How to triple your investment with Forex trading

Forex Trading Nigeria

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Posted by on Wednesday September 7, 2011 10:19:46:

One thing I love about forex trading is that challenge it gives you. There is a sense of satisfaction you gain for every winning trade and when you see greens, you know the money has come. Being optimistic about it in the first place can help you make more wins than losses.
It is like a game but really a big boys game, in that, if you win, you win real money and if you lose, you lose real money. However for those who don't feel like trading with real money, they can always try virtual or demo trading which marketiva funds for you with the sum of $10,000. If you are lucky to have the best performing account in a given month for virtual trading, you would eventually win their $100 prize.

Now, getting to business - How do you triple you capital in forex trading in a month? I am actually writing this because it is already a month since I last added funds to my account and it has already tripled. Now how did I do that or again, how can you do that?

Tripling your capital simply means increasing your capital by a factor of 3 so it means assuming you have $100 and you invest it into forex trading with a broker like Marketiva, you can triple it if you use the right tactics and follow the rules.

The setup for this process would involve:
- Risking only 2$ per trade
- Making multiple trades in a day
- Always make use of stops for entry, exits and stop losses
- Have a daily target and only trade sure opportunities
- Close before news events
- Learn to trade the news
- Make use of economic calendars to monitor news reports (http://www.forexpros.com/economic-calendar/ is ok for that)
- Make use of chats but don't rely on them

An example of how to triple your forex account
So assuming I have $100 in my forex account and want to increase it to $300 within 1 month

Strategy to triple forex capital in a month
Days: 20 days
Capital: $100 or $X
Risk per trade: 2% = $2
Target profit per trade = $4
Pips target per trade: 20 to 40
Risk to reward: 1:2
Trades per day: 3

So assuming I am trading with the above setup in mind, I decide to buy or sell depending on the market condition and if chart is trending or ranging. I prefer trading when market is trending and also I use the 4h and 1h time frames to confirm trend.

Enter buy(long) or sell(short) with a stop price and not just a market price. Enter when price is near high or low of candles so as to gain more and set exit stops and targets at the same time. Exit stop loss point should be at about 20 pips while target profit should be at about 40 pips maintaining a good risk to reward ratio so that you get more rewards for gains and less spanking for your losses.
Try the same procedure for 3 trades a day and if you gain, you would have gained

How do I really gain $4 or more per trade when trading with $100?
It depends on the currency pair. For instance if it is the Eur/Usd, you may enter buy with margin(100:1) 1,000 units of eur/usd at a price like 1.4500 and exit at 1.4540 that means you have gained 0.0040 and when you multiply that with the 1000 units you bought, you would have gained $4. It also means that assuming your calculations are not correct, you may also lose but since you are setting your stop loss at 20 pips, you would have lost only 0.0020*1000 = $2 only.

So when buying or selling, try to set stop loss and target profit at about 20 and 40 pips respectively.

Assuming that you try 3 trades a day and win, you would gain $12 and if you multiply that to 20 days, it gets to $240 or more and with your $100, it amounts to $340 which is even more than the $300 we originally targeted.
Now, assuming that you lose 3 trades a day, you would be losing $6 a day and in 100/6 = 16 days, you would have lost $90. This can hardly happen if you really understand why prices fall or rise. If you are a serial loser like this, you would need to go back to baby forex school.