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Master in forex trading - 15 minutes a day

Course Prerequisite

Forex Demo Broker Account (See below if you do not already have one) Passport or Identity Document and Proof of address not older than 90 days (You will need these documents for verification purposes) Your full attention Practice, practice practice!!! Forex Broker Demo Account In order to be able to practice the exercises in this course, you will need to open a demo account. A demo account is a practice account where you are able to trade live using fake money and not your own money. Once you are comfortable with a demo account, you can then deposit real money and apply what you learned while using a demo account. Here are the steps to follow when opening a demo account: Click on this link: Recommended broker. For the United States learners, follow this guide: Recommended US broker For the rest, let us continue. Click on the “Open Account” button at the top of the screen.

Fill in your details First name(s) – As per your Identity document Last Name – As per your Identity Document Country of residence – Should be chosen automatically if you are not using any proxy or VPN Mobile phone – Enter the correct number as this will be verified E-mail - Enter the correct e-mail address as this will also be verified Password – Choose a strong password with Letters, Numbers and Symbols (This will be your broker password on ForexTime.com) Click on “Send Pin” – A PIN will be sent to your cellphone and E-mail address. You may use any of the two PINs for verification. Enter the pin, accept the marketing consent and then click on “Register Now”. On the next page, enter all the necessary details to the best of your ability, Accept the agreements and click “Submit”

On the next page, select as follows: Account type – FXTM Standard Account currency – Any that you prefer Account leverage – 1:2000 Trading Account Password – Enter a strong password twice (This is different from your ForexTime portal login account that you set earlier. It will be your password to your MetaTrader account, more on this later) Click “Open Account” Next: Click on “Download platform”

Select the “Metatrader 4 Trading Terminal for PC” or “Metatrader 4 Trading Terminal for MAC” depending on your Operating system. Download and install the application. Go to your Desktop, you will see a ForexTime (FXTM) MT4 icon (Windows). Double click the icon and login. To find your login details, go to the e-mail that says “Congratulations! Your new trading account is now open”. Metatrader login (at the bottom of the e-mail) and use the Trading Account Password that you entered above. Should you need to install one for your phone, hover your mouse over the QR code, scan the QR code with your phone to download the platform. Go to your e-mail account that you used for registration. Open the e-mail that says “action required with regard to your verification” – see below! Click “upload”

Upload your Identity document as per the e-mail and your proof of address. Open a Demo account Click on “My Accounts” on the left-hand side, then select “Open New Account”

Select Demo Account. Account type – FXTM Standard Choose currency Account Leverage 1:2000 Complete the passwords fields Initial balance – any amount, I suggest 20000 USD Click “Open Account”

Your Metatrader Login details will be displayed Download the Platform just as you did above and login using the details given. You are now ready to continue with the course content.

Introduction

Do you want to trade forex for a living just like I do? If your answer is yes, then this proven and actionable, profitable, forex trading strategy can lead to consistency and confidence. Follow this course and you will become a master in forex trading. With confidence and consistency, your trading can be a lot more profitable because you will trade less and focus on money management. The best part is that you need only 15 minutes a day to go through the currency pairs that move in this Foreign exchange market. You will avoid the mistakes that many beginning and frustrated traders make. I made these mistakes and learned from them to become the profitable trader that I am today. How will this help you? Well, if I knew then what I know now, I would have reached my goal of profitability faster and would have avoided all the trading stress that I experienced. Losing a lot of money is not fun. With this course, you have the opportunity to avoid trading stress, reach your goal of profitability faster and you will not lose a lot of money. You will keep your losses small and maximize your profits. You will trade without the fear of loss. This strategy is proven and will work for those who are patient to wait for the setups and the triggers. You will have an average of two trades a currency pair. The value you will gain from this course will definitely change the way you look at the forex market and you will know that while it is not easy, it can be made simple.

And those who keep it simple will become self-empowered, confident and consistently profitable forex traders. Are you ready to become a self-empowered, confident and profitable forex trader? If yes, then let’s get started. Tip: Profitable traders find one or two strategies that work for them and they repeat it over and over again. In the trading world, repetition is a good thing. This is one of those strategies you can put in your toolbox as a trader and just repeat over and over again. There is no guesswork in this forex trading strategy. If you follow the simple trading rules for setup, entry, and exit. The only thing I ask of you is that you should be patient and wait for the setup and the trigger. Sometimes you will have to wait for days before a setup. If you can do this, you will enjoy the fruits of patience as a trader. For long term profitability, you don’t have to trade every day. The platform that I use is MetaTrader4 (MT4) and you will need MT4 too. The indicators used in this trading strategy are common on all MT4 platforms. Many good brokers offer this platform and all the necessary indicators. Use the MT4 platform that you downloaded above as a demo. Warren Buffet, a master in forex trading, follows the strict rules of his investing strategy. My hope is that you will follow these simple rules to the tee and make it happen for you and your family. You need just 15 minutes a day to go through the currency pairs that make the most money. There are 100+ currency pairs, 7 are the most profitable, but you can add three more to make it 10. *USDCAD*USDJPY*EURUSD*GBPUSD*AUDUSD*EURJPY*GBPJPY If you would like to use a simple, low-risk, strategy of making consistent profits, then keep reading.

Chapter 1

The money When I started trading, I made a lot of money and I lost it all. It was very frustrating, but I never lost my vision of becoming a successful trader. A false sense of confidence let me believe that I could do it without following my restrictive rules. For a while, I made lots of money doing so, however, you guess it right, I lost it all in just a few trades. You see, the market will do what the market wants to do. After a few years, I quickly realized that sticking to the rules is the way that successful traders make it happen. So I stopped and really started testing this plan and this strategy. I tried different plans before, but this one stood out for me. When I stopped focusing on the money and instead focused on the trading process, things changed dramatically. Then I transitioned from a lower time frame to daily and weekly, things improved exponentially. I got my trading capital ($25,000) by winning a competition (FXCM King of the Micro). It was a micro account competition. So the lot sizes were small. I decided to include the results of this competition so you can see that trading small lot sizes in the long term can build up a substantial account. This strategy won the competition, taking a $540 account to $6000+ in a month. See published results here. This result is to impress upon you that the journey you are embarking on is a worthwhile trip and to let you know that there is money to be made starting a forex trading business. Can you do it? Well, I do not know you. However, I know you are teachable and I will walk you through, step by step, to show you how to succeed. I can show you how to succeed, but you will be the one responsible for your success. Agreed? Alright, let’s continue. You have to see yourself succeeding before you even get started. If you can guarantee to follow the system as explained, I can guarantee you will begin to experience success. Keep practicing and practicing and practicing. The execution of this strategy should be flawless. If you can flawlessly execute this strategy every single time, you will see a huge improvement in your trading results. If you are a new trader, you will experience success faster than most traders. The secret t becoming a master in forex trading is to practice, practice, practice......... Focus on the process of trading, and the money will follow. Ignore the trading process and the money will quickly exit your trading account to the account of those who follow their trading process. Can Money Be Made In The Forex Market? *George Soros made €1,000,000,000 (1billion Euros) in 1 day *Larry Williams turned €10,000 into €1,100,000 in 1 year *Alex Gerchik, Day trader hasn’t had a losing year since 1999 *Ed Seykota started with €5,000 and made €14,000,000 in 13 years *My results in a month from €540 to €6000. You have seen the results from all masters in forex trading. And the rest, as they say, is history. What will your history be? Will you be our next success story or will you just read through this, throw it away and then head off to the next Holy Grail? There is no holy grail, but I promise you, if you can work through this and implement the simple trading rules, you will become a confident, self-empowered and successful forex trader. Trading is hard and difficult because no one can predict the direction of the markets you can only focus on your trading plan. You have to be aware of this truth before embarking on your trading journey. Therefore, I encourage you to believe in yourself and give yourself a chance to learn the right way. We are going on this journey together. If you are a beginner, you will be starting right. If you an intermediate trader frustrated with your results, your trading can be a lot profitable than what it is now. This trading approach will enable you to grow your account exponentially from year to year, enrich your life from the profits generated, providing you with more free time and you can trade stress-free and grow your trading business. This style of trading requires patience. Patience is the key to execute your trading plan flawlessly. And successful traders are traders who have a plan and execute that plan flawlessly. How will you make money as a master in forex trading? From statistics of this trading methodology, just from one currency pair-GBPUSD, for a year we generated an average of 20 trades and made 3680 Pips from the trades. Trading a standard lot size, that is $36,800/year, a mini lot size will be $3680 and a micro lot size will yield $368, from one currency pair. This is on average. Pip value in dollar differs slightly per currency pair. But don’t worry about it. Just use the average of a pip being $1 for the mini lot, 10 cents for micro-lot and $10 for standard lot size. Now that you know there is money in the trading business, let me explain the mistakes that most traders make and how to avoid them. These mistakes are made by traders repeatedly. I made them over and over again. However, I learned from my mistakes when I started evaluating my losing trades. Remember losing is counted as a cost in our trading industry. If you count the losses as cost, it is easier to emotionally detach from losses. Let me address some of the struggles and mistakes that traders make and how you can avoid them from now onward.

Chapter 2

Trading Mistakes I did a survey of traders from across the globe and this is the results that came in.

From these statistics, you can see that the top problems are taking profits too early, over trading, changing strategy too often and allowing losses to run. I made these mistakes and learned from them. This trading strategy is designed to solve these mistakes and struggles. As you pursue this strategy, I want you to keep these mistakes on site. Print these statistics and display them where you can see them while trading. Make a decision not to repeat these mistakes. The only way to avoid these mistakes is to follow your trading plan, the entry setup, trade management process, and the exit setup. How to overcome these mistakes Taking profits too early The remedy for taking profits too early is to stick to the exit rules of this trading strategy. If you don’t get an exit signal, just allow the trade to play out. The exit plan includes initial stop loss, profit target and how to get out if the trade did not reach the profit target and turned in the opposite direction. You will see this in the exit rules under the Proven Forex trading money-making strategy. Changing trading strategy too often Trade this strategy for at least twelve months and you will overcome the problem of changing trading strategy too often. Most successful traders find one or two strategies that work and they repeat it over again and again. It is a decision. Don’t worry about the drawdown periods. Just focus on executing this strategy. Forget the forums, unsubscribes from newsletters and stop watching more youtube videos on new strategies. You can watch on matters like psychology, but again the psychology is within you. If you keep a cool head and focus on this strategy, you will soon discover for yourself that it works. Overtrading In this trading strategy, you only check your charts once a day. It takes about 15 minutes a day to look for setups, triggers and manage your trade. You will not be sitting in front of your computer following every move in the market. You will avoid over trading following this trading strategy. I over traded when I was trading of shorter time frames like 4 minutes and 1 minute. Now I am laser-focused and only trade when there are setup and a trigger. Allowing losses to run With this trading strategy, your initial stop loss takes care of the losses. You will not lose more than your 2% maximum risk per trade. Your edge is placing 20 trades following the strategy as outlined. If you can do so, and never move your stop loss, but follow the plan, then you will not allow losses to run. Profitable traders have learned this lesson. There is no way you can allow the losses to run if you follow this trading strategy and execute it flawlessly. That is your edge. Not following my trading plan You need to develop the self-discipline to follow your trading plan. Do not compromise the answers to the questions regarding the setup and the trigger. It is a decision and your intention should be to follow the plan. Be intentional with your trading. Decide that you are going to stick to the rules and visualize yourself sticking to your rules every day before your trading hour. My time is 23:00 pm every day. So I take some time about 22:00 visualizing how I am going to stick to my rules by focusing on answering the questions. Any discrepancy in the answers, I ignore the trade. Nobody, no system can remedy this mistake, only you. Ask yourself this question every time you want to go away from your plan. “Is this part of my plan?” If the answer is no, then don’t do it. Remember to treat this as a business. Focusing on too many currency pairs You should be looking at seven currency pairs with this strategy. You can look at 10 within 15 minutes because it is long term, you do not really have a problem of trading many pairs. It’s OK, however, if you are trading of the lower time frame, like 5 minutes, then you will be very confused even to monitor 4 currency pairs. I know a very successful forex trader who trades only the GBPUSD. He does not trade anything else. He is laser-focused on this pair and does well. You can also decide on limiting your trade to just one currency pair and become an expert in that pair. This problem arises when you are trading shorter terms. When I trade short term I only focus on one or two currency pairs. It is also a decision that I made. Therefore make a decision to stick with the daily time frame to overcome this problem. Listening to the opinions of others When you start trading and you focus on your plan, there will be no need to listen to the opinion of others. You will be deliberate with every trading business decision that you make. I overcame this problem, by unsubscribing from newsletters that I no longer needed, stopped going to forums and stopped listening to the talking heads on Bloomberg or CNBC. If you can focus on the trading plan, there will be no need to check with other people. The reason you check with other people is to give you a sense of confidence, you only need to focus on your trading plan. If you don’t have one, it is easy to tune in to listen to others. But this strategy has a clear plan of action for you. Just trade the plan. Chasing trades Chasing trades is also very common with day traders. The only way to continue struggling with chasing trades is to ignore your trading plan. If you stick to the trading plan of this strategy, you will never find yourself chasing trades. Trading becomes fun, because you know if you miss a trade, there will always be another trade. You chase trades when you sit in front of your computer all day and follow all the normal ups and downs move in the market. No need for this, if you trade just 15 minutes a day. The bottom line is this when you are using a proven trading strategy like PFTMMS, you will avoid almost all the mistakes and struggles that traders face. Stick to the rules and implement the strategy flawlessly for at least 12 months. Most of these mistakes are made because traders trade on a short term basis. If you are a beginner in forex trading, then trading off the daily charts just 15 minutes a day will help you overcome emotional trading and put you in the path of profitability. You will avoid the adrenaline rush that forces traders to make these mistakes, watching the charts all day long. If you hear that 90% of traders lose money in the markets, these mistakes are the reasons why. So you are already ahead of most traders and knowing this information and how to remedy the mistakes. So let’s get started with the trading business.

Chapter 3

Your Trading Business “A failure to plan is a plan to fail” - That is the mantra of a master in forex trading. Trading is a business and you must treat it as such from the very beginning. It will serve you well. Have you ever seen anyone with a successful business without a clear plan to reach their business goal? Many traders start out on the wrong path by treating trading as a hobby or just gambling, and playing around, wishing something happens. Do not make this rookie mistake on the road to becoming a master in forex trading. Trading is a business and if you treat it as a business, then following your plan will make sense to you. But if you treat it as a casino, then you will not follow the simple plan laid down on this course. The trading business has real running costs and requires a business plan and business structure to be able to accomplish the business goals. Revenue In A Forex Trading Business Profit from trading will only happen if your revenue is more than your costs. That is how business works. Our winners yield profits and our losses yield costs. As you start thinking in these terms, you will not attach your emotions to your losses, but you will treat your losses as business costs. Profitable businesses minimize costs and maximize profits. This knowledge alone will allow you to follow your trading plan and structure every time you approach trading without the fear of loss. If you allow your losses to be more than your revenue, you will go out of business. In trading, like in any other business, keeping the costs low is your goal. Experienced and profitable traders keep their losses small and allow their profits to run. You have to become a master of small losses. Profitable traders manage their losses and only focus on the trading process because they understand their system and are not afraid of losses anymore. Losses Will Teach You A lot About Your Business As a trader, your losses, as mentioned earlier, are the most costs you will incur in your business. The best thing is that you can effectively manage the losses. Losing is not fun and you will find it very unpleasant, however, this course is designed to help you cut the losses short and let the profits run. Reporting losses is not always easy for any business. While it is not pleasant to lose money, in the forex trading business, successful traders have learned to evaluate their losses, to gain great insights into their trading. You should do the same too. You will learn more from the losses than from the winning trades. I read this Oliver Valez quotes some time ago and have never forgotten it: “Our wins, although enjoyable, teach us nothing. It is our losses that lead the way to trading mastery.” Do you know why? Well, it is because your losses will tell you if you are sticking to your rules or not. You can make your losses work for you, by evaluating every loss. You will learn a lot about your business by doing this exercise either every time you experience a loss. Here is how you do it. When you experience a loss, evaluate the trading process, before you place the next trade. The reason why the trade fails will tell you a lot. Here are the two main reasons why a trade will fail You followed the rules to the tee, however, the market does its own thing and fail to go in your direction You completely fail to follow the rules in the trading strategy This evaluation must be done every time you lose a trade. If you followed the rules and the market does its own thing and fail to go in your direction, though you lost the trade, you indeed won the trade. You can keep your head up high, give a tick on your book and get back in the market and place your next trade. On the other hand, if your loss was based on point number two, meaning you failed to follow the rules then you may be in big trouble. Go back to chapter two and read how to overcome the struggle of “not following your trading plan” Follow the recommendation from chapter 2 and make a commitment to learn from your mistake and make a decision never to make that mistake again. Remember the quote by Oliver Valez, “Our wins, although enjoyable, teach us nothing. It is our losses that lead the way to trading mastery.” Don’t beat yourself up for making this mistake. I used to beat myself up for stupid mistakes that lead to losses but did not worry about it when it generated profits. But this was very wrong because it gave me a false sense of confidence. If you win a trade without following the rules, you may be domed in the long run if you continue ignoring your trading rules. Don’t do it, just commit to not making the mistake again. Strong self-confidence to execute your trade flawlessly is the key to trading success. Besides your losing trades, there is spread from your broker. Every trade you take costs you something small. The more you trade, the more costs you will incur. Your broker wants you to trade more, but they will not force you to trade more. Some brokers have commissions as well. Include all these to forecast your revenue in your trading business accounting. You will see that an average of 20 trades per currency pair a year will give you 140 trades a year from 7 currency pairs. However, if you analyze my results above, you will see that I took 167 trades for a month. So, day traders incur more costs than swing traders who trade from a daily chart at the end of the day. Swing trading will keep your spread and commission costs low. As an entrepreneur, you want to minimize costs and maximize profit. This course is designed to help you keep the costs low and maximize revenue from your trading activities. That is how a master in forex trading would do it! Trading Environment or Home Office It is very satisfying to trade in a clean environment. Some traders enjoy trading from multiple screens and some trade using a single computer or laptop. I do trade from a single screen. That is the only cost you really need in setting up your trading environment. Keep your trading office clean and clear. You can work on your laptop, but I still own a desktop computer. I find it more comfortable than a laptop. Choose whatever you prefer. Just be comfortable when you trade. Trading Plan of a master in forex trading Have you ever met a successful entrepreneur without a clear business plan? No, you will not meet any. Trading is also the same and you will never meet a successful trader without a trading plan. So if you are going to succeed, here is a simple plan you can adopt for yourself. Set goals for your trading business. Your goals must be specific, measurable, attainable, realistic and timely. For example, 200 pips a month on one currency pair is a good target. This is a target that is attainable. What you should do next is create a trading plan if you don’t have one yet. A simple, yet concise, a trading plan is necessary for running a successful trading business. Work on your trading plan by adopting the example below. What should you include in your trading plan? This is a trading plan example for you to adopt

Set Your Trading Goal

Use SMART goal tool to guide your trading goal setting. Remember, high performance in any field is accomplished by people who set clear goals. SMART is an acronym that stands for: Specific - Your goal must be specific. For example, instead of stating, I want to make more money from my trade, which is very vague, you can state, I want to make 4000 PIPS a Year. Measurable – New traders make this mistake all the time, they want to make a lot of money in the market. But you cannot measure a lot of money or a fortune. Your goal must be measurable. If your goal is measurable, then you will know when you’ve reached it and be able to monitor your goal to know when you are close to reaching it. Achievable – Your goal must be achievable. Let it be within your reach based on your skills and abilities. Let’s say your goal is 20 PIPs a day. You have a higher probability of reaching this goal than making say a million dollars in your first year. Realistic – Is your goal feasible? It should be challenging but within your capabilities. There are many traders who make millions of dollars a year. However, this will not be a realistic goal for a new player in this market. So set a goal that is realistic. Yes, like 400 PIPS a month. Timely – Time is an important factor. You see realistically, you can say 400PIPS a month. Now you are giving your goal a time period within which to reach it. Without a time limit, you may not achieve your goal. So let’s focus on the goal of 400 PIPS a month as we continue with this specific, measurable, achievable, realistic and timely goal. The goal of my trading account is to make 400 Pips a month and to maintain it. I will not withdraw any money until I make 4000 PIPS. (This is a simple goal) and that is what I want you to do. Keep it simple.

Market – What will you be trading?

I will be trading the spot forex market. AUD/USD,EUR/USD,EUR/JPY,GBP/USD,GBPJPY,USD/CAD and USD/JPY. These are the most traded pairs. Limiting to a few pairs will keep me focused. I will trade only at the New York Close (09:00 pm GMT which is 23:00 Central European Time). I will hold my position until there is an exit signal, which could be my stop loss, my target, or the appearance of an opposite signal. Business Work Week I work Monday to Friday and take all the time off during the day and check my charts at New York Close. Trading Style/Time frame I will be swing trading and focus on trading two charts: the daily chart and the weekly chart. I use the weekly chart to see the bigger picture and the daily chart to identify entry levels for my positions. Analysis At the close of the New York session each day, I will take a look at the economic calendar of the forex market for the day ahead at dailyfx.com. I will pay particular attention to fundamental data that could affect the trades that are open and currency pairs with potential trading opportunities. I will check the OsMA, 8-day WMA, 10-day WMA and Fractal indicators on my chart. These four parts of the trading plan are detailed in the trading strategy as will be explained in Chapter 6. Your plan should include the specific chart setup, the general trading rules, the specific entry rules, and the specific trade and money management rules. As you work on your business trading plan, ponder on questions like: What rate of return do I want per year? Do I want to trade long term or short term? Can I handle the intellectual and psychological demands for this profession? Do I want to trade for a living or just make some money on the side? Which full-time trader can I emulate and why? Do I really need a mentor in this trading business? Most successful traders have figure out the answers to all these questions, they are very relaxed and their plan is their business. Following the plan is their job. To become a successful trader, you need to complete your plan and develop the self-discipline to follow it. That is all there is to successful trading. As you trade every day, write down your thoughts and keep a journal. Keep a Trading Journal Keeping a trading journal is an important part of your trading business. Journaling your trades will help you develop good habits. Help you spot mistakes, and help you improve upon and repeat the behavior that leads to profitable trades and avoid behavior that leads to losses. Remember the Oliver Valez quote you read earlier: “Our wins, although enjoyable, teach us nothing. It is our losses that lead the way to trading mastery.” The only way you can look back and analyze your losses is by keeping a journal. This trading strategy makes it easy to keep a journal because you have very few trades and the trades last a few days. What should you include in your trade journal? You should include completed trades from entry to exit, stating the reasons for entry and the reasons for exit. Again, this will reveal important information regarding your trading business. It will show you if you are conducting your business with diligence. This is the difference between winning traders and losing traders. Which one would you like to become? Let’s look at the timing of your trades.

Chapter 4

Market Timing (End of day) Analyzing my results, you will notice that I traded a shorter time frame. However, I will be the first to admit that market timing in a shorter time frame is a skill that most experienced traders have learned over time. It is a very difficult skill and it messed up my trading results when I got started. Therefore, if you are still a struggling trader or a beginner, this strategy should be executed in a daily time frame. Working in a longer time frame like daily allows you to trade without all the noise that is generated in a shorter time frame. So to become a successful trader, I highly recommend you trade this strategy on a daily chart. I do trade on a daily basis from the 30-minute chart. However, the bulk of my income comes from trading the daily charts which is the strategy in this course. With this strategy, you can allow your money to work for you, while you do the things that you love. This is how the wealthy make money, without trading hours for dollars. You are well off to becoming a master in forex trading. When you trade from a shorter time frame, like five minutes, you are still exchanging time for money, but that may be the structure that suits you if you have the time. On the other hand, when you trade in the daily or weekly time frame, then you can allow your money to work for you while you go about your life and pursue other interests. You will avoid stress, overtrading, emotional trading and all the common mistakes that most beginning and frustrated traders make. You need just 15 minutes a day to look through the charts of all seven currency pairs. You start looking at the charts 15 minutes before the close of the day and you will be able to pinpoint the charts of interest at the close of the day.

You will look at your charts just once a day, at 23:00 Central European Time which is 17:00 Eastern Standard Time. You can convert this time to your time zone to trade this strategy. Look at a broker whose new day candle begins at 17:00 Eastern Standard Time. For European, African and Asian traders, you can open an account with this broker. Forex trading can be simple, but too many times we complicate it. Don’t be a victim of this complication. Watch your chart once a day, if you find a setup based on the trading rules then you enter the trade. If there is no setup, walk away and wait till the next day. So, trading this strategy will keep your trading simple, timing will be effective, emotions will be in check and you can focus on executing, trade management, making PIPs and keeping PIPS. If you don’t want to learn the strategy yourself and just want someone else to send you the signals between 23:00 and 00:00 CET, then visit here and subscribe, otherwise continue with your education.

Chapter 5

Charting Tools Charts tell us what we need to know. Charts do not lie. The chartings tools that are used in this system will help us get in and out of our trades. All of our entry and exit points are based on technical analyses. There is no speculation on your part on what to do. The rules are clear, there is either a setup, a trigger or there is none. You will enter the trade only if a combination of factors line up in your favor. Markets move when there is an imbalance between sellers and buyers. The combination of indicators and the price action helps us to pinpoint imbalance. For example, if the price has been going up, meaning there are more buyers than sellers, we will be looking for a scenario where sellers begin to return to the market. As traders, our job is to find the right time when an imbalance is happening and a change in power between the sellers and the buyers have occurred and momentum is building. The indicator combination and price action will lead to precision, giving us the edge that we need to succeed. Candles at the end of the day show the visual representation of what happens during the day. If price closed above the open, then the bulls (buyers) are in control for that day. The blue candles are bullish.

On the other hand, if the price closed below the opening price, it indicates that the bears (sellers) dominated the day. The white candles are bearish days.

Your job as a trader is to find the dominant group at the right time and trade with that group. I use the MT4 trading platform and it has many in-built indicators including the three that are used in this strategy. There is no perfect indicator however we have discovered that the combination of these three indicators works best for this trading strategy. Together with price action, they will keep you out of ranging markets and let you get in when a trend is developing. The Linear Weighted Moving Average, Bill Williams’s Fractal and the OsMA are the three indicators that we use in this system. Let’s begin by selecting the Linear Weighted Moving Average

Charting tool Linear Weighted Moving Average (LWMA) Moving Averages (MA) are mathematical items that add up prices during a selected time period and average them out. This eliminates the noise that occurs as the candles print. And we can see the overall direction of the markets from the moving average slope. There are different moving averages - simple, exponential and weighted. You can use any, but I prefer you to use weight for this system. Let’s add the Linear Weighted Moving Average to a chart. Follow this on your own MT4 platform. 10 LWMA apply to open and a shift of 1 See the chart after adding this indicator from your MT4 platform

Linear Weighted Average 8 applied to Close. See the chart after adding the second moving average also linear weighted. This time it is applied to close and no shift.

Those are two moving averages used in this very reliable trading strategy for consistent profit. Charting tool Bill Williams’s Fractal. There is a down fractal and an up fractal. We use the fractal in our system as points of stop loss. Candlestick combinations for the emergence of Williams’ fractals: *up fractal: set of 5 (at least) consecutive candles, where the average has the highest max; *down fractal: set of 5 (at least) consecutive candles, the average of which has the lowest min. See the chart as we add the fractal

Charting tool OsMA The OsMA which is Oscillator-Moving Average is a technical indicator that we use to pinpoint trend reversals and momentum. Other traders may use it to signal overbought or oversold, conditions in the markets. We have developed our own effective use of OsMA which is different from what the masses use. When the OsMA indicator - histogram is positive, we look to buy if the trade setup occurs. If the OsMA indicator-histogram is negative, we look to see if the trade setup occurs. See the indicator on the chart.

Our chart is complete. It is pretty simple. We have two moving averages. Linear Weighted Moving Average 8 applied to close, the moving average Linear Weighted Moving Average 10 applied to open and shift 1, the fractal and the OsMA. Remember with this strategy you need just 15 minutes a day, you can and will catch large market moves by entering the markets with precision, just when a trend is about to begin. Let’s get started with a detail explanation of the Proven Forex Trading Money Making Strategy (PFTMMS). Are you excited? After explaining the system, we will go through the daily charts of GBPUSD for two years to reveal setups based on the system, so you can follow on your historical charts too. This backtesting together is very important. You will see what is possible by sticking to the rules of this trading system.

Chapter 6

Proven Forex Trading Money Making Strategy (PFTMMS) A complete trading strategy is made up of the Entry Strategy, Trade Management Strategy/Money Management, and the Exit Strategy. We are going, to begin with, a step-by-step technique for trade entry. The most important step of any trade is the entry. If you get the entry right, your trade is 80% done. The remaining 20% consists of trade management and the trade exit. Let’s get into the entry rules. These rules are important because they determine your success as a trader if you follow them. Every single trade you place exposes your hard-earned cash to losses. What does that mean to you as a trader? It means you are in the driver’s seat and have to watch your capital like a hawk. Our approach is systematic and streamlined and control is completely in your hands. Be sure to trade wisely, invest your money in the right way to minimize risk and maximize profits. Every entry will include an entry price, an initial stop loss, and a profit target. The entry will either be a Buy or a Sell. Let’s delve into the important step of entering the trades in forex using a technique that has served me very well as a forex trader. A Step-by-Step Guide to Entering Trades Like the Master Trader All entry should be done at the open of a new daily candle at 23:00 CET which is 17:00 EST. You can flip through all the seven charts within 15 minutes. At 23:00 CET switch your machine on and start looking at your charts. You will either be closing open trades, managing open trades or placing new trades. Entry Rules to Buy At the end of the day at 23:00 CET and a new candle opens, answer the following questions. If you answer yes to all the questions, then you can enter the trade. *Is the low of the candle above the 10 Weighted Moving Average? *Is 8 Weighted Moving Average above the 10 Weighted Moving Average? *Is the OsMA positive? If the answers to all three questions are yes, then you have a setup candle to buy, but not the trigger to enter the trade. *Is the close of the setup candle equal to or less than 60 PIPS from the 8WMA? If the answer is yes, then the setup candle also qualifies as a trigger. You can enter your trade. If the close of the setup candle is further than 60 PIPS from the moving average, then place a pending buy order of 60 PIPS from the 8 WMA. Where do you place your initial stop loss? (Low of last down fractal) When you enter your trade, place the initial stop loss at the low of the last fractal. And place your target at 1.5 times the initial stop loss. (This is one way to exit the trade, see details on the exit strategy) Manage your open trades accordingly and shut down your computer and walk away till the next day at 23:00 CET. Let’s look at a chart example, so you can understand the rules. It takes a minute or two to see this on a chart. That’s why you can flip through 7 to 10 charts within 15 minutes. BUY Entry Chart Example.

