21FX Secrets Complete

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21 Forex Secrets Revealing Forbidden FX Profit Strategies
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INTRODUCTION
Welcome! The strategies you are about to review have been a massive
part of DC Bontas 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 worlds 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 GRANNYS 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 ITLL CRANK UP YOUR
PROFITS----------------------------------------------------------------------------------------------------------------32
FOREX AMNESIA:---------------------------------------------------------------------------------------------------35
LOSING WHILE YOURE 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: DONT PUT ALL YOUR EGGS IN ONE BASKET ------52

- 1 -
FOREX SECRET #1

The Three Perfect Trades
Easy, Fast, Potentially Huge Reward to Risk
Every Time.

Dear FX Top Gun,

Ive 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
theyre 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, Id
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. Its 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. Theyve 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 youre not trading everyday, what do you do? I
suggest that you get started by making only three trades a
month.

Thats right, three trades.
- 2 -
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 (youll 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 theyre released:

1. Non-Farm Payrolls/Employment Report - This is the
most influential news release of the month. Its
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 13
th
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, youll need to know exactly
where the banks are just before and just after the reports.

Ive 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.
- 3 -

Second, Ive created a report that gives you the full
details on setting up the trade. Like the charting tools
Ive got, youll not find this strategy anywhere else. I
developed it, and its one of the things that has made me
the worlds 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 members 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. Id love to hear from you.
(www.fxnationlive.com/members/blog)

Heres to Your FX Success,

D.C. Bonta
The worlds number one FX money manager

- 4 -
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?

Im 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, thatd 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.

Im 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 days 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
Mondays session take the pivot calculation from 00:00 EST
on Friday to the close of the 23:00 EST candle on Sunday.

- 5 -
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

Heres To Your FX Success,

DC Bonta

- 6 -
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, its like stepping right over a rich vein
of gold and if you hit them right on its 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?

Heres the simple answer: Draw a straight line.

Ok, let me explain this one

The line youre 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, heres 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.
- 7 -

Now For The Deep Secret for HUGE Profits

Ok, now that youve got the basic idea down, lets move
this idea to a deeper level.

Heres 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
days 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?

Heres 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 hasnt 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 theyre 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, youre going to be expecting this next pitch, but I
have to say it anyway

Use my charting tools!

Ok, theres my sales pitch But its 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,
Ive been able to seriously ramp up my returns and so can
you.


DC Bonta,
- 8 -
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.

Heres why

Its a proven, hard, cold fact that 95% of all FX traders
lose money. Someones 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
theyll 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 cant?

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 youll be one of
the unfortunate FX minnows that gets eaten by the sharks.

- 9 -
Its 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 theyre going to
tell their spouse that the old retirement fund just got
sucked down by the market. You can bet the losers dont
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, its your
profits Im looking out for, not the big-banks and
institutions.

So, if you dont have that report, download it today
(www.fxnationlive.com/self) and, for heavens 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.


DC Bonta,
- 10 -
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, hed be called a master builder to the
tenth degree.

But if you get that sloppy with your FX trading, youll 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, theres no doubt about it sloppy, loose, non-exact,
lazy figures are why 95% of FX traders get eaten by the
sharks.

Heres 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.
Dont 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
- 11 -
is at 1.3450 (not 1.3455 or 1.3400 its 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.

Its 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 Im guessing that you dont want to be there... Im
guessing youd 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 Ill add more stuff
as we go.

But for now, Ive 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 dont know about all the tools Ive posted at
www.fxnationlive.com, maybe its time to see what youre
missing out on it could be costing you TONS of profits.


DC Bonta,
- 12 -
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, its 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.

Heres A Bit Of My Own Ancient Wisdom

Today, Im going to give you some ancient wisdom about some
Forex market signs. When you see these signs, youll know for
sure that you need to move. Of course, by moving, youll do two
things

First, youll save your keister from getting wiped off the
FX map.

Second, youll be in the perfect position to scoop up a ton
of pips easy money!

All right, lets talk about some things to keep your eye on

- 13 -
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 youll find in
the charting package Ive 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.


DC Bonta,
- 14 -
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, were 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. Thats 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.

Im 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
Canadas oil exports, so if the price of oil is rising, the
Canadian dollar will move right up with it.

- 15 -
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 thats the first tool watch the oil prices.

Daily, Unlimited Access to The Worlds 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 Im setting up for the day, and review current
events and trends.

There is enormous power and profit potential behind these
daily video sessions. Im showing folks, just like you,
how Im able to turn $100,000 into over $438,000 in about 6
months! Thats a 338.14% compound return! Its mind
blowing to most investors and traders to see those kinds of
numbers but Ive been doing it for years now.

The insane part of this whole deal is that, as you know,
Im 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, thats not why Im doing
it. Im doing it to help level the playing field. Im
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 members only blog and tell me all about it. I
cant wait to hear your story.


DC Bonta,
- 16 -
FOREX SECRET #8

Most of Grannys Sayings Were
Clever and Useful
This One Could Kill You

Dear FX Top Gun,

Look before you leap, boy itll save ya a loada pain

You are what you eat, sonny so quit shovin them Twinkies
in!

