Forex Trading for Beginners in 15 Minutes

1
FOREX TRADING
in 15 minutes
VOL II
BEST FOR BEGINNERS
2
30 days after you read this e-book, your friends
will notice your success!
If you want lots of theory and complicated
analysis, you picked up the wrong e-book!
You don't need another classic, boring
"learning material". What you need are
easy-to-apply strategies and ready-to-use
tools to help you become a better trader
faster. About this e-book
The popularity of the Forex Basics Secrets in
15 Minutes e-book has encouraged us to
create a second upgraded edition. We
received a lot of great feedback about the
?rst e-book (thank you!) and we hope that
everyone will enjoy the new strategies in
this second edition.
Gone are the days when you have to have
thousands of dollars to participate in the
Forex market. Now, you can start trading with as
little as 100! You can also forget about
spending years reading piles of brain-busting
books on economic analysis. We have gathered and
?ltered the most pertinent information and
strategies that will let you make money.
This e-book will help you learn Forex trading
skills in the fastest time possible! It doesn't
matter so much what education and background you
have. Our program has shown interesting results
people with no previous ?nancial market
experience often delivered better performance
than those with the experience! Watch the TV
series Million-Dollar Trader and this fact is
con?rmed as well.
With Forex, you can be free. You can live and
work anywhere in the world, be free from the
routine, and not answer to anybody!
Trading involves risk. Leveraged trading has
large potential rewards, but also large
potential of risk. Be aware and accept
this risk before trading.
3
forex market at a glance
Make money even in times of crisis While the
stock market and commercial bank deposits are in
deep depression during the crisis, Forex pro?ts,
because any change in currency can be used
to make pro?t. A falling market is as
pro?table for Forex trading as a developing
one. Work while lying in a hammock All you need
to start making money is a computer or a smart
phone and an Internet connection. Your work
space and goals are up to you!
Start with 100 Unlike other ?nance markets,
Forex doesnt require big savings for you
to take part. You can have signi?cant
results by starting with just 100 - 200.
100 Easy rules
Unlike the stock market with tens of thousands of
di erent shares, Forex works with 8 basic
currencies, which are the center of most
trades. Moreover, there are signi?cantly less
factors that in?uence currency exchange rates
than in the stock market.
Take your money whenever you want A 50 billion
market isnt just a miraculously beautiful
number it is also what ensures that you
can sell or buy any amount of currency you
wish at any moment.
4
breaking the biggest forex myth
We strongly advice you to avoid all resources
that tell you Forex market is a fairy-tale place
where you can trade 24/7! The timing in
forex trading is crucial!
then purchase currencies from di erent
continents. The Forex market of London is usually
the most active as it involves many
countries of the European Union. The US
market comes next, so the time when the London
session intersects with the US session usually
provides the biggest returns. Expert traders
consider 10 AM to be the best time as this is the
period when the London market is preparing to
close the trades and traders are getting
ready to move to US market. This creates big
swings in currency prices thus opening great
opportunities for pro?t.
The Forex market is open 24 hours a day, but it
is not active all this time! In Forex trading
money is made when the market is active (when
traders are bidding on the prices) so it is
crucial for you to learn about the most
productive hours of the day and of the week for
trading the forex!
There are three major trading sessions of the
Forex market London, US and Tokyo session. The
busiest times are when the sessions overlap as
traders can
EST time
0100
0200
0400
0500
0600
0700
1200
1300
1400
1500
1600
1700
1800
1900
2000
2100
2200
2300
2400
THE BEST TIME OF THE WEEK TO TRADE
FOREX According to research, the biggest
movement in the four major currency pairs
(EUR/USD, GBP/USD, USD/JPY, USD/CHF) is observed
on Tuesdays and Wednesdays. Fridays are busy as
well, but only until 1200 PM and during the
second half of the day the movements can be very
unpredictable. Best time
MON
THU
FRI
5
forex glossary
Forex is an international currency market with
daily deals worth 4 billion.
exchange
foreign
The most common currency pairs
USD/CHF EUR/JPY USD/CAD
EUR/USD GBP/USD USD/JPY
The trade in Forex occurs between two
currencies, because one currency is being bought
and another sold at the same time.
EUR/USD
28
EUR/USD
Base
Quote Currency
Currency
TOP PAIR
1/3 deals
of all
EUR/USD
Point (Pip) The fourth unit after the
decimal point, which is the smallest unit
of an exchange rate.
Selling price (Bid)
Buying price (Ask)
1.3001
1.3000
spread
Spread The di erence between the sell quote
and the buy quote (in pips).
point
The smaller the spread,
the more liquid the currency!
6
What influences exchange rates?
Central banks
State economics
Politics
Finance circulation Interest rates Mandatory
reserve funds
GDP, in?ation, debt Sales amounts Interest from
investors
Stability of governments Public statements Change
of o cials
How the Euro exchange rate dropped
Example
Prime Minister of Greece announces
EUR/USD
referendum
Berlusconi resigns
Central banks agree to stimulate liquidity of
nan- cial transaction
The EU cannot agree upon changes in the treaty
ECB announces a new president
Dec 1 2011
Nov 1 2011
Source Morgan Stanley Research, Bloomberg.
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leverage Lots
Term
Leverage
Through the use of leverage, traders are
able to invest a small amount of money and trade
much larger deal sizes. This is useful
because the movement in currency rates can be
