RapidBrainsForex

#AchieveBeyondYourself
Triple T Forex Training
 What you should know
• Before you get into this business you need
to know a few things which will define your
journey as a trader

• Like any other business forex can earn you

money and also it can take away the little
you have
Remember
 Profiting through Forex Trading
• It is possible to consistently make profit
forex trading. To achieve this end you need
to do the following.
• Learn and master the trading techniques
this is vital as it will help you to understand
the market and effectively manage you risk
and maximizing your profits.
 Profiting through Forex Trading
• Follow the trading rules
• If you want to become a successful forex
trader, there is a real need to follow rules as
well as develop strong trading habits
• Prior to starting your day trading, it's
essential to go through your trading rules
this will help you to be disciplined and
manage yourself throughout the day
Always follow the rules
 How to make money
• One way which is the harder way and, in
most cases, the impossible way, is following
too many trading strategies, robots and
time-frames, and sitting at the computer
for several hours per day. That is the hard
way which can hardly take you to your
destination.
 How to make money
• Simpler and easier way is learning the Forex
trading basics, and then build a simple but
strong trading strategy. Then you have to
master your trading strategy on a demo
account. When you succeed to make profit
consistently for 4 to 6 weeks at least, you
can open a small live account and start
practicing with it.
 Patience pays
• Then take your time and grow your account
slowly. Don’t get too excited as emotions
however positive or negative may impact
your trading negatively. Be calm and repeat
the same process you to grow from $500 to
$10,000.
• Remember it wont happen in one night you
need to be patient
 Becoming a Successful Trader
• First thing you need to do is to understand
What do you want to achieve? In doing this
you need to be realistic.

• Set realistic and quantifiable goal e.g.

• Achieve a certain percent of annual return on
investment
• Earn 5000 USD of annual profit
• Get a total of 200 pips per month or
something similar.
 Becoming a Successful Trader
• Once your annual or monthly goals are set it
is time now to start learning how to achieve
it.

• The best way is to identify which resources

are available to you which include, Trading
skills, willingness to learn, funds, time and
emotional preparedness
 Action plan
• Your action plan should include
• The trading strategy
• The currency pairs you are planning to trade
• The number of trades you are going to
commit to.
• The amount you are willing to risk
 WINNING RULES EVERY TRADER
MUST FOLLOW
• FOLLOW THE TRADING SYSTEM
• Make sure you have one trading system that
you follow all its rules. Do not jump from one
place to another.
• PLAN YOUR TRADES AND TRADE YOUR PLAN
• Always take trades that you planned to trade
and not jumping on a trade bse someone told
you it is buying or selling. Always trade your
plan
 WINNING RULES EVERY TRADER
MUST FOLLOW
• WAIT FOR THE BEST SETUPS
• Don’t chase trades wait for opportunity to come
to you. Do not look for setups everyday bse you
will see crap setups and be tempted to take
them. One good trade is all you need to pay your
bills if you prepare and wait.
• ATE ALL THE PIPS, NOT ALL THE MONEY
• Your focus should be on the number of pips you
earn every week or month not the money you
make.
 WINNING RULES EVERY TRADER
MUST FOLLOW
• DON’T FIGHT A WAR WHICH YOU CAN’T WIN
• Do not try to be right in the market. Concentrate
on eating them pips. Don’t try to be a sniper, you
can make money even if you not a sniper.
• NEVER OVERTRADE IF YOU ARE NOT WILLING
TO OVERLOOSE
• Over-trading does not help you make more money.
It causes you to lose your money faster. It is
possible to double your account in short time but
you will be vulnerable to losing it all next day.
 WINNING RULES EVERY TRADER
MUST FOLLOW
• DO NOT RISK TOO MUCH MONEY
• If you want to be successful in this business
you need to control your risk. Don’t ever open
a big account to make your broker greedy.
Start small raise the account and always
withdraw your money. And repeat the process
• But you will be able to do this only if are
consistent.
 WINNING RULES EVERY TRADER
MUST FOLLOW
• I DO NOT COMPETE WITH THE OTHER
TRADERS
• In Forex trading, it is ridiculous to compete
with the other traders, because any trader
has a different style. Any trader looks at the
market from a different angle, so traders
cannot compete with each other.
• Be disciplined enough to follow your own
trading system and style.
 WINNING RULES EVERY TRADER
MUST FOLLOW
• TAKE CARE OF YOUR MIND, NOT YOUR TRADES
• When you make a LOSS, its not a bad day, forex is
not a scam, it was just a bad trade… just like ALL
business, there are profits and losses. If you
beat yourself up for making a bad trade, then
you will not move on to make the good trades
• Losing is part of business, if you can’t deal with it
then you are in the wrong business. Know how to
control your mind when in profit and when in loss.
 WINNING RULES EVERY TRADER
MUST FOLLOW
• YOU ARE THE CEO
• you are the one that is responsible for failure
or success in your trading journey. For you to
be a successful and consistently profitable
NEVER expect anyone to tell you to put in this
trade or study this chart
• Negative emotions will get you in big trouble
and will show you flames. Be sure you follow
your plan and system not your emotions
 WINNING RULES EVERY TRADER
MUST FOLLOW
• THERE’S TRADING AND THERE’S LIFE.
ENJOY LIFE!
• If you allow to be consumed by trading 99%
of your day, then in the end you will be so sad.
You need to get out and socialize with people,
enjoy life, spread love, Share positivity.
• Take some of your profits invest into other
businesses, go on vacation, help people with
knowledge, find new interests, grow your bank
account and make your loved ones happy.
 So What is Forex Market?
• This is where banks, businesses, governments,
investors and traders come to exchange and
speculate on currencies. Forex Market is an
exciting place. The one good thing about
entering into the forex market is that you
can trade anytime as per your convenience.
 The Forex Market
• The global Foreign exchange market (‘FX’,
‘Forex’ or ‘FOREX’) is the largest market in
the world as measured by the daily turnover
with more than US$5 to $7 trillion a day
eclipsing the combined turnover of the
world’s stock and bond markets
 The Forex Market
• Forex trading as it relates to retail traders
(like you and I) is the speculation on the
price of one currency against another.
• The market has many advantages of which
are not available in the other markets.
 WHAT IF FOREX TRADING?
• FOREX (also known as FX) stands for
FOReign Exchange. The forex market is an
international trading market where banks,
businesses, and public and private investors
of all the countries in the world can obtain
and exchange their respective currencies so
as to perform commercial transactions or
simply speculate
 Forex Trading
• This market functions in a different way
from the stock market; the stock exchange
has a fixed daily schedule for opening and
closing, whereas the FOREX is open 24 hours
a day, five days a week nonstop. Forex is the
biggest financial market in the world with
daily turnover of between $5 and $7 Trillion
 Forex Trading
• Forex Market was established to facilitate
international trade and make it easier to
buy those currencies which specific mega
corporations or banks need at that specific
moment
• This have changed dramatically in recent
years are about 90% of transactions are of
speculative origin.
 Forex Trading
• Technological advancement made it possible
for even small speculators like you and me
can take part to this big market.
• There is a broad electronic network that
allows central banks from all over the world
to share their quotes and actual currency
rates. This is known as the Interbank.
 Forex Trading
• When you are transacting on the FOREX
market, you are simultaneously buying one
currency and selling another. Currencies are
always traded in pairs, for example, pound
sterling/U.S. dollar (GBP/USD) or U.S.
dollar/Canadian dollar (USD/CAD)
 Currency Trading in Pairs
• You would be executing a trade when there is
an expectation that the currency you are
buying increases in respect to the one you
are selling. If the value of the currency you
have bought effectively increases, you then
would sell the position and take a profit.
• WHY SHOULD YOU TRADE FOREX?
 Why Forex Trading?
• Leverage
• Leverage is the mechanism by which a trader
can take position much larger than the initial
investment. Leverage is one more reason why
you should trade in forex
• In some Stock exchanges you can use up to 5:1
leverage. In currencies brokers will offer you
from 100:1 to 2000:1 leverage. This enables
you to trade with virtually any amount of
money and still make nice cash.
Leverage
 Forex Market Never Sleeps

