I am a firm believer that we should take it slowly when we trade Forex. I believe our main goal is first to manage risks and then seeking for profits. So many people out there looking to grow their account overnight. Let me tell you, that is not how you do it. The truth is, it takes time to grow your small account (also manage the risk). We also need to be consistent. If you are not consistent in your trading approach, it can be seen in your trading performance.
First of all, there are two ways of trading Forex :
THE POWER OF COMPOUNDING
Compounding is like magic. It is amazing! Let’s say you start with $1,000 in your account. You make 6% growth every month for 12 months. How much capital will you have at the end of the 12th month?
What a performance! You would double your capital in 12 months! This is the power of COMPOUNDING!
What if you do it for three years (36 months) ?
You would have more than $8,000 in your account. It is 800% growth in three years! Talking about DISCIPLINE and CONSISTENCY!
So that is HOW you really grow your money in Forex trading. You can start with a small account and work your way up. Now what if you combine saving and compounding? Let's say we add some money every month. The result will be more amazing.
Let’s say you start with $2,000. You make 6% every month and at the end of every month, you add, let’s say $500 into your account:
You would grow a $2,000 account into more than $12,000 in a year. That is freaking awesome! Of course the amount of money you are putting every month could be higher or lower, but no matter what, this will help you to plan your retirement! Create your monthly goal, set the amount of money you are willing to put every month to your account and then trade with discipline and consistency.
I am not saying that you WILL get 6% growth every month easily. You may experience losing months and you may also make more than 6% in a month. What I am trying to show you here is if you are disciplined and consistent in your approach, then in the long run you WILL make money.
So what I want you to do is to take it slowly. Try to reach consistency first. Aim to be profitable in three months. Then go for six months. Then go for one year. If you can prove to yourself that you can trade small money and be profitable in one year, then you ARE ready to trade bigger capital.
The secret is DISCIPLINE and CONSISTENCY. Trust yourself, believe you can do it and take action. The result will not lie. If you don’t get results, it means something has to change. Check out my blog for more forex articles to help you improve your trading.
Rico Ferdinand Yapotra