g0fit9ntSE

1. Introduction
2. fihat is smart money concept?
3. flhat is market structure?
4. To de a smart money trader (SMC) you will here the names...
5. Order flow
é. How to mark order flow?
7. flhat is Break of structure?
8. fihat is a change of character or CHoCH?
9. xhat is liquidity?
10. During which session does the liquidity hunt take place?
11. flhat is a liquidity hunt and stop hunt?
12. ¥hat an inducement?
13. flhat are the best sessions to trade?
14. ¥hat is Supply and Demand?
15. ¥hat is balance and imbalance?
16. flhat is order #lock?
17. Valid order blocks
18. Premium and discounted areas
19. Fibonacci number
20. How to use Fibonacci
21. Valid and invalid order blocks
22. How to identify Valid and invalid pull#ack?
23. Risk management

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 24. Fundamental news
25. Time frames for different traders
2ó. Time frames for diferent traders
27. To do list óefore placing any trade
28. Session traders check list:
29. Top-down before entry example
30. Complete step by step strategy
31. conclusion

lfltf0dU¢tÏ0fl

The FOREXSOM SMC guide is a comprehensive guide to insti-

tutional trading, with a focus on the use of the smart money
trading concept as the main component of the trading
strat- egy. This guide covers various topics related to trading,
such as how to read the price action on charts, understanding
how and why certain zones are formed, and how to create
your own system around these concepts.

One of the key elements of the guide is learning how to

iden- tify and enter trades with extreme accuracy, using the
smart money concept as a foundation. This involves
understanding how to read the price action and interpret
what is happening

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on the chart, as well as identifying key levels of support and
resistance.

Additionally, the guide emphasizes the importance of devel-

oping a trading system that is tailored to your
individual needs and goals. This includes understanding
that not all zones that are printed on the chart can be
entered from, and that creating a system that works for
you will take time and effort.

Overall, the FOREXSOM SMC guide aims to provide

readers with a deeper understanding of how the financial
markets operate and help them level up their trading
education. It en- courages readers to give themselves the
time and effort needed to develop their trading skills and
understand the concepts covered in the guide.

The information contained in this eBook on forex

trading is for educational and informational pur-
poses only. The content is not intended to be a sub-
stitute for professional financial advice or guidance.
Trading in foreign exchange markets involves a

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significant level of risk and is not suitable for
every- one. The author and publisher of this
eBook, as well as Forexsom, are not responsible
for any losses, damages, or other
consequences that may arise from the use of the
information in this eBook. Read- ers should
consult with a licensed financial advisor or other
qualified professional before making any in-
vestment decisions. The information in this eBook is
subject to change without notice and the author, pub-
lisher, and Forexsom do not guarantee its
accuracy or completeness. Trading in forex
markets involves complex financial instruments
and readers are ad- vised to fully understand the
risks before investing any capital.

¥/hat is smart money concept:

The smart money concept is a theory that states
that certain market participants, such as
institutional in- vestors, have more information and
resources than the average trader. These

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participants are called

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 smart money because they are thought to have
a better understanding of the market and make
more informed trades. Traders who use this
concept in their strategy try to identify the trades
of these insti- tutional investors and use them as
a guide for their own trades. This can be done by
analyzing market data such as trading volume
and order flow, and by studying the market s
price action. By following the smart money, traders
hope to gain insight into where the market is
headed and make trades that align with
the institutional investors positions. In the context of
the Forex markets smart money refers to large in-
stitutional traders and market makers who have
ac- cess to sophisticated tools and a deep
understanding of market dynamics. These traders
are thought to have an edge over retail traders and
to move mar- kets in predictable ways. Observing the
actions of smart money is a popular trading strategy,
with the idea being that following their trades can
lead to more profitable decisions. The concept of
smart money is based on the idea that these large
traders have
access to more information and a better understanding of
market conditions, and therefore make better trades.
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¥/hat is a market structure:
The market structure is a crucial aspect of the forex
market. It refers to the way in which prices move and
change over time. In the forex market, the structure
is fractal, meaning that it is similar across different
timeframes.

The market structure is composed of four basic

movements: higher high (HH), higher low (HL), lower
high (LH), and lower low (LL). These are the swing
points in the market and they are used to identify
trends. The market is considered to be in a range
when it creates equal highs (EH) and equal lows
(EL).

There are three main trends in the market:

bullish, bearish, and sideways. A bullish trend is
character- ized by higher highs and higher lows and
it continues until a lower low is made by the
price. The trend starts to weaken after it fails to
create a new high. A bearish trend is
characterized by lower highs and lower lows
and it continues until the price fails to create a

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new low. A sideways trend, also known as a

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consolidation trend, is characterized by equal highs
and lows and the market remains in this state until it
breaks out of the range.

As we can see, the market structure is a key

element in understanding the forex market and it is
important to be able to identify the different trends
and move- ments in order to make informed trades.

