Forex Trading System Secrets pptx

Table of ContentsChapter One An Introduction To Forex Chapter Two The History of Forex Chapter Three Forex Today Chapter Four Understanding Currency Conversion Chapter Five The Candles

Forex Trading System Secrets

Copyright2012 – Miroslav Brezinsky Limits of Liability / Disclaimer of Warranty:

The author of this information and the accompanying materials has used his best efforts in preparing this course The author makes no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents

of this course He disclaims any warranties (expressed or implied), merchantability, or fitness for any particular purpose The author shall in no event be held liable for any loss or other

damages, including but not limited to special, incidental, consequential, or other damages.

This manual contains information protected under International Federal Copyright laws and Treaties Any unauthorized reprint

or use of this material is strictly prohibited We actively search for copyright infringement and you will be prosecuted.

Table of Contents

Chapter One An Introduction To Forex

Chapter Two The History of Forex

Chapter Three Forex Today

Chapter Four Understanding Currency

Conversion

Chapter Five The Candlestick Chart

Chapter Six Understanding Market Trends Chapter Seven Forex Volatility And Market Expectation

Chapter Eight Your Forex Future

Chapter One – An Introduction To

Forex

Of all the methods and systems for making money online, perhaps none is as popular and widespread as "Forex." Forex refers to the trading of International currencies and making

a profit from the difference in the respective exchange rates The word "Forex" is a combination and contraction of two words "foreign" and "exchange."

The old saying, "Where there's smoke, there's fire" is

especially applicable to Forex currency trading Because

there is a lot both Every day millons of trades are conducted

on the only truly Global unrestricted financial market

Owing to the fact that Forex profits are derived from the

difference in the exchange rates between the currencies of countries, there is no "central authority" governing the Forex market Because of this, it's very difficult to manipulate the Forex market In comparison to the stock market, which can

be, and is regularly manipulated by the most powerful

investors

The amount of money exchanged every day with Forex

trades are truly staggering Anywhere between 1 trillion and 1.5 trillon U.S dollars An astronomical amount, to be sure Seemingly daunting to the non-expert wanting to participate But the good news is, you can get a piece of the '"Forex Pie" with no risk Owing to the fact that many Online Forex

brokers offer a practice account Usually with $10,000 or so

to get up to speed

This will allow you to “get your feet wet” without risking

drowning!

Chapter Two – The History of Forex

While even non-traders are familiar with the term “Forex” it's likely you don't know that the Forex market is an indirect result of the Vietnam war For the lowdown we go back

through the mists of time to 1971 The Place: Bretton

Woods, Nova Scotia, Canada

The United States proposes to the other Major Nations of the World that they tie the value of their currencies to the (then) mighty U.S dollar Which was mighty because it was backed

by Gold In other words, the U.S treasury did not(then)

print more money than it's equivalent in Fort Knox

The other Nations agreed But soon, as often happens with positive agreements, the Bretton Woods Agreement went South The reason: the Vietnam war Saddled with an

enormous war spending debt, a man named Nixon took the U.S off the gold standard, and the Government printing

office(treasury division) went into overdrive

Printing money like there was no tommorrow What there was - was, predictably - Massive inflation Which caused the other signatory nations to the Bretton Woods Agreement, to

wave it, and the "mighty" U.S dollar a big, and definite "bye bye."

This was the beginning of the Forex market, as the World's other countries began establishing values for their currencies based on National economic conditions The obvious

consequence was a difference in the value of one countries currency, relative to another Thus the phrase "exchange rate" entered our language Followed Swiftly by "Foreign Exchange." Which, even more swiftly, was shortened to

"Forex."

These “early days” of Forex trading were more complicated Due to the number of players on the European market, and the mind-numbing number of respective currencies At that time you had the franc,the pound, the lira and countless others to contend with

However this situation was improved in 1992 with the

emergence of the European Union, which established the Euro in 1999 as the currency of record across all of Europe With the exception of Britian, still clinging to it's pound

sterling

Chapter Three – Forex Today

With this simplification of the currency conversion process, the “landscape” of the Forex market became more easily travelled Now, the main countries trade in five currencies: U.S dollars, Australian dollars, British pounds sterling, the Euro, and the Japanese Yen

As you would expect from looking at these currencies, the major players include the majority of the European nations, the United States and the Asian markets Japan is

particularly present here And Australia has also joined the Forex foray

Chapter 4: Understanding

Currency Conversion

Like any new business venture, you'll need to begin with a basic understanding of how it works With Forex this means noting the values of different currencies and studying

domestic market trends as well as foreign ones This will give you the basic prepartion necessary to understand and act in the area of currency conversion, which is the “bottom line” in Forex trading

Working With Multiple Currencies

Now that you are “armed” with a basic understanding of

currency conversion and market trends, your next task will

be to get a basic idea of current rates of currency exchange Happily, this is not difficult And more good news – it's free

You'll find more sources than you can possibly use on the internet Comparing this information should give you a fairly accurate “baseline” from which to operate

Forex-Speak

Like any specialized profession, Forex has a language all it's own One of it's most unique and amusing words is the “pip.” Not, as you might imagine, referring to the seeds of an apple

or lemon!

