How To Trade Blog: September 2020

Wednesday, September 30, 2020

Earning Challenge In IQ Option Within 1 Month Using T.L.S Strategy – Week 1

This is the most effective trading strategy used for options trading in IQ Option. It has been introduced in detail from how to open an order, how to manage capital, trading psychology in previous posts on Howtotradeblog. The theory is complete. Now, we will come to action through the earning challenge in IQ Option within one month using the T.L.S strategy.

Video on trading using the T.L.S strategy in week 1 that brought in $237

Long-term plan to make money in IQ Option

To find a trading strategy for myself which brings the desired profit, I spent a long time searching, researching, and statisticizing. Eventually, there is a small achievement which is making the first profits. Although a little, it is my non-stop effort.

You are discouraged because the strategy of your own creation has not yielded good results when putting into practice. Please persevere for a period of 3 to 6 months to improve the restrictions. If the loss happens in the long run, you can abandon it to find another suitable strategy.

To build a trading strategy that brings stable returns over the long term, you first need to understand the characteristics of the assets you want to trade. From there, you can use technical indicators to analyze asset movements and habits. Relying on the repetitive price actions of a currency pair to find profits is the essence of all strategies.

Manage capital in accordance with the strategy

Each trading strategy will correspond to the most suitable capital management. We trade depending on the winning rate of each strategy. There is no such thing as an absolute victory so risk management is a shield that protects your account.

Manage risks safely when making money in IQ Option

– I use the Classic (balanced investment) method for the T.L.S strategy. Because it is profitable when you have a high win rate of over 60%. It provides long-term security and sustainability for traders’ accounts. There is no need to choose the amount for each trade because the level of risk has been predetermined.

– Fibonacci is a scientific capital management method. It is biased towards account protection. Opening orders exponentially makes the investment amount on the following orders not much, creating comfortable psychology. The more the loss cycle is, the shorter the capital recovering cycle becomes.

Capital management method for traders who love to take risks

– Martingale is a method of capital management in which you increase the investment for the following order if the previous one is a losing one. This is how to get back your previous loss plus a little profit when you win. In a series of consecutive losses, only one winning order will recover all the previous losses. The exponential increase for the following trades makes it easy to cover losses.

Be careful when using Martingale because when you lose a long chain, the investment for the following order is very large. It causes your account to evaporate very quickly when your emotions surge.

Profits will grow steadily but at the same time, risks are also very easy to happen. If you want to use the Martingale capital management method, you must assess your risk accurately. Or you can limit how many orders for a cycle. I think it should be less than 4 orders.

– Snowball (compound interest) can be said to be a wonder appearing in the financial trading industry. We use the profit on previous winning orders plus capital to open the following order. Just like that, if you have a series of consecutive wins, your account will be many times bigger than the initial one.

In parallel with the rapid growth, the loss of earned profits is inevitable. To utilize the compound interest method, you need to have a trading strategy with high win rates of above 80%. And you need to have great patience to make money by trading in IQ Option.

Let reason decide the investment

What makes traders most likely to lose money in trading is being driven by emotions. That is when you cannot control yourself when you encounter consecutive losing orders or consecutive wins. It makes it easier for you to be overly excited to make transient decisions. In the long run, the loss is inevitable if you don’t know how to control it.

Let reason decide whether to open an order or not. Rely on market analysis. Don’t let momentary emotions affect your investment.

Things to keep in mind when making money in IQ Option

– Do not trade while working. Since this is a game of money, it is essential to concentrate highly to avoid being influenced by the surrounding circumstances.

– Avoid trading while experiencing a series of consecutive wins or losses in transactions. That only makes you more likely to lose when the fear, excitement is happening.

– Do not invest when you are not financial enough to afford to lose that amount of money. Avoid borrowing. Make sure that this investment is idle capital. If lost, it will not affect your daily life. It is to avoid financial psychological pressure affecting investment decisions.

