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DISCLAIMER
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http://www.123freesignals.com

Contents
Introduction

The Definition of the Forex Market

Market Hours

Choosing a broker

10

Broker Reviews

12

Trading Terms You Must Know

16

The Fundamentals of Risk Management

18

How to Use our Signals

21

A guide to trading Non Farm Payrolls (NFP)

22

Why 90% of All Traders Lose & How To Be Part of the 10% That WIN!

23

A Brief Introduction to Binary Trading

26

Current Offers

28

Introduction
I hope that you are excited to learn more about Forex and about our company
123freesignals.
After finishing this short ebook, we hope you will be armed with the information that you
need to build your own successful portfolio. I have laid it out in a simple to understand
format that is easy to follow with no BS and no padding.
I am also going to show you why 90% of traders lose their shirts, and how the other
10% WIN consistently.
Lets get down to business!

The Definition of the Forex Market

The Forex market, also known as the foreign exchange or the FX market, is the place
where currencies are traded. It is the largest, most liquid market in the world with an
average traded value of over $4 trillion per day and includes currencies from all over
the world.
Compare that to the $25 billion per day that the New York Stock Exchange trades and you
can easily see how enormous the Forex market really is. It actually equates to more than 3
times the total amount of stocks and futures markets combined!

So what actually is Forex trading?

Forex transactions always include two currenciesone currency is purchased while
the other is sold.
For example, in a Forex transaction euros (EUR) may be purchased while US dollars
(USD) are sold; or Great British pounds (GBP) may be purchased while Japanese Yen
(JPY) are sold.
The two currencies involved in a transaction are considered a currency pair (e.g.,
EUR/USD or GBP/JPY) and each currency pair has an exchange rate.
There are two ways to make profit on the currency trading markets:

Sell a currency in the hope it will fall against another currency

Buy a currency in the hope it will rise against another currency

Trading is always done in currency pairs. Some of the main currency pairs are:

GBP/USD
EUR/USD
AUD/USD
USD/CAD
USD/JPY

There are many other trading pairs but the currencies above have the biggest liquidity
and the largest daily traded volumes.
The goal of currency trading is similar to the goal of stock trading where you attempt to
buy low and sell high. Currency exchange rates fluctuate up and down throughout the
day, providing Forex traders with the ability to potentially profit from these movements.
The basic concept of currency trading is similar to those used in equities, bonds, futures,
and options marketsthe distinction being the product that is traded. In fact, most new
Forex traders will probably find the transition to Forex to be

simple and straight forward. The technical indicators and strategies used in other
markets can be used in the Forex market as well.
Forex trading is one of the fastest growing financial markets in the world. The daily
volume of trades is in excess of four trillion dollars a day (thats
$4,000,000,000,000) making it the most liquid market in the world!
The bulk of trading is done electronically via specialized software applications known as
Forex platforms. Access to these platforms requires an account with an online Forex
currency trading broker. These brokers act as go betweens and transmit your orders to
and from the Forex markets. Please note that not all brokers are created equal and in a
later section we will cover a few of the
brokers we have used and come to trust, however it is always important to do you own
due diligence when choosing a broker as each have their own merits and
disadvantages based on your individual circumstances and trading
strategies.

What makes Forex trading so attractive?

The Forex market never closes (well almost). No matter what time of day or
night, a market exists for trading one currency against another. Forex exchanges
exist all over the world and its always trading time somewhere. Because Forex
trading is done electronically without you
physically having to be at any exchange (no banknotes change hands), you can
even trade while you sleep or away from your desk if you set your
trading system up like that. Your broker should open 9 or 10PM GMT
Sunday and remain open until 9 or 10PM GMT Friday

The market is highly accessible. Theres no need for large investments,

advanced technology or brain-bending qualifications. You can begin trading
with an initial deposit as low as $50 USD and an Internet or
mobile connection. Yes, additional resources will let you go further, faster, at the
beginning, but trading in the Forex market is available practically without
restriction.

