Make money trading

Let’s get straight to the point and see how compounding can help you make money.

Huge forex bonuses

How to Make Money Trading - 2 Keys to Success, make money trading.

Because of the way compounding works, it’s the later months or years that really build your trading account in a big way. So, staying focused on the long-term is critical. If you reinvest all your profits and you make regular contributions to your portfolio, compounding will produce even more amazing results.

How to make money trading - 2 keys to success

How do you make money trading? Which assets are the best to start with? By the end of this guide, you'll have everything you need to know to get started trading. Our team at trading strategy guides understands that each asset class or instrument you’re trading (FX currencies, stocks, bitcoin, cryptocurrencies, commodities) comes with its own opportunities to make money.

There are many ways to skin a cat and there are different ways to learn how to make money trading. There are short-term trading strategies like the best short term trading strategy – profitable short term trading tips which will allow you to make money fast and there are long-term trading strategies like the MACD trend following strategy- simple to learn trading strategy which will allow you to make money in the long run. No matter which approach you adopt you’ll have to make sure you choose the trading strategy that fits your own personality.

How to make money trading will be the theme of this article.

The starting point to learn how to make money in general not just from trading is to have a strategy. It might be obvious, but there are many traders out there who are merely guessing when trading and not have a strict trading strategy.

Develop your edge and trading strategy

Our team at trading strategy guides has put a lot of time and effort into developing trading strategies with proven trading edges and trading strategies that work in different trading environments. The difference between trading with a strategy and trading without a plan is the difference between making money and losing money.

You can find plenty of evidence on our blog about what a good trading strategy should really look like, but more importantly, what you can really learn is how to make money trading.

Our trading strategies are suitable for trading multiple asset classes but are more focused on the forex currency market. However, from time to time we might focus on strategies that are particular to one instrument like our article on how to trade stock options for beginners – best options trading strategy.

How to make money trading

In order to make money on the forex market or any other market, all you really have to do is to buy low and sell high. Pretty simple wouldn’t you say?

Let’s take a look at an example: how much money can you theoretically make by trading forex currencies?

Let’s assume that you have a $10,000 account balance and the current EUR/USD exchange rate is 1.1500. In other words, for 1 euro you get 1.25 US dollars. You forecast that during the current trading session the EUR/USD exchange rate will rise and based on this forecast, you buy around €8700 for your $10,000.

Your forecast is correct! The EUR/USD exchange rate rises from 1.1500 to 1.1600. Being in the profit you decide to close the trade and exchange your €8700 back to $10,092. Your profit from this trade is $92.

Would it be possible to increase your profits? To learn how to make money or to maximize your trading potential, you can use leverage which can be up to 500 times more than your initial capital, which also increases your profit potential 500 times.

However, we have to keep in mind that leverage is a double-edged sword and while it increases the money you can make, it also means you can lose more money. The partial answer to the question: how to make money trading is through the use of leverage.

How to make money fast

We all love to make money, but unfortunately, life is too short and this begs the question: how do I make money fast? There is no correct answer as there are many approaches that can help you make money fast.

Being in and out of the market is the most common trading approach that can give you instant gratification and fast money. You can use our powerful scalping strategy simple scalping strategy: the best scalping system which can help you make money fast.

You can fine-tune the price at which you buy and sell forex currency pairs by using the most popular trading approaches like support and resistance trading.

You have to be disciplined and manage your risk. Money management is a key part to making money trading. Understanding the risk associated with trading and the reward that the market might provide to you can help you make money faster.

In conclusion, if you’re good at short-term trading and you have the specific trading profile, you have to be glued to the trading screen and constantly monitoring the market in order to make money fast.

Trading for a living: can it be done?

Our team at trading strategy guides thinks that you can certainly make a living by trading as we have seen many traders succeed. However, trading for a living is not easy. You need to be absorbed by the market and spend a lot of time and effort in understanding the particular instrument they’re trading.

On the flip side, if you don’t put any efforts whatsoever, then the probability to make money trading is diminishing.

The secret to how to make money and build your wealth is through COMPOUNDING!

Let’s get straight to the point and see how compounding can help you make money.

How to make money through compounding

The most important ally you have as a trader is compounding. You may have heard that albert einstein describes compound interest as “the most powerful force in the universe.” the force of compounding can produce pretty spectacular returns for traders.

But what exactly does compounding means and how it can help you make profits trading?

Basically, compounding means reinvesting your previous profits and using those profits to generate more profits. Compounding is a long-term trading strategy that can help you make more profits as time goes by.

We’re going to start with a $10,000 trading account, and on average our trading strategy produces a 10% return per month. This means that in 24 months or two years by reinvesting the previous profits through the power of compounding you end up with an amazing profit of $98,497.33.

Show me any other investment strategy that can do that.

If you want to have a detailed overview of the power of compounding and examine how to make money through reinvesting the previous profits, please take a look at the below figures which breaks down a list of the potential profits you can make each month:

We can easily see how each month our account steadily grows.

You don’t need to be an einstein to appreciate compounding.

Conclusion - how to make money trading

Learning how to make money trading is no easy endeavor. That said if you equip yourself with the right trading strategy and the right mindset great things can be achieved. If you want to learn how to make money fast you need to adopt a short-term trading strategy that will give you many more opportunities to make money. You may also be interested in the best forex trading strategies article.

The two keys to making money trading are leverage and compounding which will help you making money in forex trading.

In the end, the more trading skills you acquire, and the more discipline you exercise, the more money you’ll make. Remember, trading is not a "one size fits all" scenario, but hard work and dedication will ultimately pay off. If you want to learn about how to make money and discover the secrets behind the scenes of trading, don’t miss our previous article: how to profit from trading- make money trading today!

Please leave a comment below if you have any questions on how to make money trading!

Also, please give this strategy 5 stars if you enjoyed it!

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How to make money day trading in 2020

Do you know how to make money day trading? Many aspiring investors find day-trading as the ultimate dream job. It only takes a few hours of your day, and the plus side of it all is that you can work anywhere you want as long as you have an internet connection.

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How to make money day trading

Here's some simple steps on how to make money day trading:

Study: take a day trading course to help you learn the nuts and bolts.

Practice: practice making a few hundred trades in a virtual account.

Plan your trade: make sure to plan your entries and exits before each trade.

Trade your plan: make sure to stick with what you feel most confident in.

Limit risk: cut your losses quickly if the trade goes against you.

Be realistic about your profits: take your profits and don't get greedy.

