You must have read a lot of stories about people getting rich with trading. Rags to riches stories of ordinary people who had no money but were determined enough to succeed. You might even have read stories of people who started trading with borrowed money something like $1,000 on their credit card and ended up making $200,000 in just 30 days!
So, you get inspired by these stories and decide to try your hand at trading. First, you should never ever make the mistake of trading with borrowed money. One out of thousands succeeding with borrowed money does not make the odds in your favor. Second, don't make the mistake of rushing into doing something you have no experience of doing. But still 90% of the people who give trading a try make this mistake. Within a few days of trading, they receive a margin call. After getting a few more margin calls, they give up trading!
They learn the hard way that you have absolute no control over the market. Markets do what pleases them whether it makes you rich or poor. Markets simply don't have any mercy that you have borrowed the money to start your trading career. After experiencing losing their hard earned money, 90% of those who start trading leave forever. Too badly shaken and burned to think about trading again.
Let's take a hypothetical example. Suppose, you have some experience of investing in stocks. Though not a highly successful experience but still you think that the return you make on your stock investments is reasonable. So, you know something about stock investing. You know that you have to do good research about a stock and the company before you decide whether it would be a good investment or not.
One day, your broker or some friend of your tells you how much she is making in the commodities market. You get excited. You want to trade commodities. You know you have been investing in stocks but commodities like gold, silver, cattle, wheat, crude oil, pork bellies, soya beans are not companies and don't behave as such. So you have fallen into a delusion that since you have been trading stocks, you can trade commodities too.
You open an account with a futures broker. Sign the risk disclosure statement and know that futures trading is risky. With this knowledge, you start trading commodities futures. You lose trade after trade. What happened? Did you rush in doing a thing that you had no knowledge or experience. Maybe this is the right explanation. So don't rush and join the 10% who learn to enjoy trading in the end
10% stay. It is hard for them in the first few months. They don't know much about trading in the beginning but overtime they learn the skills to make them succeed and in the end trading becomes an enjoyable experience for them.
Three decades back, Bill Poulos was one such person. Over the years, he learned those little known tricks that can make you a consistent winning trader. Forex trading is being called the Recession Proof Business of 21st Century. Forex trading is going to make many millionaires in 2010s. It already has. Take the example of Bruce Kovner, who started with only $3,000 borrowed from his credit card trading forex and futures. He is now one of the richest men in the world with a net worth of $11 Billion. But this does not mean that you can be another Bruce Kovner. It only means how immense the opportunity is right now in the currency markets. Currency markets are experiencing volatility never seen before since early 1980s. Bill has a flexible forex day trading system that takes not more than 20 minutes each day to trade and can easily give 5 figure monthly income part time. The first thing that he stresses upon as a new trader is risk management. Learn from Bill, he is the best trading educator!