Forex Autoresponders

{!firstname_fix}, walk that trend line like a pro

Hi {!firstname_fix},

You took a big step today. The Forex market is a swirling mass of uncertainty. To claw your way out of it with your investment intact (and a little extra to boot), you need information.

In the next few emails, I’m going to lay out some of the most fundamentally important aspects of smart, creative trading and hopefully show you how big of a difference there is between your typical Forex newbie and the Wall Street gurus that clean up in any market conditions.

And to get started, I want to dive right in with trend line trading.

What makes trend line trading so incredibly effective? Think about it for a second. This is where the bears and bulls are duking it out; carving out their personal space and pulling in their profits.

So, by recognizing the trend lines and trading on them (and gauging those upcoming swing lows and highs), you can play the market like a fiddle.

Drawing the Trend Line

Step one is drawing your trend line. If your trend lines tend to break, sending the market crashing down on you, it’s probably because you didn’t draw it right in the first place. Let’s fix that.

Let’s take a look at the common way to draw a trend line – you track down swing lows and swing highs and choose two points to draw your line. But there are a LOT of swings on a chart – sometimes dozens per hour. So, we need to pinpoint the RIGHT swings to draw our lines.

First up, what is a good swing high or low? It needs to have two candles on the left or right of it higher or lower than it. That means it’s a peak or valley on the chart – marking the lowest point during a particular swing.

Now, when you recognize these swings, you need to determine the best way to draw your line. This is tricky because if you draw your line too high, you risk a breach – rendering it useless. However, too low and your margins get razor thin.

A good trend line will cross as many swing lows or highs as possible. A strong trend line will have no breaches. The market shouldn’t be able to break your line and as a result, you can maintain your trades throughout the period in which you’ve set your line.

Beyond the Simple Trend Line

There are a lot of theories behind trending. I’ve given you the basics to get started, but keep in mind that there is always a risk you’ll get it wrong. Nothing is exact when trend line trading. The key to being successful is creating a system in which you minimize how often you get it wrong. Do that and you’ll be set.

Learn more about trend lines today!


Till Next Time,


P.S. Don’t forget the easiest way to learn your trend lines is to watch a pro in action. Forex Inner Secrets provides the Internet’s best live demonstration of how to draw trend lines and maximize pips day after day. Don’t miss your opportunity to learn from the best.

{!firstname_fix}, how much can you really afford to invest

Hi {!firstname_fix},

I want to start today’s email off with a little exercise. Bear with me for just a few moments and you will quickly see the importance of doing this.

First, I want you to think about how much money you have, total, right now. Add up the cash in your wallet, estimate all your account balances, trusts, etc. Now think: how much of that would you be willing to sacrifice right now, to get nothing in return? Take a second and think carefully.

Obviously, your answer is zero, right? This isn’t money you would be donating to charity or gifting to a friend, it would just vanish—and no one wants that. Now, try the opposite: how much of that money would you invest for a guaranteed return of 100%?

Just about everyone would say all of it. After all, who doesn’t want to double their money in an instant?

These scenarios are simple and extreme, but they represent an extremely important part of forex trading. That is, how much can you afford to invest? What percent of your capital can you afford to put into an individual trade, knowing that you may take a loss?

Let’s answer this question, which is a critical step on the path to turning consistent profit.

Placing Your Stop Loss

Before making any trade, determine your stop loss for that trade. There are a few ways to do this, depending on your trading strategy. As a rule of thumb, your stop loss should be within 5 to 10 pips of the nearest support or resistance, depending whether you are seeking short or long position.

Since we have already explored trend lines in this series, let’s look at go through an example using a trend line break trading strategy.

When you see a break in a trend line and decide to enter a trade, you then want to mark your stop loss. This should be in a spot 5 to 10 pips from the break in the trend line. Whether your stop loss is below or above that break depends on whether you are going long or short.

It Depends

This is one example based on one rule of thumb, but keep in mind there is no one set stop loss for everyone. The 5 to 10 pips concept above is one plan, but some experts recommend a stop loss as high as 20 pips.

