Strategies for Growing Small Trading Accounts

Welcome back folks. This is month two of the ICT Mentorship. This is teaching one of eight of the second month of 12. And we're going to be dealing specifically with growing small accounts without high risk. Before we start, obviously we need to know what it is that we need to avoid. The first thing you need to do is do not try to rush to make massive gains in either pips or percent returns. I can tell you I fell victim to this as a new trader. I went in thinking I can get rich really, really quick as a trader after I started seeing how fast profits can come. It kind of makes you think that it's like the lottery every single time you sit in front of your computer, and it's not the case. So as a new trader, the first thing you want to do is kind of suppress that desire to try to chase massive gains. And it's either in a total number of pips because it seems like it's a trophy thing to tout that on the Internet or on forum or mediums like Twitter or… Instagram and Facebook. It's not important how many pips you have and it's not important how much money you make. It's the percent returns to actually make consistent wealth building and don't chase high percentages. You don't even really need high percentages to build wealth. Do not open yourself to large risk in hopes of equally large returns or profits. It's not necessary for you to have very much risk on your trades to make a lot of money. It's rather myopic and it's a misnomer for new traders when they come into this industry. They think they have to have a lot of money and they have to put a lot at risk to make money. Well, that's not true. And the only reason why they think that is because they're trying to make money quick, lots of money real quick. Do not assume taking small risk defined trades will not grow your account. This is one of the lessons it took a while for me to learn early on in my career. I thought I had to have a lot of risk on the trades and otherwise I wouldn't see my account grow. And that's not entirely true. Once I understood the compound interest factor, it doesn't take much time at all for your money to grow. And it doesn't matter how much you start with. You can start on a shoestring budget even as little as $100. $100 can grow exponentially over time if you submit to it. And now think if everyone would start with $100, number one, you would never be broke if you made mistakes initially. Secondly, who says that you can't add more money to it once you become more confident? See, that's the part everyone jumps ahead. They want to take everything they're willing to risk and lose, but not really lose it. And they put it in their account and they put it all in one or two trades and hopefully they get a lottery win. You don't need to do that. You don't need to do that at all. You can actually define your trades with very, very low risk in terms of total equity and then watch it compound over time. That's how you grow an account. Do not sacrifice trading equity for poor planning or lack thereof. Like I just mentioned in point number three, it's very important that you understand that there is not a necessity for large risk to build wealth. You need to have consistent parameters that will allow you good risk models for each trade with well-defined low risk parameters. The setups need to have well-defined risk, 2% ideally if you're a new trader, but no more than... 2% on an average. You don't need to have any more risk than that to build wealth. What do you need to aim for? What specific things should you be focusing on going forward if you have a small account and how to start building it up? Well, you need to determine how realistically you can anticipate a favorable reward to risk model. What does it look like? We're going to talk a little bit about that in this specific teaching. You're going to have to learn to respect the risk side of the trade setups more over the reward. Too many times, and I did this too as a new trader, we don't think about losing money because, after all, we're always going to be right. The fact that we think about the profits solely and we don't really concern ourselves or respect the fact that we could lose on every single trade. How many times have you started a trade as a new trader? Now, maybe you were nervous when you first got in it, but when you first put the trade on, greed… puts you into that trade. Greed puts you into that position where you're trying to make money. But once that transaction starts and you're in the marketplace, that greed transfers into fear. I hope I make money. What if I don't make money? See, when we first put the trade on, we're not necessarily fearful unless we're fearful of missing the move. It's greed that puts you into the trade as a new trader. But you need to learn to respect the risk side before you take that trade and execute on it. Because if you don't focus on that side, that's the part that hurts you. Nobody gets broke by taking profits, but they all go broke by taking too much risk. Identify trade setups that permit three. reward multiples to one risk or higher. It's very important and we're going to talk about specific numbers and how it's actually measurable in terms of odds. But you want to look for trade setups that have three to one payouts and for every $1 you're risking you hope to make $3. Frame good reward to risk setups to have little impact if unprofitable. Again that gets back to having very small risk. If you have very small risk, well-defined trade setups, you're never going to worry about, well, you might get a loser here and there. You might get a string of losses, but it's not going to take you out of the business. It's not going to take you out of your career of choice. You came into this industry to make money. You want to obviously change the course of your life in terms of financial fluency. And even if you're not trying to get rich, if you're just trying to have a passive income, maybe you're trying to supplement some of your bills, your monthly costs of living. You came in here with a monetary desire. So keep that in mind. You want to do this for a long time, not just get lucky for a short period of time and make a lot of money because that doesn't happen. No one does that. Forex is not the lottery. All right. The reality of reward to risk ratios. OK. What will you need to see in performance for profitability? Now everyone thinks they're going to never have a loss. When they first start out, everyone's superman, they can't go wrong. Their system's going to be the best thing since