• The market is open 24 hours per day, which

means you can trade any time of the day.
You can open positions during Asian,
European or American sessions.
• The market does not close during the week
day and if you see some unfavorable price
action you may close your position any time
you want.
 Long or Short
• Forex, unlike other financial markets does not
have any rules for shorting. A lot of markets
do not allow this feature at all. It means you
need to buy first, before you can sell

• In currencies, you can short any time you

want. And you will not have to pay any extra
fees.
 No restrictions

• You can day trade by opening as many

positions as you want (in a single day). Those
traders who like “scalping” market can do
that in currency market easily and without
any extra charges. In fact, you can open and
close a position within a few seconds.
•
 Low transaction cost

• Fees for opening trades are far smaller

than you would pay trading stocks or other
securities.
• Some brokers may offer you a spread (the
difference between buying and selling price)
of 0.5 or even lower than that in some of
major pairs, such as eur/usd or usd/jpy.
 No commission

• Most brokers do not charge additional fees

or commissions to buy or sell currencies.
• This is so because of the use of a fixed
spread that is consistent and transparent.
The cost of a buy/sell in the FOREX market
is much lower than in any other market (e.g.,
stock, futures, etc.)
 Forex Trading
• Trade transparency
• Orders are executed instantly. In normal market
conditions, the execution of orders at a given
price is done instantly. The trader places the
order at the quoted price, which is being updated
in real time
• Real time execution
• There is no difference between the price shown
by the broker and the price at which the purchase
order is executed. There are special conditions,
 Accessibility
Getting started as a currency trader would
not cost a ton of money especially when
compared to trading stocks, option or future
market.

