BETHENEXTG

MAKECOOLMONEYWITHYOURACCOUNTS!

2008
REAL LIVE FOREX TRADING

REALLIVEFOREX

TRADING!!

HOWYOUCANMAKEYOURBANKACCOUNTWORKFORYOU!

BUYEURO/USDBELOWCBNSELLINGRATE

TRADELIVEWITHNAIRA EDWARDAGBAMU

APPRECIATEYOURNAIRA
GWEALTHINVESTMENTSNIG.
ENTERPRICE
TRANSACTLEGITIMATEBIZNESS
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LETYOURPASSIVEINCOMEDOTHEWORKFORYOU!!

LEARNHOWTHEMASTERSTRADE

YOURDECISIONSDETERMINESYOURINCOME

YOURMINDSETMAKESTHEDIFFERENCE!

DOYOUKNOWYOUCANMAKECOOLMONEYTRADINGTHEDIFFERENCEBETWEENTHEINTERNATIONAL

CURRENCYRATEANDTHECBNCURRENCYRATE?

THISMANUALWILLSHOWYOUHOW.

IGNORANCEISNOMOREADISEASEITISAKILLER.INFORMATIONYOUKNOWSETSYOUAPARTFROMYOUR

MATES!

MypeopleperishforlackofKnowledge.INFORMATION!

Informationsetsyouapart.AppliedinformationtakesyoutotheheightofUNDERSTANDING.

Letmeshowyouhow:

Forinstanceinthestockmarket,therearetechnicalindicatorsthatindicatethe

riseandfallofstockprices,likewiseintheforexmarket,therearetechnicalindicatorsthatshowstheriseandfall

ofthemajorcurrencieswhichaffecttheotherminorcurrencies;ifyoudontknow,allcurrenciesaretiedtothe

Unitedstatesdollars(USD$),knowitnow!IfNairafallsnothinghappensintheinternationalcurrencymarketbut

seehoweveryothercurrencyareappreciatingnowduetotheforecastofrecessioninAmericaandtheriseinthe

oilprice($107.70)perbarrel.

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CHECKOUTTHEFOLLOWINGSTATISTICS(www.oanda.com)

FXCROSSRATERESULTSMARCH04,2008(INTERNATIONALCURRENCYRATE)

CURRENCY UNITED CANADIAN EURO JAPANESE US CFA NIGERIA SOUTH

NAMES KINGDOM DOLLAR YEN DOLLAR FRANK NAIRA AFRICAN
POUND BEAC RAND
UNITED 1.0000 0.5107 0.7654 0.004881 0.5037 0.001145 0.004238 0.06363
KINGDOM
POUND
CANADIAN 1.9568 1.0000 1.4981 O.009552 0.9858 0.002240 0.008295 0.1245
DOLLAR
EURO 1.3060 0.6671 1.0000 0.006376 0.6579 0.001524 0.005536 0.8343
JAPANESE 204.800 104.608 156.794 1.0000 103.169 0.2345 0.8681 13.0330
YEN
US 1.9850 1.0139 1.5196 0.009690 1.0000 0.002273 0.008415 0.1263
DOLLAR
CFA 839.464 428.812 655.957 4.0979 422.916 1.0000 3.5586 53.4255
FRANK
BEAC
NIGERIA 228.230 116.583 174.726 1.1141 114.980 0.2613 1.0000 14.5250
NAIRA
SOUTH 15.6472 7.9928 11.9603 0.07638 7.8829 0.01791 0.06633 1.0000
AFRICA
RAND
Table1.1

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CBNEXCHANGERATE:DATE3/3/2008

CURRENCY BUYING CENTRAL SELLING

(NGN) (NGN) (NGN) (NGN)

YEN 1.1243 1.1292 1.134

WAUA 185.6711 186.473 187.2748

USDOLLAR 115.78 116.28 116.78

SWISS 111.4126 111.8938 112.3749

FRANC

RIYAL 30.8747 31.008 31.1413

POUNDS 229.6612 230.653 231.6448

STERLING

EURO 175.9046 176.6642 177.4239

CFA 0.2489 0.2589 0.2689

Table1.2

Fromtheabovetables1.1and1.2,theinternationalrateislowerthantheCBNrateby:

NGNtoUSD:116.78114.980=1.80

NGNtoEURO:177.4239174.726=2.6979

Bigdifferenceyouwillsay!