A little capital can control large trades. Also known as leverage, Forex trading
allows you to open trades that are as much as 400 times as big as the capital you
commit. For example, you could control a $20,000 US trade with only $50 USD
of your own capital. You make the same percentage of profit, but at the $20,000
level, instead of the $50 level.

Transaction costs are low. You make a Forex transaction when you buy or sell
money in one currency for another. There would be no point in trading, if the cost
of making such a transaction ate up all your profit. Thankfully, Forex transaction
charges remain minimal, thanks to an open, competitive, very liquid market and
the high volume of transactions continually taking place.

Earning potential is unlimited. Lets put it this way. The United States of America
turns over (its GDP) about 15 trillion dollars a year. The daily trading volume
in Forex is over 4 trillion dollars. This is 30 times as large as all the worlds stock
markets combined! That means the Forex market turns over in less than a week
what it takes the United States of America to turn over in a year. In about 3 weeks
it turns over the equivalent of the combined, yearly GDP of the whole world. Is
that enough potential for you?

You can earn whether the market goes up or down. In some markets, you can only
make money by first buying low, then selling high. Forex is different: you can
still buy a currency low (called being long in that currency) to then sell it high;
however, you can also first sell a currency high (being short in that currency) to
then buy it back low. As long as there is movement in the market, no matter if it
goes up or down, you can make profit.

Trade from anywhere. Not only are you free to trade when you want, but also
where you want. As long as you can get an internet connection, you can place buy
or sell orders. You no longer even need a computer: comprehensive trading
applications and interfaces are also now available for the latest generations of
smart phones and tablets.

Market Hours
Unlike the traditional stock market, the Forex market is open 24 hours a day. At any
time, somewhere around the world, a financial center is open for business and is
exchanging currencies every hour of the day and night.
It follows the sun around the world, so you can trade late at night or early in the
morning.
TIME ZONE
Tokyo Open

NEW YORK
7:00 p.m.

GMT
0.00

Tokyo Close

4:00 a.m.

9:00

London Open

3:00 a.m.

8:00

London Close

12:00 p.m.

17:00

New York Open

8:00 a.m.

13:00

New York Close

5:00 p.m.

22:00

Keep in mind that these additional hours also add additional risk for us since we
arent able to monitor our investments 24 hours every day. There are several safety
options, such as limits and stop losses that we will discuss in another chapter.

10

Choosing a broker
One question that comes up a lot is can you recommend one broker? The short
answer is no.
The honest truth is there are no one size fits all brokers. What is good for me may
not be good for you. Choosing a Forex broker is a personal decision and there are
many factors to consider.
So my aim here is to provide you with information that will help you to make an
educated decision on which broker to choose. You should always do your own due
diligence and make sure that you feel comfortable with depositing money into a broker
account before you do so.
Do not take this decision lightly, but at the same time dont stress over it the process
does not need to be complicated just like in your trading decisions, once you do your
homework, things tend to fall into place. Chance favors the prepared trader and
everything you need to make an informed decision is listed right here.
I will cover a few of the bigger brokers and what they offer but again do not take these
as recommendations do you own due diligence and make sure they are right for you.
Anyway, lets talk about important criteria for a good broker.
Security
The first and foremost characteristic that a good broker must have is a high level of
security. Make sure that you check that the broker you are considering is regulated.
Although regulation does not guarantee that they are a good broker or that things
cannot go wrong, it at least provides you with some level of protection if they do and
the fact that they are regulated shows that they have a certain level of professionalism,
which in my opinion is essential in this game.
Below is a list of some countries with their corresponding regulatory bodies:

United States: National Futures Association (NFA) and Commodity

Futures Trading Commission (CFTC)

United Kingdom: Financial Services Authority (FSA)

Australia: Australian Securities and Investment Commission (ASIC)