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 This is an illustration of a simple market structure:
FOREXSOM pWtsbed on TradingView.com, Feb 17, 2023 20:44 UTC-4
U.S. Oottar / Canadian Dollar, 1W, FOREX.com OJ .32187 HJ.32800 LV .30666 C1.31IAT9 -0.01178 (-0.89S)

DOWHTRE ID IS
Wf EJ'4TIME PRfC6

2018
May Sep 2019 May Sep 2O2O May 2021 May
TradingView

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 Uptrend market structure an a live chart:
FORL^1O/it published on TradingVie•‘ .com. Feb 17. 2023 20:52 UTC -4

Jul
Oct 2018 Apr J ul Oct 2019 Apr
I'm' TradingVie›’z

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 Downtrend market structure an a live chart:
FOREJ‘'SOM published on TradingVie••x. com. Feb 17. 202 3 20:58 UTC -4

U.S. Dollar I Canadian Dollar. 1\V. FOREST.com O 1. ° 2 187 H 1. 12850 L1. 30d88 C 1. * 1005 —0.0 1178 (—0.89--)

Oct
2018 Jul Oct 20 19 Apr
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 Sideways market structure live chart:
FOREXSOM pcsDtished on TwcfingVi . corrs. FeD 17', 2023 21:O4 LfTC -4

1 h, FOREX.co•-rs O1. 36O1 5 HI . 3' •108 LI. 3588 3 C 1. 36070 +O.US 5

2B 31 2O19 09:OO 3

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 Complex market structure example:
FOREXSOM pubtished on TradingView.com, Feb 17, 2023 2t:21 UTC-4

U.S. Oottar / Canadian Dot(ar, 1h, F0REX.com 01.347ó9 H1.34775 LI .34ó93 C1.3470ó -0.0tXÏ63 (—0.05S)

— BOS —.

BOS
—

BOS
—

BOS —

BOS -

3 7 8
10 13 14

IV TradingView

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Ta 6e a smart money trader (SMC) you will here the terms
6elaw:
• Bos= break of structure
• Choch= change of character
• Order flow= overall trend
• OB= order block
• Liuidity= stop hunt
• FVG= imbalance
• IDM= inducement
• Supply and demand= buyers and sellers

what is an Order flow?

Order flow in Forex refers to the number of buyers
and sellers entering the market to trade a currency.
It shows the supply and demand for that currency,
and can help traders understand market sentiment
and make informed trading decisions. For example,
if there are more buyers than sellers, demand for the
currency is high, and its price may go up. If there are

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more sellers than buyers, demand is low and the
price may go down. Traders use order flow analysis
to monitor the market and make educated
trades based on this information.

External & internal order flow: example 1

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 Downtrend external and internal arderflaw: example 2
F0kD20/J pub(ished on Tradin‹xi‹.‹.‹ e, reb 05. 702J IS:53 UTC-6

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 Uptrend external and internal order flow example 2
FORDGOA published on TradingView.com, Feb 05, 2073 l6:03 UTC-6

New Zealand Dollar / U.S. Dollar, 4h, IC//\ Q.â0508 H0.â059I L0.â0361 t0.â0485 -0.0021 (-0.04*}

UPTREñO OROER
FL0'i7I

Oct Oec
l0l2 Feb Apr Jun Jut Sep

19 TradingVie•

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 Haw to mark uptrend order flaw? Example 3
FOREXSOM pubtished on TradingViev•.com, Feb 17, 2023 0\: 19 UTC-4

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UPTReao oeoEn rLow

BOS

íií
1ó )5:00 23 26 Feb 1:00 13 )5:00

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 How to Example 4: mark the entire pull6ack, price will mit-
igate or retrace back to the box
FOREXSOM pub(ished on TradingView.com, Feb 12, 2023 J9:45 UTC-6

West Texas 0i(, 1D, OANDA 075.706 H79.szo Lz8.797 C78. 982 -0.724 (-0.s1'<j

BOS

BO

price has to retrace to the

Unmittgated Order Flow

Mttigatad Ordw Flow

Feb Jut
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 Haw to mark Dawntrend arder flaw? Example 5

FOREXSOM pubtished on TradJngViev'*.com. Feb 17, 2023 0t :2t UTC-4

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BOS

BOS

16 15:00 23 2ó Feb 6 13
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 Mark the oppasite af the dawntrend: example 6
FORDtSOA published on TradingYiew.com, Feb 12, 2023 19:49 UTC-6

West Texas Oil, 1D, OANDA 079.70ô H79.9J0 L78.797 C78.922 -0.784 (-0.98’ j

Miôgatad Order Flow

price hu to retrace to
the Unmitigated Order
Flow

BOS

BOS

Feô
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flaw to mark? To identify the order flow of spe-
cific market you have I identify the overall
direction of the market, for example if the
price is indication uptrend mark the oppo-
site of every up move after break of struc-
ture and for a down downtrend mark the op-
posite of the down move after the break of
structure.

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¥/hat is âreak of structure or â0ST
II
In Forex, BOS likely refers to a Breakout of Struc-
ture. A Breakout of Structure is a term used to de-
scribe a situation in which a currency pair or other
financial instrument breaks out of a well-defined
price range or pattern, potentially signaling a change
in trend. Traders often use chart patterns and tech-
nical analysis to identify areas of support and
re- sistance, which can indicate when a
Breakout of Structure is likely to occur. However,
Breakouts can also be unpredictable and can
result in significant price moves, so it is
important to carefully manage risk when trading
in these situations.

