A Beginners Guide To Forex Trading
An Illustrated Introduction To Currency
Trading
By Jon McFarlane
http://forexuseful.com/
DISCLAIMER
Trading any financial market involves a high level of risk and may not be suitable for
everyone. You should only trade with money you can afford to lose. You should fully
understand the risks involved in any form of trading and be willing to accept them. The
content within this book is provided for general informational purposes only and no part
of it should be construed as advice, investment, financial or otherwise.
This book is not intended for distribution to, or use by, any person or entity in any
jurisdiction or country where such distribution or use would be contrary to the law or
regulation or which would subject the publisher to any registration requirement within
such jurisdiction or country.
This book may contain links to external websites. The publisher is not responsible for
any content of those websites.
Although due care and attention has been taken in preparing this book, the publisher
disclaims any liability for any inaccuracies or omissions.
By reading this book the user accepts these conditions and agrees that the publisher
shall in no way be liable for any loss caused either directly or indirectly as a result of
using any part it.
COPYRIGHT
No part of this consolidated book may be reproduced in any form without
permission in writing from the author.
Reviewers may quote brief passages in reviews.
Copyright © Jon McFarlane 2016
Forex Useful - http://forexuseful.com/
TABLE OF CONTENTS
THE AUTHOR
A CONSOLIDATED BOOK
BEGINNERS GUIDE
The Absolute Basics Of Forex
Forex Terminology
An Introduction To Technical Analysis
Trading Strategy Ideas
The Real World
CONGRATULATIONS
REMINDER
THE AUTHOR
This book has been written by me, Jon McFarlane. I have been successfully investing
and trading my own money on a full or part-time basis for over 20 years.
In 2008 I set up Systems For Traders, an independent review site for trading related
products.
The aim was to, in my spare time, based on my experience – Help those new to trading
avoid the many useless products being peddled across the industry. With over 120
reviews of, in the main, useless, trading systems and signal services...
I concluded that a change in direction was needed.
With a new focus, to provide quality trading related courses and resources, together
with Nigel Price...
In 2013, Forex Useful was founded.
Nigel and I are real traders.
We both trade our strategies – On a part time basis.
In our spare time – Amongst other things, we provide regular updates for our strategies
and support to fellow members on the website.
We welcome you to join us and over 7,000 other members HERE
A CONSOLIDATED BOOK
This book was published because our members asked for it.
They wanted our 3 Proven Strategies available on their Kindle device.
In actual fact we have published 3 Kindle books and...
Rather than maintain 3 separate books we decided to, from now on – Have one
consolidated book (bundle) which includes all of them.
The consolidated book is titled “Forex Trading - Beginners Guide, 3 Proven
Strategies And A Binary Options Review: A consolidation of all our previously
published books” and includes...
A Beginners Guide To Forex (this book)
3 Proven Strategies and
A Binary Options Review
The above bundle is available here...
Direct on Amazon.com
Direct Amazon.co.uk
Or you can search for “B01CU3HG92” or “Jon McFarlane” on Amazon
We hope enjoy this book and the others...
BEGINNERS GUIDE
Most of the information out there about forex trading is boring, confusing and
contradictory.
Our guide gets straight to the point. It quickly teaches you exactly what you need to
know to get started in the markets.
28 subjects covered and, at the end of each one I have included a personal story.
The guide and 28 subjects are set out in 5 distinct sections...
The Absolute Basics Of Forex – A necessary foundation for all those new to the
world of trading.
Forex Terminology – Vital terms and important information relating to Forex.
An Introduction To Technical Analysis – The high level basics necessary for
anyone wishing to consider implementing a Trading strategy.
Trading Strategy Ideas – A view on many of the most common Forex strategies –
Presented in such a way that they can be used as a foundation for further
exploration.
The Real World – Down to earth perspectives to ensure that should you progress
down the Forex trading path – You are well prepared for some of the related
pitfalls and myths.
Even if you are a more experienced trader you may well learn, enjoy and, in some
cases, relate to the personal stories – At the end of each subject.
The Absolute Basics Of Forex
A necessary foundation for all those new to the world of trading.
Subjects covered...
Long And Short Positions – Bulls & Bears, Long & Short, PIPs and Lot’s/ £’ s per
point.
