FOREX-for-Beginners.pdf

FOREX for Beginners
https://www.facebook.com/groups/468564163238943/ Page 2
................................................................................................................................................................................................4
First thing first, What are you?...........................................................................................................................................................5
Investment Psychology......................................................................................................................................................................6
Deriving Crowd Psychology from Bars.................................................................................................................................................8
Trend Is Your Friend .......................................................................................................................................................................10
................................................................................................................................................14
The Last 'M' (or) Trade Management................................................................................................................................................17
STOP!.............................................................................................................................................................................................18
Candlesticks - Part I ........................................................................................................................................................................20
Candlesticks - Part II .......................................................................................................................................................................26
Two is better than One....................................................................................................................................................................29
How to Stop....................................................................................................................................................................................32
..........................................................................................................................................................................34
Moving Average ..............................................................................................................................................................................37

FOREX for Beginners
MACD / Mac D ................................................................................................................................................................................40
Triangle Breakout............................................................................................................................................................................44
Combining Crowd Thinking with Crowd Commitment.........................................................................................................................45
(၁) ...........................................................................................................................................................................48
(၂) ...........................................................................................................................................................................50
..........................................................................................................................................................................52
Psychology of Losing .......................................................................................................................................................................55
Short with me .................................................................................................................................................................................57
How to Trade Like a Professional .....................................................................................................................................................57

FOREX for Beginners
႔ Trader ႔ Methods, Mindset ႔ ႔
Trading Methods (Technical Analysis) ႔
႔ ႔ Trading ႔ ႔ ႔ ႔ ႔ Methods
႔ ႔ ႔ ႕ Trading History ႔ ႔ Winning Trade Losing Trade
Methods ႔ Technical Analysis ႔ Fundamental Analysis ႔
႔ ႕
႕ ႔ Trading 95% of traders lose money ႔ ႔ Mindset
႔ Trade Management ႔ ႔
႔ Mindset ႔ Trade Management ႔ ႔ ႕ Mindset ႔
႔ ႔ Trading ႔ ႔ ႕ Mindset
႔ Trade Management
႔ ႔ Ko Aung Myo Htet (aungs.investment@gmail.com) ႕ www.aunginvestment.blogspot.com
Trading ႔ ႕ ႕ ႔ ႔ Trader ႔ Ko
Aung Myo Htet
Naing Aung Soe
https://www.facebook.com/groups/468564163238943/

FOREX for Beginners
First thing first, What are you?
Investment ႕ Investment Objective
႔
Spender
Investment Credit Card
Saver
Risk free Interest rate ႔ Saver ဝ ႔ Inflation
) ႔ Tax( ) ႔
Part-time/Passive Investor
Stock Market Real Estate ႔ Gold ႔ Foreign Currency
Investor Part-time Buy-and-Hold ႔ Investor Short-
term/Temporary ႔ Return on Investment (ROI) ႔
Part-time Investor Day Job ႔ Finance Newsletter Subscribe
Full-time/Active Investor/Trader
Day Job ႔ ROI ႔ - Short-term ႔
႔ Price Fluctuation Advantage ROI ႔ Liquidate
Economic Data Investment Stragegy Risk Manage
Financial Freedom Retirement
႔ Spender ႔ Saver ႔ Investing/Trading ဝ Investment
Objective Define ဝ Risk Investing ႔ ဝ ဝ

FOREX for Beginners
Investment Psychology
Investment Seriously 3M 3M Mindset, Methods ႔ Management Investor 3M
Topic Mindset ဝ ႔
Investing Get Rich Quick Scheme ႔ You got to be really a financial genius.
Realistic ႔ ႔ Investing ႔
/ ႕ ႔ ႕
႔ Apply ႔
Self-Confidence
Reason ႔
႔
Sacrifice Education Lifestyle
႔ ႔ ႔ TV Facebook Club ႔
႔ Spending ႔ Saving
႔ ဝ Western Economy ႔ ႔
႔ Personal Debt ႔ Investment Debt Personal
Investment Debt ႔ Credit Card
Investment

FOREX for Beginners
Isn't Investing same as Gambling
3M M ၁ % Every Investment Risk Risk Analyse ႔
Manage ႔ 3M Investment Risk Risk
It takes a Genius to become rich
Absolutely Rubbish Average IQ ႔ Investor Reasonable Objective ႔
႔ Financially Common Sense Self-
discipline Genius Brave ႔
Plain ႔ ႔ ႔ Spouse/Partner
Educate ႔ ႔ ႔ Single
Invest ႔ ဝ ႔ ဝ
Reason ႔ Investing Concept
Mindset
႔ Mindset Robert Kiyosaki ႔ Dr. Alexander Elder ႔ Material ႕
Reference