Switzerland: Swiss Federal Banking Commission (SFBC)

Germany: Bundesanstalt fr Finanzdienstleistungsaufsicht (BaFIN)

France: Autorit des Marchs Financiers (AMF)

Transaction Cost
Every single time you enter a trade, you will have to pay for either the spread or a
commission so it is only natural to look for the most affordable and cheapest

11

rates. Sometimes you may need to sacrifice low transaction for a more reliable broker.
Make sure you know if you need tight spreads for your type of trading, and then review
your available options. It's all about finding the correct balance between security and
low transaction costs.
Deposit and Withdrawal
Look for a brokerage with ways to fund and withdraw that are acceptable to you. Don't
wait until you've made some money and then find out that it's difficult and expensive to
get your profits.
If it seems a difficult and delayed process to withdraw funds from your account that is
not a good sign. You can do your own tests by depositing and withdrawing a small
amount of money.
Trading Platform
When looking for a broker, always check what its trading platform has to offer. If you
have a day job and will be trading from work are you able to install
MetaTrader4 on the machine you are working on or will you only have access to
a web browser.
Customer Service
This is an important one, but often not considered. How easy is it to contact your broker
if you need their assistance? You should look for one that has a sound customer service
setup with easy communication methods such as online chat, phone and email and with
a good response time.
The competence of brokers when dealing with account or technical support issues is
just as important as their performance on executing trades. Brokers may be kind and
helpful during the account opening process, but have terrible "after sales" support.
Available currency pairs
Brokers do vary in what they have available to trade. Some have a huge range where as
others only offer a few choices. If you only want to trade the major pairs, this shouldn't
be a problem for you. Some brokers even offer non-Forex products on the same trading
platform. Keep in mind that some brokerages have fewer pairs on their demo accounts
than on their live accounts. If this information isn't listed on their website, you'll need to
contact them to ask.
Lastly, open demo accounts and ask questions. Doing your own tests is the best way to
assess if a broker is suitable for you.

12

Broker Reviews
SunbirdFX - website
They has a very good reputation as a global foreign exchange broker. It has been known
for its honesty and has had a major overhaul in recent years to ensure they are one of
the best brokers now available.
Alpari has won a number of accolades and awards and are fully regulated by the
FMRRC.
The broker encourages new business by offering a 100% welcome bonus on their
first deposit of $2000. This means that traders who deposit $2,000 will receive
$4,000 in their trading account. Please request this bonus when you deposit and
you will receive it
Many traders are happy to use their Meta Trader 4 (MT4) trading platform and its
free-to-use historical chart data can be useful when checking past testing systems.
Alpari has made the information available in the public domain, so it's not just
available to account holders.
SunbirdFXs customer service reputation is of a high quality with live chat always
available and a dedicated personal manager to help if needed.
Their spread are very competitive with EURUSD about 1pip and non-majors such as
GBPCAD about 3pips.
So in summary, SunbirdFX has a good reputation, low spreads, plenty of
instruments to trade with, and a popular, reliable trading platform with an
excellent welcome bonus.
Visit the Sunbird FX website to find out more.

