THEFOREXTRADER′SHANDBOOK

PROVENFOREXTRADINGBASICS,TIPS&TRICKSTOCREATEPOSITIVE&LONG-LASTINGRESULTSFORBEGINNERS,ADVANCEDTRADERSORANYONESTRUGGLINGWITHFOREX

TRADING

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TABLEOFCONTENTSDEDICATIONINTRODUCTION3STEPSTOBECOMEAPROFOREXTRADERStep1:LearnTheBASICSChapter1.WhatIsForexChapter2.WhyYouShouldTradeForexChapter3.Only4ThingsYouNeedForYourForexTradingChapter4.WhatIsCurrencyPairChapter5.GroupsOfCurrencyPairsChapter6.LongOrShortChapter7.WhatIsPipChapter8.WhatIsSpreadChapter9.MarginAndLeverageChapter10.LotsChapter11.MetaTrader4Chapter12.TypesOfOrdersChapter13.2WaysToTradeTheMarketsChapter14.TradingStylesChapter15.TechnicalAnalysisChapter16.TypesOfChartsChapter17.SupportAndResistanceChapter18.TradingSystemChapter19.TradingJournalChapter20.TradingPlanChapter21.HowToCalculateTheRiskStep2:KnowTheRightMINDSETChapter22.12HabitsOfSuccessfulTraderChapter23.14CommonMistakesToAvoidInYourTradingStep3:FindYourselfATradingMentor

Chapter24.It’sYourTurnToContinueAboutTheAuthor

DEDICATIONIAMDEDICATINGTHISBOOKTOMYFAMILY,FRIENDSANDALLTHEREADERSFOR THEIR PASSION TO ACHIEVE TRADING MASTERY AND GROW IT INTO ABUSINESSANDLIFESTYLE.

INTRODUCTIONIfyouareanything like Iwasmanyyearsago,youmightbestruggling inyourjourney to forex tradingsuccess.Maybeyouwant to learnhowto trade foranextraincome,tradeforaliving,ortradeforabigfund,butyouhavenoideawhattodotogetstarted.

Perhaps,likeme,youreadtheBookRichDadPoorDadwhichchangedyourwayofthinkingandyouthoughtthatsomethingdifferentandbettermustexistthatwouldpermityoutoenjoythislife.

Maybeyouarenotanewtotrading,buthavefailedsomanytimesthatyouarewondering if it′s just you that can’t be successful.Or you are thinking you aredoingsomethingwrongbutyoucan’tidentifywhat.

Ifthisisyou(orifthishasbeenyou),IcantellyouthatI’vebeeninyourshoes.I’vestruggledtogrowmytradingbusiness,readingeverybookorcourseIcouldgetmyhandsonandgettingalltheadviceIcouldfromso-called"experts".Iwaslikea"mushroomintherain".Allthislearningandstudyingleftmeconfusedandunsuccessful with no results. There were so many different paths to tradingsuccess. It seems my ego was big and I believed so-called "experts" whopromisedmeIcanprint"Benjamins"fromtheDayOne.

Heck, I remember early dayswhen I even paid $3000,00 for a kind ofmarket"forecast" software. This I soon realized was just a pure marketing fantasy. Ineededtobehonestwithmyselfandacceptthefact,thatwithoutputtingsometimeandpracticeIwouldnotsucceed.

In today’s tradingworld statistics show that 90%of traders are losingmoneyconsistently.Whatashockingfact!

But there is abook that answers yourburning tradingproblems in anewandeasy to implement way. The Forex Trader’s Handbook has been designed toresolve your trading questions and concerns in a concise and easy to readmanner. This book is for people who suffer from understanding the charts,marketsandtradingmindset.

Experienced or un-experienced traders and many others who struggle withtrading have already experienced great success by implementing the tips andtricksfoundinthishelpfulguide.

Tomeksays:"Definitelyamustreadforeverybeginnerbutalsoadvancedtraders

canrefreshthebasicsofinvesting!"

Tinasays:"It'sverywellwrittenandamustreadforeverybeginner!"

Edwardsays:"ThisEbookhasalottosaythatwillhelpanystrugglingorbrandnewpersonintradingtheForexMarket.Takethetimetoreadthisandactuallyfollowtheadvicegivenbecauseitwaswrittentoactually"HELPYOU"notjusttomake a quick $buck off you. Zan the author is for real if you have questionscontacthimbepatientandwaitforananswer.Showhimthesamecourtesyyouwouldexpect.Hissuccesscanbeyoursuccessifyouwantitandhewilldohisbesttohelpyou."

Marcsays:"Thisbooksucceedsingivingeverynewtraderandfailingtradertheinformation theyneed tobecomesuccessful. It'sagreatpoint tostart to learnabouttheworldofforextrading.IfIhadhadthisbook5yearagoIwouldbeinabetterplacenow.BythewayIalsonoticedZanalsoproducesaweeklyvideoonYoutubeonwhatto lookfor intheweekahead.Againverysimplyexplained. Ikeep thisbook forreferencewhen I trade toremindmeof things I shouldandshouldNOTbedoing."

Silvia says: "Forex trading and the financial worlds has - up until now - beensomethingwhichseemedwaytocomplexandriskytoevergetstartedin.Thisbookwas really eye-opening in that it showhowanyone cangetmakemoneywithforextrading.Yes,therearerisksinvolvedandongoingeffortisrequired-yet by starting small and building knowledge and gaining experience, this cancertainlybesomethingtoprovideanadditionalincomestream.Ifyouhavetheabilitytoputalittle"play"moneyonthesidetoexperiment,Irecommendgivingthisatry."

Patrick says: "Learn about the Forex Trading System as well as other keystrategies anddiscipline to tradewith foreign currency. I enjoyed reading thiseBookbecauseitwasinterspersedwithgraphicsthathelpsthereadergrabandlearntheconcept.ThiseBookisforbeginnersjustlikeinthetitle.WhatyouwilltakeawayfromreadingthisshorteBookisthatanyonecanstartasabeginner.TobesuccessfultheauthorrecommendsyoubestrictinyourdisciplineandusetheruleshesharesintheeBook.IrecommendthiseBookforbeginnersinForexTrading."

Ricksays:"Zan’sguideisagoodgeneralstartertopickupterms,andaquicklookatchartanalysis.Thereisnothingunderthesunthatwillensurea3000pipday.But, read this and youwill knowwith a little practicewhere youmissed it in

eitherthelongortheshortofit.Pickupontipsfromhisexperiencefortriggerpointsthathistoricallyheraldriseorfallinshortterm."

I promise that if you follow the how-to guide below, youwill get 3x asmuchbettertradingresultsasyoudoatyourcurrentleveloftrading.ANDIpromisethatyouwillbeatleasthalf-wayclosertoprofessionalleveloftrading.

Don′tbethepersonwhomissesoutanopportunitiesinlifebecauseyoutaketoolong to learn how to trade themarkets correctly. Be the kind of person otherpeoplemarvelat.Bethekindofpersonotherpeopleseeandsay,"Idon’tknowhowtheydoit."Bethekindofpersonwhotakesactionanddoessoimmediately.

