Forex-fxtrader

Hi, Exciting news re the $1.000.000 forex challenge to turn $2000 into a million in just 2 years. Also updates of some of the incredible results that even new traders have achieved in their 1st week with the LMT system (500/600 & even 700+ pip gains).

Firstly to the $1.000.000 challenge. I have been so busy making pips that I really haven't had the time to get started. However my 15 year old daughter is looking for a summer job. I have been swamped with emails & administrative stuff since I started the blog, so being the genius that I am I said that I will employ here to do all of the behind the scenes stuff.

Charlotte who is far more brilliant, says "o.k dad, but as you are too busy to do the challenge, why don't I run it".  So an idea was born.

Here in Spain the kids get 13 weeks summer holiday (english parents moan about how long 6 weeks is, you don't know the half of it) ! Charlotte will be free to lead the challenge from the 23rd june. We have been trading a live account together for the last month (obviously in my name for legal reasons). We are currently 30% up with the account making small, well managed trades. So we might have more than $2000 by the time the challenge starts. We have been using the lmt system this week and grew the account 9%.

Imagine what 9% a week would do to your wealth.

What will be great about this is that it will help those of you who are struggling to trade because you are always taking too big a risk and trying to get rich quick. I have had so many emails from people who have blown $10.000 on forex (and one gentleman who claims to have lost $50.000). This is ridiculous guys. I know I keep banging on about this but all you need to earn is 15 pips a day/300 pips per month to get rich at forex.

The following example is based on taking $1000 to a million over 26 months.

In truth the stakes & winnings in the 1st few months would be so small that I would be bored rigid. So we will start with $2000 to make it a little more interesting & quicker. But to simplify the maths: If you have $1000 in the bank at the moment you might be able to earn $20 interest for the year ! You can make 5 x that in a week trading forex sensibly.

What if we could successfully make just 15 pips/$15 a day in forex & reinvest the profits? This is risking only 5%* of your bank per trade with a 50 pip stop. Therefore maximum you can lose is $50 on a trade (we look for far bigger profits on a trade so this is way below worst case scenario. Also I have been averaging over 50 pips a day in the last 12 months)


Day 1     1000
Day 2     1015
Day 7     1105*


*By day 8 our daily stake has increased to $1.10 per pip = $16.50. We are now gaining $1.10 per pip. By the end of the 1st month we would be looking at an account balance of approx
Day 20     1330**

**Month 2's (20 trading days) stake will be $1.33 per pip & so on.

This is 33% return in 1 month. This is what attracts the big boys to forex. If you carry the sum forward, the 1st 6/8 months show steady rapid growth. Then compounding kicks in & the growth is phenomenal. If you can maintain 15 pips a day for 3 years your reward is multi millions.

Lets say we carry on with the chart, but only increase our stake at the end of the month. Therefore month 2 our 15 pips a day x 1.33 x 20 (trading days a month) =

End Month 2     $1729
End month 3     $2245
End Month 4     $2918
End Month 5     $3791
End month 6     $4928
End Month 12     $31.418
End month 24     $727.628

End Month 26 $1.229 Million. Then it starts to get really scary !!!!

The danger with the LMT: is because the results have been nothing short of phenomenal this week, some of you are going to feel disappointed when there are slow weeks and you "only earn 100 pips". Heaven forbid, we will have losing weeks, but it happens all the time in forex.
Get over it ! You can get rich at forex if you take it SLOWLY. And control your risk.

What we need to do is see the plan through the eyes of a teenager. Charlotte can work in a cafe for the summer & earn $40 for an 8 hour day. Trading a $2000 account to gain 15 pips a day will give her approximately the same amount. To you and I $30 a day doesn't seem worth it, but look at the sums. The mathematics are a FACT. The problem is controlling our emotions and getting rid of this get "rich in a month" mentality.

To make the challenge easier we are going to use wherever possible the LMT forex formula. The results from this have been nothing short of astounding for these 1st few weeks. These are just a few of the comments from members who decided to give it a try

jaimesierra June 5, 2009 at 2:33 am

Reporting target reached on USDCHF signal at 9:00pm ES.(gmt+2). So far this system worth the investment . this week over 750 pips between winners and losers.

Anthony June 2, 2009 at 8:34 pm

Placed my first trades based on LMT signals 9 hours ago currently +450 pips on AUD, USD and GBP/USD. I know these pair correlate but since its on demo i went ahead anyways.

Mark T

BTW - The LMT is working great for me this week so far. I have the following trades open: a EUR/AUD short (+425pips), a GBP/JPY long (also +425pips), and an AUD/JPY long (+206pips).

Mark June 1, 2009 at 9:52 am

Bought LMT 12 hrs ago and it has already more than paid for itself - many thanks Marc for doing the research on this. Cheers, Mark L.  Vancouver, BC


The best thing about the LMT, apart from the results, is that we only need to be at the computer every 4 hours. (Summer is here in the Canary Islands and the beach is calling) !

Happy & successful trading to you all, have a great week-end,

Regards,
Marc (& Charlotte) !

P.S I will post trade examples, (both LMT and a few great 4 hour break out trades I took this week) on the blog on sunday).