Tuesday, October 9, 2007

How To Become A Millionaire In 8 Years Or Less

Contrary to most people's experiences, the FOREX market is not a voracious "black hole" that seeks to swallow up your hard earned money. The FOREX market is simply a market like any other market, whether you are selling bushels of wheat, fresh fish, or currencies. It has no agenda to deprive you of your cash. It's just a harmless ol' teddy bear that needs to be cuddled and loved. And, if you learn to love it, it will love you back, and in very generous and tangible ways. On the other hand, if you are determined to think of it as your enemy, then you have no choice but to defeat it; and, of course, it will fight back. As any professor of quantum physics or spiritual leader will tell you, how you perceive a thing will determine how that thing will respond, it's a principle of cosmic proportion.

There are several features of the FOREX market that makes it extremely lovable to some and an enemy to others. One prominent feature, is the high degree of leverage it allows. Recently, a major broker has allowed accounts of up to one million dollars in size to be traded at 1:400 leverage. This ability to leverage and control a phenomenal amount of currency is, of course, a double-edged sword, depending, on what you do with it. What you should not be doing with it, however, is to directionally trade with it. Unless, you have a desire to be a FOREX martyr.

Another wonderful feature of the FOREX market is that some currency pairs have very strong opposite correlations. For example, the EUR/USD and CHF/USD historically travel in opposite directions; when one pair goes up, the other pair goes down. Consequently, if you buy certain quantities of both pairs, it is possible to keep your trades open day after day for months at a time, without ever having to set a "stop loss".

Finally, there is the wave characteristic of how currencies move. Actually the entire universe consists of nothing more than wave patterns. Currencies, like all things in the universe, rise and decline. It's even more predictable than death and taxes. This, of course, means that you should consistently be able to buy low and sell high, which of course is the secret to profitability in every market.

These three features allow for phenomenal opportunities to generate significant profit over the long term. It is quite possible for a trading system that capitalizes on these features to consistently double a trader's account annually. The key word here is "consistently". If you consistently generate 6% profit per month, compounding, in your FOREX account, your account size will double in a year. A trading system that consistently performs at this level will turn $5000 into approximately 1.2 million in eight years.

Is it possible to become a millionaire in eight years or less, starting with only $5000 in your account? Wouldn't you like to give it a try?