Forex Order Types – Market orders, Limit orders, Stop orders and Stop losses.
Bid And Ask Price – Currency pairs, Base/ Quote currencies, Bid (SELL)/ Ask
(BUY) prices and Spreads.
A personal story...
When I started trading Forex I was completely naive, Long and Short positions, no
problem!
I was Long one Currency pair and decided to also go Long another, here I will highlight
two instances... The first time I was Long EURUSD and also went Long GBPUSD. The
second time I was Long EURUSD again but this time I also went Long USDCHF.
The first outcome, I lost twice as much as I anticipated as the market turned against me,
both EURUSD and GBPUSD dropped to take out my Stop loss.
The second outcome, I made nothing. EURUSD did as I expected and rose and hit my
Target, USDCHF fell and took out my Stop loss. At the time I was trading a 1:1
Risk:Reward “Forex strategy”.
I was a little foxed by this and decided to find out what was going on...
After searching for not too long I discovered Currency/Forex correlation. After reading
the subject in quite some depth, from then on I realised when trading more than one
Currency pair I had to be aware of the implications of taking out a new position in
another (be it Long or Short).
You will read more about Currency Correlation later in this guide.
A personal story...
You would think that all Forex brokers would treat and execute all orders in the same
way and have the same Forex order types. Having had at least 10 different Forex trading
accounts over the years I know that this is not the case…
Let’s say, for example, you have a Long position with your broker on USDJPY and
let’s say you are long 2 lots. You decide to close half of this position so you Sell 1 lot.
Some brokers will now close half of your position for you (as you expected). Some
however, will open a new Short position and you will now have 2 open trades, 2 lots
Long and 1 lot Short – Not what you want.
Now, let’s say, for example, you once again you have a Long position with your
broker on USDJPY and once again you are long 2 lots. It’s a long term trade but a
retracement is due so you decide to take out a short term “contra trade” to also profit
from the retracement. You Sell 1 lot. As above, some brokers will now close half of
your position for you (this time, not what you expected). Some however, as above, will
open a new Short position and you will now have 2 open trades, 2 lots Long and 1 lot
Short – (this time, this IS what you want).
Basically some Forex brokers allow you to place “contra trades”, have an open
Long and Short position in the same Currency pair at the same time, others do not.
Always make sure you know how your broker is going to process all the Order types
you are going to use, in particular how it will handle “contra trades”. You can do this by
contacting them and/or, more preferably, first trying a demo account with them.
A personal story...
I would like to mention how important Spread is (the difference between the Bid and
Ask price) when trading Forex (or any other market)...
I thought at the beginning of my Forex trading career it was going to be so exciting. I
was going to make money of the 5 minute chart (I even bought an additional monitor, a
really big one) by sitting there for a few hours a day. A fellow "trader" told me that
GBPJPY was great for scalping (I loved that word) and he had a great little strategy
which he shared with me. I was on my second broker account by now and thought, this
is for me...
So, off I went. On the 5 minute time frame (on my new (really big) monitor) I used a
Simple Moving Average Crossover Strategy with a 5 and 10 MA. Things went well
to start with (up about 20%), then I lost half of my account. I spoke to another "trader"
(this one was much closer to being classed as a "trader" than the other one) and told him
what I had been doing. I had been trading GBPJPY with a 15 PIP Stop and a 15 PIP
Target, the Spread was, at the time, 8 PIPs. He kindly pointed out that the market had
to move just 7 PIPs to take out my Stop and it had to move 23 PIPs to hit my
Target. My 1:1 Risk Reward strategy was in fact more like 3:1. He didn't have to say
much more to this Forex beginner!
It is vital to pay attention to Spread and to trade only those Currency pairs with a nice
tight Spread, especially if trading intra-day. I also recommend you don't try scalping!
Forex Terminology
Vital terms and important information relating to Forex.
Subjects covered...
Currency Nicknames – The 10 most common and popular.
The Dollar Index – What it is and how to trade it.
The Best Currency Pairs To Trade – And why!
Forex Market Hours – And the best times to trade.
Types Of Trader – Which one are you?
Forex Fundamentals – The Top 5 News Events.
A personal story...
