You are no doubt aware of the fact that confidence in your trading ideas and systems is one of the most important factors for successful traders, but how can you build your trading confidence early on to get off to a flying start?
You have to reduce your trading size, cut back and ‘get small'. Your focus has to be on the bigger picture of your trading system which means a focus on execution and gaining points (or pips) each month.
Dollars in the door is the last place you want to focus your attention because it means you are overlooking the most critical factor, which is that everything you do in the markets is scalable. Scalable means what you can achieve at $1 per point, can also be achieved at $25 per point with no more effort, hence your focus has to be on points or pips (Forex) when starting out.
Want to make $2,000 per month from your trading? Focus on the points. Let's say you are trading the Aussie SPI Index CFD. By trading as little as $1 per point, you should set a target of say 200 points per month, which works out to be about 10 points per trading day.
Let's say your focus pays off and over a 6 month period you have 1 outstanding month, 2 losing months and 3 solid months and your results average out to 200 points per month. How much confidence would you now have in your trading ideas and methodologies?
There is no doubt by averaging 200 points for 6 straight months your confidence in your system will be running high, especially as you had a bigger picture view and knew your trading was scalable. So your measly $1 per point trading system, averaging $200 per month, is now ready to be scaled up. Depending on your comfort zone and your risk and money management plan, you might go from $1 per point to $5 per point.
“One of the great advantages of CFDs when
trading Forex, Indices or Commodities, is the
ability to trade in small and flexible sizes.”
Once your comfort and financial position allows, you can move from $5 per point to $10 and then perhaps even higher. Same system, same strategies, except now you are making an average of 200 points per month at $10 per point which equals the tidy sum of $2,000.
We've finalised an exclusive deal that will allow you to test your ideas and strategies with a $500 safety net so you can build your trading confidence.
Full details are offered here but essentially you get to open an account with Capital CFDs and any losses incurred, over a 10 day period, will be reimbursed back to your account. If you lose $325, then $325 will be reimbursed and credited back to your account. Terms and conditions apply so click on the link below for more details.
Take advantage of a $500 safety net. Find out more.