What are The Essential Ingredients
of an Effective Trading Tool Kit


When people are looking for a Complete Trading System sometimes they are mislead into believing that for a system to be any good it needs to be complicated, in fact nothing could be further from the truth. Most of the very good systems use the KISS principle, Keep It Super Simple, and that is what I am going to show you here.

So what do you look for and what makes up an effective trading tool Kit? The answer is very simple.

A complete system is designed to encompass all aspects in a way for you to consistently make money a system that keeps your account in the black.

So what are they Essential Ingredients of an Effective Trading tool Kit?

To start trading you need 3 key ingredients

  1. You
  2. A reliable Broker.  
  3. A Plan. 
Let’s start with YOU because you are the wild card in the equation. We need to look at two areas:

  1. You must have a good understanding of your personal tolerance to risk. How curious or Aggressive are you when it comes to gambling with your hard earned money? Second is your ability to learn to follow simple instruction almost mechanically.

  2. How much Money have you got to start with? Make sure you can afford to lose this money without adversely affecting your present lifestyle. Trading Foreign Currency with high leveraged accounts carries great risk of losing part or all of your account balance. Never Trade with borrowed money.

  3. If you need to borrow money to trade click on this Link

Next The Broker:

  1. For you personally to start this plan all you will need is a Demo account. Any Broker will do, the broker of choice here is FXPRO.com because they offer an unlimited Demo time and a Metatrader4 Platform. Most others limit you to 30 or 90 days. If you don’t mind doing this open a demo with Aplari UK Metatrader4.

  2. Live Trading will depend on how much money you have to start with. Remember you do not have to stay with one broker, in fact I suggest working your way up to have three brokerage accounts and keeping a low margin in any one account to start with. With an account like FXPRO.com you fund this easily will Credit card or Paypal. And get yourself a discount on the pip spread by signing up through Forexcashback.com in the Help Page, every penny counts in the beginning.
The Plan:

Emotional trading is the number one killer of all brokerage account. The two most destructive emotions are Fear of losing, a trader’s inability or hesitation to enter a trade, missing the trigger and the Greed of Winning, a trader holds on to the trade, has an inability or hesitation to exit the trade, running your loses. We are all human beings who have imagination, feelings, emotions, desires, hopes, dreams, and fears.
The simplest way to overcome these emotions is to have a Plan.
Plan your Trades and Trade your plan.

The plan needs to be both simple but diverse to cover all aspects of trading without over complicating the system (KISS, Keep It Super Simple), Have an overall plan broken down into different strategies to take in to consideration the 3 main areas:

  1. Money Management
  2. Goal setting
  3. Trading systems
Money Management is the Holy Grail of all trading systems. These are the laws that you set and never break. The moment you do break them you let in the emotions and let go of the money.

Never Break these Laws when Manual Trading these will serve you well:

  • Law No.1 - Only ever Trade 1 lot per trade
  • Law No.2 - Never risk more than 20% of your total account allotment at one time
  • Law No.3 - Always trade with stops(SL) and limits (LS).
  • Law No.4 - Use trailing stops (TS) on Positions and Day trades.
If your account size is $5000 mini account then your lot size would equal $10 and 20% of your account would equal $1000. Your open trades at any one time would look like this:

1 lot = $10 SL@ 20pips risk $200 therefore you can have a max 5 open trades
1 lot = $10 SL@ 30 pips = 3 open trades

Exceptions:

If at any time your trailing stop passes the trade enter point that trade then becomes a profit trade and is not considered as part of the above formula. For example a long term position trade starting with a 50pip SL with TS set 70pips triggers to the level 20pips above enter point that is now in profit. You can now look for new trades.

Setting goals: I am not going into any detail here except to say without defined Goals you have no direction you drift like a ship without a rudder. Set long term 1 year goals midterm monthly goals and daily gaols. These are personal and if you need help with set goals then get a copy of my “Practical Guide to Building Credit Part1 Clearing Debt”.

Trading System: Forexcalculatoronline.com has developed a trading system that will take you from complete beginner to seasoned trader. It will first teach you how to read the market and control your emotions and give you a plan that will allow you to make consistent gains. Once you have mastered these disciplines and techniques, we will take you through a step by step procedure of becoming a fully independent trader with your own software package, brokerage accounts and Strategies that will allow you to trade in any market condition.

This trading system is available to Registered Members of ForexCalculatorOnline.com

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