Stop trading forex then. Move to stock options. Leverage maybe, 3/1-5/1 which is pretty good. If you earn 50% in one month, that is 600% annualized. Of course, you have to be buying calls and puts. Selling premium, you will make much, much less. Also, can you accept win rates of 30-40%? Risk management still matters, risk no more than 2% per trade. Limit yourself to 5 trades all at once. No more than that. Make sure your trades are aligned with the major trend.
I trade those too, buying calls and puts. The options give it an added boost in returns. DBC call options, I got 155.76% return in 10 days holding the past month. That is on the 2% of capital I risked on that trade. Take note, the big winners does not happen as often as the the smaller returns of 50%, 70%, 80% which is more common. There are losers too, more of them but, as long as the losers are small in size, you can still make a decent amount of monies.
What tells you when to enter a trade, and in which direction? Right now I'm just eyeballing charts and reading news headlines
I am only interested in trends. Think about it. Trading like gambling is a game of percentages. If the odds favor you (positive expectation), you have a trading edge and will make monies. Where to enter? You have your choice of pullbacks, breakouts, support or resistance, etc. If you have a strongly trending stock or ETF, you will make monies. I trade deep in the money calls and puts to put the odds in my favor. Less leverage, higher delta, but, you only need a smaller move in your direction to make monies. Part of the premium is intrinsic value and time value is a smaller part of the premium. I like to put as much of the odds in my favor like a casino. Retail traders shooting for the moon and homers are the real gamblers. They will lose all their monies.
FJ, Good question: What tells you when to enter a trade, and in which direction? Ever watch somebody remove wall to wall carpet from a room? They get nowhere until they find one small area of the carpet where they can 'gain purchase', where they can get a start to rip the rug up. Nothing else gets much progress until they get that first tiny little piece of material pried up enough to get a good grip, a spot in the corner where they can get a grip with some channel-lock pliers and start ripping that bad boy up. Trading and carpet? Well if you can get a clue how specifically another person who does something similar to what you want to do, which is presumably to extract some money from the market, if you can see that in action live, it may give you a clue about where to start getting some traction on your method. A corner that you see and comprehend. Not that you will trade the same way that anyone else will. There's no way you'll trade like anyone else but the end goal is to have more than you start with. Same as every other trader. What tells you when to enter a trade, and in which direction? Opinions and methods vary. Not many traders will show you how they trade live. Here's one who will. KCalhoun LIVE 'Trading the Open' Stock & ETF Day and Swing Trading Room Inverse ETFs for the upcoming crash: UVXY TZA SQQQ SDOW SPXU VIXY TWM Discussion in 'ETFs' started by KCalhoun, Jan 3, 2022. https://www.elitetrader.com/et/forums/etfs.62/ UVXY Daytrading insights https://www.elitetrader.com/et/threads/uvxy-daytrading-insights.364875/
How to trade trend https://www.elitetrader.com/et/threads/interesting-search-terms.365486/page-2#post-5560067
Currently I just look at the recent trend and go in that direction. I'm planning to either upgrade this strategy or abandon trading completely.