Atif Choudhury - Profit From Forex Price Action: Proven Strategies For A Profitable Trade

ABOUT THIS BOOK

I am writing this book for those who want to trade Forex for a living or would like to earn extra income part-time. My goal is to show readers how to make money trading Forex by using the right strategy. There are lots of books in the market on technical analysis and chart reading, but there are not enough books showing which indicator to use or how to use it. There are over 100 indicators to choose from, but not all are usable for Forex trading. You only need a few good indicators to use on different timeframes for your chart setup to trade Forex profitably. I am going to reveal my trading strategy to all my readers.

Why I am giving away my strategy?

The answer is simple: I believe in giving back to the community, and this is my way of giving back to the traders community.

When I first started trading Forex seven years ago, I struggled to make money and made lots of mistakes, like all other novice traders. It wasnt easy to make money trading Forex, but I never gave up. I was trying to improve my trading by reading books on technical analysis, watching online webinars and attending workshops, but I couldnt find the trading system I was looking for.

So I have decided to create my own trading system. I started to watch the Forex prices to understand how it moves and what makes it move and then started to test the different indicators on different timeframe. I have tested over 20 indicators but selected only a few that I found very helpful for the Forex market. After reading this book, you will know how a good chart setup can give you consistent profits. It can be Forex, stocks or any other market.

To this day, I am still using these indicators in my trading and they are great system for Forex day traders or swing traders. If you use my strategy, I am confident that it will give you better results in your trading. This system will also take the mental pressure off of you and will help you to trade the market with ease.

In this book, I am going to show you six strategies I have been using to trade Forex profitably. All six strategies have their own benefits. Now, its up to you to explore.

Last but not least, if you are new in the Forex market, please practice this setup in the Forex demo account until you get comfortable to trade live.

If your trading improves after reading this book (and I believe it will), please spread the word. Help others to learn the strategies shown in this book to become better traders.

I promise, the knowledge you will gain from this book will outweigh the cost.

Best of luck!

CHAPTER ONE:

WHAT IS FOREX?

Before I jump into my trading strategy, I think it would be a good idea to give some background information about Forex to those who are new to this market and would like to learn this new skill to earn a living or use it for the extra income.

If you have been trading Forex for a while and dont need this introduction, then you can jump into the next chapter where I start to discuss my strategy.

You can trade Forex with as little as $1,000 investment. You dont need a license to trade Forex. All you need to trade is a broker account and a trading platform. This means that there are no restrictions to trade Forex. Anyone who has money to invest and wants to learn can open an account and start trading.

Why trade Forex? Yes, making money is a very common answer. Some people trade in the Forex market to earn extra income and enjoy life, and others make a living out of it. Whatever the reason, traders are getting money, enjoyment, achievement and maybe all three. It opens doors to everyone. But dont be fooled: there are tremendous risks involved in the Forex market.

However, if you educate yourself first and learn all about the markets, you have a better chance of doing well. There is lots of information available online, and that should help you understand how this works and which broker to choose. On this books resource page, I have listed a few brokers names and web addresses, which may help you to open an account and download their trading platform. MT4 (MetaTrader 4) is the most popular Forex trading platform. Most of the brokers offer the MT4 platform for their clients, and its free.

Forex Trading Advantages

• Forex is the largest financial market in the world, trading over $4 trillion per day.
• The market is open 24 hours a day, five days a week.
• The broker cost is low usually the spread (the difference between the bid and the ask price).
• No fees no exchange fees or regulator fees.
• Its easy to start simply fund a margin account with at least the minimum amount and then start trading.
• Short selling makes it possible to return a profit no matter how the market is trending (up or down).
• You can hedge (buy and sell) the same currency pair at the same time.
• Forex is so large that no single entity can dominate and influence the market to the detriment of other traders.
• Trading Forex is quick and convenient and can earn you additional income.
• You can trade Forex from anywhere in the world as long as you have a computer and Internet connection.
• You can also trade Forex as a business.

Foreign exchange market is the biggest markets in the world. Until recently, only central banks, governments and some large financial institutions were players in Forex trading. Their purpose was different. But the evolution of the Internet has changed all of this, and now it is possible for average investors to buy and sell currencies with the click of a mouse through online brokerage accounts. For this reason, we now see lots of retail traders trading Forex to earn a second income. Best of all, you dont need a large amount of money to trade Forex, as you do with stocks or mutual funds. As I said earlier, you can start Forex with as little as $1,000 and increase as you gain experience. No other investment will give you this type of opportunity. Students can learn this skill while in college or university and earn extra income toward their tuition, or a housewife can earn extra income from the comfort of their home. Opportunities are endless.

Forex is recession-proof. You will never be out of work if you can master this skill, and I believe anyone can be successful if he or she puts enough time and effort into learning this new skill. If other people can do it, then you can do it. You just have to develop passion for the market. You have to have a positive attitude. I am giving away my years of experience, and all you need to do is learn and master it.

You can trade Forex in three ways: spot market, forwards market and future market.

What is the spot market?

In short, it is the market where currencies are bought and sold based on the current price.

What are the forwards and futures markets?

The forwards and futures markets do not trade actual currencies. Instead, they deal in contracts that represent claims to a certain currency type, a specific price per unit and a future date for settlement.

The spot market has always been largest because it is the underlying real asset that the forwards and futures markets are based on. Before, the futures market was the most popular because of its availability, but now, because of electronic trading, the spot market has gained momentum among retail traders. When anyone refers to the Forex market, they are usually referring to the spot market.

I think for now, thats all you need to know. You can always find tons of resources in the Internet on this subject.

Now, I will explain some Forex basics, which you need to know as a Forex trader. They are: