On the road to profitability

<p>In my previous articles I discussed the importance of the size of the stop loss. This can make the difference between profit and loss.</p>
<p>I also discussed what you need to do in order to succeed.</p>
<p>But the most important thing in my view is the size of the stop loss. To increase the odds of success you need a wide stop loss or no stop loss. Don't worry next week I will show you how to trade safely without a stop loss.</p>
<p>I run two strategies, intraday (day trading) and short term (swing trading), and I can tell you the swing trades make ten times more than the intraday trades. Why? Simply because the swing trade have a large stop loss of 100-130 pts, so the stop loss is less likely to be hit. Furthermore a swing trade is held for longer than an intraday trade, the profit is larger.</p>
<p>Basically the longer you hold a trade and the wider the stop loss the more profitable you will be. That is because a) there is less chance the stop loss will be hit, b) the profit potential is larger because a swing trade targets the big moves.</p>
<p>Now if I increase the holding period, I remove the stop loss and I reduce the trade size, I gets a better system. This strategy is called position trading, it is an interesting strategy that I will introduce next week.</p>
<p>Whether you choose swing trading or position trading, in both cases we target the big moves lasting weeks or months. We recently went long Gold at 1875, I am looking for a large profit on Gold. I have explained to my members why gold should move higher in the weeks/months ahead. Gold is breaking out…as I expected.</p>
<p>That was the chart I published just before we bought:</p>
<p> </p>
<p><a href="https://www.bettertrader.co.uk/.a/6a0162ff9ddd58970d026bdea22fd7200c-pi"><img alt="Gold201029" border="0" src="https://www.bettertrader.co.uk/.a/6a0162ff9ddd58970d026bdea22fd7200c-800wi" title="Gold201029" /></a></p>
<p> </p>
<p>Special offer £10 <br><br>Receive regular analysis and trade signals on FTSE 100, Dax, S&amp;P 500, EUR/USD and gold for one month. You will need to download the e-Yield app. I offer a one month trial for just £10. You can join the service here:</p>
<p><a href="https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&amp;hosted_button_id=DJRXL5P8JFC9S">Launch one month trial</a></p>