Forex Zone - Forex Forum

HOW (MORE) SAFE DEVELOP YOUR CAPITAL ***

Discussion started on General Forex Discussion

  • Full Member
  • Posts: 177
  • Points: 0
  • Likes Received: 16
  • Reputation: +3/-3
Every entrepreneur certainly has the desire to develop his business. The goal is of course so that he can get greater profits than what is currently obtained. Likewise with forex traders. Naturally, if a trader wants to develop his capital, so he can trade more freely.

The problem that arises later is that most seem to race to develop capital by conducting transactions "blindly". Instead of being able to develop capital, they are actually trapped in an overtrade trap, namely doing too many transactions without considering the power of capital so that it erodes the capital itself.

Then how can we develop capital in a (more) safe way?

* Prepare an Mature Strategy

Certainly. Without a mature strategy, it is very unlikely that you will succeed. I often say that a good trading strategy is not a strategy that can promise bombastic profit, but is consistent.

Little profit doesn't matter, as long as it's consistent. Occasional loss is reasonable. The most important thing is that the strategy can provide a consistent accumulation of profits for you. Consistent, that's the key word.

* A little bit later becomes a hill

In forex trading, there's nothing wrong with adhering to the principle of "gradually becoming a hill". Don't get hung up on the target, for example, you have to profit a percent per day or the like. Targets are indeed necessary, but the focus on the process is far more important.

Establish a progressive capital management strategy. Examples like the following.

Suppose you have a capital of $ 10,000. How do you make your capital (for example) $ 20,000? This means increasing 100%.

The fastest way of course is to add a deposit. But I'm sure you certainly already know that method. No need to discuss it again. What we will discuss below is how to strive to increase capital through trading.

* Patient and Diligent

One thing you need to realize is that forex trading requires patience. You must be patient and diligent in collecting pip by pip until your capital grows and develops. In the example above, it is stated that you want capital to grow by 100%, but this does not mean that it must be achieved on a daily basis.

For ordinary traders (I assume if you are not a beginner, you are an ordinary trader like me), the profit target does not need to be too big. Suppose you set the target profit per transaction is 5% of capital. That is, if your capital is $ 10,000, then your target profit per transaction is only $ 500. In forex, this target is quite realistic even for day trade.

If the profit target has been reached, immediately close your position. If necessary, apply the target by installing the Take Profit (TP) level. So, once the target is reached, your position will be automatically closed.

The biggest temptation is that you want to "get more". There is nothing wrong, but it must be realistic. Indeed, we are allowed to let profits go, but you should still pay attention to market conditions and conditions. If for example the price is fixed at support or resistance, consider closing your position even if for example the target has not been reached.

* Adjust Lot

If your capital increases, that means (with a good money management) your capital will get stronger. Well, there's nothing wrong with enlarging the position (lot) of trading if possible.

Example: with an initial capital of $ 10,000, in the trading plan you set your risk per transaction to only 5%. When new capital is $ 10,000, then each transaction you risk is $ 500.

At that time, suppose your analysis sees the technical risk limit (Stop Loss / SL) as 500 pips (5 decimal places). If 1 pip = $ 1, then 500 pips is equivalent to $ 500. Under these conditions, you can enter a position of 1 lot.

Well, when your capital has become $ 12,000 and the risk per transaction is still 5%, it means that the risk tolerance per your transaction is $ 600. If at that time you also see the technical limit of SL is 500 pips, then you may enter a position of 1.2 lots. So on.

This is called position sizing. With this technique you can increase your potential profits without increasing the risk. If the profit potential gradually becomes bigger, then your capital has the potential to grow faster.

Please you crave capital growth, but don't do it blindly. Do it gradually and - of course - be patient.


Linkback: https://www.forex.zone/general-forex-discussion/1/how-more-safe-develop-your-capital/1575/
#1 - February 16, 2019, 09:28:27 AM

  • Full Member
  • Posts: 143
  • Points: 0
  • Likes Received: 17
  • Reputation: +0/-0
Every entrepreneur certainly has the desire to develop his business. The goal is of course so that he can get greater profits than what is currently obtained. Likewise with forex traders. Naturally, if a trader wants to develop his capital, so he can trade more freely.
good advice, the key to trading is money management, psychology, a technique that is comfortable for yourself. with it and discipline yourself. the key to success is in your hands now.
#2 - February 16, 2019, 09:38:38 AM
« Last Edit: November 19, 2020, 06:23:35 PM by Mikser »

  • Hero Member
  • Posts: 1215
  • Points: 0
  • Likes Received: 566
  • Reputation: +15/-3
Every entrepreneur certainly has the desire to develop his business. The goal is of course so that he can get greater profits than what is currently obtained. Likewise with forex traders. Naturally, if a trader wants to develop his capital, so he can trade more freely.
Good advice sir, then have you applied it and what are your current trading results?
#3 - February 16, 2019, 09:57:03 AM
« Last Edit: November 19, 2020, 06:23:54 PM by Mikser »