The trading tips and tricks you are about to read have been proven to createpositive,long-lastingresults.Eachchapterwillgiveyounewinsight.Takecontrolofyourliferightnow,makeitsuccessful,andenjoythenewlifeyou′recreating.

3STEPSTOBECOMEAPROFOREXTRADERThis3-StepformulatoBecomeaProForexTraderisexactformulathatIwishedsomeonetoldmewhenIstartedinmyearlydays.IfIwouldfollowthose3stepsrightfrommybeginningIwouldsavemyselfalotoftime,moneyandeffort.

STEP1LEARNTHEBASICS

Asinanyotherareaoflife,whetherinbusinessorsport,youneedtolearnthebasics.Doyourememberwhenyouwereveryyoungandyouwantedtotryoutplayinga footballorbasketball? Inordertounderstand it,andhowit isplayedyouhadtolearnitfirst.Onlyafterthatyoucouldmasterit. It isthesamewithtrading.Learnthebasicsbeforeyou"get-the-right"tobecomeapro.

STEP2KNOWTHERIGHTMINDSET

In order to master the trading business you have to know what are thecharacteristics and habits of unsuccessful and successful traders. What themajorityisdoingwrong,andwhatthebigtraders,playersaredoingright.

STEP3FINDYOURSELFATRADINGMENTOR

You can′tmaster the livemarkets and start trading for a living after youhavereadabookorwatchedavideo.Onlywaytomasterit,isalivetradingunderyourmentor’seyes.

STEP1:LEARNTHEBASICS

CHAPTER1.WHATISFOREXForex(ForeignExchangeMarket)isthemostheavilytradedfinancialmarketinthe world. On each trading day there is for more than 4-5 trillion dollars ofturnover.

Unlikefromsomeothermarkets,wecanmakeprofitsonboth-risingandfallingmarkets.Unlikemostfinancialmarketsthatopenatthemorninghoursandcloseinearlyevening,Forexisopen24hoursperday,exceptontheweekendswhentheworldbanksareclosed.

FOURMAINTRADINGSESSIONS

NewYorkopensat8:00amto5:00pmEST(EDT)

Tokyoopensat7:00pmto4:00amEST(EDT)

Sydneyopensat5:00pmto2:00amEST(EDT)and

Londonopensat3:00amto12:00noonEST(EDT)

THEREAREHOURSWHENTWOSESSIONSOVERLAP:

NewYorkandLondonbetween8:00am—12:00noonEST(EDT)

SydneyandTokyobetween7:00pm—2:00amEST(EDT)and

LondonandTokyobetween3:00am—4:00amEST(EDT)

You are probably asking yourself now, why are Forex Market sessions soimportant...Becausedifferenttradingsessionsaremorevolatilethanothers.Astraderswestrive forpricevolatility,whichmeans thatwe like to tradeduringvolatilehourslikeaLondonandNewYorksession.

Forex is practically openwholeworkingweekwhich doesNOTmean, thatwemustbealways thereand trade itall time. It justmeans thatyoucanbuildupyourtradingbusinessaroundtimezoneofthecountryyouarelivingin.

AndwhatiseventradedonForex?

MONEY.

Forex/ForeignExchangeMarketisveryimportant,becauseitplaysamajorroleindeterminingtheglobalexchangerates.Thismeansthenumberofunitsofonecurrencypair,whichistobeconverted,exchangedtoobtainoneunitofanothercurrency.

PARTICIPANTSOFTHEFOREXMARKET

Banks(CentralsandCommercials)FinancialInstitutionsInsuranceFundsCorporationsTraders/IndividualInvestors

TherearetworeasonsfortheirparticipationonForeignExchangeMarket.Firstis profiting from themovement of currency pairs, and the second, protectionagainstthemajorfluctuationsofcurrencypairsthataffectstradewithservicesandgoods.

CHAPTER2.WHYYOUSHOULDTRADEFOREXBeingatraderisnotonlyaresponsibility,ajob,butitisalsoalifestyle.Anyonewhoisreadytoinvest inhistradinga littlebitoftime,disciplineandpatiencecanachievethat.

To make it clear right from the beginning - trading is not a "get-rich-quick"business,butitisresultofyourprocess,yourwork.Iamtellingyouthatbecausealotofpeoplearethinkingjustaboutmakingsomequickprofits,moneyandithappens, that they ignore the risk and forget the basic rules of their tradingsystem.Ofcourseiftheyevenhaveit!Thatisformethemainreasonwhy90%ofpeople are consistently losing - wish for making a quick profits and over-exposingtheirtradingaccountwithhugerisk.

The goal of every trader is to be a successful by consistently growing theirtrading account with discipline and patience. Because of that, it is veryimportant,thateveryonestartswiththerightdirectionandknowledge.

REASONSWHYYOURSHOULDTRADETHEFOREIGNEXCHANGEMARKET?

HIGHLIQUIDITYWithmorethen4-5trillion$dailyturnoverForexisthebiggestmarket,whichallowingustomovequicklyintooroutofposition/trade.Notasforexample,astockmarketwhereyouhavetowaitfortherightbuyerorsellertobefound.

OPEN24HOURSPERDAY,5DAYSAWEEKwhichmeansthatyoucanadjustyourtradingbusinessbasedonyourfreetimeandthetimezoneofthecountryyouarelivingin.Nice,huh?

ACCESSIBLETOEVERYONEYoucanstartonlywiththe200-300$bigtradingaccount,anditisnot,asforanexample,liketraditionalbusiness,whereyouneedabiginvestment,capitaljusttostart.Ofcoursethose200-300$willnotmakeyourichtrading,butitisenoughtobuildupyourtradingexperiences,getconfidenceandgetusedtotradingonliveaccountandgrowingitupslowly.

WORKISRELAXEDas there isnotmanymain tradingpairs (10-20),whichmeans thatwedonothavetoanalyzefew100productseveryday.

FREEDOMbecauseyoucanperformyourtradingfromanywhereintheworld.Forthat,youonlyneedalaptop/computerandinternetaccess.OneMojitoplease!

TRANSACTIONCOSTSareverylow,negligibleincomparisontoothermarkets.

POSSIBILITYofmakingprofitsonraisingasonfallingmarkets.

As you can see, there are many reasons why being a forex trader rocks. Myfavoritereason,andwhatcaughtmyinterestintradingfromtherightbeginning,is a freedom. Freedom todesign your life on your own terms andhavewholecontrolinyourownhands.Ifyoulikethequotes,likeIdo,Ibetbelowquotewillmakeyouthink.

“IF YOUDON’TDESIGN YOUROWN LIFE PLAN, CHANCESARE YOU’LL FALL INTO SOMEONEELSE’SPLAN.ANDGUESSWHATTHEYHAVEPLANNEDFORYOU?NOTMUCH.”

-JIMROHN

CHAPTER3.ONLY4THINGSYOUNEEDFORYOURFOREXTRADINGWhenyoustartsettingupyourtradingenvironment,fromwhichyouwillbeabletotrade,isimportanttoknowwhatthingsandtoolsyouwillneed.Thesocietyand trading industry is forcingyouwith theallpossibleproductsandservicesthatwillmakeyouhappy,betterandmoresuccessfultrader.Theyaretryingtoconvinceyouthatmoreisbetter.Ihavetodisappointyou.Intradingthelessismore. Less cluttermeans sharper focus onwhat you are doing in the life andmarkets.

