TRADING LIKE

THE 1%

Ebook

1
INTRODUCTION

In this ebook you will learn everything important there is to know about forex
market, myths, facts, and trading strategies. My goal is to educate you and make
you profitable.

While this ebook is considered comprehensive, it is not meant to be taken as

financial advice and readers are advised to gather information from multiple
sources to create your own trading strategy.

CHAPTERS

I. TRADING TERMINOLOGIES
II. GETTING STARTED
iii. TECHNICAL ANALYSIS
iv. ROAD TO YOUR FIRST $100K
v. TRADING MENTALITY

APPENDICES

I. CANDLESTICKS APPENDIX
II. CHART PATTERNS
III. SOURCES
IV. PRODUCTS

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 I. TRADING TERMONOLOGIES

What Is Forex?
The foreign exchange market, or forex (FX) for short, is a decentralized marketplace that
facilitates the buying and selling of different currencies. Forex trading is a term used to
describe individuals that are engaged in the active exchange of foreign currencies, often for
the purpose of financial benefit or gain. This takes place over the counter (OTC) instead of on
a centralized exchange. The market is driven by supply and demand

Brokers and Market Makers Brokers serve as an agent of the customer in the broader FX
market, by seeking the best price in the market for a retail order and dealing on behalf of the
retail customer. They charge a commission or "mark-up" in addition to the price obtained in the
market. Dealers or market makers typically act as principals in the transaction versus the retail
customer and quote a price they are willing to deal at.

Who is a Trader and how many types there is? A forex trader is somebody who buys and sells
currencies in the global foreign exchange market. Types of traders:

• Day Trader is a trader who buys and sells a financial instrument within the same trading
day, so that all positions are closed before the market closes.

• Swing Trader is a trader who hold positions for one or more than 1 day over multiple
trading sessions.

• Investor An investor is a person that allocates capital with the expectation of a future
financial return or to gain an advantage, often over a long period.

Base currency: This is the first currency that appears when quoting a currency pair. Looking at
EUR/USD, the Euro is the base currency.

Variable/quote currency: This is the second currency in the quoted currency pair and is the US
Dollar in the EUR/USD example.

Bid: The bid price is the highest price that a buyer (bidder) is prepared to pay.

Ask: This is the opposite of the bid and represents the lowest price a seller is willing to accept.

Spread: This is the difference between the bid and the ask price.

Pips: A pip (Point In Percentage) refers to a one digit move in the 4th decimal place.

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Leverage: Leverage is an instrument that allows traders to trade positions while only putting
up a fraction of the full value of the trade. This allows traders to control larger positions with a
small amount of capital. Leverage amplifies gains and losses.

Margin: This is the amount of money needed to open a leveraged position and is the difference
between the full value of your position and the funds being lent to you by the broker.

Margin call: When the total capital deposited, plus or minus any profits or losses, dips below a
specified level (margin requirement).

Liquidity: A currency pair is considered liquid if it can easily be bought and sold due to there
being many participants trading the currency pair.

Lot size: Represents the volume you are entering the market with. Too much volume on a
position can cause you big problems.

Long / Short position: “Long” or buy means your trade makes profit when the price rises.
“Short” or sell means your trade makes profit when the price falls.
Note: In Forex, you are always “long” one currency and “short” another when you open a trade.
In stock trading, you typically must borrow shares and pay interest on them when you go “short.

Bull / Bear markets: A bull market is a market that is on the rise and where the conditions of
the economy are generally favorable. A bear market exists in an economy that is receding and
where most stocks are declining in value.

Trading platform: Is a software that allows users to place orders for financial products over a
network with a financial intermediary. These products include stocks, bonds, currencies,
commodities, and derivatives. Most common forex trading platforms are Trading view and
Metatrader MT4 / MT5. There are market execution orders and pending orders.

Technical indicators: also known as “technicals,” are tools focused on historical trading data,
such as price, volume, and open interest, rather than the fundamentals of a business, such as
earnings, revenue, or profit margins. There are two types:

• Overlays: Technical indicators that use the same scale as prices are plotted over the
top of the prices on a stock chart. Most used are moving averages and Bollinger
Bands®.
• Oscillators: Technical indicators that oscillate between a local minimum and maximum
are plotted above or below a price chart. Most used are the stochastic oscillator, MACD,
or RSI.