13

FXCM - website
FXCM is one of the best known and largest brokers out there. The platform itself is
judged by many to be among the best and everything a professional trader would want
seems to be in here; flexible charting, one-touch clicking, several different order types
and execution preferences. Trading conditions and customer support both fair very well
with FXCM too. It has great flexibility and very little in the way of complexity.
The ease with which you can use its platform is well lauded and the learning curve to
understand its processes is very short. The company is very big though (over $100
million in firm capital) and customer support has to be shared among a million or so
other clients, which will always make it difficult to keep
everybody happy. However, if pressed, FXCM will get things done.
FXCM utilizes many features including the use of multiple trading platforms like the
popular downloadable Meta Trader 4 (MT4) and straight through processing. FXCM
also uses its own downloadable software including Active Trader and FXCM Trading
Station, and there is a Java platform that can be used by those using iOS devices (iPad,
iPhone and Macs etc).
FXCM Trading Station is popular among the serious discretionary traders because of
some of the one-click facilities used in order execution. The good thing about FXCM is
that the company can now be recommended to just about anyone. It accommodates for
smaller investors with a sister broker called FXCM Micro, although here you cannot
perform straight through processing.
But straight through processing is used by FXCM clients for all its orders, there are no
restrictions on the way you can play the trading game style either. Orders can be placed
anywhere, even inside the spread itself so scalping becomes fair play and you can also
trade during news times, but spreads will almost certainly widen if you do.
FXCM (Forex Capital Markets) was founded in 1999 and based in the US it has a
strong online reputation allowing institutional and retail clients to speculate on global
foreign exchange markets in what is termed as "margin Forex trading".
FXCM are one of the world's most accountable brokers; it trades publicly on the New
York Stock Exchange (NYSE) and is transparent with all its trading enough for all to
see. Its global reputation and size probably make FXCM a good a place as any to start
up trading.
Visit the FXCM website to find out more. (please note we use BBFX as an
Introducing broker to give better bonuses and a better service)

14

Hot Forex - website

Hot Forex allows hedging with a good spreads available across the majors, and you can
scalp too. Hot Forex is all about convenience, but there are traders who inevitably see
this as a weakness. However, Hot Forex has been around for years and has performed
well against others brokering in the same playing field, so they must be doing
something right.
They are regulated by the Financial Services Commission in Mauritius and use the
highly reputable MT4 software trading platform. There is also a trader platform for
those on smartphones called the "Hot iPhone", "Hot Android" and Hot Forex PAMM
network, which can be very useful for more mobile traders.
The online Hot Web Trader tool is also user friendly to use and easy to learn. The
minimum deposit you need is a paltry five dollars; this makes it ideal for novices and
beginners in the Forex trading platform to get started on just a small
amount. Match that with the ease of opening an account and you have the ideal place
to start.
There are no commissions and a free trial is available if you are interested in dipping
your financial toe in the water. The spread of your pips goes from 1.0 to
2.0 on the majors.
Many traders work and trade on the train, the bus or in a taxi cab, so Hot Forex's MT4
trading platform running as an app makes this all possible. It also works on PDA
devices as well as most tablets (like the iPad and Galaxy S4/5). PAMM and Blackberry
are also supported but
Of course desktop traders are still well looked after. If you would rather trade on your
PC or desktop then The Hot Web Trader is the perfect tool to use.
Customer support from Hot Forex is very good too; email queries are answered quickly
and you can call from anywhere in the world and knowledgeable staff are on hand to
help out.
Visit the Hot Forex website to find out more.

15

BELFOR FX - website
BelforFx is legally constituted in London, New Zealand, British Anguila and
Seychelles as a global financial services organization that provides a wide range of
Investment solutions for Clients around the world.
BelforFx also is a full Financial Services Provider regulated in New Zealand, with
registraton to provide a wide range of financial services including prime Forex
Solutions to both retail and institutional Clients.
They have a range of accounts from standard to VIP accounts which will suit all level
of traders and account sizes.
They also offer an attractive 100% welcome bonuses to new clients. Visit
the BELFORFX website to find out more

