21FX Secrets Complete

Notice: The strategies, formulas, concepts, and insights found within

this document are intended exclusively for FX Nation Live Members.

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INTRODUCTION

Welcome! The strategies you are about to review have been a massive part of DC Bonta’s success. DC is recognized as one of the top FX traders in the world because of his legendary profits and high returns. For example, in the past 3 years alone, his trading record reads as follows: 301.7% NET return... 305.0% NET return... 343.5% NET return. Carefully review these strategies and discover you too, could potentially explode your forex trading profits and returns. These secrets are taken from a series of letters DC wrote to FX Nation Live members and show a rare insight into the style and personality of the world’s number one FX money manager.

TABLE OF CONTENTS

THE THREE PERFECT TRADES --------------------------------------------------------------------------------- 1 SAFELY PREDICTING THE POINT OF PROFIT ----------------------------------------------------------- 4 A STRAIGHT LINE POINTING TO FOREX PROFITS AND EASY MONEY ------------------------- 6 FX PROFIT ENEMY #1: YOUR BROKER ---------------------------------------------------------------------- 8 99.999% ACCURATE, BUT 100% WRONG--------------------------------------------------------------------10 SIGNS OF A PROFIT TSUNAMI PART 1 ---------------------------------------------------------------------12 SIGNS OF A PROFIT TSUNAMI PART 2 ---------------------------------------------------------------------14 MOST OF GRANNY’S SAYINGS WERE CLEVER AND USEFUL… -----------------------------------16 THE “PEACE-OF-MIND” TRADE. ------------------------------------------------------------------------------19 THE NON-SECRET SECRET THAT EVERYONE IS MISSING------------------------------------------21 THE “2 TO 1 LAW” COULD SAVE YOU HUGE LOSSES ------------------------------------------------24 ONE WORD THAT WILL SET YOU APART FROM THE CHUMPS-----------------------------------27 A STRATEGY FOR LOSING 60% OF THE TIME… AND WINNING 100%--------------------------30 PARENTAL ADVICE FROM GENERAL ROBERT E. LEE… IT’LL CRANK UP YOUR PROFITS ----------------------------------------------------------------------------------------------------------------32 FOREX AMNESIA:---------------------------------------------------------------------------------------------------35 LOSING WHILE YOU’RE WINNING---------------------------------------------------------------------------39 A SINGLE WORD THAT WILL SAVE YOUR KEISTER AGAINST MARKET REVERSALS ---41 THE BEST OF TIMES… AND THE WORST OF TIMES---------------------------------------------------44 TORCHING ANTS WITH A MAGNIFYING GLASS -------------------------------------------------------46 THE SWING MADE BABE GREAT… IT COULD DO THE SAME FOR YOU ----------------------49 A FINAL LESSON FROM GRANNY: “DON’T PUT ALL YOUR EGGS IN ONE BASKET” ------52

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FOREX SECRET #1

The Three Perfect Trades Easy, Fast, Potentially Huge Reward to Risk… Every Time. Dear FX Top Gun, I’ve seen it countless times, but it still makes me cringe. New traders, full of hope and energy, become almost obsessed with FX trading. The bulk of everyday is spent watching their pips, changing their strategies, adjusting their stop-losses. Soon, they are getting up early for London… or staying up late for Sydney. They live off a few net gains a day – or even a week. Yet, in the end, reality sinks in as they realize that they’re just like the other 95% of Forex traders that are losing money. In many cases, the financial impact can be devastating. I hope none of this sounds familiar. But, if it does, I’d like to give you my first secret – a secret that will simplify life, reduce your stress and help you crank out 10-50 pips every time you trade. It’s easy, stress-free money. The first thing you need to do is stop trading everyday, get some sleep and relax. Too much emotion – especially emotion driven by adrenaline and lack of sleep – will kill your returns. The big industrial players like banks and major corporations handle FX without emotion. They’ve got a system, a formula, and a strategy, and they faithfully implement it, no matter what their candles are doing in the moment. So, if you’re not trading everyday, what do you do? I suggest that you get started by making only three trades a month. That’s right, three trades.

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21 FX Secrets – Revealing Forbidden FX Profit Strategies To claim the exclusive bonuses worth over $199 that come with your FREE Membership,

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But these are not just any trades, they are what I call “Perfect Trades”. Low risk, fast (you’ll spend less than 2 hours a month), and highly profitable. Let me explain… The net position of the banks right before a news report is released often times gives us an indication of where price is heading. This may be only the initial spike or “knee jerk” reaction to the report and may last only several seconds, but it usually provides some quick profits. This is a great strategy to use during the most important news reports each month. I only closely track just three news reports a month. If you are having a hard time turning regular profits, or are just getting started, I suggest you set up just three trades a month to correspond with these news releases. If you do, you can turn easy money. Here are the three reports and when they’re released:

1. Non-Farm Payrolls/Employment Report - This is the most influential news release of the month. It’s announced on the first Friday of the month at 8:30am ET for the prior month.

2. Consumer Confidence - The Conference Board conducts

a monthly survey of 5000 households to ascertain the level of consumer confidence. It is announced on the last Tuesday of the month at 10:00am ET.

3. Retail Sales - The retail sales report is a measure

of the total receipts of retail stores. This report is announced around the 13th of the month at 8:30am ET.

To successfully make these trades, you will need two things: First, a comprehensive strategy of when and how to set up the trades. Second, you’ll need to know exactly where the banks are just before and just after the reports. I’ve made it extremely simple for you to get your hands on both of these essential elements... First, I have a proprietary tool included in my charting package that shows the net positions of the banks at any time. You will not find this tool anywhere else.

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Second, I’ve created a report that gives you the full details on setting up the trade. Like the charting tools I’ve got, you’ll not find this strategy anywhere else. I developed it, and it’s one of the things that has made me the world’s number one FX money manager. Of course, as an FX Nation Live member, you already have unlimited access to these powerful tools. Plus, you have access to the member’s only forum where you can ask direct questions about how to use these to crank out profits. So use ‘em and then come to the forum and tell me about your successes. I’d love to hear from you. (www.fxnationlive.com/members/blog) Here’s to Your FX Success, D.C. Bonta The world’s number one FX money manager

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FOREX SECRET #2

Safely Predicting the Point of Profit Dear FX Top Gun, What if you had a crystal ball that would tell you just what the market was going to do? I’m talking about a peek into the future so you can see where to place your stops so you can safely grab pip after pip of profit without the market cleaning your claw. Of course, a 100% accurate crystal ball like this does not exist. Heck, that’d take all the nail-biting fun out of trading FX. But there is a tool, that when used properly, can give you amazingly accurate data on future events and trades. I’m talking about harnessing the power of Pivot Points. In simple terms, pivot points are used by floor traders to determine a daily price range. It is calculated as follows:

Pivot Point (PP) = (High + Low + Close) / 3. Since Forex is a 24 hour market, the debate is always when to calculate the pivot points. The most accurate calculation of pivot point levels to determine the next day’s price range is by taking the high, low and close at 00:00 EST (midnight EST). For example, on a 60 minute chart, we would take the close of the 23:00 EST candle and the high and low from 00:00 EST through the close of 23:00 EST. For trading during Monday’s session take the pivot calculation from 00:00 EST on Friday to the close of the 23:00 EST candle on Sunday.

