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How to Beat the Market

Trading Guide Series

EXLUSIVE tutorial
EARNING DISCLAIMER

Forex Trading Risk Warning

Forex trading involves a significant degree of risk and is


not suitable for all investors. There is considerable risk in
any off-exchange foreign exchange transaction, including,
without limitation, leverage, creditworthiness, market
volatility and limited regulatory protection.

The leveraged nature of Forex trading can work against


you as well as for you. You may lose some or all of your
investment. Therefore, do not invest money you cannot
afford to lose.

You should be aware of all risks associated with Forex


trading and seek advice from an independent financial
advisor if you have doubts or questions.

Any opinions, news, research, analyses, prices, or other


information contained on this course is provided as
general market commentary, and does not constitute
investment advice. We will not accept liability for any loss
or damage, including any loss of profit, which may arise
directly or indirectly from your use of or reliance on such
information.
The content on this website is subject to change at any
time without notice. We have taken reasonable measures
to ensure the accuracy of the information on the course,
however, that does not guarantee its accuracy, and we will
not accept liability for any loss or damage which may arise
directly or indirectly from your reliance on information on
this course.
CONTENTS

1. Introduction to the market


2. How to choose market
3. What is RiseFall trading
4. How to target the profit
5. Risk, Profit, and Money Management in Trading
6. Strategy to get Moment
7. How to open position
8. When to enter market
9. How if you lose the trade - part 1
CHAPTER I:

INTRODUCTION TO THE MARKET

Forex trading can be a very lucrative and highly profitable


method of generating profits from financial markets. Some
3 billion pounds is traded each day on the Forex markets
which far exceeds the amount traded on all the Worlds
Stock Markets combined!

As individuals look towards new methods of generating


profits from financial markets many are turning to Forex
Trading as a means to achieve this.

However while Forex Trading is seen as potentially


lucrative it is can also be risky time consuming and over
complicated for many individuals. Many stones exist of
fortunes being made and subsequently lost in a matter of
minutes, by traders on the Forex markets!

Fixed Odds Trading?

Fixed Odds Trading provides as different approach to


trading the Forex markets. It takes away many of the risks
and complications associated with conventional Forex
Trading or Spread Betting yet still provides the ability to
earn high payouts!
Fixed Odds Trading allows you to speculate on the
outcome of an assets future price movement. You don't
actually own the physical asset but you place a trade to
take advantage of its predicted price movement.

lf you think that the EUR/USD will fall over the next week
you could place a trade to profit from this move or you
might think that an exhausted GBP/USD will struggle to
break $1. 50 over the next 7 days. Here again you could
place a trade to profit from this outcome.

All you have to do for a Fixed Odds trade is o firstly check


the Odds (percentage return] that the broker is offering for
your desired price level trade type and selected time
frame. Then lf you are happy with the return being offered
you place the trade. lf your prediction proves to be right at
the end of your selected time frame you receive your
profit. Maybe you traded to make a 10% return from this
movement maybe 20%, 50%, 300% or even more!

Once the trade has expired profits are instantly credited to


your account and can be withdrawn or used for your next
trading opportunity. The ability to configure the time frame
for your trade means you can simply get deep into the
markets as and when an opportunity arises. For our
strategy we tend to focus on I day trades. This is actually 5
days in the market as the 7 days includes weekends (non
working days) when the markets are closed.

This means that you can profit from short term market
movements without being committed to holding an asset
for a long period of time where the market may turn
against you.

How Fixed Odds Differs From Traditional Forex Trading

Firstly let's take a look at how traditional Forex trading


works. The level of stake for each pip of movement is set
by the trader subject to the minimum limits of the broker.
These limits will vary but are often $1-$50 per pip for
Spread trading accounts and will be dependent on the Lot
size and number of Lots traded with a traditional Forex
broker.

When entering a buy trade a profit is made for every pip


the market moves above the placing price. A loss is
incurred for every pip the market moves below the placing
price. A sell trade operates in reverse.

