Open A Trading Account And Inculcate These Sound Investment Strategies

Consider this real story of a trader. He has been trading $10,000 for six weeks, but realized only 600 dollars. He was planning to withdraw from trading account as he thought he wasn’t earning much.

He though working as some clerk would earn him more money. So, he thought, why bother with such an inefficient form of income? I told him he was dead wrong. Opening a trading account and starting to trade through trading account emphasizes more on consistency than profits earned.

The trader did not realize that he was earning good fortunes. However, hard he did realize. The reality was that the trader was a successful day trader trading through his trading account.

I told him that I could likely learn much from his endeavor in trading account. He just required realizing of his making steady profits. He should have determined where the consistency of profits was placed. And then execute sound monetary strategies to achieve stellar results.

We took a look at his trading account. And here I present to you some insights about trading account and day trading I learnt: learning how to recognize strategies that produce steady profits. It does not matter how much but if you’re earning profits from individually large trades, it is the key to trading success.

This is what we discovered about his plans:

First, $100 per week would amount to $5,200 per year; a 52% return on his trading account. That's good and it points that he could translate those profits into larger gains. The first way to do that would be to apply sound money management techniques and improve his trading account returns.. He traded 1 share at a time.

A reasonable plan here would be Ryan Jone’s money management trading account strategies. Using this technique, he would increase the number of contracts every $800, or approximately every 8 weeks assuming that he is making consistently $100 per contract per week per contract. Using these rules, he could hypothetically grow his account from $10,000 to $26,800 in just one year by consistently increasing the position size and achieving "only" $100 per week per contract.

Here’s a quick summary of how it would look:

Starting on September 1, with an initial account of $10,000 and a profit per contract of $100, he could make $800 by November 1. If he then put that $800 back into the account, he could now trade 2 contracts, earning a potential $200 per contract for a total o $1,600. If he then put that $1,600 back into the account, he would now have $12,400. So, come January 1, he could start trading contracts, this time expecting $300 for each, with a total profit of $2,400 at the end of the next 8 weeks.

If he follows that pattern each 8 weeks, at the end of the year, his account would be $26,800, and he could be trading 7 contracts for a profit of $700 each.

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