Disclaimer

The author may be contacted at success@LTGGoldRock.com

Copyright © LTG GoldRock 2009

All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic
or mechanical, including photocopying, recording or by any informational storage and retrieval system, without
prior permission in writing from the publisher.

The material in this publication is of the nature of general comment only, and neither purports nor intends to be advice.
Readers should not act on the basis of any matter in this publication without considering (and if appropriate, taking) professional
advice with due regard to their own particular circumstances. The author and publisher expressly disclaim all and any liability to
any person, whether a purchaser of this publication of not, in respect of anything and of the consequences of anything done or
omitted to be done by any such person in reliance, whether whole or partial, upon the whole or any part of the contents of this
publication.
Live Trader Global GoldRock Pty Ltd is a corporate Authorized Representative of The International securities and Derivatives
Group Pty Ltd (AFSL 227544 ABN 22 103 552 683). Trading involves the risk of loss as well as the potential for profit. The author
of this book takes no responsibility for the individual investment decisions the reader of this book takes and recommends all
readers of this book consult a licensed financial planner prior to making a decision to invest in Foreign Currency Trading
Please refer to the International securities and Derivatives Group Pty Ltd Product Disclosure Statement (PDS) and Financial
Services Guide (FSG) and/or supplementary FSG if required, which can be found on the website www.isdg.com.au before
undertaking this form of investment. Any advice given is general advice only.
There are no guarantees or certainties in trading. Reliability of trading signals for mechanical systems is in probabilities only.
Trading real money involves hard work, risk, discipline and the ability to follow rules and trade through any tough period. If you
are looking for guarantees, trading is not for you. The potential to lose money is real. Many people lack the discipline and are
unable to be consistent. A system can help you become consistent. The ability to be disciplined and take the trades is equally as
important as any technical indicators a trader uses. Ironically, worrying about the money aspect of trades can contribute to and
cause a trader to make trading errors. Therefore, it is important to only trade real money with a risk capital plan.

The reader of this book acknowledges that Live Trader Global recommends and advises all its members track and keep their own
statistical results on trades and to develop a trading plan in accordance with this analysis. They take complete responsibility for
their trades and acknowledge and accept the risks associated with Forex trading.

7 Steps to Making a Killing Trading FX Page 1

Table of Contents

Disclaimer ...................................................................................................................................................................... 1
Introduction .................................................................................................................................................................. 3
Step 1 - Learn to Trade with the Big Money ................................................................................................................. 3
Does trading with the Big Money mean I need Big Money to start with?................................................................ 4
Step 2 - Risk vs Reward may as well be called Live or Die in trading ............................................................................ 4
Step 3 - Finding Big Money Indicators........................................................................................................................... 6
Fibonacci ................................................................................................................................................................... 6
News Announcements .............................................................................................................................................. 6
Getting the Edge........................................................................................................................................................ 6
Step 4 - Stop pretending to make Money ..................................................................................................................... 7
Opening an Account .................................................................................................................................................. 7
Crawl, walk, jog, run and then sprint ........................................................................................................................ 7
Step 5 - Trade with a Winning Team ............................................................................................................................. 7
Trading with Success, breeds Success ....................................................................................................................... 7
Step 6 - Understanding probability is worth a Million Dollars ...................................................................................... 8
Step 7 - Be honest with yourself ................................................................................................................................... 8
Trading as a Business ................................................................................................................................................ 8
In Summary ................................................................................................................................................................... 9

7 Steps to Making a Killing Trading FX Page 2

Introduction

Let’s not kid ourselves ...Trading is a very competitive game and a very serious business.

It needs to be taken seriously and become your ‘business’ if you want to make a killing in this market.
You will not succeed at anything if you simply ‘dabble’ in it. This applies to trading as it does to just about any pursuit in
life. It’s all about effort and focus. If you focus and commit yourself mentally to this business … you could make an
absolute killing trading Fx.

How do I know this? This is an immutable law of success applied to trading and works equally as well to anything else you
will commit to in life.

With trading, the feedback is fast. You will know how you are doing almost immediately. This is where success in this field
differs to other business pursuits where sometimes the outcome is not as clear. You know if you are winning or losing
within minutes as there is nowhere to hide your wins or losses. And you are either a winner or loser with no grey areas. It’s
cut throat. The winners don’t care about the losers and the losers just fade away.

