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    1 Trading Concepts, Inc.www.TradingConceptsInc.com

    FOR X FOR PROFITS

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    2 Trading Concepts, Inc.www.TradingConceptsInc.com

    FOR X FOR PROFITS

    Quick IntroductionThis is for all of YOU dedicated and hard-working traders who aspire to become truly consistently profitablein your trading!

    I (Todd Mitchell) would like to give you this special trading gift today as a way of sayingTHANK YOU for listening and

    watching to my video trading series.

    This is a PDF file of everything that I have taught you over the course of the last few weeks, all combined into one printabledocument for you to print out and learn from easily.

    I truly hope you enjoy it!

    Todd

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    Hello, as you know, my name is Todd Mitchell from Trading Concepts(www.TradingConceptsInc.com

    ), and I would like to take this

    opportunity toTHANK YOUfor watching my trading video series over the last few weeks. I also would like to thank thoseof you that attended my live trading webinar; I truly appreciate it! I hope that youve not only enjoyed the trading videos, but

    also learned a lot from them as well. I enjoyed putting all this trading information together for you.

    My sincere intent is not only to help educate you in the way that I personally trade the markets, but also to show you a different

    way to interpret the markets for your own trading success. I urge you to take the trading strategies Ive given you (here in this

    PDF document and in the videos you currently have) and use them in your own trading, because I know in my heart of hearts

    that these trading strategies will help you become a better and more consistently profitabletrader!

    And its perfectly alright (absolutely no hard feelings whatsoever) that you were not able to take advantage of my new FOREX

    FOR PROFITS 2.0 Mentoring Program. Who knows, maybe when I open enrollment back up in the latter part of 2012, youll be

    in a better place to get started.

    Once again,THANK YOUfor taking your valuabletime to watch my video trading series over the last few weeks, and I hope

    this PDF document helps you even more in your trading success.

    Bye for now, and until next time, have a profitable day!

    Yours in trading success,

    Todd itchell

    Todd Mitchell

    www.TradingConceptsInc.com

    (800) 664-3343 / (248) 593-5851 3 Trading Concepts, Inc.

    FOR X FOR PROFITS

    http://www.tradingconceptsinc.com/http://www.tradingconceptsinc.com/http://www.tradingconceptsinc.com/http://www.tradingconceptsinc.com/
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    Table of Contents

    The Truth About FOREXTrends... 5

    3 Powerful FOREX Price Patterns. 23

    Money Management & Position Sizing.. 45

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    The TruthAbout FOREX Trends

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    The Core Price Structure and Rhythm of ALL Markets!

    To Successfully Trade the FOREX MarketsYou need to understand the Underlying Movements and Rhythm of the Markets!

    The following Principles form the Cornerstone of a Consistent and Successful

    Trading Methodology. There is only one major Market Cycle (or movement) in

    existence. The FOREX Market can do nothing else but comply with this one basic

    Market Cycle, we call it

    The Market Flow Analysis Method (Pure PRICE ACTION)

    There is no other Movement or Motion possible in the FOREX Markets.

    The FOREX Markets do NOT move in a Random fashion.

    The FOREX MarketsALWAYS move within the framework of an Underlying

    Market Wave. Otherwise, known as a TREND, whether it be Up, Down, or

    Sideways.

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    Three Primary Waves (TRENDS) in the FOREX Markets!

    There are only Three (3) Primary Waves (TRENDS) in the FOREX Markets:

    1) UP TrendA Series of Higher Highs and Higher Lows

    2) DOWN TrendA Series of Lower Highs and Lower Lows

    3) SIDEWAYS TrendA Series of relatively Equal Highs and Equal Lows

    Identifying which Wave or TREND the FOREX Market is in is vital to Successful

    Trading.

    The Market Flow Analysis Method (MFAM) is based upon: the Upside Penetration of market HIGHS, and

    the Downside Penetration of market LOWS.

