Before each trading session, you should already have some expectations about the day’s market. Find out if the Fed will have a Senate hearing, if the World Bank will release some figures regarding debt and any other events that are likely to make sudden currency value changes. In addition to fundamental events, you should also have a feel for the technical side. Figuring out where the support and resistance are as well as the likelihood of a currency testing those areas is by far one of the most important aspects of technical analysis.

The depth of research into various fundamental and technical aspects of the market will depend on the strategy you have built. You should have a strategy put together so that you are not just executing random trades based on guesswork. Putting together a strategy is the art of forex trading and each trader will have their own unique style. Experiment on a demo account with different ideas and indicators until you find something you are comfortable with. After this, do not change your formula at all and give your strategy a couple months minimum to decide if it is profitable.

The key to creating a good strategy is to understand probabilities and to fine tune your ability to close both winning and losing trades. You may be correct in your predications 90 percent of the time but you allow losing trades to wipe away your profits and take a cut out of your equity. On the other hand, you may be right only 30 percent of the time and seeing great earnings overall.

All your practice should be done on a demo account. During your experimentation phase, you should open a different demo account for each strategy you are testing out. Avoid confusion by writing down the plan behind your strategy with the corresponding demo account number. In addition to this, keep a journal of each day’s trading session with the amount gained or lost per trade, a description of the market conditions, what you learned that day and any other notes you deem to be helpful.

Trading more does not necessarily mean you will gain more profit. A trader may make one trade every month because of their strategy. A scalper may make hundreds of trades per day. Both traders have found what works for them through the strategy they have developed. What does not work however, is to remain logged into the terminal and trading beyond the parameters you set up for your trade system. Perhaps your first trade was based on your analysis and the second one was based on a hunch. It would follow that your third trade might very well be based on greed.

Being mindful during the process of creating a trading strategy is important. The more time you take with each step, the safer your strategy will be for you. While keeping what you have read here in mind, enjoy the process of creating a trade strategy that works for you.

1) Proper analysis of the numbers, results, and digital representations of the market can be an amazing tool when in the field of heavy-battle. They should never become a crux for your decisions or mistakes, but their influence must be observed, respected, and taken into consideration before any trade of large or small amounts.

2) Keep an eye on new and interesting topics in media all across the world; not just local or niche-specific issues. Even if you don’t trade in Asian Peanuts, a decline in their production will effect the largest oil production plant in your home country and inadvertently cause a huge ripple effect. This is known as the global food-chain and you should always find where your specific currency fits among these links and then follow it back to the smallest source possible. If nothing else, you should always know what hot-button issues are effecting your economy at the time while also knowing what foreign affairs might be seemingly unrelated, but stand the chance of disrupting your income if not handled properly. From that point, you must make the “flight or fight” reaction and hope you’ve chosen correctly. The key is not to move too quickly and if all else fails, release the funds once the margin has been crossed and the potential for profit doesn’t have a decent relationship with the risks it is built upon. This is more for the edgy type and a more conservative approach should be used if the funds are extremely vital or you don’t wish to chance any losses.
3) Act upon each and every analysis, not just the good ones. As mentioned, it can often become a burden to constantly review the information online and force yourself to make a choice; so people often ignore it until it suits their favor and then roll with it. However, without those losses in calculation, they often end up with poor results compared to their expectations and begin blaming the methodology used for acquiring data.

Now you’ve seen a basic outline of what the analysis consists of, the purpose it servers, and a good method for avoiding pitfalls; all that is left is the decision to hop online and start trading. If you take a look at the technical statistics, you’ll see that millions have profited by making that same, simple choice. As long as you remember all the things that have been discussed in the above tips and apply them to your trades in the proper sequence, you should soon become pleasantly surprised with the results forthcoming.

Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value.

