Fundament

alsoff
orex
 Fundament
alsoff
orex

COURSEOUTLI
NE(
PART1)

I
NTRODUCTI
ON

WHATI
SFOREX?

WHATI
STRADEDONFOREX?

WHOI
SAFOREXBROKERS

TRADI
NGTI
MES&TRADI
NGSESSI
ONS

TERMI
NOLOGI
ESUSEDI
NFOREX

TYPEOFFOREXANALYSI
S

MT4I
NTERFACE

CURRENCYPAI
RS.

COURSEOUTLI
NE(
PART2)

WHATI
SAPI
P

CONCEPTOFBI
DANDASKPRI
CE

WHATI
SASPREAD

FORMSOFTRADI
NGORDERS

CONCEPTOFTAKEPROFI
TANDSTOPLOSS

LEVERAGE

LOTSI
ZES

RI
SKMGT

t
radi
ngpl
an

commonmi
stakesbyt
rader
s

BONUS
 Fundament
alsoff
orex

I
NTRODUCTI
ONANDWHATI
SFOREX

ForexisjustaShor tformforFOREIGNEXCHANGE.I t'

sagl obal
decentral
isedmar ketwherethewor l
d'
scurrencychangeshandsv ia
exchanger at
ewhi chistherelat
ivepri
ceoftwocurrenciesf r
om t
wo
dif
ferentcount r
ies.Theexchanger at
echangesbyt hesecondmaki ngthe
Mar ketconstantlybei nfl
ux.Theexchangerateofacur rencyVsother
currencyisar efl
ectionoftheconditi
onofthecountryeconomycompar ed
toeconomi es.

Mostoft hecurrencytr
anslati
onsareexchangedf orspeculat
ivereasons
(yeaht hat
'sri
ghtyoushoul dhavepai
dmor eattenti
ont othemot iv
ef or
holdingmoneydur ingyoureconomiccl
ass).That'
swhyFor extradersare
taggedcurrencyspeculatorswhoarebuyingtosellatahigherpr i
ceor
sell
ingtobuyatal owerpr i
ce.

Forexisoneoft heLargestmar ketsint hewor ldWi t

haTot alDai l
yLiquidit
y
of$6.6Tril
l
ionWhi l
etheCr yptomar ket ,
fort hoseofuswhoknowabout
Bit
coinshasaTot alMarketcapofj ust$262Bi ll
i
onasoft oday ,t hi
sisnot
eventheDai l
yVol ume.AlltheseSt atisti
csar eonl i
ne,withbr i
efr esearch
youcanconf i
rmt hem fory ourselves.TheNewYor kStockExchange( NYSE)
whichistheSecondLar gestMar ketishav ingaDai l
yTr adingVol umeof
$169Bi l
l
ionaswecanseei ntheSt atisti
csabov eWhi letheCr ypt omarket ,
i
st oshowt hemassi veLiquidityWhi chi sont heFor exMar ket.Likecr ypto,
Forexopensf orjust24/5meani ng24hour saday ,
5day saweek, no
weekendsandi t'
si mportanttonot et hatt r
adi ngdoesn' tcl
osel ikeeach
businessbutrathermov etoadi ff
erentf inanci alcentrearoundt hewor l
d
whichweshal ldiscussindet ailmov i
ngf or war d.

ThatishowlargetheFor
exmarketisSowehaveseenaBri
efIntr
oducti
on
oftheForexmarket,
Wewouldsti
ll
seemore,butf
ornowle,
t'
sfir
eonlikea
mov i
ngtrai
ntothenextt
opi
c.

WHATI
STRADEDONFOREX

Someonewoul
dask,
Whati
sTr
adedont
heFor
exmar
ket
?Thi
sisnott
he
 Fundament
alsoff
orex

for
m ofmar ketwher ebuyy ourclot
hesorshoes.Nodoubtbuy ingand
sel
li
ngoccurbutnott hatofanor mal Localmarketanypar
toftheworld
youare.Whati sonlybeent radedintheFor exmarketar
ecurr
encies,
for
eigncurr
enci es.Nottowor rywithi
nt hesepagesyouwil
lgettolear
n
howt otr
adet hem

WHOI
SAFOREXBROKER

For
exBr okersareFirms, l
ikenedtomi ddlemen, t
hatgivesyouaccesst ot
he
FOREXMARKET.Theypr ovideyouasTr aderaccesst otheFinanci
al
market.Bypr ov
idingaTr adingaccountfory ou.TheyTr ader
swhatwecal l
Lever
age.( wewoul dseet hatsoon)Theyal sopr ovideSupportFunct
ions
tot
het radersTherearev ari
ousBr okersintheFor exMarketWehav eXM,
Fxt
m, Fx cm,Fbs,Lit
eForex,BDSWI SSEt c

Wearest
il
lgoi
ngtotaketi
metotal
kaboutBr
oker
sinButwehav
etobe
awar
eofthei
rFunct
ionsandwhatt
heyof
fert
oTrader
s.

TRADI
NGTI
MESANDTRADI
NGSESSI
ONS

Wear eenteri
ngintothemostimportantpartofForexwhichrequi
resyour
ful
lfocusforproperunder
standi
ngoft heForexmar ketwoul
dbe
determinedi
fy ouknowtheForexcycle.ThereareVariousTr
adingTimes
andTr adi
ngSessionsinForexTheyi
ncl ude

SYDNEYSESSI
ON

TOKYOSESSI
ON

LONDONSESSI
ON

NEW YORKSESSI
ON

TheSessionsnamesarederi
v edf
rom themajorcit
iesinwhichmostoft he
Transact
ionsar
edoneForex ample,
SydneySessionrepresent
sAust r
ali
a
andothercount
ri
esaroundthatTimezone.Tokyosession,someti
mes
call
edASIANSessionrepr
esentsJapanandsomeoft heAsiancountr
ies.
Takenoteofthi
sti
mezoneasy ouwill
beneedingthem foryourTradi
ng.
 Fundament
alsoff
orex

Also,
notet
hatt
heseti
mesareli
stedinGMTGr eenwichMeri
dianTi
meSo
youshoul
ddotheappr
opri
ateCalcul
ati
ondependi
ngony ourcount
ri
es
Timezone,t
oknowwhichsessi
on,youarecur
rentl
yon.

AllSessi
onsfor9hours.Sohavi
ngknownthei
rOpeni
ngTimes,Toget
t
heirappr
opri
ateCl
osingTimes.Just9hour
stotheOpeni
ngTimetoget
whentheywouldCloseExample

Sy
dneySessi
ont
hatOpensby9PM GMT

WOULDcl
oseby6AM GMT

al
so,
TOKYOSessi
ont
hatOpenedby11PM GMT

WOULDcl
oseby8AM GMT

NEWYORKSESSI
ONt
hatOpenedby1PM GMTWOULDCLOSEBY10PM
GMTANDSOONFOROTHERS

Phot
ocr
edi
t:i
g.com

Justadd9hour st
othei
rOpeni
ngTimesExampl
eSydneySessiont
hat
Opensby9PM GMTWOULDcl oseby6AM GMTalsoTOKYOSessi ont
hat
Openedby11PM GMTWOULDcl oseby8AM GMTNEWYORKSESSI ON
thatOpenedby1PM GMTWOULDCLOSEBY10PM GMTANDSOONFOR
OTHERS..justAdd9hourst
othei
rOpeni
ngTimesNowthereisan
 Fundament
alsoff
orex

i
mpor tantthingt onotehere..
.ThisiswhatmanyFor exTradersdon't
under standbecausenobodyt aughtt hem.I tisalwaysgoodt oTradethe
Mar ketwhen2Mar ketsareopenatt hesamet ime.IeWhen2oft he
sessionsar eopenPl easeTakenoteoft hi
sI mportantpointThi
sis
BecauseVol at i
l
ityisalwaysmor ewhen2ormor eSessionsareOpen.And
i
nFor exMar ket,Mor eVolat
il
it
ymeansMor emoney .AsaFor exTrader
,
youwoul dn'twantt otradeaQui etmar ket,
becauset herewon'tbemany
Fluctuationsandi t
'sthosemov ement sthatmakemoneyf orus.

youwoul dcomet ounder standt hesesoonandknowwhatImeanExampl e

bymi dnightGMTSy dneySessi onandToky oSessi onwoul dbeopen
togetherandi twoul
dhav emor eVolatil
itythansomeonet hatisTradi
ngat
9PM GMTbecauset hemar ketwouldbeQui et .AnotherExampleisby8
AM GMTLondonSessi onandFr ankfurtSessionwoul dbeopenev enTokyo
woul dbewi ththem bri
efly,soy ouwoul dnot i
cet hatVolati
li
tywould
i
ncr easeduringsucht i
mes.SoasaFor exTrader, Al
way sti
mey ourTradi
ng
tofallinperi
odswher e2ormor eMar ketsareopenatt hesamet i
me.By
doingt hatyouwouldal way shav eanedgei nt hemar ket.Wewouldbe
l
ear ni
ngmor eimportantthings,let'
sjustf oll
owt heTr adi
ngclosel
y.

SomeofYouhav eheardaboutFor exbeforeI '

m aware,thoughy oumay
nothaveknownhowt oTradet heMar ket.Andt hebeautyaboutForexis
thatone'
sprof
itdoesn'
thi
ndert henextper sonsown...Wewoul dseeall
thesesoon.SoLet'
sfol
lowTheTeachi ngCl osel
yandt akeitser
iousl
y
becausethi
sisarareOpportunitywhichonl yafewpeopl etappedint
o.

TERMI
NOLOGI
ESUSEDI
NFOREX

Forev eryNewf i
eld,y
ouembar kuponinLif
e,youwouldencount
erNew
Terminologi
esandt ermswhichispeculi
art
osuchfiel
d.BeitLaw,
Medicine,Jour
nalism,Engi
neeri
ngetc.Andyouwouldhavetogetyour
self
acquaintedwit
ht hei
rTerminol
ogiest
obeabl et
ocommuni cat
eproper
lySo
al
soisFor ex,foryoutobeabletoLearnandTrade,youshoul
dgetto
 Fundament
alsoff
orex

knowsomeofthet
ermsthatar
eusedinFOREXTrading.Sothaty
oucan
underst
andt
heNews,Fl
owwi t
hyourFel
l
owForextradersandunder
stand
Analy
sts

TOGOLONG.
..
.meanst
oBUY

TOGOSHORT.
..
..
.meanst
oSELL

IfaTradertell
syouthathewentLongonaCurrencypai
r.Hemeantthat,
HeBoughtt hepair
.Whileift
heytel
lyout
hatt
heyShortaCurrencypai
r,i
t
meanst hattheySoldThepairSoonyouwoul
dgettoseethatAllt
hatwe
aredoinginForexisBuyingandSell
i
ng

Thenextt
ermswewoul
dseear
e

BULLI
SHMARKET:
Amar
kett
hati
sgoi
ngUpwar
ds

BEARI
SHMARKET:
AMar
kett
hati
sgoi
ngdownwar
ds.

Whensomeonet el
lsyouthatacur
rencypairoracommodityisBul
li
shIt'
s
tel
li
ngy outhati
t'
sgoingUp,Whil
eOnet hatisBear
ishi
sgoingdown.It
's
i
mpor tantt
ocompr ehendthi
ster
m, Youallwouldbeneedi
ngthem asyou
progress.