When entering the trade the total number of pups that the
market has moved away from the placing price is
multiplied by the stake placed or number of lots. This
determines the profit or loss from the trade.
For example:

 A 50 pip movement in your favor on the GBP/USD


exchange rate at $5 per pip would net a return of:
 50 number of pips moved in favor of trade X $5
(stake per point) = + $250
 A 50 pip movement in against you on the GBP/USD
exchange rate at $5 per pip would net a return of:
 50 number of pips moved in favor of trade X $5
(stake per point) = - $250

The danger with both Spread trading and using a


traditional Forex broker is that you are liable for all profits
or losses until the trading position is closed. So in fast
moving (or even gapping] markets this can be a very
dangerous strategy even with a Stop loss in place.

Limited Risks

Step up Fixed Odds. With Fixed Odds Trading both your


profit and liability are known at the outset. When you place
a Fixed Odds trade your liability is fixed from the outset.
This is because your maximum loss is limited to the stake
you place on the trade Similarly your potential profit is also
known at the outset. This is the amount you stake to win.
The key benefit here is it that you can determine whether
you are comfortable with the risk on a trade prior to
actually placing lt.

Knowing both your profit and loss prior to entering a


market allows you to make a calculated decision on the
merits of a trade. lf you don't feel comfortable with the risk
to reward ratio then you simply don't place lt. As a result
risk management on your account becomes much easier.

Selling Back Your Trade

The value of your Fixed Odds trade is updated un real


time and is based upon the Underlying price of the market
that you have placed the trade on. You can therefore sell
your trade back to the broker at any point up until expiry
for the current market price.

This means that you can sell your profit trade back prior to
the official expiry time to receive the current profit that the
trade has accumulated. Similarly you can sell a losing
trade back (provided it hasn't expired) for a proportion of
its initial value. The ability to sell the trade hack to the
broker before expiry is useful on two counts. Firstly it
allows you to close out of a winning trade and bank
whatever profits are available at the time of sale. Secondly
lf the market has turned against you it allows you to sell
out of the trade early and reclaim a portion of your stake
back without have to see the trade expire worthless.
Trade Small Amounts

It is possible to open positions with a Fixed Odds broker


from as little as $10. This provides the opportunity to profit
from the Forex markets to both those of more modest
means and those who are unwilling or unable to meet the
higher deposit levels of Spread trading or traditional Forex
brokerage accounts. Opening an account is quick and
easy. The minimum deposit requirement is $ 100 and can
be added to at any time. As you can only trade with money
deposited in your account there is also no chance of
running up huge debts with your broker.

This allows you to start trading Fixed Odds with small


amounts of capital and Increase your levels as both your
confidences and experience grows.

Here it is also worth mentioning Virtual accounts. These


are offered by Binary.com and allow you to trade with a
virtual pot of money. This is particularly suitable lf you are
entirely new to Fixed Odds and want to get a feel for it
before committing real funds.

You can also use virtual accounts to test new strategies in


a no risk environment before trading them for real.
Tax Free Profits

As Fixed Odds trades are technically do not attract Income


or Capital Gains Tax (in the UK). Fixed Odds trades are
also exempt from Stamp Duty unlike traditional share
Investments The prune you are quoted for your trade (het)
ls the price you pay. And of course your winnings are just
that, your winnings.

Please always ensure you check both your current


situation and the laws in the country in which you reside.
Personal circumstances and laws do vary and change.

Summary

Fixed Odds Trading offers the potential for a significant


second income due to the simplicity of placing the trades
and the high returns on offer. Trades take less than a
minute to place and once placed there is little real reason
or need to monitor them (they are Set & Forget) with the
odd exception to check their progress now and again.

All the preparation is carried out prior to the trade being


placed. This makes them ideal for people who want to
participate in the gains that can be had from the Financial
markets but don't want the complications associated with
full time trading or screen watching.
It might be that you want to use Fixed Odds Trading
alongside other investments for the purpose of
diversification. Or maybe you simply want to accumulate a
decent second income stream. Once you see how easy it
is to start banking profits with Fixed Odds you will
understand that these are not idle dreams.