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 Uptrend and dawntrend break of structure
FOREXSOM pubtishe<I on TradingView.com, Feb 17, 2023 2 J : 33 UTC-4
U.S. Dotlar / Canadian Dottar. h, FOREX.com 01.34769 HI.34775 LI . 3dó93 Cf ..3e706 -O.0tXïó 3 t—0.05.• )

—BOS—

BOS

I•tL BOS —

BOS

BOS —

3 7
10 33 J4
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 Live and illustration of uptrend â0S
FORE*30//t published on TradingVie .com. Feb 18. 202 17:id UTC-4

British Pound / U.S. Dollar. I D. FORES.com 01. ISSM H T . T5888 L I . 495 C . 15 1 5 -0. ñ0J JS {-0.25':

BOS

BOS —

HL

BOS

BOS

BOS Park the deep HL , HH BOS

and B0S,s

HL

tr
Apr I›'iay Jun Jul Aug Sep Oct flOv Dec
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 Live chart and illustratian of a dawntrend ś0S
F08D20¥ published on TradingViev/.com, Feb 18, 207J l7:43 ŁITC-4

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¥/hat is a change of character or ChoCHT
In forex trading, the term "choch" refers to a sudden
change in the behavior or direction of a currency
pair's price action. This change can be identified by
breaking the previous high (H) or low (L) levels and
indicates a shift in market sentiment.

For example, if a currency pair has been steadily ris-

ing in price and then suddenly drops, breaking its
previous high, this could be considered a CHoCH.
This could mean that the upward trend has ended
and the market is now moving in a different
direction. Traders may use this information to adjust
their trad- ing strategies.

It's important to remember that CHoCH is just one

aspect of forex trading and should not be relied on
completely. Other factors such as economic data re-
leases and geopolitical events also play a role in the
market. It's best to use a comprehensive trading
strategy that takes multiple factors into account, ra-
ther than relying solely on CHoCH.

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In summary, understanding the concept of CHoCH
can be a useful tool for forex traders, but it s im-
portant to use it in conjunction with other factors to
make informed trading decisions.

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 Bullish change or character example 1
FOREXSOM published on TradingViev'x.com, Feb 18, 2023 18:58 UTC-4

British Pound / U.S. Dollar, 1 D, FOREX.com 0 ! . I 5d58. H \. 15^8g LI . T4Sd 1 C 1. T 5 I : S -0.00s JS \—0.29'. J

. BOS

BOS HoCH

May Jun Ju( Aug Sep Oct

No
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 bearish change of character example 2
FOREXSOM published on Tradi'ngView.com, Feb 18. 2023 18:55 UTC-4

British Pound / U.S. Dot(ar, 1D, FOREX.com 0 I . 15454 HI . 5888 LI. 14961 CI.15115 —0.00335 (—0.2 )

BOS

LL BOS

LL

May
Jun Jut Aug Oct
IV TradingView

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For a change of character to be valid it
has to take out previous LH in a
downtrend and previous HL in uptrend it
simply means re- versal or change of
direction.

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 Complex change of character example 3
FOR SO/A pcJbtished on Tra<tingVie •x. corn . FeD 17', 2O24 2 1: 59 LfTC -4

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 Live chart example 1: downtrend CflaCfl

FO8EtSOM puLlisledon TadingYi¢ .com, Feb TO, 202a 01:IB UTC-4

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 Live chart example 2: uptrend CHoCH
FOREGOlpvbikeoo TagngVcv‹om,Fcb1â,Z0ZlB:UTC.4

B0t

CHoCH

B0t B0f

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Certainly! Understanding the concept of liquidity is
important for anyone looking to participate in the

In finance, liquidity refers to the ease with which an

asset can be converted into cash without affecting
its market price. In other words, it is a measure of
the ability of an asset to be sold quickly and at its fair
market value.

In the forex market, liquidity is a crucial factor that

affects the pricing efficiency and the speed of execu-
tion for trades. A highly liquid market, such as the
forex market, allows for the buying and selling of
currencies with minimal impact on their exchange
rate. This is because there are a large number of
participants in the forex market, trading 24 hours a
day and 5 days a week, providing constant demand
and supply for currencies.

However, it s important to note that the liquidity of a

currency pair can vary depending on various factors,

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such as the time of day, economic events, and market
sentiment. For instance, during times of
economic uncertainty or major news releases, the
liquidity of a currency pair may temporarily
decrease as traders become more cautious and
reduce their trading ac- tivity.
In conclusion, understanding the concept of liquidity
is crucial for forex traders as it can impact the ease
and cost of executing trades in the market. A deep
understanding of liquidity and its determinants can
help traders make informed decisions and navigate
the forex market more effectively.

Liquidity hunt in forex is the search for currencies

with high liquidity to execute trades with minimal
price impact. Stop hunt is a strategy aimed at trig-
gering stop-loss orders to cause traders to sell as-
sets and drive down the price, allowing the
market participant to buy the asset at a lower
price. Both strategies are used in the forex
market, but they are
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distinct and have different implications for traders
and investors. It s important to understand the dif-
ferences between these strategies in order to make
informed decisions in forex trading.

During which session does the liquidity hunt take placeT

Liquidity hunting in forex is when traders attempt
to trigger stop loss orders or create price
movements by entering large orders. It can
happen in any ses- sion, but is more likely during
times of lower liquidity, such as the Asian session.
It s important for traders to be aware of the
possibility of liquidity hunting and adjust their
trading plans accordingly.