Likewise, there are experts who will say you should never put more than 1.5% of your capital into a single trade, whereas others will say that number is more like 2-3%.

Stop loss varies for each trader, depending on strategy, capital and risk tolerance. The important thing is that once you decide on a stop loss and a maximum amount of capital per trade that you stick to it.

Discipline is a key component of sound, profitable investing. Going outside your maximum investment or adjusting your stop loss on the fly can leave you with a deficit to make up for, cutting further and further into your profits.

Get started on finding your stop loss now!


Remember: find a strategy that works for you, stick to it, and get ready to watch the profits build.

Till Next Time,


{!firstname_fix}, top down analysis gets your ducks in a row BEFORE you spend 

Hi {!firstname_fix},

As you surely know, an important step in making any critical decision, especially when investing, is careful analysis.

Would you buy a car without exploring different models and shopping around? Would you invest a huge chunk of your hard earned money in the first house you laid eyes on?

Of course you wouldn’t, and you shouldn’t do be hasty when trading, either. So in this issue, I’m going to talk about top down analysis.

Top down analysis is a reasonably simple, yet extremely important routine for anyone who hopes to be a consistently successful trader. Remember: the key to profitability is to garner consistent returns while minimizing losses. So, separating the potentially good trades from the bad is the first step to success.

Doing Your Homework

Strong chart analysis, using the top down method, is a relatively simple process. It takes a little bit of time, but it is time well spent in terms of potential gains and prevention of losses.

Start by pulling out the chart and looking for the trend. For a refresher on checking trends and drawing trend lines, look back at the previous issue covering this subject. For this first step, it is best to start with the chart with the broadest time frame that you have.

Next, seek out a pattern of candles that indicate a trend reversal, such as a hammer, inverted hammer, or spinning top. There are some other patterns that suggest a reversal, but these are some of the more reliable and easily identifiable ones.

After identifying the reversal, draw support and resistance lines. This will help you identify your stop loss, which we discussed in a previous issue.

Hold on, you’re not done quite yet. After going through one chart, repeat the process again for a narrower time frame. This helps lend credibility to your analysis, to confirm that what you are seeing is consistent over time.

Decision Time

When choosing whether to make a particular trade based on your top down analysis, you want to look at the trends and reversals across all the charts you have just analyzed, but weight the broader time frames more highly. These are more likely to be true trends rather than blips.

Ideally, you want to see prices moving in the same direction across charts. Read more about spotting trends like a pro!


Finally, don’t be afraid to pass on a trade you aren’t sure about. There are plenty of opportunities out there to make trades, and it’s much better for your capital to not make a trade at all than to make a bad trade.

Till Next Time,


{!firstname_fix}, can you spot a real breakout?

Hi {!firstname_fix},

If you recall a number of issues ago, we talked about trend lines and how to draw them properly to avoid breaching.

Now, what if I were to backpedal a bit and tell you that sometimes a break in a trend line is not a bad thing? In fact, many traders turn strong profits by watching for, analyzing and capitalizing on these breaches in trend lines.

You see, that break you see in a trend line or trend wall may be indicating a breakout, which represents an opportunity to swing a trade for your benefit.

Of course, a broken trend line is not always indicative of a breakout, and does not necessarily mean you should fall over yourself rushing to dive into the market. So, how do you know when a breakout is for real and a sensible trade is in the offing?

The answer – just like when we discussed top down analysis – is all about doing some homework.

Bands, Lines and Breaks

Looking for breakouts starts with Bollinger Bands. Recall that Bollinger Bands are drawn two (usually) standard deviations from the simple moving average on a chart. They form strong resistance and support lines.

So, to start out, set up Bollinger Bands on your chart. Notice how they are tighter during stable periods of consolidation and wider when the market is more volatile. This is what makes them helpful in identifying forex breakouts.

Next, draw your trend line. Refer back to the first issue of this newsletter for a refresher on drawing trend lines correctly.

