In part 1 we looked at what you need to prepare yourself to make money fast in trading. In this article we will reveal a trading methodology traders can use to make huge gains even if they have never traded before.
This method is simple to understand, easy to apply and you will see exactly why the logic works.
It can be applied by any trader to make money fast, so let's get started and see how to apply this method to build real wealth.
Basics
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 look at why they lose and how you can turn this to your advantage.
It's an accepted investment phrase to "buy low and sell high" were all familiar with it and this is the way most people trade.
Problem is it doesn't work!
How and why markets really move
If you look at a price chart you will see repetitive patterns or trends, this is the way we are going to trade via a technical system.
Charts represent all the fundamental supply and demand inputs, but more importantly, the views 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 aim is to catch them 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 get in to the trade the big moves with this strategy. Why?
Fact: Most major trends start from new market highs.
The losing majority of traders wait for a pullback to get in the market. Of course, it never comes the price simply accelerate away from the breakout point and the losing majority don't get in on the trade.
The millionaires trading secret
Is actually to buy "high and sell higher"
Most traders can't do this.
They hate buying a high and feel insecure, they want a pullback as they have missed some of the potential profit, it's mentally tough buying a trend in motion but it's 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 breakout method works. In technical terms all you do is buy breaks of resistance at important market highs.
How to make a breakout method work and make money fast
You need to keep some other points in mind to build wealth quickly with this method.
1. The big trends only come a few times a year in any market, so you will need to trade infrequently.
Most traders think they can make money fast by day trading and always being in the market. The reality is you must only trade when the odds are in your favour and breakouts of major resistance don't come often.
2. When you take a trade you need protect yourself and you can do this by placing a stop below the breakout point to get good risk reward. Keep in mind from part 1 you need to keep risk low as you are using leverage.
3. You can also give yourself added protection by trading options which give you unlimited profit potential with limited risk.
The most important point of all!
If you want to make money fast you need to have the courage to accept huge gains. This may sound odd, don't we all want big gains. Yes we do, but most traders cant wait for them.
As soon as they have profit they want to take it before it gets away. The bigger it becomes the more they want to bank it, each dip in the trend that erodes their gains causes them to panic and eventually they bank a small profit.
If you are trading major breakouts you need to have the courage and conviction to hold on and accept short term dips in equity and keep the longer term picture in mind.
Getting started
All you need to build wealth
All you need to make money fast is the right mindset, the right method and courage to accept huge gains. If you can achieve this you will make money fast.
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