sliced bread. Don't worry about it. You'll never have a loser kid. No one starts in this industry with that as a hit the ground running. You never have any losing trades. You're going to encounter that. So when we talk about accuracy, accuracy is not even. necessary in terms of high end accuracy to make money. You don't even need high accuracy to build wealth, but you do need time. Time is the missing element and that's the secret. That's the holy grail to allow compound interest to do its magic. So my question to you is this, do you think that you're a 75% win-right trader? In other words, every trade you get in is 75% of those trades winners. If that's the case, you're winning that 75%. Thank you. That is actually very high and your ratio in terms of what you're hoping to make in terms of your risk, it's really low. You don't need to have very much in terms of risk to make $1. If you had 60%, you have even still you have less in terms of what you have to take on as risk to make $1. But when we get to 50-50, you got to start risking $1 for $1. Then at 40%, the ideal ratio would be you're trying to make $1.50 for every $1.00. To be profitable when you're only 33% accurate, ideally the minimum is you want to be looking for trades that pay you $2.00 for every $1.00 risk at 25% accuracy. Now, folks, think about this. If 75% of the trades that you take are losing trades, the minimum ratio for profitability is you have to look for trades that pay out 3 to 1. Now, think about this for a moment. If we look at the low end objective in terms of accuracy, that means 25% accurate. We're looking for trades that are going to pan out, hopefully. $3 reward for $1 risk. So if we have that scenario and we are able to take a trade and risk $1 and make $3 in return, we can be wrong 75% of the time and still be net profitable. Now think about that. If you grow in your understanding of the things I'm teaching you, say you become profitable to the degree where half of your trades are profitable. That means the ability for you to find 3 to 1 trades more than doubles. It more than doubles. So that means your accuracy grows, but your reward to risk ratio, if it just stays 3 to 1, you're going to have more trades that pay out 3 to 1. Therefore, your equity is going to increase exponentially. Now what happens when your win rate goes up above 50%? What happens if you have a 65 to 70% accuracy and you're looking still for 3 to 1 trades? Your money grows exponentially. What happens when you start looking for reward to risk ratios of $5 paid out for $1 risk and you have a 70% accuracy? Suddenly, wealth is not. that far out of reach. Now looking at an example of trading with statistics behind it, I think everyone would agree that to make a percentage increase of 50% inside of one month is actually a pretty good feat. Now I'm not advocating that everyone's going to be able to make 50% return in one month. It's not going to happen. That if we have an account that would be relatively small, I'm going to say for the benefit of an example that we're going to say $5,000 is something that everyone's able to do. Once they understand how to trade, we're going to say that everyone is willing to put $5,000 into a trading account. And you'll determine when you're going to do that. I'll never tell you when that's going to happen. You make the decision on your own. But let's say, for instance, you put $5,000 in an account and you use some of the ideas that we teach here. And you're able to find big payouts, big reward to risk. ratio trade setups. To make a 50% return on your account in one month, it doesn't take many trades to do that, but it does take highly selective setups and you have to do certain things to make this pay now. And here's the thing, once you get one or two of them in your month in terms of trades, you can now start lowering your risk to reward them. ratio trade setups if you want to stay busy. You can still do very well by adding more percentage wise on your account, but you don't need to go out there every single time looking for big payout trades. You can get bread and butter scenarios, whether it's two to one, three to one scenarios where it's easy to get these payouts. So if you started with $5,000 and You're able to find setups that do these things and that's what I did in the MyFX book for this mentorship. I show over 50% return and I didn't do many trades at all. It wasn't many trades at all that actually brought this type of return. The profit actually grows over $2,500 and that's not bad for an account that would start with $5,000. Not a whole lot of trading in the first month. That is what... is possible but not a standard. Do not expect this as a normal every single month type thing. But think about this. If you could show a 50% return just for the year, how amazing would that be if you were able to take your money and compound it where you had a return of 50% per year? That blows away every money manager's goals out there. It certainly blows away any kind of stock return, you know, IRA or anything like that. You would be outperforming every asset class that's available to you. And think about what you're able to do. You can do that in a month. If you could do that in one month looking for high payout, low risk, imagine what's available to you. This is the one that you want to pay the most attention to. And I said you have to respect this side of it because the drawdown is what will hurt you. It will hurt you psychologically and it will hurt you monetarily. So as you can see, what we're going to do. Our goal is is to have little to no drawdown now you're going to have drawdown this account will have drawdown you will see it It's not my goal to show you massive drawdown so you can see how it comes back from it The idea in this mentorship is to avoid large drawdown and obviously in one month taking ten trades I tell everybody my average goal for the week is fifty to seventy five pips a week and You can see here the average wind is 51.80 pips. And with 10 trades, a total haul of 518 pips for the month. And I think that's pretty consistent for what I'm able to do on a month-to-month basis. I don't try to do anything more than this. This is like my sweet spot for my performance. And I try not to do anything above this. Every time I try to do that, I get a King Kong feeling. And, you know, King Kong at the end of the movie, he fell off the Empire State Building and didn't live too much longer after that. So I learned that lesson as well in my trading. Alright, so what should you focus on initially? That's right, 6%. 