The Day Trade Forex System:

The ULTIMATE Step-By-Step Guide to Onine

!urren"y Tradin#
$%o& 'ou !an Earn ()* to ()** A Day !urren"y Tradin#
From The !om+ort o+ 'our O&n %ome,-
By Ero Bortu"ene and !ynthia Ma"y
.IS/S DIS!LAIME.
Erol Bortucene/Cynthia Macy, Owners of DayTradeForex.com and any of their affiliates, will not be held resonsible for
the reliability or accuracy of the information a!ailable in this document. The "ontent pro0ided is put +or&ard in #ood
+aith and 1eie0ed to 1e a""urate2 ho&e0er2 there are no expi"it or impi"it &arranties o+ a""ura"y or #uarantees
that the readers o+ this "ourse &i ma3e pro+its tradin# !urren"ies4 The reader a#rees not to hod Ero Bortu"ene
or !ynthia Ma"y2 or any o+ its a++iiates2 ia1e +or de"isions that are 1ased on in+ormation +rom The Day Trade
Forex System4
Mar"ined Currency Tradin" is an extremely ris#y form of in!estment and is only suitable for indi!iduals and institutions
caable of handlin" the otential losses it entails. The funds in an account that is tradin" at maximum le!era"e may be
comletely lost if the osition$s% held in the account exeriences one ercent swin" in !alue. &i!en the ossibility of
losin" one's entire in!estment, seculation in the forei"n exchan"e mar#et should only be conducted with ris# caital
funds that, if lost, will not si"nificantly affect the in!estor(s financial well)bein". There is no "uarantee that readers of this
document or our websites will ma#e money. *eaders use the information and lin#s entirely at their own ris#. Erol
Bortucene/Cynthia Macy owners of DayTradeForex.com do not accet any liability in resect of any loss or dama"e
arisin" from or in connection with any use of the information on or accessed throu"h this document or our comany
websites. +ll intellectual roerty ri"hts in this reort remain the roerty of DayTradeForex.com
, -..-, -../ Coyri"ht DayTradeForex.com
5 6**7 !opyri#ht DayTradeForex4"om
A .i#hts .eser0ed4 8o 9art o+ this pu1i"ation may 1e reprodu"ed or transmitted in any +orm or 1y any means2
ee"troni"2 me"hani"a2 re"ordin# or other&ise &ithout the prior permission o+ DayTradeForex4"om
1
The Day Trade Forex System:
The ULTIMATE Step-By-Step Guide to Onine
!urren"y Tradin#
$%o& 'ou !an Earn ()* to ()** A Day !urren"y Tradin#
From The !om+ort o+ 'our O&n %ome,-
Did you #now that more and more business oortunity see#ers worldwide are
disco!erin" the po&er+u pro+it potentia of Forei"n Exchan"e tradin"0 1n this
business, there are no emloyees to hire, no ad!ertisin", no roducts to stoc#,
no downlines to fill))2ust you, an 1nternet connection and a comuter. That's all
you need to ma#e money on the worlds lar"est mar#et. 1f you are searchin" for
an alternati!e to more traditional home)based business oortunities, then Forex
tradin" may be what you(!e been loo#in" for.
Our urose is to emower, mentor and train currency traders all around the
world who would li#e to Day Trade Forex as their main source of income. For
those loo#in" for a si"nificant art)time income, we belie!e Currency Tradin" is
the !ehicle to use. Our aim is to assist you to3
1. 4tay Dis"ipined5To learn how to mana"e ris# effecti!ely.
2. 6ee O1:e"ti0e5To trade in a non)emotional, intelli"ent way.
3. Trade with !on+iden"e5To #now exactly when to trade.
4. Become Systemati"5To "enerate your own Forex buy/sell si"nals.
The "oal is to earn ()* to ()** per trade and minimi7e losses on losin" trades
usin" technical indicators on charts, which 1 will exlain later on in this course.
The otential to rofit is there for those who trade this system. The "reat thin"
about Forex tradin" is that you can test this system for F*EE on a demo account
usin" !irtual money, before you ris# one enny on actual trades.
8ou will be able to 2oin my team of traders as you ad!ance ste)by)ste throu"h
this "uide. 9e will be"in by exlainin" what Forex is and all the benefits of
tradin" currencies
2
;%AT IS FO.E<
The Forei"n Exchan"e, also referred to as the :Forex: or :4ot F;: mar#et, is
the lar"est financial mar#et in the world, with o!er <=.- trillion chan"in" hands
e!ery sin"le day. 1f you comare that to the <-> billion a day !olume that the
?ew 8or# 4toc# Exchan"e trades, you see how "iant the Forei"n Exchan"e
really is. 1n fact it is three times lar"er than all of the @4 EAuity and Treasury
mar#ets combinedB
9hat is traded on the Forei"n Exchan"e0 The answer is money. Forex tradin"
is where the currency of one nation is traded for that of another. Therefore,
Forex tradin" is always traded in airs. The most commonly traded currency
airs are traded a"ainst the @4 Dollar $@4D%. They are called Cthe Ma2ors'. The
ma2or currency airs are the Euro Dollar $E@*/@4D%D the British Eound
$&BE/@4D%D the Faanese 8en $@4D/FE8%D and the 4wiss Franc $@4D/CGF%.
The notable Ccommodity( currency airs that trade are the Canadian Dollar
$@4D/C+D% and the +ustralian Dollar +@D/@4D. Because there is not a central
exchan"e for the Forex mar#et, these airs and their crosses are traded o!er the
telehone and online throu"h a "lobal networ# of ban#s, multinational
cororations, imorters and exorters, bro#ers and currency traders.
