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FOREX

TRADING
m i n u t e s
in 1 5 VOL II

BEST FOR
BEGINNERS
30 days after you read this e-book,
your friends will notice your success!

If you want lots of theory and complicated analysis, you


picked up the wrong e-book! You don't need another classic,
boring "learning material". What you need are easy-to-apply
strategies and ready-to-use tools to help you become a
better trader faster.

About this e-book


The popularity of the Forex Basics & Secrets in 15 Gone are the days when you have to have
Minutes e-book has encouraged us to create a thousands of dollars to participate in the Forex
second upgraded edition. We received a lot of market. Now, you can start trading with as little as
great feedback about the first e-book (thank you!) $100! You can also forget about spending years
and we hope that everyone will enjoy the new reading piles of brain-busting books on economic
strategies in this second edition. analysis. We have gathered and filtered the most
pertinent information and strategies that will let
This e-book will help you learn Forex trading skills you make money.
in the fastest time possible! It doesn't matter so
much what education and background you have. With Forex, you can be free. You can live and work
Our program has shown interesting results: people anywhere in the world, be free from the routine,
with no previous financial market experience often and not answer to anybody!
delivered better performance than those with the
experience! Watch the TV series Million-Dollar
Trader and this fact is confirmed as well.

Trading involves risk. Leveraged trading has large potential rewards, but also
large potential of risk. Be aware and accept this risk before trading.
forex market at a glance
Make money even in times of crisis
While the stock market and commercial bank deposits are in
deep depression during the crisis, Forex profits, because any
change in currency can be used to make profit. A falling
market is as profitable for Forex trading as a developing one.

Work while lying in a hammock


All you need to start making money is a computer or a
smart phone and an Internet connection. Your work
space and goals are up to you!

Start with $100


$100 Unlike other finance markets, Forex doesnt require big
savings for you to take part. You can have significant
results by starting with just $100 - $200.

Easy rules
Unlike the stock market with tens of thousands of different
shares, Forex works with 8 basic currencies, which are the
center of most trades. Moreover, there are significantly less
factors that influence currency exchange rates than in the
stock market.

Take your money whenever you


want
A $50 billion market isnt just a miraculously beautiful
number it is also what ensures that you can sell or buy
any amount of currency you wish at any moment.
breaking the biggest forex myth
We strongly advice you to avoid all resources that then purchase currencies from different continents.
tell you Forex market is a fairy-tale place where you The Forex market of London is usually the most
can trade 24/7! The timing in forex trading is active as it involves many countries of the
crucial! European Union. The US market comes next, so the
time when the London session intersects with the
The Forex market is open 24 hours a day, but it is US session usually provides the biggest returns.
not active all this time! In Forex trading money is Expert traders consider 10 AM to be the best time
made when the market is active (when traders are as this is the period when the London market is
bidding on the prices) so it is crucial for you to learn preparing to close the trades and traders are
about the most productive hours of the day and of getting ready to move to US market. This creates
the week for trading the forex! big swings in currency prices thus opening great
opportunities for profit.
There are three major trading sessions of the Forex
market: London, US and Tokyo session. The busiest
times are when the sessions overlap as traders can

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London
New York
Sidney
Tokio

THE BEST TIME OF THE WEEK TO TRADE FOREX

According to research, the biggest movement in the four major currency pairs (EUR/USD, GBP/USD,
USD/JPY, USD/CHF) is observed on Tuesdays and Wednesdays. Fridays are busy as well, but only until
12:00 PM and during the second half of the day the movements can be very unpredictable.

Best time

MON TUE WED THU FRI SAT SUN


forex glossary

FOREX Forex is an international currency market


with daily deals worth $4 billion.

foreign exchange

The most common currency pairs

The trade in Forex occurs between two


EUR /USD USD/CHF
currencies, because one currency is being
bought and another sold at the same
GBP/USD EUR /JPY
time. USD/JPY USD/CAD

EUR /USD

28 %
EUR /USD
Base Quote
Currency Currency

TOP PAIR 1/3 ofdealsall

EUR/USD
Point (Pip)
Selling price (Bid) Buying price (Ask) The fourth unit after the
decimal point, which is the
1.3000 spread 1.3001 smallest unit of an exchange rate.

Spread
point The difference between the sell
quote and the buy quote (in pips).

