The Day Trade Forex System: The ULTIMATE Step-By-Step Guide to Onine !urren"y Tradin# $%o& 'ou !an Earn ()* to ()** A Day !urren"y Tradin# From The !om+ort o+ 'our O&n %ome, By Ero Bortu"ene and !ynthia Ma"y
.IS/S DIS!LAIME. Erol Bortucene/Cynthia Macy, Owners of DayTradeForex.com and any of their affiliates, will not be held resonsible for the reliability or accuracy of the information a!ailable in this document. The "ontent pro0ided is put +or&ard in #ood +aith and 1eie0ed to 1e a""urate2 ho&e0er2 there are no expi"it or impi"it &arranties o+ a""ura"y or #uarantees that the readers o+ this "ourse &i ma3e pro+its tradin# !urren"ies4 The reader a#rees not to hod Ero Bortu"ene or !ynthia Ma"y2 or any o+ its a++iiates2 ia1e +or de"isions that are 1ased on in+ormation +rom The Day Trade Forex System4 Mar"ined Currency Tradin" is an extremely ris#y form of in!estment and is only suitable for indi!iduals and institutions caable of handlin" the otential losses it entails. The funds in an account that is tradin" at maximum le!era"e may be comletely lost if the osition$s% held in the account exeriences one ercent swin" in !alue. &i!en the ossibility of losin" one's entire in!estment, seculation in the forei"n exchan"e mar#et should only be conducted with ris# caital funds that, if lost, will not si"nificantly affect the in!estor(s financial well)bein". There is no "uarantee that readers of this document or our websites will ma#e money. *eaders use the information and lin#s entirely at their own ris#. Erol Bortucene/Cynthia Macy owners of DayTradeForex.com do not accet any liability in resect of any loss or dama"e arisin" from or in connection with any use of the information on or accessed throu"h this document or our comany websites. +ll intellectual roerty ri"hts in this reort remain the roerty roerty of DayTradeForex.com DayTradeForex.com --, - Coyri"ht DayTradeForex.com
5 6**7 !opyri#ht !opyri#ht DayTradeForex4"om DayTradeForex4"om A .i#hts .eser0ed4 8o 9art o+ this pu1i"ation may 1e reprodu"ed or transmitted in any +orm or 1y any means2 ee"troni"2 me"hani"a2 re"ordin# or other&ise &ithout the prior permission o+ DayTradeForex4"om DayTradeForex4"om
The Day Trade Forex System: The ULTIMATE Step-By-Step Guide to Onine !urren"y Tradin# $%o& 'ou !an Earn ()* to ()** A Day !urren"y Tradin# From The !om+ort o+ 'our O&n %ome,
Did you #now that more and more business oortunity see#ers worldwide are disco!erin" the po&er+u pro+it potentia of tradin"0 1n this potentia of Forei"n Exchan"e tradin"0 business, there are no emloyees to hire, no ad!ertisin", no roducts to stoc#, no downlines to fill))2ust you, an 1nternet connection and a comuter. That's all you need to ma#e money on the worlds worlds lar"est mar#et. 1f you are searchin" for an alternati!e to more traditional home)based business oortunities, then Forex tradin" may be what you(!e been loo#in" for. Our urose is to emower, mentor and train currency traders all around the world who would li#e to Day Trade Forex as their main source of income. For those loo#in" for a si"nificant art)time income, we belie!e Currency Tradin" is the !ehicle to use. Our aim is to assist you to3 1. 2. 3. 4.
4tay Dis"ipined5To Dis"ipined 5To learn how to mana"e ris# effecti!ely. 6ee O1e"ti0e5To O1e"ti0e 5To trade in a non)emotional, intelli"ent way. !on+iden"e 5To #now exactly when to trade. Trade with !on+iden"e5To Become Systemati"5To Systemati" 5To "enerate your own Forex buy/sell si"nals.
