FOREX CLASSICS

Technical Analysis for Forex Profits

INTRODUCTION

Welcome to this eBook, and if this is your first exposure to Forex then welcome to the wonderful world of currency trading!. We have had this eBook put together to share with you the most commonly taught technical analysis methods used to trade the Forex markets. Many people charge hundreds of dollars for essentially the same information (actually much less info) presented via an eBook to thousands of dollars for a seminar, again teaching exactly the same stuff taught here in this eBook. We originally planned to sell this powerful eBook alone for $297 (still a fantastic bargain), but instead decided to give this eBook as a gift as part of our mission. Basically the only difference you'll find between what you'll learn in this eBook versus many of the seminars costing thousands of dollars (as much as $12,000) is that they just keep showing you more chart examples and variations to drill the concepts into your head. Other than that general difference the content is more or less the same.

It is our mission, as stated on our website, to bring the amazing life-changing opportunity of Forex trading out of the exclusive hands of the elite (rich people) and make it available to average people. Before we started sharing all our incredible eBooks the only way that you could have learned these awesome techniques was to cough up a few big bucks (thousands) to take a hard-to-find course. We've had tens of thousands of dollars worth of Forex training ourselves because we recognized the immense potential of trading Forex, and at the time no one was offering a lower cost way to learn (trust me, we would have killed to find a site like Rapid Forex to learn from back then). If you can afford to (or when you can) then certainly participate in one of those expensive seminars; yes, you'll learn a few things, but after having learned everything we at Rapid Forex have to offer you you'll find that the seminar will affirm to you that you already know a lot, more than you realized, and it'll boost your confidence in yourself as a trader.

This eBook is titled "Forex Classics" because it teaches the classical technical analysis techniques that are most commonly used worldwide for Forex trading. If this were to be the only learning tool you were to ever get your hands on then you would still know about as much, if not more, than many traders out there!

So start reading and enjoy this marvelous collection of Forex trading technique classics. We wish you tremendous success as a Forex trader, and in all areas of your life!

Brian & Robert

We dedicate this eBook to you, our readers. Thank you for allowing us to share our passion with you, and for reciprocating your appreciation back to us with all your enthusiastic compliments. You really are dear to our hearts. This eBook is our gift to the world.

TABLE OF CONTENTS

Introduction

Chapter 1: Introduction to the Forex

What is the Forex?

The game

Rules of the game 101: Forex market operation basics Staving in the game: practicing sound equity management See the field, know the plays: using charts to analyze the Forex market

