How To Make Money Trading, Even When You're Losing

How to Make Money Trading, Even When You’re Losing

Is this even possible?

Can a trader actually be profitable with a 20% winning ratio?

In this video I’m going to show you how I still make money even when I have multiple losing trades.

There’s a key to success with this method: keeping your losses small!

Many traders lose money because they fail to manage their losing trades. The reality is that one profitable trade can make up for the losses of multiple losing trades, and vice versa.

In order to accomplish this, you need to have a good trading plan.

When a trade reverses on me, how do I know when to get out? That’s pretty easy.

I stick to my trading plan and let the stop-loss do the work for me.

Is it possible that the trade will have a retracement and be profitable again? Of course!!

But I always stick to my trading plan.

In my trading plan I have 3 exit strategies when a trade goes south:
1. The stop loss is triggered.
2. The profit target is reached.
3. A Change of directions from indicators.

What is my exit test for number 3?
If I have one indicator that shows the price turning around, I use this as a warning.
If I have two indicators showing a reversal, I’m getting out of the trade completely.

In this account I never put more than 2% ($400) of the total account value ($20,000) in any one trade. This means when I have a losing trade and it’s managed correctly, it’s easy to recover from.

As you can see in this new account I have 19 trades in total and 5 of them were unprofitable. Because I managed those trades using stop-losses, the total loss was less than 5% of the entire account. I was able to break even with ONE profitable trade (and I even took profits early)

When you enter any trade, you must know exactly how much money you’re willing to risk, what your entry point is, and what your exit point is.

You see, trading can be simple and it doesn’t have to be rocket science!

In order to be profitable you really only need 3 things.

Number 1: A good strategy. I use my strategy (The PowerX Strategy) and always stick to it.

Number 3: And finally you need the right mindset and confidence is key. I use PowerX Optimizer to give me the confidence I need to find and execute the right trades. This tool has given me the confidence to need find and execute profitable trades.

If you apply all of these basic concepts into your trading strategy, you can make money, even when you’re losing.

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#StockMarket #OptionsTrading
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[rikkardomaizza]

how do You manage commissions? Do You calculate it in the stop loss before starting to trade?