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 Intro
It’s commonly believed when looking at the forex markets that we’ll all get rich very easily. If that was
the case, 95% of people wouldn’t fail.

The problem is that everyone thinks they can beat the market, but the market is ruthless. The market
is not your friend. It’s a beast that you have to follow, not tame. Only by understanding it’s movements
can one first begin comprehending this, and by doing so, start the path to actually get profits.
It’s a very long road, but worth it in every way. People who understand that it’s all about the path, not the
finish line will certainly make much more than people who just dump money on real accounts or gurus
who promise riches with little to no effort.

Trading can, and will make you rich, but is necessary to take the commitment head on. You just need
to have the mentality of a student. The feeling of the first day school: The sensation of being scared,
excited & nervous all at the same time. But more importantly, the joy of starting something new, and
knowing that when you are finished with this, you will be a different person, someone who is much more
prepared than when you first walked in. Or like Master Iroh Once explained:

Today, I want you to make a promise to yourself. You will finish this course, because I know that you
know deep inside that if you finish it, you will be on your way to your first lambo.
 The Basics
Alright kids, I know your wallet is itching and your card is ready to be slapped on the table and be treat-
ed like the dirty plastic it is, but before you take all your life savings and put them in a single trade that
you’re of course going to win because you have it all figured out, let’s start with the basics and why it’s
important to know all this needless information:

The Pip
The very first thing we need to know is the pip, since this is how we make money.

The pip is the 4th decimal in every pair (we’ll see this in a second) and helps us see on a smaller scale
how much a currency grows or loses power. This is extremely important to a trader because it dictates
how much money you’re winning or losing in the market.

To get started, go to any website that shows you the pairs and write down for different pairs the 4th digit
(I recommend www.tradingview.com as here is where all my examples come from), this will help you
start identifying pips and their movement faster.

By Definition, the pip means PriceInterestPoint

.
►Write down your expected results before and after doing the exercise, and how it helped you change your
perspective.

Pairs
In its most simple meaning, a Pair is a quote based on two different currencies.

Considering the picture to the left as an example. This means that if you
sell 1 Euro you would receive 1.17 US Dollars. Everytime a currency
moves, this quotation changes and this is what gives us the opportunity
to gain money.

There are hundreds of pairs, but there are 7 Major. The main reason for
this being that the USD is the most traded currency in the world (YEAH,
‘MURICA). These pairs are: EURUSD, GBPUSD, USDCAD, USDJPY,
USDCHF, AUDUSD & NZDUSD.

Following up with this, according to Babypips.com the dollar roughly

compromises around 62% of the world’s official foreign exchange re-
serves.

To put it in different words, more than half of the world uses the dollar
for their reserves.
 Lots
According to Investopedia, a lot is the equiv-
alent of 100,000 units of the base currency
in a forex trade, similar to trade size. After
the creation of brokers and because of all
the competition surrounding the Forex mar-
ket, lower sizes were created, such as the
Mini lot, the microlot and the Nano lot.

For beginners, the best to use would be a

Micro or Nano lots. Taking a micro lot as an
example, if you were using the dollar as the
currency you are trading, then 1 pip would
be equal to 10 USD cents. If you’ve been
trading for a while and can already manage a few trades, It’d be good to try doing a mini lot, starting with
a 2000 dollar account where a pip is roughly equivalent to 1 dollar. This would give you great margin in
case the market moved against you (And believe me, it will).

► Go to
https://www.xm.com/forex-calculators/all-in-one#forex-calculator
And do at least 30 different examples with different pairs
so you can start getting your feet wet on how much you
can win and lose on average.
►Write down your expected results before and after doing the exercise, and how it helped you change your
perspective.

The exercise part in this specific key point is specially important, since this will give you an idea of the
potential risks and gains from the forex market.

The Spread
This is how the broker makes money even though they are “Free”. The spread is the fee built into the
trades that you take, basically it’s the extra price that it cost the broker to buy it and at how much they
“Sell” it to you.

This is why when we open up a trade, it always starts up as a negative number.