6% of what? 6% of your equity compounding per month. Now, it doesn't sound like much. It doesn't sound sexy. It doesn't give you the willies. Well, guess what? It only takes you 20 pips per week to do it, and it only requires 1.5% risk, and it only requires 1 to 1 ratio to do it. That means if you find a trade that pays out potentially 20 pips and you can frame the trade where you're only taking 20 pips risk, guess what? That's all that's necessary. And they happen every single day. Now, I'm not advocating looking for one to one ratio trades, but I'm going to show you by example how easy it is to get that. Once your accuracy increases and you're understanding a price action, these setups are there every single trading day. Now, again, I am not. I preface it again. I am not trying to instill. an action warrior hero where you go in there and you're trying to prove to the world that you can trade every single day and get your 20 pips 40 pips or whatever you're trying to do every single day i don't think it's something that can be done consistently every single day if you do you're inviting losses and there isn't a trading day that doesn't look good initially and goes sour quickly you want to be trading in highly selective conditions and when you do that even with low you reward to risk ratios one-to-one you can still find one and a half percent return payouts per week one trade That's all you need and you're actually gonna have a little bit more than six percent But what does six percent do compounded every single month? It doubles your money every single year and I don't care what your equity size is that you start with now account with a thousand Dollars your risk per trade is going to be one and a half percent or fifteen dollars. That's it You're only risking fifteen bucks now if you lost fifteen dollars and you have a thousand dollar account Are you gonna go home and take it out on your family? No, most people wouldn't do that. And if you would, then you're probably not meant for trading. So what you'd be risking is 20 pips from your entry price and your profit would be taken at 20 pips for one and a half percent return. But here's the thing. It's easy to say this in number form. But how do we find it? Where did where did these setups occur? Well, the six percent per month setups they form. Specifically, and the easiest ones to find, are looking at your daily chart. And they make it easy to do. What is it specifically you're looking for? Well, you're going to be looking for the things that I talked about in the very first month of this mentorship. One specific is an order block. Where there's a price point at which a move quickly moves away from a level. If in this case it's movement up, we find that down candle right before the move goes higher. When price goes back down into that down candle, we have a really good probability, especially off of a daily chart, that you're going to get a 20 pip or more price swing. Now magnified and zoomed in, we can see that that order block is noted with the two arrows drawing your attention to it. We're looking at the body of the candle, which is the opening on a down candle, up to the high of that candle. And that's a fair value gap. Price, you can see, trades right back down into that level right here. And as price hits that. on that particular day, that's when you'd be looking for a trade. You'd be looking to go long there. Okay. But not just simply as it hits that level, we're going to wait for something to give us confirmation. Obviously the same thing occurs on a lower timeframe. We look for the order block. We're just going to scale down because everything in price is fractal. So we're going to highlighting specifically the 0.7512 level. Okay, so we have a one-hour chart. We're zoomed in, and you see price shows an old low right here, and below old lows, we know that there's going to be sell stops resting below there. And the price drives down below that, taking out an area of sell stops or running into a liquidity pool. But it goes specifically down into that one level that we identified on the daily chart, being 0.7512. price trades down into that level and slams right into it. Now we are in turtle soup conditions. That means a break below an old low, we could potentially expect this market to run higher. When it hits this level on an hourly chart, we can simply wait. We're going to wait for confirmations the market wants to go higher from that level. In other words, we're going to wait to see if the bank sponsors that level. If they do, we already know by looking at what we've learned in the first month, there are buy stops above these equal highs. Right above here, there's equal highs. And I'm going to ask you before I show you again, where else would you expect buy stops above the marketplace to be residing in this chart? That's right. Right there. So buy stops are above us so we can map out areas at which we can look to take our profits before we even put the trade on. That's important. You need to know where you're at in terms of risking and rewarding. Where are you going to take your profits? Where do you think the market's going to be drawn to? And why should the market react at these specific levels? So by looking at that point seven five twelve level, that's important because we know our our traders, our trade is being framed on the daily chart. It's not a five minute setup. It's based on a institutional level on a daily chart. Now, here we have the market trade up through the down candle right in here. That's the bullish order block. Price trades through it here. Once it happens, we identify the opening and the high on that candle. That's where the buy would occur. Okay. So in this area, if we use the opening on that candle, we're going to add our five pips spread to it. Okay. And build that in. You can see our order would be around. 