Forex art of war pdf

Den första kampen, Forex Art of War transkription 1 1 FIRST BATTLE, Forex Art of War 2 2 Den första kampen, Forex Art of War De flesta handlare känner inte igen sin första kamp. Men eftersom det är en visionskrig, måste den vinna. Om du kommer att vinna i handel måste du förstå hur spelet verkligen spelas. Forexkulturen främjar tron ​​att om du har tillräckligt med information, om du hanterar din risk väl, och om du är disciplinerad kommer du att vinna. Det är helt sant. Men det är också som att berätta för någon som är överviktig om man äter rätt och tränar, kommer du att gå ner i vikt. Är det en STRATEGI för att gå ner i vikt Nej. När ett mål är verkligen viktigt, tar du dig tid att överväga allt som kan påverka din framgång. Även när du har en bra plan är det en utgångspunkt. När du gör din plan i praktiken upptäcker du kritiskt viktig information om dig själv. Såsom du kommer att finna det är bättre att inte gå till butiken hungrig. Du kan också upptäcka att du fortsätter att äta när du inte längre är hungrig. Personligen upptäckte jag att även om jag vann tävling, vann jag inte, jag vann töjning, jag kommer att slå upp i en timme i Muay Thai Kick Boxing. Gissa. När jag flyttade från mitt tidigare hemvist och inte längre kunde utöva samma disciplin, var jag tvungen att hitta något annat jag skulle göra. Så småningom upptäckte jag att jag skulle gå oändligt på löpbandet om TV: n är på. Bingo. När jag kom till Forex trading 2004 var min fördel min erfarenhet av självdisciplin. Hur får jag mig själv att göra bra val Hur gör jag konsekvent bra val Om vårt mål är att gå ner i vikt, kommer vår största svårighet att hantera hur vi känner. Vi vill ha något som inte är bra för oss. Samma sak gäller Forex trading. Du kommer att få reda på förr eller senare att dina känslor hindrar dig från att tjäna pengar om du inte har en strategi för att fatta bra beslut trots dina känslor. Så detta är ditt första och viktigaste val. Gör vad du tycker om att göra. 3 3 Eller Lär dig gör bra beslut, oavsett de känslor du upplever. Det är dina två val. Båda handlar om hur du känner. En är enkel och leder till ingen vinst och förlusten av alla dina pengar. Den andra kräver en insats och kan göra det möjligt för dig att nå ditt mål. Gör rätt val och du går framåt. Gör fel val, och du slutar upprepa samma aktivitet om och om igen i månader eller år. Detta var Einstein s definition av sinnessjukdom, men folk gör det ändå. Om du är redo att göra rätt val skrev jag det här för dig. Forex quotculturequot uppmuntrar en ineffektiv vision av Forex trading. Av denna anledning är det viktigt för din framgång att du börjar med att läsa e-boken: 8 saker de inte kan berätta om Forex Trading. Min bok förklarar varför Forex-kulturen är så som den är, varför handlare förlorar sina pengar och att det är helt onödigt. En kort översikt över Forex Art of War Forex Art of War är en helhetsstrategi som tar hänsyn till alla variabler som har potential att påverka din framgång. Den delen av strategin började i oktober, I mars 2010 började jag testa strategin med handlare med stor framgång det närmaste året. Den strategin och det som hände blev dokumenterat i min 232 sidbok, Forex Art of War. Kort efter att jag publicerade min bok kände jag behovet av mer av en stegvis process och delade strategin i tre nivåer. De har nu utvecklats till FIRST BATTLE, följt av SEIZE THE HIGH GROUND, följt av Sun Tzu REGLER FÖR FÖRSTÄMMELSE. De är tre nivåer. Den första nivån (där du är nu) handlar om att bli skicklig med verktyg, språk och grundläggande logik. Den andra nivån handlar om all viktig marknadsinformation och verktyg som du verkligen ska använda när du faktiskt börjar handla för vinst. Den tredje nivån handlar om hur höga riskbeslut görs och fokuserar främst på en process för att skilja dina känslor från dina beslut. 4 4 Komma igång Var noga med att kolla in oss på Facebook. Min blogg är Feel free to me med några tankar eller frågor Denna guide är avsedd att visa dig det snabbaste och mest effektiva sättet att komma igång med handel med Forex. Jag kommer inte att förklara handeln i en traditionell sekvens. I stället ska vi komma in i diagrammen, och du kan lära dig när du går. Informationen presenteras i den ordning den kommer att användas. Om du har behov, fråga oss att skicka länkar till gratis diagram, övningskonto och handelsplattform. Vi inkluderar videor som förklarar deras användning. Det är bra om du redan har egna diagram och handelsplattform. Forex Art of War är en helhetsstrategi för att vinna som tar hänsyn till allt som påverkar din förmåga att skapa konsekvent vinst. Jag anser att denna bok (The First Battle) är den första nivån av kunskap, skicklighet och tillämpning. För att illustrera: Innan du kan uttrycka en idé i en mening måste du kunna skriva orden. För att skriva ord måste du först lära sig bokstäverna och de grundläggande reglerna för stavning. När du väl har kunskaper i marknadsspråk och verktyg, kan du sedan flytta till andra nivån, vilket är logik och teknik. Den tredje nivån är där du förstår hur vinsten faktiskt görs och inkluderar metoden, handelsplanen, utvärderingen och justeringen. Det viktigaste är den tredje nivån, där du lär dig att skilja dina beslut från dina känslor. För nu, bara träna grunderna. Här är de specifika inlärningsmålen för nivå 1: Verktyg som diagram och handelsplattform Ordförråd som PIP och Stop Loss Grundläggande handelslogik som lär trender, hinder, inträde och utträde Jag har handlat och tränat andra i mer än sju år på detta punkt. Jag har arbetat med tusentals ambitiösa handelsmän och haft förmånen att arbeta med några riktigt bra handlare. Jag älskar vad jag gör för att det är utmanande och för att jag kan hjälpa människor att förbättra sig. Människor som strävar efter att nå längre i sitt liv inspirerar mig. Det finns bokstavligen tiotusentals informationstyper du kan lära dig om Forex-marknaden. Jag kommer bara att fokusera på de väsentliga saker som du quoteedquot att lära. Jag tror 5 5 att du inte kan göra mycket vinst tills du lär dig att göra någon vinst. Så det är en viktig princip som tillämpas i den här boken och efterföljande träning. Grundläggande logik Som handlare förutser vi vad som kommer att hända i framtiden. Hur gör vi det här Det finns en enkel logik i handel. Logik kan ses och definieras på många sätt. Jag gillar att hålla saker enkelt. När jag hänvisar till logiken hänvisar jag till information från det förflutna som kan användas för att förutse vad som sannolikt kommer att hända i framtiden. Mänskligt beteende är repetitivt. När du tittar ser du det överallt. Vi brukar handla på samma platser och köpa samma mat. Vi vet när trafiken kommer att vara överbelastad på våra vägar. Medan jag har skrivit i stor utsträckning om detta ämne, räcker det med att säga att vi inte bara upprepar samma beteenden om och om igen, vi har svårt att ändra beteende även när vi gör en medveten ansträngning. Kom bara ihåg din kamp sista gången du ställde ut på en ny diet eller träningsprogram. Det finns en djupare orsak till vår mänskliga svaghet. Den samma matematiska sekvensen vi ser överallt i naturen finns också i oss. Det är därför vi kan förlita oss på historisk information för att förutse vad som sannolikt kommer att hända i framtiden. Livsmedelsbutiker ställer även priser baserat på ditt beteende. När jag pratar om repetitiva mönster talar jag inte bara om mönster som du hör om som trender, huvud och axlar, ljusmönster, dubbeltoppar etc. etc. Jag pratar om mönster under hela beslutsprocessen. Vi vet att handlare gillar att handla trender. Var tycker de om att komma in Var är det bästa stället för dig att komma in Var är det bästa stället att sätta ditt stoppförlust och vinstmål Det finns mönster (logik) för alla dessa beslut. Så som köpare köper och säljare säljer på Forex marknaden, skapar de mönster. Dessa mönster visar oss vilka handlare gör om och om igen. Så när vi ser mönstret nästa gång vet vi vad som sannolikt händer igen. 6 6 Forexen Jag kommer att vara kortfattad i mina förklaringar eftersom det finns så mycket att du inte behöver veta. Forex är kort för utländsk valuta. Det är den största marknaden i världen. Jag tänker på pengar som livets blod i affärer och Forex som cirkulationssystemet. Det är ett nätverk av 1000 s av banker runt om i världen utan någon central plats. Ingen ansvarar. Syftet med valutamarknaden är att bestämma ett rättvist växelkurs mellan två valutor. Priset bestäms med principen om utbud och efterfrågan. Om det finns fler köpare vid något tillfälle går priset uppåt. Om det finns fler säljare går priset ner. Vad är Forex för mig En ström av data. För mig är det allt det är. Det är en ström av data (för riktiga). Dessa data kommer in i min programvara och berättar för mig vad pris gör. Vad mer behöver jag veta Inte mycket. Trading Software Trading-mjukvaran tar in data-flödet om att köpa och sälja runt om i världen och kan användas på många olika sätt. År 2001 blev plattformar mycket stabila så att vi kunde handla från våra persondatorer. Så industrin eller detaljhandelen Forex trading (du och jag) är fortfarande i sin linda. Mäklare eller återförsäljare tillhandahåller de flesta dataflöden, kartläggningsprogram och handelsplattformar. Dessa bör vara gratis. De flesta mäklare är villiga att leverera dessa till dig i hopp om att du så småningom ska handla ett levande konto med dem. Var noga med att du bara öppnar ett träningskonto, INTE ett livekonto. har gratis 10 000 praktik konton tillgängliga, som de flesta andra gör (notera att vi inte är mäklare och har inget ekonomiskt förhållande till en mäklare). Öppna inte ett livekonto tills du faktiskt vet hur du handlar. Om du öppnar ett livekonto tidigt, även om du inte avser att handla det, finns det 90 chans (minst) att du ska handla den och att du kommer att förlora alla dina pengar. Återigen, se till att du läser min gratis ebook, 8 saker som de inte kan tipsa Forex Traders. 7 7 Jag föredrar Accucharts. Metatrader är också ett bra kartläggningsprogram. Du kan få dessa gratis genom att kontakta mig på För dig som är MAC-användare måste du använda Windows Parallels eller ett program som att utnyttja de verktyg som finns tillgängliga för en Forex-handlare. Jag vet att MAC-användare inte gillar att höra det, men MAC är bara 10 av PC-marknaden, så de som skriver programvara skriver den för den större marknaden först. Den goda nyheten är att programmen fungerar ganska bra med Parallels. Mitt förslag till MAC-användare skulle vara att få en billig fristående dator. Du kan använda webbaserad programvara på MAC men funktionerna kommer att vara begränsade. Med modern mjukvara kan du utföra affärer direkt från dina diagram. Jag föredrar att ha min kartläggningsprogram på skrivbordet och utföra mina affärer med hjälp av webbaserad handelsplattform. Jag rekommenderar en plattform för plattform för handel för nya handlare eftersom den har funktioner som gör att du kan lära dig detaljer som du inte vet. Senare är allt du behöver göra för att utföra beställningar, och du kan flytta till en webbaserad plattform där körningen blir ännu snabbare. Återigen har vi inte ekonomiskt nytta av att du öppnar ett levande konto hos en mäklare. Det är okej om du redan har din egen programvara. Kontakta oss bara om du behöver hjälp. Diagram visar vanligtvis militär tid som 00: 00-23: 00. För att beräkna tiden, bara subtrahera 12 timmar. Så om du ser det är klockan 14:00 och du är inte bekant med militär tid, subtraherar 12 timmar och du vet att det är 2:00. Jag rekommenderar att du ställer in dina diagram till GMT -4: 00 på våren och GMT -5: 00 på hösten (när USA ändrar tid). För att korrekt följa vad vi gör och säger, skulle du behöva göra denna justering. Om till exempel en av våra handlare skriver att de kom in i handeln klockan 13:00, om inte dina diagram är inställda i samma tidszon, så vill du inte förstå eller se vad de ser. Jag rekommenderar Fibonacci retracement verktygsinställningar på 23,6, 38,2, 50, 61,8 och Dessa används för att mäta de naturliga retracementområdena av prisvågor, och kommer att vara viktiga senare. Ge dig själv tid att träna och bli bekant med diagrammen och handelsplattformen. Jag kommer att ge dig ett specifikt system i den här guiden så att du kan träna. Detta kommer att hjälpa dig att utveckla kunskap med verktygen, en förtrogenhet med det ordförråd vi handlar om, och du kommer att gå igenom motionerna för att tillämpa god handelslogik. 