How to Make a Million

One Million Dollars

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Currency Trading

Well its now the 15th December 2015 and I'm still alive....just. Out of the ten cardinal sins that a trader can make I probably committed five of them at the start of this holiday period. The biggest of these sins was to trade at all. Trading in the currency markets is very thin from about a 3 weeks before Christmas through to around the 4th or 5th of January. Professional traders working for major financial institutions tend to take a couple or three weeks vacation away from currency trading. When all the trading centers are trading Asia-Europe-New York, it takes hundreds of millions of dollars to move the market. When the market is thin over a holiday period when one or more centers are closed, or on a Friday afternoon, it only takes a few million to move currency rates.

I traded and paid the price.....I lost 25% of my capital in one trading session. In fact I had only lost 5% but I committed a second traders sin and panicked. Instead of sitting back and taking a deep breath before thinking about my next move I dove straight into the market and lost another 20% in a few minutes. After losing the first 5% I should have stopped trading for that day and thought through why I lost the trade and not tried to win back the lost money in panic mode. I was lucky in that over the following few days I had some really good trades and gained 20% of my capital quite quickly. Now I am going to stop trading until after the new year. In fact I will start trading again on the 9th January 2016. My capital stands at $112.14 after 40 trading sessions. Despite the setbacks I am still on track for that elusive 1 million dollars by Christmas 2017. Just as a reminder to myself and to anyone who is following me or anyone who wants to start currency trading, below are the ten golden rules which successful traders follow.


Mastering Technical Analysis

The Ten Golden Rules of Currency Trading

  • keep to your budget
  • don't deviate from our strategy
  • don't get emotionally involved..don't panic...don't get eaten up by greed
  • don't let success go to your head
  • use technical analysis to help your decisions not predict the market
  • use both leading and lagging indicators
  • don't buck the trends.....intra day movements are not trends.
  • don't trade news stories immediately.....wait!
  • don't over leverage...100 to 1 is the most you should do
  • always set your stop lose and trailing stops prudently

If you keep things simple you will almost certainly enjoy some trading success.

How to Make a Million Bucks

Making a million dollars through currency trading is not so far fetched as it sounds. In fact it is a mathematically sound currency trading strategy which only needs one or two hours a day of your time using your trading platform. I actually use the eToro trading platform.

If you start with a risk capital of just $25, and a trading strategy that has three key elements.

1. Only trade one currency pair

2. Only risk 5% of your capital on a single trade.

3. Each day target a profit of 3.5% on your total capital.

If you keep focused and disciplined on these three elements you can reach a profit of 1 million dollars in 309 days. However, shit happens so I have extended the goal in case something hits the proverbial. So my target date is December 2017.

Just 40 days ago I started on just this project. I started with a risk capital of $25 and so far have kept to the key three elements in my trading strategy. Here is where I stand 40 days later.

Progress

Session/Day
$ Capital
3.5% Target
1
$25
$25.90
10
$42.76
$35.26
20
$63.00
$49.74
30
$95.39
$70.17
40
$112.14
$98.98

So far the strategy is working!

The above spread sheet shows my progress in terms of numbers to date, only trading the EUR/USD currency pair. This is a partial snap shot of a spread sheet I update at the end of each day that I trade. As you can see although my target is 3.5% of my capital per session/day I am ahead of the target by $13.00. That's with 10 days when I either didn't meet my target or lost 5% of my capital. Of course there were other days when I made more than 3.5% and 4 days when I made or lost 20% and 25%.. The key though is that if I am disciplined enough to keep going like this I will meet my target of 1 million dollars by Christmas of 2017. What a lovely present to give myself.

I will update the spread sheet every 100 trading days so you see how I am doing.

Just a thought....get yourself a trading platform demo account for Christmas and start trading with virtual money. If you catch the bug...get in touch and I'll take you through the next steps.

Happy trading and happy holidays 2015!


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Comments 35 comments

rb11 profile image

rb11 4 years ago from Las Vegas

Do your figures include commissions? or are the commissions built into the spread?


one2get2no profile image

one2get2no 4 years ago from Olney Author

The commission is in the spread.


Arian Rey profile image

Arian Rey 4 years ago from Pearl of the Orient Seas (PHILIPPINES)

It sounds easy. Thanks for simplifying currency trading. It helps a lot for a newbie like me.


Ed C. 4 years ago

Do you have any books regarding currency trading that you would feel are great sources to learn from?


one2get2no profile image

one2get2no 4 years ago from Olney Author

Ed C Try some of the books I mention in the hub they are really good sources. Arian..Thanks for the comment.


John 4 years ago

Thank you for sharing this information. What trading platform do you use and what is the typical commision? Also, is there a certain time of the day you find better to trade EUR/USD?


one2get2no profile image

one2get2no 4 years ago from Olney Author

John....I use eToro because I find the platform easy to use and it has all the technical and fundamental analysis tools available. Also of course there is the possibility of social trading. If you read my hub eToro social trading you will get a better idea. Their commission is 20 to 30 pips depending on the currency. Trade EUR/USD at GMT 2pm to 4pm this is when New York and London are open together and the market is most liquid.


