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Investing in the forex market used to be reserved for those with huge amounts of capital to start out with. Transactions in the market are taking place in real terms, in real time with huge volumes of currency being exchanged each day. Right now though, the retail forex trader can use leverage through his forex broker and control literally hundreds of thousands of dollars of money with as little as 1/200th of that as security for the broker.
This means that to control $5,000,000 you need to have only $25,000 security for the broker (at 200:1 leverage) meaning to start an account and trade to win $500 per point/pip (and the market often moves 100-150 points in a day) $50,000 starting capital is required.
This is why I teach and train and rant and rave about taking profits at 3,4,5 pips if you know what you’re doing and you know that next time you might make 10 pips or 30 pips or 100 pips. The more you do this, the more you will realise how muich of an amazing opportunity trading forex is.
So, timing (the fact forex traders can trade with the banks from their homes, offices or a beach on a paradise island sipping milk from a coconut (I’ve actually done this more or less) and the opportunity to use leverage means that people starting to trade forex right now are going to be a generation of ultra-wealthy individuals in the very near future.
Exciting food for thought, would you agree?
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