¥hat are the dest sessions to trade?

The London and New York sessions are
considered the best sessions to trade forex
because they have the highest trading volume
and are the most active. During these sessions,
there is increased liquidity and volatility, which

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can provide more trading

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opportunities for traders. The London session typ-
ically starts at 8:00 AM GMT and ends at 4:00 PM
GMT, while the New York session starts at 1:00 PM
GMT and ends at 9:00 PM GMT.

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 Uptrend liquidity hunt: example 1
FOREXSOM published on TradingView.com, Feb 12, 2023 22:26 UTC-4

West Texas Oit, 4h, OANDA 079.077 H79. J67 L79.027 C79.032 —0.045 (-0.06 .)

After a confirme'd break of strtzcttzre

institutions will gugosfully create
« fiquiaity to f «J tn»ir

BOS

19 26
2023 16
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 Liquidity grad defare reversal: example 2

FOfiDSQt pdXisled on TradingYicw.cv, Feb 10, 2023 I¥I:IB UTC-4

U.f. fbtlar / Japanese Yefi, XI, F0RQ.coo 013s.7ó4 HIJ3.810 L1J3.745 tï33.803 •0.039 (•0.OCI)

Extreme Order Block

Extreme Order Block

11:IZI 12:00 10 11:II 11:tl0

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 Live chart liquidity hunt defare entry: example 3
F08Dñ0/J published on TradingVie‹’.com. Web 16. 707J 00:J9 UTC-4

B01

B0f

B0f
CHoCH
Demz«
d

B0f
B0f

Domznd

LI§IJI0ITY TRAP
/S ¢9EAT£0
PkI0R TO £'Y8hY R8¥ekSAL Ok
Demand ¢0ftTIfWATI0ft;
If YOU LOOK
¢L£AkLY AT T

May 10
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 Downtrend live chart liquidity hunt: example 4

P#I0# 70 £¥£4¥ 4£¥£49L 0#

C017PVA7/0P
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 Liquidity hunt defare supply ‹one entry: example 5
FOREXSO//t published on TradingV1e••x.com, Feb 12. 2023 22:29 UTC-4

West Texas Oil, 4h. OVDA 079.077 H79. 167 L78. 977 C78. 977 —0. 00 (—0. I **-)

Supply

BOS

After a confirmed break of structure

institutions will gugasfull y create
a liguidit y to ftrel their
large orders. wait patientl p

19 10:00 26
2023 16 14:0

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¥/hat an inducement?
Inducement can also occur in the forex market.
Large market participants, such as big banks, hedge
funds, or institutional traders, can use the induce-
ment strategy to manipulate the price of a currency
pair and deceive smaller retail traders.
For example, a large bank may initiate a false
market signal, such as a short-term price
movement in a currency pair, to attract retail
traders to buy or sell the currency. This price
movement can look like a le- gitimate trend
reversal, but it is actually a manipula- tion tactic
designed to deceive traders into making trades
that ultimately result in losses for them.
The inducement strategy can also involve triggering
stop losses or accumulating a large position in the
opposite direction of the market trend, with the aim
of profiting when the market eventually reverses.
As a retail trader, it is essential to be aware of
the potential for inducement in the forex market
and to avoid making trades based solely on
short-term market signals or trends without
conducting thor- ough analysis and due
diligence. It is important to use risk management
strategies such as stop loss orders and to have a

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clear trading plan that takes

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into account market volatility and potential manipu-
lative tactics that may be used by larger market par-
ticipants.

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 Example 1 of inducement:
FOREXSO//t published on TradingVies z.com. I•‘•ar 1 . 2023 01 : 4 UTC-d

British Pound / U.S. Dollar. 1h. FXCM 0 1.20252 HI .20*48 LI .2024* C .2029'?

SUPPLY OR ORDER BLOCK REVERSAL

CHoCH

Inducement
BOS —

BOS

27 28 2 6

1Y TradingViev

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 Example 2 of inducement:

BOS

BOS
Inducement
CHoCH

DEMAND OR ORDER BLOCK REVERSAL

24 27 Z8

I'm' TrndingVie *z

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Live chart example 1:

IDM

DZ

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Live chart example 4:

t IDM

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Live chart example 5:

IDM —

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Live chart example 6:

DZ

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fihat is Supply and Demand?
In the Smart Money trading methodology, supply and
demand play a crucial role in determining the price
of a currency. The methodology aims to identify areas
of supply and demand in the forex market by tracking
the trades and orders of institutional traders, also
known as smart money."

1. Identifying Supply Zones: Smart Money

traders look for instances where institutional
traders are consistently selling a currency at
a certain price level. This may indicate that
there is a sur- plus of supply in the market,
which could cause the price of the currency to
go down.
2.Identifying Demand Zones: Conversely, Smart
Money traders also look for instances where in-
stitutional traders are consistently buying a cur-
rency at a certain price level. This may indicate
that there is strong demand for that currency
in the market, which could cause the price of the
currency to go up.

