How to Make Consistent Profits...

Ok, so we've come a long way...

We now know that by finding the directional bias we can put the odds in our favor and trade in the right direction...

We know that if we have the patience to hold our trades instead of overtrading we'll come out better thanks to our discipline...

And we know that with the maneuverability we have in the short term, we can enter into low risk trades that have potential of big rewards by adjusting our perspective...

Is this all we need for consistent profits?

Almost...

The final key is to make sure we don't bet the bank...

Betting the bank essentially means we don't take on too much risk on each trade.

A quick way to illustrate that is if you risk 10% of your account on each trade, you can only be wrong 10 times in a row before your account gets wiped out.

Reduce that to 5% of your account, and you can be wrong 20 times...

Reduce that to 1% of your account, and you can be wrong 100 times...

The point is, you can't make consistent profit if you have no more capital to trade.

But with that component, we're pretty much set.

  • We use directional bias to increase our odds (also known as our win/loss ratio) - this way we tend to have more winning trades than losing trades.
     
  • We use our short-term low risk advantage to set tight stops. This allows us to lose small while positioning for big gains.
     
  • We generate big gains by getting out of the "jump in jump out" and creating a custom trading plan for the day using the directional bias information.
     
  • We take calculated risks of 1%-3% of our account per trade and repeat the process.

That's pretty much the foundation of how to make it all work...

How to Shortcut the Process...


 

 

  

 

 

 

 

 

 

 

 

 

How to consistently make money day trading the markets... even if you're currently struggling to make heads or tails of where things are going...

How to clear the chaos from the markets...

How I shifted my win/loss ratio from average to above average...

The Key To More Winning Trades and Less Losing Trades...

Bigger wins minus the shakeouts...

How to Out-trade a Trader...

Small Risk - Big Reward?

How to Make Consistent Profits...

How To Shortcut The Process...

 

 

*Disclaimer:It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
 

CFTC Rule 4.41 - "Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown."

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