RULE NO. 5: Leverage 100:1

‘Leverage’: As I mentioned earlier Forex trading is often attractive to investors because Forex trading offers such high leverage. However, with increased buying power comes increased risk. The risk becomes higher as your leverage increases. This system is designed for a leverage of 100:1. Where your leverage is higher, you can balance it by reducing the number of your open trades or adjusting your stop loss to reduce your maximum exposure to the market to disaster level of 10%. Remember, you are not here to gamble your hard-earned money away but to grow your wealth over time. The table below provides the effect of the system on leverages of 100-500

Account Size $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Open Trades Loss in pips 1 2 3 4 5 Account Balance
1OO:1 200 $20.00 $40.00 $60.00 $80.00 $100.00 $900.00
2OO:1 200 $40.00 $80.00 $120.00 $160.00 $200.00 $800.00
3OO:1 200 $60.00 $120.00 $240.00 $240.00 $300.00 $700.00
4OO:I 200 $80.00 $160.00 $240.00 $320.00 $400.00 $600.00
50O:1 200 $100.00 $200.00 $300.00 $400.00 $500.00 $500.00



If you follow all my postings right from the introduction to the ground rules, you will never fall as a trader. What you need to avoid are those items which constitute the graveyard of most trader.

Now that we have dealt with the ground rules, in my future postings we shall discuss the practical aspects of the trading system which covers the followings:

a) When to trade.
b) What to trade.
c) How to trade.
d) How to be a mechanical trader
e) How to remove stress and worries from your trade
f) How to trade and enjoy your life at the same time.
g) How not to be a slave to the trading platform
h) How to come out successful 99% of the time.
i) How to ensure positive returns months after months.