Dear FX Top Gun,
Here’s a crazy idea for you… I want you to lose 60% of the time. And if you do – at least if you do it my way – then you will turn a solid profit EVERY MONTH and be way ahead of 95% of the minnows getting eaten by the sharks in the Forex waters. Let me show you exactly what I mean… A basic, fundamental rule of trading is to minimize your risk and heighten your reward potential. But like so many fundamental rules of the game, this one also seems to be ignored by the amateurs (see Secret #10 for more details on this topic). The funny thing is that the ratio between your risk and reward does not need to be huge. In fact, conventional trade wisdom puts the gap at 1:2 risk/reward. That’s not a lot, but even so, most traders can’t even seem to discipline themselves to live by it. Well, here’s a simple fact for you. If you live by this basic rule, you can lose 60% of the time and still mak e a killer profit trading Forex. The Secret Profit Center Behind Losing 60% of the Time Here’s how… If your trade set up does not provide at least a 1:2 risk/reward ratio, it’s not a good trade… no matter what your indicators are showing you… and especially no matter what your “gut instinct” is telling you. What I mean by 1:2 ratio is if you are willing to risk 10 pips on the downside, then you better have profit potential of at least 20 pips on the upside. How do you determine this? Use your main indicators! This is why indicators should tell you exactly what price you can enter and exit the market. If you are looking at going short at a resistance pivot on the EUR/USD at 1.3500 and you are willing to risk 10 pips above that resistance point before the trade is no longer valid, then the next pivot point down (support) and/or fib level or any other indicator that you use better give you clear sailing to at least 1.3480. If you trade this way, you can be wrong 6 out of 10 times and still be profitable. Think about it… 6 losers x 10 pips each= -60 pips. 4 winners x 20 pips each = +80 pips for a +20 pip net gain. 40% winners are all you need.
Here’s To Your FX Trading Success,  DC Bonta, The world’s #1 FX money manager  ******************************************************************* Editor’s Note: DC Bonta has established himself as the foremost expert in FX trading and is well respected around the world for his legendary high-margin returns. He reveals techniques in an all new training system called Institutional Forex System II. For more information, or immediate download, click here. *******************************************************************
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