FOREX for Beginners
Deriving Crowd Psychology from Bars
Topic 3M Method Method ႕ Income, Expenses, Debt, Tax,
Dividend, Shareholder Equity, Net Tangible Assets Analysis Fundamental Analysis(FA) ႔ FA ႕
Data Earning Expense Affect Significant
FA Active Investor
Trader ဝ FA ဝ Technical Analysis(TA)
TA Stock ႕ Price ႔ Volume Analysis
Two types of Crowd
Price Two types of Crowd (Bulls ႕ ဝ ဝ(Bears Bulls
Bears Investing Bear
for now, let's stick to Bulls. Professionals Stock Bullish
Bearish ႔ Market Bull Market ႔
Bear Market ႔
TA Price ႔ Volume Chart ႔ Represent ႔ CNBC ႔ Media Line Chart Line Chart
Generally close price Close Price ႔ ႔ Period
Open, High, Low, Close ႔ OHLC ႔ Open ႔ Close ႔
High ႔ Low Period ႔ OHLC Bar Chart
Type OHLC Represent

FOREX for Beginners
"Period " ႔ ႕ Period ႔ ႔ 5min,
15min, 1hr, 1day, 1week, 1month ႔ ႔ Period ႔ OHLC Bar Open
Close Bar Point
TA FA Translate ႔ Interpretation Trader ႔
Generally Open Amateur Professional Normally ႔
႕ High Bulls ႔ ဝ ဝ ႔
Low Bears ႔ ႔ ႔ Low Close
Professional Institutions Define ႔ ႔
ဝ Pro Institutions

FOREX for Beginners
႔ Volume Volume Volume Period Units
Very Bullish Day Volume Average ဝ ႔
႔ OHLC TA ႕ Holy Grail OHLC Topic Serious
Investor Analyse Bar ႔ Market Crowd Psychology Guess
႔
Trend Is Your Friend
OHLC Bar Trend Line Trend Price ႕ Direction ႔
Trend Line Price Trend within normal range
Confirmation ႔ Trend Line ႔ Price Trend ႔

FOREX for Beginners
Technical Analysis Indicators Confirm Trend Line Generally Priority ႔ Trend Line

FOREX for Beginners
Trend obviously Bull/Up Trend ႔ Up Trend Professional
Up Trend Analyse Period Lowest Low Low before the most recent Highest Low
႔
Up Trend Low Down Trend High Down Trend Rule Period Highest High High
before the most recent Lowest High downward slope line ႔ Apply
႔ Up Trend rule ဝ Up Trend ႔ Down Trend
Up Trend Reverse ႕
Down Trend ( Up Trend Apply ) Highest High Bar
High Reliable
႔ ႔ Price Trend Slope ႔
Generalise ႔ ႔
႔ Translate Trend ႔ ႔ Baseline ႔ Up Trend
ဝ
၁ ႔ Close Trend Line Close
Confirm
Confirm
၂) Trend Hold ႔ ႔ Price ႔ Near Future
၃) Lowest Low Horizontal Angle Angle Momentum Angle

FOREX for Beginners
Rule Down Trend Rule
၁ ႕ Close Close Trend Line
Generally Confirm Technical Indicator
Confirm Confirm ဝ

FOREX for Beginners
၂) Trend Hold ႔ Future Date ႔ Price ႔ Near Future
၃) Highest High Horizontal Angle Angle Momentum Angle
Correction
Technical Analyst Topic Stock Price limit ( ႔)
႕ Technical Support and Resistance ႔ Support ႔ Resistance
႔ Support Break Resistance ႔
Support ႔ Resistance Horizontal Line ၉၉%
Support ႔ Resistance Detail Typical Stock Price Price
Straight
Price - - - - Pattern ႔
Price Support ႔ Resistance
႔

FOREX for Beginners
Support ႔ Resistance Crow Psychology Bulls ဝ
ဝ Bulls ႔ဝ ဝ Herd Mentality ႕
ဝ ႔ Resistance Bulls ႕ Realise ႕
Resistance Stock ႔ ဝ
ဝ ႔ ႔ ႔
႕ ႕ ႔ ႕ Support
ဝ Bull ဝ ႕ Cycle
႕ Resistance ႔ ႔
႔ ႕ Bearish Cycle Support ႔ Resistance
Drive Crowd Psychology

FOREX for Beginners
Support ႔ Resistance Resistance High/Close ႔
Period Reliable Support Low/Close Stock Significant Support &
Resistance Event Support & Resistance Breakout
Investor ႔ ႔ Annoucement Resistance Break ႔
Data Annoucement
Potential ဝ ဝ Support Floor
Buy-and-pray ႔
Major Support ႔ Resistance Support ႔ Resistance ႔ Breakout ႔
Support Resistance Resistance

