Is it possible to become rich through Forex trading?

Almost every beginner asks, “Can I actually get rich from Forex trading?”. The short answer to this question is “yes”. However, this does not mean that it is easy or guaranteed. It doesn't matter how long you have been trading or your initial investment. If you manage to control your emotions, build the right discipline and patience, your chances become many times greater.

What are the real odds of becoming rich through Forex trading

If you have already gone through our free course for beginners, then you are aware that the Forex market has a volume of nearly 7 trillion dollars per day, yes... trillion. In addition to making it the largest financial market in the world, we can safely say that it also provides countless opportunities for its participants.  

Despite the huge volume, the odds are not in favor of traders. Roughly, about 90% of all traders consistently lose their money. This is a fact, and similar statistics are often shared on the websites of brokers. These brokers typically report that 70-75% of traders face losses, but this data usually reflects performance for the last quarter. If they were required to disclose the full picture, the figure would likely exceed 90%.

On that note, if you're trying to find a trustworthy broker, feel free to reach out to our partners and take advantage of cashback trading opportunities.

Considering that, at best, only about 10% of traders manage to generate consistent profits, how many of them have actually made substantial amounts of money? The number is even smaller!

To become rich through Forex trading, you must rank among the top 1-3% of successful traders, which is no easy feat. Success depends on dozens of factors, but most importantly, it requires time. If you believe you can go from zero to six or even seven figures in just a few months or a year, it's time for a reality check—it simply won't happen!

Prepare yourself with patience and don't even focus on making profits any time soon. Success is achievable, but it will take much longer than you might expect.

What does it take to succeed

A single book, course, or article won't be enough to get you into that top 1-3%. However, it's a good beginning. Forex trading isn't about luck or some secret strategy. You need a clear plan of action and consistent analysis of your results to identify areas for improvement.

Here's how successful traders work: 

• Systematic learning: if you don't understand how the market operates, you're essentially relying on luck. Take the time to learn the basics, then move on to strategies and live trading; 
• Control the risk: remember that risk and money management are twice as important as the trading strategy itself. Learn various ways to manage your position; 
• Be consistent: a pro trader is not interested in quick profits. Success comes when you do the right things every day.

These are the most important and basic rules when it comes to successful trading. As you delve deeper into this field and improve your knowledge, you will realize that there are many other factors to consider, such as emotions, market periods, fundamental analysis, advanced money management, risk exposure, etc.

Becoming rich through Forex trading - is it mathematically possible?

Again, the short answer is - YES!

There are several mathematical methods you can use to calculate how and when you might reach a seven-figure sum in trading. For example, if you begin with $1,000 and assume you're a flawless trader, doubling your account every month would only take 10 months to reach $1,000,000.

Presented this way, it may seem quite simple. The truth is that this is not the reality of trading, but simply a hypothetical situation. There are several reasons for this.

• Consistency: even the best traders can't achieve such results. Every single trader goes through losing streaks throughout the year, which means, you can't expect to be in the green each month; 
• Mental barrier: even if you manage to double your initial balance in the first 1-3 months, then you would have to risk 5-figure amounts just to keep going. As you start risking more and more, trading will become much more stressful; 
• Market conditions: The Forex market does not provide the same opportunities every month. You may have favorable market conditions with clean price action signals for a month but then a choppy market for the next two months. Your strategy will have to change and adapt which most probably means, your results will change as well.

And here's how long it will take you to reach 7 figures if we consider a more conservative approach - 5% return per month.

In this case, it would take you 142 months (about 12 years) to reach $1,000,000.

The true story of a trader who achieved wealth through Forex trading

Samuel Leach is a famous British trader who is a pure example of a man who became rich from Forex trading and stocks. He came from a humble background but had big ambitions. While still at university, where he studied marketing, he used a £2,000 scholarship to start his trading journey. He began reading and educating himself, even finding foreign books and translating them into English himself, in order to extract as much information as possible about how the financial markets work. Thanks to his desire for success, within a year he turned this amount into £178,000.

His method is a mix of long-term investments in stocks and short-term trades on the Forex market. After a while, he came up with an automatic trading algorithm that allowed him to trade even when he wasn't sitting in front of the screen.

In 2012, he founded Samuel & Co Trading. This is a company that teaches people how to trade and also provides trading capital to dozens of traders. Samuel is also a real estate investor and author. Today his net worth is estimated at over £7,000,000.

Is it suitable for you

Not everyone has the necessary qualities to be a profitable trader. Of course, everything is possible and with desire and will, these qualities can be built. The truth is that everyone has to decide for themselves. For some people, this industry is too boring. Spending a lot of time in front of charts, following the news, world economy and politics, analyzing different instruments, testing various strategies - you can imagine that this wouldn't be appealing to many people.

If you're still searching for a field to pursue and trading has sparked your interest, why not give it a go? Take your time, start with our free beginner course, and see if it piques your passion.