– Stay away from recommendations about a strategy with a 100% win rate. Nothing is perfect, especially in trading. Yet many traders demand terrifying perfection that makes you spend effort, time, and money searching.

– Do not let your losses haunt you in every transaction. Losing in trading is something that you can never avoid. Don’t run away. Stay ready to face it and accept it as a normal part of your trading career.

– Do not trade with poor quality signals or without selection. Most of the signals in the market, though many, are of poor quality. If we are not selective and trade with bad signals then losses will occur.

Online trading orders in IQ Option with the T.L.S strategy

All financial orders opened in IQ Option from July 13 to July 17

You can see the analysis of each order more intuitively through video. In order to execute the order cycle with such a good record, I experienced countless failures. Every time I failed, I recorded it in my trading log to avoid repeating those things in the future.

Now I can avoid most of the mistakes made in the past. But on the market, there are countless things that we need to learn to become successful. Take the Demo account as a place to practice before entering the fierce market.

One last word

The start was as good as I expected, but that didn’t make me feel complacent. There is a long way to go and I believe this T.L.S strategy will be effective for making money in IQ Option. If the losses last long, then change will happen. But for now, it’s fine for me. Let’s keep track and statisticize on the T.L.S strategy within a month to see how much profit it can make. I wish you success in trading.

The post Earning Challenge In IQ Option Within 1 Month Using T.L.S Strategy – Week 1 appeared first on How To Trade Blog.

source https://howtotradeblog.com/iq-option-earning-challenge-strategy/

Monday, September 28, 2020

Trading Psychology While Using T.L.S Strategy In IQ Option

Greed is deep in people’s subconscious. With a trader, it is easier to break out. Having to witness the flow of money every day will distract them, causing them to act blindly and ignoring facts as well as statistics. Wrong decisions all come from emotions. Therefore, if you know how to limit them when trading in IQ Option, you have already been halfway to success.

Wrong mindsets of traders during IQ Option trading

If you bring along with you incorrect perspectives about the trading profession, your path will be very difficult. This is something that beginners never accept without being told by their predecessors.

Confirmation bias

Greed mostly comes from false assumptions about confirmation bias. That is, traders will find convincing evidence to prove their strategy is correct. They ignore constructive comments and make things go their way.

For example, the gold price on July 6, 2020, continuously set new peaks and increased wildly. Most traders thought that the price had been at a too high level compared to the previous years. In order to reinforce their judgment, they were willing to use all kinds of arguments to prove that they were right.

This way of trading still happens every day in IQ Option. But in reality, we are dominated by greed without even knowing it. There is no reason for the price to drop on a consecutive breakout. This is ridiculous. If you believe that it will be profitable to place a sell order, then you are getting distracted by greed.

The best way to fight against it is to form a set of principles and learn to defend yourself. There should be several scenarios for a strategy to limit greed in trading.

Setting ambiguous goals

One manifestation of the mentality of greed is to set profit targets too high compared to reality. Many traders set very high targets for profits without evaluating their own abilities

Almost every system and strategy undergoes volatility and drops. However, many traders do not admit this. They often think that the trading system will be more profitable.

However, you need to understand that the market will crush your expectations regardless of your mood.

The profit that you want to make even the smallest is also an expression of greed. However, your greed should be based on reality and possibilities. When setting profit goals, you should look at the amplitude of the rate fluctuations. From there, you can give out goals that are within your reach.

Not knowing where to stop

There are many cases where you have gotten the exact profit as expected. However, greed makes it impossible for you to stop. And then, you decide to continue trading.

If you are profitable, you decide to stay to increase the profit. If you lose, you decide to take it back. And all of the above actions are caused by you acting according to your own feelings. It is an expression of greed when you have won and want to win more. This can turn a profit into a loss. Most traders lose when they are driven by emotions.

