Power Forex Profit Principle

transcript

PowerForexProfitPrinciples

SPECIALNOTE:ThisistheMarch,2009updatetowhatIthinkisoneofthemostpowerfulreportsIhaveeverpublished,andit’sindirectresponsetotherequestsmystudentshavebeensendingmeforyears.They’veessentiallybeenpleadingwithmetoshowthemhowtheycanpotentiallyprofitintheForexmarkets.Here’sthedeal:Justlikeanyothermarket,most“traders”arelosingtheirshirtwhentheytradeForex.That’smainlybecausethey’regoingaboutitallwrong,andmanyhavebeenmisleadbyunscrupulousindividualsorquestionablebrokerspromisingseeminglyovernightriches.Forexisstillalittlelikethe“wildwest”,sothere’snaturallyalotofconfusionandmisinformationoutthere.Inthisspecialreport,PowerForexProfitPrinciples,I’mgoingtocovermanytacticsandstrategiesusedbysuccessfulForextradersallovertheworld.Butunfortunately,onlyabout5to10percentofallForextradersareactuallyawareofthisinformation.Iwouldstronglysuggestyouprintoutthisreportandreaditmorethanonce. GoodTrading,

BillPoulos

PLEASEPRINTTHISREPORTNOW!Pleasetakeafewsecondsandprintthisentirereportrightnow.Here’swhy: Whenyouprintthisreportout,thechancesthatyou’llactuallyreaditandlearnsomethingnewabouttradingtheForexmarketswillincreasedramatically.Ihaveacollectionofdigitalreportsonmycomputer,andtheonlyonesI’vereadallthewaythrougharetheonesI’veprintedout.

Whenyouprintthisreportout,youcanreaditanywhereinyourhouse(orontheroad,forthatmatter).Ilovemyfamily,butmyofficeissmackdabinthemiddleofthehouse,soit’sahightrafficarea.SometimestheonlywayIcangetasolidchunkoftimetoreadsomethingIfindonlineisifIprintitoutandtakeitsomewhereelseinthehouse.

Thereisanactivityinthisreportthatrequiresyoutoanswersomequestions.Theimpactofthisactivitywillbemuchgreaterifyouactuallygetoutapencilorpenandactuallywriteonthisreport.Ihighlyrecommendyouspendafewmomentscompletingthisactivity.Yourfuturecoulddependonit.

DISCLAIMER: Forex (off‐exchangeforeigncurrency futuresandoptionsorFX) trading involvessubstantial risk of loss and is not suitable for every investor. The value of currencies mayfluctuateandinvestorsmayloseallormorethantheiroriginalinvestments.Risksalsoinclude,butarenotlimitedto,thepotentialforchangingpoliticaland/oreconomicconditionsthatmaysubstantially affect the price and/or liquidity of a currency. The impact of seasonal andgeopolitical events is already factored intomarket prices. The leveraged nature of FX tradingmeans thatanymarketmovementwillhaveanequallyproportionaleffectonyourdepositedfundsandsuchmayworkagainstyouaswellasforyou.Theuseof leveragecanleadto largelosses as well as gains. Under certain conditions you may fins it impossible to liquidate aposition. This can occur, for example, when a market becomes illiquid. The placement ofcontingentordersbyyou,suchas“stop‐loss”or“stop‐limit”orderswillnotnecessarilylimitorpreventlossesbecausemarketconditionsmaymakeitimpossibletoexecutesuchorders.Innoeventshouldthecontentofthiscorrespondencebeconstruedasanexpressorimpliedpromiseorguaranteethatyouwillprofitorthatlossescanorwillbelimitedinanymannerwhatsoever.Past results are no indication of future performance. Information contained in thiscorrespondence is intended for informational purposes only and was obtained from sourcesbelievedtobereliable.Informationisinnowayguaranteed.Noguaranteeofanykindisimpliedorpossiblewhereprojectionsoffutureconditionsareattempted.Revision06‐20090308.

100,000Traders&TheirForexFrustrationsDearTrader,Theinformationyouholdinyourhands(orareviewingonyourcomputer)hasthepotentialtodramaticallyincreasethepipsyoupulloutoftheForexmarkets,anditdoeshavethepotentialtochangeyourlife.That’snothype,becausethepotentialisreal.It’suptoyoutomakeithappen,andmygoalwiththisreportistohelpyoudiscoverinhoursanddayswhattookmedecadestorealizeaboutsuccessinthemarkets.I’vebeentradingthemarketssince1974,andI’vebeenteachingthousandsofstudentsaroundtheworldwhatittakestosucceedinthemarketssince2001.Sosomepeoplethinkofmeasa“grizzled”tradingveteranbecauseI’veseensomuchoverthepast3decades.Sure,I’vescrapedmykneesandhavebeenthroughafewbumpsandbruisesovertheyears,butIseemyselfasafilterforyou,orsomeonewhohastheabilitytosiftthroughallthejunkandnoisethat’soutthereandtellittoyoulikeitis.So,Imaycomeacrossalittleharshinthisreport,butIdon’tbelieveinsugar‐coatinganythingorgivingyoufalsehopesofsuccess.Thereareenoughswindlersdoingthatalready.Iwanttogiveyouthefacts,like‘emornot,soyou’reempoweredtotakeactionandmakepositivedecisionsonhowtosucceedintheForexmarkets.

TheyNearlyBeggedMetoHelpThemForyearsnow,mystudentsandreadershavebeenpleadingwithmetoshowthemhowtotradetheForexmarkets.AndmanyofthemactuallytookmystocktradingcoursesandstartedtellingmeaboutallthemoneytheyweremakingbyapplyingthosecoursestotheForexmarkets.Theyessentiallyprovedtomewhat

Iknewtobetrue–marketsaremarkets.There’snothingmagicalabouttheForexmarkets,becauseallmarketsareultimatelydrivenbyhumanpsychology–fearandgreed–andsupplyanddemand.Sure,everymarkethasitsownpeculiarities,butifyouunderstandhowthebasicdriversofhumanemotionswork,youcanpotentiallysucceedbiginanymarket.AsIresearchedtheanswerstomystudents’questionsaboutForex,themoreIrealizedthattoomanytradersweregetting“suckered”and“taken”byless‐than‐honestForex“brokers”,aswellasthe“holygrail”peddlerswhowerepreyinguponthewide‐eyeddesperationoftraderswhothinktheycan“getrichquick”tradingthepopularForexmarkets.Excuseme,butwhatIfoundwasdisgusting.Ifoundmoremisinformation,lies,andhypeaboutForexthatIhadseeninsometime.Andthat’swhenIdecidedtoputallmyenergyintodispellingthisjunksoIcouldgivemystudentsandreadersasourceoffactual,actual,solid,realisticForexProfitPrinciplesthattheycouldusetopotentiallyprofitintheForexmarketsagainandagain.SotomakesureIdidn’tmissanybigquestionsorconcerns,Isurveyedover100,000activetradersseveraltimesandaskedthemonequestion:

Ifyoucouldsitdownandhavelunchwithme,whatisthetopquestionyouwouldaskmeaboutForextrading?

That’sit.Plainandsimple.Almostimmediately,thequestionsbegantopourin.Youknowwhatit’slikeMondaymorningwhenyoucheckyouremailandthere’satonofitfromovertheweekend?Well,itwaslikethatmultipliedbyahundred,orathousand.PeoplewereconfusedmorethanIrealizedaboutForex.Then,morerecently,IaskedasimilarquestionbutthistimeIaskedmyreaderstoposttheirreplytomyForexblog.Onceagain,hundredsuponhundredsofcommentswereposted.Andtheamazingthingwasthatthecomments,questions,andchallengeswerenearlyidenticaltomypriorsurvey!

IWasShockedandExcitedQuitehonestly,theseresponsesoverwhelmedme.AtfirstIthoughttomyself,“HowcanIpossiblyaddressallthesequestions?There’sjustnotenoughtimeto

doit!”ButthenInoticedsomethingamazing–Istartedseeingthesamequestionsoverandover.SoIbegantoputthemintocategories,andafteralong12hourday,Iwasshockedandexcited.

Why?Well,Iwasshockedtofindthat,indeed,mostofthequestionsfellneatlyintoahandfulofbroadcategories.ButIwasexcitedbecauseIhadpersonallyexperiencedwhatallthesequestionswereasking.AndIknewwithoutashadowofadoubtthatIcouldhelpthesetraders.Butitgetsbetter,becauseIrealizedthatifasurveyof100,000tradersresultedinacore,commonsetofquestions,thenmillionsoftradersallaroundtheworldprobablyhadthesameconcerns.Sothisreport,thePowerForexProfitPrinciples,ismyanswertothetop

questionsIreceivedfrommyreadersandstudentsaboutForextrading.Nowlet’sgetrightintothe“nittygritty”andclearupthesequestionsonceandforall.Areyouready?Let’sbegin.

AreYouDependent…orIndependent?(NEW)WhenitcomestotradingForex(oranymarket),Ifindtherearetwotypesoftraders.Andthetypeoftraderyouarecoulddrasticallyimpacttheamountofmoneyyoumakeinthemarkets…itcouldevenforeverdetermine,inpart,whattherestofyourlifelookslike,howmuchlongeryouworkaregularjob,whereyougoonvacation(andhowoften),whereyoulive,andevenyouroverallhealth.Thatmaysoundlikeanexaggeration,butifyouplanonsupplementingorreplacingyourcurrentincomewithtradingForex,thenIthinkyou’llfindthosestatementsabovearequiteaccurate.Here’swhy…

You’reprobablywellawareatthisstageinyourlifethatanythingthatrequiresalmostlittleornoeffortproduceslimited,temporary,ornonexistentresults.Andthatanythingthatrequiresyoutothinkforyourselfproduceslasting,ongoing,andperhapsevenpermanentresults.ThisisespeciallytruewhenitcomestotradingtheForexmarkets.Overtheyears,I’veobservedthattherearetwotypesof“traders”.Now,Irealizethesearegeneralizations,buttheyillustratetwoverycommonmindsets.Whichoneareyou?TheDependentTrader:Thistypeofpersonisusuallylookingfortheeasywayout,lookingtomakeaquickbuck,orwantstostrikeitrich.Theythinkit’spossibleto“followthecrowd”,blindlyplacetradespumpedoutbyasystemthat“can’tlose”,andquittheirjob.Thebottomlineisthatthistypeoftraderisdependentonsomeoneelsefortheirfinancialsuccess–forever,forlife.Yes,TheDependentTradercanbesuccessfulwiththisattitude,butIbelievetheoddsofsuccessarelow(probablyaround5%).TheIndependentTrader:Thistypeofpersonwantstohaveasmuchcontroloftheirfinancialdestinyaspossible.Theyunderstandthatwhentheyknowhowthemarketswork,they’reempoweredtoplaceinformedtradeswithouthavingtorelyonsomeoneelse.SomeonewhoisanIndependentTraderknowstheyaremaximizingtheiroddsofsuccessinthemarkets,whichcanmaketheirfinancialandlifelongdreamscometruethatmuchmorequickly.Thebottomlineisthatthistypeoftraderholdsthekeystothekingdom,andhascontroloftheirfinancialfuturefortheirentirelife,nomatterwhathappens.IfyouthinkyoumighthavealittleoftheDependentTradermentalityinyou,that’sOK.Iunderstand,becauseyouarenotalone.It’sonlynatural.ButwhenyoulearntobreakoutofthatmindsetandmovetowardbecominganIndependentTrader,everythingcanbegintochange.That’swhyoneofmygoalswiththisreportistohelpmakeyouanIndependentTrader.Willthisreportalonedoit?No,ofcoursenot.However,itshouldgiveyoua“fasttrack”towarddiscoveringtherightwaytotradetheForexmarketsforyou.Iwantyoutounderstandandfeelthepower,peaceofmind,andexcitementthatcomewithplacingatradeindependently.Everythingmakessense.Everythingis

doneforareason.Youknowwhattodo,nomatterwhatthemarketdoes.Everysingletime.It’sawesome…

TheCurrentStateoftheForexMarket(NEW)Forexismorepopularthanever.Let’stakealookattheaveragedailyturnoverintheForexmarketsoverthepast20years.

$3.2TRILLIONadayin2007,withnosignsofslowingdown.ThisspellsopportunityforyouasaForextrader,andthisisoneofthebesttimesIcanrecalltolearntotradeandtostarttradingtheenormouslypopularandpotentiallyprofitableForexmarkets.Why?Withtheworld’sfinancialmarketsinturmoil,megatrendsintheForexmarketshaveseldombeenbetter.Yousee,thepressuresthatarecausingdisruptionin

thestockmarketsaroundtheworldarealsocausingawesometradingopportunitiesintheForexmarkets.WithForexyoudon’tneedtowonderwhenthemarketwillstopgoingdownorwhenitwillrecoverandhowlongthatwilltake.WithForex,thesixmajorpairsarealmostalwaysupordowninwhatIcallmegatrends,providingtradingopportunitiesrighthere,rightnow.Theproblem,though,isthattoomanytradersaren’tsurehowtotakeadvantageofthoseopportunities,orhowtospotthosetradestheycouldbemaking.OrifyouhavenevertradedtheForexmarkets,you’rewonderingabouthowyoucouldparticipate.Oryouarewonderinghowtocontrolriskandgetintoafreetradesituationwhentradingthesemarkets.Ifyou’relikemanyindividuals,thenyouknowyoumustcontrolriskfirstandforemost,butaren’tsurehowtodothat.Asofthiswriting,theU.S.Dollarhasralliedagainstmostmajorcurrencies,thecontinuedeconomicfalloutfromthehousing,bankingandcreditcrises,andtheweakeningeconomy,buttheriskofmassivedollarinflationinthefaceoftheunprecedentedU.S.governmentspendingcouldatsomepointsendthedollarinreverse.ButregardlessofwhathappensfromheretheDollarwillcontinuetoprovidegreattradingopportunitiesversustheothermajorcurrenciestimeandtimeagainandyoucanbesuresomeonewillberidingalongrunofhundreds,oreventhousandsofpipsasitdoes.Why?Becauseasgovernmentsaroundtheworldscrambletoprovideliquiditytothecreditmarketsandrefloattheeconomies,theywillbedirectlyimpactingthevalueoftheirrespectivecurrenciesastheyrelatetooneanotherwhichthenactstodrivethesixmajorcurrencypairsupordowninverytradabletrends.Economistsandothermediagurusarealltryingtopredictwhatwillhappentotheeconomy,whenitwillrecoverandwhenthestockmarketswillrecover.Allofthisisgenerallyunknowable,butForextradersdon’thavetowaitforarecovery.Atfirstglance,youmighttakesuchgloomyreportingbythegovernments,theeconomists,andthemediaandask,“WhywouldIwanttotradeinthismarket?”Here’swhy:Thoseeconomicdifficultiesaroundtheworldcreatetradingopportunitiesalmostdaily.And,asIsaid,rightnow,theyarecreating

extraordinaryopportunitiesintheForexmarkets.Whenamegatrenddevelops,youhavetheopportunitytogetonboardandridethetrendandthengetoffbeforethetrendreverses.WhichmeansthisisagreattimetobegintradingForexbecauseyoucouldhavetheopportunitytocatchahugerun.ThisisalsothebesttimetoLEARNtotradeForexbecauseyoucantakeyourtradingmethodasyoulearnitandapplyittothemarketstowatchthosebreakoutshappen.Plus,you’llbeabletogetarealhands‐onexperienceunderstandinghowthosebreakoutsform,whereyouwouldenterandexitthemarketandhowyouwouldprotectyourselfwithproperriskmanagement.So,ifyou’vebeensittingonthesidelineswaitingtotradeForex,IthinknowisoneofthebesttimestobeginortolearntotradeForexbecauseofthegreattrendsdrivenbytheeconomicturmoilintheworld.TheForexmarketsarecreatingtradingopportunitiesrightnow.Ifyou’vebeenmissingthosemarket‐movingopportunities,don’tmissanotherone.Ithinkit’simportanttosay,though,thatasForextradingcontinuestogainpopularityoneoftheunderlyingproblemsyoumayfaceistheideathatyoumusttradeForex‘to‐the‐minute’(ordaytrade)–thisdrivesyououtofthepictureifyoucan’tcommitthatkindoftime,anditcreatesinevitablelossesifyou’reill‐preparedforthedemandsofdaytrading.IbelievethistalkabouthavingtodaytradeForexiswrong;thatitis,inpart,drivenbybrokers,whoearnthedifferenceinthespreadoneverytrade,andwhowouldnaturallywanttheconstantflowofspreadprofits.CanyoudaytradeForex?Yes.(IevenhaveaForexdaytradingmethodIteachmystudentswhocanhandleit–butit’snotforeverybody.)Doyouhaveto?Notatall.

