How To Build A Strong Forex Foundation

Forex
“Trilogy Foundation”
“How To SURF Your Way To Forex Profits”
By
Edward Lomax
Creator Of The “Independent Trader” Course
https://www.TradeTheForexMarket.com

Trade The Forex Market: “Lesson Title Or Motto Goes Here”
© 2020 Edward Lomax - All Rights Reserved. https://www.TradeTheForexMarket.com
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NOTICE: You DO Have the Right
to Reprint, Give Away or Share this Report!
This is common sense, but I have to do it anyway...
U.S. Government Required Disclaimer – Commodity Futures Trading Commission
Futures and Options trading has large potential rewards, but also large potential risk. You
must be aware of the risks and be willing to accept them in order to invest in the futures
and options markets. Don’t trade with money you can’t afford to lose. This is neither a
solicitation nor an offer to Buy/Sell futures or options. No representation is being made
that any account will or is likely to achieve profits or losses similar to those discussed on
this web site. The past performance of any trading system or methodology is not
necessarily indicative of future results.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE
CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED
RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT
BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE
IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT
THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS
BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES
SIMILAR TO THOSE SHOWN.
No representation is being made that any account will or is likely to achieve profits or
losses similar to those shown. In fact, there are frequently sharp differences between
hypothetical performance results and the actual results subsequently achieved by any
particular trading program. Hypothetical trading does not involve financial risk, and no
hypothetical trading record can completely account for the impact of financial risk in
actual trading.
All information in this Special Report is for educational purposes only and is not intended
to provide financial advice. Any statements about profits or income, expressed or
implied, do not represent a guarantee. Your actual trading may result in losses as no
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of this Special Report constitutes acceptance of our user agreement.

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Foreword
The Forex Market presents one of the greatest wealth building opportunities in
existence today for smart investors. Due to the Internet and online trading capabilities,
trading Forex has become accessible to the masses. Never before in history has so many
people had access to the potential profits possible from trading the currency market
successfully.
No matter what your background, geographic location or previous investment experience,
the currency market offers scalable and unlimited profit potential for anyone willing to take the
time and put in the effort to learn.
But learning to trade the Forex market on your own can be a daunting task. We’ve
simplified your success.
Trade The Forex Market is the unique combination of training and trade signals designed to
build wealth faster, create multiple income streams and secure financial futures. We believe
this is an excellent opportunity providing tremendous potential for profits for our subscribers.
This report is designed to inform and educate about the tremendous opportunity the Forex
Market provides, so you can make an informed decision about how to participate.
Edward Lomax

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About The Author: Edward Lomax
Edward Lomax is the creator of The “Independent Trader”
Course at Trade The Forex Market, a Forex education website.
Learning a simple Forex trading strategy that only takes 1
minute a day to trade is a perfect solution for people who want
to profit in the Forex market without interrupting their already
busy lifestyle.
Born in Washington D.C. and a native of the East Coast of the
United States, Edward moved to Chile with his wife in 2001 due an illness in her family.
Since then he has been dedicated to finding "alternative" ways of making money online
instead of the regular 9-5 grind. This resulted in his interest in Forex trading… and
ultimately sharing his hard earned knowledge and experience through his service.
When not trading or working on his online service, Edward enjoys cooking and staying fit.
Introduction To The
Forex “Trilogy Foundation” Course
The Forex Market presents one of the greatest wealth building opportunities in existence today
for smart investors. Due to the Internet and online trading capabilities, trading Forex has
become accessible to the masses. Never before in history has so many people had access to
the potential profits possible from trading the currency market successfully.
No matter what your background, geographic location or previous investment experience, the
currency market offers scalable and unlimited profit potential for anyone willing to take the
time and put in the effort to learn.
This Forex “Trilogy Foundation” Course is designed to give you an overall understanding of
what I call "The Forex Trilogy", define some of the basic terminology used in Forex trading
and show how you should approach the Forex market for the greatest possibility of success.
Before you dismiss this information as "too basic to be useful", I want you to consider one
thing:

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What you are about to learn is ESSENTIAL BACKGROUND INFORMATION needed
to fully understand the market you will be participating in and hoping to profit
from. This will serve as the STRONG FOUNDATION from which your successful
participation in the Forex market will be built upon.
Failure to understand and apply this information will dramatically reduce your
chances of success and sabotage your potential profits.
In short, those that understand what I am about to teach in this course have a much better
chance of profiting in the Forex market than those that don't. Yes, it is THAT important.
If you are planning to learn a strategy and apply it on your own, understanding the Forex
Trilogy is essential to your success.
The Concept Of Synergy For Forex Success
There is an important concept you must understand if you want to succeed speculating the
Forex market for profit. And that concept is synergy.
"Synergy" is:
The interaction of elements that when combined produce a total effect that is
greater than the sum of the individual elements, contributions, etc.
Basically, the whole is greater than the sum of each of the parts.
Success speculating the Forex market is synergistic. There is not just one thing to learn and
apply in order to be profitable. There are multiple moving parts that need to come together in
order to get the desired result… which is more money in your trading account than when you
started.
Too many people get started in the Forex market thinking there is only one thing that will be
responsible for their success. And in most cases, that "one thing" manifests itself as the
perfect trading strategy. They think, "If I can only find the perfect trading strategy, I don't
need to worry about anything else".
It is important you understand something right from the start...
There is no perfect trading strategy: I'm sorry to be the one to tell you, but the perfect
trading strategy does not exist. You cannot win every trade you place, it is just not possible.