0.7542 that would be our limit order so we would be long there. On this candle it drops down into it we would reasonably expect to see our entry to be filled at that price point. Now obviously if we're going to be long there the parameters for trading with six percent setups because our aim is to first get ourselves in sync with trying to double our money over the year not this week not this month we're trying to double our money over the year that's low hanging fruit that's easy for a new aspiring trader to grow into. It doesn't give you the pip drunk mentality. You're not trying to force a million dollars into your account right away. It's gradually adding affluency. So you're going to define your risk by saying, okay, I want to take a stop at 20 pips. Okay. And guess what that does? It puts your stop below the middle of that down candle. So you have a good risk model here and also it's framing it really well. Because we don't want to see price go down below the midpoint of that down candle again. It's already shown a willingness to drop below here and take the stop. So it wants to obviously want to go higher. If it's going to go higher, it won't come back down below the middle of that down candle or bullish order block. So our stop is at 75.22. Our entry is at 75.42. We have a 20 pip stop loss. And obviously, as soon as we get to this level here, we're already at 1 to 1. So at this point, we could be long here. Right here, we're already at. Guess what? 1.5% profit. Now once we get to 1.5% profit, does that mean we collapse the trade? We can. Absolutely we can. That's a one-to-one gearing. And we would make our 1.5% return. And it's that quick you're over. In a couple hours you're done. For the week. But what did we first start this trade with? We framed it with the buy stops up here and the buy stops up here. So when price goes to our first profit, we can start taking our risk. and reducing it taking some of it off in fact we could probably do this we could take half the position off and guess what will do will make.75 percent return on the trade once it gets to this level here right up here that's first objective so now we've already banked.75 or three quarters of one percent and we're allowing the price to expand up to another level so now guess what soon as we get to this level here we're back at one and a half percent We made another profit objective here at a multiple of 2. So now we're at 1.5% again, but we've already banked 3 quarters of 1%. Now, mind you, the 1.5% is open profit. It's paper still. It hasn't been realized yet. But have we reached into the buy stops yet? No. We have not seen anything in terms of these buy stops over here being reached into or swept. Guess what happens? Multiple 3 comes in here. Now we've added another 20 pips of profit and we cleared out the stops. We can take another portion of our position off. We can take a quarter of it off. We can take a half of it off. Whatever it is that you want to do, I'm not giving you any structure yet, but I want you to think about paying yourself right here. Okay? And you would have done well over what would be necessary to make 1.5% return. And you graduated your ex- exits based on logical areas of where price should reach. At this point here after your second multiple is reached your stop needs to be at break-even. So you'd be down here at your entry. So now you would have right now no way for that to take you out below your entry point. Okay, and you've already banked a position in the position that you've scaled out some. And obviously multiple 4 is hit. Gets real close to where our buy stops are so we would reasonably expect this to do what? Maybe consolidate, maybe retrace a little bit. but still reach for another area of liquidity above these equal highs over here. And then ultimately we get a multiple of five. It clears out the buy stops over here. And guess what? I'll leave you to study this in terms of how many opportunities you could have done in terms of scaling. If you would have kept took off half the position at multiple of one. In other words, if you made 20 pips, if you've taken half of it off. and you let the remaining half run all the way up to get these stops, how much money would that be? How much percentage would that be? What would that do for your account? What if you took off one quarter of it here at 20% and let the remaining balance run? What if you took off three quarters of it off here and left one quarter of the position to run? All of these things are for your study. And it's important that you do this because I want you to think about what is available to you. This is only one setup framed on a daily chart and it was aiming for what? Buy stops we've already identified. Those buy stops were reached into right there. Everything that was shown to you in month one was used here in illustrative purpose. So now you can see how easy it is to get that. one and a half percent return a week and you don't need to get it in the full shot where you get in and you get out all full in all full out in terms of entry and exit full position on full position off you can graduate your your position profits and scale them out logical levels and still allow your little bit of a portion of the position to pay out amazingly think about this let's say you took off half the position here okay so you have 0.75 or three quarters of a percent. So now here you got a three quarters of one percent again. You have one and a half percent. Here's three percent return just on the second half. Now think about that. You made three and a half percent on the second half plus three quarters of one percent. So you're over four percent just in that trade with graduating it and just scaling it out. Now what if you did that every single week? Now how about this? What if you did it twice a week? What happens if you do it three times a week? How much does your money grow if you trade like this? Everything is organized. Everything is specifically designed. You only execute with one specific task in mind. You buy at specific levels. You sell at specific levels. You trail your stop only when specific levels are reached for. We're going to give you all these things. But think about this. This is a five to one setup. This is what a one shot, one kill looks like. And it's framed on a daily level. It's going to give you institutional sponsorship. There should be a willingness to see price rally down here. Why? Because it's off of a daily order block. The banks trade off of daily levels. So I hope you enjoyed this teaching. The next two will be actually giving you more detail about trade ideas and scenarios like this. So that way you can. You build your understanding about how you can build your equity and grow it from even a small account. And again, if we started with $1,000, okay, $1,000 becomes over $2,000 after 12 months. And I know some of you don't think that's great. But guess what that does in 10 years if you stick to it and never add another penny out of your pocket? It's over $1 million. And my question is, where are you going to be 10 years from now if you have $1,000 in your hands right now? Will you have $1 million 10 years from now? you got no excuse not to now until next time wish you good luck and good trading

