“Compound interest is the eighth Wonder of the World. He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein

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Starting Account
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Trades a Day
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Winning Percentage

The Rules

  1. What size “Starting Account” must I have?  
    This must be an amount you are potentially prepared to lose. Nothing in trading is guaranteed. Huge, unforeseen economic events can play havoc on otherwise stable markets. You must always have a plan B, and that almost always involves having plenty of spare capital.
  2. How can I do “10 trades a day”?
    This depends on the time frame you are trading. If you are trading Daily/4H charts then you can watch many more markets as you have hours to make your trading decisions. With 1000’s of stocks, commodities and currencies it is not hard to find 10 good trades a day. If you are trading intra-day then it becomes much easier as ONE currency pair on the 5 min time frame can offer as much as 20 trades a day.
  3. How do I achieve a “60% winning percentage”?
    Every trade you place will either become a winner, or a loser. This is because you have a fixed stop and target (based on market conditions) usually at a 1:1 risk to reward because this keeps risk management simple and removes the psychological element of moving stops and targets around. Once you have learnt the proper technique you will able to enter the market knowing you have a 60% chance that your trade will be a winner. However always have respect for the 40% of trades that will loose.
  4. What other things are included in this calculation?
    * That you only risk 1% of your account: Yes that right, £15 of your £1500 is all that you risk on your first trade. At the end of every month as your account increases, you increase the size of your trades to reflect 1% of your account (so £20 when you have £2000).
    * That you always use stops: These are your insurance, both physically and psychologically. They limit your loss on any one trade to the maximum of 1%.
    * That you have a low cost and reliable broker like LMAX: All of the calculations are based on paying the equivalent of 1 pip cost per trade (spread + commission + slippage). Major currencies normally have under 1 pip costs during normal trading hours.
    * That you work hard: There are 21 working days in the average month (mon-fri) and you must make the most of them to succeed. Taking a large sample of trades statistically improves the likelihood that you will have a positive month with a 60% win rate.

Please read the disclaimer at the very bottom of the website to understand the risks.