FX MEMO GUIDE

INTRODUCTION ON PAGE 3

In this memorandum you will be taught about the money-making

secret which has made fortunes for thousands of extremely rich
traders. The secret was discovered long time ago by the earliest
retail traders after they had encountered so many losses in the
foreign exchange market, and it managed to give them a
stupendous fortune.

After this secret had been put to a practical test by the earliest
successful traders, they began to realize that it is highly
impossible to accumulate wealth as a trader without the secret.
They had arrived at this decision after they had made millions
and even billions of dollars with the help of the secret, while
those who are without the secret are failing to accumulate riches.

The secret has been mentioned countless times in this

memorandum, but it has not been directly named, because it
works more effectively when it is merely uncovered and left in
sight, for those who are ready, or chasing for it, may pick it up.

It is proven that no trader has ever become successful without

coming across the secret. About 10% of all retail traders globally
are using the secret, and they try by all means to hide it from the
other retail traders who are without the secret. They hide it by
misleading them that the market direction is predictable, so that
the other retail traders will keep on pumping money into the
market, while behind the scene they are shifting/dragging the
price to their targets, using Newton’s first law of price motion.
 WHAT IS FOREX ON PAGE 4

The foreign exchange market (Forex, FX, or currency market) is a

global decentralized or online market for the trading of currencies.
This market determines foreign exchange rates for every currency.
It includes all aspects of buying, selling and exchanging currencies
at current or determined prices. In terms of trading volume, it is by
far the largest market in the world.

The main participants in this market are the larger international

banks. Financial centers around the world function as anchors of
trading between a wide range of multiple types of buyers and sellers
around the clock, with the exception of weekends. Since currencies
are always traded in pairs, the foreign exchange market does not
set a currency's absolute value but rather determines its relative
value by setting the market price of one currency if paid for with
another. Ex: USD 1 is worth X CAD, or CHF, or JPY, etc.

What Is Liquidity?

Liquidity refers to how active a market is. It is determined by how

many traders are actively trading and the total volume they’re
trading. One reason the foreign exchange market is so liquid is
because it is tradable 24 hours a day during weekdays. It is also a
very deep market, with nearly $5.3 trillion turnover each day.
Although liquidity fluctuates as financial centers around the world
open and close throughout the day, there are usually relatively high
volumes of forex trading going on all the time.

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 APPLYING NEWTON’S FIRST LAW OF MOTION IN THE FINANTIAL MARKET ON PAGE 8

According to the earliest retail traders who

discovered that the market is designed by
Newton’s first law of motion there are two types
of concentrations in the market; Sellers
concentration and buyers concentration, and it
is of great importance for all retail traders with a Sellers concentration:
burning desire to trade like the world’s top is the total lot size of all
traders to know that concentration in the market the opened sell orders
in the market.
signifies the total lot size of the buyers or sellers.
Buyers concentration:
is the total lot size of all
After knowing what concentration means in the the opened buy orders
market, it is also important to know what causes in the market.
the price movement, because 90% of all traders
globally are losing money in the market due to
failure of understanding what causes the price
movement. As traders we all know that the price
has only two directions, it can either go up or
down as shown in example 1 below.

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MEMORANDUM!
 NEWTON’S FIRST LAW OF MOTION ON PAGE 9

Newton’s first law of price motion:

States that the price remains at dynamic

equilibrium or moves with a constant speed,
unless an unbalanced force act upon it.

WHAT MOVES PRICE IN THE RETAIL INDUSTRY ON PAGE 10

Retail traders believe that the price can either go up or down

due to political events, and it can also be predicted with chart
patterns and indicators, which is the main reason why they are
failing to be profitable. For example; a retail trader will take a
buy order due to a break out of a channel, or a sell order due
to a touch of a moving average, as illustrated in example 2 and
3 below respectively.