We have online forex brokers offering “mini”

or “micro” trading accounts that let you open
a trading account with a minimum account
deposit
 WHO TRADES FOREX
• Central Banks
• Banks
• Hedge funds & Investors

• Companies & Corporations

• Retail traders and small investors

 FOREX TRADING STYLES AND
STRATEGIES
• WHAT KIND OF TRADER AM I?
• Do you have time
• Are you patient or impatient?
• Are you inclined more on fundamentals and
economics or technical side of trading?
• After knowing all these you will be in position
to choose the best strategy for you and
practice it on demo before you start risking
your real money.
 TRADING TECHNIQUES

• In long-term trading, traders base their

analysis on end-of-day data and look to hold
trades for a few weeks or even up to many
months. They usually follow the trend. The
advantages of long-term trading are that
• There is no need to watch the markets
intraday and that traders perform much
fewer transactions, thus lowering any
commission costs.
 Long-term Trading
• Long-term traders will need to set much
larger stops and will experience large equity
swings. Thus, they will need to be well
capitalized and prepared for this
eventuality
• Much patience is needed to wait for a trend
to develop to its full potential.
 Short term Traders
• In short-term trading traders will depend on
the analysis of intraday data and aim to hold
their positions for a few days or up to one or
two weeks
• The advantages of short-term trading are that
there are much more opportunities for trades
• Day traders have to confront more difficulties
psychologically because of the frequency of
trading and having to monitor the markets
constantly
 SCALPING
• The main idea behind the scalping strategy in
FOREX trading is to take very small profits
very quickly from very small movements of
price, such as 5 to 10 pips. The trades
normally are entered and exited within
minutes or even seconds.
• Small profits add up because the number of
daily trades can be very high, ranging from
20 to 100 trades on average. Scalping is
considered to be a risky trading style.
 INTRADAY TRADING

• Intraday or day trading is a technique that

requires all positions to be closed at the end
of each day.
• Traders can use a variety of technical
analysis tools and wait for the appropriate
signal or opportunity to open a position
• Lower time frame can be used to pin point
better entries.
 SWING TRADING
• Swing trading is a style which is centered
around executing trades based on medium
term market views. Swing trades are those
which are normally held anywhere from
several days or weeks

• A higher timeframe chart such as daily,

weekly and monthly should be used for
analysis
 POSITION TRADING
• This is a long-term trading approach, where
traders hold positions for months, sometimes
even years.
• Position traders are concerned with long-
term outcomes. Daily price movements and
short-term market corrections, which can
reverse price trends, do not affect trading
decisions. Such traders allow their positions to
fluctuate in-sync with the general market
trends over the short term.
 NEWS TRADING - STRADDLE

• A straddle is the action of placing both a

buy and a sell pending stop order above and
below the current price. No direction is
expected, and the trader prepares for the
eventuality of a move either way

• To me this is gambling and if you do not want

to be a gambler then this is not for you.
 BASIC FOREX TERMINOLOGIES

• Exchange Rate – The value of one currency

expressed in terms of another. For example,
if EUR/USD is 1.3200, 1 Euro is worth
US$1.3200.
• Pip – The smallest increment of price
movement a currency can make. Also called
point or points. For example, 1 pip for the
EUR/USD = 0.0001 and 1 pip for the USD/
JPY = 0.01.
 BASIC FOREX TERMINOLOGIES
• Lot - A unit of measurement that measures
the amount of the transaction.
• Leverage – Leverage is the ability to gear
your account into a position greater than your
total account margin
• Margin – The deposit required to open or
maintain a position. Margin can be either
“free” or “used”. Used margin is that amount
which is being used to maintain an open
position, whereas free margin is the amount
available to open new positions.
 BASIC FOREX TERMINOLOGIES
• If a trader’s account falls below the
minimum amount required to maintain an
open position, he will receive a “margin call”
requiring him to either add more
BASIC FOREX TERMINOLOGIES
• Spread – The difference between the sell
quote and the buy quote or the bid and
offer price
BASIC FOREX TERMINOLOGIES
• Bid Price – The bid is the price at which the
market (or your broker) will buy a specific
currency pair from you. Thus, at the bid price,
a trader can sell the base currency to their
broker
• Ask Price – The ask price is the price at which
the market (or your broker) will sell a specific
currency pair to you. Thus, at the ask price
you can buy the base currency from your
broker
 TYPES OF ORDERS
• Long position - also known as simply long—is
the buying of a stock, commodity, or
currency with the expectation that it will
rise in value
• Short position - also known as simply
short—is the selling of a stock, commodity,
or currency pair with the expectation that it
will fall in value
 TYPES OF ORDERS
• Buy limit order is placed below current
market price and it is executed when price
falls to that leve
• Sell limit order is placed above current
market price and it is executed when price
rises to that level
• Stop loss orders are used to protect losses.
Traders need to limit their risks and they
determine how much they are willing to lose in
case the trade goes against them
 TYPES OF ORDERS
• Take profit orders -No traders can stay at
their computers 24 hours per day. If they
have a position open they may want to close
it at some point
• Trailing stop order is a combination of take
profit and stop loss order. Traders
sometimes have a profitable position and
they expect it to increase, but they do not
want to lose their profits
 TRADING PAIRS

