Make Money With Forex Trading With A Realistic Plan That Avoids The Common Pitfalls Keeping Others From A Stable Trading Income
Many people want to make money with Forex trading. Some even want to make enough money to replace their day job. Well, hold on… not that fast.
There are a lot of pitfalls standing in the way between you and a predictable, stable income through Forex trading.
But don’t get discouraged. It is possible to make money Forex trading. And it is possible to make a stable income through your trading activities.
You just have to go about it the right way… and have a plan.
In this post, I want to go over a realistic plan to make money trading Forex. This is actually the plan I am using.
If done correctly, it can replace your income. But it is even better as a way to supplement your income and accumulate wealth faster.
However, I must warn you. This is not the typical hype you see around Forex trading that sucks you into believing unrealistic returns. I’m not claiming you are going to be a millionaire in a week or any rubbish like that.
Don’t get me wrong, making money Forex trading is a real opportunity. And you don’t even need to reach the level where it replaces your regular income for it to have a tremendous impact on your wealth accumulation and future financial security.
I truly believe everyone should be making money with Forex trading.
The Difference Between Forex Investing
And Making Money Forex Trading
If you’ve read anything from me before, you probably know I approach Forex trading from an investor standpoint. I focus on accumulating wealth faster than other investment opportunities.
I achieve rapid wealth accumulation by getting an average yearly return that is much higher than traditional investment returns.
Here are my accounts trading the GBPJPY currency pair:
As you can see, much higher returns are possible through simple Forex trading than the 6%-8% average a year other investors are happy with.
And I can do the same trading the BTCUSD and ETHUSD currency pairs as well:
When talking about Forex investing, the focus is on growing your wealth. But what about a way to make money with Forex trading that you can actually spend?
Make Money With Forex Trading You Can Spend
When people talk about how to make money with Forex trading I feel it is different from Forex investing. They want to make money from Forex trading they can take out of the market and actually spend.
This could be to help pay their bills, improve their lives or simply relieve the stress of living paycheck to paycheck. Or in the most dramatic case, the desire could be to completely replace their regular income and live 100% off their trading activities.
So, when we are talking about making money trading Forex, we are talking about making money we can take out at some point and SPEND. And I think this is a very attractive proposition for a lot of people.
Unfortunately, more often than not, people who want to make money with Forex trading go about it the wrong way.
The Wrong Approach To Make Money Forex Trading In Search Of A Stable Trading Income
This is going to be a generalization. But I have talked to enough aspiring Forex traders by running my services over the years to come to some conclusions about why many Forex traders fail. I hear this type of thing over and over again.
In order to help explain this concept, I’m going to use some metaphors.
Keep in mind, this is what I think is going on. And I also think this is the WRONG way to approach Forex trading.
The Faucet, Cup and Barrel Metaphor
The idea I feel most Forex traders have is to start out with a very small investment (the cup), get huge returns very fast (the faucet) and take out large amounts of profits to spend (the barrel).
This scenario would be great… if it were possible.
Imagine starting with a cup size investment, opening a huge faucet of profits and filling a barrel of money you can immediately spend. Sounds great, right?
Let’s look at this with numbers:
- The Cup: $200
- The Faucet: 1000% Gains
- The Barrel: $2000 profits
Do this every month. Rinse and repeat.
Maybe too good to be true? Yes.
This is the wrong way to approach Forex trading to make money. For sure, the allure of this sucks a lot of people into giving Forex a try. But it is just not realistic.
At the end of the day, this approach to make money Forex trading fails to achieve the desired goal… which is a stable, predictable income from your Forex trading activities.
The opposite actually happens. People lose money. And then they move on to the next thing promising this unrealistic scenario, or they quit Forex trading all together.
And that is a shame, because approached the correct way, Forex trading can be responsible for life changing profits over time. All you need is a plan.
A Realistic Plan To Make Money Forex Trading
OK, if this powerful faucet, small cup and huge barrel concept is wrong… what is right? Let’s stick with this type of metaphor.
The Faucet, Barrel, Bucket, Cup Metaphor (h3)
This is how I make money with Forex trading.
Here is how it works…
- You build the amount of money you have invested in the Forex market (the barrel) to a level where it becomes relatively easy to reach your profit goals with realistic results.
- Your trading activity (the faucet) produces profits at a reasonable level (which is still much better than traditional investing).
- At certain time intervals, you take your profits from your trading accounts (barrel) and put it into a reserve account (the bucket).
- From the bucket, you can take some of the profits (the cup) to spend.
Think of it this way…
The faucet fills the barrel to the point where it overflows into the bucket. As the bucket fills up it overflows into the cup. You can spend the money in the cup (or save it, or reinvest it).
I know what you’re thinking… “how disappointing”. You want to spend a barrel of money, not a cup.
Don’t get discouraged. You can build the cup size to any income level you want… and I’ll tell you how. But first let me go into some more details about how this all works.
A Word About The Bucket (Broker Wallet)
I’m going to go into specifics on how I apply the Faucet-Barrel-Bucket-Cup Protocol. There might be some small changes you’ll have to make to apply the same approach, but I highly suggest sticking to this approach.