You can see how clear this example is. Check the rules against this trade. At point A, the low is above the 10 WMA check, the 8 WMA is above the 10WMA check and OsMA is positive. There was no trade from the beginning of the month of April 2015. Setup occurred at point A, after 12 days of trading without setup on this pair. The setup candle did not qualify per our trading rules for entry. So we placed a pending buy order at 1.4860 and this was triggered 3 days after the setup candle. At point D, 6 days later, the profit target was triggered. This is the simplest form of trading. From setup to profit target was 9 days. You waited patiently and you got rewarded with a hefty profit of 444 pips. Can you repeat this over and over again? I am sure you can. I trust that you will follow these simple rules and make it work for you. What do you do every day at 23:00 pm after placing your trade, you simply check for new setups and manage your open positions if you have trades open. When price moves half of your initial stop loss in your favor, move your initial stop loss to breakeven. That is all the work you have to do when you place your trade. Entry Rules to Sell At the end of the trading day at 23:00, answer the following questions. If you answer yes, to all the questions, then place your sell trade. *Is the high of the candle below the 10-LWMA? *Is 8 WMA below the 10-LWMA? *Is the OsMA negative? Is the answers to all three questions yes then you have a setup candle to sell, but not the trigger to enter the trade. *Is the close of the setup candle equals or less than 60 PIPS from the 8-LWMA? If the answer is yes, then the setup candle also qualifies as a trigger. You can enter the trade. If the close of the setup candle is further than 60 PIPS from the moving average, then place a pending sell order 60 PIPS from the 8 WMA. If any of the answers are are no, then you skip and go to the next currency pair. SELL Entry Chart Example:

At point A, the high of the candle is below 10 WMA, 8WMA is below 10WMA, and the OsMA is negative, therefore there is a setup to go short. However, we have to check if the setup qualifies as a trigger. And yes, it does qualify as a trigger because the close of the setup candle is less than 60 PIPS from the 8 WMA. A sell trade is entered at market price and as you can see from the chart. Within 3 days, the target was triggered and you get rewarded with 294 PIPS. There is your holy grail of trading, a profitable yet simple way to enter the forex market like the Master Trader. Be patient and your waiting will pay off. A Step-by-Step Guide to Manage Trades Like the Master Trader We have already learned that losses are part of the trading business. We treat the losses in trading as business costs. Since costs are a permanent part of running a business, and successful businesses manage to minimize costs and maximize profits, your job as a trader is to manage the losses and keep them small, so that you can maximize your profits. One of the struggles of losing traders from our survey earlier is allowing the losses to run while cutting the profits short. On the other hand, successful traders cut their losses short and allow their profits to run. This is where trade management comes into play. How do you manage trades such that the losses are cut short and the profits run? Let’s look at the initial stop-loss that we placed in our last trade example. Initial Stop Loss The initial stop loss will guarantee that you never take an unexpected loss. That means, whenever you place a trade, your initial stop loss does determine how much you invest in the trade. In the proven forex trading money-making strategy, the initial stop loss is placed above the high of the last up fractal before the setup candle in a sell setup as seen in the chart point B. This gives you an assurance that if this trade fails as some will then you know precisely how much you stand to lose. This is acceptable as the costs for your business.

The initial stop loss is in this sell trade example is 196 PIPS from the entry and this gives the trade enough room to run while keeping the initial stop loss at a minimum. Keep your eye on the chart, at the close of day 2, the trade had moved about 126 pips. In managing this trade, the initial stop loss is moved to lock in 5 PIPs in profit. So whatever happens from this point, this trade will still end up a winner. If the trade moves a full 196 PIPS in your favor, move the stop loss to lock in half of that move which in this case would be 98 PIPS. This will enable you to trail the move until price triggers the profit target or price pulls back and hit the stop loss. This is the way to let the profit run, while cutting the losses short. In this example, the target was triggered within three days. In a buy setup, the initial stop loss is placed on the last down fractal before the setup candle for a buy setup. Examine the chart and you will see that the initial stop loss was placed at point C.

This buy trade also closed in a healthy profit. Placing your stop loss this way gives the trade enough room to play out and in this case, it did as expected. So initial stop loss is like an insurance policy for your trading business. Use the initial stop loss to protect your capital. Now we are going to look at moving your initial stop loss to breakeven and finally, we will look at trailing stop losses after reaching breakeven level. You need to learn this methods in order to become a master in forex trading. Getting to breakeven How soon should you move your initial stop loss to breakeven? You move your stop loss as soon as it is safe to do so and you are going to move it in one move. In the sell example chart, on day 2, the initial stop loss was moved to 5 PIPS below breakeven. This gives the trade room to play out while protecting profits. What do you do from breakeven? Let’s take a look at trailing stops. Trailing stop losses after reaching the breakeven You place the profit target at 1.5 times the risk. For example, the buy trade example had about 296 PIPs in stop losses. So the target was 296 + 148 giving you a total of 444 pips, the buy trade example we examined earlier. Let’s look at it again.

Within 7 days the profit target was triggered. So how do you trail your stop from the breakeven? If your trade moves full 296 PIPs from your entry, move the stop loss to half of the move to lock in 148 PIPs. This will enable you to trail the move until the profit target is triggered or price pulls back and hit your stop loss. This is the way to let your profit run while cutting the losses short. In this example, the stop loss moved one more time from the breakeven point to lock in 165 pips on day 5 of the trade and the profit target was triggered on day 7. See the chart. Trade management is about managing your stops to get out of losses fast. Immediately the market gives you an opportunity to move that stop loss to break even or lock-in 5 pips, do not hesitate. Now let’s consider the exit strategy. A Step-by-Step Guide to Exit Trades Like the Master Trader Profitable traders are master traders, because they’ve mastered the skills of entering the market at the right time, the art of managing the trades and they’ve mastered the art of exiting the trades with maximum profits or small losses. After this lesson, my hope is that you too will be able to exit your trades like the Master Trader with maximum profits or very small losses. Let’s now see how to properly exit trades so as to maximize the profits the market offers. The example we used already from the sell trade of 3rd March 2015 is a good example to illustrate the exit strategies. The rules of the exit strategy are very important because it leads to capturing the big moves in the market. Exiting Rule Knowing what to do at every stage of the trading process will enable you to act with confidence. If you know what to do at the end of each day at 23:00 pm CET, you will start acting with confidence and you will start trusting your trading system. The exit rules are as follows: The three ways to exit a trade First, if the price moves in the opposite direction than what you expect and hit your stop loss. That is OK. You’re out. Evaluate your trading process. If everything went according to the rules, then you succeeded though it is a lost trade. Your goal is to enter and exit a trade based on your rules. So a loss is not always a loss. If you followed your rules, this loss is actually a win. Secondly, if the price moves in the right direction and hit your profit target then great. This is what you will experience most of the time with this strategy. Within a few days, your trade will hit your profit targets. Let’s look at the sell example again.

I like this scenario a lot. This is the reward you will get if you are sincerely willing to get it done, by sticking with the rules no matter what. The third scenario will occur when a signal in the opposite direction is generated while the trade had not reached the target or has not hit the stop loss. In this case, you exit the trade and wait for a trigger to open a trade in the opposite direction. This will happen, but not very often. If you stick to these rules, you will cut your losses short and let your profit run. In this case, the profit target was hit within three days of entry. We will definitely come across the other scenarios when we look at the two years walkthrough of the GBPUSD currency pair. Now that you have all the rules of entry, trade management, and exit, let’s begin the walkthrough. Pay attention to the trade setups, and follow them on your own daily chart. Remember: practice like a master in forex trading! Before we go into the two years of backtesting the GBPUSD, let me share two things which are very important for your success. First, you have to believe in yourself and promise yourself to follow the trading rules as stated. This will require a lot of practice on your part. When you follow the trading process, you will soon become confident that it works, even if you lose some trades. We are going to talk about Risk Management and Self-Discipline

Chapter 7

Risk Management and Self-Discipline Risk management is one of the skills you will have to develop quickly as a trader if you want to become a successful forex trader. Do it from your first trade. Add this to your trading plan. I have kept is simple here so that you understand how to calculate it for every trade. Never risk more than 2% of your equity on any one trade and the maximum open positions total risks should be 6% or less. So if you have 2% on any one trade, then you can only have 3 trades maximum. However, if you have your risk at 1%, then you can have 6 trades maximum open. You can trade micro-lots, mini lots or standard lot sizes in forex. This will have drastic consequences for your trade. To keep it simple, when you trade 1 micro lot, a pip is about 10 cents and 1 mini lot a pip is $1 and for standard lot size, a pip is $10. You will calculate your lot size based on the stop. For example, if you trade 5 mini lots, then 1 pip will be $5. If you trade 5 micro lots, then 1 pip will be 50 cents. If you trade 5 standard lots, then a pip will be $50. So it is very important you trade with the proper lot size. Let’s say for the sell example we saw on the chart. The entry was at 1.5355 and initial stop loss at 1.5555 and target at 1.5055. If you have an account size (equity) of $10,000, 1% of $10,000 is $100. So your risk on any open trade should be $100 or less. For a 100 PIP SL, here is how you will calculate your lot size For a stop loss of 200 PIPS, you will be trading 5 micro-lots. This will give me 50 cents per PIP and 50 cents times 200 is $100. However, since the trade closed at a profit of 300 pips, you made 300 X 50 cents, so you made $150 in profit. The trading size is a very important factor in risk management When you trade large lots of sizes, it could potentially increase your profits however, you run the risk of losing big when it goes against you. You can use this position size calculator here. You should bookmark the position size calculator page because you will need it every time you have to place a trade. Follow this simple trading risk management calculation and you will survive another day to trade. With a 1% risk on any giving trade and a maximum of 6% open trade that means you can only have 6 positions open at a time. If you want to spread the risk and open more trades, then bring down your risk to 1% on any giving trade. This will give you the opportunity to open more positions without increasing your risks. Self-Discipline The Merriam-Webster dictionary defines discipline as “control gained by enforcing obedience or order.” Discipline can be enforced by authority however success in any area of life is possible for those who possess the trait of self-discipline. Trading is no different. Every successful trader possesses the trait of self-discipline. In more than 10 years of trading, I discovered that self-discipline is gained by simply following my trading rules. If you would do the same, you will become a self-empowered, confident and successful forex trader.

Chapter 8

Back Testing the Proven Forex Trading Money Making Strategy on GBPUSD We are going to look at several illustrations from the charts beginning from January 2015 until December 2016. Open up your MT4 platform, so you can follow along. See the labels on the chart. Follow these trades. Can you come up with the reason why the trades fit the rules? I have marked the entry and exits, with PIPS gain and pips lost in all the trades. You can use the rules to determine why those were entries and exits. This is GBPUSD for 2015 and 2016. I will explain the first chart, and you will explain the remaining charts. Get a book and work through the charts with me. Copy the rules or print them out, so as we work through the charts, you will look at the rules and see the setups. If you do this exercise, you will begin to picture these trades going forward as you improve your analysis. As you follow these trades, keep an eye on the candles at the beginning of a new month. Do you see how many signals occur at the beginning of the month? About mid-month, you can see some pullbacks and later continuation. So note tall these observations. Make this one of your standard strategies even if you are someone who likes more action and thinks your style is day trading. The long term trades will enable you to catch the big moves in the market and our goal here is to help you become a successful forex trader. Chart number 1 January to March 2015

The first setup was triggered during the last week of December. You will hear traders say it is not good to trade during the holiday period. It is true however, this strategy is great and does not care about the noise that day traders experience. When there is a setup, take the trade, you never know which trade is going to give you that huge profit. Trade number 1 opened in the last week of 2014, closed on the third day of trade in 2015 for a good profit of 330 PIPS. Fifteen days went by without a signal. This is the beauty of this strategy. Don’t worry until you have a good setup. See the second trade came around 15 trading days after the first trade with a profit of 255 pips and the trade lasted 14 days, without all the trading stress that most traders experience. See trade number 3, a sell was a fast trade. Within 4 days and closed at 300 PIPS. As you can see you had just 3 trades on one currency pair in 3 months giving the trader a total of 885 PIPs from 1 currency pair. Remember, you have 7 or more currency pairs to trade. Let’s look at the second chart. Your job is to figure out why the trades were taken. I have some labels on the charts. I will just give you a summary of each. The more charts you look at following the trade setups, the more you will begin to see as they unfold at the close of the day. Chart number 2 April to September, 2015

This chart is from April to September of 2015. There were a total of 8 trades, 7 winning trades and 1 losing trade for a total PIP gain of 1547 PIPS. Now after 9 months of trade, you have 11 trades and a total of 2432 PIPs. Awesome! You keep your expenses low because you enter high probability trades. Chart number 3 September to December 2015

The third chart showed four profitable trades and two losing trades. The total PIP gained for these trades totaled 757. So for the year 2015, the total PIP gained totaled 3189 PIPS. This is just 1 currency pair. So imagine right now what this means for your trading business. What if you had an average of 2000 PIPS per currency pair? It will total 14,000 PIPS. If you trade a standard lot per trade this is $140,000. This is something you can do in a year with trading the Proven Forex Trading Money Making Strategy. Let’s look at more charts. Chart number 4 January to June 2016

Take every trading and analyze it against the trading rules. This chart is from January to June of 2016. There were seven trades in total. In this case, they were all winning trades. The first trade occurred on the first trading day of 2016. The seven trades yielded 1800 PIPs. Let’s look at the last half of 2016. Chart number 5 July to December 2016

The last six months of 2016 gave us 8 trades in total. All trades were positive. The total PIP gained 345 +150+5 +330+345+315+200+250. This totaled 1940 PIPS. Alright, you have seen what is possible. The total PIP gained in 2016 trading only GBPUSD is 3740. You will achieve this kind of result when you continue to improve on yourself. Personal development in trading is very important. Using visualization techniques to see yourself as successful will enable you to stay strong and keep going when you experience drawdown in your account. Profitable traders still make mistakes however they’ve learned to relax when trading. They will plan every trade focusing on executing their plan flawlessly. As I became a professional forex trader, I realized that my growth actually mimics my personal growth. I am becoming a high performer in other areas of my life. I believe this is due to the routines that I started following when I made the decision that I love trading and I would love to pursue it as a career. So we will look at Personal Development to conclude this book and in it I will share with you my daily routine, in the hopes that you can read through and come up with your own daily routine, to help you become a better trader.

CHAPTER 9

Personal Development High-performance traders follow a daily routine for personal development. Personal development is in my best interest and I hope you realize that it is in your own best interest too. Following a daily routine for your personal development will definitely affect your trading performance. Trading will bring out the best and the worst of your emotions. When you are mentally prepared for all eventualities, trading will become easier. I believe personal development played a big part in my trading success. I live an intentional life. Everything I do is intentional. I use my imagination every day. Using your imagination How you see yourself in your mind’s eyes matters a great deal. As you begin this journey as a forex trader, begin by using your mind. See yourself as a successful trader. It is an exercise that most people are not willing to invest in. But if you do, you will definitely become one of the 10% who pulls money out of the market. If it was easy, many people will be doing it. Do not focus on your past failures, because this will only continue to affect your future success. All successful people and traders for that matter, see themselves in their mind as successful before it ever manifested itself in the physical. So you have to vividly imagine yourself as a successful trader. So picture yourself making 400 PIPS a month, remember our SMART goals? That is your job now. See yourself hitting the goal of 400 PIPS a month over and over again. How does it feel? Trading success all depends on you and the truth is you have to power to make it happen for you and your family. My Visualization technique as part of my daily routine How do I imagine myself as successful every day? Well, I learned this technique a few years ago and it has worked and has helped me become a better and more profitable trader. It is part of my trading routine now. I hope you will make it part of your trading routine. Here is what I do 30 minutes before my trading I lie down on a couch, very comfortably. I make sure there is no distraction and then I begin to visualize my trades and I see myself in the theater of my mind buying and selling at the best setups. Lie on a couch 30 minutes before you ever trade. Visualize your trades, and see yourself in your mind’s eyes buying and selling at the best setups. It feels like it is real, that is the point. My mind cannot determine when I am just imagining or when it is actually happening for real. You can begin imagining at this point the goal of 400 PIPs a month. See yourself placing trades when the setups are good. See yourself coming back the next day at 23:00 CET and the trade has moved in your favor. See yourself closing the trade at a huge profit. When I do this, a smile usually breaks on my face. It is an awesome feeling. Now I know why it works. Everything we see on this earth began with a thought in someone’s mind. So, therefore, we can create things with our imagination and God will bring them to reality. Be sure to pay close attention to the details of your trades in your mind’s eyes. Relax and let there be no distraction. This process lasts at least 30 minutes.

Work on your vision My success vision board is designed to reflect what I want to become as a person. I believe that trading is just a vehicle to reach my goals and accomplish my vision. If I become a better trader, I will execute my trading rules flawlessly. So work on your vision and as you do ask yourself these questions: what kind of trader do you want to become, what kind of person do you want to become? As you ponder on these questions, you will begin to see ideas for your vision. Trading will bring out the best and the worst of you and the market will do what it wants to do. Therefore, your mental preparedness is very important to execute your rules flawlessly. So start working on your Vision. Start my day with a quiet time I start my day by thanking God Almighty for life and asking for grace for an abundant life. I want rivers of living waters to flow from me each day. I will mention the things, persons and places I am grateful for. I spend some time in meditation and ask for grace for an abundant life. (Jesus said, I have come to give life and to give life abundantly.) With an abundance mindset, I am ready for my day. Work out and Nutrition I drink a glass of water with some lemon on an empty stomach every morning. There are many benefits, however, I really like the fact that it reduces stress levels and improves moods while boosting energy levels at the same time. Choose your workout routine and stick with it. Be consistent. This will make you physically strong. I just work out in my living room or go out for an early morning walk. We have to make healthy daily choices, to stay on top of our game.

CHAPTER 10

The Close My purpose is to change people’s lives. Commit to stop playing small and go big in your imagination. Your imagination can lead you to become one of the best traders in the world today. Armed with a proven forex trading money-making strategy (PFTMMS), you can use your imagination to take this strategy to whichever level you want. You may just be starting, but at least you are starting right. Commit to the flawless execution of this strategy and use your imagination at least 30 minutes a day. Conclusion You have seen how consistent the PFTMMS can be. It will help you to trade effectively and you can easily become a consistent trader by flawlessly executing the rules and trading only at the end of the day from 23:00 pm CET or 17:00 EST. The Proven Forex Trading Money Making Strategy (PFTMMS) will work for those who develop the self-discipline to implement the trade following its simple rules. To be a master in forex trading, follow our instructions and you will reach your goals. Good Luck!

Are you ready to trade on a real account?

Go to forextime.com and login into your account. Click “My Accounts” and then “Accounts overview”

Under My Demo Accounts, click on the down arrow and select “Delete Account”. We would like to delete the Demo account so that we do not confuse it with our real accounts.

Under My Trading Accounts, click on the Deposit button (Minimum 100 USD).

Choose your deposit method and follow the instructions. Remember to deposit using your Credit card or Debit card (e.g. A cheque/current account) select the Credit/Debit Cards option depending on whether your card is VISA or Mastercard. Once the money deposited reflects on your account, you may trade real money the same way you have been trading with a demo account. Other courses offered by XYZ Pocket: Video courses Written courses Video Courses Link Ultimate Forex Trading Training Videos - Level 1 https://videos.xyzpocket.com/ Best forex trading videos - Level 2 Advanced https://videos.xyzpocket.com/best-forex-trading-videos-level-2-advanced/ Complete Forex Trading - how to do Forex trading https://videos.xyzpocket.com/complete-forex-trading-how-to-do-forex-trading-1/ Easy Forex Trading for Beginners https://videos.xyzpocket.com/easy-forex-trading-for-beginners-1/ Forex courses online – Trading Forex indices https://videos.xyzpocket.com/forex-courses-online-trading-forex-indices-2020/ Learn Fundamental Analysis - Best Forex Training Online https://videos.xyzpocket.com/learn-fundamental-analysis-best-forex-training-online-2020/ Winning Forex trading learning with Live Trading Examples https://videos.xyzpocket.com/winning-forex-trading-learning-with-live-trading-examples-2020/ Written Courses Link 50 Pips A Day https://www.xyzpocket.com/forex-trading-training-50-pips-a-day/ Forex Academy - The Ultimate Price Action https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/ Forex Masters Course 2020 - Follow Price Action Trends https://www.xyzpocket.com/forex-masters-course-2020-follow-price-action/ Forex Trading School - Best Day Trading Forex https://www.xyzpocket.com/forex-trading-school-best-day-trading-forex-2020/ Free Forex Training - The Ultimate Basics https://www.xyzpocket.com/free-forex-training-the-ultimate-basics-2020/ Master in forex trading - 15 minutes a day https://www.xyzpocket.com/master-in-forex-trading-15-minutes-a-day/ Read the full article

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Free Forex Training - The Ultimate Basics 2020

Course Prerequisite

Forex Demo Broker Account (See below if you do not already have one) Passport or Identity Document and Proof of address not older than 90 days (You will need these documents for verification purposes) Your full attention Practice, practice practice!!! Forex Broker Demo Account In order to be able to practice the exercises in this course, you will need to open a demo account. A demo account is a practice account where you are able to trade live using fake money and not your own money. Once you are comfortable with a demo account, you can then deposit real money and apply what you learned while using a demo account. Here are the steps to follow when opening a demo account: Click on this link (Non-US learners): Recommended broker. For the United States learners, follow this guide: Recommended US broker For the rest, let us continue. Click on the “Open Account” button at the top of the screen.

Upload your Identity document as per the e-mail and your proof of address. Open a Demo account Click on “My Accounts” on the left-hand side, then select “Open New Account”

Select Demo Account. Account type – FXTM Standard Choose currency Account Leverage 1:2000 Complete the passwords fields Initial balance – any amount, I suggest 20000 USD Click “Open Account”

Your Metatrader Login details will be displayed Download the Platform just as you did above and login using the details given. You are now ready to continue with the course content.

Chapter 1

Welcome to the World of Forex Trading with Free Forex training So you have heard about Forex Trading and you are now curious to check it out, but really don't know where to start. We offer free forex training that is comprehensive and complete. Well, you have come to the right place, as this book will take you through the basics, explain Forex in a plain and simple manner and give you enough information to get started sooner rather than later, in the exciting world of Forex Trading. What is Forex? Forex is the common term used to describe Foreign Exchange. It is also called currency trading, or just FX trading, and every now and then you may see it referred to as Spot FX.

It is essentially the trading of the world's various currencies. Trading currencies is a little different from trading shares or stocks, as currencies are traded against each other. What I mean by this is that you are comparing one country's currency to another country's currency. It is not as confusing as it sounds, so bear with me. Before you embark on a forex trading journey, you need to understand what you are getting yourself into. Why would I want to trade Forex? Good question! Most people have heard about trading stocks, maybe even futures and options. They have been around for years and your grandparents may have even traded them. But I guarantee you that they wouldn't have traded Forex unless they were exceptionally wealthy individuals or worked for a major bank. It is only in the last 15 or so years that the retail Forex industry has opened up to the likes of you and me, where you can start trading with a very small deposit into a brokerage account. Obviously the popularity of the internet has helped create this boom as about 99.9% of all transactions are carried out online. Why Forex? For a start, it is by far the most liquid market in the world that runs 24hrs a day for 5 1/2 days of the week. Just to give you an idea of what I mean, in early 2014 and according to the Bank for International Settlements, Forex trading increased to an average of $5.3 trillion dollars a day. To put this in perspective, this averages out to be $220 billion per hour. In fact, it would take 30 days of trading on the New York Stock Exchange to equal one day of Forex trading. These figures are huge! There is no other way to put it. But obviously that doesn't really affect the average trader other than giving that trader very good liquidity, which means if you want to buy or sell any of the top 10 currency pairs, there is never an issue of that pair not being available to trade. Also with this much volume on a daily basis, the average trader like you and I have absolutely zero chance of influencing market direction. Advantages to Trading Forex Because the Forex market is running continuously for 24 hours during the week, there is very little gapping, which can be a common problem with stock trading. For example, you may have bought XYZ stock at $24.20 on Tuesday just before the market close with a stop loss set at $23.50 to protect you against any major losses. During the night, when the market is closed, there is a major announcement that affects the company trading as XYZ, and the market opens on Wednesday morning, with XYZ trading at $22.10. Not only has it gapped down $3.10 overnight, but it has also opened $1.40 below your stop loss giving you a much bigger loss than you ever anticipated. This rarely happens in Forex trading, but having said that it can happen, especially over the weekend as this is the only time the Forex market is closed. But it is rare! I can give you one example where I was caught out on a weekend. Late 2003 I was in open positions over the weekend where I was basically going against the US dollar, and then US troops captured Saddam Hussein. This was very positive for the US dollar, which then opened much higher on Monday inflicting some financial pain my way. I have learned my lesson and I am rarely in open positions over the weekend. As you will soon see, with regards to Forex trading, you only have a small number of currency pairs to choose from. This is a very small basket compared to the number of stock choices you have. On the US stock exchanges, there are literally thousands of stocks to choose from. Here you have the problem of finding a needle in a haystack. You will see that your Forex choices are much, much narrower, hence there is certainly a lot less searching and analyzing required. All of your efforts and concentration can be targeted in a very narrow field, so you can get on with the trading sooner than later. Once you have a look at a few different Forex charts, which I discuss later, you will see some very nice smooth trends that seem to occur quite often. Now, this is something that you may not understand if you have never traded a financial instrument before, especially if you have never looked at charts. For those stock traders out there, you would be very aware of stocks that just get stuck in a range for what seems forever, or stock charts that show plenty of gaps and a general ugly sort of look. I am not saying that Forex doesn't range. It does, trust me, but when it breaks out it is normally something very good. You will understand this once you start looking at the charts. The low cost of trading is also important. Most trading is conducted electronically over the internet on your nominated broker's online account. The cost is minimal for each trade as there is normally no commission involved, however, you do have to cover the spread. This will be explained shortly, but it can be very cheap to trade considering some pairs now have less than one pip spread. Further to the low cost, you can open an account with a broker for a very small amount, and in some cases, just a couple of hundred dollars. Granted you are not going to make millions from this, but it is a start. I will cover brokers later. Some Further Advantages of Forex Trading So we need somewhere to trade and as stated earlier, this is all done online via the internet. The good thing about this is that most brokers offer unlimited demonstration platforms where you can practice trading for as long as you like without risking any of your own money. This is brilliant if you want to try out different trading methods and ideas. Commonly referred to as 'demo trading,' there is no reason that you can't have both a 'live' and 'demo' account with the same Broker. Just ensure you don't get them confused. Demo trading is quite a useful tool where you can try out different things etc, but please be warned, trading on a 'demo' account is nothing like trading on a 'live' account as there is zero risks with a 'demo' account and therefore your emotions do not come into play at all. It is like walking across a plank of wood 6 inches above the ground, compared to walking across the exact same plank of wood ten stories up in the air. I'm sure your emotions would be different, and the same goes for trading. When there is real money on the line, you will think and act differently! Trust me on this. And to take this one step further, Forex data is live and it is free. Unlike a lot of stock data where you have to pay a monthly data subscription fee or stuck with 15 minute delayed data, your Forex data is all freely provided to you by your chosen broker's trading platform. I’ll have more on brokers and their platforms later. When is the Forex Market Open? Here I will discuss the trading times and as you will see, there is ample time to trade Forex. As stated earlier, it is a market that is open longer than it is closed. As most people would be aware if you were trading stocks then you would trade these through an exchange, whether it was the New York Stock Exchange or the Australian Stock Exchange. Forex trading does not have any central exchange as such. All trading is done through the banks or market makers, which are basically the brokers that traders like you and I would use. Forex trading follows the world's time zones and is broken down into three major time zones. The first to open in Asia, which includes New Zealand, Australia, Singapore, Japan, etc. This is called the Asian session and is normally the quietest of the sessions with regards to trading volume. This is then followed by the European session. In the meantime, traders in the Middle East are kicking in, and then all the major European centers, where eventually London opens. The European session is the main session as it normally has the greatest volume traded. You have to remember also that London is the financial capital of the world, even though most people think it is Wall Street in the US. The last session to open is the US session, and this session can also be very frantic, especially early in the day where there can at times, be major news releases that have a big effect on the US dollar itself. So we have the three trading sessions, which do overlap each other. There are no set times, just when banks open for business in each major financial city and volume picks up. For me living in Australia, I know that during the day here, it is the Asian session, followed by the European session which kicks off at about 5 pm, followed by the US session at 11 pm. I am normally in bed by 2 am at the latest, which would be getting close to lunchtime in the US. In a nutshell, you can trade at any time, but if you intended on trading the London open and you lived in the US, you may have to set your alarm clock and get up very early in the morning. Every time zone has its advantages and disadvantages. There are plenty of free online time zone clocks available that relate to the different session times, so it is quite easy to find a session or sessions that suit your lifestyle. You can also find free custom indicators that clearly put the different session times on your trading charts. This is a great visual tool for some.

Chapter 2

What Do We Trade in the Forex Market? Let's get into it! Our free forex training will give you a very broad idea to get you started. There are several currency pairs that can be traded, but the majority of traders just stick with a group of about 8 to 10 pairs. That is more than enough choice. First up, we have what they call the 'majors'. These are by far the most heavily traded currency pairs, and a lot of traders are just happy trading one or two of these. The majors include: EUR/USD Euro against the US dollar USD/JPY Japanese yen against the US dollar GBP/USD Great Britain pound against the US dollar USD/CHF US dollar against the Swiss franc Notice how they are all against the US dollar, therefore when traders discuss these pairs, they simply just refer to them as the Euro, Yen, Pound (or Cable) and the Swissy. Then we have what we call the '2nd tier pairs' and these include the following: AUD/USD Australian dollar against the US dollar USD/CAD US dollar against the Canadian dollar NZD/USD New Zealand dollar against the US dollar Again, these pairs are all against the US dollar, so they are simply referred to as the Aussie, Loonie, and Kiwi. The term Loonie actually comes from the first Canadian dollar coin. Then there are currency pairs that are simply called the 'crosses', and these involve non-US dollar pairs. Some of the more popular crosses include: EUR/JPY Euro against the Japanese yen GBP/JPY Great Britain pound against the Japanese yen EUR/GBP Euro against the Great Britain pound There are quite a few others, but these three are probably the most popular traded. A lot of traders prefer to trade their home currency as they feel they have a better understanding of it. Personally, I'm Australian, but I rarely trade the Aussie as I am very comfortable trading the majors for the majority of my trades. So what do all the numbers mean when the currency pairs are traded together?

