Introduction

In this report I will share several killer forex secrets that will hopefully open your eyes to the world of trading the forex… but first I have to tell you exactly WHY I have prepared this report for you. (Even if you only have 20 minutes a day you can learn how to trade the forex market, or any other market that you so choose.)

In this world that we live in there is so much hype floating around. I wrote this report to dispel the hype around the forex market and trading in general.

You see there are specific methods that the a handful of the professional trader's, money manager's, CTA's(Commodity Trading Advisor), hedge fund manager's, central banks and large institutions have been using for years. They realize one important truth that most people can clearly see in hindsight, but very few can see in the present moment.

What is it? Keep reading.

I am going to be blunt here, because I am more than a little bit ticked off…

The Big Lie…

There is a lot of misinformation out there about the OTC Currency Market A.K.A spot Forex market (spot simply means the current price, which differs from the futures market). I know because over the past year and a half I have seen several self-proclaimed gurus pop up with the greatest and latest quick fix to all of your trading problems/Investing problems. Over this period of time I have had an opportunity to talk to many traders who have had the wool pulled over their eyes when it comes to this topic.

They told me what their problems are. What their questions are. And they told me exactly what was holding them back from being consistently successful traders. You wouldn't believe how many people have a misguided perception of the forex market.

And the amazing thing is - even though you have probably been told otherwise, the solution is not very complicated.

Even if you only have 20 minutes a day you can learn how to trade the markets and manage your own wealth and destiny.

Why is this important? Because no stock broker or financial advisor cares about your hard earned money like you do. The best part of all, you don't have to quite your full time job or change your profession to do it (of course you may want to after you learn what I am going to share with you).

Which is GOOD – I like to keep things simple and to the point. I like to find a formula that works and I like to apply that formula over and over. I figure if I find something that's working, I just need to find a way to use that formula more often. That is exactly what the world's wealthiest individuals and families have been doing for eons. The best fund mangers and professional CTA's have been using the same trading methods for years. They don't change their methods. Ask John W. Henry, Paul Tudor Jones, Bill Dunn, or Ed Seykota (legendary traders) if they have had to change their methods up every year to remain consistent and successful. The answer will be a resounding no!

Albert Einstein even said that it is insanity to do the same thing over and over again and expect a different result. In trading, our goal is not to get extremely different results all of the time. We want consistent results and that is why when we find something that works we stick to it.

But That's Not What You've Been Taught…

This is the part that makes me mad… when I asked traders about their problems, I kept hearing a few common refrains:

"I will never be as good at fundamental trading as Guru X or Guru Y"

Of course, they didn't really say "Guru X" or "Guru Y". They gave me actual names—but I went ahead and changed the names to protect the guilty.

That's what makes me really mad. There are people running around trying to make trading look a lot harder than it really is. There are various reasons for this, but the bottom line is that they all have a vested interest in making trading look difficult. The truth is that many of them are not even real trader's. They are con artist repackaging something they learned from the con artist before them. If you ask them for a track record they get mad and tell you they don't have to show you a track record and that you should just trust them or don't do business with them.

I don't know about you but when I choose someone to do business with I want someone who has proven results. No offense but when I want to sell a house I don't go to the realtor who is driving a busted up Jalopy. I go to the realtor who has their bill board all over the city and who's biggest dilemma when they get up in the morning is, "Do I drive the Beamer or the Mercedes today". I want someone who has a track record for selling a lot of houses. Why should it be any different when we are going to someone to look for a trading education or advise?

Don't misunderstand me—I am not saying that it isn't difficult. What I am saying is that it doesn't have to be as difficult as some people make it out to be.

On the other hand there are some that make it seem simpler than it really is. This is sad because I have talked to traders that have blown out their accounts following some of these "no lose" strategies.

I have good news for you! Trading the markets is a science that you can understand. Once you do you can make dump truck loads of money.

"So What About Those Mystic Gurus?"

If you have studied the markets at all, you probably know what I mean when I say "Mystic Guru." These are the people who try their hardest to create a false impression that you need some "black magic" skills to be a good trader.

They would have you believe they are like some modern day alchemist that can turn lead into gold. But instead they are using formulas and strategies that "they" have just so happened to stumble upon.

