The amazing thing is, money management keeps your money as safe as it can be. While at the same time compounding your wins for maximum profits.
So the more money you have in your trading account, the more profits you make.
The more you win, the bigger your profits grow. The bigger the profits grow the bigger your trading account gets. The bigger your trading account gets, the more money you win, and on and on and on it goes…
It’s a virtuous cycle and its exponential…
This gives you the ability to turn small amounts of cash into vast amounts of profits very quickly…. all while keeping your money as safe as possible…
So now I had a breakthrough, I was using a professional trading system and I was controlling my money on each trade. I started to make some profits and was overjoyed with my trading results. But my confidence was misplaced as I was still struggling to make those massive profits that I had read about.
With a bit of honest self reflection I found the reason was, that no matter how hard I tried follow the trading system exactly. I would allow either greed or fear to cloud my judgement and I would close the trades too soon or too late and it was crippling me big time.
I was just getting in my own way…
So with work having a stranglehold on my time and my clouded brain tripping me up. I realised that couldn’t get out of my own way consistently enough to make the big bucks.
I had to find a completely different way.
Soon after realising that I had to take myself out of the equation, I looked into alternative ways of trading forex and settled upon robot (computer) trading.
This was the surprisingly simple answer that I was looking for, I could set up the auto systems before I started trading. They then made me money with no silly trading mistakes. They would trade exactly how they are told to trade.
I also got an unexpected bonus. By using automated trading I could now trade 24 hours a day. I could make profits even when I was at work and I would even make some cash while I was sleeping.
I was ecstatic because now I was never going to miss a trading opportunity.
But I soon discovered that trading this way needed a completely different skill set. So once again I was back to the books and searching the net. I researched, learned as much as I could and I slowly pieced together the required knowledge that I needed to make profits using trading robots.
To my amazement the profits started pouring in, I was overjoyed that I had finally cracked the code to forex success. I sat back ready to let the good times roll, and they did, for a while.
But it was just too good to be true, suddenly wins became losses and my trading account started bleeding cash.
I thought I was doing everything right, but here I was, losing money hand over fist.
I was pulling my hair out trying to solve this new mystery. I was using robots that were making profits, then for no apparent reason they would suddenly start to lose and It was putting me in the poor house.
I needed to figure out why and fast.
I would change the losing robot to a winner, but sooner or later all my robots hit the same brick wall. So yet again I had to hit the books and search for an answer…
Then when I felt completely in the dark and I had almost given up hope of ever becoming a successful forex trader that I desperately wanted to be.
The answer came from an unlikely source, Investing.
Here’s what I discovered from long term Investment guru Harry Browne. Writer on stocks, bonds and commodities (who ran as the libertarian candidate for president of the United States in the 1996 & 2000 elections).