BULLS:
TheBuy
ersar
eref
err
edt
oasBul
l
s
 Fundament
alsoff
orex

BEARS:
TheSel
l
ersar
eref
err
edt
oasBear
s

phot
ocr
edi
t:dai
l
yfx.
com

RANGING:AMar keti
ssai
dtobeRangi
ngi
fitdoesnothav
eanypar
ti
cul
ar
di
rect
ion.I
t'
snei
thermovi
ngUpwar
dsnorDownwards

TRENDI NG: AMar ketthatishasadirecti

on.It'
sei
thermovi
ngUpwar dsor
downwar dsSoy oucanhearpeopl esayamar keti
sTrendi
ngupwar dsor
themarketisTrendingdownwar dsSoy oumayhearpeopletel
lyout hatthe
MarketisjustRanging.Theyareindi
rectlytel
l
ingyouthatt
hemar kethas
notfoundanydirectionyet.Thenextterminol
ogythatwewouldbel ooking
atis

HAWKI SH: Thistermismost l

yusedwhenrefer
ri
ngt ot
heCentral
Bank
Governororper sonnelofaCountr
y.WhentheyareHawkish,t
heytendt
o
beli
ber al
ont heinter
estrat
eandarewil
li
ngtoincreasei
t.Thi
sisgood
newsf orinvest
ors

DOVI SH:
Thisi st heoppositeofHawki sh.Financialper
sonnelwhoar e
Dovishareveryr estri
cti
ve..
.Theydonotwantt ot amperwi t
hthei nter
est
rat
e.Theyev enwantt oreduceit.Thi
si sbadnewsf orinv
estors.Also,Most
oftheCurrencypai rshavespecificnamesi nwhi chtheyarecalledWe
wouldgettoknowt hem soonEgThedol larissomet i
mescal l
edGr eenback,
ThePoundsi scal ledthecable,TheNewZeal anddol l
arsiscall
edt heKiwi,
TheAustrali
andol l
arsistheAussie,TheCanadi anDol l
arsiscalledthe
LoonieOili
sr eferredtoast heBlackGol dEtc
 Fundament
alsoff
orex

phot
ocr
edi
t:baby
pips.
com

Wewoul dgettoknowt hem asy oufli

pt hroughthepages.It
'sjusttoget
youacquai nt
edwi ththemostpopul aronessot hatWheny oucomeacr oss
somet hingsi milar,youwoul dtagalongeasi l
y.Hereisapieceofadv i
cef or
you, aswegoon,Wewoul dgett oseemor eTerminol
ogiesandExpl ainto
them asweseet hem.Itmi ghtbequi teintensi
veasourgoal hereatt he
l
eaguei storaisepassi onatepeopl e(wi t
hnobi asestorace,r
eligi
onor
creed)t hatwillbeabl etost andont heirown, makelogi
caldecisionsand
be" consistentl
ypr ofi
table"tradingforexinthelongrunhenceenj oying
fi
nanci alfr
eedom.

Wi t
hinthenextcoupl eofpages, wewi ll
bedi spensingv aluableinf
or mati
on
on"thehow"tot r
adet hewor ld'
slargestfinanciali
nstit
ution,theFor ei
gn
Exchangemar ketpopul ar
lyknownast heFOREXmar ket.Forexdoesn' t
operateontheprincipleofluck.Thereareacoupl eofreasonsf orf
ai l
urei
n
thi
sfinanci
almar ket,t
hemaj oronebei ngt hatpeople'
squestf ormoney
exceedsthei
rdesi r
et obepr operl
yeducat edont heintri
caciesoft rading.

Forexistooriskytowor kbyluck.Luckmaykicki nonceinawhi l

e,but
tr
adingtheforexmar kethasunder ly
ingpri
nci
ples,whichi
fnotlearntmay
neverresul
tinconsistentprofi
tabi
lit
y.Thi
sknowl edgeandpr
incipl
eare
whatwewi llsharewithyou.Ev erybodyknowsther e'
smoneyinforex
 Fundament
alsoff
orex

t
radi
ngandmostmakethemistakeofassumi
ngi
tisexcessmoneyl
yi
ng
t
herewai
ti
ngt
obetakenbyjustanybody.

Aft
eral
l,
it'
sthissameforei
gnexchangemarkett
hatbigbanks,i
nsur
ance
compani
es,invest
mentcompanies.
..makehugeprof
it
sfrom andpayus
meagrei
nterestsonourdeposi
t.

TYPEOFFOREXANALYSI
S

Bel
owar
ethet
ypeofFor
exanal
ysi
s

A.Techni
cal
anal
ysi
s

B.Fundament
alanal
ysi
s

C.Sent
iment
alanal
ysi
s

Mindyounonisbetterthant
heothersoknowi
ngthet
hreei
sanadded
advant
agebecausetheyareli
ke3legsofst
ool
ifonel
egisweaky
oufall
.
Star
ti
ngwit
hthef i
rst:

TECHNI
CALANALYSI
S

Thisistheframeworkinwhicht
radersstudypr
icemovementsbyl
ooki
ng
athist
orical
pricemovementsanddetermini
ngthecur
rentt
radi
ng
condit
ionsandpotenti
alpr
icemov ements.

I
tinvol
veslooki
ngatt
her
hyt
hm,f
lowandt r
endsinpr
iceact
ion.It
'sabel
ief
on"HISTORYTENDSTOREPEATITSELF"astheyl
ookforsi
milarpat
ter
ns
fr
om thepast.

Techni
calanal
ysisi
snotsomuchaboutpr
edi
cti
onasi
t'
saboutpr
obabi
l
ity
andisver
ysubjecti
veandi
deadi
ff
ers.

FUNDAMENTALANALYSI
S

Thisinv
olvespour
ingouteconomi
cdatareport
sandnewsheadli
nesand
random tweet
sbyaf or
merpresi
dentofacountr
yaswell
asusinglawsof
demandandsuppl y,
howtheunemploymentrat
eaff
ectacount
ries
 Fundament
alsoff
orex

economyandmonet
arypol
i
cywhi
chul
ti
mat
elyaf
fectt
hel
evel
ofdemand
fori
tscur
rency
.

Fundamentalanal
ysi
siscent
redmost
lyonmacr
oeconomi
cand
geopol
it
ics.

SENTI
MENTALANALYSI
S

Thi
sisusedt
ogaugehowot hert
rader
sfeel
aboutt
heov
eral
lcur
rency
marketf
orapar
ti
cul
arcur
rencypair
.

Nomatt
erhowstrongl
yyoufeel
aboutacer
tai
ntr
adey
oucan'
tmov
ethe
For
exmarketi
nyourfav
our

I
nsummar yoneisri
ghttosayfundament
alfactor
sshapesent
imentwhi
l
e
t
echni
calanal
ysi
shelpsusv i
sual
izet
hatsenti
mentandapplyafr
amework
t
ocreat
eouttradesplans.

Thi
sform ofTr adingi
swheny ouAnal ysetheMar ketusingIndicator
s,
Chart
sPat t
erns,Candl
esticks,Fibonacci,
Suppor tandResistance,Pivot
Poi
nts,Ell
iottwavesetc.Wheny ouuseanyoft heabovet oanalyzethe
market,I
t'
scal l
edTechnicalAnaly si
s.I
t'sthemostpopul arform ofTrading.
Thi
sisbecauseHi ghVolati
leNewsi snotreleasedeverydaysoy oucan'
t

MT4/
5INTERFACE

Thenexttopiconourout l
ine,
aftert
his,
isCURRENCYPAI RSWearenow
ent
eri
ngthePr act
icalSect
ionofForexwhereyouallwoul
dbeseei
ngwhat
wedoonline.ForthisNextSecti
on,wewouldbeneedingourMT4Appand
i
t'
svit
alyouunderstandhowi tworks.Todownload

i
Phone

bi
t.
ly
/MT4i
phonedownl
oad

Andr
oid

bi
t.
ly
/MT4andr
ioddownl
oad
 Fundament
alsoff
orex

Mi
ndy
out
hesi
tei
sCAPsensi
ti
vesocopyt
hel
i
nkwor
dforwor
d.

Bef
oreweputonourpr
act
ical
sui
tletusknowwhatademoaccount
means

Ademoaccounti sademonst rat

ionaccountandit
'sonlytopr acti
se.The
i
nter
esti
ngthi
ngaboutt heForexdemoaccounti syougetreal-ti
me
t
ransact
iondataofall
currencypair
s,meaningtheonlydif
ferencebet ween
y
ouandar ealaccountisj
ustthedepositmadet oarealaccount .

Ademoaccounti sveryaddicti
vethat'
swhyi t'
sadv i
sabl
et onotdwel lthere
forlongasi tsubconsci ousl
yslowl ydrai
nyourconf i
denceleveltoopena
realaccountandi fonecouldcashoutf r
om it(demoaccount ),wewoul dall
haveapr iv
atejethere.SoEnsur eyouareseeingthatpagecont ainingthe
CURRENCYPAI RSony ourMT4or5bef oreweexpl ainwhatitmeans.Al l
Forexbr okermakesr oom forademoaccount .ForMostphones, i
topensa
demoaccountaut omat i
call
y,whyf orsomey out y
peiny ourdetail
sand
otherr equir
ement sbeforeitopensbyswappi ngtheborderofy ourscreen
from lefttoright,
cli
ckont hemanageaccount ,
theplus"+"signandf ollow
promptt oeit
heract i
vateareal ordemoaccount .Confusing?Don' tworryI
goty oucov ered.Belowar epictori
alexpl
anationsofhowt ooper ateademo
accountont heMT4/ 5app.

NOTE: thet
hreeci
rcl
es,wit
hfaintedgreyl
i
keci
rcumf
erence,onsomeof
theimagesareasaresultofswipingmyfi
nger
sonmyscr eenfora
screenshot
 Fundament
alsoff
orex

Thei
mageony ourlef
tshowsthefi
rstmenut
hatgr
eetsy
ouwhenyousuccessf
ull
yopent
he
MT4/5app.Takenoteofthebot
tom i
conaswewoulddi
scusst
hem l
ater

Toaccessthesecondmenuswi
peyourscr
eenf
rom l
eftbor
dert
ori
ghtandsel
ectmanage
accountt
oaccessthemenubel
ow.
 Fundament
alsoff
orex

Cli
ckont he"+"si
gntoaddorstar
taMT4demoaccountorthatofyour
brokerwitht
heotheropt
ionofanexi
sti
ngaccountf
rom y
ourbr
okeras
seenintheimageabove.

Theimagesbelow, f
rom t
her i
ght,greety
ouwitht
hatmenuwherey
oucl i
ck
theopti
onof"LOGINTOANEXI STINGACCOUNT"whichenabl
eyouto
searchf
oryourbrokereasil
yratherthanscr
oll
i
ngupanddownendless
thr
oughthenumer ousbrokersaffi
li
atedwit
htheApp.

Thefir
stopt
ionofopeningademoaccountpopsupt hesecondimage,you
cal
lrandomlysel
ectanybroker
,aswellasy
ouraccountty
pe,lev
erageand
mouth-wat
eringdeposi
tswhichyoucan'
twit
hdr
aw
 Fundament
alsoff
orex

Youshouldselectanaccountty
pe,leverage,aswell asdeposi ty
ouintend
touseforyourrealaccountsoi
tfeelsrealbeforeit
'si s.St
arti
ngwithan
exaggerat
edfi
gurecoul dbl
owyouraccountwheny oudeci detogorealdue
tolackofri
skmanagement ,wewoul ddiscusslater
,f ornow, l
etunder
stand
theapp.
 Fundament
alsoff
orex

Dower emembert hisi

con?.Thefir
stIstoopent hevar
iouscur r
encypair
(tobedi scussedextensi
velyaf
terthi
stopic)you'v
eselected.Thesecond
i
st oaccesst heForexchartwhi
chisav isualr
epresent
ationofacurrency
pairoverasetperiod.