When you see a FOREX price quote, you’ll see something listed like this:

EUR/USD 1.2210/13

Explanation:

a) If you want to BUY the EUR/USD ( meaning you BUY EUROS and SELL US$ ) you buy 100,000 EUROS and you SELL 122,130 US$, or in other words you receive
122,130 US$ for 100,000 EUROS.

B) If you want to SELL the EUR/USD ( meaning you SELL EUROS and BUY US$ ) you buy 122,100 US$ and sell 100,000 EUROS, or in other words you receive 100,000 EUROS for 122,100 US$.

The difference between the bid and the ask price is referred to as the spread. In the example above, the spread is 3 or 3 pips.

Since the US dollar is the centerpiece of the FOREX market, it is normally considered the ‘base’ currency for quotes. In the “Majors”, this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair.

For example a quote of USD/CHF 1.3000 means that fore one U.S. dollar you receive 1.30 Swiss Francs. or in other words, you receive 1.30 Swiss Franc for each 1 US$.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/CHF quote above increases to 1.3050 the dollar is stronger because it will now buy more Swiss Franc than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as EUR/USD 1.2080, meaning that for EURO you receive 1.2080 U.S. Dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one Euro, British pound or an Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the calculation is the same. For example, a quote of EUR/JPY 134.50 signifies that one Euro is equal to 134.50 Japanese yen.

HOW TO BUY ( going “ LONG ”)and SELL ( going “ SHORT ”) in the FOREX Market?

Keep in mind 2 very important rules:

RULE # 1) Cut your LOOSING trades and let your WINNING trades RUN

YOU WILL HAVE LOSING TRADES. Every FOREX trader has. The secret is, that a consistent, disciplined trader, at the end of the day, adds up more winning trades than losing trades.

When you and see on your charts, without any doubt, that you are in a losing trade, don’t keep losing money. Most of the novice traders are lowering their stop loss just to “prove they are right” or “hoping that the market will reverse”. 99% of these trades, are ending up with more losses. Most of the profitable trades are usually “right” immediately.

Remember, smart traders know there are many other opportunities. CUT your losses short and compound those winning positions.

RULE 2) NEVER EVER trade FOREX without placing a Stop Loss Order.

PLACE a STOP order, right along with your ENTRY order, via your online trading station, to prevent potential losses.

Before initiating any trade, you have to calculate at what point ( price) you would be wrong, because the market changed direction, and would want to cut your losses.

To make profits, in the FOREX, a trader can enter the market with a *buy position* (known as going “long”) or a *sell position* (known as going “short”).

As an example let’s assume you’ve been studying the EURO. The EURO is paired first with the U.S. dollar or USD.

Your trading methods, rules, strategies, etc., tell you that the EURO will rice in the next 2 weeks, So you buy the EUR/USD pair meaning you will simultaneously buy EUROS, and SELL dollars).

You open up your excellent trading station software (provided to you for free by Fenix Capital Management, LLC www.fenixcapitalmanagement.com ) and you see that the EUR/USD pair is trading at:

EUR/USD: 1.2010/1.2013

As you you believe that the market price for the EUR/USD pair will go higher, you will enter a *buy position* in the market.

As an example, lets say you bought one lot EUR/USD at 1.2013. As long as you sell back the pair at a higher price, then you make money.

To illustrate a typical FX SELL trade, consider this scenario involving the USD/JPY currency pair:

REMEMBER Selling (“going short”) the currency pair implies selling the first, base currency, and buying the second, quote currency. You sell the currency pair if you believe the base currency (USD) will go down relative to the quote currency (JPY), or equivalently, that the quote currency (JPY) will go up relative to the base currency (USD).

HOW TO CALCULATE PROFIT OR LOSS?

The Profit Calculations, on the Short-sell trade scenario below, may seem somewhat complicated if you’ve never been in the FOREX market before, but this process is continually calculated through your broker trade station (software). I show you this process below so you can SEE how a PROFIT might occur.

The current bid/ask price for USD/JPY is 107.50/107.54, meaning you can buy $1 US for 107.54 YEN, or sell $1 US for 107.50 YEN.

