How much can I make in a week with the forex market with an initial investment of 100 dollars?…. This is a very good question. If you have the right skills you can turn $100 into $1 Million in a few months.
If you don’t have the right trading skills you can turn $10K into $100 in just a week. So the important thing is having a very good skill to trade forex.
What this means is that you only need $100 to make a fortune with forex trading if you have the right trading skills. How do you develop your trading skills? By practicing again and again your trading strategy and trying to improve it.
How to Become An Expert
My son is an expert at playing video games. How did he become an expert? He plays video games a lot. The more he plays video games, higher his skill level becomes. He loves to play football video games.
Trading is also like playing video games. The more you are going to practice the more skilled you will become.
But you need to play the trading game intelligently. Always look for high quality trades. Avoid low quality trades that have low reward to risk. Always look for reward/risk per trade of at least 3:1.
There are many good brokers who allow you to start trading with a small deposit of $50. The margin requirement is also low so you can use the power of leverage. But keep this in mind that leverage is a double edged weapon that cuts both ways. So how do you manage leverage? You manage leverage by keeping the risk small. With a small risk you try to catch the big moves.
The most important thing in forex trading is risk management. If you don’t risk too much, you are not going to face a catastrophic loss. Let me give you an example. If you keep the risk below 2%, the worst loss that you can suffer is $2 on a $100 deposit.
Patience and Discipline
So the first thing that you need to learn in trading is patience and discipline. Trading is a game of patience and discipline. If you don’t have patience to wait for the right time to enter into a trade, you might as well says goodbye to trading.
Once you are in a trade, you need discipline to manage it.
Learning how to trade well requires time. Don’t think you will become an expert in weeks. But if you keep on practicing your skill level will keep on improving.
Your Trading System
The most important thing that you should focus on is your trading system. If your trading system is good, you will achieve your financial dreams. If your trading system is not good, you will keep on losing.
So focus on your trading system and work hard to make it better and better.
Let’s say your trading system risks 20 pips and makes 100 pips on average. Suppose the average winrate of your trading system is 70%. What this means is that in 10 trades on average you win 7 trades and lose 3 trades.
So on average you make 700 pips and lose 60 pips. You make 640 pips. With a $100, you will open the trade with 0.01 lot. This gives you a risk of 2% with your trading system. Suppose you make 10 trades in a week, so your return should be $64 or 64%.
Now if you can improve the trading system so that instead of making 100 pips, you make 200 pips per trade on average.
The winrate is the same 70%. So now in 10 trades, you make 1400 pips and lose 60 pips. So you make 1340 pips. Now with your improved trading system if you have $100 in our account, the return in 1 week will be $134 or 134%.
Let’s further improve the system....
If you can improve the system so that it makes 300 pips per trade, you will make 2040 pips in 10 trades. Now with your even more improved trading system the return in 1 week will be $204 or 204%.
How to Improve The Trading System
The most important question that will come to your mind is how to improve the trading system so that it makes 300 pips instead of 100 pips.
How do you do this?…..
I mean how can you increase the average win size from 100 pips to 200 pips to 300 pips when the market moves the same amount.
You do this by using the power of pyramiding. You keep the risk 2%. You open more positions when the trade moves in your favor while moving the stop loss to breakeven so that the risk is never more than 2% at a time.
There are traders who love to take a small amount and turn that into a huge amount. But only a few traders have that skill.
Most traders don’t have that skill. If you read Market Wizards book series by Jack Schwager, than you will come across a select few people who have the skill to beat the market consistently.
You should take a closed look at the trading account statements posted by Toshko Raychev 3 times forex world champion. He is consistently making monthly returns like 657%, 968%, 1452%, 1901% etc.
He has posted the live trading account statements to prove that these returns are real. You should especially check the details of 968% return that he made in 9 trading days
Hope that’s useful!…