Chapter 2: Trading on Japanese candlesticks

Doji candles

Spinning top candles

The Hammer, dragonfly doji, gravestone doji, and full body

candles

The morning star candlestick formation

The evening star candlestick formation

The tweezer top candlestick formation

The tweezer bottom candlestick formation

Rules for trading candlestick formations

Chapter 3: Support and resistance Highs

Levels of resistance Lows

Levels of support

Rules for Trading support and resistance levels

Past levels of resistance can become future levels of support

Past levels of support can become future levels of resistance

Chapter 4: Trends and trendlines

Finding your inner, outer, and long-term outer trendlines in

an uptrend

Trading trendlines in an uptrend

Finding your inner, outer, and long-term outer trendlines in a

downtrend

Trading trendlines in a downtrend

Rules for trading trendlines

Chapter 5: Buy and sell zones

The broken uptrend

Trading the sell zone

The broken downtrend

Trading the buy zone

Rules for trading the buy and sell zones

Chapter 6: Price swings and Fibonacci numbers

The uptrend price swing

The downtrend price swing

Leonardo Fibonacci's numerical sequence

Fibonacci numbers and uptrend price swings

Trading on Fibonacci numbers in an uptrend

Fibonacci numbers and downtrend price swings

Trading on Fibonacci numbers in a downtrend

Rules for trading on Fibonacci numbers

Chapter 7: The reversal and the King's crown

The uptrend (right-side-up) King's crown

The downtrend (upside-down) King's crown

Rules for trading a King's crown

Chapter 8: Sideways movement consolidation, and fundamental

announcements

Consolidation

Fundamental announcements

The breakout

The straddle trade

Rules for straddle trading

Trading inside consolidation

Chapter 9: Trading days and trending days

Trading days

Trading on a trading day

Rules for trading on a trading day

Trending days Trading on a trending day

Rules for trading on a trending day

Chapter 10: Fibonacci numbers and convergences

Fibonacci convergences in an uptrend

Fibonacci convergences in a downtrend

Rules for trading a convergence

Trading an uptrend

Fibonacci convergence

Trading a downtrend Fibonacci convergence

Successful traders vs. unsuccessful traders

Chapter 11: The Gartley

The Gartley

Rules for trading a Gartley

Chapter 12: Harmonic vibrations and beats

Market movement in beats

The value of a beat

The beat completion/trendline/Fibonacci convergence

Rules for trading a harmonic beat

Chapter 13: Trading pennants

Consolidation

Identifying pennants

Trading the pennant breakout

Rules for trading a pennant

Trading inside a pennant

Chapter 14: Trading indicators

Moving averages

The average price line

Moving average crossover

MACD

Stochastics

Rules for trading with math-based indicators

Chapter 15: Trading strategies

Six general steps to follow when planning a trade

Separating the successful traders from the unsuccessful ones

Six general strategies for trading in any market

The Beginning

Chapter 1: Introduction to the Forex

What is the Forex?

Forex, a short name for the foreign currency exchange, is a market in which currenciesare traded Specifically, traders in the Forex market are trading one currency against another. As in some other markets (commodities, for instance), there are several different types of actors in the game. Some actually buy and sell currencies, trading one against the other. The actors engaging in this kind of Forex market activity are very large banks and corporations as well as countries (the United States, for example, always holds a certain amount of other countries' currency in addition to its U.S. dollars). There are also options traders in the Forex market, just as there are in the commodities market, for example. Finally, there are speculative traders, the categoiy into which nearly all individual traders fall. As a speculative trader, you are not actually buying or selling currencies - you do not have to have $100,000 US. dollars in your bank account to give in exchange for $130,000 Euro dollars. Instead, you are speculating on the value of one currency with respect to another. You are, essentially, betting on which currencies will increase in value and which will decrease in value - you are betting on the actions of those players who are actually exchanging the currencies. While understanding the fundamental factors that contribute to the value of a country's currency is important for you, it is not nearly as important as understanding the factors that contribute to the major players' decisions. It happens to be that they are actively analyzing a country's fundamental factors and buying or selling its currency based on that information - but you don't need to be an economist or a political scientist to be a successful Forex trader - you do need to be able to recognize when the major players are making a move.

The point of this book is to help you do just that - to help you recognize movements by the major players that will change the value of one currency against another. If you learn to recognize these movements, you will be able to make sound bets on their effects on the price of a currency.

© 2005 Abundant Freedom LLC

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MONEY MANAGEMENT & MARKET PSYCHOLOGY

The information provided in this report was provided for use with the Rapid Forex trading packages. This report provides valuable information that can be used to enhance an established trading system, or as part of the Rapid Forex education curriculum. The examples in this manual refer specifically to Foreign Exchange (Forex) trading, but can be applied to any financial market.

The purpose of this short report is to give helpful hints about how to maximize any trading strategy for the different capital markets. Some of these principles may seem like common sense if you are a seasoned trader. I wanted to emphasize these points so I created this report rather than trying to fit them into another publication. I have put these tips together as an added resource for Rapid Forex traders. I may add to these tips in the future. These tips are not an attempt to fully cover the presented topics, but rather to give you some more things to think about implementing in your trading. It is worthwhile to state these tips and techniques to manage your money and establish a stable personal market psychology-

Money Management Rules (MMR Rules)

MMR Rule #1: Keep every trade the same size!

If you are investing the minimum trade of $10,000, then make sure all trades are $10,000 trades. After you have seen your account rise a minimum of 20%, you can and should increase your trading size. But once you increase your hade size - stick with it.

The reason for this is simple. Suppose you have 3 successful trades in a row. You invested $100 per trade. Now you say "I'm on a roll, I'll invest $300 on this next trade to cash in on this streak of luck", but statistically you are due for a losing trade at this point. So you lose $300 on this trade (this wipes out all of the profits you made on the 3 winning trades). So now you only invest $50 on the next trade because you don't want to lose as much money as you just lost. But on this trade you realize a profit but the profit is only 14 of the profit would have if you stuck to the original $100 investment. You continue in this crazy way of thinking for the rest of your trading career. This kind of warped-irrational psychology eats up your whole trading account. This is the most important money management rule.

MMR Rule #2: Paper Trade First

First open a demo account, and get to learn how to place orders with it. You shouldn't invest real money until you have shown a profit in a demo account. Many people have losing demo accounts and still believe that it will be different with real money. When you open a real account, stick to the systems in the Rapid Forex publications! You do not even have to think. If you follow the rules, you should make money. I can not legally guarantee that, but based on what my research has shown, people who do so should do very well. It is important that you don't change any of the rules.