Infact,recentanalysisofpartoftheonlineadvertisingworldconfirmsthatbrokersdominateseveralsectorsoftheForexadvertisinglandscape,eventothepointofdrivingupadcosts.Atfirstglance,thiswouldappearcounterproductive,untilyourealizetheinfluxofhundredsofthousandsofnewtraderstoForexispayingforitselfintheformofnewaccountsandspiralingspreadprofits.WithmorecompaniescomingonlinetoofferservicesrelatedtoForex,youmusttakeasmartapproachtotradingcurrencies.ThereisalogicalreasonthatthenumberofbrokersofferingForextradeshasincreaseddramaticallyoverthelastfewyears:brokersaremakingmoneyonyourtrades,whetheryoudoornot.Infact,youshouldrepeatthatlinetoyourself:MyForexbrokermakesmoneywhetherIdoornot.Thisisnottoblamebrokers,butitistopointoutwhatisasimplefact:ifyou,thetrader,donottakeaneducatedapproachtotradingForex,youwillloseyourmoney.ItshouldalsoremindyouthatyouneedtoknowHOWtotradeForex.Youmusthaveacompletetradingmethodthathelpsyoutakeadvantageofeveryopportunitythemarketoffers.WhileForexpresentsexcitingandprofitabletradingopportunities,itisveryimportantthatyoulearnhowtotradecurrenciesandthatyouhaveatradingplanthatyoucanexecuteeverydayoftheweek–nomatterwhathappensinthemarkets.ToomanytradershavejumpedintotheForexwaterswithoutproperplanningorlearning,andhavedrowned.Don’tbeoneofthem.Instead,beoneofthesuccessfulForextraderswhohaveasolidtradingmethodandexecutetheirtradingplandiligentlytotakemoneyoutofthemarket,againandagain.

IhearalotaboutForextradingandamveryinterestedinlearningmoreaboutit.Canyougive

meabriefoverviewofthebasicsofForex?UnlikestocksandfuturesthattradethroughexchangesortheNASDAQ,Forextradingisdonethroughmarketmakersthatincludemajorbanksaswellassmalltolargebrokeragefirmslocatedaroundtheworldwhocollectivelymakeamarketona24/7basis.TheForexmarketisalways“open”andisthelargestfinancialnetworkintheworld(dailyaverageturnoveroftrillionsofdollars).ForextradinginvolvestradingcurrencypairssuchastheEUR/USDpair(Euro/USdollarpair)whereabuyerofthispairwouldactuallybebuyingtheEuroandsimultaneouslysellingshorttheUSdollar.TheformatofaForexpairisYYY/ZZZ,wherethefirstcurrencyiscalledthe“base”currencyandthesecondcurrencyiscalledthe“counter”currency.ThepriceforaForexpairisexpressedintermsofthecountercurrency.Forexample,thepriceoftheEUR/USDpairisexpressedinUSdollars(thecountercurrency)as1.3667.Thismeansthatthebasecurrency,theEurointhiscase,equalsUS$1.3667.ThepriceoftheUSD/JPYpairisexpressedinJapaneseYenas108.02,becauseforthispairtheJapaneseYenisthecountercurrency.Thismeansthatthebasecurrency,theUSdollarinthiscase,equals108.02JapaneseYen.Pricesareexpressedinpips,whicharenothingmorethantheminimumincrementthatacurrencypairpricecanchange.Forexample,iftheEUR/USDpricechangesfrom1.3790to1.3791,thepriceissaidtohavegoneupby1pip.Mostmajorpairsarepricedto4decimalswhichistheequivalentof1/100thofonepercent.TheexceptionwouldbetheJapaneseYenpairthatonlytradesto2decimals.Thisisbecausethereareusuallyover100yentothedollar.Forexpairquotesareonabid‐askbasis.Thebidisthepricethatthemarketiswillingtopayaselleratapointintimeforaspecificcurrencypair.Theaskisthepricethatthemarketiswillingtoselltoabuyeratapointintimeforaspecificcurrencypair.Thedifferencebetweenthebidandtheaskiscalledthebid/askspread.Forexample,atypicalEUR/USDquotecouldbe1.3784bid1.3787askwhichisaspreadof3pips.Sincethespreadishowthemarketmakersarecompensated,thereisnocommissionwhenplacingatrade.

Also,itisimportanttonotethatthespreadwillvarydependingonmarketconditions.SothequoteitselfforanygivenForexpairisthebid‐askcombinationatapointintimebasedonthemarketdrivenfloatingexchangerate.Thequotationliststhebidpricefirst,thentheaskprice.FortheEUR/USDexampleabove,thequotewouldbeexpressedsimplyas1.3784/1.3787or1.3784/87.Tradingisdoneinlots,either100,000unitstandardor10,000unitminilots.Forexample,forastandardlotpurchase,iftheEUR/USDquotewas1.3784/1.3787,thenbuyinganEUR/USDpairmeansbuying100,000Eurosandsellingshort$137,870USdollars.Therefore,forastandardlotinwhichtheUSDisthecountercurrency,1pipwillequal$10($1foraminilot).Forothermajorcountercurrencypairs1pipwillrangefrom$8to$10.Forexdealersofferleverageashighas100:1andsometimeshigher.At100:1leverage,1standardlotpairinwhichtheUSDinthebasecurrencywouldrequire$1,000inmargin($100,000/100).Ontheotherhand,a1minilotpairwouldrequireonly$100inmargin($10,000/100).Iftheaccountvaluefallsbelowthemarginrequirement,thedealerwillcloseoutthetradeautomatically.

HowdotheForexmarketsoperateona24hourbasis?

Activetradingsessionsineachcountry’s’financialcentersaroundtheworldtakeplacefromSunday5:00PMESTtoFriday5:00PMEST.Forthemajorfinancialcenters,tradingstartsinSydney,thenmovestoeachfinancialcenterinthisorder:Tokyo,London(andEurope),NewYork.Thedailysessionfordailychartingpurposes“ends”at5:00PMEST(coincidentwiththeNewYork“close”),butthemarketdoesnotactuallyclose.HerearethetimeintervalsforeachofthemajorfinancialcentersexpressedasEST.

Sydneysessionstartsat5:00pmandendsaround2:00am. Tokyosessionbeginsat7:00pmandendsaround4:00am. Londonopensat3:00amandendsaround12:00am. NewYorksessionopensat8:00amandendsaround5:00pm.

Togiveyouavisualrepresentationofthis,here’safigureshowingthesamebusinesshoursforthevariousregions.InthisfigureyoucanseetheoverlapbetweentheLondon(andEurope)sessionandtheNewYorksession,between8amand11amEST.Thecurrencymarketsexperiencethehighestvolatilityandvolumeduringthatoverlap,whichalsocoincideswiththereleasesofimportantUSeconomicreleases.

Figure1‐ForexMarketsTimeline

Canyoutakemethroughatypicaltradescenario?Let’ssaythecurrentbid/askquoteforEUR/USDis1.3802/05andyouwanttobuythepairbecauseyouthinktheEuroisgoingtogainontheUSdollar.Soyoubuy1standardlot.Whenyoudothatyouareactuallybuying100,000Euros(1standardlot)for$138,050USdollars(100,000x1.3805).At100:1leverage,yourinitialmargindepositwouldbe$1,381forthistrade.Soinourexample,let’ssaytheEuropairgoesupandisnowtradingat1.3865/68andyoudecidetosellandtakeprofits.Youwouldthensellyour1standardlot.Whenyoudothatyouareactuallyselling100,000Euros(1standardlot)for$138,650USdollars(100,000x1.3865).Sinceyoubought100,000Eurosfor$138,050andsoldthemfor$138,650,youmadeaprofitof$600or60pips.IfontheotherhandtheEuropairwentdownto1.3775/78andyousoldat1.3775,youwouldhavealossof$300($138,050‐$137,750).Andagain,iftheaccountequityfellbelowthemarginrequirement,thetradewouldbeautomaticallyliquidated.However,thisshouldneverhappentoyouifyoufollowsoundriskmanagementrules.

WhattypesofordersdoIusewithForextrading?Therearedifferentordertypesfordifferenttradingneeds.MarketOrder:Thisordertypeisusedtoenterorexitthemarketimmediatelyatthecurrentquotedprice.Ifyouwanttobuyyouwillbefilledattheaskingprice.Ifyouwanttosellyouwillbefilledatthebidprice.LimitOrder:Thisordertypeisusedtobuyorsellapairatapredeterminedprice.Abuylimitorderwillonlybefilledifthemarkettrades(ask)atorbelowthelimitprice.Aselllimitorderwillonlybefilledifthemarkettrades(bid)atorabovethelimitprice.StopOrder:Thisordertypeisusedtobuyorsellapairatapredeterminedprice.Abuystoporderwillonlybefilledifthemarkettrades(ask)atorabovethestopprice.Asellstoporderwillonlybefilledifthemarkettrades(bid)atorbelowthestopprice.

HowmuchcanIexpecttomakewithForextrading?Itisveryimportanttohaverealisticexpectations.ThetruthisthatForextradingisnotagetrichquickproposition,despiteallofthehypetothecontrary.Thatdoesnotmeanthoughthatthereisn’tmoneytobemade.OneoftheappealsofForextradingisthegreatleveragethatisoffered.However,leveragecanworkfororagainstyouandthereforeitiscriticalthatyoufollowgoodtradingmethodsalongwithsoundriskmanagementprinciplestohavetheopportunitytounlocktheprofitpotentialthattheForexmarketshavetooffer.

Forexseemstobequitedifferentfromtradingstocks.Whatarethebenefitsandrisksincomparisonandwouldamuch

biggeraccountbeneeded?InadditiontotheForexattributesexplainedinthe“basicsofForexquestion”above,theForexmarketsareindeeddifferentfromthestockmarketsinthattheirpricebehaviorisdifferentwithusuallymoreabruptpriceswings.ThisrequiresdifferenttradingmethodsthanthosetypicallyusedforstocksinordertotakefulladvantageoftheprofitpotentialthatForexhastoofferwhileatthesametimedesigningtherightstrategytominimizerisk.Ontheotherhand,theyarealikeinthatbothForexandstocksaremarketsthatdeveloprepeatablepricebehaviorthatpresentprofitopportunitiesforthosetraderswithgoodtradingmethods,soundmoneymanagementprinciplesanddisciplinedtrading.BecauseofthehighleveragethatForexoffers,ForexpositionsrequireamuchsmalleraccountsizethandostockstradingsimilarsizedpositionsasForexmarginrequirementsaremuchsmallerthanstockmarginrequirements.AndsotherewardcanbemuchgreaterwithForex,butatthesametime,theriskismuchgreater.Butthiscanbedealtwitheffectivelywithgoodtradingtacticsandgoodmoneymanagementrulesthatallowformaximizingprofitpotentialandminimizingrisk.

HowdoIfindareliableForexbroker?

Unlikestockandfuturesbrokers,notallForexbrokersareregulated.Itisveryimportanttoopenanaccountwitharegulatedbrokerorbankthatisaregisteredmemberofaregulatingbody.Sincethereisnocentralmarket,thereisnoglobalregulatoryagencyresponsibleformonitoringtheactivityofthecurrencymarkets.Therefore,regulationislefttoeachcountry.IntheUnitedStatestheFederalReserveBankmonitorsthebankingsystemandtheCommodityFuturesTradingCommission(CFTC)hasjurisdictionoverallFuturesandForexactivity.Whentradingintheforeignexchangemarkets,individualsshouldonlytradewithaCFTCregisteredentitythatisalsoamemberoftheNationalFuturesAssociation(NFA)andisregulatedbytheCFTC.Fornon‐

USbroker/bankentities,besurethatthebrokerorbankisregisteredwiththatcountry’sappropriateregulatorybodies.Inadditiontoworkingwitharegulatedbroker,youwantabrokerthathaslowspreads.Thesespreadsarecalculatedinpips,whichisthedifferencebetweenthepriceatwhichacurrencycanbeboughtandthepriceatwhichitcanbesoldatanygivenpointintime.Thisishowtheforexbrokersorbanksmaketheirmoneysincetheydon’tchargecommissions.So,obviously,lowerspreadswill

saveyoumoremoney.TradingtoolsarealsoveryimportantwhenchoosingaForexbroker.Specifically,youwantabrokerthatwillgiveyougoodchartingandtradingsoftwarethathastheabilitytoplottheindicatorsthatyourtradingmethoduses.Thisbringsupanimportantpoint.Youshouldnevergolookingforchartingsoftwarefirstandthentrytouseordevelopatradingmethod.Instead,youshouldfirstgeteducatedonagoodtradingmethod(ordevelopyourown)andthenfindchartingsoftwarethatwillletyouimplementthismethod.I’veseentoomanytradersstubbornlyuseinadequatechartingsoftwarejustbecausetheirbrokergaveittothem.

Don’tmakethismistake.Thankfully,unlikestockbrokers,manyforexbrokersdoprovideyouwithveryadequatechartingandtradingsoftware,allbundledtogether.Otheraspectstowatchforwhenselectingabrokeraretheleveragelevelsandaccounttypes(standardandminiaccounts)offered.Mostbrokersofferatleast100:1leveragewhichismorethanadequateformosttraders.Somebrokersalsooffergreaterleverage,upto400:1.Thistypeofleverageiscompletelyunnecessaryastheriskrewardratiocanquicklygoagainstyouifyouuseexcessiveleverage.(I’llcoverthisinmoredetaillaterinthereportinthequestionaboutriskmanagement.)

Dependingonyouraccountsize,youwillwanttobesurethebrokeryouchooseofferstheappropriateaccounttypes.Standardandminiaccountsaretypical.Thestandardaccounttypicallyrequiresminimuminitialcapitalof$2,000ormore,whiletheminiaccounttypicallyrequires$300ormore.Leverageof100:1shouldbeavailableforeitherastandardoraminiaccount.

WhatarethebestForexpairstotrade?

IbelievethatnotallForexpairsaresuitablefortrading.Whatweshouldbelookingforastradersareliquidmarketsthathavesufficientpricemovementtomakeatradeworthwhile.Withthatinmind,thefollowingpairsarethemostwidelytraded,mostliquidpairsandtheonlyonesthatIwouldconsidertrading:

EUR/USD–Euro/USdollar

GBP/USD‐BritishPound/USdollar(oftenreferredtoasthe“Cable”)

USD/JPY‐USdollar/JapaneseYen

USD/CHF–USdollar/SwissFranc

USD/CAD–USdollar/Canadiandollar

AUD/USD–Australiandollar/USdollar

AndtofurthersimplifyForextrading,youcouldeasilylimityourtradingtothetwomostliquidandwidelytradedpairs,theEUR/USDandtheGBP/USD.Thisreallystartstoreducedemandsonyourtimefortradingactivitieswithoutgivingupgoodprofitpotential.

WhatisthebesttradingplatformandchartingsoftwareforbothbeginnersandmoreexperiencedtradersalikeandwhereshouldIobtainthemostreliabledata?

Theanswertothisquestionstartswithyourbroker.First,Ihighlyrecommendthatyouonlyopenanaccountwitharegisteredbroker.Havingsaidthat,mostForexbrokersprovide,“freeofcharge”,anonlinetradingplatformthatisintegralwithdecentchartingsoftware.Thiswayyouhaveyourchartingsoftware,yourdatafeedandyourtradingplatform(theabilitytoplacetradesonline)allinonelocation.Ibelieveyoucanconsiderthedatareliableandtheorderexecutionproperaslongasyouaredealingwitharegisteredbroker.However,sometradingplatformsandchartingsoftwarearemoreintuitiveandeasiertousethanothers,soinselectingabroker,youwanttoopenademoaccountfirstandgetthefeelforthatbroker’splatformtoseeifitiscomfortableforyou.Youwillbeabletodeterminethiswithalittlepapertradingoverafewdaysandweeks.Also,youwanttobesurethatyourbrokerschartingsoftwareisabletoplottheindicatorsthatyourtradingmethodscallfor.Mostwillbeabletodothis,butnotall.Inaddition,sometradersprefertoalsouseadditionalupscalechartingsoftwareindependentfromthedealer,suchasofferedbyMetaTrader.MetaTraderandothersofferadditionalchartingcapabilityaswellastradealertcapabilitythatsometradersfinduseful.

IsitbettertousefundamentalortechnicalanalysiswithForextrading?

Theanswertothisquestiondependsonyourtradingmethod.Themarketsareindeedmovedbyfundamentals(balanceoftradedata,moneysupply,interestrates,economicandfinancialreports,etc.)butonlythroughtheprismofhuman

psychology.Itisnotthefundamentaldataorinformationthatissoimportantasmuchasitisthemarkets’reactionstothatinformation.Manyadvocatetradingonthefundamentals;however,acasecanbemadethattradingonthefundamentalsisextremelydifficultduetothefactthatthemarketsalwaysimmediatelyandcontinuouslyaredigestinganyandallfundamentaldataandtodothissuccessfully,youneedtobeavailableonarealtimebasisatwhateverhourofthedayornightthatthenewsislikelytoimpactthemarket.Then,youneedtoactonthatnewsbeforeoratleastinthesameinstantthattherestoftheworlddoesorelsetheopportunitycouldbelost.Whilesomedotradethefundamentalssuccessfully,Ibelieveusinggoodtradingmethodsbasedontechnicalanalysisisaneasier,lessdemandingwaytotradewithfargreateroddsofsuccess.ThisisbecauseIbelieve,asdotechnicaltradersingeneral,thatanyandallfundamentalsarealreadyalwaysreflectedinthepriceofthemarketatanyinstantandsoIwouldratherapplytechnicalanalysistothemarketsandtradethemonmyterms,whenIwanttotradethemandhowIwanttotradethem,withaslittletimespentintheprocessaspossible.