8 8 Marknadsspråk Det finns definitivt ett ordförråd eller språk för handel med några ord och termer. Jag tror att det snabbaste sättet att lära sig är att börja använda diagrammen och handelsplattformen. Du hittar snabbt vad du inte vet eller är osäker på. När du kommer över ett ord eller term som du inte vet, fråga bara eller kolla upp det. Jag definierar kortfattat de flesta ord och termer som är viktiga. Valutor handlas i par. Så när vi handlar, handlar vi ett par som EURUSD. Valutan till vänster är basvalutan. Valutan till höger är den citerade valutan. Så det betyder att när du tittar på ett EURUSD-diagram ser du Euro-värdet flyttas upp och ner på diagrammet. Priset på höger sida av diagrammet är USD. Så att diagrammet talar om hur mycket amerikanska dollar det tar att köpa en euro. Du behöver inte verkligen veta det för att handla. Allt du behöver veta är detta: Om du köper och priset går upp, tjänar du pengar. Om du köper och priset går ner, förlorar du pengar. Om du säljer, och priset går ner, tjänar du pengar. Om du säljer och priset går upp, förlorar du pengar. Att köpa eller sälja är exakt samma sak på grund av den stora likviditeten på denna marknad. Det betyder bara att det alltid finns köpare och säljare tillgängliga. Det skiljer sig väldigt från lager där priset kan minska och du kan inte stänga handeln eftersom det inte finns några köpare. Vad du behöver veta är detta: köp och försäljning är samma exakta åtgärd. En annan sak du behöver veta är att prisrörelsen är mått i PIP. Tänk bara på det som en valuta mätning precis som kvartaler, nickels, dimes och pennies. Bara det är ännu mindre. I amerikanska dollar är en PIP en 10 000 cent (det pekade på mig att det faktiskt inte finns några pennies i USA, vi har vanligtvis blivit vana att kalla det ett öre). Nu behöver du inte veta allt detta. Allt du behöver veta är att en PIP är de två sista siffrorna i diagrammet. När jag skriver detta, är EURUSD på. Det betyder att växelkursen är en dollar, trettio åtta cent och åttio två pips för en euro. Så som Forex-handlare ser vi bara värdet i PIP. Du behöver inte ens veta vad PIP står för. Det brukade representera prisintervallprocentandel. Det har blivit populärt att kalla det procentandel i punkt. 9 9 Medan du är ny, håll dig med amerikanska dollarpar. Det kommer att rädda dig förvirring. Om du till exempel handlar EURGBP (kallad cross pair), finns det ingen amerikanska dollar i paret. Om du var från USA, skulle du behöva bestämma det faktiska PIP-värdet i amerikanska dollar. Tänk på att det finns så många saker som du kan lära dig om den här marknaden. Men om du vill lära dig fort, fokusera bara på de väsentliga sakerna. Lär dig sedan de andra sakerna när du går. Håll handeln så enkel som möjligt Jag tycker att det är användbart för även en ny näringsidkare att veta att större delen av volymen på Forex-marknaden är US-dollar, Euro, Great British Pound och Yen. USD 40, Euro 20, Pund 12 och Yen 8. Dessa är ungefärliga för att visa att 80 av alla rörelser på den här marknaden ligger i de fyra paren, med mycket större volym med EUR och USD. Yenen tenderar att vara lite mer ojämn. Så när du är ny, undvik den valutan. För närvarande finns det några interventionsproblem som pågår runt yenen. Ett ingrepp är när en centralbank, en grupp av centralbanker eller beslutsfattare vidtar åtgärder för att ändra priset på en valuta. Ställa in dina diagram För en ny näringsidkare rekommenderar jag att du övar med EURUSD, GBPUSD och sedan mindre par AUDUSD och NZDUSD. Du behöver inte mycket par att träna. Jag skulle gärna rekommendera USDCHF, men nyligen började den schweiziska centralbanken att ingripa på deras valutas vägnar. I min bok, Forex Art of War, visar jag dig en metod som använder främst långsiktiga diagram (4 timmar och dagligen). Jag tror att din bästa läsning på hela marknaden kommer att vara 4-timmarsdiagrammen. Med detta sagt, är det svårt för de flesta handlare att handla 4-timmars - och dagdiagrammen eftersom de kommer till marknaden förväntar sig fler möjligheter än marknaden erbjuder. Så även handel 8 par, med en bra metod kan du bara få en bra inställning per vecka. De flesta handlare är inte nöjda med så få handelsmöjligheter, även om vissa verkligen är. Jag tar med den i min bok (Forex Art of War) eftersom det är den bästa logiken tillgänglig. När du är nyare tycker jag att det viktigaste att göra är att träna. Du behöver utveckla grundläggande marknadsförmåga med verktyg, logik och språk. Verktyg som diagram och handelsplattform Språk som PIP och stoppförlust 10 10 Grundläggande handelslogik som lär trender, hinder, inmatning och utträde Detta är vad du behöver komma ner på första nivån, som jag ser det. Var försiktig så att du inte tar på dig för mycket på en gång eller du kommer lätt att bli överväldigad. Bara fokusera på att bli skicklig på de tre områdena först. För att uppnå detta ska jag ge dig något att öva. Först konfigurera dina diagram så att du har EURUSD, GBPUSD, AUDUSD och NZDUSD. Ställ in varje diagram för att vara 5 minuters ljus. Jag rekommenderar 5 minuter eftersom det ger dig gott om möjligheter att träna. Jag har viktiga skäl att rekommendera följande. Placera en 21 och 55 EMA på var och en av diagrammen. Dessa kallas exponentiella glidande medelvärden. Det spelar ingen roll hur eller varför de jobbar. Allt som är viktigt är hur vi ska använda dem. Därefter vill jag att du anger en långsam stokastikindikator på varje diagram. Detta visas vanligtvis i en nedre del under diagrammet. K-perioden kommer att sättas till 5, D inställd till 3 och K Slow till 3. Gör D samma färg som din bakgrund. Vi är bara intresserade av K-perioden. Så om du inte kan ändra D, var bara säker på att du vet vilken är K-linjen. Det ska finnas en övre horisontell linje som är 80 och en lägre linje som är 20. Nu har du fyra 5min-diagram med 21 och 55 EMA och en långsam stokastikindikator. Jag rekommenderar ljus. Om du använder webbaserade diagram kan du vara begränsad, vilket är ok. Självklart rekommenderar jag ljusstakediagram. De är de vanligaste diagrammen som används. När du väl känner till mig kommer du att se att jag alltid håller ögonen på vad trenden gör och tittar på vad alla andra gör, och utifrån vad de gör bildar jag höga sannolikhets slutsatser. Så om de flesta handlare använder ljusstakediagram, så är det jag vill använda. Var säker och gå till vårt forum på och fråga om hjälp om du har frågor om diagram. Anledningen till att jag ber dig att konfigurera dina diagram på följande sätt: Fler handelsmöjligheter (5 min kartor) Lär dig följa en trend (21 och 55 EMA) 11 11 Lär dig att se en pullback (framåt i den här boken) Lär dig att se ett hinder (framåt i den här boken) Lär dig att se utmattning (långsam stokastik) Lär dig att gå in och avsluta affärer (framåt i den här boken) Om du någonsin kommer att göra vinsthandel med Forex måste du lyckas genomföra denna logik. Så även om vi inte fokuserar på att göra vinst just nu, kommer du att tillämpa mycket av den logik som gör dig vinst. Ditt diagram borde se ut så här. Du kan justera färgerna men du vill. Jag har en svart bakgrund för båda rutorna, men du kan använda vad du vill. Vissa handlare föredrar att använda olika färger för ljus. Vissa behöver använda olika färger på grund av det unika sättet som deras ögon (hjärnor) bearbetar information. Oavsett fallet spelar det ingen roll vad färgerna är, så länge du vet vad de representerar. 12 12 Du ser bara en rad på min långsamma stokastik eftersom jag gjorde D-linjen svart. Det passar bara in med bakgrunden. Återigen kan båda visa. bara se till att du gör K en distinkt färg. Om ljuset Tidpunkten för diagrammet ligger längst ner, åt vänster till höger. På mitt diagram ser du blåa och röda ljus. De blå ljusen representerar köpare och de röda ljusen representerar säljare. Vi kan göra att dessa ljus representerar vilken tidsram som helst. På andra och tredje nivå ändras vi till 30 minuters diagram. För närvarande använder vi 5 minuters diagram, som anger att varje ljus skapas om en 5-minutersperiod. Om du ser ett färdigt blått ljus, betyder det att det fanns fler köpare än säljare under de 5 minuterna. Om du ser ett färdigt rött ljus, betyder det att det fanns mer säljare än köpare under den 5 minutersperioden. Stearinljus har kroppar, veck och svansar. Dessa bilder skapas av höga, låga, öppna och stängda priser. Så i pilen är det svansen (vertikal linje som sträcker sig från kroppen) och den svagaste punkten är det lägsta priset som ljus uppnådde under den perioden. 13 13 Den vertikala linjen på ljusets topp är veken. Den rektangulära delen av ljuset kallas kroppen. Om kroppen är blå, började ljuset (öppnat) på den lägsta delen av kroppen och slutade (stängt) i kroppens högsta del. Om ljuset är rött öppnas priset på den högsta delen av kroppen och stängs vid den lägsta delen av kroppen. Det här är en hel del detaljer som jag kasta ut på dig, men det är information du behöver veta. Så låt oss tänka på något av det. Om det fanns tre blå ljus i rad, vilket sätt måste priset gå? Det kan bara gå upp. Den inverse är sant för röda ljus. Ibland är det nödvändigt för dig att ta reda på vad högt, lågt, öppet eller stängt är. Du kan öga bollen här, men det mer exakta sättet att göra det är att använda korshåren och visa datafältet. På de flesta kartor, när du vänster klickar och linjer upp den vertikala axeln på något ljus, kommer en låda att dyka upp. Den rutan kommer att berätta för dig all den information du kanske vill ha om det ljuset. Det kommer också att berätta positionerna för glidande medelvärden och andra indikatorer. 14 14 TRENDEN Som jag nämnde i början är alla våra beslut baserade på logik. Den logiken är resultatet av en studie av historiska mönster som skapas av köpare och säljare. Det finns diagrammönster, ljusmönster, indikatormönster och även andra inte så kända mönster. Det mest upprepade mönstret på diagrammen är vad vi kallar en trend. I näringsidkare talar en trend när du ser prisflytta i en viss riktning. I den här bilden till vänster går priset ner. Anledningen till att vi vill veta om trenden och lära känna igen den först är att de flesta handlare vill handla i riktning mot trenden. Så du borde vara ute efter att handla i riktning mot trenden. En trend är något klart prisflytt uppåt eller nedåt. I den här bilden (höger) är priset inte trending, det är sidled. Till vänster här igen vill jag uppmärksamma något annat. Ju mer erfarenhet du får desto mindre behöver du förlita dig på indikatorer. De gula linjerna är 21 och 55 EMA. De flyttar medeltal. 