Introduction to Cash Bombing
As many of you know, I had been away from trading full time in the last year or so as I went home to help my Mom go through treatment for Breast Cancer.
For the last year or so, my main connection with the trading public has been through seminars and my one on one consulting clients. These are both services that deliver MASSIVE value and increased earnings power to my clients, and as a result have a hefty price tag.
(In life you earn based on your economic impact to your clients. My impact on my clients is large and usually quickly realized.)
My average individual client on the consulting side has $75,000-$250,000. I wanted to learn more about what this new blog demographic looked like, so I began to have a conversation with my readers about their problems and goals for trading. Again and again I heard them speak about issues I knew were more related to level of capitalization rather then lack of skill or discipline.
I was surprised to learn that…
65% of you are trading with $25,000 or less.
This means that you are pretty much restricted from trading stocks by the Pattern Daytrader Rule. Your options are…Options, Futures, or Forex if you wish to trade actively. The worst thing about this level of capital is that it is near impossible to live off your trading earnings if you stick to “normal” risk management strategies that keep risk to 1-3%. How do I know this “fact”? I lived on a $25,000 account for years and IT STUNK!
I needed 10%-20% A MONTH just to earn a living wage, and that stress was a killer. It set me up for failure as I would feel like a chump if I “only” made 8% during a so-so month.
But here is what really got my attention as I went through the results….
44% of you are trading with $5,000 or less!
At that level of capital, you are hard pressed to be able to trade even one contract of the ES.
In fact here are the numbers…
You need $3,094 initial intraday margin to daytrade the futures, or $6,188 to hold one contract overnight. This means that you are trading an instrument which demands $100-250 in risk on an account with only 1-2k in draw down buffer. (Most brokers will shut you down when capital drops to $1,000-$2,000) Those numbers nearly guarantee your failure as the first real draw down you experience will blow up your account. You will lose EVERYTHING, and it will have little bearing on your skill or lack thereof… (Just a statistical reality.)
So… This news really made me stop and think. Because, as much as I believe in every idea, trading strategy, and method I put out there….
…If you follow the ideas I trade myself on a tiny account, you are going to fail…
You see, my “normal” trading style is what I believe will deliver the maximum earnings and best equity curve, but it is NOT appropriate for somebody trading with $5,000 as the inevitable draw downs will be larger then you can absorb. (Due to margin and contract size.)
So I went deep into the lab and created a new trading program designed specifically for the unique issues of traders with small accounts.
The Cash Bomb Sequence was created for the HUGE community of forex traders who are trying to make it with limited resources in a troubled economy. I broke all the rules and designed a small account strategy for just these trader’s needs. It is an innovative mix of aggressive risk management and easily learned setup sequences that will enable any trader to begin their own Cash Bomb Sequence right away.
It is aggressive and built around high risk/high yield setups that can deliver big percentage gains when there is trend. I have built a total educational package that will take you from total beginner to expert Cash Bomber in a very short time. To see the full product description and sample trades, please point your browser to the following URL…


May 29th, 2009 at 6:42 am
Bo,
I’m VERY intrigued by the Cash Bomb concept. I have attempted scalping the EUR/USD with a tiny account. My goal was to “learn” by trading with real money. I don’t have to paint you a picture of how that turned out. What was missing was the high probability methodology. I have no fear of executing in a disadvantageous risk/reward scenario. I’m ready to get rolling!
Thanks,
David