Millionaire Tradersside of positive interest is extremely important to Livian because in
long-term trades, a negative carry position would actually reduce
profits or exacerbate losses in the account. When you are taking a
position where you have to pay interest, this payment needs to be
made every day, so it becomes an added trading cost. In contrast,
being on the side of carry or holding a position where you can
earn interest actually helps to improve performance. Every day an
interest payment is deposited in your account which increases ac-
count equity and helps to reduce losses. In other words, it lowers
your entry price. On a long-term trade, this can offer a very sig-
nificant advantage. If you are holding a position for one year, the
interest income can really add up. For example, a currency like
the New Zealand dollar/Japanese yen could pay$10 in interest
every single day, which represents one pip or point on a standard
contract. If you held the position for 100 days, that equates to 100
pips. Therefore if you were long New Zealand dollar/yen, your
entry price would be reduced by approximately 100 pips after 100
days, which is quite significant.
Share Trading with Your FamilyLivian’s final piece of advice is to share trading with your fam-
ily. Not only has it helped to bring his family closer through for
friendly competition, but he has also used it to teach his children
to be financially savvy at a very early age. The key, of course, is to
ingrain the discipline of risk control rather than a betting mentality.
Trading should be perceived as a way of making your money work
for you rather than letting it sit idle at the bank.