Daily Forex #45 - Generating A Basic Salary From Forex Every Month!
A few days ago I shared about how I accidentally stumbled on Forex and made a career out of it. To read that blog post, you can go HERE.
Yesterday (<-- Click this link to read yesterday's story), I have not been making any income for 3 months and met a friend who introduced me to a Forex school. I signed up for their $8,000 advance course hoping to learn a super profitable strategy. Instead the strategy was only so so but I learnt more in-depth trading psychology ideas.
1 of the first thing I did after the class was to set up a separate trading account. I funded that account with only $1,000. This would be my basic salary account. I will only take the highest probability and the best trades on this account to ensure that I keep winning. Whatever profits I make on this account will be my basic salary and whatever profits I make on my main account will be a bonus. I can also choose not to withdraw from my main account and let it compound and grow even faster.
Some people will be wondering how can a $1,000 account generate enough money to pay myself a basic salary. Here's the plan. I will be trading the maximum lot size on this account. Using a leverage of 100:1, I will be able to trade 1 standard lot on a $1,000 account. For simple calculation sake, let's say I make 50 pips per trade. That's $500 profits and my account will grow to $1,500. Now I will be able to trade 1.5 standard lots. Again making 50 pips will mean a profit of $750. Below is a table of how fast the account can grow.
All I needed was to win 4 or 5 times a month on this account. If I won only 4 times, my account balance will be $5,063. Withdrawing the profits will mean $4,063 is my basic salary for the month. If I won 5 times, my account balance will be $7,594, basic salary will be $6,594.
In order to ensure that I keep winning on this account, I had to be very very disciplined and very very patient. I will only take the perfect set up, the trade which will give the highest percentage chance of winning. The lower probability trades will be avoided. I will still take the trade on my main account where my risk is 1% to 2% only.
All companies have to generate revenue, that's why they're in business. If they are not generating profits then they won't be able to grow. If they are losing money, then they might not be able to pay the employees.
Using the above principle for my company, generating revenue is getting new investors. Breaking even every month means I'm not generating any profits. I could have additional revenue of $50,000 each month but if I make 0% profits, that's still ZERO profits! 0% of $10,000 = 0 and 0% of $50,000 = 0! It doesn't matter the size of the account I'm trading. As long as I don't make a profits, I don't get any income.
So alternative solutions have to be implemented. And the very first new solution I implemented was to have a super aggressive, super profitable and super high probability winning trade account.
Tomorrow I will be talking about a few other things I implemented to ensure that I generated an income every month. See you tomorrow!
Hope you enjoy today's blog post and if you have any questions please feel free to ask in the comments below and I will definitely respond to you.
Daily Forex is my way of sharing my personal thoughts on the Forex Industry with would-be traders as well as current traders.
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Here are some interesting topics to start you off :
- Daily Forex #20 - Can You Really Make Money Trading Forex?
- Daily Forex #13 - Make Your First $100,000 Trading Forex
- Daily Forex #12 - Forex Is Not a Get-Rich-Quick Scheme
- Daily Forex #9 - 2 Main Reasons Traders Fail
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