How To Compound $1,000 to $1 Million+ Trading Forex

0:00 Hey guys, my name is Nick. I've been trading forex and crypto and stocks for the past decade. I've made millions of dollars in all those markets combined and I've shared basically all my trades and analysis in my free Telegram channel for the past nearly eight years. I'll put the link in the description for that. In this video, what I want to focus on is how if I were in your shoes right now, how I would compound my trading capital. Now, I'm somebody who has been there before. I started with nothing. I saved up some money to trade with and I've grown a small amount of money, which was around $8,000, into multi-millions of dollars over the course of the past decade. So, in this video, we're going to talk about where you're at in your trading journey. We're going to talk about how to go from about $1,000 to your first 10,000 in trading. Then, we're going to talk about how to go from 10,000 to a h 100,000. And then,

0:45 we're going to talk about how to go from a h 100,000 all the way past a million. This video is something that I think is really going to be useful for you in helping you learn how to compound your trading capital. So, let's go ahead and get into it. Now, for your first $1,000 to $10,000, the honest truth about what you're going to have to do is you're going to have to risk a high dollar amount per trade. And then what you have to do is you're going to have to compound that risk up until you get to $10,000. And the idea will be that as you get to each level of trading success and every single level of different capital, the idea is going to be that you actually have to lower your risk. So that way when you're trading higher amounts of capital with lower risk, it'll preserve your capital. But whenever you're trading a small amount of capital and you want to make a lot of money with that, you just have to risk a lot of it. Needless to say, trading is really risky and most people lose money. So you have to remember that whenever you're doing this because something like

1:31 trading forex or crypto or stocks is something that is very difficult to do. Again, this is how I would do it going back. And I'm uniquely qualified to teach you this because this is exactly what I did whenever we go back into 2016 and 2017 when I only had a little bit of money to trade with. Now, to give you an example of how I do this, I've gone back here to a random time period on this pair, GBPUSD. So, we are in where is this? June of 2017, and I've had the daily chart here, and I've got the 1 hour chart here. Now, the idea is going to be that you take your $1,000 and then you try to aggressively grow it to $10,000. So, that way you can get your first 10,000. Then, you can have a withdrawal and then you can put a little bit more money into your trading account that's on the side from the profits and you can continue growing it with lower risk past that. This preserves capital once you start making money, but it also

2:18 allows you to actually accelerate your growth from the very beginning. So, what I do is I use daily charts. I use daily charts and then I go to the 1 hour to just kind of look at price action when price gets there. But one of the things that I do is I only trade daily zones. And the reason I do that is because price just seems to bounce at daily zones a little bit easier than zones like on the five minute chart. So, if you have $1,000 to trade with, what I would personally do, if I could go back, is I would use about a 25% risk per trade. Now, I get it. That's a lot. That's $250 risk per trade. If you lose three trades in a row, the account is basically finished because on that last trade, you probably won't have the margin to risk the last $250 in the account. That's okay. If you want to make a lot of money with a small amount of money, the only way you're going to be able to do that is because you have

3:03 to risk a lot. So, we're going to be doing 25% risk per trade. That's just a flat $250 risk per trade. So, let's try to see if we can get a winner here. How is the trade going to be structured? Well, it's going to be very simple. What's going to happen is if price gets here into this resistance zone, which it has, we're going to enter a sell. We're going to put a stop loss above the zone and we're going to risk $250 on it. And then we're going to put a profit target down here. I usually go profit targets of just 1:1 risk ratio. In this case, we're going to do a one to one to two, but we're going to watch it whenever it gets to a one one to see if we can close it maybe early if it looks like it's not going to go all the way. So, as you saw, price had already come up into that zone there in the daily. So, we entered. Now, we're going to watch it here on the 1 hour chart. And the idea is going to be

3:49 is if it starts going into profit, we hold it. But if it starts going sideways or not going towards the profit target easily, we're going to close it. This is built upon the age-old advice that Warren Buffett has given, which is cut your losses quickly and hold your winners. And it's not just Warren Buffett, but there are a lot of other very big investors that have said that exact same thing, more or less. And that is great advice. I've been using that for the past half a decade that I've been trading. And honestly, I can't think of any better trading advice. Aside from keeping things really simple, that is better than just saying hold your winning trades a little longer than your losing trades. This guarantees that even if you have a 50% win rate, if your average winner is bigger than your average loss, you're just going to make money. Making money is just a symptom and a byproduct of being able to follow this same thing of making more than you

4:35 lose. So, we enter here. Now, we're going to watch on the 1 hour chart and see what happens. Um, price goes up a little bit against us. I'm going to click through a little bit slower here. It goes up against us again. It's going sideways. So, it hasn't really gone into a lot of loss. It's gone halfway to the profit target to a one one. So, we're going to be keeping an eye on it here. And this comes down. I think it might go to the Let's see if it goes to the profit target if it comes back up. So, it looks like it's trying to go back up. So, this might turn into a loss or a break even or partial loss. Okay. Clicking. Okay. Where's it going? So, we're going to keep going. So in this case it ends up actually going all the way down to the 1:2 risk-to-reward ratio. Now if this had started going

5:22 sideways at 1 one and then not going down easily towards the profit target I probably would have closed it at just a 1 to1 risk reward ratio. And then of course if it would have gone sideways and against us then um I just would have closed it like as either at the stop loss or halfway to the stop or maybe even at break even. Um I teach all this in my free Telegram channel and I just share all my trades and analysis there live. So if you just want to see me do this live, hit the link in the description. and it'll take you straight to my Telegram channel. You can check it out. So, what this means is that on our $1,000 account, we've risked $250 and then we've made $500 on this first trade. So, we've grown the account 50% already, which is really, really good. Now, the next trade could be a win or it could be a loss. But what we're going to be doing for the next trade is we're going to be risking $250 again, um, trying to make $500 or at least $250 on

