Ready for a Friday Strategy Review?

Good morning, Traders!

Today is another glorious Friday, which means it’s time to close down another week of trading, unwind over the weekend, and prepare to resume our trading on Monday!

Going over some of the main facts that support my strategy is one of the greatest ways to prepare for the trading week. The risk associated with trading is something that a lot of new traders struggle with as they jump into futures  trading.

Anything involving money is inherently risky. That is simply a fact of life. However, because of the risk of financial loss, trading may make a lot of individuals anxious.

However, if you use the right strategy, you can mitigate the potential for loss and make sure you win more trades than you lose!

Keep reading to learn how to properly gauge and manage risk while trading the futures market. It’s information critical to your success as a trader!

Formula For Growth

A formula for growth is applied in futures trading. You’re not going to win every single trade, so you’re going to need a strategy. You must accept the reality that there is a risk you will lose some of your money when you enter a trade.

Trading is never viewed as simply one, two, three, or four trades. For you to have a better understanding of the formula, we’ll call ten trades “one block”. Keep in mind that you should always set a minimum of a 10-trade or one block when it comes to succeeding in trading. Placing ten or more trades will help you generate more profit.

formula for growth

The formula helps you to estimate the percentage that you’re going to lose or win on a single trade with a one-block minimum. For example, say that you win six blocks and you lose four. If you know that you’re going to be a 60% winner, you have to have a plan for this.

Risk Vs. Reward

Let’s look at this from a different angle. Say that you see you’re going to win double the amount that you lose, or you’re trying to win $200 per trade.

By playing six trades, you’ll get $1,200. With the formula mentioned above, all you have to do is double, triple, quadruple, or add more to your initial trade to win more profit in the end.

So, for six trades, you might get $1,200, but you’ll lose $400. All in all, you’ll end up with a net gain of $800 for every ten trades.

risk vs reward

What happens is this; if you start trading and immediately lose $200, you might think that the strategy is not working and give up. However, you’re going to prevent yourself from the $1800 net gain that the formula is supposed to give you. You have to understand how many times and how much you’re going to win and lose.

Now that you have the basic information to help you understand how to manage risk, it’s time to take the next step toward becoming a winning trader! You need to stop making excuses and move forward. You’re account won’t grow unless you make the trades, and I’m here to help.

Keep On Trading,

Mindset Advantage: Execute

In the end, trading is about execution. A detached, matter-of-fact execution that takes into account market data. It’s those darn emotions that get in the way.

What if you were able to execute every trade like you were cleaning up after a great meal with friends or family? 

Instead of each entry or exit being the heart-pounding, drama filled moment that it is (for many) – remove your emotions and treat it as though it just needs to be done.

Like taking out the trash, you don’t think about it. You don’t shed any tears over the 5 day old ravioli or hamburger buns that you’re throwing away. Why waste another second on that trade?

Good or bad. Simply execute. And free yourself to see the market from a different point of view.

Traders Training Session

How-to Fibonacci Retracement Tutorial
How-to Fibonacci Retracement Tutorial

Stay tuned for my next edition of Josh’s Daily Direction.

And if you know someone who’d love to make this a part of their morning routine, send them over to https://joshsdailydirection.com/ to get signed up!

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

Reader interactions

2 Replies to “Ready for a Friday Strategy Review?”

  1. Hello. I have been a trader for 6 months now. Sometimes I get lucky sometimes I go to the detriment. I read your articles and study the market. I'm just wondering if you can make money yourself what's the point of teaching others. you don’t know who is telling the truth. And if I make you a business proposal. For example, to earn money together, you tell me when to open a deal and receive a percentage of earnings. Thanks in advance, I will wait for your answer.

    Reply

    1. Traders Agency Analyst Anthony Speciale January 23, 2022 at 7:47 am

      Hi Jeyhun. Thank you for leaving us a comment and giving us an opportunity to respond. As you'll see if you've watched any of our free educational trainings, we are actual traders with proven track records. Why do we teach? Because we love it and we're passionate about it. There is a sacrifice made when you decide you'd like to share a life skill with an audience of students. We pledge NOT to take the trades we alert to our students. That's often a painful choice to make, I personally offered my students last year a high ROI % in trade recommendations, than I made for myself. We at Traders Agency are publishers of our own research, we do NOT involve ourselves in any such business proposals. However, we'd love for you to consider joining our educational programs and deciding for yourself if becoming part of the Traders Agency family is a fit for you.

      Reply

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