FOREX for Beginners
The Last 'M' (or) Trade Management
3M Method ႔ ႔ Another M M
Mindset Method Basic ႕ 3M ႔
Management
Management ႔ ႔ Trader/Investor ႔ Management
၁) Trade Management
၂) Portfolio Management
၃) Tax Management
၄) Wealth Management ႔ Trade Management ႔
Trade Management Trade Management ႔ ႔ ဝ
ဝ ဝ ဝ ဝ
Trading Plan
Trading Plan Main Field
၁) Entry Price - ႔ ဝ
၂) Profit-taking price -
၃) Stop-loss price -
၄) If Entry price is not achievable with initial bids, how far you would go chasing it? - Entry Price ဝ
၅) ( ႔) Stock Quote ႔ Record ႔
Trading Plan Follow ႔ Self-discipline Trader

FOREX for Beginners
3M – Management Introduction
Preparation ဝ ႕
Plannig Investor Stock ဝ Trading Plan ႔
STOP!
Topic ႔
- - - ႔ -
- - Finance Section Recommend
ဝ ဝ Buy-and-pray Model ႔ ႕
Stop-loss target Market
႔ ႔ - - -
Plan B
ဝ ႔ - - - ဝ ဝ
- - -
% ဝ ၅% ၁ % ( ႔) ၁၅%
႔ Investment/Trading capital Stock trading
Concept Total Capital 2% 3% Trade

FOREX for Beginners
Risk ႔ Trader $100,000 capital ႔ ၂ ၃ ႔
Risk ႔ ဝ Plan
Main Idea behind this concept Trader ႔ Rule No.1 Profit ႔ Capital Preservation
၂% Risk ႔ ၄၉ Trade (၂% x ၅ = ၁ %) ၃% ၃၂ St
% Amount Survival ႔ Market Loser
႔ Stock Price Risk
ဝ Capital ၁ ႔ Assume
Stock Price $ 30 30 30 30 30
Acceptable loss as % of price 5% 10% 15% 20% 25%
Acceptable $ loss over price 1.5 3 4.5 6 7.5
Capital $ 10000 10000 10000 10000 10000
Acceptable loss as % of capital 3% 3% 3% 3% 3%
Acceptable $ loss over capital 300 300 300 300 300
Position Size / Units / Volume 200.00 100.00 66.67 50.00 40.00
Position $ 6000 3000 2000 1500 1200

FOREX for Beginners
Conclusion ႔ Risk Amount Fixed ႔ ႔ Risk ဝ
႕ Stop-loss ဝ ႕
Stop-loss Professional ႔ - - - Stop-loss
Stock price ႔ Risk Position size Stop-loss Helmet
႔ Trading Stop-loss ႔ Position size Define ႔ ႔
Candlesticks - Part I
ဝ Stock Trading ဝ Candlesticks OHLC Bar ႔
Trading signal Trader ႔ Entry ႔ Exit Timing Bar
Candlestick Confirmation
Candlestick ႔ ႕ Candlestick
၁ ၅ Munehisa Homma ႔ Homma ႔ ႕
Financial ႔ ႔ Financial Consultant ႔ ဝ Samurai ႕
Candlestick Technique ႕ ၂ Steve Nison ဝ
႔ ႔ Homma
Refine Technical Analysis Wal-mart Store(WMT) Bar ႔

FOREX for Beginners

FOREX for Beginners
Candlestick ႔ OHLC data Candlestick Open ႔ Close Open ႕ Close
Open Close ႔ Close
Body Real Body ႔ High ႔ Low Upper Shadow ႔ Lower
Shadow ႔ Candlestick ဝ ႕

FOREX for Beginners
Candlestick ဝ Trend Reversal Confirm Intro ႔ Trend
Reversal Signal Candlestick type ႔ Hammer ႔ Hanging Man ႔
Trend ဝ Candle Hammer ႔ Trend Down Trend
Down Trend Candle Lower Shadow Real Body Height Upper Shadow ( ႔)
Hanging Man Up trend Real Body ႔ Lower Shadow Length Ratio Hammer ၁ ၂
Hammer ႔ Hanging Man Circle

FOREX for Beginners
Hammers in AMD chart

FOREX for Beginners
Hanging Men in Black & Decker Chart
Crowd Psychology Hammer ႔ Bear ႔
Close Low ႔ ဝ ဝ Bull ႔
Idea ႔ Down Trend Line Breakout Signal ႔ Confirm Trade ဝ ႔ Hammer Bears ႔
႔