In human terms, this means taking your used clothes and selling them in a thrift shop

 The Market & Price Harmony
Alright, now you’ve read five whole pages and you know all those fancy terms to impress your friends
at parties (Not really, when I bring this up in public everyone looks at me like if there was something
wrong with my face) and know everything about pips, the market and you’re the most woke trader that
ever existed.
...Right?
...Guys?
...Anyone ??

Hold your horses right there, sweet Billy. Now we need to learn about the most magical thing that ever
existed and will help your dreams become reality (No, I’m serious) and it’s called The Market & Price
Harmony.

Even though when you look at a chart it looks like a whole mess, It always follows a certain pattern.

Looking pretty crazy, huh?

The Market

The first time you look at it, the market will look pretty haunting, and with good reason, since it’s the
result of hundreds of thousands of people betting at the same time whether the price will go up or
down. Think about it for a second, Imagine every single person that you ever met and then multiply that
a few times, then you’ll get closer to the point I’m trying to make here. For this reason it’s really hard
(near impossible) to manipulate the market. Say you won the lottery and decided to put it all in a single
trade, and set a Buy order for the Euro of a hundred thousand dollars, cracked a beer open and started
browsing which Tesla you’re going to buy. This would cause the market to move only for .0001, from
which the cool kids in the big banks will just take a look at you and laugh, before stomping your trade
and crushing your dreams.

Don’t take me wrong, It IS possible to gain a very good income from the markets, but the market is
ruthless, therefore you have to be Ruthless-er.
 Accurate representation of the market makers when you set up the “Winning trade of the Century”.

Price Harmony
Opposite to what one might think the first time they take a look at the Forex Market, it always follows
a certain pattern that is never (very rarely) broken. This means that if the market is going in a certain
direction (Up or down) we can say that it’s “Trending”, and it looks like this:

Not making sense yet? How ‘bout now, summer boy?

►For this exercise, take 3 different pairs and try drawing 5 trends as it
shows in the picture.
►Write down your expected results before and after doing the exercise, and how it helped you change your
perspective. Remember there is no wrong way to do it, we are just practicing.
 Bulls or Bears?
The eternal Battle: Bulls or Bears. The main reason we
call the market movements this way it’s because when
a Bear attacks with his paws, it does a downward mo-
tion. When a Bull attacks, does so in an Upward mo-
tion, with its horns.

In the Forex world, this simply means that a Bull move-

ment, known popularly as Bullish means that the inves-
tor believes will go up, and when the investor believes
it’ll go down, we call it a Bear or Bearish movement.
There is no need to choose a side, since we can al-
ways choose either side depending on the results of
our analysis.

Note: This is also traditionally called Long, for Upward Movements and Short for downward move-
ments.

►Similar to the previous exercise, take 3 different pairs and try drawing
5 trends as it shows in the picture, but this time have an arrow showing
whether the trend is bullish or bearish.
►Write down your expected results before and after doing the exercise, and how it helped you change your
perspective. Remember there is no wrong way to do it, we are just practicing.

Candles & Charts

Candles are the visual representation of the price as it’s cur-

rently seen by the market. (The Who?)

Allow me to demonstrate:There are three types of charts, Line

Chart, Bar Chart & Candlestick Chart. For its ease of visibility,
we’ll be using candle charts.

Candlestick Charts or “Candles” are called this way because

they resemble a candle (Duh).

Well, not like this one but you get the point.

Advantages:

● The patterns have cool names that sound like Anime Techniques (Come on, you know you like
that) such as Shark, Shooting Star & Three White Soldiers.
● Your eyes adapt almost immediately
● Information Comes Clearer, because after you learn the basics you can easily tell whether it’s
going down or up.
When you open a chart in any software, they will usually appear as Green and Red, but you can cus-
tomize to your own liking. Personally, I recommend leaving them as they are until you are more expe-
rienced to prevent confusion.

Candles are constituted by four important key points, abbreviated in OHLC (Open, High, Low, Close).
The main difference between a Bullish and a Bearish Candle is the Opening and Closing positions
(they are reversed).

Example of Bearish and Bullish Candles.

