Fx generals

THEME: DISCIPLINES OF A TRADER (A learners MANUAL)

BY: DON POPE Contact: [email protected] Tel: 08078811235

GETTING STARTED
BEFORE U GET STARTED YOU ARE REQUIRED TO HAVE THE FOLLOWING TOOLS: 1. A COMPUTER OF UR OWN 2. AN INTERNET( I RECOMMEND A SOUND ONE ) 3. VARIOUS TOOLS(ILL EXPLAIN LATER)

WHAT IS FOREX ?
THE Acronym FOREX is Foreign Exchange. This is a simulation of currency exchange for another.

INTRODUCTION:
I hope you have purchase this course because you are serious about starting a career in trading or want to hone the skills that you already have. I intend to keep things basic and to the point. You probably already know about FOREX market. I dont want to take up space here explaining what the forex market is and its history. Odds are that you have already bought material that explains that. If you are beginning you can find basic FOREX information on the internet of buy my lastest ebook online GET RICH OR DIE TRYIN ! FOR $ 4 EACH. I offer you a clear, concise, simple trading method that can be

Grasped in one afternoon. Many times you have heard to Keep it simple. This is what Ive done. Its really all you need to know to successfully trade the forex market.
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If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies. In the past, foreign exchange trading was mostly limited to large banks and institutional traders however; recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade. The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. About 85 percent of all daily transactions involve trading of the major currencies. Four major currency pairs are usually used for investment purposes. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. As a note you should know that no dividends are paid on currencies. If you think one currency will appreciate against another, you may exchange that second currency for the first one and be able to stay in it. In case everything goes as you plan it, eventually you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it. Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. FOREX is a necessary part of the world wide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts. Therefore, it is reasonable for you to believe that the FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. Clients may place take-profit and stop-loss orders with brokers for overnight execution. Price movements on the FOREX market are very smooth and without the gaps that you face almost every morning on the stock market. The daily turnover on the FOREX market is somewhere around $1.2 trillion, so a new

investor can enter and exit positions without any problems. The fact is that the FOREX market never stops, even on September 11, 2001 you could still get your hands on two-side quotes on currencies. The currency market is the largest and oldest financial market in the world. It is also called the foreign exchange market, FX market for short. It is the biggest and most liquid market in the world, and it is traded mostly through the 24 hour-a-day inter-bank currency market. When you compare them, you will see that the currency futures market is only one per cent as big. Unlike the futures and stock markets, trading currencies is not centered on an exchange. Trading moves from major banking centers of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S. it is truly a full circle trading game. --------------------------------------------------------------In the past, the forex inter-bank market was not available to small speculators because of the large minimum transaction sizes and strict financial requirements. ------------------------------------------------------------------Banks, major currency dealers and sometimes even very large speculator were the principal dealers. Only they were able to take advantage of the currency market's fantastic liquidity and strong trending nature of many of the world's primary currency exchange rates. Today, foreign exchange market brokers are able to break down the larger sized inter-bank units, and offer small traders like you and me the opportunity to buy or sell any number of these smaller units. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market. As you can see, the foreign exchange market has come a long way. Being successful at it can be intimidating and difficult when you are new to the game. Let this be your comprehensive guide to being successful in the forex market.
Chapter Summary: Forex investing was normally reserved solely for banks and the very wealthy due to the large minimum

transaction requirements. Recent advancements in technology have made it possible for anyone to trade forex. Forex is the largest and oldest market in the world, with an average daily turnover of approximately $1.2 trillion The Forex market is active 24 hours a day ------------------------------------------------------------------------------

Need a Trading System That Actually Generates Consistent Profits?

PURPOSE
The foreign exchange market is the mechanism by which currencies are valued relative to one another, and exchanged. An individual or institution buys one currency and sells another in a simultaneous transaction. Currency trading always occurs in pairs where one currency is sold for another and is represented in the following notation: EUR/USD, CHF/YEN. The exchange rate is determined through the interaction of the market forces dealing with supply and demand. Traders generate profits, or losses, by speculating whether a currency will rise or fall in value in comparison to another currency. A trader would buy the currency which is anticipated to gain in value against another currency. The value of a currency, in the simplest explanation, is a reflection of the condition of thats countrys economy with respect to other major economics. The forex market does not rely on any one particular economy. Whether or not an economy is flourishing or falling into recession, a trader can earn money by either buying or selling the currency. Relative trading, is the buying or selling of the currencies in response to economic or political events, while speculative trading is based on a trader anticipating events.

