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Copyright Notice
No part of this manual may be reproduced or transmitted in any form whatsoever, electronic, or mechanical, including photocopying, recording, or by any informational storage or retrieval system without expressed written, dated and signed permission form the author. * General Risk Disclaimer: All Trading involves risk. Leveraged trading has large potential rewards, but also large potential risk. Be aware and accept this risk before trading. Never trade with money you cannot afford to lose. All forecasting is based on statistics derived from past performance of any trading methodology is no guarantee of future results. No "Safe" trading system has ever been divided and no one can guarantee profits or freedom from loss. No representation is being made that any account will achieve profits or losses similar to those discussed. There is no guarantee that, even with the best advice available, you will become a successful trader because not everyone has what it takes to be a successful trader. The trading strategies discussed may be unsuitable for you depending upon your specific investment objectives and financial position. You must make your own investment decisions in of your own investment objectives, risk profile, and circumstances. Use independent advisors as you believe necessary. Therefore, the information provided herein is not intended to be specific advice as to weather you should engage in a particular trading strategy or buy, sell, or hold any financial product. Margin Requirements, tax considerations, commissions, and other transaction costs may significantly affect the economic consequences of the trading strategies or transactions discussed and you should review such requirements with you own legal, tax and financial advisors. Before engaging in such trading activities you should understand the nature and extent of your rights and obligations and be aware of the risk involved. Your actions and the results of your actions in regards to any information you receive from Ultimate Forex System or any of its staff are entirely your own responsibility. Ultimate Forex System or any of its staff can not and will not assume liability for any losses that may be incurred by the use of any information received from Ultimate Forex System or its staff. Any such liability is hereby expressly disclaimed. * Hypothetical Disclaimer: All results are considered to be hypothetical unless otherwise specified: Hypothetical performance results have many inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Furthermore, only risk capitol should be used for leveraged trading due to the high loss involved. One of the limitations hypothetical performance results is that they are generally [prepared with he benefit of hindsight. In addition , hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example the ability to withstand losses (and incur account draw downs) or to adhere to a particular trading program in spit of trading loses are important issues which can also adversely affect actual trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program, method or system, which cannot be completely taken into consideration with hypothetical performance results and will affect trading results and your P/L. Welcome!
If you are like me, you hate reading the manual that comes with things like a new TV, DVD player, computer etc. I always try to get my "new toy" working by simply pulling it out of the box and hitting all the buttons hoping to get it to work. If, "Plan A" doesn't work, then I switch to "Plan B" which is to look for a "Quick Start Guide. I like them because they are short and sweet and get right down to business. Only as a last resort will I ever read the full blown manual. You will notice that there is not one ounce of fluff or filler in this program. Many programs cram their book with 20 pages of content and 100 pages of fluff. This is the same fluff that can be found anywhere on the internet for free. They do that to make you feel like you got your monies worth. I know however that you are smarter than that and you understand that you are paying me for results, not fluff. I have purposely written this program in more of a "Quick Start Guide" format. I don't want to waste your time trying to impress you with big fancy terms and over-complicated techniques that are impossible to trade in the real world. The bottom-line is I want you to quickly be able to grasp the concepts so that you can start making some great trades. One quick note before we dig in... The program is super-simple. If you get the urge to add things, DON'T!!! I have been trading since 1990 and if there is one thing I can pass on to you, it would be this. SIMPLE WORKS! COMPLICATED DOESN'T WORK! You must remember that trading is not an exact science and having 5, 10 even 20 technical indicators will not give you any better results than the trader using 1 or 2 indicators. As I mentioned trading is not an exact science but this strategy is based on very sound logic. It is designed to detect the earliest stages of a new trend and then allow you to ride it up for as long as possible. It will also give you two 100% mechanical methods to get out so that there is no guess work on your part. You will definitely be tempted to fiddle or try to tweak things, but don't!!! I have already put in all the long hours and spent the money. As they say, "if it isn't broke, then don't fix it". Also to borrow another cliché... If the system is working, "then why ask why". It works and can produce some massive trades. Best of all you will easily and quickly be able to identify these setups without any second-guessing. To your trading success!