The News
News are specially important when trad-
ing, no matter what type of trader you
are. Market Makers use them, so why
shouldn’t we? Many people see them as
moments of extreme volatility and that
should not be traded, but the secret is that
Market Makers not only anticipate them,
but use them to either catapult their trades
or cut the trades for the average traders.
For this personally I like using https://www.
forexfactory.com/calendar and in filters I
remove all the gray and yellow news (as
they don’t have as much of an impact as
the red and orange ones).
 ►Visit forexfactory and compare with the market in trading view, to
see how much of an effect X new had on the pair you’re studying.
►Write down your expected results before and after doing the exercise, and how it helped you change
your perspective.

Timeframes
There’s many different timeframes to choose from. The longer the timeframe, the more accurate this’ll
be, since the price always moves in fractals. This means that like the ocean, the price will always go to
a high point and then return, like waves in the Sea. Cool, huh?

Though it’s possible to get great returns from lower timeframes (1 minute to 45), those are better left out to when we have
more experience (at least 4 to 5 years studying the markets), since they have very high instability, leading to much more lost
trades for newbies.

The shorter the time frame the more imprecise it’ll be, so in the trading system taught in this book, we
look at the 1 day candle first, and based on what direction it has, we move to the 1Hr timeframe and
there we take the profits. If we want to confirm the current movement and have just a little more visibility
we go to the 15 min timeframe, but only to confirm what we already know.
 ►Not much of an exercise, but play around with the timeframes so you can see how much
the movement changes when you change the time frame. You’ll see that the longer the time
frame, the more smooth the movement looks.

Timezones
There are many people making money at all times of the day at different timezones, but we are not most people.
Let me ask you this way: Do you want to take the scrapes or you want to go for the gold?

Exactly.

The timezone is just as important as the strategy and the StopLoss (More on why the bold text later) being used,
since the more volatile a market is, the higher the gains.

Source: https://forex.timezoneconverter.com/

For this step there isn’t an specific exercise, but I highly recommend you to go to go both to trad-
ingview.com and the website above and change the schedule to your correct timezone. You don’t
want to schedule a trade at X time only to notice that it was the wrong timezone all along!
 The Market Makers: AKA “The Bad Guys”
Think of that evil guy sitting in a chair stroking his cat, then add a wicked smile. Yeah, like that. That’s
what market makers look like. No, seriously.

Just kidding, I really respect this guy (Please don’t sue me Mr. Varchev, I really respect your work, and , I don’t think i can afford to
be sued anyway).

Market makers have control over the market in ways that we can only dream, and are funded in forms
that the richest kid you know could only dream. Remember the joke about the hundred thousand dol-
lars? We can more easily see the touch of market makers when the market seemingly is going to take
a turn, go into a certain direction and then…

POW!!
For a second the market went the other way and you just lost all the
money you invested. Ever happened to you? Good, you’re not alone.
Personally, I believe that every trader needs to blow up their account
at least once to know. It’s a rite of passage, if you may. Many Master
Traders that I met say that the only way to “Graduate” from trading is
by blowing up your first account and losing everything. Personally I
have blown two accounts (and to the pro traders opinion I’m still short
at least other two to three blow ups, basically a newbie!), and even
though it of course hurt, the insight you gain from it helps you to be-
come a much better trader than you were before. It’s very easy to spot their influence
since it always comes as a spike in
the opposite direction that the trend
So do we roll and cry? Get a Market Maker to be our Sugar daddy? was going, effectively (and on pur-
What can we do, you might be asking? Glad you did! pose) blowing all the stop losses set
by regular traders.
We become remoras.

Instead of going against the trend, It’s our job to anticipate and start thinking like a market maker.
Only by doing so we can become profitable in the long run. Many “Gurus” will throw shade at me for
this comment, because of course they have the ultimate Money Generator Tenkaichi Budokai Gener-
ator 3000 that also summons a supermodel everytime you set a trade, but for us lowly humans who
want to make a living without scamming people, reality needs to be faced. And everytime the Market
Makers have the Will that the market will go down, believe me; It WILL go down.
Don’t worry, when you’re done with this book you’ll be able to think like a market maker, and start
making consistent profits. And if you go wrong, always remember that we have a Stop Loss for a
reason. Now that I said that...
Go to any Pair and look for these little spikes in the price,
as shown in the last picture. The more you do it the easier the’ll
be to identify. Do at least 20. ❕Write down your expected results before and after doing the
exercise, and how it helped you change your perspective.

