If you want to be successful in Forex Trading in 2023, then this article was written just for you. In this article, I am going to share the formula to grow a small forex account in 2023. But before we begin, let look at why most people don’t make money in the forex market.
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Table of Contents
The Reason Why Most People Don’t Make Money In Forex
This will be the foundation for this article, it is good to understand why most people don’t make money in the Forex market, so that you can try to avoid them. There are many reasons but for the purpose of this article, I will just explain two:
1. Most Traders Don’t Stick to a Trading Strategy
One of the reason why most forex trader struggles in the forex market is because they don’t stick to a trading strategy. If you are using a strategy that is well known and most people are using it to make money, but you are not making money from it, then the problem is not the strategy , the problem is you.
I have engaged with many traders who are constantly looking for new strategy; if you are in this category, you will continue to struggle. See, as a forex mentor, who has been in the forex market for over 11 years, one thing I have come to discover is that one forex strategy is enough to change your trading life forever.
Lesson 1:
It is true that no forex strategy is 100%, but one of the formula to grow a small account in 2023 is finding a strategy and sticking with it.
One of my favorite strategy which have been shared on this blog is the price action strategy (You can read the article here). Once you have a strategy, the next step is opening a demo account (you can open a free Demo account by clicking here). After that, the next step is practicing and modifying the strategy on your demo account until you master the strategy before heading over to your real account.
2. Most Trader don’t understand how to manage Risk and their trading Psychology
Risk management and trading psychology is another reason why most people don’t make money from forex trading. Let me begin this way, it is very easy to get carried away because of the so called YouTube billionaires, especially when you look at the cars and lifestyle they flaunt online, this can push any trader to overleverage all in a bit to chase the shadows, thereby blowing their account in the process.
I was sharing a story in a seminar I was invited to speak recently. And the story was about one YouTube Billionaire. One of the student mentioned him during my session and shared one of the tips he got from his video on account flipping. While I didn’t disagree with the student, I was quick to informed him that the YouTube Billionaire makes most of his money from training students and affiliate marketing not trading which is very good.
In fact, the person trade just twice a week, he has between 150 to 300 students every month in his mentorship class and all of them are paying a minimum of $350 for mentorship- which means he makes up to $35000 every Month from mentorship; apart from mentorship, all his students will also register with his chosen broker using his affiliate link, which means, even after the one month mentorship, he will still get money from the commission of each of his student each time they trade. Which is very good, considering the investment he did in getting the knowledge.
Lesson 2:
As a new and struggling trader, you don’t need to be carried away by the success stories of the YouTube Billionaire, you have to learn how to manage risk and your psychology and focus on building a system that will earn you a sustainable income.
The Formula to Grow a Small Forex Account in 2023
During the seminar, one of the student, asked me a question “Mr., Warren, Why is forex trading so difficult?” his question was greeted with a lot of laughter from the audience, but I understand where he was coming from. Most of us who are lucky to be successful in the forex market, instead of sharing all our stories, we are just flaunting our win not our loses, thereby increasing the pressure on new and struggling trader which may inspire them on their search for a holy grail strategy.
So what is the formula to grow a small forex account?
1. Develop a Learning Path
Whether you are trading currency pairs or synthetic indices, the journey is almost similar because the goal is the same. We all want one thing from the forex market – to make sustainable income from it, believe me, there is a lot of money in the forex market to go around, in order to access this money, you need to understand how the market works.
Some people are in a haste to make money that they forget that they can also lose money in the forex market. Before you rush to donate your money to the forex market, review your trading history and sit back to develop a learning path that will assist you understand how the forex market works
2. Have a Working Strategy
Like I mentioned above, one working strategy can earn you a sustainable income from the forex market. You don’t need to be searching everyday for new strategy. During your learning stage, develop a working strategy and practice it on your demo, modify the strategy on the market based on your experience in the market, do this until you are satisfy with the strategy before you go over to your real money account.
3. Patience is very Important
After analyzing your trade, it’s very important to allow the price to get to your key levels before deciding either to enter the trade or not. Some traders because of fear of missing out can just rush into the market without waiting for all the conditions they set on their strategy to be met.
4. Don’t Neglect Risk Management
Three things are very important in the forex market : Strategy, psychology and risk management. Of all of them, strategy is only 20% of the whole process, while psychology and risk management covers the remaining 80%.
This means that no matter how good your strategy is, without a good trading psychology and risk management you will be struggling in the forex market. So. when thinking of the formula to grow a small forex account in 2023, think of how to be in-charge of your psychology and allow a trade to play out before entering the market. Always remember that risk management is very important.
Final Thoughts on The Formula to Grow a Small Forex Account
One thing you must know is that there is no holy grail strategy in the forex market, your strategy can only work if you practice them on demo and adjust them to fit with your trading plan. To grow a small account in 2023, have to develop a learning path, get a good strategy, patience is key and don’t neglect risk management
Risk Disclaimer
Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.