Portfolio-Managing in the FreedomRocks Investment

Portfolio-Managing in Directional Forex Trading.

In a conventional directional trading account, portfolio-managing should be done following the rules we advised in our stock trading page.
1. Do not let your feelings influence your decisions.
2. Never enter a trade without stop loss.
3. Always trade the same value to keep your p/l balanced.
4. Focus on a small number of currency pairs to trade.
5. Limit your losses to 2%-3% the value of your account.
6. Never use more than 1:10-1:20 leverage.
7. Never invest in a trade more than 10% of your account.

Portfolio-Managing in the FreedomRocks Investment.

In our FreedomRocks Investment, the rules for managing your portfolio are quite different. To remind you, this is a long term investment.
The System does all the thinking for you. You are guided in all phases of your portfolio managing.In allocating our portfolio, we are asked to invest no more than 5% the value of our account.
We trade at a leverage of 1:400 since we trade with two hedged currency pairs.
Our profits come in small amounts from the grid trading and the carry trading.
Since the market is swinging, our portfolio might be in loss from time to time, again in small amounts before recovering.

The question is how much should our account be?
Needless to remind you that investing in the forex is hazardous together with the fact that the rewards can be substantial.
That is why it is recommended that you never invest in the forex money you cannot afford to loose.

Let's assume you can afford the investment. How much should it be?
If you are just starting your involvement with the forex, I would suggest no more than 10,000$, preferably 5,000$.
You need to feel the mood of the market. You need to get acquainted to sustain losses as well as profits.
A small portfolio will ease the burden. The profits will be small, but so will be the losses.
Trade for a year, maybe even two. When you are comfortable with the program, when temporary losses in your portfolio are not affecting you any more. Then, you might weight the possibility of deepening your involvement.

In any case, for the average new forex investor, it is highly advised to trade with O.P.M. or other people's money.
What does that mean?
Well after opening your portfolio, you wait for your first 15%-20% profits. Take those profits from your portfolio and reallocate the remaining investment.
Do this again and again until you retrieve all your investment and remain in your portfolio only with money earned through the program.
This will give you the security you need to stop being influenced by your feelings in your decisions making. Your personal money is not involved anymore.

When comfortable with the program, after or without the use of the O.P.M. strategy, you should manage your portfolio according to your profits expectations and the level of risk you decide to work with.
You should now be capable of calculating the investment you need for the returns you expect. How much should you retrieve monthly or yearly from your profits and so on.

To help you with the mathematics, I have programed an excel template to help in your portfolio-managing.
It calculates for you how much you can withdraw from your portfolio without influencing the level of your returns from your investment.
Insert in it your investment and the interest rate of your returns and it will give you the amount you can withdraw. Change the inputs to match your desired output.

Click here to download the file to your browser

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