Is it possible to double your money in a single trade? – Life Hack for Traders
Can I double my money in a single trade?
When can I double my money?
How much should I pay you to double my money?
The answers are all positive.
You can double your money, do it in a single trade and you don’t have to pay or depend on others to double your money.
But the catch is..
IT DOESN’T HAPPEN EVERY TIME !!
It also depends on so many factors like market, psychology, expertise etc.
Some markets or assets provide more profits than others simply because the average movement is so large.
Stocks usually cannot provide massive returns in a single day, but they are safer to trade. It has upper and lower circuits that prevent the stock from rising above a certain level.
Forex and cryptocurrencies, on the other hand, move quickly and provide large returns. This can double your capital in a single trade. But it can also quickly wipe out your entire account.
This occurs because it provides more margin, which can also multiply your profits as well as losses.
These two have the greatest potential to double your capital in a single trade.
If you only want to trade stocks, you can use derivatives. As forex and crypto currency trading is not legal in countries like India.
Futures and options have the potential to both double and deplete your account. Options trading among this is riskier because it has a time value and your capital can quickly erode.
So, choose which asset you want to trade.
Other factors must also be considered when planning to double your account.
Check to see if the specific set up you intend to trade will hit the target or not in a single trade.
Expertise matters the most as you should be very confident of your trade or else you might lose your capital.
You should be 100% confident in your trade, and you should also plan your entry, stop loss, and target.
There is no room for error here, and you cannot afford to lose your entire investment.
You can have a common trading strategy with 60 to 70% accuracy if you are okay with doing multiple trades to double your account.
However, unless you have a highly accurate strategy, extensive market knowledge, and years of experience, the chances of doubling your money in a single trade are extremely low.
Waiting for the right time, no matter how long it takes, and then taking a trade is the best way to double your money in a single trade.
Trading psychology is the most important thing as you should absolutely have no emotion while relying on a single trade to double your account.
You may feel various emotions such as fear, greed, frustration etc. You can, however, control your emotions.
If you use a large sum of money to double your account, you may experience anxiety.
If you have a small amount of capital but want big returns, you may become greedy and raise your target level.
These emotions may cause your logic to become distorted, and you may make an incorrect entry.
The solution to this problem is dependent on the underlying cause of your problem.
To find the root cause, keep a trading journal and record all of your emotions while trading.
Determine the issues that are causing your emotions and work to resolve them.
If it’s fear, learn everything you can about the strategy, money management, psychology, and so on. As a result, your confidence will win over your fear.
Find ways to increase your capital if it is greed.
If you are frustrated, understand the market reality and where you are going wrong.
These things work well if you are currently trading and intend to double your account in a single trade in the future.
* This is not the right way to double your account.
However, if you are willing to take risks, keep the following rules in mind.
Find the most accurate strategy, backtest it and practise it.
However, if you want to immediately double your account, make sure you have meditated, relaxed, completely focused and are in the right mindset.
Do demo trades to double your account in a single trade.
Then start live trading with a small amount of money and see if you could double your account in a single trade.