Thethir
di stoseeyourTr adesrecordsandthefourt
hyourclosedt
rades.
Thefif
thandsi xt
har enotneededf ornow.Justtoquenchyourcur
iosit
y
thefi
ft
hisf orthefi
nancialnewsf eedthatpopsfr
om ti
metot i
mewhi ch
mightaffecttheForexmar ket
.Sobasi cal
lyi
tcanbeseenasat oolfor
specul
ati
on.

Thel
asti
stoei
thersi
gni
norr
egi
steront
heapp.

Ourmajori
nter
est
sar
ethef
ir
stt
wobutbel
owi
sascr
eenshotoft
hef
ir
st4
accor
dingl
y.
Fundament
alsoff
orex
 Fundament
alsoff
orex

OnyourChar
tmenu(
secondi
mage)not
icet
hei
conont
het
opr
ight
-hand
cor
ner

Thefirsti
stoaccuratel
ygetthet i
meandcur rencypai rr
ate(rat
eont he
ri
ghtwhi l
eti
meont hebott
om)f ortheimagebel owt heexchangeratefor
EURUSDi s1. 15878at2021.10.2911:20am.Al so,thetoolcanbeusedt o
acertainrat
et opl
aceat r
adeTakepr ofi
torstopl oss(wil
lbediscussed
l
ater)
.Asf ornowNoneedf orthesecondicon.
 Fundament
alsoff
orex

Thethi
rdistoswitchthechartt
oanycurr
encypairpre-
select
ed.whil
et he
4thi
stochooset hechartt
imeframe,30mins,
1hour,1mont h,2month.
Yougetthedri
ft
,thefift
hwill
beexplai
nedinalat
ertopic.Asusualbelow
arepi
ctor
ial
explanati
ons.
 Fundament
alsoff
orex

CURRENCYPAI
RS

Forthi
sparttobemor eint
eracti
ve.Wewoul dallneedtoopenourMT4/ 5
AppsWear eget t
ingintomor eseri
ousbusinessrightnow.IBeli
eveyou
havesuccessful
lyOpenedy ourDemoaccountandhasLocat edthe
CURRENCYPAI RSpagej ustl
ikeIoutli
ned.Ify
ouhav en'
t,keepUsingmy
i
magesasGui desf ornow.Clickont heiconpoint
edbyt hearrowtoaccess
 Fundament
alsoff
orex

t
hev
ari
ouscur
rencypai
rknownaspai
rst
reams.

Ther
ear
edif
fer
entcur
rencypai
rsavai
l
ableinthefor
exmarketf
ortradi
ng.
Bel
owandnotl
imi
tedto,ar
etheexampleofcurr
encytr
adi
ngonf or
ex

EUR.
..
..EURO

USD.
..
.USDOLLARS

GBP.
..
.GREATBRI
TISHPOUNDS

CHF.
..
..
.SWI
SSFRANC

NZD.
..
.NEW ZEALANDDOLLARS

AUD.
..
..AUSTRALI
ANDOLLARS

CAD.
..
.CANADI
ANDOLLARS

JPY.
..
.JAPANESEYEN

CNY.
..
..CHI
NESEYUANet
c

Asy ouobser
v edony ourMTI t
'smost
lywri
tt
enast heirabbr
eviat
ions.
Thesearesomeoft heli
stsofPopul
arCurr
enciestradedontheFor ex
marketWiththeirabbrevi
ati
onsandFull
meaningsAni mportantthi
ngt o
notehereist
hatt heBaseCur r
encyi
salwaysstrongerthant
heQuot e
 Fundament
alsoff
orex

Cur
rency(
wit
hfewexcept
ionsandwewi
l
lseewhysoon)

Alsobel
oweach,youwouldseesomesetofnumberswrit
ten.Justfocus
onthefi
rstnumberfornowThatnumberi
stel
l
ingyou,howmanyUni tsof
theQuot
eCur r
ency,youwoul
dneedtoget1unitoft
heBaseCur rency.

Int
hecaseofUSDJPY,
youneed105.
661uni
tsofJPYt
oget1uni
tofUSD
asseenbel
ow

LetmeuseaLocal
scenar
iot
ogi
vey
ouguy
sanexampl
eIfy
ouhav
ea
 Fundament
alsoff
orex

Currencypairbt
wUSDandXXXcur rencyUSD/XXX..
..
..
360Thisisfi
rst
tel
li
ngy outhatUSDisstrongerthanXXX,henceUSDi stheBaseandXXX
theQuot eSothatiswhatthatnumberbyt hesi
de,Al
way stel
l
sus.How
manyQuot ecurrenci
esdoy ouneedt oget1UnitoftheBaseCurrency

Ibel
ievet
hisiscl
ear.ThattheBaseisalwaysStrongert
hantheQuote.Let
megi v
eanotherexampletomakei tcl
earer
,ther
ear eoccasi
onsinwhich
theStr
ongeronesarewr i
tt
enasthesecondpai r
.Examplesincl
ude

AUDUSD

USdol
l
arsi
sst
rongert
hanAust
ral
i
andol
l
ars

NZDUSD

USdol
l
arsi
sst
rongert
hanNewZeal
anddol
l
ars

EURGBP

Poundsi
sst
rongert
hanEur
o

Youal way sknowt hem becauset heystar twithzer o-pointsomet hi

ng
wr i
tt
enbesi det hem Nowwheny ouseet hesef ewexcept ionsDon' tbother
toomuchaboutwhyt heWeakeronei swr it
tenf ir
stev ent houghi t'
squite
glari
ngt hatt heQuot eisstrongerWhaty ouj usthav et odoi st otakenote
ofthem, Itdoesn' taffectyourtrades.It'
sj ustfort heknowl edgesake,so
notet hem down.Theyar ethepai rsIli
stedabov eHowev er,apartfrom
thosef ewexcept ions, General
lyinFor ex...TheBasei sal way sstronger
thant heQuot e.It'
sassi mpl east hat.Also,nomat t
erwhi chonei swr i
tt
en
fi
rst,Alway sknowst hatthePr i
cey ouseebesi dei tisHowmanyoft he
Quot eCur rency ,youwoul dneedt oget1uni toft heBaseCur rencyWewi l
l
nowmov et oanot herVeryimpor tantPar tofFor exLet '
spaymor eat t
enti
on
hereThi si swher emanypeopl ealway saskquest i
ons, Howev er,Foryour
Foundat iont obeSt ronginFor exy ouneedt ogr abt hi
sconceptsot akeyou
ti
meandponderov erit
.

TheBi
gQuest
ioni
sNow.WhenDoy
ouBuyandWhenDoy
ouSel
l
?Now,
 Fundament
alsoff
orex

thi
siswher
epeopl
ealwaysgetconf
used.Becauset
hosewhot
aughtt
hem
usedthewr
ongsemanti
cs

YOUBUYWHENYOUKNOW THATTHEMARKETWOULDGOUP

WHI
LE

YOUSELLWHENYOUKNOW THATTHEMARKETWOULDGODOWN

I
fy ounot i
ce,Icareful
l
yusedWOULDIdi dn'
tsayYouBuywhent heMarket
i
sgoi ngUpAssumi ngIsaidthat,Iwouldst i
llbecorrectbuty ouwouldget
mor econfusedYouwoul dstartasking,Whobuy sanyi tem wheni t
'sGoi
ng
Up?Now, asUsual,Iwill
useaLocal scenari
ot oexplainthistopi
c,bythe
ti
meI 'm done,t
hisseeminglycompl exconcept ,will
lookv eryeasytoyou,
Believ
eme, not
hingishardinForexJustt el
lyoursel
fifany onewithone
headcandot hi
s,thatyoutoocandoi tbecausetheyhav eoneheadasy ou
do

Whatwear edoinginForexinverysimpleterms.Justfol
lowmehere
cl
osel
ybydi st
ancingyoursel
ffr
om anydi st
ract
ions.Letmeuset
his
anal
ogytoexplainwhatImean.Usi ngtwoindivi
dualsXandYIwoulduse2
namesinthisbri
efAnalogy

Name1X(thecur
rentpr
esi
dentoft
hecount
ry)Name2:
Y(f
ormer
pr
esi
dent
)

Nowl et'
sgett ot heAnal ogyt ounder
standi nalayman'
swayhowFor ex
works.WhenYwasi npower.Thedollarwasatat imearound180t o220
Let'
sjustt aketheav erageandsay200.WhenXent eredpower..
.Thenat
somepoi ntDollarshutupt o500perone.Assumi ngyouknewDol l
arwould
appreciateagai nstt hecurr
encyl i
kethisandy ouhad2Mi l
lionofsuch
curr
encyl yingfallowi nt
heBankaccount ,
y ouknewfrom yourexperience
asaFor extradert hatuncertaint
yinGov ernmentweakensacur rencypair
andy ouusedt hisy our2mi l
lionandboughtdol l
arsandkeptin2015.

I
twouldgi
vey
ouabout$10,
000.Now1y
earl
ater
,Dol
l
arj
ustescal
atedt
o
500per
.
 Fundament
alsoff
orex

Andy ouwentt otheBank,cashedouty our$10,

000andexchangedi tback
tocurrency.I
twouldnowy iel
dyou5Mi l
li
onNaira(remembery oujust
stocked2mi ll
ionNair
a).Thatmeansy oumade3Mi l
l
ionPr of
itNowask
Yourself.Di
dyouuset hat2Mill
iontodoanyBusi ness.?Theansweri sNO
Youpr acti
cal
lydidnothi
ng,Whatj usthappenedri
ghtt her
ewasFor ex.

Youl everagedonthef l
uct uati
onsi nthePr i
ceofDol l
arstoNair
atomake
yourselfMoney .Wi
thoutDoi ngAny thing.
,youjustsatathomewhilethe
ForeignExchangemar ketdidt hejobf oryou.Thisisbasical
l
ywhatwedo
i
nFor ex.
..Thi
sisnotthenor mal mar ketormallthatYouBuyandSell
Clothes.Wi t
hForexisall aboutSPECULATI ONi facurrencyval
uewil
lgoup
ordownwi thi
naparticularperiod

Forsomet hatwoul daskwhatar eyouBuy i

ngandSel l
i
ng?Thi sisj ustar aw
Anal ogybecausei ntheFor exmar ketit'
sev enmor ei nterest ing.Youdon' t
hav et owai tf or1y earort omakemoney .TheseCur r
enci esar eConst antly
Fluctuatingi nmi nutes( whati susuallyr ef erredtoasVol atili
ty).soi t's
thoseoppor tuniti
escausedbyt heseFl uct uat i
onsint hePr iceofone
currencyconcer ninganot hert hatFor ext rader smaket hei rmoneyf rom.
Becauset heyhappenDai ly.That '
swhyBankswoul dnev eral l
owy out o
l
ear nFor ex.Theypr efery oucomet ot hei rBanksandf ixt hemoneyf or
meagr einterestr ates.Toev enshocky ou,I nvestmentBankscont ribut e
mor et han70%oft het otal Liquidit
yinFor ex,t heyusey ourMoneyt oTr ade.
DriveBi gcar sandLi veinBi gHousesandgi vey oupeanut sasi nter estor
meagr eamount sAsSal ary .Thisanal ogyi si nthelowestt ermst hat
every onecanunder stand.Wi tht i
mei twoul dgetcl earer .
..ButIhopey ou
allarehav ingani deaofhowwemakemoneyi nFor ex.SoI nt heabov e
Anal ogy,Imadeabouthowbuy i
ngdol l
ar sandexchangi ngf orXXXl ater...
Youwi ll
not icet haty oudi dn'tBuyorSel lanyr ealcommodi tytomake
money .Yout ookadv antageoft hechangei ntheExchanger atet omake
money .Thisi st hesamet hingwedoi nf or exbutinSHORTERTI MEFRAME,
Sowhydi dy ouBuyUSD/ XXXi nt heabov escenar io?YouBoughtUSD/ XXX
becausey ouknewbef or
ehandt hatthev alueWoul dRi se.
 Fundament
alsoff
orex

COURSEOUTLI
NE(
stage2)

WHATI
SAPI
P?