The perks of this job are far and wide and retiring before reaching thirty is among them. Great things take time, and this is not different in day trading. You need to take the time to learn how to make money day trading.

A lot of people usually find it hard to master the practice as well as the discipline to undertake this craft. You cannot call yourself an excellent day trader by just hitting some home runs.

You are far from an exceptional day-trader if you keep on chasing all hot stocks. But don't beat yourself up; with the appropriate experience, mentors and equipment, you can make money day trading.

Make sure to take our day trading course if you want to learn how to make money day trading.

1. What is A day trader?

The ultimate question remains," what exactly is day trading?" well, this is the buying or selling of stocks on the same day while you hold no positions at night.

Some experts would go ahead and incorporate other techniques like swing-trading, but it all goes down to opening and closing most trades in the same session.

Most day traders always try to predict a shift in prices before they happen. A trader would require to have strategies like technical analysis that would help him or her know when there would be a shift in prices.

Check out our live trade room to see technical analysis and how to make money day trading in action. We offer many different trading styles in our room so there's something for everyone!

2. Practical steps to follow to have an edge day trading

If you wish to know how to make money day trading, you must follow five practical steps that will give you an edge to become a day trader successfully. Why? A few reasons.

First is taking time. Just like any other thriving career, you will need substantial knowledge of the topic so that you can practice any craft. This is the same in this industry.

You must take time to learn everything concerning the craft so that you are in the best position to successfully execute the craft.

During this period, you have to grasp knowledge in various strategies like momentum-trading, bull-flag trading, reversal-trading, pull-back trading, and breakout-trading, among others.

You don't need actually to master them all, but you need to know some basic information regarding each strategy so that you can prevent over-trading.

3. Step three

Thirdly, it's prudent to practice the art on paper before you go ahead and do it on the real. Hence, the next step that will put you in the best position to make money is paper-trading before live trading.

The practice will help you to tune in your emotions. During this period, you will be able to create a trading plan and learn to follow it up to the latter while using your favorite strategies.

It's during this time that you will identify which strategies work for you. There are simulators that allow a day trader to test out different strategies in various market conditions without losing real capital.

Check out our penny stocks list if you want to practice day trading from our day trade watch list.

4. Step four

Fourthly, you must set achievable expectations. Don't think about making money, but think about losing the funds you already have. When you finally scale and start to live trade, it is always advisable to always start small as you scale up.

For example, as a newcomer, you can start trading with 200 dollars as you work your way up to 800-1000 dollars. You have to keep in mind that small wins are better than home runs.

Not to mention the fact that they reinforce the need to follow and stay on your trading plan. Moreover, it allows you to consistently instill discipline, which is vital in the trading world.

This is extremely important when learning how to make money day trading. Click here for our trading service.

5. Step five

Fifth, and perhaps most importantly, is managing your risks properly. Honestly, this ability will make or break you as a trader. The idea here is to have the ability to ensure you suffer small losses only.

When creating a trading plan, you will set up a stop. Why? To ensure you get out of a trade before you lose your shirt. You should always get out of the trade if your trading-plan is not going as expected.

In fact, before entering a trade, it's more important to know when you will exit as opposed to going in and hoping for profits.

A risk and reward calculator can help you to understand the art of risk management successfully. You'll be able to understand what the risk-reward ration must be in each trade you partake.

You have to keep in mind that losses are bound to happen, and it is fine if the loss is according to your trading plan.

6. Final step

Finally, taking profits is the last step that you have to learn before you become a successful day-trader. Knowing when to take losses is not the only thing you will have to learn, you will also have to learn when to take profits.

When new dollars are flowing in, it may be hard to know when to close up your trade. A trading plan will come in handy at this juncture. In your plan, you have to indicate steps to follow when it comes to taking profits as well as setting a stop when making losses.

You have to follow up on your trading plan so that you can reap a lot of earnings in the long run. Please, do not be greedy, take up some profits and get out of the trade as everything is always unpredictable when it comes to this craft.

How do day traders make money for beginners

Study: study 1-2 hours per day for several months until you're comfortable

Open a practice account: with a company like thinkorswim or IB

Take the time to practice different strategies

When going live, start small

Avoid pump and dump penny stocks until you're comfortable

Plan your trade and trade your plan

Cut losses quickly

Be realistic about profits

Never let greed control a trade. You never go broker taking your profits

Know when to sell

Closing comments

Do you know how to make money day trading? Like anything in life, trading included, you have to take the time before you start enjoying the benefits of this craft.

Nothing comes easy, and with enough practice and discipline, you can successfully learn the art of being a day trader.

The good thing about this craft is that anyone can do it. If you have the zeal and are patient to educate yourself, then you will be on your way to becoming a successful day trader and make money while at it with the right stock training.

10 day trading strategies for beginners

Day trading is the act of buying and selling a financial instrument within the same day or even multiple times over the course of a day. Taking advantage of small price moves can be a lucrative game—if it is played correctly. But it can be a dangerous game for newbies or anyone who doesn't adhere to a well-thought-out strategy.

Not all brokers are suited for the high volume of trades made by day traders, however. But some brokers are designed with the day trader in mind. You can check out our list of the best brokers for day trading to see which brokers best accommodate those who would like to day trade.

The online brokers on our list, fidelity and interactive brokers, have professional or advanced versions of their platforms that feature real-time streaming quotes, advanced charting tools, and the ability to enter and modify complex orders in quick succession.

Below, we'll take a look at some general day trading principles and then move on to deciding when to buy and sell, common day trading strategies, basic charts and patterns, and how to limit losses.

Key takeaways

Day trading is only profitable when traders take it seriously and do their research.

Day trading is a job, not a hobby; treat it as such—be diligent, focused, objective, and keep emotions out of it.

Here we provide some basic tips and know-how to become a successful day trader.

Day trading strategies

1. Knowledge is power

In addition to knowledge of basic trading procedures, day traders need to keep up on the latest stock market news and events that affect stocks—the fed's interest rate plans, the economic outlook, etc.

So do your homework. Make a wish list of stocks you'd like to trade and keep yourself informed about the selected companies and general markets. Scan business news and visit reliable financial websites.

2. Set aside funds

Assess how much capital you're willing to risk on each trade. Many successful day traders risk less than 1% to 2% of their account per trade. If you have a $40,000 trading account and are willing to risk 0.5% of your capital on each trade, your maximum loss per trade is $200 (0.5% * $40,000).

Set aside a surplus amount of funds you can trade with and you're prepared to lose. Remember, it may or may not happen.