• A currency pair is the quotation of two

different currencies, with the value of one
currency being quoted against the other
• The first listed currency of a currency pair
is called the base currency, and the second
currency is called the quotes currency.
 Trading Pairs
• The most liquid currency pair in the world is
EURUSD because it is the most heavily
traded
 Trading Pairs
• Major Currency Pairs
• The currencies that trade the most volume
against the U.S. dollar are referred to as the
major currencies. These include the EUR/USD,
USD/JPY, GBP/USD, USD/CHF, AUD/USD and
USD/CAD.
• Minors or crosses pairs
• Currency pairs that are not associated with the U.
S. dollar are referred to as minor currencies or
crosses e.g. EUR/GBP, GBP/JPY and EUR/CHF.
 Trading Pairs
• Exotic currencies pairs
• These Include currencies of emerging
markets. An emerging market economy is the
economy of a developing nation that is
becoming more engaged with global markets
as it grows.
• These pairs are not as liquid, and the spreads
are much wider. An example of an exotic
currency pair is the USD/SGD (U.S. dollar/
Singapore dollar). USD/ZAR, EUR/MXN, USD/
MXN
 Trading Pairs
• Other traded assets
• GOLD
• SILVER
• OIL
• Crypoto currencies
• CFDs such us Alibaba, Apple, Boeing, Coca
Cola, Disney just to mention a few.
 MARKET ANALYSIS
• Technical analysis
• Technical analysis is a method of predicting
price movements and future market trends
by studying charts of past market action
• Technical analysis is built on three essential
principles which were formulates by Charles
Dow
 The Dow Theory
• Market PRICE discounts everything!
• This means that the actual price reflects
everything that is known to the market that
could affect it
• Prices move in trends
• Technical analysis is used to identify
patterns of market behavior that have long
been recognized as significant.
 The Dow Theory
• History repeats itself
• Forex chart patterns have been recognized
and categorized for over 100 years and the
manner in which many patterns are
repeated leads to the conclusion that human
psychology changes little over time.
 Fundamental Analysis
• Fundamental analysis is a method of
forecasting the future price movements of a
financial instrument based on economic,
political, environmental and other relevant
factors and statistics that will affect the
basic supply and demand of whatever
underlies the financial instrument.
• Fundamentalist study the cause of the price
movement in the market but technical
analysts study the effect of price movement
 Sentiment Analysis
• The participants in every market, the traders
and the investors have their own opinion of
why the market is acting the way it does and
whether to trade in the direction of market
• This further helps in the overall sentiment of
the market regardless of what information is
out there.
• A combination of fundamental, technical and
sentimental analysis is the most beneficial
 MARKET MOVEMENT
• There are four major reactions that lead to
price movements.
• Buyers entering the market
• Sellers entering the market
• Buyers leaving the market
• Sellers leaving the market
• final price movement you actually see on your
chart is the resultant of the market vectors
listed above.
Up trend
Down trend
Sideways Trend
 FUNDAMENTAL ANALYSIS
• Macro-Fundamental Analysis - The Top Down
Approach
• This focuses on Employment, Inflation rate,
Growth Rate as well as numerous mixtures
of other Economic activities
 Macro events
• Fiscal policies
• These are regulations set by the government
relevant to taxation as well as spending.
• Neutral – Government spending is roughly
equal to its revenue.
• Expansionary – Government spending is
higher than its revenue.
• Contractionary – Government spending is
lower than its revenue.
 Fiscal Policies
• Let’s say a government has a budget deficit
due to an expansionary financial policy. To
finance the deficit, the government can
work with the central bank to print fresh
currency (also known as quantitative easing).
 Monetary Policies
• Monetary policy is put in place as part of a
strategy to keep control over Inflation and
achieve currency stability. This is achieved
by handling interest rate and control of
money supply
• It is directed more at financial markets, and
its effects in changes could be noticeable
right away
 Monetary policies
• Monetary policies involve controlling of the
following
• Money supply in order to control inflation
• Maintain or stimulate economic growth.
• Lower unemployment.
• Maintain a stable exchange rate.
 Monetary policy example
• To control inflation the central bank will
decrease money supply which can lead to a
slowdown in economic growth and
unemployment.
• Increasing money supply would lower
unemployment and increase economic growth
but will eventually lead to inflation.
 Monetary policy
• Most of the central banks have an inflation
target of around 2 percent and will use the
certain tools available to maintain their
targets.

• Remind me of website links to main central

banks that I always use to follow monetary
policies
 Elections and political events

• Elections are always viewed as a cause of

Volatility in Forex Markets
• For instance, an upcoming election is always
a major event for currency markets, as
exchange rates will often react more
favorably to parties with fiscally responsible
platforms and governments willing to pursue
economic growth
 Elections and political events

• The victory of victory of Emmanuel Macron

in France’s presidential election in France’s
presidential election election prompted
foreign exchange markets as the trading
week got underway.
• Euro was 3.5% up against dollar, resulting to
a 250 pips gap on EURUSD, the pair has been
bullish for months after the elections.
France Election 2017
Brexit Vote
 Central Bank Interventions
• When a state of the Economy abruptly
changes or when the Market misconstrues
economic indicators, Central Bank uses
Interventions to correct the course of the
currency and to adjust the Volatility
• Central Bank will sell its Reserves to correct
exchange rates if it feels that the currency
is too overpriced, or if it needs to boost the
Exports
Swiss Franc "Flash Crash"
 Micro Fundamental Analysis - The
Bottom Up Approach.
• Economic releases
• On a day-to-day basis, Currency's exchange
rate fluctuates because of imbalance in
Supply & Demand. Nothing more is so
powerful in affecting this imbalance as High-
Impact Economic releases. Others includes
• News Headlines
• Commentary from Gov. officials
• Geo–Political events
 TRADING THE NEWS
• Conventional trading style
• With conventional trading style a trader
expects the market to move to a certain
direction once the news report is released.
• The trader is supposed to look at what has
been happening in the past, and then
prepare for what might happen in the
future.
 How to trade with conventional style