90 av tiden kommer de att ge dig en korrekt läsning på trendriktningen. Det är bra nog när du lär dig hur handel fungerar. Så trending är lätt för dig. Om det snabbare rörliga medlet är överst, köper du bara. Om det snabbare rörliga genomsnittet är på botten, säljer du bara. Don t överkomplicera detta. Även några av de mest skickliga och framgångsrika näringsidkare använder glidande medelvärden. Varför Eftersom det ger dem något slutgiltigt för att basera beslut. Ju mer erfarenhet du får desto mer kommer du att uppskatta värdet av bra definition. Så vi kan se på den här bilden att priset ständigt går ner. Vi kan också bara titta på de glidande medelvärdena och se att de är ifrån varandra och nedåt. Det är allt vi behöver se för nu. Vi bygger nu en handelsmetod för träning som kommer att bestå av 15 15 Trend Pullback till barriär Utmattning vid barriären Trigger Ingång och utgång Så vi har trenden hittills. Pullbacks Barriären är lika viktig som trenden. Vi sa att handlare gillar att handla i riktning mot trenden. Vi vet också från upprepad observation att näringsidkare vill gå in i den trenden när priset drar tillbaka. På grund av denna marknadspsykologi ser du ett mönster som upprepas om och om igen. Du kommer att se en trend, du kommer se en pullback, och då kommer du se pris push igen i riktning mot den trenden. Titta på bilden nedan. Följ de vita linjerna. Prisutvecklingar och dra tillbaka, trender och drar tillbaka Så nästa nyckel är hur vet vi när vi ska gå tillbaka i riktning mot trenden Vi ser att det här händer igen och igen, så frågan är här: var kommer vi att komma in 16 16 Barriärer Vi vet att vi tittat på diagram i åratal och tiotusentals timmar som handlare tycker om att gå in i en trend på ett bra hinder. Barriär kallas också stöd eller motstånd. Motstånd är alltid över priset, och support är alltid under pris. Så du måste veta hur man ritar horisontella linjer på diagrammen. När prishöjningar och sedan går sidled, som du ser till vänster kallas detta konsolidering. Det finns en annan typ av barriär (stöd eller motstånd) som kallas historisk barriär. Detta avser ett prisområde där priset har problem med att gå under eller över. Jag skriver prisområdet eftersom det vanligtvis inte är ett specifikt pris, men en rad stöd eller motstånd. Historiska hinder: Som du kan se använder jag en rektangel för att visa detta område där priset har kämpat för att komma över eller komma under det förflutna. Du letar efter flera detaljer. Detta kräver viss övning. Så träna. Oavsett om det är ett historiskt hinder, eller konsolideringar, är båda hinder, både stöd eller motstånd. Vårt mål är att förutse var priset är troligt att studsa. 17 17 Jag kommer att dela en ytterligare teknik som du behöver träna för att identifiera hinder. Kom ihåg att besöka vårt forum som vi har skapat för dig för hjälp med alla dessa lektioner. Jag kan fortfarande komma ihåg hur trevligt det var att ha gemenskap när de lärde sig dessa tekniker. Fibonacci Retracement Tool När du ser din trend, och den trenden börjar dra tillbaka, så kommer vi att leta efter vår handel. Ordet pullback kallas även retracement. Retracement hänvisar specifikt till nivåerna för Fibonacci Retracement Tool. En återbetalning kan hänvisa till eventuell återföring eller pris. I början av den här boken gav jag dig Fibonacci-inställningar på 23,6, 38,2, 50, 61,8 och det här är det som verktyget ser ut som allt själv. Vi börjar i början av trenden och ritar sedan till slutet av trenden. Det är extremt värdefullt eftersom det också finns repetitiva mönster. Detta verktyg kan hjälpa oss att identifiera en bra barriär. 18 18 Först behöver du en trend. När den trenden börjar dra tillbaka, då kan du använda Fibonacci retracementverktyget. Härifrån kommer jag att referera till det som Fib-verktyget. När vi ritar det så kommer jag att referera till det som Fib. Som du kan se om du följer pilarna går priset åt sidan, och sedan börjar det trenden. I en downtrend vill vi sälja. Men vi vill sälja när priset drar tillbaka till en bra barriär (grön). Fib kan vara en bekräftelse på att vi har en bra barriär. 19 19 Fib drags alltid från vänster till höger. Du vet att det är dags att tänka på att rita en fib eftersom priset börjar röra sig tillbaka. Du ser de motsatta färgljusen som den på den vita pilen. Du startar Fib där trenden börjar. Här är lite kunskap för dig och 38,2 är naturliga vinstnivåer, och 50 och 61,8 är korrigeringsnivåer. Inget behov av att få mer in i det än vid den här tiden. Jag antar att jag kunde skriva en bok om varför jag tycker att det här fungerar, men det historiska mönstret är detta: 38,2, 50, 61,8 och 76,4 kan vara hinder som anger var priset ska vända. Jag uppmärksammar inte 23.6-barriären som en potentiell plats för handel. Alltför ofta rör det sig till 38,2 ändå. Så jag skulle vilja se priset gå tillbaka till 38,2 innan jag anser en handel. Nu har du två saker att leta efter som en barriär. 1. En Fibonacci retracement nivå 2. En historisk barriär. När du senare flyttar till nästa nivå av handel kommer det att finnas andra verktyg vi kan använda, och vi vann t handel om inte två hinder är närvarande tillsammans. För nu vill du bara öva. Du behöver bara en barriär. Utmattning (vid utdragning) Vid denna tidpunkt kommer det vara svårt för dig att se utmattning. Det är inte omöjligt. Det är bara att du har dina händer fulla just nu. Ju mer du övar, desto mer kommer ditt öga att börja se vilken verklig utmattning som är. Tänk dig (som vår bild ovan) priset är trending ner. SEDAN. Priset börjar dra tillbaka och köparna börjar köpa. Vi tycker om att köparen är intresserad av att bli trött eller tömma gas eller åtminstone se tecken på det innan vi går in i en handel. Det finns säkert tider som jag handlar där det inte finns några tecken på prisutmattning. När priset trender snabbt under höga marknadsförhållanden, kommer det ofta att studsa snabbt bort från vår barriär och återvända i riktning mot trenden. Du behöver inte bekymra dig om det här just nu. 20 20 För nu ska jag visa dig en långsam stokastikteknik som vi använde i åratal. Handlare använder det fortfarande idag över hela världen. Men eftersom vi handlar logik och inte en indikator, kommer priset alltid att måla en bättre bild. För nu, låt oss hålla fast vid indikatorn. Titta på den nedre rutan där vi har vår K Stochastics linje i lila. Det finns små pilar i cirklar som pekar på ytterligheterna. När priset drar tillbaka till barriären, vill vi att indikatorn ska vara extrem (mer än 80 för en försäljning) (lägre än 20 för ett köp) och sedan haka tillbaka i riktning mot handeln. Se nästa bild. Om du följer med så ser du att priset trender ner. De rörliga medelvärdena är i ordning (snabbare en i botten) som visar en säljande handel. Priset når botten, och vi ritar en fib. Vi tittar på priset för att nå 38,2, 50, 61,8 eller 76,4, eller slå ett historiskt hinder för att skapa en handel. På de två stora pilarna kan du se priset nå 38,2 och därefter nästa 61,8. Det är den punkten där priset når vårt hinder, och stokastikindikatorn hakar tillbaka. Problemet här är att stokastikerna aldrig nådde 80-nivån (översta horisontella linjen) för en försäljning. Så vi skulle inte ha ansett en handel på någon av dessa platser. Vi vill gå med trenden, få prisutslag till vår barriär och ha Stokastics extrema, vänd i riktning mot vår handel. Du kan behöva träna för att få allt detta rakt. Om jag till exempel kan dra en fib från toppen till botten av en nedåtriktad trend, kan jag bara leta efter en sälja. Stokastik kan aldrig vara längst bakom bakåt för en försäljning. Det kan bara vara över 80, haka tillbaka för en försäljning. 21 21 Låt mig ge dig ett exempel på alla dessa nödvändigheter som klarar upp och återkommer uppåt. Titta på hur trenden går uppåt (snabbare glidande medelvärde är över) och börjar sedan dra tillbaka (andra sidan). Som det gör, ritar jag en fibr från början av trenden till toppen av trenden. Nu söker jag pris för att komma ner och nå åtminstone 38.2 Fib-nivå. Det gör det, och nu ser jag ut om priset är extremt. Det är. Look at the vertical line showing the alignment. The candle before the arrow establishes Stochastics at extreme. Now pay attention carefully: In order for the Stochastics to hook back up, that 5 minute candle at my arrow MUST finish and close. When it does, I can then enter the trade. See next picture. 22 22 The green line is the price at which the candle closed. So I enter the trade right there. If you are trading a 10k practice account, don t worry about your total risk at this time. Later we will control our risk to 2-5 maximum of our equity when we trade real money. For now, that just adds more complication to your practice. For now, when you trade, just buy or sell 10 contracts (lots). You just want to repeatedly practice these elements. The stop loss goes just one PIP under the swing low. The swing low is the most recent, lowest price reached. This is usually the lowest price retraced when we are talking about pullbacks. So now we know where to put our stop loss and know the price. The next step is to determine our exit. I recommend you only target 10 pips. In order to get 10 actual pips, you will need to overcome the spread. 23 23 The trading platform I recommend for practice is called the GTS Pro. It offers many helpful functions when you are newer to trading. Notice the floating EURUSD box I have in the front of the trading platform (green rectangle). You will observe a price on the left and the right side. On the left you have the bid and sell price at Bid and Sell mean the same thing. On the right, you have the ask and buy price at They mean the same thing. The spread is the difference between the bid and ask price, or the difference between the sell and buy price. When you execute a trade, price will need to first move the amount of the spread before you get to zero (breakeven, written as BE). So in the case of the Euro, the spread is 3 PIPs. Our entry price was Price has to move 3 pips in the direction of our trade in order to breakeven. Then a movement of ten more pips would bring us to So is our profit target. When you are actually 24 24 taking trades, be very sure to enter your stop loss in the trading station as quickly as possible. To reinforce how ridiculous it is to trade without a stop loss, imagine a NASCAR driver speeding around the race track without wearing a helmet. Or a parent leaving their two year old to play by the street while they go in to make tea. That s how outrageous it is. If anyone tells you different, you now know how absurd they are. If price is too close to your stop loss, the trading platform will not allow you to enter an automatic stop loss (usually the amount of the spread or closer). So if you entered this trade, and price dropped to. you would not be able to execute an automatic stop loss. You would need to manually close the trade when the stop price is reached. The same is true for the profit target. In the trading platform, this is called a limit. Now, I m going to give you a rule you do not need to understand right now (might hurt your head to try), but you absolutely must use it or you will wonder what is happening to you at times. Read carefully and pin it to your wall: WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. This illustration above is a buy trade. So we don t do anything at all. The rule doesn t apply to buy trades. The rule only applies to sell trades. Let s walk through a trading setup again, 25 25 and then show how we would do things differently for our stop loss and limit in the trading platform. The faster moving average is on the bottom, so we can only sell. We draw a Fib from the top to the bottom of the trend. At the 61.8 level, the highest blue candle gets the Stochastics established in the upper extreme (must be upper for a sell). To hook back, the red candle at the white arrow must close. It does and you sell ten contracts immediately. Your stop loss goes 1 pip above the swing high. The spread is 3. You got in at. so your breakeven price is To make a 10 pip profit, price must move to So is your target. We now need to enter the stop loss and limit order in our trading platform. What is our rule WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. What does that mean First of all, you don t change anything on your chart only on your trading platform. So the stop loss you type into the trading platform would be or Your limit order would be or That s what you type in the trading platform. Make sure you know the rule and know what to do. The reason for this is because if you are in a sell, your contracts are going to close at the buy price (3 pips higher). So when your chart price is at your target price (1.4060), the buy price will be at Easy just follow the rule if you don t understand. 