BACKGROUND
Historically, Forex has been dominated by inter-world investment and commercial banks, money brokers, large corporations, and very few private traders. Lately this trend has changed. With the advances in internet tech., plus the industrys unique leveraging options, more and more individual traders are getting involved in the market for the purposes of speculation. While other reasons for participating in the market include facilitating commercial transactions (whether it is an international corporation converting its profits, or hedging against future price drops), speculation for profit has become the most popular motive for forex trading for both big and small participants.

OPERATIONS
THE 8 MAJOR CURRENCIES: Whereas there are thousands of securities on the stock market, on the FOREX market , most trading takes place in only a few currencies; the US DOLLARS ($), EUROPEAN CURRENCY UNIT (C), JAPANESE YEN (), BRITISH POUNDS (), SWISS FRANC(Sf) , CANADIAN DOLLAR(Can $) , and to a lesser extent, THE AUSTRALIAN AND THE NEW ZEALAND DOLLARS. These major currencies are the most

often traded because they represent the countries with esteemed central banks, stable governments, and relatively low inflation rates. Currencies are also always traded in pairs (i.e, USD/JPY or Dollar/Yen) on a floating exchange rate.

MARKET TIMES

The foreign exchange market operates 24 hours a day and has no official openings and closings like the stock market. It moves in response to geopolitical events or press release from key central bank officials or reports on the economy from government statistical bureaus, among other factors. The daily session ends at 5 P.M EST (11 pm Nigerian time), but the market does not actually close. The Forex market only closes on Friday at 4 P.M (10 pm Nigerian time) for the weekend, and re-opens at 5 P.M on Sunday. Each day, trading begins in Sydney, Australia, and progresses to the next major financial center (Tokyo, London, New York), as the business hours of that citys time zone begin. BUSINESS HOURS:- Trading volumes are always higher for a region during their business hours as traders at financial institutions are busy filling and placing orders. The most active times, meaning the times of most liquidity and movement in the markets, is the London open (3 AM EST) (9 am in Nigeria), and the overlap between London/Euro close and New Yorks open (8-11 AM EST) (2-5 pm in Nigeria). The hours below correspond to someone living in Nigeria (GMT +1 time zone) Region------New York Sydney Toyko Frankfurt London Open------1:00 pm 10:00 pm 12:00 am 7:00 am 8:00 am End-------10:00 pm 7:00 am 9:00 am 4:00 pm 5:00 pm

ASPECTS OF TRADING
Most trades on the forex market are a result of traders speculating price movements of certain currencies. Although, good instincts and speculation skills are invaluable to any trader, there are also other, more scientific factors that traders use to tell whether they will buy or sell a certain currency. These factors are very important aspects of trading on the market and are know a s FUNDAMENTAL and TECHNICAL ANALYSIS before making any forex trades.

TERMINOLOGIES
PIP: This is the smallest increment in a currency, Currency is traded in pairs like EUR = base currency USD = quote currency BASE CURRENCY: Its usually in units QUOTE CURRENCY: Is listing the amount of quote currency that can be used to buy a unit of base currency. For example, USD - base currency B

CAD

- quote currency C

TREND: The movement of market prices. TYPES OF TRENDS:Up trend

Down trend

Sideways trend

_________________________________________________________________ CHARTS: This the a pictorial view of the market. This is the market and its movements. TYPES OF MARKETS:Japanese Candle sticks chart Bar charts Line charts LOT/SIZE/VOLUME: This is the margin given to you by the broker based on the amount deposited. MARGIN: Is the amount required in a client account in order to open a position in the market. SPREAD: is the difference between the BUY (BID) and SELL (ASK). If an investor buys a currency and immediately sells and thus there is no change in the rate of exchange. He/She will lose money. Example of spread: If the price is EUR USD Quoted at 1.2015 into 1.2017, the spread is 2 pips.