Part 1: Getting Started
To set your charts up you will need to add 2 things. Most descent charting software programs will allow you to plot two moving averages over the same chart. Also use a standard OHLC(open-high-low-close) bar chart. I don't use candlestick charts with this program as they make the charts too messy and give me more detail than I need to see. 1. 2 Period Exponential Moving Average (This is the black line in the chart below) 2. 5 Period Exponential Moving Average (This is the red line in the chart below)
Click here to view a "How To" video on how to setup your charts like above
Part 2: What Time-Frame Charts Should You Use?
The goal of trading is to make money in as few trades as possible. That's it! Trading the forex can be expensive as the spread will cost you a lot of money especially if you like to trade frequently. My goal is to help you make a lot of money in as few of trades as possible. This way you don't get gouged by excessive spread fees. Side Note: For "Forex Newbies", the spread is the amount you pay to get into a trade. If there is a 3 pip spread and each pip is worth $10, then it will cost you $30 to get into the trade. If that is not 100% clear then please contact your broker. Forex Day Traders: Use the 15, 30 minute, 1 hour and 2 hour charts Forex Swing Traders: Use the 2 hour, 4 hour and daily charts Forex Position Traders: Use the daily and weekly charts The reason I don't use faster time-frames like the 3, 5, 10 minute charts is because they are subject to a lot more "random noise" in the market and can cause you to over-trade. As a rule of thumb the bigger the time-frame the less trades you will get, but the larger the potential profits. For example, you will get less trades on the daily chart compared to a 60 minute chart, but the profits are more apt to be larger on the daily. Another rule of thumb is that the bigger the time-frame the greater the possible risk. This is simply because bigger time-frame bars are bigger and usually require bigger stop losses.
Part 3: What Currency Pairs Should You Trade?
As they say, "less is more". I usually stick to the first 4 currencies on this list but will check some of the other ones out as well. GBPUSD British Pound / US Dollar "Cable" EURUSD Euro / US Dollar "Euro" USDJPY US Dollar / Japanese Yen "Dollar Yen" USDCHF US Dollar / Swiss Franc "Dollar Swiss", or "Swissy" AUDUSD Australian Dollar / US Dollar USDCAD US Dollar / Canadian Dollar EURGBP Euro / British Pound EURCHF Euro / Swiss Franc This program will work with any currency pair, but I avoid those that have a spread over 3 pips. Every extra pip you pay puts approximately another $10 in your brokers pocket. Avoid that at all costs!
Part 4: When Is The Best Time To Trade?
As you know, the forex markets trade almost around the clock and have 3 sessions. (European, Asian and US) I am often asked when the best time to trade the forex is. Here's the rub... Trades can happen at anytime and there is no way to know ahead of time when they will form. While 24 hour trading gives you a lot more potential opportunities, it also requires a lot more time. Obviously you can't stay glued to your PC 24/7 so don't worry about the trades that slip by. Over time you will get more than enough opportunities even if you just watch one session. Pressed For Time? Here's a tip to keep you from having to stay chained to your PC. Say you are using a 60 minute chart. You only have to start looking for a trade setup about 5 minutes before the close of the 60 minute bar. The reason is that we have to wait for the bar to close fully to have a valid setup, so there is no need waste time until the 60 minute bar has almost finished trading. So.... If the 60 minute bar closes at 10 AM, I just make sure I am at my computer by 9:55 AM I can scan multiple markets in just a few minutes doing this. You can also double the amount of possible trades in the same amount of time. Let me explain... Say a 60 minute bar closes at 10 AM. Well a 30 minute bar which started at 9:30 AM will also close at 10 AM. This means you can quickly look at both the 30 and 60 minutes charts at the same time. This doubles your chances of finding a setup as it is possible that a trade will form on one time frame and not another. Trading The News: There are news and economic announcements coming out just about everyday and anyone of them can affect the markets. I don't worry about the news and the only time I will not trade is when there is a FOMC Fed Meeting announcement. If one is coming up I will exit any position 30 minutes before the announcement and I will not look to start trading again until 30 minutes after. If you do feel that certain other economic news events are dangerous to trade, then simple apply the 30 minute rule I mentioned above.
