Fundament

alsoff
orex
 Fundament
alsoff
orex

COURSEOUTLI
NE(
PART1)

I
NTRODUCTI
ON

WHATI
SFOREX?

WHATI
STRADEDONFOREX?

WHOI
SAFOREXBROOKER?

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

COMMONMI
STAKESBYTRADERS

TRADI
NGPLAN
 Fundament
alsoff
orex

I
NTRODUCTI
ONANDWHATI
SFOREX

Forexi sjustaShor tfor

mf orFOREIGNEXCHANGE.I t'
saglobal
decent rali
sedmar ketwherethewor l
d'
scurrencychangehandsv i
a
exchanger at
ewhi chistherelati
vepri
ceoftwocur r
enciesfr
om two
dif
fer entcountr
ies.Exchanger at
echangebyt hesecondmaki ngthe
Mar kett oconst
ant l
ybeinf l
ux.Theexchanger at
eofacur r
encyVsot her
currencyi sarefl
ectionoftheconditi
onofthecountryeconomycompar ed
toot herseconomi es.

Mostoft hecur
rencyt
ransl
ati
onsar
eexchangedf orspecul
ati
vereasons
(yeaht hat
sri
ghtyoushoul
dhavepai
dmor eattenti
ontothemot i
vef or
holdingmoneyduri
ngyoureconomi
cclass ) .That'swhyForextraders
aretaggedcurr
encyspecul
ator
swhoarebuyingtosel l
atahigherpri
ceor
sell
ingtobuyatalowerpri
ce.

Forexisoneoft heLar gestmar ketint hewor l

dWi t haTot alDail
yLi qui dity
of$6. 6Tr i
lli
ondol l
arsWhi letheCr yptomarket,f
ort hoseofuswhoknow
aboutBi tcoinshasaTot alMar ketcapofj ust$262Bi l
li
onasoft oday ,t his
i
snotev ent heDai lyVolume.Al ltheseSt ati
sti
csar eonl i
ne,withabr ief
researchy oucanconf i
rmt hem f ory ourselv
es.TheNewYor kStock
Exchange( NYSE)whi chi stheSecondLar gestMar ketishav i
ngaDai l
y
TradingVol umeof$169Bi lli
onDol l
arsaswecanseei ntheStatist
ics
abov eWhi letheCr ypt
omar ket,forthoseofuswhoknowaboutBi t
coi ns
hasaTot alMar ketcapofj ust$262Bi l
li
onasoft oday ,thisisnotev ent he
DailyVolume.Al ltheseSt atist
icsar eonl i
ne,Soy oucandowel lt
oconf i
r m
them fory ourselvesThati stoshowt hemassi veLiquidity.
..
.Whichi son
theFor exMar ket .Onl i
kecr ypto, Forexopensf orjust24/ 5meani ng
24hour saday ,5day saweek, noweekendsandi t
'simpor tanttonotet hat
tradi
ngdoesn' tcloselikeeachbusi nessday sbutrat hermov etoadi fferent
fi
nancial centerar oundt hewor ldwhi chweshal ldiscussi ndetai
lsmov ing
forward.
 Fundament
alsoff
orex

ThatishowlargetheFor
exmarketisSowehaveseenaBri
efI
ntroduct
ion
oftheForexmarket,
Wewouldsti
ll
seemore,butf
ornowlet
'sf
ir
eonl i
kea
mov i
ngtrai
ntothenextt
opi
c.

WHATI
STRADEDONFOREX

Someonewoul dask,WhatisTradedont heForexmar ket

.Thisisnotthe
for
m ofmar ketwherebuyy ourcl
othesorshoes.Nodoubtbuy ingand
sel
li
ngoccur sbutnotthatofanormal Localmarketsinanypar toft
he
worl
dy ouare.Sowhati sonlybeentradedintheForexmar ketare
cur
rencies,
foreigncurr
enci
es.Nottowor rywithi
nthispagesy ouwill
getto
l
earnhowt ot r
adethem

WHOI
SAFOREXBROKER

ForexBr ookersareFi
rms,l
ikenedt omi ddl
emen, t
hatgivesyouaccessto
theFOREXMARKET.Theypr ovidey ouasaTr aderaccesstotheFinanci
al
mar ket.Byprovidi
ngaTradingaccountf oryou.TheygivesTrader
swhat
wecal lLeverage.(
wewouldseet hatsoon)Theyal soprovi
deSupport
Functionstot hetr
ader
sTher ear ev ar
iousBrokersintheForexMarketWe
haveXM, Fxtm,Fxcm,Fbs,LiteForex,BDSWI SSEtc

Wear
esti
l
lgoi
ngtotaketi
metotal
kaboutBr
okersindetai
l
sButwehav
e
t
obeawar
eofthei
rFunct
ionsandwhatt
heyof
fertoTrader
s.