6:09 it. And then if we can do that, then we can get this account from 1,500 to 2,000, which will be doubling the account. So, let's go ahead and head back here to the daily chart and let's just wait for price get to get to a major zone where price has bounced a couple times in the past. The next major clear zone that I see is right here. I see this pretty clear support level. So, basically what we'll be doing is if price gets down here into the support level, we'll just be buying and then we'll go to the 1 hour chart to watch it. So, that didn't happen. Price did not go down here all the way to the support level. Instead, it's broken above this resistance zone and then it's come back to retest it. So, what we can do is this is basically a break and retest trade. Sometimes what price will do is it'll break above a zone like this and then it will come back and then it will just bounce for a second and then fall back below and it ends up being a

6:54 fake out. If that happens, you know, it's cool. It's no big deal. But in other cases, price will just have a bounce pretty quickly and then just go straight up. So, this presents a really good risk structure for us if we buy right there at that support resistance zone. So, we're let's kind of fine-tune it just a little bit here. So it looks like so when price got there into the zone. So maybe about like right here. So when price gets here into the zone and it gets deep enough into the zone, we can basically enter immediately. So what we'll do is we will buy right there. We'll put our stop loss below the zone that looks let's put it like right here. We'll put a 1:2 risk-to-reward ratio again. So price will have to make a new high for us to have that hit. And then price is either going to go up or down. So we will see what happens. I'm going to adjust the zone just a little bit to encapsulate that previous low right there. and then we're going to see if

7:41 this goes. Um, we're going to watch it candle by candle here on the 1 hour and try to get out a little bit early if it looks like it's not going to play out. So, I'm going to click forward reverse $250 on this one. So, it's either going to be a $250 loss max or it might be a $500 profit. So, it's going sideways right here at the zone. If it starts breaking below these recent lows, I'm probably going to close this trade. So, in that case, it does. I broke there below the zone and so I would have closed that trade early just like I said um I clicked forward too fast in the candles here but about halfway to the $250 stop this would have been about a $125 loss. So what we can do here is we can say that the account started at $1,000. We made $500 in the

8:27 last trade and now we've lost $125 on this trade. And we'll use this to keep track of this as we keep going through. Now, one thing I see off the bat here is now that price has got below this zone, this ended up turning out to be a fake out, which is okay. Well, now we can just wait for price to come back up into the zone and test it. And then once it tests it, we can just get back in for a sell. So, let's see if it actually goes up there all the way into the zone. It needs to come all the way kind of around where these recent highs were for us to be able to find the trade. So, it didn't. So, it went all the way up into there. Let's just make sure that that was pretty close to those highs. Yeah, not quite to the tips of the highs, but it came in to where the bulks of those highs were. So, let's say we did not get a perfect entry. Let's just say, you know, it went up in there, then it started rejecting, and we just entered down here. The stop goes just above the

9:12 zone, and the profit target goes at a 1:2 down here, and we might close it at 1:1, obviously, based on what the context is. So, this is the trade. Now, let's keep an eye on it. Let's play it forward candle by candle. Again, remember, we're still using the daily zone. We're not using any zones here that we draw on the 1 hour. We're drawing the higher time frame zones and then we're just using the 1 hour to monitor the trade. So, this looks like it's not going to work out. This looks like it's going towards the stop loss. Let's just take a look. So, it looks like it just tested these highs right here. I'm going to go ahead and just hold this trade for now. And then if we go sideways for much longer, I'll get out. So, it doesn't work. It goes to the stop loss. This is a $250 loss. So, so far we've won one trade and we we've lost two. So, we've lost so $250. Now, let's go ahead and

9:58 take like, you know, maybe two or three more trades. So, price breaks above this zone, hits that stop loss. Now, it goes and it's trying to find support here. Let's go back out to the daily to get a picture of what this is doing. So, price, you can already see what happened here. The candle's already going up, but basically price broke above this zone on the daily, came back to retest it as support. And so, the idea would be that we buy whenever price gets there into a support zone. So, honestly, a buy right here would have been perfectly fine. I'm not going to enter that just because we've already seen what happens. It's not really fair if we're going here and back testing and being like hindsight is 2020. Um, we need to be able to do it nice and clearly before seeing what happens. That way, we're back testing in a very, let's just say, intellectually honest way. So, price goes up and price starts rejecting the previous high.

10:44 Let's see if it can get back here into this support zone. So, it does not. Instead, it breaks these recent highs right here. So, price has broken those highs. Now, we're going to wait and see if it comes back. So, it looks like as it came back through this zone, let's see what happened whenever it got deep into that zone. So, when it got deep into this zone, it was just one straight bare candle falling through. It didn't really stop at all. But now, we're back here into this next zone. Let's see if it can go a little bit deeper into that zone. Yep. So, it goes a little bit deeper. So, let's go ahead and do this. Let's go ahead and take another long right here at this zone. So, we're going to do the same thing. We're going to risk $250. We're going to enter right here. We're going to put our stop just below this zone and then a target of a 1:22 risk-to-reward ratio risking $250.

11:29 So, let's play it out. Starts to bounce. We need to get past that recent high and then it doesn't ends up falling. So, that's another $250 loss. Now, I want I want you to break down what's happened here for a second. So, currently the account will start at a,000. We grew at 500, but now we've lost $625. So, the account is now currently at $875. So, we're going to have to have to have like a nice little winning trade to be able to take this account a little bit further. And you'll notice we've only taken four trades. There's only been four trades in here. One win, three losses. And the account basically sits at where it was started. So, let's go ahead and uh play this out. Let's see if it can come back up here into the zone. I'm going to go to the daily chart. That way, we can get like a clear visualization of what's going on.

