ONLINE FX TRADING BUSINESS PLAN

Forex currency trading is a zero sum game and those traders with a trading plan and the
necessary discipline to stick to it will succeed over those that trade without one. To be on
the positive side of this game, start with a trading plan – it is your most important
weapon against your opponents.

Goal
The goal is to make $200 per day over a 20 day trading period/month ($3,500/month)

Market

Target market is EUR/USD and GBP/USD spot market. This is because these currency
pairs have the highest level of liquidity in the market, fundamental and technical analysis
on the pairs are readily available and the time zone for the currency best suits our local
timing. Trading style is day trading with all trades taking place between 8:00 am and
6:00pm Monday to Fridays.

However, on certain occasions attempt will be made to start trading earlier to take
advantage of volatility in the Asian markets.

Broker and Trading platform

Trading will be conducted on the FXCM Standard Trading platform.

FXCM is an online trading broker established in 1999. As of June 2009, there is in

excess of $600 million in customer funds trading on platforms offered by FXCM. Over
150,000 live accounts trade through trading platforms offered by FXCM from over 150
countries, with an average of 8,000,000 trades executed each month.

FXCM has received numerous awards from the investment community, including Best
Currency Broker from Shares, Best Retail Foreign Exchange Platform from FX Week
and Best Foreign Exchange Specialist from Technical Analysis of Stocks &
Commodities. In addition to currency trading, FXCM offers educational courses on forex
trading, and provides research through DailyFX.com.

Key strengths of this broker include:

 Lower Spreads
 Euro/U.S. dollar spread is frequently 2 pips, British pound/dollar 3 pips
 Trade on rates provided to FXCM by multiple global banks
 FXCM's monthly trading volume of over $365 billion drives price competition
 Fractional pip pricing facilitates the tightening of spreads even further
 No Dealing Desk Execution
 No conflict of interest between broker and trader
 No dealer intervention in trades
 Price providers (banks) do not see your stops, limits, and entry orders
 Competition reduces the potential for market manipulation by price providers
 No Trading Restrictions
 Trade during breaking news
 Place entry orders anywhere—even inside the spread
 Scalp the market
 Rollover transparency—all amounts are displayed in advance
 Receive positive rolls at all margin levels

Research and Fundamentals

Each day before trading, a trading plan will be organized for the day. Fundamental data
related to the markets will be researched before trading. This is to get a market feel such
as overall macro trends, world events, and upcoming economic data. Technical data
over the past several days will also be considered to figure out what technical movement
has been present.

Candlestick charts are very important for day-trading, therefore three major charts; 5-
min, 30-min and 1 hr. will be the tools used to identify the minor and Major trends and for
the day.

All relevant information will be gleaned from data and resources provided by various
websites eg. DailyFX, Forex Factory, Fx Street and FXCM

Strategy

The main strategy is to focus on establishing and trading the minor trends, trading
volumes with tight spreads. However, considering the amount of trading hours, a
broader view of the market, hence, major trends will also be considered. Western
technical analysis (Resistance/Support levels, Moving Averages) point to a general feel
of which direction the market is going, while eastern technical analysis determine/ time
entry and exit points. Although technical analysis is the basis for trading, if there is
fundamental information that clearly swings the market against the trend, the strength of
the reaction towards the fundamental data will determine the direction of trade.
Therefore the strategy in summary is:

• Determine whether the short term trend is bullish or bearish

• Check to see if there are any key psychological numbers and support/resistance
points in the near future
• If there are none, trade long or short depending on the short term trend
• If there are, hold trade until the market reaches those levels and look for a
reversal
• Only trade against the trend if there is evidence of a candlestick reversal pattern
with confirmation.
Internal Controls & Limits

1. Never trade during consolidation

2. ALWAYS close out a trade if the moving averages cross against a position

3. Try to achieve 30-50 pips on every trade. Stop set at+/- 20 pips

4. ALWAYS get out of a trade before major economic data is released

5. Don’t open a position within 30 mins of closing trading hours

6. Always get out of a trade the second you think it is going against you

7. Leverage/Margin: 10:1

8. Trade size: 100,000 units

9. Overnight positions: 100,000 units ALWAYS with a stop loss order

Start-up Capital &Cash Flow Management

Initial costs will be startup capital, purchase of computer equipment and communications
devices which are outlined as follow:

Initial Equity ($2,000 @ N152) 304,000.00

Internet Connection & Subscription 22,000.00

Total 324,000.00

Attached is an exhibit of a one (1) year cash flow projection including estimated profits,
all costs, and overheads

Account statements will be printed once a month and reconciled to trading account.
Excess over Initial equity will be transferred monthly to a home based account from
which all bills and expenses will be paid. Any balance thereof will be place in money
market instruments locally.

Resource Requirements
My business equipment requirements consist primarily of computer and communications
tools. I have all of the following resources requirements:
Communications: Mobile phone communication will be sufficient for both local and
international calls

Computers: 1 Hp pavilion Laptop

Internet: Internet connection to be provided by Direct on PC & MTN