Suppose you think that the US Dollar (USD) is overvalued against the YEN (JPY). To execute this strategy, you would sell Dollars (simultaneously buying YEN), and then wait for the exchange rate to rise.

Your trade would be the following: you sell 1 lot USD (US $100,000) and you buy 1 lot JPY (10,754.000 YEN). (Remember, at 0.25 % margin, your initial margin deposit for this trade would be $ 250.)

As you expected, USD/JPY falls to 106.50/106.54, meaning you can now buy $1 US for $106.54 Japanese YEN or sell $1 US for 106.50.

Since you’re short dollars (and are long YEN), you must now buy dollars and sell back the YEN to realize any profit.

You buy US $100,000 at the current USD/JPY rate of 106.54, and receive 10,654,000 YEN. Since you originally bought (paid for) 10,754,000 YEN, your profit is 100,000 YEN.

To calculate your P&L in terms of US dollars, divide 100,000 by the current USD/JPY rate of 106.54

Total profit = US $938.61

ONE of the best advantages in FOREX Trading is

The amount of money you need to place a trade (known as “margin”) is all that can be lost !

You have to know, that despite the super-high leverage offered by some Forex brokers up to (400:1); meaning if you put up $ 1000 the broker will allow you to trade like you really have $400.000).

Forex trading is still less riskier than Stock or Futures Trading, where you can loose more than you have deposited in your account.

This type of LEVERAGE does NOT EXIST in the equities or futures market.

In the Equities or Futures markets, very often, sudden and dramatic moves occur, against which you can’t protect yourself, even by having placed your protective stops.

Your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account.

But because of the FX market’s deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are almost eliminated.

Orders are executed quickly, without slippage or partial fills. And finally, there are no margin calls. For your protection, the broker will automatically close out some or all of your open positions if your account equity falls below the level required to hold the positions.

Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance.

Currencies are traded in dollar amounts called “ LOTS”

In Forex trading, with most Brokers, you have the choice between 2 different lot sizes.

Standard Lots or Mini Lots.

One Standard lot is equal to $100,000 in currency. The margin requirements, using a 400:1 Leverage, would be US$ 250, in other word you control $100,000 worth of currency for only 250 US dollars.

You mean, depositing $250 with a broker, I could trade 100,000$ worth of currency ???

NO, be aware, that your account size has to be more than the required margin of US 250. For example, if you place an order to buy 1 Standard lot ( @100,000) of USD/JPY and USD/JPY is quoted as 112.10/112.13, you buy USD/JPY at 112.13.

Your account balance would be $220, because you paid 3 pips or $ 30 for this trade.

If you would close this trade immediately, you have to sell it at 112.10 (the bid price) , for a loss of $ 30.

In fact you could not get executed on this trade, as the brokers trading platform would reject your order, for the reason of having insufficient funds in your account).

So, your account balance has to be minimum $280. $250 for margin and $30 for the trade.

BUT….IF, after you have initiated the trade to buy USD/JPY at 112.13, and the USD/JPY falls the next second 1 pip ( approx. $8), your position would be closed automatically, because of margin deficit.

I will explain later about having an adequate account size to trade the Forex Market.

Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded.

The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency.

Some of the most common symbols used in Forex are:

USD – The US Dollar
EUR – The currency of the European Union “EURO”
GBP – The British Pound or cable
JPY – The Japanese Yen
CHF – The Swiss Franc
AUD – The Australian Dollar
CAD – The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can not ever trade the USD by itself. You always need to BUY one currency and SELL another currency to make a trade possible.

Some of the most traded currency pairs are:

EUR/USD Euro against US Dollar

USD/JPY US Dollar against Japanese Yen

GBP/USD British Pound against US Dollar

USD/CAD US Dollar against Canadian Dollar

AUD/USD Australian Dollar against US Dollar

USD/CHF US Dollar against Swiss Franc

EUR/JPY Euro against Japanese Yen

The currency left of the / is called the base currency.