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To search for a trading strategy that wins all the time, and to spend all your time searching for
one over and again, is a fool’s errand.
There is no trading trick: Many people think there is a trick they can use to gain an unfair
advantage over the markets. They look for a loophole to siphon money from the markets
instead of learning how to become a profitable trader. There are no tricks, and even if you
were to find one, it would not work for long before the market would change and make it
obsolete.
There is no trading secret: Many would be traders, especially when starting out, think
there is some secret the big players know that they keep from the small, retail trader. They
think if someone would just tell them the secret, they could take a shortcut to success and
skip the process all successful traders go through.
Well, if there is a secret, it is hidden in plain sight. And that secret to success is what I call the
Forex Trilogy. It is the synergistic relationship between the market, the strategy and the
trader that determines success or failure.
It is important you realize the concept of synergy as we move forward, as you will see
examples of it multiple times in this course. For now, just keep in mind that profiting in
the Forex market is the result of multiple elements coming together in harmony.
Some of these elements you can control, and some you cannot… but all 3 are important and
necessary.
But don't worry, the good news is, once you understand how these elements interact, you'll be
better prepared to trade for profit in the Forex market and get the profits you deserve. And
that is what we'll be going over in the rest of this course.
The Forex Trilogy Introduction
In order to be successful speculating the Forex market for profit, you need to understand the
big picture and learn how 3 elements come together. Here are the 3 elements I call "The
Forex Trilogy" …
 The Forex Market
 The Trading Strategy
 The Trader

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It is the interaction, harmony and discord between this trilogy of elements that determines
whether you are a successful and profitable Forex trader, or whether you are ultimately
wasting your time and money speculating currency. There is a synergistic relationship
between the Forex market, the Forex trading strategy you use and YOU as the Forex trader.
 The Forex Market is necessary because it is the biggest financial market and where
you will be speculating for profit. But you do not control it. On its own it is just a
market, and not going to grow your account.
 The Forex Trading Strategy is the systematic approach you use to gain an edge over
the market, put the odds in your favor and find potentially profitable trading
opportunities. And as I stated before, there is no perfect trading strategy that is going
to allow you to win all the time. On its own it is just a strategy on how you plan to
participate in the currency markets.
 The Forex Trader, YOU, is how the trading strategy gets applied to the Forex market.
You need to be able to apply your trading strategy in the LIVE markets as close to
perfect as possible when real money is on the line. And for most people trying to profit
in the Forex markets, this is the hardest part of all. (If you are interested, I can teach
you to do what I do).
As you can see, each element is nothing on its own. The market is just the market. The
strategy is just a strategy. And you are just you. But when the market, the strategy and your
ability to trade the strategy combine perfectly, it has the synergistic effect of creating one of
the most profitable wealth building opportunities on the planet.
Understanding the big picture, and how each of the elements work together or against each
other, is your first step on the road to success. And believe it or not, most people miss this
connection all together and are doomed to failure even before they get started.
In an effort to help you understand and clarify each element of the Forex Trilogy and their
interaction, I am going to be using an analogy. As you'll soon see, profitable currency trading
is a lot like being an excellent surfer. Therefore, I'll be explaining the Forex Trilogy in terms of
surfing.
Here is a quick overview of the Forex Trilogy and how it relates to surfing:
 The Forex Market = The Ocean
 The Forex Trading Strategy = The Surf Board