Nothing to do with Currency nicknames at all, just never call a Kiwi an Aussie.
A personal story...
This is not a popular instrument for Forex traders, at least not the ones I know. Most
traders I know prefer to trade Currency pairs as do I.
However...
Many Forex traders I know, including myself, are also long term investors. This means
we buy and hold stock and fund positions in our portfolio/pension vehicle for our future
needs. When we have exposure to US stocks or in particular US denominated funds we
do from time to time take out an ETF position in our portfolio, such as...
The PowerShares DB US Dollar Bullish Fund (UUP)
The PowerShares DB US Dollar Bearish Fund (UDN)
We use these ETFs which mirror the US Dollar Index to hedge our portfolio
performance in line with our Bullish/Bearish US Dollar market view. Those seeking
more protection in their portfolio can also consider the 3x leveraged funds on offer,
UUPT and UDNT respectively.
I have never had a need to use leverage within my long term portfolio.
A personal story...
Here I will expand on the personal story I mentioned in the Bid And Ask Price section.
Basically I recalled one of my "scalping" experiences where I was trading GBPJPY
with a 15 PIP Stop and 15 PIP Target on the 5 minute chart. I was told by a so
called "Forex trader" that GBPJPY was a great Currency pair to trade because it had
large trading volume, was highly liquid and had great daily movement. Indeed he was
right on this, the problem was the Spread...
My "Forex strategy", of using a 15 PIP Stop/Target was in reality a 7/23 PIP
Stop/Target strategy because at the time the Spread with my Forex broker was an
amazing 8 PIPs. This has of course changed these days, with a 4 or 5 PIP Spread being
more typical now for GBPJPY. Nonetheless this is still high compared to the Spread (3
or less) on offer for many more of the liquid Currency pairs we can trade. For example,
with one of my Forex brokers at present the Spread on GBPJPY is 4.5 PIPs and on
EURJPY it is just 2 PIPs. This may not seem like a lot but it's more than
DOUBLE!
This is the reason why all of the factors mentioned here are important. There really is
no need to trade Currency pairs with a Spread greater than 3 PIPs.
There are plenty of trading opportunities in the market in Currency pairs which meet
ALL our criteria.
A personal story...
Well, this one is quite funny but it may not be if it catches you out.
Every year in most parts of the world we change our clocks.
In the UK in the Spring we put our clocks forward, usually, on the last Sunday of March.
In Autumn (or Fall) we do the reverse, we put our clocks back, usually, on the last
Sunday of October.
What's the point? Well, here's the point...
In the US in the Spring they usually put their clocks forward on the 2nd Sunday of
March. In Autumn (or Fall) they usually put their clocks back on the 1st Sunday of
November.
I used to trade US stock market opening gaps (don't ask, it was a disaster (thanks
to another so called guru)) which meant at about 7:20pm (UK time) I used to change to
the appropriate trading screen. I would then get ready for the 7:30pm (2:30pm EST)
market open. However, this Monday morning in March the charts were already alive,
action everywhere! WTF!
Because the US put their clocks forward earlier in Spring it means there is a period
of 3 - 4 weeks in March where we (in the UK) are only 4 not 5 hours ahead of them. In
Autumn they put their clocks back earlier, this means there is a period of a week or
two in October/November where we (in the UK) are 6 not 5 hours ahead of them. The
latter never caught me out but if you are sitting there one day waiting for the US markets
to start moving...
A personal story...
Before I knew anything much about types of trader I used to love the word "scalper".
When I first ventured into the world of Forex trading, in my spare time after work with a
few mates, usually at one of our apartments and usually with a bottle of beer, or two or
three, all we all wanted to be was "scalpers".
Why take 10 trades a month on the Daily chart when we could take 5 trades a day
on the 5 minute chart and make more money in a few hours than we would in a
month!
Well, actually, within a month not one of our quartet had more than £200 in their
account. We had all started off with a £1,000 account, with our own strategy (some from
forums, some from "gurus") and, within a month, we had lost over £3,000 between us
(quite a lot of money back then). It was embarrassing to say the least and a story I
usually keep to myself even to this day (until now)!