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There are other formulas for determining multiple pivot points that represent additional support and resistance levels as well. You can easily calculate all of these levels in seconds with our free pivot calculator on www.fxnationlive.com Here’s To Your FX Success, DC Bonta The world’s number one FX money manager

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FOREX SECRET #3

A Straight Line Pointing to Forex Profits and Easy Money Dear FX Top Gun, Trends are funny things… they are here one minute, and gone the next. If you miss them, it’s like stepping right over a rich vein of gold… and if you hit them right on… it’s PAYDAY. So, how do you nail down trends and turn them into profits? Especially in the Forex market where a trend can move, emerge, flourish, and dissolve in a matter or minutes?

Here’s the simple answer: Draw a straight line. Ok, let me explain this one… The line you’re drawing is called a “Fibonacci Retracement”. Most people only use them to determine support and resistance points during a trend. But, given the right charting tool, you can capitalize on these little straight lines to help you predict future trends and turning points. So, here’s what you do:

Calculate the distance from the low to the high of the trend and calculate 38.2%, 50%, and 61.8% of the distance of the trend.

Subtract those values from the top of the trend. Those levels should act as support and resistance

and provide clues to where the market is heading next.

Our Charting package at www.fxnationlive.com includes a tool that calculates and draws the lines for you - all you have to do is connect the low of the trend with the high of the trend using the Fibonacci retracement tool. The charting system does the rest for you so you can capitalize on the market sweet spots.

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Now For The Deep Secret for HUGE Profits…

Ok, now that you’ve got the basic idea down, let’s move this idea to a deeper level. Here’s a question for you: Fibonacci retracement is all about connecting the right dots. But, which dots should you be connecting? In other words, if you gander at a day’s worth of trades, there are a heckuva lot of dots that you could be connecting. So which ones will kick back the most profitable trends and projections? Here’s what I do… The most relevant set of Fibonacci retracement levels are when you draw the line from the high to the low of the last swing movement that hasn’t already retraced back to a Fibonacci level. Ok, one last tip: Most people lose the Fibonacci game because, well, their charting systems stink. (Hey, no offense, just the reality). Lots of those charting programs are put together by a bunch of programmers that are FX clueless – they’re just putting in a bunch of code based on what a handful of FX traders are telling them. Unfortunately, more often then not, the FX traders calling the shots are equally clueless. Now, you’re going to be expecting this next pitch, but I have to say it anyway…

Use my charting tools! Ok, there’s my sales pitch… But it’s a good one, and an easy one to implement since, as an FX Nation Live member, you have free, unlimited access to all of my stuff. The bottom line here is that by using this Fibonacci trick, I’ve been able to seriously ramp up my returns… and so can you. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #4

FX Profit Enemy #1: Your Broker Dear FX Top Gun, “Et tu Brute?” These last words of Julius Caesar may well be your last words to your FX broker. Why? Because most of these folks are your number one enemy. They smile to your face, beg for your business, hype up their benefits… and then stab you in the back. Here’s why… It’s a proven, hard, cold fact that 95% of all FX traders lose money. Someone’s got to broker the deals and someone needs to make a profit. So, being business savvy, they set themselves up to win when you LOSE. This means that whether you like it or not – and whether they’ll admit to it or not – everything in their business model is designed to help you lose money in the Forex market. Yup, every scrap of advice and every bit of encouragement these folks offer will eventually put you on a path to losing pip after pip. Reality bites, but there it is. Now, in fairness, not all FX brokers out there are set up like that. But about 95% of them are. How do you know who you can trust and who you can’t? There is one massive indicator. If you see this one thing, turn around and run. If your current broker has got it, then get out fast because they are praying you’ll be one of the unfortunate FX minnows that gets eaten by the sharks.

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It’s called a Dealing Desk Any retail brokerage firm with a dealing desk is taking the other side of your trades. In other words, when you win, they lose and when you lose, they win. Which do you think is going to happen more often? What you need to do is find a brokerage firm that does not have a dealing desk. These folks only make their money through trading volume, not by plundering your profits – or losses, as the case may be. All they do is pass your trades along to the true inter-bank market (banks), which compensates them for volume. This scenario means that they actually want you to win on each and every trade. Why? Because folks that win at FX stick around and do more trading. Folks that lose get eaten alive. They go home licking their FX wounds and fretting about how they’re going to tell their spouse that the old retirement fund just got sucked down by the “market”. You can bet the losers don’t come back too often to take another beating, so their trade volume over time is low. See now why I hate those friggin’ “dealing desks”? In fact, they bug me bad enough that I put a list together of the biggest names out there that have the cursed desks. Yeah, they hate me for doing it… but who cares, it’s your profits I’m looking out for, not the big-banks and institutions. So, if you don’t have that report, download it today (www.fxnationlive.com/self) and, for heaven’s sake, if you are still using one of these guys, stop abusing your profits and make the move to a broker that is on your side. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #5

99.999% Accurate, But 100% Wrong Dear FX Top Gun, If your homebuilder put your house together within .01 inches of the specs, he’d be called a master builder to the tenth degree. But if you get that sloppy with your FX trading, you’ll be dead in the water. And, believe it or not, for many traders, the difference between great profits and horrible loses is just that simple… they just need to be a little more exact in their numbers. Yup, there’s no doubt about it… sloppy, loose, non-exact, lazy figures are why 95% of FX traders get eaten by the sharks. Here’s the good news… Simple Problem = Simple Solution I love this secret to FX trading because the answer is so simple. Without any skill level, training, or practice you can fix the problem immediately… and results immediately. Want to know how you fix the problem and boost your profits? All right, listen carefully… Only use indicators that can accurately tell you the EXACT

price in which to enter and exit the market. I told you it was simple! If you are using pivot points, for example, and want to short the EUR/USD when it hits a resistance pivot point at 1.3500, then that is a valid entry price for your trade. Don’t move it up to 1.3505 or drop it down to 1.3495. If 1.3500 is your target, then use that EXACTLY. The same is true if you are using pivot points for profit targets. Using the same example, if the next support pivot

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is at 1.3450 (not 1.3455 or 1.3400… it’s 1.3450!), then that is a valid exit price and an accurate one. This allows you to know your trade set up well in advance and you can put that trade on with no emotion (And remember, being able to trade without emotion and follow a pre-set strategy is absolutely key to winning big with Forex.) Using these numbers, setting up this trade would look something like this:

Short EUR/USD at 1.3500, Profit Target at 1.3450, Stop loss at 1.3515.

It’s a good idea to limit your downside risk to 10-15 pips above that resistance level since that would make your trade invalid, as price did not hold at that point. Then, let the trade go. Obviously, the key to this whole thing is having indicators that are accurate and give you EXACT numbers. Without those kinds of precision tools, you will definitely find yourself among the 95% of FX traders that lose money. And I’m guessing that you don’t want to be there... I’m guessing you’d much rather crank out profits month, after month, after month… As you know, not long ago I took my 11 plus years of FX trading experience and decided to roll it all up in one location. Well, OK, not ALL my experience, but a healthy chunk of it to start off with… and then I’ll add more stuff as we go. But for now, I’ve set it up so folks like you can get access to all the tools and MOST of the tips and tricks I use to crank out such incredible profits (3 years running at over 301% annual profits… not shabby, eh?). If you don’t know about all the tools I’ve posted at www.fxnationlive.com, maybe its time to see what you’re missing out on… it could be costing you TONS of profits. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #6

Signs of a Profit Tsunami Part 1 Dear FX Top Gun, There is an old legend among those living on the far-spread islands of the Pacific Ocean. Well, more than a legend, it’s some ancient wisdom about how to recognize the imminent danger of a massive killer wave – a tsunami. In fact, this ancient knowledge was used by the Moken people who live off the coast of Thailand, just prior to the dreadful tsunami that struck on December 26, 2004. On that day, the elder fishermen in the village noticed that the waves had calmed and that the sea began to recede from the shore. They knew that these were sure signs that a “laboon” – a wave that eats people – would soon be there. In response, they sounded the cry and got the villagers to move to higher ground. Happily, because of their knowledge of these warning signs, not a single life was lost among the Moken people.