So your success starts well before you invest one cent in these markets. It starts with your mindset. From day one, before
you start trading, you do need to decide which one of these people you want to be and then go about setting yourself up
to be a winner from the moment you decide to be a trader.

The following 7 steps will help you develop this mindset and mentally prepare you for your road to being a winner, or to
refocus you, if you have found success in trading has eluded you so far.

Step 1 - Learn to Trade with the Big Money

Banks are the big money traders in this game and the biggest winners of all. The great news is they no longer exclusively
hold the secrets to taking a share of these profits. Today, anyone serious about trading must learn how they trade, use the
same equipment they use and apply the same business like systems they use to make these millions. And you must
ultimately trade with the big money if you want to make big money. Any money in fact.

Every time you enter a trade you are effectively entering a competition with the banks and you are playing a competition
against seasoned veterans and major players in the Forex market. There is no warm up match, no seeded draw to see you
play the rookies first, in trading you will be playing against the #1 seed every day, so you must be prepared and ready.

The good news is ... to be successful you don’t necessary have to beat them at their own game and play against them ...
just join them!

Learn the systems they use and trade with them when the opportunity arises. The very people that are most likely taking
your money now and draining your trading account are the banks and institutions. You don’t have to learn to beat them
you need to learn how to join them. It is banking traders and institutions who are taking the lion’s share of profits from the
currency market and whilst hundreds of millions of dollars a day is traded by individuals on the currency markets, very few
understand how to trade with the big money.

Here is an essential rule if you want to make a killing trading FX.

The best way to start trading with the big money is to learn how to identify and trade with a trending currency pair and
don’t base your trending decision off anything less than a 1 hour or 4 hour chart. The big money looks for big moves and
big moves don’t come from looking at small time frames. This will likely mean you will take fewer trades. Fewer trades
doesn’t necessarily mean fewer profits. When you learn to trade big time frame trends, you will likely see far more money
in your trading account than when you were looking at small time frames for quick profits.

7 Steps to Making a Killing Trading FX Page 3

The big money may enter off a smaller time frame based on a candle stick formation however their overall strategy will be
based on where the major trend is on a pair, and even if a news announcement is coming, if their bias is against a trend,
they will stay out. The Big Money trades with trends period, and if you are going to try and trade against it you will likely
end up draining your trading account.

Does trading with the Big Money mean I need Big Money to start with?

Forex, unlike any other market gives you the ability to start with smaller amounts of required capital by trading with as
little as .10c per point. Many traders think that starting so small is a waste of their time, but this gives you the ultimate
power tool as a trader – the ability to control your risk.

So take advantage of this and start learning to take small profits with the big money, trading trends off big time frames.
Starting from the very bottom gives you the opportunity to start trading and staying in the trades with the Big Money and
although 10c pips aren’t very exciting, a $1.20 profit is definitely more exciting than a drained trading capital account.

Step 2 - Risk vs Reward may as well be called Live or Die in trading

Risk vs Reward is at the top of the list when it comes to making a killing in Forex trading. Many of the world’s highest paid
Forex traders have win loss ratios close to only 50%, but they still make millions.

Why? Because they know how to reduce and manage risk. Amateur traders are looking for systems and signals that work
85% to 95% of the time. They don’t exist and you would be far better spending your time learning how to manage risk and
trade a system that is 60% successful with a great risk management plan. Remember an incredible signal traded poorly will
never beat a mediocre signal traded well.

So why is trading such an emotional experience for most people? Unfortunately they don’t spend the time to understand
risk management and to implement a risk management plan. When they do, they suddenly realise that trading Forex
doesn’t need to be a nail biting experience and that a patience approach, with persistence and good money management,
will see them succeed long term.

Making a killing in Forex trading is not all about winning every trade. This is impossible and has never been achieved in the
history of trading by anyone over the long term. Winning is about how you manage your risk on every trade you take. Up
to 95% of Forex traders really have no idea on how to manage risk and the same amount of them fail. This is no
coincidence. Banks, professional traders and institutions have strict rules and are experts at managing risks. This is the
hidden key as to why they end up winning.

So how do you effectively manage risk? You should not be risking any more than 2.5% of your trading account on any
trade. If you don’t have one already you must develop a system to calculate what 2.5% actually is every time you trade.
CAUTION. Don’t take another trade with live money until you understand and can systematically calculate this!!