Iamnotabletodedicatethetimeittakestodaytradethemarkets.IsitpossibletotradetheForex

marketsonanend‐of‐daybasissoIcantakeadvantageofthemarkettrendswhileworkingmy

regularjoborwhensleeping?

Thisisaverycommonquestion;becausesomebelievetheonlywaytotradetheForexmarketsisbydaytradingthemarkets,whichgenerallydoesrequireasignificanttimecommitment.WhiledaytradingisverywidespreadintheForexmarkets,Ibelievethatatradercandoaswellorbetterwithfarlesstimecommitmentbytradingthemarketsonanend‐of‐daybasis.Ofcourse,inordertodoso,youmusthavegoodtradingmethodsspecificallydesignedforend‐of‐daytrading.Ithasoftenbeensaidthatifyoucannotmakemoneytradingonanend‐of‐daybasis,youwillnevermakemoneybydaytrading.AndIbelievethatappliestotheForexmarketsaswell.Thisisbecausethetimepressuretomakeinstantdecisionsonorderentry,immediateplacementofstopordersandsettingprofit

targetsisverystressfulanddemandingofyourtime.Whilesometraderspreferdaytradingandareabletohandleitsrigorsandhavethetimetoallocatetoit,otherspreferend‐of‐daytradingthatcanbedoneinaslittleas20minutesadaywhilethemarketsarequiet.Let’slookatacoupleofexamplestomakethispoint.

Figure2‐EUR/USDDailyChart

Figure2isadailychartoftheEUR/USDpairshowingagreatupmoveinthemarketfrommid‐OctobertoearlyDecember2006.Thiswasabouta900pipmovethatoccurredinalittleover30tradingdaysandagoodend‐of‐daytradingmethodshouldhavebeenabletogetonboardandcapturearound700pipsofthismove.Withagoodend‐of‐daytradingmethod,itcouldtakelessthan20minutesadaytoenter,placestops,manageandexitthetradewithveryniceprofits.

Figure3‐EUR/USD5MinuteChart

Figure3is5minutechartoftheEUR/USDpairshowingtwogreatdownmovesfrom7:00AMto11:00AMSeptember3,2007.Thefirstdownmovewasforabout21pipsandlastedfor8barsandtheseconddownmovewasforabout20pipsandlastfor5bars.Agooddaytradingmethodshouldhavebeenabletogetonboardandcapture12pipsofthefirstmoveand11pipsofthesecondmove.Withagooddaytradingmethod,itwouldhavetakenpotentiallyseveralhourstocapturethesetwomoves.Nowyou’renotalwaysgoingtogeta900pipmoveonthedailychartsandyou’renotalwaysgoingtogettwo20pipmovesinamatterof4hoursonthe5minutecharts,butIthinkthisexamplemakesthepointthatthepotentialgainforthetimeinvestedisfargreaterwithend‐of‐daytrading.

HowisitpossibletotradetheForexmarketsonanend‐of‐daybasisusingdailybarchartswhenthe

marketsarealwaysopen?

Mostgoodchartingsoftwareandtradingplatformsprovidedbyagoodbrokerorbankincludetheabilitytoplotdailybarchartswherethedailybar“closes”at5:00PMEST.ThistimeisselectedbecauseitiscoincidentwiththeNewYorksession“close”andtheSydney“open”whichisarelativelyquiettimeinmostmarketsuntiltheTokyosessionbeginsat7:00PMESTfollowedbytheLondon(andEurope)sessionbeginningat3:00AMEST.Wecanthenusethesedailybarchartstodeveloptradingstrategiesthatrequireonlytheuseofthesechartswithoutrequiringintradaycharts.

Figure4–EUR/USDDailyChart

Figure4showsaplotofadailychartfortheEUR/USDpairusingVTTraderwhichisarepresentativechartingsoftware/tradingplatform.Onthischart,eachbarrepresentsoneday’stradingactivityfromthehighpriceofthedaytothelow

priceoftheday.Thehorizontalmarktotheleftofadailybaristheopenfortheday(thisisbasedonthefirsttradeafter5:00PMEST).Thehorizontalmarktotherightofadailybaristheclosefortheday(thisisbasedonthelasttradeasof5:00PMEST).So,asyoucansee,dailybarchartsarereadilyavailableinthe24/7Forexmarkets.Alsoplottedonthischartareafewtechnicalindicators.TwosimplemovingaveragesareplottedinblueandredandtheADXindicatorisplottedatthebottominbrown.Asimplemovingaverageiscalculatedbyaddingupthepricesforanumberofbarsanddividingthatsumbythesamenumberofbars.Movingaverageshelptodeterminetheprevailingtrendsofthemarket.The

ADXindicatorisacomplexformulathathelpstodeterminethedegreeoftrendinessofamarket.TheseareonlyafewoftheindicatorsthatareavailablethroughVTTraderinapplyingtechnicalanalysis.Ifyoulookcloselyatthechartfromlefttoright,youcanseethatthismarketwasinanuptrendandthenlaterformedadoubletopbeforefallingintoadowntrend,onlytoreverseagainintoanuptrendattheendofthechart.Thistypeofbehavioristypicalofwhatyoucanexpecttoseeonadailychartandtheseshortertermtrendscandefinitelybetradedusinggoodend‐of‐daytradingmethods.Agoodend‐of‐daytradingmethodshouldbebasedonanevaluationofthemarketafterthedailybar“closes”at5:00PMESTfortradeopportunitiestobeconsideredaftertheopenofthenextbarwhichoccursasofthefirsttradeafter5:00PMEST.Inactualpractice,becausethemarketsarerelativelyquietduringthistime,tradesforthenewdailybarcanbeplacedanywherefrom5:00PMto7:00PMESTwhentheTokyosessionbegins.Tradinginthismannerthenrequiresonlyafewminuteseachdayatthesametimewithoutworryingaboutanopenpositionifitisproperlyprotectedwithstopsandprofittargets.

Figure5‐GBP/USDDailyChart

Figure5,showsaplotofadailychartfortheGBP/USDpairusingVTTraderwiththesametechnicalindicatorsasthepreviouschart.Withthissoftware,itisasimplemattertotogglefromonepairtotheotherforquickvisualanalysis.Ifyoulookcloselyatthechartfromlefttorightagain,youcanseethatthismarketwaschoppingsidewaysuntilamajormoveupoccurredoveraperiodofmorethan20daysandthenthemarketreversedabruptlyandretracedthatentiregainevenfaster.Afterwhichanewrallystarted.Again,thistypeofbehavioristypicalofwhatyoucanexpecttoseeonadailychartandtheseshortertermtrendscandefinitelybetradedusinggoodend‐of‐daytradingmethods.Youcanalsoseethatifyoudonotpaycloseattentiontoriskmanagementthattheseabruptswingscoulddogreatdamagetoyouraccount.Likeanyendeavorthatoffersgreatreward,youmustgetthepropereducationandtraininginordertostayoutoftroubleandrealizethatpotential.

WhataretheattributesofagoodForextradingmethod?

Agoodtradingmethodshouldbeassimpleaspossibletoprovideapowerfuledgetothedisciplinedtraderthatisbaseduponspecificsetupconditions,entryrules,initialstops,andexitstrategy.Inadditionthemanagementofpositionsizeandnumberofpositionsmustbeaccordingtostrictmoneymanagementrules.Agoodtradingmethodalsomustberelativelyeasytofollow.Setupconditions–Thesearethespecificrequirementsthatmustbemettoconsiderapairforatrade.Theserequirementsareexpressedintermsoftechnicalanalysisindicators,patternsandpriceaction.Theaimhereistoonlyconsideratradewhenthemarketmeetsthesepre‐setconditionsandtostandasideotherwise.Thisisoneofthewaysrequiredtoputtheoddsinyourfavor.EntryRules–Oncethesetupconditionsareinplace,entryrulesdefinethetriggernecessarytoactuallyenterintothetrade.Thisusuallymeansthatpricemustbehaveinacertainwayinorderto“trigger”intoatradeusingeitheramarket,stop,orlimitorder.InitialStopRules–Thesearetherulesthatgovernhowanewpositionshouldbeprotectedfromanadversemoveinthemarket.SincethereisalwaysriskwhentradingtheForexmarkets,itisveryimportanttoknowtheappropriateplacetoplacetheinitialstoporder.Placedtooclosetothemarketrisksbeingstoppedoutprematurely.Placedtoofarfromthemarkettakesontoomuchrisk.Thisisoneofthemostcriticalaspectsoftrademanagement.EffectiveInitialStopsshouldbeplacewhereyoudon’texpectthemarkettogoandifitdoes,thepremiseofthetradeisoverandyoushouldexitthetradewithasmallloss.ExitStrategyRules–Theserulesgovernhowtomanageatradetoexitthetradeprofitably,iftheInitialStopRuleshavenotbeenappliedtothetrade.Theserules

shouldstrikeabalancebetweenprotectingopenprofitsasmuchaspossibleandexitingamarkettoosoonandmissingfavorablemarketmoves.

Whydon’tallsetupconditionstriggerintopositions?

Thereisacommonmisunderstandingamongmanybeginnersthatifatradingmethodisgoodthenanytimethesetupconditionsasdefinedbythatmethodoccur,thenthatmeansit’sOKtogoaheadandenterthemarket.Asseasonedtradersknow,thisisnotalwaysthecase.Inordertohaveanedgewhentradingthemarkets,asuccessfultraderwaitsforconditionstodevelopthatmaysignalagoodtradeopportunity.Butwhentheseconditionsdevelop,whichareusuallycalled“setupconditions”,thatoftentimesonlymeansthatthetradershouldbeonalerttoatradingopportunity.Anactualtradedoesnotoccurunlessafterthesetupconditionsareinplaceatriggeralsooccurs.Thetriggerisnecessarytoconfirmthatthemarketwillmoveintheintendeddirectionbeforeenteringthemarket.Thisisaveryimportantconcept,asitiscommontohaveseveralsetupconditionalertsthatdonottrigger.SothemoralofthisstoryisthatitisperfectlyOK(andexpected)forsetupconditionstoNOTtrigger.Thatmeansconditionsarenolongergoodforthetrade,andyouarebeingprotectedbecauseyoudidn’tenterthattrade.Amateursandbeginnerswillsometimesassumeatradingmethodis‘notworking’becausesetupconditionshavenotbeentriggeredintoaposition.Nothingcouldbefurtherfromthetruth.

Whatarethebesttechnicalindicatorstouse?Atlastcountthereareover100technicalindicatorsavailableinmostchartingsoftwarepackages.Thereisnomagicintheindicatorsthemselvesastheyallstrivetotellyousomethingabouthowthemarketisbehavingatapointintime.Anditisnotthatsomearebetterthanothers,ratherthekeytousingindicatorssuccessfullyistoselectonlyafewthatcomplementeachotherandtousetheminanuncommonmannertogetherwithpowerfultradingtactics.

Thetendencyofamateurtradersistoover‐complicatethings.Theywanttouse(ormisuse,really)toomanyindicatorsandpatterns,andthinkthattobesuccessful,theremustbeabunchofcomplexitythatisrequiredinagoodtradingmethod.Nothingcouldbefurtherfromthetruth.Simpleisbetter,byfar,forseveralreasons.

1. Usingtoomanyorthewrongindicatorsiscounterproductive,astheinformationthatthoseindicatorsprovideiscounterintuitiveandjustplainmisleading.

2. Usingafewsimpleindicatorsinauniquelypowerfulwaycanprovidetherightinformationnecessarytomakegoodtradingdecisions.

3. Withtherightindicatorsandpatterns,youwillbefarmorelikelytotradewithdisciplinebecauseyouwillbeabletounderstandanobjectivesetofrulesthattherightindicatorsandpatternscanprovide.

LetmecommentonaphenomenonthatIseetimeandtimeagain.Hopefully,youwillnotfallvictimtothis.Hereitis:Youresearchanewtradingmethodandultimatelybuyit.Thenyouquicklyflipaheadtowhatyouconsidertobe“themeat”ofthemethod,andtotallyignorethemore‐importantaspectsofriskmanagement,discipline,andpsychology.Thenyouexaminethemethod,lookingforabig,mysterious,jaw‐dropping“secret”thatwillletyoupredicteachandeverymarketmovelikeamodern‐dayNostradamus.Youlookforacomplicatedformula,oryoulookforsomecrypticcombinationofindicatorsthatmustbegood,becausethey’rejustsocomplicatedlooking!Wow!Thenwhathappensisyou’lltypicallyburnyourselfouttryingtoapplyit.You’llbecomefrustratedwhenthemethoddoesn’twork.Or,you’llblameyourselffornotbeingsmartenoughtounderstandorapplythemethod.Thenyou’llputthemethodontheshelf,onlytooccasionallyglanceatitinwonderfromtimetotime.Wonderingwhyyoucouldn’tgetwhatyoustillassumetobeagreatmethodtowork.

Buthere’swhatcanalsohappen.Intheexampleabove,afteryoudiscoverthat“themeat”ofthemethodisverysimple,easytounderstand,andonlyusesafewcommonindicators,youbecomeperplexed.Youmayevenbecomedisappointed.Afterall,inyourmind,youexpectedsomelabyrinthineskeletonkeythatwouldunlockthemysteriesoftheforexmarketsonceandforall.Youmayevenbetemptedto“throwinthetowel”,instantlygiveupthemethodandsenditback–justbecauseit’snot“complicated”enough.What?!That’sjustcrazy.ButIhavetoadmit,Iwentthroughaperiodinmyyounger(andpoorer)dayswhenIthoughtabitlikethat.Timeandexperiencehavefinallytaughtme,andmuchtomyrelief,thatcomplicatedisusuallynotgood,andsimpleisalmostalwaysbetter.Ifthosetradersthatarestillcursedwiththat“complexitymindset”wouldjusttrya“simple”tradingmethod,theywouldbedoingthemselvesaHUGEfavor(nottomention,potentially,theirtradingaccounts).Thisgoesforbothtruebeginnersaswellastraderswhothinkofthemselvesas“experts”.Again,thekeyhereissimple,butpowerful.Usejustafewindicators,appliedinamannerthatisnottheusualtextbookapproach.Thatiswhatcangiveyouanedgetradingthemarkets.Incidentally,theunfortunatetruthofthematteristhattheold80/20rulewillcomeintoplayhere(exceptintrading,it’smorelike90/10,or95/5),and80to95%ofthetradersthatjustreadthissectionandnoddedtheirheadsinagreementwillcompletelyignorethisadviceandfallrightbackintothetrapdescribedabove.It’sanearcertainty,andthat’stoobad.SoIreallyurgeyoutogobackandreadthissectionagain,andhopefullyyoucanescapetheself‐sabotagingpatternsthatareseparatingmosttradersfromfailureandsuccessinthemarkets.

Let’stakealooknowatsomeexamplesofafewindicatorsthatcanbeusedtoformthebasisofverypowerfultradingmethods.

Figure6‐USD/CHFDailyChart

Figure6showssometypicalandnotsotypicalindicatorsappliedtotheUSD/CHFpairusingVTTrader.First,noticethattwosimplemovingaverageshavebeenplottedonthechart(inblueandred).Thesearecommonlyusedindicators.Ihavealsoplottedmovingaverageenvelopeswhichareafixedpercentageaboveandbelowthebluemovingaverage.Thesearenotsocommonlyusedandcanbeveryhelpfulsupportingvariousquickhit,inandouttradingstrategiesthatonlyneedattentiononceadayatthe5:00PMESTdaily“close”.

Figure7‐USD/JPYDailyChart

Figure7showssomeadditionalindicatorsappliedtotheUSD/JPYpairusingVTTrader.Onthischart,Iamapplyingalongertermmovingaverageinpurpletogetherwithtwoveryshorttermmovingaveragesinbrown.Thelongtermmovingaverageisbasedontheclosingpricewhiletheshorttermmovingaveragesarebasedonthehighandcloserespectively.AlsoincludedistheADXatthebottomofthechart.ThisiswhatImeanwhenIsaythekeytodevelopinganedgewhentradingthemarketsistocombineafewindicatorsinanuncommonway.Eachoftheseconfigurationsisdesignedtoexploitacertainbehaviorinthemarket.Buttheindicatorsaloneareinsufficient;onlywhencombinedwithpowerfultradingtacticsdoesthepowerofagoodtradingmethodemerge.

Figure8‐USD/CADDailyChart

Figure8showsaconfigurationwereviewedinanearlierquestionappliedthistimetotheUSD/CADpairusingVTTrader.OnthischartIamapplyingtwosimplemovingaveragesplottedinblueandredandtheADXindicatorplottedatthebottominbrown.ThissetofindicatorswhencombinedwithdifferenttradingtacticsisdesignedtocapturelongertermmovesintheForexmarketssuchasoccurredonthisUSD/CADpairbeginningatthelefthandsideofthechartandcontinuingforover5months.Thesemegatrendscanonlybecapturedbytradingthedailybarcharts.