While it would be unrealistic to expect to make an instant


living from Fixed Odds Trading, starting with only a few
pounds just by following the simple concepts and advice
within this book you should soon be registering some
fantastic profits.

Now we have covered the key benefits of trading Forex via


Fixed Odds Trading.
CHAPTER II:

HOW TO CHOOSE MARKET

Trading in Binary Option, especially Binary.com offers


some benefits and it may be better for some people than
traditional or conventional Trading. Generally, Trading
(including Binary.com) offer same markets.

The markets are:

 Forex (currencies)
 Indices
 Stocks
 Commodities

In Binary.com, you can see additional markets below:

 Randoms
 Smart Indices

Forex

Currencies are traded in “pairs”, with a rate of converting


the first listed to the second.

E.g. “GBP/USD = 1.52” means a GPB is worth 1.52 USD

These rates are constantly fluctuating due to economic


conditions and trading activity
Dozens of currency pairs are actively traded

Six major pairs (85% of all volume):

 EUR/USD, USD/CAD, USD/JPY, USD/CHF,


GBP/USD, AUD/USD
 Trading occurs 24 hours on weekdays

Indices

“Baskets” of stocks from a given stock exchange

E.g. FTSE = basket of 100 largest stocks on London Stock


Exchange Changes in the price of the stocks causes a
change in the value of the index

Dozens of indices from all over the world

Some major indices (most volume/value):

 DJIA (US), Hang Seng (Hong Kong), Nasdaq


Composite (US), Nikkei 225 (Japan), FTSE (UK), All
Ordinaries CAC 40 (France) (Australia), DAX
(Germany)
 Traded 6-9 hours, weekdays
Stocks

Shares of an individual company listed on an exchange


Financial Times Global 50 Stocks available at Binary.Com
are:

 Apple Comp Inc, Google Inc, Barclays, Intel, BP


Lloyds Tsb Group, BT Group, Nasdaq 100 Trust
 Traded 6-9 hours, weekdays

Commodities

Contracts for “basic goods” traded on exchanges

 Some major commodities (most volume) Oil, Gold,


Silver Price expressed in US$ per unit
 Traded 6-9 hours, weekdays

Randoms

Market simulations for varying conditions

 Types Low, medium and high volatility (price


movement) “Rapid rise” and “rapid fall”
 Available 24/7/365
Smart Indices

Binary.com’s exclusive Smart Indices are built to key on a


particular subset of the world’s markets. With a price
derived from related assets, Smart Indices allow traders to
take positions on a variety of market action.

World FX indices

Binary.com’s World FX Indices are smart indices that


measure the value of a currency against a basket of major
currencies.

The USD Index is a weighted Index, measuring the US


Dollar’s value against a basket of 5 global currencies
(EUR, GBP, JPY, CAD, AUD), each weighted by 20%.

The AUD Index is a weighted Index, measuring the


Australian Dollar’s value against a basket of 5 global
currencies (USD, EUR, GBP, JPY, CAD), each weighted
by 20%.

The EUR Index is a weighted Index, measuring the Euro’s


value against a basket of 5 global currencies (USD, AUD,
GBP, JPY, CAD), each weighted by 20%.

The GBP Index is a weighted Index, measuring the British


Pound’s value against a basket of 5 global currencies
(USD, EUR, AUD, JPY, CAD), each weighted by 20%.
Outperformance Indices

Binary.com’s Outperformance Indices are Smart Indices


that track the performance of one index against another.
These indices are the ratios of the respective market spots
multiplied by 1000.

The German vs UK Index measures the performance of


the German Index relative to the UK Index. This
outperformance index rises if the German Index performs
better than the UK Index, and decreases if the UK Index
performs better than the German Index.

