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Friday, 21 February 2014

How to earn $1000 monthly by Forex trading reducing risk of account.

Dear Friends, Do you ever think how you earn $1000 monthly from your one trading account? We know we can do it easily. We can earn even more monthly. Yes we can do it. But it needs more risk. Even we may blow up our accounts. So we need to make a plan every month. Look, How i am going to make the plan. step1: First we will choose some pairs. This is not that we need to trade a pair all the time. If any pair become unpredictable we need to avoid it. The pairs which we can predict easily we will trade only those pairs. Step 2: After choosing some pairs we need to draw some support and resistant lines. We can see different time frame to have more clear idea. You must calculate how much opportunity you are going to get. Suppose you think that a pair GBPUSD will go 300 pips up and then will go down 90 pips within a week. So you are going to open a BUY position and you are going to get at least 100 pips from the setting. So we can say that you got one opportunity. Now to earn $1000 from the position you need to open a position with lot=10. Happy? But think it is too risky using ten standard lot per position. If your analysis go wrong you are going to loss huge money.So you can not rely on the position only. You need to look for more opportunities. But be patient. Your target is only $1000. You will not earn more then $1000 for the month. You will not be more greedy. As I show in the example you can look for more opportunities for other pairs. Now you can tell me that "Hey! why will I not use big lot size as I get opportunity?" It is because we are not taking more risk. We may earn or not but we are taking a small risk. We can find out more opportunities from more pairs. Step3: Now imagine that you got 3000pips opportunity from different pairs or from a pair from its ups and down for a month. Now write or take a note of some important points. Where you will buy or sell etc.Now look at the calculation below:
1. If we earn 10pips, lot=100 we earn$1000
2. If we earn 20pips, lot=50 we earn$1000 .
3. If we earn 50pips, lot=20 we earn$1000 .
4. If we earn 100pips, lot=10 we earn$1000.
5.If we earn 500pips, lot=2 we earn$1000.

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