The smaller the spread,


the more liquid the currency!
What influences exchange rates?
Central banks State economics Politics

Finance circulation GDP, inflation, debt Stability of governments


Interest rates Sales amounts Public statements
Mandatory reserve funds Interest from investors Change of officials

Example
How the Euro exchange rate dropped
Prime Minister
of Greece announces EUR /USD
referendum

Berlusconi
resigns

Central banks
agree to stimulate The EU cannot
liquidity of finan- agree upon
ECB announces cial transaction changes in the
a new president treaty

Nov 1 Dec 1
2011 2011 Source: Morgan Stanley Research, Bloomberg.
leverage & Lots
Term Leverage
Through the use of leverage, traders are Leverage allows you to trade with more
able to invest a small amount of money and money than you have in your account,
trade much larger deal sizes. This is useful because you effectively leverage your free
because the movement in currency rates can balance to open a larger trade. Leverage is
be very small, and larger trades represent shown as a ratio, for example 1:100. Note
larger profits/losses for every pip change in that leverage amplifies both potential
the rate. profits and losses alike.

Stock market Forex market


Maximum leverage 1:2 from 1:50 to 1:400

Varying lot sizes

Term Lot
In Forex, all transactions can be conducted via standard, mini, and micro lots. Each lot size
accounts for a different measure of units of the base currency, which in turn presents a
different pip value. Below is a simple chart to illustrate the differences in lot sizes, measured
in units, volume for the major pairs where the base currency is USD.

Units of Pip Value


Volume
base currency (base: USD)
Standard Lot 100,000 units 1 1 pip = $10

Mini Lot 10,000 units 0.1 1 pip = $1

Mini Lot
Micro Lot 10000
1,000 units
units 0.1
0.01 11pip
pip==$1
$0.10

The smaller contract sizes have a broad appeal to beginner investors who do not want to
take on a disproportional amount of risk. Generally speaking, mini account holders have
access to the same materials as the regular account holders such as charts, trading plat-
forms, support, etc. Those traders who are looking to get started in the forex market should
consider opening a mini account because of the smaller contract sizes.
How leverage works
Leverage
Leverage simply means borrowed funds.
While the high degree of leverage used in
forex trading magnifies returns and risks, a
few safety precautions used by professional
traders may help mitigate these risks.

Example Tips & Warnings

You decide to buy 100,000 EUR and sell Leverage is a very aggressive investment
USD at a rate of 1.4100. Do you need strategy and only those with high risk
more than 100,000 US dollars to open tolerance and a long time horizon should
the trade? No! With a leverage of 1:50 consider leverage.
you will need to put down only 1/50 of
the deal size as the margin, which works Use leverage appropriate to your
out to $2,820. comfort level: Using 1:50 leverage means
that a 2% adverse move could wipe out
Calculate the margin: all your equity or margin. If you are a
Leverage 1:50 relatively cautious investor or trader, use
a lower level of leverage with perhaps 1:5
Divide 100,000 by 50=2000 EUR or 1:10 leverage.
2000 EUR x 1.41=$2,820
Margin=$2,820 The leverage available on positions
carried over the weekend may vary.
This is the amount that will be used to
Maximum leverage limits vary in
cover your potential losses. In other
different countries, varying from 1:10 to
words, the margin is the actual amount
1:400.
that you are risking to lose if the trade
goes against you.
Trading strategy leverage
Going short on euro
You expect the euro to fall against the US dollar.

EUR /USD

1.4000

Open @ 1.3800

1.3500

Close @ 1.3108
1.3000
1.nov 1.dec
2011 2011

Case B: Leverage 1:50 Case B: Leverage 1:200


You open a position of 1 lot, which You open a position of 1 lot, which
requires an initial deposit of requires an initial deposit of
(100,000*1.3800/50) $2,760. (100,000*1.3800/200) $690.

You were right. Euro depreciates against You were right. Euro depreciates against
the dollar to 1.3108 and you decide to the dollar to 1.3108 and you decide to
close your trade and take your profits. close your trade and take your profits.

Result: The euro fell by 692 pips (1.3800 Result: The euro fell by 692 pips (1.3800
- 1.3108 x 10000). Your profit is 692 x 1 - 1.3108 x 10000). Your profit is 692 x 1
(lot) x 50 (Leverage) = $34,600 (lot) x 200(Leverage) = $138,400

Investment: $2,760 Investment: $690


Profit: $34,600 Profit: $138,400

If the trend moves against the investor, leverage magnifies losses the same way it
magnifies returns in the examples above.
how to read graphs
The market can be analysed in several time frames: 10 minutes, hours, days, weeks.
It may often seem that these indicators are contradictory. However, they arent, you
just need to combine their readings. Analyses of longer time periods show
tendencies, ignoring accidental changes, whereas daily and hourly graphs help in
choosing the moment to open and close positions.

Example
MULTIPLE TIME FRAME ANALYSIS
time
X

Let us look at a daily graph.


