Other Added
#1 in Business Subscribe Email Print

You are here: Home > Finance > Currency Trading > 'Fixed Ratio' Money Management

Tags

  • notice
  • turned
  • trading account
  • start trading
  • above example

  • Links

  • Why Does Your Business Need a Website?
  • Prepare Your Rental Property for Occupancy
  • Creative Copywriting Maven Column - Article Marketing - An Open Letter To Every Business Owner
  • Other Added - 'Fixed Ratio' Money Management

    Boost Sales By Establishing Your Business' Corporate Identity
    The Importance Of Corporate Identity Have you ever wondered the first thing that comes to mind when a consumer thinks about your brand or company? Unless you haven’t worked on building a corporate image for your company, your company logo is the first thing that a consumer will remember.Brand awareness is crucial to creating and enhancing your company’s market presence, and to maximize brand recognition. You need to apply strategies that wi
    00 pips x 1 lot = $2000) Total: $12000

    Notice that gaining an average of 10 pips a day, along with fixed ratio money management helps your equity grow asymmetrically. Your $1000 turned into $12,000 in 10 months!

    Notice that your trading system doesn't have to always hit a home run, you simply need to average 10 pips/day in this example.

    If you wanted to be more conservative than the above example, you could simply add more pips profit in the formula. For example you could only increase number of lots traded after gaining 400 pips instead of 200 pips like in my example. This would mean slower growth. Try setting up a fixed ratio money management plan before you start your next live trade!<

    Ten Tips For Your Web Site Home Page
    1. Loading time:try to be below 20kbless number of imagesspecify height and width of imagesHtml with out errosWYSIWYG editors load up your html code. so try using text editor part of your html editors instead of visual editor2. Images Only home page:Say goodbye to images only home pages. Home pages with flash only introductions or only graphics don't attain good ranking in
    Money management is the most important and overlooked subject in trading!

    In my opinion, the best money management system for Forex/Futures traders is outlined in great detail in Ryan Jones' book The Trading Game: Playing by the Numbers to Make Millions. In this book, he teaches 'Fixed Ratio' money management. This method, he argues, will help any trading system as long as it is profitable over time.

    This is how to put the fixed ratio money management system into practice:

    1. Start with the total number of dollars in your trading account. For example let's say it's 1000 USD.

    2. Now pick how many pips profit you need to achieve before you trade with more lots. Let's say 200 pips (10 pips/day for 20 trading days in a month average).

    3. Now start trading .1 mini lots (which is profit/loss 1 USD). You would only increase to .2 lots after gaining 200 pips. When you gain 200 more pips profit you would trade .3 lots etc...

    4.Here is an example of how fixed ratio trading would work:

    Month 1: $1000 + (200 pips x .1 lot = $200 ) Total: $1200

    You start with $1000 in your trading account and after 1 month of trading you gain 200 pips profit trading .1 lots. You now have $1200 in your trading account. You are now at the next level. If your account balance falls below $1200 then you will go back to trading .1 lots.

    Month 2: $1200 + (200 pips x .2 lots = $400) Total: $1600

    You now start month two with $1200 and gain 200 pips profit trading .2 lots. You now have $1600 in your trading account. You are now on the next level. If your account falls below $1600 then you will go back to trading .2 lots.

    Month 3: $1600 + (200 pips x .3 lots = $600) Total: $2200

    You now start month three with $1600 and gain 200 pips profit trading .3 lots. You now have $2200 in your trading account. You are now on the next level. If your account falls below $2200 then you will go back to trading .3 lots.

    Month 4: $2200 + (200 pips x .4 lots = $800) Total: $3000 You now start month four with $2200 and gain 200 pips profit trading .4 lots. You now have $3000 in your trading account. You are now on the next level. If your account falls below $3000 then you will go back to trading .4 lots.

    Month 5: $3000 + (200 pips x .5 lots = $1000) Total: $4000

    You now start month four with $3000 and gain 200 pips profit trading .5 lots. You now have $4000 in your trading account. You are now on the next level. If your account falls below $4000 then you will go back to trading .5 lots.

    RESULTS:

    Month 6: $4000 + (200 pips x .6 lots = $1200) Total: $5200
    Month 7: $5200 + (200 pips x .7 lots = $1400) Total: $6600
    Month 8: $6600 + (200 pips x .8 lots = $1600) Total: $8200
    Month 9: $8200 + (200 pips x .9 lots = $1800) Total: $10000
    Month 10:$10,000 + (200 pips x 1 lot = $2000) Total: $12000

    Notice that gaining an average of 10 pips a day, along with fixed ratio money management helps your equity grow asymmetrically. Your $1000 turned into $12,000 in 10 months!