12:14 So price comes Oh, there. Yes. Let's see. Let's go back here. So, it comes back up here into the daily zone. So, what I'm going to do is I'm going to go ahead and enter a sell right here because price is in fact at this daily zone. Going to put our stop loss just above it. We're going to put our target down here one to two, but you know, maybe we might close it a little bit early. We'll see. Risk $250 on this one. And then we'll let it play out. So, it starts to fall away, but we have to take out those lows for it to be able to hit the target. So, in this case, it does. as it hits the target. So, this one is a plus $500 winner. So, we're back into profit on the account. The account went from $875 to, you know, $500 more. So, let's try to take another trade so we can get this account around $2,000 and then I'll show you how you would continue to compound this. We're going

13:01 to wait for price to get into another clear daily zone. Maybe it might be able to get all the way down in here to this zone. So, let's see an area where those recent lows were here in the daily. So, let's see if it can get all the way down there. So it does in fact get down there. So the idea would be that we just enter right whenever it gets down there into the zone. Let's just take the average of where all these lows formed out and say we entered like right here after it started going up. So it comes down to the zone starts to bounce a little bit. Say we entered there. So the stop loss needs to go below the zone. Um the target needs to go uh you know some somewhere higher. I think this would be a safe stop loss here. And then we'll put the target. We'll just set it at one to two for now and see if it can get there really quickly. And if not, then we'll just uh

13:46 manage it by closing early. So, does this make sense? Yeah, the stop loss is below the zone and all the recent lows there at the zone. And the profit target is not that crazy. The profit target will be perfectly fine being right there because if we get a nice little jump, then price will move up. So, let's see if price goes. It goes, it needs to break the high. It does in fact break the high. And this one was another $500 winner. And so what you can see is I want you to take away from here is the basic strategy behind this. Right? The strategy here is risk a lot of money. Try to keep the losses small and keep the profits bigger. So in this case, if we just do the math here, this is basically what we were at $875 plus a,000 on these last two trades. So the account is at $1,875. So in this case, we've grown the account

14:32 from basically a,000 to 2,000. Now, what you'll do that the account once it does get to 2,000, you do the same thing, but you'll risk 25% of 2,000. And what is that? That's $500. Then you're going to grow the account from 2,000 to 4,000, from 4,000 to 8,000. Then you take a couple more trades after that to get it to 10K. After you get it to $10,000, we're going to talk about exactly how to do that now. Okay. So, I've removed all the chart drawings here from GBPUSD. And whenever you get to $10,000 in your trading account and $10,000 of trading capital that you're going to be used to be trading to get it to 100K is a little bit different of a story. And the reason it's a little bit different of a story is be because you start running into position sizing limits. You start running into higher fees and commissions, notably swap fees, especially if you hold them over

15:17 Wednesday. And what it can do is it can really eat into a lot of the profits if you're not managing it in a way that is, let's just say, optimal. So what I personally do is anytime you know the account balance is past 10,000 to especially 50,000 I recommend people just use one to one riskreward ratios and then you manage things still the same way right you manage things in such a way where if you win you hold the trade to the profit target but the profit target's a lot easier to be hit and then if you lose then what you do is you try to get out of the trade a little bit earlier and instead of risking 25% per trade I recommend coming down to about 10% risk per trade. See, so what we've done is as you're growing your trading capital in the beginning, the worst case imaginable is that you lose your $1,000 that you're trading with. Okay, that sucks. But if you grow the

16:04 account and you're able to get it to 10,000, you've just got a 10x on your money. Then what you want to do past that is you want to start lowering the risk incrementally and transitionally. That way you can continue compounding the capital in such a way that allows you to make a lot more money when you're right versus what you lose when you're wrong while protecting your downside and not giving back all the profits that you've made. So let's go ahead and get into it here. So now we're going to be using the same basic strategy. We're going to be buying at support and selling at resistance on the daily chart, but the only different thing we're going to be doing is we're going to be structuring it with a 1:1 riskreward ratio and risking only 10% per trade. So we're going to take a couple trades here and I'll show you how to start growing the capital. And remember, you're not just going to be trading one pair on one time frame, right? You have 24 to 26 FX majors and minors depending on what you trade. And

16:49 you can also do this in crypto and stocks. But for the sake of this video, we're just going to talk about doing it here in Forex because that's my bread and butter. I've been doing Forex for about a decade now. So, what we're going to be doing is we're going to be waiting for price to get to a clear support or resistance zone, and then we're going to enter the trades, and then we're going to risk 10% of $10,000, which is how much money per trade? It is $1,000 per trade. So price gets up here and what we're going to be doing is whenever price gets up here into this resistance zone, we're going to sell. So price got up there into the resistance zone. So we are in fact going to sell. There was a really big candle right here. So I probably wouldn't have sold if we were going there like in real life. But let's go ahead just for the sake of the example. We'll enter a sell there. Now here's how you do the stop

17:36 loss. The stop loss needs to go very clear past the zone and the profit target only a 1 to1 riskreward ratio. So when you are right it generally hits the profit target pretty quickly and when you're wrong it generally starts going into loss. So what we're going to be doing is let's go ahead and get our little uh visualization thing here with the little text tool. We're going to go here and we're going to go the account starts at $10,000 and then this first trade I'm just going to say we're going to close it here about halfway to the stop just so we can get the first one under our belt here. So, we're going to close it here. And this one was 500. And this is five, $10,000, pounds, AUD, euros, whatever currency you're in. So, 10,000. We risked a,000 on this. Closed it halfway to the stop loss. That resulted in a $500 or euro or 500 pound

18:22 loss. And then we'll just keep it like that. So, we'll go into the next trade and we'll see what would have happened for this one. What would have happened? That would have gone up and then come back down. And let's let's see which way it would have gone. Yep. then it would have spiked back up and hit the stop loss. That's why it's a great idea to always be getting out of losing trades earlier because sometimes, sure, you'll be right. It would have come back to break even or maybe even to the profit target. But a lot of times when a trade starts going into loss, it's generally going to keep going towards the stop-loss, which is why it's better to close. One to one just gives you a nice, clean, simple way to structure it and then you manage it dynamically based on what price action does. The only edge you're going to get in trading comes from your discretion and your experience. That's why it it's really really difficult to make a system work where you just like like set up the trade and then you leave it alone and don't do anything. It's better and more