26 26 Keep in mind that different currency pairs have different spreads. The spread might even change for the pair you are trading. Be sure to check the spread each time you trade. In summary, trading is a marathon, not a sprint. You must become proficient at language, basic tools, and basic logic. Once you do, then you will be ready for more. Always remember it s not about what the market does, it s about what you do. Always keep in mind that your success depends on your ability to make good decisions, not on what you see happening in the market. me with any questions: I wish you the very best on your journey Vance Williams In the pages that follow, you will find a Level 1 Trading Plan, all the tools you need for trading, and an introduction to the next level of trading. 27 27 Level 1 Trading Plan (see next page for charts and trading software) Trend If faster moving average is above slower moving average, only buy. If faster moving average is below, only sell. Barrier Need only one barrier Can use Fibonacci retracement levels Can use historic support or resistance Stochastics Must be at upper extreme or coming from upper extreme, hooking down for a sell. Must be at lower extreme or coming from lower extreme hooking up for a buy trade. Trigger Your trade is triggered when all of these parts line up at the same time. If price is extreme and hooking back, be sure to wait for the candle to close. If price is hooking in the direction of the trade at that time, you enter. Take one trade at a time Trade 10 Contracts 28 28 Trading Platform and Trading Software You are welcome to use any charting software and any broker. I do not have a financial relationship with any broker. I recommend FX Solutions because I have been doing business with them for six years. They offer the tools for free, and the tools are very good. The way this works: If you register for a free 10k Practice Account, you will receive an with a username. That username can be used to login to charts and trading platform. 10k Practice Account Registration Upon registering, you will receive a second with a link to a new page. This page will provide free downloads, and video tutorials teaching you how to use the charts and trading platform. Be sure to let us know if you do not receive that second. Note: If you are a MAC user, to take full advantage of Forex trading software, you will need to acquire a program like Windows Parallels or get an inexpensive stand-alone PC. You can use web based software if it is your only options, though functionality will be somewhat limited (MAC is only 10 of the PC market). Please visit our Forums for technical questions and support at the following link: Forex Art of War Technical Forum Community Teamwork In all of my years of working with traders, I have found it to be of great value to be a part of a community of like-minded people. This is where you can share your trades, and share your point of view with others on their trades. This can greatly accelerate the rate at which you learn. You can access our public forums at the following link: THE FIRST BATTLE - Trader Community Forum 29 29 The Next Step SEIZE THE HIGH GROUND Once you have become proficient with the information in this book, it will be time to consider our second program, SEIZE THE HIGH GROUND. Write to me: for more information. It is a premium membership, however we are striving to keep prices as low as we possibly can while assisting you with your goals. Level 2: SEIZE THE HIGH GROUND The purpose of this program is to help you master the precise logic and tools you will later be using in Level 3, which is your method and trading plan. There are limitless setups you can choose to trade in Forex. My concern is teaching you where the best opportunities are. Trading decisions are not just about what price is likely to do. I ll be teaching you how we know which direction price is likely to go. I ll show you the optimal entry and the optimal exit. I ll teach you why trading a 1 or 5 minute chart is very difficult, why Daily and 4hr charts are easy, and why we choose to teach you to trade a 30 minute chart. I ll be teaching you insights into the market that few ever realize are taking place. All of this to give you a clear edge over other traders in the Forex market. Here is a sample of what you will be learning: New Wave Fibonacci formula for measuring trends How to Control Risk How to read price exhaustion How to read the correct trend to trade How to choose strong barriers How to factor in Time of Day When to stay out of the market And More. This will also include a Level 2 trading plan, community forum, live trading sessions, and videos assisting you to gain more insights into what I am teaching. Again contact me: if you would like to learn morements from Our Traders Hi Vance, I want to thank you for what you do Before signing up I completely ignored your member feedback page. hahaha Because it was on your site, I just assumed they were coerce or manipulated. In hindsight, now that I8217m a member, I see it8217s just feedback page. All from your members, completely honest and organic. Which makes that page even more impressive I have to say I signed up because you8217re down to earth, serious, very experienced, and accessible. You also cover all aspects of trading, not just strategy. The fact that your not a 8220youtube forex celb8221, didn8217t surprise and is a positive for you, IMO There are too many that live on teaching forex rather then actually trading forex I like your motto of education is watching you, and training is you watch us. It explains exactly what your program is all about. Your on going mentorship is of me great value to me and not to mention your entertaining and informative morning sessions Your 1cent trial is a no-brainer and your 12 monthly payment plan is very generous. I don8217t have any hesitation recommending Vance to beginners or non beginners, who are serious about being 8216consistently profitable8217 in forex Moment of Clarity A few weeks ago I had a moment of clarity. After a year of learning Forex with Vance and trading it all came together. It was one of those moments when everything you have been studying, practicing and researching all comes together in one coherent thought. The moment of Ah Ha I get it now That is what happened for me. For a year now I have been studying with Vance and trading. I have been learning more and more as the time went on. Practicing and doing research. It was just shortly after I started posting fundamentals in the Team Fundamentals Forum that I had insight. I was listening to one of the morning live recordings and Vance was talking about short and medium term trades. I am not sure what he said or what he was showing, but at that moment everything came together and I knew exactly what he was talking about, what the market fundamentals meant and what my trading plan meant. It was the best feeling I have had in a very long time concerning Forex. It was also the first time since I started this I didnt get an anxiety attack or upset stomach at the thought of trading a live account. I realized that there is not a difference, as long as I follow my trading plan. By no means am I done learning or looking for guidance from Vance, far from it. It just means I understand what Vance has been teaching us and it allows me to learn more. The foundation that Vance is teaching is more important than anything you will learn in Forex. Without it you will fail and lose all your money. My motto is Patience and Persistence. Dont rush it, dont force it. Be Patient and Persist in your learning. I am truly enjoying your program. It is more than trading it is a way of thinking and a way of life. The holistic approach Vance teaches not only helps you with your trading, but with everyday life. His advice and recommendations for reading have helped improve what I do and how I do it. This is a great course and it is hard to put a price on all the benefits you get. Keep an open mind truly listen to what is being said and you will do more than master currency trading, you will begin to master your life. I8217ve been trading forex for about 8 years since 2006. Throughout the first 7 years I spent thousands of dollars on countless online trading methods, robots, mirror trading, and none of them worked for me. I was blowing my account over and over again. On top of all my losses, I spent all day and night glued to my computer monitor looking at charts. I had no profit and no life, and even though I was working from home, I was spending more time on my charts than with my own family. I was consumed with trying to make forex my livelihood and main source of income, but my untrained efforts only brought me to more debt and a huge sense of failure. It felt almost impossible to make money trading. Most people would have probably stopped trading completely after losing over 10,000, but I still believed it was possible to make a living trading forex. When I came across Vance8217s Art of War video on youtube, I was trading a small account (1000) unsuccessfully. The free online videos and free e-books that I read and watched, showed his general method of trading which was so simple, yet so precise and accurate. I was even starting to make consistent profit following just his youtube videos, so I knew that I stumbled onto what I have been looking and hoping for all these years. The fact that he was giving away his method for free and not some sneaky tease method only to lure you in to pay for some software or EA and then leave you to fend for yourself, was unique to me. So I put my live account on hold and joined his forexartofwar program. Vance helps you create a trading plan, using his proven method, designed specifically for each individual trader. His training, forum, insight, and expertise are like nothing I8217ve ever come across. For the first time in 8 years, I am trading with a step by step plan that he helped create for me to trade successfully with consistent profit. I don8217t spend my entire day glued to my charts anymore. I have strict rules that I follow which now gives me the freedom and peace of mind I never had trading forex. Although I still have more to learn through my experience, I am greatly appreciative to Vance and everyone in the forum who has helped me get to where I am today. I8217ve learned more about my trading and myself personally in the last 7 months from Vance than I have in the last 7 years on my own. I really love your philosophical approach to trading. I now truly appreciate the interconnectedness of all that is. Your program has given me all the necessary tools for me to develop my own skill. I could write an essay detailing the value of your guidance but to put it succinctly, thank you for being the signpost that has shown me the path of least resistance. I8217m grateful for the wealth of knowledge and training you have provided me. Thanks for keeping it real I signed up with Vance about 7 months ago. I have been busy with my two little daughters, so I8217ve been working on the program very slowly. Vance8217s program has many great qualities. For me, it8217s extremely flexible. And because Vance watches your progress PERSONALLY, you receive top notch education. The live sessions are great. You interact DIRECTLY with Vance and other traders. Vance does not just give you information and learning material and tells you to go figure it out. He watches your practice trades and gives you personal feedback. And for me, that is the most valuable education I can get anywhere. I am a curious person by nature. I have dabbled in a lot of different educationalfinancial concepts. I have always been looking for a great way to get involved in the financial market. When I ran across ForexArtOfWar I thought it was just another one of those websites that wanted to take your money and