1. Check the trend of the previous news

release
2. Check the news forecast or consensus, what
are the economy analyst saying about the
expected.
3. Take a trade if figure is as expected or way
better than expected.
 Logical trading style

• 1. Check Your Charts - Watch the Price

Action
• 2. Do the Research - Find the reasons “Why”
the currency is moving
• 3.Check the Macro Find out how the recent
activity is in line with Central Bank’s outlook
on the currency. What is their current
Monetary Policy?
 Logical trading style
• 4. Get the Entry
• 5. Manage open trades How effectively
you’re managing open positions will
determine your overall success. This what
helps me to manage my trades – set of rules
• Always protect yourself
• Never move the stop loss when the Market
goes against you
 Managing open position
• Allow the Trade to develop, “sit on your hands”
and do nothing
• When in profit 1:1, book 50 -70% of your
position – protect the profits at BE
• When in profit 3:1, 4:1 consider Exiting an entire
position
• Close an open trade before the Central Bank’s
meeting and minutes, unless you’re certain that
a position will not be negatively affected
IMPORTANT FUNDAMENTAL TRADING
TIPS AND GUIDLINES
• Check ahead Economic calendar for any
upcoming news releases
• Monitor Market reaction to recent economic
and news releases
• Evaluate the quality of your setup
continuously by monitoring the current Macro
conditions
• Don't chase the Market. Timing is everything.
Prepare yourself for the next trade
 Tips
• Be patient
• Always know yourself emotionally, trade
number of lots you are comfortable with
• Do not trade when you are sick, have family
issues or just simply tired
 4: TECHNICAL ANALYSIS
• Technical Analysis is the study of how prices
in freely traded markets behaved.
• It is an on-chart examination of the
respective currency pair in an effort to find
price patterns that can provide clues into
future price movement
• Dow Theory is the basis of technical analysis
of financial markets. The basic idea of Dow
Theory is that market price action reflects all
available information
Market move in trend
Trend phases
 Important terminologies in technical
analysis
• Bull Market A long period of time when the
general trend of securities prices is up
• Bear Market A long period of time when the
general trend of securities prices is down
• Consolidation A pause in a trend with the
expectation the trend will be resumed in the
same direction
• Reversal Pattern A characteristic pattern
that signals the end of an up or down move
 Important terminologies in technical
analysis
• Pullbacks are also named "corrections" and "
retracements." Movement against a stock’s
trend that does not break or reverse the
trend buy merely corrects an overbought or
oversold condition
• Breakout When s price exceeds previously
recorded high or low
 PRICE ACTION TRADING
• In simple terms, price action is a trading
technique that allows a trader to read the
market and make subjective trading
decisions based on the recent and actual
price movements, rather than relying solely
on technical indicators
• You must always remember that price is the
heart of any financial market
 PRICE ACTION TRADING TOOLS
• Charts
• Line Charts This chart is the simplest chart
and doesn’t give much detail.
 Charts

• Bar Charts
• A bar chart reveals slightly more
information than the line chart. You see
both closing and opening prices in a bar
chart.
• So, if you look at a 1-hour chart, each bar
represents 1 hour
The Bar
The Bar Chart
 Candlestick Charts

• This is the most popular and widely used

type among all the three types of Forex
charts. Unlike a bar, the candlestick has
body
Candlestick chart
 Trendlines

• A trendline is a line connecting two or more

lows or two or more highs, with the lines
projected out into the future
Trendlines
Support and Resistance
 Top lies you have been told about
support and resistance
• Lie No. 1. The more times Support or
Resistance is touched, the stronger it
becomes
• The big boys (the sharks) know where the
dumb money is and they love eating dumb
money. I define Dumb money as money
traded by traders who buy and sell currency
at the worst possible time
Lies
 How and Why the support and
resistance are bleached/broken
• Undiscounted news event
• Price consolidation The longer price
consolidates near a support or a resistance
level, the weaker these levels become
• Price manipulation Usually the support and
resistance are the best places for the big
boys to manipulate the markets, because most
retail traders believe that these are the best
areas to put sniper trades
Consolidation
Price manipulation
Lie No. 2: Support and Resistance are
lines on the chart
• Many forex traders think that support and
resistance lines are just a fixed price level,
that once you’ve identified it, wait for price
to come to it and bounce off it or break it
and take a trade based on those setups.
• If you consider them as lines you’ll face these
two problems:
• Price “undershoot” and you miss the trade
• Price “overshoot” and you assume SR is
broken
Price “undershoot” and you missed
the trade
Support and Resistance as Areas in
the charts
Lie No. 3: Support and Resistance are
the best places to place your trades
• This is the most terrible thing 99% of traders
do, I am pretty sure that most traders lose
their money at the support and resistance
level.
• The question is what measurable variable do
you use to tell the difference between a
strong hold and weak hold at the S/R? what
criteria do you use to come to conclusion that
the market will make a U-Turn at the support
or resistance?
lies
 How to win on S/R trading
• Step 1. Mark your areas of Support &
Resistance
Step 2. Wait for a directional move
into SR
Step 3. Wait for a proper technical
feedback at SR
Step 4. Wait for a proper trend
confirmation
Step 5. Enter on the next candle with
stop loss beyond the swing high/low
Step 6. Set Take profits at the swing
high/low
 MOMENTUM
• Momentum in Forex is defined as the strength
of an upward or downward trend. Momentum
trading is when you are involved in trading
the acceleration of price in a strong trending
market.
• In forex, momentum trading is about time and
price. In simple terms an increase in
momentum happens when price increase (or
decreases) very quickly in a short period of
time.
How to read Momentum Candlesticks
How to read Momentum Candlesticks

