this means 5 mini lots per trade position per $10,000 in your trade account, or 5 100k lots per trade position per $100,000 in your full account.

As you can see, I have even allowed for a deduction of $100 per month for subscription fees!

The account grows from a starting balance of $10,000 to a final balance of $88,200 after two years!

Yes, that’s eighty eight thousand two hundred dollars after two years!

This has been achieved at a conservative 200 pips a month with a very safe leverage of only 5:1, and you can see that most of the growth has come about

through sensible growth and re-investing profits at a safe rate of return.

That’s the power of compounding!

Note how the number of lots traded grows as the account balance grows, enabling you to make more money from the money you have already made. If you push the

projection out for just one more year, the profits are an amazing $274,200!!

Well, if only it were as simple as that. The problem is that not every month is a winner (although 100% are at this time) and we don’t make 200 pips every

other month. The good news is that we actually make over 300 pips per month most of the time, and the bad news is that we must allow for losing months.

Ok, so let’s look at scenario 2 – a more realistic picture of what might be achieved. I have changed the winning months to 300 pips each (compare this to the

actual results in the table on the first page) and have also allowed for three losing months of -350 pips each. Let’s look at the more realistic Scenario 2:

MT2nd spreadsheet

Today’s trade suggestion:
Little has changed since last week, as the Euro has been in a broad sideways range for much of the last week. Support levels are listed above and we’ll continue to look to buy the Euro into dips, with an unchanged strategy.
There is a word of caution: It is very possible that we’ll retrace and correct back to the weekly downward trend line, which now acts as a support. Today, this lies at roughly 1.2520, which is below the weekly reversal level. As bullish momentum has slowed somewhat and the danger of a consolidation/correction is increasing, we’ll allow for some careful trend and counter-trend trading if the opportunity arises. Watch for potential topping at 1.2980/1.3000

Update: Very little change, as the euro popped its head up briefly above 1.3000, and then back to the range. We’ll have to wait and see if we get another rally from here. The strategy remains unchanged, apart from small adjustments to the support levels above. Probably best to focus on trading in the direction of the bullish trend today.

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as far
as 1.2630. First target 1.3000 and then 1.3120.

Forex brokers will offer you 100:1 and even 200:1 leverage, promising that these offer opportunities to easy and quick riches.

Don’t believe it for one minute!

When you leverage your account, you are actually borrowing money from the broker with the hope that your trading will make you money on the borrowed funds. It’s the same as taking a loan from the bank and “gambling” it in your trading account. A little leverage is OK – it makes sense to make money using other peoples funds, but too much will lead you to disaster quicker than you can blink.

Here it is: As a rule of thumb, I recommend no more than 10:1 leverage on your trades.

That means for every $10,000 in your mini account, you should trade no more than 10 mini lots, or for every $100,000 in your full trading account, you should trade no more than 10 full (100k) lots.

But can you make money at this leverage?

Of course!

I will show you later how this modest leverage can be used to convert your account safely into many multiples of the initial balance, if traded wisely.

Key number 3: Compounding profits

The power of compounding is simply amazing.

Compounding means that you re-invest some or all of each months profits back into your trading account and you use the profits to generate more returns. The only way I can show you the power of this process is in real numbers, and I intend to do just that right now.

Trading plan for our signals to explode the profits in your account!

First of all, let’s look realistically at what you can expect to achieve each month, based on our current achievements at www.thetradersclub.com and our previous experience as well.

The average pips-per-month is roughly 300, with some months over 500. We need to know what to expect before we can make any projections going forward. Please remember though, that past performance is no guarantee of future returns, and the risk disclaimer on our site should be read and understood before proceeding.

Now we know the expected returns in pips, we know that the leverage should not be more than 10:1 on your account, and we know that the trading system works and should be followed as it generates signals (no moving stops or adding to losing trades!)