Before we start, obviously we need to know what it is that we need to avoid. The first thing you need to do is do not try to rush to make massive gains in either pips or percent returns. I can tell you I fell victim to this as a new trader.

I went in thinking I can get rich really, really quick as a trader after I started seeing how fast profits can come. It kind of makes you think that it's like the lottery every single time you sit in front of your computer, and it's not the case. So as a new trader, the first thing you want to do is kind of suppress that desire to try to chase massive gains. And it's either in a total number of pips because it seems like it's a trophy thing to tout that on the Internet or on forum or mediums like Twitter or… Instagram and Facebook.

It's not important how many pips you have and it's not important how much money you make. It's the percent returns to actually make consistent wealth building and don't chase high percentages. You don't even really need high percentages to build wealth.

Do not open yourself to large risk in hopes of equally large returns or profits. It's not necessary for you to have very much risk on your trades to make a lot of money. It's rather myopic and it's a misnomer for new traders when they come into this industry. They think they have to have a lot of money and they have to put a lot at risk to make money. Well, that's not true.

And the only reason why they think that is because they're trying to make money quick, lots of money real quick. Do not assume taking small risk defined trades will not grow your account. This is one of the lessons it took a while for me to learn early on in my career.

I thought I had to have a lot of risk on the trades and otherwise I wouldn't see my account grow. And that's not entirely true. Once I understood the compound interest factor, it doesn't take much time at all for your money to grow. And it doesn't matter how much you start with.

You can start on a shoestring budget even as little as $100. $100 can grow exponentially over time if you submit to it. And now think if everyone would start with $100, number one, you would never be broke if you made mistakes initially.

Secondly, who says that you can't add more money to it once you become more confident? See, that's the part everyone jumps ahead. They want to take everything they're willing to risk and lose, but not really lose it.

And they put it in their account and they put it all in one or two trades and hopefully they get a lottery win. You don't need to do that. You don't need to do that at all. You can actually define your trades with very, very low risk in terms of total equity and then watch it compound over time. That's how you grow an account.

Do not sacrifice trading equity for poor planning or lack thereof. Like I just mentioned in point number three, it's very important that you understand that there is not a necessity for large risk to build wealth. You need to have consistent parameters that will allow you good risk models for each trade with well-defined low risk parameters.

The setups need to have well-defined risk, 2% ideally if you're a new trader, but no more than... 2% on an average. You don't need to have any more risk than that to build wealth. What do you need to aim for? What specific things should you be focusing on going forward if you have a small account and how to start building it up?

Well, you need to determine how realistically you can anticipate a favorable reward to risk model. What does it look like? We're going to talk a little bit about that in this specific teaching.

You're going to have to learn to respect the risk side of the trade setups more over the reward. Too many times, and I did this too as a new trader, we don't think about losing money because, after all, we're always going to be right. The fact that we think about the profits solely and we don't really concern ourselves or respect the fact that we could lose on every single trade.

How many times have you started a trade as a new trader? Now, maybe you were nervous when you first got in it, but when you first put the trade on, greed… puts you into that trade. Greed puts you into that position where you're trying to make money.

But once that transaction starts and you're in the marketplace, that greed transfers into fear. I hope I make money. What if I don't make money?

See, when we first put the trade on, we're not necessarily fearful unless we're fearful of missing the move. It's greed that puts you into the trade as a new trader. But you need to learn to respect the risk side before you take that trade and execute on it. Because if you don't focus on that side, that's the part that hurts you.

Nobody gets broke by taking profits, but they all go broke by taking too much risk. Identify trade setups that permit three. reward multiples to one risk or higher.

It's very important and we're going to talk about specific numbers and how it's actually measurable in terms of odds. But you want to look for trade setups that have three to one payouts and for every $1 you're risking you hope to make $3. Frame good reward to risk setups to have little impact if unprofitable.

Again that gets back to having very small risk. If you have very small risk, well-defined trade setups, you're never going to worry about, well, you might get a loser here and there. You might get a string of losses, but it's not going to take you out of the business. It's not going to take you out of your career of choice. You came into this industry to make money.

You want to obviously change the course of your life in terms of financial fluency. And even if you're not trying to get rich, if you're just trying to have a passive income, maybe you're trying to supplement some of your bills, your monthly costs of living. You came in here with a monetary desire.

So keep that in mind. You want to do this for a long time, not just get lucky for a short period of time and make a lot of money because that doesn't happen. No one does that.

Forex is not the lottery. All right. The reality of reward to risk ratios. OK.

What will you need to see in performance for profitability? Now everyone thinks they're going to never have a loss. When they first start out, everyone's superman, they can't go wrong. Their system's going to be the best thing since sliced bread. Don't worry about it.

You'll never have a loser kid. No one starts in this industry with that as a hit the ground running. You never have any losing trades.

You're going to encounter that. So when we talk about accuracy, accuracy is not even. necessary in terms of high end accuracy to make money.

You don't even need high accuracy to build wealth, but you do need time. Time is the missing element and that's the secret. That's the holy grail to allow compound interest to do its magic.