    Notice that your trading system doesn't have to always hit a home run, you simply need to average 10 pips/day in this example.

    If you wanted to be more conservative than the above example, you could simply add more pips profit in the formula. For example you could only increase number of lots traded after gaining 400 pips instead of 200 pips like in my example. This would mean slower growth. Try setting up a fixed ratio money management plan before you start your next live trade! The Top One Percent Sell with Precision
    The Best Salespeople, the Top 1%, utilize a precise, highly organized sales process that leaves very little to chance. Each step of the sales process increases the probability of successfully closing the sale.Here’s the dictionary definition of PROCESS: A uniform series of actions designed to produce a specific outcome. In High Probability Selling, the ultimate ‘specific outcome’ is to close the sale; the ‘series of actions’ are the linear steps of the sale

    pips/day for 20 trading days in a month average).

    3. Now start trading .1 mini lots (which is profit/loss 1 USD). You would only increase to .2 lots after gaining 200 pips. When you gain 200 more pips profit you would trade .3 lots etc...

    4.Here is an example of how fixed ratio trading would work:

    Month 1: $1000 + (200 pips x .1 lot = $200 ) Total: $1200

    You start with $1000 in your trading account and after 1 month of trading you gain 200 pips profit trading .1 lots. You now have $1200 in your trading account. You are now at the next level. If your account balance falls below $1200 then you will go back to trading .1 lots.

    Month 2: $1200 + (200 pips x .2 lots = $400) Total: $1600

    You now start month two with $1200 and gain 200 pips profit trading .2 lots. You now have $1600 in your trading account. You are now on the next level. If your account falls below $1600 then you will go back to trading .2 lots.

    Month 3: $1600 + (200 pips x .3 lots = $600) Total: $2200

    You now start month three with $1600 and gain 200 pips profit trading .3 lots. You now have $2200 in your trading account. You are now on the next level. If your account falls below $2200 then you will go back to trading .3 lots.

    Month 4: $2200 + (200 pips x .4 lots = $800) Total: $3000 You now start month four with $2200 and gain 200 pips profit trading .4 lots. You now have $3000 in your trading account. You are now on the next level. If your account falls below $3000 then you will go back to trading .4 lots.

    Month 5: $3000 + (200 pips x .5 lots = $1000) Total: $4000

    You now start month four with $3000 and gain 200 pips profit trading .5 lots. You now have $4000 in your trading account. You are now on the next level. If your account falls below $4000 then you will go back to trading .5 lots.

    RESULTS:

    Month 6: $4000 + (200 pips x .6 lots = $1200) Total: $5200
    Month 7: $5200 + (200 pips x .7 lots = $1400) Total: $6600
    Month 8: $6600 + (200 pips x .8 lots = $1600) Total: $8200
    Month 9: $8200 + (200 pips x .9 lots = $1800) Total: $10000
    Month 10:$10,000 + (200 pips x 1 lot = $2000) Total: $12000

    Notice that gaining an average of 10 pips a day, along with fixed ratio money management helps your equity grow asymmetrically. Your $1000 turned into $12,000 in 10 months!

    Notice that your trading system doesn't have to always hit a home run, you simply need to average 10 pips/day in this example.

    If you wanted to be more conservative than the above example, you could simply add more pips profit in the formula. For example you could only increase number of lots traded after gaining 400 pips instead of 200 pips like in my example. This would mean slower growth. Try setting up a fixed ratio money management plan before you start your next live trade!<

    Online Forum Debates
    When online in a forum you will notice that some folks just want to argue over semantics, as they take something written out of context and then attack a particular sentence or idea. Often they do this on something, which in fact is irrelevant to the topic of discussion. Suddenly you find yourself trying to defend some off subject issue. As a matter of fact believe it or not some governments pay people to promote misdirection this way to hide their deeds and often
    1600

    You now start month two with $1200 and gain 200 pips profit trading .2 lots. You now have $1600 in your trading account. You are now on the next level. If your account falls below $1600 then you will go back to trading .2 lots.

    Month 3: $1600 + (200 pips x .3 lots = $600) Total: $2200

    You now start month three with $1600 and gain 200 pips profit trading .3 lots. You now have $2200 in your trading account. You are now on the next level. If your account falls below $2200 then you will go back to trading .3 lots.

    Month 4: $2200 + (200 pips x .4 lots = $800) Total: $3000 You now start month four with $2200 and gain 200 pips profit trading .4 lots. You now have $3000 in your trading account. You are now on the next level. If your account falls below $3000 then you will go back to trading .4 lots.

    Month 5: $3000 + (200 pips x .5 lots = $1000) Total: $4000

    You now start month four with $3000 and gain 200 pips profit trading .5 lots. You now have $4000 in your trading account. You are now on the next level. If your account falls below $4000 then you will go back to trading .5 lots.

