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?
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This entry was posted on Wednesday, March 10th, 2010 at 2:52 am and is filed under learn forex trading. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
Karl March 10th, 2010 at 3:55 am
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.