If your a forex trader your familiar with not placing all your money on any one trade or in any one currency pair. To do so is a certain recipe for disaster. So good money management dictates that you would not risk more than 2% on any trade and you would want to spread your money over a group of different pairs. To take it further you would want to avoid trading any pairs that tend to move in harmony with another pair.
Well I take diversification even further…
1. I trade more than 1 manual forex system. In other words I use several technical systems to diversify risk and at the same time it gives me the chance to uncover more opportunities. For example… I use a trend following system, a breakout system and finally a trading range system. And if I’me feeling like I want to try and make some really fast pips then I’ll use a economic news strategy.
2. I place some of my money in automated forex systems so that I make money 24/7. This helps to keep the money coming in when I’m not free to trade,
3. To diversify more, my automated systems are diversified over 3 different risk models. On my conservative account I earn 5% a month, my moderate system makes 15% per month and my aggressive one does 30% a month.
4. I have part of my portfolio invested with 3 different fund managers who average between 1.5% to 4% a month.
The net result of all the above is that regardless if one system is in a slump or even worse blows up, my portfolio is still safe and growing overall.
I even take diversification further as I invest in stocks, commodities and am even an investor in a very popular cafe in Los Angeles called Urth Cafe. And… I have even more things that I’m working on…
I’m not saying all this to sound like some kind of hot shot, but a long time ago I learned a very painful and costly lesson by putting all my eggs in one financial basket so… I’m just trying to open your mind beyond just forex trading.
Finally I want to share with you something I’ve been doing for 12 weeks now in which I’ve been making almost 2% everyday like clockwork. I first told my readers on my other blog at www.askjeffwilde.com about this and I said I was investigating a new way to make money and that I was highly skeptical but… A friend of mind was making a lot of money with it so I felt comfortable enough to take a shot at it and risk $3000. Well flash forward and now that I’ve been doing this 2% a day strategy I’ve recouped my original $3000 investment and making between $260 and $335 a day clear profit. At this rate of growth I should be pulling in $600 a day by September 2102. Anyway…
The whole thing is out of my normal realm of money making but as I said it’s working for me and it’s working the same for everyone I’ve referred into it. If you want to read more or actually sign up and get involved you can do so here. Please note it doesn’t cost a penny to join. Click here for more info:
Hey if this isn’t your cup of tea then no worries. I just wanted to spread the word as everywhere I look people are struggling to make ends meet.
And above all else, don’t forget to… Diversify - Diversify - Diversify!