19:09 optimal to use context, experience, discretion, price action, discernment, a little bit of your intuition to be able to make those decisions as to whether or not something looks like it's going to easily go to the profit target or stop loss. The same thing works vice versa. When a trade is going to the stop-loss, right, it's more likely to probably get and hit the stop loss if it's going that direction. When a trade's going into profit, generally speaking, it's more likely to continue all the way to the profit target. It's a matter of holding winners longer and cutting losses shorter. So, this one goes up here. Let's go ahead and let's go find the next daily zone here on GBPSD. And it looks like we're in for quite the treat because price has in fact got to what I believe to be another daily zone. Let's wait and see if price can go a little bit further up into this zone because it looks like it's only in the bottom of it. Price needs to come up here to somewhere where these highs are

19:55 first. So price did in fact come up to where those highs are and it actually broke past it. Let's go there to the 1 hour to see what would have happened. Yeah. So honestly something like this. This is kind of the same situation as this first one. Like I told you guys, I probably wouldn't have entered that. When price gets into a zone and there's no like pause or there's no little bit of a like wick rejections and candlesticks turning around, that is why I use the 1 hour. I cannot say realistically I would have taken this. And honestly, realistically, I would not have even taken that trade, but I did it just for the sake of the example. Of course, this one, it's hard for me to say I would have taken that under any circumstance when there's a big bullish candle there on the 1 hour just slamming directly into the zone. I would have waited for a couple candles to start rejecting. So, I'm going to stick to that to make this a little bit more realistic because that is in fact a

20:40 better way to trade instead of just mindlessly buying and selling blindfolded at support resistance zones. Watching what price does whenever it gets there is a little bit better of an idea. So, the cool part now is that we can wait for price to get deeper into this zone and then we might be able to take a buy for price to end up going back to the upside. So, let's see if it's going to bounce. I think it'll try to go a bit lower. There we go. So, price has gone down into here. So, let's see if uh let's see if price can bottom out here as support. And if it looks like we can create support here, then we can buy and then we can potentially profit if price goes back up. So, let's see what it's going to do. So, yeah, looks like it's going to try to go up. Let's see what this next little movement is. Comes back down. Okay, cool. Let's go

21:26 ahead and get long right here. And we're going to put our stop loss just below this zone. Not too close, not too far. Honestly, like this can go a lot further. Let's put it like right here because the target of a one will go right there. So, this is like a perfectly fine way to structure this trade. So, we're going to let price start going and we're going to close it basically early if it starts going against us. So, just like that. So, we'll close halfway to the stop loss. And if it would have gone into profit, we would have just held it. So, in this case, it we lose another trade, right? So, the first two trades were losses. No big deal. It's why we're risking a smaller amount and we've lost $1,000. So, you know, or 10%. Now, imagine if we were risking 25% still at a 10K balance. If you keep the same risk as you grow your trading

22:13 capital, it becomes far more risky that you're going to lose all your trading capital in terms of dollar amount. If we had risked 25% per trade, we would have lost two trades at partial losses. So 12.5% loss each and net it would have come out to about 25% on both of these trades we just lost. You would have lost 25% of 10K, which is $2,500. instead because we lowered the risk to 10%. We're only down a,000 bucks because we lost 500 in the first one and now we've lost $500 in the second one. So that is amazing. It means we're preserving our capital and it means that we're not giving back everything that we made up here to get to this point in the first place. This is why I continue to make hundreds of thousands of dollars per year just trading. And sometimes like last year in crypto I made like $2 million. It just all depends on what

22:58 kind of year it is and what kind of market environment is. This is why I continue to make millions of dollars trading even though I had to start really small and now I'm risking smaller percentages per trade. Even though I had to risk like I had to start with small amount of capital and big risk, now I have a large amount of capital and small risk. Let's just put it that way. So, we closed this trade early here. We're going to go back to the daily and we're going to wait for another setup. Now, could price get here? Maybe. Let's see. We're going to have to see what happens. Price looks like it's going to get to that zone. It looks like it's starting to bounce right there. So, I think this is perfectly fine to take a trade. Something tells me this isn't going to work out, but you never really know. So, you just have to keep taking the trades and let the stats play out. So, I'm going to put a stop under the zone. I'm

23:44 going to put a 1:1 rule ratio right here. I'm going to watch price action to see what happens. So, it does break below that zone. I'm going to close it here. Let's just say it closes about halfway to the profit target. So, three losing streak trades, right? three in a row. So, it's another 500 bucks. So, now our 10K is down to 8,500. So, we're still in a net profit um from starting the the balance at 1,000. Doing this over and over. And, you know, we've just given back a little bit on these three trades. So, let's see if price can either get to this next zone down here or if it can pop back up and hit that resistance zone. So, it does pop up. It hits the resistance zone. So, we can go ahead and get short there. It actually looks like it already would have played out. Let's see.

24:32 So, it would have been basically the same thing as this one. So, yeah, I mean that looks like it would have played out. So, where would the actual entry have been? The actual entry would have been as soon as price got into the zone, it started to reject. So, basically right there on that candle as that wick started to reject. So, it looks like it would have gone into a little bit of draw down then went sideways. If it would have broken the zone, it would have closed it early. It looks like this just hit a 1:1 risk-reward ratio and the stop might have been for me a little bit closer anyway. So, it looks like that trade would have been a little bit quicker, but basically this was still a winning trade. It still bounced away from the zone. 1:1 riskreward ratio means that you're just going to have a lot more trades hit take profit because it doesn't have to go as far. So, we make back a thousand. So, we're only down $500 on this so far. Let's go ahead and keep taking the next few trades.