Traditionally, currency tradin" has been a 'rofessionals only' mar#et a!ailable
exclusi!ely to ban#s and lar"e institutions, howe!er, because of the rise of the
new E)economy, online Forex tradin" firms are now able to offer tradin"
accounts to 'retail' traders li#e you and 1. ?ow almost anyone with a comuter
and an 1nternet connection can trade currencies 2ust li#e the world's lar"est
ban#s do. There are now o!er H million tradin" accounts worldwide u from =.I
million in =JJI.
BE8EFITS OF FO.E< T.ADI8G
There are many benefits and ad!anta"es to tradin" Forex. Gere are 2ust a few
reasons why so many eole are choosin" this mar#et as a business
oortunity3
=4LE>E.AGE: 1n Forex tradin", a small mar"in deosit can control a much
lar"er total contract !alue. Ke!era"e "i!es the trader the ability to ma#e
extraordinary rofits and at the same time #ee ris# caital to a minimum. 4ome
Forex firms offer -.. to = le!era"e, which means that a <>. dollar mar"in
deosit would enable a trader to buy or sell <=.,... worth of currencies.
4imilarly, with <>.. dollars, one could trade with <=..,... dollars and so on.
64LI?UIDIT': Because the Forex Mar#et is so lar"e, it is also extremely liAuid.
This means that with a clic# of a mouse you can instantaneously buy and sell at
3
will. 8ou are ne!er 'stuc#' in a trade. 8ou can e!en set the online tradin"
latform to automatically close your osition at your desired rofit le!el $limit
order%, and/or close a trade if a trade is "oin" a"ainst you $sto order%.
749.OFIT I8 BOT% @.ISI8G@ A8D @FALLI8G@ MA./ETS: On the stoc#
mar#ets, you can only ma#e money if shares are risin", but in economic
recession and fallin" 'bear' mar#ets, there is little chance of ma#in" bi" money.
Forex is different. One of the most excitin" ad!anta"es of F; tradin" is the ability
to "enerate rofits whether a currency air is 'u' or 'down'. + trader can rofit
by ta#in" a 'lon"' osition, $buyin" the currency air at one rice and sellin" it
later at a hi"her rice%, or a 'short' osition, $sellin" the currency air and buyin"
it bac# at a lower rice%. For examle, if you thin# the @4 dollar will increase in
!alue !s. the Faanese 8en then you will buy Dollars and sell 8en $"o lon"%. 1f
you thin# the 8en will increase in !alue a"ainst the Dollar then you will sell
Dollars and buy yen $"o short%. +s lon" as the trader ic#s the ri"ht direction, a
otential for rofit always exists.
A4 6A%.S: From 4unday e!enin" to Friday +fternoon E4T the Forex mar#et
ne!er slees. This is !ery desirable for those who want to trade on a art)time
basis, because you can choose when you want to trade))mornin", noon or ni"ht.
)4 F.EE @DEMO@ A!!OU8TS2 8E;S2 !%A.TS A8D A8AL'SIS: Most Online
Forex firms offer free 'Demo' accounts to ractice tradin", alon" with brea#in"
Forex news and chartin" ser!ices. These are !ery !aluable resources for traders
who would li#e to hone their tradin" s#ills with '!irtual' money before oenin" a
li!e tradin" account.
B4@MI8I@ T.ADI8G: One mi"ht thin# that "ettin" started as a currency trader
would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer
'mini' tradin" accounts with a minimum account deosit of only <-..)<>.. with
no commission tradin". This ma#es Forex much more accessible to the a!era"e
indi!idual, without lar"e, start)u caital.
4
The Day Trade Forex System
Foundations:
Before we be"in loo#in" at the secifics of the FE4 and how it wor#s, let(s loo# at
L buildin" bloc#s that 1 belie!e to be foundations to the Forex Erofit 4ystem.
Foundation C=: !urren"y Tradin# is not a Get-.i"h-
?ui"3 S"heme4
!urren"y tradin# is a S/ILL that ta3es TIME to earn4 4#illed Traders
can and do ma#e money in this field, howe!er li#e any other occuation or
career, success doesn(t 2ust haen o!erni"ht. Gere is a "reat Cformula(
for success3
9ra"ti"e D 9atien"e D 9ersisten"e E 9ro+its
+s they say, there is no substitute for hard wor# and dili"ence. Eractice
tradin" on a demo account and retend the !irtual money is your own real
money. Do not open a i0e tradin# a""ount unti you are pro+ita1e
tradin# on a demo a""ount4 4tic# to the lan and you can be
successful.
Foundation C6: I hi#hy re"ommend that you +oo& = or
may1e 6 ma:or "urren"y pairs4
1t "ets far too comlicated to #ee tabs on all four. 1 also recommend that
traders choose one of the ma2ors because the sread is the best and they
are the most liAuid. The Euro/@4D is the most commonly traded air and
usually has the best Csread( because of its liAuidity. The @4D/4wiss Franc is
usually the most !olatile and mo!es the most durin" the tradin" wee#. The
@4D/8en mo!es a lot on the news out of Faan and normally the Eound
4terlin"/@4D is more stable in it(s mo!es than the other three.
5
Foundation C7: Foo& and understand the daiy Forex
8e&s and Anaysis o+ the pro+essiona "urren"y
anaysts4
E!en thou"h this system is based solely on technical analysis of charts, it is
imortant to "et a birds)eye !iew of the currency mar#ets and the news that
affects the rices. 1t is also imortant that you #now and understand what the
#ey technical Csuort( and Cresistance( le!els are in the currency air that you
want to trade. 4uort is a redicted le!el to buy $where currency air should
mo!e u on the charts%, resistance is a redicted le!el to sell $where the
currency air should mo!e down on the charts%.
Fortunately, all the best Forex news and analysis is offered free on the
1nternet. Gere is what you should do first3
*While you are reading the daily news and technical analysis, write
down on a piece of paper what direction the analysts are saying
about the major currency pair you are following and the key support
and resistance levels for the day.
