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CFTC/NFA Disclaimer
Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the
futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past
performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN > EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN
MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL
TRADING DECISIONS SHOULD BE YOUR OWN.
Power Hour
Table of Contents
Daily Market Analysis Daily Strategy Analysis (Live FxAlerts)Diversification in the Forex - Benefit or Not?Marcello Ducille’s Underground System DemonstrationQuestion & Answer Session
Diversification in the Forex
Diversification is a politically and financially popular term. In general, it is considered “good” without much further thought on the matter. But, is diversification in the Forex a “good” thing and what type of diversification is “best”
Diversification in the Forex
All Diversification is Good.
MYTH
Diversification in the Forex
It is important to understand your selections when attempting to diversify.
Ex. Going Long the GBP/USD, Long the EUR/USD, Short the USD/CHF, and Short the USD/JPY is all betting against the U.S. dollar… is this diversification or 4x the risk open on the same trade type.
A rose by any other color still smells the same, or pricks with the same thorns!
Diversification in the Forex
More is Better M
YTH
Diversification in the Forex
We have all experienced many instances when more is not always better. But, unfortunately, many traders still trade with
the following mind set ‘More pairs = Diversification = Safer trading’
NOT TRUE
Diversification may be a good practice, but it must be appropriately applied and more pairs does not alone equal diversification…mostly it just equals over leveraging of your
account and poor money management!
Closing Notes
Diversification is not a universal term for anything that involves more pairs. Diversification of your account is a very specific action relative to what you already have on your trade plan.
Most importantly…diversification needs to take into account the bottom line, strategies you add to your trade plan for any reason should be well tested to be profitable and need to be added into
your risk management every time.
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Underground System Demonstration
Diagram
Capital Preservation
Capital Appreciation
Capital Explosion
