Saturday, April 25, 2015

A DEFENSIVE APPROACH

It’s as simple as this: When I am day trading, I don't try to make a ton of money on each trade, and I never try to get revenge.
Instead, I set up good trades, that have a lot of potential, and then I shoot for 10 pips as an initial target. Just 10 pips. That’s it. I don’t let myself lose a lot of money. I only try to get 10 pips at first, and if that’s all I get, then I’m out for the day. We’ll talk about how I try for more than 10 pips in a moment.
For now, consider that it's easy enough to get 10 pips
and, if that is all you can get, it's okay to get out. When you know that you can turn turn $10,000 into $130,000 in one year on 10 pips a day, it's no longer important to strike back at the market or get greedy on one day of trading.
And you can learn to turn $10,000 into $130,000 in one year on just 10 pips a day. I am not promising that you can do that. I am saying that it is possible and I have taught traders who have done it.
If you started with $10,000 on January 1st, and earned 10 pips per day, and only traded 17 days of the month, then you could end the year 2,000 pips UP, and with about $130,000. For a spreadsheet that details the progression in gains up to $130,000, write me at forex_edu@yahoo.com, with the word “10 pip spreadsheet” in the subject line.
Why is this innovative, different, or revolutionary? Because you are going to not only take money from novices with this strategy, you’re going to take money from other advanced traders. Advanced traders want big money. They didn’t spend years learning to trade so that they could make
$100 a day. They want big, big returns. They go for 40, 50, 100 pips at a minimum. Jimmy Young, an accomplished currency trader and a friend of mine, only trades a few times per month and goes for 100 pips or more every time. I also teach and take these types of trades myself. But it’s only one way of approaching the market, and it’s not easy.
Advanced traders are conservative with their trading capital because the market can take BIG swings against them when they’re waiting for 100+ pips. Some advanced traders will think you’re nuts for getting out of a trade at 10 pips. What if it goes to 100 pips? Or 200? Won’t I be upset that I missed out?
Not at all. I’ll show you later how I can still make 40, 50, or 100+ pips on these trades. But I’m never displeased with 10.
Let me repeat that:
I am never displeased with 
10 pips of profit.
You should be grateful for any profit the market gives
you. Don’t spend any time crying about how you didn’t get the maximum profit, or how you could have gotten so much more profit if you just stayed in the trade longer. If you want to do anything about it, then stay in the damn trader longer next time. I’ll tell you how you can do that.






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