Does More Time Trading Equal More Money Made?

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If you spend more time trading every day, do you make more money or just lose more time? That may be the question many traders ask themselves as they spend hour after hour staring at a computer screen.

At first, you may have thought that you could spend a couple of hours a day and make some extra money. That would be trading your spare time for some spare cash. It sounds like an excellent trade off.

However, as most traders soon realize, it is not that easy. Those couple of hours soon morph into four hours and then eight hours until you may be spending all of your waking hours in front of a screen trying to make a living.

What To Do?

Most traders don’t want to sit in front of their computer all day. If asked, they would probably say they started out trading to make extra money to free up time, not waste time making losing trades.

Apex Investing Institute did some calculations based on a hypothetical strategy and came up with the following: If you were to trade all day, you could do 2,567 trades, pay an average of $4 commission on each trade for a total of $10,268.

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To view larger image, click HERE.

If you have 1,396 ticks profit with an average of $10 per tick, that gives you a gross profit of $13,960. Sounds pretty good so far, but when you subtract out your commission/fees, it brings your net profit down to $3,692. The max draw-down is calculated to be $7,450 peak to valley. By looking at the above chart you can see that trading all day did not equal more money.

Less Time?

Here's how it would be if a trader were to narrow the time down to trading only two and a half hours per day taking every trade during that time. The following chart shows how things turned out in this scenario.

 To view larger image, click HERE.

In two and a half hours, you could place 655 trades. Still using the same $4 commission on each trade and $10 per tick, you would have $2,620 in total commissions and 2,048 ticks profit for a gross profit of $20,480. Subtract the commissions/fees from the gross profit to get the net profit of $17,860 with a drawdown of $2,840. That sounds even better for less time working.

Add A Filter?

For the next scenario, what if you were able to apply just one filter that would allow you take only 265 trades, pay just $1,060 in commissions and have a net profit of $17,060. The draw-down would be $1,470. That makes trading even more profitable!

 To view larger image, click HERE.

The image above shows that still trading just two and a half hours a day, if you were comfortable with the draw-down before the filter was applied, you could double your contract size, which would double your draw-down to $2,940. This is almost the same as before the filter at $2,840, but it also doubles your net profits to $34,120!

This is one example of a simple system that can be implemented to limit the time you spend staring at your computer screen. Most traders would consider that a pretty good investment of their time and a good rate of return. Martin is excited to show you exactly how to achieve such remarkable results at www.apexinvesting.com.

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Posted In: Binary OptionsEducationGenerallifestyle
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