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EUR - 2 PIPS USD - 3 PIPS CALCULATION OF PROFIT/LOSS Number of pips * lot= profit For instance, 10 pips * lot 1= 10 * $10=$ 100 In spread, USD/JPY quoted as 107.52/107.55 as bid and ask, Spread is 3 pips * lot 1 S=3 * 10= $ 30 PROFIT TAKING: is the price at which the trade is automatically closed and the targeted profit is taken for you. STOP LOSS: is the price you dont want your lost to go beyond before the trade in automatically closed. LAMBISH: Is the state of massive buying and selling throughout. BEARISH: when the market is selling throughout. Note: you buy when the market price is going up and sell when is coming down. BULLISH: when the market is full of buying. MARKET BROKER: The counterpart to the client. He performs the hedging of his client position according to their policy. SWAP: Overnight/carryover trade

TECHNICAL ANALYSIS
This is a method of predicting movement of the market price or trend stating what has occurred in the past. Using charts, there are so many technical indicators to use to analyze the market, but will be detailed soon.

Just like their counterparts in the equity markets, technical analysts of the FOREX trading market analyze price trends. The only real difference between technical analysis in FOREX and technical analysis in equities is the time frame that is involved in that FOREX markets are open 24 hours a day. Because of this, some forms of technical analysis that factor in time have to be modified so that they can work with the 24 hour FOREX market. Some of the most common forms of technical analysis used in FOREX are:

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 The Elliott Waves Fibonacci studies Parabolic SAR Pivot points A lot of technical analysts have a tendency to combine technical studies to make more accurate predictions on your behalf. (The most common method for them is Combining the Fibonacci studies with Elliott Waves.) Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions. Using a profitable trading system with a demo account for a few weeks is a great way to get an accurate feel for Forex Trading without risking any of your own money!
IMPORTANCE: Traders have a second tool to use in trading. Technical analysis, which has become extremely popular since its inception two decades ago, consists of using charts, trends lines, support and resistance levels, technical indicators and identifying patterns to study the markets behavior. Traders use these technical factors to identify buying and selling opportunities. Over long historical periods, currency behavior has produced trends and patterns that are identifiable. POWERFUL INDICATORS: PARABOLIC SAR:

he Parabolic SAR strategy, which is also known as the Parabolic Stop and Reverse

strategy, is a technique that is used for trending markets and is based on the fact of holding a position in the market. Because it is a reversal system, the Parabolic SAR allows a Forex investor to chart an upward or downward trend of a currency until it peaks, then project the opposite movement using the points from the original trend. Referred to as parabolic because it has a curved shape like a parabola, the Parabolic SAR is typically used to locate stop points and to determine when to reverse a position. It is generally accepted that with this strategy one should establish the trend and then use the technique to determine the key locations for buying or selling.

A brief explanation
A basic explanation of the Parabolic SAR is as follows. 1. If the trend is rising: When the currency is trending upward, buy when the SAR passes the stop level below the current price. This number will move every day until it is activated, or falls to the stop level.

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2. If the trend is down: For a currency that is trending downward, sell it when the SAR moves above the stop level above the current price. This number will move every day until it is activated, or rises to the stop level.

As you may be able to surmise from the chart, the nice thing about the Parabolic SAR is its just really simple to use. Basically, when the dots are below the candles, it is a buy signal; and when the dots are above the candles, it is a sell signal. The indicator assumes that the price is either going up or down, so its probably the easiest indicator to interpret. With that said, this tool is best used in trending markets, with long rallies and downturns. You should NEVER use this tool in a choppy market where the price movement is sideways.

How to interpret a Parabolic SAR

The original entry point on the buy side is noted when the current high price has been passed; it is at that time when the SAR will switch to under the most recent low price, indicating a reversal. When the price rises, the tracking dots on a chart will rise as well first lagging behind and then speeding up as they follow the trend. This phenomenon is known as the acceleration factor. The SAR level will move faster as the trend develops and the dots will quickly catch up to the price action. In the event of an upward trend, the dots will be below the price of the currency. As time passes, the distance between the price and the SAR level will decrease until the market pulls back and touches the SAR level. Once this occurs, the SAR level will rise above the price, indicating the change in direction that is occurring.

