The document provides information on money management strategies for trading, including the 2% rule for limiting risk on trades to 2% of your account balance. It discusses the distribution of trade outcomes with losing, zero, and winning trades. It presents examples of trading plans, including starting balance, risk lines, trade objectives, and stages. It gives a sample personal trading plan outlining goals, schedule, pairs traded, indicators and tools used, position sizes, stop losses, and challenges to work on. The plan is to start with a $4000 account and risk $1000, trading 5 days a week for 3-4 hours to aim for $300 weekly profits while focusing more on trend trading over time.

1. GoToWebinar Attendee Interface
1. Viewer Window 2. Control Panel

2. Money Management
Introduction
Distribution & Trade Size
The 2% Rule
Frequency & Compounding
Trading Plan
The Next Step

3. Distribution of Trades
 Losing Trades
 Zero Trades
 Winning Trades
 High ‘r’ Multiple Trades
 Profiting from this distribution

4. - 1 (ALT)
0
1
2
3
-1
-1 or L Trades = A trade with a result of your Average Losing Trade (ALT)
-2% of your bankStop Loss
Trading Distribution Line

5. - 1
0
1
2
3
1
-1
1 Trades = A trade with a positive result of equal size to your Average Losing Trade (ALT)
-2% of your bank
+2% of your bank
Stop Loss
Trading Distribution Line
These two actually cancel each other out as they are the same size and equal in frequency
and occur about 25% each

6. - 1
0
1
2
3
1
-1
0
0 Trades = A trade with a result of zero (or very small win/loss result)
0% of your bank
-2% of your bank
+2% of your bank
Stop Loss
Trading Distribution Line
These three trades actually cancel each other out as they are the same size and equal in
frequency and occur about 25% each

7. - 1
0
1
2
2
1
-1
2 Trades = A trade with a positive result of twice your Average Losing Trade (ALT)
0
+4% of your bank
0% of your bank
-2% of your bank
+2% of your bank
Stop Loss
Trading Distribution Line

8. What is displayed here is an increase in trading frequency with the
same distribution
Same ratios or distribution of Winning/Losing /Zero trade sizes
2, 1, 0, -1
Expanded Trading Distribution Line

9. The -1 trades, 0 trades and the +1 trades
Cancel each other out
Leaving 5 winning 2 trades
Expanded Trading Distribution Line

10. Trading Plan
Introduction
Starting Balance
Risk Line
Trade Objective
Stages
Scaleability

11. Trading Plan
Example Trading Plan

12. Trading Plan
Your Trading Plan should look something like this
I have $2000 dollars in my account
I am willing to risk no more than 2% on any trade
I am willing to risk $500 (25%) of that account as my
maximum risk
I am going to trade 4 days per week and I will commit 3
hours a night from 6.30 pm to 9.30pm
I am expecting to make $500 per week which is $125
per night

14. Trading Plan
Example Trading Plan
Controlling Risk

16. Trading Plan
Example Trading Plan
Controlling Risk
Stages
Example Plan

17. BACKGROUND
I medically retired early this year at 53 after 30 years in teaching and the last
10 years as a Deputy Principal. I receive a generous, indexed superannuation
pension and own my own home and a couple of investment properties so I’m
financially secure. I’m a visual learner and readily relate the graphical
representations in the Chinese candlestick FXCM platform and the visual
indicators suit me well.
WHY
My goals for FX trading aren’t so much financial as much as the mental
stimulation that I need in retirement. If I can make a few hundred dollars a
week to supplement my pension, then so much the better.
WHEN
I’m generally at home most days or at least for part of each day. I live on a
small acreage which requires regular work (my exercise), grow some veges
and maintain the family’s fleet of cars (7). Amongst all this I’ll be on the
computer with email etc etc. This all means that I’m in the fortunate position to
be able to regularly check the markets throughout the day and evening,
monitor trends and place and close trades.

18. I’m an early riser so usually assess long term trends starting with the daily
charts and working down to 15 min charts between 6.30 and 7.00am, when I
place entry orders, and do some scalping if there is volatility in any of the
currency pairs. Late morning I’ll have a further look at trends and again do
some scalping. My main trading time is from about 4.30pm to 6.30pm and/or
7.00pm-9.00pm during which time I’ll be mainly volatility trading. I do this 5
days per week.
HOW
I have to admit I enjoy the engagement and cut and thrust of volatility trading,
even though there are far better profits to be made, and with a lot less stress,
from trend trading. A point you often make. I know the higher brokerage costs
are the downside but I see them like taxation. If I’m paying more tax its
because I’m earning more! Not that I want to hand the brokers any more than
I have to and so I’ve been learning to stay with the trades longer than I
previously did.

19. I trade mainly in the EUR/USD, AUS/USD, GBP/USD and occasionally
NZD/USD (only because of its correlation with the first two) currency pairs but
regularly trade most other currency pairs, especially the JPY correlated
currencies. I’ll monitor trends and set entry orders on the 15min charts and
trade on the 5min charts. At times of high volatility I’ll scalp on the 1 min charts.
For some months I’ve traded 20K positions with occasional 30-40K positions
depending upon my confidence in the trade. I see the need to spend at least
the first week of live trading using only 10k positions however. I’ve tried all of
the indicators that have been presented during the training but have settled on
the MVAs 20, 100, 300, MACD and ATR on my trading pages. I rely heavily on
candlestick structures linked to ATR levels of volatility for both entry and exits.
I’ll generally set limits for trend trading at 15-20 pips with 40 pip stops and
volatility trades at 5-10pips with 20 pip stops. I actively review stops and limits
during my main trading session/s.

20. PERSONAL CHALLENGES
The areas that I need to work on are … Relying more on trend trading and
entry orders and so spending less time in front of the screen, as much as I
enjoy it; Making fewer trades but more longer term trades;
Exiting losing trades earlier as I tend to hang in there too long;
Staying with winning trades for longer; Don’t attempt to recover losses by
increasing position sizes and immediately retrading; Don’t trade at any point in
time if the Market doesn’t look ripe.
I’d like to begin with a $4000 account balance from which I’m happy to risk a
$1000.
I’ll continue to trade, at least for the next few months as I have been, 5 days
per week for 3-4 hours per day in total. My goal is to make a minimum $300
per week and to work over the next six months towards striking a balance
between spending less time in front of the computer and relying more on trend
trading.

21. 30 Trade Challenge
New Account / Clean sheet
Save every trade Send to Trainer
Marks your trades/School Teacher
Good>Bad>Ugly
Sends Back to you
Remove poor performance
Stop your losing first so NO RISK

22. Trading Plan
Example Trading Plan
Controlling Risk
Stages
Example Plan
Scalability