Many traders heard the stories about making 500% on a single transaction. Those who claim such a profit, do not tell all the truth.
First of all, the profit you make is measured from your investment amount and not full account balance.
Secondly, it is not possible to make 500% in one transaction simply because the payouts are limited to 60-95%. And this makes the increase in the account balance even smaller.
Let’s say you have $100 on your account and you put $5 in a single trade. If an option has a return of 80% it would only mean 4% for the account in general. To generate a 100% increase in your account balance, you will have to open many more winning positions.
Today, I will show how you can double the account balance in 5 days.
The account balance you start with is important. I will operate on an account with $100 on it. Start small as converting $100 into $200 in 5 days is easier than converting $1000 into $2000. Everything comes down to psychology.
It is a whole different story when you start with $100 or $1000. Imagine two traders start trading with 5% of the account balance. For the first trader it would mean $5 and for the second one $50.
Now imagine the first trade lost. It would be much easier for the first trader to invest $5 in the next trade. He can even decide to invest $10 in hope to cover the loss.
The second trader though lost $50 and naturally does not wish this happens again. There is a psychological pressure on his shoulders and well, emotional trading is something would most probably bring more losses than wins. So start small.
As in the example above, I will invest 5% of my account balance. It means $5 per trade. With the 80% return, I should earn $4 which is equal to 4% of my initial account balance.
Let’s do some mathematics here. I start with $100. To double it means to earn another $100. If my plan is to do it in 5 consecutive days, I will have to make $20 per day. Going further, with each trade bringing $4, I will have to enter 5 positions in one day.
Do not forget that 5 trades for 5 days give 25 successful trades to make. It is very unlikely to open 25 subsequent profitable transactions. I will have to allow some losses to incur and then some extra trades to cover them. To summarize, I will focus on making $20 every day.
Trading terms for my 5 days plan
I choose to trade the EURUSD currency pair. Time will be dependent on progress. The payout should not be less than 80% (it is usually 82% on EURUSD so we are good to go). This way it will be faster to recover potential losses. But if I experience 3 subsequent losses, I will terminate the session.
The main objective is to gain $20 every day. A single investment amount will be $5. I will hold a position opened for 5 minutes and I will wait for it to expire before entering a new trade. This will help me to monitor my performance.
My goal is to make $20 a day. To achieve this I will need 5 winning trades. If I manage to make it in 5 consecutive trades, I will call it a day and stop trading instantly. Further trading would only expose me to unnecessary risk.
If I do not succeed in the 5 following trades, I will continue trading until I reach my goal.
But if I lose 3 times in a row, I will stop trading.
This is how my strategy for doubling the account balance looks like. The most important thing now is to stick to the plan I have created.
I would love to hear about your trading plans for a week, what strategies you employ, what profit you aim at. Use the comments section to tell us about your ideas.
Wish you successful trading!
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