Best use of the Parabolic SAR

The Parabolic SAR is best used with an additional filter, such as a MACD (Moving Average Convergence / Divergence, one of the simplest and most reliable indicators available). Because the strategy is intended for following currencies that are trending, in a horizontal or extremely volatile market (one having whipsaws) the presence of a filter can help keep the strategy more effective. If holding a long position then only long signals would be followed and the

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short signals would be ignored, providing that the filter remains in a buy signal. If a short signal is triggered but the filter stays in buy, it is wise to close the position and wait for the next long signal. The reverse of this is true if you are holding a short position. Another good use of the Parabolic SAR is for setting a stop loss. This is a crucial part of an investment strategy but it can be difficult to find the right location for it. With the SAR indicator it is possible to determine the right place for a stop. Because it is accelerating every day, the SAR indicator can help to locate the closest possible point for a stop loss. Because of the cyclic nature of the strategy, it allows for market corrections without taking an investor out of a position. Since there is always a certain level of volatility, this strategy helps to differentiate between changes in the trend and simple corrections in the market.

Conclusion The Parabolic SAR is an excellent strategy for currencies in a trend. As these trends occur, the SAR indicator can show an investor where the changes in direction lay and to identify the correct entry and exit points. For someone with a long position, the Parabolic SAR is a very good strategy for daily review of the position and reassessing stop loss points. FORMULATION: From insert ---- indicators ------trends ----- parabolic sar Note: when the current dots is at the top of the chart, the market wants you to sell, and below the chart, wants you to buy.
BOLLINGER BANDS: These are used to measure a markets volatility. Basically, this little tool tells us whether the market is quiet or whether the market is loud! When the market is quiet, the bands contract; and when the market is loud, the bands expand. Thats all there is to it. If you really want to know the calculation of the Bollinger bands then go to www.bollingerbands.com.

BOLLINGER BANDS

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Use: high price expands Low price contracts STOCHASTICS: This is another indicator that helps us determine where a trend might be ending. By definition, stochastics is an oscillator that measures overbought conditions in the market. The 2 lines are similar to he MACD lines in the sense that one lines is faster than the other.

HOW TO APPLY: like I said earlier, it tells us when the market is overbought or oversold. Its scaled from 0 to 100. when the stochastics lines are above 70 (the red dotted line) then it means the market is overbought. When the lines are below 30 ( blue dotted line), then it means that its oversold. As

a rule of thumb, we buy when the market is oversold, and sell when is overbought
RELATIVE STRENGTH INDEX: This is similar to stochastics in that it defines overbought and oversold conditions in the market. It is also scaled from 0 to 100. typically, readings below 20 indicate oversold while readings over 80 indicate overbought. RSI is a very popular tool because it can also be used to confirm trend formations. If you think a trend is forming, take a quick look at the RSI and look at whether it is above or below 50. If you are looking at a possible uptrend, then make sure the RSI is above 50. And opposite for downtrend.

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RSI

MOVING AVERAGE: This indicator is reliable when we have a trending marketing and it indicates when to buy or sell. Moving averages lines are configured in the following arrangements: (3,13,39); (5,10,15); (50,150,200) for long time.

Formulation: from insert ----- indicators ---------trend ----- moving average. Interpretation: for the common (3,13,39) system, when period line 3 of the moving average crosses line 13 period line of the moving average upward that means a buy. And when line 3 crosses line 13 downwards, it means sell. MOMENTUM: This indicator is reliable when we have a non trending market. It indicates when the market is overbought or oversold and possibility for the price to retrace back. Formulation: insert indicators oscillators momentum Interpretation: When the trend of momentum touches the lower line, is over sold, you need to buy and vice versa. It defines when the price is moving up or down. When the momentum is above zero, the price is moving up and vice versa.

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ULTRA TREND: This is a custom indicator created recently so you have to add it to your platforms folder before usage. Concentrate on the blue line at the bottom of the chart. Use: whenever the blue line crosses up the red line, it means buy, and when the blue line crosses down the red line, it means sell. Note: best on a 30 min. chart upwards.