The idea here is that the Bollinger Bands and the trend line serve as signals to you of when a breakout is happening. When your Bollinger Bands bulge suddenly outward after being narrow for a while, you know the market has become more volatile.

When this bulge occurs in concert with a breach of your trend line, the time is ripe for you to make your trade. Learn how to spot the breakout now!


Of course, you want the direction of your trade to correspond with that of the breakout. When the breakout reaches or approaches a support line, you can open by buying. Conversely, when it is in the direction of a resistance, be ready to sell to open.

Be Patient

Keep in mind that a good opportunity to make a profitable trade does NOT equate to a guarantee of profit. There’s no such thing as a free lunch, and there’s no such thing as a sure forex trade. You may need to do this kind of breakout trade several times in order to turn a tidy profit.

However, with prudent, honest analysis and disciplined trade management, breakout trading can go a long way toward making you money on the forex market.

Till Next Time,


{!firstname_fix}, breaking even is a sweet sweet thing 

Hi {!firstname_fix},

When you hear the term “break even,” what comes to mind?

It’s probably not riches and glamour. I would be willing to be that you acknowledge that term as being mundane at best…and a long, slow path straight to the poor house at worst.

It doesn’t have to be that way. What if I told you that not only can breaking even be better than boring, it can even be profitable?

In fact, in the world of forex trading, you often want to make breaking even your goal, as it can be a steadily profitable path toward vast returns. That may seem impossible at first blush, but I promise the math works out. Let’s take a look at how breaking even can be your key to success.

Risk:Reward Ratios

The trick – if you want to call it that – to turning a profit while breaking even lies in risk:reward ratios, which is essentially the ratio of your closing point to your stop loss. By keeping your risk:reward ratio at 2:1 or 3:1, you can see steady profit, even if you lose on as many trades as you win.

How do you maintain such a ratio? Let’s look at one example.

As we discussed in an earlier issue, one of the first steps in successful investing is determining your stop loss. Let’s say for the purposes of this example that yours is 10 pips, and that you buy into a particular trade. That means that if the price drops 10 pips after your purchase, you will cut bait and take the small loss to avoid any larger ones.

Correspondingly, you want to determine at what profit point you will exit. For a 3:1 risk:reward ratio, that would be 30 pips, so let’s go with that.

You then make 20 trades, adhering tightly to these guidelines. Of the twenty, you apparently break even, losing 10 and winning 10. But did you really break even?

Look again. You profited on 10 trades at 30 pips each, for earnings of 300 pips. You also hit your stop loss on 10 trades, losing 10 pips each, for a total loss of 100 pips. So, your total profit is 200 pips. You won by breaking even!

While this example demonstrates entering a trade with a purchase, the same principles apply for the reverse. The difference if you enter a trade by selling is that your stop loss will be toward the resistance line, rather than the support line.


As we have gone over before, an important trait of the successful is discipline. In order for this practice to work, you must be willing to close when you hit your stop loss, and not hang on in hopes that the price will turn around.

Likewise, you should not watch the price hit your profit point and then hold on in hopes it will keep going. It may reverse its course and then you’re stuck. Instead, stick to your guns and close at the points you already decided on.

We will discuss the concept of disciplined investing and why luck is not a factor in a future issue. In the mean time, read up some more on the rewards of breaking even.


Till Next Time,


Luck has NOTHING to do with it, {!firstname_fix}.

Hi {!firstname_fix},

Over the course of these newsletters, you have seen me mention the importance of discipline a number of times. For the sake of clarity, let me reiterate:

Discipline is vital to successful investing. The ability to make sound decisions and stick to a plan is what separates many successful investors from many broke former investors.

Now, I know what you’re thinking. “What about people who make one big trade and strike it rich? How come you’re telling me I have to work hard on a disciplined investing strategy when they didn’t?”

Yes, ideally we could all make that perfect trade, hit the jackpot, and live out the rest of our days on a yacht. Unfortunately, forex trading doesn’t really work like that. Those rare “BINGO!” trades are one-in-a-million (or more!) long shots. Anyone who manages to swing a trade like that is lucky, pure and simple.

