Forex Trading Strategy: Manage Your Trading Activities if You Don't Want to Lose Your Money (Makes Profit 150% per month)
A few weeks ago, a friend show me an e-book that explain about the forex money management and inspire me to doing something that could make my trading activities well organized.
I believe that like any other business, doing the forex trading needs an extra good planning and execution when you doing your trades. We know this business is very risky, and even you've bag thousand dollar from your trading activities, you could lose it sometimes if you don't manage your trades.
If you have the system that making profit for your portfolio, and you believe it as holy grail of your trading technique, just stick with that. If you don't have even single system just find out, there is a lot of forex trading system out there.
Okay, I assume that you have the system, and you make money with it. The next step to do is to manage your capital and increase your money from this business. There is an advise that the smart trader trades with 1%-10% of their total capital, so even they lose the trades it's not make their total portfolio collapse. The idea is how to make more than 50% profit from your total capital per year, and it's not to complicated to do. It's just need your discipline and patience.
I myself use more than 10% of my total capital in every single position(Long/Short) ;).... I told you before, that I am the desperate and aggressive trader but always makes the fundamental news as a basic of my trading decision. There is 20 x 24 hour in one month that we could do the forex trading and we could trades more than 1 times a day.
Here it is the sample of GBP/USD trading scheme in one month (trade 1 time a day, leverage 1:100, Target 20 pips per Day)
| Day | Capital | Margin | Quantity | Profit |
| 1 | $100 | $25 | 2500 | $5 |
| 2 | $105 | $26 | 2625 | $5 |
| 3 | $110 | $28 | 2756 | $6 |
| 4 | $116 | $29 | 2894 | $6 |
| 5 | $122 | $30 | 3039 | $6 |
| 6 | $128 | $32 | 3191 | $6 |
| 7 | $134 | $34 | 3350 | $7 |
| 8 | $141 | $35 | 3518 | $7 |
| 9 | $148 | $37 | 3694 | $7 |
| 10 | $155 | $39 | 3878 | $8 |
| 11 | $163 | $41 | 4072 | $8 |
| 12 | $171 | $43 | 4276 | $9 |
| 13 | $180 | $45 | 4490 | $9 |
| 14 | $189 | $47 | 4714 | $9 |
| 15 | $198 | $49 | 4950 | $10 |
| 16 | $208 | $52 | 5197 | $10 |
| 17 | $218 | $55 | 5457 | $11 |
| 18 | $229 | $57 | 5730 | $11 |
| 19 | $241 | $60 | 6017 | $12 |
| 20 | $253 | $63 | 6317 | $13 |
Basically on that table you could see, your money could increase 150% more than before less than 1 month if you do your trading management, you do 1 trade per day, what if 2 or 3 trade per day? Maybe it's sound to good to be true, but you could get minimum 20% per month if you want. It's easy to make money in the systematic investment plan, do not make your capital growth slowly without manage your trading portfolio.
You could modify your trading system and management in anyway you like, just make yourself comfort with your trading plan. And remember you could do something better if you manage your trades....
