Dear Trader,
Thank you for your interest in my
improved service.
Please note that I do not offer training. Try the companies you
are going to trade through; they can probably help you with this matter. Trading companies are all over the Internet, or
even in the local newspaper and business journals.
To
trade according to my plan, you need to get the same service I use to
get the current price of the currency on a personal
computer. You need to use the same charting service I use in order to see the same target I am looking at when it is
hit to apply The Plan correctly (mainly exit Rule 4). You also need to open an account with a trading house that allows you to buy and
sell currency contracts on margin.
For The Yen Plan I suggest a trading account of
$50k (based on $2k margin required per open position). You need to modify the calculation below so that it
fits the margin requirements with your broker. Use the following as a basis of calculation for minimum account required:
- One position by the first entry that may be
suggested by the first step of a trading plan.
- Another one position (total is 2 open
contracts) at the second entry level.
- Another one position (total is 3 open
contracts) at the third entry level.
- Possible estimated floating loss of $777
(average loss on the first three steps of a plan on the long run assuming a
normal daily range) on the two positions taken by steps
1, 2 and 3 above.
- Add to that two positions just in case a
reversal of positions takes place (total is 4 open
contracts).
- Assume a 24-hour trading margin requirement of $2k per open contract on each of the 4 positions (this is
$8k in
trading margin). This leaves you with an additional $41,223 safety cushion in
the trading account that may be used in covering the bad days plus fees and commissions
(some trading companies have a commission free trading policy).
This minimum account size is for your investment safety. You better be prepared for the worst and not deal with having to
deposit more money as a margin at a time when you probably can not.
Sincerely,
Najib Taybi