One thing that traders have to learn is how to distinguish where mistakes come from. Is it due to trading knowledge, market judgment skills, or errors from greedy psychology? From there, you can come up with a roadmap to improve the weaknesses and promote the advantages.

The more you observe the market behavior, the more you will find that the psychology of the trader works in stark contrast to the beats and cycles of the market. So, always be conscious of psychology, discipline, principles to make the right decisions during trading.

Things to train for trading psychology

Psychology is an important factor contributing greatly to making profits. It often takes time for traders to train steel psychology. But if we have learned to control, the trading results will gradually improve in a positive direction.

Believe

Believe is the filter for your spirit. It summarizes important information during trading. It will help you refine and evaluate the information related to the strategy, and ignore the irrelevant information. Trader’s trust will help them to make their own judgment correctly.

If your trust assumes you are doubting and apprehensive about the quality of the strategy, then your approach to the market will change to that skepticism in a negative way.

Change your mindset

Most traders know that greed and fear are both negative states in trading. However, to understand and to give a remedy is also very difficult and requires perseverance.

When we make large and consistent profits, it is easy to come to overconfidence. The excitement now overwhelms our fear and makes us ignore caution. It drives you frenzy to make more profit by trading continuously. They will often ignore existing profit protection and disregard risk management. So in this state of mind, they often make the wrong decisions.

Another equally frightening mentality is fear. This type of mentality is somewhat more realistic because when people are feared they are more vulnerable. Fear makes traders not dare to place orders and fall behind. It makes their growth almost zero over time when they are not confident to place orders.

4 tips to help traders overcome psychological barriers in IQ Option trading

The key to success in IQ Option trading — The key to success

1.Set your trading principles and stick to them. Especially, never break the principle set by yourself.

2.Never make an arbitrary trading decision. Instead, before you trade, ask yourself why you trade. Find proof that your trade is reasonable and valid.

3.Make a statistic of the evidence that can make your strategy fail. If you find a lot of evidence that your strategy is more likely to fail then it’s best not to trade.

4.You are investing, not gambling. If you want to take revenge or open many orders, etc. then never excuse yourself. Remember, don’t find a reason for the problem. To better trade, you have to be the one to find the cause of the problem and fix it.

Psychology is a persistent problem for investors, so let’s start training ourselves now. Although psychological training requires a process to achieve good results, you will feel your trading mood changes over time. When you see trading more comfort, it shows that your psychological adjustment efforts have paid off.

Video on trading with real money in IQ Option using the T.L.S strategy

The post Trading Psychology While Using T.L.S Strategy In IQ Option appeared first on How To Trade Blog.

source https://howtotradeblog.com/iq-option-trading-psychology/

How To Trade & Make Money In Olymp Trade For Beginners From A To Z

Olymp Trade is now an online financial investment channel that is invested by a large number of investors around the world. Today, howtotradeblog will guide everything about the Olymp Trade trading platform, especially for beginners. How to open an account, to make a deposit, to trade, to make money, to withdraw, and to verify the Olymp Trade account are all available. You can see the details in this article.

What is Olymp Trade?

To be able to make money in Olymp Trade, you first need to know what Olymp Trade is. Olymp Trade is an online financial trading platform that uses derivative financial instruments (commodities, currencies, stocks, etc.) to help traders find profits. This is a leading reputable platform that was established and has been operating from 2014 to the present. Over nearly 10 years of construction and development, Olymp Trade offers traders the opportunity to make great profits in a short time. It serves as an effective passive income channel.

If you want to learn more about Olymp Trade then here is our detailed review of this broker. You can check out:

+What is Olymp Trade? Is it a scam? Proofs?

+Detailed review on the Olymp Trade trading platform.

Financial Commission membership certification for Olymp Trade

How to make money in Olymp Trade

The simplest type of transaction that you can use to make money here is the Fixed Time Trade. That is, you will predict the uptrend or downtrend of an asset over a fixed period of time. If your prediction is correct, you make a profit. If your prediction is incorrect, you lose money.