The "oal is to earn ()* to ()** per trade and trade and minimi7e losses on losin" trades usin" technical indicators on charts, which 1 will exlain later on in this course. The otential to rofit is there there for those who trade this system. The "reat thin" about Forex tradin" is that you can test this system for F*EE on a demo account usin" !irtual money, before you ris# one enny on actual trades. 8ou will be able to 2oin my team of traders as you ad!ance ste)by)ste throu"h this "uide. 9e will be"in by exlainin" what Forex is and all the benefits of tradin" currencies
;%AT IS FO.E< The Forei"n Exchan"e, also referred to as the :Forex: or :4ot F;: mar#et, is the lar"est financial mar#et in the world, with o!er i sreads in the Ma2or Currency airs. The best firms offer clients )> is. -. Kow minimum account oenin"s. For those that are new to tradin", and for those that don(t ha!e thousands of dollars in ris# caital to trade, bein" able to oen a mini tradin" account with only . Gi"h Ke!era"e 8ou want hi"h le!era"e5the ability to trade a lar"e amount with a small mar"in deosit. 4ome of the best firms offer .-> or L3= le!era"e. H. Ged"in" Caability 8ou want the flexibility of oenin" ositions on the same currency air in oosite directions without them eliminatin" each other and without mar"in increase Gere is a list of some of the main Forex tradin" Firms on the 1nternet. +fter a lot of research and ersonal exerience, the firm that 1 recommend with the abo!e) mentioned benefits is Caital Mar#ets 4er!ices KKC $CM4 Forex KKC%. 8ou can research the rest of the firms listed to see for yourself. NNCM4 Forex www.cms)forex.com +CM +d!anced Currency Mar#ets Fairlot Financial &rou Forex Caital Mar#ets &+1? Caital &C1 Financial, Ktd. &lobal Forex 1F; Mar#ets Kimited Kondon Caital Meridian Forex ty Kimited M& Financial &rou 4axoBan# Tricom
Step 64 Open a >isua Tradin#H Demo A""ount The first ste to tradin" the currency mar#ets is to oen a demo account. 1t is imortant that you learn how to buy and sell the currency airs, set sto losses, set rofit limits, and understand how le!era"ed mar"in wor#s when you trade. 1 found the best way to learn this is by exerience. To set u your F*EE chartin" from CM4, simly "o to their website and oen a isual Tradin"( Free demo account. The chartin" ac#a"e in this demo account ri!als, any Forex rofessional chartin" ser!ice and you will be able to set u the technical indicators that will aid you in your tradin" decisions. A.
&o to htt3//www.cms)forex.com and clic# on the 4i"n @( tab and scroll down to isual Tradin" Demo. Oen u a free demo account and you will "et your lo" in information sent to your email address.
?ow "o to the 4uort( Tab and scroll down to isual Tradin" Manual(. This manual will show you how the tradin" latform wor#s. 'ou &i need to read this 1e+ore pro"eedin# . The better you #now your way around this latform, the easier the next stes will be.
Step 7: Set up your "harts: +. One the left hand side of screen you will be able to choose your chart. Choose [email protected]
*/@4D $or whate!er currency air you li#e% , > min, line and the chart will aear on the ri"ht hand side. Maximi7e the chart to fill the ri"ht hand side.
8our chart should now loo# somethin" li#e this3
?ow if you want to ma#e the rice line dar#er, you can ri"ht clic# ri"ht on the rice line and a roerties box will aear. 8ou can ad2ust the thic#ness of the line. 1n this examle the rice line width is set it to -.
B. Before we add our studies to our charts, 1 would li#e you to "o to the followin" lin#s. *ead how to trade the arabolic 4+* here3 www.incrediblecharts.com/technical/arabolicPsar.htm *ead about how to trade mo!in" a!era"e crosso!ers here3 www.incrediblecharts.com/technical/mo!in"Pa!era"esPthree.htm *ead about how to trade Bollin"er Bands here3 www.incrediblecharts.com/technical/bollin"erPbands.htm N9e will be "i!in" examles of how to aly these studies to day tradin" Forex.
C. ?ow we will add the Mo!in" +!era"es to the chart. 9e will be usin" the Exonential Mo!in" +!era"e =, the Bollin"er Band Exonential 4et at -, and the Exonential Mo!in" +!era"e >. Clic# on Mo0in# A0era#e on the left hand side under 4tudies. 4et your first M+ to =*, close, exonential and you can ma#e it red with line width - under the Color/4tyle Tab. Clic# on Mo0in# A0era#e a"ain and add your M+ )*, close, exonential and ma#e this line 1ue with line width -. Gere is a shot of the Mo!in" +!era"e roerties window3
?ow "o to the studies on the left hand side of your screen 4elect Boin#er Bands and set them to -,-, close exonential. Ma#e the middle band "reen, line width -. +dd 9ara1oi" SA. to your chart by selectin" it on the left and use the default settin"s. Ma#e the dots dar#er, by selectin" line width -.