A. &o to www.forexnews.com and you will find -Lhr news and analysis on
the sot F; mar#ets. The site will "i!e you the bi" icture of how the
economic calendar and central ban#s affect the currency mar#ets. +
"reat resource.

B. Then "o to www.fxstreet.com and clic# on the CTo Forex *eorts(. Gere
there is a wonderful listin" of all the ma2or daily currency analysis and
forecasts with suort and resistance and direction forecasts.
C. Clic# on www.currencyro.com and "o to CToday(s Mar#et *esearch( and
there you will find more excellent analysis on the Ma2or Currency airs.
+nother "reat Forex Eortal.
Foundation CA: Learn ho& to use the te"hni"a
indi"ators in this "ourse and a&ays trade &ith stop
osses,
1t is worth your time to be atient and learn how to use the technical
indicators on the charts that you will be readin" about shortly.
6
1t is imortant when you are tradin" Forex, to be discilined and to stic# to
a lan. Don(t 2ust trade your C"ut( feelin". @se the technical indicators
outlined and always enter in sto losses on e!ery trade. *emember that
e!eryone who trades has a different tolerance for losses. Deendin" on
your ris# caital, and strate"y, set your sto losses accordin"ly.
7
The Day Trade Forex System:
Six Steps to Su""ess
The "oal of this "uide is to instruct and teach otential traders how to day trade
the currency mar#ets. The ob2ecti!e of day tradin" is to trade the intra day
mar#et mo!es to try to "ain small to medium si7ed rofits in any "i!en tradin"
day. This is how this "uide will hel. Most readers will not ha!e the time or
resources to Cosition trade( li#e the ma2or institutions and ban#s do. They tend
to loo# at the bi" icture holdin" onto trades for wee#s or months.
The Forex 9ro+it System is spe"i+i"ay desi#ned +or use &ith the =2 ) or =*
minute "harts2 &ith the #oa o+ ta3in# )-6* pip pro+its per tradeF"osin#
1ad trades out usin# ti#ht stops2 or hed#in# any osin# trades4 The
+oo&in# steps &i sho& you ho& to do this4
Step =4 !hoose an onine Forex Firm
9hat to loo# for in an online Forex Firm3
=. Kow 4reads.
1n Forex Tradin" the Csread( is the difference between the buy and
sell rice of any "i!en currency air. The lower the sread sa!es
the trader money. Most firms offer L)> i sreads in the Ma2or
Currency airs. The best firms offer clients /)> is.
-. Kow minimum account oenin"s.
For those that are new to tradin", and for those that don(t ha!e
thousands of dollars in ris# caital to trade, bein" able to oen a
mini tradin" account with only <-.. is a "reat feature for new
traders.
/. 1nstant automatic execution of your orders.
This is !ery imortant when choosin" a Forex firm. 8ou want instant
execution of your orders and the rice you see and Cclic#( is the rice
that you should "et. Don(t settle with a firm that re)Auotes you when
you clic# on a rice or a firm that allows for rice Cslia"e(. This is
!ery imortant when tradin" for small rofits.
8
L. Free chartin" and technical analysis
8ou need a firm that "i!es you access to the best chartin" and technical
analysis a!ailable to acti!e traders. The firm that 1 recommend "i!es
clients F*EE rofessional chartin" ser!ices and e!en allows traders to
trade directly on the chartsB
>. Gi"h Ke!era"e
8ou want hi"h le!era"e5the ability to trade a lar"e amount with a small
mar"in deosit. 4ome of the best firms offer .->M or L..3= le!era"e.
H. Ged"in" Caability
8ou want the flexibility of oenin" ositions on the same currency air in
oosite directions without them eliminatin" each other and without
mar"in increaseB

Gere is a list of some of the main Forex tradin" Firms on the 1nternet. +fter a lot
of research and ersonal exerience, the firm that 1 recommend with the abo!e)
mentioned benefits is Caital Mar#ets 4er!ices KKC $CM4 Forex KKC%. 8ou can
research the rest of the firms listed to see for yourself.
NNCM4 Forex www.cms)forex.com
+CM +d!anced Currency Mar#ets
Fairlot Financial &rou
Forex Caital Mar#ets
&+1? Caital
&C1 Financial, Ktd.
&lobal Forex
1F; Mar#ets Kimited
Kondon Caital
Meridian Forex Ety Kimited
M& Financial &rou
4axoBan#
Tricom
9
Step 64 Open a G>isua Tradin#H Demo A""ount
The first ste to tradin" the currency mar#ets is to oen a demo account. 1t is
imortant that you learn how to buy and sell the currency airs, set sto losses,
set rofit limits, and understand how le!era"ed mar"in wor#s when you trade. 1
found the best way to learn this is by exerience.
To set u your F*EE chartin" from CM4, simly "o to their website and oen a
COisual Tradin"( Free demo account. The chartin" ac#a"e in this demo account
ri!als, any Forex Erofessional chartin" ser!ice and you will be able to set u the
technical indicators that will aid you in your tradin" decisions.
A. &o to htt3//www.cms)forex.com and clic# on the C4i"n @( tab and scroll
down to Oisual Tradin" Demo. Oen u a free demo account and you will
"et your lo" in information sent to your email address.
B. ?ow "o to the C4uort( Tab and scroll down to COisual Tradin" Manual(.
This manual will show you how the tradin" latform wor#s. 'ou &i need
to read this 1e+ore pro"eedin#. The better you #now your way around
this latform, the easier the next stes will be.
10
Step 7: Set up your "harts:
+. One the left hand side of screen you will be able to choose your chart.
Choose E@*/@4D $or whate!er currency air you li#e% , > min, line and
the chart will aear on the ri"ht hand side. Maximi7e the chart to fill the
ri"ht hand side.
8our chart should now loo# somethin" li#e this3
11
?ow if you want to ma#e the rice line dar#er, you can ri"ht clic# ri"ht on the
rice line and a roerties box will aear. 8ou can ad2ust the thic#ness of the
line. 1n this examle the rice line width is set it to -.