Well, here is the thing—they are almost half right. Because once you learn how this whole trading thing works, then you can literally sit down at your computer, pull up your dealing station and charts and watch those pips turn into big time cash. If it ever clicks for you, you will absolutely turn your trades into money.

But here is the LIE...

You don't have to be a super human to get great results in your trading. You don't need to be a "Mystic Guru." You don't have to go on a trek to some distant mountain top and worship some arcane trading god.

This isn't some crazy magic trick.

I know it may sound like magic that you could sit down at your computer, execute the right trades and then have mountains of cash come flying into your brokerage account... but there isn't any magic involved.

Sure, it sounds like magic.. and those Mystic Gurus would love you to believe that it's magic (and, of course, they are the only ones that know the magic spell), but the reality is that trading is just a skill. You just need to learn how to do it and then apply what you have learned correctly.

What do you really need to be successful?

I have compiled a list for you of some of the things that you need to become a successful trader. Some of these are things that only you can make happen and others can be learned. Here they are:

1. Teachable - To be a success at anything you do you need the right teacher and you need to be teachable. Once you find the right teacher you need to be like a sponge. You need to ask as many questions as it takes and you need to follow what they teach you to a tee. If you do that you will be way ahead in becoming a success.
2. Keep it simple - A good trading method must be simple. Over time most complicated systems have failed miserably. Take LTCM (Long Term Capital Management) for example. They had some of the most brilliant people creating their trading methods. They were very complicated algorithms and in the end they failed miserably to the tune of $1.9 billion. Simplicity almost always wins in the end. The great traders of our time for the most part do not have complicated trading methodologies. They are simple and easy to follow.
3. Specific Rules - You must have specific rules and you must follow them to the tee. There can be no excuses and no deviations from this point. There can be no room left for discretion or chance. You need to have rules when it comes to money management and trading methodology. They have to be strict and exact. Following are four things that every good trading system is made up of.
4. Proper Setup Conditions - A good system always gives you very simple setup requirements. You should be able to get to the point that you scan a chart for 30 seconds and know exactly whether or not there is an opportunity or not. The requirements are generally expressed in terms of price action relative to your specific indicators. You should have a system that weeds out all low probability trades and captures all high probability trades.
5. Exact Entry Signals - After you have determined a high probability setup you need to have specific entry rules for entering a position. For instance, how much, at what price, is it a buy or sell. In other words, what will trigger the trade and which direction will it be made in.
6. Trading Forex is a skill YOU CAN MASTER
   Exact Stop Rules - Stops are the most important when it comes to your trading. The reason is very simple, they get you out of the market when the trade setup fails. I have had traders write to me telling me horror stories of not using stops and having their entire capital wiped out from evening to morning. It was ignorance and improper training that brought those terrible situations about. Risk management is by far one of the most important factors in your trading success. Too much risk can wipe your account out in a short period of time. Too little risk, can cause you to miss out on huge profit opportunities. It is a fine line. That is why you must have exact stop loss and risk management rules.
7. Profit Protection and Exit Strategy - Let's face it, nothing good in this world lasts forever. Markets don't move in the same direction forever, if they did there would be no market. That is why it is also equally important to have proper profit protection and exit strategies when it comes to your trade or investment. We have seen many sad examples of why this is so important in recent years. Take Enron for example. Many employees invested in Enron and were made millionaires on paper because of it. However, when the poop hit the fan, almost none of them had an exit strategy. As a result, the majority of Enron employee's were left with nothing but a piece of paper that had less value then a latte at Starbucks. There entire life savings were wiped out. You need a system that has profit protection and proper exit strategies so you can get out when it is time to get out.

If I Can Do It…

I now make a not-so-small fortune from my trading—both trading my own money as well as that of my clients. HOWEVER, it hasn't always been this way for me. And that's why I know this is a skill YOU CAN MASTER.

I know this because until about 5 years ago I had never heard of Forex trading. I first heard about it from my next door neighbor, who prior to trading had owned and operated a very large repossession service. He had stumbled upon the Forex market about 3 years earlier and after two years handed his business over to someone and began trading full time.

This fascinated me, because I had been very successful in my mortgage business but was looking for something else to get involved in. At this point I had my mortgage business on auto pilot so I decided to go for it. The first seminar I attended I spent $5,500 and learned a lot of good information that I thought was a sure deal (Not Red Light Green Light either).