8our chart should now loo# li#e this3
8ou can 7oom in and out of your chart usin" the small buttons in the bottom ri"ht hand side of your screen. %o& To !han#e the !urren"y 9air and Time Frame 3 On the bottom of your chart, you can chan"e the currency air and ri"ht beside it, if you clic# on the button that says M> you can chan"e the time frame of the chart. The studies will automatically be added to any new time frame and currency air that you select. %o& to Exit the >T 9at+orm 9ropery: To exit the T latform, clic# on F1KE and then E;1T. The studies that you added to your chart will automatically be u the next time that you lo" in to your account. lease note that if you clic# x on the to left hand corner of your chart you will close the chart and reset your settin"s that you added. 1f you want to #ee your studies and charts intact you can minimi7e it or 2ust lea!e always #ee it oen to #ee your settin"s sa!ed.
?ow we will add 7 more indicators below the chart to hel us "on+irm the trend, and to hel us identify exact entry and exit buy or sell si"nals. The followin" indicators "i!e us insi"ht into the momentum, direction and o!erbou"ht/sold indicators. @sed alon" with the Exonential Mo!in" +!era"es, arabolic 4+* and Bollin"er Bands5these indicators can be !ery helful to the day trader.
MA!D %isto#ram4 *ead about how to trade the M+CD Gisto"ram here3 htt3//www.incrediblecharts.com/technical/macdPhisto"ram.htm .eati0e Stren#th Index .SIJ *ead about how to trade the *41 here3 htt3//www.incrediblecharts.com/technical/relati!ePstren"thPindex.htm So& Sto"hasti" *ead about how to trade the 4low 4tochastic here3 htt3//www.incrediblecharts.com/technical/slowPstochastic.htm ?ow add these studies to your charts. @nder 4tudies clic# on MA!D %isto#ram and use the default settin"s $J,Exonential, =-, -H, Close, Exonential% and set the line width to -. 8our study will automatically oen under your chart. @nder 4tudies clic# on .eati0e Stren#th Index and set it to =L and set the line width to -. 8our study will automatically oen under your chart. @nder 4tudies clic# on So& Sto"hasti" and set it to $>,,, Exonential% and ma#e the 6 line blue with line width -, and the D line red with line width -.
8our chart, with all the studies on it should now loo# li#e this $examle of @4D/C+D = min chart%3 ?otice that 1 clic#ed on the 7oom in button a coule of times on the bottom ri"ht hand corner to "et it to loo# li#e this.
Step : %o& to Buy and Se the !urren"y 9airs ?ow that our charts are set u, let(s learn GO9 to oen and close a osition, or buy and sell on the T latform. +fter we learn GO9, we can loo# at 9GE? to enter/exit a trade usin" the technical indicators. KK9ease note that this in+ormation is in the >isua Tradin# Manua that you shoud ha0e aready read4 A.
4imly mo!e your cursor to the chart and ri"ht clic#. + menu will o u and at the to it will say 1uy with the current exchan"e rate to buy and se with the current exchan"e rate to sell. 8ou should Buy if you thin# the rice line will "o u on your chart or sell when you thin# the rate will dro
on the chart. Clic# on buy or sell and an Oen ositions( window will o u that loo#s li#e this3
B. 1n the +mount er +cct3 box you ut in how many lots you will trade5= lot is =, currency units. Tradin" with = lot [email protected]
*/@4D is i rofit. 1f the exchan"e rate ne!er hits that le!el, then the Order doesn(t "et filled.