3. Set aside time, too

Day trading requires your time. That's why it's called day trading. You'll need to give up most of your day, in fact. Don’t consider it if you have limited time to spare.

The process requires a trader to track the markets and spot opportunities, which can arise at any time during trading hours. Moving quickly is key.

4. Start small

As a beginner, focus on a maximum of one to two stocks during a session. Tracking and finding opportunities is easier with just a few stocks. Recently, it has become increasingly common to be able to trade fractional shares, so you can specify specific, smaller dollar amounts you wish to invest.

That means if apple shares are trading at $250 and you only want to buy $50 worth, many brokers will now let you purchase one-fifth of a share.

5. Avoid penny stocks

You're probably looking for deals and low prices but stay away from penny stocks. These stocks are often illiquid, and chances of hitting a jackpot are often bleak.

Many stocks trading under $5 a share become de-listed from major stock exchanges and are only tradable over-the-counter (OTC). Unless you see a real opportunity and have done your research, stay clear of these.

6. Time those trades

Many orders placed by investors and traders begin to execute as soon as the markets open in the morning, which contributes to price volatility. A seasoned player may be able to recognize patterns and pick appropriately to make profits. But for newbies, it may be better just to read the market without making any moves for the first 15 to 20 minutes.

The middle hours are usually less volatile, and then movement begins to pick up again toward the closing bell. Though the rush hours offer opportunities, it’s safer for beginners to avoid them at first.

7. Cut losses with limit orders

Decide what type of orders you'll use to enter and exit trades. Will you use market orders or limit orders? When you place a market order, it's executed at the best price available at the time—thus, no price guarantee.

A limit order, meanwhile, guarantees the price but not the execution. Limit orders help you trade with more precision, wherein you set your price (not unrealistic but executable) for buying as well as selling. More sophisticated and experienced day traders may employ the use of options strategies to hedge their positions as well.

8. Be realistic about profits

A strategy doesn't need to win all the time to be profitable. Many traders only win 50% to 60% of their trades. However, they make more on their winners than they lose on their losers. Make sure the risk on each trade is limited to a specific percentage of the account, and that entry and exit methods are clearly defined and written down.

9. Stay cool

There are times when the stock markets test your nerves. As a day trader, you need to learn to keep greed, hope, and fear at bay. Decisions should be governed by logic and not emotion.

10. Stick to the plan

Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you and abandon your strategy. There's a mantra among day traders: "plan your trade and trade your plan."

Before we go into some of the ins and outs of day trading, let's look at some of the reasons why day trading can be so difficult.

What makes day trading difficult?

Day trading takes a lot of practice and know-how, and there are several factors that can make the process challenging.

First, know that you're going up against professionals whose careers revolve around trading. These people have access to the best technology and connections in the industry, so even if they fail, they're set up to succeed in the end. If you jump on the bandwagon, it means more profits for them.

Uncle sam will also want a cut of your profits, no matter how slim. Remember that you'll have to pay taxes on any short-term gains—or any investments you hold for one year or less—at the marginal rate. The one caveat is that your losses will offset any gains.

As an individual investor, you may be prone to emotional and psychological biases. Professional traders are usually able to cut these out of their trading strategies, but when it's your own capital involved, it tends to be a different story.

Deciding what and when to buy

Day traders try to make money by exploiting minute price movements in individual assets (stocks, currencies, futures, and options), usually leveraging large amounts of capital to do so. In deciding what to focus on—in a stock, say—a typical day trader looks for three things:

Liquidity allows you to enter and exit a stock at a good price—for instance, tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the expected price of a trade and the actual price.

Volatility is simply a measure of the expected daily price range—the range in which a day trader operates. More volatility means greater profit or loss.

Trading volume is a measure of how many times a stock is bought and sold in a given time period—most commonly known as the average daily trading volume. A high degree of volume indicates a lot of interest in a stock. An increase in a stock's volume is often a harbinger of a price jump, either up or down.

Once you know what kind of stocks (or other assets) you're looking for, you need to learn how to identify entry points—that is, at what precise moment you're going to invest. Tools that can help you do this include:

Real-time news services: news moves stocks, so it's important to subscribe to services that tell you when potentially market-moving news comes out.

ECN/level 2 quotes: ecns, or electronic communication networks, are computer-based systems that display the best available bid and ask quotes from multiple market participants and then automatically match and execute orders. Level 2 is a subscription-based service that provides real-time access to the nasdaq order book composed of price quotes from market makers registering every nasdaq-listed and OTC bulletin board security. Together, they can give you a sense of orders being executed in real-time.

Intraday candlestick charts: candlesticks provide a raw analysis of price action. More on these later.

Define and write down the conditions under which you'll enter a position. "buy during uptrend" isn't specific enough. Something like this is much more specific and also testable: "buy when price breaks above the upper trendline of a triangle pattern, where the triangle was preceded by an uptrend (at least one higher swing high and higher swing low before the triangle formed) on the two-minute chart in the first two hours of the trading day."

Once you have a specific set of entry rules, scan through more charts to see if those conditions are generated each day (assuming you want to day trade every day) and more often than not produce a price move in the anticipated direction. If so, you have a potential entry point for a strategy. You'll then need to assess how to exit, or sell, those trades.

Deciding when to sell

There are multiple ways to exit a winning position, including trailing stops and profit targets. Profit targets are the most common exit method, taking a profit at a pre-determined level. Some common price target strategies are:

strategy	description
scalping	scalping is one of the most popular strategies. It involves selling almost immediately after a trade becomes profitable. The price target is whatever figure that translates into "you've made money on this deal."
fading	fading involves shorting stocks after rapid moves upward. This is based on the assumption that (1) they are overbought, (2) early buyers are ready to begin taking profits and (3) existing buyers may be scared out. Although risky, this strategy can be extremely rewarding. Here, the price target is when buyers begin stepping in again.
Daily pivots	this strategy involves profiting from a stock's daily volatility. This is done by attempting to buy at the low of the day and sell at the high of the day. Here, the price target is simply at the next sign of a reversal.
Momentum	this strategy usually involves trading on news releases or finding strong trending moves supported by high volume. One type of momentum trader will buy on news releases and ride a trend until it exhibits signs of reversal. The other type will fade the price surge. Here, the price target is when volume begins to decrease.

In most cases, you'll want to exit an asset when there is decreased interest in the stock as indicated by the level 2/ECN and volume. The profit target should also allow for more profit to be made on winning trades than is lost on losing trades. If your stop-loss is $0.05 away from your entry price, your target should be more than $0.05 away.