MMR Rule #3: Take the Money and Run

If you have a trade that is either abnormally profitable or went up 30-50 pips in a half hour. Take the money and run. If you are happy with the profit you see in a trade, take it and don't look back. Please do not confuse this with taking any small profit as soon as you can. If you have a trade that is 10 pips up, don't cash it in. You could be sacrificing a big profit. If you took every trade when it was only 10 pips up, you would never make money. But it is ok to take a profit when you see a nice sized profit. A good benchmark

for a nice sized profit is a profit that is higher than the average profit you have made per trade so far. This will increase your average profit per trade! Especially when something shoots up extremely fast, because "what goes up fast, must come down fast"; that is my version of Isaac Newton's theory of gravity.

MMR Rule #4: Cut Your Losses

Let's face it, with any trading system you are going to have trades that lose (hopefully not too many). If you are going to be successful, you need to know when you are going to get out if things go wrong. You need to know your exit strategy before you place the trade. Follow an exit signal to let you know when the trade should be abandoned. The Advanced Options Strategies manual outlines the exact entry and exit price targets that you should place entry orders for and how to adjust these prices through trade monitoring. Every trading strategy should have a prescribed exit price that tells you that the trade has failed and you need to GET OUT NOW!

Each trading strategy will differ on their exit strategies. The most common strategy is to set a protective stop order to limit the potential for loss. Setting a protective stop order is usually a good idea. By setting a stop order, you guarantee that you can only lose up to a certain amount of money on that trade. When you set a protective stop order, you must be extremely careful. The main problem with stop orders is that they can prematurely cause you to take a loss on an otherwise profitable trade. Some trading strategies do not set protective stop orders as their primary exit strategy. It can be advantageous not to set a stop order. If you do not set a stop order, you need to have some type of criteria to monitor your trades. The next MMR Rule #5 deals with trade monitoring.

MMR Rule #5; Monitor Your Trades

There are literally hundreds of variables that affect the prices of foreign currencies, stocks, options, bonds, futures, etc... Every trading system should have some type of "monitoring criteria". This "monitoring criteria" should be able to tell you exactly when the trade has taken a turn for the worse (or when you should take the money and run). The "monitoring criteria" is also a way to maximize profits and limit losses beyond the power of your initial entry information. It should make sense that you should want to use all of the information available for the entire duration of the trade. This is important because as the information changes, so does your idea about how the trade will move in the future. Forex Sailing uses a special monitoring technique that allows you to monitor trades even though you do not set an original stop or limit order when you enter the trade. The Advanced Options Strategies publication combines an initial stop and limit order with trade monitoring.

Market Psychology Tips (WIS Tips)

MS Tip#1: Don't Get Caught in the Moment

The biggest mistake that you can make with any trading system is to second guess the trading method in the middle of a trade. I am not sure if this has ever happened to you or not. I shamefully have to admit that I have fallen prey to getting caught in the moment myself I fired up my charts, I looked at some technical indicators and I found a perfect entry signal for a trade. I got into the trade and sat there and watched the tick-by-tick play of the stock screen. I anticipated making somewhere in the neighborhood of $1,700 on this trade. I sat there and watched the price go up, and then down, and then back up. I thought for sure this was it! But the stock dropped so my $500 anticipated profit fell to where I was at a $900

loss! I watched the prices and the stock just wouldn't go up for me to accept a $500 loss. When the stock reached a point where I would have lost $1,000,1 set an order to take a $750 loss. When I set that order, the stock had hit the low-point for the day. The stock climbed for the rest of the day. If I would have waited patiently, I would have collected up to $1,700! I thought to myself "If only I weren't watching that screen for the first half of the day." The main mistake that I made was that I got caught up in the moment. I allowed the price movement of the stock to influence my actions in a destructive way. If I would have mechanically adhered to my hading system and set my stop order for a $1,100 loss, I would have stayed in the trade and taken my $1,700 profit.