Step ): ;hen to Enter and Exit 'our Trades: 9e will be loo#in" at different ways to day trade the Forex Mar#ets. 1n a tradin" session, you may loo# for = or more of these aroaches. The techniAues are as follows3 =. Trade the Brea#out -. Trade the Trend . Tradin" Tos and Bottoms Before we loo# at these tradin" aroaches, let(s answer a Auestion that is often as#ed by new traders. ;hen is the 1est time to trade Because the Forex Mar#et is oen -Lhrs a day, and traded on a "lobal scale, the Auestion to as# is, when should 1 trade0(. The "ood news is that no matter what time 7one or hemishere you li!e in "lobally, there are always "ood oortunities to trade. The three ma2or tradin" sessions( are as follows $all in Eastern 4tandard Time%3 =. ?ew 8or# oen Q3 +M to L3 M -. aanese/+ustralian oen I3 M to 3 +M . Kondon oen 3 +M to Q3 +M KKO+ten2 the 1est times to trade is at the 1e#innin# 7-) hours o+ the a1o0e mentioned openin# times2 1e"ause the maor "urren"y pairs tend to mo0e the most in a parti"uar dire"tion4
The first DayTradeForex.com tradin" techniAue we will loo# at is the easiest to reco"ni7e on the charts. 9e will call it Trade the Brea#out(. 8ou can use the >, = or => minute charts for this method. The indicators on the > minute charts are the fastest. ractice until you feel comfortable with the time frame that suits you best. =4 Trade the Brea3out The rincile behind tradin" the brea#out is to enter a trade when the rice brea#s out( of a ti"ht ran"e, because often it tends to #ee mo!in" in the same direction. 9e use our Bollin"er Bands on our charts to sot this tradin" oortunity. 4ee screenshot on next a"e.
1n the abo!e examle, [email protected]
*/@4D > min chart, notice how the Bollin"er Bands ti"hten and sAuee7e to"ether. 9hen this haens you #now that there is a Brea#out comin". +s soon as the exchan"e rate line $brown%, brea#s out of the outside Bollin"er Bands, it si"nals your entry buy/sell. 1n this case if you bou"ht [email protected]
*/@4D at =.=Q=> and Closed your osition at =.=QL , you could ha!e made a fast -> i rofit. ?otice the confirmin" indicators3 The exchan"e rate line $brown% is a1o0e the EM+ = $red%, the middle BB line $"reen% and the EM+ > blue. The arabolic 4+* dots are on the 1ottom. The M+CD Gisto"ram is a1o0e * si"nalin" uward momentum. The *41 is a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is a1o0e the red line si"nalin" 1uish momentum.
Gere is an examle of [email protected]
*/@4D > minute brea#out 4EKK. 8ou could ha!e sold the [email protected]
*/@4D at =.=LL and closed your osition at =.=J for a > i rofit. ?otice the confirmin" indicators3 The exchan"e rate line is 1eo& the EM+ = $red%, the middle BB line $"reen% and the EM+ > blue. The arabolic 4+* dots are on the top. The M+CD Gisto"ram is 1eo& * si"nalin" downward momentum. The *41 is 1eo& )* si"nalin" downward momentum, and the 4low 4tochastic blue line is 1eo& the red line si"nalin" 1earish momentum.
Gere is an examle of @4D/C+D = min chart. 1f you bou"ht this currency air at =.>J when it bro#e out of the bands and sold it at =.H- you could ha!e made aroximately is. The exchan"e rate line $brown% is a1o0e the EM+ = $red%, the middle BB line $"reen% and the EM+ > blue. The arabolic 4+* dots are on the 1ottom. The M+CD Gisto"ram is a1o0e * si"nalin" uward momentum. The *41 is a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is a1o0e the red line si"nalin" 1uish momentum.
Gere is a @4D/CGF > min chart examle of a brea#out 4EKK. ?otice how the M+CD Gisto"ram went from ositi!e to ne"ati!e, and how the other confirmin" indicators si"naled 4EKK. The exchan"e rate line is 1eo& the EM+ = $red%, the middle BB line $"reen% and the EM+ > blue. The arabolic 4+* dots are on the top. The M+CD Gisto"ram is 1eo& * si"nalin" downward momentum. The *41 is 1eo& )* si"nalin" downward momentum, and the 4low 4tochastic blue line is 1eo& the red line si"nalin" 1earish momentum.
Gere was an extreme brea#out [email protected]
*/@4D [email protected]
where you could ha!e held on for a = i mornin" +"ain, The exchan"e rate line $brown% is a1o0e the EM+ = $red%, the middle BB line $"reen% and the EM+ > blue. The arabolic 4+* dots are on the 1ottom. The M+CD Gisto"ram is a1o0e * si"nalin" uward momentum. The *41 is a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is a1o0e the red line si"nalin" 1uish momentum.
