rapidforex.com

The Upside of Drawdown

A normal part of online forex trading is drawdown. It’s not often talked about because it isn’t “sexy,” but drawdown isn’t something you need to be afraid of.

What’s Drawdown?

Drawdown is when your trading account equity moves down in value. Forex traders want their balance to go up, so periods of declining account equity are typically feared, but they shouldn’t be because drawdown is normal.

Eliminating drawdown completely would require you to accurately & consistently pick the HIGHEST price & LOWEST price in every trend. This is almost impossible due to variation in prices, known as volatility in financial markets. Nobody on earth can accurately get the highest price & lowest price on each trend. We can get good prices, but there’s always a better price we could have got.

Close Enough for Profits

As a forex trader you can correctly guess the trend direction. If prices are likely to go up, you buy. If they are likely to go down, you sell. But once you buy/sell to open a position, it doesn’t mean prices will turn around the moment you place your order. Moments after you open your trade, a better price is often available. When this better price is available, you are experiencing DRAWDOWN…

This is ok.

Sometimes better prices are available DAYS after you opened your position, resulting in a larger drawdown. You don’t want to panic, because you still may be correct about prices going up over the longer term. You can also benefit from periods of drawdown.

Larger Profits with Drawdown?

A period of Drawdown is a windup for better profits.

Let’s look at a trade where we buy (long) 1,000 units of EUR/USD @ 1.3100. Prices expected to rise to 1.3300. Wait to 1.3300 to sell.

Look at these 3 scenarios:

Scenario #1 – No DRAWDOWN:  If prices go from 1.3100 straight up to 1.3300, we make 200 pips on this trade. This is the ideal case as we won’t experience any drawdown.

Scenario #2 – Moderate Drawdown: If prices go from 1.3100 down to 1.3000, we are at 100 pips of DRAWDOWN. This is a point where some traders get nervous, start feeling sick and start to doubt what they’re doing. But there’s also an opportunity. We could buy another 1,000 units @ 1.3000. This brings our average open price to 1.3050. Now, when the price rises to 1.3300 we make 500 pips profit! This is 250 pips per 1,000 units traded.

Scenario #3 – Severs Drawdown: If prices go from 1.3100 down to 1.2900, we are at 200 pips of DRAWDOWN. This would tempt many traders to panic, but it’s also an opportunity to increase profits. If we buy another 1,000 units @ 1.2900, we make 600 pips profit when we reach our target at 1.3300. This is 300 pips profit per 1,000 units traded!

As you can see, larger drawdown gives potential for higher profits. The key is not to confuse drawdown with trend reversal. As long as you still believe you are right about trend direction, drawdown is really just a difference in timing between you & the market…a difference that can earn you higher profits.

Avoid Drawdown Denial

There are times when you should cut your losses and prevent drawdown from wiping you out. There is a point where drawdown turns into devastation. It’s a line you need to walk carefully. It’s not something to fear, it’s something you need to understand how it fits within your trading system.

With portfolio hedging, drawdown is automatically accounted for & used to grab higher profits when the drawdown turns into a huge UPSWING!  To receive the benefits of a well planned money management system that uses drawdown as an advantage (and avoids drawdown as much as possible), check out the rapid forex hedge report today.

 

Posted in Money Management

Hedge Report Outperforms Estimates – REAL Q1 Results

Back in September I posted the results for nearly 5 years worth of portfolio hedging results just prior to launching the Hedge Report on October 15th.

On Friday, the members and I just completed our first quarter of trading live with the Hedge Report. We made 8,551 pips  OUTPERFORMING the previous HR portfolio by 2884 pips. The previous HR portfolio only made 5,667 PIPS at the end of it’s first quarter and it went on to make over 3.5 million pips in under 5 years.

Not only did I obtain these results in my REAL forex trading account, so did the members who traded the Hedge Report during this timeframe…there was some variation depending on how much members traded, but all 12 possible portfolios were profitable during the first quarter.

