FUTURE On Trading
FUTURE On Trading
Table of Contents
Forex, short for "Foreign Exchange," is the global marketplace where currencies are bought and sold. It’s the
biggest and most liquid financial market in the world, with over $7 trillion traded daily. But for me, Al-
Arabi, it wasn’t just about numbers. It was about freedom. It was about control over my time, my income,
and my future.
When I first heard about Forex, I didn’t even understand what a currency pair was. I just heard people say,
“Buy low, sell high.” But let me tell you—Forex is far more than that. It's about predicting how the value of
one currency will move against another. For example, if you buy EUR/USD, you’re buying the euro and
selling the dollar. If the euro gains strength, you make a profit. If it falls, you lose.
But here’s what most people don’t realize: Forex trading is not gambling. It's a skill. A profession. And like
every profession, it demands discipline, education, and patience.
As Johnny, I say this: If you understand the heartbeat of the market, it’ll whisper secrets to you. But if you
rush it, it’ll swallow you whole.
Long before computers and mobile phones, currency exchange existed through trade routes. Gold, silver,
spices—these were early currencies. But modern Forex began in 1971 when the Bretton Woods system
collapsed, allowing currencies to float freely against one another.
Fast-forward to the 90s: Banks dominated the market. Only institutions with millions of dollars could trade.
Then came online trading platforms. Suddenly, everyday people like me—like you—could open an account
and participate.
The game changed. Power shifted.
When I, Al-Arabi, discovered this, I knew I had to learn everything. I wasn’t just trading money; I was
stepping into a history that shaped empires and destroyed nations. Currencies are political. Emotional.
Strategic. Forex isn’t just financial—it’s psychological warfare on a global scale.
Topic 3: Market Participants and Their Roles
Who are the players in this massive game? It’s not just you and me.
1. Central Banks: They’re the big guns. When they raise interest rates, their currency gains strength. When
they print money, value drops. Watch their every move.
2. Commercial Banks: They handle massive transactions daily. They influence liquidity.
3. Hedge Funds: Aggressive, strategic, and well-funded. They love volatility.
4. Corporations: Businesses exchange currencies for imports, exports, and expansions.
5. Retail Traders: That’s us. Small, fast, hungry. But don’t underestimate us. A sharp retail trader can
outsmart even the big players.
When I realized who I was up against, I didn’t feel small. I felt challenged. And challenges make legends.
Topic 4: Understanding Currency Pairs
Currencies are always traded in pairs. Why? Because you’re comparing the value of one against another.
For example:
EUR/USD = 1.1200 means 1 euro equals 1.12 US dollars.
The first currency is the base. The second is the quote.
So if you believe the euro will rise, you buy. If you believe it’ll fall, you sell.
There are 3 types of currency pairs:
Major pairs (e.g., EUR/USD, GBP/USD)
Minor pairs (e.g., EUR/GBP, CAD/JPY)
Exotic pairs (e.g., USD/TRY, EUR/ZAR)
When I started, I made the mistake of trading exotic pairs without understanding their wild behavior. The
spreads were huge, and the moves unpredictable. Lesson learned: Start with majors. Master the basics before
you chase the chaos.
Topic 5: How the Forex Market Operates
Unlike the stock market, Forex is decentralized. There’s no single physical location. It runs 24 hours a day,
five days a week. That’s right—money never sleeps.
The market moves through:
London Session (the most volatile)
New York Session (big news and volume)
Asian Session (slow and steady)
This is why I, Al-Arabi, would sometimes trade at dawn or midnight. Because opportunity doesn’t knock
during business hours—it knocks when you’re awake and ready.
Trading happens over-the-counter (OTC), meaning brokers connect traders via electronic networks. Prices
fluctuate based on supply and demand, economic news, and geopolitical events.
Topic 6: Comparing Forex with Stocks and Crypto
Al-Arabi's advice? Start with Forex. It's mature, liquid, and predictable compared to crypto's chaos and stock
market’s slow tempo.