• Which one of these candlesticks has more

momentum? Candlestick 1 or candlestick 2?
 A general rule of thumb
• If you see a candlestick continue to lose its
momentum and pulls back to 50% of its
range, then you can start to consider the
Bulls or Bears may be losing their battle in
that particular timeframe where that
candlestick was formed.
Losing Control
Decreasing bullish momentum signals
Decreasing bearish momentum signals
Momentum
 PRICE ACTION PATTERN
• When trading foreign currencies, the price
usually creates chart patterns or price
action patterns, usually these patterns can
provide indications whether the trend will
continue or reverse.
• Seeing and understanding patterns can give
you an advantage in the market
 TREND CONTINUATION PATTERNS
• Bullish and bearish flags
Bullish Flags
 Pennants

• These are continuation pattern which look

almost like flag except the flag is replaced
by a symmetrical triangle called pennant
Rectangles
Rectangles
Triangles
Triangles
Price channel
Trend channels
 TREND REVERSAL PATTERNS
• Head and Shoulders
Inverted head and shoulder
Head and shoulder
Double Tops and Bottoms
Double top
Double bottom
Triple Tops and Bottoms
Triple tops
Triple bottoms
 Spike (V) Reversal Pattern

• This is very difficulty to trade and better

to stay out of the market
Rounding Bottom
 CANDLESTICK PATTERNS
• Bullish and bearish engulfing patterns
• A bullish engulfing pattern forms when a
green candlestick’s body completely engulfs
the previous red candlestick, signaling
strong buying momentum which breaks above
the previous candlestick’s high
• The vise versa is true
Engulfing pattern
Hammer and shooting star patterns
 Doji pattern

• A doji pattern signals market indecision.

Neither buyers nor sellers managed to move
the price far away from the opening price,
signaling that a price reversal may be
around the corner
Doji
 PRICE ACTION SIMPLE HACKS
• BREAKOUTS
 How to trade a breakout like a pro
• Actually, it is not enough only to see the price
breaking through a certain level in order to
take a position in the respective direction

• We have prepared 4 steps for you, which will

confirm a breakout and we will set certain
rules for triggering a breakout trading
position.
Step 1: A price level is broken
Step 2: The price creates a top after
the breakout.
Step 3: The price retraces back to the
already broken level.
Step 4: Breaking the top
Step 5. Placing the order and SL
Example
Breakout pullback
Horizontal steps
 GAP TRADING
• Gaps are empty spaces between the close of
one candle and the open of another. They
are usually areas on a chart where the price
of a currency moves sharply up or down with
little or no trading in between
• Common Useless Myth: The Price Always Fills
the Gap
 Common Useless Myth: The Price
Always Fills the Gap
• Over the past few years, people have started
trading Sunday evening gaps in Forex, most
times these traders lose their money.

• The concept for this type of trade is the

same; gap traders think that the price will
always fill the gap.
• What do you think?
 Gap Trading
• Technically speaking, it always does, but this
doesn't really mean that the gap will be filled as
soon as it's formed.
• So which type of gaps should you trade?
• There are 4 types of gaps
• The Breakaway Gap
• The Runaway Gap
• The Exhaustion Gap
• The Common Gap
 The Breakaway Gap

• The breakaway gap usually starts a new

trend. The price normally breaks out of the
consolidation phase and proceeds up or down
with a strong momentum, leaving the gap
behind
• It happens after a consolidation period and
is usually triggered by breaking events. The
breakaway gap forms a new trend and is not
tradable
The breakaway gap
 The Runaway Gap

• Runaway gaps usually form within a trend.

They mark trend continuation, and trading
the continuation of a runaway gap is
probably one of the safest methods to trade,
especially when combined with other price
action tools, such as support/resistance,
trend lines
The Runaway Gap
 The Exhaustion Gap

• Exhaustion gaps are formed towards the

end of the previous trend and indicate the
final push in momentum before prices start
to lose it and reverse. Exhaustion gaps are
only tradable after the fact. They need to
be identified first, and then; traders start
trading a new trend.
The Exhaustion Gap
 The Common Gap
• The common gap is the most widely traded
gap and, in my opinion, also most people think
it’s the safest one to trade. These gaps are
defined by common chart patterns and
usually appear during late Sunday/early
Monday opens.
The Common Gap
 MONEY MANAGEMENT

• Know Your Risk Per Trade do not lose more

than 5% of your trading account balance
• Always Use Stop Losses this will protect you
from losing substantial amount on one trade.
You can also use trailing stop.
• Consider Reward-To-Risk Ratios of Trades
consider at least 1:2 risk to reward ratio.
 MONEY MANAGEMENT
• Use Leverage Wisely the higher the leverage
the riskier it is incase a trade goes wrong.