So my question to you is this, do you think that you're a 75% win-right trader? In other words, every trade you get in is 75% of those trades winners. If that's the case, you're winning that 75%. Thank you. That is actually very high and your ratio in terms of what you're hoping to make in terms of your risk, it's really low.

You don't need to have very much in terms of risk to make $1. If you had 60%, you have even still you have less in terms of what you have to take on as risk to make $1. But when we get to 50-50, you got to start risking $1 for $1.

Then at 40%, the ideal ratio would be you're trying to make $1.50 for every $1.00. To be profitable when you're only 33% accurate, ideally the minimum is you want to be looking for trades that pay you $2.00 for every $1.00 risk at 25% accuracy. Now, folks, think about this.

If 75% of the trades that you take are losing trades, the minimum ratio for profitability is you have to look for trades that pay out 3 to 1. Now, think about this for a moment. If we look at the low end objective in terms of accuracy, that means 25% accurate. We're looking for trades that are going to pan out, hopefully.

$3 reward for $1 risk. So if we have that scenario and we are able to take a trade and risk $1 and make $3 in return, we can be wrong 75% of the time and still be net profitable. Now think about that. If you grow in your understanding of the things I'm teaching you, say you become profitable to the degree where half of your trades are profitable.

That means the ability for you to find 3 to 1 trades more than doubles. It more than doubles. So that means your accuracy grows, but your reward to risk ratio, if it just stays 3 to 1, you're going to have more trades that pay out 3 to 1. Therefore, your equity is going to increase exponentially.

Now what happens when your win rate goes up above 50%? What happens if you have a 65 to 70% accuracy and you're looking still for 3 to 1 trades? Your money grows exponentially.

What happens when you start looking for reward to risk ratios of $5 paid out for $1 risk and you have a 70% accuracy? Suddenly, wealth is not. that far out of reach. Now looking at an example of trading with statistics behind it, I think everyone would agree that to make a percentage increase of 50% inside of one month is actually a pretty good feat.

Now I'm not advocating that everyone's going to be able to make 50% return in one month. It's not going to happen. That if we have an account that would be relatively small, I'm going to say for the benefit of an example that we're going to say $5,000 is something that everyone's able to do.

Once they understand how to trade, we're going to say that everyone is willing to put $5,000 into a trading account. And you'll determine when you're going to do that. I'll never tell you when that's going to happen. You make the decision on your own.

But let's say, for instance, you put $5,000 in an account and you use some of the ideas that we teach here. And you're able to find big payouts, big reward to risk. ratio trade setups. To make a 50% return on your account in one month, it doesn't take many trades to do that, but it does take highly selective setups and you have to do certain things to make this pay now. And here's the thing, once you get one or two of them in your month in terms of trades, you can now start lowering your risk to reward them.

ratio trade setups if you want to stay busy. You can still do very well by adding more percentage wise on your account, but you don't need to go out there every single time looking for big payout trades. You can get bread and butter scenarios, whether it's two to one, three to one scenarios where it's easy to get these payouts.

So if you started with $5,000 and You're able to find setups that do these things and that's what I did in the MyFX book for this mentorship. I show over 50% return and I didn't do many trades at all. It wasn't many trades at all that actually brought this type of return. The profit actually grows over $2,500 and that's not bad for an account that would start with $5,000.

Not a whole lot of trading in the first month. That is what... is possible but not a standard. Do not expect this as a normal every single month type thing.

But think about this. If you could show a 50% return just for the year, how amazing would that be if you were able to take your money and compound it where you had a return of 50% per year? That blows away every money manager's goals out there.

It certainly blows away any kind of stock return, you know, IRA or anything like that. You would be outperforming every asset class that's available to you. And think about what you're able to do.

You can do that in a month. If you could do that in one month looking for high payout, low risk, imagine what's available to you. This is the one that you want to pay the most attention to.

And I said you have to respect this side of it because the drawdown is what will hurt you. It will hurt you psychologically and it will hurt you monetarily. So as you can see, what we're going to do.

Our goal is is to have little to no drawdown now you're going to have drawdown this account will have drawdown you will see it It's not my goal to show you massive drawdown so you can see how it comes back from it The idea in this mentorship is to avoid large drawdown and obviously in one month taking ten trades I tell everybody my average goal for the week is fifty to seventy five pips a week and You can see here the average wind is 51.80 pips. And with 10 trades, a total haul of 518 pips for the month. And I think that's pretty consistent for what I'm able to do on a month-to-month basis.

I don't try to do anything more than this. This is like my sweet spot for my performance. And I try not to do anything above this. Every time I try to do that, I get a King Kong feeling. And, you know, King Kong at the end of the movie, he fell off the Empire State Building and didn't live too much longer after that.

So I learned that lesson as well in my trading. Alright, so what should you focus on initially? That's right, 6%.

6% of what? 6% of your equity compounding per month. Now, it doesn't sound like much. It doesn't sound sexy. It doesn't give you the willies.

