FMC RISK MANAGEMENT GUIDE

AUTHORS(S): TSHINAVHE.A

For queries or more info Contact/Whatsapp : +27673008534

 FMC TRADING PLAN
THE GUIDE TO SIZING YOUR TRADES ACCORDINGLY AND TRAING OUR SIGNALS

This is the default trading plan for beginners who want to know how to size their trades in alignment
with proper risk management and risk reward ratios. If you have trading experience, You can use this
plan to modify yours.

TECHNICAL

➢ For $20 account.

FOR NON – EUR and GBP

SL TP Lot Size Max Trades

0-20 Pips +20 Pips 0.02 3
21-30 Pips +20 Pips 0.02 2
31-40 Pips +20 Pips 0.02 1

FOR EUR and GBP

SL TP Lot Size Max Trades

0-20 Pips +20 Pips 0.01 3
21-30 pips +20 Pips 0.01 2
31-40 Pips +20 Pips 0.01 1
 FMC TRADE ENTRY AND MANAGEMENT
A GUIDE ON HOW TO TRADE AND MANAGE SIGNALS FROM THE FMC OR YOUR OWN

Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all
investors. Before deciding to trade foreign exchange you should carefully consider your investment
objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of
some or all of your initial investment and therefore you should not invest money that you cannot afford
to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice
from an independent financial advisor if you have any doubts. Past results as represented in testimonials
are not necessarily indicative of future results or success. Forex trading involves significant risk of loss and
may not be suitable for all investors. Know that as your mentor and signal provider, your consistent
success is in my best interest and priority. I trade the signals I give you, so when you lose, I’m also losing. I
won’t give you a losing signal intentionally, a loss here and there will be part of the trading journey but be
guaranteed that the profits will be very much more than the losses. It’s important to read and understand
the entire content in this document very well because I won’t be held liable for blown accounts. We have
a trading plan to help with risk management. Anything you decide to do on your own, you must be ready
to take full responsibility of the results. Now I am giving you trading guidance to help achieve maximal
gains while risking less.

Now that we’ve associated ourselves with the disclaimer, let’s get into the actual details of this document.
We trade both technical and fundamental (news). Also know that EUR and GBP pairs have weight and
volatility, so be very vigilant in terms of lot sizes and monitoring when you trade them.

BROKERS AND ACCOUNTS

I don’t work with brokers and I also don’t give out introducing broker (IB) links. But when trading with
me, You’ll be advised to have two separate accounts, one for technical trading, and the other for
fundamental (news) trading. For the technical account, you don’t enter fundamental trades. Let’s say it
happens that you are holding a trade and plan on holding for the near future, you adjust SL and trail. The
technical and fundamental account can be under the same broker or different brokers. I don’t usually
recommend brokers but for guidance sake, I’ll name the brokers I use. For technical trading I use
ICMarkets True ECN, Exness ECN, Pepperstone, and Tickmill. The recommended brokers for technical
trading are brokers with very low spreads or which offer ECN accounts. The recommended leverage is
1:400 going upwards. For fundamental trading I use JustForex, and HotForex. The recommended brokers
for fundamental trading are any brokers which offer a leverage of 1:800 and upwards.

You can continue using you current brokers, it’s still fine. Any broker of your preference is okay. Those
were mine, for those who are interested. The reason for having a separate technical and fundamental
account is that you can be able to manage the trades accordingly and so you can be able save accounts
while increasing risk if you want. I advise that you keep fundamental trading on the fundamental account
so you can be able to risk or enter the trades at any time you want without worrying that if it blows, you
have lost your entire trading capital. Make sure to risk an amount you can afford to lose on both accounts.
For fundamentals, if you enter a few seconds before the event, it means you won’t have time to set SL. So
make sure you withdraw profits or you are content with the possibility of losing all your invested capital in
that account. Let me give an example of what I have just said. Let’s say I plan on trading with a total
capital of $500 and I plan on trading both technical and fundamental. What I will do is that I’ll take $250
and deposit it into my designated technical account and take $250 and deposit it into my designated
fundamental account. I advise you to withdraw when your account has been doubled then remain with
the initial deposit. Once you’ve reached a satisfied number of withdrawals, you can stop and start
focusing on entering with bigger capital because it also increases your leverage and returns (profit).
SIGNAL ENTRY AND MANAGEMENT

