Minimize risk, maximize profit and ride a trend

Hi Lorecavoli,

I would pinpoint one important fact and demonstrate why this method works that easily for me and most likely for many other folks here. Let me use the example of my last NZDCAD trade.

The move that I caught was about 120 pip big. Which you can consider a small movement in the market that happens quite often. The trick is that I caught it with 5 trades but risked only with one. So basically I have risked 30 pips for catching around 500 pips. I could not achieve that by taking one big trade because I would still risk 30 pips but would go for 120 only.

This method is very forgiving. You can make many mistakes, open many bad trades with quite wide SL and still profit quite easily. That's the beauty of the system. I do not think that my trigger signal is interesting at all. It is important that when I am wrong, I am wrong with one position. When I am right, I am right with 2-10 positions.

I actually can not imagine how someone could be a losing trader this way. If I would be taking RRR 1:1, 1:2 or even 1:3, I would not be a profitable trader. So actually I can be pretty bad at opening the trade and choosing the direction of the trade because when I am wrong I lose R. But when I am right I might win 20R easily.

I know that entry trigger is important for you at the beginning and it is definitely an important part of the trading but believe me that my entry signal might be much worse than yours and I could make more money, or vice versa.

I remember when I was reading building equity millipede that I was craving for entry signals too. I can definitely help you with that, but do not expect something super complex and successful. I just enter in the direction of the trend.

Do you want me to describe entry signals in more detail?

I opened many positions today. Some of them held since the previous week. I'll be setting SL in about 4 hours once I see how markets move. The huge advantage of so many trades is that you are unable to easily follow what is making money and what is not and therefore you do not check prices so often.

Many Thanks, it would be great if you could describe your entries in more detail!

I was thinking about how to do it so you get the added value. If I give you too much information you won't be able to follow it for a long time as you won't trust it. So I'll split it into two most important questions.

1. What direction to enter?
2. When to enter?


Now ignore my trade, please. And tell me what direction is the price going

The same question.

Direction of the movement?

And again, the same question.

I would say up down up down

All trades closed. Today is another 10%+ day.

Which of those would you trade in the direction of the movement? All of them?

The first one could be just a pullback, and go back down shortly.
The second one could be ranging... direction is not straightforward.
The last two have a more explicit direction...

Thank you for this small exercise.

Let me pinpoint something I consider very important. And I am very glad that you have written it as you did.


The first one could be just a pullback, and go back down shortly.
The second one could be ranging... direction is not straightforward.
The last two have a more explicit direction...


My feeling is that you are trying to guess what is going to happen next. It really does not matter in trading. The only thing that matters is that you make much more money when you are right and lose much less when you are not.

I am trying to shift your mindset from analyst to trader here.

You just need to be right for about 2-3 candles and then to move your SL to BE or to take profit. I find it useless to predict what will happen. It is really much easier to do what you see on the chart. Is it going up? Then I want to be a buyer. Is it going down, so I want to be a seller. I can not say the direction? I want to be out or buying cheap or selling high.

I like to focus only on few candles. Let's say 5-10 candles back and enter in the direction of that move. I really like the beginning of the moves as there is a huge reward when I am right and small loss when I am not.

Let me show you my last trade. It might be a losing trade soon, but I want to show how I think about the market. My thinking might not be a correct one so just take from me only what suits your personality and ignore what does not.


I see here a potential up move. If I am wrong, I'll lose around 50 pips, but if I am right I am aiming for 1100 pips and most likely I could be able to catch it with multiple trades so the potential is growing exponentially, while the risk remains 50 pips.



I have no idea if markets go there. Maybe it continues downward, but for few last candles it wants to go up, so I'll be glad to enter and see what happens. Most likely it will continue going 1-2 candles in my direction and then I can move it to BE or I'll hit an SL soon. Usually, these two scenarios happen.

Feel free to open a demo account or small live account and try it with me. I'll be more than happy to guide you if you let me.

If others are also interested, feel free to post your trades and ideas. But please focus on the movement that is happing right now and move SL to BE if it goes with you for 2 candles. And do not be afraid to be wrong. We are traders, we can be wrong and still make money. Analysts must be right in order to make money so do not feel any pressure to do what could be right, do what you see.

Let's try it

Great to see you on board.

There is a strong sell momentum. I would not take that trade. Maybe good rule of thumb at the beginning could be taking long positions when a candle closes above SMA 5 and SMA 10 and taking short positions when it closes below.

That way you'll be trading with momentum all the time and your chances of moving to BE will be much higher.

So basically our goal is to be in the profit in the first candle. It does not happen always but when trading with momentum, it happens quite often. Let me bring you AUDCHF. It is moving UP.

There is a good chance that it continues going up and I can lock it at BE.

I took the same trade as you did, just a few hours later when there was momentum.

I also took short USDJPY and EURJPY and moved SL. Still not to BE, but very close.

NZDCAD short



EURGBP long. I don't like it that much, but risk is very limited

Not sure how EURGBP develops but I am sure I'll be a very aggressive buyer on the bottom red line.

USDJPY, adding to the position.

Great thread! : )

I don't have much time to trade recently, but I've managed to add some to EU this week.
Will it work out? Probably not, but it didn't cost me a thing, so ... /shrug

Thanks for the warming words emmm.

I see you successfully applied pipEasy's method and I am very glad about that. I admire you for being able to hold those trades for so long time. I can imagine how fast how profit grows. Good job and thank you for contributing to this thread.

I'll be very happy if you also contribute here as an experienced member and trader who has a lot of experience with building equity.

Most money is made while we sleep.


It sounds quite provocative but let me tell you a few things. We try to monitor markets as often as possible because we think that it helps somehow our positions to grow.

Then we go to bed and do not check it for 8 hours. We wake up and find positions in huge profit. So it means that our activity is not that important as waiting until the position turns into the correct direction and goes that way for enough time.

Participation is so important. Buying a stock or real estate does not make you money in a day. It usually happens during long months or years. You must own the asset for a long time and one day you just wake up with much more money. It sounds like magic and most likely it is.

Your job as a trader is to open a trade with a small risk and leave it as it is for some period of time. You are not going to be a better trader when you stare at the platform for hours. The result will be the same or maybe even worse because you'll close some trades just because of your feelings. You wouldn't have those feeling when doing something else in the offline world.

So my advice to you, dear traders, is to stay away from the market as much as you can and be there only when you expect a signal to appear.

Enjoy your life and participate in all markets you can afford.