    New Highs and New Lows are continuously being formed in the Markets. Therefore, Tradersmust identify these important levels to help in mapping out what the Markets are most likely

    going to do next.

    This will help you in identifying if a market is TRENDING UP, TRENDING DOWN, or

    TRENDING SIDEWAYS, at the Early Stages of the Trend and not after the fact.

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    The UP Trend Market Flow Process

    A series of New Highs (NHs) and Active Lows (ALs)

    LOW(Lowest LOW)

    AL(Active Low)

    AL

    AL

    MRAL(Most Recent Active Low)

    HIGH

    NH

    NH

    NH

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    The DOWN Trend Market Flow Process

    A series of New Lows (NLs) and Active Highs (AHs)

    HIGH

    NL

    NL

    LOW MRAH

    AH

    AH

    AH

    NL

    (Most Recent Active High)

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    The SIDEWAYS Market

    A series of relatively Equal Highs and Equal Lows

    HIGH

    LOW

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    MRAL

    An UP Trend Reversing Into A DOWN Trend

    Downside Penetration of the Most Recent Active Low (MRAL) in the MFAM

    AL

    NH

    NH

    HHAH

    (Most Recent Active Low)

    Simply being able to identify critical Lows in an UPTREND will enable you to stay

    in a Trend longer and you will know with High Probability at what levels the Market

    is most likely going to change directions.

    NL

    The UP Trend is potentially Reversing into aDOWN Trend at the Downside Penetration of the MRAL

    AL

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    LL

    A DOWN Trend Reversing Into An UP Trend

    Upside Penetration of the Most Recent Active High (MRAH) in the MFAM

    NL

    MRAH

    AH

    AH

    NH(Most Recent Active High)

    Simply being able to identify critical Highs in a DOWNTREND will enable you to

    stay in a Trend longer and you will know with High Probability at what levels the

    Market is most likely going to change directions.

    AL

    The DOWN Trend is potentially Reversing into an UP

    Trend at the Upside Penetration of the MRAH

    NL

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    3 Powerful

    FOREX

    Price Patterns

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    To Interpret what the OPEN, HIGH, LOW, and CLOSEdid on a Particular

    Bar and compare that criteria to the Previous Price Bars Action, in order tomake Intelligent Conclusions about the FOREX Markets.

    BAR CHARTS (Vertical Bars) or CANDLESTICKS

    RANGE: Confirms Momentum

    CLOSE: Confirms Price Action

    PRICEACTION ANALYSIS helps a Trader

    Identify insight into what the Market is likely going to do next.

    Price Action Analysis

    CLOSE

    OPEN

    CLOSE

    OPEN

    OPEN

    CLOSE

    OPEN

    CLOSE

    RAN

    GE

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    3 Powerful BULLISHPrice Patterns

    @ Logical SUPPORT LEVELS in an Established UP Trend

    BUOVB IVB(Bullish OVB) BUBOB

    (Bullish Blow-Off Bar)

    Bullish Engulfing Bullish Harami

    Hammer

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    3 Powerful BEARISHPrice Patterns

    @ Logical RESISTANCE LEVELS in an Established DOWN Trend

    (Bearish Blow-Off Bar)

    BEBOB

    (Bearish OVB)

    BEOVB IVB

    Shooting Star

    Bearish Engulfing Bearish Harami

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    Bullish Outside Vertical Bar (BUOVB)

    BullishOutside Vertical Bar (BUOVB) / BullishEngulfing The HIGH and LOW must exceed the Prior Bars HIGH and LOW andthe CLOSE must close in Top

    Quarter of the Bars Range

    ONLY USED at Logical SUPPORT in an established UP Trend

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(1X Range of BUOVB)

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(1X Range of Engulfing Candle)

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    Bearish Outside Vertical Bar (BEOVB)

    BearishOutside Vertical Bar (BEOVB) / BearishEngulfing The LOW and HIGH must exceed the Prior Bars LOW andHIGH and the CLOSE must close in

