Forex opens and an incredible array of possibilities of how you can get your target million. Therefore, there is no single answer. More importantly, the answer you may get might not be adequate to your character, and the way you approach forex trading. Beginner traders asking this question fall into the first and probably the most dangerous trap called “getting rich quick”. This desire in young traders is overwhelming, aligning with the temperament that only spells failure in forex trading, unfortunately. Getting rich quickly in forex is plausible, forex is a game of probabilities, and is also a mechanism where higher risk brings higher reward and vice versa. However, not all risks are justified, some things are just worth trying while others border with stupidity.
If getting rich quick is what you want to make out of forex, there are some ways of doing it that are better than having any plan at all. So, the key is having a plan. A plan that will increase your odds however abysmal they might be when you are after that $1million during a very short time. At this point, forex trading is more like buying lottery tickets worth $10.000 – scoring the jackpot probability is still way under 0.1% in most major lotteries. There has to be a better way right? Well, increasing the odds is an everlasting quest of a forex trader, do it meticulously, and finding ways to get “lucky” will be opening up in front of you. Instead of presenting how percentages and compounding works, let’s get into a few basic examples to get things into perspective, just note the following ways are not recommended.
Assuming you are hyped and do not want to spend time learning how to trade like professionals, try to search for a good forex robot. This process might take a few weeks but it is still better than going all-in without any clue where. Try to find good reviews about the robot with a high win rate on a single, specialized asset they run best on since you will need consecutive wins over a short time. Forex robots or Expert Advisors for MetaTrader platforms are numerous, some are free. A higher price for a robot does not mean they are better, just try to find one with good ratings, results, and reviews (be aware of fake reviews). Pay attention to the leverage, how much is put into every trade, and set everything to your $1 million goal time frame. All you have to do is let it run, watch, and hope. By the way, some brokers might be hesitant to pay you out and will probably try to find anything to discredit your incredible gains, but this is another topic.
Our second do-not-do-it example of how to get rich quick is trading high-risk forex events. Such events are global and deep, like elections or recent pandemic. The extreme moves they cause in a short period are your perfect playground to get that gain you need. Identify a trend that has started on a specific asset, for example, the S&P 500 index or the USD currency pairs where big moves are expected. Now, you need to set your position sizes and leverage to endure the drawdown you might experience as your tolerance for losses is extremely low with the way you are trading, even on an already established strong bear rally. By getting in a strong trend your odds of survival for the first candle (periods) are better than 50% and you also have a chance to win big as the trend continues for days, just know to set a trailing stop optimally. You might still need a few of these monster wins to get to that $1 million but at least you have better odds with a plan. Waiting for these opportunities might take some time, however, it still counts as getting rich quickly.
The final example is popular and directed to another type of new-age currencies. You got it right – cryptocurrencies. There are several ways to fill your pockets in this market, but similarly to trading forex during extreme global events, you will need extreme mover assets. Splitting your $10.000 across several altcoins with a good perspective to get popular will get your portfolio skyrocketing. All you have to do is research what are good picks. This method applies diversification, meaning the likelihood of losing everything is low, especially if you pick more than 10 coins. Of course, your $1 million goal needs to wait for things to get going, yet if only one multiplies in the value we are talking about extreme gains, possibly above your targets. An example altcoin that changed investor’s lives is the Verge with a 1,581,942% peak gain, going from $0.000019 per coin to $0.300588 per coin from December 2016 to December 2017. Similar to what happened to Einsteinium and Reddcoin. So the odds are much better here than with lottery tickets, especially if you do some fundamental analysis about altcoins. Suddenly picking 100 altcoins and investing $10.000 in them does not sound like a bad idea, just know you will never know when it will happen (if it happens at all), so it may not be as quickly as you expect.
Now, the recommended way to get rich is by devoting to the process of learning and experiencing forex trading. This path requires effort and not for getting rich quick-minded people. Professional traders sacrificed some time, a few years to get at the top of the game. They do not have extreme triple-digit returns over a year, but they are consistent. They switch high-risk returns for consistency that lasts for a lifetime. The two biggest pillars of trading are Psychology and Risk or Money Management. The analysis comes third after these most important aspects often overlooked by impatient traders. As with the above not recommended methods, start with a plan. Seek out beginner forex trading portals (such as babypips.com) to get the basic understanding of forex and then explore some more advanced topics such as strategies, indicators, trading systems, theories, and some forex psychology books. Improve your knowledge following financial websites and social media channels. Follow smart investors and traders on Twitter and try to find their channels on youtube or some other platform. Some of these figures are going to be appealing to you and your learning curve will get easier quickly, open your mind, and get motivated.
For some, a few years of demo trading and trying things out might be too long but reaching $1 million from $10k is what professional traders actually do consistently. Many spend decades just to try to live with $10k let alone become millionaires. What is great about forex trading is it does not force you to quit your daily, conventional jobs. It is as flexible as it is deep. You may become a purely technical trader, long term investor, crypto holder, but all successful traders have things in common, they all have a plan or system, structured risk management, and have mastered psychological trading aspects. Having a good plan is great, sticking to it is the psychology challenge most cannot overcome. However, with the internet, all the information available to you, all you have to do is dig up a bit and put that $10k to use, $1 million might be just a couple of years ahead.