PIPisthebackboneofFor ex
.Letmepar aphraseEVERYTHINGWEARE
GOINGTOBEDOI NGI NFOREXBOI LSDOWNTOPI PS.Ifyoumi sst he
ConceptofPipsher e,beli
eveme, yourfoundat i
onisgoingt
obeshakyal l
thr
oughy ourForexjourney.Curr
enciesar egaugedinpips,Tr
adeor ders
areplacedinpips,Profit
sarecalculatedinpips.Pr
acti
call
yeverythingwe
aredoinginForexinvol
v esPips.Sot akey ourti
metounderstandt hisver
y
i
mpor tantt
opic.

API Pi sthesmal lestunitinwhi chacur rencypaircanchange.Some

biologyst udentsaresmi l
ingnow, don'tbedecei vedbecauset hat '
sthe
closestitwi l
lgetsodon' texpectanysy nthesissuffix.Itcanalsobesai dto
beast andardizeduni tandt hesmal l
estamountbywhi chacur rencypai rin
thef orexmar ketcanchange.I t'
sj ustli
ket heCELLofFor ex.Thoughasy ou
gof urther,youwilllearnthatt her ear esmal l
erversionscal l
edmi cropips.
Butl et'
snotgetany thingcompl icatedf ornow.Let '
snowgett ohowt o
calculatepips.Thi siswher emaxi mum concent rat
ionisr equi
red. .
.Ifyou
aredi str
actedbef orenow, pleasest ayfocusedf rom nowonwar ds.For
mostcur rencypairsinFor ex, West artCalculati
ngthepi psf r
om t he4th
decimal placeHowev er,
therear eaf ewexcept i
ons.Wewoul dst artwiththe
gener alonesbef orewegot ot heexcept i
ons

SobeforeIstar
t,Letmer epeatThePipi
sbeingcalcul
atedstart
ingfrom
the4thdeci
mal place.Soignoret
hatnumbersuperscri
ptbesideall
the
pair
s.Thesuperscripti
swhatsomeofuscal lr
aisetopowerSoi fEURUSD
whichiscur
rentl
yat1. 1806Makesamov eof1pi pIt
snewv aluewoul d
become1.1807
 Fundament
alsoff
orex

Curr
encymovesgeneral
lyinForexaremeasur
edandcalcul
atedi
npipsSo
howdidIget1.
1807??Iadded1t othe4t
hdecimalpl
acednumberthere
anditi
ncr
easedfr
om "6"to"7"

Nowi fGBPUSDmakesamov eof2pipsfrom thatCur r

entvalueIt
'snew
Valuewouldbeat1.0962Nowhowdi dwear ri
veat1. 0962??Weadded" 2"
tothe4thdeci
malplacenumberwhi chis"0"anditincreasedt o"
2"Inthe
fi
rstmethodWejustdirect
lyadded1Tot helastdecimal pl
acednumberof
thatval
ueof1.
1806Andwei mmediatel
ygot1. 1807Fort helongmet hod
SinceIwastol
dthatthemar ketmadeamov eof2pi ps.Remembert hat
 Fundament
alsoff
orex

ori
ginal
lyItol
dyouguysthat1PIPfora4decimalplacecurr
encypairi
s
0.
0001Sot hemovemadebyGBPUSDi s2pipsIwoul dhave0.0001x2=
0.
0002Iwoul dnowaddthis0.0002t
otheori
ginalv
alueof1.2971We
wouldnowhav e1.2971+0.0002=1.2973Sameanswer swiththeabove
Usingthel
ongmethodThemov emadewas10pi ps

Remembert
hat1PI
P=0.
0001

So10pi
pswoul
dbe0.
0001x10=0.
001

(
not
icet
hezer
osr
educed)

Sot
ogett
henewv
alueofGBPUSDwehav
e

0.
001+1.
2910=1.
2920

sameanswer

Iknowsomeonewoul dask,Sincetheshort
cutiseasy ,Whyteachusthis
l
ongmet hod.Aswegohi gher,itget
smor ecompli
cat edespeci
all
ywith
numbersthatarenotroundnumber sWewoul dseet hatsoonNowf or
mostcurrencypair
sinForexThepi pCal
culat
ion,startsfr
om the4th
deci
malplace.Nowt her
ear esomecurrencypair
sthatar enotupto4
deci
malplaces.Someoft hem havespeci
ficwaysofCal cul
ati
ngthem.
Exampl
est hosepai
rsareJPYpai rs

EgUSDJPY,
EURJPYGBPJPY,
AUDJPY,
NZDJPYet
c

AnotherExamplefrom theimageofUSDJPYabov e.
..I
t'
scurr
ent
lyat
107.17.
..I
fitmakesamov eof2pi ps.TheNewv al
uewouldbeat107.19
Howdi dwegetthis?Weadded" 2"totheseconddecimalpl
acenumber
whichis"7"anditi
ncreasedto"9"That '
showwegot107. 19

LETUSSTARTWI THJPYPAI RS.ForJPYpai rsEgUSDJPY. ..

..Thepips
Calcul
ati
onstart
sfrom t
he2nddeci malplacedigi
t.I
fy ounoticethatit
'
s
notupto4decimal pl
acesli
keothersthatwedi dbefore.Let'
sseesome
examplesLet'
sgotothelongmet hodFort heLongmet hod,y oushoul
d
takenotethatForJPYpair
s1PI P=0. 01Nol onger0.0001l i
kewesawf or
 Fundament
alsoff
orex

othergener
alpai
rs.Thi
sisbecauseJPYpai
rshav
ejust2deci
mal
places.
Let'
sgoal i
tt
lebi
thigher

Assumi
ngUSDJPYmadeamov eof10pipsf
rom t
hatVal
ueof105.
67The
newval
uebysi
mplyaddi
ng10fr
om the2nddeci
malpl
acenumberwoul
d
be105.
77Usi
ngthel
ongmethod

ForJPYpai
rs1PI
P=0.
01Hence0.
01x10=0.
1Addi
ng0.
1tot
heor
igi
nal
val
uewenowhave

107.
17+0.
1=107.
18

Somepeopl ewoul
dask,whyar ewegoingthroughthestr
essofsolvi
ngall
theseElement
aryschool addit
ionsofdeci
mals.Youwouldneedi twhenwe
gettoTakingpr
ofi
tsiny ourtrades,
sett
ingtr
aili
ngstopsetcSolearni
tand
getgroundednowoni tsot hatwhenwegett here,
uwouldn'tgetconf
used.

PIPCalculati
onist
heBedrockofmostthingswewoul dbedoinginFor
ex.
Someal soasked,whatdeter
mineshowacur rencypairmovedorhow
manypi psitcanmoveThatissetbythemarket,for
cesofdemandand
supplyetcwewoulddiscussall
thesesoonOthersalsoasked,Howwould
theyknowt hi
scurr
encypairmoved5pipsor10pi psor20pipsetc

Uwoul dseeitthereony ourMT.I magine,y

oucamedur ingt
heLondon
sessionandyousawGBPUSDat1. 2600,andyoucamebackdur i
ngthe
NewYor ksessionandsawt hesameGBPUSDat1. 2670youdon'
tneeda
Prophettotel
lyout hati
thasmov edandint hi
scase,I
tmadeamov eof70
pips.Soyouwoul dalwaysseei tther
eony ourMT4.Themar keti
s
constant
lymov i
ngandf luctuat
ing.

CONCEPTOFBI
DPRI
CEANDASKPRI
CE

Nowwear egoingtobeansweri
ngthequest
ionthatmanyofyouwere
aski
ngbefore.Whyaret
here2pri
cesbesi
deseachquote?Il
ikeTeachi
ng
i
nstepsthatwon'tov
erl
oadyouwit
hwhoi sl
ist
ening.Asweapproacht
hat
 Fundament
alsoff
orex

ar
eawewouldtackl
eitandy
ouwi
l
lunder
standi
tbet
terLet
'snowgett
o
whatt
heymean.

BI
DPRI
CEI
STHEPRI
CETHATBUYERSAREWI
LLI
NGTOBUY

WHI
LE

ASKPRI
CEI
STHEPRI
CETHATSELLERSAREWI
LLI
NGTOSELL

Memori
est
hosedef
ini
ti
ons.Wewoul
dbr
eaki
tdownnow.Fr
om t
heI
mage
abov
eyouwoul
dseesomethingl
i
ke

USDCAD 1.
23691.
2370(
inr
ed)

1.2369I
stheBi
dPriceWhil
e1.2370IstheASKPrice.Asusual
,Iwoul
d
usewhati
shappeni
ngaroundustoexpl
aint
heseconcepts.

Ialway slikesimplify
ingthingsf ory ouguy s.Forexi snotmeantt obehar d,
i
t'speoplet hatmakei tseem compl ext omonopol izet hebusi nessf or
themsel ves.Let'
ssayy our eceive$10, 000f r
om af ri
endabr oad.Andy ou
walkintoabankt oexchangei t
, Bankwoul dt el
ly out hatthel atestCBN
rateislet'
ssay#350.Sot heywoul dgi ve#3.5Mi lli
onasequi valenttot he
$1,000Let 'ssaythenextday .youwal ki
ntot hatsamebank.Youhadan
emer gencyandy ouneededt ot r
avel abr
oadandy ouar er equest i
ngf or
same$10, 000.Theywoul dnowt el
l youthatt hei
rownBankr atei s#370So
youwoul dnowhav etopay#3. 7Mi ll
ionforthesame$10, 000I nt hi
s
sit
uation,#350her eist heBidpr ice,whi l
e#370i st heAskpr ice.Thati s
howBankmakest heirMoney .Theyjustmade#200, 000pr ofitfrom youi n
j
ustaspaceof24hour s.Thati swhyBankswoul dal way sbeKi ngov erthe
masses.Theycont rol t
hef l
owofmoney .Andwoul dalway scont i
nuet o
l
iveinBi ghousesandDr i
veBi gcar sandpayt hewor kerspeanut s.

Let'
scomebackt oForex.I
nForex,t
heBi dandAskpricesworkthesame
way .HowevernotasexuberantastheoneBanksexploituswith.The
dif
ferencebetweenthese2inforexisjusti
npoint
s.SoTheBi dPriceist
hat
pri
cet hatBuyer
salsoinForexarewill
i
ngt oBuywhil
eAskpr i
ceist hepr
ice
thattheSell
ersarewil
li
ngtosell
.HereBuy er
sandsell
er sar
enothuman
 Fundament
alsoff
orex

bei
ngs.