HowtotradethedifferenceiswhatIwillshowyouinthismanual.

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UNDERSTANDINGFACTORSTHATINFLUENCEPRICECHANGESINFOREIGNEXCHANGERELATINGTONIGERIA

FOREXMARKET

1. SupplyandDemand:commodities,goodsandexchangeratepricesaredeterminedintheopenmarket

formajorcurrenciesunderthecontroloftwoforces;DemandandSupply.

Thelawofdemandandsupplyshowsthathighdemandcauseshighprices.Thisindicatesthatwhena

commodityisscarce,thecommoditypriceshouldbehighandintheincreasebutwhenthereisasurplus

inthesupplyofgoodsandcommodities,thepricesfalls,thisleadstodevaluationofthegoodor

commoditylikewiseCurrency.

Forforexmarket,thevalueofanationscurrencyunderafloatingexchangerateisdeterminedbytheinteraction

ofsupplyanddemand.

NIGERIA(CBN)FOREXMARKET

TheDutchAuctionSystemisadoptedbytheCentralBankOfNigeriaanditistradedonceeveryweek.Thismeans

thattheNairaisinconstantvalueinrelationtoothermajorcurrenciesforaboutfourtofivedayswhilethe

internationalmarketfluctuatesandattheendofthefifthdaytheCBNtradestheDutchAuctionandtheprevailing

internationalrateisusedtodeterminethenairaequivalentforthenextfivedays.

Goingfromtheactiveparticipants(banks)intheDutchAuction(fromwww.cenbank.org/rates/dutch.asp)the

officialCentralBanksite,sometimes7banks,sometimes10BanksparticipateintheDutchAuctionwhichmeans

theseparticipatingbanksdeterminetheexchangerateofNairaforthenextfewdays.Whatthismeansisthatthe

forexmarketinNigeriaisnotinfluencedbyDemandandSupplybutbytheprevailinginternationalrate.

Belowaretheactorsthatcausethecurrenciestoexperiencechangesinsupplyanddemand:

i. Companiesthatexportandimport

ii. Speculatorswholiketoengageinmarketactivity

iii. Centralbanksthatcontrolthemovementofinterestrates(CBN)

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iv. Foreigninvestorsandbanks

Banks.

Theforeignexchangemarkethasbeenassociatedwiththeterminterbankmarket.Thistermwasemployedto

capturethenatureoftheforeignmarketwhenitpredominantlydealtwithbanks.Banksincludedcentralbanks,

investmentbanksandcommercialbanks.

MajorCentralBanksyouneedtoknoware:

a. FederalReserveBankoftheUnitedstate,(USD):ThisisthemostinfluentialbanksincetheUSDisthemost

tradedcurrency.Thefederalopenmarketcommitteemeetsabouteverysixweeks.Thedecisionsmade

bythe(FOMC)arecloselywatchedbyinvestorsbothwithinandoutsideoftheUnitedStates.Itgives

tradersanideaoftheeconomicsentiment,whichcanbeusedtopredictpossibleinterestrate

movement.ItskeyofficialisBenBernankethechairmanofthefederalreserve.

b. EuropeancentralBank(EUR):ThisCentralBankwasestablishedafterthecreationofthetheEUROin

1998.ItoverseestheactionsoftheothermemberEuropeanCentralBanks.TheGoverningcouncilis

comprisedofsixmembersoftheexecutiveboardoftheEuropeancentralBankinadditiontoallthe

governorsofthenationalcentralbanksfromthecountrieswhichusesEuro.JeanClaudeTrichetisthe

presidentoftheEuropeancentralBank.