What do most traders do
1600
when they see such a curve?
They assume that its the
beginning of a downward
tendency and bid on the drop 1550
of the currency exchange
rate. And theyre wrong!
1500
3 10 17 24
November

time
X

1900
Now lets look at the same
currency over a longer period
of time.
1600

We see that the daily shift


was inconsequential to the
long-term tendency as it is 1300
upward and not the other
way around.
Aug Sep Okt Nov Dec

Conclusion

For successful and precise market analysis, you must use at least 2-3 time frames!
8 FOR
STRA EX
TEGIE
YOU N S
EED
TO KN
OW
1. The Double-Red Strategy
Resistance level

Sell

1.

2.

Description Watch out


The double-red strategy is a short-term Not suited for volatile markets
reversal system based on price action and Do not use it when big news events
resistance. The trade is planned on a are taking place
5-minute chart and is signaled when two
bearish candles form following a test of
resistance.

1. Choose an asset and watch the market


until you see the first red bar. Then wait
for a second red bar.

2. If the second red bar closes lower than


the first red bar, then its a jackpot.

3. Usually, what happens is that the third


bar will go even lower than the second
bar. This is the point where you should
open a short position.
2. copy trading STRATEGY
Copy the trades of experienced traders. best for dummies
This is the best solution for beginners who dont have much
free time. EASIEST
strategy
1. Choose 2. Choose 3. They make
network traders to copy money for you

Social trading networks like eToro or Ayondo offer an opportunity to follow the best traders
and copy their trades with a click of a button. Choose the traders you like, and then sit back
and watch them make profit for you. This is also a good way to learn Forex strategies in a
real-life trading environment.
3. Support & Resistance
Resistance level
Sell Sell Sell

Support level
Buy Buy

Description Key elements


Support is the level at which the price Preferable timeframe: 1H
seldom falls below; resistance is the level Stop-loss is put outside the channel
the price seldom exceeds. Each time the
price hits the resistance or support, the
price appears to hit a wall and reverses. At
support levels, the number of buyers gen-
erally exceeds the number of sellers; this
pushes the price back up. At resistance
levels, the number of sellers exceeds the
number of buyers causing the price to go
back down.
4. Breakouts

Resistance level

Support level
Buy

Description Key elements


When a price trades within a range for Preferable timeframe: 1H.
some time, sooner or later, there will be a To conrm the trend, wait until at least
breakout either up or down. This breakout one price bar closes below/above the
is usually very fast and volatile. Therefore, support or resistance.
it is possible to open a trade in the same Stop-order should be above the support
direction. line or below the resistance, but not too
close to avoid common movements and
flat widening.
5. The Pinocchio Strategy
win

Bearish Pinnochio Sell 68


rate
%

2. Upper shadow
at least 2x the size
of the real body

3. Confirmation
of a downtrend.

Description Key elements


A Pinocchio bar is a candlestick bar that Time-frame for analysis: 1h, 4h
has a very small body and a very long wick
(nose). It is also called Shooting Star,
Hanging Man, Hammer and Inverted
Hammer. You may remember that Watch out
Pinnochios nose grew long when he was
lying. The same happens with this Do not trade in a neutral market! A true
strategy: when the wick is longer than bearish Pinocchio signal must come after
the body, this tells us that the market is an uptrend (see image above). Trying to
deceiving us and that we should trade the trade the bearish Pinocchio pattern in
opposite way. neutral market conditions can be risky.

The entry point varies: some traders


prefer to wait for the next candle to
retrace to the 50% Fibonacci level of the
Pin bar, while others enter immediately
after the Pin bar closes. A long wick
indicates strong selling pressure; a long
tail suggests intense buying power.
6. The 1-2-3 Strategy

1 If a peak is not surpassed,


it becomes point 1.

Point 3 does not go


higher than point 1.

3
Sell

2
Point 2 marks the end
of a counter move.

Description
1. After an uptrend or, at least, a strong 4. The pattern is now complete. There is
move up, look for the 1 2 3 pattern to still a very important rule that must be
form, starting, of course, with the first observed: the price must move down to
peak (1). break the low created at point (2). If that
2. If a counter-move starts, mark the happens, all of our conditions are met and
bottom of that move with (2). we enter the trade with a short position.
3. If the new move up does not surpass
point (1) and starts turning down, mark
the highest point of this new move up
with (3).
7. Moving average
Se
ll

