Original Strategy - Introduction

We’ve reproduced below the full promo (as is) for the original strategy e-book we found on the net.

 

Learn how to trade EUR/USD, USD/CAD, GBP/USD or any other major currency pair by mastering a system that combines top level mathematics with the fundamental principles of human behavior - simplified in such a way that even a high school dropout can quickly start profiting from it...

	Have just a little money to invest, so you need to be sure any investment you buy is low risk and yet high yield?
	Sobered to know only five percent of traders actually make healthy, regular, long-term profits?
	Heard of others taking big profits in Forex, but don't know if an ordinary person like you could do the same?
	Trying to patch together a winning Forex strategy from bits and pieces of other people's advice, but finding it just isn't working consistently?

 







If any of this describes you, and yet you want to start making profits in one of the biggest, most profitable markets in the world -- a market brimming with opportunity for huge, rapid gains -- then read every word on this page before you invest a penny.

 

When you're starting out, one of things you discover is that only a few Forex traders actually scoop profits out of the market consistently. Just a tiny minority. Everyone else is losing, or just breaking even.

So what's their secret? Do winning Forex traders have some special talent? Have they found some inside knowledge and locked the rest of us out? Do they have a knack of thinking "positive" or thinking "winning"? Are their computer more powerful and their trading software more sophisticated?

What is it?

Well...It's none of the above!

Let's have a look at the figure below.

The typical beginner trader moves with the "herd". He sees a rally, doesn't want to be left out, and enters the market at point A. However, by then, winning traders, who were in earlier, start to cash in on their profits and the rally loses steam. So the beginner's position falls. His money is dissolving before his eyes! Either he panics and gets out at point B, when he can't bear the pain any more. Or, if he somehow manages to stay in long enough to see the next rally, he leaves at point C, relieved to recover at least some of his losses. This is exactly the kind of "herd" trader that successful traders prey upon.

 

But actually the beginner also lost at point C. Because during that exact same move the winning traders had leveraged their trading capital, entered and exited at the optimum times, and stuffed their accounts with profits!

If you want to learn how to enter and leave like the winners do, you should keep reading.

 

"How to leverage your capital in order to multiply your profits."

Many beginning traders don't fully understand the concept of leverage. Basically, if you have a start up trading capital of $5,000 and if you trade on a 1:50 margin you can effectively control a capital of $250,000. However, a two percent move against you and your trading capital is completely wiped out. If you are a beginning Forex trader you should not use more than 1:20 margin until you get comfortable and profitable and then and only then you can attempt to use higher margins.

What does 1:20 margin mean? It means that with your $5,000 you will control a capital of $100,000. Let's say you are trading the currency pair EUR/USD and by using our entry strategy you have decided to enter the trade on a long side. That means that you are betting that USD will depreciate against Euro.

Let's say current EUR/USD rate is 1.455. Again, if your trading capital is $5,000 and you are using 1:20 leverage you will effectively be exchanging $100,000 to Euros. If the current rate is 1.455 you will receive 100,000/1.455 = 68,728 Euros.

If the trade goes in your direction margin will work in your favor and 1% decline in USD will mean 20% increase in your start up trading capital. So if EUR/USD rate moves from 1.455 to 1.469 you will be able to exchange your 68,728 Euros back to $101,000 for a profit of $1,000. Since your start up trading capital was $5,000 it is effectively a 20% increase in your account. However, if the trade went against you and USD appreciated 1% vs. Euro your account would be reduced to $4,000.