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I am sure you seen people make money with what so called forex trading there are millions of guide in youtube but they are soo long and just trying to sell their coure here a quick summary in forex trading (I been learning this shit back when andrew tate redpill stuff was trending till now )
how it look like
Introduction :
What is Forex trading?
Forex is the global market for exchanging one currency to another.
For example:
We have EUR/USD =1.1000 (the price of EUR/USD is 1.1000) that means 1 eur = 1.1 dollars
price is the number on the
Left
How it work?
You either
Buy : if you think the base currency to go up (the base currency in EUR/USD is EUR ) and you think the other currency will go down
Sell:if you think the base currency will go down and the other currency will go up
For example:
You buy EUR/USD at 1.2000
The price go up to 1.2050
In this case you won 50 woth of pipe which equal to 1$ most of the times
So our goal is clear
Know the market direction (up or down) and win money from the price
Price movement:
Supply and demand:
Basically if people buying a currency are more than the one selling the currency > price go up
If people selling a currency are more than the one buying the currency > price go down
Others factors:
News
Central bank decision
Economic report
How to predict price movement?
To predict price movement you need indicators that indicate where the price where go up or down like:
Candlesticks:
Can help reading the price movement but before I explain why we should understand how the Candlesticks work firstly Candlesticks represents
price movement in a variable (1 sec ,min ,hour,day )
and it also show where the price opened and closed
There are two type of them :
Green candle: means price opened low and closed high(went up (also called as bullish))
Red candle: means price opened high and closed low (went down (also called as bearish))
Candlesticks can help us predict the price movement but YOU CAN'T FULLY RELY ON IT.
tthe Candlesticks anatomy
bullish is signe if price go up (buy) and bearish is a signe of price going down (sell)
Indicators(to get them ho to the indicator tabs in your trading platform):
Relative strength index (RSI):
Simply measure if the
arket is overbought or oversold
Overbought >70 (sell signal)
Oversold <30 (buy signal)
as you see when RSI reaches 70 or over it it go down 70 (is the higher line in the bottom ch
Support and resistance :
A support is a price level where the market stop failing and tend to go up
A resistance is a price level where the market stop going up and tend to go down
(When the price breaks a support level and comes back to it later that level might now act as a resistance and vice versa)
The goal abt supports and resistance is to know price direction for example
If a price is falling and hit a support it might bounce up (buy signal)if a price is rising and hit a resistance it might bounce down (sell signal)
as you see here when the price breaks the resistance it becomes a support
Combination between Candlesticks and indicators to make high probability winning trade
With the combination of these 3 its easy for us to know market direction for example
_Rsi just hit over 70
_The price stopped going up after reaching the precedent high
_bearish Candlesticks (Candlesticks that give you selling signal)
You can easly sell with full confidence because 3 of the indicators are verified
Notes:
There are so manyyy indicators out there that you can use and learn but rsi and resistance and support is enough for beginner
Trade execution:
Now you know where the price gonna go but how to buy/sell with the lowest risk and the biggest reward?
Firstly
Chose a trading platform:
IYou can use whatever you like but mt4 (meta trader 4 ) is the best for low fee on trading and also beginner friendly
Things we should know before placing trade:
Stop loss: pre set price level where your trade will automatically stop if it reach it the goal is to limite your losses
Take profite: pre set price level where your trade will automatically stop if it reach the goal to lock in profite
Lot size and pips : pip are the smallest price movement a currency can make for example if
EUR/USD=1.1000 and it changes to 1.1001 that 1 pipe of movement so 1 pipe =0.0001 and one pipe also equal to 0.1 or 1 or 10 $ the price difference between the tree is due to LOT SIZE wich you can choose whatever you want
1 lot size = 1 pipe value equal to 10$
0.1 lot size = 1 pipe value equal to 1$
0.01 lot size =1 pipe value equal to 0.1$
0.1 lot size value is the one everyone recommend and its the best
Deviation:refers to the maximum pips you willing to accept between the price you clicked in and the price your trade have just executed
In fast market once you think its a good position to buy/sell the broker (the trading platform) have some delay to execute the oders so it can slightly change position and can result in a loss
For example:
We take u set the Deviation at 5
If you set the order at 1.0000 and the price go up
The broker delay and make the order at 1.0006
The broker will not execute the trade cause the you don't allow higher than 5 pipes change (Deviation)
How to execute trade:
Go up to trade button in your broker
Fill out your stop loss price and your take profit price
Set Deviation (3~5) recommended
Set lot size (0.1 recommended)
For example:
I want to trade 50$ after being confident that the price will go up from 1.1000 to 1.1100
1_ I set lot size on 0.1 and Deviation on 3
2_I set my stop loss bellow the actual price at the max loss that you can accept (bcs I have 50$ with 0.1 lot size so 1 pipe =1$ I can risk my 50 $ ) so my stop loss will be in 1.0950
3_I set my take profit ×2 my stop loss so if I risk 50$ I should put my take profit in 100$ (2:1 rewardsto risk ratio is by far the best one to use ) so I put my TP in 1.1100
So if the price reach 1.0950 the trade will stop result losing 50$
So if the price reach 1.1100 the trade will stop result wining 100$
If the price didn't reach neither you can stop the trade manually in a profitable area
(The number there on red are the actual price )
High IQ only :
What if my order stay forever didn't reach neither SL or TP and I didn't close it ?