Figure9‐AUD/USDDailyChart

Figure9showsanothercombinationofindicatorsappliedtotheAUD/USDpairusingVTTrader.Onthischart,IamapplyinganintermediatetermmovingaverageinredtogetherwithslowstochasticsandADXinthetwopanelsbelowthepricechart.Theintermediatetermmovingaverageisbasedontheclosingprice.ThissetofindicatorswhencombinedwithdifferenttradingtacticsisdesignedtocapturesuddentrendreversalwavessuchasoccurredonthisAUD/USDpairjusttotherightofthecenterofthechartandcontinuingforalmost3months.

WhatsimplestrategycanIusetofindgoodentrypoints?

ThegeneralapproachthatIuseistodevelopspecificsetupconditionsthat,whenpresentinthemarket,indicatethatIshouldconsiderenteringintoanewposition.Sothefirstthingistoidentifytheconditionsthatoccurrelatively

infrequentlyinthemarket,butthatwhentheydo,ahighprobabilityopportunitymayawait.Thisisaveryimportantconcept,becauseoneofthekeystosuccessfulForextradingistowaitpatientlyfortheprimeopportunitytoenterthemarket.Amateurstoooftenbecomeimpatientandwanttotradejustforthesakeoftradingandconsequentlyenterthemarketunderotherthanidealconditions.Thisgreatlyreducesthechanceofasuccessfultrade.

Figure10‐GBP/USDDailyChartEntryPointExamples

Amateurtradersthatdothisare,ineffect,tryingtoforcethemarkettocometothemontheirterms.Guesswhat?Themarketdoesn’tcare!It’sgoingtodowhatit’sgoingtodoandthereisnothingyoucandoaboutitexceptforonething.Andthatistowaitforthemarkettodevelopaccordingtopredefinedsetupconditionsandonlywhenthathappensisitappropriatetoconsideratrade.Inthatway,you’renotforcing,butratherwaitingforthemarkettocometoyou,whichmakesaworldofdifference.Anotherkeyconcepttofindentrypointsthatiscommontomosttypesoftrendtradingistoattempttobuyintosupportlevelsandsellintoresistancelevels.The

successorfailureofthisattemptliesintherobustnessofthesetupconditionsdefinedinthetradingmethod.Oncethesetupconditionsareinplace,specificentryrulesneedtobefollowedto“trigger”theactualtrade.Forexample,oneofthepairsthatyouarefollowingmaymeetthesetupconditionsforalongtrade.Now,dependingonthetradingmethod,theentryordercouldbeaStoporderthatsays,“Onlybuyifthemarkettradesaboveacertainlevel”whichconfirmstheresumptionoftheuptrend.Or,itcouldbeaLimitorderwhichsays,“Buyonlyifthemarkettradesdowntoasupportlevel”,definedbyamovingaverageorFibonaccileveloroldhighs,etc.Thereisnoonerightwaytodothis.However,thepreciseentrytriggerpointhastobeintegraltotheotherfeaturesoftheoveralltradingmethod,includingplannedriskinthetrade.Theentrypointrulesofthemethod,bynecessity,willdeterminethestoplosspointandconsequentlyplannedriskinthetrade.Thetwogohandinhand.

HowcanIdeterminetheinitialstoploss,trailingstops,andexitpoints?

Besidesmoney/riskmanagement,Ibelievethisisoneofthemostimportantquestionsregardingagoodtradingmethod.Itshouldgowithoutsayingthatassoonasyouenterthemarketwithanewposition,aninitialstopordershouldbeenteredtoprotectthepositionagainstanadversemoveinthemarketoranexitstrategyshouldbeemployedtocoverthetradeifthemarketclosesadversely.Ifsuchamoveoccurs,asisoftenthecase,youwantyourpositionliquidatedandoutofthemarketwithaminimalloss.Theconsequencesoffailingtodothisarethatyouwillnotbesuccessfulattrading‐period.Infact,everytradeyouputon,youshouldplantolose,sothatyouaresuretoplaceyourstoplossorderorcoverthetradeonanadverseclose.Otherwise,whatwouldhavebeenasmalllossturnsintoabigloss,throwingtheentirerisk/rewardratiooutofkilteragainstyou.Thatbeingsaid,whereshouldthestopbeplaced?Theshortansweris,“Whereyoudon’texpectthemarkettogo”;or,morespecifically,wheretheassumptioninputtingonthetradeisnolongervalid.Forexample,ifalongpositionwasenteredintoafteranuptrendorbreakoutmarkettradedbackdowntosupport,aninitialstopcouldbeenteredbelowtherecentlowbecauseifthemarketdoes

gothere,support(asdefinedbythatlow)wouldhavefailed,andthereisnolongeranyreasontobelongthemarket–sogetout!Don’twaitaroundforittocomebackinyourfavorbecausetheoddsareagainstit.Ifthemarketgoesinyourfavoroncetheinitialstopisinplace,thenyouneedasetofrulesthatwillallowyoutoexitthemarketprofitably.Thisposesarealdilemma.Ifyouexittoosoon,youmaysecureasmallprofit,butmissoutonallthosebigmovesthatoccur(andthebigprofitsthatgowiththem).Ontheotherhand,ifyouwaittoolongtoexit,themarketmayreverseandtakeawayallofyouropenprofitsandevenputyouintoalossposition.

Figure11‐GBP/USDDailyChartInitialStop,TrailingStops,&ProfitTargetExamples

Sowhatdoyoudo?Well,thefirstthingistorealizethatthereisnomethodthatcanforecastwhetherornotaparticularmovewill:

Goagainstyouimmediately Gouponlyalittlebeforegoingbackdown Goupalotinyourfavor

Forexample,afteryouenteralongtradeinanuptrend,there’sabsolutelynowaytopredictwhatwillhappennext(contrarytowhattheso‐called“gurus”tellyou).Becauseofthis,youabsolutelyneedanexitstrategy,becausetheriskoflossissignificantnomatterhowcarefullyyouplanyourentriesandexits.

TheOptimalProfitExitStrategyThefollowingistheverybestexitstrategythatIbelievepossiblewhentradingtheForexmarketsonanend‐of‐daybasis.IcallittheOptimalProfitExitStrategy.It’sastrategythatscalesoutofatradeintwosteps.Thisstrategyisfirstandforemostabouttakinganinitialprofitassoonasappropriate,thereby“takingsomemoneyoffthetable”andreducingtheriskinthetradeatthesametime.

1. Steponeistocover1/2ofyourpositionatapre‐determinedprofittarget.Theprofittargetismodest,butenoughtomakethetradeworthwhileandthespecificlevelisalsodependentontheoverallmethodbeingused.Oncethatinitialprofittargetishit,youshouldmovetheinitialstopupfortheremaining1/2ofthepositiontothelowestlowofthepast3daysforanuptrendtradeorthehighesthighofthepast3daysforadowntrendtrade.You’renowoutof1/2ofthetradewithaveryniceprofitandatthesametimeyouarepreparedtoridethemarketasfarasitwantstogoinyourfavorfortheremaining1/2ofyourposition.

2. Theremaining1/2positionshouldremainprotectedbyatrailingstopalwaysbasedonthelowestlowofthepast3days(foranuptrendtrade).Andsoasthemarketcontinuestomoveup,youshouldcontinuouslymovethestopupwithit.Thislocksinasignificantportionoftheremainingopenprofitbutalsogivesthemarketenoughroomtotradedownabitwithoutshakingyououtofthetradeifitmoveshigher.

Withthisstrategyyoushouldbepreparedtotakeadvantageofthemarketafterenteringatradenomatterwhatitdoes.Andthat’sabigdeal.

HowcanIfindaForexmethodthatworksalmostallofthetimewithminimalornolosses?

Icallthisthe“HolyGrailSyndrome”and,ofcourse,theHolyGrailoftradingsimplydoesnotexist.I’vetalkedaboutthisconceptmanytimessinceIstartedtrainingindividualstotradethemarketsbackin2001,butitbearsrepeatinghere.

Foryears,Irefusedtobelieveinthisconceptandwasforeverlookingforortryingtodevelopamethodthatwouldalwayswinwithnolosses,orcertainlyneverexperiencetwolosingtradesinarow.Iwastedyearsofmylifewiththisfalseimpressionaboutwhatitwouldtaketotradesuccessfully.Don’tfallintothesametrap.Whiletheholygrailoftradingdoesnotexist,norwillitever;thankfully,itisnotnecessaryinordertobesuccessful.WhatisnecessaryasIhaveemphasizedrepeatedlyinthisreportisatrading

methodthatgivesyouanedgeinthemarket,thedisciplinetotradeitandofcoursesoundmoneymanagement.Thatsoundssimple,andinsomerespectsitis,untilyoufactorushumansintotheequation.Considerthesequestions.

1. Doyouhaveanedgeintradingthemarkets?Whatisit?Ifyoudon’tknow,thenyoudonothaveanedge.

2. Howaboutdiscipline‐canyoureallyfollowyourtradingmethodwithoutfail,especiallyaftertwosuccessivelosingtrades?Whataboutthree?Orwillyoudropthemethodandsearchforsomethingelse?Whenthathappensthe“HolyGrailSyndrome”isatwork.

3. Thenthereismoneymanagement.Areyouallocatingtheappropriateleveloffundsandcontrollingthedegreeofriskoneachtrade?

Thereasonmosttradersloseisthattheycannotanswer“Yes”toallthreequestionslistedabove.AndIbelievethatthekeytomusteringthedisciplineneededtobeawinneristohaveamethodthatdoesindeedprovideawinningedge,thatisrelativelysimpletoapply,andthatusessoundmoneymanagementpractices.Onlythen,inmyopinion,canonemustertherequireddisciplinetotradeeffectively.SodoyourselfafavorandabandonthesearchfortheHolyGrail.Instead,findagoodtradingmethodthatfitswithyourpersonality,applysoundmoneymanagementpractices,andtradeitwithdiscipline.

HowcanIminimizedownsideriskwhilestillcapturingqualitygainsintheForexmarkets?

First,youmusthaveagoodtradingmethod.Butevenmoreimportantly,youmusthavestrictmoneymanagementrules;withoutthem,evenagoodtradingmethodwilleventuallyfail.Ihavefoundthatinordertobeeffectivewithriskmanagement,youmusthaverulesthataresimpleorelseyousimplywon’tfollowthem.Forexample,oneriskmanagementmethodiscalledOptimal‐f.WhileOptimal‐fhasalotgoingitforit,Ibelieveitistoocomplicatedtobeofpracticaluse.InsteadIbelievethebetterapproachisasfollows:Simplyrisknomorethan2%ofyouraccountsizeonanyonepositionandnomorethan8%ofyouraccountsizeonallopenpositionsatapointintime.Riskinthiscasemeanstheamountyouplantoloseifthetrade(s)goesagainstyou.So,asyouraccountsizegrows,youwouldbeabletoplacelargerandlargerpositions.Whenyouhavealosingtradeortwo,youwouldbereducingtheamountriskedandthereforethepositionsizeonthenexttrade.Sothisisaverysimpleselfregulatingconceptthatkeepsyourpositionsinproperalignmentwithyouraccountsizeatalltimes.ThisisparticularlyimportantinForextrading,giventhetremendousleverageofferedbythebrokers.Thelastthingyouwanttodoistoovercommittoatradejustbecauseofthebroker’slowmarginrequirements.Bytheway,IbelievethatmostForextradersthatenduponthelosingenddosobecauseofpoorriskmanagementmorethananyotherfactor.Let’slookatanexample.Supposeyouopenanaccountanddon’tunderstandtheimportanceofriskmanagement.Youelecttorisk30%oftheinitialaccount

sizeoneachtrade(becausethebroker’smarginrequirementsallowit)andthenpromptlylosethreetradesinarow.Youraccountwouldbealmostcompletelywipedoutafteronlythreetrades.Ontheotherhand,let’ssayyouunderstandtheimportanceofriskmanagementandriskonly2%oftheaccountsizeoneachtrade.Nowlet’ssayonceagainyoulosethreetradesinarow.Thistimeyouwouldhavelostlessthan6%ofyourinitialaccountsizeandstillhaveplentyofcapitalleftforadditionaltradeswhereonegoodtradecouldmorethanoffsetthethreelosers.Youmightsaythatthisisanextremeexample,butIthinkitmakesthecase;whenyoutradewithproperriskmanagementrules,youstayinthegame.

WhataccountsizedoIneedtotradetheForexmarkets?

Thereisnoonerightanswertothatquestion.First,youshouldonlytradewithfundsthatyoucanaffordtolose.However,Forexbrokersallowyoutotradestandardlotsandminilots.Themargin(dependingonthepairyouaretrading)forastandardlotisaround$1,000andforaminilotaround$100.Sotechnically,youcouldopenanaccountwith,say,$500andtrade5minilots.Ofcourse,youwouldbeviolatingyourriskmanagementrulesandwouldprobablyenduplosingyourstake.Thekey,onceagain,istorisknomorethan2%ofyouraccountsizeonanyonetradeandsoifyouweretoputon1minilotandrisk50pips,thatwouldbeabout$50ofriskinthetrade(foraUSdollarcountercurrencypair).Thatmeansyouwouldhavetohaveanaccountsizeofatleast$2,500($2,500x2%=$50)toputthattradeonwithoutviolatingtheriskmanagementrules.

WherearethebigmoneyopportunitiestradingForex?

Inmanyrespects,theForexmarketsarejustlikeanyotherliquidmarketssuchasstocks,mutualfunds,bonds,orcommodities.ButthereisonesignificantdifferenceinthattheForexmarkettrendsaregenerallystrongerandlonger‐lastingandoccurmorefrequentlythandothetrendsinothermarkets.Infact,itisquitecommonforaForexpairtobeginanewtrendthatlastsforseveralweeksorsometimesevenmonths.IcallthesetheForexmega‐trends.Whenyoucombinethesemega‐trendopportunitieswiththeabilitytoleverageasmallaccount,thatiswhereyoucanfindthefavorableopportunitiestradingForex.Mega‐trendshavebeenknowntooffer300to700pipranges.Nowthosearetrulybigmoneyopportunities.Thequestionthenbecomes,“Whatstyleoftradingisneededtotakeadvantageoftheopportunitiesofferedbythesemega‐trends?”Well,wecanruleoutdaytradingbecausedaytradingonlyfocusesonintradaychartsthatarebasedon5minute,10minute,etc.barsandtheintradaytrendsthatdeveloponthesechartswiththeobjectiveofpickingoff20to50pipprofitopportunities.Andwhenthedayisdone,theprocessrepeatsitselfforthenextdaywithoutanyregardtoanymega‐trendthatmightbeunderway.Theproblemhereisthatthetimehorizonimportanttothedaytraderisonlyonesingleday.Thatleavestradingonanend‐of‐daybasiswithdailybarorcandlestickcharts.Herewehaveatimehorizonofseveraldays,weeks,andevenmonthswithinwhichamega‐trendcanbeidentified.Byapplyingagoodtradingmethodtothesedailycharts,itispossibletogetonboardamega‐trendatalowerriskpointandthenwiththerightexitstrategy,ridethatmega‐trendforallit’sworth,exitingneartheendofthetrendafterseveralhundredpipsofprofit.Let’slookatsomechartstoillustratethispoint.

Figure12–USD/CAD10‐minuteBarChartfor11/30/07

Thisatypicaldaytradingtimeframewherethedaytraderattemptstocapture20to50pipsofprofitsometimeduringtheday.Thisoftentimesrequiresseveralhoursofmonitoringthemarketinordertospotanytradeopportunitiesthatmaybepresentthemselvesthatday.Thedailyrangefromtheday’shightotheday’slowwasabout90pips

Figure13–USD/CADDailyBarChart9/07to11/07

Hereyoucanseeatypicalmega‐trendthatbeganinearlySeptember07anddidn’tenduntilearlyNovember07,lastingover8weeksandprovidingover1200pipsofprofitopportunity.Nowthatisamega‐trendbyanydefinition.Compare

thatopportunitytotherelativelysmallopportunitysometimesavailabletodaytraders.

Figure14–AUD/USD10‐minuteBarChartfor11/30/07

Here’sanotherexampleofanintraday10minutebarchartwithadailyrangeofabout80pips.Daytradingthischartrequirespotentiallylonghoursandlimitedopportunity.

Figure15–AUD/USDDailyBarChart3/07to4/07

Hereisanothertypicalmega‐trendthatbeganinmid‐March‘07andendedinmid‐April‘07,lastingover5weeksandprovidingover600pipsofprofit

opportunity.Andoftentimesthesemega‐trendswilloccursimultaneouslyacrossseveralForexpairs.Thedifferenceinopportunitiesbetweendaytradingandend‐of‐daytrading,especiallywhenyouconsiderthatitonlytakes20minutesadaytotradethedailybarcharts,speaksforitself.

