How Does Rule 72 Apply To Forex ?
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Don't know about 72 rule..but Murphy's law applies to any market very well....
Here are a few links.
The Rule of 72 is a way of working out how long it will take for your investment to double.
that's all well and good if you have a fixed interest rate and a some cash to invest as most of the web sites show.
but how can we apply this to forex trading?
Here are a few links.
The Rule of 72 is a way of working out how long it will take for your investment to double.
that's all well and good if you have a fixed interest rate and a some cash to invest as most of the web sites show.
but how can we apply this to forex trading?
What is the 'rule of 72'?HOW? WHEN you can guarantee fix monthly rate in forex market? or daily rate?
CAN you do it now?
if you can ,and whenever you can , then your equity will be double in specific time .
Here are some ideas
What percentage do we need to make per month to double our account in 1 year.
72/12 = 6%
so in theory if we make 6% per month we will double in that given period.
that same could be true for making 6% per day, you could double your money in 12 days.
not taking into account incorrect signals, power outages etc.
If you have a system that is consistant 3% gain per month you can use this to work out how long it will take to double you money.
72/3% = 24
so if you remain consistant you will double your money in 24 months.
Cheers
Beno
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Gidday
I understand the rule, but am having trouble applying it in the forex market.
Could someone please explain it with an example.
Cheers
Beno