Basic Forex Education

Basic Forex Education

Lesson 1: Why Trade Forex

The Forex market is the biggest and popular financial market in the world that traded globally by a large of individuals and organizations. The average trading volume exceeds $5 trillion US dollars and it’s a 24-hour market. A free demo account can be opened to practice for you to build your skills in trading.

Lesson 2: When To Trade Forex

Forex market is open 24 hours, but it doesn’t mean that you need to trade every single minute of the day. The Forex Trading can be classified with 3 main major sessions, Asian Session from 12 a.m. to 8 a.m., European Session starts from 7 a.m. and North American Session starts from 12 p.m.

Lesson 3: Trading Terminology or Where Am I Going Long

Traders have their own language when trading, so it’s important to know the trading terminologies. The most common language forex is Going Long, Going Short, and Being Flat (being neither long nor short).

Lesson 4: How to Trade With Leverage

Trading with the small quantities at a time will never make you any profit that’s why Forex Brokers offer up 500 to 1 leverage. See how it works by watching the video.

Lesson 5: What’s a PIP

A PIP is the exchange rate for a currency pair or a measurement of change. The currency pairs displayed as decimals,1 bit is equal to .0001. There’s an exemption for yen base pairs which has 2 decimal places. Some brokers have pre fractional PIPs to provide an extra precision and they’re displayed as 5th decimal place.

Lesson 6: How to Place A Trade In Forex

In every single forex transaction, there are two currencies involved because you simultaneously buy 1 currency and sell another one. First, the Base Currency and second is the Quote Currency.

Lesson 7: Types of Forex Orders

An order is an instruction from trader to broker on how they want to enter or exit the market. The most common types of orders are Market Order, Limit Order – Buy Limit, Limit Order – Sell Limit and Stop Loss Order.

Lesson 8: Technical Analysis in Forex

The Technical Analysis is based on the presumption when analysts studying charts to look for patterns and situations if the pricing will act the same as before. Also, by studying historical market data, you can forecast future price movements.

Lesson 9: Fundamental Analysis in Forex

Fundamental Analysis is known as a forecast of the future price movement based on the overall state of the economy considering various factors such as Interest Rate, Employment, Housing, Production, and Manufacturing.

Lesson 10: Types of Forex Charts

Most of the popular charts are a Line chart, Bar chart, and Candlestick chart. But the chart that has excellent visual representation is Candlestick that we recommend for beginners. This chart clearly shows who is in control.

Lesson 11: Support and Resistance in Forex

The two of the most popular concepts of technical analysis are Support and Resistance. The Support and Resistance have 3 Golden Rules. Let’s find what are those.

Lesson 12: Trendlines

Trendlines are diagonal lines and drawn by connecting two or more price peaks or bottoms.