• Don’t Trade Based on Emotions have strict

written trading plan and a clear trading
strategy and follow them like a robot.

• Keep a Trading Journal and Learn Along the

Way
Example of a Trading plan
 The Ugly Truth
• The large MAJORITY of Forex traders all
around the world make more winning trades
than losing trades.
• The large majority of these exact same
traders also go on to consistently lose money.
 The Ugly Truth
• Stanford university recently carried out a
study of 53 million trades from 2017 – 2018
to look at trader stats and some super
surprising results came out.
• 70% of trades by retail traders are usually
winning trades, 7% of trades by retail
traders are usually BE trades, 23% of
trades by retail traders are usually losing
trades.
Tips to improve your risk management
• Setting orders and the risk:reward ratio
• Always use breakeven strategy
• Never even use fixed stop distances
• Don’t use daily performance targets think of
following your trade plan and trading
strategy
• Position sizing like a pro determine the right
lot size to use given your account balance and
your RR
 TREASURY TRADING TRICKS
• Have you ever asked yourself why is it that it is
for the footballers to play the matches, but
once there’s bad results it’s the couch who gets
sacked? Why?

• If you are a soldier and going into a war against

a very tough opponent who has invested a lot of
money for skills, equipment, technology people
and other resources. What do you do?
•
 TTT Introduction
• Study your enemy closely, what his
tendencies, behaviors and tools are, and
what makes him react the way he does?

• Knowing your enemy is the key to your

success and not just getting into the battle
zone and hoping for the best
 Know thy enemy
• 99% of traders can learn every Forex trading
strategy in the book, and it won’t matter. It’s
all a waste of time. They always end up losing
it all to the enemy because they don’t know
the enemy.

• It is very easy, actually you really don’t need

to fight the enemy, you just need to play the
enemy game
 WHO CONTROLS THE PRICE OF THE
FOREX MARKET?
• Forex market has 5 - 7 trillion-dollar
volatility per day. It would take entities
with extraordinary trading capital to move
such a market every day like that. Me and
you are just some anonymous fish in a pool of
sharks
 The Enemy
• There exist entities which have the muscle to
move the market. These are our “enemies”. I
refer to them as the “SHARK Banks”. The
sharks own ALMOST 65% of the market
• 1. Citi 16.1% 2. JP Morgan 14.5%
• 3. UBS 8.1% 4. Deutsche 7.7%
• 5. BAML 7.3% 6. Barclays 6.2%
• 7. Goldman Sachs 5.4% 8. HSBC 3.7%
• 9. XTX Markets 3.4% 10. Morgan Stanley 3.4%
 The Enemy
• FACT: The SHARK BANKS make up 5% of all
traders in the forex market yet they are
responsible for 95% of all volume that goes
through the market.

• What absolutely is important, is for you to

know that the SHARK BANKS can manipulate
the market and how they actually manipulate
price
 The Enemy
• Your job as retail trader is very simple:
– Know the shark bank's way of trading the forex
market.
– Join their trades.
• What the SHARKS do…
• These guys have huge capitals and more
information, they can clearly move the
market to their desired direction
 What the SHARKS do…

• Usually they make money the moment you

lose money.

• So, they usually make profits by trading the

opposite direction of retail traders,
individual investors, institutional investors,
fund managers, dumb commercial banks etc
 What the SHARKS do…
• The sharks invented the WRONG way to trade so
that retail traders can get trapped, they
invented

• Trading indicators, Trading robots, Learning

materials
• Wrong way of trading news (fundamental
analysis), Wrong way of trading patterns

• Wrong ways of placing orders (entries, stops and

pending orders)
 The Sharks
• So, when the SHARKS enter into the market, they
have a lot of weapons like

• They know where MOST dumb money will be placed

• They know when the dumb orders will be placed
• They know where the dumb SL will be placed
• They know amount of dumb money that has been
accumulated
• They know the amount of money to push the
market against the dumb side
Let’s take an example on GBPCAD
 What sharks do
• So, the SHARK will exactly place BUY trades
worth billion $.

• SELLERS start losing money because the

price keeps going up. SL are hit and accounts
are being liquidated
Vibua Get Slaughtered
 Then…
• The price went 400 pips against sellers. So
many accounts have been blown away.
• Good news for dumb traders is that the
market just reached the STRONGEST
resistance. A resistance that hasn’t been
broken for so many months
• Everyone is now optimistic to return their
money back.
Massive Selling
 Then…
• The sharks can see $100 billion. Now that’s
some really SWEET PROFIT.
HULAAAAALAAAA

• Look what they actually do. HAHAHAHA

Boom
 What would a smart traders do?
• Ignore unnecessary noise from IG, WhatsApp
groups and telegram channels.