The German vs Swiss Index measures the performance of


the German Index relative to the Swiss Index. This
outperformance index rises if the German Index performs
better than the Swiss Index, and decreases if the Swiss
Index performs better than the German Index.

The German vs French Index measures the performance


of the German Index relative to the French Index. This
outperformance index rises if the German Index performs
better than the French Index, and decreases if the French
Index performs better than the German Index.

The German vs Dutch Index measures the performance of


the German Index relative to the Dutch Index. This
outperformance index rises if the German Index performs
better than the Dutch Index, and decreases if the Dutch
Index performs better than the German Index.

Summary

Markets which offered by Binary.Com are very various. All


this market has its characteristic. You have to research
about it and trade it virtually for some periods of time to
make sure you can trade it in real. There are some types
of trader. Let me tell you 2 of them:

1. Scalper

Scalper is short term trader. He always use the


chance to open position in short period of time. He
can get profit several times for 4 hour, 1 hour, 15
minutes, or even 10 minutes. If you think you are like
this type, you can trade on the market that has big
volatility like GBP/JPY, EUR/JPY, Random 100 and
Random 75 and so on. You have to know about which
market is good for this strategy, so you can get big
benefits when trading on it.
2. Long Term Trader

This trader is not very aggressive like Scalper. He will


place order for long duration. Usually this trader open
position for duration 1 day. But I think we can say this
also to the "4 hours" trader, or even "an hour" trader.
If you are this trader, you can plan to place order in
EUR/USD, GBP/USD, USD/JPY, Random 50,
Random 25, Random Quotidians, Random Nocturnes
and so on.

So, the first thing you must know is your style. What is
your style in trading as a trader. Are you very aggressive,
moderate or calm trader. You can learn then about the
market that is suitable for your style, so you can get big
profit if you trade in it. We will talk about market
characteristics in other chapter.

If you are beginner, I suggest you to trade in Forex,


commodities or indices before thinking to trade in
Random. Because you can see many analysis from the
Internet about Forex, commodities or indices. There are
also some news you can make as reference to trade in
them. You can see some analysis for Forecast about price
moving and then you can decide to place order better.
CHAPTER III:

WHAT IS RISEFALL TRADING?

Actually, trading just has two conditions. UP or DOWN.


This is the basic of all kinds of trading. We can say that
Rise Fall is other name of Up and Down. Binary.Com
offers five ways to trade:

 Rise/Fall trades
 Higher/Lower trades
 Touch/No Touch trades
 In/Out trades
 Asians
 Digits

Basically, all type of trading is just about up and down. The


different is just in the requirement and environment. It
gives trader many options to take more profit from the
markets. In Binary.Com, RiseFall is a very standard type,
you can Choose Rise when you want to profit from the
market rising from its current level. You can Choose Fall
when you want to profit from the market Falling from its
current level. You can win 80-100% on your stake if you
are correct.
CHAPTER IV:

HOW TO TARGET THE PROFIT

The profit is the difference between the purchase price (the


stake) and the payout on a winning trade. The difference
between the purchase price and the last price in period of
time is measured in pip. Pip stands for ‘percentage in
point’ which is generally the fourth decimal place (i.e.
0.0001). Pip is the smallest movement of price.

In traditional trading, you have to plan your profit very well.


That is because the profit you can get is depending on how
many pips the price moved. There are many factors can
affect your profit in traditional trading like slippage,
requote, hidden fees and spread. The spread is the
difference between buy price and sell price, or ask price
and bid price. If you place buy order, then your purchase
price is sell price, and if you place sell order, then your
purchase price is buy order. So, it always shows minus in
the beginning when you open position. If the spread is 3
pip, then you will get profit if price moves 4 pip or more.
The more pip moves, the more you get profit.

In Binary Option, there is a simplicity. There can be only


two outcomes – win or lose. The price is fixed, so it just
has one price. Buy price is same as Sell price. If your
prediction is correct, you receive a payout that is
determined at the start of the trade. If not, you just lose
your initial stake. In Binary, you can get profit if price
moves 1 pip from our purchase price. As simple as that.

