Forex Trading- Best Chance to Success in Trading
Theoreticaly, yes - one can turn $5000 in $10000 in just a month, but there is no much chance to do that. To do that, you have to risk too much per trade... If you risk much per a single trade it is very possible that you will burn your whole account.
Forex is a game just for patitent people. If you are not patient and want 100% in few weeks, be prepared to lost your fortune.
Actually, you can do it by only risking 2% per trade.
2% RISK.
MAXIMUM RISK = 2% * $5000 = $100
STOP LOSS = 10 PIPS
RISK = STOP LOSS * POSITION SIZE.
$100 = 10 * POSITION SIZE
POSITION SIZE = $100 / 10 = 10 MINI LOTS
If you compound at 4% then in one month:
Month 1
$5,200
$5,408
$5,624
$5,849
$6,083
$6,327
$6,580
$6,843
$7,117
$7,401
$7,697
$8,005
$8,325
$8,658
$9,005
$9,365
$9,740
$10,129
$10,534
$10,956
All you need to do is make 20 pips a day AND THEN QUIT.
READING PRICE CHARTS BAR BY BAR
1) Price will either breakout of the high, low or both of the previous bar
or
2) Price will not breakout of the previous bar.
That is all there is to know. You can not reduce it any further. Anything else complicates the issue.
You either decide to:
1) Wait and do not enter a trade
2) Trade a breakout
3) Trade a reversal.
Those are your ONLY 3 options.
TRADING IS SIMPLE. DO NOT COMPLICATE IT. DO NOT BE FOOLED.
Choose Your Advice Carefully
Since your mind is your most valuable asset and your most valuable lever, you need to be careful what you put in it. Sometimes it is even more difficult to get rid of thoughts and ideas that are already in your mind than it is to learn something new - Pg 119 WHY WE WANT YOU TO BE RICH
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Today it is very hard to ignore the fact that forex market is the world's biggest financial market. Over the past few years, it has become the most popular market with trades amounting to more than USD 3 trillion every day. Generally referred as currency trading market, it always involves the combination of two currencies. For example- either you can buy Euro or sell US dollars, or you can buy and sale any other combination of globally accepted currencies.
In recent times, fx trading has gained huge popularity and turned out to be a very profitable money making option. If we look at the present scenario, it can be recognized as one of the most potentially rewarding types of investments available in the global market. Though this form of trading involves great risks but the potential to earn profits are enormous relative to initial capital investments. The major reason of growing recognition is its very low dealing costs, high leverage margin, 24 hours trading a day and high liquidity market. For example, with a $5000 account, you can make about $5000 per month. Obviously it decidedly depends on the manner that you trade and the strategy you follow but good and experienced traders can double their money every month.