However, as you will soon see, luck has no place in a sound investment strategy.

But cheer up! That’s good news! Without luck, you are in charge of your own investment future. You get to call the shots, and then you get to reap the benefits.

When to Sell

Perhaps no concept more perfectly embodies discipline than that of stop loss—the price at which you decide to close a trade, even though it means losing some money.

The idea of a stop loss is simple in theory. You decide going into a trade that you are only willing to lose so much on a particular trade, so if the price changes by that amount in the wrong direction for your trade, you close in order to minimize losses.

In execution, however, it can get tricky. Many people adjust their stop loss on the fly, clinging to the idea that the price can still turn around and turn into a profitable trade. While this can happen, another possibility is that the price continues on its path and all of a sudden you’ve lost more than your capital can bear.

Likewise, a disciplined investor will also enter every trade with a set profit point in mind. That is, the price at which he will close and pocket the returns, rather than continuing to stay in the trade.

The most common problem with this is that people will hold on too long, thinking that the price can keep going and they can make even more.

Trust Your Plan

The best way to maintain disciplined trading practices is to trust your plan. Get started making your plan with these valuable lessons.


Remember: you did sound analysis, you identified the supports and resistances, and you determined what your optimal stop loss and profit points would be. You did that all objectively. Don’t let the heat of the moment sway your well-laid plan.

This may mean you have to watch some prices turn around or become more profitable right after you close. That’s OK. Rather than curse your misfortune at missing out on profits, pat yourself on the back for sticking to your guns.

That is what will make you profitable over the long run – not blind luck.

Till Next Time,


Simple Scalping isn’t always so simple

Hi {!firstname_fix},

So far in this newsletter series, we have focused on strategies and methods to maximize profits and minimize losses per trade. This means making a relatively low number of trades and doing things like selling at points that set off losses by a wide margin. This means a high risk:reward ratio.

This is one way to turn a profit. Think about the retail sector. A store makes only a few sales per day, but does so at a sizable markup, so their profit is quite handsome.

Likewise, the local discount store sells inexpensive items with small profit margins, but makes many sales a day, making them similarly profitable.

Take this second strategy from retail and apply it to forex trading, and you have scalping.

You see, scalpers seek to profit by making many trades involving only small price changes, with the idea being that these small movements are easier to detect and capitalize on.

Simple, right? Well, yes and no. On paper, it is quite simple and it can be an effective trading strategy. However, there are some particular risks involved and some signs to be on the lookout for in order to be as effective as possible.

Scalper Beware

When looking for scalping opportunities, you are looking for prices that are likely to change about 15 to 20 pips from the time you open until you close. Since this is usually only slightly different from or even equal to your stop loss, you are going to have a low risk:reward ratio, often approaching 1:1.

See the danger yet?

With most forex trading strategies, you are aiming for a risk:reward ratio of 3:1. For example, you sell at a profit of 60 pips and your stop loss is 20 pips. So, as long as you stick to your system, “breaking even” – having the same number of wins as losses – is actually profitable.

(Look back to the previous issue on risk:reward ratios to see this topic covered in more depth.)

But with the low ratio involved in scalping, you are not afforded that same protection. You will have to win significantly more often than you lose in order to be profitable.

When to Scalp

Since you need to have a high win probability, you need to find points of entry that are likely to result in success a majority of the time. But how do you do that?

One effective way to spot these trades is to identify the key support and resistance levels on your chart. There are number of ways to spot these levels, with the simplest being to look for previous highs and lows. Learn how to spot scalping opportunities today!


Once you’ve entered the market, be prepared to close the trade quickly when the price changes even slightly. You are aiming to potentially make up to a few hundred trades in a day with this strategy. Quick trades and compounding small returns are key.

Till Next Time,


Simple Sell Signals that will make you rich

Hi {!firstname_fix},

Have you ever gone to see a movie you thought would be really great, only to be disappointed at the ending? Those few brief moments can immediately negate everything you saw before it.

“I really liked the movie, but then the ending ruined it.”