What will this generate on our account?  The spreadsheet attached gives us

Scenario 1 – Conservative returns of 200 pips per month and no draw down months, at only 5:1 leverage (instead of 10:1). Take a look…

MT1st spreadsheet

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today’s trade suggestion:
Little has changed since last week, as the Euro has been in a broad sideways range for much of the last week. Support levels are listed above and we’ll continue to look to buy the Euro into dips, with an unchanged strategy.
There is a word of caution: It is very possible that we’ll retrace and correct back to the weekly downward trend line, which now acts as a support. Today, this lies at roughly 1.2520, which is below the weekly reversal level. As bullish momentum has slowed somewhat and the danger of a consolidation/correction is increasing, we’ll allow for some careful trend and counter-trend trading if the opportunity arises. Watch for potential topping at 1.2980/1.3000

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as far as 1.2530. First target 1.3000 and then 1.3120. Perhaps try small counter-trend short trades between 1.2980 and 1.3050 if there is a clear G7 entry signal.

1.    A poor trading system.
2.    Poor money management

We can provide the first one for you – that’s the easy part! However, the second part is even more important and I want to show you what you can achieve if you do things the right way and if you follow a systematic money management approach.

I have prepared some Excel spreadsheets to show you how you can convert your small trading account into a substantial sum of money if you have a profitable trading system or profitable signals and if you know the three Keys to making money in Forex trading. But before we go through the spreadsheets, let’s briefly cover the three Keys to making money in trading Forex.

Key number 1: Managing risk per trade

Key number 2: Managing risk per account

Key number 3: Compounding profits

Ok, so let’s go through these keys one at a time. Let’s say you were able to get your hands on a profitable trading system or someone was willing to send you profitable trade alerts.

Would this mean that you would automatically make money trading your account?

No way!

The problem is that, as hard as it is to learn how to trade the market, it is even harder for most people to manage their account. This is mainly due to
inexperience and wrong, emotional decisions. I can’t help with the emotional side (although there are some excellent books on the psychology of trading at available, but what I can help you with is gaining experience in converting a winning trade system or signals into money in the bank.

It’s all about money management.

Key number 1: Managing risk per trade

Trading involves risk. Every trade we take has a chance of being a winner and a chance of being a loser. There is simply nothing that will ever change that…

No-one knows where the market will go next with certainty.

What we can do is to develop systems which give us an edge of better than 50:50, and the systems we use win about 65-70% of the time. The other 30-35% of the time the trades are losers. This does not make the losing trades bad trades, but it simply means that the trades fell into the “good, but losing” group.

When a trade goes against us, the best thing to do is to close the trade for a relatively small loss and to wait for the next opportunity.

Many novice traders tend to hold onto losing trades, or even add to losing positions. This has a terrible effect on your account equity, risk of losing more and your emotional well being. Anyway, I don’t want to dwell on this subject, but I must stress that if you follow a trading system or signal, follow it precisely. Do not risk more than the 30-50 pip stop loss employed and do not add to losing trades.

More about that later…

Part Two will be posted here on Tuesday next week…

This is part 1 of a 3 part series. If you would like this e-book sent to you directly, simply opt in on this site and you will receive this,

along with another report or two and a complete video series.

Cheers for now,
Chris.

Update: Moving down close to 1.2840 – the 38% retracement level – but no real signs of reversal just yet. We’ll allow for a further dip to the support levels listed above, which will take us down to the raft of technical supports below us. Be patient!

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as far
as 1.2660-1.2700. First target 1.3000 and then 1.3120.

GBP/USD
Weekly Trend direction: Bullish
Weekly trend reversal level: 1.4950
Key G7 support levels: 1.5270, 1.5200/20, 1.5150, 1.5050
Counter-trend opportunities:

Strategy: above the weekly trend reversal level buy dips to support levels after an entry signal

Today’s trade suggestion:
In sync with the other currencies as they strengthen vs. the US dollar. The pound has rallied sharply to a new recent high at 1.5472, and is probably due for a correction or consolidation. We have already retraced to the 38.2% Fibonacci level at 1.5270, but we’ll allow for a little more pullback to the next support level at 1.5200/20 provided by a raft of support at the 50% retracement level, previous high and the 200 period moving averages. Look to buy into dips to 1.5200/20, or perhaps even 1.5150 if the dollar gains a little support in the early part of this week. Wait for a clear G7 reversal signal, remembering the PAPA principle! Targets for long trades are 1.5400and then 1.5450.

