I’ve known about Forex for 10 years now. My first forex account dates back to 2009. It was a live account; I don’t believe in demo forex accounts. Needless to say, that account has no funds in it anymore. I still have the account, but I lost all the money. I have an account with a different broker now, which I trade live, but that first account serves as a reminder of where I came from and whether I’ve learned anything from my early forex trading.
I have not been trading for 10 years. In fact, I would put some money into my live account, then slowly, or quickly lose all the money. Then I give up on forex for a few months until I realise that I actually like trading and miss it. So I’d feed my account with another 500 or 1000$ and gamble that away. Yes gamble. This is the reason I never made any money in forex. I’m not a trader. I’m a gambler.
Perhaps I should say I “was” a gambler. I don’t gamble anymore. About a year ago I decided to take trading much more seriously. To consider forex trading a possible source of income, rather than a source of entertainment. The trading since then became a lot less exciting, but the upside is that I still have my account. In fact, I’ve been growing it at about 2-3% a month. 10 years ago I would call this rate of return embarrassing, but today I’m not that stupid anymore. I learned my lessons. Actually it cost me thousands of dollars to learn this basic truth.
Warren Buffett is the most famous and the most celebrated trader/investor over the last 25 years. His rate of return is about 20% annually. Yes, each year he makes 20%. Not each week, or each month. Each year. To make 20% a year, and be as good as Warren Buffett, I need to make just over 1% a month. It took me a long time for this to sink in.
Yes, it’s possible to make more than that. Hell, it’s possible to double a trading account over a period of a month or even a day, but this is not sustainable. I mean, there are people who sell forex strategies that they promise to double our accounts every month. And of course, they have screenshots of their mobile phones with their trading record to prove it… The problem that I have with these “gurus” is that if their strategies really worked, then they should actually put 1000$ down, use their method for 2 years and retire with about 10 Billion in the bank. Yes, Billion. With that kind of money, I’d be living a good life in the Bahamas and not peddling forex strategies online for $49… :)
Forex Nest will be my journal. I do not yet make enough money in Forex to live off it, but I am really happy with the rate of return. If this continues, over the next year I will feed my live account with more cash and trade larger lot sizes. Hopefully, in a couple of years, Forex can be my main source of income and my dream of seeing the world will be realised.