To better understand this type of trading, you can review here: What is Fixed Time Trade in Olymp Trade?

Does trading in Olymp Trade make you rich?

Rich or poor is a relative concept for each person. $50 per day can be a small amount for one person but a big sum for another. Depending on the amount of capital, you will get the number that you expect. You can’t imagine becoming a millionaire for just $100.

For example, Traders at How To Trade Blog (this website) deposit $300 into Olymp Trade and trade. Every day, he withdraws $50 to his bank account. This amount, to him, is reasonable.

Deposit and withdrawal history in Olymp Trade

Details on how to make money in Olymp Trade from A to Z

Step 1: Register for an Olymp Trade account

To be able to make money in Olymp Trade, you need to have an account for trading. First, click on the red box below to create yourself an Olymp Trade account. Registration is very simple. You just need to enter your email and password and then you will have an Olymp Trade account.

You can review here the fastest and most accurate way to open an Olymp Trade account: The fastest and most detailed guide on how to register an Olymp Trade account.

Or if you want to install the Olymp Trade app on your smartphone, you can download it here:

Step 2: Deposit money into Olymp Trade and trade to make a profit

To top up and trade in Olymp Trade you need to have a bank account such as a Visa card or a crypto wallet with the lowest amount of $10. This is the amount you will deposit to trade and make money. Here, I will guide you to deposit into Olymp Trade via Visa/MasterCard.

After registering an account and logging into Olymp Trade, the interface will be as below. First, select “Make a deposit”.

How to deposit into your Olymp Trade account

Next, enter the amount you want to deposit (minimum $10) and then click“Deposit”.

After that, a window appears. Fill in the information of your Visa card and click “Pay” to deposit.

You only need to wait a few seconds for the money to be credited into your Olymp Trade account. If you do not have a Visa card, you can top up using other payment gateways supported by Olymp Trade. Below are the articles on how to make a deposit using other methods in Olymp Trade:

+ Instructions on how to deposit into Olymp Trade via online banking account.

+ Instructions on how to deposit into Olymp Trade with Neteller, Skrill e-wallets.

How to make money through trading in Olymp trade in the simplest and most effective way

To be able to make money in Olymp Trade, you need to open profitable orders. Here is the safest and most effective way to trade Olymp Trade for beginners.

(1) First, you choose the Japanese candlestick price chart. This is the chart type used by the majority of Olymp Trade traders.

How to make money through trading in Olymp trade in the simplest and most effective way

(2) Next, you choose the candle time period for the chart at 1 minute and set up the Bollinger Bands indicator (3).

Finally, select the asset pair with a high profit rate of 80% or more (4). Here, I choose the Ripple cryptocurrency as the trading asset.

How to effectively open an order with the Bollinger Bands indicator in Olymp Trade

Please focus on observing. When the price creates a candlestick that closes outside the upper band or lower band of the Bollinger Bands indicator, enter the trade.

For example, I will open an UP order when a red candle appears out of the lower band. The expiration time will be 1 minute. The amount of capital is up to you to choose. So, I bet on the next candlestick which will get out of the bands will be a green one.

How to effectively open an order with the Bollinger Bands indicator in Olymp Trade

Statistics show that up to 95% of candlesticks will be within the Bollinger Bands indicator. The remaining 5% candlestick will be out of the bands. This deems to be a good signal for you to open an order. Therefore, this trading strategy is safe, simple, and very effective for you.

In addition, this trading strategy using out band candlesticks in Olymp Trade, at howtotradeblog we have many other effective strategies to trade in Olymp Trade. You can refer to:

+ Trade in Olymp Trade using Retest.

+ Trade in Olymp Trade using RSI and SMA indicators.

+ Make money in Olymp Trade using the Morning Star candlestick pattern.

Step 3: Withdraw money from Olymp Trade to your bank account

This is the last step in the process of making money online from Olymp Trade. Once you’ve traded and earned yourself a certain amount of profit, you need to withdraw money to your bank account.