Well, guess what? It only takes you 20 pips per week to do it, and it only requires 1.5% risk, and it only requires 1 to 1 ratio to do it. That means if you find a trade that pays out potentially 20 pips and you can frame the trade where you're only taking 20 pips risk, guess what?

That's all that's necessary. And they happen every single day. Now, I'm not advocating looking for one to one ratio trades, but I'm going to show you by example how easy it is to get that. Once your accuracy increases and you're understanding a price action, these setups are there every single trading day.

Now, again, I am not. I preface it again. I am not trying to instill. an action warrior hero where you go in there and you're trying to prove to the world that you can trade every single day and get your 20 pips 40 pips or whatever you're trying to do every single day i don't think it's something that can be done consistently every single day if you do you're inviting losses and there isn't a trading day that doesn't look good initially and goes sour quickly you want to be trading in highly selective conditions and when you do that even with low you reward to risk ratios one-to-one you can still find one and a half percent return payouts per week one trade That's all you need and you're actually gonna have a little bit more than six percent But what does six percent do compounded every single month? It doubles your money every single year and I don't care what your equity size is that you start with now account with a thousand Dollars your risk per trade is going to be one and a half percent or fifteen dollars.

That's it You're only risking fifteen bucks now if you lost fifteen dollars and you have a thousand dollar account Are you gonna go home and take it out on your family? No, most people wouldn't do that. And if you would, then you're probably not meant for trading. So what you'd be risking is 20 pips from your entry price and your profit would be taken at 20 pips for one and a half percent return. But here's the thing.

It's easy to say this in number form. But how do we find it? Where did where did these setups occur?

Well, the six percent per month setups they form. Specifically, and the easiest ones to find, are looking at your daily chart. And they make it easy to do.

What is it specifically you're looking for? Well, you're going to be looking for the things that I talked about in the very first month of this mentorship. One specific is an order block. Where there's a price point at which a move quickly moves away from a level. If in this case it's movement up, we find that down candle right before the move goes higher.

When price goes back down into that down candle, we have a really good probability, especially off of a daily chart, that you're going to get a 20 pip or more price swing. Now magnified and zoomed in, we can see that that order block is noted with the two arrows drawing your attention to it. We're looking at the body of the candle, which is the opening on a down candle, up to the high of that candle. And that's a fair value gap.

Price, you can see, trades right back down into that level right here. And as price hits that. on that particular day, that's when you'd be looking for a trade. You'd be looking to go long there. Okay.

But not just simply as it hits that level, we're going to wait for something to give us confirmation. Obviously the same thing occurs on a lower timeframe. We look for the order block. We're just going to scale down because everything in price is fractal. So we're going to highlighting specifically the 0.7512 level.

Okay, so we have a one-hour chart. We're zoomed in, and you see price shows an old low right here, and below old lows, we know that there's going to be sell stops resting below there. And the price drives down below that, taking out an area of sell stops or running into a liquidity pool.

But it goes specifically down into that one level that we identified on the daily chart, being 0.7512. price trades down into that level and slams right into it. Now we are in turtle soup conditions.

That means a break below an old low, we could potentially expect this market to run higher. When it hits this level on an hourly chart, we can simply wait. We're going to wait for confirmations the market wants to go higher from that level.

In other words, we're going to wait to see if the bank sponsors that level. If they do, we already know by looking at what we've learned in the first month, there are buy stops above these equal highs. Right above here, there's equal highs. And I'm going to ask you before I show you again, where else would you expect buy stops above the marketplace to be residing in this chart? That's right.

Right there. So buy stops are above us so we can map out areas at which we can look to take our profits before we even put the trade on. That's important.

You need to know where you're at in terms of risking and rewarding. Where are you going to take your profits? Where do you think the market's going to be drawn to? And why should the market react at these specific levels? So by looking at that point seven five twelve level, that's important because we know our our traders, our trade is being framed on the daily chart.

It's not a five minute setup. It's based on a institutional level on a daily chart. Now, here we have the market trade up through the down candle right in here. That's the bullish order block.

Price trades through it here. Once it happens, we identify the opening and the high on that candle. That's where the buy would occur. Okay. So in this area, if we use the opening on that candle, we're going to add our five pips spread to it.

Okay. And build that in. You can see our order would be around. 0.7542 that would be our limit order so we would be long there.

On this candle it drops down into it we would reasonably expect to see our entry to be filled at that price point. Now obviously if we're going to be long there the parameters for trading with six percent setups because our aim is to first get ourselves in sync with trying to double our money over the year not this week not this month we're trying to double our money over the year that's low hanging fruit that's easy for a new aspiring trader to grow into. It doesn't give you the pip drunk mentality. You're not trying to force a million dollars into your account right away.

It's gradually adding affluency. So you're going to define your risk by saying, okay, I want to take a stop at 20 pips. Okay.