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Trading Sessions: Trading sessions are the primary trading hours and locale for a given asset,
below are the main trading sessions. It is advised to trade the dominant currency during each
session – example GBP during London session and JPY during Tokyo session.

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II. GETTING STARTED

A) Choosing a broker. This is the most critical step, as there are a lot of scam brokers out
there. Stay safe and start on the right foot!
- Go to trusted brokers website and choose a verified broker from there. Our pick is HF
markets https://www.trusted-broker-reviews.com/hf-markets/ . They are one of the
most versatile brokers with exceptional client service and partnership program.

B) Open an account (Start with a demo account). Tip: enroll into their Autochartist service –
thank me later.
https://www.hfm.com/?refid=357587

C) Read the news: Before entering any trade you need to read the news and note down the
economical event, for example you do not want to be selling the US dollar on the day the
FED are hiking the interest rate!
The best site is https://www.dailyfx.com/

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 III. TECHNICHAL ANALYSIS

Now that you are familiar with the trading terminologies and have opened an account, it is time
to learn the technical analysis and develop a trading strategy. The most common technical
charts are Japanese candlesticks which are used here in this ebook (See Candlestick Appendix
before continuing).

A) Supply and Demand in a nutshell summarizes trading in the market, where traders sell
at supply areas also known as resistance areas (price is seen to be high) and buy at
Demand areas also known as support areas (price is seen to be low), let us see the
example below on GOLD.

B) Trend is the movement of the currency pair whether it is upward or downward (Sideways
is not a trend). Drawing a trendline is simply connecting higher lows in an uptrend and
lower highs in a downtrend and is comprised by minimum of two points. Traders buy
upon bouncing off the uptrend and sell once rejected at the downtrend. TREND IS YOUR
FRIEND, always trade with it. let us see the example below on EURUSD.

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->continue

C) Dynamic Support and Resistance is an alternative way to look at support and

resistance. While the levels in A and B examples are (static) levels, they can be
(dynamic) and dentified using the moving average indicator that tracks the last closing
candles prices, a period of 21 Exponential Moving Average is considered balanced.

▪ Dynamic Support: When the price tests the EMA and bounces up from it. Let us
see the example below on EURUSD.

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▪ Dynamic Resistance: When the price tests the EMA and gets rejected moving
down from it. Let us see the example below on EURUSD.

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D) Chart patterns are technical trading structures that indicate bearish or bullish
movement. Below we will learn the eight most common patterns.

➢ Bearish patterns:

• Double top is a reversal pattern that entails two high points within a market which
signifies an impending bearish signal. The neckline is formed between the price low
of the valley between the two peaks. A break below this neckline will confirm the
double top pattern. This pattern does not necessarily have to form a “W” shape. let
us see the example below on US100 or Nasdaq.

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• Head and Shoulders is a reversal pattern that helps traders identify when a reversal
may be underway after a trend has exhausted itself. This reversal signals the end of
an uptrend. let us see the example below on ETH.

• The Rising wedge pattern is a bearish regarded pattern that begins wide at the
bottom and contracts as price moves higher and the trading range narrows between
a downtrend and an uptrend and eventually falls, resulting in a rising wedge breakout
to resume a downtrend. let us see the example below on EURAUD.

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 • The Bearish Pennant pattern is a continuation pattern that occurs in strong
downtrends. It always starts with a downward flagpole – a sharp drop in price,
followed by a consolidation in the downward movement. This forms a triangular
shape, known as the Pennant. There is then a breakout, and the downward
movement continues. Traders look to enter short trades on a break below the
pennant. let us see the example below on SOLUSDT.

➢ Bullish patterns:

• Double bottom is a reversal pattern that entails two low points forming near a similar
horizontal price level and signifies a potential bullish signal. The double bottom chart
pattern is found at the end of a downtrend. The bullish confirmation is specified by
a break in the key price level situated at the high point between the ‘bottoms’ level
(neckline). A break above this neckline will confirm the double bottom pattern. This
pattern does not necessarily have to form a “W” shape. let us see the example below
on US100 or Nasdaq.

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• Inverse Head and shoulders resembles the same structure as the standard
formation but reversed. It is observable in a downtrend and indicates a reversal of a
downtrend as higher lows are created. let us see the example below on CHFJPY.