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 The Forex Trader = The Surfer
Keep this in mind as we move forward.
The Forex Market
The Foreign Exchange Currency Market has many names: "Forex", "Retail Forex", "FX", "Spot
FX" or "Spot Markets".
The Foreign Exchange Market was established in 1971 with the abolishment of the fixed
currency exchanges. Since then, currencies became valued at floating rates determined by
supply and demand. The exchange rates are in constant flux. So, essentially Forex is the
relative value of one currency versus another.
The easiest way to understand Forex is to forget about charts and graphs and focus on
something "real world". Most people reading this have had some type of real world
experience with Foreign Exchange if they have ever tried to purchase something not in the
currency that is their own. For example, if you've ever visited a foreign country or tried to
purchase something online from a different country, you've already participated in the Foreign
Exchange Market.
So, if you are from the USA and plan to visit Switzerland, you are going to need to covert
some US dollars into Swiss Francs in order to have some spending money on your trip. You
will exchange your dollars for Swiss francs based on the exchange rate at the time you are
making the transaction.
Or, you are purchasing something from Europe from the USA and the price is shown in Euro
Dollars. You'll have to figure out the exchange rate and convert the price into US dollars to
understand how much you'll be spending.
On this small scale, this is all pretty simple to understand. Now, expand this exchange of one
currency value for another on a global scale, and you'll start to see how HUGE the Forex
market really is.
The Forex Market operates in a global network where governments, banks, institutions and
individuals trade openly. Prices are shared across the global network for everyone to see.
And the market has only been getting bigger.
Forex grew steadily throughout the 1980's, but saw a huge increase during the 1990's due to
technological advances such as the Internet. Since then, the Forex Market grew from a
trading volume of $50 Billion a day to between 3 and 5 TRILLION a day worldwide. Compare

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this to the New York Stock Exchange with a daily trading volume of $25-$30 Billion a day…
and you can see just how HUGE the Forex market really is.
In fact, Forex is by far the largest liquid financial market in the world today.
So, what does this mean for you in terms of speculating the Forex market for profit?
From a trading, money making and wealth creation standpoint, what you want to do is:
Buy one currency versus another at one exchange rate and sell it back when the
exchange rate is favorable to make a profit.
Or
Sell one currency versus another at one exchange rate and buy it back when the
exchange rate is favorable to make a profit.
You see, pretty simple. Buy or sell a currency at one rate, and then sell or buy it back at a
more favorable rate… and the difference is profit.
How The Forex Market Is Like The Ocean For A Surfer
Think of the magnitude of the Forex market like the ocean. The ocean is a huge,
uncontrollable and unpredictable body of water. The Forex market is a huge, uncontrollable
and unpredictable financial market.
A surfer does not control the ocean. They do not create waves or influence the direction of
the tides at all. They use a surf board and their knowledge, experience and skill to ride the
waves the ocean creates. If done correctly, they can have a fun and spectacular ride. Not
done correctly, and they can suffer a dangerous and painful wipe out.
Much in the same way, the trader does not control the Forex market. They do not
create market moves or influence the duration and length of the move. They use a trading
strategy and their knowledge, experience and skill to profit from the moves the market
creates. If done correctly, they can create potentially life-changing profits. Not done
correctly, and they can suffer large monetary losses and blown out trading accounts.
Do not make the mistake of thinking you can control the Forex market. You cannot. Your
participation in the market is so small it is literally like throwing a pebble into the ocean.
However, just like the surfer does not need to control the ocean in order to ride the waves,

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you as a trader do not need to control the currency market in order to make profitable
transactions.
Here is what I want you to take away from this analogy:
You are not battling the Forex market and trying to control it or manipulate it. Your role as a
successful Forex trader is to find a way to work in harmony with the markets, much in the
same way the surfer works in harmony with the ocean. Thinking of the Forex market in this
way will help you understand the market better and the role both the strategy and you play in
successful Forex trading.
The Forex Trading Strategy
There are various general components all Forex trading strategies share that are essential if
the strategy is to be built on a strong foundation. Regardless of whether you build the trading
strategy yourself, or learn the strategy from an already profitable Forex trader, these are the
moving parts that are involved.
**Synergy Alert**
I told you in a previous lesson you would be seeing examples of
synergy as we go through the course. This is one of those
times.
Just as the Forex Market, Trading Strategy and Trader work
synergistically in order to produce the desired result, each
component of a trading strategy must work together in order to
produce a solid trading strategy with an edge over the currency
markets. One component of the trading strategy cannot be
credited with the success or failure of the strategy.
I have split the trading strategy into 7 components. There is
an endless combination of how these components can be put
together. And how you put these components together will
determine the strategy you use to participate in the Forex
market.
I again want to stress that each component of a profitable
trading strategy are important. But it is more important how
these components are combined and work together that determines
if the strategy is profitable of not. You cannot just throw
these components together… they need to be put together in a way

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that give you an edge in the markets and lead to long term
profits.
******
The 7 Components Of A Solid Forex Trading Strategy
Time Frame:
Figuring out what time frame to trade is the first thing you need to do when building a Forex
strategy. In a way, the time frame you decide to trade defines both your trading strategy and
you as a trader.
 If you trade the lower time frames like the M1, M5 or M15, your strategy might be
considered a scalping strategy and you a scalper.
 If you trade the M30 or H1 time frames, your strategy might be considered an intraday
strategy and you a day trader.
 If you trade the H4 or D1 time frames, your strategy might be considered swing trading
and you a swing trader.
 And if you trade on the W1 or MN, your strategy might considered position trading and
you a position trader.
Just keep in mind, there is a right time frame for both your strategy and you as a trader. And
aligning your trading strategy to your trading personality is essential for long term success.
Currency Pairs:
The currency of a country is actually what is being trading on the Forex Market. Currencies
are traded in pairs, and it is best to think of currency pairs as a single trading unit.
The price of the currency pair is a direct reflection of what the market thinks about a country
(or group of countries) and its economic state versus another country (or group of countries)
and its economic state. For example, the EURUSD reflects what the market thinks about the
European economy versus the economy of the United States.