very small, and larger trades represent
larger pro?ts/losses for every pip change
in the rate.
Leverage allows you to trade with
more money than you have in your
account, because you e ectively leverage your
free balance to open a larger trade.
Leverage is shown as a ratio, for example
1100. Note that leverage ampli?es both
potential pro?ts and losses alike.
Stock market 12
Forex market from 150 to 1400
Maximum leverage
Varying lot sizes
Term
Lot
In Forex, all transactions can be conducted via
standard, mini, and micro lots. Each lot size
accounts for a di erent measure of units
of the base currency, which in turn
presents a di erent pip value. Below is a simple
chart to illustrate the di erences in lot sizes,
measured in units, volume for the major pairs
where the base currency is USD.
Units of base currency 100,000 units
Pip Value (base USD) 1 pip 10
Volume
Standard Lot
1
Mini Lot
10,000 units
0.1
1 pip 1
MMiincri oLoLtot
110,000000uunnitists
00.1.01
11ppipip10.10
The smaller contract sizes have a broad
appeal to beginner investors who do not
want to take on a disproportional amount of
risk. Generally speaking, mini account
holders have access to the same materials
as the regular account holders such as
charts, trading plat- forms, support, etc.
Those traders who are looking to get started in
the forex market should consider opening a mini
account because of the smaller contract sizes.
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How leverage works
Leverage Leverage simply means borrowed
funds. While the high degree of leverage
used in forex trading magni?es returns and
risks, a few safety precautions used by
professional traders may help mitigate these
risks.
Tips Warnings
Example
You decide to buy 100,000 EUR and sell USD
at a rate of 1.4100. Do you need more
than 100,000 US dollars to open the trade?
No! With a leverage of 150 you will need
to put down only 1/50 of the deal size as
the margin, which works out to 2,820. Calculate
the margin Leverage 150 Divide 100,000 by
502000 EUR 2000 EUR x 1.412,820 Margin2,820
This is the amount that will be used to
cover your potential losses. In other
words, the margin is the actual amount that
you are risking to lose if the trade goes
against you.
Leverage is a very aggressive investment strategy
and only those with high risk tolerance and
a long time horizon should consider
leverage. Use leverage appropriate
to your comfort level Using 150 leverage
means that a 2 adverse move could wipe
out all your equity or margin. If you are
a relatively cautious investor or trader, use a
lower level of leverage with perhaps 15 or 110
leverage.
The leverage available on positions
carried over the weekend may vary. Maximum
leverage limits vary in di erent
countries, varying from 110 to 1400.
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Trading example 1 leverage
Going short on euro You expect the euro to fall
against the US dollar. EUR/USD
1.4000
Open _at_ 1.3800
1.3500
Close _at_ 1.3108
1.3000
1.dec 2011
1.nov 2011
Case B Leverage 1200
Case B Leverage 150
You open a position of 1 lot, which requires an
initial deposit of (100,0001.3800/200) 690.
You open a position of 1 lot, which requires an
initial deposit of (100,0001.3800/50) 2,760.
You were right. Euro depreciates against the
dollar to 1.3108 and you decide to close your
trade and take your pro?ts.
You were right. Euro depreciates against the
dollar to 1.3108 and you decide to close your
trade and take your pro?ts.
Result The euro fell by 692 pips (1.3800 -
1.3108 x 10000). Your pro?t is 692 x 1 (lot) x
200(Leverage) 138,400
Result The euro fell by 692 pips (1.3800 -
1.3108 x 10000). Your pro?t is 692 x 1 (lot) x
50 (Leverage) 34,600
Investment 690
Investment 2,760
Profit 138,400
Profit 34,600
If the trend moves against the investor,
leverage magni?es losses the same way it
magni?es returns in the examples above.
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Trading example 2 - copytrade
Creating a people based portfolio Using Social
Trading platforms.
1 Choose a platform Even if youre new to
Forex, there are beginner friendly platforms
like eToro or Zulu Tr ade (Accepts US
traders) that o er you an interesting
opportunity to follow the best traders
and copy their transactions.
2
Follow the leaders Start following the best trader
s and watch their activities.
TOP traders
Rudolph Boyle
Follow
Alex Slovacek
Follow
Daniel Lanham
Follow
Copy their ideas After you choose a top
trader whose actions you wish to copy,
decide upon an amount of money to invest
into copying his transactions and press
copy.
3
4
Profit Now you can sit back and
watch a professional make transactions for
you. This is also a good way to learn
Forex strategies in a real-life
trading environment.
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how to read graphs
The market can be analysed in several time
frames 10 minutes, hours, days, weeks. It may
often seem that these indicators are
contradictory. However, they arent, you just
need to combine their readings.
Analyses of longer time periods show
tendencies, ignoring accidental changes,
whereas daily and hourly graphs help in
choosing the moment to open and close positions.
MULTIPLE TIME FRAME ANALYSIS
Example
time X
Let us look at a daily graph. What do
most traders do when they see such a
curve? They assume that its the
beginning of a downward tendency and bid on
the drop of the currency exchange rate. And
theyre wrong!
1600
1550
1500
3
10
17
24
November time X
1900 Now lets look at the same currency
over a longer period of time.
1600
We see that the daily shift was
inconsequential to the long-term tendency as
it is upward and not the other way
around.
1300
Aug
Sep
Okt
Nov
Dec
Conclusion For successful and precise market
analysis, you must use at least 2-3 time frames!
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8 FOREX
STRATEGIES
YOU NEED
TO KNOW
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1. The Double-Red Strategy
Resistance level
Sell
1.
2.