25:19 We'll do two or three more and then we'll continue to scale it up. So price here on the daily continues to kind of play around here at this zone. I'm going to go ahead and skip a lot of these because it's just kind of going sideways now and it gets a lot more hairy when price starts doing stuff like that. I'm going to clear everything off. Well, I can't because I have this stuff here. Um, but what I'm going to do is I'm just going to restructure these zones to make sure that they're nice and clear. All right, let's see if price can get up there. I don't see anything clear yet. What I'm going to do is I'm just going to use this previous high up here for the resistance zone because at that point it'll be a lot nicer. So, we're going to use this high right here at the zone. It's either going to

26:05 go up or it's going to go down. So, in this case, it does in fact go up here. So I I wonder if that would have been far enough to actually enter because this doesn't look like it went far enough into the zone and then this one had that huge spike through it which is just yeah just like a bunch of like bull candles going up. It's hard to say I would have taken a trade there. Let's let it come back and see if it'll actually bounce there at that zone because if it could actually get there and then bounce that would be great. When was this? January of 2018. Market was going crazy at this time. So, we're going to see if it can go back. Is there any more structure getting created a little bit? Let's see. I don't really see anything so far. It's

26:50 just kind of chopping back and forth. Okay. So, now we get here into a resistance zone. Let's see if this next daily candle starts to bounce away. Yeah. Okay, fair enough. So, it does start to bounce away. So, where would the actual entry have been here at this resistance zone? It did go a little bit further past it, but when price actually got here to the highs, let's see when it would have started falling back. So, it got here to the highs, kept kind of going up, and then came back below back into the zone. So, probably like somewhere in here as these candles were going down. So, it basically be something like this, right? A sell right here, a stop above the zone, a target at a 1 to1 reward ratio. So, even if the stop was a little bit further, this one probably still would have hit 1:1 reward ratio. really quick off that candle. I

27:37 wonder if it would have kept going. Would it have kept going or would it have gone back up? So, yeah, one way or the other, regardless of where you entered, as long as the stop wasn't smothered very close, which is another reason it's good to use one to ones, um, this one ends up turning around going into profit. So, good. And this was a nice clean resistance zone because price bounced there on the daily. So, let's go ahead and grab our little numerical thing down here. So, now, you know, we lost the first three trades, but now we've just won two trades. The first the first one we lost 500 then 500500. So we lost 1,500 and now just in two trades we made back $2,000. So the account is now $10,500. The interesting thing about this is that it protects your capital during losing streaks. As you make more money and have more capital, you have a little bit

28:22 lower risk. So it protects your capital on losing streaks. And if you keep doing it like this after every few trades, you're going to have about one unit of profit that comes out, right? So, say like every five to 10 trades, if you can get one unit of profit total by entering one to one risk reward ratios just off of basic daily support resistance zones um and then closing the losing trades early and holding the winners longer. That works amazingly. This is literally what I do every single day in my Telegram channel. So, again, click the link in the description if you want to hop on that channel and see me do this live. Now, what we're going to do is we're going to talk about growing money past $100,000 because it's a lot different of a game. All right, growing your money from $100,000 all the way up to a million or more. This is where it starts to get kind of weird. You start having issues like brokers banning you from trading with

29:08 them. It becomes a little bit more difficult because you also have maximum lot sizes. If you're trading with a broker, assuming you're trading on a live account, you do have a max position size you can use. Some brokers it's 50 lots. Most the case it's not. A lot of brokers use 75 to 100 lots and some brokers it'll be as high as like 200 lots or higher. What I see mostly is it's around the 100 lot mark. Like 75 to 150 lots is the max position size you can use per entry. So you start to have to like layer your positions. And also the fees, commissions, and swaps go up pretty high. It's a completely different ballgame whenever you're trading at this level. I have learned all this from doing this the past few years. So I'm going to show you exactly what I do here in this video or I guess what I'm going to do here in the rest of the video that we're already watching. Okay, so let's go ahead and get into it. So you'll see here I'm still on GPUSD. I'm going to go

29:54 ahead and exit this chart now. Now, I'm going to keep this chart very clean because one of the main core things you're doing when you're trading higher amounts of capital is it only works really well to scale on the higher time frames. I'll give you an example. If you're trying to enter 100 standard lots and get perfect fills on a live account with low enough commissions and risking a sizable chunk of your account, let's say even like 5% of 100K, that's 5K. Um, risking on the lower time frames like you might have like a 10 pip stop in some cases. So your lot size will have to be like some some cases over a 100 lots maybe 100 150 200 lots just to be able to enter a trade with the stop loss that you have and be able to still try to make a reasonable amount of profit. The spreads the slippage low leverage if you are using lowle leverage brokers and also um just the fact that the

30:41 commissions are just going to like absolutely ruin like your your fee structure. It just makes it really difficult. So, if you're trading higher amounts of capital, 100K plus, my opinion, it's best to use higher time frames and be very selective as to which trades you take. Growing your account from 1,000 to about $10,000, that balance, you know, that could take you a couple months. If you're doing really high risk, again, I can't guarantee you anything because trading is risky and most people lose money. But if you're doing really, really high risk, then yes, that is that that that's what you do. You do it with a lower amount of capital. You do high risk. When you get to 10K, to grow it from 10K to 100K, you do the same thing, but you're just going to size down the risk. So, a after you grow the account from 10K to 20K, risking 10% per trade. You're going to now be risking 10% of 20K, right? So, instead of $1,000, you're now risking

31:26 2,000. This is how you compound the balance. Then, you grow the account from 20K to 40K. Now, you're risking 10% of 40K, which is 4,000. So, some of your losses that are partial might be 2,000, but the wins on 4K risk is going to be like 4,000. in some cases even more if you hold it. And then what that'll do is that will start it'll be like a hockey stick growth where it starts kind of slow and then it starts spiking up in terms of equity watermark from your original starting balance. Again, this is why as you get more capital, you have to lower the risk per trade as you're going up. Um, and that risk per trade remains the same percentage, right? If you start 25% and then above 10K, you could do like 10% and then above 100K, you could do 5% or less. me, I do two and a half to 5% of the account risk per trade. Um, depending on exactly what the