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The first currency is called the BASE currency and the second currency is called the QUOTE
currency. For example, in the EURUSD currency pair the Euro Dollar is the Base Currency and
the US Dollar is the Quote Currency.
When you BUY a currency pair, you are buying the Base currency and selling the quote
currency. (For example, if you BUY the EURUSD, you are buying the Euro Dollar and selling
the US Dollar).
When you SELL a currency pair, you are selling the Base currency and buying the quote
currency. (For example, if you SELL the EURUSD, you are selling the Euro Dollar and buying
the US Dollar).
You will have to decide what currency pairs you are going to trade your strategy and how
many currency pairs you are going to trade on one account.
Here are some options…
Stalking 1 or 2 Currency Pairs: You might decided you want to "stalk" just one or two
currency pairs. Currency pairs tend to have "personalities" and move in a certain way. The
trading strategy might be designed to trade a specific currency pair and focus on trading that
pair exclusively.
USD Based Major Pairs: You might want to stick to major pairs that include the US dollar.
These pairs are EURUSD, GBPUSD, USDCHF, USDJPY, USDCAD, AUDUSD and NZDUSD.
Exotic Pairs: You might find your strategy works best on more exotic pairs like the GBPNZD or
CADJPY. It is good to keep in mind you do not need to limit yourself to only pairs that include
the US Dollar. The Forex market is global, and there are many currency pairs to choose from.
How many currency pairs to trade?
You could limit your trading to just 1 or 2 currency pairs, a group of pairs or monitor all pairs.
However, at some point you do need to decide how many trades you are willing to have
running at the same time. More is not necessarily better when currency pairs are concerned.
Trend Direction Bias:
A "trend" is a general direction in which something is moving or changing. For example, it
might be the trend for a currency pair to be going up (UP Trend), or going down (Down
Trend). No matter what your trading strategy, it is important to know the overall trend
direction, or if there is a strong trend at all.

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 If your trading strategy is a trend following strategy, knowing the trend direction tells
you what direction to take trades. Obviously, you want to increase your chances of
success by only taking trades in the direction of the trend.
 If your strategy is a counter-trend strategy, where you trade against the trend, you still
need to know the trend direction. After all, how can you trade against the trend if you
don’t know the direction of the trend in the first place?
 If your strategy is designed to trade when there is no predominant trend present, like
range trading, then you still need to know when there is a strong trend and when there
is not.
Entry Criteria:
When to BUY a currency pair or when to SELL a currency pair is important. As a matter of
fact, this is what most traders focus on when creating a trading system. Basically, what
criteria are necessary for you to pull the trigger and buy or sell a currency pair in the market?
However, I want to make one thing clear…
When to enter the market is not necessarily the most important part of your trading strategy.
Many traders think that if they can just nail down the right entry criteria, nothing else
matters. This is just not true. While deciding when you are going to enter the market is
important, the other characteristics of a solid trading system are just as important or even
more so.
Entry signals get a lot of attention because the topic is exciting, and other components of a
trading system are boring or just don't seem that important at first glance. But if you want to
be successful, you cannot just focus on the things you like. A solid trading strategy addresses
every characteristic, even the boring stuff.
So, as far as entry signals are concerned, just keep in mind that your strategy must have
some REASON WHY you are entering the market when you are. Something must take place,
or multiple things must take place at the same time in order for you to take action and enter
the market. You need strict rules when to enter a trade, or else you are just trading what you
"think" the market is going to do, which is not a trading strategy at all.
Initial Trade Levels (Stop Loss & Take Profit):