This is critical information for you. If your account is based in USD (for this example if your account is in another currency
it does not matter the same principle applies) then you must understand that you are not always trading in USD.

7 Steps to Making a Killing Trading FX Page 4

For example, if you take a trade on the GBPUSD (the first pair is always the base currency) using a standard 1.00 lot size,
the risk on a 25 point stop loss is significantly different to the same trade taken with the same lot size on the USDJPY.

You must strictly calculate the following before you enter a trade:

• What is your account balance?

• What is the base currency rate vs the currency your account is held in?
• Then calculate what volume you require to ensure you stay within your risk tolerance.

You will need to do this on the run every time you trade and have the time to do this.

Below is a calculator you can use on every trade you take. I simply fill in the grey boxes and it will tell me the exact volume
to trade and to ensure the stop I am using for the trade keeps me within the 2.5% risk. If you do not know how to
calculate risk, please visit www.ltggoldrock.com

Account size Risk EUR vs

AUD 2.5% AUD rate
$100,000 $2,500.0 1.56
Volume
Account size 2.5% Stop loss allowed for
EUR Risk required stop required
64,103 € € 1,603 25 64.10

Most people associate a bigger stop loss with more risk. This is not necessarily true, as you can adjust your volume to
ensure you still stay within 2.5%. In other markets, such as Eminis or Futures, you cannot do this as lot sizes are set in most
cases and this is why I prefer the Forex market as a trader. For example, you can trade with a 100 point stop loss and yet
still risk the same money as a trade with a 25 point stop loss no matter what base currency. Remember, this is the risk not
the reward.

The reward must be equal to the stop value and if you are scaling out you must understand precisely what profit target
you need in order to cover your risk. You might think that this sort of work is time consuming and an unnecessary effort
but if you want to be a winning trader you must know that your competitors, i.e. banks and professional traders, use some
of the strictest risk management systems on the planet and is the reason why they are so successful. Their traders are
accountable on every trade they take and they must follow a professional structure. Once you get used to trading this way
you will never trade any other way.

If you want to make Forex a career and enjoy the same returns banks do in Forex trading, then start to manage your risk as
they do. You can make a killing as a Forex trader and get rich, very rich, slowly! You will surprise yourself if you use this
approach. Getting rich slowly in Forex is a lot more profitable than trying to get rich quick. Don’t go for broke from day one
and don’t waste your time and money in Forex trading trying to do it quickly, it will eat you up and spit you out.
Understand ‘risk and reward’ and make it part of your trading plan and you will join the winners!

7 Steps to Making a Killing Trading FX Page 5

Step 3 - Finding Big Money Indicators

You can spend the next few years trying to find indicators that work 90% of the time but by the time you find one that
does work 90% of the time the market dynamics change and it no longer works. You need to use a system that is simple
and provides you with an opportunity to have at least a 50% to 60% rate of success and one that you own emotionally and
can move with market dynamics.

A 50% to 60% success rate can see you make a killing in Forex. It’s then down to your money management and how
you execute. Professional traders are amused and amazed by the the millions of Forex traders trying to find signals that
work 80% or better, while they ignore the amazing profits with much smaller odds of success.

We have already covered the type of trade set ups you should be looking for, i.e. taking trades following large time frame
trends on 1 hour charts or larger. The next question is finding a strategy to trade these time frames that will allow you to
trade with big money. The following are some popular strategies which professional traders use to make a killing in trading
Fx.

Fibonacci

Fibonacci is a very simply system used by many big money traders to enter trades, usually off 50% or 61.8% retracements,
giving them an entry to go with a trend. Candle stick formations on larger time frames such as engulfing candles after
pullbacks also work extremely well, but only with trends. They are simple yet highly profitable. One other type of trading
system often used by big money traders is wave trading. Essentially, the market likes to move in 5 wave formations and
waves 3 and 5 are usually the strong trending waves. A combination of a Fibonacci retracement and an entry on a wave 3
or 5 is your start to making a killing trading Forex.

News Announcements

Many big money traders will also learn how to trade news announcements such as interest rates, employment and jobs
data. This is a skilled and highly lucrative strategy if you are able to build your knowledge and network base to understand
how to read a news announcement.

