Now We’re Getting Somewhere!
ByOh my gosh…today’s lessons get into the most important part of the course…WOW! Lesson 17 is called “Getting Down to What Really Counts,” and I can truly say that I was blown away. Syd took me through an excel spreadsheet demonstrating the true power of compounding my capital. The spreadsheet is very user friendly as I only have to enter a few key details and the rest is calculated automatically…sweet!The power of compounding quickly becomes apparent as you scroll down the lesson and see how quickly the numbers add up. Sid’s goal in this lesson is to bring home the point that I only need a few safe trades a week to have a stress-less and enjoyable trading life, not to mention a steady growing balance in my account.
Lesson 18 expands even further on the subject, revealing the secret to being a successful forex trader. This lesson is powerful stuff, but I will only touch on it a bit here, summarizing it up by saying that it is important to give up any ideas of over trading, instant success and chasing big pips. It is so obvious that compounding is the key to success in forex.
Lesson 19 gets into my business plan. For training purposes (and I think it is quite effective), Sid had me develop a business plan in which I could draw my salary and continue to compound my capital over a 2 year period using a worst case scenario. (Keep in mind that this is just the first goal, not the only goal.) By using the worst case scenario it became evident that even in the worst case, it is quite doable and the earning potential is very exciting.
The three lessons were brought together by actually getting to play with the excel spreadsheet and figure out how long it would take to meet my business plan. The numbers are incredible, but the most amazing thing is that this really puts it into perspective. It really only takes a small amount of pips, in a short period of time each day to safely grow my capital if I can truly conquer patience and discipline.
The week ended with a recorded meeting, and it is great stuff. Sid recapped the week’s lessons and really took me on a journey about what it all really means. This is truly life changing stuff. It’s not about getting rich, but rather about changing my life for the better. I planned my first goal, but then I was challenged to think about others…things like, giving up the job, no more commute, getting out of the rat race, looking at what I could gain because I will have so much more free time on my hands, and considering the idea of leisure and fun time. This is way better than I anticipated. Sid says that I am not going to become a successful forex trader, but rather a successful compounder.
And, get this…the better I do, the less I need to do because I will be constantly growing my capital. How’s that for a whole new mindset? I was always taught to work harder to get ahead…here, I can work less and still get amazing results. That is quite a unique feature to forex. If I treat this like a business and don’t get carried away by the numbers, I can set myself up nicely for a great retirement. Who wouldn’t like that?
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