Forex Millionaires are a real phenomenon.
Forex Millionaires really do exist and they are successful in currencies, commodities and other derivatives. Because these individuals exist, it does not mean you will necessarily get there. Your desire does not equate to your ability and timing. However, you do not have to make those millions from Forex alone, but Forex could certainly help propel you along your way.
You're asking "how do I join the Forex Millionaires Class already?"
You mentally want to be a millionaire or billionaire, but without care for the process, you will never get there. Without respect for the actual market, you will just be donating your money to a financial institution whether it be a big bank or a market maker trading against you (which is why Freevestor makes sure to work with ECN non-market maker brokers).
You have been warned enough, let's just get to how you find your path to joining other millionaires who trade Forex.
1. You Get a Job with a Hedge Fund or Investment Bank
Yes, that's right you're working as a quantitative analyst, quantitative risk management associate, quantitative risk modeler or quantitative developer. Whatever it may be, you're surrounded by people with money and your code is their path to getting that sweet arbitrage.
If you can code, this is a suitable option for you as there is opportunity to eventually become a millionaire in a shorter time than others. You can use your know-how to eventually create your own boutique fund and show the world who's boss.
This is a way to reduce your own personal financial risk to the markets and build your fortune. If you do not live in a financial center, you are probably never going to get this sort of an opportunity.
You should know your Python, Java, C++ and SQL. Econometrics and financial risk modeling are also rather helpful.
Treasury Finance positions are also involved in FX and they could be a positive gateway into this sphere as well if the Investment Bank and Hedge Fund road is too daunting on the first effort.
It's a pathway that must be mentioned, it's not exactly sexy, but it's a pathway.
2. Get the most raw ECN rates and become an arbitrageur
The opportunities do not come up too often, but when they do appear it's most likely with cross-currencies through the phenomenon of triangular arbitrage.
Exploit the differences between rates of two different brokers through latency arbitrage. Your broker may not like this, keep this in mind.
Remember, in these cases the term 'arbitrage' is not synonymous with merely 'profit', but rather in these cases risk-less profit.
To accomplish this, prospective arbitrageurs need to do one of the following:
- Code the automated program that performs this action themselves.
- Hire someone else to code the automated program.
- Subscribe to a signal provider who has access to the exact same rates, spreads and latency.
- Invest in an arbitrage fund of some sort.
Not exactly easy stuff here for phenomena that are becoming less frequent. In the Bitcoin Marketplace, these arbitrage opportunities do present themselves, but there are unique challenges.
Arbitrageurs can't have micro accounts, in fact, if you are going to ever become a Forex Trading Millionaire - you're not going to start with less than $3,000. It's just not going to happen.
3. Embrace automation, risk management and portfolio management.
Freevestor can create a portfolio for you for FREE if you are an Introducing Broker client. Freevestor's prescribed plan will:
- Hedge sub-accounts against each other or calculate portfolio volatility and expected returns to help with making your decisions.
- Manage the portfolio just like a Portfolio Manager (PM for short) and help get you on your way to profitability.
You can create your own Expert Advisor for one sub-account and have several other sub-accounts with various Trading Signals. The best part is that you are not putting all of your capital in one place and you are diversified within the sector.
If Forex, Commodities and CFDs are your entire investment portfolio - this is a red flag. Leveraged investments are a portion of your entire portfolio and you should have other holdings.
4. It's not about the end result of joining The Forex Millionaires Club
In the United States, Gridiron Football is King. The two most dominant coaches in the sport are Nick Saban (Head Coach of the University of Alabama Football Team) and Bill Belichick (Head Coach of the New England Patriots). What do Nick Saban and Bill Belichick place their emphasis on? It's not winning nor results.
It's about The Process. The Process is what matters most and it is the secret to their success. Creating a process-oriented approach will result in profitability. Don't focus on the scoreboard, focus on The Process.
The goal is not to be a flash-in-the-pan, but to create a sustainable way for you to build your account. You can only control one trade at a time or one portfolio allocation at a time. Focus on getting it right, optimizing it so that you can be in a better position in the future.
It's easy to sell the by-products of success and have all sorts of shortcut quotes to live by rather than having an actual approach that applies to you.
What works for one of these uber-successful traders or investors who made their fortunes in different market environments may not necessarily work in a different market environment. Times change.
Focus on creating your specific process and have it fit with your situation... and keep optimizing. Forex Millionaires each have their own path, don't look over your shoulder.
These are small steps you can take professionally, developmentally, operationally, strategically and mentally to reach a favorable end result.