My Own Experience As A Forex Trader 

I started Forex Trading in 2007, right after I lost my job in a shipping line in Hong-Kong. I didn't want to find a new boring regular job and spend my life wondering why I bust my ass to make my boss richer and barely survive myself. I wanted to be independent, yet still have enough money and time to enjoy life properly.

I didn't really know what kind of business to start, I had many ideas, but they all seemed to require a lot of time, effort, investment,
and that wouldn't go well for a lazy bone like me.

Then I had a breakthrough idea. I thought: if I want money, I need to go where the money is.
And where is that ?
In the banks you will answer.
Well, yes... but if you want some of that money, you're gonna have to rob a bank, which I am not yet prepared to do.

The answer to the question is that the real big time money is in the Foreign Exchange Market.

Few people realize that it is the biggest market in the world, with almost 4 trillion dollars of daily turnover !! 
So now you can see why I gave up my idea of selling bananas around the corner...

But how to make money? 
How does it work? you will ask.

Well that's very simple in theory, but extremely difficult in practice, as I was soon to find out. So much for my idea of wanting to make money the lazy way... After years of learning, practicing, and trading live, I still struggle at times to be profitable and not blow my money like I would in a casino.

However, I didn't give up, and my strategy is now well rounded and able to generate a good profit every month. And the beauty of Forex Trading is that, when your strategy becomes profitable, you simply compound your profits, the risk remains the same, but your income explodes exponentially. 

I think Albert Einstein said something like: 
"Compounding interest is the most powerful force in the universe."

 But How Does It Work...? 

To learn how to trade, a basic starting point is this website:

I will try to explain simply how forex works, for those of you who know nothing about it, but who are becoming increasingly interested.
I can already see the dollar signs in your eyes...

If you ever left your hometown to travel the world, you should already be aware of a thing called "Rate of Exchange".
This is the value that is used to calculate the amount in another currency equivalent to your base currency. 

When you left the cosy comfort of your home to travel to another country to visit a friend, relatives, or even, God forbid ! to have a short vacation from your routine job, you surely thought of buying some currency of the country you are going to visit.

But you might not have thought that if you bought it a week earlier or later, you might have saved a couple of bucks in the process because the rate of exchange was more favorable at that time.

The rate of exchange basically constantly goes up and down according to the overall economy, market sentiment, economical news, etc... It never sleeps (except on weekends when banks are closed).

That's what Forex Traders want, they want volatility in the rate of exchange so that they can buy low and sell high (or the opposite),
and make a profit in the process. We are in the business of speculation!

To do that, we have 2 main schools of thought, "The Fundamentalists" and "The Technical Chartists".

The Fundamentalists base their trades on the overall state of the economy, economical news, etc..., whereas the Technical Chartists concentrate on the analysis of currency charts based on chart patterns, historical price levels, indicators, etc... 
Both try to predict the future direction of a particular currency.

Let's see a standard chart and a concrete example for GBP/USD, which means Great Britain Pounds versus US Dollars:

Let's say that you bought 1 lot (=100,000$) of GBP when the rate of exchange was at 1.9700, 
and later sold that same lot when the rate of exchange was 1.9900. Your profit would have been:

100,000 / 1.97 = 50,761 x 1.99 = 101,015 - 100,000 = $1,015.

Understand ? Easy..., but the difficult part is to predict the right moment to buy,
because if the price had gone to 1.9500 before reaching 1.9900, you would have lost $1,015 !!

To trade the Forex Market, you could do that from your own bank account and move your money around from time to time and try to catch the long term variations in the rate of exchange of currencies. However, it is not convenient to do that with your bank, and also you can buy or sell only with the money you have in your account (which can't be much, right?).

That's when a Forex Broker is needed. A Forex Broker is basically like a bank, except that they allow you to buy or sell much more than the money you have in your account. This is called "Leverage". That means that your Broker lends you money to trade with,
for a fee... of course.

For example, if you open an account with your Broker with $10,000 of your own money, they will usually allow you to trade with a leverage of 1:100, which means you can buy or sell a total of 10,000 x 100 = 1 million dollars,
but you only risk the $10,000 of your own money !!

This looks great, isn't it ?
Yes ! ... until you find out that leverage can be your worst enemy much faster than it can be your best friend.
Let me explain...

Humans are strange creatures that want everything RIGHT NOW! We want to be rich RIGHT NOW! so that we can have everything we want RIGHT NOW! Very few of us have the patience to go one step at a time...

So let's say that you made the above trade, all went well and you made 1K in a day, which is much more than you would get from your stupid boss. Then your mind starts to go into a spin and forecast how much you could make in a month, based on your previous result.

1K x 20 trading days in a month = 20K !! 
What a joke !! 
Why the hell did I spend all these years working my ass off for my boss ?!

Then you start to make plans to be a full-time trader and quit your day job with a smile. You buy a couple of big screens and an ergonomic office chair for studying your charts with all the comfort possible, and here you go, calling yourself a Forex Trader.

But the reality will soon dawn on you that it might not be that easy. On the next day, your trade didn't go as planned, it started to go the other way, and since you are a beginner, you didn't put a Stop-Loss to prevent unlimited losses and before you know it, it's too late:
you are already $1,000... IN MINUS !!

Then your comfortable office chair starts to feel not so comfortable, your breath starts to accelerate, your heart starts pounding like crazy, your hands start to sweat, and your keyboard starts to wish you were anything but a Forex Trader...

You see, it is very hard to predict the exact moment when price is going to go in your direction. It could be obvious to the eye that after a big down move, it should go back up. It probably will go back up, but not at the time you expected, and because of that, you find yourself in a drawdown, and the difficulty is to set the limit of your losses.

Nobody wants to lose money, and beginners do not accept to lose money, they do not enter a Stop-Loss, or move it down as price goes down, until the loss becomes too big to accept. Then they are left with their hope that price will go back up the next day, but it doesn't, and soon their total account is wiped out. I know..., I've done it.

And that's why 95% of people calling themselves Forex Traders are actually Forex Losers.

You become a real Forex Trader only when your strategy becomes profitable CONSISTENTLY, not just for a couple of months...

 Financial Freedom 

So in conclusion, leverage is great, it allows you to make profits that you wouldn't be able to achieve if you played with your own money, but it is a double-edged sword because it is much easier to lose than to win. Unless you have strict money management rules, it will be your downfall, because humans are not robots, and our emotions of greed and fear are hard to control.

A good trader needs to learn to handle these emotions under pressure, and close a losing trade according to his rules, not according to his emotions ! For sure trading is not for everyone, you need a mind that is able to control both greed and fear at the same time,
which are very powerful emotions, much like love and hate.

I was more or less a Forex Loser for 2 years before I finally made a breakthrough and became profitable on a consistent level. Thankfully, I lived in Thailand, which allowed me to keep studying without spending too much money on day-to-day life.
I kept studying, I didn't give up, and finally reaped the rewards of being financially free.

Financial freedom doesn't necessarily mean to be a millionaire, to me it simply means that I do not have to worry anymore about my future financial health, or fear losing a job. It also means that I can work from any country, online, at any moment (24h a day, except on weekends). I can also control the income I need to achieve by the amount of time and work I put in. 

When your trading becomes profitable, the Forex Market becomes much like an ATM machine:

You need money > you trade > you make your withdrawal !!

I just know that as long as more than one currencies exist in this world, I will be able to make a profit from trading.

 And I can teach you financial freedom with forex trading. 
 You just need to apply for my Private Tutoring