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MONEY MANAGEMENT
I know that you are anxious to take advantage of the opportunities in the forex market but please don't rush anything. Nothing good comes out if you rush anything.
Nothing good comes out if you rush anything.
Unless you are doing well in your demo account and you have a solid understanding of the rules of this market you shouldn't start big.
You really don't need to have a lot of money to start with, and you can still take advantage of the trading opportunities with only $500 US and having good money management rules.
My Golden Rule for being successful in this business:
Aim for 10 pips per day (this sounds so little, but, 10 pips per day will become very powerful once you trade multiple lots).
Move your goal to 20 pips per day once you master 10 pips per day.
Using this technique and putting additional muscle behind it (more lots) can help you achieve your trading goals.
* For example: if you were to trade for a full year, starting with $500 in your account, and achieving 10 pips a day, your ending balance could be $107,750 dollars.
Not a bad number… (Click here to get the details.)
You may ask at this point: "If the potential is so great, why isn't everybody doing it?"
Here is the answer: We believe a majority of traders trade too many lots before they can achieve 10 pips a day. In our opinion, this is the main cause of death. Do not trade more than one mini lot per trade, until you have
at least few consecutive months where your daily average is 10 or more pips.
We feel that once this goal is accomplished, you can continue to professionally trade this market.
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