Add A Zero
The concept of ‘adding a zero’ is simply developing a set up that is something reliable that you can execute on with a very high degree of success with only one contract. Then, adding contracts is simply a matter of sizing up of the account.
For instance, trading with $1000 and one MES micro contract, successfully taking 10 ticks out of the market with little or no MAE can easily then ‘add a zero’ and do it with 10 contracts, or, one ES mini. You will need more capital in order to execute the exact same strategy of course, one contract MES requires a minimum of $40, so you could easily trade up to 10 (requiring $400 in capital) with a $1000 account but that would also necessitate that your strategy works VERY reliably and is PROVEN. So, practice growing that $1000 with one micro contract before adding a second contract, then grow it another $200, increase to 4 contracts and trade exactly the same, for 10 ticks…. then 6 contracts, then 8 until you can easily trade your setup with 10 MES and have doubled or tripled that original $1000.
Maybe it takes you a month or 6 months….so what??? Then you can trade comfortably with ONE full ES MINI! Repeat that same process…. ADD A ZERO and you are now trading with 10 ES contracts! 10 ticks a day… that is $12.50 x 10 x 10 = $1250 per day. There are roughly 240 trading days per year (actually about 250 but no one ever trades every single day so I like to assume I will take at least 2 weeks off during the year). 240 x $1250 is $300k per YEAR.
What if it took you 5 years to get there?