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 WHAT MOVES PRICE ACCORDING TO SUCCESSFUL TRADERS ON PAGE 11

All successful traders know that the price of

any currency pair moves due to the sellers
concentration and the buyers concentration,
which is very crucial for retail traders to know Force: is the work
in order to be profitable as well. The sellers done by a lot size to
concentration accelerates the price upwards push the price up or
down, measured in
by applying an upward force on the price,
Newton (N).
whereas the buyers concentration accelerates
the price downwards by applying a downward Acceleration: is the
rate of change of
force on the price. speed caused by
Sellers concentration
In example 2 on the previous page, a retail and Buyers
trader has opened a 0.2 buy order on concentration
measured in pips.m-2.
EUR/USD, which accelerates the price
downwards by applying a downward force on Dynamic equilibrium:
it’s a state in the
the price, and a liquidity provider has also market where by
opened a 0.2 sell order, which accelerates the there’s equal Sellers
price upwards by applying an upward force on concentration and
the price. The lot sizes of the retail trader and Buyers concentration,
presented by candles
the liquidity provider are equal, and they are
being formed within a
applying equal forces in opposite direction on channel on the chart.
the price, resulting the market to be at dynamic
equilibrium as shown below.

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 UPWARD AND DOWNWARD ACTION ON PAGE 11

Referring to example 5, let’s assume that these

Upward action: is a
orders; the retail trader’s order (0.20 buy) and decrease of the
the liquidity provider’s order (0.20 sell) are the buyers
only opened orders present in global exchange. concentration which
If a downward action or upward action is not reduces the
downward force
taken by one of these opponents upon their
applied by the
orders, the market would remain at dynamic buyers
equilibrium forever, as stated by Newton’s first concentration on the
law of motion. price, resulting the
price to shift in the
direction of the
The retail trader has to take an upward action in upward force
order to make profit, and the liquidity provider applied by the
has to take a downward action in order to make sellers
profit as well. An upward action is a decrease of concentration on the
price.
the buyers concentration which reduces the
downward force applied by the buyers Downward action:
is a decrease of the
concentration on the price, resulting the price to sellers
shift in the direction of the upward force applied concentration which
by the sellers concentration on the price, and a reduces the upward
downward action is a decrease of the sellers force applied by the
sellers
concentration which reduces the upward force
concentration on the
applied by the sellers concentration on the price, price, resulting the
resulting the price to shift in the direction of the price to shift in the
downward force applied by the buyers direction of the
concentration on the price. downward force
applied by the
buyers
FIND MORE INFORMATION ON THE concentration on the
price.
MEMORANDUM!
 HOW MOST RETAIL TRADERS TRADE AND WHY THEY LOSE ON PAGE 24

The exchange of foreign currencies first

occurred during ancient times, when money-
changers were making profit by helping people Commercial banks:
to change money and charging a fee out of that. are the big banks that
During the ancient times, trading was taking provide liquidity to the
place over the counter, whereby people had to forex market like; JP
Morgan, UBS, XTX
come to a money-changer and buy the currency Markets, Deutsche
they want, then if the currency that they’ve Bank, Citi, HSBC, Jump
bought gains value, they sell it back to the Trading, Goldman
money-changer and earn profit. Sachs, State street
corporation, Bank of
America Merrill Lynch.
Few years later online currency trading was
Brokers: are
introduced by the commercial banks to facilitate intermediary financial
trading, whereby money-changers became service providers that
brokers and the customers of the money- give retail traders a
changers became retail traders. Trading platform to trade with
the commercial banks,
became easy for the money-changers (brokers)
and charge a
at this point because they started to earn profit commission for
through charging a commission for sending the providing the service.
order requests of the retail traders to the
commercial banks.

At the beginning of the online trading all the

retail traders couldn’t make profit, because they
thought that the online trading works similar to
the counter trading which they were used to,
whereby they had to check the exchange rate
(fundamentals) first, before they buy or sell any
currency.
As time passed by, about 60% of the retail traders started to
realize from their losses that the online trading works differently
from the counter trading. They discovered that it obeys Newton’s
first law of motion, and after discovering that they started to be
profitable, resulting little profit flowing to the commercial banks.
All those who discovered the secret they managed to accumulate
wealth, and became the most powerful people who ever lived.

