logo
Get Our New E-Books For Free

How to Become Multi Millionaire Trading Forex, with a Proper Trading and Risk Management Method


You can sit at your laptop, trade forex and make a lot of money from the comfort of your home. This is too exciting and attractive to everybody. It looks like a very easy business at the beginning. You start reading about forex and soon you will realize that forex really makes money.

First, we are eager to find something that makes money. When we succeed to find it, we think about the ways that make more money with it. You ask yourself whether it is possible to make more money within a shorter time.

Human is infinite by nature. We don’t want to be limited at all. We want to be free to do anything we want. When it comes to forex trading and we see that it can potentially make money, we want to maximize the money it makes. One of the ways that comes to our mind to make more profit within a short time, is taking a bigger risk. This is a way that comes to the most of the novice traders’ minds, specially because many of them can not open a live account with a reasonable size. However, it is a risky way. I will tell you why. There is a much better way to grow your account faster. Before talking about that way, please see the below examples to see how taking a high risk can “theoretically” grow your account much faster, but can practically wipe out your account.

If you open a $1000 account and make 5% profit per month, your account balance will be $3,225.10 after 2 years, if you don’t withdraw any money and keep on making 5% profit every month for 2 years.

If you keep on trading that way, your account balance will be $18,679.19 after 5 years.

I don’t say that you can consistently make a 5% profit for 5 years. You will have some losing months as well. These numbers are just examples.

If you can neither make more profit, nor you can open a larger account, you have to be happy with the rate that your account is growing, or you have to find a different way to grow your account faster which can be more riskier as well.

If you open a $50,000 account, and make the same 5% profit per month, your account size will be $161,255.00 after two years (of course if you don’t withdraw any money for 2 years). Then you can keep on making 5% profit per month, and withdraw $8,062.75 every month. That is not bad. Indeed, it is a good monthly income. But the problem is, most of you cannot open a $50,000 account at the beginning.

So the only option that comes to your mind, is taking a higher risk. That is when the greed takes the control and you can lose your shirt because of it: You think you open a $1000 account with a 500:1 leverage. You can take a 1 to 2 lots positions with such an account without any problems. Then you calculate and will see that if you open a $1000 account and make 100% profit per month (you double your account every month), you will have $4,096,000.00 after one year or $16,777,216,000.00 after two years (of course if you don’t withdraw any money).

Wow! It is amazing. It is mind blowing, isn’t it?

You can become multi-millionaire within 1 to 2 years, by risking only $1000.

Right?

Wrong!

Having such a big amount of money in the trading account you have with a broker, is possible only on the paper, not in reality. Read this: Some Forex Trading Facts and Myths You Must Know

The other thing is that it is impossible to make a 100% profit every month for several months or a few years while your account leverage is 500:1 and you are risking too much. Those who try to double their accounts every month, can get lucky to do it once or twice, but then they will wipe out their accounts the next month. To double your account within a short time, you have to take too much risk that will result in big losses finally. If it was that easy, now we had so many millionaires in the world who would do nothing but trading Forex from the comfort of their homes.

The problem is 99.99% of the traders decide to turn a small amount of capital to a huge wealth, while they have not properly learned to trade yet, and they have not passed all of the learning stages. They open an account and try to double it every month after a few weeks/months of learning and practicing. Therefore, they lose their money and blow up their accounts.

Many of these traders top up their accounts a few times, but the same thing happens over and over again. Why? Because they don’t know how to trade. They want to double their accounts every month through Forex trading, but they don’t know how to trade Forex properly. So… A sweat dream changes to a nightmare, and someone who wanted to become a multi millionaire within 1 to 2 years, gives up on Forex trading after losing several thousands of dollars.

You should complete the learning stages first, open a live account, take a reasonable risk in each trade, manage your risk, position and profit, and grow your account slowly and steadily.

1. We have already talked about completing the learning stages a lot. You can follow the below posts carefully and you will pass the learning stages easily and without any headache: Become A Profitable Forex Trader In 5 Easy Steps

2. Now, I assume that you have passed all the stages and you have repeated your success with your live account at least for 3 months consecutively. Above all, I assume that now you are patient and disciplined enough to wait for the strong and perfect trade setups. So your success rate is really high. I mean you pick the trade setups that either hit the targets, or at least give you the chance to move your stop loss to breakeven. So you are now ready to grow your account.

Start with a small account at the beginning. Don’t think that if you open a big account, you will shorten your way. Risking a larger amount of money creates harmful emotions that don’t let you trade properly. Your greed pushes you to open a larger account, and then your fear makes you blow up the account.

