Do you believe that everything happens for a reason? I haven’t always been a strong proponent of this theory, but looking back at certain events in my life has made me a believer. I was introduced to the “forbidden” world of foreign currency ex- change in communist Bulgaria at the tender age of eight, when in 1979 my father was arrested by the communist militia because of his involvement in a black market currency exchange. My family was told that my father owned and dealt with those “evil” U.S. dollars, British pounds, German marks, and other foreign currencies that the “capitalist pigs” use to buy their “rotten” goods and services “produced with the blood, sweat, and tears of the proletariat.” It was a true baptism by fire. To prove that the apple doesn’t fall far from the tree, as a high school and a college student, I made money soliciting currency exchange from foreign tourists and foreign exchange students, and exchanged currencies on Magura Street.
You’ve probably already figured out how this story ends. The tsunami of hundreds of PIPs against me right after the war announcement was enough to make me spend the rest of the day picking up the pieces of what was left of my trading account and licking the wounds of my trau- matized trader’s psyche. It was a devastating experience, but I am grateful that it happened to me, because in the days and months of soul searching that followed, I became a born-again trader with a revived mindset and a completely new trading method. This is how *The Quarters Theory* was born. It was a result of my rigor- ous process of recovery from the turmoil that I had inflicted on my trading account and on myself. Whether I wanted it or not, I was taken back to Square One. From that point, there was no other way to go but back to the basics, rebuilding from the ground up. And what better way to get back to the basics than focusing on the most basic unit of information for everything.
This is how *The Quarters Theory* was born. It was a result of my rigor- ous process of recovery from the turmoil that I had inflicted on my trading account and on myself. Whether I wanted it or not, I was taken back to Square One. From that point, there was no other way to go but back to the basics, rebuilding from the ground up. And what better way to get back to the basics than focusing on the most basic unit of information for every trader—the price? I had to get away from the clutter of charts and techni- cal indicators, and be absent from the never-ending hunt for volatility and the scalping stampedes during news events. The Quarters Theory was my solution to the need I had for that extra edge through an unprecedented, innovative methodology based on a fresh new approach and a deeper perception of price behavior in the daily fluctu- ations of currency exchange rates. I discovered during my period of trader revelation how to distinguish myself from the herd.
In recent years, interest in *The Quarters Theory* has continued to grow as a result of my appearances as a speaker at educational seminars and we- binars, through my weekly publications and columns on popular financial websites, as well as through my daily “All Things Forex” broadcast and my website www.allthingsforex.com. I hope that you will enjoy what you are about to discover in this book and that you find *The Quarters Theory* to be a meaningful and substantial way to improve your methods of trading currencies on the Forex market and to experience consistently better trading results.
The Quarters Theory improves and simplifies the decision-making process in foreign exchange trading through the use of a revolu- tionary new methodology applied to the price behavior of currency exchange rates and trend developments in the Forex market. This book provides currency traders with a step-by-step guide to the unique premise of The Quarters Theory and offers many real-life market examples, varia- tions, and innovative Forex trading strategies. Ilian Yotov, a longtime Forex strategist, delivers a new, reliable compass to help you navigate through the complexities of the daily fluctuations in the prices of currencies. He shows unique ways leading to consistently better trading decisions and helps maximize your trading results.
A year ago, my life had collapsed around me. I’d worked myself into exhaustion, my father died suddenly, and my relationships with my work colleagues and loved ones were in turmoil. Little did I know at the time, out of my greatest despair was to come the greatest gift. I’d been given a glimpse of a Great Secret—The Secret to life. The glimpse came in a hundred-year-old book, given to me by my daughter Hayley. I began tracing The Secret back through history. I couldn’t believe all the people who knew this. They were the greatest people in history: Plato, Shakespeare, Newton, Hugo, Beethoven, Lincoln, Emerson, Edison, Einstein. Incredulous, I asked, “Why doesn’t *everyone* know this?” A burn- ing desire to share The Secret with the world consumed me, and I began searching for people alive today who knew The Secret. One by one they began to emerge. I became a magnet: as I began to search, one great living master after another was drawn to me.