My first impression of forex was that it is an unpredictable gamble with no structure nor certainty of making any money.
My original mindset about traders and speculative trading was like allergy.
I thought that all those who are rich should just give their money away to those who weren’t.
I went outside, looked around myself and thought: ” Where is our money?”
My pro trader acquaintance from Tokyo told me: ” Yes, forex is like poker. Winners get the losers’ money.”
To which I thought that the winners are just depriving the losers of their financial resources and that this inbalance between winners and losers brings bad karma on the table.
When I went to seek out ‘ where our money is’, I came to the conclusion to that half the money is where value is. And half the money is where speculative investments are. Value meaning businesses which create lots of economical benefit to the citizens in the form of products & services. Speculative investments meaning individuals who are outsmarting other people and the reality. Yes, successful investors are people who outsmart the reality.
I realized that in nature there’s a law of exponential growth. That those who were strong, got even stronger. And those who were rich, got richer exponentionally. The people who were smart could learn new things better as they had more neurons to attach new information to and could make more connections in the brain than those who didn’t have many connections to begin with.
If new skills and progress in life grows exponentionally like a snowball rolling down a white mountain it means that we have to choose our direction in life very carefully because if it grows, it will grow exponentially like compounded gains. Or compounded losses:)
In a way it means that either you go forward full power or you get nothing.
You cannot concentrate on too many things at once, or you will not succeed in any of the things you try to accomplish all at once.
And the world is a complex place, we need to simplify the process of daily life down to the essentials. Otherwise you cannot balance all the essential things in your life. If your life is a mess, it means that you choose to succeed with nothing. Get your shit together and only then we’re talking about your life going to the next level.
Sometimes life is so complex that it is hard to make sense of it all. Thats why forex is a remedy.
100% money, no bullshit.
In trading currencies there is no bullshit anymore. It’s pure money and you can concentrate on this very core thing extensively.
To make a living you need money – that’s it. No more further complexity like human relationships, 9-5 daily working schedule and having your geographical freedom being restricted by a job. No more conversion of products like potatoes to cash nor conversion of services and time into cash. You use ‘money’ to make more ‘money’. It’s that simple.
Money is the essence of making a living. And even if the end of the world were to come there would still be something used as a tool between people to exchange value with each other. Even if there were only several countries or currencies in the world you could still trade currencies. That means that it is a potentially stable source of income, no matter what the economical conditions. As long as the world has people using money you can make a living if you know what you’re doing.
I learned that to make a living from currency trading you need to have 10 to 30 times the desired monthly income as your trading capital. It means that if an investor wants to make a living from his money he needs to have many times the money he needs for monthly expenses. It means that if rich people gave away most of their money they wouldn’t be able to accomplish some things that they want to accomplish. Because to make some money, you need your capital to be much more than that. So protecting your money and not giving it all away is a form of financial security and stability.
Trading is not THE answer – balancing, syncronizing, and fixing everything in your life is the answer.
But trading can help you with the financial resources & time part of this so-called ‘THE answer’.
The larger goal in your journey is to balance everything out and make things roll smoothly in your life. And trading, when done properly, can take care of the financial part of that.
Good luck and good trading!