Moving Average

Buy

Description Key elements


Using moving averages to determine A sell signal is indicated when the spot
trend direction is the oldest form of rate crosses under the moving average.
technical analysis and remains one of the The fact that the "double-top" chart
most commonly used indicators. Moving pattern occurs at roughly the same
averages "smooth out" fluctuations and point, reinforces the sell signal.
help distinguish between typical market
fluctuations and actual rate reversals.
A buy signal is indicated when the spot
rate crosses over the moving average.
The "reverse head and shoulders" pattern
(as seen in the chart above) confirms the
buy signal.
8. Oscillators
Sell
Extremum

Extremum

Buy

Description Key elements


Oscillators can provide clues when the Preferable timeframe: 4h
markets momentum is slowing down, It is wise to use a xed stop loss
which often precedes a shift in the trend. when working with oscillators to avoid
bigger losses if a breakout should
Momentum shifts directions when the two happen.
lines (blue and red) cross. Therefore, a
trader takes a signal in the direction of
the cross when the blue line crosses the
red line.
top 10 expert tips for success

1 Start gradually 6 Dont stop the profit


Dont open many positions at the An essential mistake beginners make
same time. Its better to choose is closing the transaction too soon
fewer positions, but weigh each of and thus not taking advantage of the
them carefully. full profit potential. Trends last
longer than they might seem at first!

2 Stop-Loss order 7 Dont play against


People often forget to limit their loss the trend
and therefore have to step out of the Transactions against a trend usually
game very soon. With the Stop-Loss result in loss. Wait for a beneficial
Order, you will be able to control the tendency and then make your move!
situation even if the rates change
unexpectedly.

3 Rule of 1/6 8 If in doubt, follow


Specialists advise against risking the leader
more than 1/6 of your free capital If you still arent confident about
when you arent completely your decisions, choose a platform
confident. that lets you follow leaders and copy
their transactions.

4 Stick to the plan 9 Trends have momentum


Each good trader has their own plan, Beginners often dont know that
and the best traders make an effort when trends start, they develop
to hold onto it. Those who have the quickly because they are increased by
time, make daily transactions, others the number of traders following
choose long-term strategies. Keep it them. Use trends in your favour!
steady!

5 Multiple time frames 10 Close the unsuccessful


Differentiate the time frames of Dont hold unsuccessful positions
analysis. Weekly graphs are used to open for a long time. Experience
observe trends while daily and hourly shows that its best to close them
graphs are best used to observe the early and move on to others.
best time to open and close
positions.
how to choose the right broker
There are many companies that offer margin-trading (Forex) services. Without the
knowledge of the essential criteria, its easy to get lost in the details of a large offer and
choose an unsuitable or, as a worst-case scenario an unreliable service provider. What is
most important when choosing a platform provider, and how does one orientate themselves
in so many offers? Below is a compilation of some advice from several professionals in the
Forex market, which can be narrowed down to four basic criteria:

Reputation of the company


Evaluate the popularity of the platform provider whether
there are any complaints about the services and what those
complaints are, what the customer service is and whether or
not profit payments are ever delayed.

Convenience of the user interface


1 2 3
You have to evaluate how easy and convenient it is to use the
platform and what analytical options and extra tools it uses. It
is best to check the user interfaces by opening demo accounts
offered by the best platforms.

Commission for paid transactions


The commission payments for transactions are described by the
spread, which is the difference between the bid and offer price
of the currency. The bigger the spread, the more you will have
to pay the service provider. Commission payments are usually
higher for independent platforms rather than commercial bank
Forex platforms.

Money transactions
The best platforms provide the opportunity to use wire
transfers or other online payment operators such as PayPal or
Money Bookers, which are the most convenient and easy
methods of receiveing funds.
For optimum results
recomended to
invest at least $250

Platform Min. Deposit Max. Leverage Rating

1 $50 1:400 visit site


eToro*

2 $100 1:200 visit site


Plus 500**

3 $25 1:200 visit site


Easy Forex

4 $500 1:500 visit site


FxPro

5 $100 1:300 visit site


Ducascopy
* eToro is a Social Investment Network.
**Plus 500 is a CFD only Service. Your Capital may be at risk.
best for
beginners

eToro is the world's leading social investment network with over 3 million registered
users from over 200 countries. The eToro platform is considered to be the most user
friendly and intuitive for beginners. eToro is known for its unique social trading
tools that let you see, follow and copy the best performing traders in the network.
You don't need to be an expert to invest like a top performer.

