, harmonic trading along with fibonacci based confirmation
Eric Garrison is on the right in this pic. That is Arnold Thompson on the left who is a founder of our trading group.
- Eric is an 8 figure trader that has developed a strategy he has been using successfully for the last 15 years. It is a very simple strategy that almost anyone can do.
- He is now an IML educator and is giving his time to set people financially free
- Is a very giving persona and loves giving back to the community
- If you listen to him talk you can see how genuine he is right away.
- More of a long-term trader.
- He Takes his trades mostly off of daily and 4-hour confluence. The trend is your friend kind of strategy and trading.
Amazing Trader that has been doing it for many years. You can see his free strategy HERE
Clint Eastman is an 8 figure trader as well. He has been around the game for 35 years.
- He uses what is called a CSA 5 Step Strategy once mastered it is amazing. I am still working on the mastery part but even using one of the tools he uses has helped narrow down entries
- Most of his strategy is based on currency strength along with volume a great combination that has been around for a long time and is hard for the markets to manipulate
- He is also making his way onto the IML educational platform still waiting for it to happen at the time of this writing but I have attended some of his live free zooms which have been amazing
- Clint trades mostly the London Session and opening of New York session.
- Does what is called basket trades which is amazing to watch in action
- Makes a massive amount of pips in a short amount of time using tighter stop losses then your average trader
So those are the traders I follow with the bulk of my efforts being focused on the new paradigm with Steve Gregor’s trading realm. Can’t really call it a strategy since it is more of a way of life. You can CLICK HERE to see some of his free training that he provides both with mindset and trading.
Forex Trading Millionaires Strategies
All three of the traders above show you the path to becoming a millionaire with their strategies and ways of trading.
The only one that is absolutely free is Eric Garrison’s which you can find by clicking the free strategy page above. The reason I send people to this page is because it is very easy to trade this strategy. You simply use 7 different indicators that I will send you the template for and can be setup with MT4 or tradingview. I do believe if you are ever going to be serious to sign up for a free tradingview account because the charting capabilities is out of this world compared to MT4.
So Can You Make A living Trading Forex?
Yes you can make a living off of forex but you do need capital to start out or you need to start small and take your time compounding your account. This means limiting your risk and setting ROI goals. Once you meet those goals you need to stop trading and restart.
Let’s say you are looking to start a trading plan with 3% ROI daily goal at 4 days a week. Once you get to 3% you should stop and wait until the next day to trade. This could be only one trade and that is it which is fine.
You also need to set a plan for trading losses. So lets say you use 1% risk but use a 1:3 reward which is good. I set a 2 trade loss maximum in any one day. So if I lose my first trade that’s okay I will take another emotionless trade, but if I lose that second trade I will quit for that day and come back the next refreshed. It is very important you do not revenge trade. Set and stick to your plan you can always change it.
Related Questions (From Our Readers):
Can You Get Rich By Trading Forex?
Yes as I have discussed you can become a millionaire off of only 5 pips a day. Based on the math if you invest $5k USD and make 5 pips a day (1%) on average you will be at I believe $2.5 million in 24 months. That is of course leaving 100% in there. But if you stick whatever number you want into the spreadsheet I have provided you will come up with the number you desire. Just make it reasonable and 5 pips a day is definitely more than reasonable once you learn to trade in the new paradigm.
How Much Money Do You Need to Start Trading Forex?
You don’t need any money to start trading forex. You can use a demo account both MT4 and Tradingview are free. Tradingview does have upgrades but all the basics are included.
Is Forex Trading Profitable?
Yes it is profitable but there is also risk involved that is why you need to demo at first until you learn how to trade and use small lot sized when you first go live. The profitability factor won’t come down to your trading knowledge it will come down to your mindset and if your mind will get in the way of you succeeding.
How Successful Are Forex Traders?
As you can see above the 3 people I follow are very successful and have been for a very long time. Two of them have been trading over 15 years and the other over 35 years. But for every individual that succeeds there are 100’s if not thousands of failures for many reasons of course. That’s why if you take it seriously and treat forex trading like an education you will have more of a probability of being a success story.
Can you be successful right away with trading?
Yes of course you can, but this is highly unlikely that you can get right on the first time start trading live and never look back. We have an individual in our group who is a 6 figure trading that actually lost money his first 5 years of trading. Then he finally started following the right educational information and has now been winning huge the last 5 years. Take your time find a way of trading you like and move forward with it. Become the best you can be at that one way of trading before moving onto another strategy. You can’t be great at everything but anybody can be great at one thing.
Please keep in mind that I do not consider myself a professional trader by any means I still learn new things every day and still have Professional Educators I follow. A lot of people have put a lot of time into trading and learning forex so I do not want to take anything away from them these are my opinions and my opinions alone. Safe trading and read our disclaimers.