The way banks and big money traders will trade news announcements is like this ... Senior economists and advisors will
usually have their own view and expectation on what an announcement will be and therefore the market will have a bias.
For example, an interest rate announcement may be due to come out and the expectation is that the Federal Reserve will
leave interest rates on hold. If the announcement is different to expectation, then banks and big money traders will step in
and usually make a killing going against this news. Often they will wait days and weeks just for one set of data numbers
and if they are not in line with expectation they will enter large volumes.
This is not easy to learn on your own, however if you are trading with a team of professionals (more on trading with a
team shortly) you can learn this technique and potentially make a killing as banks and big money traders often do trading
on news.

Getting the Edge

It is a myth that to make a killing as a currency trader you need a sophisticated and top line secret trading system that is
near impossible to find. All you need is in fact finding a strategy that works better than 50/50, and this is not very
difficult. Managing it, tracking it and trading it is the challenging part, but finding it is not.

What you need is something that has an edge and your success will be determined by how you play the edge. Make sure
the edge is trading with the big money, big trends, big time frames and strong on risk vs reward. Those principles applied
daily can have a radical shift in the profits that come into your trading account. This is how banks and major money makers
in Forex trade and their systems are not anything secret.

7 Steps to Making a Killing Trading FX Page 6

Step 4 - Stop pretending to make Money

There are many trading education companies that insist that you must master the art of trading paper money first before
moving onto Real Money. This is a myth. You always will make money in paper as you have no skin in the game and zero
risk. There is no emotion and if you are a trader reading this you will be nodding and saying ... "Yes, I made money in
paper, but when I went live I just couldn't do it".

When you go live, your emotions get in the way. If you don’t train your mind and emotions from day one to trade real
money, you will find a sense of false self confidence. Trading is a zero sum game, you either win or lose. There is no grey
area. The great thing about the Forex market is that it gives you the chance to trade very small from as little as .10 cents a
point therefore making or losing just a few dollars or the cost of a cup of coffee when you start. No other market in the
world can teach you the skills you need like Forex can. So if you genuinely want to make money in Forex, the only time you
should be trading in paper is when you are learning to execute orders on the platform.

Opening an Account

When you start trading Forex, open an account with no more than $1000 dollars. In fact, you can open an account with as
little as $200 if you wish. You can add more money to your account in time with your success and profits but here’s an iron
clad guarantee. If you can't turn $1000 into $2000, there is no hope that with more money such as $20,000 that you will
turn that into $40,000. It rarely ever happens and for those that do, it’s usually luck.

Crawl, walk, jog, run and then sprint

There is one golden rule that you must follow if you are going to trade real money from day number one. Learn the
platform first and then trade micro lots of .10c to prove your success. Don’t kid yourself and think you can just roll with an
account with $10k and trade full 1.00 lots or you will crash and burn. Crawl, walk, jog, run and then sprint. As we covered
earlier, you can potentially make a killing and get very rich slowly, but it will usually be quicker than you think if you learn
these skills.

Step 5 - Trade with a Winning Team

This is so critical and if banks have a secret to trading success, this is probably the one. Everybody thinks big money traders
have better systems. They don’t have any better systems than you have access to right now, but critically they do have a
winning team around them that has decades of knowledge, experience and success! Something YOU MUST have too!

One of the main reasons why banks are so successful is that they trade as a team. They support one another, sharing their
years and decades of experience with their trading team. The benefits and results in terms of pure profit are
extraordinary. Hundreds of millions of dollars to be more specific. This is a top line key to making money as a Forex trader.

Trading with Success, breeds Success

The lack of a daily support structure and working together with a team is one of the very reasons so many people don't
make money Forex trading.

The benefits of being a big money bank trader is that you have a team of researchers, economists, runners and minute by
minute firsthand knowledge of what is happening in the global markets. Their systems are not rocket science and in fact
are no more likely to make them more money than you. It is how you execute that matters and how you can work
together with them that counts. It is why so many million dollar bank traders think they can make more money trading
from home away from the environment of the bank, only to leave and realise their support structure, the very base that
supported their trading every day, is gone. They are alone and no longer on the winning team.

7 Steps to Making a Killing Trading FX Page 7

Unless you educate yourself with real professional traders, in my view, you are likely never to make money as a currency
trader long term. You will likely spend years and years trying to figure out how to make money consistently. Sure you will
make the odd winning trade but you will struggle. Long term success is all that counts. Be trained and rub shoulders with
people who walk the walk, not just talk the talk. Simply be around the best you can find.