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 3. Trading with the Smart Money: Once they
have identified areas of supply and demand,
Smart Money traders can choose to follow the
trades of institutional traders by entering
positions in the direction of the smart money.
For example, if they see that institutional
traders are buying a currency at a certain
price level, they may choose to buy that
currency themselves, in the hopes that the
price will continue
In conclusion, the SmarttoMoney
rise. trading methodology
incorporates the concepts of supply and demand by
using the trades of institutional traders to identify ar-
eas of supply and demand in the forex market.
By following the trades of these institutional
traders, in- dividual traders can potentially
increase their chances of making profitable
trades.

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Demand entry: example 1

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 Supply entry: example 2

JREXSÓM pubLished on TradingVievv.com, Feb 17, 2023 23: 13 UTC-4

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FeD 2 3 7 8 9 10 13 14

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 Live chart Demand: example 3

pricP always cr9atPs

a liquidity b»/or» it
I»av»s denand zone ...
mostly the first hL
be|ore the breal o|
structure is token out
505

B0f

Demand Demand zone

zone

Jun ZO Jul IB Aq

Sep 19 Oct 17

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Live chart Supply: example 4

price always creates

a liquidity d»/or» it
leo‹es svpply zor»...
nostly the/irstLñ
#P 0fP I P #fP0t 0

supply zone

supp(y zone

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B0f

Jul '8
Au°, 1f

www.tradesmint.com
¥/hat is balance and imbalance?
Balance in the forex market refers to a state where
the supply and demand for a currency are equal.
This means that for every trader who is buying a cur-
rency, there is another trader who is selling that
same currency. When the market is in balance, the
price of the currency pair is relatively stable, and
price changes are minor and consistent.

In an educational context, this concept can help stu-

dents understand the basic principles of supply and
demand and how they impact the price of a currency
in the forex market. This is a fundamental concept in
economics that students will encounter throughout
their education, as it is applicable not only to the
forex market but also to other markets and indus-
tries.

0n the other hand, an imbalance in the forex market

occurs when the supply and demand for a currency
are not equal. This imbalance can be caused by a
va- riety of factors, including economic data
releases, geopolitical events, and market
sentiment. When

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there is an imbalance in the market, the price of the
currency can experience significant swings, as trad-
ers respond to the changing conditions.

In an educational context, this concept can help stu-

dents understand the impact of various external fac-
tors on the forex market and the importance of keep-
ing a close eye on market conditions. This can also
help students understand how traders make in-
formed trading decisions based on market imbal-
ances, which can be useful in understanding the dy-
namics of the forex market and other financial mar-
kets.

Overall, understanding the concepts of balance and

imbalance in the forex market can provide students
with a solid foundation in the principles of economics
and the mechanics of financial markets.

www.tradesmint.com
 Im#alanceExamplel
F0RL^'S07/\ Dublished on TradingVie•‘.com. Feb T8. 202a 18:34 UTC-4

when the High and the

low or the L and the
low o/ the two candles
aren't touching there
in an imbalace present

Imbalance between Imbalance between

the candles the candles

Jun Jul Aug

Sep Oct Nc

1Y TradingVie›v

www.tradesmint.com
FAIRVALUEGAP@IMBALANCEARETNESAME:

fiAIR VALUE GAP

GAP GAP

BULLISH GAP BEARISH GAP

KEEP

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 Balance & imàalance dawntrend: example 2
FOREXSOM published on TradingView.com, Feb 12, 2023 23:59 UTC-4

West Texas Oil, 12h, OMDA 071.777 H72.495 L70.493 C70.58J -1. l94 (-1.óó%)

balance

balance is actually
equal moves and whenthe
price moves it
cremes in&lance price

balance

Feb

IV TradingYiew

www.tradesmint.com
 Balance and imbalance uptrend: example 3
F0REXS0//t published on TradingViev com. Feb 12. 2023 23:55 UTC-4

West Texas Oil, 12h, OANOA 071.777H72.495 L70.49a C70.58a -1.I94 (-1.66’'>)

balance

balance
balance is actually
equal moves and when the
price moves it
creates imbalance price

Feb Mar May Jun Jul

1Y TradingView

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Balance and imbalance live chart: example ù

gãlül1(ál #0tütİ0I1ül

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Imbalance Live chart example 5

mark thit entire

Imbalance

Imbalance

Imbalance

Once the price breaks a valid structure, it mostly

cre- ates an imbalance. Eventually, the price will
come back to fill the imbalance.

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¥/hat is order dlack?
Order blocks refer to a grouping of pending orders
placed at a specific price level by smart money trad-
ers, such as large financial institutions and hedge
funds. These traders are believed to have an ad-
vantage over retail traders due to their access to in-
formation and market intelligence. By grouping their
orders together in a block, they can enter or exit po-
sitions more efficiently and with less market impact.

New traders may be interested in order blocks as

they can provide clues about potential levels of sup-
port and resistance in the market. These levels are
important because they indicate where the price
may temporarily find balance before continuing its
trend. By identifying these levels, traders can
potentially make informed trading decisions and
increase their chances of success.

However, it's important for new traders to under-

stand that not all order blocks result in profitable
trades and that there is no guarantee that they exist.
Additionally, traders should not solely rely on order

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blocks when making investment decisions and
should always thoroughly research and
understand the underlying concepts before entering
any trade.
In conclusion, order blocks in forex smart money
trading can be a useful tool for new traders, but it's
important to approach them with caution and to use
them as part of a well-rounded trading strategy.

