1 Forex Trading - Turn $1,260 into $12,300 in 30 days trading Foreign Currency & learn how to make $96,000 providing currency research online 2.pdf - FOREX - sebaw83

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p ro f es s io n a l f in a n c e

INTRODUCTORY MANUAL

FOR

The 10 Keys to Successful Trading

Technical Analysis Applications for the Currency Markets

Authored By: Jared F. Martinez

ForexTips.com

407-740-0900

mechanical, including photocopying, recording or by any information storage or retrieval systems, without the express

written permission from the author and publisher. All materials contained herein have been copyrighted. Reproduction will

be in violation of all Copyright Laws. Violators will be prosecuted.

While attempts have been made to verify the accuracy of information provided in this manual, neither the author nor the

publisher assumes responsibility for errors, inaccuracies or omissions.

There are no claims by the Author, Jared F. Martinez, or Market Traders Institute, Inc., ForexTips.com or any of its

directors, employees, and affiliated instructors that the trading strategies or methodologies in this manual will result in

profits and will not result in losses. This manual is not a guarantee to produce profits. Currency trading on the FOREX and

trading results in general vary from individual to individual and may not be suitable for everyone. All strategies,

techniques, methodologies and trades contained in this manual should not be construed as an invitation to enter and

trade in the market.

Each trader is responsible for his or her own actions. Your downloading of this manual confirms your agreement with the

Statement of Risk, constitutes your agreement to this disclaimer, confirms and exempts the author, publisher and

Instructors from any liabilities or litigation.

Market Traders Institute, Inc .

www.markettraders.com

INTRODUCTORY MANUAL

TABLE OF CONTENTS

Chapter 1: What is the FOREX?

Chapter 2: A Trader’s Vocabulary.

Chapter 3: Reading Candlestick Charts.

Chapter 4: Types of Orders.

Chapter 5: Introduction to Everest Charting Software. (Omitted)

Chapter 6: The 10 Keys to Successful Trading. (Omitted)

Key 1: Equity Management

Key 2: Buy and Sell Signals

Key 3: Bulls vs. Bears – Introduction to Highs, Lows, Support

and Resistance

Key 4: Price Swings

Key 5: Fibonacci Ratios

Key 6: Trends and Trendlines

Key 7: Trading Trends with Fibonacci Ratios

Key 8: Trading Trend Reversals or “The King’s Crown”

Key 9: Trading Consolidation with Fundamental

Announcements

Key 10: Protective Stop Losses and Murphy’s Law in Trading

Chapter 7: Let’s Get Started! (Omitted)

Chapter 8: 3-Phase Post Training. (Omitted)

Chapter 9: DealBook FX Dealing Station Software Manual. (Omitted)

Chapter 10: Recommended Reading. (Omitted)

A Traders Mission And Goal

It is the mission of the trader to become a financially successful long-term

trader. This can be achieved when the trader adopts and accepts The 10 Keys

of Successful Trading . The trader must commit to live by the three disciplines

that create the successful trader.

1. The trader must believe in The 10 Keys to Successful

Trading and merge them into his personality. His

success is dependent on creating a trading plan, and

maintaining the discipline to TRADE THE PLAN!

2. The trader must commit himself to continued education

and learn as much as he can about technical analysis and

the psychology of successful trading. He must use logic,

and not his emotions, in trading. The trader must learn to

trade in control, not out of control!

3. The trader must map out a sound plan of equity

management to insure a return on his investment. A

successful plan is to trade no more than 20% of a margin

account and risk no more than 5 to 10% of that account on

any single trade.

Levels Of A Trader

LEVEL ONE: Beginner Trader - To study and paper trade for a

minimum of one month with imaginary money, gaining the

experience required to establish a track record of profitable

performance.

LEVEL TWO: Advanced Beginner - To trade one or two lots with

real money, working through emotions and establishing a track

record of making money.

LEVEL THREE: Competent Trader - To trade in control with

equity management, achieving a financial return.

LEVEL FOUR: Proficient Trader - To trade based on my belief,

education, and experience and achieves a financial return.

LEVEL FIVE: Expert Trader - To mechanically execute profitable

trades with no emotion.

