How to Double Your Money in Forex Trading?

Ever since money was used as a currency for trading, replacing the traditional barter system for goods and services, people have always sought ways to grow their money tree. It is undoubtedly not greed but their ambition to improve sources of income generation. If they are smart enough, they will make suitable investments to make the money work even while sleeping. It's not because they are lazy to earn it the hard way but because they want to double their revenue in almost double-quick time. Who wouldn't like to increase their returns with minimum capital investment by following the advice of forex brokers?

To get information regarding how and where to put your money, you can start reading financial websites and publications. If you want to find more information about forex trading and its various aspects and functions, you can find forex brokers at Brokersview.  

It is natural to be wary about where to put the money safely when it comes to doubling investments. Several tried and tested methods in the good old days, such as banking your money. But there are no guarantees that it will work every time because it depends on the prevailing economic circumstances. So, ultimately you have to control your destiny.

This article looks at how traders could double their money by making prudent decisions when trading currency pairs.

It would help if you had patience and the capacity to wait for many years to be assured of a return on investments either through dividends or rates. The advantage is you don't have to get the opinion of experts or follow high-tech charts. You need to open an account in the currency which offers a higher interest rate to see your money double in a few years interest accumulates. It is the traditional and most straightforward way of doubling your money.

Have you heard of the Rule of 72? It is a formula that will provide the number of years it will take you to get a return on your capital by simply dividing the value of 72 with the expected annual rate of return, giving you the number of years required to double your money. For example, if your money is in a savings account earning 3 percent a year, it will take 24 years to double your money (72 / 3 = 24). On the contrary, it will take you just nine years to double your money if you expect it will average 8 percent a year if your money is in a stock mutual fund. Notice that the difference is more significant in the short-term in forex trading, depending on the interest rate.

It sounds very safe, but the danger in long-term investments is that the higher the interest rate, the higher the inflation because of the depreciating value of the currency. However, you can safely choose a significant currency with a solid interest rate.

The notion that those who don't like taking risks cannot double their forex investment is not valid. It will only get better with time once you have learned how to manage your trading positions. The chances of getting higher returns will improve once you understand studying market trends.

The traditional investment method practiced by many in the stock market is buying a stock without margin with the preparation for the long haul. A similar strategy can be applied in the forex market with lower risk when you buy a currency pair in low quantities and hold it long-term.

However, you have to be careful about certain dangers if you want to stay in the industry for a long time and take forex seriously. Do not expect your trading account to double every month. It should not be your target in the first place because doubling your money can take a very long time.

Your main priority should be to manage your capital without putting it at risk. How can you expect to survive and continue trading if you run out of capital? Doubling your money happens if you don't get carried away with success and manage your risk with quality trades.

Before doubting your money, it is essential to understand that 70-90 percent of forex traders lose money. Trading realistically and safely, using 1 percent risk per trade will take you 11 or 12 months to double your trading account and qualify you as an excellent trader. Remember that most traders choose to leave their profits instead of constantly withdrawing them because it will take much longer to double the balance.

It is possible to increase your assets in forex trading with the proper strategy. But if you think forex is a scheme to get rich instantly, you are more likely to lose all of your money.