c. BankofEngland(GBP):themonetaryPolicyCommitteeiscomprisedofninemembersandthemain

officialassociatedwiththebankofEnglandisamanbythenameofMervynKingwhoistheGovernorof

thebankofEngland.Themonetarypolicycommitteemeetsonceeverymonthinordertodiscussany

policychanges.

d. BankofJapan(JPY):ThisbankhasacommitteeheadedbyToshihikoFukuwhoistheGovernorofthe

bankofJapan.Thecommitteemeetsonceortwiceamonth.

e. SwissnationalBank(CHF):thecommitteeconsistsofjustthreepeopleandistypicallymoreconservative

asfarasinterestratemovementisconcerned.ThecommitteemeetsquarterlyandthekeyofficialisJean

PierreRothwhoistheChairmanoftheSwissNationalbank.

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f. RoyalBankofCanada(CAD):thegoverningcouncilmeetseighttimesayearandthekeyofficial

associatedwiththebankisDavidDodgewhoisthegovernoroftheBankofCanada.

g. ReserveBankofAustralia(AUD):Thegoverningcouncilofthisbankmeetsabouteleventimesinayear

andthekeyofficialfortheReserveBankisIanMacfarlane.

h. ReserveBankofNewZealand(NZD):Allthepowerofmonetarypolicyliesinthehandsofanindividual:

TheGovernorofthecentralbankAllanBollardwhomakesthedecisionabouteighttimesayear.

i. CentralbankofNigeria(NGN):theGovernorofftheNigeriaCentralbankisProf.CharlesOluSoludowho

istheheadoftheFederalopenmarketCouncil.EveryinfoontheNigeriaDutchAuctionSystemof

Monitoringthecorrespondingnairarateyoucanfind:www.cenbank.org

2. InterestRatesandForex:interestratesplayaveryimportantroleinthemovementofpricesof

currenciesintheforeignexchangemarket,astheinstitutionsthatsettheinterestratesarethereforethe

mostinfluentialactors.Interestratedictatestheflowofinvestment.sincecurrenciesarethe

representationofacountryseconomy,differencesininterestratesaffecttherelativeworthofcurrencies

inrelationtooneanother.Whencentralbankschangeinterestrates,theycausetheforexmarketto

experiencemovementandvolatility.

Accuratespeculativetradingoncentralbanksactionscanenhancethetraderschancesforasuccessful

trade.Forinstance;inforeignexchange,thelenderistheinvestorholdingthecashorassetsandthe

borrowerisabankinsideaparticularcountry.Thelender(investor)providesmoneytotheborrower

(bank)andwillreceive,afteraspecifictimeperiod,interestinconjunctionwiththeoriginalsumheorshe

putin.

Nowlisten,anincreaseininterestratesencouragestraderstoinvestwithinthatmarketandcausesthe

demandforthatcurrencytorise.Asdemandrises,thecurrencybecomesscarcerandconsequentlymore

valuable(appreciate),moreinvestorsaredrawntothatcurrencybecausetheywillgainhigheryieldon

theirinvestment.

Afallininterestratesdissuadesinvestorsfrompurchasingassetsinthateconomyasthereturnontheir

investmentisnowsmaller.Theeconomyscurrencywilldepreciateasaresultoftheweakerdemand.

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3. Centralbanksroleinfightinginflation:centralbanksfightinflationinvariousways:throughOpen

MarketOperation,indexing,settinginterestratesandothermeans.Inflationcanalsobesetoffbythe

increaseinpriceofjustonecrucialcommodity(foodorenergy)aswell.Anexampleofavolatile

commoditythatcancauseinflationisOIL.Anincreaseinthepriceofoilwouldcauseeveryotheritems

thatuseitasaninputintheproductionprocesstoincreaseinpriceandthereforebegintheinflationary

process.Youcanmonitorthesereportsonworldnewsandgetinsightintothebusinessdaythrough

financialreportsoncurrencies,stockmarketreportcapitalizatione.t.c

IFYOUSPENDYOURTIMEWATCHINGHOMEVIDEOSormovies,thisisagoodopportunityforyouto
CHANGEYOURHABITANDMAKEOUTTIMETOLISTENTOBBCORCNNBUSINESSREPORT.