Well, that was many many moons ago, the sad story is that it was not my last attempt at
"scalping" (those other stories I will keep to myself (for now)). Anyway, it's safe to say
I no longer consider "scalping" as a trading approach nor do I recommend it to
anyone else trading Forex. I say this on the basis to this day I have yet to meet a
profitable Forex scalper, one who consistently makes a profit year in year out from the
markets trading such short time frames.
Nowadays I prefer Swing/Trend trading off the 4 hour charts.
I do still like to Day trade when I get time but I just find that I either don't get time or I
end up doing something more interesting than looking at a 15 minute Forex chart for a
few hours.
A personal story...
And yes, although I don't pay much attention to Forex fundamentals I have of course
tried to "Trade The News", you can read more about my experience and
recommendation later.
An Introduction To Technical Analysis
The high level basics necessary for anyone wishing to consider implementing a
Trading strategy.
Subjects covered...
The Candlestick – Bullish/ Bearish and Open, High, Low, Close (OHLC).
Forex Candlestick Reversal Patterns – Bullish/ Bearish Engulfing candles, Pin
bars and Dojis.
Forex Chart Patterns – Head & Shoulders, Double/ Triple Bottoms/ Tops,
Ascending/ Descending and Symmetrical triangles.
The Moving Average – Probably the most popular Technical analysis indicator in
the world – Fast or Slow!
Best Moving Average Settings – Simple (SMA), Exponential (EMA) or
Weighted (WMA)?
Best Forex Technical Indicators – Covers RSI, Stochastics and Bollinger bands.
A personal story...
I've tried all these chart types, Line, Bar and Candlestick.
Line charts - Quite useless really as they only show 1 piece of price information. I did
once, believe it or not, try a strategy based on the Line chart. It involved 4 lines, each
representing the Open, High, Low, Close on a 1 Hour chart - It was, at best, truly
useless!
Bar Chart - I just don't see the point. Yes, it displays the same information as the
Candlestick chart but the Candlestick chart (with its body instead of a stick) is just so
much clearer.
I have also tried the Tick and the Point and Figure chart types too to no avail.
At the end of the day, the Candlestick chart is the clearest and the best.
I don't think I will ever be persuaded otherwise...
A personal story...
I have read Steve Nison's books on the subject of Candlesticks and Candlestick patterns,
I have printed reams of paper on the subjects, learnt Japanese names and even made up
some of my own (don't ask!).
With over 20 years experience of these patterns I can say with confidence that these 3
core reversal patterns (6, if you include Bullish and Bearish) are all you need to
know. The exception here is perhaps the 2 Candle reversal pattern which I also pay
attention to, although not so much.
To me Candlestick patterns on the 1 hour time frame and less, perhaps even the 4
hour too, are quite useless. I say this because the pattern is a supposed to be a
representation of the "crowd" and the "crowd" does not trade within the boundaries of a
5 minute, 1 hour or even 4 hour time frame.
If however I see one of these Candlestick patterns on the Daily or Weekly time frame
I have much more confidence. The majority of the market has usually played their hand
within this time frame thus, the higher the time frame the more emphasis I place on these
Candlestick patterns.
On the 1 hour time frame or less, to me they mean nothing on their own.
The PAST MT4 Indicator included in the Forex Useful MT4 Indicator Bundle is a
great tool for spotting these reversals, and others, on any time frame.
A personal story...
Having observed Forex chart patterns over 2 decades I reckon I can say, let's play a
game...
Let's look at any Currency pair on any time frame, show me a Head and Shoulders
pattern that played out as expected, I'll show you one that didn't.
Let's look at another Currency pair on a different time frame, show me an Ascending
triangle pattern that played out as expected, I'll show you one that didn't.
The take away from this...
Chart patterns in the world of Forex should be taken with a pinch of salt.
Sure, learn them, use them as you wish but have something else too. Verify the trade,
have an additional edge. You need an edge when trading and for me, most Chart patterns
(outcome) have no more of an edge than a coin flip.
A personal story...
If ever I am asked, What Is A Moving Average, I say that the Moving Average is
probably, if I was pushed, the only indicator I would have on my chart.
