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Risk Disclosure

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high
degree of leverage can work against you as well as for you. 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.

© 2010 - 2013 Russ Horn. All rights reserved now and forever.
The information contained in this ebook is designed to teach you methods
of trading foreign currencies. Russ is not liable if, based upon the information you read here, you
lose money, make money, or become a trading superstar.

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“Steps To Trading Live”

There is a formula to ensure the best chances of
successful live trading.

By: Russ Horn

www.ForexStrategyMaster.com

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RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT
Trading any financial market involves risk. This course and all and any of its contents are neither a solicitation nor an offer to
Buy/Sell any financial market. The contents of this course are for general information and educational purposes only (contents
shall also mean the website http://www.forexstrategymaster.com or any website the content is hosted on, and any email
correspondence or newsletters or postings related to such website).

Every effort has been made to accurately represent this product and its potential. There is no guarantee that you will earn any
money using the techniques, ideas and software in these materials. Examples in these materials are not to be interpreted as a
promise or guarantee of earnings. Earning potential is entirely dependent on the person using our product, ideas and techniques.
We do not purport this to be a “get rich scheme.”

Although every attempt has been made to assure accuracy, we do not give any express or implied warranty as to its accuracy. We
do not accept any liability for error or omission. Examples are provided for illustrative purposes only and should not be construed
as investment advice or strategy.

No representation is being made that any account or trader will or is likely to achieve profits or losses similar to those discussed
in this report. Past performance is not indicative of future results.

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The information provided in this content is not intended for distribution to, or use by any person or entity in any jurisdiction or
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Hypothetical performance results have many inherent limitations, some of which are mentioned below. No representation is
being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp
differences between hypothetical performance results and actual results subsequently achieved by any particular trading program
and method.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In
addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the
impact of financial risk in actual trading.

For example, the ability to withstand losses or to adhere to a particular trading program or system in spite of the trading losses are
material points that can also adversely affect trading results. There are numerous other factors related to the market in general or
to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical
performance results. All of which can adversely affect actual trading results.

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Steps To Trading Live

Table of Content
STEPS TO TRADING LIVE.................................................................................................................. 5

STEP 1 - GET SOME CHARTS ............................................................................................................ 6

STEP 2 - LEARN YOUR TRADING SYSTEM ........................................................................................ 7

STEP 3 - DOUBLE YOUR DEMO ACCOUNT. ..................................................................................... 9

STEP 4 - OPEN THE SMALLEST POSSIBLE LIVE ACCOUNT ............................................................. 10

STEP 5 - ADD ADDITIONAL FUNDS. ............................................................................................... 11

STEP 6 - ONLY USE 1/3 OF YOUR FUNDABLE MONEY................................................................... 12

CONCLUSION ................................................................................................................................. 13

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Steps To Trading Live

Trading live is the goal of every trader. We start out wanting to make a bundle
from the markets, but invariably something goes wrong along the way. There are
several reasons why trading live didn’t work out.

Many new traders are uncertain as to the process to trading live. Many questions
come to mind. What to do first? What happens next? How long should I demo
trade for? Am I ready to go live? How much should I fund an account with?

If these are the same questions you have, then this little ebook will be just for
you!

What I have found is there is a kind of formula that you can use to make your
jump from demo trading to live trading a lot smoother and less uncertain.
Following this formula will help you become a profitable trader a lot faster. Those
who want their fortune immediately will fail to follow the steps and never reach
their trading goals.

The basic steps are:

1. Get some charts (demo account).

2. Learn your trading system.
3. Double your demo account.
4. Open the smallest possible live account.
5. Add additional funds.
6. Only use 1/3 of your fundable money

Let’s look at each step…

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Step 1 - Get Some Charts (demo account)
You need charts to trade. Plain and simple.

Next you will need to get your hands dirty by messing with those charts. You will
have to manipulate them and get used use them. Opening a demo account will
provide you with these charts, and I know where to get some of the best charts
for free!

The best free charts are called “MataTrader4” charts. They are free… did I
mention they are free? They are free, most brokers offer them with a demo
account, and they are very user-friendly.

I get my demo charts from a broker called Alpari. Specifically, I get my charts
from:

https://my.alpari.co.uk/en/mtdemo/

They provide me with not only a wide array of FX currency pairs, but with a
handful of the other things I like to watch: Gold, Silver, Oil and S&P500.

