I understand that everyone wants to make profits quickly, after all, the desire to earn a lot of money quickly is something everyone wants, and this is a very normal human need.

In my own trading over the past decade, I have also experienced phases of quick profits and have gained some experience and skills in this area.

Today, I will not keep it to myself and will summarize some of my past practical experiences to share with everyone.

1. Find trading opportunities with a high reward-to-risk ratio

A high reward-to-risk ratio means that the stop-loss space is small, but the profit space is large, and the return on a single trade is very high. This kind of opportunity is the best way to make quick profits.

In practice, with a small stop-loss space, one can take a heavier position. With a heavy position, once the market moves, it can quickly generate large profits, and the profits can be very considerable.

Of course, doing this also requires a very precise entry point and strict stop-loss points. Grasping the trading opportunities is very important, which tests our technical level and execution ability.

I will now explain two technical methods for high reward-to-risk trading opportunities.

The first method: When the market is at the bottom, the reversal opportunity when the force is exhausted.

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There are two key points to this trading opportunity, one is the bottom, and the other is exhaustion.Let's start with the bottom. For a market to potentially reach its bottom after a significant and rapid decline, the drop must be substantial. It is also necessary to consider the support and resistance levels ahead. A significant drop is required, followed by the market testing the resistance level or reaching near the support of the resistance. This is when the probability of a reversal becomes higher.

Next, let's discuss exhaustion. When the market tests the resistance level, there should be a surge in volume, indicating a rush towards the level. If this rush is followed by a fake breakout that leads to a bear trap, the state of exhaustion becomes more evident.

The chart shows the Hong Kong Hang Seng Index's candlestick pattern. On the left side is the daily level, and on the right is the hourly level.

First, look at the left side, where the market tested the previous low support zone at the daily level.

Next, on the right side, after a significant and rapid decline at the hourly level, the market tested the support zone. The next morning, at the market open, there was a downward fake breakout to trap bears. After the trap, the market quickly recovered, forming a reversal candlestick pattern. This is a classic sign of market exhaustion, and subsequently, the market shifted from bearish to bullish.

One can enter the market directly after the formation of the reversal candlestick. This pattern can also be used for a bullish to bearish transition, with a high-level exhaustion reversal, which is a mirror image of the other, but I won't go into detail about that.

The second approach: Trade the larger time frame trend, compress the stop loss entry to achieve a higher reward-to-risk ratio.

Trading the larger time frame trend implies a larger profit potential, but often the stop loss space is also large at this level, resulting in an unattractive reward-to-risk ratio. In practice, when trading the larger time frame trend, compress the order's stop loss space to achieve a higher reward-to-risk ratio and quickly make a profit.

The chart shows the candlestick pattern of spot gold. On the left is the 4-hour level, and on the right is the 15-minute level.

On the left, at the 4-hour level, the market broke above the long-term downtrend line, which had been in place for nearly 20 trading days. After gold broke the trend line, it retraced to the reverse support of the trend line and the horizontal support zone near 1912. The bullish trend at the 4-hour level is very clear.At this point, switch the k-line to the 15-minute level on the right side. After a reversal k-line pattern is formed at the 15-minute level, you can open a long position, using the low point of the reversal k-line as the stop loss. However, if the space of the reversal k-line is large and the entry stop loss is greater than 20 points, do not enter the market first. Wait for the market to pull back, and when the stop loss space is reduced to 20 points, then open a position. You can use a limit order to conduct the trade.

There are two trading opportunities in the chart. After the first entry, the order was stopped out with a loss of 20 points. The second time, after the reversal k-line was formed, the stop loss space was greater than 20 points. The closing price of the k-line was 1912.46, and the stop loss price was 1910. At this point, opening a position directly with a stop loss greater than 20 points is not advisable, so do not enter the market for the time being. Place a limit order (order placed at 1912), waiting for the market to pull back and enter, thus compressing the stop loss to 20 points. Subsequently, the market rose significantly, and the profit-to-loss ratio for the first wave reached 10:1.

Operating in this manner for a 4-hour trend, we enter with a stop loss of 20 points, which can yield a very favorable profit-to-loss ratio, allowing for quick profits.

Of course, this approach may miss trading opportunities in markets that do not retrace, but such opportunities often have a large stop loss space and not particularly high profit-to-loss ratios.

Precautions:

(1) High profit-to-loss ratio opportunities occur infrequently, requiring patient waiting. Here we must act as a sniper, waiting patiently until all conditions are met before taking action. The waiting process may lead to missed opportunities and potential profits, so patience and confidence are essential.

(2) Trading with a heavy position is very demanding on one's mindset, requiring strong discipline and execution. Pay close attention to this.

(3) When entering, try to compress the stop loss as much as possible, which can result in a higher profit-to-loss ratio.

2. Choose varieties with strong explosive power, that like to rise quickly, and have large fluctuations.

For quick profits, the market must fluctuate rapidly, and for substantial profits, the market must also have a large fluctuation space.So, to quickly generate profits, we must select varieties with strong explosiveness, rapid price increases, and large price fluctuations.

The Hang Seng Index, which I mentioned in the example above, has such characteristics. The chart shows the 1-hour candlestick chart of the Hang Seng Index. There are many near 90-degree rises and falls in the chart, with a large range of market movement, and the pullbacks in between are very small.

Once you enter such a market, hold the order, and you can quickly make a very considerable profit.