The more your order stay the more fee you pay for the broker your using
Why can't I use 3:1 rewards to risk ratio?
The same problem for the one above the price wont reach that high so you need to manually close it
(The manually closing order most of time are bad bcs of emotions joint like greed so u end up wanting more just for yo to lose everything)
2:1 REWARDS TO RISK RATIO MOGs
Why can't I make a small stop loss to limit my loss?
Most of times when placing a trade the market will less likely go the way you want in the first moment so with making a small stop loss you can stop your comback chance and exit right before the market go your way
Type of orders :
Market order (instant executions (buy or sell))
You buy or sell immediately at the moment
Buy Limit
> You want to buy at a lower price, expecting it to bounce back up.
Example:
EUR/USD is at 1.1050
You place a Buy Limit at 1.1000
If price drops to 1.1000, the system buys it automatically
Sell Limit
> You want to sell at a higher price, expecting it to drop afterward.
Example:
EUR/USD is at 1.0950
You place a Sell Limit at 1.1000
If price rises to 1.1000, your sell order trigger
Buy Stop
> You want to buy above the current price, expecting a breakout upward.
Example:
EUR/USD is at 1.1000
You place a Buy Stop at 1.1050
If price rises to 1.1050, it enters a Buy
Sell Stop
> You want to sell below the current price, expecting a breakout downward.
Example:
EUR/USD is at 1.1000
You place a Sell Stop at 1.0950
If price drops to 1.0950, your Sell triggers
Bonus:
Expiration Time (for Pending Orders)
You can set a time limit for how long the order stays active.
When Pending order are trigger they become like instant order
All orders all the same in ST (stop loss) and TP (take profite ) and other stuff I explained before
Rules and types :
2% rule:
The goal of the 2% rule is to limite loss by using only 2% of your capital in a single trade that mean if you have 1000$ you should risk 20$ (risk=stop loss)
So to execute your trade your stop loss should be bellow the current price by 20 pipes and the TP should be above the price by 2×SL =40$ (if you use 0.1 lot size )
With the 2% rule you can easily execute more trade without fear qbd also gain experience over time
Trade in the same hour in the same day in The same market:
The forex is open 24/5 (closed in Saturday and Sunday ) if a strategy worked in a certain day and specifically hour and in the same market most likely it will wirk the same in the same condition again in a different week so for example
You used RSI with support &resistance strategy in tuesday 9:30 in EUR/USD and it worked
There is a very big chance it will do the same next week
Trade in demo account first :
Trading without experience is just gambling any broker has a demo account so try your strategy there see if they work search for more strategy in yt and try them just take your time learning .
Introduction :
What is Forex trading?
Forex is the global market for exchanging one currency to another.
For example:
We have EUR/USD =1.1000 (the price of EUR/USD is 1.1000) that means 1 eur = 1.1 dollars
Left
How it work?
You either
Buy : if you think the base currency to go up (the base currency in EUR/USD is EUR ) and you think the other currency will go down
Sell:if you think the base currency will go down and the other currency will go up
For example:
You buy EUR/USD at 1.2000
The price go up to 1.2050
In this case you won 50 woth of pipe which equal to 1$ most of the times
So our goal is clear
Know the market direction (up or down) and win money from the price
Price movement:
Supply and demand:
Basically if people buying a currency are more than the one selling the currency > price go up
If people selling a currency are more than the one buying the currency > price go down
Others factors:
News
Central bank decision
Economic report
How to predict price movement?
To predict price movement you need indicators that indicate where the price where go up or down like:
Candlesticks:
Can help reading the price movement but before I explain why we should understand how the Candlesticks work firstly Candlesticks represents
price movement in a variable (1 sec ,min ,hour,day )
and it also show where the price opened and closed
There are two type of them :
Green candle: means price opened low and closed high(went up (also called as bullish))
Red candle: means price opened high and closed low (went down (also called as bearish))
Candlesticks can help us predict the price movement but YOU CAN'T FULLY RELY ON IT.
Indicators(to get them ho to the indicator tabs in your trading platform):
Relative strength index (RSI):
Simply measure if the
arket is overbought or oversold
Overbought >70 (sell signal)
Oversold <30 (buy signal)
Support and resistance :
A support is a price level where the market stop failing and tend to go up
A resistance is a price level where the market stop going up and tend to go down
(When the price breaks a support level and comes back to it later that level might now act as a resistance and vice versa)
The goal abt supports and resistance is to know price direction for example
If a price is falling and hit a support it might bounce up (buy signal)if a price is rising and hit a resistance it might bounce down (sell signal)
Combination between Candlesticks and indicators to make high probability winning trade
With the combination of these 3 its easy for us to know market direction for example
_Rsi just hit over 70
_The price stopped going up after reaching the precedent high
_bearish Candlesticks (Candlesticks that give you selling signal)
You can easly sell with full confidence because 3 of the indicators are verified
Notes:
There are so manyyy indicators out there that you can use and learn but rsi and resistance and support is enough for beginner
Trade execution:
Now you know where the price gonna go but how to buy/sell with the lowest risk and the biggest reward?