MS Tip#2: Control Your Entry

Yon definitely do not want to get caught in the moment. One easy way to avoid falling into that trap is to set entry orders exclusively. Any good trading strategy should show you exactly how to establish an entry order. Market orders are scary and should be

avoided no matter what. I can not stress this point enough. When you place a market order, it is the same thing as walking into a store and saying "I know you charge $25.00 for this shirt today, but I'll pay any price you decide to charge for the next month." Youdonot do this because it would be insane. The market order gets filled at whateverprice the currency pair or stock is trading at when the order hits the trading floor. This can take a few seconds or a few minutes. Prices can and do change by drastic amounts within a few seconds. Even if your trading provider promises "instant execution" there are no guarantees for getting the price you want to pay. The only way to guarantee what you pay is to place an entry order. The only problem with entry orders is that sometimes they do not get filled. The fact that entry orders do not get filled sometimes is not really a problem at all. If the price does not do what you want it to do - your entry order will not get filled. Most of the time an unfilled entry order prevented an otherwise losing trade.

MS Tip#3: Don't Re-invent the Wheel

Follow the trading system exactly as prescribed by the system itself. The purpose of sticking to the trading system is because you probably paid money to learn how to trade from someone who knows more about it than you do, or has some knowledge that youdon't have. Whoever designed this system has outlined the steps

necessary for you to succeed at trading according to their research and experience. It is important to understand the system you are following, and to stick to it. When you try to change the system you are only hurting yourself. If you are not following the system, you are engaging in chaos. Human emotions do control the capital markets. People who are speculating based on their emotions are the ones who are giving money away to people who are trading using calculated trading methods. When you start to trade seriously, you will learn to love irrational and emotional traders. These irrational traders are the ones who are providing the gains that you are taking from your trading system!

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eReport By Brian Campbell

© 2004-2005 Infinite Limits Inc.

How to make an incredible 10%, 30% or even more each month!

In this ereport you will learn a closely guarded "secret" about how you can get incredible return,truly astounding profit that most people would thing is impossible. up until now these"secrets" were only known by the :elite" (very rich) people... but now you can be one of them! take the time to read this life changing ereport now and start making these "secrets" work for you!

This amazing jaw-dropping eReport is by Robert Borowski, best selling author of numerous financial books.

I dedicate this eReport to my friend "Super Dave". You have been a tremendous inspiration to me through our mutual experiences, what you have shared with me, and mostly through just observing you. I fondly remember the "good ol' days" when we were scraping by financially dreaming of unlimited possibilities. I am thrilled that your dreams have materialized, and thank you for your encouragement that contributed to the fulfillment of mine.

Investors of all sorts are ultimately concerned about the bottom line "ROI". It doesn't matter if you invest in Real Estate, Stocks, Businesses, Forex, Money Lending, Mutual Funds, Risky Ventures, Safe deposits like Bonds, or anything you can possibly put your money into, all that matters in the end is the "ROI" you get out of it (ignoring time involvement and ethics).

Incase you don't understand what the term "ROI" means I'll explain it for you. It is an acronym for "Return On Investment". So as an investor, regardless of whatever you place your money into, you look to see how much Return you will receive on your Investment.

Let's say you invest $100 into something like a mutual fund. I'm using this small number simply for illustration purposes of percentages - of course normally you would be "investing" significantly more. If over the course of the year your mutual fund has done well, say making 10%, then the value of your investment has grown to $110, yielding 10% ROI over the course of the year. Most folks would consider this to be an excellent investment, but as you'll soon see you can do significantly better.

Some investments have an uncertain ROI, and some have a fixed ROI. The mutual fund example from above is uncertain in that when you initially place your investment you don't know how well that fund will do over the next 12 months. It could be profitable with a meager ROI like 1%, or you might get lucky and score a huge gamer of 28%, but mutual fluids also have bad years, and so you could potentially lose say 8%, thus having a negative ROI.

Some investments have a fixed ROI meaning that you know what the percentage of Return will be at the end of the year. Putting your money into a savings account Bond, GIC, or some other guaranteed investment that pays a fixed interest will yield you a guaranteed ROI. It is good to have some of your investment fluids placed in these safe vehicles, however the ROI sucks; you'd be hard pressed to find such investments that pay significantly better than 5% per year.

It is noteworthy to mention that there are two kinds of "investments"; passive and active. Passive investments simply require that you place your initial capital into it and then you do nothing while your funds grow. Putting your money into a savings account bond, mutual funds, or other such things is generally "passive". If you invest your money to start up a new business,

and then have to actively participate in "working" the business then your investment is active, meaning that you have to DO something for your ROI. Done properly you can transition an active investment into a passive one. For example, it may take you some time & effort to set up a vending machine business, coin-op wash, parking lot, Internet marketing website, or just about any business that you can later hand over to other people to manage. At some point you may have other people manage the "day to day" activities of the business, or somehow remove most of your time from the equation and at that point your business now becomes "passive" (money keeps coming in without you doing much for it). Royalties on a book you've written, music you've composed, network marketing downline you've established, etc... also become passive sources of funds.