PaulGoodman67 profile image

PaulGoodman67 4 years ago from Florida USA

Interesting. I have toyed with idea of currency trading, especially as interest rates are so low at the moment. To start with a low amount seems like a good idea, as in the worst case scenario you won't go bankrupt! :-)


one2get2no profile image

one2get2no 4 years ago from Olney Author

Thanks for dropping by. Yes it's a very good idea to start with a dummy account and then low real capital.


Ruby H Rose profile image

Ruby H Rose 4 years ago from Northwest Washington on an Island

I am intrigued.


one2get2no profile image

one2get2no 4 years ago from Olney Author

Thanks for dropping by.


annescripts profile image

annescripts 4 years ago from Gilbert, AZ

Nice work! Voted up.


one2get2no profile image

one2get2no 4 years ago from Olney Author

Thanks for dropping by...:)


DREAM ON profile image

DREAM ON 4 years ago

I love your plan and this very exciting.You have drive and ambition.This field is all new to me.I will have to keep reading your hubs to learn more.Thanx for sharing.


one2get2no profile image

one2get2no 4 years ago from Olney Author

Thanks for dropping by...:)


sligobay profile image

sligobay 4 years ago from east of the equator

I'm just dropping by....


prairieprincess profile image

prairieprincess 4 years ago from Canada

Wow, very interesting. As someone who knows nothing about high finance, it's good to hear that there actual formulas to trading. It does make sense. I will be interested to see how you progress. Great hub! Voted up and I'm sharing.


brightforyou profile image

brightforyou 4 years ago from Florida

Very interesting hub. I wish I knew more about trading and the market. You've been more than generous here in giving us all some hard-earned tips, thanks!


one2get2no profile image

one2get2no 4 years ago from Olney Author

Thanks for the compliment prairieprincess. Yes there are formulas which makes trading different from gambling. In fact it's like a self fulfilling prophecy as everyone is trading on the same data. Thanks for dropping by.


one2get2no profile image

one2get2no 4 years ago from Olney Author

Thank you for your kind comments and for dropping by brightforyou.


twodawgs 4 years ago

My doubter-self is whispering in my ear as I read this. But for no more than $25, I think I'll take you up on your challenge.


one2get2no profile image

one2get2no 4 years ago from Olney Author

Good for you...if you need any help take a look at my other forex related hubs. Thanks for dropping by and good luck.


DREAM ON profile image

DREAM ON 4 years ago

I am still interested and have been following some other pursuits at the moment.How is your progress.What things are you doing at the moment.Has your HubPages brought in a good return.I see you have over 100,000 views Great job!Very interesting hubs and thoughts.Thanx for sharing.


one2get2no profile image

one2get2no 4 years ago from Olney Author

Do to other pursuits I have noot been able to spend the time I should trading and have fallen behind my timeline. Since my last update I have made another $500.


GlstngRosePetals profile image

GlstngRosePetals 4 years ago from Wouldn't You Like To Know

Wow! even if you dont make it to the million mark your still on the positive end great job and good advice. Thank you for sharing, i will have to try this. I will be back!!


one2get2no profile image

one2get2no 4 years ago from Olney Author

Good luck..thanks for dropping by.


HoneyBB profile image

HoneyBB 3 years ago from Illinois

Thanks for sharing this. I have always wanted to get into some kind of trading/stock market thing but never thought I had the capital to do so. I had no idea you could invest only $25.00. I also thought it would be way too complicated for me to learn with other things going on in my life but this seems to be a pretty easy process.


HoneyBB profile image

HoneyBB 3 years ago from Illinois

Thanks for sharing this. I have always wanted to get into some kind of trading/stock market thing but never thought I had the capital to do so. I had no idea you could invest only $25.00. I also thought it would be way too complicated for me to learn with other things going on in my life but this seems to be a pretty easy process.


Say Yes To Life profile image

Say Yes To Life 3 years ago from Big Island of Hawaii

Back in 2008, one of the few times the Canadian dollar was higher than the American dollar, I encouraged my Canadian friends to exchange some money for American, then change back when the Canadian went back to 80 American cents. In doing so, they could increase their investment by almost 29 percent. They didn't have the nerve to do so. I would have, except I live in Hawaii, which is too far from the Canadian border for me to make an easy transaction.

Actually, even if I'd still lived in Seattle, the time for me to get Canadian money was when it was still worth 67 American cents. So it would have been too late for me, anyway.


quildon profile image

quildon 3 years ago from Florida

The whole idea of trading to me is intimidating but intriguing. Your formula makes me want to try it, but I need to read up some more of your hubs on the subject first. Great hub!


justmesuzanne profile image

justmesuzanne 2 years ago from Texas

Interesting HUB! Voted up and useful! :)


one2get2no profile image

one2get2no 2 years ago from Olney Author

Thank you for dropping by.


KenDeanAgudo profile image

KenDeanAgudo 2 years ago from Tiwi, Philippines

This sound very interesting, million dollar? That is pretty big however never dreamed of having too much money. Just enough will do. It will only put me to troubles. lol


andrew 2 years ago

how did it go?


one2get2no profile image

one2get2no 2 years ago from Olney Author

Unfortunately I broke my own rules and didn't spend enough time watching the rates. I made about £100,000 an then started to lose it so withdrew my capital. However, the theory was correct even if the action was half hearted.

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