    Bottom Quarter of the Bars Range

    ONLY USED at Logical RESISTANCEin an established DOWN Trend

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE

    (1X Range of BEOVB)

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE

    (1X Range of Engulfing Candle)

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    Inside Vertical Bar (IVB)

    IVB @ Logical SUPPORTin an established UP Trend The HIGH and the LOW both must be Inside the Previous Bars Range (the HIGH is Lower than the

    Previous Bars HIGH and the LOW is Higher than the Previous Bars LOW)

    ONLY USED at Logical SUPPORTin an established UP Trend It does NOT MATTERwhere the Bar Closes

    Inside Vertical Bar (IVB) / BullishHarami

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(2X Range of IVB)

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(2X Range of IVB)

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    Inside Vertical Bar (IVB)

    IVB @ Logical RESISTANCEin an established DOWN Trend The HIGH and the LOW both must be Inside the Previous Bars Range (the HIGH is Lower than the

    Previous Bars HIGH and the LOW is Higher than the Previous Bars LOW)

    ONLY USED at Logical RESISTANCEin an established DOWN Trend It does NOT MATTERwhere the Bar Closes

    Inside Vertical Bar (IVB) / Bearish Harami

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(2X Range of IVB)

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(2X Range of IVB)

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    Blow-Off Bar (BOB)

    BullishBlow-Off Bar (BUBOB) / Hammer The OPEN and CLOSE must be in the Top Quarter of the Bars Range andthe LOW of the Bar exceeds

    the Prior Bars LOW with the Blow-Off Bars Range about 125% Larger than the Prior 3 to 5 Bars ONLY USED at Logical SUPPORTin an established UP Trend

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(1X Range of BUBOB)

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(1X Range of BUBOB)

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    l Off ( O )

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    Blow-Off Bar (BOB)

    BearishBlow-Off Bar (BEBOB) / Shooting Star The OPEN and CLOSE must be in the Bottom Quarter of the Bars Range andthe HIGH of the Bar

    exceeds the Prior Bars HIGH with the Blow-Off Bars Range about 125% Larger than the Prior 3 to 5 Bars ONLY USED at Logical RESISTANCEin an established DOWN Trend

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(1X Range of BEBOB)

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(1X Range of BEBOB)

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    Th BUY OVB (O id i l ) S

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    The BUY OVB (Outside Vertical Bar) StrategyAn Entry based on the Creation of an OVB

    Criteria:

    The Market MUST:1. Be Trading at Logical SUPPORTin an established UP Trend2. Penetrate Down thru the Previous Bars LOW First

    3. Reverse to the Upside off of the Current Bars LOW and Penetrate Up thru the

    Previous Bars HIGH thereby creating a BUOVB

    BUY the Market when the HIGH of the Previous Bar is Penetrated to the Upside

    ISL

    BUY ENTRY

    1) LOW of Previous

    Bar Penetrated First

    3) BUY when HIGH

    of Previous Bar is

    Penetrated

    2) Market Reverses UP off the

    LOW of the Current Bar

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    Th SELL OVB (O id V i l B ) S

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    The SELL OVB (Outside Vertical Bar) StrategyAn Entry based on the Creation of an OVB

    Criteria:

    The Market MUST:1. Be Trading at Logical RESISTANCE in an established DOWN Trend2. Penetrate Up thru the Previous Bars HIGH First

    3. Reverse to the Downside off of the Current Bars HIGH and Penetrate Down thru the

    Previous Bars LOW thereby creating a BEOVB

    SELL the Market when the LOW of the Previous Bar is Penetrated to the Downside

    ISL

    SELL ENTRY

    1) HIGH of Previous

    Bar Penetrated First

    3) SELL when LOW

    of Previous Bar is

    Penetrated

    2) Market Reverses DOWN off the

    HIGH of the Current Bar

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    PROFIT OBJECTIVE 3) BUY when HIGH ofCreation

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    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(1X Range of BUOVB)