It
'sthemarketint
hiscase.YouBuyf r
om themarketandsel
ltothemar ket
.
Thatiswhytheywouldnev erwantyoutolear
nFOREX.BecauseFor ei
gn
Exchangei
ssoLi qui
dthatitcanchangeyourFort
unearoundinjustafew
weeksofTrading.Howev er,t
hisMonopol
yofknowledgeisbeing
ci
rculat
edamongt heEli
tes.Let'
srel
atei
ttoourexampleofbanksabov e

I
nt heexampl eIgav eabove,Wheny oubr oughty our$10,000t otheBank,
youarethesel leratthati
nstantwhiletheBankwast heBuy er.Sot hey
gaveyout hei
rBi dpr i
ceof#350.Becauset hatisthepr i
cet heyarewi l
l
ing
toBuy.InreverseWheny oucamebackt henextdayt haty ouwantt ot r
avel
foranemer gencyYounowbecamet heBuy er(nolongertheSel l
er)You
neededtoBuydol larstoTr
av elur
gently.Nowt heBanki nthiscasebecame
theSell
er.Sot heygav eyouthedollarsatthei rAskpricewhi chistheprice
thatSel
lersarewi ll
ingtoSel
l (r
emembert heyar enowt hesel l
ers)
.

Sothemeaningoft
hisabov
eisthatwhenyouplaceaBUYORDERinForex,
i
twouldacti
vat
eforyouusi
ngtheAskpri
ce.(r
ememberthatt
heAskpri
ce
i
sthePricet
hatSel
ler
sarewil
l
ingtosel
ltoyou,whoi
stheBuyer
)Whil
ein
rev
erse

Wheny ouplaceaSELLORDERi nForexItwouldactivat

ef oryouusingthe
BIDprice(rememberthattheBIDpri
ceisthePricethatBuy er
sarewi l
li
ngto
Buyfrom y ouwhoistheSell
er)Al
sonotethatfrom theexampl eIgave
above,370wast heAskPr i
ceandit'
sbiggert
hant heBidpr i
cewhichwas
350.SoAl soinFor
ex...TheAskisal
sohigherthantheBi dpri
ce.

WHATI
SASPREAD?

SPREADi sthedi
ff
erencebetweentheBI
DandASKpr ice.TheSpread
vari
esbetweenTradingSessi
ons.WhentheVolati
l
ityi
shi ghandmany
mar ket
sareopenatthesamet i
me.Thespreadisalwayssmal l
(meaning
thatyoupayBankslessercommissi
ons)
,thatisanotheradvantageof
 Fundament
alsoff
orex

Tradingwhenmanymar ketsareopenHoweverwhen" onlyonemar ketis

openort heVolati
li
tyislow,t hespreadsarealwaysbigger".Not
ethisdown!
IntheexampleIgav eabov e.TheSpreadis#370-#350=#20TheSpr ead
i
s20.Thati sthepr ofi
toft heBanks.SoalsoinForex,
theSpr eadisthe
profi
toftheBrooker s.howev er,i
nthi
scase,i
t'
sv er
ysmal lbecauseit'
s
measur edinpips.Sot hatishowt heSpreadworks.Wewoul dmovet o
anotherimportanttopic.

TAKEPROFI
TANDSTOPLOSS

Asat r
ader,
youwi llnotal
waysbeonl i
nemoni tori
ngal ly
ourTrades.It
'snot
asifweForexTrader s,j
ustgetaseatandst ayinf rontofourlaptopsall
day.Someofy ourtradesmaystayov ertheNight,somemayl astfor2
days.Andyoumayhav eadatewi t
hy oursomeone, youhav eaChampi ons
Leaguetowatch,y ourFri
endthatjusthammer edononebi gtr
adeis
hosti
ngaPar t
y,youev enhaveyourwor ktogot oify ouar eaworker.So
youhavemanyengagement s.That'
swher eMar ketor derscomeintoplay.
TakeProfi
tandSt opLossareFormsofMar ketor ders.

TAKEPROFI
T

Letussayy ourTar getprofitforthispar

ticularTradei sjust50pi ps.You
don'twantt obeGr eedy.LikeIal waysadv i
se,Nev erbeGr eedyi nForex.
Eli
mi nateGr eed, Pickthelitt
leyoucanandmov eon.Ev enify oucan'tmake
$100dai l
y.Eveni fit'
sonly$50, $20,$10may be$5or$2asy oumakedai ly
,
Mybr otherandsi ster,i
naweekt hat'
s$70t o$250.Whopay ssuchi na
weekwi thyousi t
ti
ngatt hecomf ortofyourhome?I t'
sgoodf orastartand
abegi nner.Wi thtime, youcanupgr adeto$100dai l
y .That'
s$500weekl y
(#180, 000)Soy ougr owgr aduallyRememberi nFor exwear eal waysdoing
2things.Buy ingandSel l
ingLet '
stakeascenar i
owhenwear eBuy i
ngand
giveanex ampl e.

Let'
ssayy ouenter
edacurr
encypair.Let'
scalli
tAAA/ BBBAndIt'
s
current
lyat$40.Andfr
om yourTechnicalorFundamentalAnal
ysi
s,y
ou
foundoutthatitwoul
dsoonrise.Soyouimmedi atel
yopenedyourMT4
 Fundament
alsoff
orex

andCl i
ckedonBUYAndy ourtargetf orthi
sTr adeisjust50pipsy oudon' t
wanttobegr eedy.Fory out osetaTar getprofitat50pipsyouaddi ttothe
pri
ceuent ered,whi chwas$40Soy ourTPwoul dbeat$90Soany ti
me, t
he
curr
encypai rAAA/ BBBSt art
sCl imbingandReaches$90Ev enifyouar e
notonline,YourMT4t hroughy ourBroker ’
sserv erwouldcl
oset heTr ade
foryouaut omaticallyusi ngy ourMT4andaddt he$50pr of
ittoy our
accountimmedi at
ely .Sot hatishowTPwor ks.Oncey ousetitatt hat
parti
cularpri
ceony ourMT4, whet hery ouareonl i
neornot.Itcl
osest he
Tradefory ouandLocksy ourpr ofi
t.Let'snowOpenourMT4, toseewher e
tosetourTPoni t
.Sot hatwecanal soseeapr acti
calexampleusi ngReal
pair
sOpenYourMT4.

Cl
ickonthecandl
eiconbel
owpoi
ntedatbytheblackar
rowf
rom anypage
uarecur
rent
lyontotakeutoy
ourchar
ts(anyChart)

ThenCl
ickonthe(
+)iconpoi
ntedatbythebl
ackarr
owt
otakeut
oanot
her
pagewhereyouwoul
dseewher et
oinputi
nyourTP.
 Fundament
alsoff
orex

SoHav
ingseenwher
etoI
nser
ttheTakePr
ofi
t.

Let'
snowdosomepr acti
cal Exampl
esofhowtoCal cul
ateTakepr ofi
tThe
BoxontheRightl
abel
edbyt hebl
ackarr
owisthespacef orinputti
ngin
yourTP.Whilet
hespaceont heLef
tisf
orputt
inginyourStopl osswhich
wewouldseenextAssumi ngIwanttoBuyEURUSDatt hatCurrentASK
PRICEof1.0960seeninthei mageaboveAndIwantaTakePr ofi
tof30
1
pi
ps.WhatIwoul
djustdoi stoadd30pipstothatFormerv al
ueof1.0960
Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

andIwoul
dhav
e1.
0990

Ihopey ouremember edourpi pscal cul

ati
on..
..Thisiswher ewearegoing
tobeusi ngitSoMyTPf orthattradewoul dbe1. 0990Iwoul dgoint
othat
TPboxspaceandt y
pei tin.SoI mmedi atel
ytheCur rencypairr
isesdur
ing
i
tsusual fl
uctuati
onsandget sto1. 0990MyBr okerwoul di
mmedi at
ely
ClosetheTr adeforme,Whet heram onlineornotandt henAddmyPr ofi
t
tomyaccount .(
NoticethatIusedAskpr i
cebecauseIwasBuy i
ng,duri
ng
Sell
ingwewoul duseBi dprice)Let '
sseeanot herexampl e

ForexamplemostofmyTr ades.Imaypl acethem atNi ghtorInthe

Morningduri
ngLondonsessi onaft
ermyAnal y
sis.Iwouldl ogoutofmy
MT4af t
erSetti
ngmyTP.WhenIcheckbacki ntheafternoonorthe
Eveni
ngIwouldnot i
cethatmostoft hem havebeencl osedandmyPr of
it
addedtomyaccount .Let'
sseemor eexampl esLet '
stakeaUSDol lars/
CanandianDoll
arsattheCur r
entAskPriceof1.3308Let 'ssayIwantt o
BUYthepairandIwantaPr ofi
tof50pips.Formet ogetaTPof50pi ps
fr
om thattr
adeIwouldneedUSDCADt oriseto1.3358(1. 3308+50pi ps)

HenceIwoul
dgot
omyTPboxandt
ypei
n1.
3358

WhenUSDCADr i
sesto1.3358,myBr okerwouldautomati
cal
lycl
osemy
Tr
adeformeandaddmypr ofi
ttomyaccount .RememberinBuying,
wear e
maki
ngrefer
encetotheAskprice,e,nottheBidpri
cethat'
swhywear e
maki
ngrefer
enceto1.3308andnot1. 3305(t
heotherpri
ceontheleft
whi
chistheBidpr
ice)SoWhenUSDCADr i
sesandgetsto1.3358(which
woul
dbea50pi psmov e)MyBr okerwoul dcl
osetheorderandKeepmy
pr
ofi
tsi
nmyFor exaccount.

SoLet
'sgett
otheSELLSCENARI
O

Let'
sFocusclosel
yfrom her
eonwards,t
hisiswher
epeoplealwaysget
confusedandaskquesti
ons.Howeverencouragey
oursel
fthati
fpeopl
e
whodi dn'
tev
engot oschoolar
etr
adingforexanddoi
ngthebasicaddi
ti
on
 Fundament
alsoff
orex

andsubt
ract
ionsthatyoutoocandoi
t.Solet
'sf
oll
owcl
osel
yfr
om her
e.I
n
Sel
li
ngaCurrencypairatt
heForexMarket
.

YouareSel
li
ngaftery ouhavefoundoutfrom yourTechni
calor
Fundament
alAnalysisthatthePricewoul
dFall.Hopewer ememberthat
.
SoasthePri
ceisf all
i
ng,y ouaremakingmoney .Thi
sistheOpposit
eof
Buyi
nySoimmedi atel
ythePr i
ceFallsf
rom $100to$55.TheBrokerwoul
d
addyour45pipsprofitt
oy ouraccount
.

