Can you get rich trading currency? The short answer is yes. Currency trading offers some of the best opportunities for profit of all markets in the world today. The currency market is very lucrative for those who know how to trade it and yes, some people do get rich.
The currency markets can develop strong trends which provide tremendous profit potential. Traders may trade currency futures or they may choose to trade the Foreign Exchange or Forex market. The Forex market has become extremely popular for those wishing to trade currencies. In Forex traders trade currencies in pairs such as the popular Eurodollar – US Dollar pair. The symbol for this is EURUSD and may also be seen listed as EUR/USD.
To give you an idea of the profit potential the EURUSD has months where its monthly range is the equivalent to $20,000 or more. The Forex markets can make many large moves throughout the year.
One of the most attractive aspects of the Forex market is that you can start small and build wealth over time. As you trade successfully you will continually grow your position size. Let’s look at an example.
Let’s say a trader starts trading a day trading system and is making a consistent profit of $100 per day. After 10 trading days the trader’s equity is now at $2,000. The trader is now in a position to trade 2 contracts per day. Below is an example of how
$1000 – 1 contract – $100 per day
$2000 – 2 contracts – $200 per day
$3000 – 3 contracts – $300 per day
$4000 – 3 contracts – $400 per day
…and so on.
As you can see in our example you can get rich trading currency even if you start small. Keep in mind that this will not come automatically as many would have you believe. Consistently profitable Forex trading is the result of planning, discipline, and hard work.
Source by Richard M. Davieess