If ya aint got somethin good to say, dont 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.

Im sure that in most cases, that is true, but youll want
to avoid practicing in the Forex world unless youre
doing it the right way.

Let me explain

One of the first things youll 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 thats a sure sign that something is
up. (To see my beef with dealing desks, check out
Secret #4) Its the good, old-fashion puppy-dog close
get em using the account and, after a while, theyre
- 17 -
hooked. Unfortunately, the firms offering the best
looking, slickest demo accounts arent necessarily
offering the best services or information on the Forex
market.
2. Youll notice that I dont offer or promote demo
accounts on my site, www.fxnationlive.com

I bet youre wondering why I dont. Heres 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.

- 18 -
Lucky for you, Ive 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 worlds most exclusive and potentially profitable FX
trading tools.

So, buzz around, read up, dig in and make the jump.


DC Bonta,
- 19 -
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 thats just part of the game. Ive told you a million
times that if you let your emotions run your trading youll
get killed. But still, stopping your hand from tweaking
a trade set up does not mean you dont feel the burn in
your belly. Its the thrill and sometimes the curse of
swimming with the sharks in the turbulent waters of FX.

Thats why Im excited to give you Forex Secret #9 its
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 youre 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, youll lose a few pips here and there but thats
another story!)

Now, to accurately use this Secret, youre going to need to
really understand the principles I talk about in Secret #2,
Secret #3, and Secret #5. If you dont have those under
your belt, I suggest that you stop reading right now and
review them.

- 20 -
Trust me, what Im about to say will make a lot more sense.
Plus with #2, #3, and #5, youll 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, its 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.

Lets 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.

Theres 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.


DC Bonta,
- 21 -
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.

Its Time to Put On Some Real Clothes
- 22 -

So, I call this secret, the non-secret, because it is
really just a basic fundamental of trading. Youve heard
it just about as many times as youve slipped into a pair
of pants in the morning. Its 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. Its like putting on a well-worn pair of jeans sure
theyre old, but theyre comfortable and they cover you up.

Heres the kicker Im willing to bet that 9 out of 10
traders out there dont use this basic fundamental secret
when they are laying out their strategies and setting up
their trades. Maybe they dont understand it, and that is
why they dont use it. I dont know I just know they
dont use it.

But they should, because the stuff theyre flashing instead
is kinda embarrassing.

Ok, enough of that! Heres the non-secret secret

Trade With The Trends.

I know lame, boring, old school. But again, its made me
a bundle of dough.

Trading with the trends is an essential fundamental that
you need to understand. Im 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
- 23 -
only way to know for sure is to go back a few months and
take a look.

In Secret #9, I explained that if its 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 its 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

Heres a promise: If you nail down this basic fundamental
of the Forex market and consistently use ityour 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.


DC Bonta,
- 24 -
FOREX SECRET #11

The 2 to 1 Law Could Save
You Huge Losses

Dear FX Top Gun,

Theres an old story about an old mountain man who made a
living back in the late 1800s selling raccoon skins.

Of course to sell the skin, he had to convince the raccoon
to part with it, which the coon usually wasnt willing to
do alive.

This particular trapper had an unusual way of going about
the whole deal. Hed 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 hed 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
wasnt going anywhere.

Heres 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 didnt shine well enough or make
enough noise I dont 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 didnt. Hed hold onto those 2
worthless slugs for dear life and in the process hed have
to part with his fur.

- 25 -
How To Avoid Losing Your Hide

Theres a powerful lesson in that story. Its 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, thats on the opening position what about exiting?
You only need one indicator to motivate you to get out.

Thats the 2 to 1 Law 2 reasons (or more) to get into a
trade, but only one reason to get out.

Heres 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.

- 26 -
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. Thats 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 dont 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.


DC Bonta,
- 27 -
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 dont make a lot of money, they get tricked easily,
they dont have a lot of friends and did I mention that
they dont 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 theyre
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 Dont be a chump. 95% of the Forex
traders today are losing money they are getting
slaughtered nothin but shark bait.

So, Ive got one word for you (and its 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.

Its an ugly word in our society today. Were all about
fast food and microwaves. Who wants to sit on their hands
and do nothing? Wheres the action? Thats why Im in
Forex the action the fast-paced, lightning-speed,
feeding frenzy of the trade!

- 28 -
Hey, I love all that stuff just as much as the next guy.
But sometimes youve got to have a bit of restraint.
Youve got to get a grip on yourself, slow down and (I hate
to say this) do absolutely nothing.

Lets 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 theyre 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 its not a race to see how
many trades you can execute

Its 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. Im all about reaching in, grabbing those pips, and
keeping them safely locked away in my bank account.

Its a game Ive 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. Im not bragging, thats
just the way it is.

- 29 -
Theres Room On The Top Come On Up

But, Id like to change that. Ok, maybe Id like to stay
on top, but, let me tell you, theres 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? Wouldnt you like to be
there?

