Your trading falls apart for one undeniable reason.
You want it all… and you want it right away.
Believe me, I was no exception — I wanted to own every market…conquer everything from trading penny stocks to futures options.
It led me down a path of self-destruction… within a matter of months, I blew up trading accounts.
I knew I couldn’t continue to live my life like that… just setting my money ablaze and watching it burn into ashes.
So I decided to be honest with myself. And kick my ego to the curb. If I were to have any type of success, I knew that I would have to narrow my focus to just a few setups and stock symbols.
But it wasn’t until I met Jason Bond that my “luck” turned around.
This guy was just making money left and right… and I was in awe. The one thing that caught my eye was that he was doing it just trading off a couple of simple chart patterns.
So I used the same approach, I found something that works for me… and I simplified my trading down to just one setup — the strategy that’s helped me dig myself out of a $40K hole… and become a multimillionaire.
I know this setup more intimately than some of my children.
And you know what else?
I’ve developed a way to rake in 100% returns consistently…it’s so simple and easy that I have to share it with you.
Follow the trend
Have you ever watched Salmon swim upstream?
They fight viciously against the current to reach their spawning ground.
That right there…that’s a picture of far too many traders.
And I get it. Nothing feels better than claiming to pick off the top or bottom in a market.
But let me tell you something right now…
Few traders consistently make a living that way.
I’m not saying that it can’t be done.
What I am saying is there is a much easier way to trade.
You just go with the flow baby!
I mean, which chart do you think is easier to trade: The AAPL or the JNJ charts below?
AAPL hourly chart
JNJ hourly chart
Trading with the trend strategically changed my performance more than any other single technical tool.
Look, plenty of traders poo-poo this style. They look at it as ‘break-out’ trading.
Guess what – they’re right.
Only accept your entry
In terms of trade management, your entries dictate your win rate.
Consider a recent trade I made with TSLA.
Most of us know that Tesla reported a profit that caught everyone by surprise.
The stock shot up overnight but came back in a touch.
I sent the following email out to members of Weekly Money Multiplier before the market opened on Monday.
Let’s dig into what I noted on the chart.
First, I laid out my entire trading plan.
I wanted to enter the trade at $313, exit below $310, and target $340.
Consider the ratios here.
I had a potential loss of $3. My max profit was $30.
So I’m risking $3 to make $30…10x the amount!
But imagine that my entry was $325. All of a sudden, the trade changes.
Now I’m faced with a risk of $15 and a max profit of $15.
Risking $1 to make $1 is a heck of a lot worse than risking $1 to make $10.
Not all the trades I take will give me such wide gaps between the risk and reward.
However, consider a basic Fibonacci retracement.
TSLA hourly chart
We all know that if I bought at the 50% line, with a target of 100%, my risk to reward is one to one.
But what happens if I buy up at the 61.8% line?
Now my risk is 61.8 to 38.2 or 1.62 to 1.
That’s a much different prospect.
In the first case, I only need to win 50% of the time to break even. But, in the second case I need to win 61.8% of the time.
Every change you make in your entry price alters the risk/reward and the potential outcome.
I’m not saying that you should always buy down near the stop.
What I am saying is you need to ensure that whatever strategy you choose considers this ratio.
And, the better you make this ratio with your setup, the more explosive your wins.
Look for price compression
One of the keys to my TPS trading system looks for a ‘squeeze.’
A squeeze for me comes when the Bollinger Bands trade inside the Keltner channel.
More simply, it defines when the range price is trading begins to get smaller and smaller.
It may seem obvious, but you only have one of two places to go out of a consolidation: up or down.
Yes, price can stay in a range for a very long time.
That’s where the trend comes into play.
The trend narrows down my focus to stocks that are more likely to break out of their range and resume the trend.
Squeezes tell me when to enter the trade.
The best trade taken at the wrong time is another form of losing.
I play options for their leverage. But, I accept they lose their value over time.
That’s why timing is so critical for my trading strategy.
I cannot wait for trades to take too long to play out. Otherwise, I go broke.
The TSLA trade highlights all these characteristics coming together.
My risk-reward gave me a fantastic payout potential. Everything else aligned with my TPS setup.
The results speak for themselves.
If you’re interested in learning more about my TPS strategy and Weekly Money Multiplier, click the link below.
Source: WeeklyMoneyMultiplier.com | Original Link