Beginners Bootcamp Version - Learn Forex & Currency Trading PDF Free Download

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BEGINNERS BOOTCAMPLEARN FOREX

Copyright 2016 Beginner Bootcamp presented by Learn to Trade Ltd. Trading asLearn to Trade Ltd.All rights reserved. May not be reproduced or transmitted in any form or by any means, electronic ormechanical, including photocopying, recording, or by any information storage and retrieval system, in partor in whole, without explicit written permission of Learn to Trade Pty Ltd; except where permitted by law.The Information in this manual, and presented in this seminar is for educational purposes. Beginner Bootcamp,Learn to Trade Pty Ltd, Greg Secker, its employees or representatives are not stockbrokers, broker dealers,spread betting providers or investment advisors. We do not recommend particular stocks, currencies, bonds,options, CFD’s, or securities of any kind. If particular trades are mentioned, they are only cited for educationaland illustrative purposes.Learn to Trade Pty Ltd (ACN:138178542, AFSL:339557) provides general information and educational contentonly. This is not personal advice and no individual needs or circumstances have been considered, nor is thisan offer to buy/sell financial products. Financial products are complex and entail risk of loss, and you shouldalways obtain professional advice to ensure trading or investing in such products is suitable for yourcircumstances, and ensure you obtain, read and understand any applicable offer document.The information contained herein (“Content”) has been prepared and issued by Learn to Trade Pty Ltd (LTT),and all intellectual property relating to the Content vests with LTT unless otherwise noted. The Content isprovided on an as is basis, without warranty (express or implied). Whilst the Content has been prepared withall reasonable care from sources we believe to be reliable, no responsibility or liability shall be accepted byLTT for any errors or omissions or misstatements howsoever caused. No guarantees or warranties regardingaccuracy, completeness or fitness for purpose are provided by LTT, and under no circumstances will any ofLTT, its officers, representatives, associates or agents be liable for any loss or damage, whether direct,incidental or consequential, caused by reliance on or use of the Content.Version 1.0 AUSCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.1

Get you to a deeper understanding ofhow price action can assist yourdecisions Teach you more about support andresistance Expand your technical tradingknowledge in preparation for the MasterTrader Program2Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.

ContentsHow to Set up a ManualTerminal4Trend Lines49Types Of Orders13Moving Averages57Cyclicity17Intro to Price Action65Horizontal Levels38Trader Competency Check84Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.3

Manual Terminal You will need a Manual Terminal in order to follow the traders in the livetrading sessions within SmartCharts or place manual trades of your ownas you become more experienced This allows you to manually input your entry price, stop loss and targetlevels Allows you to manually select what type of order you wish to place.Buy, Buy Stop, Buy Limit, Sell, Sell Stop, Sell Limit Allows you to trade multiple currencies and markets not availablewithin the standard strategies Major news items are still marked on the screen with a vertical red lineas normal You can now do further time frame analysis to help with directionassessmentCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.5

Select the icon below from your menu buttons and click any of the currency pairsCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.7

Select the icon highlighted to get to the part of the terminal that enables youto input the required information for the trade.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.12

Types of ordersThere are 6 types of orders you canuse in tradingBuy StopSell StopBuy LimitSell LimitBuy at MarketSell at Market– Immediate Entry– Immediate EntryCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.14

Types of ordersBuy Stop - LongIf the price goes through your entry pointSell Stop - ShortIf the price goes through your entry pointCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.15

Types of ordersBuy Limit - LongIf the price comes back to your entry pointSell Limit - ShortIf the price comes back to your entry pointCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.16

Cyclicity Cyclicity is the description of the movements of the markets The word itself explains that price cycles If you are to succeed at trading you need to understand howprice cycles and how you can take advantage of it. One thing you must understand is that price does not cycle asperfectly as we would like Therefore we need to combine our price actionunderstanding with cyclicity tounderstand areas or zonewhere price is likely to turn This means that there will be times where we get this wrong,however as you grow as a trader these times will get lessfrequent, unfortunately they will still occur!Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.18