First, click “Withdraw” to request a withdrawal.

How to withdraw money from Olymp Trade to your bank account

Next, a withdrawal window appears. Enter the amount you want to withdraw and choose the form of withdrawal. For example, if I want to withdraw money to my ACB bank account, I need to fill in my name and bank account number. Then, click on “Send a request” to submit your request for withdrawal.

Here’s how to withdraw money to your bank card or Visa card. In addition, Olymp Trade also supports withdrawing money to e-wallets and online banking. You can see the following articles if you need to withdraw money using these payment gateways:

+ Withdraw money from Olymp Trade to an online banking account.

+ Withdraw money from Olymp Trade account to e-wallets: Neteller, Skrill.

Notes: When you trade and make a steady profit in Olymp Trade. Before withdrawing, the platform will ask you to verify your account’s identity. You can see this article to know how to verify your identity in Olymp Trade:

+ How to verify your identity in Olymp Trade.

Summary

Today, making money passively online is a very developed channel that many people choose to increase their income. Trading in Olymp Trade is a good choice for you. It is especially for those who do not need too much knowledge about investment and markets. The article on how to make money in Olymp Trade in detail from A to Z should close here. Goodbye!

The post How To Trade & Make Money In Olymp Trade For Beginners From A To Z appeared first on How To Trade Blog.

source https://howtotradeblog.com/how-to-trade-make-money-olymp-trade/

Sunday, September 27, 2020

How to Trade Effectively With RSI & SMA Indicator In Olymp Trade

Hello to all readers of Howtotradeblog. During the past time, we have brought you a lot of knowledge as well as trading strategies required to become a professional trader in Olymp Trade. They are knowledge of indicators like RSI, SMA, Bollinger Bands, candlestick patterns such as Morning Star, Hammer, Harami, plus with the guides on how to trade and use them.

Continuing that journey, today, I will bring you complete strategies for trading in Olymp Trade. This is the last step for you to make money trading on your own. Stay tuned to see what I’m going to bring you today.

Trading in Olymp Trade using RSI indicator combined with SMA

RSI and SMA are very popular indicators used in technical analysis. The effectiveness of these 2 indicators is at the top in Olymp Trade.

The strategy that I am about to share below uses these 2 indicators at the same time to find entry points with the highest accuracy.

Basic setup for trading in Olymp Trade

Basic setups: A 5-minute Japanese candlestick chart. EUR/USD pair. This is a popular currency pair. The price goes quite gentle and is traded by many people. Open orders with an expiration time of 15 minutes.

Next, you need to set up RSI and SMA in Olymp Trade. You can do as follows:

Set up the SMA indicator

In the interface of Olymp Trade, select “Indicator” and then choose “SMA”.

Next, customize the SMA with the parameter of 30.

Set up the RSI indicator

For the RSI indicator, you do the same. Select “Indicator”, search and select “RSI”.

After setting up the 2 indicators, the interface of Olymp Trade will be shown as below.

Olymp Trade interface after setting up SMA and RSI indicator

How to open an order in Olymp Trade using RSI combined with SMA

The basis for opening orders is as follows:

First, I use the SMA30 to determine the price trend. Specifically, when the SMA is pointing up and locating below the price, the market is in an uptrend. When the SMA is pointing down and is above the price, the market is in a downtrend.

As for the RSI, the 50 level is what I want to talk about here. Let’s take a look. When the price is in an uptrend, the RSI is above 50. And when the price is in a downtrend, the RSI will be below 50.

Use RSI to find entry points in Olymp Trade

Combining these 2, I have an effective strategy to open orders with RSI and SMA as follows.

+ Open an UP order when the price is in an uptrend. The SMA30 points up. The price hits the SMA and then rebounds. At the same time, the RSI hits the 50 level and then rebounds.