Just like your entry point, define exactly how you will exit your trades before entering them. The exit criteria must be specific enough to be repeatable and testable.

Day trading charts and patterns

To help determine the opportune moment to buy a stock (or whatever asset you're trading), many traders utilize:

Candlestick patterns, including engulfing candles and dojis

Technical analysis, including trend lines and triangles

Volume—increasing or decreasing

There are many candlestick setups a day trader can look for to find an entry point. If used properly, the doji reversal pattern (highlighted in yellow in the chart below) is one of the most reliable ones.

Typically, look for a pattern like this with several confirmations:

First, look for a volume spike, which will show you whether traders are supporting the price at this level. Note: this can be either on the doji candle or on the candles immediately following it.

Second, look for prior support at this price level. For example, the prior low of day (LOD) or high of day (HOD).

Finally, look at the level 2 situation, which will show all the open orders and order sizes.

If you follow these three steps, you can determine whether the doji is likely to produce an actual turnaround and can take a position if the conditions are favorable.

Traditional analysis of chart patterns also provides profit targets for exits. For example, the height of a triangle at the widest part is added to the breakout point of the triangle (for an upside breakout), providing a price at which to take profits.

How to limit losses when day trading

A stop-loss order is designed to limit losses on a position in a security. For long positions, a stop loss can be placed below a recent low, or for short positions, above a recent high. It can also be based on volatility.

For example, if a stock price is moving about $0.05 a minute, then you may place a stop loss $0.15 away from your entry to give the price some space to fluctuate before it moves in your anticipated direction.

Define exactly how you'll control the risk of the trades. In the case of a triangle pattern, for instance, a stop loss can be placed $0.02 below a recent swing low if buying a breakout, or $0.02 below the pattern. (the $0.02 is arbitrary; the point is simply to be specific.)

One strategy is to set two stop losses:

A physical stop-loss order placed at a certain price level that suits your risk tolerance. Essentially, this is the most money you can stand to lose.

A mental stop-loss set at the point where your entry criteria are violated. This means if the trade makes an unexpected turn, you'll immediately exit your position.

However you decide to exit your trades, the exit criteria must be specific enough to be testable and repeatable. Also, it's important to set a maximum loss per day you can afford to withstand—both financially and mentally. Whenever you hit this point, take the rest of the day off. Stick to your plan and your perimeters. After all, tomorrow is another (trading) day.

Once you've defined how you enter trades and where you'll place a stop loss, you can assess whether the potential strategy fits within your risk limit. If the strategy exposes you too much risk, you need to alter the strategy in some way to reduce the risk.

If the strategy is within your risk limit, then testing begins. Manually go through historical charts to find your entries, noting whether your stop loss or target would have been hit. Paper trade in this way for at least 50 to 100 trades, noting whether the strategy was profitable and if it meets your expectations.

If it does, proceed to trade the strategy in a demo account in real-time. If it's profitable over the course of two months or more in a simulated environment, proceed with day trading the strategy with real capital. If the strategy isn't profitable, start over.

Finally, keep in mind that if trading on margin—which means you're borrowing your investment funds from a brokerage firm (and bear in mind that margin requirements for day trading are high)—you're far more vulnerable to sharp price movements. Margin helps to amplify the trading results not just of profits, but of losses as well if a trade goes against you. Therefore, using stop losses is crucial when day trading on margin.

Now that you know some of the ins and outs of day trading, let's take a brief look at some of the key strategies new day traders can use.

Basic day trading strategies

Once you've mastered some of the techniques, developed your own personal trading styles, and determined what your end goals are, you can use a series of strategies to help you in your quest for profits.

Here are some popular techniques you can use. Although some of these have been mentioned above, they are worth going into again:

Following the trend: anyone who follows the trend will buy when prices are rising or short sell when they drop. This is done on the assumption that prices that have been rising or falling steadily will continue to do so.

Contrarian investing: this strategy assumes the rise in prices will reverse and drop. The contrarian buys during the fall or short-sells during the rise, with the express expectation that the trend will change.

Scalping: this is a style where a speculator exploits small price gaps created by the bid-ask spread. This technique normally involves entering and exiting a position quickly—within minutes or even seconds.

Trading the news: investors using this strategy will buy when good news is announced or short sell when there's bad news. This can lead to greater volatility, which can lead to higher profits or losses.

Day trading is difficult to master. It requires time, skill, and discipline. Many of those who try it fail, but the techniques and guidelines described above can help you create a profitable strategy. With enough practice and consistent performance evaluation, you can greatly improve your chances of beating the odds.

Forex trading – what is the best way to make money with currency trading?

Forex trading is not the only way traders get rich. It is also possible for you to make money trading with other financial markets like the stock market, bonds, commodities and currencies. The forex market, however, is the largest financial market in the world. Learning how to do forex trading can make you a huge amount of money.

If you’ve heard about forex trading, but aren’t sure how it works, here is a quick breakdown: in forex trading, you buy a stock or bond using one currency and then sell the same currency for another. Over time, you gain money by selling a currency that has risen in value. But, if you are trying to predict what the value of a currency will be, you use a quotation system to compare two currencies.

Forex traders must understand a few important things about how the forex trading system works. Forex traders can buy and sell currencies at any time; however, there are two different types of transactions, the spot deal and the forward deal. With the spot deal, you buy a specific amount of currency and then sell that same amount on the same day. With the forward deal, which is the opposite of the spot deal, you sell currency on the same day that you buy it.

With forex trading, you have several types of currencies to choose from. When you trade, you are not limited to just one currency pair. In fact, you can trade in up to three different currency pairs depending on your preferences. However, when you learn how to do forex trading, it is important that you learn how to trade with just one currency pair. When you master how to trade with just one currency pair, you will be able to make much more money in a shorter period of time than if you were to try to learn how to trade with a variety of different currency pairs.

Learning how to trade with just one currency pair is rather simple. You need to find a brokerage or mini lot that will give you a very low margin. The mini lot way of forex trading is when you trade for less than you would normally spend on one gross basket of currency. You do not want to get too much leverage when you are trading this way. This way, if the market drops, you are not going to lose a huge amount of money, but you will not be able to live off of the interest from your mini lot account.

One great thing about forex trading as an investment vehicle is that you are able to work with small amounts of money. You do not have to worry about large investments and large initial cash outlay. Many investors that have made a lot of money with foreign exchange investing are making their bread and butter off of small amounts of investments. In fact, many investors make their whole living off of small investments.

