Good stuff Pro, keep it going sir
prochargedmopar wrote:This sounds like a few here:
Posted by MagnumFreak on FF:
No pressure trading
Here is the absolute key to emotionless trading..... are you ready for it??
QUIT TRADING LARGER LOTS AND GOING FOR SMALLER PIPS AND START TRADING SMALLER LOTS AND GOING FOR LARGER PIPS.
Let me explain.... Most traders are taught to risk 1-2% of their account on every trade. WHY?? Because the common mindset says that most likely you will only gain 10-20 pips on a trade before it turns against you.
Most everyone in this thread has done the math and they know that by trading just 2 pairs they should be able to pull in a ton of pips but as soon as they get into a trade fear takes over and they immediately begin to find a reason to exit the trade.
You want to know why I can leave a trade on without fear? Typically I will risk 0.2% per trade. Yep, 1/10th of the normal risk. Why? Because I can easily get at least 10 times the normal pips everyone else expects to get. On a $2,000 account that is only $4.00 risked per trade. Do you think you will have any fear if you know that only 4 bucks out of 2,000 are at risk?
When you take fear out of the equation then there are no limits to what you can do.
Because I don't have that fear of loss, I now average over 300 pips a day trading 4 pairs (today was much much higher than that). Now normally I will have around a 20 pip stop on a trade. Doing the math on a 2,000 account that means I have 2 micro lots to work with. That would mean on a 300 pip day I would see about a 60 dollar increase in the account. That is about a 3% increase. Not bad for only risking 0.2%.
Can you really make 300 pips a day average?? Yes if there is no fear in your trading. Let's say you are still a bit scared even at the lower risk levels and you only get 150 pips a day, your 2,000 account has grown to 72,000 by this time next year. I won't even tell you what 300 pips a day will do to a 2,000 account in 1 year.
You cannot expect to get consistent results when you trade with fear. It is impossible.
Hope this all makes sense.
Very Important SS pics,
Thanks foreman01 for making the zip file available!!!