Part 5: "The Ultimate Forex System" Step By Step Rules
For Buy Trades: Step 1: The 2 Period Exponential Moving Average(EMA-2) must have just crossed above the 5 Period Exponential Moving Average(EMA-5) In this example note that the EMA-2 shown at point #1 was below the EMA-5. At point #2 the EMA-2 crossed above the EMA-5. ***Bar 2 is called "The Crossover Bar".
Step 2: Enter 2 pips above the high of the "crossover bar". Step 3: Enter an initial stop loss according to the strategy outlined in the following videos:
Initial Stop Loss Strategy Video 1
Initial Stop Loss Strategy Video 2
Step 4: Exit using one of the two exit strategies. (Please see Part 7)
For Sell Trades: Step 1: The 2 Period Exponential Moving Average(EMA-2) must have just crossed below the 5 Period Exponential Moving Average(EMA-5) In this example note that the EMA-2 shown at point #1 was above the EMA-5. At point #2 the EMA-2 crossed below the EMA-5. ***Bar 2 is called "The Crossover Bar".
Step 2: Enter 2 pips below the low of the "crossover bar". Step 3: Enter an initial stop loss according to the strategy outlined in the following videos:
Initial Stop Loss Strategy Video 1
Initial Stop Loss Strategy Video 2
Step 4: Exit using one of the two exit strategies. (Please see Part 7)
Part 6: How To Enter The Trade
In the above chapter I explained that you will be entering a trade when the market goes 2 pips above/below the "crossover bar" depending if it is a buy/sell trade. Let me go into a bit more detail so that there is zero confusion. Say we have located a buy setup and the high of our "crossover bar" is 1.9750, that means we want to enter when the price hits 1.9752. Now here is the important bit! Because of the spread you will actually get filled at a higher price. In this example I am using a price on the British Pound/US Dollar in which the spread is usually 3 pips. That means if you hit the buy button when the market hits 1.9752, you will be filled at 1.9755. This is because you pay the 3 pip spread on top of your initial entry price. What type of order should you use? Option 1: When you see a "Buy Cross Over Bar" you would simply place a buy stop order 2 pips above the high of the "crossover bar". If the market rises up and hits that level you will be automatically placed in the trade. If for some reason the market doesn't climb up and hit your entry level, you simply will not get filled. Remember if your level doesn't get hit after 3 bars, then cancel your buy stop order. Option 2: If you don't mind spending more time at your computer you can simply wait until the market hits your entry price and then use a market order to get in. When you see a "Sell Cross Over Bar" you would simply place a sell stop order 2 pips below the low of the "crossover bar".
Don't forget to place your protective stop loss order once you have entered the trade!!!
Part 7: How To Make The Biggest Potential Profits
The only 100% sure-fire way to make maximum dollars on a trade is to have a crystal ball. If we did, then we would always know how far a trade was going to go and this would allow us to get out at the perfect time, every time. Since we don't have such a tool at our disposal, the next best way is to use one of the following two exit strategies. They are both 100% mechanical and fool-proof to use. Its super easy... "Crystal Ball" Exit Strategy This is a technique that I have only seen discussed once by a 40 year market veteran who also happened to be my first trading mentor. I have nicknamed it the "Crystal Ball Strategy" because it is uncanny how often this thing will get you out near the peak of a move. What you are going to do is exit after the completion of either 8 bars or 13 bars. Let me explain that a bit clearer. The "8 Count" or "13 Count" begins with the "crossover bar". Exiting at Bar #13 will often allow you capture larger profits, but there will be other times where the trade dies out at Bar #8. There is no exact way to know whether the trade is more likely to die out at bar 8 or 13 but I will share a strategy in an upcoming video that will give you a good idea when to exit. An ideal scenario is to trade 2 contracts, then you could simply sell one contract after bar 8 closes and another after bar 13 closes. IMPORTANT: The counts starts on the initial "Crossover Bar". In a buy setup, this is the bar that occurred when EMA-2 crossed above EMA-5. In a sell setup, this is the bar that occurred when EMA-2 crossed below EMA-5.
