Keeping the S/E Ratio fixed is KEY to the success of FXHOLIC System which is applying the geometric progression/compound effect which catapults our $1000 up to $1Million. That means, if I trade 1 Mini Lot (s=0.1) per $1000, S/E = 0.1/1000 and if I double my Equity up to $2000 , I can double the mini lots I trade to 2 so now trading 2 Mini Lots (s=0.2) , S/E = 0.2/2000 therefore the Ratio remains unaltered.

Daily Pips Target ideally should be no more than 20pips for two reasons. First because going after 20pips makes our life easier because it is an achievable task and second because even if the body of a Daily Candlestick is not bigger than 20 pips, the Accordion Effect is in full play if we switch to M15 with its 96 Candlesticks and on average 3 or more moves of 30-40pips each within a day.

RISK is the pips-distance between our Entry and our Stop-Loss and it corresponds to the maximum loss we can afford per trade. It has been statistically estimated that if RISK is less than 3% of Equity, Account is safe. Therefore for an Account with $1000 Equity, I can’t take more than $30 RISK which reflects to 30mini pips if my Account’s Leverage is 100:1.

STEP #2 Rules :
Trade ONLY ONE PAIR at a time. Actually, trade ONLY ONE PAIR every time for the first 117 Years. You don’t need more than ONE PAIR to build true wealth with FOREX Trading, because price never stops moving and while it’s moving you can make money no matter if it goes UP or DOWN. Babies have a weird phobia. When their mother leaves the room they think she left forever and cry. Don’t be like babies. Just because you closed a position, it doesn’t mean Pair stopped moving and just because you don’t monitor a Pair, it doesn’t mean Pair doesn’t exist or can’t give you nice money.
Daily pips target should be no more than 20 as we’re starting out. When we build confidence after at least 3 Doublings, we can increase our Daily Pips Target.
Positive Psychology in Trading is KEY. So it is more important to FEEL like a winner than to reach certain numerical milestones. That means, it is better to go for 20pips per day and make 30 than go for 50pips per day and make 30. The amount of pips we make is the same, but psychology is totally different. When I go for 20pips and make 30 I feel like being at the top of the world. When I go for 50pips and make 30 I feel like a failure, I lose self esteem and I also lose focus. I either run the risk to start chasing trades with the sole purpose to make those extra pips, ignoring the rules and criteria and acting like a gambler, or to quit feeling frustrated and inadequate.
Going for 20pips per day doesn’t mean that we should trade every day. We may have to WAIT 3 trading days for a trade that may give us 120pips in two days. That means we made 120pips in 5 trading days, therefore we’re 20pips ahead of our goal for the week. Our calendar serves as a point of reference, not as a decree.
If our SL gets hit and we lose 30pips one day, we don’t take another trade that day and we don’t chase 50pips next day. This is gambler’s attitude and we’re not gamblers. By sticking to the rules and the criteria, we’ll find out that Market gives us way more than 20pips per trade in at least two out of every three trades we take. So losses will take care of themselves.