Friday, 23 March 2018

Trading Manual part 8: Forex Terms & Phrases


Forex Terms & Indices

As a professional trader, you need to understand everything about the various conditions we We have attempted to break down the main conditions for you in this part Of the course. You Will Have to be completely aware of these in order to continue the course! Make Certain That You Get your mind around them and don't hesitate to write us if There remain any questions.


A Pip is a measurement of how much the price has moved. points". A pips is the tiniest motion in the purchase price activity we use. A normal Forex Quote is composed of 5 digits 0,0000. The pip is that the 5"' digit which can be found at the quotation. So, Once the cost from GBP/USD moves from 1.2320 to 1.2346 we can Calculate the pip difference. 1.2346 -- 1.2320 = 26 pips gap. So, to Ascertain the worth of 1 pip, we should look at your account size as it Depends on the size of places you could choose. But also the quantity or risk you can Take plays an important role! To calculate the gain Depending on the Number of pips per Trade, you just multiply the amount of pips 26 together with the worth per pip $10 (for Example) = $260.


Some trades, and especially swing traders, are mentioning points in their trading routine. So, if the cost by a certain asset goes from 1.2300 to 1.2400 the has essentially moved by 1 point.

Base & Quote currency

Inside the Forex market, the currency units are quoted as currency pairs. The foundation Currency -- also called the transaction currency -- is your initial currency appearing in a Currency pair quote, followed closely by the next portion of the quote, known as the Quote currency or the counter currency. For bookkeeping purposes, a firm may use the Base currency as the national currency or accounting currency to represent all Profits and losses. Ln Forex, the base currency represents just how much of this quote currency is needed for You to receive one unit of the base currency. For example, if you were looking at the CAD/USD currency pair, the Canadian Dollar are the base currency and the U.S. Dollar would be the quotation currency. In Forex, currency pairs have been written as XXX/YYY or just XXXXXX. Here, XXX is the Base currency and YYY is the quote currency. Samples of these formats are GBP/AU D, EUR/USD, USD/JPY, GBP/JPY, EUR/NZD and EUR/CHF. When provided with a market rate, currency pairs indicate how much of the Quote currency is necessary to buy 1 unit of the supplied base currency. For Example, studying EUR/USD = 1.55 signifies that the $ 1|s equal to $1.55. So this essentially Says that in order to buy $1, a buyer should pay $1.55. The currency pair Quote is read in precisely the same manner when selling the base currency. If a seller Wants to sell, he will get $1.55 for this. Forex quotes are stated as pairs since investors concurrently buy and sell currencies. As an Example, when a buyer buys EUR/USD, it basically means that he Is buying Euro and selling U.S. dollars in precisely the exact same moment. Investors buy the pair if they Think the bottom currency will obtain value compared with the quotation currency. On The flip side, the more sell the set if they think that the bottom currency will lose value in Comparison with the quote currency.


In order to trade the Forex market, you'll need to find access through it. This can be Obtained through a broker. The agent gives us retail traders the ability to trade all Those currency pairs on the market. It is therefor perfectly understood that they Will need to earn money. Their income is earned through spread. They basically earn Money through every transaction which is made by them! spread example As mentioned before, there are two costs that could be found on a currency pair. The gap between these rates is Essentially what we call the "spread". This is basically the commission for the agent. So, when you are buying a currency pair You'll Be paying the Request price that is Quoted on the broker platform. When You're selling a currency pair You'll Be Paying the Bid cost that's also quoted on the broker platform. Next portion of the Trading guide forthcoming out shortly! So keep tuned!!