Here’s A Bit Of My Own “Ancient Wisdom” Today, I’m going to give you some “ancient wisdom” about some Forex market signs. When you see these signs, you’ll know for sure that you need to move. Of course, by moving, you’ll do two things…

First, you’ll save your keister from getting wiped off the FX map. Second, you’ll be in the perfect position to scoop up a ton of pips – easy money!

All right, let’s talk about some things to keep your eye on…

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Gold seems to have an inverse relationship to the dollar. In fact, you can bet that when gold prices are increasing, the dollar is sure to start downward. The best explanation for this is when confidence in the US Dollar goes down, investors flock toward gold, which has a “safe haven” reputation. Furthermore, the Swiss Franc seems to be closely correlated with Gold. That means that the CHF will be increasing as Gold increases. This would cause the USD/CHF to fall because the USD (which is the base currency in this pair) is weakening against the CHF. Because of this close connection between gold and the USD/CHF, I insist on having a gold price indicator instantly and easily accessible in my tool bag. In fact, it is one of the prime components that you’ll find in the charting package I’ve put together. Having this handy makes it possible for me to turn quick, easy profits when gold is on the move. Remember, the charting tools and tracking packages available at www.fxnationlive.com are also exclusive and will definitely give you the cutting edge… consider it a safety cage against the villainous sharks that are cruising the FX waters. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #7

Signs of a Profit Tsunami Part 2 Dear FX Top Gun, Remember the Moken people? Not one of them died in the December 2004 tsunami because they knew the signs. In Secret #6 (see it here), we discussed the power, safety and potential profits of watching certain market signs. If you missed it, be sure to grab that issue and put it to use… it could make you a bundle, if used correctly. Today, we’re going to talk about another sure sign of movement… and how you can dip in and ride the wave to easy money

Keep Your Eye On the Black Gold Market One of the surest ways to predict what will be happening to the US Dollar/Canadian Dollar pair is to watch the “black gold” market. That’s right, the movement of oil is a sure sign that the USD/CAD will also be moving. Knowing where and how fast it will move is critical to turning that movement into profits. I’m going to give you two tools to understand how you can do this… First of all, let me tell you the direction things move: If oil prices are on the rise, the Canadian Dollar is the best play. The reason for this is that the US imports about 80-85% of Canada’s oil exports, so if the price of oil is rising, the Canadian dollar will move right up with it.

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When this happens, I suggest you short the USD/CAD pair because if the CAD is rising against the US dollar, the USD/CAD will fall since the USD is the base currency in that relationship. So that’s the first tool … watch the oil prices.

Daily, Unlimited Access to The World’s Best The second tool will not only help you recognize when oil is moving, but will also help you understand exactly what to do with your trades when it does. You see, every morning I step into the trading room to do a live broadcast of my personal market analysis, show what trades I’m setting up for the day, and review current events and trends. There is enormous power and profit potential behind these daily video sessions. I’m showing folks, just like you, how I’m able to turn $100,000 into over $438,000 in about 6 months! That’s a 338.14% compound return! It’s mind blowing to most investors and traders to see those kinds of numbers… but I’ve been doing it for years now. The insane part of this whole deal is that, as you know, I’m giving those daily video commentaries away completely free of charge! I know for a fact that lots of people would pay HUGE money to see what I do everyday. But, that’s not why I’m doing it. I’m doing it to help level the playing field. I’m doing it to give private traders like you an edge over the big institutions that wipe out folks every day. So, jump in there and make the most of it… and when you rip out wildly high returns and huge profits, be sure to come back to the member’s only blog and tell me all about it. I can’t wait to hear your story. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #8

Most of Granny’s Sayings Were Clever and Useful… This One Could Kill You Dear FX Top Gun, “Look before you leap, boy – it’ll save ya a load’a pain” “You are what you eat, sonny… so quit shovin’ them Twinkies in!” “If ya ain’t got somethin’ good to say, don’t say anythin’ at all... so, why is your mouth still movin’ boy?!” Well, just some of the wisdom from a generation that was a heckuva lot smarter than some of us seem to be today. But, there is one old saying that many of us have lived by for year that is bad news when it comes to Forex trading. You recognize it -- it goes like this…

“Practice Makes Perfect.” I’m sure that in most cases, that is true, but you’ll want to avoid “practicing” in the Forex world… unless you’re doing it the right way. Let me explain… One of the first things you’ll see when you start looking around the internet for info on Forex are demo accounts. Just about everyone, everywhere is offering a demo account. There are two things that I want to point out…

1. Most of the companies offering demo accounts have “dealing desks” – that’s a sure sign that something is up. (To see my beef with dealing desks, check out Secret #4) It’s the good, old-fashion puppy-dog close… get ‘em using the account and, after a while, they’re

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hooked. Unfortunately, the firms offering the best looking, slickest demo accounts aren’t necessarily offering the best services or information on the Forex market.

2. You’ll notice that I don’t offer – or promote – demo accounts on my site, www.fxnationlive.com

I bet you’re wondering why I don’t. Here’s why… Demo trading may be good for learning how to place orders and getting to know some of the mechanics of the platform, but nothing replaces the emotions of trading with real money. Those emotions – the raw passion of watching real dollars and cents move in and out of your account – can be the making or breaking of your Forex trading. I suggest you get used to feeling – and most importantly – overcoming those emotions as quickly as possible.

A Demo Strategy Is NOT A Real Strategy I have seen far too many traders THINK they have a profitable strategy on a demo… and then they lose everything once they start trading with real money. It is always the emotions that kill them. At the first sign of profit, or loss, they jump in and start changing things. And that is where they lose it. To avoid that pitfall, it is essential that you start with only risk capital. This should be funds that represent 5-10% of your total available capital and funds that you are OK with losing. Doing this will get you used to the emotional swells of being in the “trading room” and allow you to steel yourself against those emotions. So, I guess Granny was right after all… practice does make perfect… but only if you jump in with real money.

“Look Before You Leap” Now, does that mean that you should jump in blind? No, remember the other saying, “Look before you leap”? In the Forex market this means that you should get a solid, bulletproof strategy put together and have access to the top players in the market.

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Lucky for you, I’ve made it VERY easy to get the most profitable strategy and have unlimited access to the most profitable and powerful FX traders in the world. Of course, as an FX Nation Live member, you have all of that and so much more. The site is packed full of access to the world’s most exclusive and potentially profitable FX trading tools. So, buzz around, read up, dig in… and make the jump. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #9

The “Peace-of-Mind” Trade. Its 1 Scenario With 2 Lines… and It Could Equal 2X Profits Dear FX Top Gun, Some trades make you a nervous wreck. Well, OK… most trades can make you a nervous wreck. I mean you do your best… implement your best strategy… use your most brilliant techniques… but still who can say what the market will do that day? And that’s just part of the game. I’ve told you a million times that if you let your emotions run your trading you’ll get killed. But still, stopping your hand from “tweaking” a trade set up does not mean you don’t feel the burn in your belly. It’s the thrill… and sometimes the curse… of swimming with the sharks in the turbulent waters of FX. That’s why I’m excited to give you Forex Secret #9 – it’s what I call the “peace-of-mind” trade.