So, in binary options, you can target your profit as lowest


as you want, even 1 pip. The thing you have to pay
attention before placing order is market volatility. You have
to see your order time, it may affect the current price. In
the market, there is a busy time. If you enter market in
busy time, market will move bigger than other time and the
volatility is increasing. So, in this case, you have to target
your profit in suitable condition and make sure you choose
the right duration.

Actually, you can reach any profit with your strategy, but I
suggest you target your monthly profit for the long term
profit.

Usually, conventional trader targets his profit 20%-40% of


his capital. If you want to take this rule, for example you
target 40% for one month in Forex trading, then you must
have 2% profit daily (2%x20) as Forex just have 5 working
days in a week. So, if your capital is $700, you can target
$14 daily, and you will reach $280 profit in a month.

As this rule, you can increase your target when your


capital is increasing also.
This target will help you to manage your trading well and
make trading as your income and good investment for long
term.
CHAPTER V:

RISK, PROFIT, AND MONEY MANAGEMENT IN


TRADING

Trading is a very Risky investment. You can lose much


money in short time, but you can get very big profit and
much money also in same time. You have to own brave,
knowledge and good management if you plan to invest
your money in trading. Don't invest your money in a thing
that you cannot afford to lose.

In Traditional Trading, you cannot measure your profit or


risk as well as in Binary Options. If you are not aware, you
may lose all your capital. In trading, this is called margin
call. In this case, Binary offers better thing than traditional
trading. Binary offers known risks, so you know from the
start what you will win or lose. Binary also has no surprises
like 'slippage', 'margin calls', getting 'stopped out', and
hidden fees or commissions.

Money Management

Did you know that there is no trader always profit? Did you
know that almost beginner in trading lose their whole
capital? Did you know why the professional traders don't
lose their capital?
"The key is not your losing, the key is your profit even
when you are losing"

Did you know that analysis just have 10% portion in


trading? Did you know that money management has 35%
portion in perfect trading?

Trading is always about probability. There is no 100%


profit strategy ever. Trading is always about two things:
profit and lose.

Money management means managing your money in


trading in a correct way. So, you have to make a realistic
profit plan with good proportional stake in placing order.
Don't place order with money that you cannot covered in
the next profit when you've lost the previous. Always
analyze the stake and profit with the percentage of your
capital.

If you are beginner and not so expert to predict the market


and read the chart, I suggest you to use just maximum 1%
of your capital to trade, so you can manage your lose well
with fearless to lose your capital.

Some facts to avoid:

1. Some traders with big capital, especially beginners,


don't want to trade with small stake. If they lose, they
will lose much money which couldn't be covered with
the next profit of their remaining capital.
2. If the capital is small, some traders place order without
good analysis, and placing order immediately hoping to
get big profit without thinking about potential lose they
may face. When they're getting lose, they will be
frustrated then.

Let's avoid those things and follow our rule, so we can


make good profit and increase our capital time by time
even when our prediction is wrong.
CHAPTER VI:

STRATEGY TO GET MOMENT

Perfect trading is trading with 10%-15% profit of the capital


in order to get profit for the long time. It's about decreasing
the risk and increasing the chance to profit.
This is the strategy you have to master it well, so you can
take profit consistently. This strategy will show you step by
step how to get moment in the markets, so you can decide
to open order and take profit from it.

Strategy 1: Candlestick Strategy


You have to know how to read the chart with candlestick
and then you can decide when to open order. The
candlestick you have to pay attention to this is:
 Long body candle
 Hanging man
 Hammer
 Doji
You can see these candles definition in the attachment
file.
See the chart above, there are some candlesticks we have
mentioned above.
The rule to open position:
1. If the market is bull, then there is hanging man,
hammer, or doji after long bull candle, wait for the
next candle for confirmation. If the next candle is
moving against the candle before hanging man,
hammer, or doji then you can open short (sell)
position.
2. If the market is bear, then there is hanging man,
hammer, or doji after long bear candle, wait for the
next candle for confirmation. If the next candle is
moving against the candle before hanging man,
hammer, or doji then you can open long (buy)
position.