The first currency mentioned is what they call the ‘base currency' and it is being compared to the 2nd currency, which is called either the 'quote currency' or the 'counter currency'. If I watch my local news, and near the end, they have a very brief financial report where the newsreader may say something like: "The Aussie dollar was down today against the greenback, reaching a low of 71 cents" Basically what they are saying is that the Australian dollar has dropped in value compared to the US dollar and that one Australian dollar is equivalent to $0.71 US. As the US dollar is the major currency of the world, you will find most financial reports will compare your local currency to it, and even some of the other majors such as the Euro or the Great Britain pound. Using this same example of the Aussie at 71 cents if I were to travel overseas, say to the US where I would need US dollars, then I would be hoping for as high a rate as possible so I get more for my Australian dollar. So if the exchange rate moved up to 75 cents, then one Australian dollar would be worth $0.75 US. You may see the quote for the AUD/USD similar to this: 0.7125 / 0.7128 I’ll explain shortly why there are two sets of numbers. But just looking at 0.7125, this shows how many units of the quote/counter currency are needed to buy one dollar of the base currency. In this case, the US dollar is the quote/counter currency and the Australian dollar is the base currency, so US$0.7125 is equal to AU$1.00. So if I traveled to the US, then each Aussie dollar I have is worth about 71c US. Forex Pairs - What do the Numbers Mean? Let’s consider a paired example: If the AUD / USD were quoted at 0.7125 / 0.7128, what exactly does this mean? The first figure of 0.7125 is called the 'bid' price The 2nd figure of 0.7128 is the 'ask' price The difference between these two figures is called the 'spread' If I wished to buy the Aussie, thinking that the Australian dollar is going to go up in value compared to the US dollar, I would be required to pay the ASK price, which in this case is 0.7128. On the other hand, if I thought the Aussie was becoming weaker against the US dollar and I wished to sell it, then I would sell it at the BID price of 0.7125. Now if I was to buy the Aussie at 0.7128 and then immediately close my position before the price had a chance to move, I would have to close the position by selling the Aussie at 0.7125. Now there is a difference of 0.0003, which is called the spread, and that would be the amount I lost on this trade. In the case of the Aussie, each 0.0001 move is called a pip (or sometimes referred to as a point). So on this trade, I would have lost 3 pips (or 3 points). All the pairs I mentioned above, except the JPY pairs, normally have four decimal places, and their pip value is calculated the same as the above Aussie example. The JPY pairs usually only have the two decimal places. An example of the USD/JPY could be quoted as follows: 97.81 / 97.83. This tells me that one US dollar is equal to approximately 97.8 Japanese yen. The bid price is 97.81 and the ask price is 97.83, and that there is a 2 pip spread. In this case each 0.01 move is called a pip. Important: Most brokers these days have an extra decimal place on their quoted prices. This has come about as the result of spreads becoming tighter over the years. When I first started trading, a small spread on the EUR/USD was 3 pips, whereas nowadays it is common to see the spread on this pair at 0.8 of a pip or even less. Hence the addition of this extra decimal point on the quoted prices. If you see three or five decimal places and depending on how precise your trading is, I would suggest you just ignore the very last digit. That is the simplest way. For example if you saw a quote for the EUR/USD as 1.38641 / 1.38663, you would simply read it as 1.3864 / 1.3866 by dropping the last digits. Then you can see that you have a spread of 2 pips. This is just to keep it simple. If you wanted to be precise, then in this example you would simply take 4.1 away from 6.3 to give you an exact spread of 2.2 pips. These are just the last two digits on the quote where the 2nd last digit is an actual whole number of pips, with the last digit representing a fraction of a pip. It can be very confusing at first. Me, I just round it up or down depending on which side of 0.5 I am on, just to keep it very simple. Next, I'll discuss the different brokers and platforms available. This is a minefield in itself! Where Do We Trade Forex? You will have to open an online brokerage account to enable you access that broker's trading platform. As I mentioned earlier, most brokers offer demo trading where you can practice trading without risking real money – it’s a little like playing monopoly. You do not need to deposit any funds with a broker to gain access to their demo platforms, as most are quite willing to let you try them without any obligation. This also gives you the chance to try various platforms and see what you feel comfortable with. What About Choosing a Broker? This is a good question and you will get a variety of answers if you were to ask around in the trading community. Firstly, I would strongly suggest that you choose one of the bigger well-known brokers. Trust me on this! The retail forex industry is still relatively young and it does not have the same regulations and rules to follow as a lot of other traded financial instruments. This is mainly due to the fact that there are no central exchanges involved. But having said this, a lot of governments are beginning to formulate rules and regulations that do give forex traders better protection. But be warned, there are still bucket shops (dodgy brokers) out there who will rip you off in a heartbeat. It was only recently I heard of one Swiss-based broker disappearing with all their clients’ funds. I certainly don't want to scare anyone off, but please be warned and choose wisely. There are plenty of good brokers around, so there is no need to panic and get stressed about this. Another suggestion is that you do not place all of your funds into one broker, especially if you have a substantial amount. What I am talking about here, is if you had say $100,000 to trade (which you don't need!), I wouldn't be depositing all of this with the one broker. Instead, I would either spread it amongst two or more brokers, or keep funds in reserve and only deposit them with my broker if they were required - you will sleep better at night! Important: In January 2015 there was a huge move by the Swiss National Bank where the Swiss franc was depegged from the Euro catching the financial markets by surprise. This caused an insane, huge, untradeable price spike in Swiss franc related pairs, which basically wiped out trading accounts or made some traders extremely profitable. This spike also sent some very reputable major brokers to the wall financially, causing some to go broke or go into liquidation. Alpari UK was one of the major players affected and is no longer in existence. FXCM also struggled but recovered. So be careful where you put your funds and only deposit what is required. Many traders also like to keep their hard earned cash in their own country and I can understand this, and again it is just a perceived safety measure. Me personally, I haven't got a problem with dealing with overseas brokers. My past experiences have produced no problems at all transferring funds either way, so I am quite happy to use overseas based brokers. I didn't have a choice really as up to a couple of years ago, there weren’t any Australian based brokers that I felt comfortable with, but that has since changed. Not all broker trading platforms are the same and this is where it gets interesting. Every platform appears to have its advantages and disadvantages. You have to find something you are comfortable with. One of the most popular forex trading platform is Metatrader, or more commonly referred to as MT4. This platform is then used by a variety of brokers. How this works, is that you would go to your chosen broker's website, sign up with them, and then download the MT4 software from their site. Here you can either select demo or live trading or both. Obviously they will provide further instructions on how to deposit funds into your brokerage account. You can find out more about MT4 by doing a Google search on 'Metatrader'. I personally find the MT4 platform one of the best, especially for the charts. It is quite incredible what you can do with this platform. Even though the charts and other features are excellent on the MT4 platform, I am not particularly happy with the way you place orders. It is not as easy as it should be and can be a little frustrating at times. But the charts are excellent, or did I already say that? Being an Aussie, I use GoTrader or Pepperstone for my MT4 platform and I am quite happy with both of them. The beauty of the MT4 platform is its popularity and the ability to write your own computer code to design your own custom indicators or expert advisors. There are even dedicated forums and groups that just discuss this platform. Most trading platforms come with a variety of standard charting indicators. Things like Moving Averages, MACD, RSI, Bollinger Bands etc. Now with MT4, you can design your own custom indicators and download them direct to your trading platform, and then onto your charts. Don't worry if this sounds a little confusing at the moment as it does become clearer as you become more familiar with the platform. You don't need these custom indicators to trade, and if you are interested in trying them out, there are plenty of smart traders out there who have already done all the hard work and made them freely available online. There are thousands of them. I also mentioned expert advisors, commonly known as 'EAs' or 'Trading Robots'. This is a software program that is loaded onto your platform and then onto selected charts. A fully automated EA, once activated, will go to work to identify trades that fit its trading criteria, open a trade without human involvement, manage the trade without human involvement and eventually close the trade without human involvement. It all sounds too easy, doesn't it! Again you can design your own or let someone else do it for you. They are not as freely available as custom indicators, but they certainly are becoming more popular. Again, be warned! There are plenty of scammers out there selling trading robots based on outrageous promises of untold wealth. Do your due diligence and choose wisely if you decide to go down that path. The good ones are few and far between. MT4 is not the only platform you can customize indicators and trading systems, but it is by far the most popular. I have used CMS and their VT Platform in the past, and they too have an excellent charting package. There are plenty of other good brokers around. One of my favourites is FXTM. It does have a web based platform available as well as their MT4 platform. The web based platform doesn’t require any software to be downloaded, which means you can access this platform from any computer that is Java equipped. FXTM is a very popular and reliable platform which offers very low spreads and is very simple to use. There is also one other big advantage using FXTM with regards to trade position size and it is one of the reasons I like them so much. They have also been around for a few years now and there are rarely any negative comments about them. FXTM is certainly a great beginner's broker and platform/s. As stated earlier, there is no central exchange for Forex trading, therefore pricing on different currency pairs can vary at times between the different brokers. Normally all the good brokers will be within one or two pips of each other, which really isn't an issue. However every now and then, there will be a price spike on one broker’s charts but not on other broker’s charts. Too bad if you had an order set around where the price spiked, whether it be a buy/sell order or a stop loss. These types of fluctuations normally happen on the not so well known broker platforms. If you stick with a decent broker, you will avoid these types of problems. I normally run two platforms together and can see the differing prices, but as they are two reputable brokers, there is rarely an issue with price differentials. I mentioned the term the 'spread' earlier, which is the difference between the bid and the ask prices. It was only a few years ago that the spread on the EUR and JPY were 3 pips, and the other major pairs ranged from 4-5 pips, and this was happily accepted by all. Nowadays, it is not uncommon to get spreads on the EUR and JPY for 1 pip or less, and the other majors, for less than 3 pips, as are a few of the 2nd tier pairs and crosses. The spread is your cost of doing business. For you to make any profit, you must first make up the spread. For example, if you bought the USD/CHF at 1.0774 and you had a 3 pip spread, then the price would have to rise to 1.0777 before you are in a break even position. Remember you buy at the ask price and sell on the bid price. So in this case, when you bought, the quote would have been 1.0771 / 1.0774. It then has to look like this before you can get out at breakeven 1.0774 / 1.0777, which is a 3 pip increase in price. Some brokers maintain the same spread, albeit a little higher during all market hours, whilst other brokers may vary the spread depending on the volatility at the time. What is volatility? It can be when the market is very quiet, like when the market opens early in the week, or after hours at the end of the US session before the Asian session has cranked up. It can also refer to when there is very high volume, normally in anticipation of a major news release. This is where some brokers can really widen their spreads. They don't stay wide for long, but it can be 5 minutes or so. Oanda does this, and the spreads can go out to 20 pips on the volatile pairs like the GBP/USD. This is not good if you are scalping or have a really tight stop or other orders close to the current price. Something you have to be aware of. You will find that if the spreads stay constant, then there is normally a trade off somewhere else. In the case of CMS, their spreads remained constant but during the very volatile times, you would have difficulty placing orders or stops close to the current market price. A few years ago, just before any major news release, traders would place a buy order and a sell order close on either side of the current price just a few seconds before, hoping to cash in on a big price spike one way or the other. One order would be filled and they would cancel the other, looking for a decent run in the original direction. Brokers didn't like this and put practices in place like I have discussed to prevent this - a bit like the casinos banning card counters, even though it is not technically illegal, it was giving the card counters an edge. So the casinos changed their rules to take away that edge from the punters. Brokers do the same at times. Then we have the problem of requotes and slippage. This should not really be an issue with Forex trading if you stick with the better brokers, but it can and sometimes does happen. Keep in mind, there can be times of very high volatility, where you just won’t be filled at a price you may have elected to do so. This is the same for all types of trading. This is also where Demo trading can give you a false sense of security, as demo platforms will always fill trades or orders at those specified levels as it is only a computer program working on numbers, not the real market conditions. You may end up with a perfect trade fill on a Demo account but there may have been a 10 pip slippage on the same trade in a Live account. It does happen. Generally, the better well known brokers are becoming much more reliable (and honest) these days. It wasn't that long ago, that they were a little inconsistent and traders did have problems that were plastered all over forums, therefore affecting certain broker’s reputations. This doesn't seem to be such an issue nowadays though. But once again, I would suggest you do your own due diligence by getting out there into Google-land and checking things out.

Chapter 3

How Do You Actually Trade Forex? It may seem a little confusing at first but really, it is quite simple. Forex is a leveraged financial instrument, as is Options, Futures, CFDs, Warrants etc. So this is nothing new. You trade Forex in 'lots'. That is basically the industry standard, but there are brokers out there that do things slightly different. For example, Oanda trades in 'units', but they can be easily converted to a lot size equivalent. Lots are known by different names, depending on how much currency they represent. There is a standard lot, a mini lot and a micro lot: One standard lot 100,000 units of the base currency and is normally expressed as 1.0 lot One mini lot 10,000 units of the base currency and is normally expressed as 0.1 lot One micro lot 1,000 units of the base currency and is normally expressed as 0.01 lot How many lots you can buy or sell depends on a few things: your account balance your nominated trading leverage, and how much you are willing to risk on the trade This is when I mention the words 'margin', 'leverage' and 'risk'. All words that are important, but there is no need to get stressed about them as they can all be controlled and I'll show you an easy way to stay out of trouble. Margin refers to the money you have in your account that is available to trade with. As stated earlier, Forex is a leveraged instrument, so if your broker offers you 100:1 leverage, then for every 1 unit you have in your trading account, you can control 100 units in a trade. Some brokers offer up to 1000:1 leverage. If you are over leveraged and a trade goes against you, and you decide not to take any action, your broker will close the trade on your behalf to protect their interests, even though you may have blown your account out. The higher the leverage, the more currencies you can control (buy or sell more). It is not something that concerns me as my risk is controlled on all trades. Risk refers to what you are willing to risk on any particular trade, in terms of dollars. Important Information for US based Traders Most US Traders are restricted by their government's regulations whereby they do not allow US based brokers to offer more than 50:1 leverage on their trading accounts. It is “Big Brother’s” way of telling you what’s best for you. There are ways around this is you are a US based trader. It will take a little research on your part. Another US only regulation is not allowing traders to hedge, which means that you cannot have a buy and a sell trade open at the same time on the same pair. A lot of traders hedge trades that are going against them so it gives them time to reassess their overall position. Some actual trading systems call for trades to be taken in both directions at the same time also. There are ways around this also. Another US based rule is called FIFO, which means ‘first in, first out’. Basically if you are trading multiple trades on one pair, and these would be all in the same direction as you are not allowed to hedge, you have to exit the trades in the same order that you entered. It also depends on the position size of each trade. Refer to your Broker for exact information on this. This is probably one of the most frustrating rules for US traders as sometimes you don’t necessarily want to exit in that particular order. I’ve heard more complaints about this rule than the others. Most other countries do not have these restrictions. Lot Size and Equivalent Pip Value Just to refresh your memory, if the EUR/USD moved from 1.3924 to 1.3928, it has moved a total of 4 pips, and if the USD/JPY moved from 95.23 to 95.19, it also moved 4 pips. Straightforward, so far. If I was trading 1 standard lot ($100,000), then each pip is worth US$10. So in the above EUR/USD example of the 4 pip move and you were trading 1 standard lot, 4 pips is equal to US$40. The same US$10 per pip also applies to the GBP/USD, AUD/USD and NZD/USD. That is the easy part. Now all the other forex pairs aren't quite as simple due to the fact that the USD is not the quoteor counter currency. So what you have to consider here, is the currency conversion between the two pairs and the math can be a little confusing. Me, I keep it simple, and consider all pairs to have a 1 pip value of US$10. Just about all of the forex pairs, except the EUR/GBP have a pip value of less than US$10, and most of these are just under that level, but they do fluctuate with currency variations. If you do need to know the exact pip value, there are plenty of free websites with a built in calculator to do the math for you. The majority of traders either trade standard lots or mini lots. As stated earlier, Oanda is slightly different here as they trade in units, which can be very useful for precise money management. So, if 1 pip is equal to US$10 on a standard lot (1.0 lot / $100,000), then 1 pip on a mini lot (0.1 lot / $10,000) must be equal to US$1, and 1 pip on a micro lot (0.01 lot $1,000) is worth $0.10. Simple! And to keep it very easy and simplified, just consider every Forex pair the same. I know a USD/JPY pip on a standard lot isn't US$10, but it is close enough for me not to worry about its exact value. If your style of trading is affected by the exact price of pips on the Forex pair you are trading, then you will have to use something like a dedicated forex calculator to work out the exact values. They are freely available by just doing a Google search. Let's get into a Trade Example: I have $2,235 in my trading account, and I am happy to risk 2% on each trade. I'm in my broker’s account looking at their charts and I see a nice set up on the EUR/USD where I am looking at buying at 1.3928. I am going to place my stop (stop loss) 30 pips below at 1.3898. So my risk on this trade is 30 pips. Now I need to know what my position size will be, where I am risking no more than 2% of my overall account balance of $2,235. This actually equates to $44.70. The easy way to work this out is by using the following: Account Balance multiplied by risk percentage, divided by risk (stop size in pips), equals position size. In this trade, the math would look something like this: $2,235 x 2% = $44.70 $44.70 / 30 pips = 1.49 Therefore my position size on this trade would be 1.49 mini lots (0.149 lots). You would have to round this down to either 1 mini lot (0.1 lot), or 1.4 mini lots (0.14 lots) if your platform allows this trading size. If you are unsure of the position size, whether it is in standard or mini lots, just do the math backwards to confirm. You know the maximum risk is $44.70 on this trade. If you went into the trade with 1 mini lot, you know each pip is worth $1, so if you were stopped out, then you would have lost $30, which is under your max risk of $44.70, due to the fact you had rounded your position size down. Here is another example with a much larger account balance and a different risk percentage and stop placement. Account balance is $37,840, your trade risk is 3%, and you are placing an order to sell the GBP/USD at 1.4562 with a stop at 1.4607, which is 45 pips away.

Let's do the math to work out my position size: $37,840 (Account balance) x 3% (risk percentage) = $1135.20 $1135.20 (max risk) divided by 45 (stop) = 25.226' Therefore my position size would be 25.226' mini lots (2.5226 lots), or rounded down to 25.2 mini lots (2.52 lots) which is basically 2.5 standard lots. Do the math in reverse if you want to double check your position size. You know your max risk is $1135.20, and your stop is 45 pips, and each pip is worth $10 on a standard lot. If you were to lose 45 pips with 2.5 lots, then 45 x 2.5 x 10 = 1125, which is under the $1135.20 risk. It may be a little confusing at first, but it is very simple once you get the hang of it. By using this formula, you should never have to worry about leverage, margin or risk. They just don't come into it. But having said that, it all depends on your risk percentage levels and your actual trading methods. You do need a successful trading method, because if you don't and you were only risking say 2% per trade, you will eventually blow out your account. It will just take a bit longer to achieve this than if you were risking 10% on each trade. There are plenty of freely available Excel type spreadsheets that can do the math for you once you plug in your own figures. These are quite handy and ensure you get the figures correct. Now we need to talk about risk! Our free forex training courses always emphasize the need to practise while learning how to trade forex. Information on Risk I consider 'risk' to be a very important issue when it comes to Forex trading. Probably not so much of an issue if you are a longer timeframe style trader, say the weekly or monthly charts, but if you are a day trader, then it certainly is an issue. TRUST ME ON THIS! Now I don't really care what your percentage risk is per trade as that is up to the individual trader. I have suggested 2-3% which is quite common amongst successful traders, even less is better according to some. This will ensure you stay in the game longer at least. If you want to risk 10% on a trade, that is up to you. But I will say that it is very much in your interest to have a physical stop loss in place. This is a point where you will be taken out of a trade if something does go wrong. What can go wrong you ask? Other than you picked the wrong direction for the trade, which will happen every now and then. You may also have internet problems or the biggie, unfavorable news comes out that completely catches you by surprise and before you know it, your trade is down a 100 pips or so. First up, there are potential internet problems. It doesn't matter where you live, you can never be guaranteed of 100% reliable internet connection. It only takes a storm within about 100kms of my place to disconnect me at times, and I'm with the biggest telco in the land. When I was trading full time back in the mid 2000s, I also had a backup with the old dial up to my cable broadband. These days, you can get the wireless modem as a backup. One other thing I would strongly suggest is that you have your broker's phone number handy, so you can ring them direct and either close trades or move stops etc. I have done this in the past to get out of trouble, and it is nice to know that you have this option if worse comes to worse. Again, this may only be available with the bigger well known brokers. It also helps to consider any possible language problems if you have to get on the phone. Potentially the biggest problem is news releases or unexpected news. Forex moves on news! And there is always plenty of news coming out. The good thing about it, is that most of the news is released at set times which is very easy to keep track of. Very easy, and I'll go into this in another chapter. So what am I saying here? MAKE SURE YOU USE STOPS ON ALL TRADES. I cannot be any clearer on this! Now the stop depends on you, but please don't make it a mental stop. These just don't work in Forex trading, especially if trading the smaller time frames. Even if you have some sort of safety stop that is some distance from your entry to prevent total wipe-out, which you can adjust later once the trade is up and running, is a much better option than having no stop at all. To give you an example of price movement in a 24hr period, I believe the average for the EUR/USD is around 100 pips and the GBP/USD is about 120 pips, give or take. That is just an average move in 24hrs. When I say move, it may start and finish at the same price, so I am referring to a possible range of movement here. If you were trading 1 standard lot and the market moved 100 pips against you, then you would be $1,000 in the red. Not good! If you are not sure what a stop is: it is an order to close out your trade automatically if the trade goes against you by a predetermined amount. An example: Bought EUR/USD at 1.3950, and obviously wanting it to increase in price to profit. You decided you did not want to risk more than 30 pips on this trade for whatever reason, so you would place your stop at 1.3920. If price fell to this level, you would be automatically closed out of the trade by your broker's platform for a maximum 30 pip loss. It wouldn't matter if you were online or at the beach as it all happens automatically. Using stops is a simple part of the whole forex trading experience, and an important one at that. They are easy to place at the start of the trade and easy to adjust once the trade is up and running. I strongly suggest that you use them at all times to avoid the unexpected. Having said all that, there are certain strategies that don’t use stops. However, they normally have some other mechanism built in to assist with trade management when price goes against you. Generally these types of trading systems are not suitable for those who are not comfortable trading this way and who do require some further expertise to be successful. For now, just place a stop on all trades and then you can look into more exotic trading methods sometime in the future. A Little More on Risk Just a couple of points that I have not spoken about. First up is 'risk' and 'correlation'. I have discussed risk per trade where I suggest no more than 2-3% per trade. Again, it is up to the individual trader how much they risk. One thing I must point out though is the problem with correlation. This simply means that two pairs may trade generally in either the same direction at most times, or in the opposite direction most times. The most obvious and highly correlated pairs are the EUR/USD and the USD/CHF as they basically move pretty well opposite each other, under normal circumstances. So if you had bought the EUR/USD on one trade and sold the USD/CHF on another trade, risking 2% on each trade, in reality you are actually risking 4% because of the high correlation. The EUR/JPY and GBP/JPY can also move pretty much in the same direction often. When you think about it, if the pairs have a common currency involved and news comes out that affects that currency in a big way, then it doesn't really matter what involvement the other currency has, as the market will move the dominant currency. This is something you will have to be aware of when it comes to total risk on your trades. The best way to check out how different pairs move in relation to each other, is to throw up the 1hr charts of all the pairs you are interested in trading on the one screen and see how they move over a few days, especially when news is released. I also spoke about planned 'news releases' that may or may not move the markets. Today for example, as I am only trading the EUR/USD and I am only concerned about possible high impact type news, I have checked the Forex Factory calendar and now know that I have to be on my toes at 7pm my time, for news out of Germany, and especially alert at 10.30pm my time for 3 major items of news out of the US. Hopefully my trading will be finished by 10.30pm, so it won't be an issue. I will discuss the Forex Factory Economic Calendar later in the book. Now sometimes there is unplanned news that may affect the Forex prices. Examples of this include terrorist attacks on US soil (Sept 11), capture of a highly sought after individual (Sadam) or even some dopey Treasury official making an out of the blue comment during what should have been a dull and predictable speech. Lots of things can move the market when you least expect it and it does happen on a regular basis! I have been sitting at my computer, quite aware of all news coming out, when suddenly a pair may just shoot up 50-100 pips in a minute or two - it gets the heart pumping as you quickly check all the news releases to see what has caused the blip. It may be something simple like a rumor of a planned attack in central London. It doesn't matter if it is false, as the market will eventually correct itself. Just be aware that news can come out unexpectedly and move the market, which leads back to my previous point of making sure you have some sort of physical stop in place at all times. Further Discussion about Risk This subject seems to be never-ending but as already stated, it is very important to fully understand risk and how it affects your trading. You don't want to blow your account in one or two stupid trades. Just going back to my example of only risking 2% on each trade. One thing that does come up, that different people have different opinions on, is how long you maintain the same position size before adjusting it to suit your account balance. Say for example, you only traded the EUR/USD and your stop was always 30 pips. You decide your position size, enter the trade and end up making a profit. This will obviously increase your account balance, and if you were to maintain your 2% risk on the next trade, then technically your position size would be slightly larger on this trade. This may not always be possible, depending on your account size and if your particular broker allows you to trade micro-lots you may be forced to round it down to the previous size anyway. Now some traders would suggest that you stay on the same position size for a session, some say the week, and others would suggest a month. No matter what happens, if you started that particular trading sequence with a 2 lot position size, you would continue to trade that same 2 lot position size until the end of the sequence, and then readjust it for the next sequence according to your new account balance. Other traders will suggest you adjust your position size after every trade. This can get a little confusing, especially if you are trading different currency pairs with various stops and it can also get a little ugly. Some say this disadvantages you if you are trying to recover from losses due to the fact you will be entering trades with a smaller position size if you had a few losses in a row. Not sure about that theory. As I have said many times, I am trying to keep it simple. Personally, I decide on a position size at the start of my week and I stick with that same position size for the entire week. Come the following week, I'll have a look at my account balance and make adjustments if necessary. This works for me and certainly makes my life easier as the position size is stored automatically in my platform for every trade. Now some traders may not make that many trades in a week, or they may rattle off 30 trades in a session, so everyone will have their own way of doing things. Some traders will scale in or scale out of trades, which then put another spin on risk etc. There is no way I can cover all types of trading scenarios, nor do I intend to do so. This information is just to give you ideas or perhaps make you think of something you have not previously considered, and then I throw my thoughts in on how I do things. There is no right or wrong way, and at the end of the day, if you make a profit and don't get too stressed or worn out doing it, then you are doing something right. Our Free Forex Training focus mostly on risk management because no matter how good you are at the technical side of forex trading, if you cannot handle risk, you could lose all of your money in a single trade.

Chapter 4

Fundamental or Technical Analysis? News and Fundamental Analysis When it comes to trading, whether it be Forex, Stocks or Daffodils, most traders have a plan that they base their own particular trading method on. With Forex trading, the majority of small retail traders like you and I, would probably use some sort of technical analysis, which is basically trading off the charts, using whatever indicators, patterns or set ups you choose. Or you may even just wing it and trade without anything on the charts. Still a method for some I guess. Then there are traders that will ignore the charts and trade off and around major news releases, which is basically the fundamental side of trading. I have already touched on this above, but I’ll go over it again. There are traders that use this as their sole method of trading the forex market. Here we are trading based on a theory on how you think the market will react to a particular news item like an Interest Rate cut or something similar. Or you may have some long term thoughts on the Japanese economy where you may decide to buy or sell the yen against another currency. There is some sort of news released every day that will affect some currency in some way. The trick is to work out which way the news will affect the currencies you are trading. The problem with the news releases is that although they are just about all set at a certain time, if you are not aware of them, they can catch you out. For example, the biggest news release is the Non-Farm Employment Change (use to be called NFP) figure which is released at 8.30am New York time on the first Friday of every month. Depending on the numbers that come out, this baby can move the market 100+ pips in a heartbeat, and if you are on the wrong side of it, lookout! Within 2 minutes, the market may have moved 200+ pips. It does happen! Imagine how you would feel if you just left the room to go to the bathroom without a stop in place, only to return 2 minutes later to find your trade so far in the red, you feel sick. Having said that, it could have also gone in your favour, but do you want to take that chance? What is the point here? According to our free forex training, Be aware of the NEWS! Now the good news is that there are plenty of free news calendars available on the internet, but the one I use can be found at Forex Factory. It is very simple to use as you can modify it to suit your own requirements. For example if you only traded the EUR/USD and you were only concerned about news that had a medium or high impact on those currencies only, then you can set up the filter to show these news events only. Just click on the 'Filter' tab on the top right hand side above the title bar. There is plenty of information on what the news is about and how it may affect the market, if you are interested. It is also set in your local time, so that makes it easier also. At the beginning of my trading day, I will open this site first and check for news releases that may affect the pairs I am trading. I will write these down in my journal, and if it is something big, I'll normally set an alarm to warn me about 10 minutes prior. This will then put me in a position to either tighten up stops on open trades, close them or not enter a trade until the news release has past. It is crucial that you are aware of these news releases, especially if you are a short term trader, and make sure you have a plan in place if you are trading through them. Technical Analysis I've covered Fundamental Trading (news events), so now it is time to get into the other common way of trading, and that is called Technical Analysis. Most of this trading is done off the charts, hence the expression 'chartists' or 'technical analysis' etc. This is the way I trade, and it is the way a lot of others trade also. Earlier I discussed how most Forex brokers offer a charting package with their platform, and how the live data was free. This is good as it keeps costs down. Some of these platforms have excellent charts, like the MT4 platform, Ninja Trader or VT. With technical trading, you can be as simple or complex as you like. I am not going to go into all the various indicators, fibs, pivots, breakouts, trend lines etc. There are literally thousands of ways to trade and the Forex Trading forums are swamped by them. So you can do your own research here and find something that suits you. The standard MT4 platform automatically comes with a large basket of various popular indicators that can easily be loaded onto any chart with the settings you choose and this is more than enough to get started. You can also add custom indicators to the platform. This is a very simple process and there are thousands of these custom indicators freely available online. Jump in the trading forums or Google it. If you need to know how to load these indicators on to MT4, that’s where YouTube is a great help. The resources available online these days are incredible, but if you are having problems, you can always contact me. I will discuss time frames. As we already know, the Forex market runs 24hrs a day during the week, so there is plenty of opportunity to trade. Remember the previous discussion on the different sessions also, which helps with regards to identify when the action is more likely to occur. On the trading platforms, most brokers offer 1 minute, 5 minute, 15 minute, 30 minute, 60 minute, 4 hour, daily, weekly and monthly charts. That's the majority of them. Some also offer tick, 10 minute, 2 hour and 3 hour charts. Remember all this data is live and it's free. Everyone wants to be a Day Trader! Myself included. I think it is just a romantic notion that is built into the human make up. It is especially cool if someone asks you what you do for a living, and you reply "I'm a Day Trader". It sounds impressive. I wish it was that easy though. Because the charts and the data are so good, you are always tempted to keep on shortening the time frame, where eventually you will be trying to scalp off the 1 minute charts. This all sounds good in theory, but it is very difficult to do. Look, I'm not saying it can't be done as I am sure there are a few successful scalpers out there. Not many I would imagine, but enough to show that it is possible. I have tried all time frames, and even though I have probably had most success on the longer time frames like 4 hours and above, I am still a Day Trader at heart. Again, this is a decision you have to make, whether you want to be in a trade for days or minutes. Trading the longer time frames will obviously give you less trades, but more than likely larger profits, and spend more time monitoring than actually trading. Trading off the shorter time frames will give you more action, more spreads to make up and more than likely smaller profits. Then you would have considerations like stop size. Trading on a Daily chart may require you to have a stop 120 pips away from your entry price, and when you consider the 2% risk rule, you would end up with a much smaller position size. Now, if you were trading off the 5 minute chart and had a 15 pip stop, and using the same 2% risk, you can see that your position size would be much larger. The trade of being the possible potential profit as I'd expect to drag a lot more pips from a Daily chart trade than a 5 minute chart trade. Bit of a catch 22 here. Then you have to decide which pair or pairs you want to trade. If you are trading multiple pairs on the larger time frames, it is quite easy to do so. This may also help with giving you more action, if that is what you are after. But trading multiple pairs on the smaller time frames can be a little stressful and sometimes difficult to keep control of when things start moving quickly. It also plays with your mind a little, especially if you have a losing trade on one pair and try to make up for it on another pair, which may cause you to ignore your normal exit rules. I think they call this revenge trading. If you are going to trade off the smaller timeframes, may I strongly suggest you concentrate on one pair to start? This just makes life a lot easier and you can put all of your efforts and concentration into this one pair. My bread and butter set up, is the EUR/USD on the 5 minute chart, with a 60 minute chart next to it, just to give me an idea of the general trend. I have a couple of basic indicators on both charts. I chose the EUR/USD for a couple of reasons. One it has the lowest spread on Oanda, dropping down as low as 0.5 pip during normal trading times, and two, it is by far the most popular currency pair traded. I think it accounts for close to 70% of total Forex volume. Don't quote me on that though! I have a target amount of pips for the day and then I am done. I close down my charts and do other stuff. I sleep better when I have no trades on. The above is what I do, and what works for me. It may not work for you and I'm certainly not trying to convince anyone to follow my path. If you have had experience at trading anything, you will know that there are thousands of different ways to trade, and Forex is no different. If you were after a good book on Trading in general, then may I suggest a book called 'High Probability Trading' by Marcel Link. It covers all the major topics and is quite informative considering it is such a huge topic. He does a great job of covering the understanding and use of the majority of the most used technical indicators. It is a book that would be well placed in any good trading library. The other “book” I would suggest is 'Google' as it is the world's biggest library by far but please remember, you have to sort out the good from the bad.