Pinpoint Accuracy I call it that because of how pinpoint accurate this thing is. When you see it come together, you can jump in with both feet and be totally confident that you’re going to come out on top (well, at least as confident as you can be with FX… no matter how good you are, or how perfect the set up is, you’ll lose a few pips here and there… but that’s another story!) Now, to accurately use this Secret, you’re going to need to really understand the principles I talk about in Secret #2, Secret #3, and Secret #5. If you don’t have those under your belt, I suggest that you stop reading right now and review them.

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Trust me, what I’m about to say will make a lot more sense. Plus with #2, #3, and #5, you’ll be totally equipped to make this “peace-of-mind” trade a reality. Are you ready now? Great! The one scenario is this… There are times when your key Fibonacci levels will overlap with pivot points. When that happens, it’s like having the great cosmic profit tumblers of the FX universe align… you can be sure that if you play it right, nice profits are soon to follow. Let me show you exactly what I mean… Again, look for areas where key Fibonacci levels (.382, .50, .618) overlap with pivot points and/or trend lines. Let’s say the USD/CHF is in a current downtrend and price has temporarily spiked up to 1.2072, but there is a .382 Fibonacci level at 1.2073 and a pivot point at 1.2075. When you see those kinds of number, you know that you have all the makings of a high-probability, low-risk trade scenario. You can now set up a trade that will be pinpoint accurate and give you a load of pips all afternoon. There’s a reason for that… Price will most likely not go any higher and you can play the bounce off of those levels. In fact, you should have even more confidence because you are also following the overall down trend by going short. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #10

The Non-Secret Secret That Everyone is Missing Dear FX Top Gun, Remember that old story of the Emperor and his “New Clothes”? Secret #10 reminds me of that. There he was, the great monarch – the mighty ruler of the land, strutting around like a peacock because of his marvelous, magical new clothes that no one else had (including himself). The guy was completely buck-naked… and everyone knew it. I think even he must have known it, but his pride and arrogance kept him from seeing what was so obvious to everyone else. Folks in the Forex world get like that Emperor sometimes. They take time, money and energy to study up on the best and brightest strategies. They usually start with the basic fundamentals that are essential to profitable trading and high returns. Some even put the basic stuff into practice and win. But then, along comes a slick talkin’ “guru” (and I use that term lightly here… I should say slick talkin’ salesman) with a whole bag of fancy new tricks… and the old standard fundamentals get thrown out the window. The result? A whole lot of really “clever” FX traders running around in their cool “new” strategies… but everyone can see that they forgot to put on their fundamentals that day. Yup, sad to say, but 95% of all the folks trading Forex out there are financially naked and losing money fast.

It’s Time to Put On Some Real Clothes

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So, I call this secret, the non-secret, because it is really just a basic fundamental of trading. You’ve heard it just about as many times as you’ve slipped into a pair of pants in the morning. It’s old hat and old school. But it works. The non-secret covers your backside and protects your assets. It creates profits and solid returns time after time. It helps you get a solid base of consistent, regular, predictable, profitable trades, day in and day out. It’s like putting on a well-worn pair of jeans… sure they’re old, but they’re comfortable and they cover you up. Here’s the kicker… I’m willing to bet that 9 out of 10 traders out there don’t use this basic fundamental “secret” when they are laying out their strategies and setting up their trades. Maybe they don’t understand it, and that is why they don’t use it. I don’t know… I just know they don’t use it. But they should, because the stuff they’re flashing instead is kinda embarrassing. Ok, enough of that! Here’s the non-secret secret…

Trade With The Trends. I know… lame, boring, old school. But again, it’s made me a bundle of dough. Trading with the trends is an essential fundamental that you need to understand. I’m going to assume that you are one of the more clever traders out there and not insult you with a long, drawn out explanation of the principle. You probably have heard it all before. What I will do is just make it a bit more specific to Forex trading so you get the full picture of how to apply it here. You need to find the current trend on a longer time frame like the daily chart – or even longer. Sometimes, you have to go back several months to get smooth data. For example, price may appear to be in an uptrend for a specific month – but is the pair in a current uptrend or is that a retracement of a downtrend already in progress? The

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only way to know for sure is to go back a few months and take a look. In Secret #9, I explained that if it’s in a downtrend, then draw Fibonacci levels from the high to the current low and see where the market may retrace. Has it already retraced to those key levels? Also, you can draw the monthly pivot points on the daily chart to see where support and resistance is. Do these levels overlap with any key Fibonacci levels? Now, do the same on your shorter time frame charts like the 60 minute, 30 minute, 15 minute, 5 minute or whatever you use for intra-day trading. Once you clearly see the trend, you can play the bounces at these key support and resistance levels in the direction of the overall trend. So, if it’s in a downtrend, FORGET about looking at any long positions. Simply look for levels where price is going to hit resistance and short at those levels.

A New Closet Full Of Real Clothes… and Huge Profits Here’s a promise: If you nail down this basic fundamental of the Forex market… and consistently use it…your trading will improve dramatically! Remember, the fancy “new” ideas, strategies and concepts are not necessarily bad – some of them should have their place in your arsenal. But they should never, ever blind you to the importance of consistently using the fundamentals. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #11

The “2 to 1 Law” Could Save You Huge Losses Dear FX Top Gun, There’s an old story about an old mountain man who made a living back in the late 1800’s selling raccoon skins. Of course to sell the skin, he had to convince the raccoon to part with it, which the ‘coon usually wasn’t willing to do alive. This particular trapper had an unusual way of going about the whole deal. He’d take a large can and punch a little hole on the top that was just big enough for a raccoon paw to fit through. Down inside the can he’d drop a couple of shiny metal slugs and then securely attach the can to a tree. Well, you know the story… along comes the raccoon, and being curious about the shiny metal at the bottom of the can, he reaches in to grab it. When he tried to pull it out, his little paw, now combined with the slugs, was too big to get out of the hole. So, that poor, dumb ‘coon was stuck. As long as he held onto the shiny metal slugs, he wasn’t going anywhere. Here’s an odd thing about the whole deal… The old mountain man discovered that simply dropping one slug down in there was not enough. Maybe it didn’t shine well enough or make enough noise – I don’t know. But to entice the raccoon, he had to put at least 2 slugs down inside the can. Every afternoon the mountain man would come along with a single-barreled shotgun and round up his hides. Now, you would think that looking down the barrel of that shotgun would motivate the ‘coon enough to let go of the slugs and get out of there. But it didn’t. He’d hold onto those 2 worthless slugs for dear life… and in the process he’d have to part with his fur.

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How To Avoid Losing Your Hide There’s a powerful lesson in that story. It’s what I call the “2 to 1 Law” and I see it all the time in Forex trading. The “2 to 1 Law” goes something like this… Before you even think about getting into a trade, you should have multiple indicators all in your favor. You must have at least 2 good reasons to enter the market… and, of course the more positive indicators, the better. Suppose you have 5 separate indicators that you look at in your particular strategy. Before you enter a trade, 2 of those indicators should confirm that you stand a chance at not losing your hide on the deal. Under no circumstances should you reach into the market with just one good indicator… no matter how compelling that one indicator is. Ok, that’s on the opening position… what about exiting? You only need one indicator to motivate you to get out. That’s the “2 to 1 Law”… 2 reasons (or more) to get into a trade, but only one reason to get out.