In fact, when looking at long term charts the only indicator on my Daily chart is the 200
MA and on my Weekly chart, the 50 MA. Why? Because they both represent, roughly,
the average closing price of the last year. To me and to many others this is a useful
barometer of the long term trend. I can see if price is above/below the long term trend
and if that long term trend is rising/falling/flat. I can see if a long term trend is
potentially starting/ending, I can see if price is over extended (over bought/over
sold, without the need for an oscillator) or if price is retracing (to the MA, a
potential area of support/resistance).
All very useful information from a quick glance at one indicator!
One of my core Forex Trading strategies, the 3 Little Pigs MTF Trading Strategy (it is
included, later in this book) is based on 3 time frames and a representative MA on
each of those time frames. It looks to trade with the Long, Medium and Short term trends
based on the Weekly, Daily and 4 Hour time frames.
A personal story...
I first came up with the concept for the 3 Little Pigs MTF Trading Strategy at the turn of
the millennium. Whilst coming up with the concept I conducted a vast amount of
research on the subject of the best moving average settings, Simple, Exponential
or Weighted?
I reckon my own personal research on this very subject spanned at least 1 year.
It included much "googling", reading and more importantly much manual observation
and MT4 Expert Advisor (EA) testing.
My conclusion...
No moving average, Simple, Exponential, Weighted, or any other for that matter, is
any better or worse than the other.
The quicker the reaction the more false trades, the slower the reaction the later the entry
(and inevitably, the greater the stop). My choice, keep it simple.
A personal story...
I have a bookshelf full of books on trading and at least half of them or, at a minimum half
the content of half of them, is related to the "Best Forex technical indicators".
There are 100's of technical indicators. Actually in reality, taking into account the
many custom (non industry standard) ones, there must be 1000's of them. Many of the
latter are sold by so called guru's as the best Forex technical indicator on the planet!
Well, after many many years "playing" with many many of these indicators (industry
standard and custom), the most you ever need on your chart, as I covered in the
Moving Average section, is a Moving Average (or Bollinger Bands, if your prefer (the
middle Bollinger Band is actually a Moving Average anyway!)).
Why? Well the truth is...
Most of the popular Forex technical indicators are oscillators which basically show you
when a Currency pair is Overbought or Oversold. However, if you observe Price action
in relation to a Moving Average you can, in time, instinctively tell when a Currency
pair is Overbought/Oversold. You can observe this right now by putting a Moving
Average and, let's say, Stochastics indicator on any chart of your choosing. Just look
when price is Overbought or Oversold according to the Stochastic how price on your
chart is over extended from the Moving Average the vast majority of the time at the same
point in time.
Other Forex technical indicators (other than the Moving Average), having spent a
great deal of time using them, I find, just cloud judgement.
King for me is Price action, Price action (around a Moving Average if necessary)
should provide sufficient information to make trading decisions. At most one of the
industry standard oscillators can be used for supporting confirmation.
Trading Strategy Ideas
A view on many of the most common Forex strategies – Presented in such a way
that they can be used as a foundation for further exploration.
Subjects covered...
Trend Trading – Uptrend/ Downtrend, Higher Highs & Higher Lows and Lower
Lows & Lower Highs.
Mean Reversion – As close as we get to a known certainty in the world of Forex
trading.
Pivot Point Trading – Using statistics to help identify potential opportunities.
Divergence – Occurs when things get out of sync, Bullish/Bearish,
Regular/Hidden.
The Moving Average Crossover Strategy – A simple and popular trading
system.
The Engulfing Candle Trading Strategy – How to spot them and how to trade
them.
A Better Pin Bar Strategy – Much more profitable than the “experts”
(traditional) strategy.
The Carry Trade Strategy – For experienced traders only.
Trade The News – The best advice for trading News releases.
A personal story...
Trends created by crowd behaviour are the key foundations behind the No Indicators
Trend Trading Strategy (NITTS).
A personal story...
Once a subject that fascinated me mainly because of this quote "Mean reversion is as
close as we get to a known certainty in the world of Forex trading".
I spent many months on this, back-testing and more back-testing, Currency pair after
Currency pair and time frame after time frame looking for a strategy to exploit this
"known certainty".
I made the following observations...
The higher time frames were best (4 Hour and above)
A larger mean (Moving Average) was best
Waiting for a larger move (percentage wise was best)
However, the issue with any strategy, I found, was determining an appropriate Stop.
