Most Traders Never Understand Trade-Level Compounding (and Certainly Don’t Use It)
This is aggressive trading.
This is putting it on the line.
This is compounding at the trade level… something very few traders understand, much less attempt.
But here’s why I believe it’s worth it:
“Some of the world’s greatest feats were accomplished by people not smart enough to know they were impossible.”
– Doug Larson
Plenty O’ people will tell you it’s a “pipe dream” or a bad idea to try to make $99,000 over 300 trades (which is exactly what I’m going to try to do, as you’ll see in a minute…)
I think the naysayers are wrong.
Admittedly, I would never trade my only trading stake this way.
It makes sense to break off a little risk capital to trade hyper-aggressively.
The majority of my trading capital grows via “normal compounding” (the slow way)… it only makes sense to do this with a small sub-account.
Because Risk/Reward is the name of the trading game.
Growing an account quickly will ALWAYS have drawbacks.
It is possible to pump up the equity peaks (the lovely parts of your equity curve) without plunging too deep into terrible equity lows…
Higher Rewards Require a Different Type of Risk Management
Take a look at the equity curve chart below:
These trades are simulated for a 43% win rate strategy, with a 2:1 reward-to-risk ratio.
The risk per trade is 5%, which is crazy (of course, because every goo-roo trader harps on the “risk 2% per trade”)…
After 322 trades, this puny $1000 account hits $109,622 – which is great.
This is what happens when you trade an o.k. trading system with 5% risk per trade and compound the account.
But the chart below is even more impressive:
In this chart you see the exact same trades, exact same system, but instead of compounding at the account level, this is compounding at the trade level.
This lil ‘ol $1000 account ramps up to $900,000 in this simulation…. even though they are the same trades, the same sequence of winners and losers.
Everything is the same except for the risk management rules.
The Money Is Made During The Losing Streaks
It’s fun to look at the hypothetical equity curves and salivate over the ferraris you can afford once your trading account hits that level….BUT
The reality is most traders give up before they hit the promised land...
Which is too bad.
If you don’t trade through the drawdowns, you’ll never hit the new equity highs.
Which is why trading psychology is a critical component of this course.
To grow an account quickly, you must deal with the losing streaks. These are the silent “trader killers.”
Most traders throw in the towel long before they hit the sweet, sweet equity highs.
Here’s What You’re Getting…
This is different to what you’ve seen before, because there’s no magic system (in fact, you can do this with dozens of different trading systems).
No “holy grail” or the secret harmonics W.D. Gann passed down to his great-grandkids… instead you’ll get what matters.
Week 1: Broker Risk
Why this well-respected western country is the *absolute worst* place to look for a broker (even though it’s considered one of the financial centers of the world)
Week 2: The Three Keys
Discover the method for pumping up your winners, it’s literally the secret of the (very) wealthy, and you can apply it to your trading
Why some trading rules must be broken in order for you to achieve lofty goals (traders who don’t realize this will never compound accounts quickly)
How to survive the bad times (HINT: losing streaks stink, it’s what you do after you hit one that matters)
Week 3: You Decide The Risk/Reward
The Australian “secret” to high reward-to-risk trading (this sounds weird, but it’s true)
Three steps to compounding an account quickly, even if you’ve never traded profitably before
The tactic you must master if you want to trade for large gains (and no it’s not simply ‘trade a high risk/reward strategy‘)
Week 4: Losing Streaks
How to learn from losing and why most traders “learn too much” from losing (HINT: it’s also why many traders spin their wheels for years)
Your trading success depends on how you view losing streaks, here’s a mental trick so you can trade happily through losing streaks
The weird reason why demo account traders smoke live account traders (you can use this to your advantage once you grasp this)
Week 5: Trading Psychology
Why your unlucky trades may kick-start your trading and guarantee your long-term trading health (so you can ignore “trading fluff” and focus on what makes moolah)
The secret ways billionaires use painful life lessons as motivation and fuel for success (every trader needs these tools in his toolchest)
How to learn the “wise trader” method for literally vaccinating you against the number one “trader killer” nearly all traders who don’t know this will quit trading (but now you will thrive)
Here’s what you’ll get in Profit Bricks:
3 Steps to making more moolah with your trading system (doesn’t matter what type of system you prefer to trade)
How to compound at the trade level (AND why this accelerates your account growth faster than “normal compounding”)
How to learn the Profit Bricks algorithm even if math or statistics are not your strong point (HINT: it involves spreadsheets)
What to do if you want to use Profit Bricks with a higher win rate system (this is counterintuitive, but true)
When it’s OK to accept a lower win rate (and why Profit Bricks will love you for doing this and repay you 10 fold)
Where to find the sweet spot with your risk rules (take a close look at these two things and you’ll be set)
What if you could find a Profit Bricks friendly broker to help you improve your returns? (You can, and you’ll see how in Week 5)
The secret to surviving drawdowns with Profit Bricks and why this is the key to accelerated account growth (This tactic almost guarantees success)
The unexpected side-effect of using Profit Bricks (is it possible to push your equity peak highs higher without having the same effect on your losing streaks?)
Say goodbye to watching your losing trades eat up all of your winners – once you try this system you’ll never want to go back to “normal trading” again
3 Ways to improve your trading results with Profit Bricks (one of these will be your “go to” method once you see how simple it is)
Why you must break all the “normal” trading rules when thinking about risk to grow your account quickly (and you’ll get the step-by-step breakdown in this course)
How to know what Profit Bricks will do for your trading system without ever risking a cent (this is gold and the peace of mind is worth the price of the course alone)
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