Topic 7: Importance of Liquidity and Volatility
Liquidity means how easily you can buy or sell a currency without affecting its price. More liquidity =
smoother trades. The Forex market is the most liquid in the world. That’s your advantage.
Volatility means how fast and how far prices move. High volatility brings opportunity—but also risk. Learn
to love volatility, but respect it. Like fire, it can warm you or burn you.
One night, I placed a trade during high volatility without a stop-loss. I slept. Woke up. My account was
nearly empty. That was the night I learned this rule:
Volatility without risk management is suicide.
Topic 8: Trading Sessions and Time Zones
I remember it like yesterday. A dusty internet café. The sound of generators. A young Al-Arabi scrolling
through YouTube when a thumbnail caught my eye:
“Make $500 a day with Forex.”
I clicked. I watched. I got hooke
But I didn’t jump in immediately. I studied. I read. I practiced. And then I lost. Again and again. I blew my
first $100 account in 3 days
But I didn’t stop
Because deep inside, I knew—I wasn’t chasing riches. I was chasing mastery. Control. Freedom. Legacy.
And that’s what this book is about. Not just learning to trade—but becoming a trader. A real one.
Before you even think about pressing “Buy” or “Sell,” you need a home—a broker.
A Forex broker is your gateway to the market. They give you access to the currency pairs, handle your
orders, and manage your account. But not all brokers are equal.
Here’s what you need to look for:
1. Regulation – Is the broker licensed by a respected authority (like FCA, ASIC, or CySEC)? If not, run.
2. Spreads & Commissions – Lower is better. Tight spreads mean you keep more profit.
3. Execution Speed – Every second counts. Fast execution saves your trade.
4. Deposit & Withdrawal Methods – Can you deposit easily from your country? Can you withdraw without
drama?
5. Customer Support – When your money is involved, you need answers fast.
Al-Arabi’s Advice:
My first broker scammed me. They manipulated my trades, delayed my withdrawals, and then vanished.
Since then, I learned to research, test demo accounts, read reviews, and only go live after full confidence.
Choose wisely. A bad broker can destroy a great strategy.
Topic 2: MetaTrader 4 vs MetaTrader 5
The two biggest platforms in Forex trading are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Here’s a
quick breakdown
Al-Arabi’s Opinion:
I started with MT4. It’s simple, stable, and powerful. Today, I use MT5 for more advanced tools and
smoother execution. But don’t overthink it—pick one and master it. The platform is just the vehicle; you are
the driver.
Al-Arabi’s reminder: Always watch quity and margin level like a pilot watches fuel. You might be flying
smoothly—but if your tank is empty, it’s game over.
Topic 9: The Role of VPS in Forex Trading
A Virtual Private Server (VPS) is like a cloud computer that keeps your trading platform running 24/7—
even when your laptop is off.
Why use it?
Stability: Trades don’t disconnect due to power outages
Speed: Faster execution
Perfect for: Expert Advisors (EAs) and automation
When I moved to VPS, my slippage reduced and my trades became more consistent—especially during
news spikes.
Topic 10: My First Trade – Lessons from a Beginner’s Mistake
It was EUR/USD.
It was midnight.
I had no plan. Just excitement.
I pressed “Buy.”
Watched the candle fall.
Panicked.
Closed the trade.
Lost $8.50.
Doesn’t sound like much. But it felt like I lost $8,000. Why? Because I realized:
Emotion had driven me. Not logic.
From that day, I told myself:
> “Al-Arabi, you will never trade based on hope again. Only skill.”
Technical analysis is the art and science of reading charts—nothing more, nothing less.
While fundamental analysis focuses on economic news and reports, technical analysis looks at past price
movements to predict the future.
You study:
Price charts
Candlestick patterns
Indicator
Support and resistanc
Al-Arabi’s view?
“Technical analysis is like studying the heartbeat of the market. You don’t need to know why it moves. You
just need to know when it wants to move—and where it might go.”
Topic 2: Candlestick Charts Explained
Forget line charts. Candlesticks are the real language of traders.