B. Before we add our studies to our charts, 1 would li#e you to "o to the
followin" lin#s. *ead how to trade the Earabolic 4+* here3
www.incrediblecharts.com/technical/arabolicPsar.htm
*ead about how to trade mo!in" a!era"e crosso!ers here3
www.incrediblecharts.com/technical/mo!in"Pa!era"esPthree.htm
*ead about how to trade Bollin"er Bands here3
www.incrediblecharts.com/technical/bollin"erPbands.htm
N9e will be "i!in" examles of how to aly these studies to day
tradin" Forex.
12
C. ?ow we will add the Mo!in" +!era"es to the chart. 9e will be usin" the
Exonential Mo!in" +!era"e =., the Bollin"er Band Exonential 4et at
-., and the Exonential Mo!in" +!era"e >..
Clic# on Mo0in# A0era#e on the left hand side under 4tudies. 4et
your first M+ to =*, close, exonential and you can ma#e it red with
line width - under the Color/4tyle Tab.
Clic# on Mo0in# A0era#e a"ain and add your M+ )*, close,
exonential and ma#e this line 1ue with line width -.
Gere is a shot of the Mo!in" +!era"e Eroerties window3
D. ?ow "o to the studies on the left hand side of your screen 4elect
Boin#er Bands and set them to -.,-, close exonential. Ma#e the
middle band "reen, line width -.
E. +dd 9ara1oi" SA. to your chart by selectin" it on the left and use the
default settin"s. Ma#e the dots dar#er, by selectin" line width -.
13
8our chart should now loo# li#e this3
8ou can 7oom in and out of your chart usin" the small buttons in the bottom ri"ht
hand side of your screen.
%o& To !han#e the !urren"y 9air and Time Frame3
On the bottom of your chart, you can chan"e the currency air and ri"ht beside
it, if you clic# on the button that says M> you can chan"e the time frame of the
chart. The studies will automatically be added to any new time frame and
currency air that you select.
%o& to Exit the >T 9at+orm 9ropery:
To exit the OT latform, clic# on F1KE and then E;1T. The studies that you
added to your chart will automatically be u the next time that you lo" in to your
account. Elease note that if you clic# x on the to left hand corner of your chart
you will close the chart and reset your settin"s that you added. 1f you want to
#ee your studies and charts intact you can minimi7e it or 2ust lea!e always
#ee it oen to #ee your settin"s sa!ed.
14
F. ?ow we will add 7 more indicators below the chart to hel us "on+irm the
trend, and to hel us identify exact entry and exit buy or sell si"nals. The
followin" indicators "i!e us insi"ht into the momentum, direction and
o!erbou"ht/sold indicators. @sed alon" with the Exonential Mo!in"
+!era"es, Earabolic 4+* and Bollin"er Bands5these indicators can be
!ery helful to the day trader.
MA!D %isto#ram4
*ead about how to trade the M+CD Gisto"ram here3
htt3//www.incrediblecharts.com/technical/macdPhisto"ram.htm
.eati0e Stren#th Index I.SIJ
*ead about how to trade the *41 here3
htt3//www.incrediblecharts.com/technical/relati!ePstren"thPindex.htm
So& Sto"hasti"

*ead about how to trade the 4low 4tochastic here3
htt3//www.incrediblecharts.com/technical/slowPstochastic.htm
?ow add these studies to your charts.
@nder 4tudies clic# on MA!D %isto#ram and use the default settin"s
$J,Exonential, =-, -H, Close, Exonential% and set the line width to -.
8our study will automatically oen under your chart.
@nder 4tudies clic# on .eati0e Stren#th Index and set it to =L and set
the line width to -. 8our study will automatically oen under your chart.
@nder 4tudies clic# on So& Sto"hasti" and set it to $>,/,/, Exonential%
and ma#e the M6 line blue with line width -, and the MD line red with line
width -.
8our chart, with all the studies on it should now loo# li#e this $examle of
@4D/C+D =. min chart%3 ?otice that 1 clic#ed on the 7oom in button a coule of
times on the bottom ri"ht hand corner to "et it to loo# li#e this.
15
Step A: %o& to Buy and Se the !urren"y 9airs
?ow that our charts are set u, let(s learn GO9 to oen and close a osition, or
buy and sell on the OT latform. +fter we learn GO9, we can loo# at 9GE? to
enter/exit a trade usin" the technical indicators. KK9ease note that this
in+ormation is in the >isua Tradin# Manua that you shoud ha0e aready
read4
A. 4imly mo!e your cursor to the chart and ri"ht clic#. + menu will o u
and at the to it will say 1uy with the current exchan"e rate to buy and
se with the current exchan"e rate to sell. 8ou should Buy if you thin# the
rice line will "o u on your chart or sell when you thin# the rate will dro
16
on the chart. Clic# on buy or sell and an COen Eositions( window will o
u that loo#s li#e this3
B. 1n the +mount er +cct3 box you ut in how many lots you will trade5= lot
is =..,... currency units.
Tradin" with = lot E@*/@4D is <=. rofit/loss er i
Tradin" with = lot &BE/@4D is <=. rofit/loss er i
Tradin" with = lot @4D/FE8 is <Q rofit/loss er i
Tradin" with = lot @4D/CGF is <H rofit/loss er i
Tradin" with - lots doubles the rofit/loss ossibility. Tradin" with .> of a lot
hal!es the rofit/loss ossibility. 9ith the CM4 uni!ersal account you can
trade full or artial lots from this window. 1f you ut in .= of a lot your
rofit/loss would be <= in the E@*/@4D etcR
C. The trade that you 2ust made will now show u directly on the chart. 1f you
ri"ht clic# your oen osition on the chart you can choose to add a 4to
rice and a Kimit rice, or you can hed"e your osition5which we will loo#
at later on.