HowdoIdeterminewhenthetrendisoptimalforprofitableswingtrading?(NEW)

Swingtradingintrendingmarketshasthepotentialtocapturesignificantmarketmovesinamatterof5to20pricebarswhetheroneistradingintradaybarsordailybars.Thisisaverypowerfulwaytotradeasmajorprofitopportunitiespresentthemselvesinthesetrendingmarketsthataswingtradercantakeadvantageofwithagoodtradingmethod.Thechallengeistogetonboardtheemergingnewtrendathighprobability,lowriskpointssothatifthetrenddoesnotdevelopasexpected,thetradeisstoppedoutwithasmallloss.Andifthetrenddoesdevelopasexpectedintoasignificantmove,thetradeispositionedtotakefulladvantage.However,muchofthetimethemarketsarenottradinginatrendbutratherinasidewayschoppyfashion.Andwhenthemarketsaretradingthisway,therewillbenotrendfollowingopportunitiesandconsequentlyattemptstogetonboardanewtrendwillbestoppedoutforaloss.Eventhebestswingtrading,trendfollowingmethodswillgetchoppedupwithaseriesoflossesinthesesideways,choppymarkets.Andthisiswheremanytradersbecomedisillusionedandbegintoabandonanotherwisegoodtradingmethod.ADXtotherescue.Thisisawonderfulindicatorthatisdesignedtoidentifywhenamarketistrendingandwhenitisnot.Thisisanidealindicatortoaddtoagoodswingtradingmethodthatsignalssideways,choppymarketslikearedflagthatsaysdonottradeinthesemarkets.WhentheADXislow(lessthan16),thatistheredflag–stayout.WhentheADXgoesbackabove16,thenanewtrendislikelyemergingandworthyoftradinginaccordancewiththerulesofagoodtrendfollowingmethod.Assuccessfultradersknow,itisjustasimportanttoknowwhentotradeasitistoknowwhennottotradeandtheADXindicatorisaninvaluableaidinknowingthedifference.ThefollowingchartexampleswilldemonstratehoweffectivetheADXindicatorcanbeasawarningofnon‐trendingmarkets.

Figure16‐AUD/USDADXExample

Figure17‐EUR/USDADXExample

Figure18‐GBP/USDADXExample

Whataresomeofthedifferencesbetweenvarious

broker‐providedForexsoftware?(NEW)Unlikefreestockbroker‐providedchartingsoftware,mostfreeForexbroker‐providedsoftwareisactuallysufficienttosupportForextradingoperations.EachForexbrokerusuallyhaseitheraproprietarysoftwarepackageoraversionofastandardpackagesuchasMetatrader4.Ineithercase,thechartingsoftwareisintegratedwithanorderplatformsothatbuy/sellorderscanbeplaceddirectlyfromthechartingsoftwarescreenswithouthavingtoswitchtoanotherordervenue.Thedifferencesamongbroker‐providedsoftwareandtradingplatformsareminorasmostprovidetheflexibilitytoviewpricechartsinanytimeframeaswellasapplyanyoftheover100technicalanalysisindicatorscommonlyusedinalltrading.Likewise,theintegratedtradingorderplatformsareverysimilarinthemechanicsrequiredtoplaceanorder.ThisisverygoodnewstoForextradersbecauseitmakessettingupchartsandcharttemplatesasimpleeasyprocess.Andwhenitcomestoplacingorders,asimpleclickonthechartoftheForexpairbeingtradedisallittakestobringuptheorderwindow.

HereisanexampleofatypicalbrokerprovidedchartingsoftwareandintegratedtradingplatformbyGFTcalledDealBook360.Thisparticularchart(Figure19)isadailybarchartoftheUSDCHFpairusingcandlesticks.Withaclickofthemouse,youcanchangethetimeframeto5minutebars,10minutebars,hourlybars,etc.Whatevertimeframeyoudesireandthechartwillimmediatelychangeforyou.Oryoucancreatemultiplechartswithdifferenttimeframesforthesamepairorfordifferentpairsallappearingonthesamescreenforeaseofcomparisonfromonecharttotheother.

Figure19–DealBook360

Thenextchart(Figure20)showsanorderwindowthatpopsupbysimplyrightclickingonthepricechartandindicatingtheytypeoforderdesired.Inthiscase,itisanordertosellshort1lotatthecurrentmarketbidpriceof1.0185.Clickingthesubmitbuttonwillbringupaconfirmationwindowwhichwhenclickedwillimmediatelyplacetheorderandyouwillbefilledatoraroundthecurrentmarketbidprice.WhilethestrategiesandtradingmethodsusedtotradetheForexmarketsrequireagooddealofstudy,theprocessofactuallyplacingordersisveryeasytodo.

Figure20‐DealBook360

Figure21showsanorderwindowthatpopsupwhenyouclickonthepricechartandindicatethatyouwanttobuy1lotoftheUSDCHFpairatthemarketpricewhichinthisexampleisat1.0189ask.Again,byclickingonthesubmitbutton,aconfirmationwindowwillappearwhichwhenclickedwillimmediatelyplacethebuyorderandyouwillbefilledatoraroundthecurrentmarketaskprice.

Figure22showsanorderwindowthatpopsupwhenyouclickonthepricechartandindicatethatyouwanttobuy4lotsoftheUSDCHFpairusingaStoporder(whichwillonlybefilledifthemarkettradesatoraboveyourstopprice).Inthiscase,youmustenterthestoppriceinthe“ask”boxbecausethisisnotamarketorder,butratherastoporder.Thenclicksubmitandtheorderconfirmationwindowwillappearwhichwhenclickedwillimmediatelyplacetheorderbutinthiscaseyouwillonlybefilledifthemarkettradesatoraboveyourstopprice.Whenplacingconditionalorderssuchasstopordersyouwillalsoneedtospecifywhethertheorderisgoodforthecurrentsessiononlyorgooduntilcancelled.

Figure23showsanorderwindowthatpopsupwhenyouclickonthepricechartandindicatethatyouwanttosellshort1lotoftheUSDCHFpairusingaLimitorder(whichwillonlybefilledifthemarkettradesatorabovetheyourlimitprice).Inthiscase,youmustenterthelimitpriceinthesellboxbecausethisisnotamarketorder,butratheralimitorder.Thenclicksubmitandtheorderconfirmationwindowwillappearwhichwhenclickedwillimmediatelyplacetheorderbutinthiscaseyouwillonlybefilledifthemarkettradesatoraboveyourlimitprice.Andlikethestoporder,youwillneedtospecifywhethertheorderisgoodforthecurrentsessiononlyorgooduntilcancelled.

Figure24showsanindicatorwindowthatisusedtoplotanyoftheover100technicalanalysisindicatorsavailable.Inthisexample,MovingAverageSimplehasbeenhighlighted.Thiswillbringupawindowaskingfortheparametersforthisindicator,inthiscase,itwouldbethelengthofthemovingaverage.

Oncethelengthparameterisentered,aclickofthesubmitbuttonwillimmediatelyplottheselectedmovingaverageonthepricechart(Figure25).Otherindicatorscanthenbeaddedasdesiredinthesamemanner.Also,itis

veryeasytosaveyourchartsettingsandindicatorsasacharttemplateforeasyretrieval.

Figure26showsanotherbroker’schartingsoftwareandtradingplatform,namelyForex.com.

Figure26–Forex.com

AndFigure27showsathirdexampleofchartingsoftwareandtradingplatformfromMetaTrader4whichissoftwareusedbyseveralbrokers.Inbothcases,the

formatisalittledifferentthanwithDealBook360butthefunctionalityisthesameandjustaseasytouse.

Figure27–MetaTrader4

Andthereareofcourseseveralotherchartingsoftwareandtradingplatformsavailablewithotherbrokerswithalmostallofthemworkingverysimilartotheseexamples.Let’stakealookatanotheroneofthem,VTTrader,inthenextsection.

HowareordersplacedwithForexbrokers?

PlacingForexordersismostcommonlydoneonlinethroughyourbroker’sorderplatformthatisoftenintegratedwithyourbroker’schartingsoftware.Thisisveryeasytodoonceyouunderstandtheordermechanics.FollowingareexamplesoftypicalorderplacementsusingVTTraderchartingsoftwareandorderplatform.Thisinformationisreadilytransferabletomostanybroker’schartingsoftwareandorderplatformastheyareallverysimilarinthewaytheyoperate.I’mprovidingthisinformationheresimplytodemonstratehoweasyitistoplaceForexordersbecauseIgetalotofquestionsfromnewcomersaboutthis.Ifyou’reamoreexperiencedtrader,thenthisinformationwillbe‘oldhat’toyou.

Figure28–AUD/USDDailyBarChart11/07

Hereisatypicaldailybarchart;inthiscaseitisfortheAUD/USDpair.Iwillusethischarttodemonstratehowtoplaceamarketordertobuythispairandthenhowtoplaceastoporderprotectingtheposition.

Figure29–Initiateanordertobuyatthemarket

Inordertoplaceanordertobuyatthemarket,weright‐clickonthechartabovethecurrentmarketpriceandthenawindowpopsupasshownonthischart.Next,select“Buy”inthepopupmenu.

Figure30–OpenPositionsWindow

Anotherwindowwillpopupcalled“OpenPositions”.

Hereyouwanttoenterthenumberoflotsyouwillbebuying.Inthisexample,wewillplaceamarketordertobuy1standardlot.(Theprocedureforaminilotaccountwouldbethesame,exceptyouwouldbebuying1minilotinstead.)Soyoujusttypein“1”inthe“amountperaccountrow”andclick“OK.”

Figure32–RequestforConfirmationWindow

Thiswindowisrequestingconfirmationthatyouwanttogoaheadandplacetheorder.Justclick“OK”andyourmarketorderwillbeimmediatelyplacedandbecauseitisamarketorder,itwillbefilledimmediatelyatthecurrent“ask”price.

Figure33–AUD/USDDailyBarChart

Onceyouclick“OK”above,youarenowlong1AUD/USDpairandyouarereturnedtothedailybarchart.

IfyouthenclickontheOpenPositionstab,awindowwillopenthatshowsyourcurrentposition;inthiscase,thatyoubought1AUD/USDpairat0.8844(undertheopencolumn),the“close”columnshowsthecurrentprice.Othercolumnsinclude“stop,limit,andopenprofit/loss.”Toenterastoporder,toprotectthelongposition,youjustrightclickonthestopboxandanewmenuopens.

Figure35–OpenPositionsWindowwithRight‐ClickMenu

Fromthismenuyouthenleft‐clickontheword“stop.”

Figure36–OpenPositionsWindowwithStopOrderWindow

Withinthiswindowyouthenenteryourstopprice;inthiscase,weentered0.8744,meaningwewanttosellthepositionifthemarketdropstothatprice.Andthenleft‐clickthesubmitbutton.

Figure37–OpenPositionsWindowwithRequestforConfirmationWindow

ThenanotherwindowwillpopupcalledRequestforConfirmation.Afterreviewingyourordertoconfirmthatitiscorrect,goaheadandleft‐clickonthe“OK”buttonandtheorderwillbeentered.

ThiswillreturnyoutotheOpenPositionswindow,showingagainthatyoubought1AUD/USDpairat0.8844,butnowitalsoshowsunderthe“stop”columnthatyouhaveanopenstopordertosellat0.8744.Ifyouwantedtoalsoenteralimitorderabovethemarketataprofittargetlevel,youwouldjustclickonthe“limit”columnandfollowthesameprocedureasabovetoalsoenteralimitorder.That’sallthereistoit.Andonceyouhavepracticedthisprocedureseveraltimes,itwillbecomesecondnaturetoyou.

The4"GoldenRules"ThatMostTradersWillNEVERLearn(NEW)

Iamgoingtobeverycandidwithyourightnow,andIriskalienatingmyselffrommostoftheotherForexeducatorsoutthere.However,Ihadtomakeadecision:tellyouthetruth,orkeepmymouthshuttomakegoodwiththe"oldboys"networkofForex"gurus".Deepbreath...hereitgoes...I'vehadmyeyesontheForexmarketsforyears,asIspentatonoftimecarefullyresearching,testing,andtweakingeverycourse,system,andmethodIcouldgetmyhandsontoseewhatwasgoingon.So,IthinkI'veseenitall,andforthemostpart‐it'sugly.

Ihave4"goldenrules"thatIusetodetermineifatradingmethodisgoodforme:

1. Itmustbeacompletemethod,withsetupconditions,entryrules,initialstoprules,andexitstrategyrules,leavingnodecisiontochance.

2. Itmustincludespecificriskmanagement,moneymanagement,and

portfoliomanagementguidelines.

3. Itmustbebasedontechnicalanalysis,butitmustnotbea100%mechanicalsystem.

4. Itmusttakelessthan20minutesadaytoapplyafterlearninghowto

tradewithit.Letmetalkaboutitem#3aboveforamoment,becausethisiswherealotoftraderscanpotentiallylosealotofmoney.Whenyourelyonacomputertomake100%ofyourtradingdecisions,youdonotlearnhowtobecomeatrader,andyouneverwill.Instead,youlearntofollowdirections.Thiscanbeextremelydangeroustoyourportfolio,becausealmosteverysystemI'veseensince1974hasbeenback‐testedandcurve‐fit,whichmeansitwillultimatelyfail,oratleastnotliveuptoitspasthypotheticalresults.Now,thatstatementmightgetmeintotrouble,especiallywithyoungertraders,whotendtobelievethatyoucancreatea100%mechanicalsystemthatnever(orrarely)loses.Folks,that'scalledtheHolyGrail,andaweekdoesn'tgobythatIdon'tgetanemailfromsomeonewhothinkstheyhavefoundit.Bytheway,thisbecomesevenmoredangerouswhenyoubaseyourlivelihoodonathirdpartyservicethatfeedsyousignalseverydaywithouttellingyoutheir"secretformula".Whatwouldhappentoyouiftheywentoutofbusiness?(Justfortherecord,IbelievesomemechanicalsystemsAREgood,atleastforawhile,butIalsobelievetheonlywaytomaximizetheiruseisifyoutrulyunderstandhowtotradeinthefirstplace.)

WhatMOSTForexMethodsLookLike(NEW)

Ifyoutakeacloselookatmostoftheso‐calledForextradingmethodsandsystemsonthemarket,you’llfindthey’relitteredwithproblems.Specifically…

1. Incompletemethod.ManyofthecoursesteachaTONoftheoreticalstuff,whichisallveryinteresting,butleavesyouabsolutelynostep‐by‐steproadmaptohelpyoumakemoney.

2. Lackofriskmanagement.Verylittle,oracompleteabsenceofanyrisk

management,moneymanagement,orportfoliomanagementguidelines.

3. Fundamentalanalysis.AbouthalfofthecoursesandsystemsI’veseenarebasedonfundamentalanalysis,whichgenerallyrequiresalotofstudying(time)andcanbeextremelysubjective.

4. Daytrading.AlmosteverycourseorsystemI’veseenrequiresyoutobe

gluedtoyourcomputerforhoursatatime.NOWONDERsomanytradersare"losingtheirshirts"attemptingtotradetheForexmarkets!Canyou"getrich"usingadaytradingmethodor"blackbox"systemthat'sincomplete,lacksriskmanagement,orisbasedonfundamentalanalysis?Sureyoucan.YoucanalsowinamillionbucksplayingblackjackinVegas.Look...tradingisanumbersgame,andtosucceedyouneedtostacktheoddsinyourfavor.Sowhynotcontroleverythingyoupossiblycan?Whynottaketheguessworkoutofeverydecisionyouhavetomake?Whynoteliminateasmuchuncertaintyaspossiblesoyoucanremovethestressandstrainmostpeopleassociatewithtrading,andreplacethatwithconfidenceandpurpose?

Howimportantisittohaveatradingmentor?

Masteringgoodtradingmethodscanbedonewithoutamentor,butIhighlyrecommendhavingaccesstoamentorbecauseamentorcandoseveralthingsforyouasaForexstudent.

Withamentor,youhavetheopportunitytodramaticallyshortcutyourlearningcurvebycheckinginwithyourmentorfromtimetotimeasyoustudythecoursematerialandpracticeapplyingthenewtradingmethodstaughtinthecoursebypapertrading.Thisalonewillsaveyouagreatdealofstudytimeaswellascostlymistakes.

Whileyoumusttakeresponsibilitytostudyandmasterthetradingmethods,yourmentorcanansweranyclarifyingquestionsonthecoursematerialthatyoumayhave.(Caution:manyso‐calledForex“mentors”merelyoffercannedmaterialandsketchy,ifany,support.Besureyourmentoroffersadedicatedsupportteamtoansweryourquestions.)Anotherkeyroleforthementoristoverifythatyourinterpretationofvarioustradeopportunitiesinrealtimemarketsiscorrect.Ican’ttellyouthenumberofbeginningtradersoreventraderswithsomeexperiencethatgiveuponagreattradingmethodbecauseit“didn’tworkforme.”And

thereasonitdidn’tworkforthemisthattheywerenotapplyingthetradingmethodscorrectlyinthefirstplace.Withoutamentor,thesetradersneverevenknewwhyothersweresomehowsuccessfulwiththemethodbuttheyweren’t.Butworseyet,thosethathadaccesstoamentorneveraskedforhelpfromtheirmentor.Eitherwaytheyendupmissingmasteringthegreatmethodthattheyhavebeforethem,onlytogoontosomeothermethodthatmayormaynotbegoodandjustkeeprepeatingtheprocesswithsuccessneverhavingbeenachieved.Amentoralsoprovidesencouragementandperspectiveontherealworldoftrading.Thishelpsyouovercomeanylearningchallengesalongtheway.

