I’m grateful to be able to drop these nuggets for you guys.
Today we’ll be talking about 1 of the factors that hamper with the growth of a trading account.
So this is a typical trading scenario, right.
let’s just imagine that you don’t have anything that generates you income.
Let’s just say the money you used to fund your account comes from either your parents, friends or your savings.
You don’t have anything that generates you income pm consistently; other than forex trading.(basically forex trading is what you’re making making with).
What would normally happen is that
You place a trade, you make profits, you withdraw the profits, transfer them in your savings account and you leave the initial balance in the trading account and you continue to do that for the whole month right.
That’s good.
But now on the following month; when you experience a losing streak and you blow your accounts; because you don’t have anything generating income for you – you go back to that savings account that you put your profits in and you take some of that money to fund your account.When you blow you do that again; and again and again. After some time you then realize that the money in your account has decreased and the worst case scenario is that it if you’re having 2 months of losing streak you’re going to wipe out your money.
If you continue to fund your account with the little money that you get here and there; this will continue to happen to you because trading is a high risk or rather an aggressive type of investment you can make as a person.
What you have to do to prevent this is this:
Have a segregated bank account or rather separate bank account from your main one.
Use that account to store your trading profits.
You must not touch that account.
Everytime when you trade and make profits; you have to transfere those profits into that account.
When it happens that you blow your trading account, you don’t go back to that account.
If you don’t have any other thing that generates income for you apart from forex trading; my suggestion is that you have to start working towards making money.Find something else that makes you money consistently so that you can continue funding your account whenever you see an opportunity in the market and when you blow your account; you don’t go back to that account that holds your savings.You rather wait for month end and fund your account with that income that you make every month.
This way you are able to track your progress and experience your account growth without even touching those profits you made and using them to re-fund your trading account.
So I want you to take this note right here; Trading profits are not only for reinvestment but both reinvestment and trading/capital growth.
I know a lot of people are familiar with the concept of re-investing your money; but remember, Forex trading is a different ball game – you won’t win if you keep on re-investing your profits into your trading account because what generally happens is that as you re-invest into your trading account and it happens that you have a losing streak; you’re going to fund your account again and keep on giving that money away.
So.Basically what you’re doing is taking 1step forward and two steps back. Life is always a measure of something so you have to calculate your way out of something and into something.
My recommendations:
To open a forex brokerage account; I recommend RCG Markets for various trading instruments to choose from: Currency pairs, Shares, Metals, Energy Carriers, Indices.
This broker also has flexible leverage depending on your trading trajectory.
To open an account: https://portal.rcgmarkets.com/register?ibid=852167
Before concluding; I’d like to also tell you some great news. There is a challenge happening at AUDACITY CAPITAL for forex traders worldwide. AUDACITY CAPITAL is funding forex traders who show potential in forex trading through their programme called the Ability Challenge.
Click the link below to register for the challenge and please; do come back and comment in this blog on your experience of the challenge.
https://ability.capital?ref=motlotlgimoerane
That’s it from me in this blog
You already know what to do; please show me some love. Like and comment in the comment section.
This is from me to you and everyone else
Peace.