I took what I had learned and began to apply it. Do you know what happened next? I lost, I lost, and then I lost some more. By the way did I mention I lost? It seems rather funny now but at the time it wasn't very funny. This cycle went on for the next year and a half, during which time I spent a small fortune on education and research. I was determined not to give up though.

Then one day I just happened to run into a friend I hadn't seen in a long time and I proceeded to tell him what I had been doing. Now for 20 years my friend was an investment banker in Switzerland so naturally I asked if there was any insight he could give me.

Before I go any further I want you to understand that he was an investment banker, not a trader. I want you to understand this because I don't want you to get the idea that I got mentored and trained by some trading guru and all of the sudden things turned around for me. I have had a couple of great mentors who without, I would not be where I am today. So I am not knocking mentorship, I just want to be clear on this so you don't miss what I am about to say.

So my friend said 6 words that absolutely changed the way I traded. He said, "The banks are stealing your money." These words absolutely blew me away. I was dumbfounded. I had never seen my losses from this perspective before. I dug deeper. I asked him "how are the banks doing it?" His response was even more shocking. He said, "They know what you don't."

From that point forward I began to try to understand how the "big boys" trade. I knew that if I could understand how they trade I could piggy back onto their trades. For the next 6 months this is what I gave myself to. And guess what? It began to work.

I have always been a bit obsessive when I go about learning things, and this was right up my alley. I poured myself into studying the way successful bank, hedge funds, CTA's, and professional traders trade. I went through the Market Wizard's books and tape series and I started doing research on the trader's who had remained successful and try to find out as much information as I could about their methods. The I started researching the CTA databases and performance indexes to find the ones who consistently beat the markets. I tried to contact many of them. Most wouldn't talk with me but a few did. I started putting the pieces of the puzzle together. I read about the Turtle Trader's and about their methodology. I learned about CTA's like Bill Dunn, John W. Henry, and Ed Seykota and it finally clicked. Almost all of the greats who had consistently out beaten the markets year after year for 20+ years all had one thing in common. Their systems/trading methodologies were all very similar. They all had one thing in common. They operated off of the belief that markets trend. None of them created the trends, they simply followed them.

I have had the privilege of meeting some of the great traders of our day.

I don't tell you this to brag—the reason I tell you this is because I am about to break all the rules with this report—and I just want you to understand that I know what I am talking about…

OK, First The Good News...

If you haven't already figured this out there is a boat load of money to be made in the markets.

I am talking about an INSANE amount of money. More money than you can possibly imagine.

Good trading skills have the power to completely transform your life. There is a proverb that says, "Money solves almost all things." Let's just cut to the chase… you are reading this report because you want to make more money in your trading. Money doesn't give you eternal bliss, but it sure does make you a whole lot more comfortable in the nasty now and now.

If you have been trading poorly, turning that around will absolutely help you with many other things in life. For instance, if you have ever had a bad trading day or experienced a bad year in the markets you know that your attitude can suddenly change. Before long your whole day is ruined. When I first started I didn't just have a bad trading day I had a bad trading year. I walked around with a chip on my shoulder for months. My wife and kids tried to stay as far away from me as possible.

Needless to say I have learned a lot about myself by trading. I would like to think that I am not only a whole lot richer because my attitude has changed but I am also a better person. Okay, we'll save the trading psychology for another report.

The bottom line is this… if you have the power to trade profitably, you can start to understand just how powerful this position is. When I came to this conclusion it changed my life.

Watch Out For The "Mystic Gurus"… And The Posers!

With all the money riding on good trading skills, is it any wonder that there is a huge mystique around it? And a HUGE amount of misinformation?

"Beware of The Wizard."

By that, I mean you really have to watch out WHO you learn from. If you are going to spend your time and money to learn a skill, you have to make sure that the person you are learning from is teaching from EXPERIENCE.

You also have to make sure they have the skill to teach what they do. There are some folks who are great traders, but they don't have a clue how to share that skill in a way that anyone can understand.

Even worse are those gurus who conspire to keep you begging for table scraps.

These are those Mystic Gurus who would have you believe that trading is black magic or that you have to have a degree in economics, or have had to work for a bank for 20 years. Nonsense.