Valid order dlacks:

In order for an Order Block to be valid, it needs to
liquidate the previous candle's High for an uptrend
and Low for a downtrend, leave an imbalance, and
break the structure.

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 äearish srder älsck example 1

80f

I2 ł6 ł8 7D l3 lò

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 Bullish Order Black Example 2

If IB M t6

1Y Tra4igYiw

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 Valid and invalid Order âlock example:

Last buying czndle

Ltst buying candle before the sell
before the sell No imbalance is
created since the
wick is already
mitigated the 0B
ctndle in this case
the order blotk has
already been used

Imbalance confirms
inefficient price

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 Bearish order dlack example 3
FORE’t5OM published on Trading\’ie'.‘ . com. Feb 18. 2023 \ 8:21 UTC -4

order block

BOS

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 Bullish order dlock example 4

BO

order block

Jun
Jul Aug Sep Oct Nov Dec
I'm' TradingVie•v

www.tradesmint.com
How to identify Valid and invalid pulldack?

To clarify a valid pullback, an opposite candle

has to retrace below the low of the uptrend
candles and in a downtrend the opposite candle
has to retrace the High of the previous candle, a
valid pullback in forex trading or any other
markets is often seen as an opportunity for
smart money in- vestors to enter or add to
existing positions at more favorable prices.
These investors may use a variety of technical
and fundamental analysis tools to identify such
pullbacks, as well as their own proprietary
trading strategies based on their market
knowledge and experience. How- ever, it s
important to note that not all pullbacks are
necessarily seen as opportunities by smart
money investors, and attempting to follow their
trades without a well-defined strategy and risk
management plan can be risky. Successful trad-
ing in the forex market requires a combination of
market knowledge, technical analysis, and risk

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management, rather than simply trying to follow
the actions of larger players in the market.

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 Valid uptrend pulldack example 1
F0RDtS0/J publi:hed on TradingVie›'/.com. Feb l4. 2021 00:4J LITt-J

** retraced

** retraced

14:@
15 l4:@ t4:@ 29 Sep 6 12 l4:@ t4:@
1Y Tr8dingVie›v

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 Valid uptrend pulldack; example 2
FOR 0/s published on TradingVie'/.com. Feb l4. 207 00:J9 iJTC 1

retraced

14:@ Sep l4:00 19

1Y TradingVie›v

www.tradesmint.com
 Valid and invalid dull dacks doth uptrend and downtrend:
FORE S0// published on TradingVie›•.com. Feb I4, 207s 0i:05 UTt-4

UPTRENO INVALIO Pullback

00¥/NTREN0 INVALIO Pullback

the last bullish candle

must be
retraced

the last bearish candle

must be retraced

I4:@ 15 14:@ 22 14:@ 29 Sep 14:@ l9

1Y TradingView

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 Uptrend and downtrend valid pull6ack example 4
FOREXSOM pubtishocl on TracfingVie v.com, Feb 18, 2O23 17:DO UTC-4

Brit s Pouod / U.S. Dolta+-, 1D, FOREX. com 01.15454 HI . 15888 L1. 14961 C1. 15115 —0. 00339 (—O. 2 )

IN TradingView

www.tradesmint.com
Premium and discounted area
Premium and discount areas in forex refer to the
in- terest rate differential between two
currencies. A premium area is when the interest
rate of the cur- rency being purchased is higher
than the interest rate of the currency being sold,
while a discount area is when the interest rate of
the currency being pur- chased is lower. Traders
can use this concept to im- plement carry trades,
but it is crucial to conduct thorough research and
manage risk, as market con- ditions can change
rapidly. Understanding the con- cept of premium
and discount areas is important for successful forex
trading. Once you have identified a break in
structure, place the fibonacci the HL and HH in an
uptrend and the fibonacci the LH and LL in a
downtrend and wait for the price to return to the
discount region.

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 premiumanddescount:examplel
FOPOSOM publisfed on TrBÓngYiew.com, Feb )ó, 7023 72:40 UTt-4

Euro / IJ.S. Dollar. i\r, F0zO.com 0!.116t6 H1.1›6r› LI.I »/7 C1. lszs9 •0.016/z i-I.‹óïl

B0f

B0f

dezand

Apr
Jul Oct Àor Jul kp Jun /ep 2017
TV TradingYiew

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 Haw to use it: example 2
FOREXSO/à pubLished on TradingV1e••x.com, Fcb 1ó, 2023 22:2 UTC -4

Euro / U.S. DolLar. 1W, FOREX.com 01. \ 162ó H1. 13óó5 LI. 1 537 C 1. J *259 +0.01ó33 (- I .46* )

1L&.00 . ‹0. 9 J 2aój

50. O0°-(0. 88080)

0.00°- í0.84913)

2014 20 f 5 Apr
Apr Jul C}ct
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www.tradesmint.com
Fiăsnacci numbers:
L

o.s

www.tradesmint.com
 Ńsw ts use Fiäsnacci:

i7 żB 2

l’fT,nding'ne•.'

www.tradesmint.com
Riskmanagement:
When day trading a currency pair in the forex market,
managing risk is essential for long-term success.
It's important to remember that all trades involve
risk, and it's impossible to completely eliminate it.
How- ever, by implementing practical risk
management techniques, you can reduce the
potential impact of losses on your overall trading
account.
One approach to risk management in forex day trad-
ing is to use stop-loss orders. A stop-loss order is a
trade order that automatically closes a position
when the market price reaches a predetermined
level. By setting a stop-loss order, you can limit the
ce
amount of potential loss on a trade. However, i s
im- portant to remember that stop-loss orders are
not foolproof and can be subject to slippage in
volatile market conditions.