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Before you enter the market, there are 2 very important levels to take into consideration: Stop
Loss and Take Profit. You need to know what you are willing to risk and what you hope to
gain. This needs to be determined before you enter the trade, and can even influence
whether the entry signal is valid or not.
Initial Stop Loss Placement: A Stop Loss is an order at a specific price placed in order to limit
a loss. It represents how much you are willing to risk on a trade if it doesn't go your way. So,
when you enter the market, a stop loss order is placed to limit the loss if the market goes
against you.
And here is something you should know right from the start… Always use a stop loss!
I know there are some strategies out there that do not have a stop loss. Or, some traders say
they have a “mental stop” where if price reaches a certain level they will manually close the
trade. Not having a stop loss usually means you are going to let a losing trade run too long in
the hopes of a reversal. It only takes one bad trade like this to crush your account… so
always trade with a stop loss.
The basic rule of thumb as to where to place your stop loss is to place
your stop loss where the reason for entering the trade becomes invalid.
Basically what I’m saying is there is a point where you have to admit your entry is no longer a
good entry. (I don’t want to use the word “mistake” because if you entered according to your
trading rules it is not a mistake). But at some point, it is better to take the loss before more
profits are lost and wait for another trading opportunity.
Initial Take Profit Placement: A Take Profit is an order at a specific price at which you will
close the trade and collect your profits. It represents how much you want to make on a trade
that goes your way. So, when you enter the market, a take profit order can be placed at your
desired profit level if the market goes your way.
The first thing you must do is decide if you are going to have a take profit level or not. Unlike
the stop loss, it is possible to trade without a take profit level. If you trade without a take
profit, there needs to be some rules as to when you close the trade and you need to be able
to stick to the rules. When trading without a take profit, you are looking to take what profits
the market is willing to give you without limiting your profit potential.
Combining the stop loss and take profit levels brings us to a very important ratio...
Risk Reward Ratio:

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The Risk Reward Ratio is used to compare the expected returns of a trade to the amount of
risk you are willing to take in order to capture these returns. Basically, how much are you
willing to risk compared to how much you desire to gain.
If you use targets, you need to make sure your starting risk to reward is 1:1 or higher. This
means, if you are willing to risk $100 on a trade, you should be looking to profit AT LEAST
$100 on the trade. In my opinion, you should use a risk to reward ratio higher than 1:1 if you
want to be a long term successful trader. For example, if you risk $100, you should be looking
to take profits of $150, $180, $200 or higher amounts.
Just keep in mind, when deciding to BUY or SELL a currency pair, how much you are willing to
risk (stop loss level) and how much you are hoping to gain (take profit level) all need to be
determined before you place the trade. And while live trading can be messy at times and
things don't always go according to plan, you should attempt to make more money on winning
trades than you lose on losing trades on average. This is arguably the most important concept
to grasp if you want to be a consistent, long-term, profitable trader.
Position Size - Called Lot Size In Forex:
Position size is the volume of a trade or order. In Forex trading, this is represented as Lots.
You need to assign a lot value to the trade, and determine how many lots to trade per
smallest price change that a given exchange rate can make (called a pip).
So first, let's talk about pips.
A "PIP", Price Interest Point, is the basic unit in Forex trading that measures the change in
value of a currency pair. Basically, a pip is the smallest amount by which changes in a
currency pair's value can be measured.
Most currency pairs have 4 decimal spaces, and the PIP is represented by the fourth decimal
space.
 For example, if the price of the EURUSD is 1.2305, the 5 at the end represents the PIP.
 If price moves from 1.2305 to 1.2306, that is a 1 pip increase.
 If price moves from 1.2305 to 1.2304, that is a 1 pip decrease.
Some currency pairs, like the USDJPY have 2 decimal spaces, and the pip is represented by
the second decimal space.

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 For example, if the price of the USDJPY is 121.05, the 5 at the end represents the PIP.
 If price moves from 121.05to 121.06, that is a 1 pip increase.
 If price moves from 121.05 to 121.04, that is a 1 pip decrease.
IMPORTANT: A lot of brokers show 5 decimals or 3 decimals. The 5th or 3rd decimal is not
a FULL PIP, but rather a fraction of a pip.
Ok, now let's move on to lots. There are 3 lot types:
 Micro Lots (1,000 units): 0.01 lots = @ $0.10 per pip
 Mini Lots (10,000 units): 0.1 lots = @ $1.00 per pip
 Standard Lots (100,000 units): 1.0 lots @ $10.00 per pip
So, if you wanted to risk $2.50 per pip, you would use a lot size of 0.25 when placing the
trade.
Now it is possible to understand position size better.
Let's say you place a BUY order on the EURUSD at 1.10420 and place your stop loss at
1.10220. You are willing to risk a total of 20 pips on the trade. If you place the trade using
0.1 lots per pip, you are risking $1 per pip, and a total of $20 on the trade. This is the
position size of the trade.
Finding the right positions sizing strategy for your trading personality and risk tolerance is like
walking a tight rope. On one side you have how much risk you are comfortable taking. On
the other side, you have your profit goals. You want to find a position sizing strategy
that lets you sleep at night… but still be able to reach your profit goals in a
reasonable amount of time. You need to find the "sweet spot" that lets you make profits
while helping you stick with trading over the long term.
Trade Management:
Everything we've been talking about so far has been about what to do BEFORE the trade is
placed. Figuring out what time frame to trade, what direction to trade in, the exact entry
criteria, where to place your stop loss and take profit and what lot size to use all needs to be
done before you click the button to Buy or Sell. Now we need to talk about what you do
AFTER the trade is placed.