Here’s How It Works… Ok, let me give you a quick example and then a simple formula to help you live by this basic law. In my Institutional Forex System II, I teach a method of using Fib levels and pivot points as main indicators to simply see if a trade set up is close. If price is approaching one of these levels, we have a possible trade set up. If there is double support/resistance, meaning a fib level and a pivot point are near the same price, that is two indicators right there telling us to enter (See Secret #9 for more details on this strategy). We could also have other indicators in our favor such as buy/sell pressure, net position of the banks, keltner channels, etc. On the flip side, if only a pivot point occurs, but all the other indicators are not confirming the direction of our trade, it is not a valid entry.

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When you are looking at profit targets, just one of these indicators is good enough to exit. So, if all other indicators still show positive for our trade, but we are coming up against another pivot point, that pivot point price is a valid exit point for our trade.

Now For The Simple Formula… Any trading strategy should look like this: If A, B AND C occur, then ENTER If A, B OR C occur, then EXIT

Two Mistakes and One Huge Mess Most of the time, what I see is this: A trader gets a number of indicators in their head and starts looking at the market. Their eye catches one positive indicator and the adrenaline starts pumping and they start seeing dollar signs floating in front of their eyes. So they reach into the can with both hands and grab on. First mistake. Now, once they are in, they begin to mentally justify their position… even when things start dropping out the bottom. They keep their mind fixated on that one reason why they got in, even though now there are 2 or 3 or 4 reasons why they should get out. That’s the second mistake… and at some point it will be their last. Remember… 2 (or more) good reasons to get in, but only one reason to get out. After all, you don’t want to be stuck holding the can looking down the barrel of a financial shotgun. In a situation like that you could lose your hide. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #12

One Word That Will Set You Apart From The Chumps Dear FX Top Gun, No one wants to be a chump. I know I never did. Chumps don’t make a lot of money, they get tricked easily, they don’t have a lot of friends… and did I mention that they don’t make a lot of money? In the Forex market, there are a lot of chumps. They get duped into believing that they can open up a demo account, play around for a few days and suddenly they’re the expert (see Secret #8 for my view on that subject!) In goes the real money… out comes a flat broke chump. My message today is “Don’t be a chump.” 95% of the Forex traders today are losing money – they are getting slaughtered… nothin’ but shark bait. So, I’ve got one word for you (and it’s attached to a very simple strategy) that will help you be an FX Top Gun – not a chump… and help you beat those nasty sharks (the big banks and institutions) at their own game.

The Word Is: Restraint Yeah, “restraint” is the single word that will separate you from the crowd – which is a good thing since the crowd is losing money hand-over-fist. It’s an ugly word in our society today. We’re all about fast food and microwaves. Who wants to sit on their hands and do nothing? Where’s the action? That’s why I’m in Forex … the action… the fast-paced, lightning-speed, feeding frenzy of the trade!

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Hey, I love all that stuff just as much as the next guy. But sometimes you’ve got to have a bit of restraint. You’ve got to get a grip on yourself, slow down and (I hate to say this) do absolutely nothing. Let’s talk about when you should – and should not – exercise restraint. Knowing the difference is what separates the winners and losers in the trading room… and I really want you to be one of those winners. Because being a chump stinks. No matter what is going on with price action during a day, if your pre-set parameters to enter a trade have not been met, sit on your hands and do nothing (Secret #10, #3, #6… ah, heck… most of my secrets will tell you about “pre-set parameters” Read them… they’re good!) Sorry about the commercial… back to the message… Overtrading is a common problem, especially with amateur traders. The pressing need to do something is powerful -- either when price is moving wildly or even when price is doing nothing and boredom sets in. Resist it! Restrain yourself! Sometimes the best move you can make is to do nothing and wait for another day. Remember… it’s not a race to see how many trades you can execute…

It’s about how much money you make. If you entered only 1 trade for a month and it made you 10% net, that would be a great return. The bottom line is this: Activity does not equal profitability. What does equal profitability is consistently grabbing 10-30 pips a day… and keeping them. And that is what I am all about. I’m all about reaching in, grabbing those pips, and keeping them safely locked away in my bank account. It’s a game I’ve been playing for over 11 years now (I still love it, by the way) and frankly, no one in the world does it as successfully as I do. I’m not bragging, that’s just the way it is.

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There’s Room On The Top… Come On Up But, I’d like to change that. Ok, maybe I’d like to stay on top, but, let me tell you, there’s TONS of room up here for some more folks. The fact is, 95% of my fellow Forex traders are getting killed… and only 5% of us are making bank. Do you realize that we could have 10 times that number profiting and not even make a dent in the market? Wouldn’t you like to be there? Well, as you know, that is exactly why I’ve put FX Nation Live together. Use the system and tools I’ve put together and you stand a pretty chance at jumping into the top 5%. Ignore it… well, then, you might just end up as one of the chumps. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #13

A Strategy For Losing 60% of The Time… and Winning 100% Dear FX Top Gun, Here’s a crazy idea for you… I want you to lose 60% of the time. And if you do – at least if you do it my way – then you will turn a solid profit EVERY MONTH and be way ahead of 95% of the minnows getting eaten by the sharks in the Forex waters. Let me show you exactly what I mean… A basic, fundamental rule of trading is to minimize your risk and heighten your reward potential. But like so many fundamental rules of the game, this one also seems to be ignored by the amateurs (see Secret #10 for more details on this topic). The funny thing is that the ratio between your risk and reward does not need to be huge. In fact, conventional trade wisdom puts the gap at 1:2 risk/reward. That’s not a lot, but even so, most traders can’t even seem to discipline themselves to live by it. Well, here’s a simple fact for you. If you live by this basic rule, you can lose 60% of the time and still make a killer profit trading Forex.

The Secret Profit Center Behind Losing 60% of the Time Here’s how… If your trade set up does not provide at least a 1:2 risk/reward ratio, it’s not a good trade… no matter what your indicators are showing you… and especially no matter what your “gut instinct” is telling you. What I mean by 1:2 ratio is if you are willing to risk 10 pips on the

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downside, then you better have profit potential of at least 20 pips on the upside. How do you determine this? Use your main indicators! This is why indicators should tell you exactly what price you can enter and exit the market. If you are looking at going short at a resistance pivot on the EUR/USD at 1.3500 and you are willing to risk 10 pips above that resistance point before the trade is no longer valid, then the next pivot point down (support) and/or fib level or any other indicator that you use better give you clear sailing to at least 1.3480. If you trade this way, you can be wrong 6 out of 10 times and still be profitable. Think about it… 6 losers x 10 pips each= -60 pips. 4 winners x 20 pips each = +80 pips for a +20 pip net gain. 40% winners are all you need. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #14

Parental Advice from General Robert E. Lee… It’ll Crank Up Your Profits Dear FX Top Gun, The look in their eyes was intense – a longing hunger to learn the wisdom of a lifetime in one brief encounter. He returned their gaze with equal solemnity and earnestness – a deep desire to not merely mouth a few words, but to truly make a difference. Both were rewarded by the encounter – and you too can reap some lucrative rewards… if you follow the advice. In his later years, it so happened that one day a nice young couple approached the once mighty General Robert E. Lee. In their arms the eager parents carried a precious new baby.

