THINK PERCENTAGES AND MONEY MANAGEMENT ~ best forex trading books amazon
This was the Email Response I got from the $236 video challenge and I loved it so much that I had to share it!
People dont realize that its not how much you have in your account that determines success. Whether you win or lose, its all based on percentages. Its still the same percentage of the account gained or lost on an account with $100 as it is with $10,000 or even $1,000,000. 5% gained is $5 on the $100, $500 on the $10,000 and $50,000 on the $1,000,000. The actual returns, money wise is different.. but the percentage gained is the same. People who say success isnt possible with a small account, dont know their percentages well.
You can successfully grow a very small account with proper knowledge and discipline. In fact, its smarter to start with a small live account until you can trade with discipline and confidence; that way you dont lose as much initially. A small live account is training grounds to build a larger account.
Whats the point in adding funds to your account if you cant build the little you have in your account already?? If youre losing and not gaining consistently.. putting more funds into your account is just going to ensure that you lose more! It is the consistency of applying a good strategy, not the account balance that gives a trader the advantage.
Hopefully traders understand the value of thinking percentages, instead of account balances.If you think in percentages, you also understand the value of money management so much better.
For example, if a trader loses 50% of their account, it requires a 100% gain (double!) to get to break even. Whereas, a 25% loss requires only a 30% gain (a mere 5% over the loss) to break even.
A good trading system combined with strict disciple, and good money management will lead to success for any trader, no matter what their account size!
HAPPY TRADING!!!
Thanks Steve!!!
LOVED IT!!!!!!!!!!!!!!!!(^_^)!
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