/ Trading: How to Double Profits

"I'll tell you how to get rich. Close your doors. Be afraid when others are greedy. Be greedy when others are afraid" - Warren Buffett.

After reading this article, you will know how to:

• Double your profits;
• How to properly clean up losses;
• What technical and psychological mistakes to clean up
• Answers to Frequent Questions.

Important warning

We want to warn you right away: reading the paragraph headings, some of the advice may seem obvious to you, but this is only at first glance. We strongly recommend that you read the entirety of what it says.

How to be guaranteed to lose 90-100% of your capital

One possible approach is to identify a single event to put your entire account at risk and try to make an equivalent profit. A straight 1:1 risk trade for a certain number of pips has the potential to double your forex account in a single trade.

For example, by risking 50 pips, you could potentially gain 50 pips, where a risk of 50 pips is equal to the value of the account and a profit of 50 pips means doubling your account.

Initially, you should calculate the cost per pip by dividing your account balance by 50 pips. Suppose your account balance is $500, then the cost per pip would be $500 / 50 pips = $10 per pip. Trading at $10 per pip is similar to working with one standard lot in Forex, and with this account size you can use leverage of at least 1:200.

However, not everyone has access to this level of leverage, and practically speaking, a portion of the account will serve as margin to start trading. In addition, there is a margin stop-out threshold. As a rule, brokers set it at 30% of the margin used, preventing you from risking the entire account. Consequently, the risk to profit ratio will be less than 1:1, as the trade will be completed before an unfavorable price movement of 50 pips occurs.

Get rid of the illusion of your own infallibility

First of all, you must realize all the rules by which you operate in Forex and the principles of money management. It is impossible to double your profits or even just significantly improve your results with a poor understanding of your strategy. Why is this so? You can double your profits or improve your results in many ways. One way is to reduce losses. You can't reduce your losses without understanding the causes of the mistakes that are causing your losses.

If you think your losses are normal, you are right, but by 50%. It is indeed impossible to make correct and profitable decisions all the time. The right decision does not necessarily lead to profit. You can take into account all the information that is available, make the right conclusions, be logical and sober thinking, but still make a losing decision because not all the necessary information was in the public domain or you were not aware of it. But agree that even if you periodically act perfectly as described above, you still suffer losses not only because of the reason described above.

You suffer losses because you make mistakes at different stages of decision making. We hope that we have changed your mind and you are no longer under the illusion of your own infallibility, which, according to our observations, is experienced by 90-95% of beginners and even advanced traders.

The most common causes of losses due to incorrect application of technical analysis

The most common mistakes when applying technical analysis are:

• Isolation from fundamental factors;
• Using technical indication alone;
• Ignoring the trend;
• Overoptimization of strategies.

Now let's analyze each point in more detail. Technical analysis focuses on prices and trading volumes, but often traders forget to take into account fundamental factors such as economic news, political events and other macroeconomic data. Ignoring this plane is simply unacceptable. Sometimes there are situations when technical indicators point to one option and fundamental indicators point to another. In the end, the second one will turn out to be correct. Technical indicators are not the truth of the last instance.

Many traders focus only on one technical indication, such as the moving average or MACD, without considering other factors.

Another common mistake is over-optimization. Traders over-optimize their strategies for historical data, which can lead to the inapplicability of these strategies in real markets due to changing conditions.

To double your profits you should not chase profits

This advice will sound like a paradox to many, but doubling profits is not a process that will take one day. Now let's face it: if you're going to try to double your profits in one day, then you're using a strategy that is unsustainable even from a medium-term perspective, much less from a long-term perspective. In the title of this article we promise you a guaranteed doubling of your profits, but this will only happen if you take the necessary steps, including working on your discipline. If you don't, you are guaranteed to lose all your money rather than double your profits.

Conclusions

There are no foolproof ways to double your capital or profits in a matter of days. However, if you are patient and take a number of measures, you can guarantee to get the promised result. Fortunately, there are tried-and-true methods. It is necessary to find points of growth and more opportunities to enter the market, as well as to reduce losses.

FaQ

Question: What is the best way to double profits?
Answer: The best way is to avoid all typical mistakes in technical analysis and improve your knowledge of fundamental analysis.

Question: In what terms can I achieve the promised result?
Answer: Of course, each case is unique. However, based on our experience in trading school, we can say that beginners can achieve the goal in 1-2 months. Advanced traders will need more time.

Question: What mistakes can I make on the way to achieving my goal?
Answer: The deadly mistakes in this business are greed and desire to get everything at once.