FOREX — A ZERO SUM GAME?

Trading is important to me.

So is NOT feeling like for me to “win” someone else has to “lose”. Worse yet, under the zero sum game theory, for me to “win” someone else DID “lose” in the trade.

Makes sense, doesn’t it? You close a trade at a loss .. someone else was the counter party (took the other side of your trade) and WON. Right?

Then someone else took it a step further and proposed Forex trading is actually not a Zero Sum Game but a NEGATIVE SUM GAME!

Meaning if you consider the BROKER who makes the spread on every trade (or gets a commission) — then EVERY TRADE not only has a LOSER but the Broker Spread actually creates a permanent and unbeatable LOSS on every trade.

Now … how can anyone with any conscience buy THAT as a fair and equal wealth opportunity
and feel good about it?

I couldn’t. I tried. It messed with my Trader Mind and my Trader Soul every time I thought about it. Even when I wasn’t thinking about it …. I was thinking about it at some level, because I had problems seeing and taking the winning trades like I should.

Like “Autopilot Loser Syndrome” or something!

IS IT TRUE?

Is Forex at best a Zero Sum Game and at worst a Negative Sum Game with worse than a loser in every trade … the whole THING sucks money away from the “innocent”Huh

You know … there’s a fairly long explanation if you drill down all the “rabbit holes” there are to the complete solution to this. Does it really take that to feel better and KNOW that’s not the case at all?

Don’t we just have to find ONE … maybe two or three real answers that prove those wrong?

Is it important to even know really if those two myths are real?

Yes, I think it is. The reason? Because sooner or later, even if NOW wasn’t the time you became aware that every time you WIN … someone else LOST, it would sooner or later come to you.

And then it DOES mess with your ability to trade.

So, here’s just a couple of examples of how …. THEY ARE MYTHS. Not fact.

YOU …. just closed a trade at a HUGE profit. Let’s analyze just a few of the several possible scenarios PLUS we will (for the pure of thought and heart) show where THE BUCK STOPS and any differences “wash out” into a system that it doesn’tmake any difference at all in, who won or lost on a trade with even 500 or more pips of profit.

READY?

YOU …. just closed a trade at a HUGE profit (remember?) …. so WHO LOST if you GAINED?

Scenario # 1 — YOU closed the trade at profit. And the COUNTER PARTY to your liquidity is JUST NOW OPENING a trade. Did they lose? How could they? They aren’t CLOSING a trade, this is the OPEN for them. *** No Guilt Trade ***

Scenario # 2 — YOU just closed the trade at profit. And the counter party is ALSO closing
a trade and in order to close THEIR TRADE, it has to be the OTHER SIDE of your trade.

Example you’re closing a EUR/USD trade. Couldn’t THEIR TRADE carry the USD part from ANOTHER CROSS?

Does that mean THEY LOST? Who knows? It’s not related. *** No Guilt Trade ***

Scenario # 3 — YOU OPENED A TRADE. Did you lose? No, you are just now opening the trade. Did the COUNTER PARTY lose? Only if they bought / sold their original trade creating your liquidity at the exact same price you did. *** No Guilt Trade ***

OTHER CONSIDERATIONS … the spread the Broker gets.

Does that create an EVERY TRADE IS A LOSER FOR SOMEONE AND SIPHONS OFF MORE MONEY situation?

No. First, we’ve seen there doesn’t have to be (by force of mechanics of a trade) a loser in every trade you close at profit. It also doesn’t mean there ARE NO LOSERS.

Hey. We’ve had losing trades, right?

We’ve just shown “A” (any trade) does NOT always equal “B” (a loser every time).

The spread. Or commission. Or both. Are they just “bleed out holes” in the Forex Body?

No! When you perform work at your job or service, are YOU a “bleed out hole” in the body of the organization you work for? Of course not.

YOU ARE A SERVICE POINT OF VALUE. And … you get PAID for creating a value.

The spread is compensation for a value provided in every trade. No compensation … no trading.

To put forward a theory (think Myth) that this compensation is just one more way to LOSE is simply false. There is a value provided which just happens to be “non-negotiable” that we have to have it, or there’s no trading. That’s not even something that can be questioned.

SO PUT YOUR MIND TO REST (especially if this just unsettled it!).

Forex trading is not a ripoff program or some form of guaranteed losing system for “someone”.

Meaning … you don’t need to believe YOU will be a FORCED VICTIM of some UNBEATABLE machine that will take your money because, “That’s the way it is! It’s Zero Sum Man…..” isn’t the case in truth at all.

You see now … you can win and THEY can win too.