Realisticexpectationsareanotherthingamentorcanhelpwith.Somanybeginnersfallpronetothe“getrichquick”hypeandthereforeexpecttoachievedoubledigitreturnsmonthinandmonthout.Thatisnottherealworld.Therewillbeprofitsandlossesandgoodmonthsandbadmonths.Asadiligentstudent,youneedtounderstandthisandstaydisciplinedasyouawaityournextgreatprofitopportunity.Insummary,havingaccesstoamentorwhilemasteringagoodtradingmethodcangreatlyenhanceyourprobabilityofsuccess.

Forexfreedominjust20minutesaday?

AsIsaidbefore,I’vebeenteachingthousandsoffolksjustlikeyouhowtotradethemarketssince2001.Backthen,therewasaTONoftradinginformationonline(andoffline,forthatmatter).Andtoday,thisinformationseemstohavemultipliedexponentially.Sowheredoyoubegin?Well,tradingisaverypersonalbusinessandI’vealwaysmaintainedthatyouneedtotradewithamethodthatfitsyouremotions,tradingstyle,andpersonallifestyle.Butwhatareweallreallytryingtoachieve?Honestly.It’snotadigitaltradingaccountpaddedwithabunchofzerosisit?Sure,weallwanttomakeaprofit(aBIGprofit,right?),butwhatweultimatelywantiswhatthatmoneycandoforus.There’ssomethingtobesaidaboutlifestyle,andyouneedtoaskyourselfaverypersonalquestion.What’stherightmixoftradingandnon‐tradingactivityforyou?Whenitcomestobalancingthis,IthinkI’vebeenthroughitall.Inmyearlydays,whenIwaskillingmyselftocaptureprofitsdaytrading,mylifeoutsidetradingsufferedandtooksomebigbruises.IrememberatleastafewtimeswhereIwouldbeinaverycriticalmeetingatmydayjob,wheremyfocuswasneeded100%totrulybeeffective,butmymindwouldwandertothatopentradeIhadjustplacedanhourearlier.Sonotonlydidmyeffectivenessatworksuffer,butmytradingdid,too.AndtherewasalsoastretchoftimewhenI’dgethomefromalongdayofwork,seemywifeandkidsatdinnerandthendisappearintomytrading“lair”withapotofblackcoffee,asmywifeputthekidstobedandfellasleepwithoutme.Thesearesomeoftheeventsthatdrovemetodiscovertradingmethodsthatonlyrequirednomorethan20minutesanighttoapply.AndwhenIbegan

sharingthemwiththeworldin2001,IfoundoutIwasnotalone.Therewerethousandsoftradersouttherewhofeltjustlikeme.However,that’sjustmyexperience,andmystory.Youneedtolookatyourstoryanddecidewhat’srightforyou.Youmaylovestaringatchartsforhoursonendalldaylong.Ifthat’syou,Ireallyhopeitworksoutforyou.AllIknowisthat’snot

forme.ButhoweveryoudecidetotradetheForexmarkets(oranymarkets),youneedtodooneoftwothingstobesuccessfulbasedonmyexperience:

1. Dedicateyearsofyourlifetotest,experiment,tweak,try,invent,etc.agoodtradingmethodonyourown.

2. Investinagoodtradingmethoddevelopedbysomeonewho’salreadygonethrougheverythingdescribedinitem1above.

Waybackinthe1970’s,Ididn’tunderstandthis,soIchoseoptionone.Ittookmeyearstofinallycomeupwith

thecoretradingconceptsthatIknowtobetrueandeffective.Thefunnythingis,Iranintoahandfulofgreattradingmethodsthat,hadIhadtherightmindsetandunderstoodtheconceptsItalkaboutinthisreport,Iprobablywouldhaveavoidedyearsoflossesandfrustration.AllIknowisthatifIhadatimemachine,I’dgobackintimeto1974andslapmyyoungerselfinthefaceandsay,“Don’teventhinkaboutit.Goodmethodsalreadyexist.Findthem,andtradethem.”I’dalsogivemyselfacopyofthisreport!So,sometraderswhineandcomplainaboutspendingmoneytolearnhowtotrade.Ortheymoanabouthavingtosubscribetoamonthlydatafeedserviceforgoodtradingdata.Ijustdon’tgetit!Tradingisaseriousbusiness.Inthebroaderpicture,Ibelievespendingmoneyontradingeducationoronchartingsoftwareis

anabsolutenecessityforquicklyreachingyourtradinggoals(andthankfully,withForextrading,mostbrokerswillgiveyougreatsoftwareforfree).Sure,youcangotothelibraryorreadeveryfreearticleyoucanfindonline.Ilookatitthisway:You’regoingtospendthemoneyonewayoranotherlearninghowtotrade;eitherinlosingtradesovertime,orupfrontingoodtradingeducation.Letmebeclear.Thisreportisnotatradingmethod.It’smerelyacollectionofquestionsandanswers.Yes,Ibelieveitcontainssomeverygoodinformationthatcanbeusedwithanytradingmethodonthemarket,whetherit’syourownorsomeoneelse’s.Butthisinformationisonlyonepieceofthelargertradingpuzzle.Personally,ifIcanlearnjustonenewinsightoronenewnuggetofinformationwhenI’mevaluatinganewtradingmethod,thenwhatevertimeormoneyIinvestedinitwastotallyworthittome.AndasyoubecomeamoreexperiencedForextrader,you’llseesomeofthesameconceptscoveredagainandagaininvarioustradingmethodsandcourses.Butthat’sOK!RememberwhatIsaidaboutsimplicity.Youdon’tneedanoverly‐complexmethodtobesuccessful.Ifyoulearnjustonenewtechnique,orifyouseeafamiliarconceptrephrasedinawaythatcreatesnewclarityforyou,thenyourtimeandinvestmentinthatmethodshouldhavebeenwellworthit.Thisismakinggradualimprovementstoyourtradingsuccessovertime,andit’ssomethingIbelieveallofusastradersshouldstrivefor.

WhyAreYouInterestedInForex?Asyou’redigestingandassimilatingalltheinformationinthisreport,Iwantyoutothinkabouttheunderlying,corereasonswhyyou’reactuallyinterestedintradingtheForexmarkets.Formosttraders,it’sbecauseyouwanttoimproveorchangesomethingthat’snotworkingforyou.So,tohelpyouout,pleasetakeafewminutesandcompletethisshortactivitythatIlearnedfromStephenPierceafewyearsago.Ithinkyou’llfindthatitwillhelpyouclarifywhereyouare,whereyouwanttogo,andwhatit’sgoingtotaketogetthere.Ifyouhaven’talreadydoneso,Ihighlyrecommendyouprintthisentirereportoutsoyoucanactuallywriteonitandfillinyouranswerstothesequestions.I’vefoundbydoingitthatway,thisexercisewillbemuchmoreeffectiveforyou.

Now,here’ssomegoodnewsandbadnews.Thebadnewsisthattheoddsarestronglyagainstyoucompletingthisactivity.Why?Becausemostpeoplethinktheyjustneedthe‘hardstuff’whenitcomestotrading,andspendnotimeworkingontheir‘mentaledge’…butmostpeopledon’tsucceedinthemarkets,either.Gofigure.Andthegoodnews?Ifyou’reunlikemostpeopleandactuallytakeafewmomentstocompletethisactivity,thenyou’llautomaticallyhaveanedgeoverallthetraderswhorefusetodoit.Thinkaboutthatforaminute…(Bytheway,ifyou’reananalyticalpersonlikeIam,youmightfindthisactivityalittleweirdoruncomfortable–IknowIdid!Buttrustme,itforcesyoutothinkaboutwhatyoureallywantinlife,andthefirsttimeIdidthisactivity,itwasveryprofoundforme.Soifyou’refeelingalittleresistance,goaheadandsmashthroughitandcommittotakingthefirststeptocreatingthefutureyouwantRIGHTNOW.)

1. Whatisyourultimatedream?Thiscanbeanythingyouwant(forexample,retiringearly,travelingtheworld,sendingyourkidstocollege,startingyourowncharity,etc).Describeasifyoualreadyhaveandarecurrentlyexperiencingitrightnow(forexample,“Iretiredatage40andamcurrentlyonaworldtraveltourwithmywife.Sofar,we’vevisitedItaly,Spain,andPortugal,andhave8morecitiestovisitthisyear.”)____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2. Whatdoesyourdreamlooklike?Describeitinasmuchdetailaspossible.(Continuingwiththeexampleabove,“MywifeandIarehealthyandhappyasweeffortlesslytravelfirstclassfromcountrytocountry.Aprivatelimousinepicksusupateachairportwelandatwhisksusofftothenext5‐starhotel.”)____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. Whatdoesyourdreamfeellike?Again,useasmuchdetailasyoucan.(Forexample,“Itfeelssogoodtobefreeandtobeclosetomyfamily.ThestressandstrainIusedtowakeupwithwhenIstruggledtomakeendsmeetisnowgone.Ifeeltotallyrelaxedandincontrolforthefirsttimeinmylife.”)_______________________________________________________________________________________________________________________________________________________________________________________

_____________________________________________________________

4. Writedown5compellingreasonswhyyouMUSTtransformthisdreamintoreality.(Forexample,“Mykidsaregettingolder,andIMUSTspendmorefreetimewiththembeforetheygrowupandmoveaway.”)1)___________________________________________________________2)___________________________________________________________3)___________________________________________________________4)___________________________________________________________5)___________________________________________________________

5. Finally,writedown5thingsthatMUSTCHANGEinorderforyoutoachieveyourdream.(Forexample,“IMUSTdedicateatleast20minuteseverydaytostudyingsuccessfulForexmentors”,or“IMUSTfindagoodtradingmethodIcanrelyonsoIcanhaveconfidenceinplacingtrades”.)1)___________________________________________________________2)___________________________________________________________3)___________________________________________________________4)___________________________________________________________5)___________________________________________________________

Now,savethesepagesandkeepthemsomewherewheretheycanbereviewedeveryday.EventhoughIdidthisafewyearsago,Istillkeepmyanswersnexttomytradingcomputer.Itinspiresmetostayfocusedandontarget,andIhopethishelpsyoudothesame.

ForexSurveySummary

ItwasalotoffungoingthroughallthequestionsIgotfromconductingthissurveyonForextrading.Weallthinkwehaveuniqueproblemsandquestions,buteverytimeIdoasurveyI’mremindedthatwe’renotsodifferentafterall.Remembertogobackandre‐readthesequestionsandanswersatleastafewtimes.Somethingthatyoumissedthefirsttimethroughwillundoubtedlyjumpoutatyouinsubsequentreadings.AlsorememberthattheForexmarketsarenotmagicalormysterious.They’rejustmarkets.Period.AndyoucanpotentiallypullprofitsoutoftheForexmarketsjustlikewithanyothermarket.SowithagoodForextradingmethodinhand,youshouldbewellpositionedtoaddForextradingtoyourownpersonaltrading“toolkit”.I’dliketothankeveryonewhotookthetimetosendmetheirtopquestions.Indoingso,youhelpedalotoftraderswhowillreadthisreport.AndIhopeyougotatleastoneusefulnuggetofinformationaboutForextrading.Remember,youarenotaloneinyourquesttosuccessfullytradethemarkets–asalways,Iamheretohelpyou.

“ForexProfitAccelerator”Re‐ReleaseDate:Tuesday,March24th,2009

Figure39‐ForexProfitAccelerator

InSeptember,2007,mylong‐awaitedForexProfitAcceleratorhomestudycoursewasreleasedtothetradingcommunity,andall950copiessoldoutinabout10days!Now,finally,I’mabouttore‐releasealimitednumberofcopiesonMarch24th,2009.ThisgroundbreakingcourseisallaboutachievingForexfreedominjust20minutesaday,anditwillbereleasedat10amEastern(NewYorktime)onthatTuesday.Ican’twaitfortraderstogettheirhandsonthis!It’sacomplete,step‐by‐stepguidethatshowsyouhowtotreatthe24/7Forexmarketslikeend‐of‐daymarkets.Butinsteadofshowingyouhowtotradejustonemethod,theForexProfitAcceleratorrevealsfourcompletemethodsthatdramaticallyincreaseyourabilitytopotentiallypullmorepipsoutofthemarkets.

IMade2AstonishingForexDiscoveriesThoseofyouwhohavebeenfollowingmyteachingsknowhowmuchILOVETRADING!EventhoughIhaveasolidsetofmethodsandtechniquesIuseformyowntrading,I’mconstantlytinkeringaroundinmy“tradinglab”.Besidesspendingtimewithmyfamily,it’swhatIliketodoinmysparetime.Somepeopleliketoplaygolf.I’dratherbetrading.Now,becauseofmypositioninthetradingeducationcommunity,Iamapproachedquitefrequentlybyothertraders,systemsdevelopers,companies,younameit.Manyofthemsendmeevaluationcopiesoftheirprogramsandmethodstogetmyprofessionalfeedbackandopinion.SomeofthematerialIreceiveisquitegood,buthonestly,mostofitisincomplete.ThereasonItellyouthisistoimpressuponyoutheamountoftradingmaterialIhaveinmypersonallibrary–IhaveaTON,andIbelieveI’veseenjustabouteverytypeofprogramonthemarket.InreviewingallthismaterialandinexaminingallthequestionsI’vebeenreceivingfrommyreadersandstudentsaboutForex,Imadetwokeydiscoveriesthatwereastonishingtome.First,thereseemstobeaflawintheperceptionofhowmoneycanbemadeintheForexmarkets.Andtheflawisthis:itseemsthat95%ofallForextradersonlythinktheycanmakemoneydaytradingthesemarkets.Itactuallymaybehigher,maybe99%.Thisperceptionisverydangerous,inmyopinion,becausenotalltradersarepsychologicallyequippedtohandledaytrading,sotheygetinovertheirheadsandgeteatenaliveuntiltheirtradingaccountsareemptiedwithinafewminutesorhours.I’veseenithappen,andit’snotaprettysight.I’vealreadytoldyoumyopinionondaytrading–whileIoccasionallydodaytradeandevenhaveadaytradingForexcourse,Ipreferend‐of‐dayForextrading.Ifyouprefertodaytrade,thenmorepowertoyou,butthevastmajorityofmyreadershavetoldmetimeandtimeagainthatdaytradingisnotforthem,either.Andthat’sgreatnews…Why?BecausetheotherdiscoveryImadewashowtotreatthe24/7Forexmarketasanend‐of‐daymarket.Thisremovesallthestressandstrainassociatedwithtradingona24‐hourbasis.Ithasoftenbeensaidthatifyoucan’tmakemoney

tradingonanend‐of‐daybasis,you’llnevermakemoneydaytrading.Itendtoagree.Butitgetsevenbetter…WhenyoutreattheForexmarketsasend‐of‐daymarkets,I’vefoundtheycanofferfarmoreprofitpotentialthantheminorswingsmanydaytraderskill

themselvestocapture.AndwhenyoulearntherightwaytotradeForexasanend‐of‐daymarket,youcanquicklyjumpfromonebigswingtoanotherasthey’redrivenbytheForexmarketgiants–thebigbanksandotherfinancialinstitutions,includinggovernments.Butwhilethesebehemothsreactslowlytomarketchangesduetotheirsheersize,assoonasyoulearntospotabigswing,youcangetonand“ridetheircoattails”.Andbythetimethey’veturnedtolookovertheirshoulder,you’llhavealreadygoneontothenextbigswing.Forexample,supposeseveralmajorfinancialinstitutionsthinkthattheJapaneseYenisundervaluedversusthedollarandthattheJapanesegovernmentwillsoonacttostop

artificiallysuppressingthevalueoftheYen.CollectivelytheymightbeginslowlybuildingwhatwillbecomeverylargepositionsinthemarketbysellingshorttheUSD/JPYpair.Iamtalkingabouthundredsofthousandsofstandardlots.WhethertheJapanesegovernmentactsornot,themarketmightdropasexpected,inpart,duetotheeverincreasingshortpositionsofthesefinancialinstitutions.Iftheyareright,wesmalltraderscanapplytradingmethodsthatwillspotthesemovesandjumponboardatamoment’snotice.Wecanprotectourpositionswithinitialstopsandridethewavetogoodprofitsifthemarketfollowsthroughonthedownside.Andwecanjumpoutjustasquicklyaswejumpedin.Thebiginstitutionssimplycan’tmovethatfastwithoutdamagingtheirpositions.

