Navigating the Path to Financial Freedom: My Investment Journey
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Chapter 1: The Journey Begins
This narrative is a personal account that reflects my experiences and insights, specifically those of Seyi Akinsanya. It’s crucial to understand that there are no absolute truths in this discussion—just individual perspectives and values.
With that in mind, let’s dive into the fascinating realm of Forex trading.
In late 2018, I found myself filled with enthusiasm after someone introduced me to the basics of Forex trading, claiming it was "incredibly simple." Armed with fundamental analysis and leverage, I was eager to capitalize on currency fluctuations.
My excitement was reminiscent of when I first encountered football betting in 2016, a moment that highlights how easily I can get swept up in new ventures.
However, unlike my previous foray into gambling, I opted to tread carefully this time. I dedicated nearly two months to studying trading methodologies and fundamental market analysis through various resources, including books, articles, and informative YouTube videos, alongside reputable websites like babypips.com.
The outcome? I realized that I was likely to incur consistent losses as a Forex trader. The mental resilience, time dedication, and analytical skills required for successful day trading were beyond my current capabilities. Moreover, I lacked the necessary capital for establishing long-term positions, which I believe are more advantageous than day trading strategies. Ultimately, my limited capital became the deciding factor in my decision-making.
Risk vs Reward
Understanding the risk-reward ratio is fundamental to any prudent investment strategy. A smaller capital base inherently involves greater risks. For instance, doubling $1,000 does not equate to the same utility as doubling $10,000. To achieve similar profits in the latter case, a trader with $1,000 would need to seek trades that could potentially yield tenfold returns.
In my approach to Forex trading, I found that my risk tolerance prompted me to minimize leverage in order to shield long-term trades from market volatility.
The realization struck me: if I had a significant capital reserve, say $10,000, why would I gamble it in the unpredictable realm of currency trading when I could invest it in more stable avenues, like bonds, stocks, or real estate? This line of reasoning consistently draws me back to the traditional investing route.
The capital required to mitigate leverage in speculative trading is so substantial that it logically leads me to opt for investment strategies instead. I prefer a steady growth of my capital over chasing quick gains; the financial markets are not an amusement park for me, as I am not in pursuit of thrills.
Amassing Capital: The Role of Salary
This is where my salary plays a pivotal role. As a relatively young individual, I feel a certain urgency in my financial endeavors. Moreover, I don't possess the entrepreneurial spirit that drives many others.
I want to invest in shares now, evaluate promising companies, and comprehend various business models. My eagerness sometimes leads me to act impulsively.
I am conscious of my risk tolerance and investment philosophy. Instead of hastily investing every penny I earn, it’s more prudent for me to accumulate sufficient capital through saving, enabling me to open long-term positions that yield significant returns.
An annualized return of 8–10% is commendable, especially when my portfolio isn't on par with the initial ticket prices of the US Open. This thought process continually reinforces my belief that my path leads me back to steady investing and earning a reliable salary.
That said, this perspective is uniquely mine. I encourage readers to introspect and evaluate their activities in light of their personal values and aspirations. Sticking with a successful strategy is much easier when it resonates with your true self.
I hope you found this reflection enjoyable. If it resonated with you, consider subscribing to my email list to receive my articles as soon as they’re published.
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