Forex Intraday Trading by George Bryer (Learn to make a 1000 pips+ a month).pdf

A Comprehensive FOREX Survival Guide for Beginners and Profit Fixing Strategy for

Experienced Traders by George Bryer

Discover a new way to trade with a reliable strategy “Candle-Close” and “Three Dots”

Preface

George Bryer is currently a leading trader of the funds managing company

FXGEO.NET( www.fxgeo.net ). He is a young proprietary trader from Sydney, Australia, with

more than 10 years of experience in trading currencies at the foreign exchange market. His

achievements are impressive and a consistent record of risk management is praiseworthy. He

boasts an average rate of 75-80% in successful trades with a total of 500-600 pips on average a

month depending on the market volatility. In this tutorial he shares his vision of the market and

shares some of the techniques which have been relied on many times by him personally, the very

techniques that he uses from day to day in his intraday trading.

Here are some of the past results of trades undertaken by George Bryer

Chapter I

The world of new opportunities welcomes hordes of new tyro traders flocking to join an

exciting journey of trading the foreign exchange market. Although not many realize that the rules

of this business are harsh and cruel at times, there is still an unceasing supply of funds spilt by

novice traders feeding margin calls of various brokers. There are questions demanding answers

which many beginning traders ask themselves: “How am I to survive in the next leap of

volatility?”, “Is it really possible to consistently make profits by setting stop-losses, which seem to

be always targeted by the market, as if a hungry predator hunts its prey without remorse or

compassion?”. Not to sound trivial and clichéd, I would not feel excited for the reader to hear

again, “There must be discipline, patience, decisiveness, confidence, and diligence to be patient

and disciplined and this rule can be reiterated a great many times.” However, will this really

enable you with a way to keep making decent profits? The answer will be ambiguous; it will be

both yes and no. You need a strategy that you trust, the strategy which works in rain and in

snow, in deserts and in the mountains, in one word, it has to be consistently reliable with a

minimum drawdown and at least 2:1 profit-loss ratio.

I am not going to promise to make you a millionaire in three years with asking you to work 5

hours a week without serious strain. I guess you understand this, however, we need to be clear

on this before we launch the charts and start talking about the markets. Trading forex is a

demanding yet a highly-rewarding job! It is like building a good relationship with your friends and

family, it pays off in the end.

With the intraday trading being greatly popular in the last decade with the advance of internet

brokers providing services of trading currencies, the peculiar feature is that positions can be

taken and forsaken in a matter of seconds. The time frame can be used to its maximum efficacy

and there is no need to be locked in a position for days or weeks. Our goal is to trade major

currency pairs throughout the day with a primal thought in mind to liquidate most of our

exposure before the end of the session. I don’t mean to be boring, nevertheless we still have to

apply the previously mentioned rule of discipline and patience, which is virtually indispensable in

trading. What you need to be able to do is to focus, as the development of the events in intraday

trading can often be compared with flying a supersonic jet, things may happen and do happen

extremely quickly at times reallocating billions of dollars from one pocket into another.

If you chose to trade intraday, it is not a great way to survive with you holding firm

fundamental views of a long-term nature on the currency since it takes a relatively long period of

time for those changes to occur. It means that an intraday trader must rely on technical factors

surrounding himself with charts with indicators on a greatly reduced time frame or trade the

news releases making lightning-fast decisions depending on the deviation of the release

numbers. If bad news fails to depress the market, it means that it is highly unlikely that it will

plunge, and you have to cover short positions and you should be looking for an opportunity to go

long or buy whether on dips or whenever a visible resistance gives way. The news itself is not

that important for a successful trade but the market reaction to the announcement is.

As mentioned earlier, many intraday market participants seem to close their positions

overnight, i.e. before the end of the session, and there are pros and cons to this approach. Often

it is a good idea not to be exposed overnight as there is always a risk of things changing before

the next day open. This problem is more relevant to commodity markets with late and pre-

trading sessions which has distinct gaps and holes on the charts with the start of each new

session, forex is more cohesive in this respect as it is traded 24/5 in contradistinction to the stock

markets. Even though if you were to single out only American sessions you would see enormous

gaps at times as well if Asian and European sessions are not taken into account.

Figure I

In the Image above you can see that American session is highlighted in light green, and if you

were to trade the American session by closing your position overnight the chart would look quite

differently.

Figure II

So what this basically means is that without leaving your position overnight, you have to

monitor and analyze the markets again before entering a new position. This process might affect

your ability to profit from the Asian and European sessions with lots of good setups appearing

during those times. Oftentimes, you are forced to enter new positions even though it is not a

perfect timing in the market to do so, but due to the time constraints of trading one particular

session, you are induced into making wrong decisions.

In case you carry positions overnight, you might benefit from the development of larger trends

as markets as a rule continue the following day in the direction of the previous day’s close. In our

instance, larger trends are classified as those which last for a day or two as we zero in on trading

intraday.

What is of paramount importance to us is the ability to analyze a combination of all possibly

useful time frames to be successfully able to take positions. The time frames would include

monthly charts, which help you better understand the overall trend of the currency, weekly,

daily, 4-hour, 1-hour, 15-min, 5-min, and 1-min.

Intraday charts can be broken down into many different time frames, the smallest price change

is called a tick, and quite often it is not a very valuable tool for an intraday trader. Therefore,

using a 5-min chart instead bears more fruits and gives a clearer picture of the trend. Looking at

a 5-min candle as you would with any other candle, you can see a candle’s opening price, high,

low and close at a 5-min interval. You could get the same information looking at a daily candle,

but it comprises data of the whole trading session of that particular day. I found in my

experience that 15-min, 30-min and 1-hour charts are particularly useful. The key here is to

experiment with different time frames whilst finding which time frame suits you best. It will be

discussed later but I will sow the notion right now, we will be trying to enter trades basing on the

close of 4-hour candles, seeking the best entry on a 5 min chart, once the trading set-up has

been confirmed. You should always keep in mind that no matter what intraday time frame you

chose to use, you have to be mindful of a longer-term trend as this will give you some

perspective.

Figure III

Having a trading strategy means that you can base your decisions confidently whilst working

with markets and it can be dubbed a “driving force” for you when taking positions. In order to

either buy or sell, you should have a justification prior to the action which should be different

from just a gut feeling that the price is going to rise or fall. “Having a hunch” about the next

direction of the market does not always portend a successful outcome of the trade, as markets

are counter-intuitive in their nature. This is the reason why not everyone is suitable for the job,

as well as not everyone can be a physicist, many can be trained to become one, as well as many

can become traders after being properly trained, however, there are traders with natural flair

with 7 years of high school education who made millions of dollars without graduating from

Harvard or working at Wall Street.

The strategy that you feel comfortable using is the key, it could be as simple as buying higher

highs or selling lower lows, or it could be a more complex integration of watching cross-overs of

moving averages and seeking confirmation from oscillators’ readings of overbought/oversold

levels with divergences and so forth. The important factor here is that you must be able to utilize

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