The currency right of the / is called the counter currency.

When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD.

If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency.

The best way to remember is, by just thinking of the entire currency pair as one item.

If you buy it…you buy the first currency and sell the second currency. If you sell it…you sell the first currency and buy the second currency.

That means you would to be able to short-sell with no restrictions so you could make money when the market drops as well as when it rises.

The problem with traditional stock market or commodity trading is that the market has to go up for you to make money. With FOREX trading you can make money in all directions.

More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons:

1) FOREX is the largest financial market in the world.

With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.

2) FOREX is a True 24-hour market.

The FOREX Market never sleeps. Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

3) There is never a Bear Market in FOREX.

You can have access to a seamless exchange of currencies. Currencies trade in “pairs” (for example, US dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long ( you bought) or short( you sold).

4) High Leverage – up to 400:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis – up to 400 times your investment with Fenix Capital Management, LLC and with some other brokers.

Standard 100,000- US$ currency lots can be traded with as little as 0.25% margin, or $250.

Mini FX accounts are permitted to trade with just 0.25% margin, meaning, just $25 allows you to control a 10,000-unit currency position.

Futures traders, who are accustomed to margin requirements generally equal to 5-7%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading , trade the Forex Market.

5) Price Movements might be Highly Predictable.

Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the “technical” methods and strategies.

Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

6) YOU don’t pay commissions or fees to trade FOREX

When you trade FOREX, through Fenix Capital Management LLC (FCM) you can do it totally FREE of commissions and fees , regardless of your account size.

Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, only US$ 200 and they do not charge commissions or fees to trade or to maintain an account, regardless of your account balance or trading volume.

7) YOU don’t have to pay trading fees or exchange fees.

There are none of the usual fees, which futures and equity traders are accustomed to pay:

NO exchange or clearing fees,
NO NFA or SEC fees.

Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

HOW to Forex brokers make money if they don’t charge commissions?

Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which represents the prices at which your counterpart is willing to trade. Your broker will receive a part of this bid/ask spread.

Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.

9) Market Transparency.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).

Because of this transparency, as an FX trader, you will be able to apply risk management strategies in accordance to your fundamental and technical indicators.

10) Instantaneous Order Execution

The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

In Forex, order execution is all-electronic and because you’ll be trading via an Internet-based platform, instantaneous execution is routine.

There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )

Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbucks coffeehouse ( most of them have wireless Internet connection).

If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection.

When you want to start trading the Forex Market nobody is asking you for a diploma, a formal license or a proof of how many hours you have spent studying the Foreign Exchange Market and/or Banking Industry.

FOREX Trading is Economical and Start-up Costs are Low!
You can open an account to trade Forex with as little as US$ 200 at he most brokerage firms.
I personally do recommend Fenix Capital Management, LLC, which offers a state of art Trading platform, that allows you to place orders directly by clicking on the chart.

The Main Benefits of Trading the FX Spot Market are:

YOU don’t pay commissions or fees!
YOU can trade 24-hours a day !
YOU can trade up to 400:1 Leverage !
YOU can have FREE Streaming executable Price quotes and live charts!

It is important to know the differences between cash FOREX (SPOT FX) and currency futures.

In currency futures, the contract size is predetermined.

With FOREX (SPOT FX), you may trade electronically any desired amount, up to $10 Million USD.

The futures market closes at the end of the business day (similar to the stock market).If important data is released overseas while the U.S. futures markets is closed, the next day’s opening might sustain large gaps with potential for large losses if thedirection of the move is against your position.

The Spot FOREX market runs continuously on a 24-hour basis from 7:00 am New Zealand time Monday morning to 5:00 pm New York Time Friday evening.

Dealers in every major FX trading center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva and New York/Toronto) ensure a smooth transaction as liquidity migrates from one time zone to the next.