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->continue

• The falling wedge pattern is a bullish regarded pattern formed between a downtrend
and an uptrend where the price connects the lower highs and lower lows before it
eventually rises, resulting in a falling wedge breakout to resume the larger uptrend. It is
considered a bullish chart formation but can indicate both reversal and continuation
patterns – depending on where it appears in the trend. let us see the example below on
USDJPY.

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 • The Bearish Pennant pattern is a continuation pattern that occurs in strong Uptrends. It
always starts with an upward flagpole – a sharp rise in price, followed by a consolidation
in the upward movement. There is then a breakout, and the upward movement
continues. Traders look to enter long trades on a break above the pennant. let us see
the example below on USDCAD.

E) Trading strategies

Note: In all strategies, we recommend adding a fast and a slow Moving average to
determine the trend. For example the ones used in this Ebook are (21MA and 100MA).
Where a cross of 21 MA with 100MA in the upward direction will resemble a start of an
uptrend and the opposite for a downtrend.

➢ Breakouts happen when price breaks out of a support or resistance areas causing the trend
to switch Directions.

• Key level breakout: Let us see the example below on GBPUSD showing a key level
support being broken.

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• Trendline and patterns breakout: Let us see the example below on NZDJPY.

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• AB-1,2,3 Strategy is an extremely detailed strategy with precise target calculation
developed by Victor Sperandeo and John Murphy. Definitions:

(A) First plotted point. It will be the peak in downtrend or the bottom in uptrend.
(B) Second plotted point. It will be the peak in uptrend and the bottom in
downtrend.
(1) Trend Line Breakout candle
(2) Trend Line retest Candle
(3) Neckline Breakout Candle

Entry will be at point (3) always, let us the example below on GOLD in a Downtrend
breakout.

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 -let us the example below on AUDUSD in an Uptrend breakout.

• False breakout: Not all breakouts are true breakouts, sometimes Key support and
resistance levels hold their ground exceptionally strong. Let us see the example
below on GBPUSD where resistance level was held on three tests, then on the fourth
test, price created a large false-break pin bar that signaled a potential down move
was coming. As we can see in this chart, not only did the false breakout signal a
down move, but it started off an entire downtrend.

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➢ Pullbacks happen when price retraces to key levels of support and resistance, the most
common tool is Fibonacci tool and most watched levels are 50% and 61.8% (Golden ration
levels).

• Bullish pullbacks Let us see the example below on GR40 or DAX.

• Bearish pullbacks Let us see the example below on GBPJPY.

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IV. ROAD TO YOUR FIRST $100K

This chapter talks about money management and compounding secrets. With the
strategies learned I want you to aim at making 2% to 5% daily, with using compound interest
principles increase the lot size with time keeping your goal and risk the same.

Albert Einstein once said “Compound interest is the eighth wonder of the world. He who
understands it, earns it; he who doesn't, pays it”. While some people question whether the
quote was in fact from Einstein, the power of compound interest is unquestionable.

Legendary investor Warren Buffett has called compound interest an investor's best friend
because it grows at a faster rate than simple interest, since it earns returns not only on your
initial investment but on the interest you accumulate as well. And the longer your money
has to grow, the more interest it can earn.

A spread sheet is attached with this Ebook that guides you day by day to your first $100k.

After you make it, you can invest a large portion of it in Blue-Chip dividends paying stocks
such as Coca-Cola where you get paid for every share you own in the company. Also staking
in cryptocurrencies like BTC, ETH and SOL will pay you interest. This is called passive
income.

The goal is to keep increasing your capital by day trading and diversifying your passive
income investment.

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 V. TRADING MENTALITY

Congratulations for making it this far, you are now 40% ready for the market! While this is a bit
cynical it is nothing but true, the skills and strategies you master will only take you there, your
mental toughness and composure will do the rest. As a trader your mentality should be as
tough as diamond. Here I leave you with the rulebook I learned along the years, where I had my
fingers burnt few times.

1. Trade with purpose. There is nothing stronger than someone with a clear goal and
purpose, mine was always family. Trade to retire your parents and build a better future
for your children, your 9 to 5 will not cut it’.

2. Be disciplined. Staying the course and following your trading plan will take you a long
way. ALWAYS trade the same lot size and never enter a trade where Risk to reward
ratio is not 1:1 at minimum.

3. Make analysis and practice habit. Practice will make you successful and analysis will
instill confidence in your trading. NEVER jump into a trade without analysis.