FUNDAMENTAL ANALYSIS
This is a method of forecasting future price movement of a financial instrument base on economic, political, environment and other relevant methods as well as datas that affect supply and demand. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategies. This fundamental analysis studies the cause of market movement. BASIC ECONOMIC LAWS

1. When ever the base currency appreciates, the market will indicate buy or the
market will buy and when ever the base currency depreciates, the market will sell. 2. When ever the quote currency appreciates, the market will sell, and the quote currency depreciates, the market will buy. IMPORTANCE OF FUNDAMENTAL ANALYSIS These factors include economic and political events (i.e. elections, wars) that occur worldwide. Fundamental include monetary and fiscal policy, government reports such as GPI, CPI, PPI, and measures such as the unemployment rate. A trader that bases his or her market decisions in response to these release and events is using fundamental analysis. The value of a currency in the forex market is essentially an indication of the state of one nations economy in comparison to another nations. A nations political condition, along with its inflation and interest rates, impact the price of the nations currency. Traders that use fundamental analysis can speculate on currency price movements by paying attention to the world news, economic reports, and indicators issued by the government. By interpreting that data, traders can make better decisions on the market. It is important to note that it is the outlook of an event that impacts the forex market, rather than the actual event itself. If the report or news matches expectations it should have already been priced in to the present market price. If a report or news item is unexpected, or is different from the anticipated results, then there will be a reaction by the currency markets to price in this new information. We explore fundamental analysis sooner. ECONOMIC INDICATOR

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They are so many economical indicator, but I will mention the important ones: 1. Industrial production 2. Non farm productivity 3. Interest rate statement 4. Inflation report 5. Unemployment rate 6. Employment change 7. Trade balance 8. CPI/PPI 9. ISM non manufacturing QUICK REVIEW: - recommend you trade always against the USD - 95 % of trading are USD - 85 % in major currencies - They are 4 major currency pairs, and I recommend you fall in love with a pair which are: EUR/USD; USD/JPY; GBP/USD; USD/CHF - Always have a record of your past trades with your loved pair - Always record your thoughts, ideas, working space, where you went wrong. You would do differently next time. - Be different and no matter how you feel, be confident. trade wisely with knowledge, not emotions DATA PRESENTATION OF A TRADING SYSTEM TIMEFRAME See diagram in the next page

TRADING ON NEWS RELEASE Certain organization, like the Federal Reserve Bank, central bank of a currency announces report such as non-farm payroll, GDP, Core CPI and so forth. The first thing

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to do is to get familiar with the economic calendar for the week on the internet. My favorite website is www.forexfactory.com , but you can choose other like dailyfx.com or fx360.com any that suite you. The next step is to trade the news at the time stipulated for various economic indicators. For example, it is stated that there will be a new release for non-farm payroll at 8:30 AM, all news traders are expected to sit by there workstation (computers) some minutes before the time, so as to enjoy the ride whether UP or DOWN while it last. The divergence between the forecasted number and the actual number released. Thus with this strategy a great leader, I among them have created strategy to take advantage of the discrepancy between he consensus and the actual economic indicators. HOW TO TRADE NEWS Firstly, go to www.forexfactory.com to see which news is available for trade. In the diagram above, we have date, time, currency, news/events, color impact, actual, forecast, previous, and detail. Forexfactory is the site that tells us the direction of a currency. Remember fixed odds, is all about PREDICTING the market. All you need is to do is wait for the news to come out at the stated time. Its advisable to trade only the RED color news. You will know the direction of the currency comparing the actual value and forecast value together. I will discuss this in a moment. The actual value will appear once the news in released.Thereafter, you will need a fast data feed. As soon as you got the actual value, get in before the spike for the key to successful news trading is to get into the trade before the spike begins. Prior to announcement most of the smart money is backing away. The smart guys will try as much as possible to get in early and enjoy the ride while it last. Immediately the actual value appeared, compare it with the forecast value. By doing this, you will know the direction of a currency at that particular time. For you to know the direction of the currency in the market, whether the currency is going up or coming down, you will need to follow these basic rules to have a right PREDICTION. GENERAL RULES IN FOREXFACTORY

when the actual is lower than the forecast, you sell when the actual is greater than the forecast, you buy when you have both values for the actual and forecast , No trade note: mind the (-) negative sign

FOR UNEMPLOYMENT RATE when the actual is lower than forecast, you buy when the actual is greater than forecast, you sell

Remember that information on the RED news you got from the site will determine the kind of currency to trade/bet on at www.betonmarket.com

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The RED means high impact news, ORANGE means medium impact news, YELLOW means low impact news, and WHITE means holidays. You are advise to trade only with the high impact news.

