Rob Booker’s Strategy:10

After Rob Booker’s Strategy:10 Trading "system", I realize just how hard it is to make money trading Forex.  My goal is to do this full time and as my only source of income.  If you don’t know who Rob is, read about him here.

The Strategy:10 Trading system relies on the following:

1. Technical analysis - a ½ hour, 3 hour, daily, weekly, and monthly chart.
2. STOPS and LIMITS.
3. 10-pip goal every day. This requires DISCIPLINE. 

Let’s examine #3.  The goal is just 10 pips a day.  If you trade 17 days a month, or 204 days a year, that would give you a profit of 2040 pips.  This is with the understanding that you might lose on any given day but let’s just say for this discussion, you manage to "average" 10 pips a day.  If you trade using the Standard 100K account, each pip will net you $10.  That’s only $100 a day and only $20,400 a year.  In my part of the country, that ain’t a lot of money.  Rob assumes that you will trade a 1,000,000 account, where each pip will net you $100 or you could trade 10 lots using your 100K account.  If you trade 1,000,000 and manage to profit 10 pips a day, that’s about $1000 a day and about $204,000 a year.  Now I can live on this.

So if I really want to trade full-time using the standard 100K account, each year I need to make at least $750 a day or about 75 pips a day.  That’s $150,000 a year and over 15,000 pips a year.  That seems pretty damn hard.

If I’m wrong here with my logic, let me know but it seems difficult to make 75 pips a day average.  

Read Rob’s strategy below from his 1 on 1 training and digest this.  I have to say that I never really did the calculations and realizing that I have to profit 15000 pips a year makes me think it isn’t possible for me to do this full-time.  Someone please tell me I’m wrong.

"I don’t try to make a ton of money on each trade, and I never try to get revenge. I’m not a scalper (someone who sits and makes 20-second trades for a few pips at a time).

Instead, I set up good trades, that have a lot of potential, and then I shoot for 10 pips. Just 10 pips. That’s it. I don’t let myself lose a lot of money. I only try to get 10 pips, and if that’s all I get, then I’m out for the day. It’s easy enough to get 10 pips that once that threshold is met, it’s okay to get out. When you know that you can turn turn $10,000 into $130,000 in one year on 10 pips a day, it’s no longer important to strike back at the market or get greedy on one day of trading.

And you can learn to turn $10,000 into $130,000 in one year on just 10 pips a day.

Why is this innovative, different, or revolutionary? Because you are going to not only take money from novices with this strategy, you’re going to take money from other advanced traders. Advanced traders want big money. They didn’t spend years learning to trade so that they could make $200 a day. They want big, big returns. They go for 40 pips at a minimum. They are conservative with their trading capital because the market can take BIG swings against them when they’re waiting for 40 pips. Advanced traders think I’m nuts for getting out of a trade at 10 pips. What if it goes to 40 pips? Won’t I be upset that I missed out?

Not at all. I’ll show you later how I can still make those 40 pips. But I’m never displeased with 10. First, though, I’ll explain stops and limits.

Stops and Limits
A STOP is placed so that you don’t lose too much money. For example, if I bought EUR/USD at 1.1445, I would start losing money if it started moving down. So, I might set a STOP at 1.1425 — meaning, if the currency drops to that level, the system AUTOMATICALLY exits the trade. I’m out 20 pips, but that’s a lot better than being out 40 pips if it starts tanking really fast (and this happens all the time, as you have seen).

A LIMIT works the same way, only for gains. If I set my limit to 1.1535 on that same trade, then later in the day (or the hour), when the currency moves up to 1.1535, the system AUTOMATICALLY exits the trade, and I make money. This happens whether I’m still at the computer, or down the street, or dead. THIS IS THE ONLY WAY TO TRADE IF YOU’RE NOT GOING TO BE PRESENT TO WATCH THE TRADE.

My system for trading relies heavily on three things:
1. Technical analysis - a ½ hour, 3 hour, daily, weekly, and monthly chart.
2. STOPS and LIMITS.
3. 10-pip goal every day. This requires DISCIPLINE.

If you started with $10,000 on January 1st, and earned 10 pips per day, and only traded 17 days of the month, then you would end the year 2,000 pips UP, and with about $130,000. For a spreadsheet that details this system, write me at rob@robbooker.com.

If you continued the next year with 10-pips per day, the next year you would be making between $10,000 and $17,000 per month trading (depending on your risk tolerance). Can you do this? Absolutely. Can you do this today? Maybe, maybe not. You have to dedicate yourself 100% to learning how to trade intelligently."

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