September 30, 2010
Day Trading 1 Contract Strategy
1-contract day trading strategy
Let’s begin by comparing two types of day trading strategies:
1 contract trading:
• All Set-Ups OK
• All Markets OK
• Risk/Reward = 1:1
• Initial Stop: Tighter
• Targets: Only 1
• Trade Management: None.
• Objective: 2 Contracts
3 Contacts traded:
• All Set-Ups OK
• All Markets OK
• Risk/Reward = 1.5:1
• Initial Stop: Wider
• Targets: 3
• Trade Management:
– Quick profit, trail stop
• Objective: 4…5…6 Contracts!
Here’s how to get started…
• 1 market, 1 timeframe, 1 set-up
• Patience & Discipline to wait
• 1:1 risk/reward ratio
• 1 profit target
• Daily Goal: Small, Consistent Profit
• Overall Goal: 2…3 contracts
Here’s what to expect…
• Week 1 & 2: Practice on SIM Account
• Week 3: LIVE TRADING
– EXAMPLE: EURO: 6 tick target, 6 tick stop (1:1)
• Winner = +$75.00usd, Loser = -$75.00usd
• (assume 3 trades per day, 2 wins, 1 loss)
– Day 1: +75, +75, -75 = +75.00usd
– Day 2: +75, +75, -75 = +75.00usd…..
– ….Day 5: +75, +75, -75 = +75.00usd
• 5 days x $75/day = $375.00 / week
Add it up…
• $375.00 per week
• 1 contract costs us $750.00…..2 weeks!
• End of week #3…. +375.00
• End of week #4…. +750.00…
– Now we trade with 2 contracts!
• End of week #5…. +375.00
• End of week #6…. +750.00
– Now we trade with 3 contracts!
– FREEDOM!
Patience Pays off…
• Week #7….3 contracts
– $500 – $1,000 /day is now achievable!
– Add more! 4..5…6….7….and your ROI grows!
Here’s how to get started…
• Advanced Course: See Current Pricing $$
• Charts: FREE ($100/mo savings)
• DATA: FREE ($100/mo savings)
• Margin: $500min, so $750 recommended
– Broker References: Sales@SchoolOfTrade.com
• Members Trainings
• Custom Trade Plan
