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Forex Tutorial For Absolute Beginners On TAF

Discussion in 'Forex Trading Discussion' started by Abah Moses, Sep 21, 2018.

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  1. Abah Moses

    Abah Moses Pro Member Vip Member

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    Welcome to The world of Forex....... We buy,
    we sell, make profit..
    This tutorial will be a step by step one. And I will try to come to the minimal of the lesson. it will be a one topic person day class and questions can be asked at the end of each session.
    Believe me, this is an opportunity to learn the forex trading system.
    The Tutorial will be on
    — Introduction to for ex
    — How forex works
    — How to start trading without a dime
    — How to get 95% success rate Forex Signals
    for free
    — How to predict market trend
     
    Last edited: Sep 23, 2018
  2. Abah Moses

    Abah Moses Pro Member Vip Member

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    <p>LESSON 1: Forex 101 </p>

    <p>The First Step To Trading Forex in the world of market, we buy and sell. You always make exchange, sometimes we make huge profit while some other time we lose &mdash; that is forex. This Tutorial will be in series where we will be discussing forex step by step for better understanding. What is Forex? Forex is an acronym for Foreign Exchange, also known as FX or currency trading. It is a decentralized market (place) where currencies are traded. FX is quite synonymous to buying and selling currencies with the purpose of making profit off the changes in their value. As a matter of fact, currencies are so important globally that you always need it for any business transaction especially foreign trade and business. For example,you are residence in Nigeria and you want to buy shoes from Italy. You will have to exchange your capital to (EUR) in order to make the purchase. More so, The high need of currency exchange has made For ex market the biggest market in the world, larger than the stock market or any other. There is also high liquidity in the forex market.</p>

    <p>4 Important Things About Forex 1. Forex is a Decentralized Marketplace: When we say forex is decentralized, it means there is no central marketplace for foreign exchange.Instead, currency trading is conducted electronically over-the-counter (OTC). It means that all transaction are carried out via computer networks between traders around the world, instead of one centralized exchange.</p>

    <p>2. Forex has higher liquidity: Liquidity determines how fast you can get your hands on your cash. Forex market gives opportunity to every traders (begineer or expert) equal access to their cash whenever they want it. This features has made the market place the largest. 3. Forex is 24/5 Marketplace: The forex market is open 24 hours a day, five and a half days a week which gives traders break and opportunity to relieve off the market. 4. The Forex Trading Platform: Forex market is decentralized, so trading are done electronically between computer networks. Trades are done on a trading platform with terminals and the most commonly used is the MT4 (Meta Trader 4) and MT5 (Meta Trader 5). We also have the web terminal, it is just like a web version of Meta traders. Simple Overview of The Modern Forex In Forex, traders buy and sell currency on a platform at a click on order to make profit. A trader open a buy position if they believe the value of a specific base currency will increase Otherwise they sell. Trading forex might not have been that lucrative, if not for leverage. With leverage you can trade with more than your capital in order to make profit with small pips changes.</p>

    <p>NOTE: Forex is a good way of making good income only with based knowledge and without greed.</p>
     
    Last edited: Sep 25, 2018
  3. Abah Moses

    Abah Moses Pro Member Vip Member

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    <p>LESSON 2: Forex Tutorial: Currency Quotes Vs Currency Pairs In Forex, both Currency quotes and pairs are important tool in the marketplace. Despite their cruciability, learning the tool has always been a problem for beginners and even traders sometimes find it confusing. So I imploy you to stay focused and read carefully through the entire writing. The tutorial will be from the fundamental of currency's pair and quotes and how they works. Quotes in the currency can be a bit confusing, when currency is quoted; it is been related to another current forming a currency pair. This done if you are trying to determine the exchange rate between the two paired currency e.g. EUR/USD The first currency is called the Base Currency, while the second currency is called the Quote currency. The base currency is always equal to one unit of that currency. In this case, it is equal to one Euro (1 EUR). The quote currency signifies the amount of money in the quoted currency that will be exchanged for 1 unit (1 EUR) of the base currency. For example, EUR/USD = 1.1400 This means that, in order to have 1 EUR you have to pay 1.1400 USD Also, there are of two types of currency qoutes, the direct currency quotes and the indirect currency qoutes. The direct currency quotes is the type of current quote where the domestic currency is the qouted currency e.g. EUR/USD while the indirect currency quote is where the domestic currency is the base current. Bid and Ask Price EUR/USD = 1.1400/02 The Bid price (1.1400) is the buy an the ask price (1.1402) is the sell. In relation to the base currency, when buying the ask price is the amount of quote currency to be paid in order to buy one unit of the base currency. Also the bid price will be paid when selling to exchange one unit of the base currency. The bid and ask price is the key foundation to forex profit, the changes of this price determines profit and loss.</p>
     