Trading Manual Part 7

morning trading

Daily analysis of the Market

As a trader, your trading routine starts after you awaken. You will Assess the current market status, and the price movement overnight. This shows you What happened to any positions that were open overnight. You may have to adjust your stop Losses or your stop loss might even been hit. But it's also perfectly possible that your Take profit was hit while you're sleeping. The key part is to enroll any stops or take profits on your free trading journal Which is included with this course! That is what most amateur traders neglect to do, or Simply don't need to do. However, this is exactly what separate the amateurs from the professionals. Your trading journey can be seen over a long period of time, Therefore it's crucial you update your journal regular to see your growth. We strongly suggest that you take screenshots of all your trade set-ups as. This will help You to analyse what went wrong and what went right when a trade played out. It will Surely enable you to improve your trading routine, which will provide you with the opportunity To spot high potential trade set ups in a short time period. As a professional trader you will only be trading a chosen amount of currency pairs. Trading a wide assortment of currency pairs will only bring you extra risk. We've proven That a professional trader who is focussing on a selected amount of currency pairs, Was able to achieve a lot more profit than a messy trader who had been trading tons of currency pairs. It's simply more efficient, and you will see that your analysis become market. morning financial news The essential part of the development from a trading pattern, will be assessing the Markets on certain times during the day. You'll Need to treat trading as you would You can not see trading as a fun game you play Whenever you have some time off, as this will certainly not bring you any profits on the long term. As a professional trader you will be monitoring in the beginning of this Main trading sessions as the London session and/or the New York/European session. It is dependent upon which one comes first in your particular time zone. The overall thing we attempting to explain here, is that a professional trader has pre- defined trading times. Besides that, they master their trading strategy perfectly, and They know the value of trading only a handful. This Ultimately enables them to have an adequate trading routine, which make them Understand that Less =More in the market. Next part of the trading manual releasing soon!!! Check out our Selection list of Agents: Top Agents 2018 Check before picking a broker, this list out! : Scam Brokers List

Trading manual part 6 types of trading cont.

Trading manual part 6 kinds of trading cont.

Trading counter trend wise

Counter trend trading is something we would not advise to beginning traders. It is often a risky and difficult move to trade against the overall trend. However, once you're more experienced, it is possible to attain some good profits from it. As you just learned a trade requires the space to breathe, you could potentially become successful in the counter trend way. Nevertheless, you always have to bear in mind that the risk is definitely greater! This is because often highs and lows are presented false on the graph. You need to know about the fact that counter trend trades are often short time. The overall results from a counter trend trade and its retracement is often based on the overall timeframe we're trading from. It's essential to be fully aware of the aggressiveness of the trade, to predict the effect from the counter trend. We see that traders often eliminate money when trying to execute trend trades. For example, a lot of counter trend traders want to buy new lows in a downtrend, to grab the up movement to a new Lower High. This is at least as risky as selling the new Lower Highs.

Day trading & Scalping

Day trading is defined as the buying and selling of assets within one trading day. Basically, a day trader executes around 5-10 trades on a daily basis. However, the market doesn't give a chosen amount of trading opportunities each day. This makes it a risky trading style, especially for beginning traders who often develop bad trading habits with it. The majority of the traders get impatient as they wish to take a certain amount of money from the markets every day. As a day trader, you would not let any places run overnight. This means that you need to be quite accurate in placing your take profit and stop loss targets. Discipline is a key element in trading, however, in day trading it is just a bit more important. You must be aware that the large liquidity pairs on the Forex market like EUR/USD etc. onlyjump around 60-100 pips a day. It follows that the movement from the pair can be very limited what makes it even more important to monitor the position closely so as to make any profit. Later in this class (terminology) we will go more in depth on many different conditions as "pips" etc.. Loads of day traders tackling a strategy that's a lot different than which was anticipated by starting traders. In life, we can say that professional traders usually spend a time with the markets.

Trading advises

As a professional day trader we would advise to take any more than 1-2 high profitable trade setup's on a daily basis. When placed, it is intelligent to take some time off from the markets because it is important not to develop any emotions when you are in the trades. Scalping is basically the expression used for locking in smallish profits by going out and in several trade set-ups on a daily basis. As a scalper you will be supporting the charts more frequently. You focussing on jumping in and out trades to gain or lose a small quantity of pips. Only experienced scalpers often trade without any stop losses or take profit target. The scalper that DO use it often have shitty risk to reward ratio's as you're mainly controlling the trade manually! Scalpels are essentially looking to lock in 5-10 pips a trade, and to do this multiple times throughout the day. Scalpers frequently use a high leverage to make adequate profits from your small price changes. This can add up quite fast as you could figure out how to do this over and over again throughout the day. However, you're constantly taking a risk! If you prefer to be behind the charts through the day, then scalping may a great opportunity for you. However, in the event that you rather analyse and think over every trade you make to decrease the risk, you won't suit scalping to well!

Trading manual part 5: types of trading cont.

Forex Swing Trading

Types of trading cont.