Chapter 5

Further Information on Forex Specifics Risk-Reward Ratio The risk: reward ratio is something that you may hear a fair bit about. Some will say that you should never trade with a risk: reward ratio of less than 1:1, or 1:2, or 1:3 etc. All it is doing is comparing your risk to your reward. Here is an example to make it very easy to understand. If we had a risk: reward of 1:2, then for every one unit we are risking, we would be looking for two units in return. Or to put it in trading jargon, if we had a trade on with a 30 pip stop, we would be looking for a profit of at least 60 pips to give us our 1:2 risk: reward. If it was a risk: reward of 1:3, then we would be looking for a 90 pip profit on the same example. Now, why is risk: reward important? Well, it is and it isn't. It all depends on your trading success rate. If you had a trading system, where you had a fixed 20 pip stop and a fixed 40 pip profit target on all trades, then your risk:reward is 1:2. If you were successful in 40% of your trades, then, in the long run, you would be a profitable trader. So that is not a problem. But if your success rate dropped below 35%, then you would start to have problems long term. Where a trader may have a trading method where they use a 20 pip stop and a 10 pip target on all trades, which gives you a negative risk: reward of 2:1, which is a lot of traders' opinion would be considered a surefire way to ruin. But if that same method had a success rate of 70%, then this trader would be profitable overall. And there are plenty of successful traders that trade like this. To take this further, a trader may have a method where they have a 20 pip stop and a 100 pip target on all trades. Great risk: reward at 1:5. Here, they would only need a success rate of just under 20% to be a profitable trader. Whether you could stand the high number of losers is another issue. Don't be scared off by what others say about risk: reward. There is nothing set in stone here, but just make sure you have a fair idea of the success rate of your trading method, so you can see where you should end up over the longer term if things were to remain constant. If you are losing long term, then something has to be changed. This is where keeping good trading records helps, and this is a subject I'll be covering later. Types of Orders according to our free forex training Trading Forex and placing orders is very similar to other types of trading. Not much changes here. But I'll go over the more common order types for those that are new to trading. Market order - this is where we jump straight in or out of a trade at the current market price. This is where you may experience some slippage on some platforms if the market is moving quickly, which is something to be aware of! If you miss the price you hit the buy or sell button at, you will be asked if you want to go with the new price. It will give you a couple of seconds to decide, and if you don't do anything, the order is canceled. This is called a re-quote and it can be a little frustrating at times. Buy Stop or Sell Stop - this is where you enter the market going with the trend.That's probably the easiest way to explain it. In the case of a Buy Stop order, you are placing an order to buy above the current market price, so when the market moves up, your order is filled on the way through, where you want the market to continue to rise. The Sell Stop order is the opposite. You set an order to sell below the current price, and when the market falls, your order is filled on the way through, and you are looking for the market to continue to fall. Buy Limit or Sell Limit - this is where you are looking for a reversal and going against the current trend. With the Buy Limit order, you are placing an order to buy below the current market price, looking for the market to drop down to your entry-level, where you will be filled, and then hopefully the market would turn around and head up. A trader may use this if they are trading off Fib levels or Pivot points etc. They would have a specific reason as to why they would think the market is going to the turnaround near their entry point. Dare I say it, but a Sell Limit order is the opposite. You would be placing an order to sell above the current market price, where you would be looking for price to continue to your sell order, be filled, and then turn back down. Again, there may be some resistance level, Bollinger bands or something else that makes the trader think that price is going to reverse near their entry point. At the time you place your trade, a lot of platforms allow you to set your stop loss and profit target at the same time. This is up to you, but I would strongly suggest at least a stop loss is set as soon as possible. It doesn't have to be your desired stop, but as long as one is set, once the dust is settled and you are in the trade, you can quite easily adjust the stop to the preferred position. This is where Oanda is good as you can set defaults for entry size, stop and profit. Once these are set, and then it is quite simple and quick to place the trade, then you can just go back and adjust anything you wish, and this can be done directly off the chart also. Position size on Oanda can either be set as 'unit size', 'US dollar amount' or a 'percentage'. There is also an option of setting a trailing stop, which can also be set as a default. You would use this just to trail your stop at a certain level behind the current price to lock in profit as a trade develops. It is not something I use, so I can't really comment on the benefits of using a trailing stop but some may find it handy. Keep in mind that a lot of these different brokers or different platforms have their rules for how close you can place stops, profit targets etc. This can vary on what time of day you are trading also, and if there is major news coming out. You will find that broker A is good for something that broker B is not, however broker B may offer another item on their platform that is far superior to broker A. There is always a trade off when it comes to brokers. The trick is to find a nice balance of honesty (very important), reliability, spreads, execution, charts, support etc. Do your homework here. How Many Pips is Enough? This is something that may get your attention, as you may be surprised on what little profit is actually required to make a success of Forex trading. Previously I have spoken about the average daily move of the major pairs like the EUR/USD and the GBP/USD, which is normally around the 80 - 120 pips mark. Remember this is not necessarily from the low to the high or vice versa, as the market may start and finish on the same price in that period. So as you can see, there is normally a fair amount of movement in the day, and therefore plenty of opportunity to grab some of that action. I don't know what your lifestyle is like or what you would consider to be a decent income from trading to maintain your present lifestyle, so let’s just talk in general terms. You are an average Monday to Friday worker, and maybe work the odd Saturday. That's typical here in Australia. Your wage may be in the vicinity of AU $800 - $1000 per week. So we are looking at roughly a 40hr week plus travel time and expenses etc. In your spare time after work, you dabble in the world of Forex and you aren't too bad at it. You trade for a few hours on your $10,000 account, keeping your risk per trade at the 2% mark, keeping your stops nice and tight and lock in profits quickly. After a few hours each night, you can consistently take 20 pips out of the market and then call it quits. It doesn't sound like much and it also doesn't seem to be too hard. Yeah right! 20 pips a day. Now on the $10,000 account with 2% risk and tight stops, trading one (1) standard lot would be quite possible. Remember I generally say that one (1) pip on a standard lot is equal to US$10. If you were trading the EUR, GBP, AUD or NZD, then that would be exact. Now 20 pips x US$10 = US$200. For us Aussies, that is about AU$220 (depending on the exchange rate at the time). I know, it doesn't sound that impressive yet. Do this for 5 days however, and you end up with 100 pips or US$1,000 or AU$1,100. Already, I can see a good improvement on my average 40hr working week here in Australia. I don't know about you guys, but US$1,000 per week is a handy sum in any man's language (or woman's). Some will be used to more and may consider US$1,000 not worth getting out of bed for. If this is the case, then I'm sure you can start trading with a much larger account size or I can show you a way to increase the amount without any further risk using the power of compounding! If you can make 20 pips on a daily basis, you would be crazy not to try and improve your profit without increasing your risk. How do we do this? Using our above $10,000 account and trading one (1) standard lot for the week. We make the 100 pips for the week; therefore end up with a profit of $1,000. Now assuming we have a normal job and we don't need the $1,000 for living expenses, so we leave it in our trading account. The following week our account balance is now $11,000, and with the same 2% risk per trade, we can now trade 1.1 standard lots (or 11 mini lots). If we make the same 20 pips per day, we are then making $220 profit for the day or $1,100 for the week. Where the following week, our account balance would stand at $12,100 and our position size would be around 1.2 standard lots, and so on. As you can see, our profit is 10% per week, and that is a very good return. Now some of you may think that this is pie in the sky stuff and a little unbelievable. This is probably understandable as that is the way we have been trained to think, where we believe anything over 20% profit for the year is a good result. I can assure you that 10% per week is not that spectacular in the world of Forex trading. Mind you, most traders would kill for those results, but I know of one chap who is well known amongst traders that targets 5% per day, and he does this all by chasing 20 - 25 pips per day on 2% risk, just trading the EUR/USD. The above may be possible to achieve in a perfect world, but who lives in one of those? We all know that it isn't that easy as there is something about traders that seem to just stuff it all up. I think trading psychology has a lot to do with it, and that is another chapter in itself and coming up next. Most of the above revolves around a day trading type method. Obviously if you were trading off the 60 min, 4hr or daily charts, you would have different daily targets etc. But there is nothing to stop you from aiming for the $1,000 weekly target and adjusting your position size accordingly. The above examples are simply to give you an idea of what is possible and realise that you really only need to make a small consistent profit on a regular basis. You don't have to go for the big kill every trade. Control the losses, hit your targets and then call it quits for the day. 20 pips profit a day will do it! I told you Forex trading is easy; follow our free forex training course until the end!!

Chapter 6

Trading Psychology Now here is a subject that you love to hate! Even though a lot of people will just gloss over this and think it is really not an issue in their trading, they could not be further from the truth. What is our stance in this free forex training course? Do not underestimate the importance of trading psychology, we are human-being after all. It is important, and it is important to know how it affects your trading. The majority of the human race has emotions and these emotions certainly come into play when you have some real hard-earned cash on the line. I'm sure if you have been trading for a while, you would have experienced a variety of different emotions, some good and some not so good. I know I have. I'm not sure where the figures come from, but they state that 90-95% of traders fail! I guess if it was that easy, we'd all be doing it and making a killing. No one would have to work, and if that was the case, we wouldn't have any financial markets to trade. The success rate is low. So what makes you think you can be one of the 5-10% that can make a go of this trading game? I'm not just talking about Forex here; I'm talking about all trading. Now, in my humble opinion, I believe 'Fear' and 'Greed' to be the main culprits that hold us back from achieving our dreams. The way I look at it is that you are fearful of losing out on the big move, so you stay in the trade, or you are greedy and want everything from a trade so again, you stay in the trade. Let’s have a look at a simple example. Say we are looking at the 5 minute chart on the EUR/USD. It is normally a chart that has a fair bit of action, moving up and down throughout the day. Now the market can only do one of three things. It goes up, goes down or goes sideways. Now if you had gone long and bought the EUR/USD, and it heads up, you are a winner. If it goes sideways, you don't lose anything and if it goes down, you lose. So to keep things simple here, you have a 33% chance of losing money, which means you have a 66% of not losing money. Okay I'm assuming that before you bought the EUR/USD, you thought that it was going to go up according to the rules of your trading system. It doesn't matter what method you use to trade, as there are thousands to choose from, which in your eyes will give you a higher probability of the trade moving in your preferred direction. This is way too easy as we have a 66% chance of not losing and we have a method that puts the odds well and truly in our favour to choose the correct market direction. Why is this so hard? Human emotions make it hard. It’s as simple as that! As soon as you enter, any of those three directions can happen, keeping in mind the market rarely moves in a straight line. Just because it looks like the perfect buy set up at the time, this may not be the case where you actually bought at the exact high for the day. This happens and the mind games begin. One of my favourite sayings, which I say aloud to myself several times a day, is 'Patience, courage and discipline'. This mainly refers to my trading, but I guess you could apply it to a lot of everyday events in your daily life. Patience is obvious. You wait for the correct signal to enter a trade, or exit for that matter. Don't be afraid of missing out on a trade as there will be another potential opportunity sooner than later. If you are in doubt, stay out. Sure, you may miss some nice moves every now and then, but so be it. You can't expect to catch every trade or every market move. Courage refers more to have conviction in your trading method and following it through, during both good and bad times. You know the system works as you have tested it and tested it again. You stick with the plan and see each trade through to the end. Discipline is the whole package. You have a tested trading method and you have certain rules within this method. You have to be disciplined to follow the rules to the letter. Without discipline, you will be tempted to change the rules mid-stream, which will further confuse the emotions and lead to further problems. They certainly all tie in with each other and can be looked at as a three-legged stool. Without one of the legs, the stool is useless. That's how important they all are. This is just my little saying that keeps me focused as they are words I use every day. You may wish to come up with your own way of thinking or dealing with trading psychology. Here are a few example of how the market plays with your mind. You have just gone long but as soon as you enter the trade, the market falls away, and it appears you have bought right at the top. You then get stopped out to the exact pip, where the market reverses and heads back in the first choice direction, past your original entry point and beyond. This happens all the time, and no there isn't some sort of conspiracy by your broker to clean out your stops. This sort of thing will frustrate you, but if the market dropped and came within 1 pip of your stop and then reversed back in your first choice direction, giving you a very successful trade, then you would consider yourself lucky that your stop loss held by one pip. Again, this sort of thing happens all the time. One result will have you feeling like the whole world is against you and the other result will have you feeling like the king of the world. You may be trading more than one currency pair where you have taken a bit of a hit on one of your trades. You are down 20 pips and you now have a nice trade on another pair. Your rules state that you have a profit target of 15 pips, but because you were down 20 pips on a previous trade, you ignore your rules and go for 20+ pips to make up for your loss. The trade goes well, gets up to +18 pips and then turns around and heads south quickly, stopping you out. Now you are 20 pips down from the previous trade, and also down for whatever this trade cost you. Your emotions are being tested, because if you had followed your rules, you could have taken the 15 pips profit as per your rules, and only been down 5 pips to date. This sort of revenge trading is not recommended as you more times than not, you will dig yourself into a deeper hole. There are many examples of what can go wrong like removing a stop or even moving a stop further away, adding to losses, ignoring your target, ignoring reversal or exit signals, cutting your profits too early, not concentrating, forgetting about news releases, trading while sick (or after a few drinks), letting your ego decide market direction etc etc etc. There are many reasons why things go wrong, and when they do, your state of mind will be affected in different ways. There is no simple answer to all of these potential problems, you just have to work on your own discipline and work out your own way of dealing with these sorts of issues. Get used to having losing trades and accept them as they are just a part of the bigger picture. Also get used to seeing potential trades come and go without you being on them. You cannot expect to catch every move in the market. It is also an advantage if you can control your own emotions, by treating every trade, whether a winner or loser, the same. Of course, the desired outcome is to be profitable, so it should also be taken fairly seriously. If you want to be profitable, stick with your rules, concentrate and keep your emotions in check. Remember PATIENCE, COURAGE and DISCIPLINE! A Bit More on Psychology Most traders start off in this business from, what most people would consider a normal background. By this I mean that you would have a normal job where you are required to work 38, 40, 50 or whatever hours a week. At the end of the week, you receive your pay check, knowing that for every hour you have worked, you have earned $25 (example only). So you may have this psych built into you that you have to work your 40hr week to be entitled to your $1000 pay check. I'm just talking about Mr or Ms Average here. Now with trading, things are a little different, and it does take a little getting used to. Traders trade in a variety of ways on a variety of different time frames, with different objectives in mind. So first up we'll go back to my Day Trader example, where I was chasing the 20 pips a day scenario. Say I started trading at 2pm local, and had achieved my 20 pips by 2.30pm local. This does happen quite a bit. So it has taken me 30 minutes to hit my daily target. Now what? The smart and the disciplined thing to do would be to shut down your trading platform and walk away. What do you think most traders will actually do? They think, well that only took me 30 minutes to hit my target, so imagine what I can achieve in a few hours. I have to justify my profits with some effort! Guaranteed the next trade will be a loser. Then you have the problem of chasing your tail for the next few hours just trying to get back to the 20 pip target. At least you will get your 8 hours trading, and still end up with the same result. I did this a few times in the past, as I was a bit of a slow learner but now, as soon as I hit my target, stops are brought in real tight to lock it in, and if the market continues in a favourable direction, then good luck to me, but once I'm stopped out, I won't enter another trade. Walk away. Another example I experienced, was trading with a group off the 60 minute charts where we were in the market at all times. Basically your position had to be checked at the top of every hour. We were trading 3 pairs and our overall target was +200 pips for the week. Once we achieved the 200 pips, we called it quits and then waited for the following Monday. As you can imagine, monitoring 3 pairs every hour can lead to sleep deprivation, marriage breakdowns, lack of social life etc, but the good news was, that most weeks we were finished by Tuesday evening. So we started Monday morning and done by Tuesday evening, with our 200 pips safely in the bank. It was very tempting to continue trading for the rest of the week to go for the big kill, and initially we use to do this, and like the 20 pip a day example, we would end up losing a few trades dragging us back to where we started on the Monday. There was the odd the week, where had to work right through just to get us to the target (or close as possible) and they weren't pleasant at all. On a good week, we would only enter a couple of trades and be done within a few hours. You don't realize just how hard it is to sit on your hands for the rest of the week. What I am getting at here, is just because it only took you a few minutes or hours to earn what you would normally earn in a day or a week, don't think you have to justify chasing more trades to account for your time. One of the main reasons we all get into this, are for financial rewards and time to enjoy those financial rewards. Try to avoid the greed factor and just concentrate on taking small consistent profits over time without wearing yourself out. Once you can achieve this, then it is just a matter of letting the power of compounding do its thing. It may be slow going at first and you may think it will take forever to achieve any real significant returns, but once it cranks up like the snowball example, you will be rolling in it. Looking for 20 pips on a $1,000 account is exactly the same as chasing 20 pips on a $500,000 account as long as your risk percentage remains constant. It is only the mind that plays tricks on you when you start dealing in bigger numbers. If you are not used to the big numbers, then it is sometimes a little difficult to wrap your head around them. The plan is to build up slowly but surely, and when you get to a level you are comfortable with, then it may be a good idea to start enjoying your profits and reinvesting money into other ventures such as charities, education, family or even an Aston Martin. Whatever floats your boat. Well, that's enough of the deep and boring, albeit very important, stuff. The next chapters will go into a few trading ideas and where we can find these ideas, which should be a little more exciting. But please be very aware of fear and greed and how it can affect your trading!

Chapter 7

Time to Trade with our free forex training course Okay time to get into the trading. To date, I have explained what Forex is all about so you should have a reasonably good idea of the basics. It is now a matter of getting your hands dirty by actually doing a bit of trading. As mentioned earlier, there are plenty of brokers out there that offer you the chance to demo trade. This is a great idea, but please don't be fooled into thinking that you can replicate your demo trading into your live trading without missing a beat. It is just not possible! What I would suggest is that you open a live account that allows you to enter with micro lots (1 pip = 10c), so at least you are trading with real money. Not much I know, but enough to keep you interested. Anyone can successfully trade a demo account as there is just no actual risk or emotions involved. As you have probably guessed by now, I am a technical trader, which means I look at the charts to determine my trade entries etc. I don't trade the news, simply because I don't understand it, but I am very aware of when major news is being released. When I say I trade off the charts, it basically means I am using technical analysis. I like the whole visual thing with charts. Now there are thousands of technical indicators and trading methods out there. They are everywhere. Just look in any of the big Forex trading forums, and you will find plenty of free information on all sorts of methods on trading from tick charts to the monthly charts. Some information is good, but most of it is rubbish. You have to remember, what may work well for one trader, may not work at all for another. Also, you may have two traders trading the EUR/USD. Trader A may be long, and Trader B may be short. Now naturally you would think that one of them must be wrong, but what if Trader A was trading off a 1 minute chart and Trader B was trading off a daily chart, then it is quite possible that both of them are correct in their analysis (or both maybe wrong). Different horses for different courses. There are so many technical indicators out there that it would be difficult for me to cover them all. I am aware of a lot of them, having tried most of them out. I know quite quickly whether something works for me or not. I do have my favourite indicators, and I have ones that I have no idea of how anyone works them out. One thing I must say is that about 99% of technical indicators are lagging indicators. That is, they only really move after the market moves, and their position is only obvious after the market position is obvious. Anyone can look at the history (left hand side) of a chart and see some beautiful moves based on an indicator of your choice. That hindsight is a great tool! I figure all I need is a time machine that puts me about 1hr into the future and then lookout Forex. Getting a bit silly now, but you can see what I mean. When you are trading live using your indicators and watching the very far right of your chart (the current price), you only have an opinion of which way the price is going to move next, as you do not know for certain which way it will go. Nobody does! All technical indicators do are giving you a higher probability of something happening in a particular direction based on your interpretation of the indicator/s at the time. They say a lot of technical indicators are self-fulfilling. What I mean by this is that a lot of traders use the same indicators and therefore expect the same thing to happen at a particular point. An example would be using Pivot Points. The price is heading up towards the R1 (1st resistance level), hits it briefly and bounces back down. Was it the actual R1 level that stopped price or was it the case where many traders knew about this level and set sell orders at that level, forcing price to bounce down off it? Who knows? The same applies to popular Moving Averages like the 50 or 200, also Fib Levels, Bollinger Bands etc. One thing you have to keep in mind is: PRICE IS KING. Period! You can have all the indicators in the world on your chart, with all the planets aligned, where you think 100% that price is going in a certain direction, only to see the exact opposite. There is no certainty in trading, so you have to be prepared for the worst at all times. PRICE IS KING! As a trader, I much prefer to open a trade in the direction of the market at the time, or to say it another way, I go with the trend. Some traders will prefer to look for turning points, where they will trade the opposite direction to the current trend. Go back to my above example of the Pivot Points with price approaching the R1 level. I would be more inclined to ride the trade up to that level and look at getting out near that level if I had been long, whereas another trader may have placed an order to sell at the R1 level, looking for that bounce down even though price may have been heading up there for the last few hours. There is nothing to say that the market will stop and reverse at that R1 level, as it may continue right through without skipping a beat. I still can't wrap my head around looking for turning points, but it has proved quite successful for other traders. I have seen quite a few different systems over the years, and have come to appreciate the amount of effort and imagination that goes into some of them. A lot of these are done by taking a standard indicator or idea, and slightly twisting it a bit so you aren't doing what everyone else is doing. The trick is finding something that works for you. I use technical indicators, and I look at both short term and long term trading. Sometimes I like to be done for the day quickly and other times, I have no problems being constantly in the market. If I had a choice, I would much prefer to trade the longer time frames just to cut out the noise. Also I don't want to be sitting at my computer for hours on end, but then again, I enjoy the thrill of the chase. Sometimes waiting for set ups on the longer time frames gets a bit boring for me as I like a bit more action. I guess I have to find a balance like everyone else, hence the reason I have two accounts to cover both types of trading. The beauty of day trading is that it doesn't really matter if you miss a day or two, but if you are trading the bigger time frames, you are quite committed to the markets. Day Trading or Longer Term Trading? I will cover short term trading first. Most would call this Day Trading. If you are a Day Trader, that means you will be in and out of the market within the same day or session. Once you have finished for the day, you would have no open trades left. They call this ‘being flat’ in trading jargon. I would prefer not to be sitting at my computer for hours on end if I can help it. You have probably gathered by now that I have a specific target for the day, and this is normally around 20 pips profit. I have been through the math and the power of compounding, so you know my thoughts on this already. With the day trading, I stick to trading just the one pair, the EUR/USD. It is by far the most popular pair to trade and it consistently has the lowest spread. FXTM, which is my day trading platform, the spread is normally less than 0.8 pip. If you were trading a pair that had a spread of 5 pips, then as soon as you enter, the market has to move at least 5 pips in your favour just to get you to break even. Trading the one pair also allows you to concentrate all your efforts into that pair. I will look at starting my trading any time after 2pm local. This is the tail end of the Asian session, which is then followed by the London (European) session, and if I am not done by then, it is into the US session. As previously mentioned, I will check with Forex Factory before I start to see what major news releases are due out that may affect the EUR or the USD. I need to be aware of these so I can be prepared around those times. Very important! I won’t go into specific set ups that Day Traders use; as there are just so many variations I could not do them justice in this book. Some traders look to trade off 1 min charts, while others would look at the higher timeframes. An example could be a Day Trader using the 5 min chart for entries and exits, but bases all these trades on the direction of the 1hr chart, which acts a filter of sorts. If you go into any of the popular trading forums you will find thousands examples of day trading set ups. With day trading, you have to really go all-out effort wise, with total concentration. You have to be prepared to take small losses and keep chipping away at the market. Just about every day, there are one or two decent moves on the 5 min chart that will make it all worthwhile. Don't be greedy, going for the big kill every trade. Perhaps start your day with a small trade looking for 5 pips just to give you that winning feeling. There is a lot of discretion involved in day trading also, as it is very difficult just to rely on indicators to get you in and out of trades. They certainly help but there are plenty of times where you would just look at the chart and see something doesn't look quite right, and in that case, you may give it a miss. You may regret that decision, but that's trading. There will be plenty of trades coming along soon enough. Now I want to talk about long term trading, where you can be in the same trade for hours, days or even weeks. When I say long term, I am normally referring to trading off the 1hr, 4hr or daily charts. Some traders may look to the weekly chart or even the monthly chart, but that's not for me. Some may even refer using the 1hr and 4hr charts as Swing Trading. I find the problem trading off the 1hr charts is that you tend to end up also doing a fair bit of screen monitoring, hence I lean towards the 4hr and daily charts. With the daily charts, I normally check my trades at least once a day, possibly twice. My daily charts tick over to a new day at 8am local, so I check them when I get up first thing in the morning, and even though the new candle has not yet opened, I will have a fair idea of what is happening as it is after the close of the US, and Asia hasn't really kicked in. A bit of a dead zone really, which suits me just fine. Then maybe in the evening sometime, just to make sure there have been no dramatic changes. That will do me. The 4hr charts obviously require a little more monitoring but can still fit nicely in with a normal day job. Trading off the daily charts allows you plenty more free time to do the other things in life, like go to the beach, walk the dogs, play chess or whatever blows your hair back. Because you have much more time and your trading decisions aren't rushed, you can afford to follow several pairs at the same time. No need to limit yourself to the one pair here. Also spreads are not such an issue, because of the big moves involved where even a biggish spread will be well and truly absorbed in the action. But please be warned, you cannot take the same position size in your trades. There are a couple of reasons for this. One is that it will be highly unlikely you will use the same tight stops as you would use on a day trading (5 min) method. You may, but I doubt it. Keep in mind your risk per trade. I have discussed risking 2% on each trade, and if you were to use this figure, then that 2% must be maintained on these types of trades also. So it only makes sense that if you used a 15 pip stop on a 5 min chart trade and were using a 150 pip stop on a daily chart, your position size on the daily chart is going to be a lot smaller. And secondly, as you are more than likely trading several pairs at once, your overall risk will be higher, especially if the pairs with open trades are highly correlated like the EUR/USD and the USD/CHF. Again it is a risk issue, but more of an overall risk. If you were to risk 2% on a long EUR trade and also 2% on a short CHF trade, because of their very high correlation, your actual risk is more like 4%, because if one goes wrong, then more than likely, so will the other. Just be aware of your overall risk when you combine all your open trades. It may be a good idea to look for the least correlated pairs to trade when several good signals appear on your radar. A bit of common sense is required here. Now you must keep in mind that you are trading off the daily charts, so you may experience some huge moves against you, and a lot of traders may not be comfortable being a couple of hundred pips or so down in a move against them. It just doesn't sit well with them as it is playing with their mind. Remember some of these majors move on average 100+ pips a day. You have to look at the big picture though, because as soon as you nail the start of a good move, your profit can be in the many hundreds or even thousand plus pips. These are the moves you want to catch and trust me, there are plenty of them. Trading several pairs may also help with an overall result (as long as you are not wrong on every trade). You do have to look at the big picture and not just judge your results on a daily or weekly basis. I would suggest you look to the month to month results, as this will give you a much better overall indication of how your daily chart trading is performing. You have to give it some time to prove itself one way or the other. Trading off the 4hr or Daily charts is a laid back way of trading and may suit the trader that may have a normal day job or family duties that prevent them from becoming a zombie and sitting at your computer for hours on end. The options are fairly unlimited, and the trading forums will give you plenty of ideas if you are having problems coming up with your own system or method. You have to find something that works for you, and something that you are comfortable with. Not all trading systems are the same, nor are all traders the same. According to our free forex training, we understand at some point you will discover your own style of trading, be it high, medium or low risk. Keeping a Journal or Diary Before I get into the actual trading side of things, one thing I do want to mention is the use of a Trading Journal or Diary. This very important to me as it keeps a detailed record of not only my trading results, but also other useful information that I can refer to later if required. A journal or a diary can be as simple as an exercise book where you handwrite everything. When I put pen to paper, it actually makes me think about what I am doing and helps me confirm my thoughts at the time. You may decide to keep your information online via an ongoing word document or something similar - just make sure you keep copies and back it up as you go. I also use excel spreadsheets at times, to provide an overview of results when I am trialling different systems. One glance at these can give me a quick and accurate overview of how a particular method is performing, especially if you add colour to it. A Journal or Diary is not simply a place where you keep your trading results recorded, it is much more than that. If you are trading a particular method, you may wish to describe how it works in detail for future reference, and also to record any modifications to the method as you go. You could also record the details of your money management plan along with adjustments to the plan as you go. Once you have traded a particular method for a while, you could make some comments on how it is performing, and how it may be improved. Any mistakes you have made should also be highlighted to ensure you don't make those same mistakes over and over. Maybe you would like to comment on how you are feeling at the time, or if you had any technical problems, or any other outside interference that disrupted your trading. There is so much you can put into a Trading Journal/Diary, and it is up to you how simple or complex you wish take it. Here is an example of my Journal entries. These are all hand written in a large book in handwriting that I think is a little hard to read and seems to be getting worse with age! But I digress. Before I start trading at all, I will go to my Trading Journal, write in the day and the date, followed by my starting account balance. I am mainly a Day Trader, so every day is a new start for me so I don't have any open positions to worry about. I already know my money management rules as they are loaded into my trading platform, but I would have written this down previously in the Journal. Directly under the day and date, I would put another subheading called 'News', and after checking the Forex Factory Economic Calendar, I would note the time of any major news and the currency it will affect. I don't care what the news is, just when it is coming out so I can be prepared for it. So my news info maybe something simple like this: 10.30pm – USD This tells me that at 10.30pm local, there is major news coming out that may affect the US Dollar. Simple as that and I will set an alarm on my mobile that actually has a voice recording of me saying 'Check the charts Jim, as there is major news coming out soon'. It might sound stupid, but my family knows what it is all about. Then I'm into the trading if I know I have a clear couple of hours. If I had to pick up one of my kids in an hour or so, I may just hang back until that task is completed. Okay, so the first trade is on, and here is an example of how I would write it up. I do use a bit slang and abbreviate words, but I'll explain it all to you. EUR B 1.2 @ 1.4215 @ 6.01pm. Stop -20, target +20 Mkt had turned up nicely with all signals on 5 min chart bullish. Also 60 min confirmed this with price having recently bounced up off the MPL, after price ranging for most of the day. Went up to +15, so stop moved up to 1.4205 (-10). Closed at B/E at 6.23pm as mkt had turned down and was looking a little ugly. Again I was up over 10 pips and let it slip. That is an actual entry from my journal on Tuesday the 21st July. My first trade for the day. So you can see I bought the EUR/USD, with position size, time, stop and target all nominated. The position size, stop and target are all pre-set in my trading platform, so they just happen automatically. I then gave my reasons why I took the trade as all my signals were bullish on my 5 minute chart. I then comment on the 60 minute chart, with MPL standing for the main pivot line. This was followed by some trade management by moving my stop up and reducing my risk as the trade moved in my favour. I then explain why I closed the trade due to the fact I didn't like the look of the 5 minute chart as the indicators must have started to turn bearish. This includes the time of close and the result, and in this case it was at the point of entry or break even (B/E). I then go on to state that I should have taken some profit at least out of this trade as I was up over 10 pips in profit. As each trade is closed, I keep a running total of pips won or lost in the left margin, so I can see at a glance where I am at for the day. Once my target is hit, stops are tightened right up or I just close out. There is no better feeling than getting a trade into a 'no lose' situation. So you can see it is fairly basic, but it does give me something to go back over at the end of the day to see what I did either right or wrong. You may end up trying a few different trading methods, and in a few months go back through your Journal to see what worked for you and what didn't. The Journal will cover a lot more detail than just a simple spreadsheet with results. That’s all I have to share for now, so it’s time to get your Trading Journal organized and get ready to start trading…