TRADI
NGTI
MESANDTRADI
NGSESSI
ONS

Wear eenteri
ngintothemostimportantpar
tofthisForexTraining.
..I
fyou
weredistr
actedbefore,l
et'
sfocusbecauseyourproperunderstandingof
theForexmar ketwouldbedetermi
nedifyouactuall
yknowt heFor ex
cycl
e.ThereareVariousTradi
ngTimesandTr adi
ngSessionsi nForexThey
i
nclude

SYDNEYSESSI
ON

TOKYOSESSI
ON

LONDONSESSI
ON
 Fundament
alsoff
orex

NEW YORKSESSI
ON

TheSessi onsnamesar ederivedfrom themaj orcit

iesinwhi chmostoft he
Transacti
onsar edoneForex ample,SydneySessi onisr epresent
sAust r
ali
a
andothercount ri
esaroundt hatTimezoneToky osession,somet i
mes
call
edASI ANSessi onrepresentsJapanandsomeoft heAsi ancountr
ies.
Let'
snot et heseTimesdowni nourExer ci
seasy ouall wouldbeneeding
them fory ourTrading.AlsoNot ethattheseTi mesar elist
edi nGMT
GreenwichMer idi
anTi meSoy oushoulddot heappr opr i
ateCalcul
ati
on
dependingony ourcount ri
esTi mezone,soast oknowwhi chsessi
on,you
arecurrent l
yonAl lSessionslastsfor9hour s.Sohav ingknownt heir
OpeningTi mes, Togett heirappropri
ateCl osingTi mes.JustAdd9hour sto
theOpeni ngTi met ogetwhent heywoul dCloseExampl e

Sy
dneySessi
ont
hatOpensby9PM GMT

WOULDcl
oseby6AM GMT

al
soTOKYOSessi
ont
hatOpenedby11PM GMT

WOULDcl
oseby8AM GMT

NEWYORKSESSI
ONt
hatOpenedby1PM GMTWOULDCLOSEBY10PM
GMTANDSOONFOROTHERS. .
 Fundament
alsoff
orex

Phot
ocr
edi
t:i
g.com

JustAdd9hour stot hei

rOpeningTi mesExampl eSydneySessi onthat
Opensby9PM GMTWOULDcl oseby6AM GMTal soTOKYOSessi onthat
Openedby11PM GMTWOULDcl oseby8AM GMTNEWYORKSESSI ON
thatOpenedby1PM GMTWOULDCLOSEBY10PM GMTANDSOONFOR
OTHERS. .justAdd9hour st otheirOpeningTi mesNowt herei
san
i
mpor tantthingt oNot ehere..
.Thi si
swhatmanyFor exTr adersdon't
actual
lyunder standbecausenobodyt aughtthem.Itisalwaysgoodt o
TradetheMar ketwhen2Mar ketsareopenatt hesamet ime.IeWhen2of
thesessionsar eopenPl easeTakenot eofthisImportantpointThisis
Because,Vol at
il
ityisalwaysmor ewhen2ormor eSessionsareOpen.And
i
nFor exMar ket
,Mor eVolati
li
tymeansMor emoney .AsaFor exTrader
,
youwoul dn'twantt ot r
adeaQui etmarket,becausetherewon'tbemuch
Fluct
uationsandi t
'sthosemov ementst hatmakemoneyf orus.

youwoul dcomet ounder standthesesoonandknowwhatImeanExampl e

by12AM GMTSy dneySessi onandToky oSessionwoul dbeopent oget
her
andi twouldhavemor eVol ati
li
tythansomeonet hati
sTr adingat9PM
GMTbecauset hemar ketwoul dbeQui et
.Anot herExampl ei sby8AM GMT
LondonSessi onandFr ankfurtSessionwoul dbeopen, i
nfactev enTokyo
woul dbewi t
hthem bri
efly,soy ouwoul dnoticethatVolatil
i
tywoul d
i
ncr easeduri
ngsucht i
mes.SoasaFor exTrader, Alwayst i
mey our
Tradingtofalli
nperi
odswher e2ormor eMar ketsareopenatt hesame
ti
me.Bydoi ngthatyouwoul dal wayshav eanedgei nthemar ket.We
woul dbelearni
ngmor eimpor tantthings,let
'sjustfol
lowt heTr adi
ng
closely.