This was compounded by the fact that although the mean (by default) is the obvious
Target, by the time price reverted, much of the time the mean had risen to (or above) my
Entry.
The other issue was that many times reversion takes much longer than expected, more
often than expected.
Perhaps this "known certainty" can be exploited, my choice, based on the above
observations it is unlikely it will be me doing the exploiting.
A personal story...
My own analysis conducted on over 12 years of data allowed me to come up with the
Pivot Points Trading Strategy, it's free and available here.
A personal story...
When I started Systems For Traders, an independent review site, in my spare time back
in 2009 I was pestered by many members to review this great new Forex
divergence trading strategy.
Two of us decided to test it in isolation and to then compare not only our results but also
the results of the Forex "guru" selling the system.
After 2 months, we sat down and guess what! We were completely out of sync!
A little confused, we then compared our out of sync trades with the ones reported by the
"guru". We were all, the majority of the time, out of sync! The only major difference
was of course that the "guru's" reported (hindsight) results were very much better than
ours.
Based on this and subsequent experience my view is that divergence is over rated.
Similar to Forex Chart patterns (covered earlier) I am in the camp, show me one that
worked out and I will show you one that didn't.
A personal story...
I am sure I read somewhere in one of the Market Wizard books that this is the only
strategy that a team of Forex analysts and programmers ever proved to provide long
term positive returns. I don’t recall them sharing the settings though!
The other thing they failed to mention, as do many others are the exact Entry, Stop and
Target used. Often mentioned is take a Long entry when the Fast MA crosses the Slow
MA and go Short on reverse. This is not clear, does it mean just when the MA’s cross,
wait for the candle to close etc. Also what about that Stop – Where does that go? Target
is probably when the (unclear) reverse trade Entry rules are met.
The above aside I believe a strategy can be defined that has a clearly defined rule
base. One thing I am quite sure of it that the Moving Average settings will have to be
tailored to each Currency pair and time frame.
One day, when I have a little more time I hope to explore this subject in more detail.
My objective will be to validate (or not) the idea of a profitable 100% mechanical
moving average crossover strategy.
A personal story...
I mentioned the Engulfing candle when I covered Forex Candlestick Reversal Patterns
earlier.
Also known as a Key Weekly/Day Reversal candle the Engulfing candle, and the Pin
Bar, are probably my most "favourite" reversal candlestick patterns. In fact they are
probably the only 2 (4 if you count the Bullish/Bearish options) candlestick patterns I
pay attention to.
As always, it's worth mentioning, because many do not, that the higher the time frame
the more respect I give them, Daily and above is preferable.
Nigel’s Price Action Swing Trading (PAST) Strategy is primarily based on
identifying candlestick reversals on the higher time frame and then taking entries on the
lower time frame. It's free and available here.
A personal story...
Every weekend I flick through about 30 Weekly Forex charts and about 20 others,
indices and commodities.
I am on the lookout for something I might like to trade in the week ahead.
In particular I look out for these Pin Bar reversals and also, as mentioned in the
previous topic, Engulfing candles. Both of these candlestick patterns, because of their
appearance on the Weekly time frame are important to me because they give me a clear
indication of which side of the market I want to be on if I do decide to take a position in
the week ahead.
The PAST MT4 Indicator is a great tool for spotting these, and other, candlestick
reversals.
A personal story...
At the beginning of every month I check the best carry trade opportunities with my
Forex broker of choice, GKFX, click HERE and then select "Site Map" and "Swap
Rates".
I don't check these rates because I have a particular Carry Trade Strategy, I check them
so that I am aware of the best Swap rates on offer for the month ahead. I simply write
down the month and the significant Swap rates on a post-it note and stick it to the wall.
If I spot a trading opportunity in two Currency pairs and I only wish to take one
position, I will, if it's on my Swap list, take it in that particular Currency pair in
preference of the other.
As I mentioned this is not a Carry Trade Strategy, I do not have one. I simply make sure
I am aware of these Swap rates and if I can take a trade in one of them I consider it a
"bonus" and that's it.
I do not take Carry trade positions just for the Swap rate, I take positions for
technical reasons.
A personal story...