Thebottomlinehereisthatwearepreparedtoridethetrendonthecoattailsofthemegatraders,butwithalevelofagilitytheydon’thaveandtodosotominimizeriskandmaximizeprofitwhilethey’restilltryingto“unwind”theirpositions.ThisisaBIGDEAL!Ifthoselastfewparagraphsdidn’tmakesense,pleasegobackandreadthemagain.WhatthismeansisthatwiththeForexProfitAccelerator,Ifoundawaytoshowyouexactly,step‐by‐step,howtoidentifywhenaForexpairislikelytomakeamoveUPorDOWN.Andnomatterwhichwayitgoes,Icreatedspecifictradingrulesthatletyoutakeadvantageofthosemovesandridethemforahugepotentialprofit.Andhere’sthekicker–Idon’tjustshowyouhowtodothisoneway……Igiveyoufourcompletemethods,allbasedonmytime‐testedprinciples,thatallowyoutoidentifyasmanyprofitabletradingopportunitiesaspossible.AkeypartofthesemethodsismyOptimalProfitExitStrategy,whichIdescribedearlierinthisreport.Ishowyouhowtouseitinexactdetailinmycourse,soyouwillalwaysknowhowtotakeprofitsoutofyourtradesasquicklyaspossible.Andthat’swhyIdecidedtonamemycoursetheForexProfitAccelerator–becauseIshowyouhowtotrulyaccelerateyourForexprofitswithmyfourmethodsthatyoucanuseindividuallyortogether,synergistically,tomaximizeyourprofit‐taking.Sothebottomlineisthis–nomatterwhathappensintheForexmarkets,withtheForexProfitAccelerator,youwillalwaysknowexactlywhattodoeverytimeyouplaceatrade.Noexceptions.Nomattertheoutcome.It’sthatsimple.

4MethodsandaWedding:LockMeUp&ThrowAwaytheKey

Icouldnothavegottenthiscoursedonewithoutmysonandpartner,Greg.He’samasteratunderstandinghowtoclearlycommunicateandeducatecomplicatedconceptstoindividuals.AndthoseofyouwhoownmyothertradingcoursescanthankGregformakingthemsoeasytounderstand.InthecaseoftheForexProfitAccelerator,Ihadfourcompletemethodstoteach–I’veneverdonethisbeforeinahomestudycourse,soIwasn’tsureifIwould

evergetitdonebecausethiscourseissoHUGE.Butlikeanythingelseinlife,Isetadeadlineandthengottowork.Thedeadlinewasmynephew’soutoftownwedding,so,likemanytimesbeforewhenI’vecreatedmycourses,Greglockedmeawayinhis$20,000professionalrecordingstudioandkeptmefedandalertsoIcoulddeliverandteachmybestForexmethodsaseffectivelyaspossible.AfterIwasdone,IwasonaroadtriptoVirginiawithmywifetothewedding,whileGregfinishedthingsupathome.Idroveawayconfidentthattherewouldbeagreat‐lookingForexcoursewaitingformewhenIreturned.ButIwasn’tpreparedforwhatIsawwhenIgotback.Here’swhatImean…whenGregshowedmethefinalversionofthecompleteForexProfitAcceleratorcourse,Iknewwehadachievedanewlevelofqualitywithourhomestudycourses.EverythingaboutthiscourseisthebestIhaveeverseen(andI’mnotjustsayingthatbecausethisismycourse).Theluckyfewindividualswhohavealreadybeenthroughthecoursehavegivenmethesamefeedback.I’mconstantly“raisingthebar”inordertoprovidethebestqualitytradinginformationtomyreadersandstudents,andIfirmlybelievetheForexProfitAcceleratorisbyfarthemostextensiveForextradingcourseIhaveeverseen.Iknowthatmightseemlikeabrazencommenttomake,butherearethefacts.I’vebeentradingthemarketssince1974,soIbelieveI’veseennearlyeverythingoutthere.Also,I’vebeendevelopingtradingcoursessince2001,andI’vespentcloseto$100,000ofmyownmoneyresearching,developing,andproducingthiscoursetomakesureit’sabsolutelythehighestqualityonthemarket.SobasedoneverythingI’veseen,Ican’tthinkofanyothercoursethatcomparestotheForexProfitAccelerator.Manytradersaregoingtobetotallyblownawaywhentheylearnthecontentsofthiscourse.Andnotonlythat,theForextradingeducationmarketisabouttoget

turnedonitsear.ThiscourseisgoingtoraisethebarsohighthatIpersonallythinkothersub‐standardcourseswillneedtobecompletelyoverhauledandre‐doneiftheyhopetocompetewiththequality,content,andeffectivenessoftheForexProfitAccelerator.(Infact,atleastoneofmycompetitorswassoimpressedthatheprivatelytoldmethatheisplanningonre‐doingallofhiscoursesusingthesametechnologyweusedtodeveloptheForexProfitAccelerator.)

HowtheForexProfitAcceleratorisDifferentfromOtherForexTradingCourses

Ikindofalreadytouchedonthisearlier,butIwantedtorevisitithere.AcommonquestionIhavebeenreceivingis,“HowisthiscoursedifferentfromalltheotherForexcoursesoutthere?”Theotheroneis,“IfIalreadyhaveagoodForexcourse,doIneedthisone?”Thesearefairquestions.Herearetheanswers:ThiscourseisdifferentfromalltheotherForexcoursesthatI’veseenbecauseitdrasticallycompressestheamountoftimeyouneedtospendactuallytrading(20minutesanight)byshowingyouhowtotreatthe24/7Forexmarketsasend‐of‐daymarkets.Further,itgivesyounotone,butfourcomplete,step‐by‐stepmethodsthatletyoujumpontheswingsdrivenbythebigbanksinordertomaximizeyourprofitpotential.AnddoyouneeditifyoualreadyhaveaForextradingcourse?Itreallydependsonyou.Ifyou’realreadysuccessfullydaytrading,enjoyspendingtimelookingatcharts,andaren’tinterestedinonlyspending20minutesanighttrading,thenthiscoursemaynotbeforyou.However,ifyou’relikeme(andmostofmyreaders)andwanttolearnhowtospendaslittletimeaspossibletrading(whilepotentiallypullinginmorepipsthaneventhemostdieharddaytraders),thentheForexProfitAcceleratorisdefinitelyforyou.OnemorequestionI’vebeengettingis,“Isthiscoursesimilartoyourothertradingcourses?”Andtheanswertothatoneisthis…theForexProfitAcceleratorissimilarinitsgoalofteachingyoustep‐by‐steptradingmethodsyoucanownforlife,however,itcontains4totallyuniqueandbrandnewmethodsIdesignedspecificallyforthenuancesand“personalities”oftheForexmarkets.

Imadesurethiscoursecouldbeunderstoodbybothnovicesandexpertsalike,soifyouconsideryourselfthelatter,youcanprobablyskipoveralltheintroductorymaterialandbegintradingevenmorequickly.AndI’mcertainthatyou’llstillfindmassivevalueintheForexProfitAccelerator.AnyonewhoknowsmeknowsthatIamallaboutseekingthetruthanddiscoveringtradingtacticsthatWORK.Ijustdon’tcareabouttheopinionsorideasofotherso‐called“gurus”.Ionlycareaboutresults.AndthisistheexactreasonIcreatedmyForexProfitAcceleratorcourse.SoIcanteachhonest,hard‐workingtraders(justlikeyou)moreofthestrategies,tactics,andtradingphilosophiesIhaveworkedsohardtodiscoveroverthepast30+yearsthatcanpotentiallyimprovetheirtradingresultsandbottomline.Period.

Here’sWhat’sInsidetheBigWhiteBox

TheForexProfitAcceleratorcontainsseven(7)CD‐ROMsofhands‐on,step‐by‐step“videoscreencapture”tutorialsthatwillletyoudiscovertheexactstrategiesandtacticsthatwillhelpyoufindthosespotsintheForexmarketswheremajorswingsareabouttobeestablished.AndIteachyouhowtopotentiallyprofitnomatterwhichwaythemarketsmove.Ialsoincludefour“tradingblueprints”thatsummarizeeachofthefourForexProfitAcceleratormethodssoyouhaveahandy,“at‐a‐glance”summaryyoucankeeprightnexttoyourtradingcomputersoyou

alwaysknowexactlywhattodo–everytimeyouplaceatrade.There’salsoa160‐pagefull‐colorreferenceguidewithallthechartsusedintheCD‐ROMs.Mystudentsreallylovethesereferenceguidesbecauseit’sveryeasytofliptoanypagetogetaquickrefresherontheconceptsyoulearnontheCD‐ROMs.Also,inordermakesureyougetoffontherightfoot,Iincludea12‐pageQuickStartGuidethatanswersthemostcommonquestionsabouthowtostudyandlearnmosteffectivelywiththeForexProfitAccelerator.

I’mcurrentlyindiscussionswithsomeofmytradingassociatesandI’mworkingonevenmoresurprisebonusesand“add‐ons”thatI’mgoingtoincludewiththecourse.Idon’twanttomentionanythingjustyet,butIthinkyou’llbereallysurprisedwhenyouseewhatelseI’mgoingtoinclude.I’mdoingmybestto“pulloutallthestops”tomakesureyougettheabsolutebestForexlearningexperienceontheplanet!

WhyAmIDoingThis?Someofmyreadersaskme,“Bill,whydoyouspendsomuchtimehelpingusout?”Goodquestion,indeed.Idospendanawfullotoftimeansweringquestionsfromnotonlymystudents,butsubscriberstomyfreeemailreports,too.Here’sthedeal–asIsaidbefore,Ireallydolovetrading.Nokiddingaround.I’mwhatyoumightcalla“tradingnerd”.Thosethatknowmeshouldbesurprised,however,becauseIwastrainedasanengineerandIhaveamaster’sdegreeinfinance.

Andincaseyouwerewondering,it’snotjustaboutthemoney.Sure,I’mrunningabusiness,buthonestly,Idon’tneedthemoneyfrommytradingeducationbusinesstosurvive.Ihaveasolidpensionfrom36yearsasanautomotiveexecutive,IRAsand401(k)sthatpaymeeveryyear,andIalsohaveanothercompletelyseparateautomotiveconsultingbusinessthatrequiresverylittleofmytime,buthasearnedmemorethanmostpeoplemakeworkingafulltimejob.Soifyoupullmytradingbusinesscompletelyoutofthepicture,myfamilyandIareverycomfortable.Wearetrulyblessed.That’swhywithmytradingbusinessIdecidedtopaymyemployeesverywell,andIdecidedtopackasmuchvalueas

possibleintoallmyproducts.Ialsobelieveingivingbackanddonatingtomyfavoritecharitableorganizations.SoIthinkI’mreallyluckyandinauniquepositionbecauseIdon’tneedtoputmyselfthroughanyunnecessaryfinancial

stress,whichgivesmetheluxuryoftakingmytimetoreallyhelpoutmystudents.I’velivedanamazinglifesofar,andatmyageitfeelssogoodtobeabletohelpsomanypeopleoutfromaroundtheworld.Ithinkthisismytruecallinginlife,andI’mreallygladI’mabletobeabletomentorandcoachsomanytraderssothatthey,too,havetherealpotentialtoachievethefreedomthey’relookingfor.

CanYouDoIt,Too?AquestionIgetaskedalotis,“I’mnotsureifIhavewhatittakestobesuccessfulwithyourtradingcourse.CanIachievethesameresultsasandbeassuccessfulasyourotherstudentsare?”Thisisanaturalconcernandafairquestion……andhere’stheanswer:Youdon’tneedtohaveamaster’sdegreeinfinancelikeIdo,nordoyouneedtohaveover30yearsofexperienceridingtheemotionalrollercoastersofthemarkets.AllyoureallyneedisthedesireanddrivetowanttoimproveyourForextrading,andthentheabilityto“pullthetrigger”andtakeactiononwhatyou’velearned.Canyoudoitalone?Maybe,itcertainlyispossible.Butthequestionthenbecomes,“Howlongwillittakeyou,andhowmuchmoneywillthemarketsuckoutofyourtradingaccountbeforeyoufigureitout?”Iknow.I’vebeenthere.ButIalsoknowforafactthatevenifyouonlylearnandapplyjustoneofthefourmethodsIexposetoyouintheForexProfitAcceleratorthatyou’llbetradingwith100%confidencefromdayoneandyou’llalsobeusingtime‐testedtradingprinciplesthat90%ofallForextradersdon’tevenknowabout.

InsiderVideoBackOnlineForYoutoWatchIjustputbackuponeofmymostpopular“insider”videosthatyoucanwatchonlinerightnow.It’s8minutesand43secondslongandit’stakendirectlyfromtheForexProfitAcceleratorcourse.ItrevealspartofmyOptimalProfitExitStrategyfromoneofmyfourForexProfitAcceleratormethods.Gotothiswebpagerightnowtowatchthisbrandnewvideo:

www.forexprofitaccelerator.com/4packOnthatpage,underneaththevideo,you’llseeablue“backstagepass”askingforyourFirstNameandPrimaryEmailAddressthatgivesyoufreeaccesstomy“PriorityPipPullers”list.Itlookslikethis:

Don’tworry,youdon’tneedtoenteryournameandemailtowatchmyOptimalProfitExitStrategyvideo…however,ifyouhaveanyinterestinsecuringacopyoftheForexProfitAccelerator,Ihighlyurgeyoutogofillouttheformonthatpageandjointhe“PriorityPipPullers”listNOW.Why?For2veryspecificreasons–

1. I’mlimitingthere‐releaseoftheForexProfitAcceleratortoaverylimitednumberofcopiesbecauseIwanttomakesurethatI’mabletosupportmynextgroupofForexProfitAcceleratorstudents.Iusedthisapproachsuccessfullylastyearwithanotheroneofmytradingcoursesandthestudentsthatwereluckyenoughtogetacopyreallyappreciatedthepersonalattention.Plus,Ijustdon’tbelieveit’sfairtosell,say,5,000copiesofthiscoursewhenIknowinmyheartthatthere’snowayIcouldsupportthatmanynewstudentsrightnow.

2. I’malsolimitingthisreleasetoonly7days.After7days,orsooner,Iwillremovetheorderpage.Why?BecauseIdon’twanttoworryaboutshippingoutmorecopiesoftheForexProfitAcceleratoreveryday.Idon’twanttospendtimeansweringorderingquestions.Iwouldratherputmyenergyintomakingsureallmystudentsthattookactionandpurchasedtheirowncopyofthecourseduringthefirstweekunderstandthematerialsandhavealloftheirquestionsansweredinatimelymanner.

Now,ifyoudon’tgetyourcopyduringthefirst7days,Ican’tguaranteewhentheForexProfitAcceleratorwillbeavailableagain.Itmaybe4weeks,itmaybe4months…actually,thelasttimeIletinasizeablegroupofstudentswasOVER8MONTHSAGO.AllIknowisthatifyoudon’tclaimyourcopyduringthefirst7days,youWILLhavetowaittogetyourcopy,andmaybealongtime.Thisisnotamarketinggimmick.Here’sthewebpagemydeveloperjustputtogetherforme–thisisexactlywhatyou’llseeontheorderpageafterthefirst7daysareup:

SoifyouhaveANYinterestinpickingupyourowncopyofForexProfitAcceleratorwhenit’sreleased,youreallyneedtojointhePriorityPipPullerslist.Thetradersonthislist(basedonfirst‐come,first‐served)willhavetheircoursesshippedfirst.Iwillevensendthe“PriorityPipPullers”aspecialorderlinkthatwillbeactivatedONEFULLHOURbeforetheofficialreleasetime.Thatmeanstheycangettheirhandsonthecourseat9ameasterntimeonTuesday,March24th.Onehourmightnotseemlikealottoyou,butI’vewatchedmyowntradingcoursesselloutinthepastveryquickly,soonehourmaybethatextratimeyouneedtoguaranteeyoureceiveyourowncopyoftheForexProfitAccelerator.Nowforsomepricinginformation.

SomeofmybusinessassociatesarerecommendingthatIraisethepriceofmycourseforitsnextrelease.WhileIdoplanonraisingthepriceatsomepoint,I’vealreadydecidedtokeepitatthesamepriceastheSeptemberrelease.ThedetailswillbeannouncedonMarch24th.Ihavealsodecidedtoofferapaymentplansoyoucansplityourinvestmentintothreepaymentsoverthreemonths.Thismakesitultraeasytogetstartedrightaway,andisalwaysapopularrequestfrommystudents,soI’mhappytodoitforthemandforyou.Here’swhatelseIknow…I’vespenttensofthousandsofdollarsofmyownmoneyoverthepastthreedecadesjustontradingeducation:books,tapes,CDs,seminars,etc.Younameit,I’veprobablyseenit.AndI’vealsosacrificedthebetterpartofmyyoungerdayslockedawayinmystudy,mynosepressedagainstthecharts,tryingmybesttowatchmykidsgrowup,butquietlywishingIcouldhavespentlesstimestudyingandmoretimewithmyfamily.So,whileIstilllovetrading,itHAStakenatollonmeovertheyears,bothonmywalletandonmypersonallife.AnditwouldnothavebeenpossibletoputtogethertheinformationcontainedinmyForexProfitAcceleratorcoursewithoutthatkindofpersonalsacrifice.Butthankfully,youdon’thavetogothroughwhatIdidwhenyoubecomeastudent.Iessentiallygiveyoutheculminationofmylife’sworkinthemarketsonasilverplatter.YoushouldalsoknowthatmyactualpayingstudentshavetoldmeinthepastthatIshouldNOTbesellingmytradingcoursesforthepricesIsellthemat–theythinkIshouldraisethepricedramaticallybecausetheydon’twanttoomanypeopletogettheirhandsonthisinformation.

SuccessStoriesfromMyStudents!BackinSeptember,Iquicklysoldoutofmyinitialprintingof950copiesoftheForexProfitAccelerator.AsIexpected,thischartergroupofstudentsdiscoveredjusthowpowerfulmycourseis.Anditseemsliketheywriteinnearlyeverydaytotellmeabouttheirsuccess.Herearejustafewoftheirkindwords.AndI’mwillingtobetthatyou’llbesendingmeyoursuccessstory,too,afterafewweekswiththeForexProfitAccelerator.