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 yfewpeopl et
appedi nt
o.
 Fundament
alsoff
orex

TERMI
NOLOGI
ESUSEDI
NFOREX

Forev eryNewf iel

dy ouembar kuponi nLi f
e,youwoul dencount erNew
Terminologi
esandt ermswhi chispeculiartosuchfi
eld.Bei tLaw,
Medicine,Journali
sm , Engi
neeri
nget c.Andy ouwouldhav etogety our
sel
f
acquaintedwiththeirTer mi
nologiessoast obeabletocommuni cate
properl
ySoal soisFor ex,foryout obeabl etoLear
nandTr ade,y ou
shouldgettoknowsomeoft hetermst hatisusedi
nFOREXTr ading.So
thatyoucanunder standt heNews,Fl owwi t
hyourFel
lowFor ext raders
andunder st
andAnal y
st s

TOGOLONG.
..
.meanst
oBUY

TOGOSHORT.
..
..
.meanst
oSELL

IfaTradertell
syouthathewentLongonaCurrencypai
r.Hemeantt hat,
HeBoughtt hepair
.Whileift
heytel
lyout
hatt
heyShortaCurrencypair,
it
meanst hattheySoldThepairSoonyouwoul
dgettoseethatAllwhatwe
aredoinginForexisBuyingandSell
i
ng

Thenextt
ermswewoul
dseear
e

BULLI
SHMARKET:
Amar
kett
hati
sgoi
ngUpwar
ds

BEARI
SHMARKET:
AMar
kett
hati
sgoi
ngdownwar
ds.
 Fundament
alsoff
orex

Whensomeonet el
lsy outhatacurr
encypairoracommodi t
yisBull
ishIt'
s
tel
l
ingyouthatitsgoi ngUp,Whil
eOnet hati
sBeari
shisgoingdownLet '
s
benoti
ngalltheset ermsdowni nourExerci
sebooksorJotter
s,Youall
wouldbeneedingt hem asy ouweprogresswit
htheTrai
ningBULLS: The
Buyer
sarereferredt oasBulls

BEARS:
TheSel
l
ersar
eref
err
edt
oasBear
s

phot
ocr
edi
t:dai
l
yfx.
com

RANGING:AMar keti
ssai
dtobeRangi
ng,
ifi
tdoesnothav
eanypar
ti
cul
ar
di
rect
ion.I
t'
snei
thermovi
ngUpwar
dsnotDownwards

TRENDI NG:AMar ketthati

shasadirecti
on.It'
seit
hermov i
ngUpwar dsor
downwardsSoy oucanhearpeoplesayamar keti
sTrendingupwardsor
themarketi
sTrendingdownwardsSoy oumayhearpeopl etel
lyouthatthe
Marketi
sjustRanging.Theyar
eindi
rectlytel
li
ngyouthatthethemar ket
hasnotfoundanydirecti
onyet
.Thenextt erminol
ogythatwewouldbe
l
ookingatis

HAWKI SH:Thistermismostl
yusedwhenr ef
err
ingtot
heCent r
alBank
Governororpersonell
ofaCount
ry.WhentheyareHawkish,
theytendt
obe
l
iber
al oni
nterestrat
eandarewi
ll
ingt
oincreaseit
.Thi
sisgoodnewsf or
i
nvestors

DOVI SH:
Thisi
st heoppositeofHawki
sh.Fi
nanci
alper
sonnelwhoar e
Dovisharev
eryrestr
icti
ve.
..Theydonotwantt
otamperwiththeint
erest
rat
e.Theyevenwantt oreduceit
.Thi
sisbadnewsfori
nvestors.Al
soMost
 Fundament
alsoff
orex

oftheCurrencypair
shavespecificnamesinwhi cht
heyarecalled..
..We
wouldgettoknowt hem soonEgThedol lari
ssomet i
mescalledGr eenback,
ThePoundsi scall
edthecable,TheNewZeal anddoll
arsiscall
edt heKiwi,
TheAustrali
andoll
arsistheAussie,TheCanadianDoll
arsiscalledthe
LoonieOi
l i
srefer
redtoast heBlackGoldEtc