  • Jr. Member
  • Posts: 72
  • Points: 0
  • Likes Received: 9
  • Reputation: +0/-2
everyone is different from how to use or save my capital is also mine, I am careful in analyzing market movements. when I'm sure, I'll start buying or selling, thank you
#4 - February 16, 2019, 10:01:37 AM

  • Full Member
  • Posts: 126
  • Points: 0
  • Likes Received: 12
  • Reputation: +0/-0
Every entrepreneur certainly has the desire to develop his business. The goal is of course so that he can get greater profits than what is currently obtained. Likewise with forex traders. Naturally, if a trader wants to develop his capital, so he can trade more freely.
I think all the things you have said are true. In forex trading the most important is the patience and discipline. If you want to develop trading capital, of course traders must be able to manage it well. Of course, traders also need to be able to improve the quality of their trading rather than the quantity of their trades, because then they will be more efficient and can minimize the risk of losses that they will face. It's better to make a little profit but always be consistent, so traders will be able to maintain their accounts and trading capital for a long time. Indeed, traders do not always fixate on the target because it will actually be able to burden the psychological, even though whatever traders must be grateful for, because sometimes the market conditions do not always side with him.
#5 - February 16, 2019, 11:48:55 PM
« Last Edit: November 19, 2020, 06:24:10 PM by Mikser »

  • Sr. Member
  • Posts: 318
  • Points: 0
  • Likes Received: 50
  • Reputation: +1/-0
all traders must have their own considerations about the capital they have because maybe when using other things it feels uncomfortable but it would be better if we made our own system by calling on professional traders or we could follow the trading system of professionals who of course adjusted to capital that we have.
#6 - February 18, 2019, 01:38:28 AM

  • Newbie
  • Posts: 45
  • Points: 0
  • Likes Received: 18
  • Reputation: +0/-0
good advice, the key to trading is money management, psychology, a technique that is comfortable for yourself. with it and discipline yourself. the key to success is in your hands now.
everyone has their own way of developing capital in the world of trade, but in this case the final result of the traders is to make as much profit as possible. In forex big capital is not necessarily guaranteed that we can make big profits otherwise but if we can process financial management we are trading in the possibility that we lose, we can press, and I strongly agree with the opinion above that is what makes us able to survive in the world of forex trading.
#7 - February 18, 2019, 04:28:26 AM

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
develop capital according to your skills and trading style.
#8 - October 11, 2019, 03:06:51 AM

  • Hero Member
  • Posts: 1048
  • Points: 5674
  • Likes Received: 111
  • Reputation: +4/-0
To develop capital, you can only use a compound strategy, but this strategy is not easy to implement unless the trader has this strategy and manages it well.
#9 - November 19, 2020, 04:22:54 PM

  • Sr. Member
  • Posts: 266
  • Points: 0
  • Likes Received: 19
  • Reputation: +1/-0
Capital development is definitely difficult, a lot of things have to be done to develop the account and Development of the account has to be done with discipline.
#10 - November 23, 2020, 06:43:00 AM

  • Hero Member
  • Posts: 850
  • Points: 0
  • Likes Received: 97
  • Reputation: +2/-2
Develop accounts in a safe manner, small lots that are suitable for capital, risk management and are done consistently, save and increase capital little by little.
#11 - November 24, 2020, 03:25:22 AM

  • Sr. Member
  • Posts: 452
  • Points: 2273
  • Likes Received: 13
  • Reputation: +0/-0
In my opinion, strategy is really what is needed to gain profit at Forex, but a strategy without being balanced with good effort and management will also be in vain.
#12 - November 25, 2020, 05:09:32 PM

  • Hero Member
  • Posts: 701
  • Points: 5910
  • Likes Received: 39
  • Reputation: +1/-1
the strategy of securing the trading capital that we have is very important because with this strategy, the capital we use will be safe, especially from MC.
#13 - November 25, 2020, 06:02:21 PM

  • Sr. Member
  • Posts: 433
  • Points: 69385
  • Likes Received: 8
  • Reputation: +0/-0
securing our capital and our accounts is not easy, but if we know how it will be achieved well, especially if we apply what is good in trading.
#14 - November 26, 2020, 02:55:35 AM

  • Sr. Member
  • Posts: 448
  • Points: 104137
  • Likes Received: 12
  • Reputation: +1/-0
careful preparation is one of the things a trader should have if he wants his trading to run smoothly, so the method to improve our performance is discipline.
#15 - December 02, 2020, 06:23:19 PM

Members:

0 Members and 1 Guest are viewing this topic.