There’s a $6.6 Trillion A Day Market Hiding in Plain Sight

Summary

The web content describes the author's first day of learning about forex trading, highlighting the market's immense daily trading volume and key insights gained from successful traders.

Abstract

The article recounts the author's initial exploration into the forex market, expressing awe at the staggering $6.6 trillion daily trading volume. It emphasizes the market's size by comparing it to the cost of the Apollo program and the total value of Bitcoin. The author begins their forex journey with BabyPips, learning the basics of currency pairs and market operation. Insights from FundedNext, based on data from 4,000 profitable traders, reveal that successful forex trading involves having an average win amount greater than the maximum loss, focusing on a single currency pair, and trading selectively, around 3-5 times per month. The author is enthusiastic about mastering forex trading and shares their commitment to continued learning and achieving proficiency in risk management and strategy development.

Opinions

The author is impressed by the vastness of the forex market, considering it an opportunity for substantial profits.
Success in forex trading is attributed to a disciplined approach to risk management, specifically letting winners run and cutting losses short.
Specialization in a single currency pair is seen as crucial for in-depth understanding and successful trading.
The author challenges the notion that frequent trading is necessary for profit, instead favoring quality over quantity with selective, well-researched trades.
There is an optimistic outlook on the potential to exploit the forex market for significant financial gain with the right knowledge and strategy.

And it might be possible to exploit it for incredible profits!

Source: Midjourney

6.Trillion.Freaking.Dollars.

I want you to think about what an ungodly, vast amount of wealth that is. It’s the wealth of nations. It’s the cost of the Apollo program, in 2020 dollars, 25 times over.

It’s all the bitcoins in the world, multiplied a couple times, and then some.

If you lined up $6,600,000,000,000 in dollar bills, they would go from Earth to Mars and back again….18 times!!

Okay, just kidding, but it’s still a pretty huge amount of money. And that’s how much is traded every single day in the forex markets.

This is day 1 of my forex journey and I just started from absolute scratch learning about it from BabyPips. Now, I knew it was a pretty gigantic market, but I had no idea it was dozens of times larger than the NYSE.

And it’s open 24 hours a day, 5 days a week.

Surely there has to be a way to squeeze out a few million out of it!

What I Learned Today: Day 1

Today was all about the very basics: what is forex, and how does it operate? I learned about how currency pairs are represented, as well as the difference between major, crosses, and exotic pairs.

I also started reading an extremely interesting compilation of statistics that were put together by FundedNext. Essentially, they looked at about 4,000 profitable traders and tried to connect the dots to see what differentiates them from the rest.

These are the key takeaways. No matter what strategy I’m going to try, there are a couple of things I have to remember:

Every successful fx trader’s average win amount is GREATER than the maximum loss on a trade they have ever seen. It sounds extremely daunting to reach this level of proficiency, but a lot of it is just about learning proper risk management, especially by avoiding moving your stop loss. Basically, let your winners run hard, and make sure the losers end early.

The most profitable traders only focus on ONE asset. This is extremely important. How will you know the best days to trade, the most active hours, upcoming potentially volatility inducing financial reports, etc… for all currency pairs? You can’t keep up with all that information, and if you really want to be among the best, you have to focus on one pair and work it to the bone.

The best traders only trade 3–5 times per month. Holy cow, here I was thinking trading was all about scalping the market 100s of times in order to grind out a profit. It makes sense though, one good trade is worth a thousand medicore wins and (god fobid), painful losses. It’s better to spend a week looking for a great setup and entering and exiting at every opportunity.

There were a bunch more tips, but those were the ones that really stuck with me.

I’m so freaking excited to begin learning about the intricacies of FX. I feel like it’s been a long, LONG time coming. I managed to score 15/15 in the first BabyPips quiz, and even though it was pretty simple, I’m still quite proud of it. I’ll keep going, and learning as much as I can.

Thank you for joining me on my journey!