basic

basic

soyour $1,400 CAD would convert back to $1,021.89 US (again,ignore bank spreads/commissions). Therefore you just made$21.89, a 2.19% increase in funds (not bad).In the Forex market you could have simply traded the “CurrencyPair” called USD/CAD, first selling USD for CAD, and then laterbuying back USD with the CAD you have. Basically, you aretrading one currency for the other.Usually currencies are traded against the US dollar (USD), so youmay be trading the US dollar against the Euro (EUR), BritishPound (GBP), Swiss Franc (CHF), Japanese Yen (JPY),Australian Dollar (AUD), New Zealand Dollar (NZD), and ofcourse Canadian Dollar (CAD). There are other currency pairs,but you normally won’t be dealing with those.eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.comDuplication and distribution of this material is strictly forbidden7When you are trading you are attempting to capture “PIPs” (PriceInterest Points), which is one/one-hundredth of a cent (fordollars). You will notice that the exchange has two extra decimalsat the end. From our example above, there is a one-pipdifference between 1.4000 and 1.4001.One pip may not seem like much, but when you are trading largevolumes of currency, say $100,000, then one pip times 100,000 isequal to $10 (less on certain currency pairs). When you aretrading currencies the broker gives you typically a 100:1 ratiomeaning that to “control” one lot of $100,000 all you need is$1,000 on margin.Thus, as has been explained before, when you capture 20 pipsfrom this amazing trading system then that means you have justearned $200.Now, if you don’t have at least $2,000 to open a regular Forextrading account, or can’t afford potential 10 pip losses, then youmay want to consider a “mini” account. Most online brokers offermini trading accounts that you can open for as little as $300. Witha mini account you are trading lot sizes one-tenth of a regular lot(10,000 vs. 100,000), with risk being one-tenth as well as yourrewards one-tenth. Trading a mini account means that 1 pipequals roughly $1. If this is the only way you can afford to starttrading then open a mini account. Remember, as your accountquickly grows you can trade multiple mini lots, and trading tenmini lots is the same as trading one regular lot. You could open amini account with say $300 and experience 100% to 200% gainsin your first month, quickly building your account to be able totrade larger lot sizes.eBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.comDuplication and distribution of this material is strictly forbidden8Please remember to exercise good equity management in all yourtrades, never risking more than 2% of your margin account on anysingle trade, however if you have a small mini account you maybend this rule to 5%. For example, if you have $300 in youraccount, 2% is $6, equal to 6 pips loss. Realistically you need tobe prepared to suffer 10 pip losses with this system, so obviouslyyour risk per trade has to be a bit higher than professional traderswould normally employ. Once you get your account to $600 ormore then definitely limit your risk to only 2% of your marginaccount on any single trade. Don’t be greedy and you’ll survive afew losses to continue your gains. Please don’t trade money youcan’t afford to loose.If you need more explanations about any of the above then simplysurf the web a little, particularly looking at online Forex brokerswebsites as there you should be able to learn more about thebasics of how currency pairs work, or enroll in a good Forextraining program to make sure you understand all this. I havealso included valuable bonus you can download from theResources website (see Appendix A) that gives you a lot of Forextraining, and should answer your questions (I’ve had over $10,000worth of Forex training and can say with knowledge that theresources I’ve provided you there will teach you everything youneed to know).A couple more things before we continue with explaining thisamazing trading system. You should have the following threethings already set up. (1) An actual trading account with realmoney in it, (2) a demo trading account with fake money in it, and(3) access to charts. I would personally recommend opening upan account with one of my recommended brokers (listed in theResources Section – see Appendix A), however any of the othermajor brokers may do, or whatever favorite you have. (Important – ineBook 1 “Amazing FOREX System” - © 2004 Robert Borowski – www.AmazingForexSystem.comDuplication and distribution of this material is strictly forbidden9the Resources Section I explain certain important criteria to evaluate your broker to see whetherthey’ll be good to use in conjunction with this system. It is preferable though to use one of therecommended brokers) They will also provide you free charts that will bemore than good enough for the purposes of this strategy. Youdon’t need expensive charts; the free ones really are all you need.It is best to use charts provided by your broker as the Forexmarket is decentralized and the trading rates differ slightly frombroker to broker, and for this strategy you need accurate pricesbased on your broker’s dealing rates to succeed.There is a special member’s only section on my website that haslinks to all the resources you will need to work with this program,including where to get accounts and charts. (See Appendix A)Before you commit any real money to trading this strategy youshould practice it for at least ten successful trades to make sureyou understand everything perfectly. Go to a broker website andregister for a free demo account, preferably with the company youactually use or plan to use for your real trades. You can registerfor a regular demo account if you plan to trade regular lots asexplained above, or register for a mini demo account if you plan tostart with a mini account. In your demo account you can practicemaking trades in real-time without worrying about losing any realmoney.Make sure to play around with making trades in your demoaccount, don’t worry about making losses, just practice enteringtrades to get familiar with the steps to entering a trade. You don’twant to miss out on a great trading opportunity because you don’tknow how to enter a trade. Also play around getting familiar withyour charts. I will explain shortly how you will use them.