Week	Capital	Week	Capital
01	$2100.00	27	$07466.91
02	$2205.00	28	$07840.25
03	$2315.25	29	$08232.27
04	$2431.01	30	$08643.88
05	$2552.56	31	$09076.07
06	$2680.19	32	$09529.29
07	$2814.20	33	$10000.37
08	$2954.91	34	$10506.69
09	$3102.65	35	$11032.03
10	$3257.78	36	$11583.63
11	$3420.67	37	$12162.81
12	$3591.71	38	$12770.95
13	$3771.29	39	$13409.50
14	$3959.86	40	$14079.97
15	$4157.85	41	$14783.97
16	$4365.74	42	$15523.17
17	$4584.03	43	$16299.33
18	$4813.23	44	$17114.30
19	$5053.90	45	$17970.01
20	$5306.59	46	$18868.51
21	$5571.92	47	$19811.94
22	$5850.52	48	$20802.53
23	$6143.04	49	$21842.66
24	$6450.19	50	$22934.79
25	$6772.70	51	$24081.53
26	$7111.34	52	$25285.61

Risk Calculation
Brokers now offer micro lots which enable us to accurately use a certain
percentage of our account on each trade, a micro lot is 0.10c a pip giving us far
more flexibility especially for smaller accounts.
Let’s run through a quick example using a random $5,436 account.
We spot a setup on the EUR/USD and require a 60 pip stop to give our trade
plenty of breathing room and get the stop behind the recent resistance level.
To find 2% of our account we…..
Divide $5436 by 100 then times by 2 = $108.72 which is 2% of the account size.
So we can risk $108.72 on this trade, now we need to find out what position size
to place on this trade.
$108.72 divide by 60 pip stop = $1.81
To find the number of micro lots we divide $1.81 by 0.10c = 18 micro lots.
To summarise placing 18 micro lots on this trade, risking 60 pips will risk exactly
2% of our trading account. On the next trade you will calculate this all over
again using the new balance on your trading account, if your trade was a
success then your new risk will be slightly higher that the previous one. This is
how we rapidly build our trading accounts compounding profits and using them
to create even more profits.
Money management is not only about what to risk on each trade. That alone will
not save your bacon if you are a trading maniac who must be involved in the
market no matter what.
What ever size your trading account is treat it like gold, if you are at all unsure of a trade then skip it, like bus's there will always be another one along soon
enough. You must not feel the need to trade, I very often do not trade Mondays
which only leaves 4 days a week to look for setups yet I still turn profit and the
more patient I become, the smoother my equity line increases and the more
wealth I build.

Risk/Reward Ratio
Risk/reward ratio is very important when trading over a long period of time.
Many new traders coming into the forex market fall into the trap of refusing to
let their winning trades run. Lets have a look of how that will affect them over
time.
Trader #1 Risks $100 and takes profit at $25 giving him a risk reward of 4-1
this means that in order for him to break even in the long run he must achieve
80% winning trades.
Trader #2 Risks $100 and takes profit at $100 giving him a risk reward of 1-1
this means that in order for him to break even in the long run he must achieve
50% winning trades.
Trader #3 Risks $100 and takes profit at $200 giving him a risk reward of 1-2
this means that in order for him to break even in the long run he must only
achieve 33% winning trades.
Trader #4 Risks $100 and takes profit at $300 giving him a risk reward of 1-3
this means that in order for him to break even in the long run he must only
achieve 25% winning trades.

Now who do you think is going to succeed in the long run? Surely it is far easier
for traders 3 & 4 as they have less pressure to achieve a high win % in order to
make money. Are you beginning to see how important this is?
Never open a trade if you do not anticipate your trade to gain you at least the
same amount as you risked, I prefer to try and go for twice or three times the
amount I risk while always moving my stop to break even as soon as I can.