Make a Fortune from Trading Online! - Part 2) The Investment Plan

Back on the topic of HOW TO BECOME A SUCCESSFUL FOREX TRADER, with maybe the most important part of the whole deal: your INVESTMENT PLAN. That's right, you have to know beforehand what you are getting into, what's the risk involved and the expectations you have from your trading. That's how you keep control over your money and make sure you are not wandering around blindly, like many people in this business do without even knowing it.

So here's how we kick off - I'll let you in on the basics of the market, what you need to know, what you risk when trading and what you should aim for. Then starting next time we can move to the practical details about how to get things rolling.

First - what does FOREX mean and why this market? It's an abbreviation for "foreign exchange", the biggest financial market in the world and one of the most volatile. It's the environment of big investment sharks as well as investment dummies, the former constantly feeding themselves with the latter. Why this market and not the stock exchange? I can give you many reasons. First, its unregulated so you don't risk getting bankrupt just because some company on the other side of the world is facing internal difficulties. Then, you don't really need "inside information" - it's so large that actual manipulation is almost impossible unless there's a big guy with deep pockets working for some major central bank or investment fund doing it. Also, it's the only one allowing you 1) easy/instant access, all internet-based; 2) possibility to start small, and demo trade until you know what you are doing; 3) possibility to aim for large profits compared to your investments due to very high leverage; 4) possibility to trade around the clock, 5 days per week - and the list could continue. There are many highly educated guys making huge cash on FOREX and many stupid losers who just cannot help wasting their time and money. I'm an investor - I don't want a fortune overnight, but i want that fortune to come at some point. And the key to such a success is A GOOD SOUND INVESTMENT PLAN.

In a nutshell, the steps to live trading on FOREX are few and simple. You go to an online broker, open a free demo account and you can start demo trading in just 2 minutes - no obligation, no hassle, 100% free of charge. This demo is EXACTLY the same as a real account, so you can get familiar with all the procedures before putting any money into a real account. You can and should demo for a while, as you need to understand how this works. Then, once you like what you see over a period of time you can apply for a live account, fill in some forms and in just a few days you are ready to go. The broker sends you the bank details for sending your cash, and credits that money to your account upon receipt (be careful who you are sending money to - make sure you double check!!). You can get everything ready very easy and fast, but the really important aspect is when and how you are going to capitalize on your investment. That's why you need an investment plan in the first place.

OK, so here's what you need to know. First, you decide on how much cash you are willing to allocate for this venture. It should be any amount you are comfortable with, not too much - there should be no psychological pressure on you when trading, you must remain focused at all times. Let's assume you decide on investing 1000$, and you are willing to keep this money in your account for 1 year. This means you will be accumulating profits (or suffering losses) without withdrawing any amount for a period of 1 year. The first question is: how much (in % return on investment) will make you happy after 1 year? Will you be happy to accumulate 100$, or you are thinking more like 1000$ extra added to your initial investment?

The first thing you need to know is that an investor thinks in terms of percentages, not cash. Of course at the bottom of all things lies cash, and lots of it - but you cannot realistically expect to make 1.000.000$ starting with 100$ in only 1 year - theoretically it's possible but the probability is NOT on your side.. I'm sure you get my drift...:) Getting back to earth, I'd say a 10% profit expectation (return on investment) after 1 year is way too low if you take into account the huge opportunities offered by this market and the system I'm going to present to you guys. A 50% yearly profit sounds more like it, although you could go all the way up to 100% - trust me, it's a REALISTIC and achievable target! I know it because I made almost 60% profit on my account last year, and I'm planning to make more than 100% this year! If you try tripling your account in 1 year you are cheeky, but still not ridiculous - the risk may be higher but it's still achievable. 500% per year is already cowboy stuff for me, and if you aim for that you risk more than 50% of your initial balance, which for me is kinda rough. All the figures above are for neck breakers or stupid losers, and I don't care for such people. If you are happy with doubling or tripling your capital in one year then I may be just your man, and I can tell you one thing for sure: we could be helping each other a lot!

This might sound like casual chat to some of you guys, but trust me this is serious stuff. Even more serious is how you accept and pursue your objectives and IF YOU MANAGE TO KEEP YOUR PROMISE MADE TO YOURSELF AT THE BEGINNING OF THE ROAD. There's a sea of money out there, and people are greedy. I'm greedy, maybe you are greedy too. Greed and fear are the trader's worst enemies! You start indulging into these pathetic emotions and you might be dead for the market! Here's the good news: if you control your greed and respect your plan, then you're half way there. The other half is controlling your fear - and that's why we FOLLOW A SYSTEM. We follow a system because we're humans and humans make mistakes. The system is there to structure our moves, the system does not care about emotions the way we do! The system is not feeling fear or greed or remorse - the system is either good or bad, end of story. I followed some systems over the last 4 years, and some of them were good. The one I'll be presenting to you is very good: it's trend-following, it's proved to give good results, it carries a low risk and - best news for you - im offering it to you for free! Why for free? Just go to the following post and you will find your honest answer ;)

Back to the trading plan - here's our investment plan in a nutshell:

• Initial investment: 10.000$ (just replace that with your initial investment);
• Time: 1 year (ideally, you can get out at any time though);
• Objective: ~100% return on investment, with profit capitalization (no withdrawals for 1 year);
  => 41% target per semester (6 months), on average - ~4.100$ ;
  => 6% monthly target, on average - 10.100$ net profit;
• Initial risk: 20% of capital, decreasing monthly. After 3 months the risk of loss should be reduced to 0 (risking only your accumulated profits);
  
• Broker fees: 0 (included);
• Education fees: 0 (we don't charge you a dime);
  
• Sit on Money commission: 0 (paid by broker);
• Government Taxes: depending on country, please inquire;
• Other fees: No account opening fees, no hidden fees.
  

You might ask now: is THIS a complete investment plan? No, it's just a very basic sketch, applied to our specific direction. A full investment plan needs to take into account other factors, including technical ones, but this is not the place to go into more details. We will talk about it more as we go along.

Ok, I think that's already enough for the day. I'll see you soon with more details, and we'll get down to some more technical stuff. Until then enjoy the EUR2008 games and take it easy!