A candlestick shows:
Open price
Close price
High and low
Timeframe (1 min, 15 min, 1 hour, daily, etc.)
Each candle tells a story:
Bullish Candle (usually green): Price closed higher than it opened
Bearish Candle (usually red): Price closed lower than it opened
Example:
Long wick on top = rejection from the upside (sellers pushed price down)
Long wick on bottom = rejection from the downside (buyers stepped in)
Johnny’s tip? “Candles don’t lie. They show fear, greed, and decisions being made by billions of dollars.
Topic 3: Support and Resistance Zones
These are key areas on the chart where price tends to react.
Example:
If price is above 50 EMA and 200 EMA, the trend is bullish. If it’s below, the trend is bearish.
Johnny’s gem: Use EMA crossovers. When the 50 crosses above the 200, it's a golden signal (Golden
Cross). Reverse it and it’s a Death Cross.
Topic 6: Relative Strength Index (RSI)
RSI is a momentum oscillator—it tells you whether a pair is overbought or oversold.
RSI above 70 = overbought (potential sell)
RSI below 30 = oversold (potential buy)
But don’t trade RSI blindly. Always combine it with support/resistance or a trend
Al-Arabi’s trick:
RSI divergence. If price makes a new high, but RSI makes a lower high—that’s a warning. Price might
reverse soon.
Topic 7: MACD – Moving Average Convergence Divergence
MACD is a powerful trend-following indicator.
It consists of:
MACD line
Signal line
Histogram
Buy Signal: MACD crosses above signal line
Sell Signal: MACD crosses below signal line
Also watch for MACD divergence—it’s a great clue that momentum is shifting.
I, Al-Arabi, use Bollinger Bands during calm market hours to prepare for big breakouts.
Topic 9: Chart Patterns – Flags, Triangles, and Head & Shoulders
Patterns are price behavior in repeatable forms.
Key patterns:
Flags: Small consolidations after a big move. Signal continuation.
Triangles: Price squeezes into a corner—ready to break out.
Head & Shoulders: Reversal pattern. Signals a major trend shift.
Al-Arabi’s Journal Entry:
“My biggest 300-pip win came from a head and shoulders on GBP/USD. I waited, confirmed the neckline,
set my stop, and trusted the pattern. It dropped like a rock.”
Learn the patterns, then wait for them. Don’t force them. The market reveals itself to the patient.
Topic 10: Combining Indicators for Confirmation
One indicator alone can deceive. But when multiple tools say the same thing, the signal is stronger.
Example strategy:
Use trendlines for direction
Use EMA to ride the trend
Use RSI to find entrie
Use MACD for momentum confirmation
Johnny’s Law:
“Never trust one voice. Let the whole choir sing before you move.”
The goal isn’t to use more indicators. It’s to use a few—masterfully.
Fundamental analysis is the study of economic, political, and social events that affect currency strength.
Unlike technical analysis (which looks at charts), this method analyzes:
Central bank decision
Economic indicator
Political instability
Inflation, unemployment, interest rates
Al-Arabi’s Reflection:
“I once ignored a rate decision and lost a full week’s profit in five minutes. That day, I learned: the market
doesn’t care if you’re not ready. It moves—with or without you.
Topic 2: Major Economic Indicators That Move the Market
Here are the top events to watch:
1. Non-Farm Payrolls (NFP) – U.S. jobs report, released monthly
Huge USD mover
More jobs = strong economy = USD bullish
2. Interest Rate Decisions – From central banks (like the Fed or ECB)
Rate hike = currency bullish
Rate cut = currency bearish
3. CPI (Inflation Data) – Measures cost of goods
High inflation = rate hike expectations = bullish
4. GDP Reports – Overall economic growth
Positive GDP = strong economy = bullish currency
5. Unemployment Rate
High unemployment = weak economy
Johnny’s tip:
“Watch the calendar like a hawk. One overlooked news spike can ruin your setup.”