Chapter 8

Conclusion This brings me to the end of this book on Forex Trading. Thank you again for downloading this book! I hope it has helped you gain a good understanding of how the whole Forex market is set up and how it works. I have deliberately kept the explanations simple and straightforward so everyone can understand it. You do not need to be bamboozled with technical and complicated jargon. Just like driving a car where you don’t need to know how it all works, as long as you know how to drive it and understand the road rules. The same applies to Forex Trading. Some people try to make it sound harder than it is, but having said that, it is not as simple as it looks to be a consistently profitable trader. There are so many factors to be taken into consideration, but like anything, if you practice enough and learn by your mistakes, you can go on to be a part of the small group of successful traders. Remember the motto of our free forex training from earlier PATIENCE, COURAGE and DISCIPLINE. Bonus Trading System Download MT4 and indicators HERE: https://drive.google.com/drive/folders/1sB1Gp4gYiIRXo0Gu_eKbhkwIXUJ9VZUk Please open (unzip) this folder to access the following: Instructions.pdf (also provided below) Template Modified MACD.tpl 5 x Custom Indicators MACD_Complete.ex4 MACD_Platinum.ex4 PIP-F_AFTRStop.ex4 QMP Filter 1.01.ex4 QQE ADV.ex4 Introduction This system will work on the MT4 Trading Platform only. Version 2 of this presentation was put together in December 2015 therefore; any MT4 version close to this date will work well. MT4 is the Metatrader 4 platform which is offered by many brokers for free, either in the demonstration or live accounts. It is owned by the Metaquotes Software Company. An internet search of MT4, will provide several reputable brokers in the first few results, where you can download the MT4 platform for free. It is simple to use and if you are having any difficulties, Google and YouTube also provide access to many free tutorials. You should have by now provided your email address to automatically receive the modified MACD template and a number of custom indicators. You will need to upload all of these indicators onto your MT4 platform for the template to display correctly. Template and Custom Indicators Instructions on how to upload a template or a custom indicator onto your MT4 platform and how to display them are available here: There is no mention of the ATR Stop indicator on the video and this will be explained later. Indicators required are QMP Filter, MACD Platinum, QQE Adv and MACD Complete. With regards to the MACD Platinum and QQE Adv indicators, there is no requirement for them to be displayed on the chart, but they do have to be uploaded onto your MT4 platform as they are the two indicators required to make the QMP Filter work. It may sound a little confusing now, but it will all be clear shortly. When you load your template you should see a grey background chart with a 25 SMA and 240 LMA over price, and also the QMP Filter with the red and green dots. Below that you will have a modified MACD with the settings of 6,12,1. This is represented by the dark blue line and also the zero level. On top of that MACD, there is an orange dotted line which is actually the standard 12,26,9 MACD (explained later). Below these 2x MACDs, you will have a 3rd standard MACD with the histogram highlighted also. If you have used my template, your chart should look something like the following on your MT4 trading platform:

My Thoughts on Trading Once you have loaded the indicators and have your charts set up the way you like them (or use my template), it is time to start trading. Here are a few ideas regarding how I like to trade and of course, it is entirely up to you whether you choose to do this too. I like to trade off the 4hr or Daily charts. I may drop down to 1hr or 30m charts if I do have screen time available. The reason I trade is to make money so I don’t have to work in a “normal” job. Trading gives me a lifestyle, which doesn’t include sitting in front of my computer staring at charts for hours on end. I do keep it very simple and generally trade with the trend as I am not a huge fan of limit orders. I like the price already heading in the direction I am trading. You will see this with the chart examples. I keep the position size very small, for example I may use 0.02 lots on accounts with balances of around $5-$10K, especially on the Daily charts where there may be a huge stop. With the 4hr charts and lower, I generally consider a position size of 1 to 2% risk on each trade, already knowing approximately where my stop would be. There are free Excel spreadsheets available, which have been designed specifically for forex trading to assist you with these calculations. However, please be aware of combined correlation (risk) when trading multiple pairs. An example: you are long on the GBP/USD, GBP/JPY and GBP/AUD at the same time, and there is some major GBP news released, which will greatly affect the GBP only. Sure it may go in your favour, but it also may not, and with 3x trades on involving the GBP, it could get painful very fast. I normally keep my charts loaded with the same template no matter what time frame I am trading. News events do not worry me too much when trading off the Daily charts, but I will keep an eye on them with the smaller time frames. Entry Signals For a buy or sell signal I look for at least 3 of 4 things to happen, preferably all 4. The absolute critical one is that the Modified MACD (6,12,1) must have crossed the zero level, and this must have been confirmed. I normally take all my trades atthe close/open of whatever time frame I am trading. Rarely do I trade mid candle unless I have set a buy or sell stop order. Once I have that Mod MACD confirmed cross, I will need either of the following to have occurred at the same time or prior: A same color QMP Filter dot. If the Mod MACD crossed down through the zero level, then this represents a sell, therefore the QMP Filter has to have had a red dot for sell also. If the Mod MACD had crossed up through the zero level, then this signifies a buy and therefore you would need a green dot on the QMP Filter. Normally, but not always, the QMP Filter is the leading indicator. This means that you will see a red/green dot on this before anything else which gives you a warning that there may be a change of direction coming. Price has to have closed either above or below the 25 SMA depending on whether you are buying or selling. Obviously above for a buy and below for a sell and; The bottom standard MACD has to have had a cross of the two lines in the same way as the buy/sell signal above. It doesn’t matter where this is compared to the zero level on this MACD. And it does not matter what the histogram is showing. All we are interested in is the cross of the two MACD lines. Following, are some examples of entries.

In the above screenshot, you can see the red QMP Filter dot appeared first which was then followed by the cross of the bottom MACD lines also indicating a sell. It wasn’t until the fast 6,12,1 MACD in the center crossed the zero level that the sell entry was then confirmed.

Remember, there is no trade until that MACD crosses the zero level, and that cross is confirmed by a close of that candle. The trade is entered on the open of the small white candle just to the right of the red dashed line. The price also closed below the 25 SMA which just helped confirm it all and as you can see, it was quite a good trade.

The above screenshot also shows numerous entries across a chart with both buy and sell. All entries would have been on the opening of the candle to the right of each vertical line. As you can see, up until the last sell entry, the others all had the QMP Filter give an early indication of impending reversal trades. The second buy trade would have been a loser but you can see that the other trades certainly made up for it.

In the above screenshot, I am using an example of where you may only wish to take trades that are going in the same direction as the 240 LMA. Here all the action is below the 240 LMA, and you can see that the 25 SMA is also below it, so I would only be taking sell trades and ignoring any buy signals altogether. I would tend to do this style of trading if I was trading off the smaller time frame charts. You can clearly see that 4x sell trades were taken here. No.2 was definitely a loser but it was closed out quickly when the fast middle 6,12,1 MACD crossed back up over the zero line. I explain that in further detail below. But again, the winning trades would have more than made up for that loss. You may even wish to consider trading within a certain time if you were say, trading off the 5m charts eg the start of the London session for 3hrs only. It is entirely up to you. Another possibility would be to look at a higher time frame and identify a major trend and then drop down to the lower time frame charts and only take trades in that same direction. There are plenty of options available to you. Another option would be to consider re-entries if already stopped out, or even additional entries. There may be a decent major trend in one direction with the MAs flaring out, and you have had an initial entry into this trend but now the fast MACD is staying well and truly away from the zero level, but the QMP Filter is producing new signals in the same direction on pullbacks. Great opportunity to enter further trades in the same direction however, be careful of position size and overall risk when doing this as eventually that trend will end. It can be a clever way to trade though.

In the above screenshot you can see a nice trend up. The initial buy trade was signalled just to the right of the left vertical line. As the trend progressed up there were a couple of pullbacks which were indicated by the red QMP Filter dots. These pullbacks were not enough to push the fast 6,12,1 MACD back down over the zero level, which then resulted in further green QMP Filter dots appearing on the trend resumption. Take further buy positions? It’s up to you. Trade Management It is your decision where you place stops. I normally go near the previous high/low area, or on the other side of the MAs if they are close. I may even consider just above/below the candle the QMP Filter signal was given on or the actual entry candle. You can also add the ATR Stop indicator to the chart at this time and use a level just on the other side of it, if in fact price is on the correct side at the time of entry. It sometimes isn’t which is fine. I would still take the trade anyway.

In the above screenshot I have added the ATR Stop to the chart on this same sell trade I have been using as an example. This is the indicator with the stepped looking red and blue lines above and below price. You can see how it kept me in the trade nicely on this big downtrend. I tend to keep price either just above it in a sell trade or just below it in a buy trade. There are times when price will just poke through the ATR Stop and then resume the original trend so it is best to give yourself a small buffer. Here you can see how it would have had me stopped out near the bottom of the trend. It doesn’t always work but it is handy to add to your chart once a trend begins forming. I keep it off the charts until I need it, as it does clutter up the chart somewhat. I use the 240 LMA as a possible target if trading towards it. At least close half my position if it hits this area. It also gives me a good idea of the overall trend, where I may only take trades heading away from it, ignoring trades back in towards it. Taking profits or trailing stops is up to the individual. You could use the ATR Stop I supplied. This works well on the bigger time frames. The dotted standard MACD line overlaid the Mod MACD can also be useful. These two MACDs, even though in the same window, actually work independent of each other and can be very dynamic. There are times when the two lines cross after you have been in a decent trend for a while, that may indicate the trend is either over or losing steam. It doesn't happen all of the time, but you will see it often. This is a good time to take some profit or tighten up stops. The histogram also gives me an idea of momentum and it is something I keep an eye on for an early indication.

The screenshot above displays one of the same trade examples from above. Here you can see that the center MACDs have had a line cross marked by the arrow. Now remember that these two MACDs work independent of each other and that crossing point may change if you shift the chart across your screen. But generally, if this appears on the right side of your chart in live time, then consider tightening up your stop or closing out a part of your position (or both). You can also see the histogram on the bottom MACD starting to run out of momentum. Then there is the green dot on the QMP Filter, which is another early warning that price could be changing direction. And now looking at the screenshot, I can also see divergence between price and the fast 6,12,1 MACD. So there are plenty of signs showing you that there is more than likely a possible price reversal on the way. When to exit a trade? I will always exit if the Mod MACD (6,12,1) crosses (and is confirmed) back to the other side of the zero level. Always! The ONLY exception which I may consider is when major news is coming out soon and I am in a trade already that has either a small loss, or is sitting on a small profit. If there is a new signal in the opposite direction, I may enter that trade also so I have both directions covered when the news is released. Both, with stops in place. This would not be possible for those that aren’t permitted to hedge (mainly US based clients), so in that case I would go with the confirmed trade direction and close the other. Now you may get a change of direction with a new QMP Filter signal, which is quite common, but everything else remains intact. Here I would stay in the trade and may even tighten up my stop. But if the bottom standard MACD also changes direction and price is getting ugly, I may bail out of the trade altogether.

The above screenshot shows where this method can get really ugly. This normally occurs in sideways markets, especially in the lower time frames during the very quiet times of the trading day. The above example is of a GBP/JPY 15m chart and between those two vertical lines is the tail end of the US session and into the Asian session. Plenty of red and green dots on the QMP Filter, but remember to watch the fast 6,12,1 MACD in the center and how that moves around the zero level. This is actually a very good pair to trade on this time frame, but it is generally much better in the busy trading sessions. The best way to check this out is by putting the template on a few different pairs over a few different time frames and manually back testing it to see how it works. Use your MT4’s Data Window feature to check to confirm if certain lines had crossed if in doubt. Also using the cross hair can be a very useful tool to assist. I am in the process of having a new MACD indicator built that has a something similar to the QMP Filter with green/red dots to indicate crosses, but this may be some weeks off. I have prepared a YouTube video with some trade examples, along with some discussion on trade management here: Conclusion Do not be thrown by the simplicity of this system. It is simple, very mechanical and can also be very profitable if you remain disciplined. What I have provided should give you an excellent framework to develop your own system with your chosen indicators, fibs, pivots, support/resistance levels, etc. which you can add to suit as appropriate. Like all trading, the hardest decision is determining when to take profit and there is no simple answer to this. As I stated earlier, keep your position size reasonably small, your risk small and scale-out of winning positions. If there is a trend reversal, exit the trade. You do not have to wait for a stop loss to be activated if you can see or suspect a reversal is coming. Use the ATR Stop to trail at a safe distance. Every Trader loves it when you have a trade on with zero risks as your stop is on the good side of your entry. Take what I have shown you here and modify it to suit your own trading style.

Are you ready to trade on a real account?

Go to forextime.com and login into your account. Click “My Accounts” and then “Accounts overview”

Under My Demo Accounts, click on the down arrow and select “Delete Account”. We would like to delete the Demo account so that we do not confuse it with our real accounts.

Under My Trading Accounts, click on the Deposit button (Minimum 100 USD).

Choose your deposit method and follow the instructions. Remember to deposit using your Credit card or Debit card (e.g. A cheque/current account) select the Credit/Debit Cards option depending on whether your card is VISA or Mastercard. Once the money deposited reflects on your account, you may trade real money the same way you have been trading with a demo account. Our free forex training course is just the start, to move to the next level, go to: https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/ Do you prefer video tutorials? Go to: Video Courses Video Courses Link Ultimate Forex Trading Training Videos - Level 1 https://videos.xyzpocket.com/ Best forex trading videos - Level 2 Advanced https://videos.xyzpocket.com/best-forex-trading-videos-level-2-advanced/ Complete Forex Trading - how to do Forex trading https://videos.xyzpocket.com/complete-forex-trading-how-to-do-forex-trading-1/ Easy Forex Trading for Beginners https://videos.xyzpocket.com/easy-forex-trading-for-beginners-1/ Forex courses online – Trading Forex indices https://videos.xyzpocket.com/forex-courses-online-trading-forex-indices-2020/ Learn Fundamental Analysis - Best Forex Training Online https://videos.xyzpocket.com/learn-fundamental-analysis-best-forex-training-online-2020/ Winning Forex trading learning with Live Trading Examples https://videos.xyzpocket.com/winning-forex-trading-learning-with-live-trading-examples-2020/ Written Courses Link 50 Pips A Day https://www.xyzpocket.com/forex-trading-training-50-pips-a-day/ Forex Academy - The Ultimate Price Action https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/ Forex Masters Course 2020 - Follow Price Action Trends https://www.xyzpocket.com/forex-masters-course-2020-follow-price-action/ Forex Trading School - Best Day Trading Forex https://www.xyzpocket.com/forex-trading-school-best-day-trading-forex-2020/ Free Forex Training - The Ultimate Basics https://www.xyzpocket.com/free-forex-training-the-ultimate-basics-2020/ Master in forex trading - 15 minutes a day https://www.xyzpocket.com/master-in-forex-trading-15-minutes-a-day/ Read the full article

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Forex Academy - The Ultimate Price Action 2020

Course Prerequisite

Forex Demo Broker Account (See below if you do not already have one) Passport or Identity Document and Proof of address not older than 90 days (You will need these documents for verification purposes) Your full attention Practice, practice practice!!! Forex Broker Demo Account In order to be able to practice the exercises in this course, you will need to open a demo account. A demo account is a practice account where you are able to trade live using fake money and not your own money. Once you are comfortable with a demo account, you can then deposit real money and apply what you learned while using a demo account. Here are the steps to follow when opening a demo account: Click on this link (Non-US learners): Recommended broker. FOR United States Learners, follow this guide: Recommended US broker The rest let us continue below. Click on the “Open Account” button at the top of the screen.

Upload your Identity document as per the e-mail and your proof of address. Open a Demo account Click on “My Accounts” on the left-hand side, then select “Open New Account”

Select Demo Account. Account type – FXTM Standard Choose currency Account Leverage 1:2000 Complete the passwords fields Initial balance – any amount, I suggest 20000 USD Click “Open Account”

Your Metatrader Login details will be displayed Download the Platform just as you did above and login using the details given. You are now ready to continue with the course content.

CHAPTER 1: INTRODUCTION TO FOREX TRADING

At our Forex Academy, we believe that to really understand price action means you need to study what happened in the past. Our Forex trading school further emphasizes that you then observe what is happening in the present and then predict where the market will go next. Forex trading training can be expensive but we provide free Forex training. “Regardless of what you may think, all traders are forecasters, just like the weatherman.” The weatherman knows where the wind is blowing from, sees the high and low-pressure systems forming over the land, knows the temperature variation, cold front, hot front…you know what I’m talking about, right? Then what does he do? He will say something like “tomorrow, the weather in Edinburg will be mostly cloudy, slight chance of shower and possibly sunny in the afternoon.” How does he know that? Well, from studying the past data and seeing what the current weather situation is at the moment (and these days, their prediction is more reliable due to advanced computer models and weather satellites in space). So traders are like that… If we get the direction wrong, we lose money, we get it right, we make money. Simple as that. So everything you are going to read here is about trying to get that direction right before you place a trade.

Before you get started, these are some words that you may encounter: Long= buy Short= sell Bulls= buyers Bears= sellers Bullish=if the market is up, it is said to be bullish (uptrend). Bearish=if the market is down, it’s said to be bearish. Bearish Candlestick=a candlestick that has opened higher and closed lower is said to be bearish. Bullish Candlestick=a candlestick that has opened lower and closed higher is said to be a bullish candlestick. Risk : Reward Ratio=if you risk $50 in a trade to make $150 then your risk: reward is 1:3 which simply means you made 3 times more than your risk. This is an example of a risk: reward ratio.

CHAPTER 2: WHAT IS PRICE ACTION ACCORDING TO OUR FOREX ACADEMY?

This is the basic definition of price action trading: When traders make trading decisions based on repeated price patterns that once formed, they indicate to the trader what direction the market is most likely to move. Price action trading uses tools like chart patterns, candlestick patterns, trendlines, price bands, market swing structures like upswings and downswings, support and resistance levels, consolidations, Fibonacci retracement levels, pivots, etc. Generally, price action traders tend to ignore the fundamental analysis-the underlying factor that moves the markets. Why? Because they believe everything is already discounted for in the market price. But there’s one thing I believe you should not ignore: major economic news announcements like the Interest Rate decisions, Non-Farm Payroll, FOMC etc. From our experience at our Forex Academy and from what we have seen, we say this “the release of economic news can be both a friend and an enemy for your trades.” Here’s what I mean by that: If you did take a trade in line with the result of the economic news release you stand to make a lot more money very quickly in a very short time because the release of the news often tends to move price very quickly either up or down due to increased volatility. But if your trade was against the news, you can walk away with all your profits wiped out or a loss and the loss can be huge because markets can move so fast during that period that there’s also the chance that your stop loss cannot be triggered. The chart below shows and example of what can happen when there is major forex fundamental news release:

This is one experience I will never forget. I traded a perfect price action setup, the trade went as I anticipated but a few minutes later, the market dropped down very quickly. My stop loss was never triggered at the price level where I set initially. I tried to close that trade as many times as I could but it was impossible to close because the price was way down below where my stop-loss price was! Price jumped my stop loss. I just stood there and watched helplessly. After what seemed like an eternity, the trade was closed by the broker at the worst possible price way-way-way- down below! That single trade nearly wiped out my trading account. Instead of losing 2% of my trading account, I lost almost half of it. I did not understand and did not know what happened that night to make the market move like that. I could not sleep that night. Later I found out that it was a major economic news release that moved the market like that. Now before I place a trade, I head over to this website here to check the news calendar: http://www.forexfactory.com/calendar.php If there’s a valid trade setup but If I see that the time is close to major news to be announced, I will not enter. There are exceptions where I will take a trade if I see that I can place my stop loss behind a major support or resistance level. The high impact news are colour coded in Red. That’s what you look for(see figure below):

Here’s what you can do: If a valid trade setup happening, check with forexfactory.com to make sure there are no major news announcements to be made soon that can impact your trade. If there’s news to be released you can do these 2 things: don’t trade until after the news release and wait until markets start trading normally again, or if you decide to trade, trade small contracts because the market is very volatile when the news is released. This can work for you or against you. You need to know what you are doing during these times. If you already have a trade that has been running (prior to the news release time) for some time and in profit, think about moving stop loss tighter or taking some profits off that table in case the market goes against you once the news is released. In an ideal case, you would have taken this trade a while ago and that the current market price is far away from your trade entry price and you would have locked some profits already and if the market moves in the direction of your trade after the news release, you will make a lot of money. 3 Important Reasons Why You Should Be Trading Price Action Our Forex Academy believes that trading price action is one of the best Forex trading strategies; therefore, our Forex trading school favors the price action method. Price action represents collective human behavior. Human behavior in the market creates some specific patterns on the charts. So price action trading is really about understanding the psychology of the market using those patterns. That’s why you see price hits support levels and bounces back up. That’s why you see price hits resistance levels and heads down. Why? Because of the collective human reaction! Price action gives structure to the forex market. You can’t predict with100% accuracy where the market will go next. However, with price action, you can, to an extent predict where the market can potentially go. This is because price action brings structure. So if you know the structure, you can reduce the uncertainty to some extent and predict with some degree of certainty where the market will go next. Price Action helps reduce noise and false signals. If you are trading with stochastic or CCI indicators etc, they tend to give too false signals. This is also the case with many other indicators. Price action helps to reduce these kinds of false signals. Price action is not immune to false signals but it is a much better option than using other indicators…which are essentially derived from the raw price data anyway. Price action also helps to reduce “noise”. What is the noise? Market noise is simply all the price data that distorts the picture of the underlying trend… this is mostly due to small price corrections as well as volatility. One of the best ways to minimize market noise is to trade from larger timeframes instead of trading from smaller timeframes. See the 2 charts below to see what I mean:

And now, compare market noise in the 4hr chart (notice the white box on the chart? That equates to the area of the 5min chart above!):

Smaller timeframes tend to have too much noise and many traders get lost trading in smaller timeframes because they do not understand that the big trend in the larger timeframe is the one that actually drives what happens in the smaller timeframes. But having said that, I do trade in smaller timeframes by using trading setups that happen in larger timeframes. I do this to get in at a better price point and keep my stop loss tight. This is called multi-timeframe trading and I will also cover this on Chapter 16 to show you exactly how it’s done. Is Price Action Applicable To Any Other Market? The answer is yes. All the price action trading stuff described here is applicable to all markets. According to our Forex Academy, you can definitely use this method to trade any financial instrument. Here, I will mostly be talking in terms of using price action in the currency market but as I’ve mentioned, the concepts are universal and can be applied to any financial market. Price Action Trading Allows You To Trade With An Edge Price Action Trading is about trading with an edge. What is a trading edge? Well, put simply it means you need to trade when the odds are in your favor. Things like: Trading with the trend Trading With Price Action Using reliable chart patterns and candlestick patterns. Trading using Support and resistance levels. Making your winners larger than your losing trades Trading only in larger timeframes Waiting patiently for the right trade setups and not chasing trades. All these kinds of things above help you to trade with an edge. They may not be exiting and probably you’ve heard of these before but hey…this stuff is what separates winners from losers. What Price Action Trading Is Not according to our Forex Academy Price action trading will not make you rich…but price action trading with proper risk management can make you a profitable trader. Some of you will go through this guide and learn and make much money but some of you will fail. That’s just the way life is. Price action trading is not the holy grail but it sure does beat using other indicators (most of which often lag and a derived from price action anyway!). Price action trading will not make you an overnight success. You need to put in the hard yards, observe and see how price reacts and see those repetitive patterns and then have the confidence to trade them then you will be rewarded for that. If you are one of those that are going to learn from this course and apply it to your forex trading, my hats off to you and I say “go and succeed.” Chart time You need chart time to understand Price Action. For some of you, it may take a while for you to understand, while some of you may be very quick to learn. Observe the price action of the market. Go back to the past and see how the market had behaved. What caused it to behave that way? You cannot be a confident price action trader until you do this. If you could simply read the charts well enough to be able to enter at the exact times when the move would take off and not come back, then you would have a huge advantage. Trend lines, specific candlestick patterns, specific chart patterns, Fibonacci retracement levels & support and resistance levels…these are the tools I use to trade. If you put the time and effort into learning them, it won’t be long before you will begin to understand and see how all these things fit together. Start learning to trade naked price action.

CHAPTER 3: MASS PSYCHOLOGY IN TRADING

Here’s one thing about price action: it represents a collective human behavior or mass psychology. Let me explain. All human beings have evolved to respond to certain situations in certain ways. And you can see this happen in the trading world as well: The way a multitude of traders thinks and react form patterns… repetitive price patterns that one can see and then predict with a certain degree of accuracy where the market will most likely go once that particular pattern is formed. For example, if you see a major resistance level, the price hits the level and forms a ‘shooting star’ a bearish reversal candlestick pattern. You can then say with a greater degree of confidence that Price is going to head down. Why? Because there are so many traders watching that resistance level and they all know that price has been rejected from this level on a previous one or two occasions and that it tells them that it is a resistance level and that they can also see that bearish reversal candlestick formation… and guess what they will be waiting to do? They will be waiting with their sell orders…not just one sell order but thousands of them, some small and some big orders. But on the other side of the coin is that trader that have bought at a low price and now that the price is heading up to the resistance level, that’s where most of their take profit levels are. So once they take their profits around resistance levels, that means there are now fewer buyers now and more sellers. The balance tips in the direction of the sellers and that’s how the price is pushed back down from a resistance level. Because price action is a representation of mass psychology…the markets are moved by the activities of traders. So price action trading is about understanding the psychology of the market using those patterns and making a profit as a result. There are 2 types of price action trading, the 100% Pure price action trading and the not-so-pure Price Action trading. Let me explain… Pure Price Action Trading Pure price action trading simply means 100% price action trading. No indicators except price action alone. Not-So-Pure Price Action Trading This is when price action trading is used with other indicators and these other indicators form part of the price action trading system. These indicators can be trend indicators like moving averages or oscillators like the stochastic indicator and CCI. (Please don’t go googling CCI and stochastic indicators!) Origin of Price Action Trading Charles Dow is the guy credited to be the father of technical analysis. He came up with the DOW Theory. The theory tries to explain market behavior and focuses on market trends. One part of the theory is that the market price discounts everything. Therefore, technical analysts use price charts and chart patterns to study the market and don’t really care about the fundamental aspects of what moves the markets. I will cover this a little bit later when I talk about what are trends, how trends begin (or end) in Chapter 5.

CHAPTER 4: PRICE AND CHARTS

Now, let’s study price in a little bit more detail…this stuff is for the newbies…please skip this section if you think you know! What is price? Price is value given to a particular instrument usually in monetary terms and its value is dependent on supply and demand. If the demand is more, price increases as more traders start buying and driving prices up. Demand zones on your price charts are around support levels, that’s where buyers come and start buying and driving prices up! If there is an oversupply, price falls as there are more seller and fewer buyers. Supply zones on your charts are on and around resistance levels where sellers come in and drive the prices down due to the fact that there are very few buyers.

Every time you open up your charts, all you are seeing are the forces of supply and demand at work! If the market is going up, what does that tell you about the demand and supply then? It means there’s a lot of demand for that instrument. Or what if the marketing is going down then what does that tell you about the demand and supply then? There is less demand and lots of supply. But there’s something else about price…it has a time component. So the price of something today will not be the same tomorrow or in a month or in a year. Supply and demand overtime drive up and down the price. But how do you represent the value of price over time which in turn tells you of the supply and demand forces? Answer: You need price bars, candlestick, and line charts. These are graphical and visual representations of price over time, thus telling you a story about supply and demand forces over a certain time period which can be 1minute up to one month or year. Bar, Candlestick and Line Charts Price over a period of time is graphically represented in 3 main ways: 1. The bar chart (as shown below).

The bar char chart simply looks like a “stick” or bar with 2 short knobs on both sides. The knob on the left is the opening price and the knob on the right is the closing price. Then there’s the wick on the upper end and the lower end. The highest point or level of the wick on the upper end is the highest price that was reached during a certain timeframe or period and the lowest point of the lower wick is the lowest price that was reached also during the same time frame or period. The candlestick chart shown below conveys the same information as in the bar chart above:

A candlestick chart…to put it in another way is like putting a body over a skeleton of the bar chart!

That’s the only difference between the bar chart and the candlestick chart…is that the candlestick chart has a body and the bar chart does not. The red color is most often used to indicate a bearish candlestick which means the price opened up high and closed lower. A green candlestick represents a bullish candlestick and is the exact opposite. The Line Chart (As shown below) conveys the same price information over time but does not reveal everything.

The line chart is one of the least favorite of charts for trading. A line chart is simply drawn by connecting either the closing, high or low price and that’s how you get the line on a chart. Line charts can be useful for looking at the “bigger picture” and finding long term trends but they simply cannot offer up the kind of information contained in a candlesticks chart. Out of these 3, the candlestick chart is the most popular followed by the bar chart. So from here on, I will be only focused on candlestick chart only but I may end up using the word bar to refer to candlestick pattern as well so just be aware of that. I will talk more about the candlestick (and candlestick charts) as this is the bread and butter for price action traders. The candlestick The candlestick chart had its origins in Japan and can also be referred to as the Japanese candlestick chart. The color of the candlestick chart tells you if the price was up or down in a particular timeframe which means that candlesticks are either bullish or bearish candlesticks. Now most traders prefer to set green candlesticks as bullish and red candlesticks as bearish. And I like it to be that way for me personally. Some broker’s trading platforms have options where you can change the colors of the candlesticks to any color you want. If you are a woman, you may change a bullish candlestick to pink! And bearish candlestick to Purple! (I have never seen a pink and purple candlestick yet). This candlestick shown below is an example of a bullish candlestick.

A Bullish candlestick simply means the price opened lower and closed up higher after a certain time period, which can be 1minute, 5minute, 1hr or 1day, etc. The candle body represents the distance price has moved from the opening price to the closing price. The longer the body, means the price has moved a great deal upward after opening. The shorter the candle body means the exact opposite. The high is the highest price that was reached during that time period. The low is the lowest price that was reached during that time period. All these candlesticks shown below are bullish candlesticks which mean that their opening prices were lower than the closing prices and therefore reflect and an overall uptrend in the timeframe each candlestick was formed.

Now, the candlestick shown below is an example of a bearish candlestick. A bearish candlestick simply means that the candlestick opened up at a high price and closed lower after a certain time period.

All these candlesticks shown below are bearish candlesticks meaning that the opening price was higher than the closing price, therefore reflecting a downtrend.

Understanding Buying and Selling Pressure on Candlesticks Did you know that there are bullish candlesticks that are considered bearish and bearish candlesticks that are considered bullish? To really understand this concept, you need to understand buying and selling pressure. You see, every candlestick that is formed tells you a story about the battle between the bulls and the bears-who dominated the battle, who won at the end, who is weakening etc. All that is reflected in any candlestick you see. The length of the body of the candlestick, as well as the shadow (or wick), tells you a story about the buying and selling pressure. For example, look at the two charts below:

Look at the first green candlestick on the left chart, it’s a bullish candlestick, right? Yes. But you can see that it has a very short body and very long wick (tail). It tells you the sellers (bears) were dominant. If this candlestick was to form after hitting a resistance level, it will be considered a bearish signal even though it’s a bullish candlestick. Now, you can apply the same sort of logic to all the other candlesticks above and read the story each one is telling you. If the upper wick is very long, it simply tells you that there’s a lot of selling pressure. It means price opened and got pushed higher by the buyers but then at the highest price, sellers got in and drove it back down. If the lower wick is long, it tells you that there’s a lot of buying pressure. Sellers drove the price down but buyers got in and drove the price back up. If the lower wick is short, it tells you there’s very minimal buying pressure. If the upper wick is short, it tells you that there’s very minimal selling pressure. What about the length of the body of candlesticks? The longer the body of the candle indicates very strong buying or selling pressure. A short body of a candlestick indicates little price movement and therefore less buying or selling pressure.

Sometimes the candles will have no upper or lower shadows but with very long bodies. These are interpreted the same way as standard candlesticks but are an even stronger indication of bullish or negative market sentiment. In the case of a bullish candle, prices never decline below the open. In the case of bearish candle, the price never trades above the open. See below:

Now, so far we have looked at individual candlesticks…what if you combine more than one candlesticks? What does it show you? Well, one important thing that a group of candlesticks can show you is how strong or weak a bullish or bearish move is. They can also tell you if the bullish or bearish move is weakening. The word used to describe such a situation is momentum. The chart below shows 3 bearish candlesticks in a downtrend, each with decreasing length and body lengths. In a downtrend situation, when you see such happenings, it is one signal the downward trend is weakening. And if this happens around support levels, you should sit up and take notice and also watch for bullish reversal candlesticks which will give you the confidence to buy!

