Friday, 11 December 2015

CAPITALISING ON YOUR SUCCESS

Ok, things are starting to go good and you're making money consistently, everything is looking good.... What to do now?


SEPERATE YOUR MONEY

Diversify your money maybe put a set amount from your earnings into another place  like pay off debts, especially if you have mortgage - maybe start another account (IG markets lets you have multiple accounts) and maybe trade something different like gold or an FX using the same strategies....

MINIMISE YOUR RISK

If you started (like I advised) on 1 x ASX200 contract on $2000 and you want to increase your earnings you can play 2 x ASX200 on each trade. I like to see my risk reduce each time I up the bet so maybe i wouldn't start trading on 2 contracts until I hit $5000  (and hopefully have taken back my initial investment in payments)  and 3x contracts till I hit $9000 this means that If I was to get to an account balance of $9000 I'm probably making $150 per day (thats my average anyway) on trading 3 x contracts and this is where I find it becomes a very real and valuable addition to my income. $3000 per contract would give me an approximate trading range of 450-500 points  which gives me a greater safety range than trading one contract per $2000 (which would give a 300-350 point range) the further along things progress  I would maybe to to 4 x contracts on $16000 and 5 x contracts on say $25000 which would give you  saftey margin of 650 points (approx) which is a fair trading range and will allow you to sleep at night without constant fear of being sold off in the event of a sudden dip or whatnot.

I view trading on 1 x contract on $2000 bit of a risk and in the last 2 months there's been two events where I would have been sold out. But unfortunately we all have to start somewhere, some start on less than but at the end of the day $2000 is not a lot of money but once you get past $5000 and then $9000 this is serious money to most people and its a good idea to minimise the risk (even though by now its not really your money your playing with) its a valuable lump sum and and even more invaluable tool to make a regular income out of NOT something to be taken lightly. It is better to have this amount coming in regularly Ideally i want to have this coming in as an income for the rest of my life, the actual dollar amount for me is not as important than the security of having something come in like clockwork every day or week but thats just me, you may make more money by upping your bets and taking a risk but you may also get sold out and have to start all over again

I'm now trading over $3000 per contract and it is this that managed to get me through the turbulence of the last couple of months hopefully soon i'll be trading on $4000 or more and believe me its much better for your heart and sleeping patterns :)




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