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Is It Possible to Double Your Money Each Day by Trading?

There are many ads online that tell you can double your profits on Forex in just a day. Of course, this is an exaggeration. And yet, it might be possible.

With this article, you will:

  • Explore the most profitable Forex trading strategy;
  • See if it is possible to double your starting capital each day.

What Is The Most Profitable Forex Trading Strategy?

There are hundreds of Forex strategies that claim to be profitable. Of course, there is no way we could review all of them in this article. That’s why we are going to discuss just the most profitable one — scalping.

Scalping is a collective term for all strategies that prioritize the number of deals before their profitability. For example, a scalper would have ten profitable orders closing with ten pips of profit rather than have one that closes with 100 pips.

This form of trading allows for extremely tight StopLosses. With scalping, a single lousy order will not hurt your overall disposition on the market — unlike the other way around.

The main issue with scalping is its high demands. Scalpers trade on the small timescales, which means they don’t get a lot of time to make a decision and often have to go with their intuition. And since it is your money that’s involved, scalping causes a lot of stress.

How to Trade With Lazy River?

Lazy River is the friendliest scalping strategy. It is easy to get into, and it provides a fair number of trading opportunities daily. There are other strategies, like Bali Scalping or RSI Scalping, that bring more trading opportunities or larger profit margins. However, they also carry much more risk and aren’t recommended to a newcomer.

Lazy River trader is going to need:

  • A 5-minute timeframe;
  • Two indicators: exponential 50 MA and 20 MA;
  • A currency pair with high liquidity. EUR/USD or USD/CAD are good examples.

Once you have this system set up, wait for the price to get in-between the 50 MA and 200 MA. Consider them the banks of your “river.” If the rate remains there for more than three candlesticks worth of time — do nothing, this situation is not profitable for Lazy River. However, if it attempts to exit the boundaries of the indicators — it’s time to act.

  1. Open two orders for the same amount of money in the direction of the price movement.
  2. Close both by StopLoss if the price reverts behind the local extremum;
  3. Close the first order by TakeProfit when it reaches the StopLoss value;
  4. Close the second order manually when the trend starts to reverse.

NOTE: If your indicators are crossing, consider stepping back for a couple of minutes, until the things settle down. Even if the other conditions are favorable, the risks get too high.

If it sounds complicated, here’s an example:

On this EUR/USD chart, the trading opportunities for the lazy river strategy are marked with arrows pointing in the direction of the price leaving the “river.” The best example occurred on January 10, at 10:05 (the third arrow from the left, marked blue). Let’s take a closer look at it:

The first order ends up making 80 pips or profit, the second one — 240 pips. If both orders were opened with 10 000 USD, the first order would end up making 8 USD, the second one — 24 USD. Combined, they’d put the trader 0.16% in the green.

0.16% doesn’t sound like much. However, that’s only if you are trading without leverage. With 1:100 leverage, these orders end up making 16% of profit — which is not too shabby for a single order! Of course, this case is exceptional. An average deal would be less profitable — around 5-8%. You can test this strategy on free practice account only by just entering your email here.

Is It Possible to Double Your Starting Capital Daily?

If you take the average order profit of the strategy (8%), you might think that you can easily double your starting capital — after all, you need only 13 successful orders a day. The reality is not that simple.

First of all, not each deal is a success. Even if you do everything right, you still might end up losing money because of an erratic movement on the market. Sometimes the strategy doesn’t work out, and you end up closing by StopLoss or just without profit.

Also, there might not be enough opportunities in a day. For example, in the less volatile currency pairs, you might get only 5 or 6 trading opportunities a day — and getting 20% profit on each of them would be a miracle.

So while it is possible to double your starting capital, it is highly improbable to do so. However, multiplying it by 1.5 is possible and probable, as long as your broker has tight spreads. JustForex ECN Zero accounts, for example, are perfect for Lazy River scalping due to 0 spreads.

JustForex is a broker which helps people to earn on the financial markets providing them with the beneficial conditions. Being an international broker and working with clients from different countries we understand that every person is unique with his own values, no matter whether he is a trader or a partner. When our team develops the services of the company, we take into account the variety of cultures, nations, trading experience and demands of our clients. JustForex offers several trading account types with a wide choice of trading instruments and everyone can find the most suitable one according to his preferences.

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