All of the rules and guidelines are good. They can really help you focus on trading as well as bring you more success. But in reality the only motivation for success that you need is knowing how much you can earn while trading forex.
I understand that completely. We all need some concrete numbers in order to be fully aware of what we do and where a certain road is going to lead us. And in this case it is just like with any other job – you need to know how much your time and your effort are going to be worth.
Plus, in this case the outcome is even more important to you because unlike in any other job you are actually putting your own money down.
You are probably wondering how much you can earn just because of any other forex success story. But I have to tell you right here – you cannot replicate other successes. If your friend earned $10.000 in the last 3 months it doesn’t mean that you are going to be left with that same results by posting the same trades.
The only motivation for success that you need is knowing how much you can earn while trading forex.
The thing is that trader society is very susceptible towards losing. And every misstep has the possibility to leave you with the loser mark. In order to escape that fate, you have to combine your win rate and risk reward in order to form your expectancy.
There is even a special equation I order to count your expectancy:
E= [1+ (W/L)] x P – 1
Here: W is the size of your average wins
L is the size of your average loss
P is your winning rate.
The equation can be used in order to count how much of a winning return you have per one dollar you invest.
Of course in forex winning one of the most important factors is how much you are willing to bet. Although here it is important to remember to invest only as much as you are willing to lose in case of a bad trade. Never overextend your trading budget! But it is true – the more you are willing to invest the more your return will be. That’s just simple math.
How often do you trade is also a key point here. You are not going to be able to make your living by trading forex only a month per year. You have to invest a lot of time into your account if you want it to be profitable.
Using all of the above factors you can easily imagine how much you can earn with your account. Of course, you are going to have to sit down and actually count your possible returns, but it is all worth it as it is just going to be another motivation for your forex future.