4. Do not get attached. If a trade goes sour close it and move on!

5. Keep learning. Knowledge is your strongest weapon and your shield armer, start reading
articles, and books to educate yourself about trading.

6. Never trade after a big win or a big loss. Composure is key.

7. Company is key. Surround yourself with professional traders who shares the same
mentality as you.

8. Rest but never give up. There will be days when market will go south, it is very important
to remember why you started and to rest when you feel burnt then pick yourself up again.

You are GREAT and one day you will make it. All the love.

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 APPENDICES

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 I. CANDLESTICKS APPENDIX

What is a Japanese candlestick? A Japanese candlestick is a type of price chart that shows
the opening, closing, high and low price points for each given period. It was invented by
Japanese rice merchants centuries ago, and popularized among Western traders by a broker
called Steve Nison in the 1990s.

➢ Reading a candlestick:

• On most charts today, green candlesticks indicate upward movement and red ones a
move down. However, occasionally white (up) and black (down) is used instead

• On a green candle, the top of the body is the close and the bottom is the open. On a red
one, the opposite is true

• On both red and green sticks, the top of the wick (sometimes called the shadow) is the
highest point that the market has hit within the period – and the bottom is the lowest

There are many types of candlesticks, most used for strategies mainly breakouts are Pin bar
candles which represents a sharp reversal and rejection of price. The pin bar reversal defined
by a long tail, the tail is also referred to as a “shadow” or “wick”. The area between the open
and close of the pin bar is called its “real body”, and pin bars generally have small real bodies
in comparison to their long tails.

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->continue

A very important consideration when using pin bar candles is that the colour of the candle is
not usually a signal for the trade direction. So, a bullish pin bar is identified by long lower wicks
and a bearish pin bar is identified by long upper wicks, how the body of the candlestick closes
should also not be considered.

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➢ Candlestick patterns

The first six candlestick patterns below are Bullish patterns, the next six are bearish patterns
and the last four indicate continuation.

Bullish patterns may form after a market downtrend, and signal a reversal of price movement.
They are an indicator for traders to consider opening a long position to profit from any upward
trajectory.

Article I. Hammer

The hammer candlestick pattern is formed of a short body with a long lower wick, and is found
at the bottom of a downward trend. A hammer shows that although there were selling
pressures during the day, ultimately a strong buying pressure drove the price back up. The
colour of the body can vary, but green hammers indicate a stronger bull market than red
hammers.

Article II. Inverse hammer

A similarly bullish pattern is the inverted hammer. The only difference being that the upper wick
is long, while the lower wick is short. It indicates a buying pressure, followed by a selling
pressure that was not strong enough to drive the market price down. The inverse hammer
suggests that buyers will soon have control of the market.

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->continue

Article III. Bullish engulfing

The bullish engulfing pattern is formed of two candlesticks. The first candle is a short red body
that is completely engulfed by a larger green candle. Though the second day opens lower than
the first, the bullish market pushes the price up, culminating in an obvious win for buyers.

Article IV. Piercing line

The piercing line is also a two-stick pattern, made up of a long red candle, followed by a long
green candle. There is usually a significant gap down between the first candlestick’s closing
price, and the green candlestick’s opening. It indicates a strong buying pressure, as the price
is pushed up to or above the mid-price of the previous day.

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->continue

Article V. Morning star

The morning star candlestick pattern is considered a sign of hope in a bleak market downtrend.
It is a three-stick pattern: one short-bodied candle between a long red and a long green.
Traditionally, the ‘star’ will have no overlap with the longer bodies, as the market gaps both on
open and close. It signals that the selling pressure of the first day is subsiding, and a bull
market is on the horizon.

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Article VI. Three white soldiers

The three white soldiers pattern occurs over three days. It consists of consecutive long green
(or white) candles with small wicks, which open and close progressively higher than the
previous day. It is a very strong bullish signal that occurs after a downtrend and shows a steady
advance of buying pressure.

--

Six bearish candlestick patterns

Bearish candlestick patterns usually form after an uptrend, and signal a point of resistance.
Heavy pessimism about the market price often causes traders to close their long positions,
and open a short position to take advantage of the falling price.

