Day Trade Forex System Ultimate Step by Step

The Day Trade Forex System: The ULTIMATE Step-By-Step Guide to Onine !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 resonsible for  the reliability or accuracy of the information a!ailable in this document. The "ontent pro0ided is put +or&ard in #ood +aith and 1eie0ed to 1e a""urate2 ho&e0er2 there are no expi"it or impi"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 hod Ero Bortu"ene or !ynthia Ma"y2 or any o+ its a++iiates2 ia1e +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 caable of handlin" the otential losses it entails. The funds in an account that is tradin" at maximum le!era"e may be comletely lost if the osition$s% held in the account exeriences one ercent swin" in !alue. &i!en the ossibility of  losin" one's entire in!estment, seculation in the forei"n exchan"e mar#et should only be conducted with ris# caital 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 accet any liability in resect 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 comany websites. +ll intellectual roerty ri"hts in this reort remain the roerty roerty of DayTradeForex.com DayTradeForex.com  --, - Coyri"ht DayTradeForex.com

 5 6**7 !opyri#ht !opyri#ht DayTradeForex4"om DayTradeForex4"om A .i#hts .eser0ed4 8o 9art o+ this pu1i"ation may 1e reprodu"ed or transmitted in any +orm or 1y any means2 ee"troni"2 me"hani"a2 re"ordin# or other&ise &ithout the prior permission o+ DayTradeForex4"om DayTradeForex4"om

1

The Day Trade Forex System: The ULTIMATE Step-By-Step Guide to Onine !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 oortunity 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 emloyees to hire, no ad!ertisin", no roducts to stoc#, no downlines to fill))2ust you, an 1nternet connection and a comuter. 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 oortunities, then Forex tradin" may be what you(!e been loo#in" for. Our urose is to emower, 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"ipined5To Dis"ipined 5To learn how to mana"e ris# effecti!ely. 6ee O1e"ti0e5To O1e"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 exlain 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 exlainin" what Forex is and all the benefits of  tradin" currencies

2

;%AT IS FO.E< The Forei"n Exchan"e, also referred to as the :Forex: or :4ot F;: mar#et, is the lar"est financial mar#et in the world, with o!er i sreads in the Ma2or  Currency airs. The best firms offer clients )> is. -. Kow minimum account oenin"s. For those that are new to tradin", and for those that don(t ha!e thousands of dollars in ris# caital to trade, bein" able to oen 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 deosit. 4ome of the best firms offer .-> or L3= le!era"e. H. Ged"in" Caability 8ou want the flexibility of oenin" ositions on the same currency air in oosite 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 exerience, the firm that 1 recommend with the abo!e) mentioned benefits is Caital 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 Caital Mar#ets &+1? Caital &C1 Financial, Ktd. &lobal Forex 1F; Mar#ets Kimited Kondon Caital Meridian Forex ty Kimited M& Financial &rou 4axoBan# Tricom

9

Step 64 Open a >isua Tradin#H Demo A""ount The first ste to tradin" the currency mar#ets is to oen a demo account. 1t is imortant 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 exerience. To set u your F*EE chartin" from CM4, simly "o to their website and oen 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 htt3//www.cms)forex.com and clic# on the 4i"n @( tab and scroll down to isual Tradin" Demo. Oen u a free demo account and you will "et your lo" in information sent to your email address.

B.

?ow "o to the 4uort( 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 stes will be.

10

Step 7: Set up your "harts:  +. One the left hand side of screen you will be able to choose your chart. Choose E@*/@4D $or whate!er currency air you li#e% , > min, line and the chart will aear 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

11

?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 roerties box will aear. 8ou can ad2ust the thic#ness of the line. 1n this examle 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" examles of how to aly these studies to day tradin" Forex.

12

C. ?ow we will add the Mo!in" +!era"es to the chart. 9e will be usin" the Exonential Mo!in" +!era"e =, the Bollin"er Band Exonential 4et at -, and the Exonential Mo!in" +!era"e >. Clic# on Mo0in# A0era#e on the left hand side under 4tudies. 4et your first M+ to =*, close, exonential 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, exonential and ma#e this line 1ue with line width -. Gere is a shot of the Mo!in" +!era"e roerties window3

D.

E.

?ow "o to the studies on the left hand side of your screen 4elect Boin#er Bands and set them to -,-, close exonential. Ma#e the middle band "reen, line width -.  +dd 9ara1oi" 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 -.

13

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 9at+orm 9ropery: 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 oen to #ee your settin"s sa!ed.

14

F.

?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 Exonential Mo!in"  +!era"es, arabolic 4+* and Bollin"er Bands5these indicators can be !ery helful to the day trader.