Ok, let's take a look at a few examples of our exit strategy...
"Crystal Ball Exit Strategy" - Example 1: In the above chart you can see Bars #8 and #13. Both would have been great exit points and provided some nice profits without any thinking on your part. Bar #1 was the Buy Setup Crossover bar.
"Crystal Ball Exit Strategy" - Example 2: You can see that the strategy works equally well for sell setups. In the above chart you can see Bars #8 and #13. Once again, both would have been great exit points and provided some nice profits without any thinking on your part.
"Crystal Ball Exit Strategy" - Video 1 - This video will discuss how to use the technique for BUY trades.
"Crystal Ball Exit Strategy" - Video 2 - This video will discuss how to use the technique for SELL trades.
Advanced "Crystal Ball" exit strategy for multi-lot traders: If you notice that the market is trending very strongly you could hold out until the 21st or 34th bar. If you trade multiple contracts then you could exit a contract at the 8th, 13th, 21st and 34th bars. Providing that the market has a descent amount of momentum, this strategy can help you achieve some sizable potential gains. This is the one of the most lethal strategies for capturing major portions of a move I have ever seen in 11 years. You will truly amazed at how many times when you hit the 8 or 13th bat that it was near the peak of the move. You may be wondering why we are exiting at these particular sequence of numbers and the reason is that they belong to the Fibonacci sequence of numbers. I won't go into any detail here, but Fibonacci was a famous mathematician that figured out that many things in nature occur around a sequence of numbers. These numbers also show up time and time again at key points in the market. This is a simple technique that the majority of traders don't know of, don't use or have simply over looked its power. Here is a video that will teach you how to quickly keep an eye on these levels.
Click here to watch
"The No-Brainer" Exit Strategy This second technique requires little explanation so check out the following video for complete details. I nicknamed this one "The No-Brainer" because you could be practically brain-dead and still make it work. :-)
"The No-Brainer Exit Strategy" - In this video I will show you another POWERFUL yet super easy 100% mechanical way to exit your trades.
***It is entirely up to you to decide which exit strategy you like best. They both work INCREDIBLY well.
Part 8: A Small But Crucial Detail!
It is very important to use the "data window" on your software to get the exact reading on the moving averages. If you were to simply "eye-ball" the averages on this chart where the arrow is, you couldn't see that it actually crossed to the down side. Take a look at the data window and you will see that the MA-2 was at 117.90 and MA-5 was at 117.91.
USD/JPY 2 Hour Chart
To view the Data Window Video
Part 9: How To Avoid High Risk Trades
All trading strategies whether mechanical or discretionary require some type of filter to help eliminate as many false signals as possible. I have found three highly effective and dead-easy filters to help reduce bad trades by 70%. They will take you all of 5 seconds to use.
Instant Risk Reduction Strategy 1: About 15% of the time you will find a trade setup where the bar is exceptionally big compared to the one that preceded it. Take a look at the following 3 examples highlighted in yellow and you will see what I mean. Also check out the two videos as they will spell out in detail this strategy.
Example 1
Example 2
Example 3
Click here to view "Instant Risk Reduction Strategy 1" video 1:
Click here to view "Instant Risk Reduction Strategy 1" video 2:
***Another way to rule out trades that can cause larger losses than you can handle it to quickly measure the size of the "crossover bar". For example, if it is 40 pips in length, then you know the risk is going to be a little bigger than 40 pips by time you factor in the entry level and the placement of your initial stop loss. So... If this is too much risk, then simply wait for a trade with a shorter "crossover bar".
Instant Risk Reduction Strategy 2:
This strategy requires little written instruction so I will let the video do all the explaining.
Click here to view "Instant Risk Reduction Strategy 2" video:
Instant Risk Reduction Strategy 3: After you have located a valid trade setup, if the trade doesn't get triggered within 3 bars then the trade is cancelled. Just to be crystal clear... What I mean by the "trade getting triggered" is when the market hits your entry level which is 2 pips above the crossover bar for buy trades or 2 pips below the crossover bar on sell trades. The logic behind this is that when a good trade takes place it should be triggered within one to three bars as this indicates strong momentum in your favor. However, by the close of the third bar if you are not filled this shows that the market has no momentum or is looking to possibly reverse.
