On some days of course, that trade would be stopped out at -2 points and the trader would have to try again 3 times until he gets his one point, but, by experience, that will rarely happen, it will usually give +1 before going to -2, provided the trader has an edge that he knows is a high odds setup.
So, let's see how far a trader could go in just a couple of months starting with only US$ 5,000.
He will have to set targets that when reached he will double the size he trades, he will start trading with a single lot, see below how that might work:
1st target at US$ 7,000, each point on ES is worth US$ 50.00, so to reach his 1st target he will need to make 40 points (40 trades), that would take him 40 trading days or 2 months.
Why would his initial target be a US$ 2,000 profit? Because by doing that when he doubles the size he trades he would have to be stopped out 10 times in a row to give all his profits back, and that would be really difficult to happen if he is trading with an edge, a system that would allow him to achieve his targets with consistency.
So now he'd be trading 2 lots...
In order to double the size once again he'd need to achieve US$ 11,000 this time, so that would he'd have a US$ 4,000 profit allowing him to lose 10 times in a row in his next phase trading with 4 lots.
By the end of the 2nd phase he would have already doubled his account making it start to be really interesting.
Let's see the projection on his next targets and sizes, the idea is to reach a level to give him the freedom to live exclusively from trading, a dream many traders have but are struggling to get there for not having a clear plan, they try to make huge profits in the beginning and end up losing a big part of their account if not all of it many times.
So with this simple strategy you could be sure to achieve a level that would truly change the way you'd trade and live, it's just a matter time, patience and discipline to follow the rules, see the table below:
3rd phase: US$ 11,000- trading size now: 4 lots, next target to double size again US$ 19,000
4th phase: US$ 19,000- trading size now: 8 lots, next target to double size again US$ 35,000
5th phase: US$ 35,000- trading size now: 16 lots, next target to double size again US$ 67,000
6th phase: US$ 67,000- trading size now: 32 lots, next target to double size again US$ 131,000
Now a trader could start living a reasonable comfortable life exclusively from trading, imagine how fast he could go if he could make 2 points a day instead?
If you don't have your own trading system, use someone else's proven methodology, ours is one of them, click on the link below to see how it works:
Diamond Setups, the only edge you need, click here: www.diamondsetups.com
In our trading room I make calls and comment, during the whole trading day, showing what the possibilities are on every key level the market touches, that helps a lot to trade the strategy described above or anyway you decide to trade.
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