32:12 specifics are in my trading account. So, what we're going to do right here is we're going to actually jump in and I'm going to show you exactly how to do this and how to be a little bit more selective with these trades. Since you're using such a high position size and in some cases, I'm risking $50,000 to $75,000 or more per trade. They have to be high quality setups. We're going to look at that here. So, in addition to the hourly and daily, we're also going to go to the weekly just to be able to get levels that have bounced at very clearly in the past. So, we're going to be real patient here on GBPUSD. We're going to wait for price to get to levels that we can see really clearly here on the weekly. You don't have to zoom way out like this. You can still zoom in. So, it's basically like looking at a daily chart that zoomed out, but we're just getting the most clear areas where price has bounced in the past. So,

32:58 what happened is price has bounced here at this zone. So, it looks like from that low back there, that one doesn't even seem to count. But we do have a set of these lows right here where prices bounced before. Now, we just want to capitalize on a little move away from the zone. A little bit of move away from the zone with a high amount of capital behind that trading decision will work very well to grow our account. So, we're going to take from this 100K account that we have, we're going to go ahead and set that up right here. We have 100,000. And what we're going to be doing is we're going to be risking 5% on this right here. Okay, so that's 5K for this trade. It's the cool part is you started off risking, you know, like $500, sorry, $250 per trade on a $1,000 account. And now as you grow the account in trading capital, which let's say this takes you six to 12 months to do because you're

33:44 being very aggressive with it and risking high amounts, now you've gone up from a $250 risk to a $5,000 risk. So, or like 40 times more or something like that is somebody do the math. So, what we're going to do is we're going to do the same thing we're doing, but we're going to be using a long position and we're going to be using the stop loss of 1 one, but we're going to keep it kind of far. And then we're going to use a 1:1 or reward ratio. Now, what I'm going to do is I'm going to go to the daily and I'm going to restructure this and make sure that it makes sense to me. I probably tighten the stop loss up just a bit, but I still want it to be relatively wide. And then what we'll do here is uh we'll let this play out. So now the idea is going to be that if it starts going into profit, we hold it,

34:30 but the moment it starts going into loss, we close it. Okay, so let's see exactly what happens here. We've got ourselves plenty of room to manage this. It goes down to the recent low there at that zone. Then it pops back up. Let's see if this breaks or bounces here at the zone. If it starts breaking past this zone, it's probably going to be better to close it. In this case, probably better to close it because it was going. So, let's close it. Let's say it ended up about halfway to the stop loss. So, instead of losing $5,000, we have lost 2500. So, we lost $2,500. And then we will be on to the next trade. Now, here on the weekly chart, we're going to go back to the weekly. We can see that it did in fact fall all the way from that zone, and it looks like it fell all the way here to maybe this next weekly zone. Let's go ahead and just draw a little

35:15 bit closer of a look here. So, in in my case, I don't know if this is clear enough for me. So, I'm just going to maybe skip it. If price gets there into that lower zone, um if price does pop up back to the previously recently broken zone, I'm going to look to see if price starts rejecting there, then maybe get in. Okay. So, since price has gotten deep down into this support zone and not just midway through, I'm going to go ahead and take a trade here. And the reason I'm going to do that is because of this right here. Those highs rejected there. These highs rejected here. that bounced as support and now price was back there. So the moment price gets into that zone and starts bouncing is where it would enter. So let's say it goes here starts to bounce up. So let's say we just we get filled somewhere up here. We enter like higher as it's going up. The entries there stop losses below

36:01 the zone and the target is at one. I think I'd put the stop just a bit further here. So the trade would look something like this. Now let's let it play out. It's already started to play out as we can see. So, if it starts going against us, we're just going to have to manage this trade pretty quickly um to have it to prevent it from being as big a loss. So, it comes down here to the previous recent low. This is going to be the moment of truth. Is it going to break or is it going to go up? Go sideways. It's coming back. This one looks like it's probably going to fail here at the support zone, but we won't know unless we get a little break below. There we go. So, it does get a break below. So, right below those recent lows as price broke the zone, I would have shut this trade down. Let's say that

36:46 somewhere about halfway to the stop. Sometimes it'll be a little less and sometimes it'll be a little bit more. But the moment price started breaking past those lows would have been an area. So, somewhere around here, again, we'll just round it up a little bit and say that it was like halfway to the stop. So, in this case, we've lost two trades in a row. We've lost $2,500 here. So now our $100,000 balance is now sitting at 95,000. So lost the first two trades and they're both partial losses that would have not worked out. So they would have been full losses. So now what we'll do is we'll wait for price to get into the next zone that we think price could bounce at. In my case, I'm looking at this area right here. That's a really clear set of lows. I'm going to wait for price to get there. Price pops back up into this region. I'm going to go ahead and just not use an

37:32 area in here. This looks way too sloppy. way too hairy of a zone. I don't see anything clear. So, I'm going to wait. So, okay, I clicked way too fast, but we had price go here into this support zone and then it bounced. So, just like I said, as soon as price gets into this zone, I would be taking a long provided that it started to bounce a little bit. Let's actually go and look and see where it started to bounce here. So, it came into this zone and then started to bounce right there. So, let's say we entered after it came into the zone, started to bounce. So, probably somewhere up in there. The stop loss would go below the zone. the target would go at a one to one riskreward ratio. So it would basically just be something like this, right? Basic. So maybe the stop wouldn't be that far. Maybe it would be a little bit closer. Um but this trade basically would have been one that works out. So this is one here.