• Trade patterns in a logical way

• Have some cool entries and proper SL

• Relax and wait for the market to do its thing

This is how you would have done it
 Sharks
• This movement will continue this way over and
over again.
• Dumb traders will continue losing their money
while SHARKS will continue making money.
• The SHARKS are very smart, very smart in
indeed
• They wouldn’t let the dumb guys lose money
ALL the time. SOMETIMES they will let them
make some profits. And feel like Forex is easy.
 THE BLACK JACK THEORY
• The house (casino) let the players WIN some
of their bets, and can gain advantage and
feel confident over the casino.
• Now, the player will ADD more money, they
will have more confidence, energized.

• This is a principle SHARKS use ALL the times

to boost up dumb traders
• The next time these traders get into the
market… THIS THING HAPPENS
THE BLACK JACK THEORY
 THE SWISS FLASH CRASH

• It happened in January 2015.

• The EUR/CHF market crash was one of the
most memorable events in the history of
forex trading.
• This is wat happened…
• Jan 2011 Swiss exports rose worth 70% of
their GDP
 THE SWISS FLASH CRASH

• Swiss became very strong, in Sept 2011 SNB

fixed CHF against EUR so that exports
becomes cheap
• May 2012 SNB printed many CHF to balance
EUR exchange rate
• In 2014 CHF started again becoming very
strong and expensive
 THE SWISS FLASH CRASH
• Same year SNB Started lowering CHF value,
though CHF was still stable

• Now everyone started complaining about it.

The swiss and foreigners kept pressure on
SNB to destabilize CHF
 THE SWISS FLASH CRASH
• SNB started promising everyone that they
will SURELY create inflation so the CHF
depreciates

• At this point ALMOST ALL of forex trader

was buying EURCHF. Believing that CHF will
get weaker against other pairs especially
EUR
 THE SWISS FLASH CRASH
• Actually, traders were 70:1 long: short this
is almost 99% of all traders were BUYING
EURCHF

• Here is the chart

THE SWISS FLASH CRASH
 THE SWISS FLASH CRASH
• SNB promised everyone that price won’t go
below past 1.20000
• Everyone was very assured that this thing
will go up…
• All the economic news analysts were
speculating that swiss will weaken probably in
JAN 2015
• Every trader was eyes wide open at EUR CHF.
 THE SWISS FLASH CRASH
• Early Jan 2015 BUYERS started dominating the
pair, hoping to make 400+ immediately

• As days went on more BUYERS got into the

trade

• On Jan 14 SNB notified the public that on Jan 15

they will be balancing the price of CHF so that it
would be easier to exchange the currency
against other currencies
 THE SWISS FLASH CRASH
• Early Jan 2015 BUYERS started dominating the
pair, hoping to make 400+ immediately
•
• As days went on more BUYERS got into the
trade
•
• On Jan 14 SNB notified the public that on Jan 15
they will be balancing the price of CHF so that it
would be easier to exchange the currency
against other currencies
THIS IS WHAT HAPPENED ON THAT
DAY
 The Crash
• A lot of companies were sued for this
manipulation
• SNB was also held responsible for this
movement.
• All the BUYERS lost their money on this day
• The worst thing is that MOST or ALL of the
stop loss orders were not executed
• Even some retail banks, hedge funds and
some brokers lost the money
 DO NOT FOLLOW THE CROWD
• AT ANY TIME ‘T’ AVOID TRADING THE
DIRECTION WHICH EVERYONE ELSE IS
TRADING…

• AT ANY TIME ‘T’ AVOID TRADING THE

DIRECTION WHICH EVERYONE ELSE IS
TRADING…

• AT ANY TIME ‘T’ AVOID TRADING THE

DIRECTION WHICH EVERYONE ELSE IS
TRADING…
 MARKET SENTIMENT INDEX

• This is a very important tool which looks at

the number of long and short trades on a
particular market.

• It is by far a very important and useful tool

in my trading strategy. But yet you wont
always see it on most of forex trading books,
forex trading websites and blogs
 MARKET SENTIMENT INDEX

• This tool will give you 3 MOST important

information when you want to trade
• Tells you where the dumb money is and the
volume of the dumb trader on a specific pair
• Tells you where the SHARKS did ‘BLACK
JACK THEORY’
• Tells you where to place your trades like the
smarts SHARKS
Examples
Example
More examples
Some More
Last one
 HOW TO TRADE LIKE THE BIG
SHARKS AND MAXIMIZE YOUR WIN
RATES
• Step 1: check your charts to understand the
PRIMARY trend, and keep an eye on the
secondary trend
• Step 2: Do research to gather information
why the market is going towards that trend
• Step 3: Place your Price Action tools on the
charts
 JOINING THE BIG SHARKS
• Step 4: know where to place your orders,
your entry point, SL point and TP point
• Step 5: Get to check if you are exposed or
you are low key using market sentiment
index at
• https://www.dailyfx.com/sentiment-report
this will help you to know if you are on the
DUMB side or SHARKS side of the market
 How to use the traders/market
sentiment index
• Before opening a trade, it is important to
analyze current market sentiment

• Buy when atleast 60% of traders are short

• Sell when most of them 60% are long. This is

the most common logic of the market
sentiment analysis.
 END

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PIPS
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