For Early Profits, Keep it Simple
That’s certainly been the experience of Ohio electrician, Franck Benedetti, who recently got started with Daily Profit Machine.
Like so many others, Franck came to trading with the idea of improving his financial position in preparation for retirement.
And like so many others, he found the going much tougher than he had anticipated.
“I wasn't consistently making money,” he recalls, “had way too many losers to winners. And I wanted something different.”
Franck was immediately attracted to Daily Profit Machine after watching a webinar and is enjoying the simple step-by-step approach to trading popular stocks like SPY (the SPDR S&P 500 Fund).
"I wasn't making money consistently, had way too many losers to winners. And I wanted something different."
Support, Resistance, Risk, and Reward
Most importantly, though, Franck has quickly gained a whole new understanding of the approach to risk, reward, and goal setting that is the real key to trading success.
The idea of cutting losses is easy-to-understand. And the correct use of stop losses is, of course, one of the most important lessons the new trader needs to learn. However, it’s just as critical to set realistic profit targets.
Hourly, 15 minute and 5 minute charts show numerous support and resistance levels. And traders who don’t know exactly where they are can easily see the gains from potential winning trades wiped out as price movement goes into reverse.
And as Franck has learned, while there’s a huge temptation to keep a winning trade open in hopes of squeezing out the maximum profit, it seldom works that way. At least not for the day trader.
The Critical Importance of Profit Targets
“The last two trades I made just over 20%,” recalls Franck, “and could have made quite a bit more if I let it ride.
He added, “I'm sure I'll get to the point of those triple-digit gain trades as my confidence grows.”
With practice and experience, those kinds of wins are certainly possible, but Franck has already hit upon one of the fundamentals of long-term success.
“Nobody ever went broke taking profits,” he says, and building an account through regular base hits rather than the occasional home run is something that all consistently successful traders have learned to do.
For as complex as stock trading can sometimes seem, the arithmetic underpinning this approach is both reassuring and straightforward.
All that’s required is to have a minimum risk to reward ratio as part of your trading plan. 2:1 is a popular starting point.
So, for example, if your risk management strategy allows you a maximum loss of, say, $100 on a particular trade you should not enter any trade that does not offer the possibility of at least a $200 profit before the stock price hits the next support or resistance level.
Trade like this, and you can be wrong 2/3rds of the time and still break even. Get your win rate up to 50% or more, and you can quickly make some good money.
"I saw a Daily Profit Machine webinar and signed up for the lifetime membership. I expect it to pay for itself by the end of next week."
Setting Realistic Goals
With this in mind, Franck’s stated goal of making an average profit of $250 a day, which translates to an annual pre-tax income of around $62,500, is beginning to look achievable.
Not wealth beyond dreams, granted. And probably not a sum that would entice many professional Americans to abandon their first choice of career in favor of an uncertain and potentially risky new path.
But the great thing about trading, as Franck and many others like him have discovered, is that it doesn’t have to be a full-time occupation.
With the right training and planning, you can easily combine trading with a regular job.
"The last 2 trades I made just over 20% and could have made quite a bit more if I had let it ride. Nobody ever went broke taking profits. I'm sure I'll get to the point of those triple-digit-gain trades as my confidence grows."
Racking Up a $225 Win During a 10-Minute Work Break
Just a couple of days ago, for example, Franck scored a $225 win during the course of a ten-minute morning work break.
“I had to work a full 10 hours that day to take home a little bit more than that after taxes,” he says, perhaps a little ruefully.
But that’s the financial attraction of day trading summed up right there.
Of course, once you’ve acquired these kinds of skills, they can continue to provide a substantial and welcome additional income throughout your retirement years.
And although he knows it’s still early, it’s not surprising that Franck now speaks enthusiastically about his renewed confidence in his family’s financial future.