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(2X Range of IVB)

    ISL

    BUY ENTRY

    1) LOW of Previous

    Bar Penetrated First

    Previous Bar is Penetrated

    2) Market Reverses

    UP off the LOW of the

    Current Bar

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(1X Range of BUBOB)

    ISL

    BUY ENTRY

    PROFIT OBJECTIVE(3X Range of IVB)

    BUOVB

    IVB IVB

    of

    BUOVB

    BUBOB43

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    ISL ISL1) HIGH of Previous BarPenetratedFirstBEOVB

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    SELL ENTRY

    PROFIT OBJECTIVE(1X Range of BEOVB)

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(2X Range of IVB)

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(3X Range of Narrow Range IVB)

    ISL

    SELL ENTRY

    PROFIT OBJECTIVE(1X Range of BEBOB)

    SELL ENTRY

    Penetrated First

    3) SELL when LOW of

    Previous Bar is Penetrated

    2) Market Reverses DOWN

    off the HIGH of the Current

    Bar

    BEOVB

    IVB IVB

    Creation

    ofBEOVB

    BEBOB

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    Money Management

    &

    Position Sizing

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    The Most Important Aspect of any Trading Methodology

    How Much to Risk?

    Of all of the Traders that have come to me over the last 17 years, 90% of them did not

    focus on this crucial aspect of Trading: Money Management & Position Sizing!

    Many Traders believe that their Trading Methodology is flawed therefore theyre

    always looking for something new or better (searching for the Holy Grail) when

    in reality, Money Management & Position Sizing should be at the forefront of their

    Trading Methodology. For example,

    A Trader may have a great Trading Methodology with a poor (or no)

    Position Sizing Strategy and never achieve their Trading Objectives, or

    A Trader may have an average (or below) Trading Methodology with a

    great Position Sizing Strategy and reach their Trading Objectives.

    I can show you a much better than average Trading Methodology and a much

    better than average Position Sizing Strategy so you not only will easily reach your

    Trading Goals and Objectives but literally print money!

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    90% of Traders Fail WHY?

    most traders and investors have no place to go to learn what is probably the most

    important aspect of their craft. Tharp, Van K. Trade Your Way to Financial

    Freedom, 2ndEd.

    Even the so-called experts in the market or the people that the public turns to for

    financial advice receive very little to no training on position sizing many top

    professionals dont understand the most important component of investment (trading)

    success: position sizing. Tharp, Van K. Super Trader

    If you

    are trained as a broker for any major brokerage company

    become a certified financial planner (CFP)

    get an MBA from a top university with a specialty in how the markets work

    get a Ph.D. in finance from a top university

    become a certified financial analyst (CFA)

    get trained to be a professional trader for a bank of a major firm

    youll receive no training in position sizing Tharp, Van K. Trade Your Way to

    Financial Freedom, 2ndEd.

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    10% of Traders Succeed WHY?

    They understand position sizing well enough that they will continue to be in the game

    if they are wrong and make big money when they are right.Tharp, Van K. Super

    Trader

    The 10% of Successful Traders

    Understand the importance of Money Management and understand that making

    money in the markets is all about position sizing and they utilize and implement a

    position sizing strategy so that they achieve consistent results without excessive

    drawdowns over the long run.

    They have clearly determined and identified what their Trading Objectives are and

    they apply a Position Sizing Strategy to their Trading Methodology.

    If you have a good strategy, the key to meeting your objectives is your position sizing

    method. Tharp, Van K. Safe Strategies for Financial Freedom

    The Holy Grail is YOU! The Holy Grail is you assuming total responsibilityfor implementing a sound Trading Methodology with a Position Sizing Strategy that

    will allow you to achieve your Trading Objectives.

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    Position Sizing Calculator

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    The Most Critical Aspect of your Trading Plan

    Money Management represents the administrative side of your Trading Plan.