FOREX for Beginners
Hanging Man Psychology Up Trend ႔ Hanging Man
Formation Bears Attack ႔ ႔ Hanging Man Bull
႔ Hanging Man Following Day
Candle Confirm Hanging Man Following Candle Black real body Hammer White real
body
Hanging Man ႔ Hammer White Hammer ႔ Black Hanging Man
Potent ႔ Hanging Man ႔ Hammer Candle Formation ႔ ႔ Candle
Formation Candlesticks Technique Part II single-candle formation
Candlesticks - Part II
Part I Single-candle Formation Formation
Shooting Star
Shooting Star formation
႔ Bearish reversal signal Shooting Star Hanging Man
Up Trend Upper Shadow Length Real body Real body Low Crowd
Psychology Example Psychology

FOREX for Beginners
Shooting Star formation ႕ ႔ Up trend reverse ႔ Long Upper Shadow Bull
Attempt Bear Close High ႔ Low ႔
႕ Upper Shadow Bull Bull ႔ Bear Bull
Trend Reversal Shooting Star Real body
Belt-hold lines
Belt-hold Sumo Wrestling term "Yorikiri" ႔ Opponent ႔
ဝ ႕ ႔ Trading context Bull ႔ Bear ႔

FOREX for Beginners
Down Trend ႔ Up Trend Belt-hold candle Bullish Belt-hold ႔ Bearish Belt-hold ႔
Belt-hold candle major characteristic
Bullish Belt-hold candle down trend Open Low ႔ Close High Bearish
Belt-hold candle up trend ႔ Open High ႔ Close Low ႔
Bullish Belt-hold White Opening Shaven Bottom ႔ Bearish Belt-hold Black Opening
Shaven Head ႔ Belt-hold candle Real body More reliable Up Trend/Down Trend
Same color, long real body candle Reliable Belt-hold candle ႔ Crowd Psychology
႔ Risk Trader Reversal Sign ႕ ႔ Action
Conservative Investor ႔ next day candle Signal
Candlestick Power ႔ Candlestick chart Bar chart ႔
Steve Nison Candlestick Techniques Reference Refer

FOREX for Beginners
Two is better than One
Powerful Candlestick - ႔
Candle Formation Candle -
႔ Trend Reversal
Confirm ႔ ဝ
Bullish / Bearish Counterattack Pattern - Weak reversal signal
Bullish Counterattack Downtrend Bearish Counterattack Uptrend
႔ Bullish ႔ Bear Downtrend
Downtrend Duration ၄-၅ ႔ Close Open White
Candle Close White Candle Open ႔
Crowd Psychology
Close ႔ Close ႔ ႔ Formation Weak Signal ႔

FOREX for Beginners
Piercing Pattern and Dark Cloud Cover Pattern - Good Reversal Signal
Counterattack ႔ White Candle Close ႔ Black Candle Close
Black Candle Real Body Black Candle Open
Piercing Pierce ႔ Dark
Cloud Cover Up Trend Sunny ႔

FOREX for Beginners
Bullish / Bearish Engulfing Pattern - Strong Reversal Signal
White Candle Open ႔ Black Candle Close White Candle Close Black Candle Open
Strongest Reversal Signal Engulfing /ဝ Technical Analysis Outside Day ႔
႕ Volume ႔
Second Candle Volume ႔ Trading Signal Trend Line Support ႔ Resistance

FOREX for Beginners
How to Stop
႔ ဝ Base ၅ ၁
Trend Line ႔ Support ႔ Resistance Professional Stop Loss
Technical Analysis(TA) Stop order
Broker Broker Stop order ႔ Internet Broker Broker
Website Usability Generally Define
၁) Stop price - Sell order Market ႔
၂) Limit price – Market Sell Price ႔ ႔ Generally, it should be less than or equal to the Stop price. Market ႔ ႔
႔ ႔ ႔
၃) Position Liquidate ဝ Number of Units to sell
၄) Order expiration – Trigger ႔ Market Order ? Generally, Day order or GTC (Good Till Cancel)
Day order ႔ Purge GTC Cancel (
normally )
TA Ford (F) Chart Stop Define ႔ Trend Long term trend
Close Major Trend ႔
Ford Primary Trend 16/9/2009 ႕ (Primary Trend )
Long term Horizontal Support line 6.75 Side-way ႕ ) Bull ႕ Bear ႔
9/11/2009 ( ) Minor Up Trend 25/11/2009 Close
Just above Minor Up Trend ႕

FOREX for Beginners
Volume Minor Up Trend Declining Volume ႔ ႕ Bull Commitment Bull
ဝ ဝ ႕
Horizontal Blue line at 8.95 Major Resistance Close Major Resistance ႕ 3/8/2009
Pull back ႕ Ford ႔

