Overclocking the deposit - is it worth it?
Almost everyone who starts his career on the foreign exchange market has a small initial capital. We suggest you to consider a trading method that will give you the opportunity to increase your capital by several times in a fairly short period of time.
This method is called "deposit acceleration". It is a high-risk method, so it is worth thinking about whether it is suitable for you.
Rules of deposit acceleration
If your goal is the fastest possible acceleration of the deposit, then you need to trade by scalping strategy, or pipsingusing a leverage of 1:500. An example would be a deposit of one hundred U.S. dollars and the most used currency pair on the market - EUR/USD. Under such conditions of the beginning of trading activity you will be able to open positions with a volume of 0.3 regular item. In this position, for each point of advancement of the currency instrument, you will receive a profit of three dollars, of course, provided that the rate will move in the direction you want.
There are Effective rules on how to run up a depositHowever, we would like to point out that compliance with these rules should be rigorous. Here they are:
- Trade in the market with a broker that provides you with smallest spread. This will quite significantly reduce the time of acceleration of the deposit.
- In trading, apply the shortest time periodssuch as M1 and M5. Note that here you should not forget to watch the trend movement on the hourly chart.
- To determine the initial entry point it is necessary to apply the construction of the price channel, as well as Stochastic indicator and its signals. The beginning of a value movement at the end of a pullback, or correction process, directed in the direction of the main trend is the best moment to open a position.
- To get three to six points of income, you only need to spend a few minutes. However, if you see an increase in income and beyond, should assess the situation and possibly close the deal later.
- When your deposit has doubled, the volume of transactions should be increased to 0.5 lots.
- When the size of your deposit has grown to thousands of dollars, We need to reduce the volume of transactions to 0.1 standard lot and increase the duration of the time period, thus moving to a less risky trade.
Alternative tactics
There is another trading tactic for the acceleration of the deposit in the foreign exchange market. It implies use of a portion of the available funds on deposit, rather than the entire amount. The size of this part is different for everyone, it's the part that you don't feel sorry to lose. For example, you have one hundred dollars. From this amount, we extract ten dollars and transfer them to another account. We open a position using the highest volume. The amount obtained from this trade is deposited into the main account, where initially there was one hundred dollars, and trade continues on the same ten dollars.
But even trading with such a small amount of money trading decisions should be made very carefully and balanced, using different types of analysis, both technical and fundamental.