Capital allocation.

This article will be of interest to traders with large sums of money, exceeding several thousand dollars. Spreading smaller amounts of capital makes little sense.

The primary tool of any forex trader is their deposit, or the amount of funds in their brokerage account. It is capital that enables profit, and the larger it is, the more attractive the future prospects.

However, it is important not only to plan for profit but also to try to protect yourself as much as possible from emerging risks. One of the most well-known methods of risk hedging is capital distribution in forex trading.

First, you need to determine the amount of capital you need for trading. A rough estimate is provided in the article " Minimum Forex Deposit ." However, you can also use your own calculation methods, as each trader uses their own Forex trading strategy and has their own profitability indicators.

For greater clarity, I'll use my own example of diversification (capital distribution).

After selling my one-bedroom apartment, I found myself with $15,000. By then, I already had some experience trading forex, so I decided to invest the funds there. However, I didn't dare trade the entire amount, so I used three options.

1. The first $5,000 was deposited into an open-ended bank account. The interest rate is low, but the funds can be withdrawn at any time without violating the terms of the agreement or losing interest. A debit card is linked to the account, to which I withdraw profits from forex trading.

2. The second portion of the money was deposited directly into a forex dealing center account for trading. With an average trading profitability of 30% per month, this amount is sufficient for now, especially since part of the profit is gradually added to the account funds.

3. The last $5,000 sat idle at home for a while while I looked at various investment options with minimal risk. But I only decided to do so after discovering an interesting program, also related to forex trading but more secure against losses. You can read more about it here: " Forex Investments ."

As a result of capital distribution, the average return was 15% per month, or 180% per annum. In my opinion, independent trading is the riskiest option, but it also brings the greatest profit.