The results may LOOK like magic, but successful trading is a skill, and it is a skill that you can learn.

In fact, it's...

The One Skill That You Absolutely Need...

Here is the thing—no matter where you are in your life, the ability to manage your own financial future and destiny is the one skill that you absolutely need.

And it's the one skill that you really shouldn't avoid acquiring.

Most likely you didn't come from an extensive investment banking background, and you are probably not going to get mentored by legendary hedge fund manager George Soros.
You probably don't have the kind of money it takes to hire a dozen analysts and two dozen traders. By the way, you don't have to in order to be successful. There are multi hundred million dollar funds run by only three or four people.

Even if you do have a good mentor they are not going to baby sit you and you can't always depend on their analysis to be right.

The truth is, you will never have all of the information and know exactly why a market is moving. There are powers that be and things that make the world go around that you and I will never know. There are employment reports and interest rates and foreign stock markets and on and on. The big players who have hundreds and thousands of analysts to scour over this information know, but you and I never will.

This is why you need to know how to use the information without knowing all of the information. This information is called Chaos. Chaos is what causes the markets to move. More on this later.

I've Been There Too...

No matter what your trading skills, I have been there too…

 

Like I said before, five years ago I had never heard of Forex trading before. So if you are a newbie with Forex trading, I can vividly remember what it was like… all very confusing at first.

But then I remember that incredible feeling of power when I began to have consistent winning trades. It was like I had the keys to the kingdom at last.

I had just learned a skill that enabled me to generate cash and lots of it.

You can learn this skill just as easily as I did. And you can feel that same incredible power when you learn how to have consistent winning trades.

Street Cred...

People who know me and can see the kind of success I have had are constantly asking me to teach them how to trade. Up until now my response has been to give them resources to learn to trade.

The reason is twofold. One: I don't like sharing information with just everyone because not everyone will do what you say to do. They think you are going to give them some magic potion and fix all of their problems. They have what I call the Holy Grail Syndrome. It has cost me a lot of time, energy, money, time away from my family and sleepless nights to learn what I have learned, therefore it is precious to me. Two: I had to absolutely make sure that what I have works if you apply yourself. And it does.

Of course if I had stayed at the newbie level then you wouldn't be reading this report right now.

But I didn't—I kept at it, working at putting my strategies into use and studying… and now I have more people asking me to mentor them than I could possibly have enough time for.

Now you may think this is a remarkable story to go from beginner to near the top of the heap in such a short period of time… but that's not really what this report is about.

My goal here is to convince you that becoming the master of your financial future is something that you need to implement into your life, and it's something well within your grasp.

And I am going to do that by sharing a bunch of killer secrets that are going to give you the jump-start that you need.

Here We Go, The Pro's Secrets You Haven't Been Told…

Secret #1: The Forex market can be moved by big traders

Here is the deal—I have heard over and over again that the Forex market cannot be moved by any one trader. That is only half of the truth. The argument is that because the Forex market has such a high daily volume that it is not as easily moved by big traders. That is not true. You see most of the Big Trader's are getting the same information. They know the fundamentals that you don't and they have inside information so to speak. So when something big happens or is going to happen they all go in the same direction.

The main argument is that the forex market has such a high daily volume that it can't be moved very easily. Not true. The thing that they don't tell you is that the high daily volume takes into account every tradable currency. The last time I checked you don't trade every tradable currency at one time, so the number of $1.9 or $2.1 trillion per day is really irrelevant.

What you need to pay close attention to are the currencies that have good liquidity. This includes every dollar pair, the EURJPY and the GBPJPY and some others. These are the highest volume currency pairs there are.

The big boys look for the high liquidity pairs because there is a lot of volume or action in these markets. That means that there is a lot of money to be made. You have to understand that for every dollar won in the market there is a dollar lost. Trading is often called the Zero-Sum game. In other words for every seller there must be a buyer. So if you make $100,000 someone else or others had to lose $100,000. The key is to ride on the coattails of the Big Boy's that have all of the information and create the trends.

Secret #2: Technical Analysis Does Not Work

Does this surprise you? Well it is true. Technical analysis does not work. Here is the short version of why that is true.