A very important concept that all investors need to be mindful of is to "not have all your eggs in one basket" - diversify your investments. It is important to spread portions of your investment portfolio across numerous areas, some safe, some with moderate risk, and some with higher risk (portions depending upon your risk tolerance). It is not the intention to discuss these topics in this report, but it is worth mentioning here briefly to ensure that you are aware of these concepts. I'll touch upon these ideas for you over the next few paragraphs to at least point you in the right direction for your overall investment strategies, but I'll soon return to the main point of this report.

It is a good idea for "most people" to have an investment advisor. Talking with those people who do investments & insurance (at banks or other investment companies) is generally a good idea for "most people" to set up their retirement plans, and you should consider talking to them for that purpose, but don't expect those "advisors" to make you rich. I have a personal prejudice against these investment advisors; why would I listen to someone who is NOT rich about how to invest MY money, particularly if the main motivation of this person is to sell me on investments that will have unimpressive returns so that he/she can earn a commission from my investment. One of my mentors told me to "never take advice from unhealthy, unhappy, broke people", and I now pass that wisdom on to you (so stop asking your broke friends about their opinions; keep your own counsel). I say that talking to these advisors is good for "most people" simply because most folks don't have the knowledge nor the ambition to engage in better investments on their own. You have to take your wealth development into your own hands if you want to accumulate real wealth.

That said it is still a good idea to deal with such an advisor to dedicate a portion of your investment funds to the "safe" stuff they recommend for your future retirement - make this your secure "get rich slowly" plan - but you MUST do more man just that for real success.

Above I said that you have to take responsibility for your own wealth; you can't rely on other people to do it for you. An important investment actually the most important investment you could possibly make, is to invest in your education. I'm not talking about going to college or university (most schools are a waste of money if you want to build a fortune, but they are good to just get a J.O.B. (Just Over Broke - ever notice how you barely live paycheck to paycheck?), which is a low ROI opportunity). I'm talking about attending seminars, reading books, and taking courses that teach you how to invest in various things (congratulations if you have purchased my Forex training materials as thisqualifies for a smart educational investment). Don't not (not a grammatical error) takethese courses because you think that they are expensive, as actually NOT learning is the expensive alternative. Think about it, a course may seem expensive to you, but ifit teaches you how to make $5,000+ each month then isn't it "cheap"?

Spend the time to learn various investment topics, and then IMPLLMENT the concepts you learn. Taking proactive involvement is the ONLY way you'll ever get rich - so stop holding your breath hoping to win the lottery. Strive to keep adding multiple passive investments to your portfolio and over time your Multiple Streams of Income (MSI) can support a lavish lifestyle for you.

Incase you haven't realized it yet, all the books I've written, and the websites selling my Forex training materials, are one of the pieces of my overall investment portfolio (actual Forex trading is of course another piece, and I do other cool things too as I believe in diversification). Creating the eBooks, eReports and the websites initially required my active involvement but it is now primarily a passive income stream as I have other people taking care of the day-to-day activities. I've invested tens of thousands of dollars in my education to learn how to do these things and now I earn (passively from web sales, and actively through trading - not counting the other things I also do) tens of thousands of dollars each month! The ROI from my educational investment is huge. If I didn't invest in my education (which was very "expensive" for me) then today I would be another bonehead going everyday to some J.O.B. I hate. Folks, I can't stress to you enough thevalue of continually learning more about various business/investment topics and thenDOING what you've learned. If you want financial freedom then that is what you have to do!

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eReport By Robert Borowski

© 2005 Evergreen Forex Inc.

FOREX FREEDOM

Turn $300 Into $30,000 With Fo Financial Freedom In As Little As 6 Months!

You are granted full permission to give this eBook to your friends and business associates, as they will surely want this. You may make it available to download on your website, give to others free, or even sell it (go ahead, make a profit!). You may share this eBook with others as long as the eBook remains completely unchanged in it’s entirety along with copyright and legal notices.

If you want another copy of this eBook or you want a friend to have it then go to www.RapidForex.com/freedom to receive a FREE copy of “FOREX Freedom”.

This eBook is dedicated to my first child (still waiting – my wife is pregnant). You have shown me that miracles can and do happen.