Stop Order3 1s a rice you enter into an oen osition, where the tradin"
latform automatically closes your osition when the Exchan"e rate touches
that le!el. 1f you are in a winnin" trade, you can mo!e your sto u or down
17
to rotect rofits. 1f the exchan"e rate ne!er hits that le!el, then the Order
doesn(t "et filled.
NNtip3 1f you are in a winnin" trade, you can mo!e your sto to your entry
le!el, so that if your trade mo!es a"ainst you, the latform closes your
osition without any losses.
KKtip3 8ou should be comfortable settin" your sto Order at =>)-. is. 1f
you can(t handle a =>)-. i loss, then you are need to trade smaller
amounts. This will hel you from o!er le!era"in" your tradin" account.
Limit Order3 1s a rice you enter into an oen osition for the tradin"
latform to automatically close your osition at a rofit. For examle, you
mi"ht set your limit order at a => i rofit. 1f the exchan"e rate ne!er hits
that le!el, then the Order doesn(t "et filled.
Step ): ;hen to Enter and Exit 'our Trades:
9e will be loo#in" at / different ways to day trade the Forex Mar#ets. 1n a
tradin" session, you may loo# for = or more of these aroaches. The /
techniAues are as follows3
=. Trade the Brea#out
-. Trade the Trend
/. Tradin" Tos and Bottoms
Before we loo# at these tradin" aroaches, let(s answer a Auestion that is often
as#ed by new traders.
;hen is the 1est time to tradeL
Because the Forex Mar#et is oen -Lhrs a day, and traded on a "lobal scale, the
Auestion to as# is, Cwhen should 1 trade0(. The "ood news is that no matter what
time 7one or hemishere you li!e in "lobally, there are always "ood oortunities
to trade.
The three ma2or tradin" Csessions( are as follows $all in Eastern 4tandard Time%3
=. ?ew 8or# oen Q3.. +M to L3.. EM
-. Faanese/+ustralian oen I3.. EM to /3.. +M
/. Kondon oen /3.. +M to Q3.. +M
KKO+ten2 the 1est times to trade is at the 1e#innin# 7-) hours o+ the a1o0e
mentioned openin# times2 1e"ause the ma:or "urren"y pairs tend to mo0e
the most in a parti"uar dire"tion4
18
The first DayTradeForex.com tradin" techniAue we will loo# at is the easiest to
reco"ni7e on the charts. 9e will call it CTrade the Brea#out(. 8ou can use the >,
=. or => minute charts for this method. The indicators on the > minute charts
are the fastest. Eractice until you feel comfortable with the time frame that suits
you best.
=4 Trade the Brea3out
The rincile behind tradin" the brea#out is to enter a trade when the rice
Cbrea#s out( of a ti"ht ran"e, because often it tends to #ee mo!in" in the
same direction. 9e use our Bollin"er Bands on our charts to sot this tradin"
oortunity. 4ee screenshot on next a"e.
19
1n the abo!e examle, E@*/@4D > min chart, notice how the Bollin"er Bands
ti"hten and sAuee7e to"ether. 9hen this haens you #now that there is a
Brea#out comin". +s soon as the exchan"e rate line $brown%, brea#s out of
the outside Bollin"er Bands, it si"nals your entry buy/sell. 1n this case if you
bou"ht E@*/@4D at =.=Q=> and Closed your osition at =.=QL. , you could
ha!e made a fast -> i rofit.
?otice the confirmin" indicators3 The exchan"e rate line $brown% is a1o0e
the EM+ =. $red%, the middle BB line $"reen% and the EM+ >. blue. The
Earabolic 4+* dots are on the 1ottom.
The M+CD Gisto"ram is a1o0e * si"nalin" uward momentum. The *41 is
a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is
a1o0e the red line si"nalin" 1uish momentum.
20
Gere is an examle of E@*/@4D > minute brea#out 4EKK. 8ou could ha!e sold
the E@*/@4D at =.=LL. and closed your osition at =.=/J. for a >. i rofit.
?otice the confirmin" indicators3 The exchan"e rate line is 1eo& the EM+
=. $red%, the middle BB line $"reen% and the EM+ >. blue. The Earabolic
4+* dots are on the top.
The M+CD Gisto"ram is 1eo& * si"nalin" downward momentum. The *41
is 1eo& )* si"nalin" downward momentum, and the 4low 4tochastic blue
line is 1eo& the red line si"nalin" 1earish momentum.
21
Gere is an examle of @4D/C+D =. min chart. 1f you bou"ht this currency air
at =./>J. when it bro#e out of the bands and sold it at =./H-. you could ha!e
made aroximately /. is.
The exchan"e rate line $brown% is a1o0e the EM+ =. $red%, the middle BB
line $"reen% and the EM+ >. blue. The Earabolic 4+* dots are on the
1ottom.
The M+CD Gisto"ram is a1o0e * si"nalin" uward momentum. The *41 is
a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is
a1o0e the red line si"nalin" 1uish momentum.
22
Gere is a @4D/CGF > min chart examle of a brea#out 4EKK. ?otice how the
M+CD Gisto"ram went from ositi!e to ne"ati!e, and how the other confirmin"
indicators si"naled 4EKK.
The exchan"e rate line is 1eo& the EM+ =. $red%, the middle BB line $"reen%
and the EM+ >. blue. The Earabolic 4+* dots are on the top.
The M+CD Gisto"ram is 1eo& * si"nalin" downward momentum. The *41 is
1eo& )* si"nalin" downward momentum, and the 4low 4tochastic blue line is
1eo& the red line si"nalin" 1earish momentum.
23
Gere was an extreme brea#out E@*/@4D B@8 where you could ha!e held on for
a =.. i mornin"B
+"ain, The exchan"e rate line $brown% is a1o0e the EM+ =. $red%, the middle
BB line $"reen% and the EM+ >. blue. The Earabolic 4+* dots are on the
1ottom.