Of course I tried it, who hasn't!
Of course I lost money, who hasn't!
In all my time trading the Forex markets I have never met a long term profitable
Forex news trader.
That's good enough for me!
The Real World
Down to earth perspectives to ensure that should you progress down the Forex
trading path – You are well prepared for some of the related pitfalls and myths.
Subjects covered...
Currency Correlation – Be aware if trading more than 1 instrument at a time.
Martingale Trading – Considering Martingale as part of your strategy?
Trading For A Living – Realistic monthly returns, the maths help keep it real.
Is Forex Trading A Scam – No it is not but there are many scams associated with
the industry – Some warning signs!
A personal story...
Awareness of correlation is so important our developer designed an indicator for us.
We always have this indicator on our charts - ALWAYS.
Our MT4 Correlation Indicator is available as a FREE bonus to all Forex Useful
members who sign up here.
A personal story...
Date, my 30th birthday, location, the Bellagio, with my girlfriend...
Wow! look, 8 reds in a row!
Wow! look, 9 of them!
I bet $20 on Black, 10 reds in a row!
I bet $40 on Black, 11 reds in a row!
I bet $80 on Black, 12 reds in a row!
GIRLFRIEND: Come on, enough...
"I know what I am doing a guy at the bar told me about this"
I bet $160 on Black, 13 reds in a row!
GIRLFRIEND: You mean that drunk guy...
"He wasn't drunk"
I bet $320 on Black, 14 reds in a row!
No way am I betting $640 on a roulette wheel, besides I only had $1,000 to start with - I
had spent $620 already! To win a net $20!
GIRLFRIEND: Look, it's Black!
A personal story...
We believed it all!
Grab, pocket £137 a day, $328 in 1 trade, just a few hours a day, 5% a week!
Me and my mates really believed it, I wrote about our experience over 20 years ago
previously.
We thought, try a small amount first and then, conservatively, start with £5,000,
double it each year...
£5,000 > £10,000 after 1 year
£10,000 > £20,000 after 2 years
£20,000 > £40,000 after 3 years
£40,000 > £80,000 after 4 years
In 4 years, withdraw our £5,000 plus another £25,000 and continue making £50,000
each for a few minutes effort a day, we will be happy trading for a living!
Somewhere between 30% and 50% a year these days and I am happy. Anything more
than this I am very happy!
It took me over 15 years to get to this point - Keep it real!
A personal story...
Is Forex A Scam?
Well, having reviewed over 100 Forex products over at Systems For Traders I can
safely say that I have seen all of the terms mentioned here, many of them all too often. I
can also safely say that none of the terms have been seen in association with a Forex
strategy or service that actually works.
One reason I started Forex Useful (in 2013) was because I was fed up reviewing what
were in the main useless Forex products. I wanted to instead share my own strategies
(that work) that I have been using to successfully trade the Forex markets since the new
millennium.
Now, especially with Nigel on board, who I am entirely grateful too, I believe I made
the right decision.
To help others it is no longer a case of sharing reviews of bad strategies but a case
of sharing ones that work.
CONGRATULATIONS
You made it to the end!
I hope you enjoyed it!
If you have any questions at all you can contact me HERE
Come join over 7,000 other members HERE
REMINDER
This book was published because our members asked for it.
They wanted our 3 Proven Strategies available on their Kindle device.
In actual fact we have published 3 Kindle books and...
Rather than maintain 3 separate books we decided to, from now on – Have one
consolidated book (bundle) which includes all of them.
The consolidated book is titled “Forex Trading - Beginners Guide, 3 Proven
Strategies And A Binary Options Review: A consolidation of all our previously
published books” and includes...
A Beginners Guide To Forex (this book)
3 Proven Strategies and
A Binary Options Review
The above bundle is available here...
Direct on Amazon.com
Direct Amazon.co.uk
Or you can search for “B01CU3HG92” or “Jon McFarlane” on Amazon
Table of Contents
THE AUTHOR
A CONSOLIDATED BOOK
BEGINNERS GUIDE
The Absolute Basics Of Forex
Forex Terminology
An Introduction To Technical Analysis
Trading Strategy Ideas
The Real World
CONGRATULATIONS
REMINDER