Part 10: How To Quickly Reduce Your Risk By 50%
Money management is without a doubt one of the two biggest factors in making money as a trader. The other is having rock-solid control over your emotions. Anyway... I want to show you my "S.Y.A." strategy that can mean the difference between making a little bit of money and making a lot of money. Rather than me explain it here, let me show you what I am talking about in the following two videos.
"S.Y.A." Video 1
"S.Y.A." Video 2
Part 11: How To Trade Like A Pro
I don't care if you are a fanatic of professional soccer, golf, motor sports, basketball, football etc... The one thing you will see that all these pros have in common is that they play as hard as they can and when they make a mistake they just keep going. Look at Tiger Woods... The guy is like a machine, but at times he makes some bad shots. The one thing you don't see him do is exit the tournament because he is too scared or worried about his next shot. What Tiger is really good at is quickly regaining his composure for the next shot and completely forgetting about his last mistake. Now contrast this to the typical trader. If they have a bad trade, they will beat themselves up and try to over analyze where they went wrong. In addition they are now fearful of what might happen on the next trade and as a result second guess the trade and do nothing. What of course happens is that while they were feeling all pissed off or sorry for themselves they missed out on a highly profitable trade. Now they are even more pissed off and unsure about what to do. At this point they will often start searching for a new system. If you want to make it in this game, you need to be quick on your feet and forget about your last trade. The only thing you want to do is put 100% focus on the newest trade. A situation that will test your abilities to the max is where the market quickly reverses direction on you. To be specific, I am talking about when you just entered a trade in one direction and one bar later you get a signal to go the other way. This requires you to stop the trade you are in and reverse in the new direction. This can happen quick especially on faster time frames like the 15 minute chart. Thankfully this situation only happens about 10 - 15% of the time. None the less, you really need to be ready for these unexpected events. Even though they can be tough to deal with, often they will lead to some of your biggest trades. Let's take a closer look at how to handles these trades....
"Stop and Reverse Trade" - Example 1:
USD/JPY 2 Hour Chart "Stop and Reverse Trade" - Example 1: Bar "A" formed a trade to the downside as the 2 period MA crossed below the 5 period MA. As you can see, Bar "B" traded below the low of Bar "A" so we had a valid trade, but... You can see that Bar "B" did a quick turnaround and the 2 period MA crossed back above the 5 period MA. In this situation you need to be prepared to exit your first trade and reverse your position to the upside. Of course, you only do this providing that the market hits the entry level which is 2 pips above the high of Bar "B".
"Stop and Reverse Trade" - Example 2:
USD/CHF 2 Hour Chart "Stop and Reverse Trade" - Example 2: This example shows that Bar "A" formed a trade to the upside as the 2 period MA crossed above the 5 period MA. As you can see, Bar "B" traded above the high of Bar "A" so we had a valid trade, but... You can see that Bar "B" did a quick turnaround and the 2 period MA crossed back below the 5 period MA. In this situation you need to be prepared to exit your first trade and reverse your position to the downside. Of course, you only do this providing that the market hits the entry level which is 2 pips below the low of Bar "B".
To view the "Stop And Reverse Video" #1
To view the "Stop And Reverse Video" #2
Part 12: Trade Examples
Trade Example 1:
GBP/USD 2 Hour Chart Example 1: In this first chart you will see a buy setup where it says "Trade A". In this example note how the market was slowly creeping up. This is a prime example of when to exit at Bar 13 instead of Bar 8. Remember, if the market explodes up then you can get out at Bar 8, but if it slowly goes up then wait till Bar 13. "Trade B" happened a few bars later and once again brought a good profit with minimal effort by exiting at the end of Bar #8. Note how this trade accelerated hard and was a classic example of getting out at Bar 8. Of course in hind sight we can see that getting out at Bar 13 would have been more profitable and that is why it helps to trade multiple contracts.
