After some steady and overall successful trading, you feel it is time to move up. Your success so far has been based on hard work. The process included learning to lose some money and accepting the losses. Most importantly, you made more gains that losses and you have been consistent over a few months.
So now you are thinking of scaling up: making more money in your trading. It is important to scale up in a sensible manner. Here’s why and how:
Scaling up can be done in 3 ways: enlarging the position sizes (the preferred method), adding more trades in each session, or extending the trading hours.
Whatever method you chose, do it responsibly. Here’s how.
1. One move at a time: If you do more than one move at a time and something went wrong, you will not know what happened. It will be hard to put your finger on the reason: was it the extra trading hours or the pressure due to more trades. Was it both? So, it is better to take one step at a time.
2. Don’t take extreme steps: Don’t take your scaling up to the extreme. For example, if you add more trading hours, add one hour and not four. If you enlarge your position sizes, remember to stick to the money management rules.
3. Wait before the next move: After scaling up once and seeing that it works, do hesitate before scaling up once again. Take your time in verifying that your change worked. As with starting to trade for the first time, early success may be dangerous. Potential greed to disaster, just after you have managed to stabilize your forex trading.
What is your experience with scaling up? Do you use different methods?
So now you are thinking of scaling up: making more money in your trading. It is important to scale up in a sensible manner. Here’s why and how:
Scaling up can be done in 3 ways: enlarging the position sizes (the preferred method), adding more trades in each session, or extending the trading hours.
Whatever method you chose, do it responsibly. Here’s how.
1. One move at a time: If you do more than one move at a time and something went wrong, you will not know what happened. It will be hard to put your finger on the reason: was it the extra trading hours or the pressure due to more trades. Was it both? So, it is better to take one step at a time.
2. Don’t take extreme steps: Don’t take your scaling up to the extreme. For example, if you add more trading hours, add one hour and not four. If you enlarge your position sizes, remember to stick to the money management rules.
3. Wait before the next move: After scaling up once and seeing that it works, do hesitate before scaling up once again. Take your time in verifying that your change worked. As with starting to trade for the first time, early success may be dangerous. Potential greed to disaster, just after you have managed to stabilize your forex trading.
What is your experience with scaling up? Do you use different methods?
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
USD/JPY bounces of key level in softer NFP print
The Japanese Yen is set to lock in a staggering performance for this week against the US Dollar. The Yen has appreciated over 3% following Japan’s intervention to propel the currency and the Fed’s less-hawkish rhetoric. The US Dollar Index slips below 105.00 with softer NFP print.
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.
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