    It addresses the question of how best to use the Capital Available to you in themost Effective Manner possible with the goal of Maximizing your Profitability

    while at the same time Protecting your Capital by Minimizing the Risk of ruin.

    The True Essence of Money Management is Managing Risk

    Wise Money Management is the basis of any good Trading Methodology and

    is what ultimately will help distinguish a Consistently Successful Trader from

    the trader that consistently loses. Many Traders have fallen to the wayside

    trying to make a lot of money on a single trade, trying to hit that Home Run,

    when they would have been better off making Small (Singles and Doubles)Steady Gains. Once you start doing this (and thinking this way) you will see

    your account Consistently Starting to Grow.

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    The Subject of Money Management includes

    Consideration of the Following Factors:

    Deciding on the OPTIMUM Amount of Money to commit to any OneTrade relative to your Total Available Trading Capital.

    PROTECTING your Profits from erosion.

    Avoiding (at all costs) turning a Small Losing trade into a Huge Losing

    trade. If you keep your losses small, your profits dont have to be Home Runs to

    earn a good living.

    Knowing When and How to Increase the Size of your cash Commitment

    when the Odds are more in Your Favor (i.e. risk to reward is really tilted in your

    favor, etc.).

    Recognizing the Importance of taking some of your Winnings off the

    Table after a Winning Streak.

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    Always Know Your Exit Before You Enter

    One of the cardinal rules of Good Trading is always to have an Exit point before you

    even Enter a Trade. If you know your Initial Risk, you can express All your Results in terms of your Initial Risk.

    Most Traders, as well as many Top Professional Traders do not realize the Most

    Important, Non-Psychological component of Trading/Investing Success:

    POSITION SIZING!

    A Position Sizing Strategy

    Helps you Determine How much Equity to Risk on every Trade you take. Its purpose is to Help you meet your Objectives. You could have the worlds best Trading

    Method (for example, one that makes money 95% of the time & in which the average

    winner is twice the size of the average loser), and you still could go bankrupt if you risked

    100% on one of the losing trades. Helps you Determine How much Equity to Risk given several inputs:

    Your Trading Strategies Risk, your Personal Risk Tolerance, the kind of Returns you

    want to make, and your own Personal Definition of Ruinwhether thats bankruptcy or

    some level of equity drawdown.

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    3 C t f P iti Si i

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    3 Components of Position Sizing

    Traders

    Objectives

    PositionSizing

    Method

    Traders

    Psychology

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    3 Components of Position Sizing

    Traders Objectives: Everyone has different Objectives when they Trade You must Determine what your Personal Objectives are.

    Traders Psychology:This influences the first component (the Traders

    Objectives). What beliefs are operating under?

    What emotions come up when youre trading?

    Whats your mental state?

    A Trader with NO Objectives and NO Position Sizing (discussed next)

    Guidelines will Position Size totally by Emotions.

    Position Sizing Method: For a lot of Traders this is Intuitive in other

    words they really dont have an actual Method or particular Algorithm.

    You really need an exact Method of Position Sizing let me give you what Ipersonally use.

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    Position Sizing Model

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    Position Sizing Model

    A simple model for determining How Much involves risking a Percentage of

    your Equity on every trade. You need to know three distinct variables:

    The CPR Model for Position Sizing1. How much of your equity are you going to risk? This is your total risk, but we will

    call it cash (or C) for short. This will be the Cin our CPR formula. For example, if

    you were going to risk 2% of your equity, Cwould be 2% of your equity. If you have

    a $25,000 account, Cwould be 2% of that, or $500.

    2. How many units do we buy (that is, what is your position sizing method)? We callthis variable (P)for position sizing method. How many micros, minis or standard

    contracts do we buy?

    3. How much are you going to risk per unit that you purchase? We will call this variable

    (R), which stands for risk. For example, if youre going to buy the EURUSD at

    1.4237 and your risk is 50 pips (1.4187), then of course your risk Rin this particular

    trade is 50 pips. We will use this in our CPR Formula below.

