A very warm welcome to this adventure you are about to undertake. You are about to be gin a journey which will take you into the depths of the financial world and make you financially free at the same time. To prepare for this journey, you will need to don your thinking cap as this trip has a “steep learning curve”
By following the training and methods taught in this manual, you can utilize the time before you leave for work in the morning and the time you return home in the evening to earn you an extra $500-$1000! We’ve got to go through a lot of information in order for you to start trading successfully. I do understand that you want to rush out there and start making lots of money but this particular course takes time. Please make the effort to go through this manual at least twice so it gives time for the information to sink in.
To achieve $500-$1000 a wee k as spare income, it will take some time to learn the basics and then some more time to implement a method and various techniques to trade profitably.
$1000 per week is easily achievable with this business. Don’t believe me? There are already thousands of individuals using their time to trade currencies who are making
more money than their regular job income. Most of them are now doing this full-time, as the earning potential is truly unlimited.
You can do this from any country in the world, even whilst on holiday. Remember, all you need is a decent computer, internet connection, and a little starting capital.
You can start with as little as $300, but $2000 is the recommended amount.
You don’t need to risk a single penny whilst learning, as you will learn to trade currencies with a demo or dummy account which will imitate a real account. This will allow you to buy and sell currencies
just as if you were buying and selling in the real world. However, you won’t lose or make any real money. You will be able to see your dummy account grow by $500-$1000 per week from your initial starting capital.
The reason I’m quoting currency in $$$ and not any other world denomination is simply because you will be dealing with US Dollars more than any other currency.
With this business, you don’t need any stock, employees or anything else that goes along with a traditional business. All it requires is a little computer time and some simple chart analysis (market research).
When you buy and sell currencies, you are said to be dealing in the “Foreign Exchange” market, or “Forex”market or “FX” market for short.
As a Forex trader, you will face some tough decisions from time to time. In this manual, you will learn when and where to place trades (buy or sell currency) to achieve a minimum of $500-$1000 or more per week.
Let me assure you, as a Forex trader, you can even make $1000 in a single hour providing your timing is right. Don’t worry about the details for now as we will cover everything later.
I am confident that I can help you secure your own $500 every week. I say this because I was in your position not long ago. I know what it’s like when starting out.
During my humble beginnings I lost money, which is when I decided to invest in some personal training. After completing the course, I actually started to make money as I began to think things through. I pondered over every trade. I weighed the pros and the cons and then pulled the trigger.
Now, I really do make a consistent $500-$1000 every week.
Everything written in this manual is exactly what I do. All you need to do is study and follow what I have written. There is no doubt in my mind that you will also bank at least $500 every week (if not more).
I’m not a trading guru and I don’t make exceptional amounts of money simply because I choose to spend my time doing other things. If money can’t bring you freedom, what use is it?
Ok, I don’t want to bore you with explaining the rags to riches lifestyle and other benefits of having lots of money. I’m sure you are clever enough to know what you can do with your own income of $1000 a week.
So without further ado, let’s get started.
What is Forex?
Forex simply means Foreign Exchange.
What is Forex Trading?
Forex Trading is the simultaneous buying of one currency and selling of another.
Currencies are always traded in pairs. i.e. only two at a time.
Who is a Forex Trader?
A Forex Trader is a person who buys and sells currencies on the Forex Market.
A Forex Trader tries to make profit from small price movements on fluctuations that occur in the Forex Market every time.
Forex example,
Let’s say 1 British Pound is worth 1.8 US Dollars. This means that if you go to the currency
exchange kiosk at your local airport and you give them £1 in exchange for dollars, they will give you $1.80 (in return for your £1 – disregard any commission for now).
You saw the news on TV and now you believe that the Dollar will get stronger against the Pound and so you buy many dollars.
Let’s say you gave the kiosk £100 in exchange for $180 at the exchange rate of 1.8.
100 x 1.8 = 180
A few hours later, you see that the exchange rate has changed and now every Pound is worth 1.4 US Dollars. This means that the dollar has increased in value against the Pound. Before, each pound was worth 1.8 US Dollars but now it is only worth 1.4 US Dollars. In other words, the Pound has become weaker against the US Dollar and the US Dollar has become Stronger against the Pound.
You will see this as you go back to the kiosk and re-exchange your Dollars back to Pounds.
So if each Pound is worth 1.4 US Dollars, how many pounds do you get for $180?
$180 / 1.4 = £128.57. This means you have just made yourself a profit of £28.57. You only had £100 before but now you have £128.57.
Trading currencies at home works on the same principle except you will be doing it on a larger scale and without the hassle of visiting kiosks and their inflated rates.
The Forex Market
The Foreign Exchange Market is the largest financial market in the world. It has an average daily turn over of over $2 trillion. This is 50 times larger than the combined volume of both the London and New York stock exchange.
The Forex market is also known as the Forex Spot market or FX Spot market.