How many times have you uttered those words, or something like them?

Indeed, no one likes a bad ending. That is especially true with forex trading, because you have money on the line.

Dong your research before making a trade is a great first step. Knowing when to get in and doing it is another one. But knowing when to get out may be the most important. A “bad ending” to a trade can mean disaster for your account balance.

Let’s look at a few simple signals and strategies that can keep your profits high and losses low, so you can keep building wealth.

Set Your Profit Point, Part 1: Resistance

One simple way to know when to sell is to simply set your profit point at the major resistance level. When doing your top down analysis prior to trading, you will have identified the major resistance for a particular chart. From there, just buy low enough that the resistance represents a tidy profit, and hold on until the price gets back up there.

Set Your Profit Point, Part 2: Projection

You can also find your target exit point by projecting the price. To do this, draw a strong trend line (refer back to the first issue on this topic). By following that trend line over time, you can project how far the price is likely to go in either direction and exit accordingly.

Set Your Profit Point, Part 3: Keep the Ratio

Maybe the simplest way to decide when to sell is to simply stick to your risk:reward ratio. If you decide your profit point is 60 pips because that will give you a 3:1 ratio when compared to your stop loss, then stand by it. When the price rises 60 pips, sell and grab your profit.

This can be used in concert with some of the other strategies in order to predict what an appropriate profit point is for a particular trade. Check out how to combine selling strategies to make a bundle!


Know When to Fold ‘Em: The Stop Loss

The last strategy for knowing when to sell is not so much about making money, but avoiding losing too much. In the long run, these equate to the same thing. We have discussed the stop loss before, but I want to re-emphasize it here.

If you make a trade, and the price drops, don’t be a hero. Cut your losses, and move onto another trade. It will go a long way toward making you more profitable in the future.

There are plenty of forex trading strategies, and plenty of sell signals that go along with them. Most of them are effective. These are just some of the simpler examples, but find one that works for you and stick to it.

Your wallet will be glad you did.

Till Next Time,


{!firstname_fix}, do you want to make a living from Forex? ( a list of factors that go into determining if you can make a real living off of forex investing)

Hi {!firstname_fix},

We have come a long way in this series of newsletters. We have discussed concepts, strategies, analysis and sound investing practices. I hope you have learned a lot and feel better equipped as you enter into the fray of forex trading.

Now, of course, is the question you have been waiting for: can you make a living at forex trading?

As it turns out, that is a highly personal question. Only you can really know the answer. Yes, it is possible, and many people do it. But whether it is right for you is trickier.

In this issue, I will go over some factors o consider when deciding whether forex trading is a reasonable option as a career. Then, you can decide on your own.


First and foremost, you need to have the capital necessary to start a realistic account. A few hundred dollars won’t cut it if you want to be a serious trader. You need enough in your account that you can make trades without putting out more than 3% of your capital on a single trade.

You also need to be able to weather some losses without going broke. Trades will even out over time if you are prudent, but in the short term you can sustain quite a few successive losses.


As I have mentioned before, forex trading is NOT a get rich quick scheme. It requires an investment of time as well as money. In fact, the time may be even more important than the money.

Successful investors who make a living at forex trading have the patience to wait for the right price to come to them, and then capitalize on the opportunity. You can’t rush the market.


Forex trading is also not a quick and easy solution to your financial problems. It takes effort and work, like any other job. You must be willing to put in the time and energy required to make your strategy work.


You knew this one was coming, eventually, right?

As we have gone over plenty of times, probably the most important trait of a successful investor is discipline. The ability to outline a plan and stick to it consistently, based on logic rather than emotion, is an invaluable characteristic for the forex trader.

There are other factors that go into being a full-time forex trader. We could get into risk tolerance, for example. However, these four are probably the most vital.

Forex trading is not gambling. There is no luck involved. Success depends on being patient, working hard, staying disciplined, and having the capital to take the necessary risks.

If you have all those things, you are off to a good start. To find out if you have what it takes to trade like a pro, check out the lessons today!


Till Next Time,



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