Firstly
Chose a trading platform:
IYou can use whatever you like but mt4 (meta trader 4 ) is the best for low fee on trading and also beginner friendly
Things we should know before placing trade:
Stop loss: pre set price level where your trade will automatically stop if it reach it the goal is to limite your losses
Take profite: pre set price level where your trade will automatically stop if it reach the goal to lock in profite
Lot size and pips : pip are the smallest price movement a currency can make for example if
EUR/USD=1.1000 and it changes to 1.1001 that 1 pipe of movement so 1 pipe =0.0001 and one pipe also equal to 0.1 or 1 or 10 $ the price difference between the tree is due to LOT SIZE wich you can choose whatever you want
1 lot size = 1 pipe value equal to 10$
0.1 lot size = 1 pipe value equal to 1$
0.01 lot size =1 pipe value equal to 0.1$
0.1 lot size value is the one everyone recommend and its the best
Deviation:refers to the maximum pips you willing to accept between the price you clicked in and the price your trade have just executed
In fast market once you think its a good position to buy/sell the broker (the trading platform) have some delay to execute the oders so it can slightly change position and can result in a loss
For example:
We take u set the Deviation at 5
If you set the order at 1.0000 and the price go up
The broker delay and make the order at 1.0006
The broker will not execute the trade cause the you don't allow higher than 5 pipes change (Deviation)
How to execute trade:
Go up to trade button in your broker
Fill out your stop loss price and your take profit price
Set Deviation (3~5) recommended
Set lot size (0.1 recommended)
For example:
I want to trade 50$ after being confident that the price will go up from 1.1000 to 1.1100
1_ I set lot size on 0.1 and Deviation on 3
2_I set my stop loss bellow the actual price at the max loss that you can accept (bcs I have 50$ with 0.1 lot size so 1 pipe =1$ I can risk my 50 $ ) so my stop loss will be in 1.0950
3_I set my take profit ×2 my stop loss so if I risk 50$ I should put my take profit in 100$ (2:1 rewardsto risk ratio is by far the best one to use ) so I put my TP in 1.1100
So if the price reach 1.0950 the trade will stop result losing 50$
So if the price reach 1.1100 the trade will stop result wining 100$
If the price didn't reach neither you can stop the trade manually in a profitable area
(The number there on red are the actual price )
High IQ only :
What if my order stay forever didn't reach neither SL or TP and I didn't close it ?
The more your order stay the more fee you pay for the broker your using
Why can't I use 3:1 rewards to risk ratio?
The same problem for the one above the price wont reach that high so you need to manually close it
(The manually closing order most of time are bad bcs of emotions joint like greed so u end up wanting more just for yo to lose everything)
2:1 REWARDS TO RISK RATIO MOGs
Why can't I make a small stop loss to limit my loss?
Most of times when placing a trade the market will less likely go the way you want in the first moment so with making a small stop loss you can stop your comback chance and exit right before the market go your way
Type of orders :
Market order (instant executions (buy or sell))
You buy or sell immediately at the moment
Buy Limit
> You want to buy at a lower price, expecting it to bounce back up.
Example:
EUR/USD is at 1.1050
You place a Buy Limit at 1.1000
If price drops to 1.1000, the system buys it automatically
Sell Limit
> You want to sell at a higher price, expecting it to drop afterward.
Example:
EUR/USD is at 1.0950
You place a Sell Limit at 1.1000
If price rises to 1.1000, your sell order trigger
Buy Stop
> You want to buy above the current price, expecting a breakout upward.
Example:
EUR/USD is at 1.1000
You place a Buy Stop at 1.1050
If price rises to 1.1050, it enters a Buy
Sell Stop
> You want to sell below the current price, expecting a breakout downward.
Example:
EUR/USD is at 1.1000
You place a Sell Stop at 1.0950
If price drops to 1.0950, your Sell triggers
Bonus:
Expiration Time (for Pending Orders)
You can set a time limit for how long the order stays active.
When Pending order are trigger they become like instant order
All orders all the same in ST (stop loss) and TP (take profite ) and other stuff I explained before
Rules and types :
2% rule:
The goal of the 2% rule is to limite loss by using only 2% of your capital in a single trade that mean if you have 1000$ you should risk 20$ (risk=stop loss)
So to execute your trade your stop loss should be bellow the current price by 20 pipes and the TP should be above the price by 2×SL =40$ (if you use 0.1 lot size )
With the 2% rule you can easily execute more trade without fear qbd also gain experience over time
Trade in the same hour in the same day in The same market:
The forex is open 24/5 (closed in Saturday and Sunday ) if a strategy worked in a certain day and specifically hour and in the same market most likely it will wirk the same in the same condition again in a different week so for example
You used RSI with support &resistance strategy in tuesday 9:30 in EUR/USD and it worked
There is a very big chance it will do the same next week
Trade in demo account first :
Trading without experience is just gambling any broker has a demo account so try your strategy there see if they work search for more strategy in yt and try them just take your time learning .
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