I trade Forex at this broker:
This is my pick for trading Cryptocurrency like the BTCUSD and ETHUSD currency pairs and the broker I use for Bitcoin Signals Blast Off. Excellent trading conditions and 24/7 trading is the best environment for profiting from the Crypto market.
This is my pick for trading Cryptocurrency like the BTCUSD and ETHUSD currency pairs and the broker I use for Bitcoin Signals Blast Off.
Excellent trading conditions and 24/7 trading is the best environment for profiting from the Crypto market.
My back office at this broker, like many others, has a wallet. The Wallet is where you can deposit funds, either from outside sources or your trading accounts. So you can have money at the broker, but not directly inside the trading accounts.
Sidebar: If you are trading at a broker that does not have a Wallet, you can always open another trading account and deposit funds you don’t want involved with trading there. But if at all possible, look for a broker with this Wallet setup.
I find the Wallet to be an attractive feature. Think of the Wallet as the BUCKET in the F-B-B-C Protocol.
The Wallet has two functions.
Wallet Function 1: Topup Trading Accounts
I keep some money in the Wallet to topup my trading accounts if they need it. I call this “The Training Wheels Protocol”.
Let’s say I want to start trading with a $5000 balance. I don’t want my trading to be below that level. So, in the beginning, if I have a losing trade, I can top up the balance from the money I have in the wallet.
Once I get some winning trades and my trading account stays ABOVE the $5000 level, I no longer need to use the money from the Wallet to cover losses. At this point, I am only dealing with “profits”.
So, I need to keep enough money in the Bucket (wallet) to be able to top up my trading accounts in the beginning if they need it.
Wallet Function 2: Holding Place For Monthly Withdraws
At some point when my profits accumulate, I like to reset my accounts and take the profits.
Using the example above, if I started with a $5000 account, at some point I would like to take my profits and reset the account back to $5000. But here is the thing… I don’t withdraw all the profits to spend immediately.
I first put the profits in my Wallet. Then I leave some money to start “The Training Wheels Protocol” again and topup my account if necessary.
The extra money can be used. But not all at once.
I use a withdrawal rate that allows the Bucket to remain near full. What do I mean by that?
In Forex trading, it is normal for some months to be better than others. Some months will have extraordinary profits while others can actually lose money. This is why it is not possible to withdraw the exact amount of predictable money every month from your profits alone.
However, if you withdraw an amount less than what you keep in your Bucket, you can continue to make withdrawals even when there is a mediocre month or losing month.
How I Apply The F-B-B-C Protocol
To Make Money With Forex Trading
I understand this might all sound confusing. Wouldn’t it be simpler just to win all your Forex trades and make tons of money with a very small investment?
Of course it would. But as we discussed earlier, this is not a reality.
However, by applying the F-B-B-C Protocol… you can make money with Forex trading and take out a predictable amount on regular intervals.
Here is how it works in stages:
- Stage 1: Start your trading account with the money you have to invest and trade it up to your “Fully Funded” Barrel level.
- Stage 2: Trade the Fully Funded account for a specific period of time.
- Stage 3: Reset your account to the Fully Funded level and put the profits in your Wallet (Bucket)
- Stage 4: While leaving a certain amount in the Bucket for The Training Wheels Protocol, you can take a certain amount out of the market to spend at regular intervals. (The trick is to leave enough in the Bucket to cover any low performance months that might come your way).
Your trading faucet fills the barrel which overflows to fill the bucket. And as long as you withdraw from the bucket at a pace slower than it is being filled… you can take predictable amounts (cups) from the bucket at regular intervals.
How To Grow The Money You Make With Forex To Any Level You Want
Ok, let’s review the F-B-B-C Protocol.
- Your trading FAUCET produces higher than average returns
- Your BARREL fills with profits
- The overflow goes into the BUCKET to top up future trading and stabilize withdrawals
- You withdrawal cups size amounts of money on a regular basis
So, how do you fill your BUCKET up faster so there is more overflow into the CUP for you to withdraw and spend?
Simple. Set up MULTIPLE BARRELS that feed into the same Bucket.
Here is how I am doing it:
Predictable Monthly Withdrawals
And there is still room to grow. The more Barrels I trade going into the same Bucket… the larger the cup size grows and the more money I can take out of the market to use however I like.
Now don’t get me wrong. I did not set this up all at once. I start with one account, then two, then three and so on.
But the point is I got started and I have a systematic plan in place that allows me to make money with Forex trading I can actually spend. And it never has to stop.
And what’s even better is I can grow this to any income level I want… it keeps growing the more accounts I trade.
I’ve talked a lot about how I use Forex trading to accumulate wealth faster, create multiple income streams and secure my financial future. So, I’ve covered the “growth” portion of what I do in depth.
I thought it would be a good idea to show you the “withdraw” portion of what I do as well. I’m sure it is no surprise, taking money out of the market to spend is done with strategic planning, just like my trading strategy and growth plan.
Now you know how to make money with Forex trading and be able to spend that money the right way.
To Your Wealth,
If you’re still not ready to start Forex trading to accumulate wealth, get this free training: