The majority of traders fail.
If you’re trying to make it as a trader, your number-one goal is to defy the odds and avoid an account blow up.
Too many traders are enamored by the potential for profit and fail to protect their downside.
Anytime you are more focused on potential profit over potential risk, you are going down the wrong path.
If that’s you, it’s my duty to put you on the right track.
So today I’ll share with you the strategy I recommend to Hawkeye members to manage the growth of their account.
There are three simple guidelines to follow when using this strategy.
You can tweak them and play around with them as you evolve as a trader, but if you’re starting out, stick to them for now.
Here they are:
- You should have a maximum of 3 trades open at any given time. You don’t want to spread yourself too thin or have too much money in the market.
- If you want to open a new position, you must close the weakest existing trade, meaning the one you’re profiting from the least.
- Finally, you should never risk more than 10% equity on any one trade.
Pretty easy, right?
Now let’s take a look at a basic plan to follow in order to manage your capital while growing your account:
Say that you have $18,000 in your account. For some of you that can be a lot, for others just a drop in a bucket…
Nevertheless, you should divide your capital into two boxes.
Half of it into a cash box, which will act as a rainy day fund.
And the other half into your trade box, this is the money you’ll use to open positions.
Equally divide your trade box into the three allowable trades that you can take…
… in this example, $3,000 each, no more.
Then 50% of any profits that you make will go back into your trade box, and the remaining 50% of the profits will go into your cash box.
And then you start the process over again.
That way you’ll always have money to trade and a rainy day fund for emergencies.
It’s a simple yet powerful strategy for managing the growth of your trading account, steadily and safely.
Especially when it’s combined with Hawkeye.
>>> Click here to find how Hawkeye can accelerate the process of growing your account.