In Forex trading a “pip” is the smallest fraction, or decimal,

in which a currency can be traded The U.S dollar is often expressed to the hundredth of a cent (the fourth decimal place)

Another commonplace word that has a different and unique meaning in the “Forex Language” is “yard.” As you might expect, it doesn't refer to that expense of grass behind your

house where your lawn chair resides In “Forex-Speak” -

“yard” refers to the quantity of currency as opposed to it's value and is equivalent to one million units of the currency in question So, while a “yard” of Euros and a “yard” of Yen are the same quantity, there is no equivalent value between the two

Forex Trending

Getting into the Forex Market is a lot like a sailboat trip The night before the voyage, you check the weather forecast Look at the barometer Note the condition of the sea Pour over your charts Check the boat to make sure everything's watertight And, above all, that you have life preservers

It's the same with Forex Except, sadly, there are no life

preservers! So you'll want to make doubly certain your

preparations are the best they can be Or it is your wallet – not your life that will feel the pain!

Like your sailboat trip, you'll want to pour over charts But of course they won't be the nautical variety Solid information from experts is what you need And it's easily obtained

Informed opinion in newspaper financial pages; listening to and comparing the advice of market analysts will prepare you for your “Maiden Forex Voyage.”

This “financial intelligence” will help you track marketing trends and make educated predictions about where the

market may be headed Giving you the ability to decide

when to buy and when to sell

Chapter Five – The Candlestick Chart

One of the most useful “weapons” in your Forex info arsenal

is something known as a “Candlestick Chart”.These charts are basically a combination of a line graph and a bar graph that show the trend of various stocks, indexes, or other

interests over a specified period of time

This will easily allow you to determine if a stock is up or

down, when the last major change in it's journey occurred, and how long it's likely it's present path will continue

Not only will the Candlestick Chart give you current

information, but with it you will also be able to research

commodities, prices and market trends for years past This

“historical data” will enable you to see “the big picture” with regard to whatever the object of your search may be

The Candlestick Chart will help to answer your questions and concerns, and help to determine if it's a good idea to

postpone your action on a particular possibility until the

market takes an upswing, or whether it's better for you to act now

Chapter Six- Understanding Market

Trends

Like the stock market, the Forex market is also affected by rumours, innuendo, and, of course politics A rumour that a large company is in financial difficulty can send it's shares on

a one way trip to the basement Creating an opportunity as it's share prices plummet

Also, when countries have a downturn in their ecomonies, the resulting depression and inflation will create a

devaluation of it's currency

Wars and natural disasters can, and frequently do, produce similair effects

Bottom Line : If you don't already act from the boy scout motto: “be prepared” - now is the time to get with that

program!

By paying attention to World events, social trends, and, yes, rumours, you'll be “prepared” for currency fluctuations and

be ready to profit from them

Chapter Seven : Forex Volatility and

Market Expectation

Given that the tendency for fluctuation is much stronger – and often occurs faster - in the Forex market than on the stock market, what can you do to prepare for this

eventuality?

The short, and honest answer, is to understand , as precisely

as possible, the reason for the flucuation This will enable you, armed with your research of current and past trends, to make an informed action decision

There are two principal causes for the volatility of the Forex Market The first, and most obvious, is a deliberate currency devaluation by a Government You may recall Russia

attempted this in 1998 - announcing that they intended to

devalue the ruble The obvious consequence was that

hearing this news, the Russian people rushed to their banks And in one day the ruble fell by 25% Bad news for the

Russian economy But good news for Forex traders who had their fingers on the pulse of World events

The second, and usually most unpredictable variable in

currency exchange rates is the interaction of the currencies themselves For example, a currency with a history of great stability may, inexplicably experience devaluation There could be any number of reasons But none of them matter The end result – the downturn – is what you'll have to deal with

Again – be a boy scout - “be prepared!” This is your best, and only “antidode” to “market fluctation fever!” Yes, it will take experience Not to mention a certain amount of

“intestinal fortitude.” You must act, when it is time, in your best judgement to act

Don't second guess yourself Just do it! Yes, sometimes

you'll be unsuccessful Sometimes you'll make a bad call But the more action you take, the more success you'll have in the long term Isn't that so with anything?

Bottom Line : Constantly changing currency conversion rates and market volatility ensure that there will be no certainties

on any given day in the Forex Market If you're good with that (and do your homework – daily) Forex will be good for you

Chapter Eight – Your Forex Future

While it"s true that enormous returns are possible with

Forex, (Ask Warren Buffet or George Soros) they are usually the result of enormous and long term investments by

extremely experienced traders (Think Warren Buffet and George Soros.) If you're not in the billionaire/millionaire class, the cold shower of reality is that your returns will be relative to your investment And if your idea of a Forex

investment is less than three digits, frankly you'd be better off buying a lottery ticket

Bottom line: There is no “free lunch.” But there is a real, honest and accessible opportunity to make money online, wherever you choose, with Forex Currency Trading

More GOOD NEWS!

To aid novice traders gaining knowledge and experience, most Online Forex Brokers offer a practice account This enables new traders to familiarize themselves with the

system, trading "virtual practice money" and not their life savings

Then, when they're ready to start trading with their own

money, they'll have (at least) a basic understanding of what works and what doesn't Allowing them to begin their trading careers with confidence borne of experience

Special Bonus:

Discover how to build a sustainable FOREX business online that generates income for you each month This is NOT a scam or a

"get rich quick" program This is a the method I use myself

http://signup2text.com/recommendsET

Forex Resources:

All of the following can be of value, depending on HOW you

choose to trade: