you hear it being tossed around
everywhere that forex is a scam and in
this video my goal is to prove
unequivocally that forex is just like
any other business
[Music]
pretty much everybody that watches my
videos wants to learn how to make money
online whether it's starting their own
online business or learning how to day
trade and i'm here to tell you that it's
one in the same thing so i'm to give you
two examples one of a business that you
can start online and the other one is
trading forex so let's get into my
makeshift whiteboard okay so let's say
that you want to start an online
business because you think brick and
mortar is dying and it's all going to be
done online so you have to start with
some product correct and usually if you
order something from china like ali
express or alibaba where you can buy in
bulk you're going to get about a
thousand units so let's just say you
have ten thousand dollars to invest in
your product if you find something
pretty decent it's gonna be around the
10
range so a thousand units is gonna cost
you ten thousand dollars now the issue
is nobody knows about your product or
your company so what you have to do is
start a website and start advertising to
that website about your product there
are eight million website builders on
the internet so you can do that for
pretty much free with like eight youtube
videos worth of knowledge basically you
just use a free template and then buy
the domain which is usually like 99
cents plus a shop on that which is like
10 so you're in it about 11 on the
website where most of the money needs to
go is towards advertising so if you run
facebook ads or instagram ads to drive
traffic to your website with your
awesome products you're going to be
looking at a lot of money invested there
and they need to convert well so you're
looking at a budget about five thousand
dollars so your total investment right
now is fifteen thousand dollars now to
be competitive in the reselling of
chinese goods you need to keep your
price low so twenty dollars each for
your product that overall is costing you
fifteen dollars each let's say that you
sell all one thousand units your gross
revenue is going to be twenty thousand
dollars and then you need to subtract
your costs which is fifteen thousand
dollars which leaves you a net revenue
of five thousand dollars there are a few
nuances here which you need to consider
like product photography whether you
could just use the images that you got
from the internet or making your own and
on top of that you need to think about
storing those 1000 items and shipping
those 1000 items there are other methods
of figuring that out whether it's using
amazon or some other services that
handles your shipping for you but most
people starting their own business are
going to be shipping their units out of
their garage okay now let's look at
forex trading as a business let's say
that you want to invest the same amount
that you did with your product so 10 000
original investment now what you need to
do to start trading is find a broker i
like using 501 leverage a lot of people
don't like that they think that it's
over leveraging i look at it as a way
that i have more buying power that way
so find a broker that has 500 to 1
leverage or whatever best suits you with
that 10 000 and 500 to 1 leverage you
now have 5 million dollars worth of
buying power okay i have another video
where i go deep into depth in pips and
lots but this is a very basic
explanation there are three units of
measure when buying different 4x pairs
there is a micro lot a mini law and a
standard lot a standard lot is 100 000
units of that currency so if you are
trading one standard lot which is a
hundred thousand units and you're buying
euro usd
that means one standard lot costs one
hundred and thirteen thousand two
hundred and eighty one dollars now if
you keep a good risk to reward ratio of
two to one meaning that one percent risk
per trade is one hundred dollars and two
percent profit gold per trade is two
hundred dollars you're risking one
percent of your ten thousand dollar
original investment so just to simplify
this even more let's just say you bought
one standard lot 100 000 units of euro
usd at 1.13281
and the price started to go up and you
sold it at 1.13481
meaning the price went up a fraction of
a cent but you were able to make money
off of it because your original purchase
was 113
281 but then when you sold it it was 113
481 meaning you bought a product and
then sold a product and made a profit of
200
now that's if the trade went in your
originally planned direction if it did
not and the price went down to
1.13181 you would have gotten out of
your position and you would have lost
100
i need to put that out there because you
will have losing trades so let's say
that your profit goal was the same as
the small online business five thousand
dollars in order to get that five
thousand dollar profit goal you need to
divide it by the two hundred dollars you
would get per trade that you won so you
would only need 25 winning trades but
nobody has a 100 win rate so let's just
stick with the lowest possible 50 win
rate meaning that out of 20 trades you
win 10 of them and you lose 10 of them
that means that you would have to trade
100 times and have 50 winners and 50
losers to get to 5 000 in profit now
depending on what time frame you trade
or how many pairs that you trade you
could do this in a week or a month or
three months it all depends on you and
your strategy and i have a ton of
different strategies on this youtube
channel so pick the one that best suits
you so what are the benefits of doing
this versus a traditional online
business well the first issue with an
online business is that you're new and
nobody knows about you so you have to
spend a lot of money on marketing that's
why i budgeted five thousand dollars
with this you don't need a marketing
budget you just need the knowledge which
you can get on this youtube channel the
other benefit is that with forex trading
you can try it on a demo account and
grow a fake ten thousand dollar account
up five thousand dollars in profit
however with a traditional online
business you can't just like pretend to
do it and then do it in real life you
have to invest the money have the
product store the product and hope to
god that your sales and marketing is
good enough to sell that product now the
issue is with anybody that wants to
start their own business is needing the
capital to start correct so you have ten
thousand dollars to invest in your own
small business plus five thousand
dollars in sales and marketing you're
gonna start growing that but you need to
grow to that ten thousand dollars you
need to work your normal full-time job
and save up money along the way same
with forex if you have your own account
you want to fund it with ten thousand
dollars you have to save up that money
and then fund it into a brokerage
account most people that are trying to
learn how to make money online don't
have a lot of income that they can save
from their normal job so it's a little
bit difficult to get to that ten
thousand dollar mark that's why growing
a small forex account is one of the most
popular videos on my youtube channel but
there is another option for you guys
that have been watching this channel for
quite some time and that is a funded
account basically there are numerous
companies out there that if you give
them 600 700 800
they will allow you to access a demo
account with a hundred thousand dollars
in it and then you're going to trade
that demo account and get a profit of 10
prove to them that you're a good trader
and then they will give you a live
account with a real amount of 100 000
and you have an 80 20 split so you get
80 of the profits they get 20 because
they're the ones risking all their money
but they won't give you that money until
you pass the evaluation phase which is a
month so instead of investing 10 000
into your small business you can invest
600 into your small business but funded
accounts are not for everybody it's at
your discretion what i wanted you guys
to realize with this video is that the
entire world of business revolves around
buying and selling whether it's products
or services the person that sold me this
mouse made this product for way less
than i bought it for they made money off
of the difference between manufacturing
and the price that i paid for it buying
and selling i am the end consumer and i
paid a hundred dollars for this the
product probably cost them let's say 25
and then another 25 in marketing and
overhead costs like employees and
buildings and manufacturing plants and
all of that so their net revenue on this
is 50 bucks forex trading is the exact
same thing you are buying something and
selling it at a higher price i made this
video to alleviate my dms because i get
dm'd all the time hey you know i heard
about this forex thing is it a scam and
i got tired of explaining myself over
and over and over in these dms so now i
can just link this video to them and if
your aunt becky is the one that's
telling you that forex is a scam you
could send this video to her but if you
guys are interested in this i have a
link to the broker that i use for my day
trading down below as well as a couple
of options for funded accounts where you
can pay somebody and they give you a
hundred thousand dollar demo account to
prove that you're a good trader now i'm
not saying one is worse than the other
one i know a lot of people that have
been very successful with online
businesses i've had one myself but i got
out competed by the massive amounts of
competition that's out there which is
why i got into day trading now if you
guys are interested in learning how to
grow a small forex account in a very
risky way watch this video right here
and if you guys did get some value out
of this video and you like the way that
i teach and explain things make sure
you're subscribed to the channel by
clicking this button right here thanks
so much for watching and we'll see you
in the next video