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Account Diversification Technique (Money Management)

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Hello friends forumers and posters all, Here I just want to share about the account verification techniques that I use, in this thread I am not discussing about trading techniques, but Money Management. But it is also not a matter of money management that discusses, what is the percentage of risk that is safe, what percentage of the target, etc. because I am sure all also have it. But here I will further discuss the techniques for managing our trading accounts. Hopefully it will be useful especially for those who pioneered "Trading for Living"


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What is Diversification?
I take from Wikipedia, that diversification is a product diversification (business line) or the location of a company by a company to maximize profits so that the company's cash flow can be more stable. one product or country / region, in another product or country / region gets excess income, so the deficiencies that occur can be covered.

From the understanding of diversification, then I conclude that we should not only rely on one trading account in trading, or we often hear the legendary advice "Don't Put Eggs in One Basket". In my opinion, there are many factors that actually "require" us to diversify accounts in trading, the purpose of which is for security and continuity of our trading, for example, disable accounts, brokers, scam, WD is not liquid, it's been waiting for a long time, accounts are hacked, we suffered a great loss, etc. naudzubillah don't let it happen, but all of that might happen. Therefore account diversification in my opinion is very important

And I think trading must have a clear vision and mission from the start. So it must be clear, we want long term or short term transactions, like scalping or day trade. My own experience from here is still confused, as a result I want it to be long term, when I run the profit, I see the sideways, I want to close it, and instead I want to enter the scalping right when the entry and the price of movement is quite good, I say "hold ah long term" etc. it will make trading results are not optimal and tend to lose at the end of the accumulation, because from the beginning it is not clear. So it's natural that trading is still often MC because 1 trading account contains mix everything, it's scalping, long term, high risk, low risk, etc. And if I personally the solution of that is by account diversification


The picture that I pinned in this thread is the diversification of the account that I use in my trading, it looks simple and easy, but the application is not as easy as it looks, especially if you still think trading is a quick, rich way, an instant solution can get a lot of money in a short amount of time etc. if it's still think like that forget it, this way won't work for you. Okay I discuss one by one of the diversification component

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MOTHER ACCOUNT. This is our main account, it can be called the primary account, the main account, first class account, etc. This is clearly our engine. Like we are an employee yes this is our basic salary. Here we must be really serious trading, be careful, like a word here we must really look for opportunities that make sense, which has a RR of 1: 3 or more. Here do not let the MC, boro-boro MC, as much as possible not to drawdown more than 5% or a loss of more than 5% per transaction. The thing is this account is what we will use to create other accounts, back again like we are employees if we get fired then it's over, we can't save, can't eat, can't make this business etc. have stopped here, can't stop here, can't can develop. On this account I trade using a minimum TF of H1 to D1 with a maximum risk of 2% per transaction


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INVESTMENT ACCOUNT. Now after finishing with the Mother Account, we can make another account whose capital we take from the profit of the Mother account earlier, and for us to make several accounts with different visions and missions. Now I discuss Investment Account first. This is an investment account, for me this account is used to buy investment needs, for example we want to build a house, buy cement, bricks, sand, etc. can we use profits from this account, or buy land, make deposits and much more , basically related to investment. Supposing we are on this account looking for 10 pips per day or improvised opportunities do not have to sluggish or force the important thing to go on even though a little, because later when it has become finished goods (cement, sand, brick, etc.) we will be amazed to see the results.

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SCALPING ACCOUNT. I prefer to call it an acceleration account, because in this account I trade with a greater risk than other accounts, so you can say it's high risk, naughty little or not, as long as it's true and the profit from this account is free to use for anything, and of course if highrisk, the profit is also high right, so it can be to buy a cellphone for example, a laptop rejuvenation or if I prefer to add capital from another account, so profit from this account to inject capital into other accounts in order to reach a certain nominal, so can faster, or we see which account needs to be injected etc. Now this account is where I channel my "lust", trading "reckless" etc. here the place, and only here. So if you think that high risk trading is OK, this is the way to do it



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#1 - November 26, 2019, 07:15:55 AM
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Thank you for clarifying, I think that for us, this must be really about it, not from the equation we made from the others. We can get it by using the SOP that we have made and made.

Market movements, there are two renewals that seem easy in our implementation are still often fooled, there are many factors that change our mindset while doing things that should be sufficiently as possible as we apply to obey and persevere related to what we can improve in early business and get results.
#2 - November 28, 2019, 12:50:19 AM

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It seems that I have heard of this diversification strategy but your review is indeed quite interesting to be applied by investors or traders who want to manage their trading accounts properly and safely. It seems that this diversification can be applied at brokers that allow opening multiple accounts like Instaforex for example.
#3 - December 01, 2019, 01:57:06 AM

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First, if you read in detail this thread, I have explained everything. For brokers in this case one account one broker, so if we have 4 accounts, we use 4 different brokers.

The technique used. I use the same technique in several accounts, only with a different Time Frame, except for scalping accounts, I use a different technique. 

For capital, this goes back to our needs and targets, everyone will definitely have a different nominal. It's easy like this, in a month we can trade consistently with what percentage of profit? 5% -10% for example, well, so if for example we want a monthly amount of around 10 million IDR income, then that means our mother account is approximately $ 10,000
#4 - December 03, 2019, 11:09:00 PM

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This strategy is often used and quite well-known, for those who have not been able to profit consistently or are afraid of MC, diversification strategies are very suitable for them.
#5 - January 14, 2020, 10:17:30 AM

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account diversification techniques are very good indeed and when applied properly it will greatly help us in minimizing the risks that may occur in every business that we run, in forex it is suitable for diversification.
#6 - January 27, 2020, 11:51:17 AM

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Account diversification is indeed one of the management that is rarely done by traders, whereas diversification is highly recommended like the term do not lay eggs in one basket, it is intended that our money does not just disappear if the worst happens.
#7 - January 27, 2020, 03:54:04 PM

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Diversification techniques are known to be quite good and effective, I have also started with this diversification strategy to prevent massive losses because we will not know what risks lie before us.
#8 - February 02, 2020, 04:36:45 PM

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Account diversification will make it easier for us to manage each account with a number of different strategies or strategies so that we also know which strategies we have and which we need to develop.
#9 - February 03, 2020, 01:31:51 AM

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Techniques that I have learned in an ebook also teach about diversification strategies, some even share in some social media about this strategy, maybe it is quite helpful but to implement it requires a plan.
#10 - February 03, 2020, 07:08:12 AM

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Account diversification strategies have been quite familiar for a long time and indeed the strategy is very suitable for investors who want the security of funds, at least they can minimize large losses or even lose their entire capital.
#11 - February 03, 2020, 10:06:30 PM

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this strategy is actually quite old and not a new strategy it's just that not many traders are implementing this diversification strategy because this strategy really requires a large amount of capital and we also have to break.
#12 - February 09, 2020, 11:03:13 AM

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this technique is not only suitable for use in forex but in the investment world is very popular in terms of account diversification with the aim of minimizing risk, because putting eggs in one basket is very risky.
#13 - February 09, 2020, 03:46:08 PM

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this technique is not only suitable for use in forex but in the investment world is very popular in terms of account diversification with the aim of minimizing risk, because putting eggs in one basket is very risky.
I totally agree with what you said, one of the risks is that the margins are drained too fast,
#14 - February 09, 2020, 04:16:23 PM

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trading account diversification is indeed worth a try and in my opinion it is quite effective because in applying the strategy we will be able to do several trading styles or strategies that will enrich our skills.
#15 - February 10, 2020, 06:35:14 AM

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