The M+CD Gisto"ram is a1o0e * si"nalin" uward momentum. The *41 is
a1o0e )* si"nalin" up&ard momentum, and the 4low 4tochastic blue line is
a1o0e the red line si"nalin" 1uish momentum.
24
The second DayTradeForex.com tradin" techniAue uses the same rinciles, but
is less extreme. This tradin" method is best traded on the > or =. min charts,
but can be alied to the = minute charts $4ee the Bonus $Mi"ro Tradin#-
strate"y at the end of this tradin" course%
64 Trade the Trend
Tradin" the trend is 2ust li#e tradin" the brea#out, excet in less !olatile
mar#et conditions. 4tart with "oin" to the => minute chart of the currency
air of your choice and as# yourself this Auestion3 C1s the exchan"e rate line
$brown% abo!e or below the EM+ >. $blue%0
NN1f the rice line is currently 1eo& the EM+ >., and the EM+ =. and BB -.
are also 1eo& the EM+ >., then you will be loo#in" at Sein# oortunities
in the tradin" session.
1f the rice line is currently a1o0e the EM+ >., and the EM+ =. and BB -.
are a1o0e the EM+ >., then you will be loo#in" at 1uyin# oortunities in the
tradin" session.
Often, when you are Ctradin" the trend(, you will notice that the rice line will
bounce off the EM+ =. or the middle BB line or the EM+ >.. These lines
sometimes act as suorts and resistances in a tradin" session. Therefore
you can loo# to se shorts when the rice line bounces do&n off the EM+
=., BB -. or EM+ >., or 1uy on#s when the rice line bounces up off the
EM+ =. BB -. or EM+ >..
9hen you trade the trend, it is imortant to trade with the Earabolic 4+*,
M+CD, *41 and 4low 4tochastic all si"nalin" to"ether.
25
The abo!e examle is a > minute E@*/@4D chart. The first thin" to loo# for is
the EM+ >. blue line. ?otice that it has been a1o0e the rice line and the EM+
=. and BB -.. 8ou will now be loo#in" to SELL4 ?otice how the rice line
bounced do&n off of the EM+ =. and BB -. ri"ht before 1 circled the chart.
?ow loo# at your other indicators3
The M+CD Gisto"ram turned do&n 1eo& Mero, *41 turned do&n 1eo& )*
and 4low 4tochastic 1ue ine turned do&n under the red ine. This would
ha!e been a "ood si"nal to Se Short5you could ha!e rofited at least -. is
on this trade.
26

The abo!e examle is a =. minute E@*/@4D chart. The first thin" to loo# for is
the EM+ >. blue line. ?otice that it has been 1eo& the rice line and the EM+
=. and BB -.. 8ou will now be loo#in" to BU'4
?otice how the rice line crossed down throu"h the EM+ lines rior to the
circles. This would ha!e been a false si"nal to sell because the EM+ =. and BB
-. were abo!e the EM+ >.. 1f you were loo#in" at buyin" oortunities then you
could ha!e entered when the rice continued to rise where 1 circled on the chart.
?ow loo# at your other indicators3
The M+CD Gisto"ram turned up a1o0e Mero, *41 turned up a1o0e )* and 4low
4tochastic 1ue ine turned up a1o0e the red ine. This would ha!e been a
"ood si"nal to Buy on#5you could ha!e rofited at least /. is on this trade.
27
Gere is an examle of anticiatin" the trend. The mar#et, re!iously re2ected the
brea#out rise in rice and turned the other way sharly. 1f you entered this trade
when the M+CD Gisto"ram turned down into ne"ati!e territory and the *41
mo!ed below >., you could ha!e anticiated the trend before the EM+ =. and
the BB -. mo!ed below the EM+ >..
28
The third DayTradeForex.com tradin" strate"y that we are "oin" to loo# at in this
"uide is3
74 Tradin# Tops and Bottoms
Tradin" tos and bottoms can be more ris#y that the other two strate"ies
because you are tradin" a#ainst the trend anticiatin" the mar#et is
o!erbou"ht/o!ersold and mi"ht turn in the other direction. 1t is best to use
the =. or => minute charts for this method. 1t is more ris#y usin" the > min
charts, but you still can aly the same techniAues.
29
Gere is an examle of a E@*/@4D =>min chart, bottom buy.
?otice how the M+CD histo"ram is startin" to rise, and the *41 is turnin" up
+rom 1ein# o0ersod and the slow stochastic blue line crossed the red line and
is turnin# up +rom o0ersod.
30
Gere is a > minute chart examle with E@*/@4D. ?otice the M+CD, *41 and
4low 4tochastic mo0e up from o!ersold at Q3/.. +t =.3/. you could ha!e sod
short for a small rofit.
Tradin" tos and bottoms is best in ran"in" mar#ets.
31
Gere is an examle of a brea#out 4EKK and a Bottom B@8 in a tradin" session
watchin" the @4D/FE8 =. minute charts. This bottom B@8 is a "reat examle of
o!ersold indicators with *41 and with 4low 4tochastic.
;hen to E<IT trades
The "oal of this day tradin" "uide is to teach traders to ta#e >)-. i rofits at a
time. 8ou can set rofit K1M1T orders to achie!e this, or you may want to mo!e
your stos as your osition becomes more and more rofitable.
NNMa#e sure that you don(t let a winnin" trade become a losin" one, by usin"
trailin" sto orders.