Well, as you know, that is exactly why Ive put FX Nation
Live together. Use the system and tools Ive 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.


DC Bonta,

- 30 -
FOREX SECRET #13

A Strategy For Losing 60% of The
Time and Winning 100%

Dear FX Top Gun,

Heres 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. Thats not a
lot, but even so, most traders cant even seem to
discipline themselves to live by it.

Well, heres 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

Heres how

If your trade set up does not provide at least a 1:2
risk/reward ratio, its 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
- 31 -
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.


DC Bonta,

- 32 -
FOREX SECRET #14

Parental Advice from General
Robert E. Lee Itll 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 cant eliminate emotions completely, but you can manage
them. The best way to do this is to have a mechanical
approach to your trading.

- 33 -
Heres an outline of the best way you can do that. Youll
notice that it involves a number of the secrets Ive been
sharing. Specifically, Secret #5, #9, #10 and #11. If you
dont 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 dont 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

- 34 -
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 Ive got plenty of income and the positive attitude
to keep momma and kids happy.

So, can you see why General Lees counsel was so powerful
to us Forex traders? Deny yourself the luxury of high
emotions and random strategic flip-flops and youll enjoy
higher returns and lower stress.


DC Bonta,

- 35 -
FOREX SECRET #15

Forex Amnesia:
A Professionals Guide to Not
Losing Your Mind Or Your Profits

Dear FX Top Gun,

Today, were going to do something a little different.

Im just going to ramble.

Im 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 lets 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!

- 36 -
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, youre getting nervous because its 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 didnt hit your stop loss and now youre up a
few pips

Now youre 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 Im 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

Ill give you an example of how this works with a pro
trader that isnt even average. In fact, he stinks hes
only right 40% of the time (See Secret #13).

Heres 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

- 37 -
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

Heres 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 couldnt 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-Hes 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-Hes really feeling confident, so as
price moves near his stop, he moves it again and
loses -20

Now, lets 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 dont 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

- 38 -
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.


DC Bonta,
- 39 -
FOREX SECRET #16

Losing While Youre Winning

Dear FX Top Gun,

The old Tortoise was so far behind him that the Hare
couldnt 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 wasnt the first time he had done this. In fact,
because of his speed and agility, hed 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
victors 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?

- 40 -
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.

Heres 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. Thats 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 Ill 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.


DC Bonta,
- 41 -
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.

Its likely though I hope not that you know exactly
what Im talking about.

Well, theres a way to avoid that gruesome scenario and
its 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, youll have an easy way to protect your
backside against reversals, and grab some easy money from
the movement.

Heres how it works

Divergence is the #1 tool I use in determining if prices
are going to reverse.

Even though its simple enough to utilize, the concept can
be a bit tricky to understand at first. But believe me,
its 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 dont
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
- 42 -
immediate and accurate. Plus, its 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.

Heres 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. Lets 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, itll 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.

Heres 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
doesnt reach that far, and to account for the spread).

- 43 -
So, I would have made 44 pips of profit with a high
probability, low risk trade. Easy money!


DC Bonta,

- 44 -
FOREX SECRET #18

The Best of Times and The Worst
of Times

Dear FX Top Gun,

Ok, the headline is cheesy I know.

But todays secret is pretty cut and dry so I thought Id
leave out the fluff and just give you the straight story.

So, here it is

Im going to tell you what time of day you should be
trading, what days 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.

- 45 -
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 thats what I do!

" If you are a late riser or in another time zone,
1 PM EST - 3 PM EST wouldnt be a bad trading
session.

BONUS HINT: You could also use this short
afternoon window if you didnt get your daily
profit from an earlier session.

" Avoid any trading after 3PM EST until 3AM EST.
There isnt 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.


DC Bonta,
- 46 -
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 werent 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, youve 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 dont 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

- 47 -
The standard leverage used in Forex is 1% or 100:1,
although it can be as high as 400:1 (I dont 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.

Lets 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, Heres 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 youre 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
- 48 -
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.


DC Bonta,
- 49 -
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.

Thats how Babe Ruth felt about baseball. He was there to
win period.

He didnt 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 its 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 Im
Blowing My Own Horn

Today, I enjoy an almost legendary track record of wins and
high returns so much so that Im known as the top Forex
money manager in the world.

Ill 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.
- 50 -

First, lets talk about the Forex swing

A swing is a previous high or low where the market
reverses.

Pretty simple isnt it? Just about as simple as swinging a
bat. Its using that swing to become a superstar that is
difficult right?

So, now lets 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
- 51 -
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 Im 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, Ill see you in the FX Hall of Fame.


DC Bonta,
- 52 -
FOREX SECRET #21

A Final Lesson From Granny:
Dont 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, Ill talk with you about one that you should follow.

Dont put all your eggs in one basket, boy if the basket
turns over, youll 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.

Lets 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.

- 53 -
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 thats
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, thats profit
target #3.

Now, heres 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 Im 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 theyll hatch into a grand
lifestyle, full of profits and opportunity.


DC Bonta,

21FX Secrets Complete

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