3. You should trade patiently until you double this account. I don’t know how long does it take you to do it, but be patient until you double your account. Then withdraw the initial capital and leave the profit in your account. You are now trading with your profit, and you are not risking your capital money.

These are the articles you will definitely need to read:

  1. Double or Even Triple Your Forex Trading Account Risking 2-5% Only
  2. Forex Calculators
  3. Risk/Reward Ratio in Forex
  4. Money Management in Forex

Good luck 🙂

Join Our 20,000+ Loyal Followers Now & Receive Our E-Book For Free!
Download Our E-book For FREE and Don't Miss Our New Articles!
Enter your email address and check your inbox now:

LuckScout
About

"Whether you think you can, or you think you cannot, you are right." - Henry Ford

I want to...

45 thoughts on “How to Become Multi Millionaire Trading Forex, with a Proper Trading and Risk Management Method
  1. Otto says:

    Thank you for this post.
    About position management you wrote in other articles (like https://www.luckscout.com/what-is-the-proper-risk-and-reward-ratio-in-forex-trading/ or https://www.luckscout.com/how-to-manage-the-stop-loss-in-forex-trading/), that stop loss should be moved to breakeven as soon as the price moves in my direction by the size of the stop (and even further as price moves more). However, in this article you write that only move to breakeven only when price hits the target.
    My question is: which one do you suggest?
    Thanks,
    Otto

    • LuckScout LuckScout says:

      That article is not written by me. I don’t remember who has written it. It reflects the writer’s method in moving the stop loss. I prefer to give enough room to the price fluctuation. I move the stop loss of the second position to breakeven, when the first position hits the x5 target.

  2. Kurt says:

    Could you please explain the target of the first position: 5X what?
    Thank you.

    • LuckScout LuckScout says:

      Stop Loss X 5 = 1st Target

      For example, when your stop loss is 30 pips, your first target will be 150 pips.

      • Ray says:

        I’m confused, nowadays if currency pair could get you 30 pips and above for the run, it would be your lucky day, most of the time, those pair are north-bound for few minute and south-bound for a few some not even touching 25pips away. Yes, we agreed longer time-frame trade is good but would you mind or account could sustain that long-run is another factor.

  3. Tim says:

    Good sensible article, thank you.

    However I’m not able to find any good strong setups! for the last 2 weeks i have been faithfully checking the daily candles, but cant find anything.

    I feel like going back to scalping gold and oil on the 150 tick charts, (faster than even the 1 minute charts!), heaps of setups all over the place, but boy its stressful!

    I would much prefer to trade like you do Chris, 30 mins per day, but we good good SETUPS in order to make money.

    Any way, thanks for all the effort you put into this site, keep it up please.

    • LuckScout LuckScout says:

      Tim, you can do scalping if it makes money for you consistently. If you see that I don’t recommend trading the short time frames, because it doesn’t make money according to my experiences. But if it does make money for you, and you are happy with it, then don’t leave it.

  4. Yomi says:

    Thanks Chris. Please, I have a question on “Take two positions when there is a strong and perfect setup. Set a reasonable stop loss for each”. Do you mean that we can take two positions at a time on a pair (e.g, EURUSD).

  5. okeke says:

    Thanks so much for this one. Chris, is it okay to open a live account after 3 months of consistent demo profits?

    • LuckScout LuckScout says:

      It depends on the result of your 3 month demo trading.

    • Ray says:

      On top of your consistent demo profits, please gauge it with your real-money as this would get you the real-sense of trading-feel, because number of times that people trading with positive result getting burn when they find the different feeling that the “real money” in trading.

  6. Otto says:

    Sorry, but there is a sentence that I don’t understand: “I mean you pick the trade setups that either hit the targets, or at least give you the chance to move your stop loss to breakeven.”
    Later in the article you write that stop is moved to breakeven only when the target is already hit. So if the target is not hit then the stop loss will be hit at its original level, not breakeven.
    This contradiction confuses me a bit. Could you please explain it?
    Thanks
    Otto

    • LuckScout LuckScout says:

      Otto, You move the stop loss to breakeven for the 2nd position when the first position has already hit the x5 target. This is possible only when you pick a strong setup, otherwise the stop loss will be hit in both of the positions.

  7. victor paul obike says:

    Hi, Chris pls what lot size do you recommend for a beginner or a novice trader like me who is still learning through the rope?

    • LuckScout LuckScout says:

      Lot size depends on your account size. You have to calculate your lot size based on your risk percentage and the stop loss size. I have the position size calculator link above. Try it and see how it works.