32
%o& to use %EDGI8G to your ad0anta#e
Ged"in" can be a useful tool to the Forex trader. 9hen you ha!e an oen
osition, for examle, you are lon" on a @4D/FE8 trade and you ri"ht clic# your
trade on the OT latform, a menu will o u and you ha!e a choice to %ed#e
your trade. 1f you clic# Ged"e, you &i automati"ay open up a position in
the opposite dire"tion at the "urrent mar3et pri"e &ithout "an"ein# out
your other position and &ithout mar#in in"rease,. 1n the abo!e examle you
would now ha!e a @4D/FE8 trade lon" and short. 8ou will now neither "ain or
lose any eAuity in your account because the "ains and the losses will cancel
each other out.
%ed#e in an emer#en"y: Ged"in" a losin" trade won(t sol!e your roblems, but
it will =. 6ee you from more losses -. &i!e you time to thin# about what
haened to your bad trade and /.&i!e you a second chance. 4ome traders will
hed"e losin" trades instead of stoin" out there osition, because they ha!e a
chance to win bac# the losses of the ori"inal bad trade.
Examle3 8ou are loo#in" to CTrade the Trend( so you "o lon" on the
E@*/@4D, usin" the indicators in this "uide. The indicators si"naled B@8
so you oened u a osition. 1n case of a bad trade, you choose to
hed"e instead of usin" a sto loss $be careful when doin" this%. 8our
CTrade the Trend( indicators didn(t wor# and your osition "oes a"ainst
you, you hed"e your trade. ?ow you ha!e a losin" osition and a winnin"
osition "oin" in the oosite directions. 8ou didn(t use u any more
mar"in. 9hat do you do now0
My recommendation3 9hen your osition is hed"ed, you are safe and
you won(t lose any more money in your account. Gere is what you should
do3
=. 9ait until another chart set u occurs and roceed to ste L. or Exit
the tradin" latform.
-. 9ait till the next tradin" day or session
/. Koo# for the DTF indicators the next day.
L. 1nstead of oenin" u another osition, simly "et rid of the bad
osition that was hed"ed. 4o if the indicators the next day si"naled
lon" in the E@*/@4D, li#e in the abo!e examle, then you would "et
rid of the short, losin" hed"e and hoe that the rice will rise enou"h
to erase the re!ious days losses to ma#e a rofit.
>. 1f your osition mo!es a"ainst you a"ain you can hed"e that osition
a"ain and reeat stes =)L.
%ed#e a &innin# trade: 8ou may also hed"e a winnin" trade to rotect your
"ains, if you don(t want to comletely close your osition. 9hen you do this you
won(t "ain or lose any more money with that osition. The ad!anta"e to this
33
would "i!e you the oortunity to #ee tradin" those ositions in the future and
"i!e you a brea#. 8ou can always ri"ht clic# on your osition and choose Cclose
with hed"e( to close both ositions at once. 1f you hed"e a winnin" osition you
can follow the abo!e stes =)L to #ee tradin" your osition the next tradin" day.
NN Elease note that hed"in" can "et comlicated. Try to #ee it as simle as
ossible and try not to ha!e a web of hed"ed and unhed"ed ositions oen at
the same time5as it becomes exonentially more difficult to #ee trac# of, and
what ositions to let "o etc...
KK Ged"in" is also otional and you don(t need to learn how to use this tool if you
choose not to. 8ou can be a successful trader by simly usin" sto and limit
orders.
Understandin# .is3 Mana#ement
@nderstandin" ris# mana"ement is a !ery imortant reality when tradin" the
Forex Mar#ets. Kosin" trades will haen, and mana"in" those losses are the
#ey to success. + "ood rule of thumb when settin" your sto losses is the >)IM
rule. 1f your tradin" account is at <-..., then set your sto loss so that you don(t
lose more than >)IM of the total !alue of your account. 1f you used this rule in
this case, you would sto out a losin" trade when you were down <=..)<=L..
This is imortant, because if you don(t mana"e your losses well, you can easily
lose >.M of your tradin" account on = bad trade. 8ou do that a coule of times
and you will lose all of your ris# caital. 1t is better to ta#e smaller losses and try
to maximi7e your winnin" trades. 4o be careful and deliberate when settin" your
stos on your tradin" latform.
Step B4 Open a Li0e tradin# a""ount
?ow that you understand the basics and ha!e been demo tradin" awhile, you
are now ready to oen a li!e tradin" account and 2oin the Day Trade Forex
tradin" team.
1f you ha!e found this ste)by)ste currency)tradin" "uide useful and helful and
if you decide to oen u a li!e tradin" account throu"h me $co)owner of
DayTradeForex.com%, 1 will ersonally "i!e you the customer ser!ice and suort
to assist you with your new account $my ser!ice will ?OT cost you any extra
money.% Gere is how you oen a li!e tradin" account.
34
Open a live account online by clicking HERE NOW. To open a live
account offline, follow the directions on next page.
1. &o to www.cms)forex.com and under the 4i"n @ Tab on the to, scroll
down to Ki!e +ccount 4i"n @. @nder 1B)*effered 1ndi!idual $ 1n the circle
on the bottom of the icture% , follow the instructions.
-. 9hen fillin" out your CM4 forms, simly use my name $Erol Bortucene%
as the third arty that referred you. This is on a"e -/ of the CM4
alication. 1f you decide to use the online alication, lease rint out
a"e -/, rint my name on the to and si"n it at the bottom and fax it to
CM4. @sin" my name as your referrer is F*EE and doesn(t cost you any
commission at all.
35
/. On the bottom of a"e -/ $of the CM4 alication%. where it reads3
NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
=.. Client understands and a"rees that there may be commission
imlemented on his account. I+ such commission is added, its si7e is the
followin" $in @4D or another base currency%3
Uni0ersa A""ount3 Commission er one =**/ lot PPPPPPPD
and/or er one =*3 mini lot PPPPPPPD 9ro+essiona A""ount3
Commission er one 6)*3 lot PPPPPPPEx"usi0e Mini A""ount:
Commission er one =*/ lot PPPPPP
NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN
4imly ut the number C.( in the blan#s as I &i not 1e "har#in# you any
"ommission as your introdu"in# 1ro3er IIBJ. 4i"n and fax this to CM4
alon" with your other information and forms. Than# you #indly. For
Auestions or assistance with oenin" your li!e account you can contact
me at bortuceneS7ili.com
/eep a tradin# :ourna
Finally, it is a "ood ractice to #ee a simle tradin" 2ournal. This way you can
#ee trac# of your trades and ro"ress and be able to analy7e, imro!e and
hone your tradin" s#ills.
