<a href="http://clicks.hyaffiliates.com/afs/come.php?id=285&cid=49336&atype=1&ctgid=10" target=_self>
<img src="http://ads.hyaffiliates.com/afs/show.php?id=285&cid=49336&ctgid=10" width="468" height="60" border=0>
</a>
One of the keys in running a Home Forex Business is to remember that this really is a business. This may seem an obvious thing to say, but it is safe to say that many who enter forex trading simply forget one of the key commandments, "Thou shalt remember why you are trading".
This commandment is very simple; you are in forex trading only to run a business that will make money. Unless of course you are looking at forex trading as a hobby, something to do to earn some additional money, or just pay for the car, holiday house etc. Let me be blunt, if that is all you want, they you are missing out on using a tool that will enable to achieve certain financial success. Please note - the certainty will only come in with commitment, perseverance and good strategy.
It is true that forex trading can be fun; there is the thrill of the trade, the joy of wining and the pain of losing. It can be seen as a hobby, something to pass time instead of watching hours of television. For some it is simply seen as a bet, a gamble similar to placing a bet on a sporting event. I did hear a professional horse betting person say how amazed he was with the returns offered on the trading strategies that I adopt. When he saw how forex trading worked, he said would never return to professional gambling.
The objective of any business is first and foremost to make money and to minimise loses. A business needs a goal and a plan to achieve that goal. When I started, I set myself a goal of making 1% growth a day. So from a practical point of view how is this possible?
As an example, assuming a trader starts with a bank (the amount held in a brokers account) of 1,000 units (I use units as any currency can be used) and he is willing to risk 5% of my bank (50 units). For my trades I set a stop-loss at 30 points (pips). The amount I will therefore trade is 50/30 which gives 1.67 units per pip. If the target is to grow my bank by 1% a day (so in this example 10 units) then in order to get the 10 units my trade ( or trades) I would need to have a profit of 10/1.67 which is only 6 pips a day.
That is not much, some may argue and I would agree. But remember, the growing slowly for most people is by far the best strategy. And never ever underestimate the effect of compound growth when trading. A repeatable, low risk forex trading strategy will bring much better returns for many people
Now 1% may not sound much, so how much is it?
Let's assume 20 trading days a month over a year would give 240 trading days. So one may assume that would mean at the end of the first year, a 1000 unit fund would grow to 2,400 (10 * 240) units - a growth of 240% a year. Compared to a bank, well actually one cannot compare at all. However, the strategy I adopt is to use the law of compounding. The effect is startling. By compounding and maintaining the same risk element mentioned earlier (5%) then at the end of one year, the 1000 units has now become almost 9,000 units!!!
That is why I always trade a percentage of my bank and never ever trade more than 5% of my bank. I say this from experience, doing so will hurt your pocket especially in the early days.
Adopting this strategy is one of the most important keys to ensuring that profits are achieved as well as losses are minimised.
This single lesson was one of the most important strategies that I learnt from traders who made over 29,000 (yes twenty-nine thousand) pips/points in 19 months. Actually, in reality they made more, the figure of 29,000 is based on the trades they took and encouraged members to do likewise during three daily two-hour sessions who watched as they placed live trades. It was their approach to trading that totally transformed my trading.
Running a successful home forex business is achievable to anyone who remembers this rule to remember why you are trading.
Kaz Kowalski has been providing specialist project management support on a number of high profile projects in blue chip companies across a variety of industries including Banking, Information Technology, Telecommunications. This experience has proven valuable in evaluating various marketed income streams. He strongly believes in running a profitable Home Forex Business.
<img src="http://ads.hyaffiliates.com/afs/show.php?id=285&cid=49336&ctgid=10" width="468" height="60" border=0>
</a>
One of the keys in running a Home Forex Business is to remember that this really is a business. This may seem an obvious thing to say, but it is safe to say that many who enter forex trading simply forget one of the key commandments, "Thou shalt remember why you are trading".
This commandment is very simple; you are in forex trading only to run a business that will make money. Unless of course you are looking at forex trading as a hobby, something to do to earn some additional money, or just pay for the car, holiday house etc. Let me be blunt, if that is all you want, they you are missing out on using a tool that will enable to achieve certain financial success. Please note - the certainty will only come in with commitment, perseverance and good strategy.
It is true that forex trading can be fun; there is the thrill of the trade, the joy of wining and the pain of losing. It can be seen as a hobby, something to pass time instead of watching hours of television. For some it is simply seen as a bet, a gamble similar to placing a bet on a sporting event. I did hear a professional horse betting person say how amazed he was with the returns offered on the trading strategies that I adopt. When he saw how forex trading worked, he said would never return to professional gambling.
The objective of any business is first and foremost to make money and to minimise loses. A business needs a goal and a plan to achieve that goal. When I started, I set myself a goal of making 1% growth a day. So from a practical point of view how is this possible?
As an example, assuming a trader starts with a bank (the amount held in a brokers account) of 1,000 units (I use units as any currency can be used) and he is willing to risk 5% of my bank (50 units). For my trades I set a stop-loss at 30 points (pips). The amount I will therefore trade is 50/30 which gives 1.67 units per pip. If the target is to grow my bank by 1% a day (so in this example 10 units) then in order to get the 10 units my trade ( or trades) I would need to have a profit of 10/1.67 which is only 6 pips a day.
That is not much, some may argue and I would agree. But remember, the growing slowly for most people is by far the best strategy. And never ever underestimate the effect of compound growth when trading. A repeatable, low risk forex trading strategy will bring much better returns for many people
Now 1% may not sound much, so how much is it?
Let's assume 20 trading days a month over a year would give 240 trading days. So one may assume that would mean at the end of the first year, a 1000 unit fund would grow to 2,400 (10 * 240) units - a growth of 240% a year. Compared to a bank, well actually one cannot compare at all. However, the strategy I adopt is to use the law of compounding. The effect is startling. By compounding and maintaining the same risk element mentioned earlier (5%) then at the end of one year, the 1000 units has now become almost 9,000 units!!!
That is why I always trade a percentage of my bank and never ever trade more than 5% of my bank. I say this from experience, doing so will hurt your pocket especially in the early days.
Adopting this strategy is one of the most important keys to ensuring that profits are achieved as well as losses are minimised.
This single lesson was one of the most important strategies that I learnt from traders who made over 29,000 (yes twenty-nine thousand) pips/points in 19 months. Actually, in reality they made more, the figure of 29,000 is based on the trades they took and encouraged members to do likewise during three daily two-hour sessions who watched as they placed live trades. It was their approach to trading that totally transformed my trading.
Running a successful home forex business is achievable to anyone who remembers this rule to remember why you are trading.
Kaz Kowalski has been providing specialist project management support on a number of high profile projects in blue chip companies across a variety of industries including Banking, Information Technology, Telecommunications. This experience has proven valuable in evaluating various marketed income streams. He strongly believes in running a profitable Home Forex Business.
No comments:
Post a Comment