First of all Technical analysis attempts to predict future price movements based upon past information. The last time I checked I still haven't met the person that can predict the future. If you met someone on the street, and they told you they could predict the future and that something bad was going to happen to you in the next 24 hours, would you believe them? Anyone with even the tiniest fraction of common sense wouldn't give that person the time of day much less believe them. If you meet the person that can predict the future and be right 50% of their time please introduce me to them so I can be a Gazillionaire too.

In trading and asset management all that matters is the present. The past does not matter and the future does not matter. I don't care where price has been nor do I care exactly where it is going to go. I only want to be on the right side of price in the present moment.

I once fell prey to this trap. Early on in my career as a trader I thought that my bad trading was a result of not having the right technical analysis approach so I was constantly changing my approach. This didn't work.

Technical analysis has nothing to do with why the markets behave the way they do.  Markets behave the way they do because of people. People make up the markets. Here is the thing about people. They very rarely change. You need an approach that takes this underlying fact into account.

Secret #3: You can outperform the markets on a consistent basis

OK, I think I may have lost some of you here. For most traders this is the exact opposite of their normal routine. Here us a very interesting statistic: Only 10-15% of traders outperform the markets for 1 year. The second year the number drops to 2-5%. Why is that?

• People don't want to change.
• People change too often.

What do I mean by this. It's simple. People don't want to change. They don't want to change their bad habits, wrong methods, or improper attitudes so they lose. The ones that win at first think they can improve by changing to something better, only to find out that what they had worked. It also means that some people just got plain lucky but they really didn't have a proper plan.

Below are a few charts showing just some of the CTA's and fund managers that have outperformed the markets year after year.

Secret #4: You can capture 300-1000 pips in a matter of weeks

I will tell you that there is an emotional excitement when people talk about day trading. There is a status about saying that you day trade. Let me tell you though day trading is one of the hardest things to do. You have to be there all day. I day trade and I teach day trading using the same methods that I use for Position trading, but I will tell you it is much easier to position trade and do it for 20 minutes a day.

I have captured 2 charts below. Which one looks like the better chart?

                                  
Both charts look pretty similar right? The trend is up on both would you agree. The difference is that one is a 5 minute chart spanning only about 40 pips and the other is a Day chart spanning about 1200 pips. What if you knew how to capture the majority of a 1200 pip move?

Most people can't and won't simple because their understanding of risk is backwards. Most new traders think that it is more beneficial and less risky for them to be in and out of the markets. This is totally wrong. For one the more trades you make the more opportunity for failed trades and mistakes. Secondly the higher your trade count is the more your transaction costs rise. This alone can eat up your profits unless you are very efficient. New traders are prone to mistakes and they are clumsy which means they are not going to be efficient.

They also believe that being in a trade overnight means more opportunity for risk. The simple solution to easing that fear is to define your risk. You can't just guess where your risk is after you decide to make a trade. You have to know exactly where it is before you ever enter that trade.

Secret #5: You don't have to have a Master's degree in economics or have had to work for a bank for 20 years to trade successfully.

This is what the "Mystic Gurus" would want you to think… but it is just not the truth. Once the big picture clicks in your mind you can begin to pick out the finest trades in that big picture. This is how an understanding of the markets begins.

It is like laying a foundation. Understanding the underlying structure of the markets is the foundation that every professional trader has. If you don't even have the foundation laid and you are trying to build the finished product, how can you expect to be successful?

The bottom line is this… I don't have a Master's degree in economics, and although I do have some financial background from my previous career, I haven't worked for a bank for 20 years as a trader and yet I still have managed a way to understand how this works.

You have to get rid of the preconceived idea that this is impossible for you to understand. Let me give you a golden nugget… think you can, think you can't, you're right either way.
What you need to do is find the right mentor and the right system before you waste a lot of money and a lot of time. That is what I did. I studied the people who were accomplishing the results I wanted to accomplish.

It's not rocket science. If you can read you can do this.

Secret #6: You don't have to be able to withstand big down draws in your account in order to trade like the Big Boys

This is the most absurd lie I have heard yet. It comes from people that don't know how to trade and don't know how the Pro's Trade. Most professional traders and institutions are conservative when it comes to losing money. They just don't like to do it. Do you?

The answer is no, of course. No one likes to lose money. There is something built into our DNA that equates losing large amounts of money to the same pain as getting hit in the head with a frying pan but worse.

