What Can The Best Stock Market Picks Teach You About Forex?
I was reading an article called “What $1,000 invested in Apple, Netflix and more 10 years ago is worth today” and it made me think of a few things that could help Forex traders.
Basically the article shows what would have happened if you made a $1,000 investment in some of the best companies on the stock market. Here is an overview of the companies and gains over the last 10 years listed in the article:
- Apple: 28.13% average annualized return
- Netflix: 42.31% average annualized return
- Alphabet (Googles holding company): 15.66% average annualized return
- Walt Disney: 13.81% average annualized return
- Coca-Cola: 9.99% average annualized return
- Wal-Mart Stores: 7.26% average annualized return
- Microsoft: 10.99% average annualized return
- Nike: 20.75% average annualized return
- General Electric: 2.82% average annualized return
- Amazon: 37.94% average annualized return
- Pfizer: 6.81% average annualized return
- Mylan NV: 7.75% average annualized return
- McDonald’s: 16.16% average annualized return
- Starbucks: 14.82% average annualized return
- FedEx: 5.62% average annualized return
Now, I think most people would agree that these are some monster companies in the stock market. And if you could turn back time 10 years, these would be some great companies to invest in. (They probably still are, but that is not what this post is about).
Here are some thoughts I want to share with Forex traders…
Thought 1: Think Long Term
Did you notice? The article was about what would have happened over the past 10 years. It was not about what happened over the last year, or last month or last day of trading.
From running my signals service, Forex Investing Live, I have a lot of contact with at-home Forex traders. And I can tell you, most of them are not looking at trading over the long term. They want to know what is happening “now”. Is the trading strategy working “now”?
Even if they look at longer term results to decide if they want to give the service a try, they are very quick to abandon the service if they suffer a few losses. If the service starts having a few bad trades, they say, “the strategy has stopped working”. Time to look for something else.
This is non-sense. This would be like selling Netflix because it had a mediocre month. You must look at performance over a longer term than just a few trades, or even a few months. And when you start trading Forex, you should expect performance to fluctuate from one month to the next. It is the long term profitability that matters. (And to get the long term profits, you need to trade for the long term).
Thought 2: Lower Your Expectations
During the last 10 years, it is safe to say these companies had some years that were better than others. But every company ended up the 10 year stretch with what the article states as “impressive average annualized returns in the past decade”. And even if you don’t know a lot about stock trading, most people would agree these big names in the market would be stocks they wished they owned.
The average annualized returns from these big name companies ranged from 2.82% to 42.31% over the past 10 years. And if you just got in the stock market 10 years ago and these were the companies you invested in, you would have been called a genius. Imagine, picking these great companies with great growth right out of the gate.
But again, from my experience with at home Forex traders through my signals service, Forex Investing Live, most people would laugh at these returns. They want 20% to 100% a month… not a year. And if they don’t get that… they think the trading “sucks”.
Now look, I am not saying bigger gains are not possible through Forex trading. In my course subscribers get after 20 days, Forex “Money That Matters”, I show how results for 2015 trading Forex End Of Day Signals would have returned OVER 200%! But with that being said, I think most at home traders would benefit from lowering their expectations.
Forex trading is a serious business. So, you should look to grow your money while simultaneously controlling risk. This is exactly what these big companies are doing.
Are you approaching your Forex trading like you are the CEO of a company
like Apple, Netflix or McDonald’s?
Are you expecting to make millions in a very short time and without any effort?
How you answer this can be the difference between being a profitable Forex trader, or just another Forex trading failure.
If you are serious about Forex trading, I invite you to take our Free 14 Day Trial at Forex Investing Live. You’ll be able to see for yourselves how we trade, and what is possible in only 10 minutes a trading day.http://tradetheforexmarket.com/forex/what-can-the-best-stock-market-picks-teach-you-about-forex/http://tradetheforexmarket.com/wp-content/uploads/2016/10/What-Can-The-Best-Stock-Market-Picks-Teach-You-About-Forex_.pnghttp://tradetheforexmarket.com/wp-content/uploads/2016/10/What-Can-The-Best-Stock-Market-Picks-Teach-You-About-Forex_-150x150.pngBlogFeaturedForexforex end of day,forex investing live,forex investing live signals,forex trading,set and forget forex