3) don't compound your trading lot size
Why would someone not compound it? Yeah, your risk does decrease if you don't compound, but so does your % profit. IMHO if you trust your EA enough, compounding shouldn't be an issue (unless it's some crazy martingale/no stoploss strategy)
Have you heard of a forex trader who compounded his trading account and became an multimillionaire in a few years? If you do, let me know
Well, first off, compounding is proven to be a very good decision for me so far. Since April 2010, I went from $1,000 to $2,750 using compounding, while without compounding, I would be at about $1700. That's $1750 profit with compounding against $700 profit without compounding (yes, live account).
I advise everyone who doesn't believe it is possible to make big profits from anything (not just the Forex market) to read some books by Donald Trump. Your thinking will probably change and your bank account will grow accordingly, whatever you're doing, whether it's Forex trading or anything else ;-)
In the end, one of my favorite mottos is 'If you think $1,000,000 is a lot of money, how the hell do you want to become a millionaire?' :-)
I have given up on trading a long time ago and now think of myself as an investor. It is less stressful and I am becoming more successful because it it. Regarding your $2,750 account, I am happy for you. Let's see if you are able to keep up the performance after one year. I have a friend who brought his account from $20K to $250K in one year and a student who brought his account from $2K to $30K after one month. They both ended their account in similar faith due to compounding.
Regarding Donald Trump, he does not write his own book. Ghost writers wrote all of his books and he does not even read his own books. I was so upset when I found out about it.
Plus he is an absolute a-hole. :) Trump that is. :)
I have made a lot of money quickly and I have lost a lot quickly, not just in forex, but other fields. I believe it really is more of a measure of attracting that. I agree about compounding, but I also believe without it, great fortune's would never be created. Winsor sounds like he is compounding through investors or others who take the risk as well, just not directly through his account.
No problem with that as that is how most people do it these days. Very few people have the cajone's to make a Million and be willing to lose it all as well. I see our culture getting more risk averse as we progress which is interesting and absolutely nothing wrong with that just a different way to slice the pie.
For most, compounding is a lost cause in my opinion unless you can truly accept what wealth you have created and know when to 'fold them' as someone pointed out. Still studying that! :)
Be Open, honest and ethical and all the $$$ you want will come. (hint hint)