16

Trading Terms You Must Know

Now you most likely wont be standing amidst a few hundred other screaming
stockbrokers on Wall Street, but it is important that you understand some of the terms
that you would be hearing if you were. You want to be sure to understand what these
terms mean in your trading.
These are some of the most common trading terms:
Bid/ask spread also known as the bid/offer spread, is the quote of the price at which
the parties involved are willing to buy or sell. The bid price is the price
that a party is willing to purchase, while the ask or offer price is the price at which the
party is willing to sell the same. The difference between the two prices
is considered the spread.
If the spread cannot be closed, then no deal can be made. The forward price (or agreed
upon price) and all details involved in the transaction are written in a contract and
referred to as forward points. Most of the time it is outlined as available until a certain
date and if this transaction isnt completed by that date (transaction date), then at that
time it must be renegotiated.
Currency Pair since the value of one currency is only relevant when put in terms
of another, forex traders will always deal in currency pairs.
As I mentioned before, the first currency in the pair is considered the base
currency. The second currency in the pair is the counter currency.
Leverage & Margin Margin is a good faith deposit that a trader puts up as collateral
to hold a position. The amount of margin that a trader puts up determines his leverage. In
other words, when a trader opens a position larger than the amount of funds required to
open it, the trader has put down margin to receive leverage. While margin refers to the
amount of funds a trader has put down as collateral, leverage refers to the amount of
money he controls relative to the margin.
Pip (Percentage in Point) refers to the very last digit of a currency price. Just for
illustrative purposes lets take the EUR/USD at 1.2635. If the sell price was
1.2638 then we have a 3 pip increase. If we sold EUR/USD at 1.2735 and the price
then drops to 1.2635 we have made a 100 pip profit.
Stop Limit Order An order to buy or sell a certain quantity of a certain security
at a specified price or better, but only after a specified price has been reached. A stop
limit order is essentially a combination of a stop order and a limit order.
Rollover/ Carry Trade A popular trading strategy used in the Forex market. It
guarantees traders at least some return on their medium and longer term positions.

17

In the carry trade, speculators buy high interest currencies and sell currencies with low
interest rates. These positions ensure that each trading day rollover- interest will be
posted to the traders account. It has the potential to significantly enhance a return.
Rollover is also sometimes referred to reinvesting any earnings in additional stock or
currencies.
Bear Market Refers to a strong trend of downward movement in several areas of the
market.
Bull Market Refers to a strong upward trend in several areas of the market.
Open Order Your order remains pending until it is either executed or
cancelled.
Stop Order Cancels any pending orders that are placed with the broker.
Market Makers/Jobbers Stockbrokers who hold or purchase securities at low prices
for the purpose of selling them to traders in a higher priced market so that the trader can
turn around and resell them for a profit essentially creating a separate market are
called market makers (also known as jobbers in Britain).
Those are just some of the most commonly used terms that I wanted you to be
familiar with.

18

The Fundamentals of Risk Management

Hopefully now you understand that the Forex market behaves a bit different than
other markets. Currency markets are highly speculative and volatile in nature.
Any currency can become very expensive or very cheap in a matter of days, hours
or sometimes even minutes.
The unpredictable nature of this market is one of the things that attracts traders to the
currency market.
With that being said money management is critical and makes the difference
between the winners and the losers.
Money Management
Money management is the most significant part of any trading system. Most
traders dont understand how important it really is.
The biggest problem traders and specifically new traders have is using proper money
management. The general rule is NEVER risk more than 2% of your account size per
trade. The reason for such a small risk is that even if the worst was to happen and you
hit 5 SL (stop losses) in a row then you have only lost
10% of your account, and still have 90% of your balance.
Of course, you should never expect to hit 5 SL in a row, however it does happen,
especially if you are trading many pairs and trading in the same direction. For example
USD negative trades and buying pairs such as EUR/USD, GBP/USD, AUD/USD,
NZD/USD and a stronger dollar then stops them out.
Forex trading is all about good consistent profits and building up your account size by
5/10/20/30/40%+ a month and not trying to double it daily by taking lofty risks or
gambles.
So how do you only risk 2% per trade?
Remember: It does not have to be exactly 2%, approximately 2% is fine so dont waste
time making exact calculations when you should be opening a trade.
The simple way is as follows:
Say you have a $1000 account, you take a trade and risk 2% - thus your total risk is $20.
So if the trade goes wrong and gets stopped out you only lose $20. If the trade hits TP
(take profit) then you should have made $30 to $80 profit, depending on your
risk:reward ratio.
When trading and selecting trades or calculating SL or TP try and have a risk:reward of
1:2 or better, if you do this correctly your TP level should be 2x as
19

