“How to double your money?” – A sound question, an obsessive desire and a difficult task for many. But is it greed? Of course not. “Making your money work for you” or “Making while you sleep” as investors say is a smart way to make money. And if it were possible, who would not do it?
Doubling your money seems to be more possible in Forex trading than in any other way. Also thanks to modern forex brokers for providing 1:500 leverage which requires minimum capital requirements.
Here are some safe ways to double your money. However, we want to warn you that these are just ways that have worked in the past. Although there is a possibility of history repeating itself, there are no guarantees. So, your fate is in your hands.
The easiest way to double your money
It’s a long way. You will have to wait years to see your money doubling this way, but most importantly, you don’t have to follow charts or learn complicated methods.
Open a savings account in a currency with a higher interest rate. As the interest rate rises steadily and the power of compound interest kicks in, you see your money doubling in a few years.
The Rule of 72 will help you determine the number of years it takes to double your money.
Divide 72 by your expected annual return. The result is the number of years it takes for your money to double.
The difficulty here is that currencies with a higher interest rate usually have a high rate of inflation. Thus, it will depreciate the value of the currency as well.
Therefore, if you choose base currency with a solid interest rate, you are sure to succeed.
However, if you are a US citizen, the savings account method would not be a smart choice. Because the US dollar cuts interest rate gains by appreciating against your currency over time.
On the contrary, if you are not a US citizen, then opening a savings account in the States would be a smart choice. You can have a double bonanza. US interest rates are close to zero and are projected to move north in the coming years. In addition, the value of the US dollar is resilient in difficult times and usually rises over time.
Though The process of opening a savings account in the US has become tedious and belatedlyit is definitely worth the effort.
Classic way to double your money
This is an old method of investing that many in the stock market have mastered.
Buying shares without margin and leverage and holding them for a long time.
The same strategy can be applied in the forex market with less risk.
Buy a currency pair in small amounts and hold it for a long time. Or you can trade currencies positionally with a bit of a long-term perspective.
If a 1:2 risk/reward ratio is used, you are bound to double your money in 35 trades, provided you have no drawdowns or losses.
Double your money with a risk to reward ratio of 1:2
|opening balance||1000||Trade 18||1428|
|Deal 1||1020||Trade 19||1457|
|Trade 2||1040||Trade 20||1486|
|Trade 3||1061||Trade 21||1516|
|Trade 4||1082||Trade 22||1546|
|Trade 5||1104||Trade 23||1577|
|Trade 6||1126||Trade 24||1608|
|Trade 7||1149||Trade 25||1641|
|Trade 8||1172||Trade 26||1673|
|Trade 9||1195||Trade 27||1707|
|Trade 10||1219||Trade 28||1741|
|Trade 11||1243||Trade 29||1776|
|Trade 12||1268||Trade 30||1811|
|Trade 13||1294||Trade 31||1848|
|Trade 14||1319||Trade 32||1885|
|Trade 15||1346||Trade 33||1922|
|Trade 16||1373||Trade 34||1961|
|Trade 17||1400||Trade 35||2000|
The long-term and positional trend of currencies does not often change its direction.
So, once you determine the course of the market and only buy or sell on pullbacks, the process becomes simple.
The ratio of 1:2 is indicative and may vary depending on your risk appetite and knowledge of the forex market.
Also, the success rate of the methodology depends on the strategy as it depends on the accuracy.
The speculative path is nothing but short-term trading or scalping.
What sounds like noise to a long-term trader seems important to a speculator.
This is the riskiest lot option, as it depends on short-term price fluctuations that are difficult to interpret even for an experienced trader.
The method is similar to the classical one. You must choose the risk/reward ratio that suits your appetite and style.
The only difference is the frequency of trading activity. You make a large number of trades in quick succession and close a cycle of 35 trades (assuming you choose a 1:2 ratio) in just a week or a month.
But can you hit the target on all 35 trades?
The best way to double your money
Getting it right for 35 consecutive trades is certainly a Himalayan challenge, even for an expert. So, instead of replacing one problem with another, why don’t we tackle it directly. Because there is an easy way.
What if you could safely double your money in just a few trades?
Take a look at the diagram below. There are 4 trades in total. 2 buys and 2 sells. Profit 1600+ points. If your capital is $1,000 and you traded only 0.1 lots, you would double your capital in 3 months.
There is also a short-term way. You can use the same indicator on shorter timeframes to speculate on daily price fluctuations. The indicator makes it easy too.
Look at the diagram below. Profit on signal 3 was 370+ pips. If you traded 0.5 lots, you would almost triple your capital.
If you are a beginner who has just started trading from home, then this might be the best way to go. Because the indicator does the hard work of chart analysis for you.
The indicator used in the charts above is not a custom indicator. This is Pipbreaker, which has built-in strategies for all three modes – scalping, short-term and long-term trading. In addition, the automatic trading system in MT4/MT5 allows you to backtest the indicator. So you can know what you’re getting into.
Of course, you can double your money in forex. But this becomes possible only with a good strategy. The strategy we have highlighted here is to use the Pipbreaker indicator. But there are other directions as well. If you are good at technical analysis, you can try your own strategy. Otherwise lend a helping hand and there will be no harm.