Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

when you want to withdraw your money
...




Will you need a minimum deposit? - Some brokers will require
you to put down significant capital in order to open an account
and start trading
...




Does the broker have a daily trading limit? – Some limits are
imposed to protect against extreme volatility and market
manipulation
...




Do they offer different account types? – Different accounts will
come with varying costs and attractive perks
...

Trading Platform Features


Do they have high tech, informative tools for research and
analysis? – You will need live price quotations, plus detailed
charts and access to historical data will also help you trade
smarter
...




How quick and efficient is their order execution? This is massively
important if you’re day trading, as just a few seconds could cost
you serious cash
...
This highlights the
need to test drive your broker first
...
Most brokers offer several to
choose from, some will tick the boxes for the average day
trader, others will offer more advanced platforms for the
veteran trader
...
If trading on your
mobile phone is important, then checking the apps compatibility
(Android, iOS or Windows etc) will be vital
...
Some brokerages offer 24/7 customer support,
with call waiting times of less than one minute
...
You don’t want to be sending an order to a train desk
which then initiates it in the market
...
By the time you’ve confirmed you want
to proceed, your opportunity has probably vanished
...
Trading without a broker means zero
free credit for trial and error
...
Some
brokerages won’t offer you a penny on that balance, but some
will give you 3-5%
...


5
...

Supply and demand
The key driver of forex movement is supply and demand
...


11

Economy
Economic factors are the most basic things that create changes in a
country’s currency
...

Other conditions may also include inflation trends, and the general
economic growth of the country
...
After all, the
market is highly dependent on whether or not people would want to
invest on a country’s economy in order to determine whether
currency prices will go up or down
...
Strong decreases in employment indicate a contracting
economy, while strong increases are perceived indicators of a
prosperous economy
Interest Rates
this is always a major focus in the forex market
...

Inflation
this is the measure of increases or decreases in pricing levels over a
period of time
...
Increases in pricing
indicate an increase in the inflation rate which in turn can devalue
that country's currency
...

Trade and Capital Flows
Currency values can be significantly impacted by monetary flows that
result from certain interactions between countries
...

Increased investments in a country can lead to the opposite result
...
It's released on the first Friday of
each month, alongside the unemployment rate
...
The outcome of an FOMC meeting can
markedly affect the Forex market, should there be any disparity from
the expected course

Consumer Confidence Index
The Consumer Confidence Index, There are many consumer surveys,
but these two are the best known and the most widely followed by
economists and Forex/CFD traders
...
The report is compiled by the Federal Reserve
and published around the middle of each month
...
To fill the gaps, the Fed makes
estimates using proxies, such as hours worked from the Employment
Situation report or amount of power used in the month by the
industry in question
...
Unlike economic
news, the release of which is known beforehand, most geopolitical
events, such as terrorist attacks, natural disasters, defaults, etc
...
At the same time, the effect from the
release of such news quickly loses its power and, as a rule, the new
trend does not last long
...

I think you get what’s happening: this section needs proper
understanding and further research (forex calendar) to avoid surprises
when you are trading
...
Forex bad habits












Using tight stop losses
Thinking you are in control
Not accepting a bad trade
Not making a journal for your work
Risking too big on one single trade
Using too big of a margin
Trading the wrong time
Poor chart analysis
Cold feet, fear to enter a trade
Waiting for too long in a bad trade
Putting all your eggs in one basket
14














Using the wrong broker
Using poor equipment(slow internet/slow machines)
Over-trading to compensate for losses
Bailing on trades before they have an opportunity to pan
out
Risking too much when you think something is a sure be
Trading without stops to avoid taking a loss
Thinking you know the Forex market inside and out, you
will usually be thrown a curve ball
...
Forex good habits
Relook at section 6 and some additional research and see if you
can list some good habits which go with your personality
...

…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
15

…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
………………………………………………………

8
...
Most forex brokers will provide free forex charting
software for clients who have open and funded trading
accounts
...

Most popular types
1
...
Bar chart
3
...


17

18

Before you continue here onwards
...













I now understand the risk involved
...

I will take what I read from the internet at face
value, there is no bible for forex,
I will avoid trading for the sake of trading
I will definitely make sure that I know what I’m
doing before I enter the markets
...
Trading strategies
How to Create a Solid Forex Strategy
One biggest mistake for many new traders is starting to trade Forex
without a solid Forex trading strategy
...
’ a day
and you can trade when the market is going up or when the market is
going down and in the eagerness to make money, or prove
themselves they dive headlong into trading
...

You can make a fortune trading currencies in the short term but soon
this will lead to a bad psychology and trading discipline problems and
you’ll end up blowing up your forex trading account
...

To be successful in Forex trading, you’ve got to have a strategy/plan
in place which you must follow
...
Reason for taking the trade: why buy or sell? And
what currency pair?
2
...
Trading objective: what’s the profit target? What’s
your stop loss?
20

4
...
Documenting and analysing your trading results?
This identifies your strengths are well as
weaknesses
...


List of common fundamental known strategies
Understanding the fundamentals of the largest global economies and
their impact on the currency market is complicated
...


Demo trading

This is where real work start
...

Your eye should be seeing, potential trade entries and exits
...
Online videos and popular sites are not bad,
however take it at face value
...

22

Note: treat your demo accounts like real money from word go and you
will defiantly see the light of day, if you play around, so will be you’re
trading
...
Whether you have
money to trade or not
...
(1st week)
 From day one, always treat your demo like real money
 Never do things on demo you know you would not do on a live
account
...

 Don’t jump from strategy to strategy, do one at a time as you
see which one really flows with your personality
 Never use one demo at a time
...

 Spend your 1st week trading random, don’t aim profits, aim to
get used to pulling the trigger and seeing money go up or down
...


Instructions
...

 Take time aside before you trade to analyze the market
properly
...
Have a general sense of your work
for the day
...
(3rd and fourth week)
 By now we know how to set profit calls, stop losses, trailing
stop, and trailing profit and the like
...

 If a strategy is not giving profits in two days, leave it, provided
you are using it correctly
...
It’s time to focus on
making it a solid methodology in your mind
...

 Make sure you are not doing things you wouldn’t do in a live
account
...
(Demo to live)
One of the biggest mistake newbies do is to separate demo and live,
you can’t separate them they are married, by you monitoring them at
the same time, and you also have a chance of checking the effects of
the human factor to your trading, this is the time to see what your
human problem is, greed, cold feet, patience, hot feet, etc
...


How to transition
...

Secondly, as you sit on your computer to trade
...

When you get a lock on your mojo, move smoothly to live, if you can,
duplicate your trades live and demo for the 1st few days
...

Make sure you have them run concurrently for the best results

---