Introdution to Forex

You’re about to partake on a journey like nothing you have ever experienced. By the time you’ve reached the half-way point of this book you’re going to say something like, “Maybe it really is possible to earn $500 Dollars a day!”

Let me introduce myself. I’m G.C. Smith. Perhaps you know me from my previous eBook, “$$500 Dollars per Trade.”

Maybe I’ve met you at seminars we’ve attended. Or maybe we’ve exchanged e-mails in the past.

Whatever the case, you’re going to enjoy the trip I’m going to take you on as we learn all about how to trade the Foreign Exchange Markets – Forex for short. It’s now 5:30 PM, Pacific Daylight Time on Sunday, November 9th 2008. I’m getting ready to watch 60 minutes on TV.

But first, I just happened to see an easy trade shaping up on my PC. I see so many of them it sometimes makes me frustrated. It’s like the patrolman watching speeders go by:“I can’t catch ‘em all!”

But tonight I bought a $10 dollar pizza from Papa Murphy’s. If I can trade the Eurodollar against the US Dollar from 1.3355 to 1.3350 I’ll make ten bucks.

Using the tactics you’re going to learn in this report I did just that. It took nine minutes. And this isn’t even my normal trading day – Monday through Friday.

Okay, maybe I’m showing off. But, now that I’ve got your attention, let’s look at my trade a little closer. Because this trade represents what could be your goal to make $500 Dollars a day – or one million Dollars by next year.

There’s no reason you can’t, as long as you follow the rules I’m going to outline and maintain the discipline it’s going to require.

Let’s take a look at the chart of the trade. Each bar is equal to five minutes. We’ll explain more about all this later. Note how prices are swinging back and forth? We want that. If they remained flat, no one would make (or lose) anything.

And, they were trending down! We sold 20,000 units (equal to $2 Dollars) using about $500 trading dollars. We entered the trade at 1.3355 and closed it at 1.3350. That’s equal to five, so-called, “Pips.” Five pips times $2 is ten Dollars.

Again, don’t worry right now about all the fancy words. I don’t know an awful lot more than you about what all this means – and I could really care less.

But I do know how to trade. And that’s what I’m going to teach you.

So, hold on to your hat, and bear with me as I try to describe what could be a turning point in your life.

Let’s start by crunching some numbers. How long do you think it would take to double our money if we made five percent a day? That’s right. Five percent a day!

Before I answer that let’s go back to my pizza trade. I made $10 using about $500 Dollars. If we were to make five percent on $500 Dollars it would be $25 Dollars (500 times .05). With just one trade we’re almost half-way there!

If we earn five percent a day it will take fifteen trading days to double our money. Hard to believe, but true.

Take a look at this table.

DAY START 5% END TOTAL
1 500 25 525 25
2 525 26 551 51
3 551 27 578 78
4 578 28 606 106
5 606 30 636 136
6 636 31 667 167
7 667 33 700 200
8 700 35 735 235
9 735 36 771 271
10 771 38 809 309
11 809 40 849 349
12 849 42 891 391
13 891 44 935 435
14 935 46 981 481
15 981 49 1030 530

Pretty impressive wouldn’t you say? If we could just double our money every fifteen days, the sky’s the limit!

In fact, let’s see what it would look like.

1st fifteen days: $500 goes to $1,000
2nd fifteen days: $1,000 goes to $2,000
3rd fifteen days: $2,000 goes to $4,000
4th fifteen days: $4,000 goes to $8,000
5th fifteen days: $8,000 goes to $16,000

In just a little less than three months we could be earning five percent on $10,000 Dollars – $500 per day!

Want to carry this a little farther? $16,000 goes to $32,000. $32,000 goes to $64,000. $64,000 goes to $128,000. $128,00 goes to $256,000. $256,000 goes to $512,000. And $512,000 goes to One Million, Twenty-four Thousand Dollars.

Is this really possible? Yes! Is it realistic? Maybe! But, not without a great deal of training and discipline.

For example. Right now, would you take $10,000 Dollars and try to double it? I doubt it. It’s too scary.

How about $500 Dollars? “Yeah, I could probably afford to risk that much,” you might say. Whatever amount you start with, that’s when your training begins. And, as you became more and more experienced, you can begin to trade larger amounts with more confidence.

That’s the concept I’m going to teach you.

How to handle ten thousand dollars as if it’s $500.