Many investors prefer to trade forex trading using spot market futures as opposed to the forex futures market. While the futures market is able to provide good trading opportunities, many traders prefer to trade forex futures for longer periods of time. It is much easier to determine what the spot market is going to do when you are trading futures than it is when you are trading spot. Another great reason why forex futures traders prefer to trade futures is that they can use futures prices as a guideline as to what the spot market is going to do.

The last thing about forex trading that needs to be mentioned is leverage. In order to become truly successful, you are going to need to use leverage in order to increase your profit margins. If you do not have a lot of leverage, then it will be very difficult for you to trade. Remember that having leverage allows you to make larger profits but it also increases the amount of risk that you are taking.

How to make money trading - 2 keys to success

How to make money trading will be the theme of this article.

Develop your edge and trading strategy

You can find plenty of evidence on our blog about what a good trading strategy should really look like, but more importantly, what you can really learn is how to make money trading.

How to make money trading

In order to make money on the forex market or any other market, all you really have to do is to buy low and sell high. Pretty simple wouldn’t you say?

Let’s take a look at an example: how much money can you theoretically make by trading forex currencies?

How to make money fast

You can fine-tune the price at which you buy and sell forex currency pairs by using the most popular trading approaches like support and resistance trading.

Trading for a living: can it be done?

On the flip side, if you don’t put any efforts whatsoever, then the probability to make money trading is diminishing.

The secret to how to make money and build your wealth is through COMPOUNDING!

Let’s get straight to the point and see how compounding can help you make money.

How to make money through compounding

But what exactly does compounding means and how it can help you make profits trading?

Show me any other investment strategy that can do that.

We can easily see how each month our account steadily grows.

You don’t need to be an einstein to appreciate compounding.

Conclusion - how to make money trading

The two keys to making money trading are leverage and compounding which will help you making money in forex trading.

Please leave a comment below if you have any questions on how to make money trading!

Also, please give this strategy 5 stars if you enjoyed it!

(5 votes, average: 4.60 out of 5)
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How to make money trading [the ultimate guide]

Not all traders make money trading; this is due to common trading mistakes like the ones I discussed in a previous post about trading mistakes.

In this post, I will be sharing with you how to make more money trading options in 2020.

I specifically share tips on how to make money even when the market is entering a recession and how to invest in a bear market.

Before we proceed, I want to clarify that no matter who you choose to learn from, beststockstrategy.Com, option alpha or tastytrade (both of which have, in my opinion, an inferior strategy), selling option premium is the only way that you can earn consistent and predictable money in the stock market (besides, perhaps, buying an SPY index and selling covered calls against it).

As long as you are selling option premium, you can earn a lot of money and learn the most successful options strategy.

However, you need to ensure that you're disciplined and not greedy (like optionsellers.Com).

How to make money trading options? It's quite simple. You can definitely learn how to be a consistently profitable options trader.

But, if you are trying to day trade, make money trading penny stocks, using technical analysis, or trading forex, then I don't believe that you're a trader, instead you're a fraud victim and a gambler.

In general, it's important to avoid scams and bad information like here, here and here.

Make money with trading (key points)

DO NOT sell options on etfs

If you want to make money trading, do NOT trade iron flies on etfs like what kirk du plessis teaches at option alpha.

I don't recommend trading etfs because you'll receive about half as much premium when compared with selling options on individual securities.

Additionally, if you sell an iron fly or strangle, you are inherently putting on a position at an inopportune time.

Why trade an iron fly on SPY when you could make more money trading a put or a call on apple or facebook?

In november 2018, my alert subscribers and I created a strangle at an opportune time.

Amazon fell to about $1,650, so I instructed them to sell a $1,480 put.

Those who wanted to turn their trade into a vertical credit spread sold the $1,480 put and bought a $1,300 put.

The next day, amazon increased in price by around $120 so I instructed my subscribers to close out the previous trade.

But, for those people who didn't close out that trade, I told them that it was an opportunistic time to sell a $1,860 call.

By waiting for amazon to increase in price, traders who sold the call option were able to receive a large amount of premium.

How to make money trading when the market is down & entering a bear market

It is best to sell calls to make money trading during a bear market.

In our amazon example above, if they had sold that call when amazon was trading at only $1,650, they could have received around $1 in premium (instead of the $5 that they received when amazon increased in price).

When offered only $1 of premium, it would not have been worthwhile to enter that trade.

That is the problem when selling strangles.

You are inherently NOT maximizing the amount of premium that you receive because you're opening the trade at inopportune times!

You ALWAYS want to open new trades into strength (meaning sell puts when the underlying has fallen and sell calls when the undelrying has risen).

In a bear market, I recommend that you should primarily sell calls because the trend will be your friend.

You can fade the rallies and sell calls.

Selling calls will permit you to make money trading when the market is extremely volatile.

I do not agree with aimlessly selling strangles and straddles.

Also selling iron flies on etfs that have high implied volatility is also a poor strategy because your positions will get tested frequently.

"trading often", like what tastytrade recommends, is also very dangerous because you're better off allocating capital to only the best opportunities.

Instantly be a successful & profitable trader with our trade alerts special offer

There is ZERO "safety net" when you sell a straddle.

You will deal with constant stress when you sell a straddle.

You'll have to log into your account 5 to 6 times a day to make sure that your position is not exceeding either the upper or the lower bounds.

Even if you sell a straddle and immediately enter a limit buy to close order to take off that trade at 25% of the profits, you still have to log into your account multiple times a day to make sure that the position isn't being challenged.

Additionally, the market volatility during times like march 2020 exhibited 2 - 3 standard deviation moves PER DAY; because of this, you will have to log into your account multiple times and make many adjustments.

You will likely feel like a pinball by making many adjustments only to find out later that perhaps you shouldn't have touched that options position at all.

Overall, selling a straddle is not a SMART idea to make money trading especially during a bear market.

"there is a ZERO 'safety net' when you sell a straddle. You will deal with constant stress when you sell a straddle." - david jaffee, beststockstrategy.Com

Instantly be a successful & profitable trader

Follow my trades with real-time trade alerts

Advantages of selling puts or calls

How can you earn

50% annual profit trading options?

When you sell puts or calls on underlyings that are at price extremes, you are giving yourself an advantage because you have a large safety net and there's a high likelihood of price reversion to the mean.

In november 2018, facebook traded up to

$150 after it exceeded earnings.

