US 30 Challenge

The Forex Scalper

One Team One Goal:
● stick to the plan & don’t be greedy. It will come back to bite
● Control emotions & thoughts. Don’t keep moving stop loss/end up losing more money
● Pips have no emotion-Unit of movement
● Money is emotion-everyone wants it
● Work hard for my goals. Believe I can do it because I can
Ch 1: What is Forex:
● Trades 5.3 trillion a day
● 5 days a week/24hrs a day
● 4 trading zones: Sydney, Tokyo, London, NY
● open/close diff times in summer/winter
● mostly trades currencies: US dollar, EURO, Jap Yen. Most popular pair EURUSD
● Banks are biggest players in market
● Tech analysis: studying price movement of pairs/trend lines, S&R, indicators
● Fund analysis: economic news
● Swing/Trend trading: look for predictable swings, use stop loss. Stay in read as long as
it’s going with the trend
● Day trading: 5-10 trades a day, usually don’t hold trades overnight, right stop loss
● Scalping: short time frame, 5-10 pips
● 3 trading charts: candlestick, line, bar
● Line chart: shows trend and S&R
● Bar chart: individual prices for certain time period. Has open, high, low, close point
● Candlestick: similar to bar but easier to read
● Fundamental indicators: increased interest rate-stronger currency, low interest rate-
weaker currency, production data-industrial countries, bullish if #s are higher than
expected and bearish #s are lower than expected, employment data-higher #s is bullish,
lower #s bearish, GDP-confirm trend that’s begun
Ch 2: Technical Analysis
● Support/resistance is most common
● Support price is set lower than current price, price can hit support & go up or break
through support. A good place to buy
● Resistance price is set above current price, price can hit & go down or break through the
roof. A good place to sell
● Line chart: a good to see S&R
● Right zones: draw zones on the wicks
● SRB-support becomes resistance- sell setup. Keep SL small. SL 5-10 pips below zone
● RBS-resistance becomes support- buy setup
● Supply=sell
● Demand =buy
● Fresh supply zone has few candles-traffic.
● Fresher the zone the lower the risk
● 3 market structures: uptrend, downtrend, sideways
 ● Uptrend- worth more
● Downtrend-lose value
● Sideways- prices move in narrow range
● H-high, HH-higher high, HL-higher low, L-low
● LL-lower low, LH-lower high
● Head & shoulders-mostly seen at highest point of upward trend. Set up to go down &
repeat same pattern. 2 shoulders, head, neck. Shows weakness of a trend
● Neck-confirms a trade setup at the beginning of the neck/trend line after the 2nd
shoulder has formed
● Head & shoulder above- 4 consecutive steps that signal reversal. Left should formed
when a pair reaches a new high & retraces to a new low. Head is formed when a pair
reaches a new HH & falls back around the level of the low formed at the left shoulder.
Right shoulder is formed by a sell but not as strong as the sell that formed the head. Pair
breaks above neck and creates uptrend
● Double top-uptrend at level where new highs are formed followed by pull back & retest of
that same high
● Double bottom-opposite of double top
● EMA-14 & 50 ema exp. 200 ema for higher TF. look at 1,4hr & daily chart for crosses.
Look for smooth & spread apart cross on 5,15 min
● Don’t enter right after cross, wait for retest & break to up/down side
● Momentum=trend strength
● Momentum-bullish uptrend
● Momentum-bearish downtrend
● Don’t trade on every TF
● Strong trend-buyers in control, shallow pull backs
● Healthy trend-buyers in control but with selling pressure
● Weak trend-buyers & sellers are going for control with buyers having slight advantage,
expect steep pullbacks
● Enter trend on breakout or pullback
● Uptrend-put SL below previous low
● Downtrend-put SL above previous high
● Draw trend line by connecting lows of uptrend or highs of downtrend
Ch 3 Market Manipulation
● Market manipulation-stock broker, traders, analyst, bakers manipulation to change
market prices to fulfill
● Manipulation-fake news, spooking, wash trading, bear raiding
● Fake news-verify news source before trading
● Spoofing-short-time traders place orders with no intention to have them filled
● Wash trading-when big players buy & sell the same security & almost instantaneously
which pumps up volume
● Bear raiding-big players force share prices lower by placing big sell orders to drop price
& hit SL
● Fakeout-traps breakout traders
● Candlestick pattern change
 ● Compression-emptying orders before impending news or world events that will cause big
market moves-NFP or FOMC
Ch 4 Japanese Candlesticks
● Comes from Japanese traders over 500 yrs ago
● Candlesticks are price action, view of current market. Easy to read & trustworthy
● Doji-small body, thin line. Same open/close price, indision candles
● Long legged, dragon fly, tombstone, 4 price
● Spinning top-small bodies, indecisive
● Hanging man-bearish candlestick pattern at end of uptrend, small body/long wick
● Hammer/pin bar-reverse signal at end of downtrend, almost no top wick, green body
strong confirmation
● Shooting star-shows the end of uptrend, can set up sell trade after the close of the
shooting star. Long too wick
● Tweezer top/bottom-indicates reversal soon. 1st 1 has to be in line with trend so for
uptrend it’s green & 2nd 1 red, wicks have to be the same length
● Marubozu-bullish no wicks on a long body, daily & weekly TF
● Bullish engulfing candlestick-occurs at bottom of downtrend or @ consolidation support
levels. Small red candle followed by big green candle, buyers take over
● Bearish engulfing candle-occurs at end of uptrend or @ consolidation resistance levels.
Small green candle followed by big red candle, sellers take over
● Morning star-3 candle sticks. Starts with red candle then a doji, spinning top, or
hammer/pin bar then a green candle that closes in top 40% of 1st red candle. Look for a
buy trade
● Evening star-3 candles. Starts with green candle then shooting star, doji, or spinning top
then a red candle that close in the bottom 40% of 1st green candle. Look for sell
● Inside candlestick formation-2 candles, 2nd candle is completely covered by shadow oh
1st candle (mother candle), good risk to reward ratio
Ch 5 The Mindset
● must be smart, patient, disciplined, right mindset to be successful
● Trade with money you can afford to lose
● Don’t doubt, have faith in yourself
● Learn from mistakes
● Fear comes after a streak of losing trades, once you learn the market you have little to
no fear
● Revenge-an emotion that can lead to more negative outcomes
● Greed-most dangerous of all emotions & can lead to risking more
● Risk management-no risk control leads to emotional trading. Set losing limit before
trading
● Losing trades-don’t let them get to you
● Losing money-don’t pay for services or pay for other bad traders to trade for you
● Chart loonatic-keep it simple & use indicators that work for you
● Over trading-don’t trade on emotions
● Aim for the PIP not for the money, Pip goals & risks
● Must have game plan or strategy. Keep log of trades
 ● Trade successful in demo 3-6 months before going live. Practice makes perfect
Ch 6 Trading plan
● Use SL
● Don’t open 2 trades at once
● Keep trades in notebook
● Think in terms of % & PIP
● Record every trade in spreadsheet
● Trading plan: pairs, times, entry, strategy, risk reward, goal, rules
Ch 7 Check List
● Must have self control
● Control emotions & temptation
● Be consistent
● Dont’s:trade too big lot sizes, replace SL, open too many trades, over leverage, keep
trades open too long
● Set monthly goals, don’t let losses Bring you down
● The best way to predict my future is to create it!