It's not just the Hang Seng Index; in fact, global stock index contracts have similar trend characteristics, such as the NASDAQ Index, the Dow Jones Index, European stock indices, the FTSE 50 Index, and so on, especially at the opening, there will be rapid rises and falls.

Other commodities like crude oil and gold in the foreign exchange market also have such trend characteristics.

When selecting varieties, choosing those with large price movements is easier to make a profit.

The chart shows the 5-minute candlestick screenshots of the US dollar against the Swiss franc, gold, and the British pound against the US dollar after the non-farm payroll data. Let's compare their price movements after the non-farm data.

On the far left, the US dollar against the Swiss franc moved more than 70+ points, with a profit of 700 for one lot.

In the middle, gold moved more than 180+ points, with a profit of 1800 for one lot.On the far right, the British pound against the US dollar has moved 90+ points, making a profit of 900 for one lot.

The same data shows that the trend of gold is twice that of other commodities, and the profit realized is also twice as much. Trading in gold, which has a large price range, is easier to make a profit. Therefore, to quickly make a profit, it is essential to choose the right product.

3. Learn to add positions correctly to make more profits from one opportunity

Position adding refers to the act of opening a new position at a reasonable technical point during an ongoing trade that has already made a profit, but the trend has not yet ended. Typically, there will be multiple additions in a position-adding trade.

The chart shows a 5-minute candlestick chart of the British pound against the US dollar, which is a bullish trend following the non-farm payroll data release.

After the non-farm data was announced, the market opened high due to the positive data, and after a pullback and stabilization, a reversal candlestick pattern was formed, and long positions were entered.

After entering the long positions, the market moved up 20 points to add positions, and then every time a profit of 20 points was reached, positions were added again. There are a total of 4 opportunities to add positions in the chart. Let's compare the profits with and without adding positions.

Without adding positions, the entire trend of the market rose by 90 points. Assuming a high point to close the position, the profit is locked at 80 points.

With position adding, the same high point to close the position is used. The first order made a profit of 80 points, the second order 60 points, the third order 40 points, and the fourth order 20 points, totaling 200 points. By adding positions, this 90-point bullish trend made a profit of 200 points.

Comparing 80 points to 200 points, the position-adding trade operation is in place and can quickly make a profit.When engaging in position-scaling operations, there are several important considerations to keep in mind:

1. Select fast-moving, straight-line trending instruments for scaling positions, such as the Hang Seng Index, crude oil, and gold, which are mentioned above and exhibit these trend characteristics.

2. Position-scaling trades require a high success rate, so it is crucial to choose opportunities with a high probability of success for scaling operations.

3. The trading operation of scaling positions can be applied across different time frames.

4. During the operation of scaling positions, it is common to accompany it with trailing stop-loss operations, adjusting the stop-loss for profitable trades, which helps to control the risks that may arise from market reversals after scaling.

4. Allocate funds reasonably based on the system's win rate.

We form a trading system by trading a certain fixed structure and pattern, and the results have their distribution of right and wrong outcomes. However, by studying a certain fixed structure and pattern over the long term, it becomes evident that in some special circumstances, the success rate of the structure and pattern is higher, and the market space is larger. Of course, these opportunities tend to occur less frequently.

We can use normal position trading for these fixed structures and patterns in practical operations. But if special circumstances arise, such as encountering opportunities with a high success rate in trends, we can increase our positions to achieve higher profits.

This approach does not affect normal trading and allows us to seize significant profits in key opportunities, making profits quickly.Let me illustrate with an example for everyone.

For instance, in the case of a horizontal break pattern, if the consolidation period is long, the consolidation pattern is standard, and the space within the consolidation is compressed to a small range, and then it is accompanied by a break in a larger time frame, such patterns often have a higher success rate. After the break, the market has more room to move, so you can increase your position in such trading opportunities to gain greater profits.

The chart is a schematic diagram of a high-probability horizontal break. On the left side of the chart is the 1-hour timeframe of the candlestick, and on the right side is the 5-minute timeframe.

On the left, at the 1-hour level, the market rallies and retests the previous high to find support. On the right, at the 5-minute level, the market forms a wide-ranging horizontal consolidation pattern with a long consolidation period, a standard high-low pattern, and a small space contraction, which meets the basic characteristics of a high-probability opportunity. When choosing to enter on the break, increase the position.

Normally, trade horizontal breaks with a normal position, and once you encounter such high-probability opportunities, increase the position to gain more profits.

Notes to consider:

(1) For such high-probability opportunities, you can also use the operation of adding positions in a single trading opportunity to quickly make profits.

(2) Heavy positions are also relative, for example, being 1 to 2 times heavier than the normal position is reasonable, after all, even high-probability trading opportunities may also result in a stop loss. Additionally, consider that too heavy a position may cause fear and hesitation when executing, affecting the execution, so moderation is key.

(3) Here I have given an example of a horizontal break, but everyone must summarize their own high-probability trading opportunities in actual combat. You can try to allocate funds to add positions for trading, which reduces psychological pressure.

Moreover, adding positions must be gradual. Start by slightly increasing the position in high-probability trading opportunities, and then slowly add heavier positions as confidence grows.The above are four techniques for making quick profits in trading. The right method is the one that suits you. Before engaging in actual combat, it is best to test for a period on a demo account to ensure a relatively stable mindset before entering the real market.