That'
sthebeautyofFor
ex,y oumakemoneybot hway s.Whethera
Curr
encyisRisi
ngorFall
ing,it'
snoneofyourbusi
ness.youjustent
erinthe
ri
ghtdir
ect
ionandmakey ourmoney.Let
'snowseePr acti
calExamples

Let'
ssayaf t
erourAnal ysis.Wef oundoutt hatAUDUSDwoul df al
l.Sowe
decidedt oShort( Sell
)AUDUSDpai r
.Remembernowwear ei nterestedin
theBidpr i
cebecausewear eSelli
ng.Andt heBi dPriceiscurrentl
yat
0.6743int heimageabov eandIwantandIwantaTPof60pi ps.What
2
wouldbet hev alueofmyTP.Her ebecausewear eexpecti
ngi ttofall.Our
TPwoul dbebel ownotabov e.Sosubt r
acting60pi psfrom 0.6743Wehav e
0.6683HenceIwoul dinput0. 6683i nt
ot hesameTPbox, weusedwhenwe
wer ebuying.(SameTPboxi susedbot hwhenuar ebuyingorsel l
ing)So
whenAUDUSDf all
sandr eaches0. 6683myBr okerwoul dautomat i
cally
closeandaddmypr ofitformeSoI mmedi atel
yPr iceFall
stot hatLev el.
YourBr okerwoul daut omat ical
lyaddy ourprofitforyou.

Soinsummar ywehav eseent hatWhi l

eBuy ingourTPi supHowev erin
ReversewhileSel
li
ngOurTPi sbel owthepr ice.IWil
lDropAssignments
thatYouallwouldusetoPr acticeanddr opt heAnswer sonthepage
tomorrowmor ni
ng.Throughouty ourEnti
reFor exJourney.youwould
alwaysEncounterPi
psCal culationinonepl aceoranother.Sothosewho
aresti
llhav
ingProblemswi thPi ps.UsethisNi ghtSCROLLUPandRev i
se

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

t
heLect
uresonPi
ps.

STOPLOSSi sanot herimpor tantf orm ofMar ketorder,whichisthe

opposi
teoftheTakePr ofitordert hatwesawl astti
me.Her eyouaregivi
ng
yourBr
ookerandI nstructi
ont oCl osey ourtr
adewhent hemarketwantsto
goagainstyou.Thei salway sgoi ngupanddownandsomet imesaNews
maypopupandswayt hemar ketint heoppositedirect
ioninwhichyour
Tradewaspl anned,Butwi t
haSt op-lossorder.Immedi at
elyt
hemar ket
wantstochangeandgot heopposi tedirecti
on,YourBrokerwouldclosethe
Tradef
ory out hr
oughy ourMT4, ev enify ouarenotonline.

Let
'sseewheretoputtheStop-l
ossor derinourMT.Got othesamePl ace,
wherewesawwher etoputinTPl asttime.TheBoxont heLefti
swher e
youtypei
nyourStopLoss.Let'
ssayIwantt oBuyaCur r
encypairnamed
AAA/BBB.Andthepri
ceisCur r
entlyat$40AndwantaTPof50pi ps(SoI
wouldsetmyTPat$90, wesawt hispar ti
nthelastcl
ass)

Nowaf terset
ti
ngmyTP, Iwouldalsotel
lmyBr oker,t
hatlookMrMan, I
'
m
Buying,
soIwantmyt radetobeopenonl ywhent hepri
ceisgoingup.
That
i
fthepricetri
estogodownbyl et
'ssaymoret han10pips,ClosemyTrade
forme.Soy ouonlywanttostayi
nt hetr
adewhent hepricei
sgoing
up.Nowy ougaveyourBrokeraSt
op- l
ossorderof10pips.

Remembert heiniti
alpri
cewas$40,Sof oraStop-l
ossof10pi ps,you
shouldsetitat$30, Soanyti
met hepri
cerever
sesandst art
sf al
li
ngwi t
hout
yourknowledge, ifi
tgetsto$30.Yourtr
adewoul dcloseforyou,
prevent
ingfurtherlosses,eveni
fyouarenotonline.Letmegi veanother
tent
ativ
eexampl e,befor
eweuseReal chart
sandseeexampl es.

Let
'ssayIwantt
oBuyaCur
rencypai
r

CCC/
DDDAndthep3r
icei
sat$100AndIwantaTPof40pipsandaSt
op-
l
ossof5pi
ps(
meaningIdon'
twantt
olosemoret
han5pips)
Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

MyTPwoul dbe$140Whi lemy .Stop-lossshoul dbeat$95Soany ti

met he
pri
cewant st ofall,
anditfall
sby5pi psfrom $100t o$95MyBr okerwoul d
automaticall
ycl osemyTr adeforme.Pr eventi
ngmef r
om furt
herloss,
Evenifyouar enotonl i
ne.Technol ogyofMT4hasmadeFor exso
i
nterest
ing,y oucont r
olhowmuchy ouear nandal sohowmuchy oudon't
wannalosei ncasemar ketreversesLet '
sseesomer ealexamplesnow.
Let'
ssayIwantt oBuyUSDJPY. .Att hatAskpr iceof107. 47AndIwanta
TPof40pi psandIdon' twantt olosemor ethan5pi ps.Whatwoul dbe
nowbemyTPandSLMyTPwoul dbeat107. 87(ieafteraddi
ng40pi psto
thecurr
entpr ice)

AndmySL

Woul
dbeat107.
42

(
aft
erSubt
ract
ing5pi
ps,f
rom t
hecur
rentpr
ice)

Iwoul
dnowt
ypei
nbot
hint
otheTPandSLBoxr
espect
ivel
y.

SoPi psCal
culat
ionisbasi
call
ystr
aightfor
wardify
oul
earnhowt
o
Calculat
eit
.It
'snotRocketsci
ence,Justbasi
cal
l
yAddi
ti
onandSubt
ract
ion.
Justnotewheny ouareBuyingorSell
ing.

SoInSummar yWhileBuyingyourTPisabove(becauseyouwantthepr
ice
togoup)whileyourStopLossisbel
ow( becausei
fitst
artsgoi
ngdown,
that
'sagai
nstyourtr
adeplan)
.

I
NREVERSE

WhileSel l
ing,YourTPi sbelow( becausey ouwantt hepr i
cetof all
)Whi l
e
yourStoplossshoul dbeabov e(becausei fitst ar
tsgoingup, t
hat '
snotyour
tr
adepl anagai n)Nowl et
'sgett ohowt oCal culateStop-l
ossint he
oppositeScenar iowhichisSel l
i
ng.Followcl osel yfr
om her e,
soasnott o
getconf used,takeyourtimet ounderstandi t .Rememberi nSel l
ing,youare
onlymaki ngmoneywhent hepr i
ceisFal l
ing.SoLet ssayIwantt oSell
Currencypai rTTT/UUUandt hepr i
ceiscur rent l
yat$80.Andy ouwantaTP
of50pi ps.Rememberher ey ouar esel
ling,soy ourTPi salwaysbel ow,so
 Fundament
alsoff
orex

y
ousetI
tat$30.(whi
chi
s50pi
psbel
owt
hei
nit
ial
pri
ceof$80)

Nowl et
sgett oSt op-
loss,WhileSell
ing,youdon'twantt hepr icetorise
(t
hatwouldbegoi ngagainstyou).SoforSelli
ng,y ousety ourSt op-
loss
abovetheprice.Incaseifitt
ri
est ori
se,youaret ell
ingyourBr ookertocut
youoffthemar ket.Soassumi ngIdon'twantt olosemor et han5pi ps.I
wouldnowsetMySt oploss5pi psabovet heini
tialpri
ceof$80Hencemy
Stop-
losswoul dnowbeat$85.I fyounoticethisisexactlytheopposi t
eof
whatwedi dwhi l
eBuy ingWhileBuy i
ng,OurSLwasbel owt hepr ice,
Now
i
t'
sabov ethepr i
ceLet sseeanotherexampl e.

Let
ssayIwantt
oSel
lCur
rencyGGG/
HHH

andt
hepr
icei
sCur
rent
lyat$100.

AndIwantaTPof60pi
psandIdon'
twantt
olosemor
ethan10pi
ps.

MyTPwouldnowbeat$40.(belowthecur
rentpri
cebecauseI'
m sell
ing)
Whil
emyStop-
losswoul
dbeat$110( abov
ethemar ketpr
ice,becauseI
don'
twantt
obeinthemarket
,ifthePai
rwantstori
se)Let'
sseer eal
exampl
esnow

Let'
ssayIwantt
oSellEURJPY(EUROVsJapaneseYen)atthecurr
entBi
d
pri
ceof117.
93becauseIknowitwoul
dfall
soonfr
om myAnal ysi
s.AndI
wantaTPof53pipsandIdon'twantt
olosemorethan5pips.Whatwoul
d
bemyTPandSL?

MyTPwoul dbeat117.40(af
tersubtract
ing53pi psfr
om thatcurrentBid
pri
cebecauseIam sell
i
ngwhil
e,MySLwoul dbeat117. 98( af
teradding5
pi
pstot
4
hecurr
entBidpri
ceof117.93)NoticethatIam usingBidprice
hereandnottheAskbecausewear eSell
ing.OurNEXTt opicis

LOTSI
ZE

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

LOTSI ZEistheamount/quant i
tyofaTr adethaty ouBoughtorSol d.I
t'
s
somet i
mescal l
edyourPosi t
ionsize/Tradesi ze.InForexMar ket
,these
Currenci
esarenotBoughtandSol dinsingles.Theyar eboughtandSol di
n
PackscalledLotsi
zes.Thatiswhatmakest hegainappr eci
abl
e,ifnotyour
prof
itinForexwouldhav ebeen$0. 0001orsomet hingli
kethat.But
becauseyoubuyt hi
sCur rencyinBulk/PacksknownasLot si
ze,That'
s
whyt hegainisappreci
able.Letsseethet ypes.

THEREAREBASI
CALLY3TYPESOFLOTSI
ZES

STANDARDLOT

MI
NILOT

MI
CROLOT

STANDARDLOT

CONTAI
NS100,
000UNI
TSANDI
SREPRESENTEDONMT4BY1.
0

MINILOT CONTAI
NS10,
000UNI
TSANDI
SREPRESENTEDONMT4BY
0.
1

MICROLOTCONTAI
NS1,
000UNI
TSANDI
SREPRESENTEDONMT4BY
0.
01

Iwoul
dshowy ouwheret
oinputthem onMT4soon,Let
'sj
ustexpl
ainwhat
eachoft
hem means.Si
tti
ghtandenjoyther
ide.

AsUsual
Iwoul
dal
waysuset
hingsar
oundy
ou,
toexpl
aincompl
exmat
ter
s
ofFor
extoy
ousoast
omakeitsimpl
er.

Let
'sassumeWehav
e3Tr
ader
sA,BandCt
hatdeal
sonsneaker
sWear
s
 Fundament
alsoff
orex

.Youknowf orthem tomakePr of

it,t
heycan'
tjustbuysi
nglepai
rsof
sneakersfrom theWholesal
er.TheyneedtoBuythesesneakersin
Bundlesfortheprof
itmadetobeappr eci
abl
e.ThoseBundl
esareWhatwe
CallLOTSIZES

NowAssumi ngTraderAbuy s100,

000bundl esofsneakers AndTr aderB
buys10, 000bundlesofsneakersWhi l
eTr aderCbuysjustonly1,000
bundl esofsneakers.y ouwouldagreewithmet hatTraderAwoul dmake
mor emoneyt hanTr aderB,whowi l
linturnmakemor emoneyt hanTrader
C.Andwhatdet er
mi nedhowmanyBundl esofsneakerst heyboughtisthe
CapitaltheyI
nvestedint heBusi
ness.ThatisaTy pi
calil
l
ustrat
ionof
Lotsizes

I
nt heI
ll
ustrati
onaboveTr aderAboughtStandardLotsizeWhil
eTraderB
boughtMini Lot
sizeWhil
eTr aderCboughtMicroLotsizeLet
'snowseethe
PipEqui
valentofeachlotsize

ForSTANDARDLOTSI
ZE1PI
P=$10

MI
NILOTSI
ZE1PI
P=$1

MI
CROLOTSI
ZE1PI
P=$0.
1

SoI f3Tr aderst r

adesaCur rencypair.And3oft hem made50pi ps.Let 's
sayTr aderAt r
aded1St andardLotsizseoft hepairWhileTraderB, t
raded
1Mi niLot sizeofthepairAndt heLastTr aderC,traded1Mi croLot sizeof
thepai r
.Tr aderAwoul dmake50pi psx$10=$500Tr aderBwoul dmake
50pi psx$1=$50Whi l
eTr aderCwoul dmake50pi psx$0.1=$5Soev en
thought heyst i
llpart
ici
patedinthesamet radeandthemar ketmov edin
theirdir
ect i
onf orthesameamountofpi ps.Ther
epr ofi
tsweredifferent
becauset
5
heamountoft hatparti
cularCur r
encytheyboughtwasdi fferentI
beli
ev ethisconcepti snowcl ear
.