THEREISNOTHINGLIKEKNOWINGTHECOUNTRYYOUDEALINGTHEIRCURRENCY.CNNEARLYBUSINESS
REPORT(6.15AMGMT)CANGIVEYOUALARGEINSIGHTINTOTHEDAYSTRADING.

Thereareothermajorforexreportyoucanenjoyontheinternet:

1. www.forexnews.com

2. www.fxstreet.com

3. www.currencypro.com

FUNDAMENTALFACTORSTHATAFFECTFOREXMARKET.

Thefundamentalanalysisgaugestheintrinsicvaluesofacountryseconomy,andjudgingonitsexpectedfuture

performance,positionsareopenedtotakeadvantageoftheanticipatedtrendsinthecurrencymarket.

Financialfactors,politicalfactors,andeconomicfactorsarethreecategoriesoffundamentalfactorsthataffectthe

economyofacountrydirectlyorindirectly.

Thefinancialdatareleasesarewatchedduetotheuncertaintyfromtheoutcomeofsuchreleases.The

fundamentalreportsarekeptunderstrictsecrecyuptothetimeofactualoccurrence.Youcancheckeconomic

calendaronwww.cmsfx.comforthedatesofcriticalfundamentalannouncementsandevents.

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Politicalfactorsincludeelections,highleveltalks,crisesandwar.Anymajorupstartinthemajoreconomieswill

haveadrasticchangeintheratesofglobalexchanges.Forinstance,thenucleartestNorthKorea,theJapanese

YenSufferedbecauseanyattackonJapanwilldamagetheireconomyandhencetraderssoldtheirYenandbought

dollars.

Note:

Practicelisteningtonewsandassociateeventswithhowitwillaffecttheeconomythatisinvolvedand

howdoesthisaffecttheNaira.DoestheNairagainoritdevaluates.ForinstanceiftheTogoleseare

abletodevelopNuclearWeapon,howdoesthisaffecttheNigerianeconomyandwhatimpactdoesit

haveontheglobalmarket.Orsay,OpeccutstheamountofBarrelsperdaythatcanbeexportedbythe

OPECNations,whatwillbetheEffectontheinternationalmarketandhowdoesitaffectthedemand

foroilandtheexchangeratesintheOpecnations?Dotheseanalysisyourselfasapracticetest.

Duringtimesofwar,famine,recessionorpoliticalcrises,investorswillmovetheirmoneyoutofriskierinvestment

andputthemintomorestableones.

Stockprices.Thestockmarketofacountryreflectsthepricemovementsandvalueofacountrysbiggest

companiesandfirms.Increase/decreaseofastockindexcanreflectboththegeneralsentimentsofinvestorsand

themovementsofinterestrates.

Havinglearntaboutthefactorsthatinfluencetheexchangeratesletslookatstructuringourtradingsystem.

SYSTEMSWORKSANDKEEPSWORKINGUNTILCHANGED,BUTPEOPLEFAILSOMETIMES!

PSYCHOLOGYOFTRADING:

Yourabilitytocreateandmaintainatradingplanisamajorstartingpointinthereallivetrading.Ifyoufailto

plan,Youplantofailgoesapopularsaying.Disciplineandatradingmethodologyarekeytolongtermsurvivalin

thefinancialmarkets.Whatkindofmarketareyoucomfortablewith.Areyouatrendfolloweroracountertrend

trader?Thesearethetwofundamentallydifferentpreferencesforenteringtrades.ATrendfollowertriestocatch

arelativelylongtermtrends.

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Whileacountertrendtradertriestotradeconsolidationorrangingmarkets.Theyprefertotradethebackand

forthmovementsofasidewaysmarket.Inarangingmarket,thecountertraderwillbuylowandsellhigh(going

long)orsellhighandbuylow(goingshort).Atraderhastohaveagoodfeeland/ortechnicalanalysistobackuphis

orherpredictionaboutthemarketbehavior.Heshouldbewillingtotradeagainsttherecenttrendifheorshe

believestherewillbeapullbackorretraction.youshouldalsobewaryofpricebreakoutsandachangetoa

trendingmarket,whichwouldputcountertrendtradesinjeopardy.