leave you high and dry. I entered my contact information in on the website and did not expect anything to come of it. The next morning I awoke to a call from Vance. I thought 8220wow, they seem on top of it, for sure this is just one of those telemarketers.8221 He told me about a free 30 day trial to the complete education of the website and then hands on training with a reasonable cost after a month. I thought to myself we will see what happens after 30 days right I was travelling for work then, so I had quite a bit of free time. I began learning as much as I could as quick as I could. I got to a point where I had learned the concepts (so I thought). I was thinking they would just say thanks for your money, now go out and use your money to practice what we taught. That was not what happened at all. I was told to not open a live account and just practice under the direction of Vance and his team until I knew exactly what was happening. So8230.Here I sit about 6 months after running into ForexArtOfWar and I am getting much closer to live trading. I feel a million times more secure about what is happening in the Forex market than I did before. I had no knowledge at all. I now know that when I do start live trading, I will understand the logic of the market well enough to experience success. Vance has characteristics that are not found very often in people. For some reason, he wants to mentor us as we grow and make us better Forex traders. It is as if everything he does is only to help others. That is a very admirable trait that the majority of us do not possess. I am brand spanking new to forex trading and have been navigating my way through the site and level 1 videos and training. Needless to say everything feels a bit daunting but just sitting and focusing every day and not letting my fear and slow progress discourage me is great. I am usually very impatient but realized that will just land me into deep water in the world of forex trading. Just having to go through everything step-by-step with the assistance of the trainers is forcing me to focus, master and then move on at a reasonable pace. What I find particularly motivating is to see how different people are progressing to different levels every day 8211 that is really very inspirational to me and it keeps me focused and exited to keep going. This is a great learning community and exactly what a newbie like me needs. There is no ra, ra, ra about how much money is made and no moaning and complaining about how much is lost. Vance, thank you for creating such a great space to learn and thank you everyone for building and maintaining such a great positive learning community. If you are looking for an edge in the Forex market, this is the place to be. Fundamental and technical education is important, but training and discipline is what sets an Art of War trader apart from the rest of the market. You know you are working with the real deal when the program has been developed and centered around principles from the one and only, Sun Tzu. What really sets this program apart from the others is the psychological training you receive as well. It is what gives you the edge as a trader. You must conquer yourself before you8217re even able to survive in the Forex market. The added benefit of having psychological training is that it has positively influenced all aspects of my personal life too Working with Vance and his team is a pleasure. The training and social environment is friendly and more importantly, focused. If you want a professional, no nonsense, down to earth, practical, and encouraging approach to Forex, then Vance is your man. It8217s affordable, and you get more than you pay for 8211 provided you apply yourself and put trust in the program. I feel that I could not have done this any quicker with anyone else. From zero trading experience to going live in just 5 months 8211 and without any compromise to the quality of education or training. Joining this program has made me feel very grateful for having saved and years of grief from failure. THANK YOU Vance and team Vance8217s flexibility and patience allowed me to combine this training with employment and college work. I8217ve been training with vance for a little over 18 months now. I8217ve been supplementing university work with trading in my free time so I have subsequently progressed significantly slower through the training process than my fellow traders here at FAW. I was initially surprised at vance8217s dedication to each individual trainee8217s skills and circumstances. In the beginning I8217d often remind Vance of how I8217m getting on as I knew he had 100s of trainees and didn8217t want to be forgotten in the haystack, however overtime Vance8217s actions made it clear that he sculpts the program around each individual8217s interests and skills so I had nothing to worry about Now at level 3, Vance and I spent hours (30min at a time) developing and perfecting a high probability trading setup that I am confident using. The amazing thing is that I did it all by myself This is why I believe Vance is great at being patient with his trainees, as contrary to other Forex programs, Vance waited until I observed the correct behavior myself and merely guided me in the correct track. Vance allowed me to write and develop every part and nuance of my own system for myself which gives me a solid sense of satisfaction and credibility when executing decisions in real time. The most valued facet of this program however is the complimentary wisdom he gives. Vance8217s methodical and psychological approach to not just trading, but real world experiences has really taught me a lot and helped me address daily encounters with more of a logical, planned perspective. His rants about expectations, consistency, execution and assumptions I tend to find increasingly interesting as often his life experiences and advice are ones I find value in and appreciate. Becoming a member of this program is quickly shaping out to be one of my most proudest decisions of my life at the age of 22 I would certainly recommend a friend to try at least a couple of months with the FAW team, and once you see the light, you8217ll want to never leave Disclaimer: Forex Art of War and Vance Williams believe that customer should be aware of the risks associated with over-the-counter, spot Forex. Forex trading is highly speculative in nature which can mean currency prices may become extremely volatile. Forex trading is highly leveraged, since low margin deposits normally are required, an extremely high degree of leverage is obtainable in foreign exchange trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited. You may sustain a total loss of your funds. Since the possibility of losing your entire cash balance does exist, speculation in the Forex market should only be conducted with risk capital you can afford to lose which will not dramatically impact your lifestyle. Forex Art of War is proudly powered by WordPress and BuddyPress. Just another WordPress Theme developed by Themekraft. THE FIRST BATTLE, Forex Art of War Transcription 1 1 THE FIRST BATTLE, Forex Art of War 2 2 THE FIRST BATTLE, Forex Art of War Most traders dont recognize their first battle. But since it is a battle of vision, it must be won. If you are going to win in trading, you have to understand how the game is really played. The Forex culture fosters the belief that if you have enough information, if you manage your risk well, and if you are disciplined, you will win. That is absolutely TRUE. But it s also like telling someone who is overweight if you eat right and exercise, you will lose weight. Is that a STRATEGY for losing weight No. When an objective is truly important, you will take the time to consider everything that can affect your success. Even when you have a good plan, it is a starting point. As you put your plan into practice, you discover critically important information about yourself. Such as, you will find it s better to not go to the store hungry. You might also discover that you continue to eat after you are no longer hungry. Personally, I discovered that even though I won t jog, I won t walk, I won t stretch, I will get beat up for an hour in Muay Thai Kick Boxing. Go figure. When I moved from my former residence and could no longer practice the same discipline, I had to find something else that I would do. Eventually I discovered that I ll walk endlessly on the treadmill if the TV is on. Bingo. When I came to Forex trading in 2004, my advantage was my experience with selfdiscipline. How do I get myself to make good choices How do I consistently make good choices If our goal is to lose weight, our greatest difficulty is going to be dealing with how we feel. We want something that is not good for us. The same is true with Forex trading. You are going to find out sooner or later that your emotions will prevent you from making money if you don t have a strategy for making good decisions in spite of your emotions. So this is your first and most important choice. Do what you feel like doing. 3 3 Or Learn go make good decisions regardless of the emotions you experience. Those are your two choices. Both are about how you feel. One is easy and results in no profit and the loss of all of your money. The second requires an effort and can enable you to reach your goal. Make the right choice and you move forward. Make the wrong choice, and you end up repeating the same activity over and over again for months or years. This was Einstein s definition of insanity, but people do it anyway. If you are ready to make the right choice, I wrote this for you. The Forex quotculturequot encourages an ineffective vision of Forex trading. For this reason it is vital for your success that you begin by reading the ebook: 8 Things They Don t Tell You About Forex Trading. My book explains why the Forex culture is the way it is, why traders lose their money, and that it is totally unnecessary. A Brief Overview of Forex Art of War Forex Art of War is a holistic strategy that takes into consideration all variables that have the potential of affecting your success. That part of the strategy began in October, In March 2010, I began testing the strategy with traders with great success over the next year. That strategy and what happened became documented in my 232 page book, Forex Art of War. Shortly after publishing my book, I recognized the need for more of a step by step process, and divided the strategy into three levels. Those have now developed into THE FIRST BATTLE, followed by SEIZE THE HIGH GROUND, followed by Sun Tzu RULES OF ENGAGEMENT. They are three levels. The first level (where you are now) is about becoming proficient with tools, language, and basic logic. The second level is about all of the important market information and tools that you are really going to use when you actually begin trading for profit. The third level is about how high risk decisions are made and focuses primarily on a process of separating your emotions from your decisions. 