Elementary Forex Trading


>  What is Forex?:  Forex simply means the simultaneous and buying and selling of
         curency,  in another word when you buy one currency you automatically sell the other.
>  Illustrations of forex- Explanation of trader
>  How world fall.
                                               



                           Let get started....
   
                                                              CHAPTER 1  


Let get started....
 
                                                              CHAPTER 1  
>  What is Forex?  Forex simply means the simultaneous and buying and selling of
         currency,  in another word when you buy one currency you automatically sell the other.
>  Illustrations of forex- Explanation of trader
>  How world fall.


                                                           LEVEL OF TRADER
1.  Beginner Trade: somebody learning forex is a beginner trader. somebody who is on
     demo trade is a beginner in forex.
2.  Advanced beginner: somebody who has just begin live trading is an advanced beginner.
3.  Competent trader:  somebody who receive more profit is a competent trader.
4.  Proficient trader: somebody who lose once in a while in forex is a proficient trader.
5.  Expert trader: somebody who lose once in blue moon. somebody who build a software for people
     on forex is an expert trader.



                                                     ADVANTAGES OF FOREX  
1. It is the best home business, it allows you to do any other business, also you can do it at your time

2.  It runs for 24hrs in five days.

3. The forex trading can be done from any part of the world.

4.  It requires little start-up capital

5.  Two side profit making i.e if price goes up you will make your money and if price goes down you
 
     will still  make money

5.  Leverage: is the money that loan to you through broker to enable you to buy more goods.

                                                    
                                                          
                                                     
                                                  TERMS USE IN FOREX.
   
A.   Major Pairs: Any currency with "USD:  is called major pairs e.g GBP vs USD, EUR vs JPY,            .     
 
B.   Cross Pairs: Any currency  without "USD" is called cross pairs e.g GBP vs JPY, GBP vs EUR,
     
       CHF vs CAD, JPY vs CHF, EUR vs CAD.

.  
           NOTE: The currency that come first is called  "BASE CURRENCY" while the second one at
                                            your right hand side is called counter.


      E.G            Base Currency                                                        Counter Currency
                         GBP                                                                          USD 
                         FUR                                                                          USD   
                         USD                                                                          JPY
                         GBP                                                                           EUR
                         CHF                                                                           CAD

C.   Plat Form: is a scene or brokers software that contains all the market informations.

D.   Bull or Bullish Market: It means the price iit means rising, go long and up: it means you should "Buy"

E.   Bear or Bearish Market: It means the price is falling, down and short it means you should "Sell"
     
      when you see shaded candle.


     NOTE: This "candle" means Japan's candle stick, it represent markein forex.

F.  Margin: Is the real money you invest into Forex.

G.  Bid: Is the cost price.

H.  Ask: Is the sell price

     See the table below

                                    SYMBOL               BID                        ASK
                                    GBP/ USD             1.0254                    1.0258
                                    USD/USR              1.8923                   1.9827
                                    USD/CAD             105.78                   1.06.82
                                    USD/JPY               1.0200                   1.0204
                                    CHF/JPY               102.44                   10.2.48

I.   Pip: Is the volume of profit or lose you make in a single trade.

J.   Lose/Size or Volume: Is the quantity of currency pairs you are buying or selling at a giving time.



                                                          TYPES OF ACCOUNT 

1.   Mini Account: This starts from $1 (one dollar) to $999 (nine hundred and ninety nine dollars).

2.   Standard Account: This start from $1,00 (one hundred dollars) above.

3.   Instant Execution: This is the order to buy or sell the currency at a giving price.

4.  Take or Target Profit: this the order to exit the market when the market has reached the maximum
 
     desire profit.



     SETTINGS OF TAKE PROFIT AND STOP LOSS FOR BULL AND BEAR MARKET                                                                                                                                   


         <.   Take Profit: when you "BUY" you set your profit above and you stop loss below.

         <.   When you "SELL" you take profit below and stop loss above

         <.   Pending Order: Is the order to exit the market, reached the desire price.


                                                 SETTING OF PENDING ORDER

         &lt    You change your instant execution to pending order and you set (TYPES) to "BUY" STOP
                 
                  If you are buying and you "SELL"  stop if you are selling.

M.             Stop or Loss Limit: this is the order to exit thre market when the market is going against you.

N.             Spread: this is the different between "BID" and "ASK" price is a the broker commission.





                                          CHAPTER 3 

     
                                       BROKER'S SERVICES

       A broker is an individual who compares buy and sell order in return for commission. Before a
     
      broker can set up his brokerage firm he must have $25billion dollars (twenty five billion dollars
   
      as his capital. We have more than 500 brokers on the net.
   


     .1.    www.  FXPRO.COM
       
      2.    www.  GCI.COM.COM
   
      3   . www.  XFOREX.COM
         
      4.    www.  MONEYFOREX.COM
     
     5.     www.  WEBTRADER .COM
     
     6.     www.  NORTHFINANCE.COM
     
.    7.     www.  EASYFOREX.COM
       
     8.     www.  OROWNFOREX.COM
       
     9.     www.  FXOPEN.COM



                                                          CHAPTER 4
                 
                                  TRADING TIME AND SECTIONS 

      Forex market begins every sunday and closes every friday by 10.00pm  It is 24hrs everyday.

                                                       CONTINENT:

      Asia the market start 7.00PM- 4.00AM.

     America the market start 3.00AM-12.00PM

     European the market start  11.00AM- 8.00PM.




                                             CHAPTER 5

                             FORCES THAT CONTROL FOREX MARKET 

 
 1. Technical Analysis: this focus on the study of price movement. This way a trader is able to examine certai

     matter, in which to know the direction price is going. In another word is a person who study the trends or

     movement of market, study the past to predict the future of the market.
 
 2.  Fundamental Analysis: Is a person who listen to news before entering the market, he will study the

      economy situation of the country, it has direct impact of does currency. to get the news:

      GO TO: FOREXFACTORY.COM.




             
                                        METHOD OF TRADING FUNDAMENTAL

   A.    When the base currency is appreciating you "BUY". It means the counter currency is depreciating

   B.     When the base currency is depreciating you "SELL" It means the counter coated currency
           
            appreciating by that time.

   C.     When the counter coated currency is depreciating you "BUY".

   D.     When the counter currency is appreciating you "SELL"

                                                   NOTE THIS................

  Always set your stop loss and take profit and don't be selfish.


                                                       TYPES OF CANDLE STICKS

           Hammer is a good signal i.e the market to "BUY".


                                                 MARKET  ANALYSIS



  A.  When the actual release is higher than the previous and it affect the base currency you " BUY".
       
        E.G (EUR VS USD); EUR is the base you "BUY".

   B.  When the actual release is lower than the previous and it affect the base currency is you "SELL".
     
        It means the base currency is depreciating by that time.

   C.  When the actual release is higher than the previous and it affect the counter you "SELL".

   D.  When the actual is the same with the previous you will look at the past market. It is unchanged.

        NOTE: Don't forget to set your take profit and stop loss.






                                           HOW TO TRADE NEW WITHOUT STRESS

                      Five minutes before the news comes out, set your pending order into both side, I MEAN

                      BUY STOP AND SELL STOP about 20pips away and your take profit 10-15 pips

                      COMING SOON HOW TO RUN FX-4SET-UP ON YOUR COMPUTER 





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