Trade Example 2:
GBP/USD 30 Minute Chart
Example 2: At point "A" we had a crossover to the downside, but the trade never got triggered as we didn't trade 2 pips below the low of that bar. At point "B" we had a signal to the upside, but you might have wanted to disqualify it as it significantly bigger than the bars preceding it. At point "C" we had a crossover to the downside, but the bar was quite large compared to the previous one. The last trade at point "D" went up smoothly to hit it's target at bar 8.
Trade Example 3:
EUR/USD 60 Minute Chart
Example 3: Point "A" shows a trade to the upside, but it is significantly bigger than previous bars so you may want to pass on it. Point "B" shows a crossover to the downside but the trade never gets triggered according to the three bar entry rule. Point "C' shows a new crossover to the upside and we would have entered the trade, but it quickly turned into a stop and reverse trade on the very next bar at point "D". As a rule of thumb I will always take a stop and reverse setup and trade in the new direction. Point "E" shows a possible trade to the upside, however we only traded 1 pip above the high of the bar so therefore it didn't qualify. Finally at point "F" we had a sell setup.
Trade Example 4:
GBP/USD Dailly Chart
Example 4: At point "A" we had a crossover to the downside, but the trade never got triggered as we didn't trade 2 pips below the low of that bar. At point "B" we had a signal to the upside and would have had a small loss as we would have exited when we had a new trade at point "C". At point "C" we had a crossover to the downside. Though it may be hard to tell on the chart, the trade moved about 150 pips in our favor before it reversed to the upside. We had a new trade at point "D". That trade was what all traders dream about and pray for as it was good for about 500 pips at Bar 8 and over 700 at Bar 13. It was perfect as it had strong and instant follow through. Unfortunately there is no way to know before hand when this will happen.
Trade Example 5:
GBP/USD 60 Minute Chart
Example 5: At point "A" we had a crossover to the downside, but we would have ended up exiting the trade for a small loss so that we could enter a new trade at point "B". We made up for that loss with near a 50 pip profit at Bar 8 and 100 pips at Bar 13.
Trade Example 6:
USD/CHF Daily Chart Example 6: At point "A" we had a sell to the downside and it quickly turned around in the opposite direction causing a loss. At point "B" we had a buy trade which quickly went on to produce a great profit by the 8th bar. At point "C" we had another shot to the downside and this time we were profitable. At point "D" we had a trade to the long side. It rose about 60 pips and quickly turned around. Using the loss minimization technique we could have cut down on the potential loss quite a bit. At point "E" we had another trade to the downside. It did move in our direction for awhile. Point "F" gave us a trade to the upside but it never got triggered as it didn't trade 2 pips above the high. At point "G" we had a sell setup, but once again it didn't get triggered as it never traded 2 pips below the low of that bar. Finally at "point "H" we had a buy setup.
Trade Example 7:
USD/CHF Daily Chart Example 7: At point "A" we had a sell to the downside which quickly hit it's first profit target. You then had a trade to the upside at point "B". It didn't get triggered until 2 bars later. Notice that we came close, but we didn't get stopped out. At point "C" we had a new sell setup and getting out at bar 8 turned out to nail the swing low. Finally at point "D" we had one more buy trade which also produced a profit.
Trade Example 8:
USD/JPY 2 Hour Chart Trade Example 8: At point "A" we had a buy to the upside which quickly reversed to the downside. You would have had a loss on this trade but, you had a new sell setup at point "B" which would have made up all your losses and then some. At point "C" we had a crossover to the upside, but it never traded above the high of that bar so the trade was voided. At point "D" we had another sell to the downside. I also included the secondary exit levels at the 13th bar.
Trade Example 9:
USD/JPY 2 Hour Chart Trade Example 9: At point "A" we had a buy to the upside which quickly turned profitable. At point "B" we had a crossover to the downside, but it never traded below the low of that bar so the trade was voided. At point "C" we had another buy to the upside and brilliant exit at the finish of the 8th bar. We had a sell trade at point "D" and it got filled two bars later, but as you can see it turned rapidly to the upside. This created a new buy trade at point "E".