4 4 Getting Started Be sure to check us out on Facebook. My blog is Feel free to me at with any thoughts or questions This guide is intended to show you the fastest and most efficient way to get started trading the Forex. I m not going to explain trading in a traditional sequence. Instead, we are going to get right into the charts, and you can learn as you go. The information is presented in the order it will be used. If you have the need, please ask us to forward links for free charts, practice account and trading platform. We include videos that explain their use. It s fine if you already have your own charts and trading platform. Forex Art of War is a holistic strategy for winning that takes into account everything that affects your ability to make consistent profit. I consider this book (The First Battle) to be the first level of knowledge, skill, and application. To illustrate: Before you can express an idea in a sentence, you must be able to write the words. To write words you must first learn the letters and basic rules for spelling. Once you are proficient in market language and tools, you can then move to the second level, which is logic and technique. The third level is where you understand how profit is actually made and includes the method, trading plan, evaluation and adjustment. The most important is the third level, where you learn to separate your decisions from your emotions. For now, just practice the basics. Here are the specific learning goals of Level 1: Tools such as charts and trading platform Vocabulary such as PIPs and Stop Loss Basic trading logic that teaches trends, barrier, entry and exit I have been trading and training others for more than seven years at this point. I have worked with thousands of aspiring traders, and had the privilege of working with some truly great traders. I love what I do because it is challenging and because I can help people to improve. People who strive to reach farther in their life inspire me. There are literally tens of thousands of pieces of information you can learn about the Forex market. I m only going to focus on the essential things that you quotneedquot to learn. I believe 5 5 that you cannot make lots of profit until you learn to make some profit. So that is an important principle applied in this book and the subsequent training. Basic Logic As traders, we are anticipating what will happen in the future. How do we do this There is a simple logic in trading. Logic can be viewed and defined in many ways. I like to keep things simple. When I refer to logic, I m referring to information from the past that can be used to anticipate what is likely to happen in the future. Human behavior is repetitive. When you look, you see it everywhere. We tend to shop at the same places, and buy the same food. We know when traffic will be congested on our roadways. While I have written extensively on this subject, suffice it to say that not only do we repeat the same behaviors over and over again, we have difficulty changing a behavior even when we make a conscious effort. Just remember your struggle the last time that you set out on a new diet or exercise program. There is a deeper reason for our human frailty. The same mathematical sequence we see everywhere in nature is also in us. That is why we can rely on historical information to anticipate what is likely to happen in the future. Grocery stores even set prices based on your behavior. When I talk about repetitive patterns, I m not just talking about patterns you hear about like trends, head and shoulders, candle patterns, double tops, etc. etc. I m talking about patterns throughout the entire decision process. We know traders like to trade trends. Where do they like to get in Where is the best place for you to get in Where is the best place to put your stop loss and profit target There are patterns (logic) for all of these decisions. So as buyers buy and sellers sell in the Forex market, they create patterns. These patterns show us what traders are doing over and over again. So when we see the pattern next time, we know what is likely to happen again. 6 6 The Forex I m going to be brief in my explanations because there is so much that you don t need to know. Forex is short for Foreign Exchange. It s the largest market in the world. I think of money as the life blood of business and the Forex as the circulatory system. It is a network of 1000 s of banks around the world with no central location. No one is in charge. The purpose of the Forex market is to determine a fair price of exchange between two currencies. The price is determined using the principle of supply and demand. If there are more buyers at any given moment, price is moving up. If there are more sellers, price is moving down. What is the Forex to me A stream of data. To me, that s all it is. It is a stream of data (for real). That data comes into my software and tells me what price is doing. What else do I need to know Not much. Trading Software Trading software takes in the data feed about buying and selling around the world and can be used in many different ways. In 2001 Platforms became very stable so that we were able to trade from our personal computers. So the industry or retail Forex trading (you and me) is still in its infancy. Brokers or dealers provide most of the data feeds, charting software and trading platforms. These should be free of charge. Most brokers are willing to supply these to you in hopes that you will eventually trade a live account with them. Be sure you only open a practice account, NOT a live account. has free 10,000 practice accounts available, as most others do (note that we are NOT brokers and have NO financial relationship with a broker). Do not open a live account until you actually know how to trade. If you open a live account prematurely, even if you intend not to trade it, there is a 90 chance (at least) that you will trade it and that you will lose all of your money. Again, make sure you read my free ebook, 8 Things They Don t Tell Forex Traders. 7 7 I prefer Accucharts. Metatrader is also a good charting software program. You can get these free by contacting me at For those of you who are MAC users, you will need to use Windows Parallels or a program like it to take full advantage of the tools available to a Forex trader. I know MAC users don t like to hear it, but MAC is only 10 of the PC market, so those who write software write it for the bigger market first. The good news is that programs work pretty well using Parallels. My suggestion for MAC users would be to get an inexpensive stand-alone PC. You can use web based software on MAC but functions will be limited. With modern software, you can execute trades directly from your charts. I prefer to have my charting software on my desktop and execute my trades using the web based trading platform. I recommend a desktop trading platform for new traders because it has functions that enable you to learn details you don t know. Later, all you will need to do is execute orders, and you can move to a web based platform where execution will be even faster. Once again, we do not benefit financially from you opening a live account with a broker. It s okay if you already have your own software. Just contact us if you need any help. Charts usually display military time as 00:00-23:00. To calculate the time, just subtract 12 hours. So if you see it is the 14:00 candle and you are not familiar with military time, subtract 12 hours and you know that is 2PM. I recommend you set your charts to GMT -4:00 in the Spring and GMT -5:00 in the Fall (when US changes time). In order to correctly follow what we are doing and saying, you would need to make this adjustment. If, for example, one of our traders writes that they entered the trade at 13:00, unless your charts are set to the same time zone, you won t understand or see what they are seeing. I recommend Fibonacci retracement tool settings of 23.6, 38.2, 50, 61.8 and These are used to measure the natural retracement areas of price waves, and will be important later. Give yourself time to practice and become familiar with the charts and trading platform. I m going to give you a specific system in this guide so that you can practice. This will help you develop proficiency with the tools, a familiarity with the vocabulary we traders use, and you ll be going through the motions of applying good trading logic. 8 8 Market Language There is definitely a vocabulary or language to trading a few words and terms. I think the fastest way to learn is to begin using the charts and trading platform. You find out quickly what you don t know or are not sure about. When you come across a word or term you don t know, just ask or look it up. I ll briefly define most of the words and terms that are important. Valutor handlas i par. So when we trade, we trade a pair such as the EURUSD. The currency on the left is the base currency. The currency on the right is the quoted currency. So that means when you look at a EURUSD chart, you are seeing the Euro value move up and down on the chart. The price on the right side of the chart is the USD. So that chart is telling you how much US Dollars it takes to buy one Euro. You don t really need to know that to trade, though. All you need to know is this: If you buy and price goes up, you make money. If you buy and price goes down, you lose money. If you sell, and price goes down, you make money. If you sell and price goes up, you lose money. Buying or selling is the exact same thing because of the great liquidity in this market. That just means that there are always buyers and sellers available. That is very different from stocks where price could be plummeting and you cannot close the trade because there are no buyers. What you need to know is this: buying and selling is the same exact action. Another thing you need to know is that price movement is measure in PIPs. Just think of it as a currency measurement just like quarters, nickels, dimes and pennies. Only it is even smaller. In US Dollars, a PIP is one 10,000 th of a cent (it was pointed out to me there are actually no pennies in the US, we just got in the habit of calling it a penny). Now you don t need to know all of that. All you need to know is that a PIP is the last two digits on the chart. As I write this, the EURUSD is at That means that the exchange rate is one dollar, thirty eight cents, and eighty two pips for one Euro. So as Forex traders, we are only watching the value in PIPs. You don t even need to know what PIP stands for. It used to represent Price Interest Percentage. It has become popular to call it Percentage in Point. 9 9 While you are new, stick with US Dollar pairs. It will save you confusion. For example, if you are trading the EURGBP (called a cross pair), there is no US Dollar in the pair. If you were from the US, you would need to determine the actual PIP value in US Dollars. Keep in mind that there are so many things that you can learn about this market. But if you want to learn fast, focus on only the essential things. Then learn the other stuff as you go. Keep trading as simple as possible I think it is useful for even a new trader to know that most of the volume in the Forex market is the US Dollar, Euro, Great British Pound, and Yen. USD 40, Euro 20, Pound 12, and Yen 8. Those are approximate enough to show you that 80 of all movement in this market is in those four pairs, with much greater volume with the EUR and USD. The Yen tends to be a little more erratic. So when you are new, avoid that currency. Currently there are some intervention issues going on around the Yen. An intervention is when a central bank, a group of central banks, or policy makers take action to alter the price of a currency. Setting up Your Charts For a new trader, I recommend practicing with EURUSD, GBPUSD, and then minor pairs AUDUSD and NZDUSD. You don t need a lot of pairs to practice. I would have liked to recommend the USDCHF, but recently the Swiss central bank began to intervene on behalf of their currency, as well. In my book, Forex Art of War, I show you a method that uses primarily longer term charts (4hr and daily). I believe that your best read on the entire market is going to be the 4hr charts. Having said that, trading the 4hr and daily charts are difficult for most traders because they come to the market expecting more opportunities than the market offers. So even trading 8 pairs, with a great method, you might only get one good setup a week. Most traders are not content with such few trading opportunities, though some certainly are. I include it in my book (Forex Art of War) because it is the best logic available. When you are newer, I think the most important thing to do is practice. You need