Dear Friend,

Are you one of those people who know that trading FOREX is one of the surest ways to create a lavish income in the shortest amount of time (or perhaps you didn’t know), but think that you don’t have enough money to get started? Well then this eBook is for you! I’ll

Turn $300 into $30,000 – Financial Freedom in as Little as 6 Months! show you that you DO have enough money to get started. In fact all you need is $300 to get started, and a little patience (6 months or so to be happy with your results).

I wrote this eBook because sooooo many people wrote me asking if they could get started trading FOREX with only $300. Here is an example of one email I received:

Hi there,

With this deal, could a poor man like myself start with a mini account and possibly make $200 or more like it says on the website? I could probably open a mini account for $300 and this would be money I could afford to risk. I sure could use an extra $200 here and there. Help!!! thanks Peter

By following this simple step-by-step plan you can grow your initial $300 “seed” into a majestic “money tree”!

You can learn today how to completely replace your income! You’ll only have to work a few hours each week to do it; what will you do with the rest of your time? Start dreaming, and read on…

There are many people making a great full-time income working just an hour or so a dayfrom home trading FOREX. They are no smarter than you are, and they come from all walks of life (waitress, bankers, bakers, doctors, janitors, teachers, barbers, taxi

drivers, store clerks etc…). If they can do it YOU CAN DO IT!

In my opinion trading FOREX is the best way to make money, period. If you don’t know what FOREX is, or don’t know how to trade it then make sure to go to www.RapidForex.com/eCourse to rapidly start learning now by getting a FREE e-Course about FOREX Trading. Be sure to do it today otherwise you’ll delay learning how to make lots of money really easily (you don’t want to stay in your current financial situation, do you?).

You’ve heard the saying, “it takes money to make money”. Well it’s true, and generally the more money you have the more money you’ll make. But don’t worry; you’re about to learn a clever way to make a whole lot of money starting with very little.

Why does this system start with only $300? Well, you could certainly start with more. If you have $500, a $1000, or even more you’d simply pass through the beginning steps more quickly. $300, however, is the least you can start with because that’s the minimum you can open a “mini” Forex account with.

Don’t know what a mini FOREX account is? If any of the term used in this eBook are unfamiliar to you then go to www.RapidForex.com and get the FREE e-Course. You will get everything you need to understand clearly. Remember, if you don’t understand something then pursue learning about it – learning about FOREX can completely change your financial situation, and so it’s really quite simple to learn to do.

With this system we’re going to assume you’re starting with $300, but again, if you start with more you’ll simply skip ahead a few steps.

Just to make sure you understand I’m going to briefly explain “lot” sizes. When you are trading a “mini” account the “lot” sizes are 10,000. What this means is by trading one mini lot you are trading 10,000 worth of currency (i.e. US Dollar). The nice thing is that to “control” that lot you don’t need to have $10,000 at all. Your broker will let you trade a mini lot as long as you have $100 “on margin” (some will even let you trade a mini lot with only $50 on margin). So, if you have $100 you can trade $10,000!!! (Need a Turn $300 into $30,000 – Financial Freedom in as Little as 6 Months! FOREX broker? Find out who is the best to use at www.RapidForex.com/broker.)

When a currency pair (trading one currency for another) moves up or down a “pip” you will generally make $1 for each pip. A pip is 1/100 of a penny, but when you multiply it by say $10,000 traded then a pip is equal to $1 of profit. Now if you were to trade two mini lots (like you could do if you had $200 or more in your trading account) you would then make $2 for each pip, etc…

When you have at least $2,000 in your trading account you can then trade “regular lots” instead of “mini lots”. Regular lots are ten times the size of a mini, so you’d be trading $100,000 (with only $1,000 on margin) and each pip is usually $10. As you can see you’d be making money faster trading regular lots over mini… but this eBook will teach you how to get to that point starting with only $300.

HOW TO TURN $300 INTO A FULL-TIME INCOME

So let’s start talking about the strategy on how to turn your $300 into a full-time income. This is what you want, isn’t it?

First of all you need to have a “trading strategy” – you need to know what to look for and how to trade to make money. If you haven’t got a good trading strategy, or are open to learning new techniques then go to www.RapidForex.com to learn. The rest of this eBook assumes that you already have a trading strategy, and we’ll only look at the strategy of how to grow your money. Remember, it’s important to know what you are doing. Paying a little bit for an education will improve your chances of making a full-time income as a FOREX trader. If you don’t know what you’re doing then there is a 99.999% chance that you will fail horribly. Do yourself a favor and make sure to get some training.