Trade the “Bounce”, not theExtensionProfitable Forex Traders “trade the bounce,not the extension”This is the strongest psychological reason thatPros make money and amateurs lose moneyin the Forex MarketThe professional approach is grounded inbuying at a cheaper price, or selling at amore expensive priceCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.20

CyclicityYou need to haveidentify a trend.2complete cycles to1 complete cycle consists of a move with thetrend and a move against the trend. We’llname these Phase 1 & Phase 2.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.21

Horizontal Levels They are a fixed level that acts as support orresistance to price This is far stronger than a diagonal level, andthey are what most fund traders use to judgewhere price is going This is where the smart money is located,where the smart money trades, and it’swhere you want to beCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.27

Horizontal LevelsYou can just trade off horizontal levels in their own right,but it is far more effective to check the price action andthe cyclicity at these levels to determine whether price isgoing to break through or bounce.RememberWe are trying to turn you into sensible traders that arepatient and wait for price to tell you what to do. We arenot just trading off of horizontals blindly, but checkingthat price action is in agreement before we evenconsider taking the trade. It is better to be out of themarket at breakeven, than in the market in a bad trade,trying to manage your way out of it.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.28

Horizontal LevelsThe 3 types of market movements off of horizontals are Bounces Breaks The Chase Price has to bounce off of these horizontal levels morethan it breaks through otherwise horizontal levels wouldnot exist. Therefore trading bounces can be one of the mostprofitable ways of trading, with a good success rate.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.29

Horizontal LevelsPrice only breaks out 30% of the time so peoplethat trade bounces tend to win more, howeverwhen price does break out it tends to do soaggressively. This means you can get improvedReward:Risk.Chasing is when you miss the move, and price istoo far to be able to enter in a sensiblelocation. You are too far into phase 1 and closeto the likely reversal to phase 2. However youenter anyway. This is a great way to losemoney. Please don’t do it!Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.30

Horizontal LevelsHard levels of resistance or support are where price hasbounced off of this level previously, and failed to break it.Soft levels of resistance and support are where price hasbounced off of this level previously, BUT price has brokenthrough it beforeHard levels of support and resistance tend to be strongerthan soft levels of support and resistanceHowever remember, price action is key, let it tell you whataction to takeCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.31

Horizontal LevelsWork with the person next to you or in groups of 3 as necessaryBring up any 15 minute chart or below of any currency pairRoughly over a 3 day period, mark the hard and soft levels ofsupport and resistance.Notice how price reacts off of these levels throughout the restof today and over the next 2 daysNext, pick a daily chart and repeat the process, but keep aneye on these levels over the next 3 months.Again, watch how price reacts off these resistance and supportlevels, and look for trading opportunities in the weeks ahead.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.32

Trend LinesTrend lines help us to determine thetrend and the general direction of themarket, and help us to spot ‘zones’where we would like to buy or sell.They work well alongside MovingAverages and Cycles.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.34

Moving AveragesMoving averages (MA) are designed to give you a calculation of theaverage price of a currency over a specific period of time. Oneimportant thing we need to consider here is how the moving averages arecalculated. The period, source and MA type can change thecharacteristics of an MA. Key features of MA:Period: The number of bars the MA is calculated over. i.e. 5, 10, 20, 50, 100.Apply to: This is the price of each bar that is used to calculate the movingaverage. i.e. open, high, low, low and h l/2. In this manual we will focusmainly on close for trend analysis and h l/2 for the Advanced Snap Back.MA Method: This shows how the average is calculated. For example asimple MA is the average of all bars prices all are weighted equally,whereas an Exponential Moving Average (EMA) type will be heavilyweighted towards the recent bars price average. For trend analysis we willgenerally be using exponential MA’s in this manual. Examples:EXPONENTIAL and SIMPLE, SMOOTHED AND LINEAR WEIGHTED.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.42

