Welcome to Your Forex 365 Institute QUICK START Course! Welcome to your FX365i and the Forex Quick Start course! During this course you will learn exactly what it takes to be a professional Forex trader. You will learn the methods that the top five percent of Forex traders use to profit every day from the markets. You will also quickly learn that this is not a get rich quick business. The skill set you will learn is for a lifetime and you can teach it to others you care about to help them succeed financially. We are honored you have chosen us to be part of your Forex journey and wish you the very best! Sincerely, The FX365i Team
Quick Start COURSE - SESSION ONE...... FX365i Skills Guide - Page S1-1 QUICK START Session One Content. Introduction: Introducing FXCM and the Relationship.... S1-2 What is the Forex 365 Institute?........... S1-2 The FX365i Mission Statement........... S1-2 The FX365i Method.................. S1-3. Session 1 - Part A: What is the Forex?................... S1-4 Peak Trading Hours.................. S1-5 What is a PIP?...................... S1-6 PIPs and the Power of Seven........... S1-6 Who Participates in the Market?.......... S1-7 Overview: The Strong Holders Business Model. S1-8 Educating the Masses................. S1-8 The Strong Holders Process to Profit from the Market.................... S1-10 The Trader s Prison................... S1-12 Real World Example of the Three Market Phases. S1-13 Two Paths........................ S1-14 Session 1 - Part B: Opening a Simulation Account? Launching Trading Station.............. S1-13 General Trading Station Functions......... S1-14 Trading Station Basics................. S1-15 Advance Rate Indicator................ S1-15 Trading Settings.................... S1-16 Looking Up Trade History Reports......... S1-17
Quick Start COURSE - SESSION ONE...... FX365i Skills Guide - Page S1-1b Marketscope...................... S1-18 Session 1 - Part B: (continued).. Japanese Candlesticks................ S1-19 Time Frames...................... S1-19 Adjusting the Charts and Proper Scaling..... S1-19 Improper Chart Scaling................ S1-20 Proper Chart Scaling................ S1-20 Moving the Candles Inside Their Windows.... S1-21 Choosing a Currency................. S1-21 Linking Charts..................... S1-21 Add/Remove Buttons................. S1-21 Measuring PIP Movement.............. S1-22 Locking the Charts................. S1-22 Color Changing Options............... S1-23 Account Balance and Lot Sizes........... S1-24 The Wealth Smart Suite and Indicators FX365i s Wealth Smart Trading Suite........ S1-24 The Purpose of the Wealth Smart suite..... S1-24 What the Suite is Not............... S1-24 Overview: What You Can Expect.......... S1-25 The Next 12 Weeks of Your Quick Start Course S1-25 Your Educational Process............... S1-25 Managing Your Center of Gravity (Traders COG) S1-25 Your Way to Success & Financial Freedom... S1-25 The 4 Stages of Competence (Traders COG)... S1-26
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-2 Introduction Introducing FXCM and the Relationship FXCM is a NYSE traded company and one of the biggest Forex brokers in the world. They have a location in New York City, but their main location is in London. They are very reputable, and Forex 365 Institute fully endorses their services to our students. They broker all of the major Forex currency products as well as commodities like gold, oil, and silver for clients and corporations who have accounts outside of the U.S.. Our Forex 365 Institute s Wealth Smart software is exclusively integrated into FXCM s Marketscope trading platform. What is the Forex 365 Institute? The Forex 365 Institute was born out of a small group s journey in seeking a reliable Forex education. From many hard lessons and money lost, a diamond was finally uncovered. This small group took the best of everything out there and combined only what was accurate and essential to becoming a successful trader. They constructed an educational program to give a student only what they need to know, rather than everything there is to know to be a profitable trader in the Forex. This training is known today as the FX365i Quick Start Course. Forex 365 Institute is now a nationwide network of like-minded traders using the same methods and understandings. This reflects one of FX365i s core beliefs: Greatness comes not from being someone, but from helping someone. The FX365i Mission Statement It is the goal of the Forex 365 Institute to graduate and support 10,000 Pro-Traders who safely and profitably trade the world s Foreign Exchange markets in order to realize individual financial and personal goals and to enjoy the trader s lifestyle. This mission statement goes hand-in-hand with our business model and commitment to educating profitable traders. When you win, we win. We are all working for the same number and we are in this effort for the long haul.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-3 The FX365i Method Our method streamlines your journey in Forex. Its sole purpose is to teach our students exactly what is important, and only what they need to know to become a profitable Forex trader. We refer to this teaching philosophy as Just in time learning rather than Just in case learning. There are countless other Forex courses. They will teach you everything you could ever want to know about indicators, the hows and whys of technical analysis, and the fundamental reasons a currency moves one direction or another. FX365i believes that to earn a living trading the Forex, you actually need very little, but highly accurate information. Throughout this Quick Start course you will learn this vitally important information.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-4 Session One - Part A What is the FOREX? The Forex is the financial pulse of currencies around the world. In trading the Forex you can make money as the exchange rate changes between one currency to another. Other details regarding Forex: Forex is an acronym for Foreign Exchange The Forex was established in 1971 to exchange one country s currency for another country s currency It is known as the Cash Market or Spot Interbank Market. Spot Market means on the spot trading at the price of the moment The Forex allows for international business transactions The Forex market is considered to be the biggest market in the world. More than 4 trillion dollars daily are traded on Forex U.S. Treasuries - $300 billion per day U.S. Securities - $100 billion per day Trading comparisons: Total = $400 billion vs. 4 trillion (over 8 times more) Daily trading volume on the Forex is over eight times greater than all the other world financial markets combined The Forex marketplace has no physical location. It is solely an Internet digital market Transactions are placed automatically through Internet squawk boxes or telephones Approximately 4,500 world banks and retail brokers trade the Forex