phot
ocr
edi
t:baby
pips.
com

Wewoul dgett oknowt hem aswegoasy ouf l

i
pthrought hepages.I t
'sjust
togetyouacquai ntedwi t
ht hemostpopul aronessot hatWheny oucome
acrosssomet hi
ngsi milar,y ouwouldt agalongeasilyHereisapi eceof
advicefory ouallAswegoon,Wewoul dgettoseemor eTerminologies
andExpl ainthem asweseet hem.Itwillbequiteanintensiv
et r
aini
ngas
ourgoal hereatthel eaguei st orai
sepassi onatepeople(withnobi asest o
race,r
eli
gionorcr eed)thatwi llbeabletost andontheirown, makel ogical
decisi
onsandbe" consistent l
yprofi
table"t
radingforexinthelongrun
henceenj oyingfi
nanci alfreedom.

Wi thinthenextcoupleofpages, wewi l
lbedi spensi
ngv aluabl
e
i
nfor mat i
onon" thehow"t
ot radethewor l
d'slar
gestfinanciali
nstit
uti
on,
theFor eignExchangemar ketpopularl
yknowast heFOREXmar ket
.Forex
doesn' toperat
eont hepri
ncipleofluck.Thereareacoupl eofreasonsf or
fai
lurei nthi
sfinanci
almarket,themajoronebei ngthatpeople'squestfor
 Fundament
alsoff
orex

moneyexceedst
hei
rdesi
ret
obepr
oper
lyeducat
edont
hei
ntr
icaci
esof
t
radi
ng.

Forexistoori
skytowor kbyluck.Luckmayki cki nonceinawhi l
e,but
tr
adingtheforexmar kethasunder l
yi
ngprinciples,whichi
fnotlearntmay
neverresul
tinconsistentprofi
tabi
li
ty.Thi
sknowl edgeandpri
ncipl
ei swhat
wewi l
lsharewithyou.Ev erybodyknowst here'
smoneyi nfor
ext rading
andmostmaket hemi stakeofassumi ngitisexcessmoneyl yi
ngt here
waiti
ngtobet akenbyj ustanybody.

Aft
eral
li
t'
sthissameforei
gnexchangemarkett
hatbi
gbanks,insur
ance
compani
es,i
nvestmentcompani
es..
.makehugeprofi
tsf
rom andpayus
meagrei
nter
estsonourdeposi
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

Thi
sistheframeworkinwhi
chtrader
sstudypri
cemovementsbylooki
ng
athi
stori
calpri
cemovementsanddeter
minethecur
rentt
radi
ngcondit
ions
andpotenti
alpri
cemovements.

I
tinvolv
eslooki
ngatthery
thms,
flowandtr
endsinpr
iceacti
on.I
t'
sa
bel
ieveon"HISTORYTENDSTOREPEATI TSELF"ast
heylookforsi
mil
ar
patt
ernsfr
om thepast.
 Fundament
alsoff
orex

Techni
calanal
ysisi
snotsomuchaboutpr
edi
cti
onasi
tsaboutpr
obabi
l
ity
andisver
ysubjecti
veandi
deadi
ff
ers.

FUNDAMENTALANALYSI
S

Thisinvol
vespouringouteconomicdatareportsandnewsheadl i
nesand
random tweetsbyaf or
merpresi
dentofacount ryaswel lasusi
nglawsof
demandandsuppl y ,
howunempl oymentrateaffectacountri
eseconomy
andmonet arypol
icywhichult
imatel
yaffectthelevelofdemandforit
s
currency.

Fundamentalanal
ysi
siscent
eredmost
lyonmacr
oeconomi
cand
geopol
it
ics.

SENTI
MENTALANALYSI
S

Thi
sisuset ogaugehowothertrader
sfeel
aboutt
heov
eral
lcur
rency
marketaboutapart
icul
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 adi
ngiswheny ouAnalysetheMarketusi
ngI ndi
cators,
Chart
sPat t
erns,Candlesti
cks,Fi
bonacci,
SupportandResistance,Pivot
Poi
nts,Ell
iottwavesetc.Wheny ouuseanyoft heabovet oanaly
zet he
market,I
t'
scal l
edTechnicalAnaly
sis.I
t'st
hemostpopul arForm ofTradi
ng.
Thi
sisbecauseHi ghVolati
l
eNewsi snotrel
easedEvery
daysoy oucan't