“General Lee, what one lesson should we teach our babe so that he can grow up to be a great man?” “Teach him that he must deny himself!”

The concept is simple, yet remarkably profound. In the end, it is the very thing that radically separates the greatness from mediocrity. In the Forex trading room the concept becomes essential. With the flurry of trades and emotions that can go on… and with charts jumping all over the place… you must deny yourself the exciting glee of doing something… and discipline yourself to stick to the plan… and trade with controlled emotion. You can’t eliminate emotions completely, but you can manage them. The best way to do this is to have a mechanical approach to your trading.

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Here’s an outline of the best way you can do that. You’ll notice that it involves a number of the secrets I’ve been sharing. Specifically, Secret #5, #9, #10 and #11. If you don’t remember those rules… or have never read them… get them now, before reading on. Ok, got it? Awesome! Then let me give you full thrust of this ESSENTIAL secret… Once you have a profitable system based on certain indicators, enter the market on that basis. In other words, IF A, B AND C occur, I enter. The same thing should occur to exit the market. IF A, B OR C occur, I exit. No other explanation or rationale is acceptable. Let me repeat that so that you don’t miss it… No other explanation or rationale is acceptable. Once you place a trade, it can only do one of 2 things:

1. Exits at your profit target proving you right

OR

2. Exits at your stop loss proving you wrong.

Either one is a successful trade. Now, let me give you some specifics on what A, B, C and D are, so you can see exactly what I base my strategies on… In my trading, I use pivot points and fib levels to enter at a specific price. I also use those same indicators to exit. So, if I see a resistance pivot point on the EUR/USD at 1.3500 (which is my A indicator) and my other indicators are in line with a short (B - fib level), (C - top of the Keltner channel), (D - little to no buy pressure/divergence, etc) and I see a support pivot down at 1.3450, then I know I can place the following trade: Short @ 1.3500, Profit target @ 1.3450, Stop Loss @ 1.3510

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I can place the entire trade including exits at the same time upon entry and then… I simply step back and let the trade go. Yup, I leave it alone. I could go golfing or take a nap if I wanted to. It will either hit my target and make me money… or prove me wrong and take me out with a small loss.

The Strategy Is The Power Behind My Profits It is my strategy that allows me to be emotionally detached and consistently profitable. The way I set up my trades makes it so that I only have to be right 40% of the time to win! (See Secret #13 for details on this play) But, considering I am playing great odds with strong resistance and support indicators, I will do much better than winning 40% of the time. Plus, no emotions! This means that my returns are higher and stress levels are lower. Both of these things lead to a much nicer lifestyle where I’ve got plenty of income and the positive attitude to keep momma and kids happy. So, can you see why General Lee’s counsel was so powerful to us Forex traders? Deny yourself the luxury of high emotions and random strategic flip-flops and you’ll enjoy higher returns and lower stress. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #15

Forex Amnesia: A Professional’s Guide to Not Losing Your Mind Or Your Profits Dear FX Top Gun, Today, we’re going to do something a little different. I’m just going to ramble. I’m just going to take you through a handful of scenarios and paint a picture for you about how critical it is for you to meticulously plan your trade… and then forget about it. I call it Forex amnesia. Ready? Then let’s get started…

The Planning Phase The most critical aspect of trading is planning the trade. This means looking at the charts, knowing where support and resistance levels are and targeting potential trades from those levels. Having a clear view of the market before you enter a trade is key. This eliminates emotion and allows you to stay focused even in times of extreme volatility (like during a news release) when everyone else is going crazy. You should be able to see a trade set up long before price gets to a point where you pull the trigger.

The Trigger Phase And once you pull the trigger and enter the market with your pre-determined profit target and stop loss your work is done!

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The Amnesia Phase Now, your job is to totally and completely forget about what you just did. Erase it from your brain. This is a hard concept to grasp because I know you are still staring at the screen as every pip goes up and down…

Now, you’re getting nervous because it’s not going quick enough in your favor… It almost hit your stop loss, maybe you should move that stop up just in case… Whew, it didn’t hit your stop loss and now you’re up a few pips… Now you’re thinking, “I should just close this out at a small profit, I almost got stopped out before and it will never hit my profit target… I’m getting too greedy.”

This is what goes through the heads of LOSING traders. If you start changing the terms of the trade in the middle, you seriously hurt your long-term success. Let the trade complete itself and live with the results, good or bad.

A Look Inside The Trades Of A Pro… And How He Uses Forex Amnesia

I’ll give you an example of how this works with a pro trader that isn’t even average. In fact, he stinks… he’s only right 40% of the time (See Secret #13). Here’s the set up…

10 trades Stop loss at -10 pips Profit target at +20 pips $10,000 initial balance Trading 1 standard lot per trade.

And here are his results…

4 winners x 20 pips x $10 per pip x 1 lot = +$800 6 losers x 10 pips x $10 per pip x 1 lot = -$600

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The net gain from our pro trader (only being correct 40% of the time) with solid money management is +$200. He was able to do that because he did his homework and planned well, pulled the trigger on his 10 trades, and then forgot about them, letting them ride with the market.

An Inside Look At An Amateur… And How He Micromanages Every Pip

Here’s what an amateur might do with those same 10 trades…

Trade 1-He saw it was moving against him and moved the stop to -20, which was also hit

Trade 2-It moved in his favor and he closed it out +10, price eventually hit the original target of +20

Trade 3-It moved so fast, he couldn’t close out early and it hit his target of +20

Trade 4-He was convinced he was right this time and moved the stop twice to -30, which was hit

Trade 5-It moved against him fast and stopped out at -10

Trade 6-It moved against him and he held steady at -10

Trade 7-An agonizing trade, it almost stopped him out, then went in his favor slowly. It made it to +13 and started stalling. Fear set in that is was going back down and he closed out +11

Trade 8-He’s learning, stopped out -10 Trade 9-The best thing that could happen, he had

a meeting and could not watch the computer. When he got back, the trade hit the profit target of +20

Trade 10-He’s really feeling confident, so as price moves near his stop, he moves it again and loses -20

Now, let’s add up the damage. Mark this point very carefully… he had the same winning percentage of 40%. But look at what a difference it makes when you don’t have Forex Amnesia…

4 winners (61 pips total x $10 per pip x 1 lot) = +$610

6 losers (100 pips total x $10 per pip x 1 lot) = -$1000

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The net gain from our amateur trader (still correct 40% of the time) with horrible money management is -$510 Always remember this… There is a fine line between making 2% and losing -5.1%. This fine line is why 95% of individual traders lose. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #16

Losing While You’re Winning Dear FX Top Gun, The old Tortoise was so far behind him that the Hare couldn’t even see him anymore. And that is when he decided to break a cardinal rule of racing: He decided to stop. Finding a very inviting spot of lush grass under a broad oak tree, he settled down for a quick power nap. After all, it would be ages before that slow poke would come close to catching up with him. And even if Tortoise passed him a little, he could easily regain his lead. So, he broke a fundamental rule of racing and took a nap. Oh, it wasn’t the first time he had done this. In fact, because of his speed and agility, he’d been able to enjoy many naps during his racing days. He felt more than confident that today would be just like those other days. In the mean time, the Tortoise, while not very fast, just kept right on following his game plan of “slow and steady wins the race”. One foot in front of the other… stay on the course… keep moving… stick with the plan… stay focused on the finish line. When he came upon that foolish Hare, he barely even glanced over to see him – but he did slightly glance, grinned knowingly and stepped softly as he moved on toward the victor’s circle.