many pips as your SL. Therefore if you risk $20 in your trade you can make a profit
of $40.
To calculate the lot size or amount per pip then you need to consider your SL and the
amount of pips your SL equates to. If your SL is 40 pips and you are risking
$20 in a trade then the amount per pip will be $0.50. If you were trading
EUR/USD then that would be a lot size of 0.05.
Of course different pairs have different value to their lot sizes but there is no need to
spend time calculating exactly what lot size you need just stick to the above.
Some examples
Example 1
TRADING ACCOUNT SIZE: $5000
2% RISK ON THE TRADE: $100
SL SIZE IS 50 PIPS SO VALUE PER PIP IS 100/50: $2
GENERAL LOT SIZE NEEDED: 0.20
Example 2
TRADING ACCOUNT SIZE: $3000
2% RISK ON THE TRADE: $60
SL SIZE IS 60 PIPS SO VALUE PER PIP IS 60/60: $1
GENERAL LOT SIZE NEEDED: 0.10
If you stick to this simple money management strategy then you will not risk too much
of your account in 1-2 trades. We have had clients who have joined us with
$1000 accounts and their floating loss would be $500 and only 3 trades open so they
were risking approx. $200 per trade which is 20% of their account. The
problem is that if they have 3-4 trades in big loss then they risk a margin call and will
lose all their account in 1 day.
I have seen it happen many times and in my early days prior to developing my strategies
and receiving training from some top traders, it happened to me. It is estimated 95-98%
of traders have had margin calls or lost all of their accounts at some stage of their
trading career due to poor money management and/or margin calls and in my experience
that is true. The bottom line is dont be reckless with your account, it is just not a
sustainable trading approach.
In summary, have patience, trade with calculated risk and employ correct money
management and dont be afraid to have a losing trade. Even the best traders in the
world have a success rate of only 70-80%. If you lose 2 or more trades in a row then do
not worry, just switch off your laptop or tablet, relax and start again tomorrow. Let the
set-ups come to you and dont chase trades or jump into
trades that you are unsure of. Trading is all about patience and if you have had some
losers then you may be angry, disappointed and want to try and get some
20

profit but that is the worst time to trade and you need to keep your emotions out of
it and wait for another day.

21

How to Use our Signals

We send about 3-5 signals a week and they can be market order or pending where
we give an exact entry point and wait for the entry to trigger.
We send regular updates on the open trades via Email/Twitter/SMS/SKYPE and will
update our clients when to move a SL or TP or close some the trade in profit.
A few things to remember when using our signals:
1. Use proper money management at all times.
2. Feel free to close the trades when you feel comfortable if you wish.
3. If a FOREX trade goes +25 to +30 Pips in profit then its a good time to
move the SL to entry so the trade is then safe.

Instruments we Trade
EUR/USD
EUR/GBP
AUD/JPY

GBP/USD
USD/JPY
AUD/CAD

AUD/USD
EUR/JPY
AUD/NZD

USD/CAD
GBP/JPY
EUR/CAD

NZD/U
SD
CAD/JP
Y
GBP/C
HF

The majority of our trades are based on EUR/USD, GBP/USD, AUD/USD,

USD/CAD, NZD/USD and USD/JPY.

