Is Forex Trading Really Worth It? Or…
Is The Time, Stress & Effort Too High
Compared To The Potential Profits?
I tout Forex trading as a way to make money online, beat other investment opportunities and accumulate wealth over time. But is Forex trading really worth it considering the time, stress and effort involved?
Forex trading is worth it ONLY IF your earnings exceed your efforts. To achieve this, keep the learning curve short, confine trading to a small portion of your day and keep the trading simple. To find out if Forex trading is worth it, break your results down to an hourly wage.
I’ll show you how I’ve designed my trading approach to ensure my Forex trading feels worth it to me. These are some of the most important factors leading to my success over the years.
Forex Earnings Must Exceed Forex Efforts
There are many different ways to approach trading the Forex market for profits. This is one of the difficulties in finally figuring out which approach is right for you… there is always something else to explore.
But whatever approach you decide to explore, make sure it passes this test first:
Will my earnings exceed my efforts?
If the trading approach you want to use requires you to sit in front of the computer for long periods of time, disrupt your normal lifestyle and make constant, split-second decisions in a fast moving live market… you are on the wrong path.
Just think about it…
If I am going to be spending a lot of time sitting in front of the computer battling the markets (and make no mistake about it being a battle), I am going to expect a lot in return.
The more effort I put in, the more money I need to make in order for my efforts to seem worth it.
Most people who try to trade this way end up failing or burning out and giving up because it just does not seem like the reward is worth the effort.
Yes, I know you really WANT and NEED Forex trading to be profitable. And you are dedicated to “doing whatever it takes” to make money trading Forex. But believe me, eventually spending hours and hours of high stress trading will take its toll.
And at some point, it is just not going to feel worth it.
Keep The Forex Learning Curve Short
One of the things that can make Forex trading feel like it is not worth it starts even before you start trading on a daily basis. It has to do with LEARNING how to trade Forex in the first place.
As I stated previously, there are a lot of different ways to trade Forex and an infinite amount of different strategies you can use. And that is a problem because you cannot decide on a strategy right for you without first learning about all the different strategies.
Unfortunately, it is easy to get caught in a learning loop where you are constantly switching from one way of trading to another and spending a lot of time learning.
If it takes you 5-10 years to finally learn how to trade Forex, how much are you going to have to start making for all the time and effort to seem worth it? A lot, right?
To combat this problem, make sure whatever trading approach you decide to employ can be learned very quickly. You simply must get into the position where you can make some money for your efforts. This means keeping the learning curve short and starting your actual trading in the real market as soon as possible.
Keep Forex Trading Simple & Low Stress
Going hand and hand with keeping the learning curve short, you need to keep your trading as simple as possible. You want your trading strategy to be simple and straightforward so you can immediately know what needs to be done (if anything) when you open and look at your charts.
By keeping your trading simple you can also dramatically reduce stress.
Another aspect of keeping your Forex trading simple is to use a 100% rules based trading strategy. You want your trading decisions to be based exclusively on what you see on the charts and what the trading rules are… instead of what you “think” is going to happen.
Removing yourself from the decision making process and relying on strict rules is a great way to reduce stress. The trading results become more about the strategy and less about you.
Of course, you still need to perform the trading actions perfectly. But since you are already using a simple trading strategy, that should not be a problem.
Trade Forex On The Daily Charts In 1 Minute A Day
A great way to make sure your Forex trading feels worth it is to trade off the Daily time frame. This means you are only making trading decisions ONCE a day, which should take no longer than 1 minute (since the strategy is simple and rules based).
The higher the time frame you trade from, the stronger the trade signals. Therefore, instead of trading MORE OFTEN on less reliable charts, you are trading LESS OFTEN on more reliable charts.
Reducing your trading down to 1 minute a day makes it very easy for Forex trading to feel worth it. After all, you are not spending a lot of time trading, so the compensation you need to make trading feel worth it is automatically reduced.
Now let’s go over a little trick to help decide if Forex trading is really worth it.
Forex Results Broken Down To An Hourly Wage
Now let’s look at trading Forex the way I do.
I trade a very simple trading strategy on the Daily charts in 1 minute a day. That works out to about 4 hours and 20 minutes of trading a YEAR. This means I can feel the trading is worth it as long as I am profitable over the long term.
Let’s look at the results of the last 6 years and calculate earnings per hour. Here are my 3 accounts compared to the S&P 500. This assumes an initial of investment of $2000 to start in each:
So, 6 years of trading works out to be 26 hours of trading.
- Account 1: $38,415 / 26 = $1,477.50 per hour
- Account 2: $37,053 / 26 = $1,425.11 per hour
- Account 3: $55,323 / 26 = $2,127.80 per hour
Wow. From over $1,000 to over $2,000 an hour from simple trading.
You can decide for yourself if earnings are exceeding efforts. I would definitely say yes.
So, Is Forex Trading Really Worth It?
The truth is, the answer to this question is… It depends.
But here is the good news… It depends on you.
If you want Forex trading to be worth it, your earnings must exceed your efforts.
Here are some tips to make sure your Forex trading earnings exceed your efforts:
- Keep the learning curve short… so you can start trading (and profiting) as soon as possible.
- Keep your Forex trading simple and low stress… use a simple, 100% rules based strategy.
- Keep your trading on the Daily charts… meaning all trading activities can be done in 1 minute a day.
- Test to see if your trading earnings exceed your efforts by calculating profit per hour.
To sum it up…
If you trade in a way that is very time consuming, difficult and frustrating… It is very unlikely Forex trading is going to feel “worth it”.
However, if you trade in a way that takes very little time, easy and low stress… It is very easy for earnings to exceed effort.
Again, the good news is… you decide how you want to engage in the Forex market. So, make sure it is in a way that is going to be worth it.
To Your Wealth,