Capital allocation.

This article will be of interest to traders who have large sums of more than several thousand dollars at their disposal.

Since the distribution of smaller capitals does not make much sense. The main tool of any Forex trader is his deposit, or the amount of funds in the brokerage company account.

It is capital that allows you to make a profit; the larger it is, the more attractive the future prospects. But, nevertheless, it is important not only to make plans to make a profit, but also to try to protect yourself as much as possible from emerging risks. One of the most well-known ways to insure risks is precisely the distribution of capital on Forex.

First of all, you should decide on the amount you need for trading; an approximate calculation of such amounts is given in the article “ Minimum deposit on Forex ”.

But you can also use your own approaches for calculations, because each of the traders uses their own Forex trading strategy and has their own profitability indicators. For greater clarity, I will give an example of diversification (capital distribution) using my own example.

After selling a one-room apartment, I had an amount of $15,000 at my disposal.

By that time, I already had some experience in Forex, so the decision was made to invest in this area. But I did not dare to trade the entire amount and used three distribution options. 1. The first five thousand were deposited on a permanent deposit in the bank, the interest is small, but the funds can be withdrawn at any time without violating the terms of the agreement and without losing interest.

At the same time, a debit plastic card is linked to the account, to which I withdraw profits from Forex trading. 2. The second part of the money was deposited directly into the account of the Forex dealing center for trading.

With an average trading profitability of 30% per month, this money is enough for me for now, especially since part of the profit is gradually added to the funds in the account. 3. The last five just lay dead weight at home for a long time; for some time I looked closely at various investment options with minimal risk. But I decided only after the appearance of one interesting program, also related to Forex trading, but more insured against losses. You can read more about it here “ Investing in Forex ”.

As a result of capital distribution, the average profitability was 15% per month or 180% per annum, and the riskiest option, in my opinion, is independent trading, but at the same time it is the one that brings the greatest profit.