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Classic Forex Trader Learning Forex

1) The document provides an overview of forex trading, explaining that it involves exchanging currencies at a determined price, using currency pairs like EURUSD. 2) It describes a forex trader as someone who buys currencies at low prices and sells them at high prices, making a profit on currency movements. The document also discusses different currency base currencies. 3) The steps for forex trading are outlined, including using a regulated broker, understanding spreads and leverage, and implementing risk management strategies like stop losses and take profits to minimize losses and lock in gains.
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0% found this document useful (1 vote)
2K views5 pages

Classic Forex Trader Learning Forex

1) The document provides an overview of forex trading, explaining that it involves exchanging currencies at a determined price, using currency pairs like EURUSD. 2) It describes a forex trader as someone who buys currencies at low prices and sells them at high prices, making a profit on currency movements. The document also discusses different currency base currencies. 3) The steps for forex trading are outlined, including using a regulated broker, understanding spreads and leverage, and implementing risk management strategies like stop losses and take profits to minimize losses and lock in gains.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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forex step by step pdf

call: 068 053 6880


FOREX STEP BY STEP

What is forex?
Is the exchange of currencies at a determined price.

Currencies are in pairs e.g EURUSD.

What is a forex trader?


someone with a beautiful car no that's not it.

Forex trader is someone who is buying currencies at the lowest price. Selling them at the
highest price.

Obviously you can't buy something at high price.


Example if a trader buy EURUSD he believes that EUR price will go up while the price of USD is gonna
go down

When he sell EURUSD he think EUR is gonna go down then USD up.

EUR is the base currency🙈

GBPCAD

GBP is the base currency means the graph in forex represent the base currency😃

When opening the graph of AUDUSD the graph is showing the price of AUD. When the graph goes up
means the AUD is stronger that USD.

How to trade currency


Step 1

You need a broker to trade forex.

What is a forex broker?


Is a particular company online might be a website which gives a trader opportunity to buy and sell
currencies. The forex trader invest his/her money in the broker then trade using the platform of trading e.g
meta trader4 then when they made money they withdraw using their forex.

Don't use all


brokers!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!
There are thousands of brokers out there although some of them are not loyal we already know which
one to choose.

When looking for a broker check this 3 conditions.

1. Is the broker a regulated one or not. A regulated broker is the one which is licenced to offer you the
opportunity to invest in them.
We can't work with the company that isn't licensed.

2. Spread you need to be careful even if the broker you're using is regulated they might manipulate you
charge you commissions to make sure that you're the one losing money not them.

3. Leverage make sure you understand the leverage in forex because that's were brokers get you.😭
RISK MANAGEMENT IN FOREX

Forex trading is very high risky business we can't just say EUR is going to risk against United States
Dollar and risk all our money hoping to make millions immediately that's not trading but gambling.

Risk management in forex allows you to choose a type of risk whether you can use big lot size or small
lot size depending on the amount of investment.

Example of the accounts

$10 lot size of 0.01


$100 lot size of 0.10
$1000 lot size of  1

I already explained risk management.

TIMEFRAMES IN FOREX

Although a trader buy and sell currencies he has to understand which time frame is going to be good for
him.

Example we have 1 minute, 5 minutes and 15 minutes.

Does the time frame affect the money you will make? No! timeframe gives you an Idea of how long
should you trade example 1 minute chart(graph) the timeframe means every candlestick is going to take 1
minute to form. Even if you use H1 timeframe the candlestick will take 1 hour to form before the next
one appears.

What is Stop loss and Take profit.

If you already watched my video you already know that stop loss means you are actually making a limit
to your trades. If you opened orders and you don't want to end up losing all your money then stop loss in
there for you. Stop loss actually helps you minimize your losses and increase your wins.

Take profit
On the other side in forex we have targets if you open a position(order) already you want to make a
certain amount of money. Example if you want to make $10 you can add 100 pips (points) take profit to
your position in your account if you used 0.10

Example you open a new order at 0.6800 then for you to make $10 you can use 100 pips take profit with
lot size 0.10.

Lot size× pips


0.10×100pips =$10
That's how to calculate it....

Similarly with stop loss you have to use the same calculations to know how much you're able to loss per
trade.💵

TYPES OF FOREX TRADERS

Fundamental trader
Those are traders who focus on economics they focus on the news and make that as their opportunity to
make money although there are only 10% of traders who trade fundamentals.

Most popular one is


Technical analysis traders. They use the graph(chart) to analyse and make a guess if currency will
go up or down.
Technical traders use price action or indicators tools to trade forex.

In technical analysis we have categories of trading.

Examples of categories.

Scalping
Day trading
Momentum trading
Swing trading
Position trading

Scalping- make trades and hold them for a short period of time.
The purpose is to make money quickly and get put of the market the same day.

Day trading- make trades but ensure that you close all the positions at the end of each day.

Momentum trading- a trader buy or sell the currency according to the current strength of it.
Example AUD shows strong uptrend a trader will buy hoping it will continue going up because of it
will be showing strong movement.

Swing trading-trader make decisions and open trades which he will run them over a period of a few
days to several weeks.

Position trading-refers to a person who trade and holds his trades for an extended period of time with
the expectation that it will appreciate in value. He is less concerned with short-term movement.

Mastering one style of trading is very important.

“Don't just trade forex know what type of trader you are”
Thanks
WhatsApp MR CFT @,. +27680536880

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