The following chart below shows you an example of decreasing downward momentum as price nears support levels. What you will see is that the prior candlesticks will tend to be longer and as price nears the support level, the candlesticks start to get shorter:

This next chart below shows 3 bullish candles in an uptrend each with decreasing lengths. In an uptrend, when you see such happening around resistance levels, you should take notice. Also, watch for bearish reversal candlestick patterns to form. This will give you the confidence to sell.

Here is an example of a bullish momentum decreasing in an uptrend and then price tumbles right after that :

Notice (on the chart above) how the bullish candlesticks had increasing lengths and then gradually decreased as the price went up then followed by a big downward fall/move? That’s price momentum. Every time you look at your charts, you need to be aware of such. Very important! Candlestick Wicks The wicks of candlesticks along with the body tell a story. A wick which can be called a shadow or tail of a candlestick is a line situated above and below the body of the candlestick. How are candle wicks (tails/shadows) formed and what do they mean? Well, they are formed because of a change in market sentiment. For an upper wick, price is moving up and then market perception is changed by traders and then the price is pushed down towards the open by sellers. That’s how the upper shadow is formed. For the lower shadow, price is moving down but the market sentiment changes and the price is pushed up towards the close buy the bulls. That’s how a lower wick or shadow is formed. Longer wicks indicate increase change in market sentiment.

What is the Significance of Candlestick Wicks? Candlestick wicks with long upper shadows commonly occur when an uptrend is losing strength. Long lower shadows occur when the downtrend is losing steam. In order to become a better forex trader and master this course offered by our Forex Academy, you need to fully understand this chapter (Chapter 4) as it forms the basis for what comes next. You are advised to go back and reread the chapter and make sure that you grasp the concepts so that you can follow along.

CHAPTER 5: TRENDS

When you have price moving across time due to supply and demand, then this creates trends. This section is a discussion about trends, how they form and how many types of trends and what kind of structure trends have. It is important for you to understand the structure of trends so you will not depend on any indicator to tell you if the trend is up or down because understanding what a trend is, the structure of a trend, what signals to look to tell you that a new trend may be starting and the previous one ending is one key knowledge you require as a price action trader. And you only need to use price action to tell you if a trend is up, down or sideways. As I’ve mentioned above, there are 3 types of trends. In simple terms, a trend is when the price is either moving up, down or sideways. So when the price is moving up, it’s called an uptrend. When the price is moving down, it’s called a downtrend. When the price is moving sideways, it’s called and sideways trend. Now each of these 3 trend types has a certain price structure about them that tells you whether the market is in an uptrend, downtrend or sideways trend. These structures are derived from the Dow Theory. But I will explain it here briefly. The Dow Theory Of Trends Summarized The theory in simple terms according to our Forex Academy says that: when the price is in an uptrend, prices will be making increasing higher highs and higher lows until a higher low gets intercepted, then that signals the end of the uptrend and the beginning of a downtrend. For a downtrend, prices will be making increasing lower highs and lower lows until a lower low is intercepted and that signals an end of the downtrend and a beginning of an uptrend. Structure of An Uptrend (Bull) Market With an uptrend market, prices will be making higher highs (HH) and Higher Lows (HL)

Structure of A Downtrend (Bear) Market Prices will be making Lower Highs (LH) and Lower Lows (LL). The chart shown below is a really ideal case.

But you know that in reality, the market is not like that, it’s more like this chart shown below:

The chart above shows an initial downtrend and along the way, there is a false uptrend which does not last and price moves down and then eventually another uptrend moves is happening because another lower high has been intersected(which signals the end of downtrend). This is how you use price action to identify trends. You should know this stuff. Because the market is not perfect when these trends are happening, you should develop the skill to judge when a trend is still intact or when a trend is potentially reversing. And it’s pretty much price intersecting highs or lows. Structure Of A Sideways/Ranging Market For a ranging market, in an ideal scenario, you will see price moving in a range between a support and resistance level as shown below.

But what you see in the real world is not ideal as above, it’s more like this!!!

CHAPTER 6: REVERSALS & CONTINUATION

A reversal is a term used to describe when a trend reverses direction. For example, the market has been in an uptrend and when the price hits a major resistance level, it reversed and formed a downtrend. That’s what reversal means. Now, where can reversals happen? The following are the major areas where price reversals do happen: Support levels Resistance levels Fibonacci levels Here’s an example of price reversing form a support level and went up and then later broke it and went down. Now that broken support level acts as resistance level when the price came for a re-test of the level and sent the price tumbling down:

Now, what about continuation then? Well, in simple terms, continuation means that there is a main trend, for example, an uptrend, that is happening… and you will notice that price slows down and maybe consolidates for a little while and may fall back down a little…it is like a minor downtrend in a major uptrend move called a downswing in a major uptrend. So when that ends and price resumes in the original uptrend direction then that is called a continuation. The chart below makes this concept a bit more clearer.

So the big question is: how to spot trend continuity and execute trades at the right time? The secret is in the identification of specific chart patterns as well as very specific candlestick patterns and you will discover more on the Chart Patterns and candlestick Patterns section of this course. Top 3 reasons why it is so important for you knowing reversal points/levels as well as understanding trend continuity patterns and signals: You don’t want to be buying near or at a resistance level (which is a reversal point). You don’t want to be selling at near or at a support level (which is a reversal point). You don’t want to be buying when the trend is down and you don’t want to be selling when the trend is up that’s why you need to know about continuation charts and candlestick patterns which will allow you to trade with the trend. (There are exceptions though when you can trade against the main trend like that like in trading channels…see Chapter 9: How To Trade Channels)

CHAPTER 7: UNDERSTANDING MARKET SWINGS ACCORDING TO OUR FOREX ACADEMY

Market Price moves in swings. A price swing is when markets move like what a wave does. So in an uptrend, the price will be making higher highs and higher lows like the figure shown below:

So in an uptrend, price moves in swings like this chart shown below:

And in a downtrend, the price will be making lower highs and lower lows:

So in a downtrend, price moves in swings like the chart shown below:

Why it’s So Important For You To Understand Market Price Swing If you want to be a really good price action trader, you have to understand this concept of how price moves in swings. This is especially true if your style of trading is trend trading or swing trading. Because if you don’t understand how price moves in swings, this is what you are going to end up doing: You will execute trades at the very wrong spot! For example, in a downtrend, you will sell when the market is just doing an upswing! Not good! This means, you will get stopped out or you need to put in a large stop loss. Large stop loss does not necessarily mean a large risk if you do position sizing based on the stop loss distance. But if you don’t then that’s a large risk you are taking. If you have a large stop loss, then you’ve got to wait a while before the market makes downswing before you start seeing profits on your trade. Here’s an example of what I’m talking about:

It’s really not a good situation to be in. Every trader's wish is that “the moment a trade is placed, it goes to profit immediately.” But we know the market is not like that, sometimes that happens, and sometimes it doesn’t. That’s the nature of the market. So in an uptrend, you should be looking to buy on the downswing. In a downtrend, you should be looking to sell on an upswing. And the best way for doing that is by using Price Action (reversal candlesticks):

CHAPTER 8: HOW TO TRADE SUPPORT AND RESISTANCE LEVELS

Please note that there are different ways of drawing support and resistance levels but the below method is that which we follow at our Forex Academy. Our Forex trading school follows methods that have worked for us. Nothing is more noticeable on any chart than support and resistance levels. These levels stand out and are so easy for everyone to see! Why? Because they are so obvious. As a matter of fact, support and resistance trading is the core of price action trading. The key to successful price action trading lies in finding effective support and resistance levels on your charts. Now, here, I talk about 3 types of support and resistance levels and they are: The normal horizontal support and resistance levels that you are probably most familiar about. Broken support levels become resistance levels and broken resistance levels become support levels. Dynamic Support and Resistance Levels Now, let’s look at each in much more detail. Horizontal Support and Resistance Levels These are fairly easy to spot on your charts. They look like peaks and troughs. The chart below is an example and shows you to trade them.

How To Find Horizontal Support And Resistance Levels On Your Chart If the price has been going down for some time and hits a price level and bounces up from there, that’s called a support level. The price goes up, hits a price level or zone where it cannot continue upward any further and then reverses, that’s a resistance level. So when price heads back to that support or resistance level, you should expect that it will get rejected from that level again. The use of reversal candlestick trading on support and resistance levels becomes very handy in these cases. Significant Support & Resistance Levels Not all support and resistance levels are created equal. If you really want to take trades that have a high potential for success, you should focus on identifying significant support and resistance levels on your charts. Significant support and resistance levels are those levels that are formed in the large timeframes like the monthly, weekly and daily charts. And when price reacts to these levels, they usually tend to move for a very long time. Here’s an example of NZDUSD that hit a resistance level on the monthly timeframe and made a 1,100 pips move down to the next significant support level and price can now be seen bouncing up from that support level:

Now, here’s the technique I use to trade setups that happen in larger timeframes: I switch to smaller timeframes like the 4hr & the 1hr, 30min, 15min and even the 5min and wait for a reversal candlestick signal for my trade entries. This is so that I can get in at a much better price level as well as reducing my stop loss distance. That’s what’s multi-timeframe trading is all about. Support turned Resistance Level And Resistance Turned Support Level Now, the next on is this thing called Support turned Resistance Level And Resistance Turned Support Level. There are many traders that don’t realize that usually, in a downtrend, when a support level has been broken to the downside, it often tends to act as a resistance level. Here is an example shown on the chart below:

So when you see such happening, you should be looking for bearish reversal candlestick to go short. As a matter of fact these “R’s” are the upswings in a downtrend. Similarly, in an uptrend you will also see such happening where Resistance levels get broken and when price heads back down to these, they now will act as support levels…Here’s an example:

Look for bullish reversal candlestick around these type of resistance turned support levels as your signal to buy. Can you see how the need for using other indicatorsis diminished once you understand how easy is to spot such trading setups like these?

CHAPTER 9: HOW TO TRADE CHANNELS

What is a channel? And How Do You Trade A Channel? This section is about that. The path price follows and the area enclosed within it is called the price channel. The fundamental principle of how a channel form is based on support and resistance. Why price does that, I don’t know… but consider it as supply and demand at work. There are 3 major types of channels: the uptrend channel, the downtrend channel and the sideways/horizontal channel. This is what a downtrend channel looks like and how to trade it:

This is what an uptrend channel looks like and shows how you can trade it:

This is what a sideways channel looks like and how you can trade it:

Sideways channels (or horizontal channels) are a little bit different from uptrend and downtrend channels because, with uptrend and downtrend channels, you would require 2 points to draw trendlines and wait for the price to touch them later on before you take a trade because the trend lines are at an angle. But with sideways/horizontal channels, you can actually start trading the setup at point #2 which can be both a resistance or support level based on the fact that a prior resistance or support level is already visible and you should expect the price to bounce from those levels. Look for reversal candlesticks to buy or sell when you see such setups happening. Here Are Some General Rules For Trading Channels If you buy or sell on the other side of the channel, you wait for the price to reach the other end of the channel to take profit or exit the trade. Place your stop loss on just outside the channel or just above the high of the candlestick (for a sell order) or just below the low of the candlestick (for a buy order) that touched the channel and shows signs of rejection. This candlestick can also be a reversal candlestick. You may also decide to take half the profits off as price is in the middle of the channel for a profitable trade.

CHAPTER 10: NINE (9) PROFITABLE CHART PATTERNS EVERY TRADER NEEDS TO KNOW

There’s a difference between chart patterns and candlestick patterns. Chart patterns are not candlestick patterns and candlestick patterns are not chart patterns: Chart patterns are geometric shapes found in the price data that can help a trader understand the price action, as well as make predictions about where the price is likely to go. Candlestick patterns, on the other hand, can involve only one single candlestick or a group of candlesticks which have formed one-after-the-other in regard to how they form in relation to one another in terms of their body length, opening and closing prices, wicks(or shadows), etc. Not knowing what chart patterns are forming can be a costly mistake. If you are like that, this is your opportunity to get back on track. Why a costly mistake? Because you are completely unaware of what is forming on the charts and you end up taking a trade that is not in line with what the chart pattern is signaling or telling you! These are the 9 chart patterns you will learn about today: Triangle chart patterns-symmetrical, ascending and descending (3 patterns) Head and shoulders and Inverse Head and Shoulders (2 patterns) Double Bottom and Double Top (2 patterns) Tripple Bottom and Tripple Top (2 patterns) But first up, I am going to talk about triangle chart patterns. 1. Symmetrical Triangle There are 3 types of triangle chart patterns and the chart below shows the differences between each very clearly:

Now, let's start with the symmetrical triangle pattern first. Is A Symmetrical Triangle Bullish Or Bearish Chart Pattern? The Symmetrical triangle chart pattern is a continuation pattern therefore it can be both a bullish or bearish pattern.

What does this mean then? Well, if you see this pattern in an uptrend, expect a breakout to the upside. See an example below:

If you see a symmetrical triangle pattern form in a downtrend, then expect a breakout of this pattern to the downside like this one shown below:

How To Draw A Symmetrical Triangle You will see price moving up and down but this up and down movement is converging to a single point. You need a minimum of 2 peaks and 2 troughs to draw the two trendlines on both sides. It will be only a matter of time before price breaks out of the pattern and either moves up or down.

Two Simple Ways To Trade The Symmetrical Triangle #1: Trade the Initial Breakout The best way is to confirm that the breakout actually happens with a candlestick before placing your order. What I do is, for example, say I’m watching a symmetrical triangle form in the 4hr charts and I know that soon a breakout will happen. I then switch to the 1hr chart to wait for the breakout to happen. If a 1hr candlestick has broken the triangle and closed below/above it, that’s my trade entry signal. So I will place a pending buy stop/sell stop order to catch the breakout from there. Often I want to make sure that the 1hr candlestick closes outside of the triangle before I enter a pending buy stop or sell stop order to capture the movement that happens to avoid false breakouts while the candlestick has not closed yet. But here’s the problem with trading triangle breakouts, see chart below:

I don’t like trading breakouts like the one shown above and here’s why: The stop loss distance is too large. I’d prefer to enter trades with breakout candlesticks that are close to the trend lines that have been broken. I often see that such breakout of extremely long candlesticks are not sustainable and the price will often tend to reverse after such candlesticks as can be seen by the chart above…notice that after the breakout candlestick, there was one bearish green pin bar and then for the next 4 candlesticks afterward, the price went down. This is what tends to happen with such long breakout candlesticks. So if you entered a buy order using that long breakout candlestick above, you would have to wait a while for your trade to turn profitable. #2: Trade the retest of the trendline that is broken The second way to enter is to wait for a retest of the broken trendline in the triangle pattern then either buy or sell. This may also be handy if you had an extremely long breakout candlestick on the initial breakout, your best option is to wait for a retest of the breakout trendline then if that happens you enter. Stop-loss Placement Options. Again, the method used below is exactly what our Forex Academy uses. There are other different methods used by other Forex trading schools. Here are 3 ways on how to place a stop loss on triangle patterns, which include symmetrical, ascending and descending triangle patterns which you will learn next. The stop loss placement techniques here are applicable to all triangle patterns so take note of that.

2. Ascending Triangle Chart Pattern And ascending triangle pattern looks like this chart shown below:

And this is how a real chart looks like:

Is Ascending Triangle Pattern Bullish Or Bearish? It is considered a bullish continuation pattern in an existing uptrend. So when you see this forming in an uptrend, expect a breakout to the upside. However, it can also be a strong reversal signal (bullish) when you see it form in a downtrend. Stop Loss Placement Options You can use the strategies given in the symmetrical triangle. Take Profit Options I prefer to target previous resistance levels as my take profit target. Or as shown on the chart below, you can use the “x” pips distance as your take profit target. Another way to do it would say 3 times the “x” pips or 2 times the “x pips” distance. That should give you your profit target level(s).

3. Descending Triangle Chart Pattern Important things to note about the descending triangle chart pattern: The descending triangle chart pattern is characterized by descending resistance levels and a fairly horizontal support levels converging to a point until a breakout happens to the downside as shown below:

And this is how a descending triangle looks like on a chart shown below:

Is Descending Triangle Pattern Bullish Or Bearish? It is a bearish chart pattern that forms in a downtrend as a continuation pattern. However, this pattern can also form as a bearish reversal pattern at the end of an uptrend. Therefore regardless of where it forms, it’s a bearish chart pattern. How to Trade The Descending Triangle Formation Similar to the other 2 triangle patterns, you can either trade the initial breakout or wait to see if price reverses back to test the broken support level and then sell. Note: with a triangular pattern, I often prefer to wait for a candlestick to breakout and close outside of the pattern before I enter a trade. This helps to reduce false breakout signals. But there will be times when I will just trade the breakout with a pending sell stop order just a few pips under the support level to catch the breakout when it happens but when I do that, I sit and watch the close of the 1hr candlestick to make sure that it does not close above the support line (if that happens, it may mean a false breakout). Note: with a triangular pattern, I often prefer to wait for a candlestick to breakout and close outside of the pattern before I enter a trade. This helps to reduce false breakout signals. But there will be times when I will just trade the breakout with a pending sell stop order just a few pips under the support level to catch the breakout when it happens but when I do that, I sit and watch the close of the 1hr candlestick to make sure that it does not close above the support line (if that happens, it may mean a false breakout). And then there are the issues of extremely long breakout candlesticks again like this:

As mentioned previously: when you have such extremely long breakout candlesticks like that, better to sit and wait to see if price will reverse and get back up to the support level that was broken ( a retest) which will now be acting as a resistance level and then sell when that level is touched. How To Take Profit I prefer to use previous support levels, lows or troughs and use those as my take profit target level. Another method of take profit that is commonly used is to measure the height of the triangle and if the height is said 100 pips then that is your take profit target. The chart below should give you a clear idea of how it’s done:

Note that on the chart, the descending triangle formed the end of an uptrend. 4. Head & Shoulders Chart Pattern The head and shoulder chart pattern is a bearish chart pattern. This is what a head and shoulder reversal pattern looks like:

Important things to note about the head and shoulder pattern: The head and shoulders pattern is a bearish reversal pattern and when found in an uptrend, it signals the end of the uptrend. Here’s how this pattern forms: Eventually, the market begins to slow down after going up for some time and the forces of supply and demand are generally considered in balance. Sellers come in at the highs (left shoulder) and the downside is probed (beginning neckline.) Buyers soon return to the market and ultimately push through to new highs (head.) However, the new highs are quickly turned back and the downside is tested again (continuing neckline.) Tentative buying re-emerges and the market rallies once more, but fails to take out the previous high. (This last top is considered the right shoulder.) Buying dries up and the market tests the downside yet again. Your trendline for this pattern should be drawn from the beginning neckline to the continuing neckline. Here’s another example:

Here’s another one:

How To Trade The Head & Shoulder Chart Pattern. The following chart below makes it much clearer.

How To Calculate Profit Targets I use previous lows or troughs to set my take profit target. However, you can also use the distance in pips between the neckline and the head as you take profit target level. So if the distance is 100 pips, then if you trade the initial breakout, you set it at 100pips take profit target level like the chart shown below with the two blue lines:

5. Inverse Head and Shoulder Pattern You will also see this pattern, though not as popular, it’s good to keep an eye out for it. The inverse head and shoulder pattern is a bullish reversal candlestick pattern and just the opposite of head and shoulders pattern. Here’s what it looks like on the chart shown below:

And this is what it looks like on a real chart:

How to Trade the Inverse Head and Shoulder Pattern You can buy the initial breakout of the neckline or wait for the re-test, that is waiting for the price to breakout and then come back down to test the broken neckline and then buy. Use bullish reversal candlesticks for trade entry confirmation if you are waiting to buy on a re-test.

I often tend to place my profit target on previous highs. One method of calculating profit target is to measure from the head up to the trendline and what the distance in pips is your profit target. See the two blue vertical lines in the chart above. Double Bottom Chart Pattern A double bottom chart pattern is a bullish reversal chart pattern and when it forms in an existing downtrend, it signals a possible upward trend. Here’s what It looks like:

This is what a double bottom pattern looks like on a real forex chart:

3 Ways on How To Trade Double Bottoms #1: Trade the breakout of the neckline: Many traders once they see that the double pattern has formed and the neckline is being tested, that’s when they get in as soon as a breakout happens. #2: Wait to enter on a retest of Broken Neckline Then there are other groups of traders that like to enter when price reverses back down to touch the neckline, which now would act as a support level. Once it hits that neckline level they buy. #3: Buy on bottom 2. In this way, you have the potential to ride the trade all the way up if the neckline is intercepted. You should consider buying on bottom 2 as buying on a support level…as a matter of fact, that it what is is! Look for bullish reversal candlestick patterns for trade entry signals. For taking Profit Target levels: If you buy on bottom 2, you can use the neckline as you take profit level, or any previous highs above that as well. If you buy the breakout of the neckline, use the distance between the bottom and the neckline in pips to calculate your profit target. See chart below for example:

7. Double Top Chart Pattern A double top chart pattern is a bearish reversal chart pattern and when found in an uptrend and once the neckline is broken, that confirms a downtrend. The double tops are very powerful patterns and if you get into a trade at the right time, you stand to make a lot of profits when the breakout happens to the downside. Here’s an example of a double top Chart Pattern shown below:

How to Trade the Double Top Chart Pattern There are 3 ways to trade the double top chart pattern: #1: Trade the initial breakout of the neckline. #2: The technique I like most to take a sell trade on Peak 2 when I see a bearish reversal candlestick. And if the price moves down and intersects the neckline and continues to do down further, your profits are dramatically increased.

#2: You can wait for price to go back up to test the broken neckline (which would now act as resistance level) and when you see a bearish reversal candlestick pattern, go short (sell) as this example below shows:

This is how it would look like in a real forex chart:

How to Take Profit On The Double Top Chart Pattern. Use previous low (support levels) to set take profit targets. Or another option would be to measure the distance between the neckline and the highest peak (the range) and use that difference in pips as take profit target if you are trading the breakout from the neckline. 8. Triple Bottom I do not see triple bottoms forming quite as often…Regardless of that, you should have an idea of what it looks like:

Triple bottoms are bullish reversal chart patterns, which means if found in a downtrend and this pattern starts to form and once the neckline is broken and price head up, this confirms that the trend is up. Here’s another example of a triple bottom shown below:

How to Trade The Triple Bottoms Many traders wait until the neckline is broken and trade the initial breakout. Others will wait for a retest of the broken neckline to enter a buy order once they see a bullish reversal candlestick… I prefer to take trades on the 3rd bottom by watching the price action. If I see a bullish reversal candlestick pattern, I buy. Why do I do that? Well, if price goes up and breaks the neckline and goes upward, I would be in a lot more profit than if I bought the breakout of the neckline. Profit-taking methods would be similar to the double bottom chart pattern mentioned previously… 9. The Triple Top Chart Pattern Triple tops are the opposite of triple bottoms and they are bearish chart patterns. They rarely occur but its good to know what they look like. Triple tops when found in an uptrend, it signals the end of the uptrend when the neckline is broken and price heads down.

How To Trade The Triple Top Chart Pattern Some conservative traders wait for the neckline to be broken to trade that breakout. Some will most likely wait for a retest of the neckline and then sell. I prefer to take trades on Peak 3 and if the trade breaks the neckline and goes all the way down, I have a lot more profit to make. The key to taking a good trade on peak 3 is by looking for bearish reversal candlesticks. These are your signals to go short. If you take a trade at peak 3, your profit target can be the neckline. Or if you take a trade on the breakout of the neckline, measure the distance in pips between the neckline and the highest of the 3 peaks and use that distance to calculate your profit target. Or you can use a previous low and use that as your take profit target level as well.

CHAPTER 11: NINE (9) PROFITABLE CANDLESTICK PATTERNS EVERY TRADER NEEDS TO KNOW

There are lots of candlesticks, but out of all of them only 9 that you really need to know. This is the method that we employ at our Forex Academy. Why? Because there are very popular they are really powerful so why waste time with the rest? When these candlesticks form at support and resistance levels or Fibonacci levels they are great trade entry signals. #1: The Doji Candlestick Patterns. The Doji candlesticks are single (individual) candlestick patterns. There are 4 types of Doji candlesticks as shown below: The Doji cross can be both considered a bullish or bearish signal depending on where it forms. The gravestone Doji is considered a bearish reversal candlestick when formed in an uptrend or in a resistance level. The dragonfly doji is considered a bullish candlestick pattern when formed in a downtrend or in a support level. The long-legged doji shows a period of indecision by bulls and bears and depending on where it forms (uptrend/resistance level=bearish signal, downtrend/support level=bullish signal) it can be considered a bearish or bullish signal.

#2: The Engulfing Candlestick Patterns The engulfing patterns are 2 candlestick patterns. For a bullish engulfing pattern, you will see that the first candle is bearish followed by the second candle which is very bullish and this 2nd candle completely engulfs - Bullish Engulfing-when formed in a support level or in a downtrend, this can signal that the downtrend is potentially ending. Bearish Engulfing-when formed in an uptrend or or in a resistance level, this is a signal that the uptrend may be ending.

#3: Harami Candlestick Patterns. The harami is a 2 candlestick pattern and can be bullish or bearish. Bullish Harami-this is a 2 candlestick pattern. The first candlestick is a very bearish candlestick followed by a bullish candle, which is quite short and is completely covered by the shadow of first candle. When you see this in a downtrend or in an area of support, this will be your bullish(buy) signal. Bearish Harami is the exact opposite of bullish harami. When you see this pattern form in a resistance level or in an uptrend, this is a bearish reversal signal and may indicate that the uptrend is ending and you should go short (sell).

The easiest way to remember the harami patterns is to think about a pregnant woman and a baby inside her tummy:

#4: Dark Cloud Cover Candlestick Pattern The dark cloud is another bearish reversal candlestick pattern formation consisting of 2 candlesticks. The first one is a bullish candlestick showing a strong upward momentum but when the second candle forms, it shows a completely different story…it is bearish and it closes at about the midway point of the first candlestick. When you see the dark cloud cover candlestick pattern in an uptrend or in level of resistance, it’s a bearish reversal signal and you should be thinking to go short (sell).

#5: Piercing Line Candlestick Pattern The piercing line is the opposite of dark cloud cover. You may see this in a downtrend or forming at a support level. The first candlestick is very bearish and when the 2nd candle forms, it tells a completely different story, it’s bullish. This tells you that the bears are losing steam and that the bulls are gaining strength to potentially move the market price up. The second bullish candlestick should close somewhere up the mind-point of the first candlestick. So when you see the piercing line pattern forming at support levels or in a downtrend market, take note as this is a potential bullish reversal signal so you should be thinking of going long (buying).

#6: Shooting Star Candlestick Pattern This is one of the most reliable candlesticks and obviously one of the most popular due to the fact that they are so easy to spot on any chart. The shooting star is a single candlestick pattern and when it forms in an uptrend or in a resistance level, then it is considered as a bearish reversal pattern and so you should be looking to sell.

Note: the shooting star is sometimes called the bearish hammer, inverse hammer, inverted hammer or bearish pin bar. They all mean the same and refer to the shooting star candlestick pattern. #7: Hammer Candlestick Pattern

The hammer candlestick is a single candlestick pattern pattern and its is considered a bullish reversal candlestick pattern and it’s the opposite of the shooting star candlestick pattern. It has a very long tail and a short upper wick or none at all. When it forms in a downtrend or at support levels, you should take note…this is a very high probability bullish reversal candlestick pattern and you should be looking to go long (buy). #8: Hanging Man Candlestick Pattern Now, what happens if you see in an uptrend a candlestick that looks like a hammer? Is it still a bullish signal? Well, in that case, this candlestick is a hanging man and its not a bullish signal. Here’s how it looks:

Now, the hanging man is exactly like a hammer but the only difference is that it must form in an uptrend.

When it forms in an uptrend or in resistance levels, it tells you that there is a possibility that the uptrend is ending so you should be looking to go short (sell). #9: Railway Track Candlestick Patterns The railway track pattern is a 2-candlestick pattern and there’s a bearish and bullish railway track candlestick pattern. A notable feature of railway tracks is that they look like paralleled railway tracks…and both candlesticks should be of almost the same length and body and almost look like mirror image of each other. For a bearish railway track, the first candle is bullish followed by almost exactly the same length and body of the second candlestick which is bullish. This tells you that bulls are losing ground and bears have gained control. So when you see the bearish railway track pattern in an uptrend, or in an area of resistance, this is a signal that the downtrend may be starting so you should be looking to sell. Similarly but opposite is the bullish railway track pattern. When you see this in a downtrend or in an area of support, take note because the market may be heading up and this is your signal to buy.

#10: Spinning Top Spinning tops can be continuation candlestick patterns or reversal candlestick patterns. Spinning tops have small bodies with upper and lower shadows that exceed the length of the body. Spinning tops signal indecision. A spinning top is a single candlestick pattern and it can be both bullish or bearish.

Let me explain. If you see are bearish spinning top in a support area or in a downtrend, this can be considered a bullish reversal signal when the high of tha bearish spinning top is broken to the upside. Similarly, a bullish spinning stop at a resistance level or in an uptrend can be considered a bearish signal as soon as the low is broken to the downside. The example below shows what I mean:

Spinning tops are fairly short in length compared to other candlesticks and their body length is a few steps wider than that of Doji candlesticks(which actually have none or very tiny bodies). Another notable feature of spinning tops is that the wicks on both sides should be almost the same length. When I see spinning tops form on support or resistance levels, all it tells me the bears and bulls do not really know where to push the market and so when a breakout of the low or high of a spinning top by the next candle that forms usually signals the move in that direction of breakout! Here’s an example:

Blending Candlesticks This is a technique where not many traders are aware of and I will just give you a simple example so you understand this concept better. To give you a bit of context, if you are a forex trader and you are using the metrader4 trading platform, it got only 9 timeframes where your charts can be viewed in which are the 1m, 5min, 15m, 30min, 1hr, 4hr, daily, weekly & monthly timeframes as shown on the chart below:

You may see a hammer in the 1hr timeframe but remember that that 1hr timeframe has two-30minute candles to make 1 hr, right? Yes. So what do you think the candlestick pattern would be in the two-30 minute candlesticks to give you a bullish hammer candlestick pattern in the 1hr timeframe? Or if you see a shooting start bearish candlestick in the 1hr timeframe, what do you think would be the candlestick pattern in the two-30minute candlesticks that gave that 1hr candlestick a shooting star? Well, your answers are below:

Hope you really understand this concept because here’s why: In the metatrader4 trading platform, there’s not partner timeframe for 1minute…you need a 2minute chart that does not exist. Similarly, there’s no 10min chart which you can use to blend with the existing 5min timeframe. Similarly, there is no 2hr timeframe to go with 4hr timeframe and no 8hr timeframe to go with the existing 4hr timeframe. So let’s say you are a trader that loves to trade only hammers and shooting stars and you are waiting for buy at a major support line in the 1hr timeframe. You’ve been waiting patiently for a bullish hammer candlestick pattern to form to give you the signal to buy. But unfortunately, no hammer forms in the 1hr timeframe and even though you see a bullish engulfing pattern formed, you did not enter a buy trade. You just watched as price shoots up and you wished you could have bought at the bullish engulfing signal that was given but you are only interested in trading hammers. Well, if there was a 2hr time frame in metrader4, you could have switched to it and seen a very bullish hammer and you could have taken the trade but because you did not understand the concept of blending candlesticks you missed a very good trade!!! Here are a few more examples:

Notice also that a piercing line pattern when blended forms a hammer. A Dark cloud cover when blended also forms a shooting star.