We waited until facebook fell down to $142 and we sold the $134 put that gave us an
incremental of $2 of premium.

By waiting for the volatility of facebook to increase, we received about twice as much premium as we could have received when facebook was trading around $150.

Remember, you need to mitigate risk and build a large safety net when trading.

In our amazon trade example earlier, prior to waiting for amazon to fall to $1,650 (and then selling the $1,480 put), we did not try and predict future price movements.

Instead, we took what the market gave us and when amazon increased in price by $120 in one day, we felt that it was overextended and opportunistically sold the $1,860 calls to capitalize upon the opportunity.

When amazon, as one of the largest companies in the world, appreciated 5% in one day, we took advantage of the fact that amazon was too far extended to the upside.

Additionally, we sold a call that was

$100 out-of-the-money, and collected a lot of premium as well.

Once we executed that trade, we entered a closing order at 50% of the maximum profit.

Two days later, we actually closed out that trade for a

This is a high probability trade.

Will it be profitable all the time? No, but the odds are in your favor.

The trade above is an example of your best way to trade and make money consistently in the stock market.

You can minimize risk and be opportunistic while, at the same time, trade with a substantial safety net.

Take the BEST options trading education course and become a profitable trader

Tips to make money trading

Which securities should you invest in?

Some securities are better than others.

For example, in 2018, amazon was actually a lot more stable to trade than facebook because facebook fell from $218 to

Amazon traded around $2,000 and fell below $1,350 (but it rebounded quickly).

Amazon's normal trading range had been between $1,600 and $1,800.

You can make money trading (and, more importantly, reduce your risk) when a stock is less volatile like amazon versus when a stock is more volatile like facebook.

You can also protect yourself and minimize portfolio volatility by selling vertical credit spreads.

You need to look at the trading range of an individual security and then discern whether it is an A or A+ trade opportunity.

It's important to only trade the best opportunities because when the market goes down, everything has high implied volatility, and the volatility index (VIX) is also very high.

When the VIX is high, this means that you will collect a lot of premium when selling options, but you're also assuming heightened risk and it's important to remember that NOT all opportunities are the same.

This is another reason why you need to pay attention to which of the securities on your watch list are performing well so that you make good decisions on which trades to make.

From my personal experience, the worst trades have always been with the "B" or "C" stocks such as baidu or electronic arts.

On the other hand, I rarely lose money with facebook, amazon or visa.

I've probably made a few hundred thousand dollars by trading these securities.

"when amazon, as one of the largest companies in the world, appreciated 5% in one day, we took advantage of the fact that amazon was too far extended to the upside." - david jaffee beststockstrategy.Com

Make money trading: selling puts and calls

Overall, the best strategy when selling options and trading options should be to sell puts on large cap market-leading stocks that are trading at the low end of their range.

As they increase in price, you can then sell a call.

I usually do not proactively sell calls on many securities.

I sold calls on mcdonald's in 2018 when it was around $185 because it had appreciated in value too quickly and I felt that it was overextended to the upside.

However, it is extremely rare for me to aggressively sell calls unless the market is declining consistently and we're in a bear market.

If the market is weak then I will wait for facebook, amazon, mastercard, lockheed martin, and raytheon to fall to the low end of their trading range.

If that happens, I will sell a put that is around 10% - 15% below the current trading price.

I'll then wait to see if the stock quickly rebounds in price.

If it does, I will opportunistically sell a call on that specific security and turn the trade into a strangle.

In general, I rarely sell a naked call or vertical call spread on a stock that I don't already have an existing put position on.

It is much more capital efficient for you to sell a put AND also sell a call because it doesn't use up any incremental buying power when converting a short put or short call position into a strangle.

When amazon was trading around $1,650, I sold a $1,480 strike put.

Then, when amazon quickly appreciated in price to $1,750, I then then sold a $1,860 call.

By doing that, you are not using any incremental buying power.

By opportunistically turning the existing AMZN $1480 put position into a strangle by selling the $1860 call, there is no incremental buying power that's being used.

Remember that amazon cannot trade above $1,860 and below $1,480 at the
same time, so as long the number of contracts and the expiration dates are the same, then I can collect additional premium without using extra buying power.

Instantly be a successful & profitable trader with our trade alerts special offer

When to trade verticals

I do not recommend trading iron flies on etfs.

In 2018 and 2019, I traded more verticals to protect myself against the heightened volatility.

In general, I feel that vertical credit spreads provide greater capital efficiency and also protect against tail-risk. This more than compensates for the small decrease in premium received.

As a result, I have been trading more spreads recently.

I accept collecting less premium in exchange for limiting my downside risk during a large drawdown in the S&P 500.

In december 2018, I bought puts for portfolio insurance when the market was extremely volatile.

When volatility spikes, your primary goal should be to reduce risk and not lose money.

As a result, if you need to buy some protective puts for your existing positions during "black swan" events, then I am okay with that strategy to overcome a major selloff.

When you trade vertical credit spreads, it is difficult to manage / roll that position, however I still feel that the more efficient capital usage and protection outweighs the smaller premium and rolling difficulty.

Overall, it's important to build a wide moat and a strong safety net. This is how I make money trading.

My strategy minimizes risk while maximizing returns, even during volatile times.

Why you should NEVER day trade

Day trading for beginners.

All of it is BS and none of it works.

When someone asks me, "how to start day trading?"

I tell them that it's scientific fact that they will lose money.

Numerous scientific research papers have looked at

400,000 day traders and concluded that 99.85%+ of day traders lose money.

And the few that earn money end up making less than minimum wage AND that the few who make money will likely end up losing money if the study gave them more time.

Conclusion: can you make money trading options?

You can definitely make money trading options. The best way to do so is by selling option premium.

Review all of the tips that I have shared in this post and also read my other posts where I share valuable information about options trading.

I want to remind you that selling straddles do not provide you with a safety net and I would NOT recommend trading straddles.

If you want to know more about how to make money trading, enter your e-mail address below and receive $400 worth of free training.

Can you make money day trading stocks?

Unfortunately no. Research has shown that it's "virtually impossible" to be a profitable day trader.

Stick with selling option premium if you want to make money trading.

My free materials are significantly better than anyone else's paid materials.

You can also leave your questions in the comments section below and I will answer them. Thank you!

Learn the most successful options strategy.

Want to connect with me directly? You can contact me on facebook, linkedin or david jaffee personal website.

Beginner's guide to currency trading

Currency returns are outperforming equities, so how can newbies get a slice of the action?