Little profit flowing into the commercial banks became an alert to

the financial authorities that most retail traders are discovering
the secret. False or misleading information had to be made by
the financial authorities to prohibit the secret from being
discovered by retail traders. This misleading information was
given to all the brokers to spread it out globally, so that new retail
traders get misled and fail to discover the secret. And indeed this
misleading information succeeded to protect the secret, because
today there’s 90% of retail traders who believe that the market
direction can be predicted.

TECHNICAL ANALYSIS VS LIQUIDITY PROVIDER ON PAGE 26

Example 6
Considering example 6 on the previous page, a retail trader
Denis Martez saw the price of EUR/USD dropping drastically
and opened a sell order of 0.50 lot. And a liquidity provider had
to open a 0.50 buy order behind the scene, eventually the price
got into a dynamic equilibrium for 12 minutes.

1. Why the price got into a dynamic equilibrium?

2. The liquidity provider takes an upward action of 0.05, what
will happen on the price? Also show by a diagram.

Answers

1. The price was going down due to a downward action made

by the liquidity providers, and as the price was dropping it
eliminated all the stop losses of the other retail traders, at
Denis’s entry point the liquidity providers had taken profit from
their sell orders, and then eventually the price got into a
dynamic equilibrium, because Denis’s order and the liquidity
provider’s order are the only orders present in global exchange,
and yet no upward/downward action had been taken by these
two opponents.

2 The price will go up at a speed of 7.5 pips/m and hit Denis’s

stop loss due to the upward action taken by the liquidity
provider which generated a net force of 11 N that pushed the
price upwards.
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MEMORANDUM!

FUNDAMENTAL ANALYSIS VS LIQUIDITY PROVIDER ON PAGE 39

Fundamental analysis is a system which is used by retail

traders to predict the market direction, whereby they listen to
news and also check out political events of different
countries.
Example
It is a Friday of the first week of the month, 6 retail traders have
checked out the news and saw the Non-Farm Payrolls (NFP)
positive for the United States Dollar, and opened sell pending
orders on EUR/USD, the price went down and triggered all the
sell pending orders, behind the scene a liquidity provider had to
open buy orders of the same lot sizes as requested by the 6
retail traders to complete the transactions, at the last order
request the liquidity provider applied an upward action of 0.25
and the price shifted up drastically about 400 pips and hit all the
retail traders stop losses as presented on the diagram below.

* Why the price did not fulfil NFP results?

ANSWER
The price doesn’t know about NFP, it only knows the sellers
concentration and the buyers concentration. If the price had to
obey the NFP results by depreciating drastically as stated by the
results, it wouldn’t have funds to pay the last retail trader’s order
because the liquidity provider has already removed his buy
order of 0.25 that had to exchange with it. So according to
Newton’s first law of price motion, the liquidity provider has
caused an inequality of concentrations in the market by
removing his buy order which resulted to a net force of 55 N that
pushed the price upwards.
 HOW SUCCESSFUL TRADERS SHIFT THE PRICE ON PAGE 44

No trader has ever become successful without understanding

that the market was designed by Newton’s first law of motion,
which was then called Newton’s first law of price motion. The
law states that the price remains at dynamic equilibrium or
moves with a constant speed, unless an unbalanced force
act upon it. Every successful trader knows the law and they shift
the price due to the knowledge they have about the law. This
memorandum contains the actions which are capable to shift the
price drastically, and which are used by the successful traders.
They apply the law in the market using automated trading, which
is preferred by almost all of them as it’s capable to open a bunch
of pending orders in seconds, and applies a fast and accurate
action which cannot be done by manual trading. This helps them
to shift the price drastically to their targets in few seconds.

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MEMORANDUM!