Furthermore, currency futures trade in non-USD denominated currency amounts only, whereas in spot FOREX, an investor can trade in almost any currency denomination, or in the more conventionally quoted USD amounts.

The currency futures pit, even during Regular IMM (International Money Market) hours suffers from sporadic lulls in liquidity and constant price gaps.

The spot FOREX market offers constant liquidity and market depth much more consistently than Futures.

With IMM futures one is limited in the currency pairs he can trade. Most currency futures are traded only versus the USD.

With spot FOREX, you may trade foreign currencies vs. USD or vs. each other on a ‘cross’ basis, for example: EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP and AUD/NZD

More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons: (will be continued)

RISK WARNING:

Risks of currency trading: Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value, given the possibility of losing one’s entire investment. Speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.

The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.

That is larger than all US equity and Treasury markets combined!

Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the worldwide Forex market has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.

Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the years, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open an account and become an active player in the largest market on the planet.

The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.

Whether you are aware of it or not, you already play a role in the Forex market. The simple fact that you have money in your pocket makes you an investor in currency, particularly in the US Dollar. By holding US Dollars, you have elected not to hold the currencies of other nations. Your purchases of stocks, bonds or other investments, along with money deposited in your bank account, represent investments that rely heavily on the integrity of the value of their denominated currency ¨the US Dollar. Due to the changing value of the US Dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial status. With this in mind, it should be no surprise that many investors have taken advantage of the fluctuation in Exchange Rates, using the volatility of the Foreign Exchange market as a way to increase their capital.

Example: suppose you had $1000 and bought Euros when the exchange rate was 1.50 Euros to the dollar. You would then have 1500 Euros. If the value of Euros against the US dollar increased then you would sell (exchange) your Euros for dollars and have more dollars than you started with.

Example:

You might see the following:

EUR/USD last trade 1.5000 means
One Euro is worth $1.50 US dollars.

The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.

RISK WARNING:

Risks of currency trading

Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity).The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. Given the possibility of losing one’s entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.

Most novice traders make the mistake of trusting in Forex robots, purchasing them and thinking that they could just sit down while these Forex robots work on autopilot making them money. This is wrong, and causes more loss than it could ever give you winnings. It is pretty obvious that if it is too good to be true, most of the time it is. If it was really that easy, plenty of people would be millionaires now, having these “robots” trade for them.

Another mistake most novice do in Forex trading that you should avoid is trusting cookie-cut formulas sold by so-called trading gurus. There are no such thing is surefire way, or formula that will 100% allow you to win at all time. Once again, the simple rule of “if it is too good to be true, it is” applies here as well. The trading market is an unpredictable one, and it is impossible to come up with formulas, patterns or so-called surefire ways to always win. You need powerful and intricate strategies to be successful.

Avoid the mistake that most novice traders do, which is following Forex trading tutorials blindly. Tutorials are meant to help and educate, however, in order to succeed in Forex trading, it requires for one to invest time, energy and effort making proper planning, intricate strategizing, and calculating risks as well as following the latest news on the Forex market.

This brings us to another mistake – which is the lack of research, planning, strategizing and practice. There is no excuse to be lazy in the world of trading. Unless you do not mind losing money, you should put in effort and once you have a plan set, practice it. Never compromise in studying and researching as trading is a never ending journey.

Hope you learned a thing or two from this Forex trading tutorial – and what is most important is to continue learning and researching and find more sources to learn from.

What is Forex Market?
For the basic knowledge, forex market deals in money swap. In simple words its buying and selling of money. currencies need to be in pairs to held trading such as AUD/JPY or GBP/CAD as it is the exchange of unlike currencies; buying one currency and selling other currency at the spot so the difference result in loss or gain.