Hedge Report 2.0 Upgrade

After trading the initial Hedge Report for 2 1/2 months, I made a drastic improvement to the Hedge Report. I *tweaked* the algorithm allowing traders to trade with 54.91% less capital and trade up 250% more lots. This translates to banking MORE PIPS FASTER than before with LESS trading capital.

We went LIVE trading the Hedge Report 2.0 on December 29th, 2011. This was a FREE upgrade for all existing Hedge Report members.

In 2012 I will be upgrading the Hedge Report as many times as possible as it continues to improve. Upgrades will remain free for existing members.

Hedge Report Q1 Results

I’ve posted the results of ACTUAL Hedge Report performance in the chart below. These were trades that I placed in a real forex trading account. These trades were also placed by members of the Hedge Report and these were the results we got:

Note: Gains are shown in GREEN font, portfolio growth after HR 2.0 was released is shown highlighted in yellow.

What Can You Do With This?

As you can see, the Hedge Report produced a total gain of 19.77%, or 6.59% per month. That was with HR 1.0, which required 43,250 pips to trade the full portfolio. With the new HR 2.0, you can trade the full portfolio with only 19,500 pips. A similar gain would now yield 43.9% in Q2, or 14.63% per month.

What does this mean for you?

Following the Forex Freedom plan, you could completely replace your existing income in approximately 19 to 42 months. And you could double existing income in 25-54 months. Read the Forex Freedom plan and see for yourself how this is possible.

In Q2 I expect to make somewhere between 6.59% and 14.63% per month with the Hedge Report. I’m also continuing research to improve this even further. As a Hedge Report member, you’ll have access to all improvements that are made as they are discovered.

Are These Results Guaranteed?

Nobody can guarantee what will happen in the future. I’ve shown what the Hedge Report can do over several years, I’ve also shown how you can get those results trading LIVE in a REAL account, and I’ve given you the plan to trade forex to replace your current income completely.

If this is the only thing you do this year to improve your finances, you’ve made a SIGNIFICANT contribution to your future.

You’ve seen long term theoretical proof + actual trading results that I’ve obtained along with the Hedge Report members. This is a true plan for financial freedom that happens automatically for you when you become a Hedge Report member.

I spent over 9 months in 2011 working 15 Hour Days to create this system for OUR benefit. I’ve also spent almost 15 years researching the forex, and teaching it online for 8 years now. Few people have this level of experience to share with you

I am personally following this plan. I’m 100% committed to helping this be a financial plan that can change your life forever for the better.

I KNOW this will help you…forex trading has made my life unimaginably better than it would have been without it & I want to SHARE that experience with you now.

Does the Hedge Report Actually Work?

Absolutely, Yes.

I’ve shown you above how you can completely replace your income in 2-4 years, and possibly even double it in that time.

Could it take longer? Yes, it may take longer, but I’ve shown you what’s possible. Not only is it possible, we are actually following a PLAN to reach the GOAL of FINANCIAL FREEDOM.

I’m continuing to improve the plan so we all get there faster. What’s really awesome about this plan is that it’s:

1. Easy
2. Requires only 10 minutes a day
3. Can start with as little as $200

You Can Start NOW

It doesn’t matter if you’ve traded before or not. You could begin following this plan THIS WEEK. Imagine KNOWING that you were actually on your way to financial freedom following a REAL plan that was created by a mathematician for YOU to help you LIVE a BETTER life. That’s what the Hedge Report is all about, and it’s available to you NOW.

Don’t Take My Word for It

Here’s are a few unsolicited testimonials. I didn’t ask anyone for a testimonial, they simply felt inspired to let me know what they thought:

“Thanks Again for this AMAZING system! It rawks! I started back on 11/21/11, and to date have amassed a little over 4,800 pips, in LIVE trading..this is SO COOL!! THANK YOU soooo much, Brian! ” ~ Paul S.