• Description
• The double-red strategy is a short-term
  reversal system based on price action and
  resistance. The trade is planned on a
  5-minute chart and is signaled when two
  bearish candles form following a test of
  resistance.
• Choose an asset and watch the market until you
  see the ?rst red bar. Then wait for a
  second red bar.
• If the second red bar closes lower than the ?rst
  red bar, then its a jackpot.
• Usually, what happens is that the third bar will
  go even lower than the second bar. This
  is the point where you should open a short
  position.

• Watch out
• Not suited for volatile markets
• Do not use it when big news events
• are taking place

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2. copy trading STRATEGY
Copy the trades of experienced traders. This is
the best solution for beginners who dont have
much free time.
1. Choose network
2. Choose traders to copy
3. They make money for you
Social trading networks like eToro or Ay ondo o
er an opportunity to follow the best traders and
copy their trades with a click of a button.
Choose the traders you like, and then sit back
and watch them make pro?t for you. This is also a
good way to learn Forex strategies in a real-life
trading environment.
15
3. Support Resistance
Resistance level
Sell
Sell
Sell




Support level
Buy
Buy
Description Support is the level at which
the price seldom falls below resistance is
the level the price seldom exceeds. Each
time the price hits the resistance or
support, the price appears to hit a wall and
reverses. At support levels, the number of buyers
gen- erally exceeds the number of sellers
this pushes the price back up. At
resistance levels, the number of sellers
exceeds the number of buyers causing the price
to go back down.

