Mr. Jordan Lindsey, the founder of JCL Capital, is a staunch believer that anyone can trade his or her way to riches in the forex market. Mr. Lindsey has described how starting with $1,000 you could predictably amass over $1 million in your forex account in just ten years. That is made possible by two potent forces. One is compound interest, and the other is a trading plan with “positive expectancy.”
Positive expectancy is just a fancy way of saying that a plan is profitable. Of course, in forex trading profits can be elusive. Without an edge, you can not trade profitably. Not having an edge implies that you are merely guessing. At best a guessing approach to the market may work 50 percent of the time, and that is optimistically speaking.
An understanding of technical analysis and probabilities are where a trader’s advantage originates. One tool of technical analysis which every trader needs to become familiar with is the Fibonacci retracement. This one method of analyzing price action alone is sufficient to make a losing trader profitable if used appropriately. Jordan Lindsey suggests that execution is essential to one’s success. Correctly executed, Fibonacci retracements have a reliability of 60 to 70 percent accuracy when predicting profit targets.
Jordan Lindsey has explained how anyone can generate returns of 7% per month, and by compounding the interest for ten years become a millionaire. Of all of the many technical analysis tools which a trader could make use of, few match the effectiveness of Fibonacci retracements in nailing profit targets. They are the next best thing to a crystal ball and indispensable to anyone who is serious about achieving Jordan Lindsey’s goal of 7 percent monthly growth in their forex account.
Sticking to your plan, and adhering to your goals, as Jordan Lindsey advises, becomes less of a mental burden when you regularly see positive results, as each successful trade breeds further confidence. Thus giving you the discipline to continue without making silly mistakes. By not using Fibonacci retracements in your trading you are making your climb to the top way more difficult than need be.