"Have only done 2 trades to date both of which won and covered course costs. I've bought a truckload of programs and systems over the years and this is one of the few that actually works."

--Peter M., Australia* "I am thoroughly happy with FPA course. I have been trading the Forex markets using your principles and trading rules set out in the course for about a month now and by and large have been very successful in making good profits... I must congratulate you once again for a fab course and it is the best investment I have ever made. Your ongoing interest in your students' well-being and success is really great. Thank you."

--Rawlston W., London, United Kingdom* "First of all, let me say thank you *so* much for coming up with the FPA. I just wish I'd had it when I first started trading Forex a couple of years ago. I could have saved myself a good deal of money on trades I should have never made in the first place. I started trading live with the FPA on 10/15. I've certainly had more winning trades than losing ones. Thank you again for the great trading system and the wonderful customer support. I've already told friends of mine who trade Forex about it; they can't wait for your next release so they can get in on it!"

--Laura G., Lakewood, CO*

"Just wanted to let you know that I woke up this morning (12/5) to a profit of $2,228.00 on the gbp/usd pair, Instant Pips downtrend, a trade I entered only yesterday. Needless to say, this method works. I appreciate all the work you do and for letting all of us know what you're up to. You're that rare guy who truly cares about his students. This is an incredible method!"

-Lee Meddin, Davis, CA*

"I'm very glad my father and I decided to buy FPA in September. On October 9th we did our first trade. Until now we made 12 trades only with 1/4 lot and the profit is amazing, more then $4,000! And that in 5 weeks. Now we are confident with the system we are ready to trade with more money. The system was easy to learn, after one week we could make our first trade. I appreciate the updates, and the extra tactics. We are going to use them too."

--Frans & Ingrid H., The Netherlands* "I have to confess this is by far the most profitable and user friendly trading method I have come across. I am more than exited about my future in Forex trading since I enrolled in your profit accelerator program. Many thanks to you and your team for this tremendous job."

--Fred B., South Africa* "So far, about 55% net gain with just the Instant Pips method! Very satisfied. I like your time-saving and conservative approach very much. Course is very easy to understand and I love the colored quick reference cards."

--Ted R., Tokyo, Japan* "I commenced trading the Forex Profit Accelerator live in October. I found the course to be very well-presented and thorough in its content. I have really appreciated the follow-up you provide and the bonus videos. I have been trading Forex for about 2 years and until doing your course I was very unhappy with my performance. I was trading short time periods and was really getting tired of looking at charts all night trying to capture a few pips. Now that I am trading on a daily basis I am really enjoying it as I do not have to spend hours in front of my computer. I really appreciate the way all 4 systems work together. Again, thank you for a great educational package and keep up the good work."

--Garry M., Australia*

"After 1 month of paper trading, I'm up 85% on a $10K portfolio. I appreciate the prompt responses to my numerous questions."

--Dave C., Petal, MS* "I have implemented 3 of the methods on Metatrader and have made over $7,000 on 5 winning trades - no losers yet... it could have been a lot more if I had taken all the trades triggered. It has been very useful to have your Pip Feeder to verify my signals. Thank you for the high quality of the presentation and explanations. It does a lot for confidence levels to know one is using a quality product that has been thoroughly researched as well as the knowledge that you are continuing to support us."

--Peter A., South Africa* "What can I really say about your FPA program? Just one short sentence would suffice, and it is, 'brilliantly super'. I have paper-traded it and made paper profit of more than $6,000 in three days. Thanks, Bill, for introducing the FPA to me and developing a system that is far superior than I have come across in this age of dime-a-dozen of new so-called winning systems that are literally flooding the market. Keep on the good work, Bill."

--Jeff F.*

"In my demo account I started trading using the FPA on Oct 12th. In that time I have closed a total of 24 trades with a net profit of 1,140 pips and I currently have three open positions with profits of 409 pips on the Euro, 534 pips on the Swiss Franc and 350 pips on the Yen. Not too shabby! I'm impressed."

-Doug M., British Columbia*

"I have been paper trading since I received it, and have made about a $12,000 profit. It is a very easy to understand and complete method. Much better than I have had from other systems. Thank you very much for this system, I will be using it from now on. "

--Yvonne F., Mohave Valley, AZ* "Wow, what a program. I have just retired after 39 years of teaching and was looking for something to do. You gave it to me on a silver platter. I have been doing very well paper trading. I think if I were live with my trading, I would be paying for my health insurance right now. A couple of more weeks and I think I'm going to put some real money into the market. That is a scary thought for me but I feel confident with your system and with your support I will make some serious pips. Thanks for all you are doing and keep the faith!!!"

--Jim M., Red Lion, PA* "In my demo account I started trading using the FPA on Oct 12th. In that time I have closed a total of 24 trades with a net profit of 1,140 pips and I currently have three open positions with profits of 409 pips on the Euro, 534 pips on the Swiss Franc and 350 pips on the Yen. Not too shabby! I'm impressed."

--Doug M., Maple Falls, WA* "It's been going great. For the first time in the few years since I've been trying to trade the Forex, I have the confidence to place the trade and let it go. Knowing exactly when to get in, where to place stops and when to get out along with just looking at the charts EOD fits my personality."

--Randy M., Chattanooga, TN*

"I started paper trading two weeks ago with $50,000 and I am up to $70,000 with no losing trades yet. I have sent in my application to open an account and plan to start trading with real money soon. I am very impressed with the system so far. As a matter of fact, I am considering buying all your other products as soon as I make enough (real) money to pay for this one."

--Robert C., Columbus, GA* "Admittedly I had my doubts about the course, but since I started using the program I found that I can consistently make profits. I have one goal and that is to make a minimum of 2% of my portfolio a week. I have been able to do just that and a lot more with this program. I love the four step program (set-up, entry, stop loss, exit). These four steps help me stay focused and keep my emotions out of the trade. This is my third time starting over in the Forex market. I have come to realize that the two previous times I did not have a complete trading method. With your program, I have the confidence that I finally have a complete trading method, the knowledge to use that method, and the knowledge to recognize other complete trading methods."

--Eric N., Nottingham, MD*

"In my first 2 weeks I had no losing trades. You know exactly how much money you're risking before you go into the trade. I'm very, very impressed so far with my results. I've always wanted to quit my job and become a full time trader... with FPA I will be able to achieve my goal. This really can be done in 20 minutes a day."

-Robert Cormier, Auburndale, FL*

"I am doing very well with the system. I am getting around 200 pips a week so far on paper. Thank you for developing the system."

--Doug, Australia* "I am loving your FPA course. Also, I have just purchased your Quantum Swing Trader course and can't wait to get my teeth into it. Great work, Bill."

--Rawlston W.* "I must say how much I am impressed with your level of integrity. You have done everything that you said you would do - especially the tight number of teaching materials that were sold. You set down a deadline, and you kept the deadline. If it were not for duplicated orders that paved the way for 44 or so unsold packages, I would not have been able to obtain the CDs. You credibility was further enhanced when I listened to the interview that I downloaded from the web today. By the way, I must say that the quality of the CDs is really very good - the presentation itself and the content."

--Syling L., Murrieta, CA* "I appreciate all the work you do and for letting all of us know what you're up to. You're that rare guy who truly cares about his students. This is an incredible method!"

--Lee M., Davis, CA* "Love the methods and course. Having a lot of fun learning. Never even knew what Forex meant until I read your e-book and your course is making it easy to learn and actually understand how to trade."

--Sean D., Morris, IL* "I have asked many questions as a new student and customer support has been excellent. Thanks for your patience and instructions."

--Wayne E., Lakeland, FL*

"I think it is excellent and very well done. You have done a great job in setting it all out and explaining it."

--Weston B., New Zealand* "I am very, very pleased with your whole program. This material you put together is extraordinary. I appreciate the constant updates and feedback you are giving us; it bolsters moral 10 fold. Thanks for the many tips and tutorials."

--Courtland D., Tampa, FL* "Thank you for the details provided in the package. I want to confirm to you that I have already made three times the cost of the package in just a week. Once again, I sincerely thank you for your assistance and love."

--Mohammed S., London, United Kingdom* "Thank you so much for being the real deal."

--Jerry C., Modesto, CA*

"I wish I would have seen this 3 years ago, it would've saved me $8,000. If you want to do something other than work all the time, this would be the way to go. You have everything you need. The support that you get is unbelievable. For the price you have to pay, it's very cheap. You're going to become the CEO of your own company. Buy the program, and your future will look bright."

-Jim Miller, Red Lion, PA*

"I was indeed impressed with the material contained in the course, particularly in the quality of the CD presentation modules. I have no doubts that this is the most sensible purchase I have made for my trading education these last 10 years. Great job!"

--Keith D., Australia* "You have been a lot of help and there is much love for you here."

--John T., Port Orchard, WA* "Amazing array of to-the-point study material, especially in the way it is presented. Written theory backed up by visual practical training on the graphs, just like having my mentor standing at my side, although we are an ocean apart. Great job, and my commendations to both you and Greg for providing me with an heirloom to pass on to my family."

--Mike G., South Africa* "To date I have purchased from you Super Divergence Blueprint, Instant Profits, Quantum Swing Trader, MMPP, and now Forex Profit Accelerator. You know what I have found? - They all work! The good thing about creating quality products that really work and being a person of integrity is that when you create something new - such as the Forex Profit Accelerator - people who know you and have bought trading systems from you before will want to deal with you again. This Forex Profit Accelerator course looks phenomenal. I didn't think anyone could top the MMPP course, but this looks just as good as or better than MMPP. One of the things that I am really excited about with the FPA is that the trends tend to go on for long periods of time. I am hoping that gradually, using these methods, I will be able to leave my job and just spend 20 minutes per day as you have suggested. Thanks, Bill, for this!"

--David H., British Columbia, Canada*

"I have had your course open and have been studying it from the minute that it arrived at the house on the 26th of September, 2007. This is by far the most complete trading course that I have ever seen on Forex. Thank you for your email as it suggests to me that number one, you care, and number two that you have integrity. I don't mind paying for a course when the person who's selling it cares, and has integrity."

--Wayne P., London, United Kingdom* "I am very excited about these methods, and trading in general. I wish to thank you for your guidance."

--Ernie W., Hermiston, OR* "Great course, by the way. After spending tons of money on other courses without results, I find your course very powerful yet easy to understand. Thanks for your excellent course, Bill."

--Robert M.*

"I am extremely pleased w/ the results. Following your trading methods I have gotten back what I paid for the course 4 times over within the first 4 weeks. You make the course so easy to understand with the cd's and trading examples along w/ the manual for quick reference. Thank you for your support and sincerity. After I fully learn and have mastered this program I intend to look into your other courses."

-Darwin M., Roseville, CA*

"My FPA package arrived here in Auckland, New Zealand a week ago. My first impressions were of quality and professionalism, both in the written manual and in the production of the CD's. Thank you very much for making such a fantastic course available. My first Forex transaction (using NZ dollars to purchase your course in USD) will be the best Forex trade I'll ever make - it will be the key to unlocking many more trades in the future which will repay that initial transaction many times over. Thanks again for a brilliant course."

--Steve M., Auckland, New Zealand* "Congratulations on another great product. My success with QST prompted me to try the FPA product. I have gotten through the first two strategies. Again, a wonderful presentation of a great system and rules."

--Kurt B., Ponte Vedra Beach, FL* "Your crystal clear presentation of the methods absolutely rocks! High-class education."

--Hans D.R., Sweden* "Course pays for itself in first two days of trading. ABSOLUTELY AMAZING! My first two trades were: Long 2 EUR/USD, Instant Pips for a 45 pip profit on 10/9, Short 2 USD/CAD, Pip Maximizer 2 for a 46 pip profit on 10/4. Thanks for a great course. I was really unsure about how useful the information would be compared to its cost, but I'm a true believer now."

--David V., Sugar Land, TX*

*Norepresentationisbeingmadethattheseresultscanorwillbeobtainedinthefuture,orthatlosseswerenotincurredsubsequenttothedateonwhichthetestimonialwasprovided.Thereisasubstantialriskoflossassociatedwithtradingforex,futures,stocks,andoptions.Onlyriskcapitalshouldbeused.

TheMega‐TrendsMyStudentsHaveBeenEnjoyingIfyoumissedoutonyourchancetograbmyForexProfitAcceleratorduringitslastrelease,here’ssomeofthe“pippotential”thatyoumissed.Checkoutthesemega‐trendsthatalloccurredsinceSeptember,2007thatyoucouldhavetakenadvantageofbyapplyingtheForexProfitAcceleratortradingmethods.

Figure40–USD/CAD9/07to11/07:Over1,300PipsofProfitPotential*

Figure41–USD/CHF8/07to11/07:Over900PipsofProfitPotential*

Figure42–USD/JPY11/07:Over900PipsofProfitPotential*

Figure43‐AUD/USD01/08to04/08:1,400PipsofProfitPotential*

Figure44‐EUR/USD02/08to5/08:2,100PipsofProfitPotential*

Figure45‐USD/CHF01/08to03/08:2,200PipsofProfitPotential*

Figure46‐USD/JPY01/08to03/08:2,100PipsofProfitPotential*

Figure47–USD/CHF11/08to2/09:2,160PipsofProfitPotential*

Figure48–USD/JPY11/08to1/09:764PipsofProfitPotential*

Figure49–EUR/USD10/08to1/09:2,524PipsofProfitPotential*

Disclaimer: Hypothetical performance results have many inherent limitations, some of which aredescribedbelow.Norepresentationisbeingmadethatanyaccountwillor is likelytoachieveprofitsorlosses similar to those shown. In fact, there are frequently sharp differences between hypotheticalperformanceresultsandtheactualresultssubsequentlyachievedbyanyparticulartradingprogram.Oneofthelimitationsofhypotheticalperformanceresultsisthattheyaregenerallypreparedwiththebenefitofhindsight.Inaddition,hypotheticaltradingdoesnotinvolvefinancialrisk,andnohypotheticaltradingrecordcancompletelyaccountfortheimpactoffinancialriskinactualtrading.Forexample,theabilitytowithstandlossesortoadheretoaparticulartradingprograminspiteoftradinglossesarematerialpointswhichcanalsoadverselyaffecttradingresults.Therearenumerousotherfactorsrelatedtothemarketsingeneralortotheimplementationofanyspecifictradingprogramwhichcannotbefullyaccountedforinthepreparationofhypotheticalperformanceresultsandallofwhichcanadverselyaffectactualtradingresults.

Finally,I’msoconvincedthatyou’llbenefitfrommynewcourse,I’mgoingtohaveamoney‐backguaranteeonthepriorityenrollmentformwhenit’sreleasedtothepubliconTuesday,March24th,2009.Well,that’saboutitforthisreport,myPowerForexProfitPrinciples.Ireallyhopeyou’vefoundsomevalueinthisreportthatwillhelpyouinyourtrading.Don’tforgettowatchthefreevideothatrevealsmyOptimalProfitExitStrategy.Anddon’tforgettojointhe“PriorityPipPullers”list.Here’sthewebpageagainwhereyoucanseethevideo:

www.forexprofitaccelerator.com/4packGoodTrading,

BillPoulosP.S.YoucantracktheprogressoftheForexProfitAcceleratorreleaseandmakecommentsontheinformationinthisreportbyvisitingtheForexProfitAcceleratornewssiteatwww.forexprofitaccelerator.com/news2.

TheForex4‐PackReadyformoreForextrainingmaterials?GoaheadandaccesstherestoftheForex4‐Packmaterialsbelow:EssentialForexTrading&SoftwareBasics(Releasedate:Friday,March13th,1009)IrecordedthisvideoseriesespeciallyforbeginnerForextraders.You’lllearntheessentialbasicsofForextrading,alongwithalivewalkthroughofsomeactualtradingandchartingsoftware.Isticktowhatyouneedtoknow,soyoucanbegintradingASAP.AccesstheEssentialForexTrading&SoftwareBasicsvideoshere:www.forexprofitaccelerator.com/4packTheForexRiskShield(Releasedate:Saturday,March14th,2009)TheForexRiskShieldreveals4timeswhenyouprobablyshouldNOTbeplacinganytrades.Remember,youwanttomaximizeyouroddsofsuccess,soknowingwhenNOTtotradewillautomaticallygiveyouasortof“riskshield”tokeepyououtoftrouble.AccesstheForexRiskShieldvideoshere:www.forexprofitaccelerator.com/4pack

TheForexBrokerScorecard(Releasedate:Sunday,March15th,2009)ThereareplentyofForexbrokersallovertheworldyoucanchoosefrom.Thisisn’tsurprising,giventhehugepopularityofForextrading.Butthischoicealsopresentsachallenge–howdoyouknowwhichForexbrokerstotrust?Tohelpyouout,Icreateda10‐point“scorecard”youcanusetoevaluateanyForexbrokerontheplanet.DoesyourForexbrokerpassthetest?Usethescorecardtofindout.AccesstheForexBrokerScorecardhere:www.forexprofitaccelerator.com/4pack

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