3 Forex Secrets That Will Change the Way You Trade Forever!
SECRET #3: Defend, Withdraw, and diversify.
Sustainability is key!
Almost all traders out there talk a lot about risk management. Some might even talk about the correct portfolio sizing. They are right. Portfolio management and position sizing are important elements to the sustainability of your portfolio. If this is wrong, then your portfolio is at risk of blowing up. This is where we need to defend our portfolio. We need to defend our gains using stop losses and portfolio allocation to make sure that our portfolio has a low chance of getting wiped out. And through using a proper sizing rule, your portfolio can grow steadily without the additional risk.
If the right strategy is chosen, then the portfolio should be growing at a steady rate. Then, the next best form of defense is to withdraw your trading capital as soon as possible. While this is not in any way a show of no confidence, it's always the smart thing to do. In a world full of uncertainty, we want to always know that our trading capital is always there. This is the part we do... we systematically withdraw our trading capital (hopefully 100% of it) before we scale further. This way the shop is always there (so to speak...).
And the part that we do best when we execute Secret #2 is that we can deploy new strategies very quickly without having to re-learn or even worse re-invent new strategies. Not all strategies can work in all market conditions. In order to make our portfolio more robust, we diversify into multiple portfolios using , multiple strategies for each portfolio. And each portfolios are independent of each other. Since the strategies for each portfolio is different from each other, there is a remote rare chance that we will suffer losses concurrently or at the same time.
This is the Power of Leverage!
We defend each portfolio strictly using prudent money management and stop loss measure. Then we systematically withdraw our profit monthly. And finally we scale our trading business using other proven strategies and diversify our portfolio into multiple portfolios. And this is where I am right now... with over 20 different portfolios running different strategies that's independent of each other.
These Secrets Empowered Me to Run Trading as a Business
Using these 3 secrets as my core, I am not longer really a trader but I am really managing a trading business. This is also how I have all the time in the world today while my "employees" trade my portfolios for me. I no longer watch the monitor waiting for something to happen.
Heck... I don't even read the news much these days yet my weekly and monthly profit outperforms most traders out there. I am not saying all this to boast. Boasting is not cool. I am just sharing to show you that it's really possible to automate the entire trading business.
Isn't this much more interesting than watching your computer all day long or learning how to trade?
Run your trading as a business. If you are the trader, then you just have a job...
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