Traders have this habit of allowing their profits to keep accumulating.This is a great thing to do and nothing wrong until it is going to be only profits that you are going to have. There will be periods when you start having huge losses and at that points of time, you will startlosing your profits as well.
Lets say that you start with $300 (ofcourse this is true for any amount) and you slowly build up the profits and are sitting at $1000 after 2 months. At that point of time, it would serve you well if you can withdraw atleast a part of the profits and let the rest run.The bigger traders would advice you to withdraw 50% of your profits always on a regular basis. The reason for this is that when you face times of severe losses (if u trade a lot, you will surely face suchperiods), it would be very good and safe and nice to know that atleast you were able to enjoy some of your profits.
Sometimes, the profits that you withdraw might exceed the amount that you had invested and that would be the most satisfying time as you would know that even if you blow up your entire account at that time, you still made a profit over and above what you invested.So always make sure that whatever amount you start with and whatever profits you make, you keep withdrawing atleast 50% of your profits sothat you dont lose all the money that you invested when you start facing losses. Do make sure that you always do this and add this point as well to your trading arsenal.
as i have said many times, my target is 50 pips a day and with this method, i have been making that target every single day right from last March 2008.....it might seem small but if u compound it, u will realise that it is a huge number within 6 mnths....i also use this same method when i work for others to manage their funds and i have found it successful for them as well....
If u want, i can post a simple excel to show u how much u would be earning when u start with just $1000 but u get 50 pips consistently every day with just 3% leverage...within...
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Karthik, thanks for the info... I would love to see your spreadsheet. 50 pips seems doable. But as my first few days have shown... it's gonna take some practice.
Karthik, thanks for the info... I would love to see your spreadsheet. 50 pips seems doable. But as my first few days have shown... it's gonna take some practice.
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to B-rice and everyone here...attached is a simple spreadsheet that shows the power of compunding, money management and how patience pays off....it needs just 50 pips a day....the sheet shows u how much u could be making if u continue to make just 50 pips a day....the sheet assumes that u start off with just $1000....6 mnths typically has 120 trading days and hence the sheet has 120 rows for now...the leverage is 3% which is quite standard...and the lots are micro lots....u could extend this sheet to any number of rows assuming 20 trading days a month....and u can see that u could be earning close to $4000 a mnth after 1 yr....starting with just $1000...patience is the key....u have a column to fill up the dates as well...
i would rather wait...this is second attempt at that level in past 2 hrs....also european session about to begin...so maybe some crazy moves....this could still work but has some risk attached to it...
Trading using Murray Maths and Price Action