Swing trading efforts to capture gains in an advantage within an overnight hold to several weeks. As a swing trader, you prefer the higher time frames to base your own analysis on! Swing trading is an ideal trading style for traders that have Limited time available. It is often used by traders who also have a full time occupation, but also by students etc.. Forex swing trading efforts to identify moderate term trends where You merely input high probability trade set-ups. Most swing traders implement no more Than 5 trades per month, when mostly handling a minimum profit target of 150-200 pips. Those traders being puts from the group of "fundamental traders" today and Afterward; This is since it also takes time for both banks and financial institutions to induce the Price to a certain level by utilizing economic data releases.

Time frame analisys

As a swing trader you may Begin your studying  the higher time frames as the Monthly, weekly but also the daily graph. Knowledge on Time frames along with the accurate usage of this, are equally essential key components in reading a Price chart successfully. You should always Bear in Mind That a trade setup, which has been found on the two Hour Timeframe, can be in full contradiction with the overall everyday tendency. The risk to A trade will need to find its own It'll go from loss to profit and from gain to loss, before It eventually reaches its target. This is what we call "breathing" in trading. We will On swing trades, it is Vital to Deal with a Strict risk management to become and stay profitable with this trading fashion .

The direction of trend

The management of the real trend is vital to trading analysing the market. When Trading the Forex market, you have the option to earn money, even if the Markets goes down. We Will Need to be completely Aware of the overall trend before we could even think of opening a position. The swing trading fashion is a very lucrative and profitable way of trading when You fully master it. You have to know exactly where you ought to keep a watch out for. Swing trading will request a lot of patience, since you Won't Only Have to Await the Perfect trade set up; you should also await the trade to fulfil, what could possibly Take several weeks as the trade goes into bankruptcy immediately once you've entered it. Swing trading is one of the most psychological styles of trading. Placing Your funds at Risk for numerous days/weeks is something what will bring your emotions trade after trade. This is why It's Vital to completely control them before even thinking about Entering a trade! In the Crypto trading and forex guide we will be essentially teaching you the swing Trading style as well as the shorter timeframe style. As you already know, the Forex market is constantly moving; Either up down or sideways. Lt is important to recognise the various market stadiums. Besides that, You must fully understand them! Thus, let's take a quick look at the different trends. Try out 24Option  our recommended agent!

Trading manual part 4 Forex Trading - How to Trade Like a Pro

Styles there exists within the market. There are different styles with their own pro's And con's. Let's have an in-depth look into it! The Forex market is based on this trading style so And as you've heard previously, the traders are in the Direction, the stronger the cost will react! The different trading styles are perfectly combinable to get your overall vision on the market straighter. This will help you to get a better emotional Control and a stronger psychological game. So, let's begin with the trading style we trading strategies

Fundamental trading

Fundamental trading is better known under the term "news trading". Fundamental Trading is seen of one of the popular trading manners before trading. Fundamental analysis is the interpretation of statistical reports and economical indicators. Things like changes in interest rates, employment reports, and the latest Inflation indicators all fall into the realm of fundamental analysis. The technique is mainly used by traders who usually use the high importunacy news Releases so as to ascertain the direction of their trades. The concept behind this, is That on the brief term, the cost will follow the direction of the information results. They Given the impact the economic indicators could have on the market; it is important to know beforehand when these are due for release. Therefore, we are using an Economic calendar to check all news releases at the beginning of the day. On the Economic calendar you may also find the importance ofthe information (high, mid, low). Fundamental trading and news results left traders perplexed alone pretty often. To Give you an example; High important news is released about the U.S. Dollar. You Expect the price to create a price movement either up or down. However, the price From the EUR/USD does not move after the news results. Fundamentals are a great Complement on your everyday trading routine, but we should definitely not use them as our main source!

Technical analysis

Despite all the exotic and fancy indicators and trading tools Nowadays, technical Analysis focus just on the supply and demand on the market. Method of analysing the data that have been generated by previous market activity. As a technical analyst You're using charts and a few tools to identify Patterns. You need to think off support and resistance levels, but also trend Lines and Japanese candlestick analysis will be discussed extensively. As so many Traders using the way of analysing these days, it is reacted strongly on by the price. As lots of traders see a particular cost level as a potential change point from the past, As there are so many orders out there, the price will react on this level! Every trader has his/her own trading platform. Technical trading can be performed in Ways as there are so many strategy's and indicators . Some people Are comfortable with short term trading, but others prefer the long term trading style! Create their very own trading style in order to succeed. You need to be fully comfortable With your trading style in order to be a consistent trader. Continuation of different ways of trading in our next post, Don´t miss it!!