First of all, we need to know when we will actually enter the market, so here is the list of triggers that I personally use
when entering a trade (taught to me by Juan Luis from CienFx).

Triggers
Pinbar/Hammer
They have a long wick and perfectly touch the flip. They can go a bit through, but has to be just slightly.
Cover Candle
The flip exists and next to it an opposite color candle appears and the size is the same or higher. Only
here do wicks matter, in every other Trigger we ignore them (This is the most common trigger you’ll
find).

Internal Trigger
Generally the flip is touched and next to it, an internal candle of 1/3rd of the size (or less) is formed.
Three Candle Flip.
The most basic requirement (As in the rest), the flip exists. It’s made by one candle and then covered
by other two that go in the opposite direction, giving us where to go with the trade. This is why we call
it a three candle, since the two in the opposite direction form one big candle.

Go to Tradingview and go at the very least 20 different ex-

amples per trigger. This is a very important step in your career,
since it’ll help your eyes adapt and identify the triggers without
thinking.
❕Write down your expected results before and after doing the exercise, and how it helped you change your per-
spective.
 Stop Loss/Take Profit
Stop Loss
We’re here, kids. We’ve finally arrived at the jewels of the crown. Here is where we start the actual
path to make us some dough. That being said...

No trade can be taken without a Stop Loss.

Let me say that again in Bolder letters.
No trade can be taken without a stop loss.
Read it again, record it. Print this in a huge ass sheet of paper and put it on the ceiling so it’s the first
thing you see when you wake up. Heck, get a tattoo if you must.
This is what differentiates a rookie from a good trader. Many times, I will check the stop loss before I
even start fantasizing about a Take Profit

If you know me in real life you know I’m a slut for Fantasy Isekai Anime. Source: The
Rising of the Shield Hero

The Stop Loss is the single most important thing that you will have in every single trade that you take. If you don’t set up a
stop loss next time you take a trade after reading my words, I will personally hunt you down and smack you with a copy of
this book. Well, maybe not. But are you willing to take the risk?

Stop Loss is how we limit our losses when a trade goes awry. And believe me, it will happen. Remember what we talked
about market makers? The market manipulation, although not extremely common, and not possible in the long term, will
still happen. And the only way to protect us from that is by setting up a limit on how much you’re willing to lose before
closing the trade or losing your account. This removes the most important factor: Human error. We could talk hours and
hours and even write a whole book on trading psychology alone, to the point that personally the psychological aspect of
trading took me almost a year to master. This can be due to anxiety or nervousness or maybe Billy’s friend told you he just
watched Magic Guru’s stream where he said that the market would do a backward flip and opposite to your own analysis
instead of selling you should buy.
By setting up a stop loss you will be able to finally stop grinding your teeth every time you set a trade and just let the
market do its thing, and believe me. You will feel much calmer and relaxed, because now it’s not your fault, it’s part of a
system. And because you know it’s part of a system, and not a gamble, you can move on with your life and let your strate-
gy do its thing.

Wow, if it’s so life changing then it must be really hard to set up, right?!
Not really, personally I set mine just over the 20 pip mark, or set up a level and just go a little lower. Very rarely will I set
up a 30 pip stop loss, and I only do it if I believe that the market will do a full reversal, where I’d be risking 30 and winning
over 100 pips.

I can tell you confidently that no matter how experienced the trader, or how cool the trade set up looks, if a stop loss is
not set, the possibility of an account getting blown multiplies tenfold.

Stop losses are love, stop losses are life.

Set a Stop Loss.

Practice practice practice. Now go to any chart you like and give
me at least 50 Stop Losses, I don’t care about your take profit.
❕ You Guessed right, now I want you to write down your expected results before and after doing the exercise, and how it
helped you change your perspective.