+ Open a DOWN order when the price is in a downtrend. The SMA 30 points down. The price hits the SMA and then falls down. At the same time, the RSI hits the 50 level and then falls down.

How to trade with RSI and SMA30 indicator

Capital management and trading psychology

This is an indispensable part of every trading strategy. It is a fact that no matter how high your strategy win rate is, without good capital management, you will still burn out your account. Please remember that capital management is a must when trading. In this strategy, you can open orders with the Classic capital management method. This means opening orders with fixed capital from 3-5% of the trading balance.

For example, You deposit into Olymp Trade $100. The bonus from the platform is 30%. Now you have a total of $130 in balance. Then you should only allow investing from $4 to $6 per trade.

Capital management for RSI and SMA30 trading strategy

We have a payout rate of 82% and a win rate of 70%. The profit with this trading strategy is $16 on the deposit of $100. The rate of return is 16%. Every day, you earn $16. Don’t underestimate it because after a month it will be $480.

Trading principle

This is where I want to emphasize on the mentality and discipline when opening orders. There are a few things you need to keep in mind when trading.

Only open orders with high winning probability which you are willing to trade with your own money.
Never increase the investment or open consecutive orders. This is the fastest way to burn out your account.
Don’t be bitter or lose your temper when your trade is at a loss. Please remember that the winning probability of this strategy is only 70%. Just wait! There will be many more opportunities for you to get it back.
After opening all 10 orders, take a quick analysis of trading history and then turn off the computer to do other things. Do not open the 11th order. You must stay disciplined to make money. Without discipline, you will lose money.

Practice this trading strategy in Olymp Trade on my real account

I have directly tested the strategy using RSI combined with SMA 30 in Olymp Trade. There were 5 opened orders. The result was 4 wins and 1 loss. The win rate reached 80%.

Practice RSI - SMA30 trading strategy in Olymp Trade on my real account — Practice RSI – SMA30 trading strategy in Olymp Trade on my real account

Pros and cons of this trading strategy in Olymp Trade

This is a strategy that I consider to be safe and effective. It is very suitable for beginners also. The win rate can reach up to 80%. It reflects the efficiency that RSI and SMA 30 would bring upon. In one day, there are not too many qualified entries for you. Along with that, the expiration time for each transaction is 15 minutes. Therefore, your account will be very hard to get depleted.

Important notes: It is important to remember to open orders only when the RSI has hit the 50 level and turned back clearly. This is a very good way to filter fake signals to get the most accurate entry points.

The strategy is now available. It is now your showtime. Turn on a Demo account to verify. Make sure you have done well in a Demo account before thinking of depositing for real trading. Leave any questions if you need help. Goodbye!

The post How to Trade Effectively With RSI & SMA Indicator In Olymp Trade appeared first on How To Trade Blog.

source https://howtotradeblog.com/how-to-trade-rsi-sma-indicator/

Friday, September 25, 2020

Capital management in Olymp Trade: The key to making money (Part 15/20)

“No one makes money from trading Bitcoin”

In recent days, that statement has been repeated. The only thing is, in 2018, people still debate about this argument. But for now, all agree that: No trader can make money from the Crypto market, especially Bitcoin.

So why? It’s simply because of: Fast, strong, and unusual price movements of Bitcoin (BTC). The price decreased by 13% and then rebounded within 1 hour. It blew away all the money of the traders who were trading in this market, regardless of whatever trading strategy they were pursuing.

The question now is: Whose pocket will the money flow in? Or rather, who is behind all this? Surely, this guy has a lot of money and power to be able to control both the price of Bitcoin and the crypto market. I will call them: Creators – An existing and dominant organization or group in the market.

Not just Bitcoin, any market has a Creator. Often, the creators don’t need to create too much volatility. They only need a few hours to “shake” the market and steal all the achievements of the traders.

How to not lose money? The answer is capital management. The market is a battlefield. There, you have to fight with all kinds of genres to make money. If you consider the trading strategy as a spear, then capital management is your shield and armor that helps you survive.