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-5 How money is exchanged The most common transaction in the Forex is when travelers exchange one currency for another. When traveling from the U.S. to Europe, U.S. Dollars are exchanged for Euros. The other principal Forex transaction, is between traders. Forex allows individuals or organizations to speculate on how the exchange rate between two currencies will rise or fall. The intention is solely to earn a profit in the market. Peak Trading Hours Pacific Standard Time AM PM 12 1 2 3 4 5 6 7 8 9 0 11 12 1 2 3 4 5 6 7 8 9 10 11 New York Forex London Forex Frankfurt Forex Tokyo Forex Sydney Forex Market PST OPEN PST CLOSE Local Time Open Local Time Close New York Forex 5:00 AM 2:00 PM 8:00 AM 5:00 PM New York Stock Exchange 6:30 AM 1:00 PM 9:30 AM 4:00 PM London Forex 12:00 AM 9:00 AM 8:00 AM 4:00 PM
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-6 What is a PIP? PIP stands for Point In Percentage. A PIP is a unit of measurement in the Forex, much like points are in the stock market. In the EUR/USD currency pair a PIP is equal to 1/1000 of a penny. This doesn t seem like much but if you know how to earn PIPs, each one can be worth $0.10, $1.00, $10.00 or $100.00 each! So if you capture 10 PIPs at $100 each, you just earned $1000. Collectively, the Forex regularly moves 1000 s of PIPs a day. PIPs and the Power of Seven This illustration shows the compounding earning power of capturing on a consistent basis a mere seven PIPs a day, or 35 PIPs a week.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-7 Who participates in the market? There are a number of participants at various levels in the Forex marketplace. All traders involved have one thing in common they are trying to make money. Keep in mind that not everyone can make money, since there must be a willing buyer and a willing seller for every transaction. Traders who consistently make money have a deeper understanding about how other traders move in the market. They recognize these distinctive behaviors in order to take advantage of good buying and selling opportunities. In this section we will discuss the various market players and how they go about their trading activities. Banks, brokers and retail traders The three main participants in the Forex are world banks, retail traders and brokers who facilitate trades between the big banks and retail traders. FXCM is a broker in our case. Each one of these entities has the ability to trade their own accounts and profit from the market. Yes, even the big banks that process the retail trader s orders are allowed to trade their own accounts for profit in the market. In the following comparison we will group these parties into two categories. A. The weak holder The weak holder category represents 95% of the retail traders. They consistently lose money in the Forex (or in other financial markets for that matter). They are easily manipulated and prime examples of how fear and greed control trading decisions. Weak holders often get into the market to make a quick buck. They have tried many trading systems that promise easy money, but have experienced no long term success. These traders serve as the constant financial fuel to run the Forex money machine. They are allowed to win from time to time to keep playing believing their next trade will earn back their prior losses and more. You will find this same kind of behavior in a casino. These traders are always testing a new system sure to deliver on its promised riches. When they find the system is not making them rich they quickly abandon it and move on to the next latest and greatest approach. This is not the kind of trader you want to be.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-8 B. The strong holder The strong holder is any financial entity that has the power to influence the direction of the market. They are masters at manipulating the weak holder, and taking advantage of their quick to jump trading habits. They have mastered the art of manipulating what the weak holder believes the market is going to do, and then raking in countless billions of dollars from the markets, at the weak holder s expense, by moving the market in the opposite direction. How the strong holder trades, would seem to be a very complex system or equation. In reality, however, it is a very simple three stage process. It would have to be a very simple method for it to control something as complex as the world financial markets. A more complex method, would be susceptible to breaking down. Let s look more closely at how the strong holder takes money from the weak holder. Overview: The strong holders business model Your invitation to the FREE MONEY PARTY Why is anyone and everyone invited to participate in the Forex this unlimited profit generating machine? The answer is summed up in one word: fuel. The masses are invited to trade the markets to generate liquidity for the few who actually know how to profit consistently from the market s movements. Masses of outsiders are invited to the free money party through free products like: Free data Free charting software Free education on technical and fundamental analysis Free broker accounts And the list goes on Educating the masses Why are the masses given free education in the art of trading? It is to instruct them on how to trade the market. This education would seem to be helpful, but it actually serves to create predictable behavior for the strong holder to take advantage of others. The weak holders are taught trading strategies that have payout rules much like a slot machine or any other gambling device. You will often hear traders asking others about the win rate of their strategies. In reality there isn t any losing or winning rates that matters. It only matters that you understand the content of the market which will result in good trading. Good trading results in profitable trading.