I have decided to try a new strategy for trading CFDs (Contract for Difference). I’ve previously written about the pitfalls of trading with CFDs and gearing your trades. It is highly risky, and most traders end up losing money. First and foremost, if you are a rookie trader and have little funds: Please live your life like our 2nd lesson tells you: Never Lose Money. And secondly, make sure you join the 33% club and are able to pledge 33% of your monthly income to invest in safer assets (like index funds, bond funds, stocks, and so forth).
If you have more money to play with on a monthly basis, and you are still able to be a part of the 33% club and live your life, then this new concept might be something for you.
I’ve played with multiple scenarios and schemes trading CFDs the past year. Lately, I’ve made quite a substantial sum of money shorting and buying different indexes, currencies and commodities using IG.com. When that is said, the past years I’ve lost A LOT of money on trading CFDs. This is not a game for someone with anxiety (or money) problems.
I’ve come to the conclusion that I will stop “hunting the perfect trade”, as the perfect trade simply does not exist. You will lose trades, you will win trades. The important part is that you win more than you lose, in total. Instead I will try to increase my portfolio on my trading account with 2% each day I’m in the market. I’m not going to trade every weekday, but the ones I do I’ll set a goal for 2% increase. To feel that I’m increasing my chances, I’ll double the trade if a trade is lost. This way, I might win back what I lost, and increase my holdings with 2%. I’ve decided that I’ll continue to double up a total of three times if I lose the first trade. If you believe you have a 50/50 chance of winning, then you will have a 6,25% chance of losing all four trades (which will hurt your pocket!). However, as I’m telling myself: If I cannot find a winning trade four times in a row, I should not trade.
If you start with 10 000 USD (or 10 000 NOK shown below), you will have earned 2 189,95 USD (or NOK) after the tenth day. This is not that much, but if you continue with the strategy and you are able to have 500 winning days with a 2% increase, you will have earned 195 642 638,58 USD (or NOK). That’s quite a substantial sum. And most likely, you won’t be able to have 500 consecutive winning days. This is an experiment, and I welcome you to join. Look below for a detailed explanation:
|50% chance||25% chance||12,5% chance||6,25% chance||6,25% chance of losing:|
|1||10 000,00 kr||200,00 kr||400,00 kr||800,00 kr||1 600,00 kr||3 000,00 kr|
|2||10 200,00 kr||204,00 kr||408,00 kr||816,00 kr||1 632,00 kr||3 060,00 kr|
|3||10 404,00 kr||208,08 kr||416,16 kr||832,32 kr||1 664,64 kr||3 121,20 kr|
|4||10 612,08 kr||212,24 kr||424,48 kr||848,97 kr||1 697,93 kr||3 183,62 kr|
|5||10 824,32 kr||216,49 kr||432,97 kr||865,95 kr||1 731,89 kr||3 247,30 kr|
|6||11 040,81 kr||220,82 kr||441,63 kr||883,26 kr||1 766,53 kr||3 312,24 kr|
|7||11 261,62 kr||225,23 kr||450,46 kr||900,93 kr||1 801,86 kr||3 378,49 kr|
|8||11 486,86 kr||229,74 kr||459,47 kr||918,95 kr||1 837,90 kr||3 446,06 kr|
|9||11 716,59 kr||234,33 kr||468,66 kr||937,33 kr||1 874,66 kr||3 514,98 kr|
|10||11 950,93 kr||239,02 kr||478,04 kr||956,07 kr||1 912,15 kr||3 585,28 kr|
|500||195 652 638,58||3 913 052,77||7 826 105,54||15 652 211,09||31 304 422,17||58 695 791,57|
I believe there will be some days I won’t open a single trade. Some days I won’t be able to. But I’ll record all my trading days and add them in this google document: https://docs.google.com/spreadsheets/d/15d5Z8m1ryawuxtOxyEJg1npGK_2BGammQaKHunWokUc/edit?usp=sharing
You are free to start on your own and add your numbers to the google doc above, or create your own sheet for your eyes only.
I also invite you to join our new 2% Club on Workplace: https://work-12050764.facebook.com/groups/368220986926982
What if I lose 4 Consecutive Times?
Well, you can either tell yourself that this wasn’t for you, you could try to double a few more times (VERY RISKY), or you could leave your trading chair for the day, come back tomorrow and start over with the capital you have left. I haven’t decided what I’ll do if I lose four times in a row, but I think I will stop trading for the day and take a decision the next day. Better to sleep on it and calm yourself down before taking any crucial decision.
I’m using IG.com to trade with CFDs.
