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FREE MAXIMUM LOT TRADING COURSE Hi Thank you for answering the questions in module 2 We are now ready to move onto module 3: 1 Basic risk reduction concepts 2 The calculation of maximum lots and splitting of trading capital 3 Strategies for using maximum lots with examples We hope you are enjoying the course and look forward to your feedback. Kind Regards Expert4x |
MODULE 3 OF THE MAXIMUM LOT TRADING COURSE Techniques for employing using the maximum lot technique. Basic technique The basic technique already discussed in this course is: 1 To split your capital and trading funds 2 Use the maximum lot trading approach 3 Transfer funds to your capital account once your trading account has doubled (+100%) 4 Transfer funds to your trading account once your trading account has reached +/- 20% of its original balance due to losses. 5 Use a following stop to reduce losses 5% basis The 5% technique is based of your trading account being 5% of your total risk money. The balance would then be in your capital account. This is a conservative approach but one that will ensure a long trading career. 10% basis The 10% technique is based of your trading account being 10% of your total risk money. The balance would then be in your capital account. This is a less conservative approach. One would have to have a reasonable good trading success rate of between 60% to 70% to adopt this approach. Increasing % method after a number of successes. Once you have achieved a number of successful 100% transfers to your capital (Say 4) it would be appropriate to increase your % which makes up your trading account. If you were using the 5% strategy then increase it to the 10% basis. If you were using the 10% basis increase it to the 15% basis. Overall philosophy The overall philosophy is that you will only increase your capital very slowly if you traded the same number of lots per trade or the same % of your capital. By using the maximum lot methods you can increase your capital dramatically without exposing your total capital to excessive risk. QUESTIONS AND COMMENTS Please use this facility to ask any questions or make any comments regarding this course. |
An Example of the doubling of a trading account in 2 trades. Joe has $10 000 available for Forex Trading. Using the guidelines of this course he puts $ 9000 in his capital account and $ 1000 in his Forex Trading account. He generally likes trading trades where the risk is 40 pips and the target is 60 pips. He does 2 successful deals and the results are a gain of $ 1 560 (156%) on his trading account. His gain is 15.6% on his total capital. He now transfers $ 1 400 to his capital account and starts the same process with a trading account of $ 1 160. |

Now if he were unsuccessful with both deals his balance would be $360. The losses can however be recovered very quickly with 3 successful transactions. |

1 A reasonable success rate: In practice, we make money with a success rate as low as 40%. Especially if the return on risked can be managed to a 1.5 to 1 ratio. 2 One trade at a time:- You can only trade 1 trade at a time when using the maximum lot system 3 You need a reasonable amount of Capital:- in order to split your capital into a trading account and a capital account in a meaningful way you need at least $ 5 000. |
Maximim lot approach. Hopefully you have found a technique with a reasonable success rate when applied with discipline. If not you can get a few ideas from our free trading techniques blog www. forextradeoftheday.com. We also have a number of high performance trading techniques and alert services available on the www.forextradersupportservices.com under “Forex Market Place” on the main menu. We have an alert service that produced over 20 000 pips last year – if you look at the examples above it only take 120 pips to double your trading account. 20 000 pips could potentially be worth a fortune. |
Thank for doing this course. Please do not think that this is a theoretical technique. There are Forex traders making serious money using this and small variations of this technique. We hope this has given you food for thought. Please contact Expert4x at info@expert4x.com if you need help with your Forex trading. |


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