How Forex market works?
Similar to all markets, concepts of trading are similar and simple. People exchange currencies conditional on the fluctuation rates. To keep it simple, let’s take the following example.
• You are trading In EUR/USD currency pair, at the start of a year you bought 1000 Euros when the exchange rate was 0.90 So the transaction results in outflow of 900 dollars and inflow of 1000 Euros.
• mid of the year you exchanged 1000 Euros back into US dollars when exchange rate was 1.1 Therefore results in inflow of $1100 and outflow of same 1000 euros.
• Hence the net result is the profit of $200.
I.e. -$900 + $1100= $200.

Things you need to know.
Here are some necessary terms you need to know about forex;
• Spread - spread is the hidden cost termed as commission(cost of trade),its the difference in selling price and buying price.
• Margin - margin is one of the start up cost which is prerequisite for trading.
• Fundamental analysis - fundamental analysis shows wider aspects; assessing economy, social and political aspects. the concept behind is if economy is doing well so do the currency and vice versa. this type of analyis is appropriate for long term study.
• Technical analysis - technical analysis involves evaluation of historical prive movements. the most important thing to understand is trend and charts. Technical analysis primarily includes historical data; This analysis is referred to be mainly short term approach.
• Charts - Chart is one of the essential instruments used to study forex market. There are mainly three types of charts.
• Line charts - Line charts are simple and simple to study. line charts are drawn by taking opening and closing values.. It is best suited to analyze overall directions.
• Bar charts - bar charts also known as OHLC,i.e. high,low,open and close.
• top point represents high price
• horizontal line on the right of the bar represents closing price.
• line on the left side of the bar shows opening price.
• Lowest price is shown at the low point of the bar.
• Candle charts - this type of chart is a further modification of bar charts,addition in candle chart is the inclusion of colored candle stick body parts (colors may vary on various platforms).
• increase in price is shown in green color.
• Red color is for negative i.e. prices decreasing.

With understanding basic charts you can be a successful Forex trader and can earn a lot of money. With very low entry cost, less entry barriers and no time limits many traders and investors are attracted towards Forex trading. Be consistent and learn from your experiences. Focus on experience, to remain updated you need to study Forex glossary,which includes all the terminologies used in Forex markets. For more information take a look at our Forex trading tutorial!

Good luck!

The topic in itself may sound boring or may seem too jargon for many. Money is fun, but actually learning about how it is converted and how various countries trade with each other is an entirely different thing. I would imagine a lot of people falling asleep in the middle of a session or barely making it through because of the lack of will power to actually succeed in it.

Well, luckily, if you have finally selected your choice of Forex Trading Tutorial, you’d be ready to be blown away by the new method of having to acquire further learning from brokers’ or market makers’ analysis. Technology is developing at a very fast rate and everyone is also trying to keep up with it. The current trend in tutorials is to make it more interactive to the audience. You no longer need to waste your time reading and memorizing numerous book chapters and end up reading them all over since you lost grasp of the different values for each currency and the basic Forex concepts.

Forex Trading may definitely sound a bit intimidating, but learning about it through Forex Trading tutorials is definitely rewarding. This is true with both the process and the benefits. Most people describe it as a fun way to acquire knowledge about various currencies in circulation. We may have grown old but it is not too surprising to find out that using a more interactive approach in learning about the profits gained when one wants to go long on USD or EURO and/or other business transactions in the trade can increase the amount of information retained plus it makes the topic seem less threatening. It helps that the tutorial includes a detailed instruction on chart reading, financial risk management, technical analysis, and other news and trading announcements.

People who developed and structured the Forex Trading Tutorial in this approach allow the participants or the learner to be in a classroom environment where they can interact with other people who are learning about Forex Trading. An additional feature is the way the Facilitator of the program interacts with you, as well. You can address your questions directly and get real time responses and work with the facilitator, which gives you a feel of the way they provide attention to detail and the eager attempt of addressing your needs. At the end of each segment, you will also be provided some work and feedback regarding it, which helps you apply the knowledge that you have just acquired, making the Forex Trading Tutorial seem the more practical and efficient approach in learning and secures a successful trade career for the learner.