So who takes the “beating” when that traded currency finally makes it’s way out to the “Real Money World” and it’s now valued LESS than when it went in?

No one.

Yes, differences in value of money make a difference in “buying power”. Right? But the system of real money value, real money transactions dictate a rule.

THE #1 MONEY RULE

When we buy something, whatever we BOUGHT must always have a HIGHER USE VALUE to us than the CASH VALUE we paid for it.

OR … what?

We don’t buy it.

Meaning … we won’t part with our hard earned (or Traded … which is still EARNING IT as far as I’m concerned) money for anything we measure as worth LESS to us in Use Value, than we feel our MONEY VALUE is worth.

“Translation” … the CONSUMING PART OF OUR ECONOMY makes the entire thing a self monitoring, self correcting field to bring the money back into circulation and use.

In the end, Forex is a stand-alone force of economics separated from us through the filter
of the PURCHASING PUBLIC and the forces and dynamics of value against cost.

It is so deep and complex and “self correcting” that we don’t need to worry even about that.

Trade with a clear mind (and conscience) …

As WINNERS.

WHAT DO YOU GET WITH US?

  • 4 Live Trading Sessions per week / London Session from 10:45 pm Pacific to 3:00 am Pacific
  • Custom Chart Indicators for the Price Action Shadowing & Scalping Method
  • Complete online Video Training for all aspects of the PASS Method
  • Custom Trade / Lot Size Management & Risk Management that works with our Method
  • One on one assistance when needed.
  • FXOpen’s awesome MT4 Platform with our fully customizable charts and our custom PASS Method setup using their charts.
  • FXOpen’s FIXED PIP SPREAD of just 2 Pips on EUR/USD and 3 Pips on GPB/USD and customizable entry conditions to set your own “slippage” or set to “At Best” order execution.
  • Lowest spreads in the industry.
  • Up to 500:1 Leverage – no FIFO rules – Hedging Allowed
  • Regulated by the strict Australian ASIC Regulatory Agency
  • Trade Gold and Silver on Margin

IS THIS YOUR “TRADER’S MAXIM”

“I can sit down any time, on any day with movement to trade and I will make money trading Forex.”

“My daily discipline of getting 15 pips is the pace for Birth Of A Million.”

“When one of my trades stops out, I get that money back. PLUS I move my account forward to my daily goal before I’m done.”

“I can do this because I understand the math of my Stop Loss and Take Profit Limits and the math of the lots I trade to make my system work.”

“I have charts with specific indicators showing me how I need to trade.”

“I understand my body’s natural “Trading Rhythm” and I trade to make the most of it to even further protect my account.”

“Because of these things, when it’s needed I’m ready to roll up my sleeves and go to work to implement my Loss Recovery Strategy. I trade using it and move my account forward to goal before I’m done trading.

“I understand if I don’t do this it hurts my goals and my Trader’s Soul.”

IF THIS ISN’T YOUR PLAN — YOU NEED A NEW PLAN

If you can’t say what you read above … STOP TRADING LIVE MONEY if you are trading it now.

We spent over 5 years trading and over $60,000 invested in LOSING TRADES as well as educational programs and materials to create the Price Action Shadow & Scalping Method.

We created this out of “self defense” because to be honest, we got “So over that!” with losing money!

And it can be YOURS AT NO COST AT ALL

Contact us for more info. Our mission is to create INDEPENDENT TRADERS who can make money trading Forex on their own because they have a system that works, takes the guess work out and keeps your account growing in positive equity — without needing that “guru” telling you when to get in and out of trades.

YOU WILL BE ABLE TO TRADE ON YOUR OWN QUICKLY.

It is all about you being able to trade and make the money you want because you KNOW HOW to trade! But you can still trade with us for as long as you wish. Trading Partners are a good thing.

ALL WE ASK … is that you open and fund a LIVE TRADING ACCOUNT with our Broker within 30 days of trading Demo with us. You will have unlimited access to our system, training, trade room participation and ongoing upgrades.

THERE IS NO COST TO YOU FOR OUR SYSTEM AS ONE OF OUR TRADERS.

SPECIAL RISK NOTICE. It is always better to open a trading account with MORE MONEY … not LESS money when the option to do so is there. Remember, it is your money. More funds give you more safety.

FOREX PROACTION TRADER CALL INSTRUCTIONS

HOW IT WORKS

You need to have Skype (http://skype.com ) and add forexjim to your contacts. We will add you to our contacts and add you to the Group Call List.

The calls are Monday, Tues, Wed, Thurs starting at 11:45 pm Pacific Time.

When your skype “rings” with the call coming in just accept the call and you’re on. If you can’t join the call at the start, you can join later simply by clicking the Missed Call notice and clicking the Join Call button.

