Newb question about equity and Wealth builder

Hey

I'm learning to trade with the Wealth builder on the daily chart. I'm starting to get a little hang on how to read candlestick pattern on when to act and not. So far I have never put up a trade that will risk me more than 2% of my account. But! My real question: In the document it says:

<quote>

"For those not inclined to try and trade the market with the 1 hour or 4 hour tunnel methods [or any other method or system for that matter], currency pairs should represent approximately 60 to 80 percent of your trading equity."

</quote>


I don't understand this. Could anyone please explain this to me? Does it mean I should risk more than 2% of my equity? As far as I had understood from other reading, that is a big NO NO ?

I am unfamiliar with the course you are using; however, don't risk that much of your margin at one time. Jeez, I scalp the news and I don't risk that much on trades that last less than 5 minutes quite often.

good luck

When I originally read the VWB doc I thought that Vegas' intention was to place this particular paragraph at the end of Chapter 3 right before he started to talk about trading the S&P using the S&P Daily method. Placing it at the end of Chapter 2 is confusing as you have noted.
(I could be wrong though )

Some brokers allow one to trade both the spot currency and S&P futures. So you would set aside 80% of your trading capital to trade the currencies and 20% to trade the S&P futures.
In other words, use 2% of 80% of your account as the risk on a currency trade.

Ahh Thanks for clearing that up for me