ACADEMY


Trading is all about never ending process of constant learning and moving one's own boundaries. Lessons which you will find here, are aimed to ease this process as much as possible.

LESSON 1

What if FOREX?
The foreign exchange market, commonly referred to as "forex" or "FX," stands as the largest financial market globally.

This expansive market operates on a global scale and is decentralized.

The foreign exchange market, or forex, is a vast and decentralized marketplace where the buying and selling of currencies take place. Here are some deeper insights into its characteristics:

Global Nature: The forex market operates 24 hours a day, five days a week, spanning major financial centers across different time zones. This constant availability allows participants to engage in trading activities at almost any time, contributing to its global and continuous nature.

Decentralization: Unlike stock markets that are centralized and have a specific location (like a stock exchange), the forex market is decentralized. It operates through a network of banks, financial institutions, corporations, and individual traders, rather than being confined to a physical location.

Liquidity: The forex market is highly liquid, meaning that there is a large volume of trading activity. This liquidity is primarily due to the vast number of participants involved, making it relatively easy to buy or sell currencies without significantly impacting their prices.

Participants: Various participants contribute to the forex market, including central banks, commercial banks, institutional investors, hedge funds, multinational corporations, and individual traders. Each group has distinct objectives and trading strategies, adding to the complexity and diversity of the market.

Currency Pairs: Currencies are traded in pairs, reflecting the relative value of one currency against another. The most traded currency pairs include the major currencies like the U.S. Dollar (USD), Euro (EUR), Japanese Yen (JPY), British Pound (GBP), and others. Traders analyze these pairs to make predictions about future price movements.

Speculation and Hedging: While some participants, like multinational corporations, use the forex market for hedging against currency risk related to international trade, others engage in speculative activities. Speculators aim to profit from currency price fluctuations by buying low and selling high.

Influence of Economic Indicators: Economic indicators, such as interest rates, employment figures, and GDP growth, play a significant role in shaping currency values. Traders closely monitor these indicators and adjust their strategies based on economic developments.

Understanding the complexities of the forex market involves delving into these various aspects, as it combines financial intricacies with the influence of global economic forces. The market's vast size, constant activity, and diverse participants make it a dynamic and influential force in the world of finance.

In forex trading, you try to predict how the exchange rate between two currencies will change over time. If you think the value of one currency will go up compared to the other, you "buy" that currency. If you think its value will go down, you "sell" it.

Here's a simple example:
Let's say you believe that the U.S. dollar will become stronger compared to the euro. So, you decide to "buy" U.S. dollars and "sell" euros. If the exchange rate goes up, you can sell your U.S. dollars for more euros than you originally had, making a profit.

However, if the exchange rate goes against you and theeuro becomes stronger, you might sell your U.S. dollars for fewer euros than you initially had, resulting in a loss.

Forex trading involves risk because exchange rates can change due to various factors like economic news, politics, and events around the world. It's important to learn about these factors, use risk management strategies, and practice on a demo account before trading with real money. Remember, forex trading can be complex, but with learning and practice, you can gradually understand how it works and make more informed decisions. It's a journey that requires patience and continuous learning.

Now, Sure, let's break it down in simple terms. Think of forex trading like a big market where different people and groups are buying and selling money (currencies). Here are the MAIN PLAYERS:

Retail Traders: These are regular people like you who trade forex from their computers or phones. They're small players in the big market.
Banks: Big banks play a huge role. They trade huge amounts of money for themselves and their customers. They can influence exchange rates.
Corporations: Companies that do business in different countries also trade currencies. They might need to exchange money to pay for imports or receive payments.
Governments: Governments might trade currencies to control their own money's value. They can use this to influence their economy.
Investors: People and organizations that invest money in forex to try and make a profit. They could be big investment firms or individuals.
Brokers: These are like middlemen. They connect retail traders to the big forex market. Retail traders use brokers' platforms to trade.
Hedge Funds: These are like big investment groups. They manage a lot of money and trade currencies to make profits for their clients.
Central Banks: These are the banks of each country. They can influence exchange rates by controlling their country's money supply.

So, imagine it's like a big playground where people and groups are trading different kinds of money. Each one has their reasons and strategies for trading, and they all together make up the forex market. Here is the TYPE OF TRADERS:

Here are some common types of traders:

Scalpers: Scalpers are traders who make very quick trades, often holding positions for just a few seconds to a few minutes. They aim to profit from small price movements and usually make many trades throughout the day.

Day Traders: Day traders open and close trades within the same trading day. They don't hold positions overnight. Their goal is to capture short-term price movements.