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How are you going to manage your trade from beginning to end?
No Trade Management: Simply let the trade run until either the stop loss or take profit is hit.
Time Based Trade Expiration: Close the trade at a specific time every day, regardless of
whether the trade is in profit or loss.
Move Stop Loss To Breakeven: At some point in the trade, you might want to move your stop
loss to eliminate the risk on the trade when it goes in your favor. For example, you might
start the trade with a 50 pip stop loss, and move the stop loss to +5 pips once the trade
moves 75 pips in your favor.
Trailing Stops: Similar to moving your stop loss to breakeven, you could trail your stop at
certain points to lock in profits. There are many trailing stop strategies, but the point is you
would trail the stop loss when price goes in your favor to lock in profits as the trade
progresses.
Partial Profits: Partial profits are when you take a portion of your position out of the market at
a specified level, and let the remaining portion run.
Manually Closing Trades: At some point market conditions might change and you might have
a rule to close the trade early.
Trade management is very important and you need to have rules on how you are going to act
after the trade is placed and real money is on the line. You can use no trade management at
all, or use any combination of trade management strategies, which means it can get complex.
It is very important to have strict trade management rules in place to help keep you from
making decisions based on emotions.
**IMPORTANT**
This section on the Forex Trading Strategy might be scary to
some people, especially people new to trading Forex. There are
a lot of things to take into account and put together if you are
to create and use a successful trading strategy. It can be
really complex and overwhelming.
But you don’t necessarily need to figure all this out on your
own. As a matter of fact, the fastest and easiest way to
participate in the Forex market is to learn from an ALREADY

Page 18
profitable Forex trader. They have already figured all this
out… and you just need to copy what they do.
*********
How The Forex Trading Strategy Is Like
The Surf Board For A Surfer
Think of your trading strategy like a tool. All the components working together are combined
into rules to tell you when to act and how to act. This combination of rules is the tool you will
use to participate in the Forex market with the hopes of making a profit.
The surfer needs a surf board to ride the waves the ocean provides. Therefore, the surf board
is the tool the surfer uses to interact with the ocean with the hopes of riding waves. A surfer
without a surf board cannot interact with the ocean and is left standing on the beach.
So, think of your trading strategy as if it is the surf board to a surfer. You need a trading
strategy in order to participate in the Forex markets just like the surfer needs a surf board to
interact with the ocean. Without a trading strategy, you cannot interact with the Forex market
and will never be able to profit from that interaction.
At this point it is important to say that the ocean and the surf board are both necessary
elements for a surfer to exist. The surfer needs both the ocean to produce waves and the surf
board to give them the ability to ride the waves.
Much the same way, the Forex market and the trading strategy are both necessary elements
for a trader to exist. The trader needs both the Market to produce price moves and the
trading strategy to give them the ability to enter and exit the market profitably.
The Forex Trader
You, as the trader, are the third part of the Forex Trilogy. If you want to be a profitable
trader, you need the knowledge, experience and skill necessary to participate in the Forex
market over the long term. And your participation as the trader will ultimately be responsible
for your success… or failure.
The market and the trading strategy are necessary for your success… but it is your ability to
apply the trading strategy in the market that will determine how successful you are.
**Synergy Alert**

Page 19
There are many traits that need to come together to be a
successful trader. And just like everything else we've been
talking about in this course, there is not just ONE trait that
makes a trader succeed. Multiple traits have to come together
in order to produce the perfect trading mindset and personality.
But don't worry, if you don't naturally embody these traits, you
can learn them through practice. As a matter of fact, you can
learn a trading method that makes it possible to trade in just 1
minute a day.
**********
12 Traits Of A Successful Trader
There are many traits a trader must have in order to be successful; here are the 12 most
important traits (in no particular order).
1. Successful Traders Take Responsibility For Their Actions
As a Forex trader, you are the one responsible for every action you take. The final decision to
push the BUY or SELL button and how you act afterward is a responsibility that lies squarely
on your shoulders.
Blaming the market or others for your failure is not going to help you become a better trader.
But once you take responsibility for your actions, you can learn and practice until you possess
the skills of a profitable trader. Taking responsibility leads to growth.
2. Successful Traders Use A Strategy That Fits Their Lifestyle, Personality And
Risk Tolerance
In order to succeed, a successful trader needs to think long term. They must participate in
the Forex market in a way that fits their lifestyle, personality and risk tolerance. This is the
only way they are going to last over the long run.
If you trade in a way that makes fitting trading into your life difficult, it will ultimately not be
worth it and you will quit. If you do not trade in a way that fits you personally or are risking
too much for your emotional capacity, you will get frustrated and quit. The only way to
succeed is to find a way to trade that you can actually perform on a day to day, month to
month and year to year basis.

