In part 1, we looked at what you need to prepare to make money fast in trading. In this article, we will reveal a trading methodology that traders can use to make huge profits, even if they have never traded before.
This method is simple to understand, easy to apply, and you’ll see exactly why the logic works.
Any trader can apply it to make money fast, so let’s get started and see how to apply this method to build real wealth.
The essential
Let’s start with a basic fact: 90% of all traders lose.
They don’t lose because they don’t have the ability to win; they lose because they don’t have the right mindset.
Let’s see why they lose and how you can turn this to your advantage.
It’s an accepted investment phrase for “buy low and sell high.” Everyone was familiar with it and this is the way most people trade.
The problem is that it doesn’t work!
How and why markets really move
If you look at a price chart you will see repeating patterns or trends, this is how we are going to trade through a technical system.
The charts represent all the fundamental bid and ask inputs, but more importantly the opinions of all the traders in the market and this is reflected in the price.
Taking currencies as an example, you will notice trends that last for months or years and our goal is to catch and milk them for profit.
So why don’t most traders catch them?
Quite simply, because they want to “buy low and sell high”, but a look at the charts shows that traders will never enter the big move trade with this strategy. Why?
Fact: Most major trends start with new market highs.
Most losing traders wait for a pullback to enter the market. Of course it never comes, the price just accelerates away from the breakout point and the losing majority does not enter the trade.
The trade secret of millionaires
It is actually buying “high and selling high”
Most merchants cannot do this.
They hate buying a high and feel insecure, they want a pullback because they have missed out on some of the potential profit, it is mentally hard to buy a moving trend, but it is the only way to make money fast.
Once in motion, a trend tends to continue rather than reverse, and to make money fast, you need to be in on the big ones.
This breaking method works. In technical terms, all it does is buy resistance breaks at important market highs.
How to make a breakout method work and make money fast
You need to keep a few other points in mind to build wealth fast with this method.
1. Big trends only show up a few times a year in any given market, so you’ll need to trade infrequently.
Most traders think they can make money fast by day trading and always being in the market. The reality is that you should only trade when the odds are in your favor and high resistance breakouts don’t happen often.
2. When you take a trade you need to protect yourself and you can do this by placing a stop below the breakout point for a good risk reward. Note that in part 1 you need to keep your risk low while using leverage.
3. Additional protection can also be provided by trading options that give you unlimited earning potential with limited risk.
The most important point of all!
If you want to make money fast, you must have the courage to accept big profits. This may sound strange, isn’t it true that we all want big profits? Yes we do, but most merchants can’t wait for them.
As soon as they make a profit, they want to take it before it runs away. The bigger it gets the more they want to deposit it, every dip in trend that erodes their profit causes them to panic and eventually take a small profit.
If you are trading major breakouts, you need to have the courage and conviction to hold out and accept short-term dips in equity and keep the long-term picture in mind.
Starting
Everything you need to build wealth
All you need to make money fast is the right mindset, the right method, and the courage to accept big wins. If you can achieve this, you will earn money fast.