Swing Traders: Swing traders hold trades for a few days to a few weeks, aiming to profit from medium-term price trends. They analyze both technical and fundamental  factors.
Position Traders: Position traders have a long-term approach. They hold trades for weeks, months, or even years. They focus on fundamental analysis and broader market trends.
Scalp Swing Traders: These traders combine aspects of scalping and swing trading. They make several trades a day, looking for small gains but also considering longer-term trends.

Algorithmic (Algo) Traders: Algo traders use computer algorithms to execute trades automatically based on predefined rules. These rules can include technical indicators, patterns, and other criteria.

Copy Traders: Copy traders mimic the trades of more experienced traders. They follow the strategies of others, hoping to replicate their success.
Fundamental Traders: These traders focus on economic indicators, news, and events that influence currency values. They analyze macroeconomic factors to make trading
decisions.

Technical Traders: Technical traders rely on charts, patterns, and technical indicators to predict price movements. They believe historical price data can help predict future trends.

Join our trading community- Click image below

LESSON 2

BROKERAGE FIRMS
A brokerage firm in forex trading, often simply referred to as a "forex broker," is a financial institution or company that acts as an intermediary between individual traders and the foreign exchange market. Forex brokers provide traders with access to the forex market, allowing them to buy and sell currency pairs. Here's how brokerage firms work in forex trading:

Market Access:Forex brokers provide traders with a trading platform that connects to the global forex market. This platform allows traders to execute trades, monitor charts, and manage their accounts.
Execution of Trades: When a trader places an order to buy or sell a currency pair, the forex broker executes the trade on their behalf. The broker matches the trader's order with a counterparty, which could be another trader, a bank, or a liquidity provider.
Leverage and Margin: Brokers often offer leverage, allowing traders to control a larger position with a smaller amount of capital (margin). Leverage amplifies both profits
and losses.
Spread: Brokers earn revenue by charging traders a spread, which is the difference between the buying (ask) price and the selling (bid) price of a currency pair. This spread is their compensation for facilitating trades.
Platform and Tools: Forex brokers provide trading platforms and tools that allow traders to analyze the market, use technical indicators, and manage their trades effectively.
Account Types: Brokers offer various types of accounts, catering to different trading styles and capital levels. These can include demo accounts for practice and real accounts for live trading.
Regulation and Safety: Reputable forex brokers are regulated by financial authorities in their respective countries. Regulation helps ensure a certain level of transparency and security for traders.
Educational Resources: Many brokers provide educational materials, webinars, and resources to help traders learn about forex trading.
Customer Support: Brokers offer customer support to assist traders with account-related questions, technical issues, and trading inquiries.

It's important to choose a trustworthy and well-regulated forex broker to ensure a safe and reliable trading experience. Traders should research brokers, compare their
offerings, and consider factors like spreads, leverage, trading platforms, and customer service before making a decision.

CREATE your secured FOREX ACCOUNT(click here)

TOOLS & PLATFORMS
Tools and platforms that traders often use in forex trading:

MetaTrader 4/5 (MT4/5):
1. MetaTrader 5 is a popular trading platform that offers advanced charting, technical analysis, and automated trading capabilities.
2. It supports trading in forex, stocks, commodities, and other financial instruments.
3. MT5 includes built-in indicators, scripts, and expert advisors
(EAs) that traders can use to automate their trading strategies.

TradingView:
1. TradingView is a popular web-based platform that provides advanced charting tools and social networking for traders.
2. It offers a wide range of technical indicators, drawing tools, and customizable chart layouts.
3. Traders can analyze multiple asset classes, including forex, stocks, cryptocurrencies, and more.
4. The platform's interactive features allow traders to share ideas, analysis, and strategies with the trading community.

Forex Factory:
1. Forex Factory is a well-known online forum and platform that provides economic calendars, news releases, and trading discussions.
2. Traders can keep track of economic events, central bank announcements, and other news that can impact currency markets.
3. The forum also enables traders to share insights, analysis, and trading experiences with a large community of forex enthusiasts.

Myfxbook 
1. Myfxbook is a platform that allows traders to track, analyze, and share their trading performance.
2. While Myfxbook is primarily known for tracking trading results, it also offers sentiment analysis features that provide insights into traders' collective positioning and market sentiment.
3. The sentiment analysis can help traders gauge the broader market sentiment and make informed trading decisions.

These tools and platforms play a crucial role in providing traders with the information, analysis, and resources they need to navigate the forex market effectively. Traders often
use a combination of these tools to conduct technical and fundamental analysis, monitor news and events, and engage with the trading community.

Join our trading community- Click image below

Next Lesson       Lessons 1 2 3 4 5 6 7 8 ....

Enroll Now
COMING SOON
READ MORE