A Registered Financial Planner (RFP) is someone who helps people achieve their financial goals by creating a step-by-step action plan for them. A Registered Financial Planner is someone who prioritizes safety and risk management because they learn from their education that life is full of uncertainty. They analyze which investment vehicle is fit for the client given their time horizon, risk tolerance, and other financial goals. With all these in mind, you would rarely see financial planners advise very risky investments such as forex trading because they know that a few wrong trades can cause chaos to your financial plan. RFPs would usually go for the more conventional investment vehicles such as bonds, mutual funds, money market funds, and equities if you have a longer time horizon.
Don’t get me wrong. As a financial planner myself, I do not recommend my clients to invest in forex trading for investments that have a clear goal with it. If an investment is for the college education plan of your children, and you have more than 10 years left before the start of payment, then go for mutual funds with a heavy load on equities. If it is for a house and lot downpayment with a timeline of 3 years before the start of payment, then you can go for either money market funds or mutual funds with exposure to short to intermediate bond funds. No Financial Planner in his right mind would (or should) recommend forex as a piece of investment vehicle to achieve a financial goal.
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Given the above understanding, when an RFP trades forex (if he would ever do), he would have a very safe approach to doing things. An RFP understands risk and computes for it. He understands gains and appreciates it. He will not chase 200% gains or 500% gains in a year because he understands that getting a 20% return on investment in a year is already very much acceptable. He understands that mutual funds, UITFs, ETFs, Bonds, REITs, and other traditional investment vehicles may yield of <8% per annum. He understands that anything more than a 12% return per annum is simply too risky to be included in the financial plan. With this, he uses a safe strategy when doing forex trading.
He understands that a gain of 3-4% per month is more than acceptable.
He understands that a slow and steady way of doing things will be profitable in the long run.
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He understands that drawdown is inevitable in forex trading and tries to minimize them.
He has a 90%+ win rate because he prioritizes gains (no matter how small) and capital preservation. He understands that these small gains will eventually add up.
He trades small lots and is satisfied with small gains because that is his way of mitigating risk and preserving capital.
He wants to maximize his gains by having 2 accounts doing the same trade thereby multiplying his earnings. He also trades small because he understands that forex trading can never be a part of a financial plan. That capital invested here are not meant to achieve a financial goal, and that money invested in forex can be considered good as gone, and just a bonus if profitable.
Check out the actual performance of the account here and here. This account uses RSI divergence on major and minor currency pairs, on a 4H timeframe.
To copy trade this account:
1) Download the FBS Copy Trading app on Google Play or App Store
2) Click this link (https://fbs.com/copytrade/62625) OR
3) Search the name “Slow and Steady” (with lighthouse profile picture).
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