Onceyouhavelaidoutyourguidelinesonenteringandexitingtrades,itisveryprudenttopracticeyourstyleof

tradeanddeterminewhichonereallysuitesyou.Patienceisavirtue.masteraparticularstyleoftradingovertime.

YourtradingstyleshouldfactorinMarketNoise(unexpectedmarketmoves)

Thissystemoftradingisnotagetrichquickschemeandifyouneedasystemthatbringsyou100%returnsper

investment,Ithinkyoushouldhavearethinkabouttradingforex.Sometimesyoujustmakehugeprofits

overnightandsometimesalittleloss.Butwithproperhedgingofyourbusinesswhichyouwilllearnfromthis

manualyoucanneverloose.

Pertradeexposure:

Thisistheamountofcapitalyouasatraderiswillingtoallocatepertrade.Thisisdirectlylinkedtotheamountof
riskyouarewillingtotakepertrade.

Nextletstalkaboutthepsychologyoftrading.Youasatradershouldhavesomeflexibilityinyourapproachin

buildingequity(theamountofmoneyleftwithatraderafterpayingyourdebtsandothersettlements)depending

onyoursuccessandfailures.Itisbettertobuildupequityandtotradewithinthemeansofyouraccountinstead

ofoverleveraging(takingtoobigaposition)andloosingtoohugeamountsonabadtrade.Themoreflexibleand

robustyourtradingplansare,thebetterforyou.

MasterTwomasterEmotions:

Twomasteremotionshavebeenknowntocontrolallhumanactionsanddecisions;fearanddesire.

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Thesetwomajoremotionsdeterminemarketmovement:forinstance,panicbuyingorsellingwhichaffectsthe

ratesofexchange.Yourtradingplaniscreatedtomanageyouremotionsproperlyandyoushouldmanageyour

emotions;fearordesireeffectively.Thiscanbeachievedwithcontinuouspractice.Reasonforfailureformany

newtradersisthattheymakeplansbuttheydontsticktoit.

LETYOURBANKACCOUNTMAKEMONEYFORYOU

Iamnottalkingaboutthe23%interestrateperannumbankspayonyoursavingsaccount.Iamtalkingaboutyou

rakingingoodandcoolmoneyfromyourdomiciliaryaccount.

Step1:Openthreedifferentaccounts:USD($),GBP()andEURO()andyourregularNairaCurrentaccount.

Step2:Fundyouraccount;thisiswhereyougetmixedupalittle.Nottoworry,helpishere.

Tobuy$attheCBNrate,thebankswillnotselltoyouunlessyouhaveagenuineinternationalinvestmentplan

andbackup.

Letsexamineourtable1.1and1.2onceagain:

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FXCROSSRATERESULTSMARCH04,2008(INTERNATIONALCURRENCYRATE)

CURRENCY UNITED CANADIAN EURO JAPANESE US CFA NIGERIA SOUTH

NAMES KINGDOM DOLLAR YEN DOLLAR FRANK NAIRA AFRICAN
POUND BEAC RAND
UNITED 1.0000 0.5107 0.7654 0.004881 0.5037 0.001145 0.004238 0.06363
KINGDOM
POUND
CANADIAN 1.9568 1.0000 1.4981 O.009552 0.9858 0.002240 0.008295 0.1245
DOLLAR
EURO 1.3060 0.6671 1.0000 0.006376 0.6579 0.001524 0.005536 0.8343
JAPANESE 204.800 104.608 156.794 1.0000 103.169 0.2345 0.8681 13.0330
YEN
US 1.9850 1.0139 1.5196 0.009690 1.0000 0.002273 0.008415 0.1263
DOLLAR
CFA 839.464 428.812 655.957 4.0979 422.916 1.0000 3.5586 53.4255
FRANK
BEAC
NIGERIA 228.230 116.583 174.726 1.1141 114.980 0.2613 1.0000 14.5250
NAIRA
SOUTH 15.6472 7.9928 11.9603 0.07638 7.8829 0.01791 0.06633 1.0000
AFRICA
RAND

