It’s a buy trade that’s bouncing off a Support and Resistance line when the BUY signal came in.

LMT Forex Formula Conservative Trade Management Strategy

I used the conservative trade management rules to exit half the position at the first profit target, and then shifting the stops to break-even. In other words, this has now become a No-Lose trade with the potential of it running into several hundred pips in profit.

LMT Forex Formula Reward-Risk Ratio

The Initial Stop Loss was 66 pips, and if the USDCHF runs all the way to a couple of hundred pips or more, that’s a great risk reward ratio. The next possible resistance level is at 1.0960, which if hit would give a potential of +299 pips.

That gives us a Reward-Risk ratio of 4.5 (299 pips / 66 pips = 4.5).

That’s a pretty awesome Reward-Risk ratio. Of course, with the trade management strategy that I’m using to let the position run, I could end up with a whole lot more than 299 pips, or a lot less than that. But right now, being in a risk-free position is a great place to be.

Another great thing about being in a NO-LOSE Trade is the fact I can now shift my attention to finding another good trade to enter.

For More Information on the LMT Forex Formula System

For more information on this particular forex trading system, read the LMT Forex Formula Review.

You can also check out the official website for the LMT Forex Formula. There’s that usual hype that comes with selling these forex trading systems, but when you cut through to the actual stuff, it’s a pretty decent forex trading strategy for people with limited time.

The Official LMT Forex Formula Website >>

Trading the forex currency markets is one of the most interesting, yet also one of the most excitingly boring professions in the world. And that’s probably when you are doing it right.

I’m using the LMT Forex Formula system to identify high probability trade set-ups that run with the trend for larger profit potential. In the course of trading with the LMT Forex Formula, I realized that a lot of the things that I take for granted aren’t covered in the manual. Skills like:

• The ability to identify Support and Resistance Levels
• Reading candlesticks to identify high probability market turning points
• Being able to identify trends and trading ranges
• And a host of other skills that I’m probably not even aware of when I look at the charts, like Elliott Waves, Momentum, Market Psychology, etc.

But then again, you probably don’t even need to confuse yourself with trading knowledge that like to be profitable. Sometimes, I have to be consciously aware to not let existing knowledge interfere with the current trading system rules!

Does this mean that the LMT Forex Formula is a flop?

Far from it. I believe that the LMT Forex System by Dean Saunders gives you a very solid and robust trading system for high probability trades. The element, in my personal opinion, that makes Dean Saunder’s Forex Formula a very good forex trading system is the custom indicator that calculates the Stop Loss and Take Profit levels based on market volatility.

Together with those elements, and the trade management strategy of when to move your stop losses and close out your trade for profits, makes the LMT Forex Formula a very powerful forex trading strategy.

On the other hand, it doesn’t mean that purchasing the system will make you a very profitable trader straight away. Like all things, there is the ability to manage your emotions and trading decisions.

Here’s a trade on the EURCAD that the LMT Forex Formula system identified. I was already in another trade at that time, and didn’t take this one. But here’s what it looks like:

Managing the Trade with the LMT Forex Formula System

These were the following levels based on the LMT Custom Indicator:

• Initial Stop Loss: 115 Pips
• First Target: 58 Pips

If you followed the rules on this, you would either have made a profit or had broke even on this trade.

It would have been nice to be still in this trade as it approaches the floor of the trading range (in yellow), but sometimes that’s just the way things are. If you had followed the rules right to the letter, the market ticked right to your exact Stop Loss level once you moved the stop to Break-Even (based on the first target level) before heading back downwards.

But that’s the breaks as a trader. Sometimes you win, sometimes you don’t. But if you follow Warren Buffet’s trading rules, I believe that with a solid trading system you’ll end up profitable in the long run.

Oh yeah, what’s Warren Buffet’s rule about investing money?

Rule No. 1: Don’t Lose Money.

Rule No 2: Look at Rule #1.

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EURCAD SELL TRADE UPDATE

5th February 2010 – Update on the EURCAD LMT Forex Formula Sell Trade

Here’s an update on the EURCAD Sell Trade. It’s broken past the support levels and looks like it might just continue headed down for a while.

If you want to read a little more about the LMT Forex Formula, you can check out my review of it here:

The LMT Forex Formula Review

Or

Visit the official LMT Forex Formula Website >>