Belowfourthingsaretheonlythingsyouneedforyourtradingbusiness.

1)TRADINGACCOUNTATYOURFOREXBROKER/BANKFor those who are not familiar yet with what the forex broker is, that’s anintermediarybetween thenetworksofbanks, that tradeswitheachother, andyou.Thebrokerwillofferyouapriceofacurrencyfromthebanks.

It’s like opening a bank account. It takes aweek or two to open it, and somepaperwork.Besidethetradingaccountmostbrokerswillgiveyouaccesstotheirtradingplatform,fromwhichyouwillbeabletowatchthemarketandtrade.

2)STABLEINTERNETCONNECTIONTobeabletoaccesstoyourtradingsoftware,youwillneedinternetconnection.It really doesn’t matter what type of it. You can use main home routeconnection,home’sWIFIorfreeWIFIfromyourlocalcafe.ThewayItrade-swingtrading-isrelaxed,simpleanddoesn’tcausestress.Heck,itrequiresevenlessthan30minutesaday,soyoucaneasilytradefromyouroldlaptopandfreeWIFI.

3)MINDSET

Trader’smindset is inmyopinionat least80%oftradingsuccess.Dependsonstatistics, thatare showing that less than5% ismakingmoneyconsistently intrading,wecanagreethatprobleminmassismainlyinthemindset.That’soneofthereasonswhyI’mwritingthisbook.Youcanbescaredandsay"Majorityislosingmoney in trading. Iwon’t trade." or that fact canmotivate you to learnwhatthesmallpercentageisdoingrightandriseabovethecrowd.

Everythingisbetweenyouandthemarkets.Youdecideandlearnbypracticingconsistently.Youcanread100sofbooksontrading,youcanjoin10sofseminars,butitwon’thelpyouifyoudon’tworkonyourmindsetbypracticingdisciplineandpatience,understandingthechartsandmarketmoves,applyingtheriskand

moneymanagementrules.

4)COMPUTER/LAPTOPThesedaysyoucan’ttradewithoutowningaPCorlaptop.Itwasdifferenttwentyyearsagowhentherewerenocomputers,chartsandallyouneededwasaphonetocallyourbrokerandsetyourordersonthemarkets.Yes,Iwasn’ttradingyettwentyyearsago,butIknowmyfriendsdidstartbackthenandtoldmehowitwas.Don’twishforthosetimestoarriveagain!Timesluckilychangedandlivingthemobile lifestyle isonreachofanyone’shands.Youcanbite in the freedomcake,travelaroundtheworldwiththelaptopinyourrighthand,connecttothelocalWi-Fiandyouhaveimmediatelyaccesstoyourtradingplatformandeyeonwhat’sgoingonworld’sfinancialmarkets.

Simplicityisyourfriend.AsI’mwritingthis,thereareonlythreefilesrightnowonmydesktop.Trading journal, tradingplatform,andcalculator forcalculatingtheriskoneverytrade.

Personally I trade from the laptop. Nothing else. Please don’t be one of thosetraderswhoare literallyattached to themarkets24/7with their smartphonetradingapplicationintheirlefthand,tabletcomputerintheirrighthand,andatrading computer right in front of them while they listening to CNBC orBloombergTVchannelintheirbackground.Pleasestophere.

You don’t need the most expensive computer, large desk, $2000,00 chair,expensivemonthly-feemarket data... you don’t need to buy tenmonitors likesomedobeforetheyevenlearnonhowtotrade.Myopinionis,ifyouknowwhatyouarelookingononemonitorthat’smorethanenough.PersonallyIwentfromtwoPCs,expensive"forecast"softwareIboughtfor$3000inmyearlydays,andexpensive market data feed, back to the basic PC and broker’s free chartingsoftware.

AsaminimalistIagreewithsaying,themorestuffyouown,themorestuffownsyou.

"LIFEISREALLYSIMPLE,BUTWEINSISTONMAKINGITCOMPLICATED."-CONFUCIUSConfucius was right. As humans we like to over-complicate our life’s withunnecessaryclutterandthingswedon’tactuallyreallyneed.Iwouldrecommendyou to de-own those in order to sharpen your focus on your life’s vision andgoals.Iamminimalistwhenitcomestostuffandclutter,andmaximalistwhenitcomestotheopportunity.Ibelievemoreinproducingratherthanconsuming.

Iturnedmyselfintominimalismaroundthreeyearsago,whenIsaidenoughisenough.Iwasfeelinglikeallthisclutteraroundmewasholdingmebackbeforereachingmyfullpotential.Andtotellyouthetruth,itwasagreatdecision.Youwon’tregretitdoingthesame.

Ifyouearnmore,thatdoesn’tmeanyouhavetospendevenmore.Rathersaveitfor investments, fornecessary things, charitiesand living the life to the fullestwith your close ones. At least 70-80% of the world’s wealthiest people areinvestors.Whatdoesthistellyou?Youcanwork,earn,saveandspend,butyoushouldnot.Youmustwork,earn,saveand invest.Andrepeat.Dosave,save tospend.Save,savetoinvest,andtobuildacash-flowfirst.

Stuffdoesn’tmatter.Experiencesandpeopleyoumeetmatter.

Iwouldencourageyoutodothesameinyourlifeandtrading.Burn,sell,throwaway,donateorwhateveryouwanttodowithunnecessarystuffyoudon’treallyneedinyourlifeandtrading.

CHAPTER4.WHATISCURRENCYPAIRAsIsaidbefore,ForeignExchangeMarketplaysamajorroleindeterminingtheglobal exchange rates. This exchange rates are presented as a currency pairswhich tell us the number of units of one currency pair, which is to beconverted/exchangedtoobtainoneunitofanothercurrency.

Currencypairconsistsfrom2symbolswhereeachsymbolhavealways3letters;first2aretellingusthenameofthecountry,area,andthethirdonethenameofthecurrencythatthatcountryhave.

Currency pair rate (exchange rate) is the value of one currency expressed inanother currency. If the valueofAUD/USD is for ex. 1.1100, thismeans that 1AustralianDollarisworth1.1100ofAmericanDollar.

MAIN (MOST TRADED) CURRENCIES ARE:

CHAPTER5.GROUPSOFCURRENCYPAIRSWeknowsixcurrencypairsgroups.Wewill takea lookoneachof those.FirstgroupisMajorPairs,whosepairscontainAmericanDollarandaremosttraded.

1)MAJORPAIRSEUR/USD

USD/JPY

GBP/USD

USD/CHF

USD/CAD

AUD/USD

NZD/USD

2)EUROPAIRSEUR/CHF

EUR/GBP

EUR/CAD

EUR/AUD

EUR/NZD

3)YENPAIRSEUR/JPY

GBP/JPY

CHF/JPY

CAD/JPY

AUD/JPY

NZD/JPY

4)POUNDPAIRS

GBP/CHF

GBP/AUD

GBP/CAD

GBP/NZD

5)OTHERPAIRSAUD/CHF

AUD/CAD

AUD/NZD

CAD/CHF

NZD/CHF

NZD/CAD

6)EXOTICPAIRSUSD/HKD

USD/SGD

USD/ZAR

USD/THB

USD/MXN

USD/DKK

USD/SEK

USD/NOK

Exotic pairs are less popular, they have lower liquidity and bigger "spread"(differencebetweenbuyingandsellingprice-costoftrading).