With the Forex market, all transactions made are dealt with immediately.
The Forex market is considered an 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. The Forex market is also considered an over the counter (OTC), due to the fact that transactions are conducted instantaneously between two counterparts over the phone or via an electronic network e.g. on the internet using a trading platform such as Meta Trader 4.
In Forex Trading, there is no centralized exchange point, so this means that you do not need to leave your home or office in order to participate in the Forex market.
Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start. Forex was originally intended to be used by bankers and large institutions and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms or Brokers are now able to offer affordable trading accounts to 'retail' traders like us.
All you need to get started is a computer, a high-speed Internet connection, and the
information contained within this manual.
In the Forex market, you can buy and sell currency with a few clicks of your mouse.
That’s how easy it really is.
For every person that wants to buy currency, there must be some one who is willing to sell that same currency at that exact same price and time.
“What if there is no one to sell you that currency a t that exact same price or time”?
Since over 2 trillion dollars change hands every day in the FX market, and also considering that millions of people worldwide participate in the Forex market daily, it is extremely unlikely that there are no traders willing to sell at that price. There are so many traders in this market that money changes hands at the exact prices they want. This is what you call market liquidity. The FX market is a very liquid market.
Forex trading will only come to an end when the whole world adopts a single (one world currency).
Ninety five percent of the daily turn over in the Forex market, comes from “Speculation” or “Buy for profit”, while the remaining five percent come from Big companies and Government who do actual business, such as importation and exportation.
FOREX MARKET PARTICIPANTS
There are various entities in the FX market arena. Each trades for its own financial objective. The following are the main FX participants.
Central Banks
Within the foreign exchange market national central banks play a very important role.
Ultimately, the objective of central banks is to keep inflation low and steady by controlling money supply. One of the most important responsibilities of a central bank is the restoration of an orderly market in times of excessive currency rate volatility.
Many times, the mere speculation of central bank intervention is enough to stabilize a currency. However, in the event of aggressive intervention the actual impact on the short term supply/demand balance can lead to the desired moves in exchange rates.
Banks
The inter-bank market provides for both the greater part of commercial turnover as well as huge amounts of speculative trading on a daily basis. The type of trading that banks do can be divided into two. First, trading on behalf of the banks’ customers. Here instructions are given to the bank by the individual customer to buy or sell a specific amount of currency. The second type of trading is proprietary trading. Proprietary trading simply put is when the bank’s dealers trade the bank's capital to make the bank a profit. A very large part of interbank trading takes places on electronic broking systems.
Interbank Brokers
Until not long ago, the foreign exchange brokers were doing large amounts of business, facilitating interbank trading and matching anonymous counterparts for relatively small fees. The increased use of the Internet has forced a lot of this business to move onto more efficient electronic systems that are functioning as a closed circuit for banks only.
The traditional broker box providing the opportunity to listen in on the ongoing interbank trading is still seen in most trading rooms, but turnover is noticeably smaller than just a few years ago.
Customer Brokers
These types of brokers are the ones that handle the trades you will make in the Forex market. These brokers are a direct result of the increased use of the internet. Their numbers are growing fast and the service they provide is becoming better and better as days go by. Forex trading has become such a lucrative business for these brokers that they literally will do everything to acquire customers.
The function of these brokers is to provide foreign exchange dealing services, analysis and strategic advice to customers. The services of such customer brokers are more similar in nature to stock, futures and mutual fund brokers and typically provide a service orientated approach to their clients.
Commercial Companies
Companies engaged in international trade conduct a lot of their business in foreign currencies. These companies use the currency market as a means of protecting themselves from unfavorable moves in the market. A US company operating in England would receive payments for its goods or services in Great British Pounds (GBP). The company decides at one point to change the GBP for USD. This trade, from GBP to USD, is where the company’s transaction forms part of the daily liquidity of the forex market.
Investors and Speculators
It is estimated that the largest portion of the daily volume in the forex market derives from investors and speculators. Simply put, this group of market participants trade with one objective in mind, making a profit from rise and fall of currency prices. These types of
traders are attracted to the forex market due to the incredible leverage it provides, fantastic short and long term moves, and high liquidity. Ten years ago this group consisted mainly on big well funded traders. Since the internet has become more used and more efficient in terms of connection speed big traders and investors are not the only ones who can take advantage of currency speculation. The field has leveled and today’s small speculator has the same tools big investors and speculators had 10 years ago.
Hedge Funds
Simply put, a hedge fund is a managed investment where the fund manager is authorized to use derivatives and borrowing with the aim of providing a higher return. The fund manager is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, and arbitrage.
Hedge funds have increasingly been known for aggressive currency speculation in recent years. The main reason for this is due to the high leverage, volatility and liquidity the currency market provides.
Rich Individuals
Small Time Traders like you and I
Advantages and Benefits of Forex Trading
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