Mathematically & Scientifically Proven Way To Grow A Small Account

Fixed Ratio Money Management - Is This The Best Money Management Strategy?

Intro/Viewer Question: 0:00
Money Management Basics: 0:34
Losses: 2:49
Fixed Ratio Money Management: 5:04

So I wanted to cover money management & how to grow a small account fast because I received a question on the topic from one of you. The question was,

"Hi Markus, my account size is only $6,000. Any strategy to grow this to 50K in a year?"

I replied,

"Hi, Jitesh, you would have to use very aggressive money management to grow an account that quickly. Be careful! Here's a simple truth about trading stocks: The quickest way to lose all your money is trying to double it."

However, it is possible to grow a small account with money management, & I'll show you a mathematically proven, and scientific way to make money with trading to grow a small account.

A FEW BASICS:
- You Must have SRC profits.
- Best strategy to use for SRC profits is the PowerX strategy, along with the PowerX Strategy.
- Risk Management Trading. On a $10,000 I want to risk no more than 2%, so $200. There are two ways to exit.
* Conservative way to exit: RISK: $200 to make $400.
* Optimized Exit with PX Strategy: Risk $200 to make $1,000.

What about losses? Here is an example.
- Let's say you're doing 10 Trades.
- Of these 10, 5 are losing trades. So we lose (5 x $200) $1,000.
- The other 5 are winning trades. We make
* On a conservative exit: (5 x $400) $2,000. The profit after 10 trades w/losses is $1,000. This is an average of $100 per trade.

Fixed ration money management works like this:
Is it realistic to make $100 per week w/ up to 5 open trades? It's very possible. If you start w/ 10K and start trading on the 1st of the month with the risk per trade of $200. Making $100 a week by risking $200 per trade (you would make more than $100/week but just as an example), then you have $10,400 at the end of the month.

This is where you break your 2% rule and you have to if you want to grow your account aggressively. After making $400 in the first month, Now you risk $400 instead of $200. Everything (profit/losses & position size) doubles.

So risking $400 per trade:
- You would now be risking $400 to make $800 w/ conservative exit.
- You would now be risking $400 to make 2K w/ Optimized exit.

So before if you were making $100/week, if you're risking twice as much, you'll now be making $200/week, $800/month. Your account would grow from $10,400 to $11,200

So the 1st 4 weeks, we made $400 and increased risk from $200 to $400. In the 2nd 4 weeks, we made $800, but we are not doubling the risk amount again, we are still just increasing the risk by $200, to $600. The 1st 4 week's goal was $100/week, the 2nd 4 week's goal was $200/week, and now the goal for the 3rd 4 weeks is $300 per week.

So in this 3rd 4 weeks, we make $1,200, w/ our new total at $12,400. Remember THIS IS ASSUMING HALF OF YOUR TRADES ARE LOSING TRADES.

You now increase the risk for the 4th 4 weeks by another $200, bringing it from $600 to $800, with a new weekly goal of a $400 profit.

I think you get the idea. After about 6 months, your account will have almost doubled, and in a year, it would be almost $50k! So you can make money with options trading fairly quickly, but just be patient and follow these money management tips.

Referenced Videos and links:
Generating SRC Profits
https://youtu.be/FP2x4JULzwU
PowerX Optimizer Software Site:
https://mytradingroutine.com/

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Видео Mathematically & Scientifically Proven Way To Grow A Small Account канала Markus Heitkoetter