Forex trading – One study, comparing plans with various starting dates, points up the importance of this.

8 A hypothetical fund started in 1935 shows a profit immediately, while an account begun in 1930 shows an immediate loss and takes about 15 years to move into a profit position. Obviously, the investor can never be sure whether the market level at any particular time will turn out to be high or low, and there is no ready answer to the problem of the starting date. If the investor who wants to use a constant-ratio formula is to be expected to predict the future direction of the market, then the formula method is not as “automatic” as its supporters claim, and if he is capable of making such a prediction, he doesn’t need a formula. One solution is to combine the constant ratio plan with a dollar averaging approach. Assuming a 50-50 stock-bond ratio has been decided on, 10 percent of the account can be invested in stocks immediately, say, with the account being treated as a 10-90 constant-ratio plan for the first year, after which time the account is adjusted to a 20 percent position in stocks. After another year, the account is adjusted again to a 30-70 proportion, and so on, until it reaches the 50-50 point, in four years.

For Achieving Trading Consistency, Confidence, and Relaxed Profitability of Online Forex Trading, visit
Online Forex Trading Business

[tags]Forex Trading Strategy[/tags]