YouareprobablyaskingyourselfhowmanyandwhatpairsshouldItrade?

Thatpurelydependsonwhattypeoftraderyouareoryouwanttobe(swing,daytrader, scalper) - do you want to trade on higher timeframes or lowertimeframes,howlongyouholdaposition,howmuchtimedoyouhaveeachday

etc.Tradingstylesareexplainedinoneofthenextchapters.

Ipersonallyanalyzeandtrade28pairs(exceptexoticpairs)anditdoesnottakememorethan20-minutesaday.FrommyexperiencesIwouldrecommendyoutostartwitha4-5pairsandyoucanaddlatelymorepairs.Ofcourse,ifyouwantto!

CHAPTER6.LONGORSHORTForexMarkethasanadvantageoversomeothermarkets,becauseitispossibletocreateaprofitinbothrisingandfallingmarkets.Ifyoulearntotradeinbothmarket directions, you will have more trading opportunities, as if you wouldtradeonlywhenmarketsarerising.

"LONG"->itmeans,thatwearebuyingthemarket,currency

"SHORT"->itmeans,thatwearesellingthemarket,currency

Whatwe are doing as traders is, thatwe are buying one currency and sellingotherone.

Example:

CHAPTER7.WHATISPIPPipstandsforthesmallestshiftincurrencypairquotation.

Example:

Ifthevaluegoesfrom1.0000to1.0001thatmeansthatpricegrownfor1PIP

Ifthevaluegoesfrom1.0000to1.0010thatmeansthatpricegrownfor10PIPS

Ifthevaluegoesfrom1.0000to1.0100thatmeansthatpricegrownfor100PIPS

If thevalue goes from1.0000 to1.1000 thatmeans thatprice grown for1000PIPS

This is only for the information.How-ever there is noneed toworry, becausemostofthetradingplatformshave"PipMeter"-youclickonthechartwiththemouse,moveitandyouwillimmediatelyseethenumberofpips-soyoudonotneedtocountandthink.Ofcourse,alsoeverypricemovementforXpipsmeansX$/€butthatalsoshows-upautomaticallyinyourtradingplatform.Soyoudonotneedtocountthattoo.Thankstothetechnology!

CHAPTER8.WHATISSPREADSpread is thedifferencebetweensellingandbuyingvalueofcurrencypairyoutrade. Mostly all quality brokers, where you open your trading account, havespreadsinaroundthesamerange.Withotherwords-spreadisnegligiblecostoftransactions,trades.

ExampleforAUD/CAD(AustralianDollar/CanadianDollar).Differencebetweensellingandbuyingpriceis4,7pips.

Whenyouare choosingyourbroker, it is very important thatyou look for thespreadsthisbrokerisofferingyouforeachcurrencypair.Iwouldliketosuggestyou tochoose thebroker thathavespreads for themaincurrencypairs in therangefrom0-5pips.

LetmegiveyouasimpleexampleforSwitzerland’sbrokerDukascopy.AsIamwriting this, it′s following average spreads are EUR/USD 0.26pips, GBP/USD0.86pips,AUD/USD0.99pips,USD/CHF1.36pips,GBP/CHF2.80..Asyoucansee,this broker has spreads in the range of between 0-5pips which is veryresponsibleand"low-cost"inthetradingindustry.

Youdonotwanttochoosethebrokersthatareun-regulated,un-known,andwiththehugespreads.

CHAPTER9.MARGINANDLEVERAGEMarginisdepositrequiredtoopenormaintainaposition,trade.Themarginisexpressedin%,typicallyaround0.5%-2%,whichmeansthatifyouwantto,let′ssay,open100,000EURUSD,youneedtohaveatleast€500-2000onyourtradingaccount.

Leveragesimplymeansthatyoucantradehighersumthanthereisyouramountoftradingaccount,whichisusedonlyasamargin.

Ofcoursebiggerleveragemeansalsothatpotentialprofit/lossarebigger,butnoworry-thatiswhywecalculatethemaximumriskoneverytradeandwemakesurewedonotriskmorethan1-2%oftradingaccountontrade,position.

Leverageisalwaysexpressedintheratio1toX.

Example:

Ifsomeonehave1000€worthtradingaccount,andwantstoopenpositionworth100.000unitsofcurrencypair,hewilluseleverageinratio1:100.

If someone have 10.000€ worth trading account, and wants to open positionworth500.000unitsofcurrencypair,hewilluseleverageinratio1:50.

CHAPTER10.LOTSLotisthesizeunityouaretrading.Thereare3typesoflots:

STANDARDLOT=100.000SIZEUNITSMovefor1pip=+/-10$

Movefor10pips=+/-100$

Movefor100pips=+/-1000$

MINILOT=10.000SIZEUNITSMovefor1pip=+/-1$

Movefor10pips=+/-10$

Movefor100pips=+/-100$

MICROLOT=1.000SIZEUNITSMovefor1pip=+/-0.1$

Movefor10pips=+/-1$

Movefor100pips=+/-10$

That of coursedoesnotmean thatwe can trade exactly only 1.000, 10.000or100.000unitsofcurrencypair.Youcantradeasmuchasyoucanbasedontheamountofyourtradingaccountandrisk,whichyoucalculateoneverytrade.Howtocalculateyourriskandpositionsize(lots)isexplainedinthechapter21.

CHAPTER11.METATRADER4MetaTrader4(MT4)isoneofthemostpopulartradingplatformsfortradingandmonitoringthemarkets.Mostbrokersareofferinganoptiontoopenafreedemo,testingaccount,soyouareabletocheckandtestMT4beforeyoueventryitwiththerealmoney.

Everygood forexbrokeroffersMT4tradingplatform. It ispopularbecausewecanmonitorthemarkets,customizethechartsbasedonourneeds,wehavetheimportanttoolsweneedfortechnicalanalysis,tradingissimpleandquick...soeverythingthattoday′straderneedforasuccessfultrading.Iamusingitalsoformyowntradingandchartanalysis.Andthebestofall-it’sfreetoo!

Hereisthescreenshotofhowitlooks.

CHAPTER12.TYPESOFORDERSIn trading we know many different types of orders. Those that are mostimportantandmostbrokersareofferingare:

MARKETorder

LIMITorder

STOPorder

STOP-LOSSorder

TAKE-PROFITorder

Atthesametimeletmetellyou,thatthefirstthreeordersareentryorders.Stop-LossandTake-Profitareordersthatweplacetogetherwiththeoneofourentryorders,andtheyareourexitorders(whenpricegoesinourwayoragainstit).Letmeemphasize,thatyoudonothavetousingallkindofpossibleorders,butonlythosethatfitwithyourtradingsystem-entryandexitrules.

MARKETORDERisanorderforabuyorasellatthebestcurrentpricethatisonthemarket.Withthatorderyouenteronthemarketdirectly,becauseyouwanttogetthebestpricethatiscurrentlypossible.