So: You need a capital management strategy to ensure that your trading account is always safe. At the same time, it realizes the profit goals that you pursue. And today, we will talk about: Capital management – the key to making money in Olymp Trade trading

Methods of capital management in Olymp Trade trading

I will cover 3 capital management methods that you can often read on websites or be taught in trading. At the same time, I will point out the disadvantages of these capital management methods.

Classic capital management – trade evenly with a certain amount

Here’s what you are taught: Deposit your Olymp Trade account with $1,000, then trade with an equal amount of $50 per order. Using a strategy with a 70% probability of winning (7 wins – 3 losses out of 10 orders), you are definitely profitable.

10 orders? You need to open up to 10 orders, don’t you? When you trade a lot, your emotions will suffer. It is easy to get caught up in fast trading orders. And in the end, you don’t have a single penny left in your account.

Martingale capital management – absolute winning in Olymp Trade trading?

See the article: How To Trade In Olymp Trade Using Martingale: A Waste Of Money If You Don’t Know How To Use It

Martingale – this is a sure way to make money in both Fixed Time and Forex trading, provided: You have a lot of money. Martingale’s principles are: If you lose, double the bet on the next trade. With just one win, you will get back both capital and profit.

Here’s what you are taught: The market always gives you a 50% chance of winning (either bullish or bearish). As long as you apply a few more indicators, your probability of winning will increase. So you just need to trade using the Martingale method and you will always win.

Martingale capital management - absolute winning in Olymp Trade trading? — Martingale capital management – absolute winning in Olymp Trade trading?

You understand the picture above, don’t you? The Martingale plan would be: You deposit $1,093 into your account for 7 consecutive orders. You will start with the $1 order, and so on. If you lose, you continue to triple the investment for the next trade. Just one winning order, you will recover all the capital of the previous losing trades. And then you start over with $1. You only lose all your capital when you lose 7 consecutive orders.

Martingale capital management is a psychological game where fears will slowly eat up your mind. Trade for $1, no problem. A $3 trade is not a problem either. But the more you trade and increase the investment, the more likely you will start to fear. Every losing trade makes your inner fear grow. A brain overwhelmed by fear has no room for wise decisions. The result is always: You will lose, definitely lose. And for Martingale, losing is painful. Losing is losing it all and losing means not being able to stand up.

Capital management with compound interest

See the article: The Fastest Way To Earn Money In Olymp Trade: Compound Interest And 1 Minute.

You can understand it simply as follows: You start trading with a small amount of capital. If you win, use profit plus capital to trade the next orders. In trading, it is called all-in. And this is the fastest way for you to make money. But if you lose, you only lose a small amount of your initial capital.

For example, you start at $60. If you win 3 orders in a row, you will get $360. If you lose, you only lose $60. So you are allowed to be wrong 3 times. And with only 1 win, you will get back all your capital.

The method of managing capital with compound interest

The French have a very good saying. With the word “If” they can put the whole of Paris in a bottle. Therefore, if you use the word “If” in Trading, you will not have a single penny left in your pocket. Win 3 times in a row? It sounds easy but it is not always possible. And if you continually lose small amounts, your capital will run out.

At the same time, compound interest is a very strong blow to greed. Assuming you are lucky enough to win 3 orders, the question now is: Can you stop? Or would you continue to trade with the thought: If you lose, it only takes $60, but if you win, you will make a lot of money? Greed is a very difficult thing to control. It only stops when you lose all your money.

To conclude

Why do I say: Capital management is the key? The reason is: Capital management is money management and money management is emotional management. Your emotion is like a bomb. It will destroy everything when it explodes. But if you keep the detonator safe, nothing will happen.

And before I go on to share my own capital management in Olymp Trade, I will give you some good practices that you should avoid.