Trading Manual part 3: Who trades in the Forex market?

federal governments. Government itself and manages a policy that's approved by the authorities. However, some governments feel that an independent central bank is the ways Ahead in balancing goals as; handling inflation and keeping the interest rates low. This usually causes economic growth. Bank may be, they usually have regular meetings with the government to discuss the monetary policy. Central banks are responsible for fixing the Forex rates. All action which is taken by a Central bank is largely done to stabilize or to compete a nation's economy. All their Decisions, policies but also their conclusions trigger the increase or reduction in the Value of their own currency rates. This can be found in inflation and certain things as crypto investor

Next to the central banks and governments, banks and financial institutions count to A number of the largest participants that are involved with Forex transactions. Most People who need Foreign currency execute these transactions via their community bank. Those transactions are usually made for travelling etc.. The place where banks are Trading currencies with each other is known as the "interbank market". Banks make Currency transactions with each other via electronic brokering systems. Sometimes the trading has been done for clients, but most of the time the enormous Capital of the bank is traded to attain sky high profits. Banks, in general, act as traders in the sense that they are willing to buy/sell a Currency in the bid/ask price. 1 way that banks make money on the Forex market


Additionally companies belong to the principal facets of the Forex market. They are constantly Exchanging monies to fulfil various business transactions. You must remember That all those businesses use the services of commercial banks because they do Not have direct access to the currency exchange market. So let's give you an example. A bicycle producer who is located in the United States imports different parts from Germany; As you've noticed he already need 1 Foreign currency. If he sells the closing Product to multiple countries, he'll constantly need to exchange the profits into USD. So, you can clearly make up the exchange rate's DO matter for him.

Government and Central Banks

Investors (small) and Retail traders

As mentioned earlier, with the term retail traders We're referring to people just like Ourselves; Trading in their own home- or small offices all around the world. When we Compare the overall trading volume to the banks and large financial institutions, we Can see that its extremely low. However, these days this sector is growing extremely fast. This can be explained quite easily; Nowadays Forex trading is very You Have to be aware That Retail traders access the market indirectly. They use an online broker platform, or a bank. The Majority of the trades placed are executed after their price action analyses Which we will teach you in this program. These participants also trade so as to make Profit, rather than to drive the cost to a certain degree...! Do not get scammed! Check our Scam agents black list:  SCAM BROKERS

Thursday, 15 March 2018

Trading manual Part 2: Forex vs Stocks

A major difference between the Forex and stock market is the amount of trading There are 4 major currency pairs; EUR/USD, USD/JPY, GBP/USD, USD/CHF and you will find 3 commodity pairs, USD/CAD, AUD/USD, NZD/USD. More on this later. All other currency pairs are called cross currencies, which are basically different mixtures of the very same currencies mentioned previously. Currency trading is simpler to follow along as you just follow these rather than picking form 10,000 of shares to find the very best deal.
The one thing a   Currency  trader has to do is keeping up on the information regarding these major 8 nations.

Stocks market and decreasing volumes

Fairly often, the stock markets may hit a lull, Leading to shrinking volumes and Action. As a result, It Might Be Difficult to open and close positions when you Want To do so. In downward markets, it's a hard job for a stock trader to create decent or Even profits. It is Hard to sell from the U.S. Stock market as it understands strict principles and regulations. On the other side we've got Forex which offers you the Chance to Gain in both up and downward markets. The same time within every transaction. So shorting is, hence, part Single trade you make. In addition, since the currency market is so liquid, traders are not Required to await a swing high in order to go into a sell position that's the rule in The normal stock market.

Liquidity of Currency Forex market

On account of the high liquidity of the foreign exchange market, the margin is low and also the leverage is large. This is not possible to find about the normal stock market, since it will not provide you such low margin rated. Most margin dealers in the stock market need at least half their value of the investment available in their margin balance. As a Forex dealer we'll only need as few as 1%! Apart from that, commission in the stock market is way greater than in the foreign exchange market. Traditional stock brokers request commission fees in addition to their spreads, plus the fees that have to be paid into the market. Forex brokers only take the spread as their fee for an accomplished trade. Next part coming out soon Stay tuned! Check out our strategy page: Trading Strategies for forex and crypto.

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