My favorite currency pair to trade is EURUSD as it is the most liquid currency pair. My favorite time frame to trade is the 1 minute time frame. Some traders will say this time frame is too noisy to trade but this is not true for the EURUSD because of its liquidity. The trends on the 1 minute time frame look the same as other time frames.
My trading day starts at approximately 4 AM CST and ends at 10 AM CST. My trading day is 6 hours long Monday through Friday.
I look to place one trade every hour for a maximum of 6 trades per day.
My daily goal is to profit by 1% of my account balance. Each hour I will place a trade with a risk equal to 1/4 of my daily goal and a profit of 1/4 risk. This reduces risk of loss. If one or two of my daily trades end in a loss I still have four trades during the day to make up this loss. I find that the majority of time I will reach my daily goal. I use a spreadsheet with one column showing what 1% of my account balance is and a second column to show my actual gain or loss for each of the 6 daily trades. I also plot of graph of these two columns for better visual observation of my progress.
How I place trades. Every hour of my trading day I look for EURUSD to start a new trend. Once a new trend has begun I then look for a pullback. Once the pullback has completed itself I then place a trade with a stop loss at the bottom of the pullback (in an upward trending market) and a trigger to go long at the high before the pullback. This is a breakout strategy. I then place my take profit at one times the distance from the trigger price to the stop loss price. I then let the trade run its course. It will either it profit or stop loss. I then wait for the next hour and repeat the process. A simple strategy that works great.
Now for the numbers: As an example lets say I have $1000 at the beginning of the year. There are 260 trading days in the year. If I profit by 1% each day then I will end the year with $13,291. However, if I only profit by 60% of my daily goal each day then my yearly profit would be $4,737. If I carry this out for three years then I would have a profit of $106,273. That's an average of $35,424 per year. If I carry this out to a five year goal then my total profit would be $2,384,377.00 for an average annual profit of $476,875.
Every 5 years I take the money out of my trading account and start over. Again this is done to reduce risk.
Because of compounding a small initial investment can grow to a nice account balance over time with a conservative trading strategy such as the one I use. If for one reason or other my account does poorly ove the first year I have not lost a lot of money. I can then restart the next year with another small initial investment. Patience and conservative trading is the key to success.
Disclaimer: This is how I have learned to trade the markets and it works great for me. However, I am aware that what works for one trader may not work for all traders. I have learned that every trader has to learn how to trade the markets successfully on their own. So if you try to use my trading strategy I would recommend you do it on a practice account until you can prove to yourself that it will work for you.
Unfortunately TradingView does not allow publishing ideas where the chart is in the one minute time frame. So I am showing an example of a breakout trade in the 15 minute time frame.
My trading day starts at approximately 4 AM CST and ends at 10 AM CST. My trading day is 6 hours long Monday through Friday.
I look to place one trade every hour for a maximum of 6 trades per day.
My daily goal is to profit by 1% of my account balance. Each hour I will place a trade with a risk equal to 1/4 of my daily goal and a profit of 1/4 risk. This reduces risk of loss. If one or two of my daily trades end in a loss I still have four trades during the day to make up this loss. I find that the majority of time I will reach my daily goal. I use a spreadsheet with one column showing what 1% of my account balance is and a second column to show my actual gain or loss for each of the 6 daily trades. I also plot of graph of these two columns for better visual observation of my progress.
How I place trades. Every hour of my trading day I look for EURUSD to start a new trend. Once a new trend has begun I then look for a pullback. Once the pullback has completed itself I then place a trade with a stop loss at the bottom of the pullback (in an upward trending market) and a trigger to go long at the high before the pullback. This is a breakout strategy. I then place my take profit at one times the distance from the trigger price to the stop loss price. I then let the trade run its course. It will either it profit or stop loss. I then wait for the next hour and repeat the process. A simple strategy that works great.
Now for the numbers: As an example lets say I have $1000 at the beginning of the year. There are 260 trading days in the year. If I profit by 1% each day then I will end the year with $13,291. However, if I only profit by 60% of my daily goal each day then my yearly profit would be $4,737. If I carry this out for three years then I would have a profit of $106,273. That's an average of $35,424 per year. If I carry this out to a five year goal then my total profit would be $2,384,377.00 for an average annual profit of $476,875.
Every 5 years I take the money out of my trading account and start over. Again this is done to reduce risk.
Because of compounding a small initial investment can grow to a nice account balance over time with a conservative trading strategy such as the one I use. If for one reason or other my account does poorly ove the first year I have not lost a lot of money. I can then restart the next year with another small initial investment. Patience and conservative trading is the key to success.
Disclaimer: This is how I have learned to trade the markets and it works great for me. However, I am aware that what works for one trader may not work for all traders. I have learned that every trader has to learn how to trade the markets successfully on their own. So if you try to use my trading strategy I would recommend you do it on a practice account until you can prove to yourself that it will work for you.
Unfortunately TradingView does not allow publishing ideas where the chart is in the one minute time frame. So I am showing an example of a breakout trade in the 15 minute time frame.