With that said many institutional traders get fired if they have more than a 5% down draw in their account. Does this shock you? Well it is the truth. Why do you think they have so much money to trade with? Because they don't lose. They steadily build equity and it makes them very, very rich. Listen, they have been in this game for a long time. Remember this was their playground for years before it was ever made available to the speculative trader.

I personally have a threshold of 10% in any given month. Now some of you are sitting in your chair reading this saying "Well if what you have works so good, then why would you even have a 10% drawdown?" First and foremost my money management is so precise and simple that all I have to do is adjust the numbers and I can change that 10% to just about any number I want. Secondly, losing is a part of trading. If someone tells you they never have a losing trade they are either lying or they have been trading for two days. The truth is the size of the drawdown you are willing to withstand is relevant to the amount of profits you want to capture. There is a cutoff point where the risk becomes unbalanced but that is not easily reached.

Secret #7: 80% of the profits made in this market are made only 20% of the time

Why is it that so many traders think they have to trade all of the time? It is a proven fact that the above statistic is true. Ask any trader who knows anything and they will tell you that.

The "Big Boys" love to steal the small traders' money when the market is in the range. The fact is it is in the range 70-80% of the time. This is easy for the banks and nig players to do because they all do the same thing at the same time. Trading in the range means that the market stays within a tight price range for a given period of time without any major longer term runs.

For example if the euro trades between 1.2400 and 1.2700 for 2 months it would be in the range. Contrary to popular belief among some fundamental traders, this is not when the most money is made. The money is made when due to key fundamental changes the market breaks out of this range. When it does this you will see 600-1000 pip moves in a very short period of time.

Big trends are where the big money is captured without a doubt. You need to have a trend following approach.

Secret #8: Stand on the shoulders of giants

This is the one secret I have learned in my trading career that has made everything else pale in comparison.

Simply put, you don't need to re-invent the wheel.

You don't need to start from scratch every time you sit down at your desk to trade. If you were going to build a car, then you would study the cars of the past. You would probably look to some experts that could teach you the lessons they have learned over the years about building cars.

Trading is no different. It's been around for a long time, and lots of really smart people have spent a lot of time testing, tweaking and perfecting their trading. This is an immense resource for anyone who wants to trade profitably. If you want your trading to work, don't try to make it happen from scratch… look at what has worked in the past.

Use that as a starting point and a model for your trading… and you will be on your way to trading profitably.

Secondly standing on the shoulders of giant's means following the market when it is moving, because that is when the big players are changing and making decisions. You want to ride on their coat tails. Don't try to beat them.

Secret #9: Get a mentor

Okay, this last secret may be the toughest to actually follow through on… which is why I left it for last. Nevertheless, if you can pull this off, then you are on the path to trading success. If you can find a mentor, someone that can show you the ropes in your trading, well… that's the ticket. As I mentioned above, you don't want to re-invent the wheel. You want to be able to leverage all the great trading talent and skills that have come before you. The easiest way is to learn from someone else who has been there and already made the mistakes and figured out the important lessons. That being said, it can be difficult to find someone who will show you the ropes, give you shortcuts, and help you avoid the mistakes. You want someone who has been down that road and already MADE THOSE MISTAKES FOR YOU.

Trade More Profitably, More Often...

I have a feeling I may have made some enemies with this report. I hope not—you see, most of those "Mystic Guru" traders are actually pretty nice guys. I think they just tend to get caught up in their own image. Maybe they start believing their own PR.

Hopefully they understand where I am coming from with this report and I won't make too many enemies… it's just that after I heard all those questions that people were asking me about forex trading, well I just had to get this material off my chest. Obviously this report is more of an "exposé" than an end-to-end guide. My goal was to open your eyes and clear up a lot of the misconceptions about forex trading.

In response to many of my students I decided to make a complete community blog about investing your money in the forex market.

This blog has a tremendous amount of FREE information that will open your eyes up to the world of trading. It is complete with lessons, video tutorials, Special Reports and step-by-step instructions on how to put a proven and tested methodology to work for you.
The learning experience on my site is I believe the best available anywhere. You can sign up for my free membership by going to:

www.4xEducator.com

That's it for now… now it's time for you to get to work on some Forex trading that really works!

To Your Success,