Take Profit
Now that i’ve continuously drilled into your head the importance of Stop Losses (And If i haven’t go back to the previous
page and keep reading it until it does), we’re going to learn when we take the greens, the mollah, the dough, the money.
The strategy that I use is simple price action, and when done correctly, it’ll grow your account no matter what. This will be
divided in four simple steps.

● Step 1:
In tradingview, set up the Daily Chart and identify what type of trend we have. In this case we have a Bullish move, but the
Bearish candle indicates a possible flip, so we put an horizontal line to confirm that a flip will take place.
It’s also important to highlight the market’s points of interest, this means points in the past or present where the market

seems to touch a lot and has a high chance to touch in the future:
We’ll call the one in the top “Support” and the one in the Bottom “Resistance”.
There’s whole books dedicated to this only, so for illustration purposes, we’ll skip that explanation for now. If you are inter-
ested in finding more how to draw these, please let me know so I can get writing.

● Step 2:
Now go into the lower timeframe (1hr) and wait for a trigger. If it’s in a good schedule (New York or London timezone), set
up the Stop loss as we discussed over the trigger
Your take profit will be either the point where you marked your support or a very close point to it, that’s been touched at
least three times by the price.

We want our trades to be at least two times higher in the Take Profit compared to the stop loss, since we want to always
risk less compared to what we win (Duh). If when creating the setup I don’t see the possibility of at least gaining twice
what I invested, I simply don’t take the trade. Remember that every day there are thousands of trade opportunities and if
you miss one you can always catch 10.

● Step 3: ????

● Step 4: Take Profits by closing your trade and buy me a beer.

With this method your account will get at least a 43% increase. Don’t believe me? Do the exercises. All you need to do
now is practice a lot, until you’re comfortable enough in demo then start with real money.
I’d recommend doing at least a hundred trades before even consider using your hard earned greens.
 EXTRAS

Market Validation Examples

Every now and then, the market will create a certain pattern that tends to repeat itself. The ones used
in this book are what I call a “Validation Scheme”, well maybe I just created that term but you don’t
really care about that, do you?
And if you have, where’s your book about it? Huh? Huh?!
That’s what I thought.
Chart Patterns in general can take very different shapes and appear in different timeframes, they are
extremely helpful when trying to look for an entry point to the market. We can write books and books
around them but for the sake of keeping this book simple we’ll talk only about Climax, Trap & Fail-
ure.There are many and they have really crazy names, if you want to read more on them I recom-
mend you Encyclopedia of Chart Patterns by Thomas Bulkowski.

Climax:
In this movement, we can see that the trend follows as normally, and then it does an upward move-
ment that is bigger than any of the ones before.
Trap
In this one, the movement also follows the trend, but then fails to continue moving to it’s intended
direction. We can recognize it because it breaks the closest valid Lower Low or Higher Low.

Admiral Ackbar Says: If you’re confused whether to call it trap or Climax, remember a trap it’s just a
failure to continue the movement. It does not necessarily need to be an aggressive movement.

Source: Wookiepedia

Failure
When the trend tries to continue moving forward but instead fails and ends up breaking the Higher
Lows that were set before.
 THANK YOU
If you’ve made it this far, Thank you. I hope that this book was fun reading as much as it was writing
it. Here I dump years of crunching down numbers, watching youtube videos and staring at graphs
for hours, studying the markets and is a means for me to give a little back to all the people that if it
weren’t for them, this book would not exist. By now I hope that I helped you change your perspec-
tive a bit, and that you gained the ability to see the market as an harmonic experience, instead of the
mess that many of us see the first time. Remember that the special ingredients for a successful trader
are tenacity and control over one’s psychology. After doing all the exercises you should be able to
remove the emotional part from the trade, and if you haven’t, then practice some more. Only then, will
you be on your way to get your first lambo.

Cheers,
- Carlos
Liked what you read? Buy me a coffee! (Or a Beer)

Link to my Buy Me a Coffee Page

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