Topic 3: Understanding Central Banks and Interest Rates
Central banks (like the Federal Reserve, European Central Bank, or Bank of Japan) control a country’s
monetary policy.
Their main tool? Interest rates.
Hike rates to control inflation
Cut rates to stimulate growth
When a bank hikes rates:
Currency becomes more attractive
Investors seek higher returns
Demand rises
Al-Arabi’s Example:
When the Fed raised rates in 2023, the USD/JPY shot up 800 pips in 2 weeks. I caught 250 pips using
nothing but a clean support zone and an understanding of the rate decision
Topic 4: The Impact of Inflation, Employment, and Growth Data
Inflation is the silent killer of currencies.
Controlled inflation = good
Too high = dangerous
Too low = stagnant econoy
Employment Reports show consumer health. If more people work, more money flows.
GDP shows the nation's financial pulse.
As a trader:
Compare actual data vs. forecast
Big surprises = big movements
Johnny says:
“Markets don’t move just on numbers—they move on surprises.”
Topic 5: The Forex News Calendar – How to Read and Use It
Sites like ForexFactory, MyFxBook, and Investing.com have economic calendars.
Here’s how to use it:
Red = High impact
Orange = Medium
Yellow = Low
Look at:
Time of release
Previous data
Forecast
Actual when released
Strategy:
Avoid trading 15–30 minutes before and after major red news—unless you're specifically trading the news.
Al-Arabi’s Journal:
I once entered EUR/USD 10 minutes before NFP. News hit, spreads exploded, slippage happened, and my
SL hit 30 pips higher than planned. Lesson learned: News respects no one.
Topic 3: Position Sizing – How Much Should You Risk Per Trade?
Never risk randomly.
The golden rule:
Risk 1–2% of your account per trade.
Formula:
If you have $1,000
1% risk = $10
SL is 20 pips
$10 ÷ 20 pips = $0.50 per pip = lot size
This ensures:
You survive losing streaks
You grow steadily
You protect your mental health
Al-Arabi’s Note:
At the start, I overleveraged. A 100-pip move wiped half my account. When I shifted to small, calculated
risks, my account grew—even slowly.
It’s not speed. It’s survival.
Topic 4: Stop Loss and Take Profit – Why You Must Use Them
A Stop Loss (SL) protects your capital.
A Take Profit (TP) protects your profits.
Never trade without SL.
Reasons:
News can spike violently
Emotions can blind you
Market can go irrational longer than you can stay solvent
Use logical SL:
Behind support/resistance
Not just fixed pip numbers
Al-Arabi’s Example: I once went to sleep without SL on gold. I woke up to a -$2200 loss. Never again.
TP is just as important:
It stops you from being greedy
It trains you to accept success
Johnny’s advice:
*“If you can't decide when to exit, the market will decide for you—and you won’t like it.”
Topic 5: The Power of Compounding – Let Your Profits Grow
Let’s say you grow your account by 5% per week:
Start: $1,000
Month 1: $1,215
Month 6: $2,900+
Month 12: $9,300+
That’s the magic of compounding.
But it only works if:
You don’t overtrade
You reinvest smartly
You don’t withdraw too early
Al-Arabi’s Rule of Growth: “Focus on percentages, not pips. Grow the balance, not the ego.”
Topic 6: Emotional Control – The Real Key to Trading
Track:
Entry & exit
Why you took the trade
What went right or wrong
Emotions during the trade
This helps you:
Spot patterns
Eliminate mistakes
Strengthen discipline
Al-Arabi’s Ritual:
At the end of every week, I review all trades. I highlight the good ones in green. I mark red zones for errors.
This habit helped me grow faster than any course.
Johnny’s reminder:
“Don’t fall in love with a platform. Fall in love with clarity. Use what gives you peace and control.”
Conclusion:
If you’re starting out—MT4 is great.
If you want versatility—MT5 is strong.
If you’re a speed trader—cTrader may be your best weapon.
The platform doesn’t make the trader.
The trader commands the platform.
Chapter 8: Strategy Development and Backtesting
Adaptation Example:
Trend strategy fails in range.