    Use the following Formula to determine how many Contracts, Shares, or Lots to trade.

    P= C/ R

    (P) Position Sizing = (C) Total Cash at Risk / (R) Risk (# of Pips)

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    Position Sizing Model Example (P= C/ R)

    Lets say, for example, with a $100,000account balance

    Youre willing to risk 2% of your account balance ($100,000 x .02 = $2000) or C =$2000.

    You BUY the EUR/USD @ 1.4237 with a risk of 50 Pips (1.4187) or R =50 Pips.

    IF P =$2000 /50 pipsTHEN you can trade:

    @ $10.00 per Contract, $2000 /$500 ($10.00 x 50 pips) = 4 Standard FX Contracts

    @ $1.00 per Contract, $2000 /$50 ($1.00 x 50 pips)= 40 Mini FX Contracts

    @ $0.10 per Contract, $2000 /$5 ($0.10 x 50 pips) = 400 Micro FX Contracts

    Lets say, for example, with a $50,000account balance

    Youre willing to risk 2% of your account balance ($50,000 x .02 = $1000) or C =$1000.

    You BUY the EUR/USD @ 1.4237 with a risk of 50 Pips (1.4187) or R =50 Pips.

    IF P =$1000 /50 pipsTHEN you can trade:

    @ $10.00 per Contract, $1000 /$500 ($10.00 x 50 pips) = 2 Standard FX Contracts

    @ $1.00 per Contract, $1000 /$50 ($1.00 x 50 pips)= 20 Mini FX Contracts

    @ $0.10 per Contract, $1000 /$5 ($0.10 x 50 pips) = 200 Micro FX Contracts

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    Position Sizing Model Example (P= C/ R)

    Lets say, for example, with a $25,000account balance

    Youre willing to risk 2% of your account balance ($25,000 x .02 = $500) or C= $500.

    You BUY the EUR/USD @ 1.4237 with a risk of 50 Pips (1.4187) or R= 50 Pips.

    IF P =$500 /50 pipsTHEN you can trade:

    @ $10.00 per Contract, $500 /$500 ($10.00 x 50 pips) = 1 Standard FX Contracts

    @ $1.00 per Contract, $500 /$50 ($1.00 x 50 pips)= 10 Mini FX Contracts

    @ $0.10 per Contract, $500 /$5 ($0.10 x 50 pips) = 100 Micro FX Contracts

    Lets say, for example, with a $10,000account balance

    Youre willing to risk 2% of your account balance ($10,000 x .02 = $200) or C= $200.

    You BUY the EUR/USD @ 1.4237 with a risk of 50 Pips (1.4187) or R= 50 Pips.

    IF P =$200 /50 pipsTHEN you can trade:

    @ $10.00 per Contract, $200 /$500 ($10.00 x 50 pips) = NO Standard FX Contracts

    @ $1.00 per Contract, $200 /$50 ($1.00 x 50 pips)= 4 Mini FX Contracts

    @ $0.10 per Contract, $200 /$5 ($0.10 x 50 pips) = 40 Micro FX Contracts

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    Position Sizing Model Example (P= C/ R)

    Lets say, for example, with a $5,000account balance

    Youre willing to risk 2% of your account balance ($5,000 x .02 = $100) or C= $100.

    You BUY the EUR/USD @ 1.4237 with a risk of 50 Pips (1.4187) or R= 50 Pips.

    IF P = $100 /50 pipsTHEN you can trade:

    @ $10.00 per Contract, $100 /$500 ($10.00 x 50 pips) = NO Standard FX Contracts

    @ $1.00 per Contract, $100 /$50 ($1.00 x 50 pips)= 2 Mini FX Contracts

    @ $0.10 per Contract, $100 /$5 ($0.10 x 50 pips) = 20 Micro FX Contracts

    Lets say, for example, with a $2,500account balance

    Youre willing to risk 2% of your account balance ($2,500 x .02 = $50) or C= $50.