Another important technique is proper position siz-

ing. This means not risking more than a certain per-
centage of your trading account on any single trade.
For example, you might decide to risk no more than

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1-20/ of your account on any trade. This can help to
prevent large losses from negatively impacting
your overall account balance.

Additionally, staying informed about market news

and developments is crucial for day traders. Eco-
nomic data releases, geopolitical events, and the
ac- tions of central banks can all impact price
move- ments for currency pairs. By staying
informed, you can adjust your trading strategy as
needed to ac- count for changing market
conditions.

Ultimately, successful forex day trading requires a

combination of disciplined risk management and a
well-informed trading strategy. By continuously
monitoring and adjusting your approach, you can
better manage risk and increase your chances of
success in the fast-paced world of forex day
trading.

There are many online position sizing

calculators
that you can use, and different traders may
prefer different calculators. Some popular
position sizing calculators include:
www.tradesmint.com
 . Myfxbook Position Sizing Calculator

. Forex Position Size Calculator by Daily Price Ac-

tion
. FX Empire Position Size Calculator
. BabyPips Position Size Calculator
These calculators are typically free to use and can be
accessed directly from their respective
websites. Keep in mind that while position sizing
calculators can be helpful tools for managing
risk, they should be used in conjunction with a
well-defined trading strategy and risk
management plan.

Here are some of the major economic news

releases that can affect forex markets:

1. Gross Domestic Product (GDP) - measures the

total value of goods and services produced
within a country. GDP is an indicator of a coun-
y
tr s economic health.

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2.Nonfarm Payrolls (NFP) - measures the change
in the number of employed people in the US, ex-
cluding the farming industry. It is released on the
first Friday of every month and is closely
watched by traders as a gauge of the strength of
the US economy.
3.Consumer Price Index (CPI) - measures the
change in the prices of goods and services
pur- chased by consumers. CPI is used as an
indicator of inflation and is closely monitored
by
4.central banks when making monetary policy de-
cisions.
5.Interest rate decisions - decisions by central
banks on the interest rate can have a significant
impact on currency prices. Higher interest rates
can lead to a strengthening of a currency, while
lower interest rates can lead to a weakening of
a currency.
6.Retail Sales - measures the change in the total
value of sales at the retail level. Retail sales are

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 an indicator of consumer spending, which is a
key driver of economic growth.

flere are same examples of how to analyze fundamental

news events in forex:
1.Interest rate decisions - When central banks
make interest rate decisions, it can have a
sig- nificant impact on currency prices. For
example, if the Federal Reserve (Fed)
increases interest rates, it could lead to a
strengthening of the US dollar. Traders can
look at the actual interest rate decision and
any accompanying statement to assess the
potential impact on the currency market.
2.Economic releases - Economic data such as
Gross Domestic Product (GDP) growth, inflation,
and employment figures can also affect
currency prices. For example, if the
unemployment rate falls below expectations, it
could be seen as

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 positive for the currency. Traders can analyze
the actual figures compared to the forecast and
assess the potential impact on currency prices.
3. Geopolitical events - Political developments and
international conflicts can also influence cur-
rency prices. For example, if there is an
escala- tion in a trade war between the US
and China, it could lead to a weakening of the
Chinese yuan. Traders can monitor news and
statements from government officials to
assess the potential im- pact on the currency
market.
Websites that traders can use to stay informed on
fundamental news events and their impact on the
forex market include:

. Forex Factory https://www.forexfactory.com

. Investing.com https://www.investing.com
. DailyFX https://www.dailyfx.com

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 Time frames far different traders:

1. Swing traders use weekly TF to get the

over- all direction, daily for confirmation and
4H for entry

Detailed:
start with the weekly timeframe to get a broad view
of the market's overall trend and direction. Then,
then move to the daily timeframe to confirm the
trend and identify potential entry and exit points.
Finally, use the 4-hour timeframe to identify more
precise entry and exit points.

2.Day traders use 4H to get the overall

di- rection of the market, 1H for
confirma- tion and 15M or 5M for
entry.

Detailed:

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start with the 4-hour timeframe to identify the
mar- ket s overall direction and trend. Then move
to the 1- hour timeframe to confirm the trend and
find poten- tial entry and exit points. Finally, use the
15-minute or 5-minute timeframe for more
precise entry and exit points.

3. Scalpers use the 1H time frame to get the

overall direction, 15M for confirmation and
5M entries.

Detailed:
Use the 1-hour timeframe to identify the overall di-
rection, then move to the 15-minute timeframe for
confirmation, and finally use the 5-minute
timeframe for precise entry and exit points.

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 Ta do list defare placing any trade:

1.Pick a currency pair, for example GBP/USD.