Range strategy fails in trend.
How I Failed:
I once used a trend strategy in a range. I lost 6 trades straight. I didn’t recognize the condition. That loss
taught me environment first, entry second.
Topic 5: Backtesting – Testing Your Strategy on Historical Data:
Backtesting means checking how your strategy would have performed in the past.
Steps:
1. Choose pair and timeframe
2. Scroll back (no peeking ahead)
3. Apply your rules one by one
4. Record results: Win/Loss, Risk-Reward
5. Analyze performance
Tools:
TradingView (manual)
Soft4Fx (for MT4)
FX Blue Simulator
Al-Arabi’s Wisdom:
“Backtesting builds belief. If you’ve never seen your strategy win 100 times, you’ll doubt it during a
drawdown.”
Bad Optimization:
Changing too many rules based on one bad week
Curve fitting to past results
Good Optimization:
Adjusting based on large data sets (50+ trades)
Improving only one rule at a tim
Example:
You notice your strategy loses during news.
Optimization = avoid high-impact news times.
That’s smart refinement, not overreaction.
Al-Arabi’s Rule:
“Let your strategy breathe. Don’t fix what’s not broken.”
Topic 9: Creating a Trading Plan Document
Your plan should be in writing—a living document.
Include:
Your strategy rules
Risk rules
Daily routine
Weekly goals
Emotional checklists
Market filters
My Plan Includes:
No trade during emotional stress
Max 2 trades per day
Stop after 2 wins or 1 loss
When I broke this rule, I spiraled. When I followed it, I grew.
Johnny’s voice:
“If it’s not written, it’s just a wish.”
Topic 10: Building the Discipline to Follow the Strategy
You can have the best strategy—but without discipline, it’s useless
Discipline Builders:
Trade less
Stick to your plan
Walk away after loss
Don’t chase wins
Reward yourself for rule-following, not just profits
Al-Arabi’s Daily Practice:
I meditate 5 minutes before trading
I read my trading plan aloud
I take one break per session
Over time, I learned that success is 20% strategy, 80% psychology and routine.
Mental check-ins
Sample Routine:
6 AM: Market scan
7 AM: Set alerts, walk away
12 PM: Re-check markets, trade
6 PM: Journal, reflect, log results
This removes chaos and builds professional mindset.
Topic 9: Detaching Self-Worth from Trading Results
You are not your P&L.
Good people lose trades
Bad traders can win by luck.
Dangerous mindset:
Feeling worthless after losses
Feeling superior after wins
Healthy mindset:
Focus on growth, not outcome
Celebrate discipline, not just profits
Johnny says:
“Money is a tool. You are the master. Never reverse the roles.”
Topic 10: Rewiring Your Mind for Long-Term Success
You must think like a trader before you earn like one.
How to rewire your brain:
Read trading psychology books
Listen to trader podcasts
Affirmations: “I trade my plan. I trust the process.”
Visualize success: calm, confident, consistent
Al-Arabi’s Affirmation:
“I am not chasing the market. I am a sniper. I wait. I strike. I win.”
Your mindset becomes your edge.
Being a professional isn’t about trading full-time or quitting your job — it’s about how you approach the
market.
A professional:
Has a written trading plan
Respects risk every time
Logs every trade and reflects
Doesn’t trade for fun — trades for purpose
Al-Arabi’s Words:
“I became a pro the day I stopped chasing and started tracking. I traded like I was managing a fund — even
with $100.”
I am Al-Arabi.
Not a perfect man.
But a man who chose to rise when life broke him.
This book you hold was written with truth, blood, tears, and fire — not just ink.
Page 2: From the Village to the Vision
I come from Yaleri, a small land with big souls.
My father, Muhammad Mukhtar Arabi, was my first teacher.
He taught me Qur'an before I touched a keyboard.
He taught me patience before I saw a candlestick.
From that soil came this seed — a boy who dared to trade the world.
But trading didn't just change my bank.
It changed my heart, my habits, and my horizon.