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-9 Example: You decide to play golf for the very first time. You are unsure of the rules and how to play the game, but you give it a try anyway. You are up against a seasoned golfer who is fully versed in all aspects of golf. This professional golfer sees that you are brand new to the game and decides to help you out. He gives you a special golf club for free and tells you if you simply swing it every time in exactly a particular way you will increase your probability of hitting the ball well and winning the game. It is in the professional golfer s best interest that you lose. This will insure that you remain uninformed about the game and he walks away the winner. This is the same way that the Forex masses are educated. If making money in the markets was as easy as simply developing a systemized method with exact rules to follow then anyone could follow the system and make money. Yet 95% of traders who take this very approach lose money consistently. NOTE: Creating mechanical strategies is a delusional past time. If you learn how to properly interact with the strong holder s business model, you will learn a consistent trading method and profit from it day after day.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-10 The strong holders process to profit from the market The Strong Holders Business Model Accumulation Profit Area SELLING 95% of Traders are the Fuel BUYING Profit Area Accumulation 1. Accumulation / Consolidation: The act by strong holders to accumulate a series of buy orders or sell orders to later release for profit. Rules of accumulation: a. Accumulation is a covert operation. It does not create any belief in the market moving one direction or another. b. Prices are kept within a tight range within the selected time frame being observed. 2. Manipulation / Confusion: The act of creating belief in a market direction opposite to what the strong holder is accumulating. 3. Profit Taking / Trend: The act by strong holders of taking profits in a rising or falling market. Outside traders are invited to jump in and take temporary profits for themselves. Rules of profit taking Profit taking movement must clear the original accumulation in order for the strong holder to maximize profits.
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-11 Real World Example of the Three Market Phases Assets Estimated Fair Value Price Analysts instruct Broker s sales team to push their clients to start buying this undervalued asset in expectation of the next rise in the market Accumulation begins. Strong Holder manipulates the market to decieve the Retail Trader and then drive price down through their stop levels. Strong Holder sells Strong Holder sells Market sells off. Now the price of the asset is undervalued. Broker s sales team recommends stop levels based on their clients appetite for risk and reward. The result is a huge cloud of sell orders. Conservative stop loss Client 1 buys Client 2 buys Client 3 buys Average stop loss High Risk stop loss Client 1 sells Strong Holder buys Client 2 sells Strong Holder buys Client 3 sells Strong Holder buys Outside traders fuel the profit taking move and realize temporary profits. After accumulating large amounts of buy orders at bargain prices, the Strong Holder initiates the profit taking phase. Real, past chart examples
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-12 The Traders Prison The Trader s Prison illustration on the next page diagrams how you can become trapped in a never ending cycle of trading system development that will drain your trading account and more importantly, your time and energy. It is extremely important that you understand this concept to avoid getting caught in this losing loop. The Holy Grail Shortly after an individual is introduced to the financial markets and trading, they often begin their search for a trading system to guide them in the market. They begin testing different systems and playing with different indicators. They will start surfing the web looking for a system claiming to have cracked the Forex. It only takes a little searching on the Internet to find the hoards of people offering trading systems that promise huge riches with very little effort on your part. Just download their software and start printing money!
Quick Start COURSE - SESSION ONE - Part A...... FX365i Skills Guide - Page S1-13 All of this nonsense should be ignored. You will find this magic, money printing system right next to the pot of gold at the end of a rainbow. What you should actually be interested in is a methodology that teaches you why and when money changes hands in the Forex. One that shows you how the strong holder trades and how you should trade also. Trader s Prison / Losing Loop Create New System System Failure Practice Trade Loss of Confidence Delusional Success Lose $ Rising Confidence Trade Real $ The worst effect using these different types of trading systems is the emotional havoc it has on the person trying to implement them. Since these systems all operate on a win rate basis, they regularly leave a trader confused and frustrated. These systems are typically created using methods of technical analysis or fundamental analysis. This is because the market is perceived to operate this way. Trading with this common market perception as your guide will inevitably create a success barrier between you and your trading goals. (See diagram on next page.)
Quick Start COURSE - SESSION ONE...... FX365i Skills Guide - Page S1-14 Market Perception Creates a Success Barrier Loss of Confidence Mental Turmoil Emotional Issues Strained Relationships Pain and Anxiety Anger P e r c e p t i o n Wealth and Success When you trade with the market perception of the masses you place yourself on the wrong side of the success barrier and you will experience the hardships this causes. Those who truly understand how the markets work will spare themselves a lot of anxiety and will work their way to wealth and success! Two Paths At this point you have two choices, as you continue to learn to trade the markets. Failure Success Path 1: Trader s Prison Traditional Education Sound Trading Model 95 % 5 % Trade With Strong Holder Path 2: Follow the path of the masses down the road to a 95% failure rate. Learn, understand and interact with the business model used by strong holders who influence the market.