Strategy 2: Indicator Strategy


In this strategy, we use indicator to help us reading the
markets. Here is the setting we use:
Indicator:
 Weighted Moving Average (WMA) 7
 Simple Moving Average (SMA) 14
 Bollinger Bands (BB) 20
 Parabolic Sar (P-Sar) -> Optional
In this strategy, we use indicator Bollinger Bands to tell us
about support and resistance of the market. We use the
default setting of Bollinger Bands (20). You can customize
this setting if you know about it, if not, just let it in default.
This works mostly in sideway market, but we can also use
it in trend market.

The rule to open position:


1. In the sideway market (see the box in the picture), if
the candle closed above upper line of bollinger
bands, we open sell order, if the candle closed below
lower line of bollinger bands, we open buy order.
See the arrows in image. I suggest you to take
duration at least 2 candles. If your timeframe is 1
minute, you take 2 minutes of duration. If your
timeframe is 5 minutes, you take 10 minutes or more
of duration.
2. In trend market, we use the SMA and WMA
indicator. If WMA (Green line) cross with SMA (Blue
line) and WMA is below SMA then it's trending in
bearish market. We wait till the opening of candle is
below the WMA and then open position for sell
order. See the arrows in the picture.
3. If WMA (Green line) cross with SMA (Blue line) and
WMA is above SMA then it's trending in bullish
market. We wait till the opening of candle is above
the WMA and then open position for buy order.
4. In Trending market, there is one or more correction,
it means price move against the trending. If it
happens, do not open position against the trend, but
wait till the candle touch the middle line of bollinger
bands. If it touch the middle line and then the next
candle is following the trend, open position again
following the trend. See the blue arrow in the picture.
We take sell order after the blue arrow because the
next candle is forming bearish.
5. Use Parabolic SAR indicator (The dotted line) to
ensure the price, if it is above the candle then the
price will go down, and if it is below the candle then
the price will go up.
6. Warning: Do not open position against the trend, you
will lose much then.

Strategy 3: Binary Payout Price


This strategy uses Binary Prediction. Actually, Binary has
an algorithm to predict the market movement. It has more
significant effect when we trade in market that has big
volatility like forex.
Now, we will show you how this strategy works. We must
pay attention to the payout if you choose stake order (The
less payout - the more the prediction is right), or you pay
attention to the stake if you choose payout order (The
more stake - the more the prediction is right). See the
samples below about this strategy (I include the video in
the course).
 Sample 1:
We will choose fall here because the payout is
lower. Before opening order, you have to wait till
the spot line shows blue dot. If the order is rise, you
have to wait till the spot line shows red dot.
Here is the result:
 Sample 2:
We choose Rise order here:

Here is the result:


 Sample 3:
We open Fall order here:

Here is the result:

Finally, in this strategy, here are the steps:


 In stake order, choose the lower payout, in Rise -
choose blue dot in spot line, in Fall - choose red dot in
spot line.
 In payout order, choose the higher stake, in Rise -
choose blue dot in spot line, in Fall - choose red dot in
spot line.
 NOTE: This strategy must be combined with
candlestick condition and indicator to get best
working.
CHAPTER VII:

HOW TO OPEN POSITION

As we know, trading is a very risky investment. We have


to know how can we take advantage of the price
movement. Since the market is very volatile, some traders
are getting hard to get profit. If we do not know how to
open position, sometimes we will lose the money even
when our order is in right direction.
To avoid this problem, let me show you the right way to
open position.
 Open order in the end of current candle (See blue
line) or beginning of next candle (See green line).