LIMIT ORDER is an order at which you set the price you want to enter on themarketwithabetterpricefromacurrentprice.Ifyouwanttobuy,youwouldputa limitorderunder thecurrentprice. Ifyouwant tosell,youwouldputa limitorderabovethecurrentprice.

STOPORDERisanorderatwhichyousetthepriceyouwanttoenteronthemarketwithaworsepricefromacurrentprice.Ifyouwanttobuy,youwouldputastoporderoverthecurrentprice.Ifyouwanttosell,youwouldputastoporderbelowthecurrentprice.

STOP-LOSSORDER isanexitorder,when theposition, tradegoesagainstusandprotectsusfrombiggerrisk.WecancalltheStop-LossorderanAPO-AccountProtectionOrder,becauseitactuallyprotectsusfromthebiggerlose.Stop-Lossorder(redline)willautomaticallycloseourposition,whenpricefallsbeloworraiseabovepricelevel.

TAKE-PROFITORDERisalso,asaStop-Lossorder,anexitorder,whenthepositiongoesourway.ThatmeansthatTake-Profitorder(greenline)willautomatically

closeourorderorpartofourpositionwhenitwillbeinprofit.

Thosewhoalreadytradeasweknows,thatweliketosplitthetradeintomorepositionsandthatishowwecanmaximizetheprofitsonwinningtrades.

CHAPTER13.2WAYSTOTRADETHEMARKETSIntradingweknow2mainwaystotradethemarkets:

Fundamentalanalysisand

Technicalanalysis

Fundamentalanalysisaddressestheeconomic,politicalandsocialdata.Traderswho trade using these data estimates the economy of each country, area anddeterminethefuturetrends.

Technicalanalysisisbasedonlyontheanalysisofthecharts,whichconsistofaperiodoftimeandprice.Traderthanbasedonthat,analyzestheproductsthathetradesandthendeterminetheentryandexitarea.

We, traders who trade based on technical analysis, believe that most of thefundamentalevents,data,newsarealreadyintheprice,chart,andwetradeonlybasedonprice.Withtechnicalanalysiswe"study"thetrends.Onchartswearelookingandwaitingforarepetitionintheprice(patterns),sowecanpredictthenextpossibletrendofapricemoveinafuture,ashistoryisrepeatingmostofthetime.

Becausemost of the professional traders, asme too, swear only on technicalanalysis, the next few chapters will be devoted exclusively for yourunderstandingofthetechnicalanalysis.

Sincemostoftheprofessionaltradersasmeswearontechnicalanalysis,thenextfewchapterswillbedevotedforunderstandingthetechnicalanalysis.

CHAPTER14.TRADINGSTYLESIntradingweknowmanystylesoftrading.Mainthreeare:

SCALPINGDAY-TRADINGSWING-TRADING

SCALPINGThose are the traderswho likemore trading action as they are in/out of thepositionsveryquickly.Scalpersareexperienced,fastandtheyknowexactlywhatthey are looking for. Knowing the trading system rules, following them 100%with patience and discipline, and having a lot of confidence in yourself andsystem.

FromthealltradingstylesScalpingrequiresalotoftimeinfrontofthePCandmaybe,duetothis,stressful.

DAY-TRADINGDay traderssit in the frontof theirPC foracouplehoursaday,andwatch fortheirtradingsetups.Ifyouhave2-3hoursaday,fewdaysaweek,thenyoucandothedaytrading,andevencombineitwithaswingtrading.

SWING-TRADINGSwingtraderissomeonewhodonottradeagainstthemaintrend,andlookforatradingsetupsinthedirectionofthemajortrends,sohecankeephistradesopenforalongertime.Swingtraderisusinghighertimeframesforhisentriesandtomanagehistrades.

InmyopinionSwingtradingissimpleand"no-stress"waytotradethemarketsandprofitfromthem.

Why"no-stress"?

Because,wedonothavetositinfrontofthePCforthewholeday,orevennoteveryday, dependsonwhat timeframeyou trade. For swing trading youneedonly10-20minutesaday,soyouhavealotoffreetimeandyoucantradealso,ifyouhavemanyotherobligations.

Ifyoutradeasaswingtrader,youwillnotfindtradeseveryday.Thisisalsothenicethingaboutswingtrading.Withagoodanddetailedchartanalysisyouwill

beabletomakehundredsoreventhousandsofpipspertradeinagoodtrendingmarkets.

FrommytradingexperiencesIswearonlyonswingtradingbecauseitisrelaxedwayoftrading,andIliketoseethebiggerpictureandtradeinthedirectionofthemajortrendsasmajorityofbigtradersandinstitutionsaredoingsotoo.Swingtradingalsohave,frommyexperiences,higheststrikerate(win%)overthelongrun…

CHAPTER15.TECHNICALANALYSISAs Imentioned beforewe are using technical analysis for analyzing the pricemovements over the time. When we learn to read the price action we candetermine themarket trends and based on that determine the entry and exitarea.

Technicalanalysiscanbeusedonanymarket,product.Alotofpeopleismakingamistake here, because they over-complicate and they think theywill read thecharts better and more successfully, with putting a lot of indicators on theircharts.AtthattimetheysimplyforgetforaPrice,whichisalwayscorrectanditwillalwaysshowsustherightmarketdirection.

We, traders who trade based on technical analysis, believe that most of thefundamental events, data, news are already in price, chart, andwe trade onlybasedonprice.Withthehelpoftechnicalanalysiswe"study"thetrends.Onthechartsweare lookingandwaiting for repetition inprice (patterns), sowecanpredictthepossiblenexttrendofpricemovinginfuture,ashistoryisrepeatingmostofthetime.Ofcoursenotraderisalways100%rightintheirdecisions,butwearefollowingourtradingedgetostackasmuchoddsaspossibleinourfavor(confluence).

Howtousepriceanalysistodeterminethemarketdirection?

Itissimple.Youdonotneedanymagicindicatortodeterminemarkettrend.

THREEMARKETDIRECTIONS

UP-TRENDWehaveanuptrendwhenthemarketismakingHigherHighsandHigherLows.

DOWNTREND

WehaveadowntrendwhenthemarketismakingLowerLowsandLowerHighs.

RANGE(WHENTHEREISNOTREND)We have a rangewhenwe do not have any trend. Thatmeans, themarket ismoving between 2 zones - Support and Resistance (17th chapter), and themarketdoesnotcreateHigherHighand/orLowerLow.

Andwhendoweknowthatthetrendhasstartedchangingitsdirection?

Weknowthatwhen thechart starts showingussignsof thepossiblechange -lowerlowinuptrend,higherhighindowntrendandhigherhigh/lowerlowintherange.

CHAPTER16.TYPESOFCHARTSWhatisthechart?Chartsaregenerallyshowingushumanpsychology,becauseallpriceactivitiesthataregoingonthemarkets,canbeplottedonachart.Chartsarebasicallyshowingusthebehaviorofmarketparticipants.

Wereadthechartfromlefttotheright,anditiscomposedfrom2things:TimePeriodandPrice.

Whywehavetoreadthecharts?Because thechartreading isnecessarybasicof the technicalanalysisandonlythatway,wecanunderstandthepricemovementinpastandfuture.

