Is this a good forex trading strategy that could work to make you a millionaire? Please read/advise. Thanks?
Okay, so, currently I’m 18 and I’ve looked into different possibilities of how I could become a millionaire using the forex market as my vehicle. I have discovered that using 1:100 leverage or even 1:50 – 1:25 is a bad idea if you want to be safe about it, and using a more modest 1:10 leverage instead is best for my chances of success.
What I’ve also discovered is that the forex markets trends last months or even years. So, my plan is as follows:
1) Start with $1,000 in my new forex trading account.
2) Use 1:10 leverage always to reduce a lot of risk.
3) Use a stop-loss of all my trading capital in every trade.
4) Keep the minimum take-profits as long as its more than what my commissions would be.
5) Just follow monthly chart trends, i.e. if the trends gone up for the past year on a yearly chart, and it shows it in a monthly chart that its going up as well, just follow the trend up along with it and keep on going up until I think its going to stop going up by taking advatage of lots of small take profits along the way.
6) Be aware of economic news and reports.
Example:
Say the GBP/USD is trading at £1.0000-$1.5000, and I place a bet to buy GBP/USD at this price at a 1:10 leverage, or $15,000 worth of pounds, (£’s) and I set a take-profit of, say, $15 or 10 pips and a stop-loss of my whole $1,000 and and keep on doing this, taking profits by trend trading and make this same $15/day for the 6 days the FX market is open a week, or $90/week x 52 weeks = $4,680 in 1 year + my original $1,000 = a 568% return for one year.
After I have achieved my 568% for 1 year, reinvest all capital and get another 568% compounded on top of that. So, it works as follows:
year 1) $1,000 up 568% = $5,680
year 2) $5,680 up 568% = $32,262.40
year 3) $32,262.40 up 568% = $183,250.43
year 4) $183,250.43 up 568% = $1,040,862.40 = USD millionaire
year 5) $1,040,862.40 up 568% = $5,912,098.74 = USD multimillionaire and GBP multimillionaire, or £3,829,025.15.
What do you say here like? Could this plan work do you think?
You’re catching a falling knife. Just buy some gold and let it set for 5 years. That or short some bonds because interest rates are going up.
Don’t screw around in currencies… you’ll lose your ass.
trend trading | admin | February 24, 2010
You’re catching a falling knife. Just buy some gold and let it set for 5 years. That or short some bonds because interest rates are going up.
Don’t screw around in currencies… you’ll lose your ass.
References :
It doesn’t work like that, I’ll bet you that $1,000 that you won’t make it through year one, much less year two.
Forex is for the pros and you would be eaten like an oyster, swallowed whole without a second thought.
References :
It won’t work because:
1. Trading currency futures is normally a $2,500 minimum balance at all times, meaning to set up a single position you are planning would need another $5K or so.
2. You will have to prove that you have trading history, provable income and liquid assets of at least $25K to open the account, because if you get margin called out on a bad position, that 10:1 leverage is working against you. FOREX is very volatile, I know guys that lost $5k a position in one day!
3. I know some traders that trade by a safer route, simply short or long currency ETF’s like FXB, FXY, UDN, UUP etc.
References :
Simple answer-NO
References :