Friday, October 11, 2019

The Magic Trick

I will never forget the day I met my friend; we will just call him "Keith," and he told me about the magic trick.  When we trade Forex, we trade using leverage.  Leverage allows us to borrow capital from our brokers for a more significant return.  Sounds wonderful, right??? Of course, everyone wants bigger profits.  That is kind of the whole point.

When I met "Keith," he told me about a trade that was NOT running in his favor, and he was overleveraged.  This means the money he had to cover the trade was closing and it was closing fast!  The brokers will let all or just about all of your cash run negative up to the size of your account.  Then they will close the trade to keep you from being in debt to them. (mine closes trades at 70% of my balance)

"Keith" was describing this trade with vivid emotion.  He had his mentor on the phone discussing the trade; evaluating if he should take a loss.  Before a decision could be made, the trade just disappeared!  Emotionally he was beside himself.  He said; "It was like "magic"; the money just vanished."  In the Forex Trader world, this is known as a blown account.

Now while his description of his emotions was very comical.  This really is no laughing matter.  And I am going to offer out a different magic trick.  You see, the secret to winning in Forex is leverage and patience.  "Keith" had seen some quick wins.  Who does not like to win?  Because he was winning, he traded more than his account could sustain long term. 

I worked with "Keith" and his team.  I introduced the "Gasolina's Double My Account Challenge" concept.  One where we build our accounts a little slower paced.  We traded only until we reach our goals.  Thus reducing our exposure to the Forex Money Dragon.  The results were astounding.  We actually had people winning!  Reports of doubled accounts came in from the most unexpected places. 

That is the Magic Trick offered to those I work with!-- My $20 bill has a friend who joined him.  Another $20 bill.  They are quite happy together.  Compounding and doubling themselves.  Success is just a series of duplicating what works over and over.  When you learn to increase your account, you can do it repeatedly! 

This week in trading is a good one.  Remember, I have a daily goal of 2% or a weekly goal of 10%.  I know that this goal is realistic because I do not trade daily or all week long.  7 weeks in and an astounding 276%.  
Mentor-Ship Application *The information here is for educational purposes only. Risk Disclaimer for Forex Trading
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors.  Past performance is not indicative of future results.  The high degree of leverage can work against you as well as for you.  Before deciding to invest in foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite.  The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money you can not afford to lose.  You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.   

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