Pros Facts
Huge and active community Founded in: 2006
Super friendly yet powerful interface Registered in: Cyprus
Follow & Copy feature Regulators: CYSEC, MiFID
Between 80 -90% of Minimal deposit: $50
copied trades are profitable. Leverage: up to 1:400
Guru traders are obliged to write Spreads: EUR/USD 3 points
about their strategies to their followers Payments: Credit card, Paypal,
Great stock investments: Google, BankWire, MoneyBookers, Webmoney
Facebook, Amazon, Apple etc. Commissions: No*
Contacts: + 1-866-350-0881,
support@etoro.com
Cons
* Overnight commissions might be applicable
Spreads could be tighter
The trader lter could be more advanced
Trade history features need improvement

Platform pictures

visit site
editors

choice

A popular platform which has proven itself since 1999. Plus 500 is one of the rare
brokers listed on the London Stock Exchange. This platform has an app available for
mobile devices including the iPad, which allows you to make transactions wherever
you are (Highest rated broker in UKs app store). Plus500 is suitable for experienced
traders and not beginners. Plus500 is a CFD service. *Your Capital is at risk.

Pros Facts
Bonus of $20 - $10,000 Founded in: 1999
Low xed spreads Registered in: UK
Listed on the London Stock Exchange Regulator: Financial Conduct
Fast account verification Authority.
Available in 35 languages Minimal deposit: $100
Accessible everywhere (web, iPad, Leverage: up to 1:50
iPhone, Android and Windows phone) Spreads: EUR/USD 2 points
Payments: Credit card, Paypal,
Skrill, Bank Wire
Commissions: No*
Cons Contacts: +44 203 002 7290,
support@Plus500.com
Scalping not allowed
Very basic charting for the mobile app * Overnight commissions might be applicable

Platform pictures

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best of
all-in-one

A user friendly, yet professional and trustworthy platform that has trained many
professionals. This platform offers one of the easiest sign-up processes as well as
multiple payment receival options. A pleasant feature is the super low minimal
deposit - just $25. With one trading account, you can trade from your desktop, smart
phone, iPhone, BlackBerry, or PDA. The variety of market reviews and analysis tools
offered by this platform is remarkable, all of which will help you make the right
decisions.

Pros Facts
Very easy & fast sign-up Founded in: 2003
Low minimal deposit Registered in: Cyprus
Free market analysis Regulators: CYSEC, MiFID
Minimal deposit: $25
Leverage: up to 1:200
Spreads: EUR/USD from 3 points
Cons Payments: Credit card, Paypal,
Bank Wire
High overnight fees
Commissions: No*
Relatively high spreads
Contacts: cs@easy-forex.com

* Overnight commissions might be applicable

Platform pictures

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FxPro has been a major player in retail FX since it was established in 2006, and has
quickly risen through the ranks to become one of the largest and most influential
brokers in the world. Regulated by both the UKs FCA and the CySEC FxPro is a truly
global broker serving clients in over 150 countries worldwide. FxPro has been a force
for change in the industry, leading by example it continues to campaign for
increased levels of transparency and for the eradication of any and all conflicts of
interest between broker and client. When FxPros clients take a position on the
worlds markets they receive the very best bid and ask prices, executed rapidly, and
with no intervention from a dealing desk. FxPro offers also a true ECN trading with
spreads from 0 pips on the major pairs.

Pros Facts
No Dealing Desk intervention Founded: 2006
Insured Client Funds Headquarters: Limassol, Cyprus
Negative Balance Protection Regulated by: FCA, CySEC
Commission-less trading Minimum Deposit: $500
Leverage from 1:1 to 1:500 EUR/USD spread: 1.5 (average
Offers also ECN trading spread)
Best tools in the market Max Leverage: 1:500
Money Withdrawals: Processed
within 1 business day
Commissions: No Commissions
Payment Options:Visa/MasterCard,
Cons Bank Wire, Skrill, Neteller, and more.

$500 minimum deposit

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Ducascopy is one of the most reliable and secure brokers out there. Dukascopy
Europe is a European subsidiary of Dukascopy Bank of Switzerland. It is a heavily
regulated broker and secured by governmental regulations up to 20000 EUR per
customer. Ducascopy Europe is one of the safest places to trade and also provides
the lowest spreads and highest liquidity.

Pros Facts
High security Founded in: 1998
Low spreads Registered in: Latvia (Europe)
Scalping, hedging etc. allowed Regulators: Swiss Financial
Markets Authority
Minimal deposit: $100
Leverage: up to 1:300
Cons Spreads: EUR/USD ~ 1.4 pip
Payments: Credit, Debit Cards
Slightly longer registration process
Commissions: from 10 USD /
Trading commissions
1million USD deposit
Contacts: info@dukascopy.eu

Platform pictures

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Thanks for reading!
Visit our web page to get the latest tips
and strategies!

www.forexillustrated.com

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