MT4/
5INTERFACE

Thenexttopiconourout l
ine,
aftert
his,
isCURRENCYPAI RSWearenow
ent
eri
ngthePr act
icalSect
ionofForexwhereyouall
wouldbeseei
ngwhat
wedoonline.ForthisNextSecti
onwewoul dbeneedingourMT4Appand
i
t'
svit
alyouunderstandhowi tworks.
Todownload
 Fundament
alsoff
orex

I
Phone

bi
t.
ly
/MT4i
phonedownl
oad

Andr
oid

bi
t.
ly
/MT4andr
ioddownl
oad

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

Fi
rstbef
oreweputonourpr
ati
cal
sui
tletknowwhatademoaccount
means

Ademoaccounti sademonst r
ationaccountandi t
'sonl
yfort
hepurpose
ofpract
isi
ng.Theinter
esti
ngthingaboutFor exdemoaccountity
ouget
realt
imetransact
iondataofallcurrencypai
r,meaningtheonl
ydi
fference
betweenyouandar ealaccountisjustthedepositmadetoarealaccount.

Demoaccounti sver
yaddicti
vethat'
swhyi t'
sadvisabletonotdwellther
e
forl
ongasi tsubconsciousl
yslowlydrai
ny ourconfidentl
ev el
toopenar eal
accountandifonecoul dcashoutfrom it(
demoaccount ),wewouldall
haveaprivatejethere .SoEnsur ey ouareseeingt hatpagecontai
ning
theCURRENCYPAI RS ony ourMT4or5bef or
eweact uall
yexpl
ainwhat
i
tmeans.Al lForexbrokermakesroom forademoaccount .

ForMostphonesi topensademoaccountaut omat i

call
y,whyforsomey ou
typeinyourdetai
lsandot herrequi
rement sbeforeitopensbyswappi ngthe
boarderofyourscreenfrom leftt
oright,cl
ickont hemanageaccount ,the
theplus"+"si
gnandf oll
owpr omptt oeitheractivat
ear ealordemo
account.Confusi
ng?Don' tworryIgoy oucov ered.Belowarepict
orial
explai
nati
onofhowt ooperateademoaccountont heMT4/ 5app.
 Fundament
alsoff
orex

NOTE:
thethr
eecir
cle,wit
hfai
ntedgr
ayli
kecir
cumf
erence,
onsomeoft he
i
magesareasaresultofswi
pingmyfi
ngersonmyscreenf
orscr
eenshot
 Fundament
alsoff
orex

Thei
mageony ourri
ghtshowsthefi
rstmenut
hatgr
eetsy ouwhenyousuccessf
ull
yopent
he
MT4/5app.Takenot
eoft hebot
tom i
conaswewoulddiscussonthem l
ater

Toaccessthesecondmenuswi
peyourscr
eenf
rom l
eftboar
dert
ori
ghtandsel
ectmanage
accountt
oaccesthemenubel
ow.

Cli
ckont he"+"si
gntoaddorst
artaMT4demoaccountorthatofyour
brokerwitht
heotheropt
ionofanexi
sti
ngaccountf
rom y
ourbrokeras
seenintheimageabove.

Theimagesbel ow,fr
om theri
ghtgreetyouwi
tht
hatmenuwherey oucl
i
ck
theopti
onof" LOGINTOANEXI STINGACCOUNT"whi
chenabl
ey ousearch
foryoubrokereasil
yrat
herthanscrol
li
ngupanddownendl
essthroughthe
numerousbr oker
saffi
li
atedwit
ht heApp.

Thefir
stopt
ionofopeni
ngademoaccountpopsupt hesecondimage,
you
cal
lrandoml
yselectany
broker
,aswel
lasyouraccountt
ype,l
ever
ageand
mouthwateri
ngdeposit
s whi chyoucan'
twit
hdraw
 Fundament
alsoff
orex

I
t'sadvisableyouselectanaccountt ype,l
everage,aswellasdeposityou
i
ntendt ousef oryourrealaccountsoi tf
eel
sr ealbefor
eit'
sactuall
yis.
Starti
ngwi t
hanexagger atedfigurecouldblowy ouraccountwheny ou
decidetogor ealduetol ackofriskmanagement ,
wewoul ddiscusslat
er,
fornowl etunderstandtheapp.
 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
pairoverasetperiodoftime.