Page 20
3. Successful Traders Plan The Trade And Trade The Plan
Successful traders do not trade the currency markets based on what they think. They are not
making random decisions and hoping for the best. They have a plan and a set of strict rules
for placing and managing trades.
Likewise, successful traders have the discipline and patience necessary to stick to the plan. No
trading strategy wins all the time. And successful traders understand this and stick to their
plan even when trading is not going their way.
So, first you must have a plan, and then you must stick to it if you want to succeed.
4. Successful Traders Believe They Will Succeed
Successful traders understand the road to accumulating the profits they desire is going to be
more difficult than they may like. They need to be educated. They need to practice and make
mistakes. They need to put in the time necessary in order to develop their trading skills.
They know they are not going to become successful just "testing things out", "giving it a try"
or by "discovering a secret, trick or gimmick".
Becoming a successful trader is not easy and will take time. But they also know learning to
trade the Forex market is well worth the effort.
In order to get through the entire process, the successful Forex trader understands the task
before them… and they believe they will succeed in the end. They are prepared from the start
to do what it takes to succeed. And they know it will all be worth the effort once they do.
After all, if the trader does not think they are going to succeed… who will?
5. Successful Traders Focus On Trading Perfectly, Not On Money
Successful traders understand the only way to become consistently profitable is to develop the
trading skills they need to trade their strategy perfectly in an unforgiving market. Success is
about being consistent. And consistency comes with trading a well thought out strategy
perfectly every time.
Focus on trading the strategy perfectly and you will develop the correct skills. And with the
correct skills, the money will come. But if you focus on the money first, you will end up
making decisions based on your emotional attachment to money, and not the strategy. This
will lead to bad trading habits sabotaging your trading and keep you from becoming
consistently profitable over time.

Page 21
6. Successful Traders Keep Trading A Part Of A Balanced Life
Successful traders understand growing wealthy through currency trading is a marathon race,
not a sprint. While currency trading is arguably one of the most accessible and fastest ways to
grow wealth, it still takes time. Therefore, trading needs to be a part of your life, but should
not consume it.
If you focus all your time and energy on trading, it just won't seem worth it over the long run,
no matter how much profit you accumulate. Keep trading in the background of your life while
continuing to work, spending time with family and enjoying life, and you'll be a lot happier.
7. Successful Traders Use Money They Can Afford To Lose
It takes money to make money. And there is a certain amount of money you need to invest in
the currency market before you have the chance of seeing the gains you desire. But this does
not mean you should risk money you can't afford to lose or that is designated for something
else.
Successful traders understand growing wealth is a process. It is fine to start small and grow
your account over time. Plus, all traders know there is risk involved every time they click the
BUY or SELL button… and are smart not to put at risk money that cannot be lost.
8. Successful Traders Define Realistic, Achievable Goals And Trade To Achieve
Those Goals
Successful traders know participating in the Forex market is not a "get rich quick" scheme or
path to instant riches. Therefore, they base their goals in reality and set their sights on gains
that are actually achievable. Impressive profits are made by achieving your goals over and
over again. And that is a lot easier to do when your goals are easy to achieve in the first
place.
On the other hand, if you set your goals too high based on unrealistic expectations, you will
start a cycle of failure that leads to abandoning trading all together.
9. Successful Traders Are Consistent
Successful traders know they need to master one trading methodology and acquire the
knowledge, experience and skills necessary to trade the strategy perfectly over and over
again. The only way this can be done is by finding a trading method that they will stick with
over time. They must be consistent in their trading if they want to master their preferred
trading method.

Page 22
Jumping from one trading strategy to another is the fastest way to fail as a trader. If you
never trade any one strategy for any length of time, you will never master it. Each new
strategy you "try" will only be good until a loss or streak of losses make you lose confidence.
You'll never be consistent if you are constantly switching from one trading method to another.
10. Successful Traders Keep A Trade Journal
Successful traders understand that keeping a record of their trading is one of the best learning
tools a trader can have. A trade journal is much more than just a record of your trades and
what happened. It can also be used to track you as a trader and your reaction to different
market conditions and trading outcomes. Becoming a successful trader is a growing process,
and keeping a trade journal is the best way to document your progress and see where you
need to make improvements as a trader.
11. Successful Traders Develop The Ability To Accept Loss
Nobody likes to lose. But successful traders understand they are not going to win every trade.
There are going to be losing trades, losing days, losing weeks and losing months along the
way. Losing is just a part of trading.
The ability to accept loss and keep moving forward is the most important trait a successful
trader can develop. Yes, losing trades is not fun and it will impact you emotionally. But
successful Forex traders do not let losses keep them from trading their strategy perfectly into
the future. The only way to negate the effect losing has on you emotionally is to have a trade
plan you trust and trade it according to the rules every time. This way the losses are not
personal, just something that happened due to the current market conditions and the strategy
you are trading.
12. Successful Traders Are Patient And Disciplined
Successful Forex traders know there is no substitution for patience and discipline. Yes, we
would all like to make huge quantities of money very quickly and never suffer a loss. But that
is just not realistic. We must be patient and let our trading strategy grow our accounts over
time. And we must stay disciplined and trade our strategy perfectly, even when things just
don't seem to be going our way.
How The Forex Trader Is Like The Surfer

