When you trade with Forex signals, you take out the grunt work from Forex trading. You don’t have to do any market analysis. The market analysis is done by the pro traders providing the signals. In fact, using Forex signals does not involve much of learning how to trade Forex. You only need to know how to correctly enter the signals on MT4. There are many good Forex signals providers now available in the market who let you copy their exact trades using a trade copier software.
In this article, we are going to discuss how you can turn your small investment of $1K into $1 million auto trading with a Forex signals provider. Auto trading means using the trade copier software that will automatically copy the signals onto your MT4 account without you even monitoring them. Of course, you need to correctly install the trade copier software.
Now, one of the most important things in trading is money management. Two traders might make the same number of pips but end up with different capital gain all due to using different money management systems. The importance of a good money management system cannot be underestimated. So, what we will be doing is finding a signals provider that makes a consistent 1000 pips or more per month. Suppose, you found a signal service that makes at least 1000 pips per month on a consistent basis and after doing your testing on the demo account, you are satisfied with the service.
We will be using Fixed Fractional Money Management System. What this means is that when you start, you will only trade with 1 mini lot and as your double your account, you will also double the number of mini lots that you trade. So, you will start with 1 mini lot. 1000 pips when traded with a 1 mini lot translate into $1*1000=$1000. So, making 1000 pips will double your account to $2000. Now, you will trade with 2 mini lots. 1000 pips when traded with 2 mini lots will translate into $2*1000=$2000. So, once again you have doubled your account balance to $4000. This is how it is going to work. At every step when you double your account, you double the number of mini lots and if you are making 1000 pips, this will always translate into doubling your account balance. The progress of your account balance will look like this;
$1000+$1*1000 = $2,000
$2000+$2*1000 = $4,000
$4000+$4*1000 = $8,000
$8000+$8*1000 = $16,000
$16,000+$16*1000 = $32,000
$32,000+$32*1000 = $64,000
$64000+$64*1000 = $128,000
So, if you make 1000 pips consistently every month, you will end up with a million dollar in your account at the end of eight month. And if you make more than 1000 pips per month, you will reach your goal much sooner.