Well there are things you can trade for that little risk. But I think your missing the point. The point here is the power of compounding (not daily every trade but just 1x a month and at just $50 on $1000). Again in the video i state not saying you won’t have losses, not saying you won’t make withdrawals, not saying you will always make 5% (even though you could make more etc…[and i do stress when you are up more than 5% to not give it back if you want to keep trading only risk the % above it]) its just understanding the math as $50 on a $1,000 account seems so small to most people but it is huge.
The math was started at 1k for simplicity. you can just easily say per 1k (ie assuming you have 3k, 5k, 10k, 30k etc…)
The easiest would me micro forex. You can make a pip worth a mere .10 cents. so lets say you have 24 tick stop loss that is $2.40 and you could do 3 mini lots.
So in that case does that mean you would make less money? Yes of course. But your account will last longer and as it grows (as shown above) would be come larger allow mini lots, Nadex, Futures etc…
There are certain binary strategies that can do this though you have to be a lot more skilled in magnet pricing to do them.
Sometimes spreads at night on forex. US Tech 100 can have a low risk etc…
But your missing the main point which is the importance of risk management and the power of making 5% a day.
Will some traders have to risk more than this (yes if they don’t want to follow this risk management plan and are not patience and not wiling to say trade micro forex. Is there anything wrong with that. No not really. The trader just needs to understand that by risking a larger % of their account they have less room for drawdown and will have more psychological damage (causing them to not take a winner - doubting it - then being frustrated hop in on a losing trade). I have seen this be the downfall probably the top downfall of most traders. No one likes to be told they don’t have the amount of money to trade properly. Eventually they will accept it but it can take a few go rounds of funding an account to accept it and that is if they are still up for it. If they can take the damage and see the full amount as risk capital and understand that by not using such risk management measures they do increase the probability they will have to fund their account more than 1x then that is fine. If they are not comfortable with that and say they want to take $24 of risk. Then they would need to save up say $3k and while doing that learn and demo trade and build discipline. As I state alote its not about where you want to be in 12 days its about where you want to be in 12 months 12 years. Having to hit reset again and again is the same as saving and funding. Or like I said do mirco forex etc… and get going live. Its not much but if done correctly it can add up quickly (the main point of the video). Either path is the traders choice.