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

Toi
ncr
easeorr
educeyourl
otsi
zecl
i
ckonthedecimalasindi
cat
edonthe
i
magebel
owlocat
edatthesamemenuandabitaboveyourTPandSP

NowSti
l
lontheI
ssueofCapi
tal
.Let
'sdi
scussanot
herTopi
cthatmakesus
gai
nsomuchwit
hsuchaLitt
leCapi
tal
.

LEVERAGE

Leverageistheabili
tyt
ousesomet hingsmallt
ocontr
olsomethi
ngbig.I
n
thecaseofFor ex,usi
ngasmallerCapital
Basetocont
rolal
argerl
otsi
ze.
Tounder st
andt hi
sConceptofLeverage,l
et'
stakeabr
iefhi
stor
yofhow
Forexwas

Ini
ti
all
yinForex,
notanyonethatisal
lowedtoTr adeForex.Justaswesee
curr
entl
yinNewYor kStockexchange.Forexareonlytradedbypeoplewe
cal
ltheKabalsMENOFWALLSTREETUsual l
yInvestmentBanks,Rich
Men, Monarchs,
BigBusinessMen,Companyowner setcNowl etmetake
NewYor kStockexchangeforexampleForyoutot r
adei nTheFloorofNew
YorkStockexchangeyoushouldbemaki ngaSpecificamountofMi l
li
ons
 Fundament
alsoff
orex

ofdoll
arsperanum y oushoul
dn'tbeowinganyMortgageYourTax
document sareuptodateWi t
hsomanyusel esscr
it
eriasj
usttol
imiti
tto
theEli
tes.SoalsoitwasinForexthenCommonMenl ikey
ouandMe
wouldn'thavebenefi
tedfr
om thi
sbusiness.

Nowdur ingtheinv
entoft heInternet,Thewor ldbecameaGl obal Vi
llage,i
n
thatyoucanBuyandSel lfrom any wherearoundt heWor l
d.Thisledt ot he
Proli
ferationofForexBrokers.NowFor exBrokershadsomanyCust omer s
aroundt heWor l
dthatTheycoul dsol vethatSingl
epr oblem ofCapi t
al For
Us.Nowt hoseWorldBankset crequiresacertainamountofMoneyf or
someonet obeabl
et oTradewi th.ButBecauseBr oker shav ePulledmany
amountofmoneyt oget
her ,Wear enowal l
owedt oTr adethr oughour
Brokers.

Soi nsteadofani ndi

v i
dual Tradingwi th1mi l
li
onDol l
ars,y oucanactual
l
y
placeATr adewi thasLi t
tleas$10becauseudi dntgoalone.y ouwentto
themar ketthr
oughy ourBr oker, whoisrecognizedbyt heWor ldBankasa
formidabl eforce.Becausei thasal argecapitalBase.
Ibelievethissi
mple
i
llustrati
onisunder stood.Nowy ourBr okeral
lowsy outoTr adebecausehe
offersy ouwhatt heycal lLev erageintheFxMar ketTheprincipleof
Lev er
agei sv i
rtuall
ymul t
iply i
ngt hatyourLit
tl
ecapi t
alsot hatyoucanUse
i
tandBuysomet hingwor thaBi ggerValue.

I
norderwordsl
ever
agegiv
ewecal
ledlowcl
ass,byt
hebiggunsofFX,the
pr
evi
ledget
opokethem wi
thal
ongcheapsti
ckandrubi
tonthei
rfaces

Exampl
e

Whenwewi
ll
befil
li
ngoutourf
ormsforopeni
ngofTr
adi
ngaccountwhi
ch
wewoul
dbeseei
ngsoonyouwouldseethi
ngsli
ke

1:
1001:
500,
1:1000,
Etcpl
easesel
ectal
ever
ager
elat
edt
oyourdeposi
t

Knowi
ngsomeofuswoul
dpr
eferv
ideoexpl
anat
ion,
remembert
hel
i
nki
s
CAPsensi
ti
ve
 Fundament
alsoff
orex

i
Phone
Bi
t.
ly
/howt
ouseMTi
phone

Andr
oid
Bi
t.
ly
/howt
ouseMTandr
iod

RI
SKMANAGEMENT

Ont hetopicofRi skManagementI tscomposedofal l

thesetopicswehav e
beent eachingint hi
sst
age2.Topi csli
keLotsi ze,
Stoploss,Tradingpl an,
Greedel i
minationetcIt
'sallaspectrum.BecauseIt ol
dy ouguyst hat1.0
Lotsizegives$10perpi pand0. 1Lotsizegi v
es$1perpi p,youwi l
lsee
someonet ryi
ngt ogoanduse1. 00Lot sizeona$100or$200account .
Becausehewant stogetri
chov er
night.Thati swhatweCal lOvert radi
ngin
Forex.Alway ssticktoaLotsiz
ecommi serat
et oyouraccount.Nev erget
greedy.Themar ketwouldalwaysbet her e.

Myopi ni
onont hescopeoff orexisHOPI NGFORTHEBESTBUT
EXPECTINGTHEWORSTbecauset hingssomet i
mes, don'tgoaspl an.With
ri
skmanagementy oumi tigatelost
.itmandat oryy outaket histopicseri
ous
nottoreceiveanot if
icati
onf rom yourbr okerthatyou'veblowny our
accountduet oov ertrading.Evenifit'
s0. 01,youar estarti
ngwi th,It
'sst
il
l
OK.Ifyoumake$5t o$20dai l
yandy oucoul dn'treach$100dai ly,
It'
ssti
ll
fai
r.$20dailyis$100i naweek.I t'
snotbadf orast art
er!Ast imegoeson
youprogresst o$70t o$80t o$100dai lyetcAsy ougoal ongi nthecourse
ofyourTrainingyouwi l
lbeseei nghowweappl yallthesepr acti
call
y.

Anot
heraspectofri
skassoci
atedwi
thFor
excanbemeasur
edf
rom t
wo
angl
esexpl
ainedbel
ow

My
fxbook.
com posi
ti
onsi
zecal
cul
atorOr

Yourl
otsi
zexnumberofpi
psforStopl
oss=theanswerwoul
dtel
lyou
howmuchy ouwoul
dlossi
fthet
radehi
tsSL

B-Yourl
otsi
zexnumberofpipsforTakepr
ofi
ts=theanswerwoul
dtel
l
youhowmuchyouwouldgainift
het r
adehi
tsTP.
 Fundament
alsoff
orex

Lotsi
zecal
cul
ati
on=0.
01%×y
ourequi
ty.

e.
g0.
01÷100×$100=0.
01

Ther
efor
e,l
otsi
zeon$100accounti
s0.
01Lot
.(Tonotbl
owy
ouraccount
)

For0.
01l
ot,
100pi
psi
s$10.50pi
psi
s$5.20pi
psi
s$2>t
hisi
sforami
cro
l
ot(0.
01)

For0.1l
ot,100pi
psi
s$100.50pi
psi
s$50.20pi
psi
s$20.>t
hisi
sformi
ni
l
otsize(
0.1)

For1lot,100pi
psis$1000.50pi
psi
s$500.20pi
psi
s$200.>t
hisi
sfora
standar
dl otsi
zes

Note:ona$100accounti
t'
sadvisablenottoevendareusea1.0or0.1lot
si
zebecausethat
'st
hebeginni
ngoft heendfortheaccountbecauset
he
scoutis0.
01i
n10pl acesona1: 100lev
erage

Onafi
nalnot
e,i
fyouarenotapati
entpersonfor
exi
snotf ory
ouas
somet
imestogetpr
ofi
tyoumighthol
dapar ti
cul
art
radeforal
mostaday
ormor
e,whil
esomedayy ouhi
tTPinlessthananhour.

PI
PSCALCULATI
ON

I
fyouhaveGBPUSDat1.2335,youcountonl
yt hefourdigi
taft
erthe
deci
malpoi
nt.Fori
nst
anceify
ouronabuyt rade,anditmov esfr
om 1.
2334
to1.
2335,t
hatmeanyoualr
eadyhave1pip.Soi fi
tmov esfr
om

1.
2335t
o1.
2365,
thati
t2365-
2334=30pi
ps

Ifyou’r
eonabuytr
adeanditmovesfrom 1.2335t
o1.
2305,
itmeansy
ou
2305-2335=-
30.I
tmeansyoujustl
ost30pips

ever
ystoplossgivenInat r
adeisal
way s100pi
ps.Soitmeani fyouwanlt
totr
adewi t
h0.01lotsize,
you’dber
isking$10ofyouraccountonat r
ade.
Soifyouenterli
ke8trades,i
tmeansy ou’
reri
ski
ng$80t hatday.You’
l
llose
$80ifal
lthetradeshi
tsstoploss(whichhappensonlyonrareoccasi
ons).
 Fundament
alsoff
orex

Apr
act
ical
exampl
eofapr
ofi
tfr
om aBUY

I
fGBPUSD1.2335to1.2365,
thati
t1.
2365-2334=30pi
psmul
ti
plebyy
our
l
otsi
defort
hetrade(
0.9)=$27profi
t

Forsomeoner unni
nga$200account ,i
t’
sadvi
sablenottori
skmore$100
ontrades.That’l
lbe0.01loton10t radesor0.
02on5t r
adesor0.
03on3
tr
ades,andt hen0.01trade.I
fy oushouldrunyourt
radeswit
hanyofthese,
i
tmeansy ou’l
lberiski
ngnothingmor ethan$100ont r
ades

Ladiesandgent
lemen, Thisbri
ngustot heendofthisStage1and2.
HoweverIt
'si
mportanttohav eatradi
ngplan,asplanareessent
ial
foral
l
foral
ll
if
eendeavours.Irespecti
veoftheForextr
aderyouplantobeyou
needaguidebel
owi sanhy potheti
cal
tradi
ngplan

MYTRADI
NGPLAN

Iwi
l
lear
n100%ofmyt
radi
ngequi
tyi
n1mont
h.

Iwi
l
lsetaneart
erm goal
andmakeatl
east25%ofmyt
radi
ngCapi
tal
in
1weekandIwil
lpl
otthi
star
getdai
l
y.

I
fIam behi
ndmytr
adi
ngplanf
ort
hequar
ter
;Iwoul
dtakeabr
iefbr
eak
t
ore-ev
aluat
emytr
adi
ngsyst
em.