38:20 Let's see. Because I think this should go a lot further. Yeah. I mean, so depending on exactly where your stop loss was, right? In this case, like that would have hit the one to one there. But if your stop loss was a little bit closer, which perhaps maybe just below the zone right there, maybe it would have hit it a little bit sooner. But in any case, this one ended up going further past the zone. So fair enough. So in this trade, we basically just won back everything we just lost. So we're going to do plus 5,000 and then we'll take another one or two trades and then we'll let it play out. It's very important to use clear zones when you're doing this. So let's uh let price go up. This is the weekly. I understand it's going to take time for things to play out. Um, price has got back here into the support zone. Let's go ahead and head here to the lower time

39:06 frames and see if this could be something we could take. So, let's see. So, we have this big scary bare candle into the zone. We would need price to start looking like it's going to bounce before entering. So, probably after this little bull candle here starts to bounce. Otherwise, this looks like it could have just fallen straight through. So, let's say we enter right here after this little bounce. We'll put a stop below. It's pretty close here because he just has to go below the zone and the the takeprofit at a one to one. So, let's keep an eye on this. We're going to risk $5,000 on it. In this case, it starts going against us. I would have probably closed that halfway to the stop. So, somewhere in this region where price is right now, this would have resulted in a $2,500 loss. So, we're going to go ahead and add that in here. So, now we're back to like we were back

39:51 to break even. Now, we're back down, you know, like half of a unit of risk. So minus 2,500. But we're preserving our capital because keep in mind if all this was started at a,000, you're still in a ton of profit. You're just now risking lower amounts. So let's see what would happen. This looks like it's going to reject and oh, it breaks back above. So what I like to do whenever there's things like this, like a fake out, I like to wait for it to come back into the zone and then I buy when it gets back in there. So let's see if it comes. It has it needs to go a little bit lower into the zone for that. This wasn't deep enough of a retest. So, a little bit deeper. Needs to go like to where this recent low was back here. Don't know if it's going to happen. We're going to have to keep an eye on it. Let's go back out here to the daily. See if we can get price to go back in

40:37 here. Oh, so price got there, but that's a pretty big bare candle. So, I can't say I would have taken that. No, it's a pretty big bare candle. All right. Well, now let's wait for the next zone. So, the next zone I see is down here around these lows, this previous little support resistance zone. So, let's see if price can get there. Then we can look to take a long. So, price gets into the zone. Let's watch what price action would have done. So, price gets there. Let's see if we can structure this to make it look a little bit more clean because it looks like price is going past it a little bit. So, there's a previous high there and there's some lows here. So, honestly, price shouldn't really be breaking past if it's going to work out, but looks like that's what happened here. So, let's see. Price needs to

41:22 honestly be breaking past these little recent highs for us to go. The support zone is not that right there. It's this right here. So, we need to see a little bit of sign of strength to the upside before we can get in. And then we'll enter with the one to one. Is it going to go or what? Let's see. Okay, so finally, so it goes up. Okay, breaks the high. Let's enter right there on that little bull candle. Stop loss just below these lows in the zone and a takerit up here at a 1:1 risk ratio. So, let's play it out and if it starts going against us, we'll go ahead and get out. In this case, yeah, it does go against us. So, let's say we closed it as it was going against us, past all the lows, about halfway to the stop. This would be another trade where we um yeah, it's another loss. So, we've only won one

42:08 trade out of the last five trades. That's the reason why risk needs to be controlled very well. If risk is not controlled really well, then what you find yourself getting into is a losing streak like this, but you didn't lower your risk as the account grew, and now you've lost all the profits that you've made all the way up here. It's a stupid dumbass thing to do. So, don't do that. Do it like this because now the risk is set nice and even. Even with these with these four losses and only one winner, we're only down one unit of risk, right? We're down 5%. Because we're 25,00 twice, so we lost 5K, we made 5K, that was break even. Now we've lost 2500 each. So we we're only down 5%. So it's pretty good deal. Now let's go back out here to the weekly. Let's wait for price to get to the next zone. Let's keep going from trade to trade without loss

42:54 of enthusiasm because you know trading is all back and forth. Never going to be able to predict everything. So it looks like price does in fact try to bounce here at this zone. What I'm going to do is I'm going to clean this up. I'm I'm just going to wait for price to get somewhere nice and clear. Um, what I see is I see this region right here looks pretty good. So, I'm going to wait for price to get up into there. So, price does it did it get all the way up into there a little bit. There we go. A little bit more. Okay. So, price gets all the way up into that region right there here in the 1 hour price. This was where it got all the way up. Then it started going down right there. So, that would have been where we could have taken a sell after it started going down. Starts going down right there. put a stop just above the zone and then a

43:40 target here to one to one which would be down there. So pretty reasonable target, pretty reasonable stop and then we'll let this play out and manage it depending on what it does. So is it going to break? Are we going to get yet another loss? So it goes up here. Let's see if this would be a good time to close it because I just want to see where these previous highs were at. Yeah, it doesn't look like we even had any recent highs here at this zone. It's the first time in a while it was testing as resistance. So, what I'm going to go ahead and do, I'm going to play it forward just a few more candles here slowly and see if it starts to come back down. And if it doesn't look like it's going to go, then I'll just cut this one. Yeah, this one is not looking good.

44:25 Which way is I'm trying to see which way it'll break out. So, I'm going real slow here. This is probably Asian session or something. Yeah, probably. Okay, let's just say I'm going to cut this here. So, I'm cutting this here. It's not halfway to the stop. It's a little bit more. It's about twothirds of the way to the stop. Let's go ahead and just say it was like a 3k loss, right? Instead of 2500. So, say it would have been a 3k loss. Still partial, but you know, it is what it is. So, 3k loss. A lot of people will just lose enthusiasm here because look at this. you've lost two, three, four, five trades and like and then you only won one out of those five trades. But the cool part is that as long as we're making more when we're right versus what we lose when we're wrong, it all works out. So in this case, this would have

45:12 almost hit the stop, come back to the entry, and then it would have gone up there and hit the stop. So that would have been in fact a losing trade. That's why it's good to just cut the losses early. GBPUSD not giving us any mercy here. So price has broken above the zone, then it comes back to retest. Let's see where that is. Looks like it was a little bit further. So, yeah. So, it goes above the zone, it comes back to retest the zone. So, when price gets into there, we can take a buy since it's just now on the other side of the zone. So, buy after it hit, starts to reject, stop below, and then a target above the zone. Let's play this forward. See if it bounces here. The stop loss is lower and it breaks below the zone. Honestly, that's uh it's going to have to be yet another loss. Another loss. Yet another one.