• Key elements
• Preferable timeframe 1H
• Stop-loss is put outside the channel

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4. Breakouts
Resistance level
Support level Buy
Description When a price trades within a
range for some time, sooner or later, there will
be a breakout either up or down. This breakout is
usually very fast and volatile. Therefore, it is
possible to open a trade in the same direction.

• Key elements
• Preferable timeframe 1H.
• To con?rm the trend, wait until at least one
  price bar closes below/above the support or
  resistance.
• Stop-order should be above the support line or
  below the resistance, but not too close to avoid
  common movements and ?at widening.

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5. The Pinocchio Strategy
win 68 rate
Description A Pinocchio bar is a candlestick
bar that has a very small body and a very long
wick (nose). It is also called Shooting
Star,

• Key elements
• Time-frame for analysis 1h, 4h

Hanging Man, Hammer and Inverted
Hammer. You may remember that

• Watch out
• Do not trade in a neutral market! A true bearish
  Pinocchio signal must come after an uptrend
  (see image above). Trying to trade the
  bearish Pinocchio pattern in neutral market
  conditions can be risky.

Pinnochios nose grew long when he was
lying. The same happens with this
strategy when the wick is longer than
the body, this tells us that the market
is deceiving us and that we should trade the
opposite way.
The entry point varies some traders
prefer to wait for the next candle
to retrace to the 50 Fibonacci level of
the Pin bar, while others enter immediately
after the Pin bar closes. A long wick
indicates strong selling pressure a long
tail suggests intense buying power.
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6. The 1-2-3 Strategy
1
3
2
Description 1. After an uptrend or, at
least, a strong move up, look for the 1 2 3
pattern to
4. The pattern is now complete. There is
still a very important rule that must be
observed the price must move down to break
the low created at point (2). If that happens,
all of our conditions are met and we enter the
trade with a short position.
form, starting, of course, with the peak
(1). 2. If a counter-move starts, mark
the bottom of that move with (2).
?rst
3. If the new move up does not surpass
point (1) and starts turning down, mark the
highest point of this new move up with (3).
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7. Moving average
Key elements A sell signal is indicated when
the spot rate crosses under the moving average.
The fact that the "double-top" chart
pattern occurs at roughly the same point,
reinforces the sell signal.
Description Using moving averages to
determine trend direction is the oldest
form of technical analysis and remains one of
the most commonly used indicators. Moving
averages "smooth out" ?uctuations and help
distinguish between typical market ?uctuations
and actual rate reversals.
A buy signal is indicated when the spot
rate crosses o ver the moving average. The
"reverse head and shoulders" pattern (as seen in
the chart above) con?rms the buy signal.
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8. Oscillators
Sell
Extremum
Extremum
Buy

• Key elements
• Preferable timeframe 4h
• It is wise to use a ?xed stop loss when
  working with oscillators to avoid bigger losses
  if a breakout should happen.