Intradingweknowmanydifferenttypesofthecharts.Wewilltakealookonfourthataremostpopular:

Linechart

Barchart

Candlestickchartand

Heikin-Ashichart

LINECHARTisoneoftheeasiestchartsfortheeye.Itshowsusonlythelast,closedpricesatwhichcurrencypair,productwastraded.Badthingaboutthelinechartisthatshowsusalotoflessinformationthantheothersdo.

BARCHARTisachart,whereeachbarshowsus,representsasingleperiodofpricemovements,timeunit,open,close,higherandlowerpriceofthattradingperiod.IfwechecktheDailychartbelow,eachbarpresentONEtradingday,anditisthesamefortheothertimeframes.

CANDLESTICKCHARTshowsthesameinformationasaBarchart,butitisnicerontheeye,asitshowsusalsoabodyandthecolorwhichtellus,whetherthereweremorebuyers(green)orsellers(red)inthattradingperiod.

HEIKIN-ASHI CHART - is also part ofourtradingmethodandtherefore,Iamusingitalsoformyowntrading.Itlookssimilartothebasiccandlestickchart,butitisalittlebitdifferentinmethodofcalculatingthecandles.

Ifwecompareallfourabovementionedcharts,thedifferenceisobvious.

CHAPTER17.SUPPORTANDRESISTANCESupportandResistancemeansthelevelofdemandandsupply.

Supportonaproductisaleveloftheprice,atwhichonthemarketthereismoredemandoversupply.Thiscausesthatthecurrencypairstopsandincrease.

Resistanceonaproduct isa levelof theprice,atwhichonthemarket there ismoresupplyoverdemand.Thiscausesthatthecurrencypairstopsanddrops.

Asatraderswehavetwotoolsfordrawingsupportandresistancelevelsonthecharts:

Horizontalline(forhorizontallevelofsupportandresistance)Trendline(foratrend,whenwehavehigher/lowerhighs/lows)

ScreenshotfromtradingplatformMetatrader4:

EXAMPLEUPTREND

Whenwe have a higher highs and higher lowswe are drawing support line -connectingthelows.

EXAMPLEDOWNTREND

When we have lower lows and lower highs we are drawing resistance line -connectingthehighs.

EXAMPLERANGEMarket does not create higher high/lower low. We use horizontal line andconnecttheprevioushighsandlows.

Andwhyarethoseareasofthesupportandresistancesoimportant?

Becauseweexpectthereapricebreakoutsandbouncesduethelargesumsandnumber of orders there.Why? Becausemost of the professional traders, whotrade for funds, banks, countries are looking for the areas of support andresistance, and then they are enteringon those areas in andout of the tradeswithalargesumsofcapital.

Whenwe expect bigger price breakouts or bounceswe have to be focus, andwatchforourtradingsetups,entries.Andthatiswherethetradingsystem,edgeisveryimportant!

CHAPTER18.TRADINGSYSTEMTradingsystem,strategyisoneofthe3keyfactorswhichconstituteasuccessfultrader,whomustmasterapowerfultradingsystem.Why?Becauseheisaware,thathecantradesuccessfullyonly,ifheknowsexactlywhattolookonthechartsandhowtomanageaposition,whenitmovesinhiswayoragainstit.

WITHTHETRADINGSYSTEMYOUWANTTOACHIEVETHEFOLLOWING:TosimplifythechartanalysisTominimizethelossesandmaximizetheprofitsandTominimizethetradingwithemotions(togrowyoudisciplineandpatience)

THETRADINGSYSTEMSHOULDBECLEARLYCOMPOSEDFROMTHEFIVETHINGS:WhentoenterWhentoexitWhentotakeaprofitsWheretoplaceaStopWhentowait

OneofthebiggestproblemIwasdoinginmyearlydaysandunsuccessfultradersaremakingisthattheyarealwayschangingtheirtradingsystem;theyhave1-2unsuccessfultrades,andtheyarealreadylookingfora"better"and"better"and"better"tradingsystem...andtheproblemisintheirtradingpsychology,mindset,because they blame everything on the trading system. It comes to that theybecome a confused, they do not have the right information, knowledge, theycomplicate,andtheydonotmakeanystepfurthertosuccessfulresults.

It is a fact, thatno tradingstrategywill giveus100%winning trades.Andnotbecauseourtradingsystemisbadorsomething,butbecausethemarketwilldowhatitwantsandwheneveritwants.

That is whywe need to stick to one good, powerful trading system, which iscomposedfromthefiveabovementionedthings,andsimplyjusttradetogrowyourconfidenceandimproveyourdisciplineandpatience.

IFYOUARENOTYETFAMILIARWITHMYTRADING–ITISCOMPOSEDFROMALLFIVETHINGSANDISBASEDON:

FastidentificationoftrendsandrangesFiltrationsofuselesspricemovements,and

StrictandclearEntry,ExitandMoneyManagementRules

CHAPTER19.TRADINGJOURNALTradingjournalisyourpersonaldocumentwhichhelpsyoutomoveyourtradingon a higher level with the results you want to achieve. If you want to be aprofessionalandenjoylifethetradingisoffering,thenatradingjournalisyourmust-tool.Tradingjournalcanturnanaveragetraderintoverysuccessfulone.

OftenIseemanyofnewtraderswhosimplydonotuseitintheirowntrading.Inmyexperiencethereisaconnectionbetweenmanysuccessfultradersandawell-documentedtradingjournal.

Why?

Atradingjournalisyourpersonaldocumentofyourtrades.Itisatruerecordofyoursuccessand failuresandpermitsyou torevisit the tradesand learn fromthem.Youneed todevelop adisciplined approach towards your trading and ajournalisnotgoodforyouifyouarenotconsistentandyouuseitforeverytradeyoutake.Sothatyoucanlearnfromyourownmistakesandsee,whatisgivingyoutheresultsyouwant.Asatraderyouhavetofocusonyourselfandyourowntrading!

Allsuccessfultradersstartedsomewhere...Theywantedtobecomeoneofthosewhoaretheytoday.Theywantedtobealeaderoftheirowntrading.Theywantedtochangetheirbadresultsintoconsistent,profitableones.

Andhowdidtheyachievethat?

Bylearningagoodtradingsystem,bylearningfromaalreadysuccessfultrader,mentor,theytradedwithdiscipline,patienceandbylearningfromtheirmistakesandtrades.

It is the same for example in sport. They have trainings, matches, they arelearningfromthem, improvethemselves,doingwhat isworkingbest for them,andgetridofeverythingelse.

Howyoucanmakeyourselfatradingjournal?

Asyouwant!WhatIamdoingpersonallyisthatforeveryentrychartImakeascreenshot and paste it into Microsoft Office Power Point program, add acommentary,andlatelypastealsoachartfromtheendresult,managementofthetradeetc…

Itdoesnottakemorethanaminute,solazinessshouldnotbeanexcuse!

CHAPTER20.TRADINGPLANBeside the trading journal, trading plan is a secondmost important tool for atrader. As there are rules for employees in companies, it is the same here.Trading is your personal private business. That means you have to createyourselfyourownpersonal tradingplanandfollowit -youcan’t justchange iteveryday.

Tradingplanshouldbeasimpleandclearwiththeimportantinformationonly.Alotof traderscomplicateandtheymaketenpages longtradingplans,andtheysimplycannotfollowit.Thatiswhyyourtradingplanshouldnotbemorethanone,twopageslong.