TIME CONVERSION Note: the first thing to put in place is the www.forexfactory.com time server. Set the website time to match your local time in your PC. To convert the forexfactory time to your local time, click on the TIME logo of the site (Time and Date option). Put your DST OFF, set your time zone to GMT +1 which is also equal to Nigerian time. Finally click on SAVE CHANGES.

THE 25 RULES OF FOREX TRADING DISCIPLINES

The Wheel of Success There are three spokes that make up, what I call the .Wheel of Success. as it relates to trading. The first spoke is content. Content consists of all the external and internal market information that traders utilize to make their trading decisions. All traders must purchase value-added content that provides utility in making their trading decisions. The most important type of content is internal market information (IMI). IMI simply is time and price information as disseminated by the exchanges. After all, we all make our trading decisions in the present tense based on time and price. In order to .scalp. the markets effectively, we must have the most live and up-to-date time and price information seamlessly delivered to our PCs through a reliable execution platform and/or charting package. Without instantaneous time and price information, we would be trading in the dark. The second spoke is mechanics. Mechanics is how you access the markets and the methodology that you employ to enter/exit your trades. You must master mechanics before you can enjoy any success as a trader. A simple keystroke error can result in a Once you have mastered order execution, though, it is like riding a bike. The process of entering and exiting trades becomes seamless and mindless. Fast and efficient trade execution, especially if you are trading with a scalping methodology, will enable you to hit a bid or take an offer before your competitors do. Remember, the fastest survive. The third and most important spoke in the Wheel of Success is discipline. You must attain discipline if you ever hope to achieve any level of trading success. Trading discipline is practiced 100 percent of the time, every trade, every day. Review the following 25 Rules of Trading Discipline. You must condition yourself to behave with discipline over and over again. Many of my traders and clients read through the rules every day (believe it or not) before the trading session begins. It doesn.t take more than three minutes to read

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through them. Think of the exercise as praying . reminding you how to conduct yourself throughout the trading session.

1. THE MARKET PAYS YOU TO BE DISCIPLINED 2. BE DISCIPLINED IN EVERY WAY, IN EVERY TRADE, AND THE MARKET WILL REWARD YOU.DONT CLAIM TO BE DISCIPLINED 3. ALWAYS LOWER YOUR TRADE SIZE WHEN TRADING POORLY 4. NEVER TURN A WINNER INTO A LOSER 5. YOUR BIGGEST LOSS CANT EXCEED YOUR BIGGEST WIN 6. DEVELOP AMETHOD AND STICK TO IT. 7. BE YOURSELF 8. YOU ALWAYS WANT TO BE ABLE TO COME AND PLAY THE NEXT DAY 9. EARN THE RIGHT TO TRADE BIGGER. 10. GET OUT YOUR LOSER 11. THE FIRST LOSS IS THE BEST LOSS 12. DONT HOPE AND PRAY, IF YOU DO, YOU WILL LOSE 13. DONT WORRY ABOUT NEWS, IT IS HISTORY 14. DONT SPECULATE, IF YOU DO, YOU WILL LOSE 15. LOVE TO LOSE MONEY 16. IF YOUR TRADE AINT GOING ANYWHERE, IT IS TIME TO EXIT 17. NEVER TAKE A BIG LOSS. ONLY A BIG LOSS CAN HURT YOU. 18. MAKE A LITTLE BIT EVERYDAY 19. HIT SINGLES, NOT HOME RUNS 20. CONSISTENCY BUILDS CONFIDENCE AND CONTROL 21. LEARN TO SWEAT OUT YOUR WINNER 22. MAKE THE SAME TYPE OF TRADE OVER AND OVER- BE A BRICKLAYER 23. DONT OVERANALYZE, DONT HESISTATE. IF YOU DO, YOU WILL LOSE 24. ALL TRADERS ARE CREATED EQUAL IN THE EYES OF THE MARKET 25. ITS THE MARKET ITSELF THAT WIELDS THE ULTIMATE SCALE OF JUSTICE.

