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LESSON: Backup / Replacement account

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[op_liveeditor_element data-style=””][text_block style=”style_1.png” align=”left” font_size=”16″ font_font=”Montserrat” font_color=”%237e7e7e”]CRUCIAL! This is the account that will hold another 5-10 trades worth of money. This account is a backup and replenishment account, but it does far more than that.

Because I have it set up this way, it allows for the trading overall to have a little more safety. As I said at the start of of this module, if something happens whilst I am not in the markets, I cannot lose everything.

Here is a rough example. Say Joe Bloggs market millionaire has a 3 million dollar account all with trades on and he goes to bed only to wake up the next day to see something has happened and his 3 million has been wiped.

Mr Bloggs could have instead had 2.6 million of that money tucked away safely in the bank and the other 400,000 on trades using 100: 1 leverage or even more leverage to place the trades. He would have been stopped out like he wanted to be – because we have more then enough leverage to place the trade WAY MORE THAN ENOUGH.

So What is This Account Then?

You need money for leverage and so this account is used as a top up if and when it is needed if I make two or more losses.

If I do make a loss, money will be taken from this account and placed into the Forex broking account ready to trade. This account has a debit card which allows me to make instant deposits to my broker account should I need it. This account can’t be a high interest savings account because you are penalised the bulk of your interest if you make withdrawals. The medium interest savings account gives you a decent amount in interest but allows withdrawals.[/text_block][/op_liveeditor_element]