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CBNEXCHANGERATE:DATE3/3/2008

CURRENCY BUYING CENTRAL SELLING

(NGN) (NGN) (NGN) (NGN)

YEN 1.1243 1.1292 1.134

WAUA 185.6711 186.473 187.2748

USDOLLAR 115.78 116.28 116.78

SWISS 111.4126 111.8938 112.3749

FRANC

RIYAL 30.8747 31.008 31.1413

POUNDS 229.6612 230.653 231.6448

STERLING

EURO 175.9046 176.6642 177.4239

CFA 0.2489 0.2589 0.2689

ThetwowaysforyoutoobtainyourInternationalcurrencyattheCBNrateare

1. BuyCFABEAC(XAF)attheopenmarketandconverttoDollars:aunitincreaseinXAFisequalto0.2689

increaseinNaira(NGN).Intheopenmarket(blackmarket)youcangetCFAfor0.2750asatthisdate

(03/03/08).

Practice:CBNUSDsellsfor116.78,

XAFintheblackmarketsellsfor0.275.whichmeans3.6364XAF=1NGN(1)

Therefore116.78of3.6364=424.6545XAF(conversionfromNairatoCFA)(2)

From(2),424.6545XAF=1USDthisimpliesfromthetable1.1;422.916XAF=1USD.Fromthe

above,youhave2extraunitsofCFAforthesameamountof1USD.

2. BuyPoundSterling(GBP):

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232.00(NGN)=1GBP(1)blackmarketprice

But1GBP=1.9850USD(2)

From(1),232.00NGN=1.9850USD,whichimpliesthat;

232.00NGN/1.9850=116.876574307NGN/1USD

TRADINGWITHYOURACCOUNTS

NowthatyouhavesetupyourDomiciliaryAccounts(GBP,USD,EUROandNAIRA)youcandecidetotradeanyof

thecurrencyagainsteachotheryouwouldhavetheleveragepromisedbytheonlineinvestors,whichmostof

themdontpayItellyou.

Practice:followingthetrendofthecurrencymarketofrecentbetweenEuroandtheDollarorsayDollarversus

othercurrencies.YoucanconvertyourdollartoEurothroughyourbankofficerandthenwaittillthereisan

uptrendinthedollarvalueandconvertbacktodollarsortoNairadependingonyourinvestmentstrategies

Allthestorieswehavebeenpreachingfromthebeginningofthisbooktillnowisonlymeantforprevious

page/currentpage.Youcanalwayscalloremailmeatgwealth@yahoo.comforfurtherassistance.

Youhaveallthetoolsyouneedtomakeagoodbusiness,onelastword:

YOURDECISIONDETERMINEYOURINCOME

Youcanberichorpoor.Youcanbeveryrichorverypoor,oryoucanjustbeo.k

Itsallinyourdecisiontoday.Watchhowyourdesireorfeardrivesyoutomakedecisions.Masteryourdesiresand

dontbeaslavetoyourfear.Whatyoufearmosthappenstoyou,andseehowwhatyoudesireappearsinyour

physicallife.Youcannotletfearrobyouofthejoyandecstasyofachievingyourgoals.Apopularsayinggoes

whatyouwantwantsyou.Andwhatyouaremovingtowardisalsomovingtowardsyou.Itstimeyou

grabthebullbythehornorgrabthebearbythefur,practicewithsmallmoneyandwatchyourequitygrow.

Thereisnowayyoucanlooseyourmoneyisalwaysinyouraccountandnotinsomeoneelsesaccountwhotrades

foryou.

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Youconvertyourmoneyyourselfthroughyourbank.

24hoursaccesstoyourbankaccount

AndyoucandecidetopeddleyourgainsintheopenmarketjustlikesomeofusaredoingatthisEuroBumper

rate.

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