How to Trade For Free

I nicknamed this blog Trade4Free so I guess it's about time I explained exactly why or how you can trade for free.
There are 3 ways in which you can trade for free.

The most common way of learning FOREX is by buying books, attending courses, paying for access to trading rooms or seminars whatever.
With this system there really is no need for any of that. If you can read, you can understand, if you can understand, you can ask questions to help further understand, if you can ask questions you can gain essential knowledge about a given strategy.
Then, once armed with this knowledge you can gain access to a free demo account and practise what you have learnt in real time, until you are ready to take the plunge.
None of this is going to cost you money. However, it will cost you time. If you're a "time is money, bitch" type, then maybe you should be working for Goldman Sachs.

The next way that this type of trading is free is when you are ready to take the jump from demo to live account.
Initially your deposit should be small, and armed with the Crocodillion you should have no problem in finding trades which will go at least 8 ticks.
Remember the rules of the Crocodillion.
You start with the stop at -10, the price moves 4, your stop moves 5
Therefore, you are only needing trades that will go just 8 ticks in order to bring your stop to 0 and guess what...... You're trading for free. Zero risk trading.
You might want to tamper with the settings and make the stop closer, but I advise against this. I have tried various combinations and this one does work. Not every time. You will still lose 10 ticks on occassion. that's the nature of the beast. Perfection does not exist in trading, so don't waste time searching.
If you can find enough trades that you are confident will go 8 ticks or more then you will succeed

The final way of how to Trade For Free  is called compound growth.
Compound growth is where you roll over part of your profits for the previous trade into the next trade.
It's not possible to do when starting with futures because 1 contract is $12.50 per tick.
Since you are trading with a 10 tick stop you are risking $125 per trade.
If we want this $125 to represent around 1% of our account total we must have between $10k-$12k in the account.
However, compounding doesn't necessarily take forever in futures, just a little longer.
Let's say you start with $10,000 and for the first 3 months you make 5% per month.
After the 3 month period you have $11,500 and you begin to make 10% per month for 6 months. you're still making $1000 a month because it's not compounded yet, multiplied by 6 months is $6,000, add that to your $11,500 and you've now got $17,500. From now on maybe you can squeeze 15% per month from the system. It can be done!
So for the remainder of the 1st year you make 15% ($1,500) per month, $4,500 to add to the $17,500 is $22,000
You've doubled your account in a year.
Based on bank savings, how many bank accounts do you have that offer those returns?

At this stage you have a choice...
Either you can take your initial $10k back and then Trade for Free or you can do the sensible thing...
Since you now have over $20,000 you will increase you contract size from 1 to 2 (lot size in forex)
Since you are now making 15% permonth, it's not going to take too long to get your $22,900 upto $30,000 is it? Even if you withdraw $2,900 an d take some of your original capital back!
Once at $30,000 (just over 3 months of year 2) you're playing with $40k and 4 contracts and so on.
Eventually you've taken the whole $10,000 back and you'll have $100,000 in your account and you will be compounding month to month. This is when you really start to #TradeforFree