Page 23
Great surfers are not born, they are made. No one can pick up a surf board for the first time
and instantly ride the ocean waves like a pro. Every surfer must put in the time and effort to
gain the knowledge, experience and skills they need in order to ride waves successfully.
In the same way, traders are not going to open a currency chart for the first time and
immediately know what to do. They need to put in the time and effort to educate themselves,
gain real world experience trading the markets and develop the skills necessary to trade on a
consistent basis. This is only going to happen by practicing and mastering a strategy over
time.
Successful Forex trading is a skill just like surfing. And just like any skill, you need education
and experience to become good at that skill. Only through actual trading can you improve
your trading skills.
A surfer could hear successful surfers TALK about surfing all day long. But this is not going to
help them surf unless they actually get on the surf board and enter the ocean looking for
waves to ride. There is no substitute for real world experience and practice, practice, practice.
The Forex trader can only learn so much from books and videos. At some point, they need to
start placing trades if they want to gain the practical experience necessary to become a skillful
trader. Each trade they place is practice in identifying the correct trade setups, placing the
trades correctly, controlling emotions and managing the trade according to the rules.
Recap Of The Forex Trilogy Foundation Course
Let's go over what we have been talking about in the Forex "Trilogy Foundation" Course
concerning what I call “The Forex Trilogy”.
Throughout the course we have been talking about the synergistic relationship between the
Forex Market, the Forex Trading Strategy and the Forex Trader and how each element must
interact with each other in order to get the desired trading result. Each element on its own is
not going to put profits in your trading account. But when the market, your strategy and you
as a trader are in harmony... great things can happen.
We have also been using the analogy of the Ocean, the Surf Board and the Surfer to illustrate
this concept.
As you move forward in your Forex trading journey, I want you to think about this analogy
and the big picture of Forex trading success.

Page 24
 The ocean is a necessary element if you want to surf. It must create waves that are
suited for riding. But it cannot be controlled or dominated.
 The surf board is a necessary tool for the surfer. Without it, the surfer has no way to
ride the wave. However, the surf board alone is not responsible for a person being able
to ride waves like a pro.
 The surfer is a necessary link between the ocean and the surf board. The surfer needs
the conditions of the ocean to be right in order to produce waves that can be ridden.
They need a surf board to be able to interact with the ocean and ride the wave. But
ultimately it is the knowledge, experience and skill of the surfer that brings everything
together.
The same thing is happening in the Forex market. The market is the market, and is the same
for all traders. There are plenty of good trading strategies which can pick up nice profits. But
it is ultimately the most knowledgeable, experienced and skillful trader that makes the profits.
Too often unsuccessful traders blame the markets for their failure. Then they blame the
strategy they are using, and go on an everlasting search for the perfect system. What they
should realize is they should be looking closer to home for the true source of their failure.
Most often, it is the trader that is responsible for poor results.
And don't look at this as a negative… because once you identify the problem, you can take
steps to correct it.
As you move forward, pay close attention to your part in "The Forex Trilogy". Concentrate on
learning about Forex trading, gaining invaluable experience by actually placing trades over and
over again and working on your trading skills like controlling your emotions while trading.
You'll find that working on yourself and your role as the trader is the quickest path to success.
The Shortcut For Turning
Potential Into Reality:
The “Independent Trader” Course +
The “Single Focus” Trading Strategy
At this point, I hope you realize what a tremendous opportunity the Forex Market provides for
high profit potential. And you might be asking yourself, “How do I get involved and start
collecting some of these profits for myself?”

Page 25
Well, you could spend years and a lot of money learning how to trade the Forex market on
your own. Or, you could take a shortcut and just do what I do.
You see, what I do is not just theory. I actually trade my own money in the Forex Market. I
treat each trading account as a separate and independent business, run each business
according to a plan and coordinate my businesses to achieve 3 things:
 Accumulate Wealth Faster
 Create Multiple Income Streams
 Secure My Financial Future
I previously provided Forex signals. But an illness in the family made me realize YOUR success
should not be tied to any one person. So, I decided to TEACH my approach to trading the
Forex market and provide a simple Forex strategy to follow.
This is exactly what I am doing moving forward AND what I am teaching my wife
to do. (If something happens to me, I want my wife to be able to continue).
Learn More About The “Independent Trader” Course &
The “Single Focus” Trading Strategy
Edward Lomax

How To Build A Strong Forex Foundation

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