Fill out the form, be sure to choose MetaTrader4.

(MetaTrader5 is not widely used and probably won’t be for years to come)

Download and install your charts, following the instructions step by step.

Get familiar with how to use them. Open, modify and close some random trades.
Draw lines, scroll back and forth, press an assortment of buttons. Get to know
how your trading platform works.

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Step 2 - Learn Your Trading System
This is an important step.
There is something called “System Hopping”. Every new trader is a hopper, and
that’s fine. But at some point, you are going to have to make a commitment to a
single trading system.

System hoppers are looking for:

1. A better system
2. A system that better suits their trading personality
3. The Holy Grail.

Along the way, there will be a realization that the Holy Grail doesn’t exist. The
best you will be able to find or create will be a system that has great consistency.
Your system will have a decent win-loss ratio. This win-loss ratio can refer to the
number of trades or the number of pips. Some good systems (most good
systems) will have a higher number of wins than losses. A few systems will have
many small losses and a few large wins that make up for the losses and then
some. Either way, your good system, will enable you to come out ahead over a
certain period of time. A 65% win and 35% loss ratio is great!

Once you have gone on your Forex trading system search, you will finally settle on
a system that you like and feel comfortable with. This might be a system you
created or bought, or a mixture of the two. Whatever the case, you have your
system, now it’s time to get to know this system inside and out.

You want to learn how your system performs in every market condition. You
want to learn what kind of win-loss ratio your system has. You want to know
what kind of losing streaks your system has and what kind of winning streaks it
has.

These kind of discoveries will be uncovered initially in back-testing your system.

You will do this by scrolling the charts backwards and then seeing all the trades
you could have taken, paying close attention to the losers as well as the winners.
You can do this by simply seeing the trades as they have happened. This will give

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you some confidence in your trading system. Next, you will want to not only
scroll backwards in time, but move forward one candle at a time, not seeing what
the next candles are.

This kind of back-testing gives you confidence in your trading system, you will
need this confidence when you are trading live.

You want to be able to trust your trading system. This is critically important
because your system will be giving you signals to take trades when the future is
uncertain.

Stop the system hopping and devote some good time to learning one system.
One decent system when traded consistently will make you money, system
hopping will never ever make you money in any kind of long term way.

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Step 3 - Double Your Demo Account.
Now that you have learned how your system works, it’s time to start trading it. In
this step, we are going to trade the system on a demo account. This can also
called “forward testing”. You have back-tested your system on historical data, but
forward testing it on a demo account really puts it to the test. It will not only put
the system to the test, it will put YOU to the test. The human factors of fear,
greed and doubt will become huge variables in your trading.

When you are ready to trade on a demo account, you will want to trade with an
account that will be similar to that you will be trading live. If you plan on trading a
live account with $2500, you will want to make your demo account also have
$2500. This means there will be no surprises when you do go live.

You can trade on the actual account you have your charts with if you are using
MT4 charts, or you could use MT4 charts to find your trades and place your trades
on another trading platform, it really doesn’t matter. A note of caution when
using MT4 chart to find trades and placing those trades on another platform… be
sure to use an MT4 platform that has a virtually identical price as your platform.
Sometimes there can be a couple of pips difference.

You should be able to trade your demo account comfortably and with relative
ease. The position size you trade should be identical to what you would trade on
your live account. I only risk 2% of my account on each trade. At this point, your
demo should be treated exactly like your live account. No resetting, no refunding,
no starting over after a losing trade. You can’t hit the reset button when you are
trading a $50,000 live account, it’s important to treat a small account in the same
manner.

Trading your demo as you would trade a live account, you want to double your
demo account.

Your trading should be consistent, your win loss ratio being whatever it is, risking
only a small percentage per trade, trading as you would on a live account.
Doubling your demo will mean you have the system under your belt and you are
fluent with trading it.

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Step 4 - Open The Smallest Possible Live
Account
It’s time to open a live trading account!

You have successfully doubled your demo account with consistent and well
managed trades. You are on a roll!

When you open your live account, open it with the smallest amount of money
possible! Find yourself a Forex broker that offers Micro accounts. This is an
account that will allow you to trade for 10 cents a pip.