    RESULTS:

    Month 6: $4000 + (200 pips x .6 lots = $1200) Total: $5200
    Month 7: $5200 + (200 pips x .7 lots = $1400) Total: $6600
    Month 8: $6600 + (200 pips x .8 lots = $1600) Total: $8200
    Month 9: $8200 + (200 pips x .9 lots = $1800) Total: $10000
    Month 10:$10,000 + (200 pips x 1 lot = $2000) Total: $12000

    Notice that gaining an average of 10 pips a day, along with fixed ratio money management helps your equity grow asymmetrically. Your $1000 turned into $12,000 in 10 months!

    Notice that your trading system doesn't have to always hit a home run, you simply need to average 10 pips/day in this example.

    If you wanted to be more conservative than the above example, you could simply add more pips profit in the formula. For example you could only increase number of lots traded after gaining 400 pips instead of 200 pips like in my example. This would mean slower growth. Try setting up a fixed ratio money management plan before you start your next live trade!<

    How To Get An Extra 108,160 Hits A Year
    Most of you have seen those little award graphics on web sites. They are given to the web site by another web site or award association to reward the web site for a specific reason. They usually link right to the site that has given the award.These award sites are drawing tons of traffic to their own web site. The reason is because all the web sites who get the awards are linking right back to them by posting the award on their web site.What i
    account. You are now on the next level. If your account falls below $3000 then you will go back to trading .4 lots.

    Month 5: $3000 + (200 pips x .5 lots = $1000) Total: $4000

    You now start month four with $3000 and gain 200 pips profit trading .5 lots. You now have $4000 in your trading account. You are now on the next level. If your account falls below $4000 then you will go back to trading .5 lots.

    RESULTS:

    Month 6: $4000 + (200 pips x .6 lots = $1200) Total: $5200
    Month 7: $5200 + (200 pips x .7 lots = $1400) Total: $6600
    Month 8: $6600 + (200 pips x .8 lots = $1600) Total: $8200
    Month 9: $8200 + (200 pips x .9 lots = $1800) Total: $10000
    Month 10:$10,000 + (200 pips x 1 lot = $2000) Total: $12000

    Notice that gaining an average of 10 pips a day, along with fixed ratio money management helps your equity grow asymmetrically. Your $1000 turned into $12,000 in 10 months!

    Notice that your trading system doesn't have to always hit a home run, you simply need to average 10 pips/day in this example.

    If you wanted to be more conservative than the above example, you could simply add more pips profit in the formula. For example you could only increase number of lots traded after gaining 400 pips instead of 200 pips like in my example. This would mean slower growth. Try setting up a fixed ratio money management plan before you start your next live trade!<

    5 Things to Know Before You Apply for a Balance Transfer Credit Card
    Are you swamped with too many credit cards with outstanding payment in each? One of the things you can do to solve this problem is to get a Balance Transfer Credit Card. With this type of credit card, you can practically consolidate all your outstanding balances into one card and obtain a 0% APR for the introductory period. Just like other credit tools, you should analyze the attributes of a Balance Transfer Credit Card before applying for one.1. Reduce you
    00 pips x 1 lot = $2000) Total: $12000

    Notice that gaining an average of 10 pips a day, along with fixed ratio money management helps your equity grow asymmetrically. Your $1000 turned into $12,000 in 10 months!

    Notice that your trading system doesn't have to always hit a home run, you simply need to average 10 pips/day in this example.

    If you wanted to be more conservative than the above example, you could simply add more pips profit in the formula. For example you could only increase number of lots traded after gaining 400 pips instead of 200 pips like in my example. This would mean slower growth. Try setting up a fixed ratio money management plan before you start your next live trade!

    This unique approach to day trading the EUR/USD involves using financial Fractals and no other technical indicators, as outlined in the Euro Fractal Trading System.

    HTTP = HTML link (for blogs, profiles,phorums):
    <a href="http://www.otheradded.com/article/95932/otheradded-Fixed-Ratio-Money-Management.html">'Fixed Ratio' Money Management</a>

    BB link (for phorums):
    [url=http://www.otheradded.com/article/95932/otheradded-Fixed-Ratio-Money-Management.html]'Fixed Ratio' Money Management[/url]

    Related Articles:

    Small Business Marketing Tip - Get Attention and Be Remembered

    Is the Small Stuff getting to You?

    The Basics of Link Building

    Bookmark it: del.icio.us digg.com reddit.com netvouz.com google.com yahoo.com technorati.com furl.net bloglines.com socialdust.com ma.gnolia.com newsvine.com slashdot.org simpy.com shadows.com blinklist.com