“I’ve been trading forex for a number of years and this is an unbelievable,simple,the most profitable way of trading I’ve experienced. Traders just starting in their trading careers may not fully comprehend the “genius” behind this method. How you have boiled down trading forex to such a simple system for us is truly amazing. I just watched how my porfolio reacted to this mornings NFP report without being nervous and sweaty. Thanks for sharing.”  ~ Ken P

“People listen up!! Brian is one of the few forex teachers that isnt trying to sell you a new technique every other day like these other clowns who are making their money not by trading, but by building huge lists and selling a new system for 1995 or 995!! He is honest and transparent! He will speak to you and not hide behind his computer or let other people speak for him! Subscribe to his method and you will not be sorry(or broke)!” ~ Kevin S

There are also other positive comments among the 690 comments logged in the private Hedge Report members area. I spend time every day helping ALL members with ANY questions that they have about this system. You get 100% support by me personally. It’s my mission for you to UNDERSTAND and GET these results for yourself.

I’m Ready to Take You There

I am ready to show you exactly how you can create a profitable income stream with portfolio hedging. With a little patience & discipline you can transform 10 minutes of your day into a rewarding new lifestyle and ease the financial pressures of your life so you have more free time to ENJOY YOUR LIFE.

Click Here to Join Us and Start Trading Forex for REAL, Right NOW!

You’ve given in to fear long enough, now it’s time to achieve your DREAMS

If you have any questions about portfolio hedging, contact me directly here. I’m happy to help you.

Posted in Hedge Report

Instant Momentum as a Forex Trader

There is to be a temptation among people learning forex trading to want to feel like they understand trading before they start trading. This isn’t the best way to learn to trade.

Learn Trading by Doing

The FEAR that most people have is that when they begin trading, they don’t want to lose money. Nobody wants to lose money, we become forex traders so we can make money.

If you haven’t traded any real money yet, it seems logical to want to have a winning system in place before putting real money on the line…this is why demo trading (trading in a practice account with pretend money) is typically advocated.

The PROBLEM with Demo Trading

Demo trading is a good thing to do. It does have a major disadvantage. People tend to get bored with demo accounts. We know it’s pretend money, so we don’t take our trading seriously.

I recommend that you open a tiny trading account with REAL money. You can open an account with as little as $50. I recommend opening an account with at least $100.

Allow this account to be your “learning” account.

Although your goal will be to make money from the account, consider this first account as part of your forex trading education. Give yourself permission to trade this account even down to ZERO in order to learn forex trading.

Making Forex Trading REAL

Approximately $4 TRILLION is traded every day on the forex market. This is ALOT of money, and a huge opportunity for you to live a fantastic life & to do the kinds of things you want to do in life.

I’m recommending you start trading with real money for an important psychological reason:

If you trade with REAL money, forex trading is REAL for you.

When you start making trades that earn you $1.73, $2.11 or even $0.12 something magical will start to happen. You’ll start seeing FOREX as a REAL way to make money for you.

When you see your $100 account grow to $110, you may choose to throw in another $20. Then that $130 account will grow to $150. Then you may toss in another $50. As you see the small account grow, you’ll naturally want to invest a little more in it at a time.

Since your account is already setup, it’s easy to invest another $10, $20, $50, or more  because you can simply add it to your account. If you don’t have a live forex trading account setup, you’ll tend to procrastinate.

Expanding Confidence

You’ll learn lessons along the way. You’ll lose money at times. Even though you don’t want to lose money (nobody want to), you’ll also learn VALUABLE lessons from the money you lose.

Whether you take a profit or a loss from a trade, the fact that it’s REAL MONEY will spark an interest in you that simply isn’t there with a demo account.

The SOONER you can overcome fear that you’re going to lose money, the CLOSER you are to becoming a PROFITABLE forex trader. The longer you wait to open a REAL account, the longer you’re postponing your success.

Think about this honestly for a moment…“How many things have you spent $100 or more on that were pure WASTES of the money…money that you spent that doesn’t have any OPPORTUNITY of earning you an income”

After you answer that question honestly…ask yourself this question “How much is it worth to INVEST in learning this VALUABLE skill that will benefit me for life?”

By making a decision to open a real forex account and start trading NOW, you’re on the true path to opening up a tremendous new REAL opportunity for yourself.

Many times I wished I started trading earlier than I did. I’m GLAD that I trade NOW Make this commitment to START NOW and I’ll continue to show you the next step!

 

 

Posted in Forex Trading Mindset