So why use EMA’s based on theclose of the bar to identify trend?1. EMA’s are more sensitive to current price action changesand therefore are ideal for spotting trends and change oftrends early2. The close of the bar is the most recent price and again givesus the most up to date information on price action3. Most other trades are doing this, therefore it becomes a selffulfilling prophecy.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.43

Using EMA’s to identifytrend Order, Angle, Separation. Order: For uptrend faster EMA’s must be abovethe slower EMA’s. For downtrend faster EMA’smust be below the slower EMA’s Angle: The angle of the EMA is becomingsteeper Separation: The separation between the EMA’sis becoming widerCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.44

Order for 2 EMA’s20 EMA50 EMAThe fast EMA must be above the slow EMA for an uptrend and the fast EMA must bebelow the slow EMA for a down trend. In the example above the 20 EMA is above the50 EMA, indicating an UPTREND.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.45

Angle for 2 EMA’s20 EMA50 EMAThe angle of the EMA’s are pointing upwards confirming the uptrend isstrong.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.46

Separation for 2 EMA’s20 EMA50 EMAAs the EMA’s fan out and separate from one another it is also signallingthat trend is becoming stronger.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.47

Price Action Price Action is one of the most important parts oftrading and understanding any market It is the most important part of reading the charts Price Action leads all indicators The higher the timeframe the stronger the price action Price Action shows you what is happening now, andcan show you which way the market is likely to move next Shows the battle between buyers and sellers or demandand supplyCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.49

Price ActionThere are 3 main types of Price Action Continuations Reversals IndecisionTo be an effective, and more importantly, profitabletrader you need to know how price shows you whatis about to happen next.RememberPrice Action shows sentiment in the market and isone of the best ways to trade.It DOES NOTGUARANTEE that price will go in the direction youexpect, but it provides you with an edge.Astraders, all we need is that edge.Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.50

Bullish continuation bar Bullish continuation bar showsprice has moved up over thelength of the bar. After this occurs, one wouldexpect price to continue inthis direction These bars are stronger thecloser the close is to the highand the closer the open is tothe low These are much stronger whentrading with the trendCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.51

Bearish continuation bar Bearish continuation bar showsprice has moved down over thelength of the bar. After this occurs, one wouldexpect price to continue inthis direction These bars are stronger thecloser the close is to the lowand the closer the open is tothe high These are much stronger whentrading with the trendCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.52

High Test Bar - ReversalRejects theupward pushRejects theupward pushHigh Test Bar PriceMoving DownRegardless of colour:the Open and Closeare in the lower halfof the bar ANDOpen or Close inlower 1/3Copyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.53

Low Test Bar – ReversalLow Test Bar Price Moving upRegardless of colour:the Open and Closeare in the top half ofthe bar AND Openor Close in top 1/3Rejects thedownward pushRejects thedownward pushCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.54

Train Tracks/Twin Towers - ReversalRejects the upward push Train Tracks show you thebreak down of a high or lowtest bar You can see the reversal over2 bars Visually shows you the changefrom buyers to sellersThe two bars combined wouldform a high test barCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.55

Train Tracks/Twin Towers - Reversal Train Tracks show you thebreak down of a high or lowtest bar You can see the reversal over2 bars Visually shows you thechange from sellers to buyersThe two bars together wouldform a low test bar.Rejects the downward pushCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.56

Bullish Engulfing Bar - Reversal Engulfing bars show a hugeshift in momentum You can see the reversal over2 bars The second bar must breakthe high and the low of theprevious bar Visually shows you the changefrom sellers to buyersFalse Breakout It is much better for the closingprice to break the high of thesmaller barRejects the downward pushCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.57

Bearish Engulfing Bar - ReversalRejects the upward pushFalse Breakout Engulfing bars show a hugeshift in momentum You can see the reversal over2 bars The second bar must breakthe high and the low of theprevious bar Visually shows you the changefrom buyers to sellers It is much better for the closingprice to break the low of thesmaller barCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.58

