TRADE SMALL, TRADE OFTEN.

THE BEST TRADER IS THE ONE WHO CAN MAKE THE LARGEST % GAIN DIVIDED BY THEIR AVERAGE LEVERAGE USED PER TRADE.

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I joined Forex Factory for a few reasons. One of the main to more easily document my progress. Another is to help other traders be all they can be.

Why do I trade the EURJPY? Well, because it's THE BEAST of FX! It has the most movement and therefore if you can time your entries properly, the risk reward is truly phenomenal. Stops should be a bit wider than other pairs but its worth it.

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Preferred trading hours ------ 8am to 4pm NY time (EST)

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High Yield Using Proper Money Management

-- Growing an account 1000% in a year using a risk per trade of 0.50% or less is not impossible. However it is very, very unlikely. But it is much more likely you can do it in 3 years using proper money management. Most peoples only problem in Forex is patience. They win some and they recklessly lose it back thinking they can make a whole year in 1 day.

With $10,000 starting bank roll, if you have the patience and skill enough to even make 10% per month and compound each previous months ending balance, you will make 213% in 1 year (~$31,300). That's not much money? Okay, well can you keep this up for 5 years? Because that's some serious money. And 10? All the money you could ever dream of.

For calculation purposes we will use a raw 30% tax per year even on the first year (you will very likely be taxed less as tax law is favorable to spot FX traders) to show at the very minimum what will be made if you can continue to make 210% per year (or in that ball park).

So after year 1 of taxes you lose ~$6000 of your $21k profits). Year 2 the account starts at $25,000. After another 210% gain, the account is at $77,500. Taxes of 30% on profits of ($52500) are $15,750). So the account is back to $61750 for year 3. After a 210% gain, the account ends year 3 at $191425. Taxes of 30% on profits of $129675 leave $90700 in net profit. Year 4 starts with $152200. After a 210% gain, year 4 ends with $471820. After a 30% tax on profit of $319500, the total net profit for year 4 is $223700. Year 5 begins with $376000. After a 210% gain, year 5 ends with the account at $1165000 ($1m mark). After taxes of 30% on profits of $789000, year 5 ends with a net profit of $552000. That means the 6th year starts with $930,000.

So after 5 years the profit on $10,000 was $920,000. 92,000% in 5 years.

Yeah. Just imagine what that $920,000 another 5 years of hard work and proper MM will do for your account (hint: more money than you could ever know what to do with).

PATIENCE is the KEY.

Now you know how I personally target yield in FX. 10% per month target. After hitting target I stop for month and continue my high risk scalping on sub-accounts.



If you want to try and be a millionaire in a year, do yourself and your money a favor and open a sub-account, fund it with $50 or $100, and make 1 trade per day on it risking 5% or even 10% of the account.

If you can succeed in making 15% a week, which means each week you will probably have 3 winners and 2 losers, you will turn that $100 into $100,000 in 1 year. If you can manage 20% a week, that is $100 into $1,000,000 in 1 year. There is just NO reason to start with more than $100. Good luck.

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Here is just a bit of detail about how I manage my money.

I will not tell you more than the following (I cannot teach you how to be on the right side of the market, only you can) ---- I use 0.05%-0.10% risk per trade (depending on half or full position size) at the start of each month. After reaching 0.50% gain for month, I then risk 0.05-0.10% of the starting balance + 5% or 10% of the profits for the month until the month is finished. The key is to trade small, but trade often.

I ALWAYS SCALE IN. Half the entry goes when I think the move will happen. The other half if it moves against me by X amount of pips (0.025-0.005% risk base). Then I enter the other half with the stop loss on both halfs at 0.05 to 0.10% of base risk (start of month equity).

You need to let your trades breathe! Nothing worse than being stopped out and watching it go your way for 3 or 5x what you risked.

Once in profit 0.50% for the month, I am risking a large % of the profit per trade, so I can still have great months, just towards the back end of the month.

Why bother risking much if you can't even start the month off in the green?