to develop basic market proficiency with tools, logic and language. Tools such as charts and trading platform Language such as PIPs and Stop Loss 10 10 Basic trading logic that teaches trends, barrier, entry and exit This is what you need to get down in the first level, as I see it. Be careful not to take on too much at once or you will be easily overwhelmed. Just focus on getting proficient at those three areas first. To accomplish this, I m going to give you something to practice. First setup your charts so that you have EURUSD, GBPUSD, AUDUSD, and NZDUSD. Set each chart to be 5 minute candles. I recommend 5 minutes because this will give you plenty of opportunities to practice. I have important reasons for recommending the following. Place a 21 and 55 EMA on each of the charts. These are called exponential moving averages. It doesn t really matter how or why they work. All that matters is how we are going to use them. Next, I want you to put a Slow Stochastics indicator on each chart. This will usually appear in a lower pane under the chart. The K period will be set to 5, D set to 3, and K Slowing to 3. Make D the same color as your background. We are only interested in the K period. So if you can t change D, just be sure you know which one is the K line. There should be an upper horizontal line that is 80, and a lower line that is 20. Now you have four 5min charts with 21 and 55 EMAs and a Slow Stochastics indicator. I recommend candles. If you are using web based charts, you might be limited, which is ok. Obviously I am recommending candlestick charts. They are the most common charts being used. Once you get to know me, you will see that I m always just watching what the trend is doing, watching what everyone else is doing, and based on what they do, I form high probability conclusions. So if most traders are using candlestick charts, that s what I want to be using, too. Be sure and go to our forums at and ask for help if you have questions about charts. The Reason I ask you to setup your charts in this way: More trading opportunities (5 min charts) Learn to follow a trend (21 and 55 EMAs) 11 11 Learn to see a pullback (ahead in this book) Learn to see a barrier (ahead in this book) Learn to see exhaustion (Slow Stochastics) Learn to enter and exit trades (ahead in this book) If you are ever going to make profits trading Forex, you have to be able to successfully execute this logic. So even though we are not focusing on making profits right now, you are going to be applying much of the logic that does make you profits. Your chart should look something like this. You can adjust the colors however you like. I have a black background for both panes, but you can use whatever you want. Some traders prefer to use different colors for candles. Some need to use different colors because of the unique way their eyes (brains) process information. Whatever the case, it really doesn t matter what the colors are, as long as you know what they represent. 12 12 You only see one line on my Slow Stochastics because I made the D line black. It just blends in with the background. Again, both can show. just make sure you make K a distinct color. About Candles The time of the chart is on the bottom, left to right. On my chart, you see blue and red candles. The blue candles represent buyers and the red candles represent sellers. We could make these candles represent any time frame. In the second and third level, we change to 30 minute charts. Currently we are using 5 minute charts, designating that each candle is created in a 5 minute period. If you see a completed blue candle, that means there were more buyers than sellers during that 5 minutes. If you see a completed red candle, that means there were more sellers than buyers in that 5 minute period. Candles have bodies, wicks, and tails. These images are created by the high, low, open and close prices. So at the arrow, that is the tail (vertical line extending from the body down), and the lowest point of that tail is the lowest price that candle reached during that period. 13 13 The vertical line on the top of the candle is the wick. The rectangular part of the candle is called the body. If the body is blue, then the candle began (opened) on the lowest part of the body, and ended (closed) at the highest part of the body. If the candle is red, then price opened on the highest part of the body and closed at the lowest part of the body. These are quite a few details that I am throwing out at you, but it is information you need to know. So let s think about some of that. If there were three blue candles in a row, which way does price have to be going It can only be going up. The inverse is true of red candles. Sometimes it will be necessary for you to find out what the high, low, open or close is. You can eye ball this, but the more accurate way to do it is to use the cross hairs and display data box. On most charts, when you left click, and line up the vertical axis on any candle, a box will pop up. That box will tell you all of the specific information you might want about that candle. It will also tell you the positions of moving averages and other indicators. 14 14 The TREND As I mentioned in the beginning, all of our decisions are based on logic. That logic is the result of a study of historic patterns that are created by buyers and sellers. There are chart patterns, candle patterns, indicator patterns, and even other not so well known patterns. The most repeated pattern on the charts is what we call a trend. In trader speak, a trend is when you see price moving in a particular direction. In this picture on the left, price is trending down. The reason we want to know about the trend and learn to recognize it first is because MOST traders want to trade in the direction of the trend. So YOU should be looking to trade in the direction of the trend. A trend is any clear price move up or down. In this picture (right), price is not trending, it is sideways. On the left here again, I want to bring your attention to something else. The more experience you get, the less you will need to rely on indicators. The yellow lines are the 21 and 55 EMAs. They are moving averages. 90 of the time, they are going to give you an accurate read on the trend direction. That s good enough when you are learning how trading works. So trending is easy for you. If the faster moving average is on top, you only buy. If the faster moving average is on the bottom, you only sell. Don t overcomplicate this. Even some of the most skilled and successful traders use moving averages. Why Because it gives them something definitive on which to base decisions. The more experience you get, the more you will appreciate the value of good definition. So we can see in this picture that price is making a steady move down. We can also just look at the moving averages and see that they are apart and down. That s all we need to see for now. We are now building a trading method for practice that will consist of 15 15 Trend Pullback to barrier Exhaustion at the barrier Trigger Entry and exit So we have trend so far. Pullbacks The barrier is just as important as the trend. We said that traders like to trade in the direction of the trend. We also know from repeated observation that traders like to enter that trend when price pulls back. Because of this market psychology, you will see a pattern repeating over and over again. You will see a trend, you will see a pullback, and then you will see price push again in the direction of that trend. Look at the picture below. Follow the white lines. Price trends and pulls back, trends and pulls back So the next key is how do we know WHEN to get back on in the direction of the trend We see this happening over and over again, so the question is this: where will we get in 16 16 Barriers We know from looking at charts for years and tens of thousands of hours that traders like to enter a trend at a good barrier. Barrier is also called support or resistance. Resistance is always above price, and Support is always below price. So you will need to know how to draw horizontal lines on your charts. When price trends and then goes sideways, as you see on the left, this is called consolidation. There is another type of barrier (support or resistance) that is called historic barrier. This refers to a price area where price has trouble going below or above. I write price area because it is usually not a specific price, but a range of support or resistance. Historic Barriers: As you can see, I am using a rectangle to show this area where price has struggled to get above or get below in the past. You are looking for multiple touches. This takes some practice. So practice. Whether it is a historic barrier, or consolidations, both are barriers, both are support or resistance. Our goal is to anticipate where price is likely to bounce. 17 17 I m going to share one more technique that you will need to practice for identifying barriers. Remember to visit our forums we have created for you for help with all of these lessons. I can still remember how nice it was to have community when learning these techniques. The Fibonacci Retracement Tool Once you see your trend, and that trend begins to pullback, this is where we will look for our trade. The word pullback is also called retracement. Retracement refers specifically to the Fibonacci Retracement Tool levels. A pullback can refer to any reversal or price. In the beginning of this book, I gave you Fibonacci settings of 23.6, 38.2, 50, 61.8, and This is what that tool looks like all by itself. We start at the beginning of the trend, and then draw it to the end of the trend. It is extremely valuable because there are repetitive patterns here, too. This tool can help us to identify a good barrier. 18 18 First you need a trend. When that trend starts to pullback, that s when you can use the Fibonacci retracement tool. From here on out I ll refer to it as the Fib tool. Once we draw it, I ll refer to it as Fib. As you can see if you follow the arrows, price is going sideways, and then it begins to trend down. In a downtrend, we would want to sell. But we want to sell when price pulls back to a good barrier (green). The Fib can be one confirmation that we have a good barrier. 19 19 The Fib is always drawn from the left to right. You know it is time to think about drawing a fib because price begins moving back up. You ll see the opposite color candles like the one at the white arrow. You start the Fib where the trend begins down. Here is some knowledge for you and 38.2 are natural profit taking levels, and 50 and 61.8 are correction levels. No need to get more into it than that at this time. I suppose I could write a book on why I think this works, but the historical pattern is this: 38.2, 50, 61.8, and 76.4 can be barriers indicating where price will turn. I don t pay attention to the 23.6 barrier as a potential place for a trade. All too often it moves to 38.2 anyway. So I would like to see price move back to 38.2 before I consider a trade. Now you have two things to look for as a barrier. 