2. Choose a trading session - either London or
New
York session if you picked GBP/USD.
3. Have a proper risk management plan, such
as risking only 1-2% of your account per trade
and taking no more than 2 trades per day.
4. Always check for any upcoming economic
news
before entering a trade.
5. Ensure you get adequate sleep to stay

Session traders check list:

1. Identify an uptrend or downtrend on the 4-hour

chart.
2.Before the London/Frankfurt open, mark the
high and low of the Asian session.
3.Wait for a breakout of the Asian session range.
4. Mark the demand zone in an uptrend and
the
supply zone in a downtrend, also mark imbal-
ances price might reverse from it too.

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 5.Mark liquidity zones after they have been taken
out.
6.Mark the supply or demand zone and wait for
the price to touch your zone after the liquidity
sweep.
7.Wait for a change of character on a lower time
frame (such as 15 minutes to 5 minutes) after
the price touches your zone.
8.Take the trade and place a stop loss below the
zone for a downtrend or above the zone for an
uptrend. Take profit at the previous high for an
uptrend and the previous low for a downtrend.

By following these steps, traders can identify

poten- tial trading opportunities and execute
trades based on a structured approach that
takes into account both technical and
fundamental factors. However, it is important to
note that trading involves risks and traders
should always use proper risk management
strategies, such as setting stop loss orders, to
mini- mize their losses.

Tap-dawn defore entry example:

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FOREXSOM pubfished on TradingVie••z.com. /1ar 11, 2023 03: 14 UTC-6

rich Pound / U.S. Dollar, 4h, FXCM 01.203ö4 H T . 20d52 U.20£)52 C I . 20127 -0.00237 (-0.20*.)

23
26 Feb 13 20 23
IV TradingView

www.tradesmint.com
 Price reversed from a supply zone around Asia session and
aligned with the flTF 4H direction:

bi tT h Pound .!.S. Dollai. v0. E. .C/.’ 0 ' ”--

12:00
1 2:00 7
"F¥'Treang'ie.'

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Mark Asia H and Law defare London / Frankfurt open:

Asia H

liquidity sweep
before reversing from
the imbalance

Imbalance

London breaks asia L

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Complete step dy step Strategy:

1. Identify the overall direction

• Look for a buy opportunity in an uptrend
• Look for Sell opportunities in a downtrend

2. Find the zones

• Look for a demand zone in an uptrend

-Demand zones are usually found between

HL and the HH

• Look for a supply zone is a downtrend

- Supply zones are found between the LH and
the LL

3. find the liquidity zone

(Liquidity is sitting before the price tabs on a

demand, supply or order blocks) mostly liquidity
looks like a swing High, swing low, trendline,
double top or even double bottom.

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4. wait for a change of character once the price tabs
on your marked supply or demand zones on the
Lower time frame, place your entry and stoploss
un- der or above the last swing.

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 Downtrend entry example:
FOREXSOM published on TracfingView.com, Feb 16, 2023 20:36 UTC-4
Euro / U.S. OoLLar, 3D, FOREX.com O1.Oó871 HI.07224 U.0óS45 C 1.Oó5óO —O. fXf31 1 (—O.29a.)

CHoC

BOS

Oct
22 2022 Mar
l'NTraüfigV]evv

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 uptrend entry example:

F0REXS0/ñ published on TradingVie 'z.com. Feb 16, 2023 20:40 UTC-4

Euro / U.S. Dollar, 3D, F0REX.com 01.0ó871 H \ .07224 L1.06545 C1.063ó4 -0.QIJ07 (-0.29“-)

>Rtrendsc»norźo

BOS
CHoCH

LL

Oct
22 2022 Jun

1Y Tradingview

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 Entry example 1:

SM

CHoCH

16 23 2ó Feb 6

I'm' TradingVie v

www.tradesmint.com
 Entry Example 2:

CHoCH

Dem an
9 1ó 2õ Feb č

www.tradesmint.com
Č0hClUSİ0nE

The FOREXSOM SMC guide is a comprehensive re-

source that provides traders with a deep under-
standing of institutional trading. The guide is
focused on the use of the smart money concept
as the main component of the trading strategy.
This involves un- derstanding how institutional
traders think and op- erate in the financial
markets, and using this knowledge to identify
high-probability trading oppor- tunities.
The guide covers various topics related to trading,
such as how to read the price action on charts, un-
derstanding how and why certain zones are formed,
and how to create your own system around these
concepts. The emphasis is on learning how to
identify and enter trades with extreme accuracy,
using the smart money concept as a foundation.
This requires understanding how to read the price
action and in- terpret what is happening on the chart,
as well as identifying key levels of support and
resistance.

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Another important aspect of the guide is the empha-
sis on developing a trading system that is tailored to
your individual needs and goals. This includes under-
standing that not all zones that are printed on
the chart can be entered from, and that creating
a sys- tem that works for you will take time and
effort.
The guide encourages traders to be patient and per-
sistent in their learning process. Success in trading
requires time, effort, and discipline. The smart
money concept is a powerful tool that can be used to
gain an edge in the financial markets, but it requires
practice and dedication to master.

Overall, the FOREXSOM SMC guide is a valuable

re- source for traders who want to deepen their
under- standing of institutional trading and improve
their trading skills. By following the concepts and
strate- gies outlined in the guide, traders can
increase their chances of success in the financial
markets. How- ever, success will require hard work
and a commit- ment to learning and growth.

www.tradesmint.com