Article bookmarked

Find your bookmarks in your independent premium section, under my profile

Pedestrians walk past a board displaying the price of Euro and US dollars against British pound Sterling

UK overseas investors have been doing remarkably well out of brexit. That’s the findings of natixis global asset management’s annual global portfolio barometer, which has found that UK portfolios with significant non-sterling assets saw average performance of more than 13 per cent.

That far outstripped even US investors, who came second globally with average returns of 8.2 per cent.

Interestingly, though, a large part of that success was as a result of currency risk, with currency-related returns outperforming the underlying equity markets.

Matthew riley, head of research at the portfolio research and consulting group, says: “A substantial part of the explanation is currency risk which is no surprise since currency moves in 2016 were the highest since 2008 and had a large impact on the surveyed portfolios.

For example, he says, a UK investor with unhedged US equity exposure (in other words, without making compensating investments to counteract the risk) would have gained an extra 19 per cent return in 2016 due to the depreciation of the pound versus the dollar.

"for eurozone equities, this would have been around 16 per cent, and for japanese equities this would have been 23 per cent. Currency impact was also seen in allocation funds, EM debt and high yield debt funds, which are often not hedged by advisers.”

He adds: “in equities, these currency-related returns were more than the returns of the underlying equity markets. In fact, adding up all of the currency impact, we find that about 7 per cent of the return contribution to UK adviser portfolios, or 50 per cent of the total returns in 2016, came from currency risk.”

One thing is clear, there’s money to be made trading currencies. But for new entrants to the market face a bewildering array of options, platforms and terminology, so here’s a rundown.

Who’s trading?

A lot of people. Foreign exchange is most commonly known as forex and forex is the world’s most traded market. According to cityindex there’s an average turnover in excess of US$5.3 trillion every single day. That’s 4.24 trillion pounds at time of writing, although as will be seen that can change.

A lot of different people are trading, from large companies to part-time traders operating out of their bedrooms, something that only became possible with the proliferation of the internet.

What drives currency movements?

Most people already know that the values of currencies shift, that’s why exchange rates change. And the changes in those rates are determined by multitude of traders buying currencies with other currencies and making judgements on what each is worth in relation to each other.

Prices can change at incredible speed in response to news and global events. Traders look at key factors, including political and economic stability, currency intervention, monetary policy and major events such as natural disasters.

How does it work?

When trading forex, currencies come in pairs, for example, sterling/US dollar. The trader predicts how the exchange rate between the two currencies will change. So, if the trader believes that US dollars will strengthen against the pound then they buy dollars, which means they are also ditching their pounds.

If they are right then the value of their currency rises and they can sell for a profit. If their hunch was wrong then they lose.

For example, the GBP/USD rate shows the number of dollars one pound can buy. If a trader believes the pound will increase in value against the dollar then they use dollars to buy pounds. If the exchange rate rises then they can sell the pounds back for a profit.

One of the reasons forex trading is so popular with hobbyist investors is that the markets are open pretty much 24 hours a day, following the different countries’ time zones.

Will I make any money?

Forex is risky. It’s so risky that many commentators have likened home traders to professional gamblers, arguing that the idea an individual can reliably predict the movements of currencies is nonsense.

There are an abundance of platforms and guides and books and investment tutorials that suggest it’s possible to make a small fortune trading currencies. However, spend any time reading forums and there are hoards of bedroom forex traders losing money day after day.

It can be very expensive to make currency transactions and individual traders usually don’t have a large enough pot to make anything other than small gains.

It’s essential that would-be traders don’t invest money they can’t afford to lose.

This whistle-stop tour of currency trading is not enough to equip a would-be investor with everything they need to know to stand a chance of making an actual return. It’s a complex area and one that, even with extensive reading and knowledge, is full of risk.

There ae stockbrokers and financial advisers available to discuss standard investments and degrees of risk, but for individuals trading forex it’s largely self-taught and fraught with risk.

Before undertaking any kind of online trading, it’s a good idea to spend time reading more and talking to other investors. Just be aware that any book, tutorial or guide that promises large returns is not being entirely honest about the level of risk involved.

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The difficulties of making money by day trading

Why day trading mostly doesn't work

Tetra images / getty images

When you look at a price chart—whether it be for a stock, foreign currency pair, or futures contract—it seems like it should be pretty easy to make money. Often, when day traders first get started, they focus their attention on the big moves and think, "if I had gotten in there, I could have made a fortune."

Adopting such a perspective can lead many people to think day trading is relatively easy and a quick way to riches. Day trading can provide significant income if you know how to go about it. However, for most people, the required amounts of time spent learning and practicing prevent them from gaining enough experience to become consistently profitable with their trades.

Day trading success rate

It's a challenge to turn a profit through day trading, and although every day trader believes they can make money, most people who attempt day trading end up with a net loss. you can improve your odds of profitable trading by understanding the risks that can lead to losses and by getting past the assumption that day trading is easy.

Need for a robust method

One reason traders might lose money is the absence of a solid trading strategy. Simply looking at a chart in hindsight is not an effective way to create a profitable plan. If you develop a robust strategy, it can be used in many market conditions and can even inform you when to stay out of the market because the conditions are not favorable.

An effective strategy helps prepare you to take action before a profitable opportunity arises, not after. The goal of your strategy should be to uncover patterns and trends that point to trading opportunities that could deliver positive returns. Without doing that research, your results might be largely determined by chance.

Taking time to practice

Many novice traders fail to understand that day trading takes a good deal of time to learn. Putting in a few hours of research without consistently committing time to day trading won't make someone a successful trader.

You'll need to practice day trading while maintaining another job unless you have money set aside to cover your expenses for several months or more. It is highly unusual for day traders to produce income right when they get started. Most day traders don't see their efforts result in enough profits to pay themselves any type of income for many months.

Whims of the market

Numerous issues and situations contribute to making the market difficult to gauge and navigate. Taking the time to learn and understand what triggers shifts in trading activity can better prepare you to respond to those changes.

Learn to control your financial risk in case you make a wrong conclusion about the direction of a trade, by putting a stop loss on your trade. Think of it as setting a threshold to help mitigate the amount of money you may lose while pursuing trading opportunities.

Understand that you can't always get the exact price you want when trading, especially with market orders. Heavy trading activity might push a price away from your precise target before you can react. You can choose to skip what might still be a good trade or accept the less-than-ideal market price. Both options will reduce your theoretical profit on the trade. Even if you use limit orders, you may get filled for only part of your order on winning trades (the market runs away before filling the whole order) but end up with full positions on your losers (the price is moving against you, so, unfortunately, you always get your full order).