An average micro account can be funded with around $250. Trading a live
account is a lot different than trading a demo account. Of course the rules will be
the same, but you will find that it doesn’t work out that way.

Now that real money is on the line, you will find that you start to doubt your
signals, you will start to cut your winning trades short and you will let your losses
run longer than normal. You have a lot of “emotions” that need to be faced and
somewhat resolved before you add more money to your account.

Trading with real money has an odd effect on the psyche. This tiny live account
now represents your future. The money in this account could also represent a
few bills you could pay. Risking real money on a trade could make you feel
irresponsible as a provider. Because there is real spendable money on the line,
you will find it messes with your head.

Trading the smallest amount possible also means that if these emotions do get
the best of you, you won’t be in any kind of financial ruin. I know too many
people that lost inheritances, college funds, borrowed money and other almost
irreplaceable sums on a first live account. You do not want to be one of them!

Trade this small account until you have a taste and an emotional acceptance for
trading real money.

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Step 5 - Add Additional Funds.
Once you have trading with a small real account figured out and you are trading
profitably, without the stresses of live trading, feel free to add a little more to
your account.

Add funds to your live account a little bit at a time. I would suggest only adding
more funds when you can grow your live account by 50%. This figure isn’t written
in stone, but as your account grows, you will be able to handle an additional
chunk added to it.

Don’t throw everything you have into your live account!

Adding additional funds to your account once a month is a good idea. Slow but
sure. It seems like a long winded process, but trust me, the slower the better.

You want to habituate to the new amounts. You will possibly find that trading
with a few hundred dollars is no problem, but once you get to an account of
$1000, things get harder to do.

There is a comfort zone for everybody, but for everybody, this comfort zone will
be different. There will be a dollar amount that is comfortable to trade with, but
when you cross a certain number, it becomes almost scary. For some traders,
that will be the initial $250. For other traders, the comfort zone might be as far
away as $25,000. I would prefer you to creep up to yours and allow it time to
become natural.

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Step 6 - Only Use 1/3 Of Your Fundable Money
What this means is if you have set aside $5000 to trade with, only fund your
account with one third of that… approximately $1600.

The reason you do this is because no matter how good your trading abilities are, I
have never met a trader who hasn’t blown out their first live account. They may
not have lost the whole thing, but they at the very least, drop their equity to less
than 50%, even as low as 20%. When your account drops 80%, that is a lot of
trading you have to do to get that back!

Following this process will hugely reduce the potential for losing your first live
account, but the possibility is still there. By funding your account with only one
third of your trading capital, you will be able to lose your account and have the
funds to keep going.

You would hate to fund your live account with everything you have only to blow
it. This is not a good situation to be in. I know of traders who had to go back to
work and re-grow their savings in order to fund another account. This is a poor
way to get into live trading.

Remember, trading live is a not just a process of growing your account, it’s just as
important to protect your account. Funding your live account with only a third of
your available funds protects your initial savings. It’s great to start early in
developing a habit to protect your money.

If you do blow your first account, don’t fret, we all did it. Brush yourself off and
go back to trading that demo account until you double it. Then repeat the
process over. Start small and work your way up. It’s a process that will have you
trading a live account profitably and consistently in no time.

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Conclusion
Trading live and consistently making money is the ultimate goal of every trader.

Too many traders jump in with both feet and pay the ultimate price. Losing your
entire trading account is something common to many new traders, but it doesn’t
have to be that way. Following the steps provided in this short document will
ensure you the greatest chances of success.

The 6 steps might seem long winded, but it will be the shortest route to your
ultimate dreams and goals as a successful, live trader.

If you do manage to blow your first live account, go back to step 3 and repeat the
process from there. Blowing your account is a big deal, it means something along
the way went horribly wrong. There is a strong likelihood you know exactly what
happened. You either risked way too much on a revenge trade, failed to use a
stop loss and went to bed, maybe opened too many trades at the same time. Go
back and trade your demo account, double this again (or at the very least, grow it
50%) to ensure you are back on track.

1. Get some charts.

2. Learn your trading system.
3. Double your demo account.
4. Open the smallest possible live account.
5. Add additional funds.
6. Only use 1/3 of your fundable money

Thank you very much for your time and your consideration.
Best of luck to you in your trading and in your life as a whole.

Russ Horn
www.ForexMasterMethod.com

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