Part 13: How To Get Started As Fast As Possible
For Novices: Step 1: Open a live demo account and paper trade the strategy until you are profitable for a few weeks. I suggest Meta Trader 4 for a live demo account. Step 2: Start out trading 1 mini forex contract. This will allow you to test the waters with real money and allow you a smooth and low risk transition from paper trading to real money trading. One you have increased your account by 100% then go to step 3. Step 3: Begin trading 2 mini forex contracts and scale out of your trades. Sell 1 contract at Bar 8 and another at Bar 13. You are also free to use the alternate mechanical exit strategy. Step 4: (Optional) After increasing your account another 100% you can trade 3 or 4 mini contracts so that you can scale out at the 8th, 13th, 21st and 34th bars. (Providing there is a strong trend) Step 5: After this point you will have made some money and proven that this system works. This will definitely give you the confidence you need to go "full steam ahead". It is now up to you to decide if you want to keep trading mini contracts or jumping to the full size contracts. For more advanced traders learning this strategy will be a breeze and you should be able to trade within a few days. As easy as it is, please still do your own due diligence and get familiar with the nuances of the system.
Part 14: Seven "Battle Tested" Success Tips
Success Tip #1 Always, always, always use protective stops!!! I know you may have heard this before, but it is amazing how many traders neglect this step. I have a friend that lost $825,000 because he didn't like using stops. Don't be a moron like him!!! Success Tip #2 You absolutely have to fight the urge to bail out of a trade early. Instead you need to calmly and unemotionally wait until your mechanical exit points get hit. This is the only way to make big money. Countless traders leave fortunes on the table because they bail out after they are up a few dollars. There is a saying that "you won't go broke taking profits". This is the biggest bunch of B.S. ever touted to novice traders. Most novices follow this advice and slowly go broke. Where do you think this gem of wisdom originated from? Your "Friendly Broker" of course! Its simple business, if they get you to exit a trade quicker, it means you will trade more often. That equates to nice fat commission checks and Christmas bonuses. Success Tip #3 Don't complicate what already works! Once again, this is probably not the fist time you have heard this "Nugget of Wisdom", but it is the absolute key to success. Traders tend to be very analytical and love all the high tech stuff, but adding more to this system will not give you a higher probability of success. Success Tip #4 Avoid second guessing yourself at all costs. This is a 100% mechanical system which is designed to remove all the doubt and second guessing. Once you have proven it works in paper-trading, then you just need to jump in and go for it. If you second guess yourself and stay out of certain trades inevitably what happens is you miss some of the big winners. This will drastically effect your profitability. Success Tip #5 Stay away from trading when you are sick, anxious, worried or distracted. Trying to trade in anyone of these states is really going to stack the deck against you. This should be common sense, but... Traders hate to miss the "next monster trade" and as a result will force themselves when they are in no condition to do so. Success Tip #6 Take a few days off a month from trading. It will help to decompress and refocus you. Trading is mentally challenging and at times draining so it is imperative to take some time off. Success Tip #7 Faithfully stick to all the above steps and you will be well on your way to out trading the majority of traders.
Part 15: The Ultimate Forex System "Cheat Sheet"
That's it, not "rocket science", but please don't underestimate the POWER in this system!
To your trading success!
Part 16: Extremely Helpful Resources
This isn't a program that requires you to signup for a lot of additional services. It works great as is. There is however one thing that you should invest in if you are really serious about achieving success in this game. To me it is the one of the most important parts of trading and is what separates the 10% of traders who make a great living and the 90% who lose money on a regular basis. Rather than me go into detail here, simply click this link to read more: Free Demo Trading Account: It is very important to paper-trade this system in a demo account which allows you to simulate real trading. One free program that I really like is MetaTrader 4. To download go here: Commonly Asked Questions: I have strived to make this program as easy as humanly possible and think you will have few or no questions but... In case any of you do, you can email me at: Please note that I will not respond to your email directly, but will post a reply on a special Commonly Asked Question page at: www.forextrendfinder.com/questions.html Make sure to bookmark this page so you can have quick access to the latest tips and updates. Free Trading Tips & Highly Useful Info Blog: www.askjeffwilde.com
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