Now, add in the higher transaction costs that accompany a higher trade count, and you’ll see some eye-opening numbers.

The figures in the image above are calculated using raw data fed into software, and in no way are intended to reflect or promise a certain percentage return to be made.

Take a thorough read!

The most interesting piece of data for us is that someone trading 4 positions a month can just about match the returns of someone who takes 25 trades per month.

That is 8 times more trades, countless more hours at the computer, yet basically the same return.

This assumes the trader taking 25 trades per month is entering lower quality positions that result in a lower strike rate. This doesn’t account for the fact that a higher trade count opens the way to greater exposure to weekend gapping, slippage and human error. The reality of the numbers could be even more extreme than in this (simulated) example, depending on the trader in question.

So how can you use this?

1. Over-trading and under performing. If you’re currently taking (in the region of) 25 trades per month and not seeing great profits… Advanced self-review (ASR) your performance. Re-read Lesson 9 if you need a refresher. If in doubt, always start with ASR. Send your results into Infinite Prosperity email support and we will help.

Wise questions to ask yourself:

• What is my strike rate?
• What is the quality of my trades?
• Could I afford to drop my trade count, and would it increase my strike rate?
• How much am I paying in spreads monthly?

Keep in mind that dropping your trade count won’t necessarily make your profits less. In fact, it could be exactly what you need.

2. Looking for greater returns. If you’re trading very conservatively and you have more time to increase your entry count, you might consider applying for Infinite Prosperity Platinum, where we teach you the art and science of day trading. Just keep in mind, that increasing your trade count by taking lower quality trades may not deliver the massive profit increase you might have thought. In other words, if you’re taking 4 trades and making 3% per month, and double it to 8 trades per month, you won’t necessarily make 6% per month as you might assume.

Keep time in mind. A successful day trader typically yields a greater percentage return than a successful swing trader. However, given the nature of the two trading models, the hourly rate of the swing trader is usually higher.

3. More trades with a constant strike rate will make more money. If you are able to take more entries while retaining the same strike rate over time, you will make more money.

Therefore, the best way to increase your profits is to:

• Start by increasing your reward/risk ratio by expanding your market awareness and capitalizing on key support and resistance. Cut your losses short and let your profits run.
• Increase your trade count very very gradually, while retaining high-quality entry filters and, therefore, a high strike rate.
• Remember, ss soon as you start taking careless entries, your strike rate will fall away and your increased trade count (and time commitment) will be in vain.