FOREX for Beginners
႔ 8.95 Resistance Preferably, Close Original Primary Trend
Primary Trend Break out ႔ ႔ Minor Up Trend
Resistance ႔ ႔ Volume Improvement
Data Ford 8.95 Resistance ႔ Trader 8.95 ဝ Profit
Medium Term Investor 6.75 1 or 2 ticks Stop Order Tick Y-Axis
Tick ႔ Long Term Investor 5.00 ( ဝ 1 or 2 ticks ႔ 1 or 2 ticks
Professional Major Support ႔ Resistan ႔ Point Stop order
Setup Stop Trigger
Trend ႔ Support ႔ Resistance Investor
Stock Current Momentum TA Stop Order
Technical Analysis(TA) ႔ Trader Setting Line/Bar Chart
Scale
႕ Line/Bar Chart Scale Linear Scale ႔ Linear Stock Price Plot
၅ ၁ ၅ ( ႔) ၅ ႔ ၅ ၅၅ ၅ ( ႔) ၅
ticks ၅ ၁ Gap ႔ ၅ ၅၅ Gap Distance Exactly the same
Scale Linear Scale ႔
Scale Semi-Log scale ႔ ႕ Logarithmic ႔ Charting
Percentage Bar/Candle Height ၅
၁ ၁ % ႔ ၅ ၅၅ ၁ % ႔ Australia
Commonwealth Bank (CBA) Bar Chart Scale

FOREX for Beginners
Linear Scale

FOREX for Beginners
Semi-Log Scale
Trend Line Date Linear Scale ႔ Trend
Price Trend Ok ႕ Semi-Log Scale Trend Sideways ႕ Question
/ Scale Semi-Log ႔ Linear Outcome Semi-log
Long Term Trend

FOREX for Beginners
Long Term Trend Semi-log ႔ ၅
Price Amount Gap ႕
႔ Semi-log Long Term Trend ဝ ႔
Charting Software Y-axis Scale Feature Yahoo website Chart Settings Scale
Link Chart Scale TA ႔
Moving Average
Technical Analysis ႔ one of the most effective methods Moving
Average (MA) ႔ MA Subcategory Simple MA ႔ Exponential MA ႔ MA ဝ Trend
average price ဝ MA
MA Formula Sum of
Prices / No. of Days
Simple MA (SMA) Formula ႔ ႔ Simple ႔ Price ႔ Price
High, Low, Close Open ၉၉% Close
SMA10 ႔ ၁ Close ၁ ႔ ႔
Exponential MA(EMA) google ႔ EMA
Most Recent Price Weight ႔ Price ႔
႔ Depend Pro EMA EMA
Dow Jones Industrial (DJI) index EMA10 ႔ EMA10 Bar Close
EMA10 Close EMA10 Short-term uptrend ႔

FOREX for Beginners
Technical Indicator Bearish Signal ႔
Ready
MA No. of days Recent Price Activity ႔ Matching Recent Price ႔
EMA15 Short-term MA ႔ 15 MA Medium to Long-term trend ႔ Short-term EMA
Traders Long-term EMA Investors Technical Indicator
Short-term ႔ Long-term Group (Traders & Investors) Overall Sentiment ႕ Short-term Long-
term Uptrend Momentum ႔ Downtrend ႔
Concept MA Crossovers Short Long Long

FOREX for Beginners
Downtrend ဝ ႔ Reverse Short Long
Downward direction ႔ ႔
MA value EMA30, EMA60, EMA100, EMA200 ႔ Close EMA100 ႔ EMA200 Investor
႔ EMA200 Market
DJI EMA10 EMA30 April EMA crossover Signal
2009 January Bearish Crossover ႔ MA Power
MA Derive Advanced Technical Indicator

FOREX for Beginners
MACD / Mac D
Advanced MA technique ႔ MACD (Moving Average Convergence Divergence)
Mac D ႔ MACD Gerald Appel late 1970s Technical Analysis Beauty
ဝ ႔ outdate
MACD ႔ MA Chart Obama Healthcare bill ႔ ႔
Aetna Health Insurance Example ႔
Typical MACD Chart MACD ႔ Signal ႕ MACD Histogram Equaliser Bar
MACD
MACD = EMA12 - EMA26
Signal Line = SMA9 of MACD
MACD EMA12 ႔ EMA26 ႔ Crossover EMA12 EMA26 MACD
႔ MACD
႔ EMA12 ႔
Crossover MACD Chart ႕ EMA Difference MACD ႔ ႕ MACD Chart
႕ Crossover MACD ႔ Signal Line Signal Dotted Line ႔ typically
Simple Moving Average Weight
Signal ႔ Buy/Sell Signal ႔ MACD Signal
Latest MACD
Momentum ၉ Average / ဝ ႔ Signal Line
Trader SMA9