 Don't be late in opening order more than 20% of


candle period. If you are in timeframe 1 minute, don't
open position more than 12 seconds since opening
candle. If you are in timeframe 5 minutes, don't open
order after 1 minute. You will be late. You can use
additional tools use as stopwatch like "Snap timer" to
track the candle time. There are some ways to adjust
the order but we will talk about it in other chapter).
 It's nice to open order after long shadow candle
followed by long body candle. Open order in last
candle direction.
 It's nice to open order after small candle followed by
opposite long body candle with more than 200% of
the small candle body. Open order in last candle
direction.

 In trend market, open orders for average candle


number only to maximize the profit. You see in the
picture below that average of candle in trend bearish
market is 3 bearish candles. That is 1 minute
timeframe. So, if you open 3 positions for 1 minute on
that 3 candles, you get 3 profits.
CHAPTER VIII:

WHEN TO ENTER MARKET

This is a tricky thing when talking about timing in entering


market. How we can get best position when open order.
For buy order, for sure that the best time to open order
when the price is in the lowest position. In other hand, for
sell order, the best time to open order when the price is in
the highest position. But how to know that it's in the
highest or lowest price?
We've talked about Bollinger Bands indicator in the
previous chapter. That indicator is very good to recognize
the support and resistance of the current price and it's
adaptive indicator for the price. So, the best moment to
enter the market when candle break the upper or lower
line of bollinger bands.
Now, in Binary.Com, we can combine that chart with the
line spot in the price box of the order as you see in the
picture below. The color of price will change in every tick.
The blue color indicate the highest price of the moment,
and the red color indicate the lowest price of the moment.
According to this rule, now you know how to enter your
order. You can combine the system with indicator that
we've talked about it in the previous chapter with this spot
line color and you will get the best moment to open your
order.
Note: Remember about the range time for opening order
in a candle that we told you before.
CHAPTER IX:

HOW IF YOU LOSE THE TRADE - PART 1

As a trader, we are not always getting profit. Sometimes


we lose our order. Some traders lose much their money.
The focus is not in losing, but how can we get up after
losing.

There are some methods to minimize our lose or convert


our lose to profit. Commonly, we can double the stake,
increase the payout, or hedging. In this chapter, we just
talk about doubling the stake. The other methods will be
talked in other course.

Double up your stake

This has been explained in money management. With this


method, finally you will be profit in the last.

If you make two orders, then you must have one of these
conditions:

1. First order: Win, Second Order: Win


2. First order: Lose, Second Order: Lose
3. First order: Lose, Second Order: Win
4. First order: Win, Second Order: Lose
From the 4 conditions, which condition you think you get
profit?

Explanation:

 The first condition is profit.


 The second one is lose.
 The third is draw? The fourth is draw?

That's the point of money management. Money


management is always managing your capital to not lose.

The first rule:

 if the first order lose, the potential order profit for the
second order must be bigger than previous stake.
 if your first order stake is $1, the second orders
potential profit must be bigger than $1, or the second
orders payout must be bigger than $1 + current stake.
So, if you place second order $2, with return 98%,
then the payout will be $3.96. Your first orders stake +
your second order stake ($1+$2) = $3.00. So you
have $0.96 in profit.
 If you lose the second, you have to repeat this
procedure till you win and you will not lose any. This
shows that the third condition in the above example is
profit.
The second rule:

You have to begin your order with minimum stake you


can invest. And if you win in the first order, don't
change your stake. If you lose the first order, do the
first rule as mentioned above till you win. If you have
won in any number of order, use the minimum stake
again in the next order.

For example:

 If you place $1 and you profit, the second stake


must be $1, and so on.
 If you place $1 and you lose, place $2 in the
second, and if you win, place the next order stake
back to $1.
 This strategy will show you that the fourth
condition in the above example is not loss.

The last thing you must know in money management is,


don't stop your trading if you lose. You can increase your
stake as mentioned by 100%, or you can calculate and
increase by custom stake which must still cover the lose in
the previous orders. In this case we know that accurate
prediction is not everything, but how do you still have profit
in the last order.
To be continued in next part....

More Info:

Contact:
trade4100@gmail.com

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