This growth strategy works by increasing how many lots you trade depending on how much money you have in your account. As you trade you only trade the number of lots permitted; never more, however you may trade less lots than prescribed if you so choose. We’ll discuss why later.

When you start your account with $300 you are only allowed to trade one mini lot. If you win on your trades and gain money then that’s great. If you should fall below $300 then you would continue trading one mini lot, but being more careful on your trades.

Once you’ve grown your account to $400 then you are ready for step #2. At this point you will be trading two mini lots on your trades. Now you will begin to be earning money twice as fast compared to before. If for some reason you choose (i.e. if you are less certain about a trade) you may still trade just one mini lot – the choice is yours. At this point should you experience loosing trades that drop your account below $400 then you revert back to step one, trading one mini lot.

When your account reaches $600 then you move up to step #3. Now you are allowed to trade three mini lots on your trade, but can of course trade less if you want to. Again, if you loose any money and fall below $600 then you go back to step #2. If you are unfortunate to loose even more and fall below $400 then you would go back to step #1, however when you have over $900 then you move on to step #4.

By now you should understand how this strategy works. Look at the following chart to see the progression of your account. This chart also shows how many pips you need to capture (assuming $1 per pip per mini lot traded) to move to the next step.

Step 1 $0 to $399 trade 1 mini lot 100 pips*

Step 2 $400 to $599 trade 2 mini lots 100 pips

Step 3 $600 to $899 trade 3 mini lots 100 pips

Step 4 $900 to $1299 trade 4 mini lots 100 pips

Step 5 $1300 to $1999 trade 5 mini lots 140 pips

Step 6 $2000 to $2999 trade 6 mini lots 166 pips

Step 7 $3000 to $4499 trade 7 mini lots 214 pips

Step 8 $4500 to $6999 trade 8 mini lots 312 pips

Step 9 $7000 to $9999 trade 9 mini lots 333 pips

• From your start of $300

(Note: This plan assumes you are following a strategy that only risks a maximum of 20 pips per trade such as the “Forex Surfing” techniques available at www.RapidForex.com If you are using other strategies then you may need to adjust this plan to fit your equity management rules.)

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Robert Borowski, Evergreen Forex Inc.

All Rights Reserved – www.RapidForex.com

FOREX FOR BEGINNERS

Welcome to the Forex

Congratulations on your decision to become a Forex trader! There are very few investment opportunities that provide the profitability of the Forex market (using the methods you are about to learn through RapidForex.com). In the next few paragraphs I am going to explain in a simple way what the Forex is and how it operates. I have made it as short as possible to give you the key concepts you will need to master the 4xtrend trading style. I do not want to fill your brain with excess information that you will not need.

The Foreign Exchange (Forex) market is where banks, investors and speculators exchange one nation's currency for another. The Forex has been around since the early 20th century, but it was not until well after the beginning of the computer revolution of the ,1990s where independent investors (like you and I) had access to invest small amounts of money in the Forex.

The Forex is like the stock market in one critical way (among others); to make money you must buy low and sell high. You may do this in two ways. In the stock market, the traditional way is to buy a position and sell it after it goes up in value. The second way is to sell-short a stock and then later try to buy it back at a lower price. In stock market investing there are severe restrictions and dangers to selling short. The beauty of the Forex market is that there is no distinction between buying and selling short. This is because all transactions are dual-faceted.

Currencies are always traded in pairs. A typical pair is EUR/USD (Euro over US dollars). The first currency is the base currency. The second currency is the counter or quote currency. The first currency is the base. So you must view it as the amount of the second currency needed to buy one unit of the first currency. If you want to buy the currency pair you are actually buying the EURO and simultaneously selling the USD. If you were going to sell the pair you would simply be selling the base currency (EURO) and buying the USD. Whether you are buying or selling the pair is just a matter of which one you are buying or selling.

The good news is that you don't have to remember which one to buy or sell, simply think of the whole pair as one item and you are buying or selling the whole pair. An open trade or position is one in which a trader has either bought/sold one currency pair and has not sold/bought-back the equivalent amount to effectively close the position.