4imly include the time you entered and exited the trade, the Currency air, the
chart time frame $this is imortant%, and the strate"y $brea#out, trend or to or
bottom%. +lso include write down what haened and what you could ha!e
done differently for future reference.
36
Use+u Lin3s
www.moneytec.com
Free Forex tradin" forum.
www.forexdirectory.net,
Comrehensi!e listin" of e!erythin", related to the Forex Mar#ets.
www.m"forex.com/resource/"lossary.as
+ "ood Forex &lossary
Before we resent you with our excitin", new TMicro Tradin"U strate"y, we would
li#e to warmly in!ite you to order our DayTradeForex.com +d!anced Tradin"
Course. 9e stron"ly ad!ise you to learn the techniAues in our ad!anced course
before you oen a li!e account. 8ou can read about it here3
htt3//www.daytradeforex.com/ad!anced.htm
Gay Tradin"B
The Day Trade Forex Team
For Auestions or assistance lease contact us at3
suortSdaytradeforex.com
BO8US: $Mi"ro Tradin#- the = minute !harts
4ee next a"e...
37
$Mi"ro Tradin#- the = minute !harts
?ow that you ha!e oened a demo account and familiari7ed yourself with the OT
tradin" latform we would li#e to introduce you to the Forex tradin" techniAue of
'scalin"' for small rofits. 1f you only ha!e a small amount of time to trade each
day, then this strate"y mi"ht be the ri"ht one for you. E!eryone will settle into
their own style of tradin". This techniAue is for traders who li#e "ettin" in and out
of trades in a matter of minutes instead of hours. 4toc# 1ndex Futures traders
often use the =minute charts to enter and exit trades. Forex day traders can also
"ain an ad!anta"e by "ettin" in on a mo!e ri"ht as it haens by watchin" the =
minute charts.
The tye of chart set u that we use to trade the = minute charts is candlestic#
charts. + "reat descrition of candlestic# charts can be read about here3
htt3//ri"htline.iAchart.com/artner/ri"htline/education/candlePintro.as
4ET @E 8O@* CG+*T4
=. Oen a new E@*/@4D = minute "andesti"3 chart.
-. +dd Bollin"er Bands set at =Q, Exonential. Chan"e the color of the middle
band to bri"ht #reen.
/. +dd a mo!in" a!era"e / Exonential, Close and chan"e the color to 1a"3.
L. +dd the MA!D %isto#ram 4tudy $default settin"s%
>. +dd the .eati0e Stren#th Index 4tudy set at =L.
H. Voom in or out to your li#in".
This is what your chart and studies should loo# li#e3 $4ee ?ext Ea"e%
38
The /ey to "at"hin# the $Mi"ro Trends- on the = minute "harts:
9ait for the 7 EMA I1a"3J to cross throu"h the =O Boin#er Bands Midde
ine I#reenJ4
9ait for the .eati0e Stren#th Index and MA!D %isto#ram to line u3
Above * $M+CD% and above )* $*41% for BU' si"nal. Below * $M+CD% and
below )* $*41% for SELL si"nal.
*emember to ta3e sma pro+its.
9ra"ti"e this strate"y on your demo account.
KExampes startin# on next pa#e
39
This examle is on a Kate 4unday ?i"ht/Early Monday Mornin" E4T E@*/@4D
chart. + "ood BU' si#na at this time could ha!e been when the 7 EMA crossed
up throu"h the Midde Boin#er Band, the M+CD Gisto"ram is a1o0e Mero and
the *41 crossed a1o0e )*.
More examles on next a"e...
40
Gere is both a BU' and SELL examle from the Faanese tradin" session.
?otice how the *41 and M+CD ine up in both examles.
More examles on next a"e...
41
Gere is an afternoon tradin" examle of a BU' and SELL oortunity with the
E@*/@4D air. *emember to ta#e small rofits and/or mo!e your stos in a
winnin" trade.
More examles on next a"e...
42
T.ADE T%E 8E;S
Gere is a "reat examle of how you can use the = minute charts to trade the
economic news releases. To find out when the world economic news releases
are, simly "o to htt3//www.forexnews.com and scroll down to the bottom of the
website for the list of the current wee# news releases that imact the Forex
mar#ets. 1n the abo!e examle, the economic news release was scheduled for
Q3/. +M E4T. At O:77 the pri"e :umped up 6* pips4 @sin" our = minute
strate"y alon" with the news, is an effecti!e way of scalin" rofits on the F;
mar#ets.
KKTip3 *emember to wait a minute or two after the announcement. Don't oen a
osition before the scheduled timeB
KKTip3 There are news releases all throu"hout the wee# durin" the different time
7ones and tradin" sessions. This techniAue wor#s well durin" o!erni"ht tradin"
E4T durin" the Euroean and Kondon sessions.
More examles on next a"e...
43
?otice with this news release, that the E@*/@4D air dropped o0er 7* pips in =
minute, +t Q3/- the rice droed. 1f you can ractice timin" these trades they
can become a !ery rofitable tool for the trader.
ATTE8TIO8:
@sin" the = minute charts is +ast mo0in#. 1t mi"ht not be your style of tradin". 1f
you want to test out slower mo!in" a!era"e combinations that whisaw less
often on the = minute charts, you can try these3
=. I EM+, =Q Middle Bollin"er Band
-. > EM+, -. Middle Bollin"er Band
/. =. EM+, -. Middle Bollin"er Band
44