Description Oscillators can provide clues
when the markets momentum is slowing
down, which often precedes a shift in the
trend. Momentum shifts directions when the two
lines (blue and red) cross. Therefore, a
trader takes a signal in the direction of
the cross when the blue line crosses the
red line.
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top 10 expert tips for success
6 Dont stop the profit An essential mistake
beginners make is closing the transaction too
soon and thus not taking advantage of the full
pro?t potential. Trends last longer
than they might seem at ?rst!
1 Start gradually Dont open many positions
same time. Its better to
at the choose
fewer positions, but weigh each of them
carefully.
7 Dont play against the trend Transactions
against a trend usually result in loss.
Wait for a bene?cial tendency and then make
your move!
2 Stop-Loss order People often forget to limit
their loss and therefore have to step out of the
game very soon. With the Stop-Loss Order,
you will be able to control the situation even
if the rates change unexpectedly.
8 If in doubt, follow the leader If you still
arent con?dent about your decisions,
choose a platform that lets you follow
leaders and copy their transactions.
3 Rule of 1/6 Specialists advise
against risking
more than 1/6 of your free capital
when you con?dent.
arent completely
9 Trends have momentum Beginners often dont know
that when trends start, they develop
4 Stick to the plan Each good trader has their
own plan, and the best traders make an e
ort to hold onto it. Those who have the
time, make daily transactions, others choose
long-term strategies. Keep it steady!
quickly because they are increased by
the number of traders following them. Use trends
in your favour!
Close the unsuccessful Dont hold
unsuccessful positions open for a long
time. Experience shows that its best to
close them early and move on to others.
Multiple time frames Di erentiate the time
frames of analysis. Weekly graphs are
used to observe trends while daily and hourly
graphs are best used to observe the best
time to open and close positions.
10
5
22
how to choose the right broker
There are many companies that o er
margin-trading (Forex) services. Without
the knowledge of the essential criteria,
its easy to get lost in the details of
a large o er and choose an unsuitable or,
as a worst-case scenario an unreliable
service provider. What is most important when
choosing a platform provider, and how does one
orientate themselves in so many o ers? Below is a
compilation of some advice from several
professionals in the Forex market, which can be
narrowed down to four basic criteria Reputation
of the company Evaluate the popularity of
the platform provider whether there are
any complaints about the services and what
those complaints are, what the customer
service is and whether or not pro?t payments
are ever delayed. Convenience of the user
interface You have to evaluate how easy and
convenient it is to use the platform and what
analytical options and extra tools it uses. It is
best to check the user interfaces by opening demo
accounts o ered by the best platforms. Commissi
on for paid transactions The commission payments
for transactions are described by the spread,
which is the di erence between the bid and o er
price of the currency. The bigger the spread, the
more you will have to pay the service
provider. Commission payments are usually
higher for independent platforms rather than
commercial bank Forex platforms. Money
transactions The best platforms provide
the opportunity to use wire transfers or
other online payment operators such as
PayPal or Money Bookers, which are the
most convenient and easy methods of
receiveing funds.
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For optimum results recomended to
Platform
Min. Deposit
Max. Leverage
Rating
50
1400
visit site
1
eToro
visit site
2
100
1200
Plus 500
25
1200
3
visit site
Easy Forex
visit site
4
500
1500
FxPro
visit site
5
100
1300
Ducascopy
eToro is a Social Investment Network. Plus
500 is a CFD only Service. Your Capital may be at
risk.
24
best for beginners
eToro is the world's leading social investment
network with over 3 million registered users from
over 200 countries. The eToro platform is
considered to be the most user friendly and
intuitive for beginners. eToro is known for
its unique social trading tools that let
you see, follow and copy the best performing
traders in the network. You don't need to be an
expert to invest like a top performer.
Facts
Pros

• Huge and active community
• Super friendly yet powerful interface
• Follow Copy feature
• Between 80 -90 of
• copied trades are pro?table.
• Guru traders are obliged to write
• about their strategies to their followers
• Great stock investments Google,
• Facebook, Amazon, Apple etc.

• Founded in 2006
• Registered in Cyprus
• Regulators CYSEC, MiFID
• Minimal deposit 50
• Leverage up to 1400
• Spreads EUR/USD 3 points
• Payments Credit card, Paypal,

• BankWire, MoneyBookers, Webmoney
• Commissions No
• Contacts 1-866-350-0881,
• support_at_etoro.com

Cons
Overnight commissions might be applicable

• Spreads could be tighter
• The trader ?lter could be more advanced
• Trade history features need improvement

Platform pictures
visit site
25
editors choice
A popular platform which has proven itself
since 1999. Plus 500 is one of the rare
brokers listed on the London Stock Exchange. This
platform has an app available for mobile devices
including the iPad, which allows you to make
transactions wherever you are (Highest rated
broker in UKs app store). Plus500 is suitable
for experienced traders and not beginners.
Plus500 is a CFD service. Your Capital is at
risk.
Pros
Facts

• Founded in 1999
• Registered in UK
• Regulator Financial Conduct

• Bonus of 20 - 10,000
• Low ?xed spreads
• Listed on the London Stock Exchange
• Fast account veri?cation
• Available in 35 languages
• Accessible everywhere (web, iPad,
• iPhone, Android and Windows phone)

Authority.