45:58 This is what a lot of people just don't have the patience for it. So, this would be, let's say we close it as it started to break. So, about halfway to the stop. Um, this would result in, you know, $2,500 of loss again. This is a pretty big losing streak. Pretty big losing streak. But then again, keep in mind, if you started this capital at $1,000 and then over the course of 6 to 12 months, you're able to grow it to 100,000, the amount of loss you'll be in now pales into comparison to the amount of profit you will be up in as a matter of getting there. This is good because imagine this losing streak, but you're still risking 25% per trade. You would have already been done like a couple trades ago. You would have lost all your money. So, that's why it's important to like lower the risk as you as you uh scale up. So price goes down here. Let's go ahead and

46:44 just play it out. See what would have happened. This one probably would have gone. Yep. Would have gone and hit the stop loss or pretty close to it. Let us go here to the weekly chart again and find another nice clear setup. So price comes back into this zone a couple times. We're back down here at this support. So it looks like price likes to bounce here at this support. So let's go ahead and take a buy when price gets down into there and starts bouncing. Uh, let's let it go a little bit deeper. So, let it go a little bit lower into here. So, it looks like it would have already bounced right there. Um, let's let's let it get all the way to these little recent lows down in here. Might happen, might not. We need to keep

47:31 in mind, okay, let's see. A little bit lower. Has to go right past that low down to the downside. a little bit. It's hanging on for dear life. There we go. So, we finally get down there to that previous low. So, we can buy after it starts bouncing up, which would have been right here. We will put a stop-loss below that zone. So, all the way down there and then a target up here at a 1:1 risk-reward ratio. So, let's play it forward. Let's see what price does. Has a quick run almost to the profit target. Now, it starts coming back. What the hell are we doing? We're going back and forth another like halfway to the profit target. Let's see which way we would have gone. Okay, what do we do in GU? Back and

48:17 forth ranging sideways at the zone. So then we got a big bear candle. This looks like it's not going to work out, but it's technically here still at the lows of the zone. Let's see if it in fact breaks those lows. Yep, it does break those lows. And this one goes and hits the stop loss. So, let's let's have a quick look at everything that we've done here so far. This is only a set of trades, right? We've gotten real lucky in the other ones because they've done really well. But what does this currently come out to? At 2500 each plus 500. So, that was break even. Now, after these two trades, it would have been down 5K and then down 8K and then down 5K. So, it's 13 plus this. So, 15.5K. So, we've taken a $100,000 account down

49:04 to roughly $85,000. This is what I want to talk about. Whenever you're trading here at a higher level, when you're trading at a higher level, your losses are going to be magnified in a way that is not the same dollar amount, obviously, as it is whenever you're trading with a lower amount of capital. Okay? 15% of a $100,000 account is more money than losing 100% of a $1,000 account. If you lose a 1K account, you lost 1K. For a lot of you, I understand that might be a lot of money, but it's nowhere near what it feels like to lose, you know, this much money, right? Like $15,000 on a 100k account. But what I want to point out is that as you keep doing this over and over and you keep scaling it up using the exact same systems in here, what happens longterm, given enough trades, you really need 50 or more trades to be able to get good data on

49:50 this. I would even argue you need a 100 to 200 trading opportunities to be able to get good data on this. We've only got like like 10 trades here, like 10 trades or less right here. So, this is not enough data to statistically do it. But in the interest of time for this video, my the thing I want to get across from here is that as you keep scaling up your capital, you have to use lower risk because of like this. But if you use lower risk with higher capital, you're not going to wipe out all the money you've made. Whenever you're in the very beginning, you don't have a lot of money to trade with. The goal is to make a lot of money with a little bit of money. You can do that. It is very risky. But if you learn how to trade, you take the time to develop the skills, you follow my free trades there in Telegram, over the past like four months, I've made $350,000 in live P&L, having documented every single trade and all the trading history in that Telegram

50:35 channel live. Um, you can do it and it works really, really well. Um, but whenever you're getting into higher capital, you have to lower your risk. Otherwise, you're going to lose everything that you made on the way up. I would not be risking 25% of my trading capital per trade right now because that's so foolish. I've worked so hard this past decade to build up my trading capital to compound everything and then for me to just risk 25% on each trade to lose my entire trading capital and entire net worth in terms of trading in only four trades is a very foolish thing to do and it's because of stuff like this. So I could keep going on this and what would likely happen as you saw in the last examples is everything would come back into profit. We get into a little bit of profit then you'd scale that up long term. you would have to do this for another maybe six to 12 months to be able to get it there. And hell, in the course of over two years, being able

51:21 to take a $1,000 to over $100,000 is incredible. And if you're able to take that $1,000 up into like 150, 200k, 250K, 500K, perhaps even all the way up to to a million. A small percentage of you will do that, right? Most people are going to fail at trading because it's really hard. But a small percentage of you who really apply yourself and have kind of the brain and the mind for it, um, you'll be able to get really nice results trading. Even though I can't guarantee you anything, right? Nobody could guarantee me anything when I was starting. I was more likely to fail than to succeed and yet I still made it work. So, with that being said, I hope this video was useful in helping you learn how to grow your capital at each stage. If you want to actually see this last stage of growing capital, which is anything $100,000 or more, follow my live trades in Telegram. You can go back and look at all the history from October of last year when my account started. I

52:08 started a new account at $350,000. I have grown that account to $350,000 of profit uh before commissions and swap fees over the course of four months. And I actually did that in just under four months. So I basically doubled the trading capital in terms of P&L in just about four months. That's phenomenal. That's crazy. And it was doing this with like over, you know, over $100,000 cuz the account started at 350K. So make sure you check out my Telegram channel. I'm just going to drop a link in the description for uh lower. Hit the like button on this video if you did enjoy it. It really does actually help the video quite a bit. I've never asked for likes usually, but I put a lot of work into this video. Um, so if you like this video, hit the like button and then leave a comment below letting me know how you grow your capital and which state of your trading journey you're in. I will see you guys in the next video. I love you all and have a good rest of the

52:54 day. Happy trading.