    You BUY the EUR/USD @ 1.4237 with a risk of 50 Pips (1.4187) or R= 50 Pips.

    IF P = $50 /50 pipsTHEN you can trade:

    @ $10.00 per Contract, $50 /$500 ($10.00 x 50 pips) = NO Standard FX Contracts

    @ $1.00 per Contract, $50 /$50 ($1.00 x 50 pips)= 1 Mini FX Contracts

    @ $0.10 per Contract, $50 /$5 ($0.10 x 50 pips) = 10 Micro FX Contracts

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    $2,500 Account

    2% of $2,500 = $50 Max Loss

    P = $50 / 35 PIPS

    Unable to Trade a Standard Contract,

    Trade up to 1 Mini Lot or 14 Micro Lots

    $10,000 Account

    2% of $10,000 = $200 Max LossP = $200 / 35 PIPS

    Trade up to 5 Mini Lots or 57 Micro Lots

    $25,000 Account

    2% of $25,000 = $500 Max Loss

    P = $500 / 35 PIPS

    Trade up to 1 Standard Lot or 14 Mini Lots

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    $5,000 Account

    2% of $5,000 = $100 Max Loss

    P = $100 / 22 PIPS

    Unable to Trade a Standard Contract,

    Trade up to 4 Mini Lots or 45 Micro Lots

    $15,000 Account

    2% of $15,000 = $300 Max Loss

    P = $300 / 22 PIPS

    Trade up to 1 Standard Lot or 13 Mini Lots

    $50,000 Account

    2% of $50,000 = $1000 Max Loss

    P = $1000 / 22 PIPS

    Trade up to 4 Standard Lot or 45 Mini Lots

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    $7,500 Account

    2% f $7 500 $150 M L

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    2% of $7,500 = $150 Max Loss

    P = $150 / 30 PIPS

    Unable to Trade a Standard Contract,

    Trade up to 5 Mini Lots or 50 Micro Lots

    $20,000 Account

    2% of $20,000 = $400 Max Loss

    P = $400 / 30 PIPS Trade up to 1 Standard Lot or 13 Mini Lots

    $35,000 Account

    2% of $35,000 = $700 Max Loss

    P = $700 / 30 PIPS

    Trade up to 2 Standard Lots or 23 Mini Lots

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    $25,000 Account

    2% of $25,000 = $500 Max Loss

    P = $500 / 20 PIPS

    Trade up to 2 Standard Lots or 25 Mini Lots

    $50,000 Account

    2% of $50,000 = $1000 Max Loss per Trade

    P = $1000 / 20 PIPS

    Trade up to 5 Standard Lots or 50 Mini Lots

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    Multiple Open Positions - Trade Sizing Model

    Lets say, for example, with a $10,000account balance

    Youre willing to risk 2% of your $10,000 account balance on any one trade and you have ONE

    Open Position and you are looking to put on another Position, you have to assume the FirstOpen Position may be a Losing Trade, therefore, you need to base your Position Size of the

    Second Position on and account balance of $9,800.

    FirstTrade ($10,000 x .02 = $200) or C= $200

    SecondTrade ($9,800 x .02 = $196) or C= $196

    ThirdTrade ($9,604 x .02 = $192) or C= $192

    First Position (based on Account Balance of $10,000)

    @ $1.00 per Contract, $200 /$50 ($1.00 x 50 pips) =4 Mini FX Contracts

    @ $0.10 per Contract, $200 / $5 ($0.10 x 50 pips) =40 MicroFX Contracts

    Second Position (based on account balance of $9,800)

    @ $1.00 per Contract, $196 /$50 ($1.00 x 50 pips) =3 Mini FX Contracts

    @ $0.10 per Contract, $196 /$5 ($1.00 x 50 pips) =39 Micro FX Contracts

    Third Position (based on account balance of $9,604)

    @ $1.00 per Contract, $192 /$50 ($1.00 x 50 pips) =3 MiniFX Contracts

    @ $0.10 per Contract, $192 /$5 ($1.00 x 50 pips) =38 Micro FX Contracts

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    Money Management / Trading Sizing Tips

    Have a written Trading Planthis will help you stay focused on your goal

    of trading success. In addition, it will help you learn from your mistakes and

    successes and thereby will help improve you trading abilities as time goes by.