Price Action These are the major types of Price Action setups in a standaloneformat Combinations of these Price Action patters can and do occur e.g. Double inside doji bar Inside high test bar Doji outside bar Further experience with these patterns will help to increase yourunderstanding of where future Price Action is likely to move As you learn to use these Price Action setups, you will be able tocapture turning points more effectively You must be aware that these are not 100% successful, but theyprovide you with an edge, when combined with other techniques thatyou will learn throughout the rest of this course, they can give youpositive reward to risk, high probability setupsCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.60

Price Action – Practical 1Which of the following suggests price is likely to continue in thedirection it is headed? High Test Bar Bullish Engulfing Bar Bearish Continuation BarWhich of the following types of bar is a reversal? Low Test Bar Doji Bar Bearish Continuation BarWhich of the following shows extreme indecision in themarketplace? Train Tracks Double Inside Bar Doji BarCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.61

Price Action – Practical 2 Work with the person next to you, or form groups of 3 as necessary.Take the daily chart of a currency pair on SmartCharts. Find each ofthe price action setups that you have just been taught, look at the waythat price responds to them.The price action that you need to find is as follows: Bullish Continuation Bar Bearish Continuation Bar High Test Bar Low Test Bar Train Tracks (one for long and one for short) Bullish Engulfing Bar Bearish Engulfing Bar Inside Bar Double Inside Bar Doji BarCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.62

Price Action – Practical 3 Work with the person next to you, or form groups of 3 as necessary. Have a look at some of your recent trades and see if price actiongave you a signal which could have changed your entry, target or stoploss on the trades.The price action that you need to find is as follows: Bullish Continuation Bar Bearish Continuation Bar High Test Bar Low Test Bar Train Tracks (one for long and one for short) Bullish Engulfing Bar Bearish Engulfing Bar Inside Bar Double Inside Bar Doji BarCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.63

Beginner CompetencyCheckDon’t forget you need to complete your simplebeginners ‘Trader Competency Check’ in order tobook and attend Master Trader and the otheradvanced coursesOnce you have completed two BeginnerBootcamps (or if you feel you are ready) pleasecontact Abdallah Talukdar, he will send you ght 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.64

FeedbackWe want to hear from you so please take acouple of minutes to give us feedback online. Wealways listen and love to make your ckCopyright 2014 Learn to Trade Ltd. This content may not be reproduced without strict permission from Learn to Trade Ltd.65

We would like to take this opportunity to welcome you to our Beginners Bootcamp.Below is a breakdown of what you can expect to discover during this period ofimmersion training. This Bootcamp has been designed to enable you to embed,improve and practice the trading skills you learned in our award winning ‘Learn Forex’program and take you to the next level and get you ready to sit your ‘Beginner TraderCompetency Check’ before moving on to the ‘Master Trader’ program. You will cover:Types of OrderCyclicitySupport and ResistanceTrend LinesMoving AveragesIntro to Price ActionCONFIDENTIAL INFORMATIONREDISTRIBUTION PROHIBITEDLearn to Trade Pty LtdSuite 501132 Arthur StreetNorth Sydney 2060 NSWPhone: (02)84 totrade.com.auACN: 138 178542, ABN: 99138178542, AFSL: 339557Learn to Trade Pty Ltd (ACN:138178542, AFSL:339557) provides general information and educational content only. This is not personal advice and no individual needs orcircumstances have been considered, nor is this an offer to buy/sell financial products. Financial products are complex and entail risk of loss, and you should always obtainprofessional advice to ensure trading or investing in such products is suitable for your circumstances, and ensure you obtain, read and understand any applicable offerdocumentVersion 1.0

trading sessions within SmartCharts or place manual trades of your own as you become more experienced This allows you to manually input your entry price, stop loss and target levels Allows you to manually select what type of order you wish to pla