Why Hares ALWAYS Lose In Forex I see Hares almost everyday in Forex trading. In fact, many of them have won the race so many times that they are now “gurus” teaching other how to be Hares as well. Why are they Hares?

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Because they live by the seat of their pants. They regularly break fundamental rules of trading… and, as luck would have it, from time to time they win. Sometimes they even win big. But they NEVER win big long-term. That is why the absolute worst thing that can happen to any Forex trader is to break a fundamental rule… get lucky… and win. Each time you do this and the trade works out in your favor, it gives you a license to do it again. Sooner or later, you are just like every cowboy in the market… making trades with no real rationale or plan. In the end you WILL lose your shorts following this reckless pattern.

Here’s How You Can Win Big With Forex The solution? Plan the trade and trade the plan. PERIOD! At first, this course may not seem too fun… and it may not seem too fast… and it may get a bit boring for you to do the same things again and again, but in the end, it will make you the real winner with profits that will blow your mind. Plan the trade and trade the plan. That’s Secret #16. Live by it. Now, on a side note, would you like to know the one fundamental rule that gets broken the most? I talk in depth about this rule in Secret #10, so I’ll just briefly mention it here… The most common rule that is violated is trading against the trend. Sure, it feels good when you time that trade perfectly, but in the long run, it will kill your trading and your profits. Stick to your rules and the market will reward you. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #17

A Single Word that Will Save Your Keister Against Market Reversals Dear FX Top Gun, A quick market reversal and you could be out 100 pips before you know it. It’s likely – though I hope not – that you know exactly what I’m talking about. Well, there’s a way to avoid that gruesome scenario… and it’s surprisingly simple. In fact, I can sum it up in one word:

Divergence. Let me give you a quick rundown of what I mean. Once you get this down, you’ll have an easy way to protect your backside against reversals, and grab some easy money from the movement.

Here’s how it works… Divergence is the #1 tool I use in determining if prices are going to reverse. Even though it’s simple enough to utilize, the concept can be a bit tricky to understand at first. But believe me, it’s a critical tool in your Forex success. Divergence occurs when you have an indicator showing one direction and price is going the opposite direction. Many traders like to use MACD divergence, but I don’t generally like MACD because it lags price. I use a buy/sell pressure indicator, which shows how strong a move is candle by candle. This works very well because it is

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immediate and accurate. Plus, it’s very powerful when used with other indicators such as pivots and Fibonacci retracement levels because it shows if the move has enough strength to move price past those levels.

Here’s How You Profit Here is a classic example of divergence using the buy/sell pressure indicator… On the 15 minute GBP/USD chart, a new low is hit at 2.0009 and sell pressure is at -45. The next candle hits a new low of 1.9988 but the sell pressure is not able to make a new low as it only gets to -36. So, price has moved 21 pips lower, but sell pressure is 9 points higher. That is a sure sign price is moving back up. Price then moved off that low of 1.9988 to 2.0047 in about an hour, which would have been a gain of 59 pips.

Combine Divergence with Other Indicators for Easy Money

This is very powerful on its own, but when used with other indicators it is incredible. Let’s take a little deeper look… In this example, the GBP/USD has been in an uptrend so we want to trade with the trend by going long at that low. In addition, an S1 pivot point was at 1.9997, so price only moved 9 pips lower than that pivot before it got caught and headed back up. One more interesting note: This chart shows a perfect trade set up from entry to exit. If we draw the Fibonacci level from the previous low to the high, it’ll show us where this may retrace back to. Notice the .382 fib level is right at 2.0046 where price met it within 1 pip.

Here’s What I Would Do… So, if I was looking at this trade set up, I would see the S1 pivot at 1.9997 and I would enter when I saw the sell divergence, considering we are in an uptrend overall. Even if I entered at 1.9997, price would have only gone against me by 9 pips. I would set my profit target at 1.2041 (I always go 5 pips below the fib or pivot level in case it doesn’t reach that far, and to account for the spread).

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So, I would have made 44 pips of profit with a high probability, low risk trade. Easy money! Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #18

The Best of Times… and The Worst of Times Dear FX Top Gun, Ok, the headline is cheesy… I know. But today’s secret is pretty cut and dry so I thought I’d leave out the fluff and just give you the straight story. So, here it is… I’m going to tell you what time of day you should be trading, what day’s you should be trading, and when you should avoid pips like they were the black plague. Are you ready?

Great… here we go… The best times to trade Forex based on activity are as follows:

3 AM EST - 5 AM EST – The most activity occurs between these hours as the London session is open. BONUS HINT: London is to Forex what Wall Street is to stocks.

8:30 AM EST - 11 AM EST – The New York session

opens at 08:30 EST and the London session is still open, so you get high activity during this “crossover” period. BONUS HINT: Also, most US economic reports come out at 08:30 EST.

1 PM EST - 3 PM EST -- Sometimes you will get a

flurry of activity in the early afternoon.

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BONUS HINT: The market can go especially wild on days when the Fed chairman speaks. He usually will go on the air at 2PM EST.

Depending on your schedule, the best times for a

short trading session would be from 3AM EST to 5 AM EST or 8:30 AM EST to 11 AM EST.

If you want to trade for a “full” workday so it

seems like you are actually working, trade from 3AM EST to 11 AM EST. BONUS HINT: Why try and feel like you are working a full day? By using my trading system and secrets, you could potentially crank out massive profits in just a few hours and enjoy life with the rest of your time… that’s what I do!

If you are a late riser or in another time zone,

1 PM EST - 3 PM EST wouldn’t be a bad trading session. BONUS HINT: You could also use this short afternoon window if you didn’t get your daily profit from an earlier session.

Avoid any trading after 3PM EST until 3AM EST.

There isn’t much activity. There you have it… the best times and the worst time to trade Forex. One of the above time frames where the activity is at its highest should work for almost any schedule in any time zone. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #19

Torching Ants With A Magnifying Glass Dear FX Top Gun, When I was a boy, we did some fairly brain-dead things. For example, a favorite pastime was wreaking havoc on ant colonies. All you need is a fairly decent magnifying glass and a bright, sunny day… and flash! instant ant colony mayhem! But the joys of watching poor little ants ignite under that magnifying glass weren’t so funny when your buddy turned the glass onto the back of your neck for a few seconds. The searing pain was intense and the burn could be ugly. On the other hand, a boy scout, equipped with a handy magnifying glass could whip up a fire faster than any of the flint and steel or bow and drill teams… on a sunny day that is. In Forex, the nature of the market gives you a very powerful magnifying glass. But just like the one we used as kids, you’ve got to use it right to make it useful and entertaining. Using it the wrong way can be VERY, VERY painful. What is this powerful magnifying glass?

Leverage Unfortunately, most amateur traders don’t fully understand leverage and what it can do on the downside… until they blow out their account. It is important that you remember that anytime you are using leverage, the possibility of gaining AND losing are magnified.