    You should look to only take trades where there is relatively low risk

    compared to the reward potential for the trade.

    Always use well placed stop-loss ordersthis is the only way to limit any

    damage to your account and will help ensure your overall trading success. You need to be willing to short the market as much as youre willing to buy

    the market.

    Never risk more than 2% of your entire account on any one single trade.

    When you have a profitable month, pay yourself by withdrawing some

    money from your account and put it in the bank.

    Until you know your trading methodology real well, I recommend that you

    risk a maximum of 1% of your entire account equity on any one position.

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    A Quick Word on Trader Psychology

    One huge reason why successful trading can be so

    difficult to achieve is the emotions that are wrapped upin the money we trade. If in our minds we are equating

    the money on the next trade with the money needed for

    the car payment, the kids tuition money, or the

    mortgage, we are on a sure path to trading failure. If itis money we cant afford to lose, it is money we simply

    cant afford to trade. If we attach emotions to the

    money at risk, we are much more likely to commit

    trading errors, which is as bad as having a bad trading

    methodology to follow.

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    Trading Insight

    Something that has had a profound effect on my investing comes

    from Norman Vincent Peale, author of The Power of PositiveThinking

    "People become really quite remarkable when they start thinking

    that they can do things. When they believe in themselves; they have

    the first secret of success." When you feel that you can actually takecontrol of your trading and investment destiny, the empowerment

    of that control will take you to the success you are seeking.

    If you think you can...or if you think you can't...you're right.- Henry Ford

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    FOR X FOR PROFITS

    A Big THANK YOU!So, there you have it; everything that Ive shown you and taught you over the last few weeks in one quick, easy reference guide.

    This will make it much easier for you to study and learn . . . so you can start applying the material immediately in your own

    trading success!

    First, you learned The Truth About FOREX Trends,which is my famous Market Flow Analysis Method (MFAM). Once

    you fully understand what is taught here, you will be amazed at how much better a trader you will become. You will be on the

    right side of the market a majority of the time. And please remember, you can apply these same concepts in any market and

    any time frame you choose to trade!

    You then learned 4 Powerful FOREX Price Patterns, which will help you pinpoint market entries and exits like a true

    professional trader. All the crucial details are outlined for easy implementation and execution for your own trading success.

    Finally, you learned all about Money Management & Position Sizing.Without this very critical aspect as part of yourtrading plan, it would be almost impossible to make money consistently in the markets. Now, you finally have that missing par t

    of the puzzle that most traders dont learn about and use correctly.

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    FOR X FOR PROFITS

    Once again, I would like to put out a Big THANK YOUto all of you who participated in my video trading series andlive webinar! Words cannot begin to express my gratitude to all of you who posted all the wonderful comments on my blog.

    I want you to know that its my pleasure to give you these trading strategies for you to benefit in your own trading. Ive en joyed

    putting all this trading information together for youprobably a whole lot more than you enjoyed receiving it.

    If you have any questions, please dont hesitate to contact me at (800) 664-3343 or (248) 593-5851; I would love to hear from

    you. Also, be sure to visit my website, www.TradingConceptsInc.com, so that I can send you more videos, articles, trading tips, and

    tricks to help you even more in your journey to become a better and more consistently profitable trader.

    Yours in trading success,

    Todd itchell

    Todd Mitchell

    www.TradingConceptsInc.com(800) 664-3343 / (248) 593-5851

    http://www.tradingconceptsinc.com/http://www.tradingconceptsinc.com/http://www.tradingconceptsinc.com/http://www.tradingconceptsinc.com/