1. A Fibonacci retracement level 2. A historic barrier. As you later move to the next level of trading, there will be other tools we can use, and we won t trade unless two barriers are present together. For now, you just want to practice. You only need one barrier. Exhaustion (at the pullback) At this point it will be difficult for you to see exhaustion. It s not impossible. It s just that you have your hands full right now. The more you practice, the more your eye will begin to see what real exhaustion is. Imagine (like our picture above) price is trending down. SEDAN. price begins to pullback and buyers start to buy. We d like buyer interest to get tired, or run out of gas or at least see signs of it before we enter a trade. There are certainly times that I trade where there are no signs of price exhaustion. When price is trending quickly during peak market hours, it will often bounce quickly off our barrier and return in the direction of the trend. You don t have to concern yourself with this at this time. 20 20 For now, I ll show you a Slow Stochastics technique we used for years. Traders still use it today the world over. But since we trade logic and not an indicator, price is always going to paint a better picture. For now, let s stick with the indicator. Look at the lower pane where we have our K Stochastics line in purple. There are little arrows in circles pointing at the extremes. When price pulls back to the barrier, we want the indicator to be in the extreme (higher than 80 for a sell) (lower than 20 for a buy) and then be hooking back in the direction of the trade. See next picture. If you are following along you will see that price is trending down. The moving averages are in order (faster one on the bottom) showing a sell only trade. Price reaches the bottom, and we draw a fib. We are watching for price to reach the 38.2, 50, 61.8, or 76,4, or hit a historic barrier to set up a trade. At the two BIG arrows, you can see price reaching 38.2 and then next 61.8. That is the point where price reaches our barrier, and the Stochastics indicator is hooking back down. The problem here is that the Stochastics never reached the 80 level (top horizontal line) for a sell. So we would not have considered a trade in either of those locations. We want to go with the trend, have price pullback to our barrier, and have Stochastics extreme, turning in the direction of our trade. You might have to practice to get all of this straight. For example, if I m drawing a fib from the top to bottom of a down trend, I can only ever be looking for a sell. Stochastics can never be at the bottom extreme hooking back for a sell. It can only be above 80, hooking back for a sell. 21 21 Let me give you an example of all of these necessities lining up and coming back up the other way. Look at how the trend moves up (faster moving average is above), and then begins to a pullback the other way (back down). As it does, I draw a fib from the start of the trend to the top of the trend. Now I m looking for price to come down and reach at least the 38.2 Fib level. It does, and now I look to see if price is extreme. Det är. Look at the vertical line showing the alignment. The candle before the arrow establishes Stochastics at extreme. Now pay attention carefully: In order for the Stochastics to hook back up, that 5 minute candle at my arrow MUST finish and close. When it does, I can then enter the trade. See next picture. 22 22 The green line is the price at which the candle closed. So I enter the trade right there. If you are trading a 10k practice account, don t worry about your total risk at this time. Later we will control our risk to 2-5 maximum of our equity when we trade real money. For now, that just adds more complication to your practice. For now, when you trade, just buy or sell 10 contracts (lots). You just want to repeatedly practice these elements. The stop loss goes just one PIP under the swing low. The swing low is the most recent, lowest price reached. This is usually the lowest price retraced when we are talking about pullbacks. So now we know where to put our stop loss and know the price. The next step is to determine our exit. I recommend you only target 10 pips. In order to get 10 actual pips, you will need to overcome the spread. 23 23 The trading platform I recommend for practice is called the GTS Pro. It offers many helpful functions when you are newer to trading. Notice the floating EURUSD box I have in the front of the trading platform (green rectangle). You will observe a price on the left and the right side. On the left you have the bid and sell price at Bid and Sell mean the same thing. On the right, you have the ask and buy price at They mean the same thing. The spread is the difference between the bid and ask price, or the difference between the sell and buy price. When you execute a trade, price will need to first move the amount of the spread before you get to zero (breakeven, written as BE). So in the case of the Euro, the spread is 3 PIPs. Our entry price was Price has to move 3 pips in the direction of our trade in order to breakeven. Then a movement of ten more pips would bring us to So is our profit target. When you are actually 24 24 taking trades, be very sure to enter your stop loss in the trading station as quickly as possible. To reinforce how ridiculous it is to trade without a stop loss, imagine a NASCAR driver speeding around the race track without wearing a helmet. Or a parent leaving their two year old to play by the street while they go in to make tea. That s how outrageous it is. If anyone tells you different, you now know how absurd they are. If price is too close to your stop loss, the trading platform will not allow you to enter an automatic stop loss (usually the amount of the spread or closer). So if you entered this trade, and price dropped to. you would not be able to execute an automatic stop loss. You would need to manually close the trade when the stop price is reached. The same is true for the profit target. In the trading platform, this is called a limit. Now, I m going to give you a rule you do not need to understand right now (might hurt your head to try), but you absolutely must use it or you will wonder what is happening to you at times. Read carefully and pin it to your wall: WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. This illustration above is a buy trade. So we don t do anything at all. The rule doesn t apply to buy trades. The rule only applies to sell trades. Let s walk through a trading setup again, 25 25 and then show how we would do things differently for our stop loss and limit in the trading platform. The faster moving average is on the bottom, so we can only sell. We draw a Fib from the top to the bottom of the trend. At the 61.8 level, the highest blue candle gets the Stochastics established in the upper extreme (must be upper for a sell). To hook back, the red candle at the white arrow must close. It does and you sell ten contracts immediately. Your stop loss goes 1 pip above the swing high. The spread is 3. You got in at. so your breakeven price is To make a 10 pip profit, price must move to So is your target. We now need to enter the stop loss and limit order in our trading platform. What is our rule WHEN IN A SELL TRADE YOU MUST ADD THE SPREAD TO YOUR STOP LOSS AND LIMIT WHEN TYPING IT INTO YOUR TRADING PLATFORM. What does that mean First of all, you don t change anything on your chart only on your trading platform. So the stop loss you type into the trading platform would be or Your limit order would be or That s what you type in the trading platform. Make sure you know the rule and know what to do. The reason for this is because if you are in a sell, your contracts are going to close at the buy price (3 pips higher). So when your chart price is at your target price (1.4060), the buy price will be at Easy just follow the rule if you don t understand. 26 26 Keep in mind that different currency pairs have different spreads. The spread might even change for the pair you are trading. Be sure to check the spread each time you trade. In summary, trading is a marathon, not a sprint. You must become proficient at language, basic tools, and basic logic. Once you do, then you will be ready for more. Always remember it s not about what the market does, it s about what you do. Always keep in mind that your success depends on your ability to make good decisions, not on what you see happening in the market. me with any questions: I wish you the very best on your journey Vance Williams In the pages that follow, you will find a Level 1 Trading Plan, all the tools you need for trading, and an introduction to the next level of trading. 27 27 Level 1 Trading Plan (see next page for charts and trading software) Trend If faster moving average is above slower moving average, only buy. If faster moving average is below, only sell. Barrier Need only one barrier Can use Fibonacci retracement levels Can use historic support or resistance Stochastics Must be at upper extreme or coming from upper extreme, hooking down for a sell. Must be at lower extreme or coming from lower extreme hooking up for a buy trade. Trigger Your trade is triggered when all of these parts line up at the same time. If price is extreme and hooking back, be sure to wait for the candle to close. If price is hooking in the direction of the trade at that time, you enter. Take one trade at a time Trade 10 Contracts 28 28 Trading Platform and Trading Software You are welcome to use any charting software and any broker. I do not have a financial relationship with any broker. I recommend FX Solutions because I have been doing business with them for six years. They offer the tools for free, and the tools are very good. The way this works: If you register for a free 10k Practice Account, you will receive an with a username. That username can be used to login to charts and trading platform. 10k Practice Account Registration Upon registering, you will receive a second with a link to a new page. This page will provide free downloads, and video tutorials teaching you how to use the charts and trading platform. Be sure to let us know if you do not receive that second. Note: If you are a MAC user, to take full advantage of Forex trading software, you will need to acquire a program like Windows Parallels or get an inexpensive stand-alone PC. You can use web based software if it is your only options, though functionality will be somewhat limited (MAC is only 10 of the PC market). Please visit our Forums for technical questions and support at the following link: Forex Art of War Technical Forum Community Teamwork In all of my years of working with traders, I have found it to be of great value to be a part of a community of like-minded people. This is where you can share your trades, and share your point of view with others on their trades. This can greatly accelerate the rate at which you learn. You can access our public forums at the following link: THE FIRST BATTLE - Trader Community Forum 29 29 The Next Step SEIZE THE HIGH GROUND Once you have become proficient with the information in this book, it will be time to consider our second program, SEIZE THE HIGH GROUND. Write to me: for more information. It is a premium membership, however we are striving to keep prices as low as we possibly can while assisting you with your goals. Level 2: SEIZE THE HIGH GROUND The purpose of this program is to help you master the precise logic and tools you will later be using in Level 3, which is your method and trading plan. There are limitless setups you can choose to trade in Forex. My concern is teaching you where the best opportunities are. Trading decisions are not just about what price is likely to do. I ll be teaching you how we know which direction price is likely to go. I ll show you the optimal entry and the optimal exit. I ll teach you why trading a 1 or 5 minute chart is very difficult, why Daily and 4hr charts are easy, and why we choose to teach you to trade a 30 minute chart. I ll be teaching you insights into the market that few ever realize are taking place. All of this to give you a clear edge over other traders in the Forex market. Here is a sample of what you will be learning: New Wave Fibonacci formula for measuring trends How to Control Risk How to read price exhaustion How to read the correct trend to trade How to choose strong barriers How to factor in Time of Day When to stay out of the market And More. This will also include a Level 2 trading plan, community forum, live trading sessions, and videos assisting you to gain more insights into what I am teaching. Again contact me: if you would like to learn more.