This is it. This is the page of all pages, the one that explains in plain English how you can easily make money while taking as little risk as possible.

In a nutshell, you're going to 1) identify a trend and 2) trade in the direction of this trend. In the event that your trade goes bad - it hits your stop loss level - you will trigger a new (and larger) trade that goes in the opposite direction. Repeat as needed. The reason each subsequent trade is larger than the previous one is to make up for your losses so that when you finally win, your overall profit makes up for the previous losses - while still leaving you with a profit!

Identify a trend

Unfortunately, waiting for confirmation that the EUR/USD is trending may take several hours, if not days. The best thing to do is to recognise when a currency pair is definitely within a trend. A picture tells a 1,000 words, so look at the below picture.

As you recall, the MT4 menu allows you to see various timeframes for any given currency pair. By comparing the various timeframes (ignore M1 and M5, they are merely "noise" and don't reflect the dominant trend), you can see that the USD/CAD offers an ideal trading opportunity.

Time your entry

Once your Daily/4-hour/1-hour/15-minute indicators are all screaming to buy, go to your 15-minute chart and try to pick a good entry point - what you want to avoid is buying when price has hit a peak. The best thing to do is to wait for the currency pair to drop a bit (or a lot) and buy when you think it's going to reverse back to an upward direction. This takes time to master, and you won't always be right, but by following this method the odds will always be tipped in your favour.

This is what trading is about, tipping the odds in your favour. You have to accept the fact that you will lose some trades. Some of the greatest traders ever lose most of their trades (but their wins are bigger and by far exceed the losses).

Strategy: entering the trade and following up on the trade until your profit is reached

Once you've decided to enter a trade, here is what you do: if your trading account capital is €10,000 (or £ or $...), and you want to go long (long = buy, short = sell) on the USDCAD, you simply buy .1 lots while setting the stop-loss 30 pips below your buy price and the take-profit an equal 30 pips below your purchase price. By carefully buying or selling in the direction of the trade, you maximise the odds that you will reach your Take Profit level on the first trade.

This is the objective here: to hit a Take Profit level as quickly as possible. However, the great thing about this strategy is that you can still profit if price turns around and goes in the other direction - or if it bounces around up and down. If your initial trade goes bad and you hit the Stop Loss level (thereby closing this trade), a new trade is triggered in the opposite direction, and this new trade will be for a larger lot size in order to offset the previous loss (or losses in the event a 3rd or 4th trade is required to reach success). You simply repeat this procedure until you've successful closed one trade - any losses you've accrued will be offset by your final, successful trade.

As the diagram below illustrates via 2 examples, you can profit no matter which way the market goes!

We'll examine the above illustration in detail on the next page...