Thethir
distoseeyourTradesrecordsandthefourt
hyourclosedtr
ades.
Thefif
thandsixt
harenotneededf ornow.Justtoquenchyourcuri
osi
ty
thefi
ft
hisforfi
nanci
alnewsfeedt hatpopsfr
om ti
met oti
mewhi chmight
aff
ecttheForexmarket
.Sobasicallyi
tcanbeseenasat oolfor
specul
ati
on.

Thel
asti
stoei
thersi
gni
norr
egi
steront
heapp.

Ourmajori
nter
estar
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
ighthand
cor
ner

Thefir
stistoaccuratel
ygetthet i
meandcur rencypairrat
e(rat
eont he
ri
ghtwhileti
meont hebot
tom)f ortheimagebelowt heexchangeratefor
EURUSDi s1. 15878at2021.10.2911:20am.Alsothet ool
canbeuset oa
cert
aintheratetoplaceatradeTakepr ofi
torstoploss(wil
lbediscussed
l
ater)
.Asf ornowNoneedf orthesecondicon.
 Fundament
alsoff
orex

Thethir
distoswi t
chthechar
ttoanycurrencypairpresel
ected.whil
ethe
4thi
st ochoicethechar
tti
mef r
ame, 30mins,1hour
,1mont h,2month.You
getthedri
ft,
thefif
thwil
lbeexpl
ainedinalatertopi
c.Asusual bel
oware
pi
ctori
alexplai
nati
on.
 Fundament
alsoff
orex

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

I
Phone
Bi
t.
ly
/howt
ouseMTi
phone

Andr
oid
Bi
t.
ly
/howt
ouseMTandr
iod
 Fundament
alsoff
orex

CURRENCYPAI
RS

Forthispar
ttobemor einteracti
ve.Wewoul dall
needtoopenourMT4/5
AppsWear eget
ti
ngintomor eseri
ousBusinessri
ghtnow.IBel
iev
e
ever
y onehassuccessf
ull
yOpenedt heirDemoaccountandhasLocat
ed
theCURRENCYPAI RSpagej ustli
keIoutli
ned.I
fyouhaven'
t,
keepUsi
ng
myowni magesasGuidesf ornow.Cl i
ckontheiconpoint
edbythear
row
toaccessthevari
ouscurrencypai rknowaspairstr
eam.

Ther
ear
edi
ffer
entcurr
encypai
rsav
ail
ablei
ntheforexmarketfort
radi
ng.
Bel
owandl
i
mi t
edto,ar
etheexampleofcur
rencyt
radedonforex

EUR.
..
..EURO

USD.
..
.USDOLLARS

GBP.
..
.GREATBRI
TISHPOUNDS

CHF.
..
..
.SWI
SSFRANC

NZD.
..
.NEW ZEALANDDOLLARS

AUD.
..
..AUSTRALI
ANDOLLARS
 Fundament
alsoff
orex

CAD.
..
.CANADI
ANDOLLARS

JPY.
..
.JAPANESEYEN

CNY.
..
..CHI
NESEYUANet
c

Asy ouobservedony ourMTI t

'smostlywrit
tenast hei
rabbrev i
ati
ons.
Thesear esomeoft heli
stofPopularCurrenci
est r
adedont heFor ex
marketWi t
htheirabbrevi
ati
onsandFul l
meani ngsAnimpor tantthingto
notehereisthatTheBaseCur rencyisalwaysst r
ongerthant heQuot e
Currency(wit
hfewexcept i
onsandwewi l
lseewhysoon)

Alsobehi
ndeachpai rsyouwouldseesomesetofnumberswritt
enbythe
si
de..
.Justfocusont hefi
rstnumberf
ornowThatnumberistell
i
ngyou,
howmanyUni tsoftheQuot eCurr
ency
,y ouwoul
dneedtoget1unitofthe
BaseCurrency.Let
'snotetheabovest
atementdown,
Iwil
lexplai
nindetai
l
s
now
 Fundament
alsoff
orex

LetmeuseaLocal scenari
otogi veyouguysanexampleIfyouhavea
Currencypairbt
wUSDandXXXcur r
encyUSD/XXX..
..
..
360Thisisfi
rst
tel
li
ngy outhatUSDisstrongerthanXXX,henceUSDi stheBaseandNair
a
theQuot eSothatiswhatthatnumberbyt hesi
de,Al
way stel
lsus.How
manyQuot ecurrenci
esdoy ouneedt oget1UnitoftheBaseCurrency