22

A guide to trading Non Farm Payrolls (NFP)

What is NFP?
The Non Farm Payrolls (NFP) is one of the biggest if not the biggest Forex event of the
month. It is generally released on the 1st Friday of the month and markets can move
100s of pips in minutes. The problem is that it is risky and trading news like this,
although very profitable, can lead to losses to due to the wild swings.
So what is the best way to trade NFP?
There are a lot of things to consider when trading NFP. The number is released at
1.30 pm London Time and there is always an estimated number that can range from
anything from 50,000 to 250,000. This relates to the number of non farm jobs added
in the previous month, for example the estimate for start August
2012 was 90,000-100,000. If the number came out a lot lower (<50k) then this
would be seen as negative - bad for the economy in US and bad for the world economy.
Therefore this would lead to risk-off and indices such as DOW JONES, FTSE, DAX
would fall. Commodities such as OIL would fall and safe haven currencies such as JPY
will strengthen. If the number was >150k then it would lead to risk on and the impact
would be higher OIL prices, higher DOW JONES, DAX, FTSE and weaker JPY.
It is difficult to trade pairs such as EURUSD as a good strong NFP number is
positive for the economy and risk on and hence positive for EUR but it is also
positive for the USD as a strong US economy. Therefore in my opinion you are
better avoiding any pairs with USD, with the exception of USDJPY during the NFP.
The best pair in our opinion to trade is USDJPY with the potential to make 100s of
pips. If you join our signals or are already using our signals then every NFP day you
will get between 2 and 4 PENDING signals to trade with entry, stop loss and take
profit levels. On average over the past 24 NFP months we have made between +50 and
+150 pips profit. We have had 22 winning NFP months out of the last 24.
The key to trading NFP is to set PENDING ORDERS, but to set them far enough
away from the live price so if they trigger then they will continue in that
direction and give good profit. If you set them too close to the live price they may
trigger and reverse and therefore stop you out. Over the past years I have watched and
studied the movement during and after NFP numbers and have found the ideal levels to
set pending trades at.

23

Why 90% of All Traders Lose &

How To Be Part of the 10% That WIN!
Why do traders lose? The statistics show that 90% of all traders lose money. Its an
age old question and while there is no magic formula and no way that
anyone can guarantee that you wont lose money, there are 5 fundamental things that
you can do to become part of the 10% THAT ARE CONSISTENTLY PROFITABLE.
How do you do that?
1. Develop a clear and concise method.
First of all, if your goal is to become a consistently successful trader, you must have
a clear and concise method for trading.
In order to have that you must have a clear and precise way of looking at and
reading the markets. Guessing or going by gut instinct might work
occasionally, but if you dont have a specific method, then you dont have a way
to know what constitutes a buy or sell signal, and arent able to correctly identify the
trend.
The way to go about this is to write it down. You need to define in writing what your
analytical tools are and how to use them. It really doesnt matter what charts you use
as long you actually take the effort to define it.
In other words, for example:
?What constitutes a buy
?What constitutes a sell
?What constitutes a stop
?Instructions on exiting a position
?When to use limiting orders
Clearly define your methods and define it by writing it down, and keep it simple! Dont
make it too complicated if you cant write it on the back of your hand its probably
too complicated.
2. You must have the discipline to follow that method.
Once you have clearly and concisely defined your methodology, you absolutely must
have the discipline to follow through with that method.
If you view a price chart different than you did 2 months ago then you either
havent developed your method, or you lack the discipline to follow it.
The formula for success is to consistently follow and apply a proven method.
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3. Have realistic expectations

Dont be greedy!
Weve all seen the ads that may get our blood pumping with promises of becoming
wealthy overnight while we sleep , or investing a few bucks in stock and making a
million in a week, what usually sounds too good to be true usually is.
Now it is possible to experience above average returns on some trades, although it may
be difficult to do without above average risk.
The goal for every trader, especially in the first year is to not lose money! Any
percent return you see above that is icing on the cake.
In other words, dont allow yourself to get greedy! This is the downfall of many
traders. They start to feel overly confident and start taking higher risks and end up
losing mucho cash!
4. Be Patient
One of the reasons that most of us get into trading and the Forex market is because
its exciting. I mean lets face it, trading is a lot like gambling and any time money
is involved it tends to get our blood pumping.
As a result, you will get tempted to start taking shortcuts on your methods or youll
start making trades of lesser and lesser quality, seriously adding to your levels of risk
and inherently over trading!
I have found that by reminding myself that I have no reason to worry about missing
that next great opportunity, because there is another one right around the corner
guaranteed.
5. Manage Your Risk By Managing Your Money
I could seriously write a whole book on the importance of managing your money. There
are so many factors in managing your money such as risk/reward analysis, probability
of success and failure, and so much more.
With that in mind I am going to address the issue of money management with a focus
on risk on the entire portfolio size and not each individual transaction. Youll see what
I mean.
I believe that many traders tend to be over aggressive in their trades. A good rule of
thumb is to never risk any higher that 1-2% of your portfolio. If you have a small trading
account, then trade small.