  8. Casi says:

    Please sir, am sorry if I am drawing you back, but the truth is that I have for long been hearing about FOREX but don’t really know how it goes nor been involved, but from ready all your articles I learnt its a kind of fix depositing your cash and manage it to grow. ….please as am interested in this, can u be a coache? how do I start and where do I go for the fundamental? Thanks a lot.

  9. Paul says:

    Hi Chris.

    Great article. I have grown my account using a similar principle.

    For example, if my SL is 30 pips, I will set my TP at 150 pips. However, I trail my stop pip by pip so that when I am 30 pips up, my SL is at breakeven (less spread of course.) At this point, I will add to my position with a 30 pip trailing stop. I will add to my position every 30 pips until I hit TP. If the trade goes against me, my maximum exposure is limited to my initial SL of 30 pips.

    I trade to earn an income on which I could retire comfortably, although I’m not yet at retirement age. I invest surplus trading capital elsewhere.

    Thanks for your unselfish contributionn

    Regards.

    Paul.

    • LuckScout LuckScout says:

      Hi Paul,

      Thank you for your comment and also thank you for sharing your position management strategy.

      Also welcome to LuckScout 🙂

    • keen246 says:

      Hi Paul,
      I find your position management quite interesting as well. May I ask you, each time you add a new 30 pips position, you use the same lot size as on the first position? The 30 pip trailing works for you on what Time Frame? Any particular pair?
      Thanks

      • Paul says:

        Hi Keen

        I use a spreadsheet to calculate the number of lots per level based on my profit objective in terms of growing my account per trade. This concept is based on Alex Duplooy’s DIAT trade management strategy, which I have adapted to suit my risk tolerance and profit objectives.

        HTH.

        Paul.

        • Paul says:

          PS. The short answer is I use a pyramid strategy.

        • keen246 says:

          Hi Paul,
          Thanks for your reply. I’ve been reading about the concept of pyramiding and seems like a very good strategy to increase the account when done properly. I need to investigate a bit more on this interesting concept and start using it.

          Cheers,
          Keen246

  10. thiru says:

    hi Chris,
    I have read through either of the articles. You have mentioned that we cannot grow the account by more than 5% per month. How realistic is this? Can’t anyone grow their account by more than 5% per month? I am going to start trading forex. I expect to grow my account by 10 to 15 % per month. But this statement really makes me worry. Please clarify.

    Thanks,
    Thiru

  11. AZG says:

    Hi Chris,
    I started a new demo account at the beginning of this month with 10K and its now a nice 11867. I feel very confident I have a truly groundbreaking strategy and was planning to fully double the demo acct before depositing cash to invest. But now I’m getting antsy so maybe at 15K I will consider the training done (I did FX training about 6 mos ago but then left it alone until now). Question: if I can add 3 thousand to this account in 2-3 more weeks how would you rate that? Stellar/OK/good for a beginner/expert…? Your input is much appreciated.

  12. Don says:

    Hi Chris,

    Great site i wished i would have paid closer attention to it
    and all the trading info you have here awhile ago.
    I essentially understand your concept of placing the two trades and risk reward.
    My question is what time frame are you using for the 1st trades 1:5x?

    Thx Don.

  13. Dario says:

    HELLO
    You mentioned here about 500:1 leverage?
    Please explain me that because in US is no more than 50:1.
    Thank you very much.
    I love this website

    • LuckScout LuckScout says:

      Thank you.

      Please read the article one more time. In this article I am not saying that you have to go for a 500:1 leverage. In contrast, I am saying it is wrong.

  14. Navid Farshi Navid Farshi says:

    i can not get your book, something is wrong.

  15. Interesting article….thanks mr chris

  16. Than you for this great article. Greedy is 600 think that I have to fight. Thanks a lot.

  17. Hi Chris,

    Can you please help to clarify regarding taking 2 positions (when having a too strong position) with regards to money management? Does it mean 2% x 2 positions = 4% or is it 2% divided by 2 position =1% each position? Assuming we are following the 2% risk money management strategy.

    Thanks!

    Joseph

    • LuckScout LuckScout says:

      Joseph,

      If you want to take 2 positions from the same currency pair, then it has to be two 1% positions, not two 2% positions.

      If you want to take 2 positions from 2 different pairs that are not correlated, then it can be two 2% positions. However, almost all pairs are correlated somehow. Therefore, you’d better to choose the one which is more liquid and has formed a stronger trade setup, and take a 2% position with it. You can forget the other one.


Download Our E-Book For Free!