Iwil
lnott
rademor
ethan3mar
ket
sperday(
iemor
ethan3cur
renci
es
pai
rs)

I
fIhavemorethan3loosi
ngtradesi
nar
ow,
Iwi
l
ltakeat
radi
ngbr
eak
of2daystor
eaccesst
heMar ket
.

Any
timeItakeabreak,
Iwouldcloseloosi
ngt
radessetpr
otect
ivest
ops
onaWinningtr
adesandTPatr easonabl
etar
get
s;shoul
dIbeunavail
abl
e
andMarketget
stomyTar getl
evel.

Iwoul
dtake70%outofmyaccountandi
nvesti
nnonFxr
elat
ed
 Fundament
alsoff
orex

busi
ness(
li
keReal
est
ate)andr
einv
est30%.

Iwoul
drecor
dmydai
l
ytr
adeact
ivi
ti
esi
nmyt
radi
ngl
ogandr
evi
ewt
hem
weekl
y.

Iwouldknowmyrati
osandr
esul
tsandwi
l
lwor
ktoi
mpr
oveont
hem by
atl
east5%perweek.

Iwoul
dinvest4hour
saweekt
oupdat
emyKnowl
edgeonFor
exand
l
earnnewTradingSt
rat
egi
es.

I
nev
ery
thi
ngy
oudoi
nli
fe,
youneedaPl
an.

Ther
eisasayi
ngt
hatwhenonefail
stopl
an,
hei
splanni
ngtofai
l.Thi
sis
whyyouneedaWri
tt
enTradi
ngplanbef
orey
ouki
ckoffyourFor
exjourney
.

TakenoteofthatwordWRI TTENYouneedt owr i

teitdown!Nextisthat
youneedtofoll
owthisplanjudi
ciousl
y.Nevertr
ytoadjustittosui
tyour
presentmar
ketcondi
tionsorbiases.MostTradersneglectthi
sVit
alaspect
oftradi
ng.Al
sowhileformingyourplan,i
tneedstobe:

SMART,
anacr
ony
mfor
:

SPECI
FIC

MEASURABLE

ACHI
EVABLE

REALI
STI
C

TI
MEBOUND

Youneedtofact
orall
theabov
eintoconsi
der
ati
on.Theaboveisa
summari
z6edver
sionofmyTradi
ngPlan.I
tshowsthesal
ientpoi
ntsi
nthe
Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

pl
an.

Youcanpr i
ntitoutandpast edi tonthewal lnearmyTr adi
ngdesk,
becausethemor eyoul ookati t
,y ouwillbemor eobl
igedt ofol
lowtheplan.
Mindyouit'
sjustagui det ocreateyours.Whi l
eformi
ngy ourplans,
especi
all
yyourtargets,makei treali
sti
cdependi ngony ourcapacit
y.
BecauseIsetmyt argetat$100perdayoranot herpersonsetshisat$500
perday.Thatshouldnoti nfl
uencey ours.Alwaysmakei treal
ist
ic.I
ffora
star
t,youmake$20perday ,beli
eveme, it'
sagoodst art.

Foral i
ttl
ecapi t
alof$100t o$200, youcansetupy ourtargetat$20t o$40
perday .Inaweek, that'
s$100t o$200.Wi ththisyoucansuppor tyoursel
f
andy ourf amil
y.Whet heryouareinschool ,doingadayj obori ntobusiness.
It
sanaddi ti
onalsourceofincomet oev eryone.Themai nai m ofFor exin
thi
sear lystageistosuppor tyournormal expenses.JustlikeI'
v eexplained
here.Somet hi
ngtomakey ounotdependonsal ar
yalone.Ifyoucanhi t
yourtargetof$100i naweek.I namont ht hat'
s$400.Whi chisal mostand
i
t'smor ethansomepeopl e'ssalar
yinamont h.Wi t
ht hi
sy oucansuppor t
yourselfandy ourfami l
y.Whetheryouar einschool,doingadayj obori nto
business.I t
sanaddi t
ionalsourceofincomet oeveryone.Maybei fyouar e
few$behi ndyourtargetandy ouanalysedonl y2cur r
encypai rslastweek.
Youmi ghtaddonecur r
encypairthi
sweekt omakei t3andmaxi misey our
profi
ts.

Nexti sthati
t'
simpor t
anttoalwaysr eviewy ourpl an.Rev iewitweekl yi.
e,
attheendoft heTr adi
ngweek.Anot heri mpor tantaspectoft hePl anis
oncey ouhav ereachedyourtargetfortheday .Alway scloseandgoand
restforthatday.Thecashf l
owwoul dst i
llcontinuet omor row.For ex
mar kethasbeenar oundfordecades, soi twon' tclosethatday .Soal way s
takey ourbowof f
,wheny oureachy ourt arget.Maybe, yousetat ar getof
$100perday(l et'sassumey ouhav eacapi talof$500) .Theny ouhav e
alr
eadymade$99. 2.Someofy ourFxcol leaguesj ustcalledy out hat
Donal dTrumpjustpulledtheplugonI randeal thatyoushoul dBuyBr entOil,
andy oui mmediatelyr
ushbacki nt
ot hemar ket.So, youmustel i
minat ethat
 Fundament
alsoff
orex

factorofGreedwhi l
eformulati
ngort r
y i
ngtosti
ckt oyourTradi
ngplan,By
takingthemarket,sl
owandst eady.Youwoul dalwaysbecomf or
tabl
ewi t
h
forexthisway.SoIbel i
eveeveryonewoul dusethisandformulat
etheir
ownTr adingPlan.Right?Wellthechoiceisyours.

COMMONMI
STAKESMADEBYTRADERS

Anotheri
mpor tantpri
ncipl
ei nlif
e,ist
ol earnfrom ot
herpeoplesmistakes.
Neverwaittolearnfrom yourownmi stakes..Thosethathavegonethis
par
taheadofy ouwillt
ellyoyt hi
sarewhatpeopl ehav edonewhichdidn't
yi
eldposit
iveresult
sandhencey oushouldmodi fyyourownact i
ons.SoI
wil
lbehighli
ghtingsomeoft hesemistakessot hatyouallcanbewar yofit
.
AnothermistakeisPapert radingfortoolong.

PaperTr adingissameasDemoTr ading..

.Eventhoughi t'
sgoodtodemo
trade,butdon' tdwelli
nt hef antasywor l
dfortoolong.TAKESOME
ACTI ON!Thef irstmist
akei sNothav i
ngaTr adingPlan...WhichIhave
alreadyhighli
ght edabove, theimportanceofPl anni
ngy ourTradesfrom
dailytoweekl ytoMont hly.Getintother ealmarket,t
radeandAnal yzewit
h
youremot ionsont hel
ine...Thatmakesy oustronger
.Dwel li
nginthe
fantasywor ldwi l
lmakey ouf eelrel
axedandy ouwon'tlearnbecauseyou
wi l
lalwayssayt oy our
self" i
t'
spapermoney "

Nextint hel
isti
snotUsi ngaSt oploss. .Alwaysr emembert oputi ti
nall
yourtrades.
Technologyhasmadei tt heretopr otectyouraccounts.No
mat t
erhowgood, youmi ghthav eanal ysedthemar ket,
Youmaynotknow
whenamaj ornewswoul dber eleasedandi tcouldchanget hedi r
ecti
onof
themar ket.(t
hat'
swhyi t'
salway sgoodt olookatt heEconomi ccalendar
beforethebeginni
ngofev eryweek) .Butbyset t
ingyourStop-loss,no
mat t
ert
7
henewswhet herit
'sagainsty ourdi r
ection,youwil
l beprotect
ed.

Nextmi
stakeandmostr
ampanti
sOpeni
ngsomanyTr
ades.Youwi
l
lsee

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

someoneopen:

GBPUSD

EURUSD

USDJPY

USDCHF

AUDUSD

Onlyoneper son.Phew! !
!Tell
me, howcany oumoni t
orall
thesetrades?It
al
l bal
lsdownt oGr eed.Youwantt oGrabev erysi
nglepipinthemar ket.
Sinceits$5.3Tril
li
ondol l
arsl
iqui
dcap, y
ouwantt ogohomewi t
hatl east
halfofthemar ketvolume.Asi ft
herewon'tbeanot hermarketday.Nev er
opensomanyt r
ades, t
hatyoucan'tmonitor.I
ttendstodistr
actyouand
di
v i
dey ourconcentrati
on.Ial
way sli
mitmy selft
o3cur r
encypairspert i
me.

Ifyouseemeopenanot herCurrencypai rtomoni t

or,t
hatmeansone
enteredmyt argetpr of
itquiteear l
yint hedaysoIhadt oopenanot her
trade.Thelastbutnott heleastIsAnt icipati
nghowt heNewswoul daf f
ect
themar ket
.I t
'sbettert
oopenmul tipl
eposi tionsononet r
ade( i
eonone
currencypair
)andmoni toritj
udi ci
ously ,t
hant oopenmul t
iplecurr
ency
pairsanddistractyourat t
enti
onIwoul dt each, y
oualllaterhowt oenterthe
mar ketmulti
pletimesonapar t
icularcur r
encypai r
.Wecal l
it"Ri
dingthe
Trend"Andsower i
detot het heendoft hef undament alsofForex

Ialwaystell
peopl esomet hing,Investi
nwhatwilli
mprov
ey ourli
fe.And
mygoal asani ndividual
isthatensur epeopl
earefi
nanci
all
yfree,
thatwas
whyIshar ethi
si nformati
onwher eNormall
yfor3daysSeminarinsome
partsofthewor l
dpeopl eChar geasmuchas$400.Mostoft hem won't
evengointodet ail
sofhal fofwhaty ougotinStage1and2f orfr
ee.

IknowIcan'
thelpever
yonenomatt
erhowhardItr
yThat'
swhyIcameup
withapr
ogram whichMUSTbebenefi
cial
tot
hosethati
mplement
.

Iandsomeexper
tswor
khandi
nhandt
opr
ovi
dedai
l
ycur
rencypai
rtr
adi
ng
 Fundament
alsoff
orex

signalwit
ha90%accuracywhichcanhel
pyousecur
e$50t o$250aweek
yeah!Youheardme.Soundtoogoodtobetr
ueri
ght.Belowar
esomeof
thescreenshotoft
heout
comeofourdail
ytr
adesignals.
 Fundament
alsoff
orex

Toproveit
'saut
hent
ici
tyy
ouwi
l
lbeget
ti
ngfree2weekssi
gnal
sal
lfor
FREE!YESFREEOFALLCHARGESbecauseourgoal
ist
oensur
epeopl
e
aref
inanci
all
yfr
ee.

These24/5Signalsof90%Pr
ofi
tabl
etr
adeswil
lbedroppedonoursignal
groupandasseenabov esot
hatwecantakeonourLiveaccount
sand
growtheaccounts.

Ani nteresti
ngconceptinForexist hatyourgaindoesn'tstopmef r
om
gaining;Ifallofusher
eent erat radeonsamel otandityielded$105...We
all
woul dmake$105.Ear li
erwel earntthatThe$6.6Tr i
ll
i
ondol lar
straded
perdayi senoughtogor ound;Ialonecan'tfini
shit.
.hoardingKnowl edge
won' tmakeonepr ogr
ess,youprogr essfasterwheny oushar ethi
s
knowl edge.

I
fint
erest
edcli
ckontheli
nkbel
owandf
oll
owpr
omptt
ost
artonour
r
ewardingFor
exadvent
ure.

bi
t.
ly/
DWGFX
(
Thesi
teisCAPsensi
ti
ve)