Disclaimer: I, nor Hacked.com, can be held responsible for losing trades. Do not trade with money you cannot afford to lose, and always do your own due diligence on any strategy proposed by us.
One Week With Live Streaming and I Ended Up With 13 500 USD in Profit
I went out on a limb this week with live streaming all my trades as a part of the 2% Club. All members were able to view the live streams through Workplace. Below I’ve added all the videos of my trades this week so you can take a closer look at what I did, which mistakes I made and how I ended up with 13 500 USD in profit.
My Golden Rules for Financial Freedom: Why I’m going to Reach $1 000 000
This is the most important overall lesson I can teach you. It involves multiple of my strategies, strategies that I’ve written about before. But I’m writing this article to give you an overview of what I’m doing. Since I started Hacked.com and the new strategy for reaching $1 000 000 and financial freedom (in my eyes, could be very different for you) I’ve made more money than I’ve ever made before. My cashflow is increasing monthly thanks to CCN.LA, Hacked.com and Wilhelmsen (my regular job), and my investments are doing very well, including my trading strategy – the 2% Club.
I’ll make this article to the point. No bullshitting around. I sincerely hope that you will follow the same strategy as I am, it will make you financially independent in the long run.
Golden Rule #1
Always be cashflow positive.
You must have a job or a business where you receive positive cashflow on a monthly basis.
Golden Rule #2
Have a side gig.
If you are employed, try to establish a second revenue stream. This can be done by creating a business on the side or even having a second job (even though I would not recommend the latter). With a second revenue stream, you are certain that you will be cashflow positive even though you would lose your regular job or business. I’m currently employed in Wilhelmsen, but I have two separate revenue streams from Hacked.com and CCN.LA, including the one I’m receiving at Wilhelmsen.
Also read: You will lose your job
Golden Rule #3
Continuously increase your monthly income.
This might be hard if you are employed in a company. But then you should have a side gig you can focus on off-hours. Always try to find new revenue streams.
Golden Rule #4
If you have loans, try to pay them as fast as possible. I do not like to have loans. You could benefit from having loans if you get tax deduction – as we do in Norway, but still, I’m no big promotor of having debt.
Golden Rule #5
Invest surplus money.
If you have surplus money, money that you do not spend on the most essential things, invest a certain percentage on a monthly basis. I’m investing 33% of my monthly income and will do so for many years to come. That’s why I created the 33% Club.
Golden Rule #6
All these golden rules should be followed in the same chronological order. If you fail at one golden rule, you should not continue to the next one. There’s a reason for having “trading” as the last golden rule. You should not trade with money unless you are able to complete the first five golden rules. Trading is risky, you can lose more money than you put in, and that fast. However, if you have reached the sixth golden rule, then you could join me in the 2% Club (or create your own trading strategy).
And finally, remember: Never lose money.
Please comment below if you have inputs.
Featured image from Shutterstock.
After a Bloody Monday I’m back on Track with 20 000 USD in Profit Today
As I’ve posted on Workplace (our intranet for Gold and Platinum Members), I’m live streaming my trades this week as a part of the 2% Club-strategy. Yesterday I had three sessions shown below:
Session 1 Monday
As you can see from the video above, I gained my 2% on my first trade. Since I wanted to trade the entire day for our members, I decided to do two more sessions.
Session 2 Monday
No trades were filled by me during the second session. I wasn’t comfortable enough to enter a trade.
Session 3 Monday
The last trading session went awfully wrong for me and I ended up losing approx. 120 000 NOK which is 14 634 USD. I decided to quit and recoup the next day.
Session 1 Tuesday
I entered a trade last night where I again sold Dow Jones and increased the bet. This is highly risky and I could have lost more money yet again.
Session 2 Tuesday
Thankfully, the trade worked and I was able to regain what I lost yesterday and still be on track for a 2% increase per trading day.
Current Result of the 2% Strategy
|Day||Start||Result||%||If 2% Gain||Difference|
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- Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction December 14, 2017
- Trade Recommendation: XMR/BTC Pair Throwback December 14, 2017
- Trade Recommendation: FCT/BTC Bullish Reversal December 14, 2017
- Can a New Generation of Regulated Token Sales Save ICOs? December 14, 2017
- Trade Recommendation: NZDJPY December 14, 2017
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- Asian Market Update – Thursday: Ethereum Extends Rally; Asian Stocks down After US Rates Hike December 14, 2017
- Daily Analysis: Dollar Falls, Gold Jumps after Yellen’s Final Move December 14, 2017
- Crypto Market Reaches Historic Milestone as Ether, Ripple Surge December 14, 2017
- Technical Analysis: Volatility on the Rise Again, as Ripple and Ethereum Hit Targets December 13, 2017
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