Step 6 - Understanding probability is worth a Million Dollars

In Forex, you don't get paid to get emotional. You get paid when you follow a plan with an edge and have the probabilities
on your side. That plan does not need to be sophisticated.

These days, the exact same systems that the banks use on a daily basis to drive their billion dollar profits are no longer
hidden in their vaults and the same tools and systems are available to everyday investors and traders. The doors that were
once locked to the average investor are now open and the same money that has been streaming through, you can now
also get your hands on.

But you won’t see any of it until you understand probability and not certainty. Human beings love certainty and we are
surrounded by it. But in Forex trading it does not exist. The market is random and we simply do not know which trades will
be winners and which will be losers. We just have a random probability of success. However, if we know that over a given
number of trades that a trade is likely to win more often than it loses, then if we simply apply good money management
and take each trade we will likely succeed.

Losing traders skip trades, trade too much money, trade with emotion and fear and never learn the million dollar pay day
word called probability. Learning to trade probability can only be done with small lot sizes and trading a system with a
professional approach in a businesslike manner. If you don’t, you may as well go to the races or casino because you are
gambling. Trading with probability is not gambling as the odds are in your favour and for you to be successful you must be
able to take each trade that meets the plan. That is only possible when you understand and learn to trade with probability
on your side. This must be done with small lot sizes to start with and then build it up.

Step 7 - Be honest with yourself

This is also another critical difference between big money traders and traders that don’t make money in Forex. What big
money traders have is an incredibly disciplined approach. They are very professional and business like and they are also
accountable.

If they are trading at the bank their job depends on them following the plan and trading within the risk allowed. They are
accountable to the trading room director or whoever they are trading with at all times. Who are you accountable to? Most
Forex traders would make more money if they simply teamed up with someone they know and trust, gave them their
trading plan and allowed them to check their results every week. Yes your trading statement. The chances of you sticking
to your plan are improved significantly as now you have someone to answer to.

You must always be honest with yourself and to your trading account. If you are consistently losing money, HELLO!!!! ...
Why are you continuing to do the same thing? Things must change and it can start with you making a commitment from
today onwards that you will be accountable by joining a trading team. Sharing with them what you are doing and trading
with a winning team. Big money traders do it, senior bank traders do it, million dollar traders do it and if you want to make
the same returns they do, it’s sensible you do it too.

Trading as a Business

Do you have a detailed plan? Not just any plan but a well researched plan that is designed and crafted and checked and
double checked by your trading team which are successful currency traders themselves. My success has come from

7 Steps to Making a Killing Trading FX Page 8

educating myself from the best and not trying to reinvent the wheel and think I will be better off doing it on my own to
save money. In my experience, the solo approach is likely to lose money, not make money following that type of strategy.

In Summary

We have now covered the only 7 Steps you need to make a killing trading Forex. Here it is in a nutshell. Forex is the only
market you can start to learn to invest with real money from day one. Start out trading 10 cents a point and if you are
following million dollar traders trading big positions and you are consistently profitable with small volumes, you can
leverage off them and build your investment size and continue to build it over the coming years ahead.

Making money as a currency trader is simpler than you think, not easy, but more simple than you think.
Even if you have never been a successful trader before, you can do this. All you have to do is try and follow the
principles and advice you now have in your hands and truly this is all you need to make a killing trading Forex.

To Your Success,

Andrew Barnett
Managing Director
LTG GoldRock

Freecall: 1 800 4 FOREX (1 800 436 739)

International: +61 7 5451 4055
Fax: +61 7 5302 6688
http://www.LTGGoldRock.com

Live Trader Global GoldRock Disclaimer: Live Trader Global GoldRock Pty Ltd (ACN 135 321 649.) is a corporate Authorized Representative
(Authorized Representative number # 335434) of The International securities and Derivatives Group Pty Ltd (AFSL 227544 ABN 22 103 552
683). Trading involves the risk of loss as well as the potential for profit. Please consult your licensed financial consultant to decide if this
product is right for you. Please refer to the International securities and Derivatives Group Pty Ltd Product Disclosure Statement (PDS) and
Financial Services Guide (FSG) and/or supplementary FSG if required, which can be found on the website www.isdg.com.au before
undertaking this form of investment. Any advice given is general advice only. *Commissions and margins may change at any-time without
notice.

7 Steps to Making a Killing Trading FX Page 9