trade with money you can afford to lose
Never take a loan to trade with. If you are like Kia and pay say 200 a month out of your own paycheck to payoff the loan. How about instead just deposit 200 today nd every month into a live tradeing account in less than 2 years you will have 5000 and more if you are profitable at tradeing. Let say you take the loan and start trading with it. Fine all of a sudden you computer takes a dump on you and you need another one. Now what ? You have exhausted your credit on a loan to start trading and dont sound like you got the funds sitting around to get another computer. Also I would hate to tell you. You are not going to trade fulltime with a 5000 dollar account. Reason why is simple yes you can make a couple hundred a week on that but if you take it out every week it is not there to trade and make money on your profits. Now what happens when you go through a drawdown (and you will go through a drawdown) and now you no longer have 5000 left in there. Now how you going to make a couple hundred a week? Especially since you are taking money out everyweek. You wont be able to build back that money. So what now are you going to take another small loan to get back to 5000 bucks.
Never ever ever trade with loan money
Never ever ever.
Well I am new to baby pips and forex but I am very very experienced in life.
I suggest that first be excellent in what you do and become very eligible to support yourself and save.
Then divide your savings into two -
- low risk and medium return.
- High risk and high return.
Rule of thumb says that
Save atleast 30% of your total earnings
then subtract your age by 100 and the answer is your percentage involvement in high risk
for eg if age is 35years then 100-35= 65 so 65% goes to high risk and 35% goes to low risk.
out of 65% you can choose 50% shares and 50% forex etc.
So the conclusion is save to fight tomorrow.
Believe me I have blown three accounts till date. It hasn’t moved me a bit.
best is start with very little and keep adding to it every month.
No LOAN.
This is the answer you want to looking at. Don’t be stupid by taking a loan out, are you serious?
You trade with money you can afford to lose, taking a loan out means you cant afford to lose it as you never had it in the first place. You’ll end up shooting yourself in the foot (excuse the bad joke here with you being in the army)
Not to be a picky sod, but trading derivatives as 99% of people using this forum will be, is as high as the risk goes in trading. Trying to split derivatives into low, medium and high risk is a ball game in its self, let alone find an individual trade that is likely to be profitable in the first instance.
I appreciate your prospective on risk management and find it insightful, especially your attitude to considering ones age. using your formula I can trade 76% high risk…hmmmm I’d have to consider that 
You didn’t read my post carefully
Shares is high risk.
For that matter high risk means whatever has a potential to go down is high risk.
Low risk is only fixed deposits which give you a fixed interest.
You only become rich when your invested money earns for you.
Even better when your low risk investment really earns.
Its a long process of reinvestments.
Compounding is the right answer.
And till then be and play very safe.
Thanks
Should i start a new thread for other than fore investment or a complete investment guide?
I think a new thread would be interesting based upon your insight into risk etc.
Although saying that, it seems the original purpose of this thread is no longer in continuation, so why not continue it here
I love these 3 year old threads…
Devendra, start a new one up.
Keeping it on topic would be easier that way.
Cheers!
Hi thanks for your reply
I have started a new group risk management of hard earned money
Slow and steady wins the race.
I couldn’t find how to start a new thread so i started a new group.
Keep a target of atleast 5 years and nothing will ever shake you financially.
Keep responding for me to post new and better messages
Android using BabyPips
Just put aside some money every time you get paid from work and slowly grow your deposits to $5000
In the meanwhile, you’ll practice much better money management and be more disciplined because you have less money to lose (and therefore can afford less mistakes).
I didn’t read the whole thread,so I don’t know if you borrowed the money or not,my advice to anyone is dont borrow money to trade.If you are as good as you think you are,it does not matter how low a stake you start with,just remember that if you can improve your stake by 5% a day,even a stake of $200 dollars will be worth a couple of million or so in two years.(thats compounding of course).
What I can tell you is that it’s going to be a very bad move to lose the money what you can’t afford.