Article VII. Hanging man

The hanging man is the bearish equivalent of a hammer; it has the same shape but forms at
the end of an uptrend. It indicates that there was a significant sell-off during the day, but that
buyers were able to push the price up again. The large sell-off is often seen as an indication
that the bulls are losing control of the market

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->continue

Article VIII. Shooting star

The shooting star is the same shape as the inverted hammer, but is formed in an uptrend: it
has a small lower body, and a long upper wick. Usually, the market will gap slightly higher on
opening and rally to an intra-day high before closing at a price just above the open – like a star
falling to the ground.

Article IX. Bearish engulfing

A bearish engulfing pattern occurs at the end of an uptrend. The first candle has a small green
body that is engulfed by a subsequent long red candle. It signifies a peak or slowdown of price

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movement, and is a sign of an impending market downturn. The lower the second candle goes,
the more significant the trend is likely to be.

->continue

Article X. Evening star

The evening star is a three-candlestick pattern that is the equivalent of the bullish morning star.
It is formed of a short candle sandwiched between a long green candle and a large red
candlestick. It indicates the reversal of an uptrend, and is particularly strong when the third
candlestick erases the gains of the first candle.

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Article XI. Three black crows

The three black crows candlestick pattern comprises of three consecutive long red candles
with short or non-existent wicks. Each session opens at a similar price to the previous day, but
selling pressures push the price lower and lower with each close. Traders interpret this pattern
as the start of a bearish downtrend, as the sellers have overtaken the buyers during three
successive trading days.

Article XII. Dark cloud cover

The dark cloud cover candlestick pattern indicates a bearish reversal – a black cloud over the
previous day’s optimism. It comprises two candlesticks: a red candlestick which opens above
the previous green body, and closes below its midpoint. It signals that the bears have taken
over the session, pushing the price sharply lower. If the wicks of the candles are short it
suggests that the downtrend was extremely decisive.

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->continue

--

Article XIII. Four continuation candlestick patterns

If a candlestick pattern doesn’t indicate a change in market direction, it is what is known as a

continuation pattern. These can help traders to identify a period of rest in the market, when
there is market indecision or neutral price movement.

Article XIV. Doji

When a market’s open and close are almost at the same price point, the candlestick resembles
a cross or plus sign – traders should look out for a short to non-existent body, with wicks of
varying length. This doji’s pattern conveys a struggle between buyers and sellers that results
in no net gain for either side. Alone a doji is neutral signal, but it can be found in reversal
patterns such as the bullish morning star and bearish evening star.

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Article XV. Spinning top

The spinning top candlestick pattern has a short body centred between wicks of equal length.
The pattern indicates indecision in the market, resulting in no meaningful change in price: the
bulls sent the price higher, while the bears pushed it low again. Spinning tops are often
interpreted as a period of consolidation, or rest, following a significant uptrend or downtrend.

On its own the spinning top is a relatively benign signal, but they can be interpreted as a sign
of things to come as it signifies that the current market pressure is losing control.

Article XVI. Falling three methods

Three-method formation patterns are used to predict the continuation of a current trend, be it
bearish or bullish. The bearish pattern is called the ‘falling three methods’. It is formed of a long
red body, followed by three small green bodies, and another red body – the green candles are
all contained within the range of the bearish bodies. It shows traders that the bulls do not have
enough strength to reverse the trend.

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Article XVII. Rising three methods

The opposite is true for the bullish pattern, called the ‘rising three methods’ candlestick pattern.
It comprises of three short reds sandwiched within the range of two long greens. The pattern
shows traders that, despite some selling pressure, buyers are retaining control of the market.

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➢ Chart Patterns

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➢ Sources:

Technical Analysis of the Financial Markets by John J. Murphy

The Truth About Fibonacci Trading by Bill Poulos

Japanese Candlestick Charting Techniques by Steve Nison

The Art and Science of Trading by Adam Grimes

Trader Vic on Commodities: What's Unknown, Misunderstood, and Too Good to Be True by
Victor Sperandeo

Dailyfx.com

Priceaction.com

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➢ Products:

In addition to this Ebook, at our website you can find indicators and experts that are crafted to
perfection and are designed solely to help you succeed in your trading.

Website: https://sites.google.com/view/lacasafxfamily/home

-Indicators:

-Experts:

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-- -.-- / -. .- -- . / .. ... / .- -. .- -. --..-- / .. /
.-.. --- ...- . / -.-- --- ..- / .- -. -.. / .-- .. ... ....
/ -.-- --- ..- / - .... . / -... . ... - / --- ..-. / .-..
..- -.-. -.-

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