• Minimal deposit 100
• Leverage up to 150
• Spreads EUR/USD 2 points
• Payments Credit card, Paypal,

• Skrill, Bank Wire
• Commissions No
• Contacts 44 203 002 7290,
• support_at_Plus500.com

Cons

• Scalping not allowed
• Very basic charting for the mobile app

Overnight commissions might be applicable
Platform pictures
visit site
26
best of all-in-one
A user friendly, yet professional and
trustworthy platform that has trained many
professionals. This platform o ers one of
the easiest sign-up processes as well as
multiple payment receival options. A
pleasant feature is the super low minimal
deposit - just 25. With one trading account, you
can trade from your desktop, smart phone, iPhone,
BlackBerry, or PDA. The variety of market reviews
and analysis tools o ered by this platform is
remarkable, all of which will help you
make the right decisions.
Pros
Facts

• Very easy fast sign-up
• Low minimal deposit
• Free market analysis

• Founded in 2003
• Registered in Cyprus
• Regulators CYSEC, MiFID
• Minimal deposit 25
• Leverage up to 1200
• Spreads EUR/USD from 3 points
• Payments Credit card, Paypal,

Cons

• Bank Wire
• Commissions No
• Contacts cs_at_easy-forex.com

• High overnight fees
• Relatively high spreads

Overnight commissions might be
applicable Platform pictures
visit site
27
FxPro has been a major player in retail FX since
it was established in 2006, and has quickly
risen through the ranks to become one of
the largest and most in?uential brokers in
the world. Regulated by both the UKs FCA and the
CySEC FxPro is a truly global broker serving
clients in over 150 countries worldwide. FxPro
has been a force for change in the
industry, leading by example it
continues to campaign for increased levels
of transparency and for the eradication of
any and all con?icts of interest between
broker and client. When FxPros clients
take a position on the worlds markets they
receive the very best bid and ask prices,
executed rapidly, and with no intervention from a
dealing desk. FxPro o ers also a true ECN trading
with spreads from 0 pips on the major pairs.
Pros
Facts

• Founded 2006
• Headquarters Limassol, Cyprus
• Regulated by FCA, CySEC
• Minimum Deposit 500
• EUR/USD spread 1.5 (average

• No Dealing Desk intervention
• Insured Client Funds
• Negative Balance Protection
• Commission-less trading
• Leverage from 11 to 1500
• O ers also ECN trading
• Best tools in the market

• spread)
• Max Leverage 1500
• Money Withdrawals Processed
• within 1 business day
• Commissions No Commissions
• Payment OptionsVisa/MasterCard,
• Bank Wire, Skrill, Neteller, and more.

Cons

• 500 minimum deposit

Platform pictures
visit site
28
Ducascopy is one of the most reliable and
secure brokers out there. Dukascopy Europe
is a European subsidiary of Dukascopy Bank
of Switzerland. It is a heavily regulated
broker and secured by governmental
regulations up to 20000 EUR per customer.
Ducascopy Europe is one of the safest
places to trade and also provides the lowest
spreads and highest liquidity.
Pros
Facts

• High security
• Low spreads
• Scalping, hedging etc. allowed

• Founded in 1998
• Registered in Latvia (Europe)
• Regulators Swiss Financial
• Markets Authority
• Minimal deposit 100
• Leverage up to 1300
• Spreads EUR/USD 1.4 pip
• Payments Credit, Debit Cards
• Commissions from 10 USD /
• 1million USD deposit
• Contacts info_at_dukascopy.eu

Cons

• Slightly longer registration process
• Trading commissions

Platform pictures
visit site
29
Thanks for reading!
Visit our web page to get the latest tips and
strategies! www.forexillustrated.com