Today I would like to show you a very different way. It is called slow and steady win the race. No getting rich overnight.
But hey, did you know that even small profits like 50 pips monthly can make you millionaire?
Seriously. Who cares about those get rich quick strategies? They probably bear high risk and sooner or later they can wipe out your trading account. However, with this approach, you can employ any low risk safe trading system and by earning only 50 pips every month you can grow your balance to 1 million dollars or even more.
Let me show you a small example.
You open your forex trading account and deposit $10,000. Size of your trades is 1 standard lot and your stoploss is tight at 25 pips. With this conservative trading style where you risk only 2.5% of your balance ($250) per trade you manage to earn 50 pips profit every month.
At the end of year your equity grows by 600 pips. As you traded 1 standard lot per each trade your dollar profit is around $6,000 which is 60% of your initial balance. Not bad, right?
Cool thing about this system is that you do not have to take a lot of trades. You can wait patiently till high probability trades present themselves and only then you act.
Ok…after 1 year you sit on 60% profit, your trading balance is $16,000 now, but where is that million?
No worries, here comes to play power of compounding. As your balance is $16,000 you can increase your lot size to 1.6 of standard lot. After second year your 600 pips will be worth $9,600. That means that after 2 years you´ll have $25,600. Your account is more than doubled. Nice!
Continue this way and after 5 years you´ll have $104,857. Don´t stop there and you´ll reach your million dollars in 10 years.
Do you think it´s a long time? Just look back in time and you might realize that past ten years of your life did not take so long to pass, right?
This is not a get rich quick scheme but a very conservative and safe way to grow your trading balance. You risk only 2.5% of your capital but still you can grow $10,000 to $1 million in 10 years. And you need to earn only 50 pips each month.
If you do not have time to trade yourself, you can choose good forex traders to copy. But remember that past profits of traders are no guarantee of future performance. So invest wisely and do not risk money you cannot afford to lose.