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The Forex Masterclass

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The Forex Masterclass T H E O N L I N E F I N A N C I A L S C H O O L presents FOREX MASTERCLASS HOW TO MAKE MONEY FROM HOME MICHAEL PITTMAN WHAT IS FOREX? FOREX (FX) FOREX MARKET FOREX Market is open 24 hours a day, Forex (FX) is the market five days per week. in which currencies are traded. FOREX Market is 50 times bigger than the stock market. Forex (FX) stands for Lower barriers to entry. Foreign Exchange Easier to keep up with and monitor. Market. Allows you to open a demo account where you can practice exchanging 8 Major Currencies currency. USD: US Dollar EUR: European Euro There are 8 major currencies. AUD: Australian Dollar There are 7 major currency pairs. A JPY: Japanese Yen major currency pair is when a major CAD: Canadian Dollar currency is paired with a US Dollar. CHF: Swiss Franc If a currency is not paired with a US GBP: Great Britain Pound Dollar, it is called a cross pair. NZD: New Zealand Dollar Currency pairs always have a value associated with them. F O R E X P A G E 2 WHAT IS FOREX? CURRENCY F O R E X P A G E 3 HOW DOES THIS MAKE MONEY? A pip is the smallest AUDUSD amount you can measure a currency by and it is usually equal to .001. In the United State, the smallest amount you can measure currency by is the cent and it is worth .01. If you were on vacation is Australia and wanted to exchange currency, you would need to give .75 cents for every australian dollar you wanted, because 1 AUD = 75 cents. F O R E X P A G E 4 HOW DOES THIS MAKE MONEY? Imagine you are at the supermarket buying eggs for $100. You now have $100 worth of eggs. You find out that eggs cure diabetes and the price of eggs has increased in value. You return to the supermarket and sell the eggs back and the store owner gives you $150 for the eggs. You have just made a Eggs come in dozens. Currency comes in $50 profit. lots. The size matters. The FOREX Market is similar to the supermarket in this example. F O R E X P A G E 5 LEVERAGE AND BROKERS "UNCLE JOE BROKER LEVERAGE Leverage is the ability to borrow money from a broker. For stocks, it is normally 2:1. But in forex, leverage can be 50:1, 100:1, or even 200:1. You establish your leverage. So if you set your leverage at 100:1, that means that for every $1 you have, your broker will give $100. F O R E X P A G E 6 TIME ZONES SPRING/SUMMER WHEN IS THE BEST TIME TO TRADE? The FOREX Market is global. Therefore, it is not based on U.S. time. FALL / WINTER The 24-hour Forex Market starts with Sydney, Australia. on Sunday evening at 5PM (EST). F O R E X P A G E 7 KNOWING THE JARGON When we say we are going long, we are expecting the market to go up. When we say we are selling/shorting, we expect the market to go down. Long = Buy Short = Sell Bullish = Buy Bearish = Sell Bid Price - what the broker will buy the currency for Ask price - what the broker will sell the currency for F O R E X P A G E 8 SUPPORT AND RESISTANCE .Support and resistance are some of the most key things when it comes to trading. Uptrend Support & Resistance Downward Support & Resistance Uptrend vs. Downward Choppy Markets F O R E X P A G E 9 APPLYING CONCEPTS CHARTS A real live chart of support and The yellow dots represent the resistance. resistance areas and the purple dots represents the supports. Notice the trend line. The lower lows and the higher highs are going in a downward slope from left to right. With trend lines, you are looking for 3 confirmation points. F O R E X P A G E 1 0 APPLYING CONCEPTS CHARTS Where the resistance, support, and trend lie intercept on the far right, this is where you should trade. This chart represents a choppy market. This is an example where you should not trade. In a consolidation, it is neither up nor down. F O R E X P A G E 1 1 JAPANESE CANDLESTICKS Japanese Candlesticks reflect the price of the currency pair. It can also give us clues to what the market may do based on it's size and color. Pay attention to the 4 parts of a The Japanese candlestick: candlesticks can be broken into 3 parts. Open - where the price started Close - where the price ended The shadow (black lines) are referred to as a wic. The low - lowest point price got to The high - the highest point the price got The higher the time to. frame, the stronger the If a candle has gone up, the close is above currency pair and the open. direction. If a candle has gone down, the open is above the close. F O R E X P A G E 1 2 CANDLESTICK PATTERNS Candlestick patterns are used as a tool to determine, by traders, where the market could potentially go. F O R E X P A G E 1 3 ORDER TYPES There are different MARKET ORDER ways to buy and sell currency in the Forex Market. You could buy your currency where it is right now or you can buy it at a certain price or sell it at a certain price. You can buy or sell currency based on the behavior of price associated with that currency. F O R E X P A G E 1 4 ORDER TYPES F O R E X P A G E 1 4 TRADING PLATFORMS METATRADER 4 TRADINGVIEW.COM Metatrader4 App Set up an Account Put in broker information - FX Choice Free (w/ Ads) (recommend) SSet-up a demo account You can add your own support and resistance Look at your chart. lines and trend lines. Look at the currency pairs to see what's Use FX Choice to set-up available to trade. with a broker. That's where you but and sell them. You can also change the colors Bull candles - green Bear candles - red F O R E X P A G E 1 5 SIMPLE STRATEGY INTRO 5-STEP STRATEGY TO HIGH PROBABILITY TRADES Step 1: Find Support and Resistance Zones Step 2: Identify Trendlines Step 3: Trade in Trend Direction Step 4: Look for "retests" when support or resistance are broken Step 5: Use a lot size calculator to determine how much you are risking. BONUS No matter how confident you are, ALWAYS USE A STOP LOSS! F O R E X P A G E 2.
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