The Big Rule

We are all on the call to make money trading forex. Because there are many different levels of experience, some still learning, others trading live money, we ask that the following “Rules Of The Road” be observed as you participate.

Welcome To Our Call!

RULES OF THE ROAD

1. Bring your “Professional Self” to the call. These can be a very social call at times, but we must maintain a 100% level of professionalism as well. Manners matter in other words.

2. When you first join the call, please have your microphone muted. The MUTE icon is located in the center area where the group names are at. You will also see the “Chat Balloon Icon” to text to the group.

3. Text questions and comments in the Chat Box to start out. If you need to ask a question by voice, unmute your mic and depending on background noise, etc. you may be able to leave your mic ‘open’ during the call.

4. If you have been trading with different charts, indicators, systems, please don’t bring them up on the call. If there is something you have been using you believe to be of value … AFTER … you have studied our system and charts, feel free to “Private Message” your ideas to forexjim on skype, but not in the group calls.

5. Keep in mind it is YOUR MONEY and YOUR RESPONSIBILITY to take care of your money when trading. We do call out trades. But we can’t close the trade at minimal loss or maximum profits for you. In the end, that is your job. There will be trades that don’t go where we thought when we called them out. That’s trading … and it means they may go negative OR POSITIVE further than we thought. It is just trading.

6. Honor your own “Trader’s Bio-Rhythm”. When you first sit down to your charts, you’re still “cold” to the market. Don’t take risky trades then. When you’re “in the zone” and warmed up, go with it. When you feel fatigue coming on, or you know you have to leave for work, go to bed, or something else is coming up … STOP TRADING.

7. Trade a MAXIMUM of 2 or 3 Mini Lots per $1,000 of account balance. For a $1,000 account you would put in a trade of .2 or .3 MAXIMUM. That’s $20,000 or $30,000 (2 or 3 mini’s). For a $5,000 account you would see in the trade volume selector 1.3 to 1.5 lots which is $130,000 to $150,000 of currency. .1 lot = $1 per pip. 1.0 lot = $10 per pip. Big difference. Stick to the rules.

8. Trade a MAXIMUM of 3 of THOSE TRADES at one time for your Loss Recovery System trades. Meaning if your maximum trade is .2 lots for each trade, you trade no more than 3 of those trades during Loss Recovery work, all at one time.

9. State the following before you start trading …

“I can sit down on any day, at any time, as long as there is at least 15 pips of movement and make money trading Forex. When a trade stops out, I will use my Loss Recovery System and get my money back. I will stay in my money management rules. I will roll my sleeves up and make my session positive before I quit. By doing this, I honor my Trader Goals and protect my Trader’s Heart and Soul.”

10. Honor the DISCIPLINE of FOLLOWING THESE RULES!

For all to read

About leverage. There are many new traders who really don’t have a
clue what leverage really means, how to know if it’s good, bad, better
or how to even know the impact on your real world trading.

So … here is a brief but hopefully still easy to understand lesson on it.

Mic (imaginary trader) for example, has said he wants to trade (in fact I think said HAS to
trade) micro lots for his system to work.

In this last post, in the points to consider, wants 500:1 leverage but
will consider 300:1.

Ok … consider this. Based on what you have said, neither leverage
would even make a difference in your trading, up to and including 100:1!

How do I know this? Because I know how leverage works and how much
of it is actually used in trading for most people.

Here is the math on a Micro Account so you can see how it works.

At 500:1 … a Micro lot costs $2.70 to hold $1000 in trade (within a dime or so).
At 400:1 … $3.38 at 300:1 $4.50 at 200:1 $6.75 and 100:1 $13.50.

Got all that?

So, if you’re saying “I want to open my account with $500 but have 500:1
and I MUST trade micro lots, it tells me you plan to trade LESS than one full
MINI lot of $10,000.

Let’s look at it though as IF you were going to trade a FULL MINI LOT which
is 10 (Ten) Micro lots.

You have $500 in your account. You’re going to trade 10 (ten) Micros

Here’s the effect of the leverage … or LACK of it.

At 500:1 you would have $27 of your money holding the trade .. .the Margin.
At 400:1 you would have $33.80 of Margin (your money) holding those 10 micro lots.
At 300:1 you have $45.00 of Margin being used. At 200:1 $67.50 holding the
trade open. At 100:1 you have $135.00 holding the trade.

WHICH IS BETTER? Do you (any reader) know which is better for YOU?

First, let’s face it. Out of $500 — NONE of those amounts is significant to your
account, in that in ALL CASES, you have plenty of money LEFT in your account
to absorb some movement AGAINST your trade.