CHAPTER 1 - WHAT IS THE FOREX?

FOREX = FOR eign EX change

You can trade 24 hours a day

The FOREX is larger than all other financial markets COMBINED

The Foreign Exchange (FOREX) market is a cash (or “spot”) interbank market

established in 1971 when floating exchange rates began to materialize. This

market is the arena in which the currency of one country is exchanged for those

of another and where settlements for international business are made.

The FOREX is a group of approximately 4500 currency trading institutions,

including international banks, government central banks and commercial

companies. Payments for exports and imports flow through the Foreign

Exchange Market, as well as payments for purchases and sales of assets. This

is called the “consumer” foreign exchange market. There is also a “speculator”

segment in the FOREX Companies, which have large financial exposures to

overseas economies participate in the FOREX to offset the risks of international

investing.

Historically, the FOREX interbank market was not available for small speculators.

With a previous minimum transaction size and often-stringent financial

requirements, the small trader was excluded from participation in this market. But

today market maker brokers are allowed to break down the large interbank units

and offer small traders the opportunity to buy or sell any number of these smaller

units (lots).

Commercial banks play two roles in the FOREX market:

(1) They facilitate transactions between two parties, such as companies

wishing to exchange currencies (consumers), and

(2) They speculate by buying and selling currencies. The banks take positions

in certain currencies because they believe they will be worth more (if “buying

long”) or less (if “selling short”) in the future. It has been estimated that

international banks generate up to 70% of their revenues from currency

speculation. Other speculators include many of the worlds’ most successful

traders, such as George Soros.

The third category of the FOREX includes various countries’ central banks, like

the U.S. Federal Reserve. They participate in the FOREX to serve the financial

interests of their country. When a central bank buys and sells its or a foreign

currency the purpose is to stabilize their own currency’s value.

The FOREX is so large and is composed of so many participants, that no one

player, even the government central banks, can control the market. In

comparison to the daily trading volume averages of the $300 billion in the U.S.

Treasury Bond market and the approximately $100 billion exchanged in the U.S.

stock markets, the FOREX is huge, and has grown in excess of $1.5 trillion daily.

The word “market” is a slight misnomer in describing FOREX trading. There is no

centralized location for trading activity (“pit”) as there is in the currency futures

(and many other) markets. Trading occurs over the phone and through the

computer terminals at hundreds of locations worldwide. The bulk of the trading is

between approximately 300 large international banks, which process transactions

for large companies, governments and for their own accounts. These banks are

continually providing prices (“bid” to buy and “ask” to sell) for each other and the

broader market. The most recent quotation from one of these banks is

considered the market’s current price for that currency. Various private data

reporting services provide this “live” price information via the Internet.

There are numerous advantages for parties wishing to trade in the FOREX.

They include:

Liquidity: In the FOREX market there is always a buyer and a seller! The

FOREX absorbs trading volumes and per trade sizes which dwarfs the

capacity of any other market. On the simplest level, liquidity is a powerful

attraction to any investor as it suggests the freedom to open or close a

position at will 24 hours a day.

Once purchased, many other high-return investments are difficult to

sell at will. FOREX traders never have to worry about being “stuck”

in a position due to lack of market interest. In the 1.5 trillion U.S.

dollar per day market, major international banks a “bid” (buying) and

“ask” (selling) price

Access : The FOREX is open 24 hours daily from about 6:00 P.M.

Sunday to about 3:00 P.M. Friday. An individual trader can react to news

when it breaks, rather than waiting for the opening bell of other markets

when everyone else-has the same information. This allows traders to take

positions before the news details are fully factored into the exchange

rates. High liquidity and 24 hour trading permit market participants to take

positions or exit regardless of the hour. There are FOREX dealers in every

time zone, in every major market center (Tokyo, Hong Kong, Sydney,

Paris, London, United States, etc.) willing to continually quote buy and sell

prices.

Since no money is left on the market “table,” this is what is referred

to as a “Zero Sum Game” or “Zero-Sum Gain.” Providing the trader

picks the right side, money can always be made

1 Forex Trading - Turn $1,260 into $12,300 in 30 days trading Foreign Currency & learn how to make $96,000 providing currency research online 2.pdf

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