Capital management always goes with trading strategies

You have your own strategy. And you know for sure the probability of winning when trading in Olymp Trade using that strategy. At this point, you need a suitable capital management method. So, create your own one.

Don’t read or copy anyone. That’s just a theory and it’s not right for you. Most of the online articles on how to manage capital in trading do not help you at all. It even leads you into the spiral of trading. It makes you trade more and more.

The number to stop

The market is a harsh battlefield. If you want to be a predator, you need to survive. You can achieve all profit goals only if: you have money left. Therefore, managing capital means keeping money. Have you got a plan to keep your money yet? If you trade Forex in Olymp Trade, what is your stop-loss? If you trade Fixed Time, how much money will be for you to stop if losing? Let’s specify it by a number. And when you reach that number, you definitely have to stop.

Clear profit targets

You want to make money in Olymp Trade, don’t you? How much? Exactly how much do you want to make? Of course, it must be reasonable compared to your financial capability.

For example, You cannot deposit $1,000 and expect a profit of one million USD. Conversely, you can not deposit one million USD just to expect a profit of $50. Everything should be reasonable and within your reach.

Do not over-deposit into your account

Here’s an experience I want to share. If you want to make $50 a day in Olymp Trade, you just need to deposit $300 or less.

Imagine, if you have $1,000 in your wallet, then you will not regret spending $10. But if there is only $50 in your wallet, you will definitely be hesitant. The same applies to your trading balance. If you deposit a large amount, even if you make a profit, you will find it too small compared to your total account. Conversely, if you only deposit a small amount of capital into your Olymp Trade account, with just 1 or 2 winning trades, you will see a relatively large profit.

My capital management method during trading in Olymp Trade

Profit target: $1,000 for the first month. That means you only need to make $50 per day.

Acceptable risk level: $30 per day. You can understand it simply as follows: The maximum amount that can be lost in a day is $30.

Trading strategies in Olymp Trade: Trend + Signal. With this strategy, I only open from 3 to 5 orders per day. So, to reach my target of $50 per day, I will invest $20 per order.

Forex test order

The best part of Forex is stop-loss. You only lose a small amount when you are wrong. So, for trading strategies in Olymp Trade, you must use Forex test orders. “Never test the depth of a river with both feet.” So, before you start looking for opportunities to make money in the market, you need to do some tests. It is to make sure your predictions about the trend are correct.

In Forex, I will set a stop-loss of 30%, which equates to $6 per trade. If my prediction is wrong, I will lose $6. On a bad day, being wrong 5 times in a row can completely happen. And if I lose all $30, I will stop.

But when you catch the right trend of the market, never take profits. Let that trend increase your profits. The job now is: Focusing on finding the next entry points on either Forex or Fixed Time Trade.

Limit Fixed Time transactions as much as possible

Making money fast is a trap of Olymp Trade. It’s like they give you a noose and wait for you to put your neck in. Just a little impulsiveness, a little of wrong psychology, the string will slowly tighten. And the result is: You die.

I don’t mean you can’t make any money in Fixed Time Trade. But it is only suitable for those with good nerves, patience, and discipline. Usually, I will open 2 Forex orders based on the main market trend. And since both of these orders are profitable, then I place a Fixed Time Trade order. This is the best way to keep your account safe. Please remember: Survival is the first rule, making money is just in second place.

For me, when both Forex orders are profitable, I will open 1 Fixed Time order for $20. If it wins, the target profit for the day will be reached. I will stop and withdraw the money. If I lose, I can preserve my capital and finish here. It looks like I can’t make any money today.

Let me reiterate: Capital management is risk management. And the top priority is to protect your account. Depending on the method, strategy, and goals of each individual, we will have an appropriate capital management method. Don’t follow anyone else stereotype.

Let’s review my series of 14 other articles about Olymp Trade:

The post Capital management in Olymp Trade: The key to making money (Part 15/20) appeared first on How To Trade Blog.

source https://howtotradeblog.com/olymp-trade-key-capital-management/