THEMOSTIMPORTANTTHINGSYOUMUSTINCLUDEINYOURTRADINGPLANARE:DailytradingroutineEntryrulesExitrulesMoneyManagementrulesYourtradingstyleMarkets/pairsyouwilltrade(personalrules/notes)ex."Followmytr.rules"or"Tradewithatrend"...

Becauseyoucansay"Thatisthebesttradingsystemanditisperfect",butifyoudonotfollowyourtradingplanandyoudonottradetheallsetupsbasedonyourtradingplan,itcanstillbeafailure.

ITISNOTAMISTAKEFROMBROKER,MARKETORTRADINGSYSTEM,BUTTHATYOUCAN′TFOLLOWYOUROWNTRADINGPLAN.Thatmeansyouhavetoplanyouractions,yourtradingstyle,yourtime,routine,markets youwill trade,... Tradingplan is yourownpersonalbusinessplanandyourdailyguidetotradingsuccess!Somakeitandfollowit100%.

CHAPTER21.HOWTOCALCULATETHERISKAstraders,weneverthinkaboutplacing,enteringinthetradewithoutknowingwheretoplaceourStop-Lossorder,whichprotectsus frombiggerrisk incasethe market wants to go against us. Successful traders are only those, whosuccessfully manage their trading risk. On the first place, a trader wants toprotecthismoneyandthenminimizethelossesandmaximizehisprofits.

Managing the risk is in my opinion one of the key factors for growing yourtradingaccount.Assomeonealreadytoldinpast:

"ITDOESNOTMATTERIFYOUHAVERIGHTORNOT,BUTHOWMUCHYOUMAKEWHENYOUARERIGHTANDHOWMUCHYOULOSEWHENYOUAREWRONG."InmyopiniontheMoneyManagementmakesatradinglessstressfulanditisalsoadifferencebetweensuccessandfailure.Thatiswhycalculatingtheriskoneverytradeisacrucial!

Iamusingthiscalculator.Itisverysimpletouse.

Incaseyoudonotknowhowtouseit,contactmeandIwillhelpyou.

STEP2:KNOWTHERIGHTMINDSET

CHAPTER22.12HABITSOFSUCCESSFULTRADERStatisticsshowthataround90%oftradersarelosingmoneyconsistently.Whichmeans they are missing or not trading consistently with the right tradingmethod,moneymanagementand/ormindset.

Youhavetoaskyourselfwhatatopfewpercentageoftradersaredoingrightanddifferently fromthecrowd.Donotdowhat themajority isdoing,butwhat theeliteandbigtradersaredoing.

You do not become a successful trader over the night, but with a consistentdiscipline,patienceandpracticetogetthenecessaryexperiences.

Successfultradingisinmyopiniontheresultofthreefactors:

Theresultofpracticingtheallthreefactorsisasuccessfultraderwithconsistentprofits.

HABITSOFSUCCESSFULTRADERARE:

To become a successful trader you must master one strong tradingstrategy,whichcomeswithastrictentryandexitrules.Onmarketsyoucanonlysurviveandsucceed,ifyouknowexactlywhatyouarelookingonthechartsandhowdoyoumanageaposition,whenitgoesyourwayoragainstit.

Tradingsystemisyourdailyguideforsuccess.Tradingsystemrulesprotectsus from bigger mistakes, which can destroy our confidence and tradingaccount.

ACTIONSTEP:MASTERONESTRONGTRADINGSTRATEGY.MAKEYOUROWN(TAKESALOTOFTIME)ORFINDYOURSELFATRADINGMENTORTOTEACHYOUTHEONEHEISUSING.

Tobecomeasuccessfultraderyoumusthaveandfollowyourtradingplan.Beforeyoueven thinkofplacinganyorderson themarket, youhave toknowwhat products youwill trade, howmuch youwill risk on a trade,whatisyourdailytradingroutine,howyouwillmanagethetradeetc.

ACTIONSTEP:CREATEYOURSELFATRADINGPLANANDSTARTFOLLOWINGITFROMTODAY!

Tobecomeasuccessfultraderyoumustmanagingtheriskoneverytrade.WithoutexcusesalwayscalculatetheriskandplaceyourStop-Lossorderbecause we know Stop-Loss actually protects you from bigger lose. Iexplainedthetypeoftheordersinoneofthechaptersabove,buttomakeitclearrightnow:WeplaceStop-Lossorderwhenweenterinthetrade.Itis the difference between your entry and exit price, if your tradingpositionmovesagainstyou.

ACTIONSTEP:STARTMANAGINGTHERISKONYOUREVERYNEXTTRADEANDALWAYSPLACEYOURSTOP-LOSSORDER.

Tobecomeasuccessful traderyouwant toprotectyourmoney, tradingcapitalfirst,andminimizeyourlossesandmaximizeyourprofitsonlongterm.Asa successful traderyouplanyour trading for+10-20yearsandwithoutstrongMoneyManagementyouwillnotsurvivesolong.

StrongMoneyManagement in combinationwith some strong entry andexit rules are inmyopinion crucial for consistent growof your tradingaccount.

ACTIONSTEP:MAKESUREYOURTRADINGSTRATEGYHAVESTRONGMONEY

MANAGEMENTRULES!Tobecomeasuccessfultraderyoumuststartusingandenteringbasedonhigh-time frames. It does not matter what type of the trader you are.Beforeyouevenopenanyposition is important, thatyouusehigh-timeframes to recognize the direction of major trend and important priceareas.Incasethatthoseareconfirmingbiggermove,youwanttoleaveapartofyourpositionopenforalongertime.

ACTIONSTEP:APPLYTHEHIGHERTIMEFRAMESTOYOUROWNTRADINGTOSEETHEBIGPICTUREOFTHEMARKETS.

Tobecomeasuccessful traderyoumust focuson thechartsand ignoreanalyzingandlisteningtothenews.

ACTIONSTEP:START FOCUSINGONLYONTHE CHARTS. YOUWILLBEAMAZED YOUCANDOYOURTRADINGWITHOUTWORRYINGABOUTTHENEWS.

To become a successful trader you must start believing in yourself, intrading system, youmust be confident and always trade only based onyourowndecisions.Stickonly toyour tradingsystemrulesand tradingplan. Admit that trading is your personal business and take 100%responsibilityforallofyouractions.

ACTIONSTEP:TAKERESPONSIBILITYANDTAKEACTION.Tobecomeasuccessfultraderyoumusthaveatradingjournalwhereyourecordeverytrade,soyoucanlookandanalyzeyourtradesinfuture,learnfromthemandimproveyourtrading.

ACTIONSTEP:STARTUSINGATRADINGJOURNAL!Tobecomeasuccessfultraderyoumustbeorganized,simple,relaxedandalsohaveotherhobbiesandactivities.Understandthatyoudonothavethe control over the markets. Everything you can do is to analyze thecharts, check them few times a day, wait for a possible trading setup,opportunityandthenenter/exitbasedonyourtradingsystemandplan.

ACTION STEP: START BEING RELAXED AND ORGANIZE YOUR TRADING! HAVE ALSOOTHERINTERESTSINLIFE.