Let Me Give You A Quick Lesson On The Power Of Leverage…

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The standard leverage used in Forex is 1% or 100:1, although it can be as high as 400:1 (I don’t recommend using 400:1 leverage). What this means is that to control 1 standard lot ($100,000) a deposit of only $1,000 (1% of $100,000) is required. In Forex, a pip is the minimum move and is worth $10 per standard lot for the EUR/USD, which we will use for illustration purposes. Let’s say you open an account with $10,000 and you go long 1 standard lot on the EUR/USD (which is $100,000 or 10 times the amount you have on deposit). The trade goes in your favor by 100 pips and you gain 100 x $10 = $1,000 or a 10% gain. 10% is a great return and made possible by our magnifying glass. If you were not using leverage and had to deposit the full amount of the standard lot or $100,000, the gain would be only 1% ($1000/$100,000).

Now, Here’s The Downside… But, obviously if you lost 100 pips, the total loss would be 10% as well. Make sure you understand how much you can lose on the downside and plan your money management accordingly. In this example, if 10% per trade was too much risk for you, then lower the lot size or lower the amount of pips you are willing to risk. If you put a stop loss at 50 pips, your loss would be 50 x $10 = $500 or 5% of your $10,000 account.

A Strategic Application Per my money management strategy (see Secret #13) of finding trades with at least a 2:1 reward/risk ratio, that means your trade would need a potential profit target of 100 pips (double the 50 you’re risking). If that does not look feasible based on your analysis, lower the amount of pips you are willing to risk by dividing it by the potential profit target. So, instead of a 100-pip profit, you analyze that you could get 50 pips of profit. Then your stop loss needs to be at 25 pips, which would be risking 25 x $10 = $250 or 2.5% of

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your $10,000 account to profit 50 x $10 = $500 or 5% of your $10,000 account. In the end, the power of the magnifying glass can be very useful to you. It can turn ho-hum profits into great profits if it is used in connection with the right strategy. However, if you use it incorrectly or fail to recognize its power, you might just end up like that pile of ants… toast. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #20

The Swing Made Babe Great… It Could Do The Same For You Dear FX Top Gun, “I swing as hard as I can, and I try to swing right through the ball.... I swing big, with everything I've got.” That’s how Babe Ruth felt about baseball. He was there to win… period. He didn’t go after the ball half-hearted. He gave his all… every swing… every pitch… every play. No wonder he was such an amazing athlete. And it’s no wonder that more than 60 years after his death, Babe continues to be a legend and a hero… not just to baseball fans, but to people everywhere. Yup… it was the power and passion behind his swing that made him great. Today, you are reading this because you want to be one of the greats in the Forex world. I know the feeling… I always had this burning passion to be a Forex top gun… a real superstar.

At The Risk Of Sounding Like I’m Blowing My Own Horn…

Today, I enjoy an almost legendary track record of wins and high returns – so much so that I’m known as the top Forex money manager in the world. I’ll tell you this... a lot of my success has to do with the fact that I learned how to handle the swing. And that is what Secret #20 is all about… how to handle the swing in Forex so that you can win big and win consistently.

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First, let’s talk about the Forex swing… A swing is a previous high or low where the market reverses. Pretty simple isn’t it? Just about as simple as swinging a bat. It’s using that swing to become a superstar that is difficult – right? So, now let’s talk about putting the swing to use so that you can see your bank account split wide open with FX homerun after FX homerun… The key to using the swing is knowing how to draw trend lines. Draw trend lines that connect swing highs and lows. These trend lines can be drawn horizontally or diagonally.

Using Horizontal Trend Lines When we draw them horizontally, we are looking back in time to see where price was met with heavy resistance or support and we can connect these two points. Normally, a horizontal line is a strong support or resistance level and price should not temporarily move above or below that level. We get the terms “double tops (bottoms)” and “triple tops (bottoms)” from horizontal trend lines. These terms signify that price has moved to that same level two or three times and bounced off.

Using Diagonal Trend Lines If we are drawing diagonal trend lines, we are connecting the swing lows in a market that is rising and the swing highs in a market that is falling. If we can connect at least three points on the line, it is a verified trend. So, if the market is rising and we can draw a diagonal line touching at least three swing low points where price has pulled back, we can use that line to determine an exact point in the future where, if price comes down, it will act as support. It is very important to remember, that, in general, diagonal trend lines are not as strong as horizontal trend

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lines – but still give you some great insights into current trends and how to deal with them.

Energizing Trend Lines For Major Profits When used in combination with other support and resistance indicators such as pivot points and Fibonacci retracement levels, trend lines can be very powerful. When these other indicators all converge at the same price levels, it is double and triple confirmation of the support and resistance. In fact, the chances of the price going through those levels are very slim, especially on the first approach. Of course, be careful if price does break through because the trend could be changing and it may signal a nice breakout or breakdown momentum trade the other way.

Get The Right History How far should you look back to determine trend lines? A good rule of thumb is:

When working with a daily chart, go back 1 Year When working with a 60 minute chart, go back 10-

14 trading days Now that you know the proper swing technique, it is time to get out on the field and start hitting homeruns. You may never be the Babe Ruth of Forex trading, but I’m willing to bet that you stand a good chance at being among the top 5% of Forex traders that regularly profit. And who knows, maybe one day soon, I’ll see you in the FX Hall of Fame. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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FOREX SECRET #21

A Final Lesson From Granny: “Don’t Put All Your Eggs In One Basket” Dear FX Top Gun, In Secret #8 I told you about an old bit of wisdom from Granny that you should not be following. Today, I’ll talk with you about one that you should follow. “Don’t put all your eggs in one basket, boy… if the basket turns over, you’ll be left with nothin’ but raw scrambled eggs filled with chunky shells.” The power behind Forex trading is that you can manage your trades in countless different ways. For example, you can simultaneously set up trades with multiple lots… or you can take one lot and split it up into a number of different trades. Either way, you have the freedom to put your eggs in different baskets. So, if you lose on basket “A”, you might win big on basket “B”… or you may just come up even with the pickings from basket “C”. Let’s talk specifically about how you can do this and the ways that you can set up your trades to maximize your odds of winning…

Forex “Profit Eggs” and Where To Put Them Use support and resistance levels such as Fibonacci retracement levels, pivot points and trend lines to determine multiple profit targets. Once you determine those potential profit targets, set your exits at each of these levels.

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For example, if the EUR/USD hits a support level at 1.3500 and you are looking to go long, find 2 to 3 potential profit targets above that entry price.

If there is a fib level at 1.3550, then that’s potential profit target #1.

If a resistance pivot point is at 1.3600, that is profit target #2

If there is a horizontal trend line representing a possible double top at 1.3700, that’s profit target #3.

Now, here’s how you could handle those trades so that your profit eggs are in multiple baskets…

If you were long on 3 lots, exit 1 lot at each of these profit targets.

If you are only long 1 lot, then exit 1/3 of a lot at each profit point.

This money management strategy allows you to take more profit out of the market without any further risk. Once your first profit target is hit, move your stop to break even for the rest of the position. This assures you of a small profit while having a risk free shot at the higher profit levels.

A Personal Example Let me wrap up by showing you just exactly how I use this strategy… If I am trading a swing style (see Secret #20 for the profit power behind the “swing”) where I’m looking for longs on a dip in an overall up trend, I will draw a Fibonacci retracement from the latest high to that swing low and use the .382, .500 and .618 fib levels as my three profit targets. See how easy that is! You keep those profit eggs in multiple baskets and soon they’ll hatch into a grand lifestyle, full of profits and opportunity. Here’s to Your FX Success, DC Bonta, The world’s number one FX money manager

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