Pips

Currency pairs are carried out to 4 significant digits. The change of the currency pair by one one-hundredth of a percent is called a pip. So if the currency was trading at 141.53 Û a one-pip increase would be 141.54. Similarly, an increase of one pip could also be 1.6138 to 1.6139. A fall of one pip would be a move from 1.2345 to 1.2344. This is just lingo, in the stock market a point is when the stock increases or decreases by $1.Trading

Volume

In the other Capital Markets (such as the stock market, options & futures exchanges), trading volume is usually monitored by traders. Trading volume measures how much "money" is being traded. There is always high volume in the Forex market. The Forex is the largest market in the world, and on its slowest day it still dwarfs

the trading volume of the largest exchanges combined. Obviously the volume is somewhat higher during some types of news breaks and when New York's exchange is open. The only thing Volume tells us is that more things can change. I haven't seen a strong correlation for Volume. Good trades develop even when the Forex volume is relatively low compared with its busier, higher-volume times.

Buying and Selling Short

Throughout the 4xtrend trading systems, we will refer to "buying" and "selling-short." By "buying", we mean that we are buying a currency pair to open a trade. The term "selling-short", refers to when we sell a currency pair to open a trade. Both terms "buying" and "selling-short" refer to things we do to open a trade.

Once you have opened a trade, you will eventually need to exit the trade. To undo buying, you simply sell, to undo selling you simply buy. To avoid confusion about what type of trade we are referring to, we have developed the terms "selling" and "buying-back". The term "selling" refers to what we do to exit a trade that was started by "buying". The term "buying-back" refers to what we do to exit a trade that was started by "selling-short".

Please notice that the terms with the hyphens go together, and the non-hyphenated terms also go together. So "selling-short" is undone by "buying-back", and "buying" is undone by "selling".

Bid/Ask Spread

There is an important notion of bid/ask spread. The bid price is the price at which you may sell your currency pair for. The ask price is the price at which you must buy the currency pair. The ask price is always higher than the bid price. The market makes its profits from charging the ask price for a currency pair and buying it from someone else at the bid price. The bid ask spread can range from 5

to 20 pips (or more in rare cases or exotic currency pairs). The bid ask spread increases when there is uncertainty about what is going to happen in the market.

Forex Orders

There are two types of Forex orders. The first is the market order and the second is the entry order. When you access the trading platform, you will be able to choose either a market or entry order.

A market order is an order to buy or sell a currency pair at the market price the instant that the order is processed. When a market order is placed, you are simply saying "I'll buy the currency pair, at whatever price it is at when my order gets processed." This is too risky. Market orders should be avoided entirely with the 4xtrend method. Market orders tend to compel the trader to act on impulse instead of according to their plan.

An entry order is an order to buy or sell a currency pair when it reaches a certain price target. This can be any price in theory. You could set an entry order for the low price of a time period, or the high price of a time period. Forex Sailing shows you how to set an entry order (or you can follow any of our entry order techniques). The open price is explained in the next few pages. You should exclusively use entry orders. When you place an entry order, you are simply saying "I want to buy this currency pair at a certain price, if it never reaches that price, I don't want to purchase the pair." An entry order allows you to pick a price and place an order to buy at that price. This is what you want to do. Do not worry that you are going to miss a trade; new trades are constantly developing and if your entry order doesn't get filled you can't lose any money. Lear not to get upset when an entry order is not filled. You are saved most of the time the order isn't filled because the currency pair did the opposite of what you thought and you would have lost

money if it got filled. Do not get upset when orders are not filled. When orders are not filled, it means you never risked any money!

Stop/Limit Orders

After your entry order is placed, you can set a stop and limit order if you desire to. Stop and limits are both ways to exit a trade after the trade is entered. You may also not place a stop or limit order if you are going to monitor the trade (recommended for the 4xtrend trader). Stop and limit orders are used if you have entered a trade and cannot monitor it afterward. A stop order is used to stop losses. A limit order is used to redeem profits. Stops and limits depend on the direction of the entry order. Assume that you placed an entry order to BUY EUR/USD for 1.6100. An example of a stop order would be an order to sell at 1.6081. If the stop order were executed you would lose 19 pips. The limit order for the same trade could be for somewhere around 1.6171, if the limit order were executed you would have made 71 pips. Now assume that you placed an entry order to SELL EUR/USD for 1.6500. If the stop order was for 1.6530, you would buy back the currency at a loss of 30 pips if the currency traded at the stop price. If the limit order was 1.6420, then the EUR/USD would be purchased back when it traded at 1.6420 for a profit of 80 pips. Here is a diagram of where the appropriate stop/limit orders are placed in relation to the type of trade you are placing. The green represents buying and the red represents selling. Notice how the stop/limit orders undo the entry order.

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