FOREX for Beginners

FOREX for Beginners
MACD Histogram (MACD_H) ႔
MACD_H = MACD - Signal Line
႕ Equaliser Bar ႔ MACD_H MACD Signal Difference size
MACD Crossovers, MACD_H ဝ Wave Slope Price
Chart Trend Slope ႔ ႔ Divergence ႔ Slope Direction Convergence
႔ Divergence Disagreement Convergence Agreement MACD ႔
To buy
 MACD Negative Positive
 MACD Signal Bullish Crossover
 Price Trend Downward Slope MACD( ႔) MACD_H ႔ Upward slope
႔ Rule MACD Silver Bullet Analysis
ဝ Paper Trade ႔ Aetna Signal

FOREX for Beginners

FOREX for Beginners
Triangle Breakout
Triangle Breakout Technique Dow Jones Industrial Average Index ႔ DJI
Technical Chart Candle ႔ MACD cha Triangle ႕

FOREX for Beginners
Triangle Breakout
Downtrend Uptrend ႔ Price Triangle
Obviously Bullish
Bearish
Crowd Psychology ႔ Triangle ႔ Bears ႔ ႔
Translate
႔
DJI EMA200
Near term market outlook Technique Market Direction
႔ ႔
Combining Crowd Thinking with Crowd Commitment
Technical Analysis method Indicator Money Flow Index (MFI) ႔ Laszlo Birinyi, Jr.
MFI ႔ Price Volume MFI ႔ Charting Software Web
Site Standard ႔
MFI Formula
၁ Average Price = (High + Low + Close) / 3
၂ Money Flow = Average Price x Volume
၃ Period Money Flow 14-period

FOREX for Beginners
၄ Positive Money Flow = ၃ No. of Periods Average Price Previous Average Price
Average Price (Cumulative Total, in other word)
၅ Negative Money Flow = ၃ No. of Periods Average Price Previous Average Price
Average Price (Cumulative Total, in other word)
Money Ratio = Positive Money Flow / Negative Money Flow
Money Flow Index (MFI) = 100 - (100 / (1+ Money Ratio))
MFI Formula Step 7 MFI Value -၁ Range Bound Design MFI value 20 Oversold (Bullish) ႔
MFI value 80 ႔ MFI 20 Stock
႔ 80 ဝ ႔ Trader Profit-taking ႔ ႔
႔ Oversold/Overbought Stock Fundamental Data Oversold/
Overbought Technical Analysis Technique Trading Decision Common sense
Stock ႔
Dow Jones Industrial Candle Chart, MFI MFI ၁၄ MFI ႔
Up trend Candle Chart Trend Bearish Divergence ႔ Bearish
Divergence Trend Line MFI Bullish Divergence Trend ႔ -

FOREX for Beginners
Stock Investor ႔ Thinking
Commitment Price what the crowd thinks ႔ Volume what the crowd commits ႔
Price Volume MFI Index ဝ
MACD_H indicator Price action Analysis ႔ ႔ MFI Indicator Crowd Psychology

FOREX for Beginners
Trader ႔ Divergence Indicator Divergence Signal
၁
႔ Trading Money Management
ဝ Title ႕ Concept Robert Kiyosaki ႔ Dr. Alexander Elder Intellectual Property
Trading vs. Investing
Trading ႔ Investing Trading Short-term focused Investing Long-term
Stock Investing Day job Financial Advisor, Broker Tips ႔
ဝ ႔ Generally Definition ႔ ဝ
Stock Market Directly ( ႔) Indirectly Invest Investing Direct Investing
ဝ Stock solid bluechip stock ( ၃ ၃ )
Dividends ႕ Time in the Market is More Important than Timing in the Market
" " ႔ Invest You are going
to need a lot of LUCK.
Trading is a totally different ball game
Stock Trading ဝ Market Washed Out Long-term investing mindset Trading area
႔ Trading ႔ Totally different mindset 3M (mindset, method, management)
Technical Analysis(TA) ႔ Fundamental Analysis(FA) TA ႔ FA ႔
mindset ႔ management ႔ ႔

FOREX for Beginners
Mythbusting
Trading ႔ Myth Stock Market Analysis
Report ဝ Myth Trading
 Analysis Entry ဝ
 ႔ ဝ ႔
 ဝ
Trading ႔ Chance ႔ ႔
႔ ႔ Market Trade Professionals Institutions
" ႔ "
Net balance Positive
Lose Less, Make More
Trading Core Principle Loss Manage ႔ Loss Profit
Automatic handle Stop-loss, Stop-loss ႕ Trading Book
႕ Discipline
႔ Weight ႔ Weight

