This is my number one rule when it comes to trading – cut your losses early.
When it comes to trading, managing your risk is the most crucial element to future success. This means knowing when you’re wrong and doing something about it.
Last week saw USD plummet significantly to fresh 3 year lows. Thanks to some INSANE moves, I was able to make just over $11,000 in less than 48 hours thanks to USD short positions I sent out to all the Trade Alerts Subscribers.
So the big question is, where does USD go from here?
It was a very volatile end to the week last week, with all the major currencies pushing through significant support and resistance levels.
The US Dollar has collapsed to 3 year lows, the Euro is at 3 year highs, and the pound is approaching Pre-Brexit levels. So where do the markets go from here?
One of the biggest hurdles that new traders face is access to capital. As such, one of the questions most asked is how much people will need to start with to make a lot of money. The reality is that a small amount of capital can be turned in to a very large amount of money through the effect of compounding growth.
This means that as your account grows, your position size grows with it. This requires you to reinvest your profits. Investing in yourself is one of the key traits of successful people. Too many people are quick to ‘cash out’ profits too soon, and they cripple their potential to make the big bucks!
Lessons From A Loser
As I regularly mention, I often feel there is more to be learnt from a losing trade than a winning one. You WILL have losing trades. It’s all part of the game, and so you need to get used to.
Those of you who were in the group a few weeks ago will remember this Ripple long I signaled just after it broke to all time highs. For those new to the group here’s a brief recap.
I first got involved in trading during the summer of 2013. I was convinced I didn’t want to spend the rest of my life in an office working for someone else’s dream, but hadn’t yet figured out how I’d make my own way. Throughout most of my teenage years I was an avid poker player, but realised I didn’t have the patience to spend long hours alone playing online tables to build up a bank roll. This is when I first got introduced to trading by a chance ad online – it changed my life so significantly that I moved from a path in Chemical Engineering to landing one of the most prestigious jobs in investment banking, to starting my own trading business – all by the age of 23.
As we approach the Christmas period, I am up nearly 20% for the month! This puts me in profit for 7 out of the last 8 months, with 4 of those at nearly 20% or higher. There have been some great moves this month, and there are more on the horizon. As we enter the new year, I have also made the Chatroom feature available for traders to share analysis and learn new ideas!
Watch my latest video update for analysis on the latest big crypto moves, but why you should learn to trade other markets.
Watch my latest video to find out which markets to watch this week.
Metals have been falling for weeks, cryptos are at all time highs, and GBP is approaching critical levels.
(Apologies for the echo in the video, the villa I’m in at the moment has bad acoustics!)
These two characteristics of trading enable you to utilise your equity to its maximum. Without these, it would be near impossible to make decent returns without a huge starting bankroll. However, they are often poorly understood by traders, with disastrous consequences.