And guess what that does? It puts your stop below the middle of that down candle. So you have a good risk model here and also it's framing it really well. Because we don't want to see price go down below the midpoint of that down candle again. It's already shown a willingness to drop below here and take the stop.

So it wants to obviously want to go higher. If it's going to go higher, it won't come back down below the middle of that down candle or bullish order block. So our stop is at 75.22. Our entry is at 75.42.

We have a 20 pip stop loss. And obviously, as soon as we get to this level here, we're already at 1 to 1. So at this point, we could be long here. Right here, we're already at. Guess what? 1.5% profit.

Now once we get to 1.5% profit, does that mean we collapse the trade? We can. Absolutely we can.

That's a one-to-one gearing. And we would make our 1.5% return. And it's that quick you're over. In a couple hours you're done. For the week.

But what did we first start this trade with? We framed it with the buy stops up here and the buy stops up here. So when price goes to our first profit, we can start taking our risk.

and reducing it taking some of it off in fact we could probably do this we could take half the position off and guess what will do will make.75 percent return on the trade once it gets to this level here right up here that's first objective so now we've already banked.75 or three quarters of one percent and we're allowing the price to expand up to another level so now guess what soon as we get to this level here we're back at one and a half percent We made another profit objective here at a multiple of 2. So now we're at 1.5% again, but we've already banked 3 quarters of 1%. Now, mind you, the 1.5% is open profit. It's paper still. It hasn't been realized yet.

But have we reached into the buy stops yet? No. We have not seen anything in terms of these buy stops over here being reached into or swept. Guess what happens? Multiple 3 comes in here.

Now we've added another 20 pips of profit and we cleared out the stops. We can take another portion of our position off. We can take a quarter of it off. We can take a half of it off.

Whatever it is that you want to do, I'm not giving you any structure yet, but I want you to think about paying yourself right here. Okay? And you would have done well over what would be necessary to make 1.5% return. And you graduated your ex- exits based on logical areas of where price should reach.

At this point here after your second multiple is reached your stop needs to be at break-even. So you'd be down here at your entry. So now you would have right now no way for that to take you out below your entry point.

Okay, and you've already banked a position in the position that you've scaled out some. And obviously multiple 4 is hit. Gets real close to where our buy stops are so we would reasonably expect this to do what?

Maybe consolidate, maybe retrace a little bit. but still reach for another area of liquidity above these equal highs over here. And then ultimately we get a multiple of five. It clears out the buy stops over here.

And guess what? I'll leave you to study this in terms of how many opportunities you could have done in terms of scaling. If you would have kept took off half the position at multiple of one. In other words, if you made 20 pips, if you've taken half of it off.

and you let the remaining half run all the way up to get these stops, how much money would that be? How much percentage would that be? What would that do for your account? What if you took off one quarter of it here at 20% and let the remaining balance run?

What if you took off three quarters of it off here and left one quarter of the position to run? All of these things are for your study. And it's important that you do this because I want you to think about what is available to you.

This is only one setup framed on a daily chart and it was aiming for what? Buy stops we've already identified. Those buy stops were reached into right there. Everything that was shown to you in month one was used here in illustrative purpose. So now you can see how easy it is to get that.

one and a half percent return a week and you don't need to get it in the full shot where you get in and you get out all full in all full out in terms of entry and exit full position on full position off you can graduate your your position profits and scale them out logical levels and still allow your little bit of a portion of the position to pay out amazingly think about this let's say you took off half the position here okay so you have 0.75 or three quarters of a percent. So now here you got a three quarters of one percent again. You have one and a half percent. Here's three percent return just on the second half. Now think about that.

You made three and a half percent on the second half plus three quarters of one percent. So you're over four percent just in that trade with graduating it and just scaling it out. Now what if you did that every single week?

Now how about this? What if you did it twice a week? What happens if you do it three times a week?

How much does your money grow if you trade like this? Everything is organized. Everything is specifically designed.

You only execute with one specific task in mind. You buy at specific levels. You sell at specific levels.

You trail your stop only when specific levels are reached for. We're going to give you all these things. But think about this. This is a five to one setup. This is what a one shot, one kill looks like.

And it's framed on a daily level. It's going to give you institutional sponsorship. There should be a willingness to see price rally down here.

Why? Because it's off of a daily order block. The banks trade off of daily levels. So I hope you enjoyed this teaching. The next two will be actually giving you more detail about trade ideas and scenarios like this.

So that way you can. You build your understanding about how you can build your equity and grow it from even a small account. And again, if we started with $1,000, okay, $1,000 becomes over $2,000 after 12 months.

And I know some of you don't think that's great. But guess what that does in 10 years if you stick to it and never add another penny out of your pocket? It's over $1 million. And my question is, where are you going to be 10 years from now if you have $1,000 in your hands right now? Will you have $1 million 10 years from now?

you got no excuse not to now until next time wish you good luck and good trading

Transcript for:Strategies for Growing Small Trading Accounts

Transcript for:
Strategies for Growing Small Trading Accounts