From $500-$2,500 in a month ?

“ I apologise if I am bothering you but I wanted to give you more information about trading background. I have been trading on and off for about four months. I started with a “min” account of $250 and had gotten my account to around $2,425, unfortunately mmy account is now at $500. basically, I am starting over from the beginning. My ultimate goal is to replace my salary with full time trading. Now, if you don’t mind, I have a question for you: do you think it’s realistically possible to build my forex account from $500 to at least $2,500 in a month (if not more)? culled from the punch newspaper   

This was a question a newspaper reader asked a forex expert some time ago, well there are very few traders that have been able to do this and do it consistently. It is technically feasible, but realistically very difficult. You might hit a home run winning streak and actually do it, but the very next month, you might also hit a loosing streak and blow it. Except you are going to take out that $2,500, when you hit it and then spend it starting again from $500 , it will be difficult not to loose most or all of the $2,500 when you keep on trading like that. Alternatively, when you hit that $2,500 milestone, you can change your trading style to a more conventional one in which case you will not get anywhere near that return on investment again. The problem is that when you do it once, your brain will tell you that you can do it again, and then you will keep up that tempo and eventually, a loosing streak will take you out. On the long run therefore, you loose. One fact that will make this clear is that all trading systems work cyclically. That is, they have their winning seasons, and their loosing seasons. You can not change that. That is nature, the way God created it. Everything has got seasons to it, boom and bust boom and bust.

These boom and bust cycles are amplified perhaps, a thousand times, when we as humans trade manually because a third factor comes in- our psychological temperament.

This third component, if it were to be quantified, swings very wildly in its value in response to changes in our emotional, economic, spiritual and human environment, the dynamism of which is just simply phenomenal. We can not change these things. We can only try to discover our best time to trade, but our psychologically best times may not synchronize with the market opportunities that come along. Invariably, you will be often forced by that pressure to trade at a time you psychologically should not trade, which most times will bring bad results.

So, from this analysis, you can see that if you attempt it manually, on the long run you will most likely loose. Your experience can attest to this. In fact, in my opinion, you did pretty well not to loose the whole money, so don’t think you are a bad trader. Like I said earlier, even if you say, “okay, let me do it just once and then streamline my trading to a conventional style,” your brain will tell you to try it again. Probably the hardest adviser to ignore is your brain, so once again you will loose on the long run, because you will try it again and again until the amplified cyclical loosing streak gets you.

Comments

  1. I don?t usually reply to posts but I will in this case. good job 🙂 id value your opinion on my blog so pay me a visit when you get the chance.

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