CHAPTER 12: HOW TO TRADE FIBONACCI WITH PRICE ACTION

Now, I don’t know about you but one thing I continue to see is that price action respects Fibonacci levels…not all the time but when it does, some of the market moves generated can make you money very easily. The trick is to use Fibonacci and combine it with price action by using reversal candlesticks. But first, if you’ve never heard about the Fibonacci retracement tool, then here’s a brief introduction according to our Forex Academy… What Is The Fibonacci Retracement Tool? This tool is a series or sequence of numbers identified by a guy called Leonardo Fibonacci in the 13th Century. (He’s long dead…) No, need to go into pointless details about how those numbers are derived. So what actually is a Fibonacci Retracement? In technical analysis, Fibonacci retracement is created by taking two extreme points (usually a major peak and trough) on your forex chart and dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 100%. Once these levels are identified, horizontal lines are drawn and used to identify possible support and resistance levels. The two fib levels I use the most are 50% and 61.8%. I really do not focus at all on the others. If you are using metetrader4 Trading platform, the Fibonacci tool has an icon as shown on the chart below:

Top 3 Reasons Why You Need A Fibonacci Retracement Tool: In a downtrend, after the price has been going down for some time, it will move back up (upswing…remember?). The Fibonacci retracement tool can help you estimate or predict potential price reversal areas or levels. Similarly, in an uptrend, the price will make minor downtrend moves (downswings) and the Fibonacci retracement tool will help you predict potential reversals areas or price levels. If used in conjunction with support and resistance levels and combined with price action, they do really form a powerful combination and do give highly profitable trading signals. This describes something known as “price confluence”. I will talk more about that later. How to Use the Fibonacci Tool On Metatrader4 It is actually a very simple 3 step process: Step1: find a peak (upswing point/resistance level) and a trough (downswing point/support level) Step2: Click on the Fibonacci tool icon on your chart. For the next steps, it’s all click and drag process… Step 3a: In a downtrend market, you click first on the previous peak where you want to analyze from and drag down to the trough where price reversed from and release. Step 3b: In an uptrend market, click and drag first on the trough up to the peak and release. That’s how simple it is to draw Fibonacci retracement levels on your charts. On the chart below notice that price formed a peak and then moved down, found support and formed a trough, and the price went back up.

At around the 50% fib level, it starts to slow sign of losing the upward steam. You can also see the bearish spinning top candlestick which could have been used as a signal to go short (sell). Can you buy or sell just based entirely on the fib numbers like 50% or 61.8% as soon as the price reaches these levels without price action? Well, I think that there are traders out there that do that and you can do that. But personally, I do not like that approach. I’d rather combine Fibonacci with reversal candlesticks, trend lines, support & resistance levels, etc for trade entries. Let’s study the past… here’s an example of how to trade Fibonacci with price action in an uptrend. Notice the spinning top candlestick right at the 50% level which could have been used as a buy signal:

Here’s another example of how to trade Fibonacci with price action in a downtrend:

You can see that this is not complicated, isn’t it? Very simple trade setups. Your risks are small compared to the profits you potentially can make.

CHAPTER 13: HOW TO TRADE TRENDLINES WITH PRICE ACTION

When the market is heading down, it forms down swings and up swings as it continually moves lower. Similarly, when the market is in an uptrend, it will form upswings and downswings as it continues to move up. The peaks that are formed by the up swings and the troughs that are formed by the down swings can be used to draw trendlines. And you need a minimum of 2 peaks to draw a downward trendline for a market that is in a downtrend and you need 2 troughs to draw an upward trendline for a market that is in an uptrend. Downtrend Trendlines according to our Forex Academy Now, for a market in a downtrend, you can connect the peaks with a line and that forms you downward trendline. What you are waiting for is for the price to come back up and touch that trendline and when it does, this could mean that a down swing will start and it may be the best time to enter a short trade. The use of bearish reversal candlesticks as trade confirmation is highly recommended with this trading method.

Upward Trendlines When the market is in an uptrend, connect 2 troughs and you have an upward trendline. When price comes to touch it later, you have a potential buy setup. The chart bellows shows a live example of a long trade on the AUDNZD pair that I took at the moment whilst I was writing this guide.

As you can see, I was anticipating a move up to the 1.1290 level and used that as my take profit target level. Obviously, this trade was taken based on the setup in the daily timeframe which means it may be a week or two before the profit target is hit if the market makes a nice move up or the opposite can happen, price breaks the trendline and I get stopped out or I can walk away with some profits when my trailing stop gets hit. But the next day, price broke that upward trendline and I got stopped out with a loss. But here’s the thing with a trade like that…my stop loss is tight, with a potential reward of more than 3 times what I risked for this trade. Here’s the chart of what happened:

I strongly recommend that you use bullish reversal candlesticks as a signal for executing your buy/long trades. I’m not glamourizing price action trading here. You will have losses like what I’ve shown. But think about this…if the price had moved the way I analyzed, I would have made a lot more profits than what I lost. With Price action trading, you are risking less with the potential to make more and that’s the beauty of price action trading, that is why this is one of our recommended forex trading strategy. What happens if the trendline gets intersected? There are a couple of things you need to be aware when a trendline gets intersected: (1)The first is that it could mean the trend has now changed. (2)The second is that it can be a false break only and the price will soon head back in the original direction. Now, there’s another thing about trendlines, if one trendline get’s broken, you need to be see if you can draw another trendline above (or below) the one that’s broken. There can be 2 or more downward trendlines or 2 or more upward trendlines at any one time on any chart in any timeframe. So if the price breaks the first trendline, it still has yet to head to the 2nd and the third, etc… So if you take a sell trade on the first trendline but price intersects it and you are stopped out with a loss and now price is heading to the 2nd trendline above, you should also look to sell if you get bearish reversal candlestick signal. Here’s an example of a trade in a similar situation that I took on the AUDUSD pair. See the chart below: (enlarge if you cannot see clearly).

You will notice that I took the first trade on the first downward trendline based on a bearish harami and also a spinning top pattern there but then price intersected that trendline and went up to the 2nd downward trendline. I saw a shooting star so I took another short trade. Obviously, you can see how the price reacted to the trendline by forming a shooting star. That was enough signal for me to short this pair. You need to be aware of these kinds of trendlines not only on the sell side buy ton the buy-side as well.

CHAPTER 14: HOW TO TRADE MOVING AVERAGES WITH PRICE ACTION

Remember in the beginning I did briefly mentioned something about Not-So-Pure Price Action Trading? Well, now we are at it! When you use price action trading with one other indicator or a combination of indicators that are incorporated into your trading system then that’s what I call Not-So-Pure Price Action Trading. (Call it whatever you like, if you think I’m wrong, I really don’t care). Many new traders find it difficult to define the structure of a trending market, therefore they rely on moving averages for trend detection or identification. The only thing I see useful in moving averages is for dynamic support and resistance levels. I will explain this concept shortly. As a matter of fact moving averages do a terrible job of predicting trends in that they only do that after that trend has already started already and price has moved a great deal already.

Here’s an example: In the chart on the left, notice that price has crossed the HL(higher low) already, indicating that the downtrend market has started (potentially). But notice that the moving averages have not crossed yet. So price action is telling you that you are now potentially in a downtrend but moving average is saying “not yet”. So you have two conflicting signals. And by the time moving average confirms what the price action has indicated, the price has already made a great deal of move downward already as shown by this chart on the left.

So which are you really going to pick? Depend on moving average to tell you that a trend has changed or depend on price action? I really can’t force, it’s your choice. Using Moving Averages For Dynamic Support And Resistance Levels The concept of dynamic support and resistance can be fully understood with a few charts given below. When the market is in a downtrend, you will notice that price moves up to the moving average lines (upswing) and then bounces back down from them (downswing). (That is if you put moving average lines on your charts). Here’s an example:

The similar situation happens in an uptrend: prices move down to the moving average lines (downswing) and then bounces up from them (upswing). Here’s an example shown on the chart below:

Now that you know this concept of dynamic support and resistance using moving averages, the next thing you need to know is that trend trading strategies can be created around them and in a very nice trending market, they are really effective. For those that love moving averages, what you can do is to look reversal candlesticks as price starts to go back to touch the moving average lines and these are used as your confirmation signal to buy or sell. In a downtrend, you should be looking for bearish reversal candlesticks like the shooting star, bearish harami, spinning tops, dark cloud cover, hanging man etc to go short (sell). In an uptrend, you should be looking out for bullish reversal candlestick patterns like pin bars, dojis, piercing line, bullish harami etc… Let’s study the past again…on the chart below is an example of how to trade dynamic support with Price Action:

Now, it’s easy to say here that “ you could have bought here and sold here” etc based on what happened in the past because now you can see how the market has played out in the past… But real challenge for many traders is that when a setup is happening, they will most likely second guess it because this is how its going to look:

And this is how how it turned out:

Here’s an example of trading trading using dynamic resistance levels with price action:

CHAPTER 15: HOW TO TRADE CONFLUENCE WITH PRICE ACTION

What is confluence? Well, let’s find out here in this following example that we always use at our Forex Academy… What if you were watching the market and then you saw that price is heading to a resistance level and then you checked your Fibonacci retracement and it’s almost like a coincidence that the resistance levels is also at 61.8 Fibonacci level as well. And there’s even more…the overall trend is also down. So you have 3 things lining up for you, here they are again: the overall trend is down you have a resistance level that price is coming to and you notice that the price is also heading up to the fib level is 61.8 which coincides with the resistance level. What I’ve described above is an example of confluence. A confluence is a point/level in the market where two or more levels intersect each other (or come together) and they form a flash point or hot point or confluent point. Here’s An Example Of How I Trade With Confluence Let me give a real example of a trade that I took as I was writing this. This is the daily chart for AUDUSD. Have a good and close look at it.

Here’s why I took that trade: I first drew a downward trendline and was waiting to see if price would come up to touch the trendline. And I also noticed that the previous support level that was broken could potentially act as a resistance level causing price to reverse. Therefore nowI have two things coming together. Next thing I did was to check what the fib retracement level to see if price came and hit that resistance level what the ratio would be. Surprisingly, it was 61.8%. Sweet! So now I have 3 things coming together. So how did I take the trade then? I switched to the 1hr timeframe and waited for price to come and hit the confluence zone and saw a shooting star, a bearish reversal Candlestick pattern (also sometimes called a bearish pin bar). That was my clue to execute a short trade right there. Here’s is a close up of how the trade setup looked like in the 1hr where I was waiting to take the trade(see chart below):

I risked 50 pips for this trade and later I’m going to set the previous swing low as my profit target which is 215 pips and if my profit target gets hits, I will make 7times what I risked initially. Update: Good thing as I was stilling writing this guide this trade played out so I can show you what happened: As you can see, I managed to make 138 pips on the first trade. Note also that I also made a 2nd trade which made 125pips as well. Even though my profit target was not hit, I used trailing stop loss as shown below until I got stopped out when price moved back up.

That’s the beauty about these kinds of trades: They are really low risk-high reward entry trades. They have a great chance of being profitable. There’s two ways you will learn from price action: First is to spend hours over your charts analysing what happened in the past and asking these types of questions: Why did price make a big upward move from here and why did price make a big downward move from here? What price action signals that formed there that could have given anybody an indication that this massive move was about to happen? You will bebloody surprised at what type of reversal candlesticks and chart patterns you will find!!! Then with that knowledge, get back to the present and see if you can see these patterns unfolding in the current market. Here’s an example of a Doji candlestick confluence with the dominant downtrend, as if formed telling you to sell the market with the trend. This short trade setup had 4 factors of confluence supporting it: The Doji had confluence with the dominant downtrend, as it formed telling you to sell the market with the trend. The Doji showed a clear indecision by the sellers and the buyers therefore the breakout of the low of Doji candlestick was what the sellers were waiting for to push the market down. The Doji candlestick also formed between the 50-61.8 Fibonacci retracement zone. The moving averages providing dynamic resistance.

Here’s another example:

Now, I can put lots of charts giving you examples of what happened in the past…but it’s best that now you see and understand what I am explaining here, and then go and sit down and observe what happens on your charts in real-time. All this information here is providing you the foundation; the basic framework you need to trade price action, the learning comes from observing and doing.

CHAPTER 16: TOP 2 REASONS WHY I USE MULTI-TIMEFRAME ANALYSIS AND TRADING

There are 2 main reasons why I use multi-timeframe trading: For getting better trade entries For reducing stop loss distance so I have better risk:reward ratio which means I can also increase the amount of contracts I trade without risking more of my trading account…so if my trade direction is right, I make a lot more money! Now, I will explain both in detail… How To Get Better Trade Entries And So Reduce Your Stop Loss Distance With Multi-Timeframe Analysis And Trading If you are trading strictly using the large timeframes like the daily chart, your stop loss distance will be huge and the issue with that is your risk:reward ratio can be reduced (no necessarily all the time): Risk to Reward Ratio Explained: Simply put, investing money into the investment markets has a high-degree of risk, and if you're going to take the risk, the amount of money you stand to gain needs to be big. If somebody you marginally trust asks for a $50 loan and offers to pay you $60 in two weeks, it might not be worth the risk, but what if they offered to pay you $100? The risk of losing $50 for the chance to make $100 might be appealing. So in that case your risk:reward ratio will be 1:2 But what if you decided that you want to minimize your stop loss distance? And even though you are trading with a setup in the daily chart, for your trade entry, you are actually switching to the smaller timeframe and watching for a sell signal in the 1hr timeframe? Well, what I’ve just described is a really good example of multi-timeframe trading to get better trade entries. Let’s study a chart of what happened in the past to make you understand what I am talking about… This chart below is a daily chart and shows a triple top pattern in a solid resistance level. Price has been pushed down twice from this level and when the third time it price reaches this level, it was pushed down again.

Now, you can see the bearish harami reversal candlestick pattern and you could have used this as your sell signal by placing a pending sell stop order just a few pips under the low. And placed your stop loss outside of the resistance line as shown on the chart above. But if you switched to the 1hr chart to wait for trade entry, your stop loss distances would be very small in comparison to the daily timeframe as shown by the chart below(I’ve zoomed in to get in closer):

Now, let’s compare both trades in the daily chart:

Notice that for the 1hr trade entry, it was done almost at the very top and the stop loss distance was very small in comparison to the trade taken in the daily timeframe. Which means that the risk:reward of the 1hr timeframe trade is a lot better than what you would get in the daily. Now, you can do this with daily timeframe and 4hrs or even down to the 30 and 15 minute timeframes. Or you can watch trade setups in the 4hr but switch to either the 1hr, 30mins, 15min and 5mins for your trade entries. I often use the 1hr for my trade entries and can even go down to 5min timeframe for my entries. If you are new trader, stick to 1hr or 4hr timeframe for your trade entries. So when you trade in the 1hr timeframe (or much smaller timeframe) you can actually trade a lot more contracts without risking more because your stop loss distance are very small compared to the larger timeframe trade. For example, the stop loss for the 1hr timeframe trade is 20 pips but for the daily timeframe trade is 80 pips. Let’s say that you have a $10,000 account and you risk 2%($200) each trade. If you trade in the daily chart, that stop loss of 80 pips is roughly $800 so to keep your risk at 2% the amount of contracts you will trade will be 0.25. However If you’ve traded in the 1hr you can be able to trade 1 standard lot. This simple example explains why I wait patiently for trade setups to happen in the monthly, weekly, daily, 4hr timeframes and then use smaller timeframes to get good trade entries. This is the beauty of multi-timeframe trading using price action. Let me give one more example of multi-time frame analysis…As I’m writing this book (the date now is 5th of Dec 2014), I can see that EURJPY has been on an uptrend since July 2012 on the monthly charts and I can also see that there is resistance level at 149.115 which it hit already. This is the monthly chart:

Now, lets zoom in on the daily chart and see what the price action is like on where the arrow is pointing (see chart below):

Ok, I begin to see what’s happening…so obviously, EURJPY has been rejected down on the 149.115 resistance level with the formation of the shooting star (bearish candlestick signal) but now, I can see that its going back up to test that level again. Two things can happen here: Price is going to hit the resistance level and head back down ( and I will be waiting for a bearish reversal candlestick there to sell when I see one). Or its going to break it and if it breaks it, there’s a significant resistance level above it you can see on the monthly chart. Now, let’s go down into the 4hr chart to see what is happening there as well…

So now you can see how I do my multi-timeframe analysis to get down a timeframe where I execute a trade at a very good price level or entry point whilst keeping my stop loss distance tight. Now, here’ the thing about larger timeframes: “They cover up trading setups that are happening in smaller timeframes that could be really reliable trading setups.” But when you switch back and forth between timeframes, you begin to see how you can trade the larger timeframes setups based on the setups that happen in the smaller timeframes. For this eurjpy setup above, I’m going to be sitting down and watching it to see if I get a bearish reversal candlestick in the 1hr or the 4hr….it’s probably going to happen tonight in maybe 4-8hrs time but the price is getting close to that resistance level. I really don’t like trading breakouts where I see the price has been overextend for a long period of time so even if this one breakouts to the upside, I will not be buying. I will be waiting for a pullback to buy, if that happens.

CHAPTER 17: TRADE THE OBVIOUS

I hope you have learnt how powerful price action trading can be. Now, not all trading setups you see will become winners. At our Forex academy, we always emphasize that trading forex is a risky business, the fact that you have done everything according to plan does not gurantee a profit; Anything can happen in the market!!!! But here’s the thing…if your losses are small but your profits are large, you will always be in be out in front. That’s why trading risk management is important. When you are watching the chart for trading setups, you need see and trade the obvious. What do I mean by that? Well, if there is an obvious pattern on the chart and you can see it clearly, then you should know that there are thousands of traders out there are watching the exact same thing as you are doing…because it’s so obvious. Things like: Trendlines or channels or bullish pin bar forming on major support level, if you can see that, there are many that will be seeing the same thing. All these traders will be waiting to see what happens at these levels and say if a bullish hammer forms on a major support level, then guess what will happen next? The most likely outcome of that is that as soon as the high of the hammer candlestick is broken, price will shoot up! Trade the obvious!

How many times have you ever went over your chart and you are like: “Goodness me! I should have taken a trade here and look at how the market moved after that bearish shooting star candlestick was formed after hitting the resistance level.” When you trade the obvious, then you trade with what everybody else is seeing and in essence you are really doing piggy-back, riding on the market move created by all these orders that puts the odds in your favour. See chart below for this: if you see a support major support level and price is heading down to it and at the same time, that support level is coinciding with an upward trendline… What does this mean? That’s Confluence buddy! And then you see a bullish Piercing line reversal candlestick form right at the area of confluence. Are you going to be undecided about this price signal and pull up stochastics or CCI indicator to really make sure (give you confidence) you need to buy??? Seriously??? NO need for that…Just Trade the obvious!

CHAPTER 18: CLOSING REMARKS

Some things I have learnt: Levels are not lines drawn in concrete, they get broken. You see, the more a level is tested multiple times, sooner or later it will get broken. From my observations, 2-3 times is the average, after that, expect a breakout of the level. Don’t listen to analysts. They can stuff up your decision making process and cloud your judgement. For example: I see a sell setup on my chart but because I’ve read the analysts report that says he is bullish on this currency pair because of this and that reason, I hesitate to pull the trigger . Later, I check the chart and see that If I had sold, I would have made money. So use your own independent judgment based on what you see on your charts. Find your best timeframe to trade. Your personality, work circumstances etc may dictate what timeframe you can use. For me, I can trade from the 4hr, 1hr down the 5 & 1 min charts because I use multi-timeframe trading. Yes, there will be people that will say “You are crazy to be trading in the smaller timeframes like the 5min and 1minute because there’s too much noise in the smaller timeframes.” Yes, I know that…The whole point of me switching to lower timeframes is this: to get better trade entries. You don’t have to do that, that’s my style. That’s what I like. If the bus leaves you, don’t chase the bus! In other words… don’t chase trades. If you are late to get into a trade at an optimal entry point and realized that you might “miss out”, then back off and wait. There will always be another opportunity or wait for a retrace/retest/pullback etc and then enter. Be patient for the right trading setups to form. If you are suffering from losing streaks, take a break. Take a week off from trading to clear up your mind then come back with a clear mind to trade. If you have winning streaks, don’t get overconfident and risk more. Youstreaks of losses may be just around the corner. Continue practising the above methods until they become second nature, our Forex Academy will provide you with free courses, so learn.

Are you ready to trade on a real account?

Go to forextime.com and login into your account. Click “My Accounts” and then “Accounts overview”

Under My Demo Accounts, click on the down arrow and select “Delete Account”. We would like to delete the Demo account so that we do not confuse it with our real accounts.

Under My Trading Accounts, click on the Deposit button (Minimum 100 USD).

Choose your deposit method and follow the instructions. Remember to deposit using your Credit card or Debit card (e.g. A cheque/current account) select the Credit/Debit Cards option depending on whether your card is VISA or Mastercard. Once the money deposited reflects on your account, you may trade real money the same way you have been trading with a demo account. More Forex Trading Courses: Video Courses Written Courses Video Courses Link Ultimate Forex Trading Training Videos - Level 1 https://videos.xyzpocket.com/ Best forex trading videos - Level 2 Advanced https://videos.xyzpocket.com/best-forex-trading-videos-level-2-advanced/ Complete Forex Trading - how to do Forex trading https://videos.xyzpocket.com/complete-forex-trading-how-to-do-forex-trading-1/ Easy Forex Trading for Beginners https://videos.xyzpocket.com/easy-forex-trading-for-beginners-1/ Forex courses online – Trading Forex indices https://videos.xyzpocket.com/forex-courses-online-trading-forex-indices-2020/ Learn Fundamental Analysis - Best Forex Training Online https://videos.xyzpocket.com/learn-fundamental-analysis-best-forex-training-online-2020/ Winning Forex trading learning with Live Trading Examples https://videos.xyzpocket.com/winning-forex-trading-learning-with-live-trading-examples-2020/ Written Courses Link 50 Pips A Day https://www.xyzpocket.com/forex-trading-training-50-pips-a-day/ Forex Academy - The Ultimate Price Action https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/ Forex Masters Course 2020 - Follow Price Action Trends https://www.xyzpocket.com/forex-masters-course-2020-follow-price-action/ Forex Trading School - Best Day Trading Forex https://www.xyzpocket.com/forex-trading-school-best-day-trading-forex-2020/ Free Forex Training - The Ultimate Basics https://www.xyzpocket.com/free-forex-training-the-ultimate-basics-2020/ Master in forex trading - 15 minutes a day https://www.xyzpocket.com/master-in-forex-trading-15-minutes-a-day/ Read the full article

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Best forex brokers in south Africa 2020

Best forex brokers in South Africa 2020

In South Africa, we are spoilt for choice, the best forex brokers in South Africa are easy to find. There is a huge list of best forex brokers in South Africa from around the world and South African citizens can register and trade with all of them. However, forex traders are strongly advised to stick to brokers regulated by a high authority regulator such as the Financial Services Conduct Authority of South Africa (FSCA) previously known as the Financial Services Board (FSB). Best forex brokers in South Africa; free below. There are many countries with such regulatory bodies and the top forex trading brokers are regulated with one or more of these. Regulation is the first consideration traders should take into account before choosing a broker. There are important aspects to consider before choosing the best forex trading brokers in South Africa. Many brokers appear very similar at first, but there are subtle differences, which make each broker uniquely suitable for a different type of trader. Best forex brokers in South Africa list is very vital. All of the following brokers are regulated and all of them offer demo accounts. These are the first prerequisites in narrowing the list down to the broker that is best for you. Risk Warning: Trading Forex and CFD is Risky; Your Capital is at Risk. Always remember that Forex trading is a risky business and you might win money or even lose all your money.

Top forex brokers in South Africa -

1. ForexTime (FXTM) (This is our recommended broker) ForexTime (FXTM) is a highly popular broker among South Africans as they are registered with our local FSCA regulator, so you can rest assured that your money is safe. ForexTime is one of the best forex brokers in South Africa. Also what’s great is that if you don’t have the usual $250 minimum deposit required by most brokers, FXTM has an account known as the cent account with a minimum deposit of only $5. Cent Account – Minimum Deposit $5 (+/- R80), Spreads from 1.5 Standard Account – Minimum Deposit $100 (+/- R1,400), Spreads from 1.3 To wrap it up they pretty much have all the bells & whistles as any other broker on this list, including Copy Trader a feature that allows traders to automatically copy professional traders. FXTM can truly be counted among the best forex brokers in South Africa. Here are the features of FXTM at a glance:  Broker regulation South Africa - FSCA Mauritius – FSC United Kingdom – FCA Cyprus – CySEC Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 and WebTrade Mobile trading apps Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) CFDs on Commodities CFDs on Indices Spot Metals Share CFDs Cryptocurrency CFDs Stock Trading Contract Specifications Best forex brokers in South Africa should have multiple instruments.  Trading Tools FXTM Pivot Points Strategy FXTM Trading Signals FXTM Trader App Currency Converter MT4 Indicators Forex VPS Trading FXTM Invest Profit Calculator Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading Copy-trading (Copy trading involves copying trades of the best performing Forex traders without knowing how to trade and even doing any research – Let the experts do all the work for you). FXTM has a copy trading feature called FXTM Invest.  Market Analysis Market Outlook Economic calendar Forex News Timeline Market Analysis Videos Market Analysis Team  Trading Accounts Accoount Type Standard Account Cent Account Shares Account Trading Platforms MT4 / MT5 MetaTrader 4 MetaTrader 4 Account Currency USD / EUR / GBP / NGN US Cent / EU Cent / GBP Pence / NGN kobo USD / EUR / GBP / NGN Leverage Floating from 1:12000 Fixed from 1:1000 – 1.25 (FX), 1:500 – 1:25 (Spot Metals) Fixed leverage 1:10 for US Shares and 1:3 for European Shares Minimum Deposit 100 pounds 10 pounds 100 pounds Commission 0 0 0 Spread From 1.3 From 1.5 From 0.1 Deposit Methods by one of the best forex brokers in South Africa Bank Transfer Visa Mastercard Maestro Skrill Neteller Bitcoin Unionpay

2. Avatrade AvaTrade is well into its second decade of operation, boasting adherence to the regulatory requirements of more than 6 global regions – from North America through Europe and South Africa to Asia, including the hard-to-crack Chinese market. It is obviously one of the best forex brokers in South Africa. Their track record as one of the best forex brokers in South Africa is one no other online broker can attest to; each AvaTrade review speaks for itself, thanks to a corporate vision that emphasizes client satisfaction and a constant effort to answer each new need as it arises. Avatrade will always feature among the top forex brokers in South Africa. They are definitely one of the best forex brokers in South Africa. Here are the features of Avatrade at a glance:  Broker regulation South Africa - FSCA Australia – ASIC British Virgin Islands – B.V.I FSC United Kingdom - FSA Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 and 5 WebTrader Mobile trading Mac Trading Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) CFD trading (Commodities, ETF, Indices, Bonds and Treasury) Cryptocurrency CFDs Stock Trading Best forex brokers in South Africa should have multiple instruments.  Trading Tools Trading Calculator AutoChartist (Automated technical analysis tool implemented on Metatrader 4 that identifies trading opportunities) Avaprotect (Available on the mobile app to protect your money for a certain period once a position has been opened) Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading DupliTrade is an MT4 compatible platform, which allows traders to automatically follow experienced traders’ signals and strategies in real-time. Its user-friendly interface makes it easy to build and manage a trading portfolio while gaining valuable insights on successful trading strategies.  Market Analysis Financial Instruments information Economic calendar Market Analysis information Earnings releases  Trading Accounts Accoount Type Professional Account Retail Trading Platforms MT4 / 5 MT4 / 5 Leverage Max. 400:1 Max. 400:1 Minimum Deposit 100 USD 100 USD Commission 0 0 Spread 1.3 pips 1.3 pips Deposit Methods from one of the best forex brokers in South Africa Bank Transfer Visa Mastercard POLI Skrill Neteller Paypal

3.ForexMart As your trusted Forex trading partner, ForexMart is highly committed to offering high-class trading software, giving exceptional trading experience, protecting your account against any fraudulent activity, and equipping you with comprehensive knowledge needed for successful trading. Among the best forex trading brokers in South Africa, meet ForexMart. They are definitely one of the best forex brokers in South Africa.  Broker regulation Cyprus – CySEC Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) CFD on Shares Cryptocurrency CFDs Spot Metals Energy Indices Best forex brokers in South Africa should have multiple instruments.  Trading Tools Economic calendar VPS Hosting Forex Calculator Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading Open a ForexMart account, verify it, and use a payment method you prefer to deposit your account. All personal data are stored and protected by using the latest encryption technology. Once inside the platform you may use the copy trading feature to copy the best traders’ forex strategies.  Market Analysis Market Analysis information Economic news  Trading Accounts Accoount Type Classic Pro Cents Zero Spread Scalping Trading Platforms MT4 MT4 MT4 MT4 MT4 Leverage Max. 500:1 Max. 500:1 Max. 500:1 Max. 500:1 Max. 500:1 Minimum Deposit 15 pounds 1000 pounds 15 pounds 1 pound 100 pounds Commission 0 0 0 0.02% - 0.07% 0 Spread Min. 1 pips. Average 1.2 pips Min. 0.6 pips Averge 0.8 pips Min. 1 pips Average 1.2 pips Min. 0 pips (fixed) Min. 0 pips Average 1.2 pips Deposit Methods from one of the best forex brokers in South Africa Bank Transfer Visa Mastercard Skrill Neteller Sofort 4. IQ Option How can we compile a list of the best forex brokers in South Africa, without IQ Option? IQ Option is one of the fastest growing online trading brands in the world. Voted the best mobile trading platform, they have now expanded their offerings to include CFDs on stocks and ETFs, Forex trading, and the exclusive IQOption product called Digital Options. First founded in 2013, IQ Option has grown massively, and now has over 40 million members and counting! The platform itself has also undergone some changes since 2013, and they are constantly working to ensure it is fast, accurate and easy to use. Although they do not have the Metatrader feature, IQ Options is also one of the best forex brokers in South Africa.  Broker regulation Cyprus – CySEC Best forex brokers in South Africa should be regulated.  Trading Platforms IQ Options platform – An advanced trading platform for Desktop Windows, Mac Operating system, Mobile app and the web interface. Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) Stocks Cryptocurrency CFDs Options ETFs Best forex brokers in South Africa should have multiple instruments.  Trading Tools Economic calendars Historical Quotes Trading Signals Islamic Account Tournaments Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading None. It does not have its own copy-trading feature.  Market Analysis News feed Industries resources  Trading Accounts Account Type Live Account Trading Platforms IQ Option Custom-made Leverage Max. 1000:1 Minimum Deposit 5 USD Commission 0 Spread Min. 1.1 pips Deposit Methods from one of the best forex brokers in South Africa Bank Transfer (Local banks: Capitec, FNB, ABSA, Nedbank, Standard Bank, Investec) Visa Mastercard Skrill Neteller WebMoney WMZ AstroPay Advcash Perfect Money

5. FxPro As a strong proponent of transparency, FxPro establish the highest standards of safety for our clients' funds. For this reason, client funds are kept in major international banks and are fully segregated from the company’s own funds. Ever since their establishment, FxPro has successfully expanded to serve retail and institutional clients in more than 170 countries - and are still growing. That is why FxPro is on of the best forex brokers in South Africa.  Broker regulation Cyprus – CySEC United Kingdom – FCA South Africa – FSCA FxPro Global Markets Limited is authorised and regulated by the Securities Commission of The Bahamas Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 (MT4) Metatrader 5 (MT5) cTrader Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) Futures Indices Shares Metals Energies Best forex brokers in South Africa should have multiple instruments.  Trading Tools Economic calendars Forex tools Economic News Calculators Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading None. It does not have its own copy-trading feature.  Market Analysis News feed Industries resources  Trading Accounts FxPro has always been a keen supporter of transparency and fairness in the Forex industry, and it has made every effort to hard to eradicate conflicts of interest between broker and client. According to FxPro CEO, Charalambos Psimolophitis, “We provide our clients with not only superior educational resources and trading tools but also with a guarantee of their funds’ safety. In an industry where it is taken for granted that slippage almost always goes against the client, we are pleased to demonstrate that this is not in fact the case.” FxPro is committed to providing its clients with full trade reporting and support. In this regard, it posts its monthly slippage statistics right on the website. Traders can choose between instant execution and market execution a feature not made available by many other Forex brokers. They also offer advanced order-matching and execution technologies that are continuously upgraded. Deposit Methods from one of the best forex brokers in South Africa Bank Transfer Visa Mastercard Skrill Neteller UnionPay

