Very shortly you will discover the simplest, and highest probability trading strategy used by wall street, the city and professional traders to rake in millions in profit every year.
I’ll be revealing all the secrets your need to develop a reliable Forex trading strategy that will equate to real cash, provided you take the time to understand and practice everything contained here. From part time extra cash to a full scale multi-million a year operation, it’s up to you. This guide will provide the blueprint, in a simple and concise 10 step plan.
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It doesn’t matter if your brand new to trading, you have already started but not made any real money, or you’re a seasoned sniper. This guide will provide you with an excellent, proven and high probability trading strategy that can be followed by anyone. It can dramatically cut down your ‘trading time’ freeing up the rest of the day, increase the win probability of every trade you make and boosts the profit of winning trades whilst minimising the losses on losing trades. Who wouldn’t want that?
So what is Forex?
If you don’t already know Forex (or foreign exchange, sometimes shortened to FX) is simply the trading of currencies. You buy one currency with another, and hold on to them with the idea they will increase, or decrease in value. You can make money from both the rise and fall of price, you essentially bet on if weather you think a price will rise or a price will fall.
I will be showing you how to do this throughout the rest of the guide by analysing simple patterns in trading charts. These simple patterns are price reflections of real world events such as breaking news, market greed, market fear, political / economic climate and many other factors. The important thing to understand is you need not be concerned with following these causes. All the data you can ever know about a currency or stock is contained with in the price movement. It’s called technical analysis, but honestly it isn’t that technical, at least not the way I’m going to show you.
By the time you finish you’ll know exactly what to look for on a trading chart, just a few simple price action indicators that have the highest probability of being profitable (why use anything else except the most proven profitable and easy to identify chart patterns)? You’ll also discover how to ensure the signal is genuine, how to enter the trade, when to exit, plus an easy plan that lets you work just one or a few hours a day.
I can’t guarantee you will make money, some people simply can’t stick to the plan and trading turns into gambling for them, more on this later. However there is no other guide online that gives you the inside track to profits in such a simple and easy to follow step by step plan. Plus, it’s 100% free. Many other sites hide this information behind paid subscriptions and expensive webinars.
If you don’t already have a trading platform, you will need one to follow along with this guide, you can open a demo account from any of our recommended brokers with no obligation.
The strategy doesn’t rely on using complicated charting tools, like RSI, MACD, Elliot waves, Fibonacci or any of those messy, confusing and largely low probability ‘indicators’. It’s a few simple candle stick patterns to identify, and a solid plan to carry out the trades. Simple really is best when it comes to trading, why make things complicated when the highest probability trades are the simplest?
If your wondering, if it’s so simple why doesn’t everyone do it? I’ll be answering the question in full though out the guide, and by the time you get to the end you will know exactly what stops people profiting even with this knowledge, and how to avoid those painful and costly mistakes.
Why trade Forex and not stocks?
Volatility and volume are a lot higher with Forex, this gives us more opportunity for trades with lower risk and higher reward. There are a lot more currency trades made everyday than with stocks. Forex trading is used mainly for business and personal uses (like going on holiday, buying business equipment from overseas, countries lending other countries money etc), and not just pure speculations. This translates into for more reliable price action indicators we can use to asses the market and predict is momentum. This is opposed to stocks which can be largely speculative and can be ‘artificially’ controlled by a few strong players. This makes charting patterns less reliable as they can be influenced by those with strong will. As you can imagine this is not a good thing, so we stick with Forex.
You can also trade indices, which are a combination of the top few hundred stocks in any given index. For example the S&P 500, the FTSE 100 and 250, the DOW, NASDAQ and NYSE. These are more difficult to control and are subject to the same fear and greed cycles that effect Forex in a clear, high probability manor. The recommendation is to stick with Forex first, and as you progress you can start to incorporate index trades.
Forex is also traded for the most part 24/7, this has many benefits. It eliminates the risk of ‘overnights’ where you wake up to find a stock price vastly different from when the market closed the day before. Having this 24 hour cycle means any stop loss (a mechanism in your trading platform to automatically close losing positions) you have in place will get triggered no matter what, keeping you out of potentially costly trades and reducing stress levels.
Forex’s massive volume (some $5 trillion traded daily) is very beneficial as it creates genuine price action, once a currency is clearly too cheap, a lot of buyers will step in and buy a lot of it, and the market will rise. There are always buyers and sellers who are not trading Forex on exchange platforms and looking at charts, they are just looking at price because it relevant to their business. This is what makes the simple price action chart patterns so reliable as they represent genuine trading activity in the real world, not speculators or stock traders trying to ‘fake out’ the market.
Forex has the highest trading volume of approximately $5 trillion daily, to put that in to perspective here is what $1 trillion dollars looks like:
[This is what $1 trillion looks like, Forex has $5 trillion daily volume]
That is an obscene amount of cash, twice the GDP of the UK every day. You can see trying to control the flow of that much liquid cash being virtually impossible. Even when the US federal reserve decides to do quantitative easing and starts literally printing money as fast as it can, it only effects dollar rates a tiny amount in the short and medium term. This is a very important thing to know, as it gives chart patterns genuine credence. It shows that the global sentiment is heading one way or another with meaning.
If you have already traded before, you can move on to the 2nd part of the price action course now.
If you have never traded Forex before, I’ll need to run down a few terms and explain some basics so the rest of the free course makes sense to you. Forex is traded electronically using a platform, I’ll show you the best one to use a bit later. First I’ll explain a few terms:
Pip: This is the smallest amount a currency can be traded. For example the USD/ EUR is 0.0001. When you make a trade the value you set per pip is for each 1/1000 of 1% or equivalent depending on which pair you trade. This means you can make large amounts of money, with only relatively small movements in price (and lose large amounts, I’ll show you to stay in the black later).
Leverage: This is the amount of money you can trade above your initial margin (money in your account). For example if you have 15:1 margin you can trade $15,000 with just $1000.
Margin: Margin can be either ‘free to trade’ or ‘used’ and is the amount required to open a new position, or maintain an open position. If your margin drops bellow the required amount you will get a notification asking you add funds. If you don’t add funds by the deadline your position will automatically be closed.
Spread: This is the difference between the buy and sell prices. It’s the same principal as when you buy currency at an airport, they have 2 prices and the profit the company makes is the difference between the two prices. In Forex trading, it’s typically 1 – 3 pips for major FX and up to 10 – 100 pips for some exotic currencies.
Short / Sell : If you think a currency will decrease in price, you place a short by selling the currency. This lets your profit from a downward trend.
Long / Buy: The opposite of a short, if you think the price will rise you go long and buy the currency. This lets you profit from an upward trend.
BTX or BTC: A new digital currency called bitcoin. This is a now popular currency to trade.
Stop loss: Your stop loss is a setting in your trading platform that will close a losing position automatically once it reaches a certain price. These are very handy keeping you out of losing trades and lowing your trading time.
Limit order: The opposite of stop loss, a limit order will close a position once a certain profit level is reached. Using both stops and limits you can effectively trade hands free once your trade is live.