    Last edited: Sep 25, 2018
  4. Abah Moses

    Abah Moses Pro Member Vip Member

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    LESSON 3: How To Trade Forex Like a Pro: From Beginner To Professional Trader Trading currency in the forex market can be very profitable as well as unproductive. You see guys making a lot of money with forex trading but some others it is the contrary. I believe you might have been thinking "What do you mean?". Sure, trading forex is like fighting a battle — you fight with skills, great armor and fearful ammunition. Both brawlers fights for only one single reason which is to be a conqueror but eventually, only one of the two parties will win. trading Forex, Forex tutorial, learn Forex, how to trade Forex "Why", "How", are both good questions. In simple answer, the winners has what it takes to win.That is synonymous to Forex trading, no one will ever trade with the intentions of losing their money. We all want to win big sum of money but some traders will still end up losing their whole capital. "What it takes", If you don't have what it takes you can never see the profit in trading forex. Believe me, this is not to scare you away from trading forex, it is my own way of encouraging you to trading forex. Success in trading forex is simply a reward of preparation. getting prepared in forex means having a based knowledge of forex trading as a course. Yeah! You wanna earn money, so you give your time to learning. To be a professional trade you have to learn like a professional. So this post will basically be on how to trade forex from basics. here you get the understanding of forex trading. How To Learn Forex Trading Learning Forex trading presently should be very easy a simple google search will give you the beginner education but learning how to trade like a pro is a way of taking your forex education to the next level. So, this tutorial will be divided into two part — firstly we get to learn about forex the components of forex trading and secondly we learn risk management tools in forex trading. Components of Forex Trading This aspect of the tutorial will give you the building blocks of forex trading and the basic terminologies in forex trading 1. Forex Brokers "Forex brokers are firms that provide currency traders with access to a trading platform (e.g. MetaTrader 4) that allows them to buy and sell foreign currencies. A currency trading broker, also known as a retail forex broker, or forex broker, handles a very small portion of the volume of the overall foreign exchange market. Currency traders use these brokers to access the 24-hour currency market." — Investopedia Forex brokers are very important in trading forex. Like I wrote in previous tutorials, Forex market is decentralized. It was through the help of broker we get access to trading forex without stress. With the advent of internet, forex brokers made trading forex so easy up to trading on your smartphone (Android and iOS) and computer with their easy to learn trading platform (MetaTrader, Web Terminal e.t.c). So in order, to start trading you must set up an account with a forex broker e.g. (FBS or XM). There you have to choose the account type such as micro and standard. I Always encourage others to read reviews on forex brokers and their account types before setting up an account with them. Read Also — Forex 101: First Step To Trading Forex In addition, forex brokers do not only help clients buy and sell assets; they often offer other related auxiliary services. These type of services includes trading tutorials, research services, technical analysis, asset price charting,copy trading and account management services. 2. Leverage Trading forex might not have that yielding (especially for traders with low capital) if not for the leveraging of the traders deposit. the term "Leverage" is the technique of using a loan in order to increase the size of a trade or investment, which in turn increases the potential risk and reward. It is like a double edge sword, it might be rewarding as well as risking. In forex market, rates changes are so minimal up to the level that exchange rates may only change by a fraction of a penny in a day. So, how do we increase our earnings? It is all because of the leverage. investors use leverage to profit from the fluctuations in exchange rates between two different countries. Leverage in forex trading is activated through a loan that is provided to an investor by the forex broker that is handling the investor’s or trader’s forex account. According to the dictionary, leverage is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest. For example, you are controlling $5000 with a deposit of $500. Typically, there are several types of leverage amount e.g. 50:1, 100:1,200:1, 300:1, 500:1, 1000:1, 3000:1. The Fifty to one (50:1) leverage means that for every $1 you have in your account you can place a trade worth $50. As an example, if you deposited $100, you would be able to trade amounts up to $5,000 on the market using 50:1 leverage. This is applicable to all type of leverage e.g. The one thousand to one leverage (1000:1) will allow you to place a trade worth $1000 with $1. 3. Margin Margin is the amount of money needed as a “good faith deposit” to open a position with your broker. It is used by your broker to maintain your position. Margin is the amount of money you deposited as a percentage in relation to the account leverage type. For example, you open a 1000:1 account leverage type with $100. The $100 deposited is the margin you have given to use the leverage which is usually expressed in percentage. a 1000:1 leverage is equal to a 0.1% margin. Read Also — Forex 101: First Step To Trading Forex Risk Management Tools In Forex Trading Risk management is a very crucial aspect of trading forex. On a serious note, you can not trade forex without losing at all — may be I'm wrong, I don't know. So in order to make much more money rather than losing, you have to manage your trading risk. Here we will be looking at 2 tools — Lot sizes — Stop loss/Take profit 1. Lot Sizes Lot size is simply the unit of your capital you which to use in trading. In managing risk, I always use 0.5% of the deposit per trade and nothing more than 5% overall open positions. For example, an account with $200 deposit (using a 500:1 leverage) will have to use 0.01 lot size with a maximum of 10 open positions. Also an account with $2000 deposit will have to use 0.1 lot size if the traders which to. The simple concept is not to open overall position (open trade) more than 5% of the total capital. This is the lot size risk management I have since and it is yielding. 2. Stop Loss and Take Profit The Stop loss and Take Profit are very important features in managing risk in forex trading. They are used in minimizing loss and making of maximum level of profit. The Stop loss and Take Profit enables you to close any open position at a specific point regardless of your presence. You can set a stop loss (normally I set 30–50 pips) in order to reduce your loss — the open position closes if it hit the stop loss leaving you with a minimum loss. Also, The Take Profit allows you to set a maximum point of profit you want to close an open positions (I normally use 50-100 pips). Please feel free to ask any questions
     
    Last edited: Sep 27, 2018

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