Understand that the market is composed entirely of other people trying to make money or fend off losses (hedgers). People who are very good at trading look to take advantage of the orders that are placed by inexperienced traders. Veteran traders look for prices they believe allow them to leverage some potential in the asset that others have overlooked and that will provide a good entry or exit point for them.

Greed and fear

The individual desires and intentions of day traders can substantially influence the outcomes of their efforts. A bit of success can lead to greedy actions that stray from an established trading plan. These can include taking action too soon, holding on to a profitable gain for too long, or not cutting losses soon enough in a losing trade.

Fear can likewise cause day traders to hold back too much when an opportunity is in the making. They might also sell in a panic in response to breaking news without taking into account all of the other factors at play. Forming a solid trading strategy has the huge benefit of keeping you focused on your results without being swayed by emotions.

Making money trading

Trader_dante

Veteren member

I want to show you how to make money trading the markets. Naturally, it is not the only way to make money it is merely one way of doing so.

If you follow what I will teach you, try the methodology out on demo first before committing real money in a live account, gain confidence and understanding in the setups and you are patient and disciplined, you will make good money with this method.

The method I am going to show you is based on price action. It uses the price, fibonacci levels, three moving averages, the concepts of support and resistance and trend lines. From time to time it uses an indicator. It is not complicated to follow but it will take you time and effort to learn how to trade it for consistent profit.

We will take things very slowly because I want to make sure that everyone fully understands the concepts as we go along. Having said that, I expect those reading this to have at least a basic knowledge of the elements I have listed above. If you do not, go away and read up on them. You will find a huge amount of free information on them.

The method I will show you is not a system with a rigid set of entry and exit rules. It is not going to tell you that when X happens, do Y. It is a method of trading based on high probability setups.

It can be applied on any timeframe but I use it to make money on the hourly and daily timeframe because this is what I am comfortable with. Therefore these are the only timeframes we will work with here.

I work full time but I have access to my broker at work so I can check the charts every hour for setups. If you are not in a position to do this, then you will need to concentrate on the daily timeframe. Both timeframes work very well.

I want to concentrate on one market. The methods work across every market but I think it will confuse people if many traders are asking questions of different setups in different markets. Also, many traders don't have access to some markets or the margin requirements to trade them are too high. As a result I am going to post a poll and over the process of a few weeks we will eliminate which market we are going to trade going forward.

While the market is being decided, are there any questions?

Thebramble

Legendary member

Senior member

Thanks for starting this thread - it has the potential to be very useful for the less experienced. The trading philosophy (and methodology) appears very similar to the conclusion I am coming to for my own use - nice & simple but not doggedly rigid.

Re the poll: why no shares eg FTSE350 or nasdaq - or are they includede in "indices"?

Jbat001

Active member

How about the FTSE, as it's fairly ubiquitous?

Would be interested to hear your method, and learn a few things.

Trader_dante

Veteren member

Re the poll: why no shares eg FTSE350 or nasdaq - or are they includede in "indices"?

Hello 0007 - good question!

The reason I didn't choose shares is because of the size of the market. There is small cap, mid cap, large cap shares aswell as those traded on international exchanges. Although I will teach a methodology that will work on any market I also believe that part of being profitable is knowing your market well. With shares the market is simply too large to get to grips with. If a new trader is not aware of the difference in the way the price moves between a blue chip stock listed in the FTSE 100 and a penny share quoted on AIM they may be in for a nasty surprise.

Trader_dante

Veteren member

Trader_dante

Veteren member

Trendie

Legendary member

Magic moo

Newbie

Forexbee

Active member

Wow, thats nice to see your new thread.

I have been interested in forex trading. Looking forward for your post

Jbat001

Active member

Chowclown

Senior member

Trader_dante

Veteren member

My returns are made from a mixture of markets. I trade almost everything that moves with the exception of shares.

A word of warning though: don't pay too much attention to returns.

Percentage return is very easy to inflate. A friend of mine set up an account with a spreadbet broker that was offering a bonus of £150 free to those who opened accounts with them. He has never placed a trade before in his life and so we decided that I would trade it for him. This was just under five months ago and as of today the account is just shy of £2,350. This equates to a percentage return of 1,345%. It sounds very impressive but it masks a simple truth. The account had minimum margin requirements. For example, minimum trading in the dax has to be at £3 a point. Therefore with a stop loss of say just 50 points, you are risking 100% of your account on the first trade. And in my opinion, although a system or methodology can give you a significant edge over time, the outcome of any one trade is 50/50 - along with your chance of getting wiped out in this example!

Remember, all you need to do is start with a small amount of money enough times and you can tout an incredible performance ratio. If you start a new account with just $100 each time and trade a full lot ($10 a tick) with a stop of just 10 ticks and go for a home run you will wipe out many times. But of course, if just once you make a 200 pip run (which is fairly likely on something like GBP/JPY) - you can, of course, very legitimately and truthfully say that your return on a new account is 2,000%. Once you then have your $2,100 you can start to trade a little safer but still boast what looks like an incredible return. I am sure many unscrupulous system sellers do this.

The principle is the same with my personal account but not the methodology. I started with a very small amount of money. I had actually wiped my account out at the time and couldn't bear to put much more money in so I started this new way of trading with what I had in my account which was just £63. I have built this up into £1,435 as of today. Since the broker I use lets me trade at small size though, I did not take excessive risk which could have wiped me out from the start.

So, as you can see these are small returns in terms of actual money made despite the fact that the percentage increase is phenomenal!

I have recently reviewed all the trades I have done in my account since starting to use this methodology. From this review I can see that my win/loss ratio is just under 80%.

Losses will be cut very quickly and winners will be left to run until it looks like the move is running out of steam. Naturally, some retracement will be necessary before this is realised. Nonetheless, some of the trades I will show you have incredible risk:reward ratios.

The latest trades I took were in the bund (german treasury market) and in crude oil. The last setup my methodology generated in the bund returned a reward of 12 times the risk on the hourly timeframe. (180 ticks reward for a 15 tick risk). In crude oil, the method generated a reward of 5 times the risk (362 ticks for a 67 tick risk) this is without adding positions which was also possible.

So, let's see, what we have: the big question on everyone's lips is: how to make money? But more importantly, how to make money trading is probably the question that everyone wants to find an answer. At make money trading