The second DayTradeForex.com tradin" techniAue uses the same rinciles, but is less extreme. This tradin" method is best traded on the > or = min charts, but can be alied to the = minute charts $4ee the Bonus $Mi"ro Tradin# strate"y at the end of this tradin" course% 64 Trade the Trend Tradin" the trend is 2ust li#e tradin" the brea#out, excet in less !olatile mar#et conditions. 4tart with "oin" to the => minute chart of the currency air of your choice and as# yourself this Auestion3 1s the exchan"e rate line $brown% abo!e or below the EM+ > $blue%0 NN1f the rice line is currently 1eo& the EM+ >, and the EM+ = and BB - are also 1eo& the EM+ >, then you will be loo#in" at Sein# oortunities in the tradin" session. 1f the rice line is currently a1o0e the EM+ >, and the EM+ = and BB - are a1o0e the EM+ >, then you will be loo#in" at 1uyin# oortunities in the tradin" session. Often, when you are tradin" the trend(, you will notice that the rice line will bounce off the EM+ = or the middle BB line or the EM+ >. These lines sometimes act as suorts and resistances in a tradin" session. Therefore you can loo# to se shorts when the rice line bounces do&n off the EM+ =, BB - or EM+ >, or 1uy on#s when the rice line bounces up off the EM+ = BB - or EM+ >. 9hen you trade the trend, it is imortant to trade with the arabolic 4+*, M+CD, *41 and 4low 4tochastic all si"nalin" to"ether.
The abo!e examle is a > minute [email protected]
*/@4D chart. The first thin" to loo# for is the EM+ > blue line. ?otice that it has been a1o0e the rice line and the EM+ = and BB -. 8ou will now be loo#in" to SELL4 ?otice how the rice line bounced do&n off of the EM+ = and BB - ri"ht before 1 circled the chart. ?ow loo# at your other indicators3 The M+CD Gisto"ram turned do&n 1eo& ero, *41 turned do&n 1eo& )* and 4low 4tochastic 1ue ine turned do&n under the red ine . This would ha!e been a "ood si"nal to Se Short5you could ha!e rofited at least - is on this trade.
The abo!e examle is a = minute [email protected]
*/@4D chart. The first thin" to loo# for is the EM+ > blue line. ?otice that it has been 1eo& the rice line and the EM+ = and BB -. 8ou will now be loo#in" to BU'4 ?otice how the rice line crossed down throu"h the EM+ lines rior to the circles. This would ha!e been a false si"nal to sell because the EM+ = and BB - were abo!e the EM+ >. 1f you were loo#in" at buyin" oortunities then you could ha!e entered when the rice continued to rise where 1 circled on the chart. ?ow loo# at your other indicators3 The M+CD Gisto"ram turned up a1o0e ero, *41 turned up a1o0e )* and 4low 4tochastic 1ue ine turned up a1o0e the red ine . This would ha!e been a "ood si"nal to Buy on#5you could ha!e rofited at least is on this trade.
Gere is an examle of anticiatin" the trend. The mar#et, re!iously re2ected the brea#out rise in rice and turned the other way sharly. 1f you entered this trade when the M+CD Gisto"ram turned down into ne"ati!e territory and the *41 mo!ed below >, you could ha!e anticiated the trend before the EM+ = and the BB - mo!ed below the EM+ >.
The third DayTradeForex.com tradin" strate"y that we are "oin" to loo# at in this "uide is3 74 Tradin# Tops and Bottoms Tradin" tos and bottoms can be more ris#y that the other two strate"ies because you are tradin" a#ainst the trend anticiatin" the mar#et is o!erbou"ht/o!ersold and mi"ht turn in the other direction. 1t is best to use the = or => minute charts for this method. 1t is more ris#y usin" the > min charts, but you still can aly the same techniAues.
Gere is an examle of a [email protected]
*/@4D =>min chart, bottom buy. ?otice how the M+CD histo"ram is startin" to rise, and the *41 is turnin" up +rom 1ein# o0ersod and the slow stochastic blue line crossed the red line and is turnin# up +rom o0ersod.
Gere is a > minute chart examle with [email protected]
*/@4D. ?otice the M+CD, *41 and 4low 4tochastic mo0e up from o!ersold at Q3. +t =3 you could ha!e sod short for a small rofit. Tradin" tos and bottoms is best in ran"in" mar#ets.
Gere is an examle of a brea#out 4EKK and a Bottom [email protected]
in a tradin" session watchin" the @4D/8 = minute charts. This bottom [email protected]
is a "reat examle of o!ersold indicators with *41 and with 4low 4tochastic. ;hen to E)I rule. 1f your tradin" account is at )I of the total !alue of your account. 1f you used this rule in this case, you would sto out a losin" trade when you were down