<< Continued from Page 2

Right, let's talk about some of the specifics here....

To start currency trading, you'll need to open an online trading account. A trading account is offered to traders by a broker. You'll find broker recommendations in the manual. It's completely free to open this account and you'll be able to transfer money to and from your regular bank account. If you're like me, every week, you'll want to withdraw $500-$1000 (or as much as you want) into your own bank account.

Of course, you'll need a half-decent computer (nothing too ancient) and an internet connection. Remember, you can trade from anywhere in the world as you aren't restricted to your home PC.

To place yourself in a position where you can bank $500-$1000 every week, you'll need an initial starting balance of $2000 or more in your trading account. If you can't afford that much right now, no worries, you can start with as little as $300. Although this amount won't earn you $500-$1000 every week, it will put you in a position to make an average of $200-$400 per month. Once your account balance grows to $2000 or more, you can implement the plan which will bring in at least $500 on a weekly basis.

As a forex currency trader, you will learn to read and interpret currency charts. Now, don't worry if you've never read a chart before in your life. You may be from a non technical background but let me reassure you, this is dead easy. Have a look at the chart below. You can see, 'price' is on the right hand side and 'time' is annotated along the bottom. By looking at the lines on the chart, you can tell exactly what the price was at any particular time.

At this point, you don't need to know the meaning of every detail on the chart. It will all be taught to you in good time.
You will probably realize that price moves up, down or sideways throughout the day. As it moves, the lines are automatically drawn on the chart.

The manual will teach you how to interpret these bars which are known as "candlesticks". Candlesticks are used to represent price. Although a simple line across the chart will do, candlesticks present a lot more information. You can see that each candlestick has a body and a wick (thin line) above or/and below it. Notice that some candles are blue and some are red. What does this mean? You will learn and understand what the body and wick signifies and how you can use that information to trade.

So how does one trade foreign currencies? Good question. It will take a lot of space to answer this question with due justice but because the answer is somewhat lengthy and fairly involved, I'll leave the explanation and instruction in the manual. Like I said before, it teaches you the basics properly so you're not left wondering what each part means.

There are several currencies you are able to trade. You can trade the following currencies against each other: US Dollar Great British Pound Euro Japanese Yen Swiss Franc Australian Dollar Canadian Dollar New Zealand Dollar and more, depending on your broker. Don't worry, getting a broker is not hard. You'll learn to perform simple analysis which will determine which currency to trade. Once chosen, you'll buy or sell that currency for a profit.

Forex traders measure their success in pips rather than dollars. One pip is equivalent to approximately $10 (depending on which currency you are trading). If you refer to the chart above, when the currency moves from 1.8210 to 1.8220, this is a movement of 10 pips. Likewise, if a currency moves from 1.2942 to 1.2905, this is a movement of 37 pips.

The market will either move up, down or sideways. It will keep moving and this movement will allow you to earn $500-$1000 or more every week.

You may not know this, but when price falls (goes in a downwards direction), you are still able to make money just as easily as when it rises. Regardless of the economy or which way the chart is heading, you will always have an opportunity to make money. Isn't this just fantastic?

Normal society tells us that we should buy low and sell high. This is how we make a profit. But with the Forex market, you are also able to sell high FIRST and then buy low LATER which will also give us a profit. Yes, you can sell first! Have a look at the chart below.

Don't worry if you can't grasp that concept just yet. It will all become clear when you read the manual.

Some trades you undertake may only last a few minutes whilst others will last a few days. It all depends on which strategy you use. Most of the trades you place will get you in and out of a trade several times a day. The manual discusses several strategies and systems which you can use to profit from.

You will also learn the use of "indicators". These are little lines attached to the chart which indicate what the currency is about to do next. If it indicates that the price is about to head upwards, what would you do in such a situation? You would BUY of course!

Soon after graduating from my formal training, I bought the Euro one morning. In the evening, I exited the trade. The Euro moved 78 pips.

78 pips is $780 (with a standard trade)

Needless to say, I was absolutely elated. All I did was follow the simple steps my mentor taught me and wow, it paid off big time! I kept applying the same principles from there on and I continued to make money, month in, month out. This is what I'm offering to teach you. Not only that, I've added and refined the techniques to a point where anyone following the plan will have the ability to extract over $500 every week from the market.

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Copyright 2005, Amin Sadak. All Rights Reserved - Forex Currency Trading