If the trade goes into PROFIT … then none of those leverages is even worth
talking about, because Margin only comes into play if it goes AGAINST YOU.

So, again, which one is BETTER?

There is ONE OTHER TIME margin becomes an issue, other than when the
trade is going AGAINST your position.

That’s when you want to trade HEAVIER .. but your leverage is higher than
you have money to put on the trade.

Example … with the $500 account, if you wanted to trade 100 Micro Lots,
(10 Minis) up to the 300:1 YOU COULD. Because 100 lots would still add
up to less than the $500 account balance and STILL HAVE MONEY LEFT
to absorb some movement against your trade. Not much .. but some.

At 200:1 and less, you COULDN’T because the required margin would
take MORE than $500 to put that many lots on.

But other than wanting to trade “Account Killer Levels” of lots, we are
then back to the question of … WHICH IS BETTER THEN, FOR THE TRADER?

Remember … the MARGIN HOLDING THE TRADE IS YOUR MONEY THAT IS
LEFT AFTER YOU MARGIN YOUR ACCOUNT OUT.

So, if you put on those 10 micro lots and you had say an account at each
margin level from 500:1 to 100:1 … and all of your accounts margined out,
you would have THE MARGIN HOLDING EACH TRADE LEFT AFTER
MARGIN CALL.

Now which one do you want? At 500:1 you’d have $27 left. At 100:1 $135
of your $500 would still be left. Because the Margin is YOUR MONEY.

I’ve had traders tell me … “But I don’t plan on margining out. I just want
as little of MY money used to open the trades as possible.”

Here is some real world trading advice.

If you don’t plan on margining out your account .. then DON’T.

And if that’s the case, the the MARGIN offered doesn’t make any difference
at all UNLESS … you plan to try putting on MORE LOTS than the lower margin
levels will let you … and then you BETTER PLAN on how to avoid margining
your account out or you will.

We USE that higher level of leverage to work our Loss Recovery System.
Most people just see leverages listed and “higher is better … right?” without
understanding what it really is, if they will every really use it and how it can
protect you.

Hope This Has Helped!

TO OPEN LIVE ACCOUNT

Decide on JOINT or INDIVIDUAL account. Select MICRO or STANDARD.
COMPLETE THE ONLINE SIGN UP FORM. Simply Name, Email, Phone and you will see the balance of what they need you can scan and email.
Scan and Email your Identity Credentials … by either scanning your Drivers License (or Passport) AND a recent UTILITY BILL or BANK STATEMENT or you can use your CAMERA PHONE to get a good picture and upload to your COMPUTER and then email to them from your computer.

TRADE FREQUENCY TO HIT GOAL DAILY PIPS

30 Pips Per Day / Session 40 Pips Per Day / Session

15 Trades @ 2 Pips 20 Trades @ 2 Pips

10 Trades @ 3 Pips 10 Trades @ 4 Pips

6 Trades @ 5 Pips 6 Trades @ 7 Pips

3 Trades @ 10 Pips 4 Trades @ 10 Pips

What YOU CAN CONTROL most easily is NUMBER OF TRADES. Size of trades in Pips is HARD to control. Your optimum efforts will be from 6 to 20 Trades per session. Less trades and you have to use Stop Loss Levels that would put you in an “All In” basis to allow enough “room” for going for 10 or more pips per trade.

NOTICE … the difference between 30 Pips and 40 Pips per day on 10 Trades … is 1 pip!

NOTICE … the difference between 30 Pips and 40 Pips over 39 Trading Days on a $4500 account to start is $8,000!

TRADE SAFE — AND MAKE PIPS!

Forex Pro Action Team

CAPITAL MANAGEMENT RULES

5% Max Loss or Draw Down Per Session / Day = $50 Per $1,000 of Account Balance before “turning off the computer” / closing trades out / walking away on any given day or session.

HOW TO USE THE 5% MAX DRAW DOWN IN TRADES

5% Max Draw Down at 2.5% = 75 Pips Max Move Against Trade

1 Trade with a 75 Pip Stop 2 Trades with 37 Pip Stop 3 Trades with 25 Pip Stop

5% Max Draw Down at 3% = 50 Pips Max Move Against Trade

1 Trade with a 50 Pip Stop 2 Trades with 25 Pip Stop 3 Trades with 17 Pip Stop

What this means is you can give yourself ONE TRADE as your “All In” and set a 50 (3%) or 75% (2.5%) Stop Loss and if it takes it out — YOU’RE DONE. Or … you can set the other Stop Levels and give yourself 2 or 3 trades to work with before