Tobecomeasuccessfultraderyoumusthaveapositiveoutlookonyourlifeandtrading,youmustsetyourselfgoalsandtryingtoachievethemnomatterwhatothersaresayingorthinking.

ACTIONSTEP:DONOTLISTENTOTHECROWD.SETBIGGOALSANDWORKONTHEMEVERYDAMNDAY!

Tobecomeasuccessful traderyoumustapplyminimalisticapproach ineveryareaofyourtradingandlife.Keepthingsasminimalisticaspossibleto keep your environment de-cluttered, your mind sharp and focused,spendminimumtimethinkingaboutyournextmoveonthemarkets,and

notworkharderasatraderbutsmarter.

ACTIONSTEP:REMOVEEVERYUN-NECESSARYCLUTTERYOUDONOTNEED INYOURTRADINGANDLIFE.

To become a successful trader youmust start practicing discipline andpatiencedayafterday,weekafterweek,becauseyouknowthatthosetwofactorsaredeterminingwhetheryouwillbesuccessfulorunsuccessfulonlongterm.

ACTIONSTEP:PRACTICEDISCIPLINEANDPATIENCEWHENYOUTRADE.

CHAPTER23.14COMMONMISTAKESTOAVOIDINYOURTRADINGInthatchapter Iwrotemostcommonfourteenmistakesmadebyunsuccessfultrader,frommyexperiencesasatraderandmentor.

1. Don′tthinktradingisabusinesswhereyougetrichoverthenight.Withthinking like that you have an extra pressure, forget on your tradingsystem rules and you start tradingwith the realmoney fromday one,withoutunderstandingthemarketsandwithover-exposingyourtradingaccount.

2. Don′t forget tomanageyour tradingasabusiness.Don′t setgoals that

are too lowand justwant tomake "quick, fast small profits".Organizeyour trading, set big and achievable goals for yourself and plan yourtradingforanextfewmonths,yearsfurther. Raise your standards, multiply your current goals by 10 times, take amassiveactionandreallygo,dobigandleaveyourmark. Youcanbeanailswhowhine,complain,don’ttakearesponsibilityandblametheothersfortheirun-success.Oryoucanbeahammerwhogooutandtakeswhatisforhim,whotakesamassiveactionandmakesahugesuccessfromwhatheisdoing.Thatistheonlythingthatcountsintoday′s economy. Who for you is the inspiration, the role model youwould strive for, and the story to admire? The person who have lowstandards, living the life in the comfort zone, living from paycheck topaycheckafterhegraduated from the college, becauseparents, friendssaid so to do so, and finished it with A4 format white piece of paperwhichwillnothelphimintoday’seconomy...Orthe"hammer"whohaveahugegoals,takesamassiveactioneveryday,walkthetalk,dropped-outfrom the college to pursue his trading business, became so good at it,thathestartedtradingandmanaginga$100millionfund. Firstexampleiswhatthemajorityisdoing.That’sthereasonwhythetopis so lonely. Change the mindset from the poor to the wealthy. Fromconsumingtoproducing.Fromspendingtoinvesting.Doyourbesteveryday,dothebuilding,haveafullcontrolofwhatyouaredoing,andusethecash-flowtobuildyourfuture-invest,reinvestandgrow.

3. Don′talwaysblamethemarkets,brokersand/oryourtradingstrategy.Beamanandtakeafull100%responsibility.Beahammer.

4. Don′tfindtheexcusestonotplaceaStop-Lossorder(AccountProtection

Order!).

5. Ratherthanalwaystradingbasedonsomeone′s tradingsignals,media,crowd,listenonlytoyourself.Unsuccessfultradersareinmyopinionthefollowers, not the leaders. They do not focus on themselves and theirtrading,butonwhatacrowdissaying,thinkinganddoing.

6. Unsuccessful traders focus on excuses. Start focusing on your success

please!Excusesareresponsiblefor"99-percenters". 7. Dayafterdaytheydonotpracticedisciplineandpatience.

8. Ifyouwant tochangeyour tradingresults,don′t look fora free-advice,

tipsonuseless forums,booksandotherwrong sourcesof informationwherethecrowdis.Ulessyouwanttotradelikemajority!

9. Theydonotmasterthepowerfultradingsystemtounderstandtheprice

movementandmarkets. 10. Theytradewithoutatradingplanandtradingjournal.Ifyoudonotknow

howtomakeboth,feelfreetocontactmeandIwillhelpyouwithit. 11. Theydonotmanagetheirrisk.Theyjust"trade",gambleandhopethat

themarketwillmove in their direction. StrongMoneyManagement isunfamiliartothem.

12. Don′t changeand jump fromone tradingsystemtoanother,withhope

thatyouwillfindatradingstrategywith100%winningtrades.Yes,that’swhatthecrowdisdoing.

13. Without real reason don′t over-think about your trading (business!).

Thatishowyoubecometheworstenemytoyourself! 14. Whenthepositionisgoingtheirwayoragainstthem,theydonotknow

howtomanageitcorrectlytominimizetheirlossesandmaximizetheirprofitsonwinningtrades!

STEP3:FINDYOURSELFATRADINGMENTOR

CHAPTER24.IT’SYOURTURNTOCONTINUETURNYOURTRADINGINTOLIFESTYLEANDBUSINESSYOUDESERVE

Whatdoesthis"1%/99%"triangletellingus? It tellingusthatonly the1%of theworld′spopulationat the top, isdoing theright things correctly, and "99-percenters" should start doingthosetocomefromdownthere.

In order to help You feel free to contact me to book free10minute strategic call. My purpose is to help you and turnevery struggling, inconsistent, unsuccessful trader into successful trader withconsistent profit, and to build your trading lifestyle and business from thebottom.

Ifyouwanttobecomeasuccessfultrader,fund-managerandlivefromtradinglikeIdo, it is logicalthatisimpossiblewithoutunderstandingthemarketsandmovementsonlivechartsandinrealconditions!

Tradingisenjoyingonlyifyoudoitcorrectly!Withtherighttoolsandwiththerightmindset...

Andwhysomepeoplesucceedandsomenot?

Everythingdependsonthemindset,tradingsystemtheyareusingandhowtheymanagewiththeirtradesandemotions.

Iknowitisverybigproblem,thatmostofthetradersdonothaveappropriatetrainingtoachievebeforementioned,andthatisnotsomethingtheycanlearnfromalotofuselessbooks,orfromfreeadvicesonforumsandwebsites.

I′mtellingyouthatbecauseIwasdoingthattoo,whenIstarted8-yearsago,andtotellyouthetruthyoudonotmakeanyhugeprocesstowardsasuccessfulandprofessionaltrading.

Only way someone can control himself and his trading is with continuoustrainingandlivetradingsessions,fromtraderswhoactuallyaremakingalivingfromtrading.

IfyouwanttobecomeasuccessfultraderandenjoythetradinglifestylelikeIandmanyothersdo,feelfreetocontactmeandbookFREE10-MinuteStrategiccall

onskype.

ABOUTTHEAUTHOR

Iamfull-timecurrencytrader,tradingmentor,founderofKOTNIKZAN.COMandtheauthorofTheForexTrader′sHandbook.Learnmoreaboutmehere.

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