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The bottom line to becoming a consistently successful trader is longevity! Keep your
risks small and youll be able to weather the rough spots. If your risking
25% of your portfolio on each trade, then it will only take 4 consecutive losses
for you to be completely out of business.
Remember the story of the tortoise and the hare slow and steady win the race!
Although it is my belief that making money in the foreign exchange market is easier
than any of the other trading markets, it isnt easily done without your eyes wide open.
I can guarantee if you practice the above 5 steps, you wont be caught in the 90%
of losing traders.

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A Brief Introduction to Binary Trading website

Binary options are predictions on how the market price of a certain stock, index, Forex
pairing, or commodity will perform over a specific amount of time. It can be simple,
quick, and profitable addition to your trading portfolio.
Binary options trading is a straightforward and lucrative way of investing in any market
of your choice, while not having to purchase assets or wait for your profits. Since binary
options are prognostications, there is no need to acquire the assets themselves.
How to make a Profit
Do you think the price of EUR/USD will go up in the next 15mintes or next hour? By
investing in your forecast, you can earn up to 89% of your investment in that time. The
risk and the reward are clearly stated before you invest so there are no surprises or fees.
If you predict at 8AM GMT that EUR/USD will be higher at
8.15AM then you can trade calling a BUY and if you are correct after the 15
minutes then you collect your profit.
Investment Period
Expiry times for Binary Options are much more immediate than other options.
Whereas traditional investors may expect dividends on a monthly or quarterly basis,
binary option traders receive their profits immediately after the expiry time, which
may be as short as one minute or as long as a few days. When you invest in your
option, the expiry time is clearly stated so you can manage your investment
efficiently.
What does the term Binary Option mean?
Binary options are named as such because they only have two possible outcomes:
either the forecast is correct or it is not. As a trader, you decide how much you want to
invest in the option as there is no fixed price for the option, just fixed return. Binary
options may also be known throughout the financial world as Fixed Return Options
(FRO) or Digital Options. This alternative titling of binary options points to the fixed
and online nature of binary options.
Example:
You choose to invest $100 in EURUSD and expect it to fall within the next hour. You
click SELL to say the price will fall. If you are correct and the price falls in
the fixed period of time you set the trade for, you will receive $190 and youve just
made $90 PROFIT! Trading binary options is that easy. You can trade in smaller
timeframes such as 5mins also.
All options offer a fixed return based on a percentage of the invested amount.

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Options expiring In the Money will typically offer a return of 70%-90% of the
investment e.g. on an investment of $200 the return will be $340-$370.
Options expiring Out of the Money will typically not offer a refund.
Options expiring At the Money will result in breaking even, thus full return of the
investment amount. So you can wait and have another trade with the same money
You can sign up for a free options trading broker account here and get started today
as they have fantastic educational material on their site.
In the future we plan to provide more information about binary trading in our
newsletters. If you require more information or training then please email us at
123freesignals@gmail.com and we can help get you set up in binary trading.

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Current offers
On our website www.123freesignals.com you can select any broker to deposit with
and get free LIFETIME signals.
If you have any questions then please email us at 123freesignals@gmail.com

We hope you have found this ebook helpful. If

you have any comments please email us

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