MA!D %isto#ram4 *ead about how to trade the M+CD Gisto"ram here3 htt3//www.incrediblecharts.com/technical/macdPhisto"ram.htm .eati0e Stren#th Index .SIJ *ead about how to trade the *41 here3 htt3//www.incrediblecharts.com/technical/relati!ePstren"thPindex.htm So& Sto"hasti" *ead about how to trade the 4low 4tochastic here3 htt3//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,Exonential, =-, -H, Close, Exonential% and set the line width to -. 8our study will automatically oen under your chart. @nder 4tudies clic# on .eati0e Stren#th Index  and set it to =L and set the line width to -. 8our study will automatically oen under your chart. @nder 4tudies clic# on So& Sto"hasti" and set it to $>,,, Exonential% 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 $examle of  @4D/C+D = min chart%3 ?otice that 1 clic#ed on the 7oom in button a coule of  times on the bottom ri"ht hand corner to "et it to loo# li#e this.

15

Step : %o& to Buy and Se the !urren"y 9airs ?ow that our charts are set u, let(s learn GO9 to oen 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. KK9ease note that this in+ormation is in the >isua Tradin# Manua that you shoud ha0e aready read4 A.

4imly 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

16

on the chart. Clic# on buy or sell and an Oen 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 E@*/@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 aroaches. The  techniAues are as follows3 =. Trade the Brea#out -. Trade the Trend . Tradin" Tos and Bottoms Before we loo# at these tradin" aroaches, 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 oen -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 hemishere you li!e in "lobally, there are always "ood oortunities to trade. The three ma2or tradin" sessions( are as follows $all in Eastern 4tandard Time%3 =. ?ew 8or# oen Q3 +M to L3 M -. aanese/+ustralian oen I3 M to 3 +M . Kondon oen 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 maor "urren"y pairs tend to mo0e the most in a parti"uar dire"tion4

18

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 rincile 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 sot this tradin" oortunity. 4ee screenshot on next a"e.

19

1n the abo!e examle, E@*/@4D > min chart, notice how the Bollin"er Bands ti"hten and sAuee7e to"ether. 9hen this haens 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 E@*/@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" uward momentum. The *41 is a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is a1o0e the red line si"nalin" 1uish momentum.

20

Gere is an examle of E@*/@4D > minute brea#out 4EKK. 8ou could ha!e sold the E@*/@4D at =.=LL and closed your osition at =.=J for a > i rofit. ?otice the confirmin" indicators3 The exchan"e rate line is 1eo& 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 1eo& * si"nalin" downward momentum. The *41 is 1eo& )* si"nalin" downward momentum, and the 4low 4tochastic blue line is 1eo& the red line si"nalin" 1earish momentum.

21

Gere is an examle 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 aroximately  is. 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" uward momentum. The *41 is a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is a1o0e the red line si"nalin" 1uish momentum.

22

Gere is a @4D/CGF > min chart examle 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 1eo& 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 1eo& * si"nalin" downward momentum. The *41 is 1eo& )* si"nalin" downward momentum, and the 4low 4tochastic blue line is 1eo& the red line si"nalin" 1earish momentum.

23

Gere was an extreme brea#out E@*/@4D B@8 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" uward momentum. The *41 is a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is a1o0e the red line si"nalin" 1uish momentum.

24

The second DayTradeForex.com tradin" techniAue uses the same rinciles, but is less extreme. This tradin" method is best traded on the > or = min charts, but can be alied 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, excet 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 1eo& the EM+ >, and the EM+ = and BB - are also 1eo& the EM+ >, then you will be loo#in" at Sein# oortunities 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# oortunities 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 suorts 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 imortant to trade with the arabolic 4+*, M+CD, *41 and 4low 4tochastic all si"nalin" to"ether.

25

The abo!e examle is a > minute E@*/@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 1eo& ero, *41 turned do&n 1eo& )* and 4low 4tochastic 1ue 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 - is on this trade.

26

The abo!e examle is a = minute E@*/@4D chart. The first thin" to loo# for is the EM+ > blue line. ?otice that it has been 1eo& 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" oortunities 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 1ue 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  is on this trade.

27

Gere is an examle of anticiatin" the trend. The mar#et, re!iously re2ected the brea#out rise in rice and turned the other way sharly. 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 anticiated the trend before the EM+ = and the BB - mo!ed below the EM+ >.

28

The third DayTradeForex.com tradin" strate"y that we are "oin" to loo# at in this "uide is3 74 Tradin# Tops and Bottoms Tradin" tos and bottoms can be more ris#y that the other two strate"ies because you are tradin" a#ainst the trend anticiatin" 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 aly the same techniAues.

29

Gere is an examle of a E@*/@4D =>min chart, bottom buy. ?otice how the M+CD histo"ram is startin" to rise, and the *41 is turnin" up +rom 1ein# o0ersod and the slow stochastic blue line crossed the red line and is turnin# up +rom o0ersod.

30

Gere is a > minute chart examle with E@*/@4D. ?otice the M+CD, *41 and 4low 4tochastic mo0e up from o!ersold at Q3. +t =3 you could ha!e sod short for a small rofit. Tradin" tos and bottoms is best in ran"in" mar#ets.

31

Gere is an examle of a brea#out 4EKK and a Bottom B@8 in a tradin" session watchin" the @4D/8 = minute charts. This bottom B@8 is a "reat examle 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