Update: Pretty much on cue, with a good profit yesterday resulting from the bounce from 1.5200. Another chance to buy was seen at 1.5150 during the Asian session, and once again the pound has delivered. As we have
seen plenty of action over the past 24 hours, it’s probably best to give the pound a break and focus on the other
pairs today.

Summary:
Buy dips to support levels after a clear G7 signal. Targets 1.5400 and then 1.5450. Staying out of this pair today.

Brian here with 2 extremely critical “Best Practices” for traders that you really
must not neglect, or your trading will suffer.

In my Quality Engineering days, we always sought to establish Best Practices wherever possible because it had a measurable effect on the bottom line, plus numerous other aspects of the business.

Now in trading there are Best Practices which will definitely benefit you and if you neglect them, your performance and your results are almost certain to suffer.

The First Best Practice

Highly successful businesses don’t just ‘happen’ by accident or by themselves.

…and you do want a highly successful trading business, right?

I mean you’re not in this for mediocrity or just something to do, are you?

No, you want a trading business that is consistent and most of all RELIABLE.

You want the security of knowing that your trading business can be counted on to provide both right now and for the future.

Again, reliable businesses don’t just happen, but the reason the so many traders never get anywhere, let alone taking it to that level where it IS reliable is this:

- they make the mistake of thinking that if they can just get making some money, then somehow everything will fall into place.

Where things go wrong

So many traders wind up too busy doing the thing of the business to ever take it to that next level, and just stay in kind of that ’scrambling to make money this month’ mode.

This is how businesses that ‘just survive’ get built and the owners usually do NOT enjoy the lifestyle that they want.

They find that they are working more hours than they’d like, and

They are not making nearly as much money as they’d like, and

They do NOT have the security in their business that they want.

The other (and more common) result is that the business struggles and dies, usually in a matter of months, simply because of the resources that get wasted instead of contributing to the bottom line.

So the solution is to implement the first Best Practice:  taking time to work “on the business”, not just “in it”….click here to see remaining article and two great videos on this

Today’s trade suggestion:
Capped at 1.3000, the euro is pausing a little before the next move higher to 1.3120. Weekly momentum remains bullish and we’ll continue to look to buy dips this week, whilst above the weekly reversal level at 1.2520. Notice that the weekly downward trend line has been conclusively broken, and this should also add fuel to a further move higher. Supports lie at 1.2820, 1.2760 and then around the 1.2700 mark. We must allow for a retest of the weekly trend-line from the top side – now acting as support, and this means we may experience a dip as low as 1.2700-1.2660. Targets for long trades are the big psychological barrier at 1.3000 and then onwards and upwards to 1.3120.

Summary: Buy dips to support levels listed above after a clear G7 entry signal, allowing for a retracement as far as 1.2660-1.2700. First target 1.3000 and then 1.3120.

Weekly Trend direction: Bullish
Weekly trend reversal level: 1.2480
Key G7 support levels: 1.2780, 1.2740, 1.2680
Counter-trend and scalping opportunities: 1.3120’ish

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today’s trade suggestion:
Beaten down from the weekly trend-line as expected, but not “out” Allow for a bit more work under the trendline, and perhaps even a pull-back to 1.2300-1.2400. That having been said, we need to stay above the weekly reversal level at 1.2480 this week for the strong bullish momentum to continue, and we’ll look to buy into dips whilst that is the case. Good support levels lie at 1.2570, 1.2520 and 1.2480/2500. Watch and wait for a clear G7
entry signal before buying the euro for a rally back to 1.2700. I suspect that the euro won’t be in a rush this week,
so be patient – there will be plenty of time to pick your moment!

Update: The Euro has finally broken the shackles of the weekly downward trend line and has had a good spurt of
momentum moving higher. For today, there will be little chance to trade using the G7 system in the weekly
direction, and picking tops with such a strong uptrend is dangerous. I’m going to wait for next week to re-assess
the charts. Aggressive trades may be tempted to pick a top (not recommended) and if you MUST, perhaps wait
for a further rally to 1.3120 and wait for a CLEAR G7 counter-trend set-up.

Summary: Stay sidelined OR look for a counter-trend chance around 1.3120 after a clear G7 entry signal.