FOREX for Beginners
၂
Stop-loss Technical Analysis ႔ Long-term Fundamental based investor Technical Analysis
Stock Invest Shorting Simply Long
Stock )
Oldest and Simplest are the Best
Technical Analysis ႔ Trend line, Support, Resistance Stop-loss, Profit-taking point Define ႔
႔ Trade
 Profit is made at the Entry, not at the Exit. ( ဝ )
 Support ႔
 Support Close Support ႔ Volume
 Trade Open Support ဝ Stop-loss ႔ Trade ဝ Cut
Loss ႔
 Trade Open
႔ Nearest Resistance Profit-taking ႔
Resistance Trade Interval
႔ Exit Uptrend Clearly Broken Sign

FOREX for Beginners
Mindset
႔ Technical Analysis trading risk ႔ ႔ ႔
ဝ Entry Chart Profitable Trade ႔ ႔ ႔
Technical Analysis too good to be true ႔
Gambler and Lotto Player
Stock Trading ဝ
Mindset Trader Realistic decision
႕ ႔ ႔
You can't stop-loss! ႔ ႔ Probability 1 in a several millions
Mindset Trading
႔ Stop-loss ႔
Can't bear the feeling of losing money
႔ ႕
(Realised Loss) ႔ Trading Bad
Feeling Perspective ႔
Think like a business man
Business Employee ႔ ႔ Probability
Business Income Expense Expense ႔
႔ No way unless it's your daddy's business. Contribution
Employer Business The famous "L" word Layoff!
Business Owner Loss Business Expenses ႔ Profit
Revenue/Income Stop-loss Trader Expense Business Run ႔ ႔ Trade

FOREX for Beginners
Trade Sack Technical Analysis Analysis
႔ Resume ႔ ႔ ႔ ႔
Professional trader ႔ ႔
Stock Open, High, Low, Close, Volume Technical Analysis ႔ Closing
Price ႔ OHLC, Volume
Technical Analysis Dimension Minute, Hour Daily, Weekly,
Monthly Linear Dimension X-axis
Closing Price Stock Major Support ႔ Resistance Analysis Technique Point & Figure
(P&F) ႔ Bank of America (BAC) Chart
Chart P&F ႔ Stock ႔ ႔ ႕
Stock
႔ ႕ Amount Amount Multiplier ႔ Personal Choice
၁.၅ ႔ ၁ Daily Range x 1.5 times Box size ႔ Box size Chart Cross ႔
Circle Amount Cross Circle

FOREX for Beginners
BAC ႔ ၄ Range Box size 40c x 1.5 = 60c BAC P&F chart Cross/Circle
Cross Circle, Circle Cross ႔ Column

FOREX for Beginners
႕ ႔
Reversal ႔ reversal box amount Rule of Thumb 3 boxes Chart
BAC ၁ / Symbol
Cross/Circle ႔/ ႔ Stock price box size ႕ ႕ ႔
Reversal amount Violent Trend ႔ Symbol Switch Reversal amount 3 box
3 4 box 4
X-axis Linear Scale ႕ ႔ ႔ Box size amount
Closing Price Chart Update ႔ ႔ Alphabet initials ႔ ႔
Reversal Compressed P&F ႔
Metastock Software ႔ Box size ႔ Reversal amount Input P&F
႕ ႔ Data P&F ဝ BAC ၂ ၅ Data ႔
P&F ဝ Circle Reversal Major Support ႔ Cross
Major Resistance ႔ BAC Chart Major Support P&F Stock
 Box size = Average daily movement range of a stock price x multiplier (multiplier is personal choice and mine is 1.5) ႔ ၁.၅
Daily Range Price action Capture ႔
 Reversal boxes = 3 or 4 times of Box size (again, it's personal choice)
 Time scale is no longer linear on X-axis
 Mainly used to identify long term major support and resistance. Resistance Cross (X) Support
Circle(O)
 Better to use charting software help to draw P&F
 P&F Major resistance/support P&F ႔

FOREX for Beginners
 P&F Price Major resistance/support Verify ႔
 P&F ႔ Technical Analysis ႔
Psychology of Losing
Stock Trading Beginner Stop-loss ဝ
Paper Loss/Unrealised Loss Chance Stop-loss Realised
Money Loss Perspective Palatable
Forget about $$$
Manage ႔ ႔ Point ႔ Casino Chip ႔
႔ ႔
Point Down ႔
Casualty of War
Civillian Idea Trading
Remember how you learned riding a bike
Helmat
Trading Stop-loss Helmat
Trader Trading Millionaire
႕

FOREX for Beginners
Learn from Beckham
Beckham Twist ႔ Free kick Penalty Goal Kick
Beckham ႔ Personality ႔ Achievement ႔ Losses ႔
ဝ ႔ Soccer
Round 1 ႔ Chance Total ႔ Goal First-half
Second-half Beckham
Market Take a break Analyse
႕
႕ ဝ ႔ Defense
႕ ဝ ႔ ႔ ႔ ႔
ဝ ႔ .....
On Sale
Department Store Further off Trader
Retailer Further Reduced cut
loss Retailer
It's only in your mind
Losing Trading special case mindset
Trade Losing is only in your
mind and you have to manage losses. Don't let losses manage you.