For technical: Under normal circumstances, you’ll be given an entry price (EP), stop loss (SL) and take
profit (TP), unless if it’s a scalp. It’s important to note that for EP, you don’t necessarily have to enter
exactly on it, there can be a maximum deviation of 10 pips. This means that if you find that the price is
more than 10 pips from the given EP, you shouldn’t enter anymore unless directed for a re-entry or valid
entry by the signal provider. When a scalp signal is released, in order for you to be eligible to trade it, you
have to have very low spreads on your broker and trade it instantly or within a minute. This is because
scalps are aggressive trades so you enter and exit quickly. If a minute has passed, don’t enter the scalp
unless once more, directed by the signal provider. In a nutshell, eligibility for normal technical trades is
the number of pips from entry and for scalps it’s time and spread.

For fundamental: The signal is released in this format;

*insert currency* weak/strong, buy it/sell it.

Sell *insert currency*XXX

Buy XXX*insert currency*

Note: XXX is any other currency paired with the one which has news release. This means you will choose
which currency pair you prefer trading.

Let’s take a look at this example for better understanding. Let’s say we have NZD news release coming,
and I project a fall, or weakness on NZD, the signal will be;

NZD weak, sell it.

Sell NZDXXX

Buy XXXNZD

Let’s say on the same NZD news release I project a rise, or strength on NZD. The signal will be;

NZD strong, buy it

Sell XXXNZD

Buy NZDXXX

The SL is usually 35 pips for EUR and GBP pairs, then 25 pips for all others. The TP is usually open (because
movement is not always guaranteed) but we will usually put it at a min of 40 pips for EUR and GBP pairs,
then 30 pips for all other pairs. Note that entry price is not given for fundamentals. I will give you the
direction then you’ll choose your preferred pair, enter, and set SL and TP from your own entry price.
Here is some important additional information to consider.

This is what to do when I’m not around to tell you how to manage current open trades and there's news
that will affect the currency or when there's no news that will affect the currency.

IF THERE ARE NEWS:

*And you are in profit, you can deduct 15 pips (for non-EUR and GBP pairs) or 20 pips (for EUR and GBP
pairs) from the current market/moving price and put that as your SL, this is called a trailing stop. If you
adjust SL, you must extend TP with the same number of pips or more.

E.g. You are in a buy position and your entry price was 1.1235 with SL set at 1.1200 (35 pips). Let's say the
current market price is 1.1245, your new SL will be 1.1230/1.1225 and you'll keep adjusting it as price
continues to rise.
You can also close if you fear losing your current profit.

*And you are in a loss, leave your initial SL or if you decide to extend it, extend it by a maximum of 30 pips
and take partial loss so your account can stand the extended drawdown.

E.g. You are in a buy position and your entry price was 1.1235 with SL set at 1.1200 (35 pips). Let’s say the
current market price is 1.1205 (30 pip loss), and you have reason to believe that price will turn around in
your favour at any point from now on, you have the option to extend the initial SL by a further 30 pips. It
will now be at 1.1170.

IF THERE ARE NO NEWS

*And you are in profit, follow the same procedure and deduct 15 pips (On non-EUR and GBP pairs) or 20
pips (On EUR and GBP pairs), from the current market/moving price and set that as your SL (trail stop).

*And you are in a loss, leave your initial SL or if you decide to extend it, extend it by a maximum of 30 pips
and take partial loss so your account can stand the extended drawdown. If you decide to extend SL then it
should be because of you seeing a final support or resistance area. E.g. You are in a buy position and your
entry price was 1.1235 with SL set at 1.1200 (35 pips). Let’s say the current market price is 1.1205 (30 pip
loss), and you have reason to believe that price will turn around in your favour at any point from now on,
you have the option to extend the initial SL by a further 30 pips. It will now be at 1.1170.

On trails :

Remember that a trail stop is a way of maximizing your potential gains while protecting a certain amount
of profit for incase the trades starts going against you. When you trail you adjust your SL from negative SL
to positive SL. Then you can also remove your TP or extend it very far from your initial TP.

ANOTHER THING, You don't always have to wait for the trades to reach TP before you close because not
all of them will reach TP. When you feel that your target is reached or profit is satisfactory (have
emotional management, avoid greed), you can close or adjust your SL to a point whereby if it gets hit, you
will still have made some profit. Trail stops are used to maximize your potential gains while protecting a
portion of your profit. They don't guarantee unlimited profit.

Consistency is the theme... Don’t compete, dominate.

The End..Thank you.