6. FBS FBS is an international broker with more than 190 countries of presence. 14 000 000 traders and 370 000 partners have already chosen FBS as their preferred Forex company. To provide the best customer experience FBS organizes seminars and special events, providing its clients with training materials, cutting-edge trading technologies and the latest strategies on the Forex market. Both newbie and professional traders will find these sessions useful. Without a doubt, FBS is one of the best forex brokers in South Africa.  Broker regulation Belize - IFSC Best forex brokers in South Africa should be regulated.  Trading Platforms FBS Trader Metatrader 4 Metatrader 5 Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) Metals CFD Stocks Forex Exotic Best forex brokers in South Africa should have multiple instruments.  Trading Tools Economic calendars Traders' calculator Risk Management tools Alerts Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading FBS Copy Platform for both investors and traders  Market Analysis Company news Forex News Daily Market Analysis  Trading Accounts Accoount Type Standard Account Cent Account Micro Account Zero Spread ECN Account Trading Platforms MT4, MT5 and FBS Trader MT4, MT5 and FBS Trader MT4, MT5 and FBS Trader MT4, MT5 and FBS Trader MT4, MT5 and FBS Trader Account Currency USD USD USD USD USD Leverage Up to 1:3000 Up to 1:1000 Up to 1:3000 Up to 1:3000 Up to 1:500 Minimum Deposit 100 USD 1 USD 5 USD 500 USD 1000 USD Commission 0 0 0 0 0 Spread From 0.5 pips From 1 pip From 3 pips 0 pip From 1 pip Deposit Methods from one of the best forex brokers in South Africa Visa Neteller Sticpay Skrill Perfect Money Bitwallet Local exchangers

7. AxiTrader AxiTrader was founded in 2007 on a simple idea: be the broker we’d want to trade with. Since then, we've grown from a two person startup into a global business servicing tens of thousands of traders in more than 100 countries. AxiTrader can be counted among the best forex brokers in South Africa.  Broker regulation The United Kingdom - FCA Australia - ASIC Dubai - DFSA Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 Webtrader Metatrader 4 AxiOne Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) Indices CFD Commodities Oil Gold and Silver Crypto Best forex brokers in South Africa should have multiple instruments.  Trading Tools Signal Providers MT4 VPS Hosting AutoChartist Economic calendar Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading PsQuation is a social trading feature used by FBS; were traders can follow leading strategies.  Market Analysis Company news Forex News Daily Market Analysis  Trading Accounts STANDARD ACCOUNT PRO ACCOUNT Setup cost Free Free Spreads From 0.4 pips From 0.0 pips Commission None $7 round trip (USD) Minimum Trade Size 0.01 lots 0.01 lots Minimum deposit $0 $0 Products 140+ FX pairs, Metals CFDs 140+ FX pairs, Metals CFDs Pricing 5 digit pricing 5 digit pricing Mobile trading Yes Yes MT4 NextGen Yes Yes Margin/Leverage Up to 500:1 Up to 500:1 Base account currencies AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, USD AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, SGD, USD Demo period 30 days 30 days EA compatibility Yes Yes VPS Free** Free** Autochartist Free Free myfxbook Autotrade Free Free PsyQuation Free Free PsyQuation Premium Free Free Deposit Methods from one of the best forex brokers in South Africa Visa Mastercard Neteller Skrill Bank Transfer BPay China Union Pay WeChat Bank Wire POLI

8. XM Broker With over 2,500,000 clients since it was founded in 2009, XM has grown to a large and well established international investment firm and has become a true industry leader. XM is currently built of more than 450 professionals with long-year experience in the financial industry. Their extensive experience combined with support for well over 30 languages, makes XM the broker of choice for traders of all levels, anywhere. XM Broker is among the best forex brokers in South Africa.  Broker regulation Cyprus - CySEC United Kingdom - FCA Australia - ASIC Italy - IFSC Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 Webtrader Metatrader 4 Metatrader 5 Webtrader Metatrader 5 Mobile Apps Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) Stocks Commodities Equity Indices Precious Metals Energies Best forex brokers in South Africa should have multiple instruments.  Trading Tools Forex Calculator Technical Indicators MQL 5 Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading XM Mirror Trade is a social trading feature used by XM; where traders can follow leading strategies or traders.  Market Analysis Markets News Forex News Technical Summaries Trade-Ideas Economic Calendar  Trading Accounts Accoount Type Micro Standard Ultra Low Shares Trading Platforms MT4 / 5 MT4 / 5 MT4 / 5 MT4 / 5 Leverage 1:1 to 1:888 ($5 – $20,000) 1:1 to 1:200 ($20,001 - $100,000) 1:1 to 1:100 ($100,001 +) 1:1 to 1:888 ($5 – $20,000) 1:1 to 1:200 ($20,001 - $100,000) 1:1 to 1:100 ($100,001 +) 1:1 to 1:888 ($5 – $20,000) 1:1 to 1:200 ($20,001 - $100,000) 1:1 to 1:100 ($100,001 +) No leverage Minimum Deposit 5 USD 5 USD 50 USD 10,000 USD Commission 0 0 0 YES Spread As Low as 1 Pip As Low as 1 Pip As Low as 0.6 Pip As per the underlying exchange Deposit Methods from one of the best forex brokers in South Africa Bank Transfer Sofort Banking Visa Mastercard Maestro Skrill Neteller Bitcoin Unionpay

9. FXGiants FXGiants is an international online trading broker, giving access to retail and institutional investors, to over 200 tradable instruments from 6 asset classes. The company operates successfully around the globe and places great emphasis on providing professional and reliable services to all our clients. FXGiants is committed to provide the highest standard of services with full transparency to clients and become a one-stop destination for online trading. FXGiants are among the best forex brokers in South Africa.  Broker regulation United Kingdom - FCA Best forex brokers in South Africa should be regulated.  Trading Platforms Metatrader 4 for PC Metatrader 4 for Mac Metatrader 4 for Multi-terminal Mobile Apps Best forex brokers in South Africa should have a diverse platform choice.  Trading Instruments Currency Pairs (Forex trading) Metal Indices and Commodities Futures Shares Cryptocurrency Best forex brokers in South Africa should have multiple instruments.  Trading Tools Technical Indicators Best forex brokers in South Africa should have useful trading tools to assist you while trading.  Social Trading AutoTrade by Myfxbook is the latest in social trading software. It allows less experienced traders to copy the trades experienced traders you select into your FXGiants MetaTrader 4 account.  Market Analysis Forex News Live Currency Rates Signals  Trading Accounts Account Type Micro Account Premium 0 Fixed Spread STP/ECN No commission Trading Platforms MT4 for PC and Mobile apps MT4 for PC and Mobile apps MT4 for PC and Mobile apps MT4 for PC and Mobile apps Account Currency USD, EUR, GBP, JPY, CZK USD, EUR, GBP, JPY, CZK USD, EUR, GBP USD, EUR, JPY, CZK Leverage 1:1 up to 1:1000 1:1 up to 1:1000 1:1 up to 1:500 1:1 up to 1:200 depending on the deposit Minimum Deposit 100 USD 1000 USD 500 USD 200 USD Commission 0 0 18 USD per lot 0 Spread As low as 1.1 As low as 0.7 Not Disclosed Not Disclosed  Trading Accounts (continued) Account Type Absolute Zero STP/ECN STP/ECN 0 Spread Absolute Zero Plus STP/ECN Trading Platforms MT4 for PC and Mobile apps MT4 for PC and Mobile apps MT4 for PC and Mobile apps Account Currency USD, EUR USD, EUR, GBP, JPY, CZK USD, EUR Leverage 1:200 1:1 up to 1:200 1:200 Minimum Deposit Not specified 500 USD Not disclosed Commission 0 7.5 USD per lot Up to 10 USD IB Commission Spread Not disclosed Not disclosed EUR/USD as low as: 0 Deposit Methods from one of the best forex brokers in South Africa Visa Mastercard Bank Wire Skrill Neteller Dotpay Unionpay Click here to go to FXGiants

Factors In Choosing a Forex Broker - best forex brokers in South Africa

Regulation is a critical factor when choosing a broker. A regulated broker can be given the benefit of a doubt that all is well. Account Types are very vital; see if a demo account is available. This will assist you during training. Trading Platform is also very important; remember you need to trade on a user-friendly platform that you can understand. Choose what Broker Type you want. Some brokers offer commission-free trading and are known as dealing desk brokers or market maker brokers. Some brokers charge commission but have tighter spreads, these are known as non-dealing desk brokers or direct market access brokers. Always check for additional Broker Fees that may be charged. We always highlight these in our reviews, but common ones are deposit and withdrawal fees and currency conversion fees. Find a broker with the Trading Conditions that will support your trading strategy. Think about how much Leverage you want to have available; keeping it low (100:1 or less) is a good idea if you are still learning how to trade. You might increase the leverage as you become comfortable with forex trading. Want to learn how to trade forex for free - Click Here.

Forex Broker FAQ - best forex brokers in South Africa

What exactly is a Forex Broker? A Forex broker is an intermediary between traders and the world's currency markets. They do this by providing a platform and capital. A trading platform provides traders with access to the interbank market. The interbank market is a collection of technology platforms used by banks to trade with one another. The broker platform provides traders with live prices, the ability to execute trades, and tools like charts. Most traders use leverage to trade, and brokers provide leverage by effectively lending capital to their clients. What is Leverage? Leverage, also known as gearing, allows traders to take positions using capital borrowed from a bank. The trader’s margin account is used as collateral against the loan, and any losses are subtracted from the margin account. There is more than one way to trade with leverage. A margined trading account gives traders access to leverage as mentioned above. Derivatives also give clients access to increased buying power. When a trader buys a CFD, future, option, or spread position, they must pay margin to enter the trade. In this case, the margin is like a deposit against which any losses are offset. Forex brokers offer leverage of anywhere from 50 to 1,000 times a trader’s margin, though this usually depends on the account size, trade size and volatility of the currencies being traded. What is a Pip? For most currency pairs, a pip is the smallest change that can take place in the rate. It will usually be the fourth number after the decimal. If a currency rate is quoted at 1.1515 and it moves to 1.1516, then the rate has increased by one pip. Some pairs are quoted to five decimal places, in which case the pips are measured in decimals. If the EURUSD pair is quoted at 1.17895 and it moves to 1.17898, then it has increased by 0.3 pips. What is the Spread? The spread is the difference between the buy and sell price. So, if the EURUSD pair is quoted at 1.17485 to 1.17489, the spread is 0.4 pips. In the above example, a trader would buy at 1.17489, which is the offer (or ask) price. If the trader wanted to sell, they would sell at 1.17485, which is the bid price. Need to learn more about Forex trading for free - Click here for our free courses. How do Forex Brokers make money? Brokers either charge commission, or add their fee to the spread. Sometimes they do both. The commission is calculated as a percentage of the value of the trade. The commission is deducted from a trader’s margin account. If a broker makes money on the spread, they will quote a wider spread than the spread available in the interbank market. So, if the EURUSD pair is quoted at 1.17480 – 1.17485 in the interbank market, they might quote the rate at 1.17470 – 1.17495. If a client bought at the broker’s offer price, the broker would buy at the lower price in the interbank market, giving them a 1 pip profit. Why do Forex Brokers need to be regulated? Forex brokers need to be regulated for two reasons: risk and fraud. Most traders use leverage. Most brokers have thousands of clients, and all the positions a broker’s clients hold can add up to significant exposure. If a broker does not manage its own risk properly, it can be wiped out if market volatility increases. This would mean the broker’s client accounts can also be wiped out. It also poses a systemic risk to the market. Regulations force brokers to take adequate measures to ensure they do not put client accounts at risk. Brokers are also regulated to prevent fraud. Client accounts and the broker’s working capital need to be separated. If client money is used to run the business, this amounts to fraud. Regulatory oversight is needed to make sure this does not happen.

Why compile a list of the best forex brokers in South Africa?

To avoid South Africans falling for unscrupulous forex brokers that scam people of their hard-earned cash.

Are the above top forex brokers in South Africa legit?

Most definitely. We only compile a list of regulated forex brokers that have been tried and tested for years. The best forex brokers in South Africa are listed above, try them out. Video Courses Link Ultimate Forex Trading Training Videos - Level 1 https://videos.xyzpocket.com/ Best forex trading videos - Level 2 Advanced https://videos.xyzpocket.com/best-forex-trading-videos-level-2-advanced/ Complete Forex Trading - how to do Forex trading https://videos.xyzpocket.com/complete-forex-trading-how-to-do-forex-trading-1/ Easy Forex Trading for Beginners https://videos.xyzpocket.com/easy-forex-trading-for-beginners-1/ Forex courses online – Trading Forex indices https://videos.xyzpocket.com/forex-courses-online-trading-forex-indices-2020/ Learn Fundamental Analysis - Best Forex Training Online https://videos.xyzpocket.com/learn-fundamental-analysis-best-forex-training-online-2020/ Winning Forex trading learning with Live Trading Examples https://videos.xyzpocket.com/winning-forex-trading-learning-with-live-trading-examples-2020/ Written Courses Link 50 Pips A Day https://www.xyzpocket.com/forex-trading-training-50-pips-a-day/ Forex Academy - The Ultimate Price Action https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/ Forex Masters Course 2020 - Follow Price Action Trends https://www.xyzpocket.com/forex-masters-course-2020-follow-price-action/ Forex Trading School - Best Day Trading Forex https://www.xyzpocket.com/forex-trading-school-best-day-trading-forex-2020/ Free Forex Training - The Ultimate Basics https://www.xyzpocket.com/free-forex-training-the-ultimate-basics-2020/ Master in forex trading - 15 minutes a day https://www.xyzpocket.com/master-in-forex-trading-15-minutes-a-day/ Read the full article

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Best US forex brokers - Accepting US traders 2020

Best US Forex Brokers - Accepting US Traders

In the US, we do not have a wide variety of the best US forex brokers. The foreign exchange market is more active than any other financial market in the world, with over $5 trillion swapping hands every day. It will sound strange that forex brokers accepting US traders are just a handful. Best US forex brokers are rare indeed. This guide is focused on assisting US traders in finding the best US forex brokers that accept US traders. However, forex traders are strongly advised to stick to brokers regulated by a high authority regulator. A list of forex brokers accepting us traders if made up of trusted US brokers. Best US forex brokers; free below. There are many countries with such regulatory bodies and the top forex trading brokers are regulated with one or more of these. Regulation is the first consideration traders should take into account before choosing a broker. There are important aspects to consider before choosing the best US forex brokers that accept US clients.

Best US Forex Brokers

1. PaxForex 2. FxChoice 3. AAFxTrading 4. EagleFX The above Forex brokers accepting US traders have been in the forex trading business for a long time; they are there reputable. Trading forex (currencies) in the United States (US) is popular among fx traders. Before any fx broker can accept US forex traders as clients, they must become registered as Retail Foreign Exchange Dealer (RFED) by the financial regulatory body, the Commodity Futures Trading Commission (CFTC) and also regulated by the National Futures Association (NFA) as a Futures Commission Merchant (FCM). The best US forex brokers (forex brokers accepting us traders) are highly regulated as opposed to other brokers out there. Many brokers appear very similar at first, but there are subtle differences, which make each broker uniquely suitable for a different type of trader. The best US forex brokers list (forex brokers accepting US traders) is very vital. All of the following brokers are regulated and all of them offer demo accounts. These are the first prerequisites in narrowing the list down to the broker that is best for you. Risk Warning: Trading Forex and CFD is Risky; Your Capital is at Risk. Always remember that Forex trading is a risky business and you might win money or even lose all your money. Forex brokers accepting US traders should adhere to the risk management principles and disclose their risk percentages on the website.

Brokers Accepting US traders

1. PaxForex Number 1 on the list of Forex brokers accepting US traders is Paxful. PaxForex was founded by a team of professional traders with the help of investors. The owners of the company have extensive experience in Forex, stocks, options, and CFDs markets as traders and dealers. PaxForex is one of the Forex brokers accepting US traders. They are obviously one of the best US forex brokers. They have gained experience by working in managerial positions with the largest brokers, who are now their major competitors. Even though they are not a company of a big size, they are big enough to always meet their customers’ demands on time and small enough to provide unique products and services in the industry. If you are looking for brokers accepting US traders, look no further. As traders, they know by experience exactly what their clients deserve. Providing services and trading in the financial markets is all they do. PaxForex's knowledge and experience have provided them with the opportunity to create for you the fairest, most flexible, and most stable environment for trading. They truly are one of the best US forex brokers! Here are the features of PaxForex at a glance:  Forex brokers accepting US traders - Broker regulation PaxForex is a trading name of Laino Group Limited Which is Registered by (FSA) Financial Services Authority in St.Vincent & the Grenadines. Registration Number 21973 IBC 2014 1825, Suite 305, Griffith Corporate Centre, Kingstown, Saint Vincent, and the Grenadines. Best US forex brokers should be regulated.  Forex brokers accepting US traders - Trading Platforms Metatrader 4 (MT4 ) MT4 MultiTerminal Mobile trading Best US forex brokers should have a diverse platform choice.  Forex brokers accepting US traders - Trading Instruments Currency Pairs (Forex trading) Stocks Spot Metals Cryptocurrency CFDs Best US forex brokers should have multiple instruments.  Forex brokers accepting US traders - Trading Tools Economic Calendar Educational Guides Educational Videos Forex Calculator Forex Glossary Best US forex brokers should have useful trading tools to assist you while trading.  Forex brokers accepting US traders - Social Trading Copy-trading (Copy trading involves copying trades of the best performing Forex traders without knowing how to trade and even doing any research – Let the experts do all the work for you). PaxForex does not have its own Social Trading platform.  Forex brokers accepting US traders - Market Analysis Market Outlook Forex News Market Analysis Videos Market Analysis Team  Forex brokers accepting US traders - Trading Accounts Account type Cent Mini Standard VIP Min. Spread 2.4 1.4 0.4 0.4 Personal education: - - + + Recommended deposit: $100 $500 $5 000 $50 000 Minimum deposit: $10 $100 $2 000 $10 000 Account currency USD USD, EUR, GBP USD, EUR, GBP USD, EUR, GBP Max. leverage: 1:500 1:500 1:500 1:500 Min. volume lot: 0.0001 0.01 0.1 0.01 Lot size 1 000 100 000 100 000 100 000 Gold and silver: + + + + Shares - - + + Max. lot size: ∞ ∞ ∞ ∞ Margin call 55% 10% 10% 10% Stop out: 20% 5% 5% 5% VPS by Request $25/mon $25/mon $25/mon free Priority execution - - - + Personal manager: - - + + Swap free: - +* +* +* *Upon the client's request (for Muslims only)

Forex mini account

Forex Account designed for new forex traders. Allowing to trade Forex without exposing clients to high risk. The minimum deposit is 100 USD. Has competitive Forex spreads.

Standard Forex Account

Forex Account funded at 2000 USD and up to 9 999 USD and is appropriate for experienced as well as professional Forex traders with a distinctive knowledge of the Forex. Has lowest forex spreads, allowing to trade Forex, Gold, Silver.

VIP Forex Account

Forex Account funded at 10 000 USD and more. It is designed for experienced and professional Forex traders who are ready to trade significant volumes. Has lowest Forex spreads, allowing trading Forex, Gold, Silver, plus direct access to their own personal Account Manager, through phone, chat, or email.

Cent Forex Account

Designed for newcomers who want to get the experience of real money trading with the lowest risks. Cent forex account is a perfect way to adjust your own trading strategy or expert advisor testing with the broker trading conditions.

Islamic Forex Account

PaxForex introduces special accounts - Islamic swap-free accounts. Rather than swap, a settled financing charge (commission) is applicable to the account and it bases on the asset traded and the amount of lots only, not on the interest rate. This account was initiated specifically for clients of Muslim beliefs who cannot earn or pay any interest due to Sharia law. The above trading accounts are worthy of becoming one of the best US forex brokers. Deposit Methods by one of the best US forex brokers Bank Transfer Visa Mastercard Maestro Skrill Neteller Bitcoin Ethereum PerfectMoney WebMoney Qiwi FasaPay Click here to go to PaxForex

2. FxChoice

Among the list of the best US forex brokers, we have FxChoice. FxChoice has been in the Forex business since August 2010. Their founders and managers have decades of experience in the field. All clients’ funds are held in segregated accounts, absolutely separate from their corporate accounts. This, as well as the strict regulations they follow, ensures the security of your funds. FxChoice is one of the forex brokers accepting US traders. FxChoice places a special focus on making sure their clients’ funds are as safe as possible. Their mission is to provide clients with a super safe and reliable trading environment while they can focus on making trading profits. The best US forex brokers should have an excellent trading environment. FxChoice's internal risk management department thoroughly monitors every type of operation executed by the management. This ensures compliance with obligations demanded by both regulators and policy. They truly are one of the best US forex brokers. FxChoice allows clients to use any EAs, in fact, they have a special environment for EA trading. Need to buy an Expert Advisor or Forex trading Robot? Click here. Forex brokers accepting US traders such as FxChoice should let users install Expert Advisors (EAs), for automated trading experience. Here are the features of FxChoice at a glance:  Forex brokers accepting US traders - Broker regulation FX Choice Limited is authorized and regulated by the IFSC (Licence number: IFSC/60/191/TS/19) FX Choice Limited registration number: 105,968 Best US forex brokers should be regulated.  Forex brokers accepting US traders - Trading Platforms Metatrader 4 Metatrader 5 Web Terminal Metatrader Mobile trading Best US forex brokers should have a diverse platform choice.  Forex brokers accepting US traders - Trading Instruments Forex CFDs Crypto CFDs Index CFDs Commodity CFDs Best US forex brokers should have multiple instruments.  Forex brokers accepting US traders - Trading Tools MQL5 signals Myfxbook autotrade Expert Advisors VPS Pips+ for Pro Accounts Best US forex brokers should have useful trading tools to assist you while trading.  Forex brokers accepting US traders - Social Trading What is AutoTrade or Social Trading? Put simply, it is a mirroring service by the trading community portal Myfxbook that allows you to mimic the trades of other, more established traders. All you need to do to start using AutoTrade is to link your funded live account with your Myfxbook profile. Once you have done so, simply subscribe to your favorite traders. When they make a trade, it will be automatically replicated on your account.  Forex brokers accepting US traders - Market Analysis Financial Instruments information Economic calendar Market Analysis information Earnings releases  Forex brokers accepting US traders - Trading Accounts Classic Account Pro Account Minimum deposit $100 $100 Tight spreads starting from 0.5 pips 0 pips Minimum lot size 0.01 lots (1 000 units of base currency) 0.01 lots (1 000 units of base currency) Maximum lot size FX market – 1000 lots Cryptocurrencies – 5 lots FX market – 1000 lots Cryptocurrencies – 5 lots Commissions none $3.5 per notional amount of $100 000 * Swap points according to market according to market Maximum leverage 1:200 1:200 Margin level for hedge/lock positions 50% 50% Execution NDD, Market NDD, Market Margin call/ Stop out 25/15 100/80 Tradable currency pairs 38 38 Spot metals Gold, Silver Gold, Silver Other instruments CFD – Indices, Metals, Commodities, Energies, Cryptocurrencies CFD – Indices, Metals, Commodities, Energies, Cryptocurrencies Any EAs permitted ✓ ✓ Deposit Methods from one of the best US forex brokers Bank Transfer Visa Mastercard Bitcoin Bitcoin cash Skrill Neteller Litecoin Ethereum Ripple Tether FasaPay Perfectmoney Paysafe card Astropay Poli Vload Airtm SticPay AdvCash Click here to go to FxChoice.

3. AAFXtrading

Among the best US forex brokers; meet AAFXtrading. The company offers Foreign Exchange and CFD trading on multiple trading platforms, including the globally popular Metatrader 4 platform. AAFXTrading.com is a market leader when it comes to customer service, offering its clients top-notch products and services in over 20 different languages. AAFXtrading is one of the best forex brokers accepting us traders. The company’s focus on superior service has been frequently recognized by the industry. AAFXTrading.com was the recipient of the Malaysian investor show winning the best broker of Asia 2013. AAFXTrading.com is a fully licensed and regulated company.  Forex brokers accepting US traders - Broker regulation AAFXTRADING COMPANY LTD is Incorporated in Saint Vincent and the Grenadines with registration number 22916 IBC. AAFXTrading.com is incorporated in Malaysia and registered under the company of AA business solutions SDN BHD. AAfxtrading.com is operated by AAFX trading Capital in Hongkong and The Company’s legal and correspondence address Two Exchange Square 8 Connaught Place Central, Hong Kong. Best US forex brokers should be regulated.  Forex brokers accepting US traders - Trading Platforms Metatrader 4 (MT4) Metatrader 5 (MT5) MT4 WebTrader Mobile Trading apps Best US forex brokers should have a diverse platform choice.  Forex brokers accepting US traders - Trading Instruments Currency Pairs (Forex trading) CFD on Shares Cryptocurrency CFDs Spot Metals Energy Indices Best US forex brokers should have multiple instruments.  Forex brokers accepting US traders - Trading Tools Economic calendar VPS Hosting Forex Calculator Best US forex brokers should have useful trading tools to assist you while trading.  Forex brokers accepting US traders - Social Trading No Copytrade feature. But still, it is one of the forex brokers accepting us traders.  Forex brokers accepting US traders - Market Analysis Market Analysis information Economic news  Forex brokers accepting US traders - Trading Accounts FIXED ACCOUNT ECN ACCOUNT VIP ACCOUNT Platforms MT4 / MT5 Platforms MT4 / MT5 Platforms MT4 / MT5 Base Currency USD,GBP,EUR Base Currency USD,GBP,EUR Base Currency USD,GBP,EUR Contract Size 1 lot = 100,000 Contract Size 1 lot = 100,000 Contract Size 1 lot = 100,000 Leverage 1:10 to 1:2000 ( 50$ – 20000$) 1:10 to 1:1000 (20000$ +) Leverage 1:10 to 1:2000 ( 50$ – 20000$) 1:10 to 1:1000 (20000$ +) Leverage 1:10 to 1:2000 ( 50$ – 20000$) 1:10 to 1:1000 (20000$ +) Spread on all majors As low as 2 Pip Spread on all majors As low as 0.6* Pip Spread on all majors As low as 0.4* Pip Spread Condition Fixed Spread Condition Variable Plus Spread Condition Raw Spreads Commission

Commission

Maximum Open/Pending order no limit Maximum Open/Pending order no limit Maximum Open/Pending order no limit Lot restriction per ticker/Order 1000 lots Lot restriction per ticker/Order 1000 lots Lot restriction per ticker/Order 1000 lots EA Allowed

EA Allowed

Swap Free

Minimum Deposit $100 Minimum Deposit $100 Minimum Deposit $20000 Deposit Methods from one of the best US forex brokers Bank Transfer Visa Mastercard Skrill Neteller Western Union WebMoney PerfectMoney Payza MoneyGram FasaPay Forex brokers accepting US traders should indeed have a wide variety of deposit methods for your convenience.

Open an Account (MT4 Fans) Open an Account (MT5 Fans)

4. EagleFX

Sign up with EagleFX to join thousands of traders currently benefiting from high leveraged full STP/ECN CFD trading with zero conflict of interest through tier one liquidity. EagleFx is one of the best US forex brokers. EagleFx is one of the forex brokers accepting US traders.  Forex brokers accepting US traders - Broker regulation Not regulated. Best US forex brokers should be regulated.  Forex brokers accepting US traders - Trading Platforms Metatrader 4 (MT4) for Windows, Mac, Android and iOS. WebTrader Best US forex brokers should have a diverse platform choice.  Forex brokers accepting US traders - Trading Instruments Forex Metals Indices Commodities Best US forex brokers should have multiple instruments.  Forex brokers accepting US traders - Trading Tools Economic News Best US forex brokers should have useful trading tools to assist you while trading.  Forex brokers accepting US traders - Social Trading None. It does not have its own copy-trading feature.  Forex brokers accepting US traders - Market Analysis News feed Industries resources  Forex brokers accepting US traders - Trading Accounts There is only one main account type available to EagleFX clients, so do not expect to find any tiered deposit requirements or fluctuations in rates or perks. Corporate and Islamic accounts are available for those who need them. As for spreads, this broker offers some of the lowest that we’ve seen to date. On the popular EUR/USD pair, a spread of 0.1 pips is not uncommon. Spreads within the platform are floating, but the overall average is a low 0.3 pips, which is much better than average. Deposit Methods from one of the best US forex brokers Bank Transfer Visa Mastercard Bitcoin

Open an Account with EagleFx

Why don’t many brokers accept US traders?

It has all started with the Great Financial Crisis (GFC). Those of you who have watched the documentary Inside Job or the movie Big Short already got an idea of what I am going to say about strict rules in the US about leveraged investment. Brokers with a passion for big profit have created exotic investment products that promise very high returns for the clients. The clients are not aware of the risk that they are taking by buying those derivative products due to their complexity. After the big US banks went bust at the height of the financial crisis in 2008 – 2009, watchdogs like CFTC, SEC, and NFA decided to tighten the screws in the financial sector as a solution to the moral hazard problem. Leveraged products got its lion share on these new stricter financial rules and forex was one of those scapegoats. Thanks to those stricter rules, the leverage is lower compared to other jurisdictions, and the required capital to operate in the USD is much higher compared to its peers. Thus profit prospects are not that attractive and we don’t see a lot of forex brokers based in the USD. This is one of the reasons why there are fewer Forex brokers accepting US traders.

Factors In Choosing the best US Forex Broker - Forex brokers accepting US traders

Forex Broker FAQ - forex brokers accepting US traders

Why compile a list of the best US forex brokers?

To avoid US citizens falling for unscrupulous forex brokers that scam people of their hard-earned cash.

Are the above top forex brokers in the US legit?

Most definitely. We only compile a list of regulated forex brokers that have been tried and tested for years. The best US forex brokers are listed above, try them out. Video Courses Link Ultimate Forex Trading Training Videos - Level 1 https://videos.xyzpocket.com/ Best forex trading videos - Level 2 Advanced https://videos.xyzpocket.com/best-forex-trading-videos-level-2-advanced/ Complete Forex Trading - how to do Forex trading https://videos.xyzpocket.com/complete-forex-trading-how-to-do-forex-trading-1/ Easy Forex Trading for Beginners https://videos.xyzpocket.com/easy-forex-trading-for-beginners-1/ Forex courses online – Trading Forex indices https://videos.xyzpocket.com/forex-courses-online-trading-forex-indices-2020/ Learn Fundamental Analysis - Best Forex Training Online https://videos.xyzpocket.com/learn-fundamental-analysis-best-forex-training-online-2020/ Winning Forex trading learning with Live Trading Examples https://videos.xyzpocket.com/winning-forex-trading-learning-with-live-trading-examples-2020/ Written Courses Link 50 Pips A Day https://www.xyzpocket.com/forex-trading-training-50-pips-a-day/ Forex Academy - The Ultimate Price Action https://www.xyzpocket.com/forex-academy-the-ultimate-price-action-2020/ Forex Masters Course 2020 - Follow Price Action Trends https://www.xyzpocket.com/forex-masters-course-2020-follow-price-action/ Forex Trading School - Best Day Trading Forex https://www.xyzpocket.com/forex-trading-school-best-day-trading-forex-2020/ Free Forex Training - The Ultimate Basics https://www.xyzpocket.com/free-forex-training-the-ultimate-basics-2020/ Master in forex trading - 15 minutes a day https://www.xyzpocket.com/master-in-forex-trading-15-minutes-a-day/ Read the full article

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