FOREX for Beginners
Short with me
Trader Market ႔ ဝ Market
႔ Long(buy low, sell high) Short(Sell high, buy low)
How to Trade Like a Professional
trading ဝ
Analyse Method ႔
Method Software ႔ Data (၁) Trader Method ႔
႔ ႔ Topic
႔
Knowledge Apply Professional trader ႔
Fact No. 1
Method ႔ Professional Trader Market ဝ Money Management Skill
Develop ႕ Market Analyse Trade
See the catch word here? " " ႔
Professional Trader small managed losses
Good Money Management Skill

FOREX for Beginners
Fact No. 2
Amateur Trader Market ဝ Big Profit ႔ ဝ Professional ႔ Big Losses ႔
Professional Loss Manage Profit Auto Amateur
Dr. Alexander Elder "A fool and his money can throw
one hell of a party" Market Profit ဝ Market Fool
Seriously, Manage your losses and have a good money management discipline.
One example of good money management: R-multiple system
Dr. Van Tharp R-multiple management system money management R-multiple system
R Risk Trader Trade ဝ Define
Trade ၂% ၅% ၂%-၅% Market Amount
Trade total cost Professional ၂% ႔
၂% Practical ၂%-၅% ႔
R Trader R amount ႔ cut loss ႔ ႔ R amount multiple Profit taking
႔ determine 2R or 3R amount R $200 2R $400 R-multiple ႔
Trading system Trading system Entry, Exit rules Technical, Fundamental generate MACD
crossover ဝ trend line ဝ No system is perfect but
there has to be some probability of success of your trading system. system %

FOREX for Beginners
# Invest Capital Risk or R Win/Lose Reward Multiplier
1 2000 10000 200 L 2
2 2000 9800 200 L 2
3 2000 9600 200 L 2
4 2000 9400 200 L 2
5 2000 9200 200 L 2
6 2000 9000 200 W 2
7 2000 9400 200 W 2
8 2000 9800 200 W 2
9 2000 10200 200 W 2
10 2000 10600 200 W 2
NET 11000
Table Figure Total ၁ Trader Trade ၂ ႔ R
၂ Total ၂% ၂-၅% range Conservative range Reward multiple 2R Risk
Method(Technical,Fundamental) Probability Example 50%
System ၅ % Market 90% ႔ Example

FOREX for Beginners
၅ % System Probability ႔ ၅ % Trade ၅ ၅
Key R amount 2R
၁ ၁ % return Trader weekly, fortnightly frequency ႔ Trade
period ၁ % ၁ % , ၄ %
 R total equity/cash
 Trade R amount cut
 R-multiple amount profit taking
 Method(Technical, Fundamental Probability system ႔ ႔ Success rate ၅ %
 Method continually refine
Van Tharp R-multiple system very simple Professional Trade Pro
၂၁ ႔ Trade Financial Freedom example Trade ၁
Risk R ၂ , 10 trade ၁ total profit 5R ႔ 5R 10 trade ႔ 0.5R average
Van Tharp Trader's life expectancy ႔ Life expectancy
႕ ႕ equity
Amateur ႔ Market Washed out Example ႔ Table Risk 2R R amount ႔
႔ ၄ ၂ ႔ ၁ -0.5R
expectan Key point Amateur Hope ႔ 2R+ R amount
႔

FOREX for Beginners
# Invest Capital Risk or 2R Win/Lose Reward Multiplier
1 2000 10000 400 L 0.5
2 2000 9600 400 L 0.5
3 2000 9200 400 L 0.5
4 2000 8800 400 L 0.5
5 2000 8400 400 L 0.5
6 2000 8000 400 W 0.5
7 2000 8200 400 W 0.5
8 2000 8400 400 W 0.5
9 2000 8600 400 W 0.5
10 2000 8800 400 W 0.5
NET 9000
"Cut your losses fast and Let your profit run". R-multiple system Trade Probability system
Different money management trader ႔ Concept
Professional Trader ႔ Happy Trading!

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