CREATING YOUR OWN SYSTEM

If you do a simple search on Google for forex trading systems youll find many who claim to have the Holy Grail system that can be purchased for a few thousand of dollars. Though this system are extremely good that you will never have a loss in trading. But they are things you should know before splash money on systems. The truth is that many of these systems DO in fact work. The problem is traders lack disciplines follow the principles of the systems. The second truth, is instead of paying thousands of dollars for trading system, why dont you take time to create your own free, and use the money for your capital. The third truth is that creating a system is not difficult. What is difficult is following the rules that you set when you do develop your system.

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Your trading system should attempt to accomplish 2 goals: 1. Be able to identify a trend as early as possible 2. Be able to avoid whipsaws (confirm your trend) 6 steps to developing your system: find your timeframe find indicators to help you identify trends early find indicators to help avoid whipsaws and confirm trend define your risk define your entry and exit WRITE your trading system rules down and always stick to it.

3 phases of testing your system Back test= go back and time and move your chart forward one candle at a time. Trade system according to its rules and record you trade and see if its profitable. If its profitable, then you trade your system live on a demo account for at least 2 months. This will help you get an idea of how to trade your system when the market is moving. It is a lot different trading live than manually back testing. Once youve demo traded and you are still profitable, you are ready to go live with your system and always remember to stick to the rules.

BROKERS YOU NEED TO AVOID

Just like there are brokers that you want, there are also brokers that you will want to stay away from. For example brokers who are prone to prematurely buying or selling near preset points (commonly referred to as sniping and hunting) are trifling things that are committed by brokers who only seek to increase profits. Obviously, no broker would actually admit to doing this, but there are ways to know if a broker has committed this offense. Unfortunately, the only way that you can really determine which brokers do this and which brokers don't is to talk to fellow traders. There is no actual list or organization that reports this kind of activity. The point here is that you have to talk to others in person or visit online discussion forums to find out who is an honest broker.

Strict Margin Rules

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When you are trading with borrowed money, your broker should have a say in how much risk you are able to take. With this in mind, your broker can buy or sell at its discretion, which can be a really bad thing for you. Let's just say that you have a margin account, and your position takes a headlong nosedive before it begins to rebound to all-time highs. Even if you have enough cash to cover it, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you dearly. You talk to others in person or visit online discussion forums to find out who the honest brokers are. Signing up for a FOREX account is a great deal like getting an equity account. The only major difference is that, for FOREX accounts, you are obligated to sign a margin agreement. This agreement basically says that you are trading with borrowed money, and, because of this the brokerage firm has the right to interfere with your trades in order to protect its interests. Once you sign up, all you have to do is fund your account and you'll be ready to trade right away.
Chapter Summary: Ask other traders (on forex forums or web communities) about who to use as a broker. Pay close attention to anything you sign, especially regarding margin rules ------------------------------------------------------------------------------

Copy a Trader Who Makes Roughly $2000 Every Day by Forex Trading... WORDS OF ADVICE FROM FX GENERALS All these I have written on this manual are very important for a beginner. You see the market is too complex for even the best forex trader to understand, so why dont you create a trading system that can run profits more. Since thats your aim, always respect the market, or else,? ? ?, you see I have a trading strategy I call it the profitable trend system, thats what I use, and I sell it system with its manual for $ 50 (N 5,600), and those who are always busy with work, why dont you trade with robots. Its been proven that you can make $2,000 a day with the FAPS robot which I sell for $ 127(N 13,900). There are other robots you can use, but the question is are you willing to buy. I said this because the higher the efficiency of making money is the higher the price. Currently, my best robot is forex funnel I bought it $500, but if you are interested Ill sell it a a cheaper price. So thats it choose a trading system now !, whether with robots or manual creation.

DONT QUIT, KEEP MOVING FORWARD

By DON POPE ( CEO of GOOD LUCK ! See you on my next book, robots vs humans. FX GENERAL)

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