One of the easy ways to trade forex is to use forex signals. Trading with forex signals means that you don’t have to do the complicated technical analysis to know what currency pairs to trade and when to enter into a trade and when to exit. Another interesting development that has taken place is that many forex signals providers now have a trade copier software that you can use to automatically copy the trades within milliseconds onto your M T4 account.
Now, here is a trading plan that only needs $1K and if properly implemented can take you to your first million dollars in less than a year. First what you need to do is find a forex signals provider that makes at least 1000 pips per month. The good thing is there are many signal services now that claim to be making more than 1000 pips per month. Just try a few that have at least one months money back guarantee on your demo account. Testing is very important in trading. When you use any new system or a service always first test that system or service thoroughly on your demo account. Also see if the service has a trade copier software. Test that too on the demo account. Using the trade copier means that you wont need to manually enter the signals. This means you can be away and the copier software automatically enter the signals onto your account. Once you are satisfied with the performance of a service, you are all set for your $1M challenge. You just need $1K and that’s it!
Fixed Fractional Money Management System Can Turn $1K into $1M in 8 Months With Forex Signals!
The problem that most new traders face is that they don’t know what lot size to use when trading with these signals. The most important thing in trading is risk and money management. The best money management system to use in our case is the Fixed Fractional Money Management System. Let me explain!
Suppose, the signal service makes 1000 pips per month. Using the Fixed Fractional Trade Sizing, we will be doubling the account balance after every 1000 pips. This is how we will do it. Start with trading 1 mini lot. 1 pip on a mini lot is equal to $1. This means when you make 1000 pips, you will be making $1000 when trading with a mini lot. Now, your account balance will become $2000. Trading with a mini lot will also ensure further testing of the signals service under the live market conditions with a low risk. Daily check the account balance and see if the trades are being executed properly and there is no slippage. If you find the trades not being executed properly, stop trading and try to figure out the reasons. Maybe you need a new broker. Now using a mini lot will ensure that you test the service further in live trading. Suppose, you lose 200 pips in a single day, you will only be losing $200. The most important thing in this trading plan is the choice of a signals provider that has a consistent track record of making more than 1000 pips per month. If you choose a good forex signals provider the chances of losing 200 pips in one day will be minimal.
When you make 1000 pips, your account balance increases to $2000. Now, you will increase the lot size to 2 mini lots. Again making 1000 pips will double your account balance. Making 1000 pips with 2 mini lots means making $2000, so your account balance is now $4000.
At every step when you double your account balance, you will double the number of lots too. You can afford to do that. Now, you have more equity in your account. This is what Fixed Fractional Money Management System is! When your account balance increases, you increase the trade size. When you have $4000 in your account balance, increase the lots to 4 mini lots, after 1000 pips you will have $8000 in your account. Now increase the lots to 8 mini lots. Once again,after 1000 pips you will have $16,000. Now increase the lots to 16 mini lots or 1.6 standard lot. Now, do the maths and you will find that with this Fixed Fractional Money Management System alongwith a forex signals provider that makes more than 1000 pips per month consistently, you can reach $1M in 8 months!