How can I double my money in Forex trading? This question has been going around for decades and the talk of every newbie trader out there. In other investment schemes, doubling your money or your capital is not entirely impossible. But if you are talking about doubling your earnings in Forex trading, it might seem impossible to other traders.
But thanks to the forex brokers that we have nowadays that provide as much as 1:500 leverage, the minimum capital requirement is greatly lowered. There are also trading platforms such as the MetaTrader 4 that let traders trade with ease. So, if you are determined to double your money the safest possible way, these ways might work for you.
What is the simplest way of doubling your money?
You have to take the long haul. It is the simplest way. Waiting for years to double your money without following complicated charts and techniques is the simplest way.
You may open a savings account in your name that offers a higher interest rate. When the interest rate accumulates, the power of the compound starts to kick in. After a few years, you will see your money double on its own, without any effort on your side.
The Rule of 72
Try to understand the Rule of 72. This rule helps you understand how many years it takes to double your money. If you divide the overall value of 72 into the expected yearly rate of return, you will know the number of years that you need for you to double your money.
Investing in the Stock Market
This type of monetary investment is considered an age-old method. You can double your money if you buy stocks without the leverage and margin then keeping it for some time. This strategy is not just applicable in the stock market but in the Forex market as well.
You can opt to purchase a currency pair with a low quantity and hold into it for a long time. If you are choosing to trade on a risk-reward ratio that’s 1:2, then there’s a possibility of doubling the money in a matter of 35 trades.
Scalping (short-term trading)
What appears as noise to long-term traders can actually appear as a meaningful one to scalpers. Although this might seem like the fastest means to earn, it is also the riskiest because it is dependent on short-term price fluctuations. This kind of thing in trading is quite hard to determine even the most experienced trader out there.
Short-term trading is similar to the classic way of doubling your cash. First, you have to pick your preferred risk-reward ratio that will perfectly suit your style and your appetite as well. Other than that, you also have a choose a highly reputable trading platform like MetaTrader 4 which will guide you to becoming successful in trading. Because some traders underestimate the power of choosing a trading platform, they tend to choose randomly without much thought. Trading platforms provide convenient and easier trading. Therefore, you need to pick the ones that have the indicators and the tools that you need.