Forex Trading For Financial Freedom: Step-By-Step Plan
I get asked a lot… “How do I make 10k a month while living the lifestyle I want?” or “How do I use Forex trading for financial freedom?”
This guide aims to provide a detailed step-by-step guide to achieve that. So hang in there and take your time to read this guide. It will be well worth your time.
While it takes a great deal of work to get to 10k a month, the answer lies in one simple concept:
Compounding interest
You know that new savings account your banker keeps trying to sell you. It comes with an interest rate.
It’s the same with forex trading. With a proper plan, your account grows every month at a (much higher) rate, which we will call your Wealth Accumulation rate or WACC rate.
The higher this rate, the better off your bank account gets.
Now let's create a plan that utilizes this wealth accumulation principle. And makes you 10k a month.
By reverse-engineering the 10k-a-month goal, we can get to 7 simple & actionable steps:
1 – Determine Your Freedom Number
This is the end goal.
It's the dollar amount you want to be making every month so you live the lifestyle you want.
For simplicity's sake, we will use 10,000 dollars/month as a benchmark for an individual to live a ‘good' life.
2- Number of FX Strategies
This is the number of strategies you trade. It depends on your level of comfort with trading. As a forex trader, a great starting point is 3 strategies.
I advise my Mastermind students to trade these 3 strategies:
- Breakouts
- Reversals
- Trending markets
3- Your Monthly Rate of Return
This is where the magic happens. It's the percentage rate at which your capital grows, or as we know it – your wealth accumulation rate.
Take 3 FX strategies: Breakout, Reversals, and Trending.
With discipline, every one of these strategies can generate a return upwards of 5% monthly. But let's be conservative and take 3% instead.
3% monthly x 3 Strategies = 9% monthly
9% is your wealth accumulation rate.
4- Your Required Capital
What amount of capital do you need to generate 10,000 dollars a month with your 9% rate?
In this case, it is 110,000 (or 10,000/9%)
5- Your Current Capital
This is the amount of money you currently have. It could be 10k, 20k or 0.
6- Capital Growth Principle
Based on the Babylonian Law of Financial Success, this is the part of your income that you save every month.
Your monthly saving rate has to be at least 25%. But the higher your saving rate the faster your capital grows, the sooner you get to 10k a month.
See what happens there?
Yes, you are growing your capital which then grows your monthly income!
7- External Capital
This is money you need if you want to get to 10k a month right now.
You will be investing FX investors' money while taking 20% of the investment returns.
Final Remarks
So in a nutshell, that's how you'll be able to use your Forex trading for financial freedom.
If you want to watch the full video, head over to the Desire To Trade Youtube channel!
And you can learn my 3+ main trading strategies in this playlist!
If you got value from this video, you might want to consider checking out the Desire To TRADE Academy where I’ll help you develop a solid trading strategy, implement the things successful traders do, and more! That's all going to be done while you build a lifestyle you love!
If you are wondering how to put together a solid trading plan for trading Forex for others, I recommend you grab my FREE One-Page Trading Plan Template. It will help you simplify your trading strategy on a single page!
