Great you have your demo account and you are ready to roll. We will get more into actual money managment next. Are you rich no but you did not lose anything either by using proper money management. Depending on your broker and payouts that is when you become profitable. It will ensure that whatever trading style or system you are using is sound and reliable and will serve to boost your confidence when you go live. Before you let loose your trading skills on that demo account lets stop and jump back to reality. One if your broker only gives you one demo you do not want to burn thru it by taking crazy sized trades just to see crazy big fake numbers. Consistency also bleeds over to money management, if you are not consistent with your money management you might as well not be trading. The smaller trade amounts have 2 purposes.
Today wanted to talk about consistency and money management and how they work together hand in hand. As you can see the account grows nicely each month and the chances of you blowing your account diminish. If you have any questions as usual feel free to hit me up. PIck a new method and work on your trading style until you can hit the above goals. For me that is an acceptable amount and fits into my money management plan. How I trade on a day to day basis is I adjust my trade size after each trade, and your account will grow much faster. Simply enter your current account balance and it will tell you your next trade size. Two you want to start off right and get used to using proper money management, get a feel for how you will really be trading and how the account will grow. The file is attached below.
The majority of brokers require you to deposit funds to be able to access a demo account on their platform. ITM per week its back to the drawing board. If you are in this for the long haul you need to have the right mind set that you will not get rich quick and by following the steps above it should help you to develop a sound Money Management plan to add to your overall trading plan. Back to our imaginary broker. This was using simple money management. Click here is not one touch.
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