aiywqexr47
02-15-2016,
In the past year of trying to find my trading style and somehow hitting the big bucks, there is something that struck me.
We are told that part of the success is finding your own time frame. I've also repeatedly seen mentioned in many sources that going for higher frames or longer-term is less stress and safer for your account. I didn't entirely believe this. Then around late Oct, I'd found a thread expounding on some whiz kid's hyperscalping method (http://www.trade2win.com/boards/general-trading-chat/44624-55000-one-month.html) and that provided me with a very different perspective on trading.
Further digging around and a couple months of experimentation later, the secret to exponential growth of one's account on low risk has some very simple mechanics:
- Lots of trades. Large or small doesn't matter.
- Win % can be as low as 50%.
- R:R of 1:2+ is preferable.
- Use that leverage!
- Risk per trade can be kept to 1 - 2% of account.
The secret to exponential growth is simply to compound each trade and let them scale up into the stratosphere. So:
- 1% net per day nets you 700% YOY return.
- 2% net per day nets you 5000% YOY return.
- 3% net per day nets you 37000% YOY return.
And so on. Crazy numbers.
Some might say scalping is high-stress and undo-able for many. I sort of agree. I've given it a shot and 200+ trades per day is extremely exhausting. The market is also not always in the mood for that kind of volatility.
However, taking a leaf out of scalping's best strength is very feasible, and that's its extreme ability to compound returns. Let's say you make only 10 trades per day. Winners give you 1%, and losers are .5% of account. With a 50% win rate this nets you 2.5% daily. One year of this, and you're off on the beach sippin' those martinis.
Anyway, this is all to point out that even just 1% gain per day/week is not to be sneezed at. If you can harness the exponential power of trading, then that's all the mechanics you need behind money and risk management. The rest is psychology and a consistently profitable method.
We are told that part of the success is finding your own time frame. I've also repeatedly seen mentioned in many sources that going for higher frames or longer-term is less stress and safer for your account. I didn't entirely believe this. Then around late Oct, I'd found a thread expounding on some whiz kid's hyperscalping method (http://www.trade2win.com/boards/general-trading-chat/44624-55000-one-month.html) and that provided me with a very different perspective on trading.
Further digging around and a couple months of experimentation later, the secret to exponential growth of one's account on low risk has some very simple mechanics:
- Lots of trades. Large or small doesn't matter.
- Win % can be as low as 50%.
- R:R of 1:2+ is preferable.
- Use that leverage!
- Risk per trade can be kept to 1 - 2% of account.
The secret to exponential growth is simply to compound each trade and let them scale up into the stratosphere. So:
- 1% net per day nets you 700% YOY return.
- 2% net per day nets you 5000% YOY return.
- 3% net per day nets you 37000% YOY return.
And so on. Crazy numbers.
Some might say scalping is high-stress and undo-able for many. I sort of agree. I've given it a shot and 200+ trades per day is extremely exhausting. The market is also not always in the mood for that kind of volatility.
However, taking a leaf out of scalping's best strength is very feasible, and that's its extreme ability to compound returns. Let's say you make only 10 trades per day. Winners give you 1%, and losers are .5% of account. With a 50% win rate this nets you 2.5% daily. One year of this, and you're off on the beach sippin' those martinis.
Anyway, this is all to point out that even just 1% gain per day/week is not to be sneezed at. If you can harness the exponential power of trading, then that's all the mechanics you need behind money and risk management. The rest is psychology and a consistently profitable method.