Ibel
ievethi
si scl
ear.ThattheBaseisal
waysStrongerthantheQuote.Let
megi v
eanot herexampletomakei tmorecl
earerHowev er
,ther
eare
occasi
onsinwhi chtheStrongeronesar
ewrit
tenast hesecondpai
r.
Examplesinclude

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

Youalwaysknowthem becausetheyst
artwi
thzeropointsomethi
ng
writ
tenbesi
dethem Nowwheny ouseethesefewexceptions.
.Don'
tbother
toomuch..AboutwhytheWeakeroneiswrit
tenfi
rstev
ent houghit
'squi
te
 Fundament
alsoff
orex

glar
ingt hatt heQuot eisst r
ongerWhaty ouj usthav et odoist otakenote
ofthem, Itdoesn'taffectyourtrades.It'
sj ustfort heknowl edgesake,so
notet hem down.Theyar ethepair sIli
stedabov eHowev er
,apartfrom
thosef ewexcept i
ons, Generall
yinFor ex...TheBasei salwaysstronger
thantheQuot e.I
t'
sassi mpl easthat .Also,nomat t
erwhi chonei swr i
tt
en
fi
rst,Alway sknowt hatthePr i
cey ouseebesi dei tisHowmanyoft he
QuoteCur 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 sasksQuest ionsHowev er,Foryour
Foundat iont obeSt ronginFor ex, youneedt ogr abt hisconceptsot ake
youtimeandpounderov erit
.

TheBigQuesti
onisNow.WhenDoy ouBuyandWhenDoy ouSell
?Now
thi
siswher
epeoplealwaysgetconf
used.Becauset
hosewhotaughtt
hem
usedthewrongsemanti
cs

YOUBUYWHENYOUKNOW THATTHEMARKETWOULDGOUP

WHI
LE

YOUSELLWHENYOUKNOW THATTHEMARKETWOULDGODOWN

I
fy ounot i
ce,Icareful
l
yusedWOULDIdi dn'
tsayYouBuywhent heMarket
i
sgoi ngUpAssumi ngIsaidt hat,Iwouldst i
l
lbecor rectbuty ouwouldget
mor econfusedYouwoul dst artasking,Whobuy sanyi t
em wheni t
'sgoi
ng
UpNowasUsual ,Iwill
useaLocal scenari
otoexpl ainthistopi
c,bythe
ti
meI 'm done,t
hisseemi nglycompl exconcept ,willl
ookv eryeasytoyou
Believ
eme, not
hingishardi nForexJustt ellyourselfifanyonewithone
headcandot hi
s,thatyout oocandoi tbecausetheyhav eoneheadasy ou
do..

Whatweareactual
lydoinginForexinverysimpl
etermsJustfoll
owme
herecl
osel
yIfyouaredoingany t
hingel
se,justf
ocusfr
om nowonwar ds
LetmeusethisAnal
ogyt oexplai
nwhatImean.Usingtwoindi
vidual
sX
andYIwoulduse2namesi nthisbri
efAnal
ogy
 Fundament
alsoff
orex

Name1:
X(t
hecur
rentpr
esi
dentofcount
ry)Name2:
Y(f
ormerpr
esi
dent
)

Nowl et
'sgett otheAnal ogysoast ounderstandinalayman'swayhow
Forexactuallywor ks.WhenYwasi npower .Doll
arwasatat imear ound
180t o220Let 'sjusttaket heaverageandsay200.WhenXent ered
power .
..Thenatsomepoi ntDoll
arshutupt o500perone.Assumi ngyou
knewDol larwoul dappr eci
at eagai
nstthecurrencyli
kethisandy ouhad2
Mill
ionofsuchcur rencylyingfall
owi ntheBankaccount, y
ouknewf rom
yourexper i
enceasaFor extraderthatuncert
aint
yinGov ernmentweakens
acur r
encypai randy ouusedt hi
sy our2mi l
li
onandboughtdol l
arsandkept
i
n2015.

I
twouldgiv
ey ouabout$10,
000.Now1y
earl
ater
,Dol
l
arj
ustescal
atedt
o
500perdol
lar
s.

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
artoNairatomake
yourselfMoney .Wi
thoutDoi ngany thing.
,youjustsatathomewhi l
et he
ForeignExchangemar ketdidt hejobf oryou.Thisisbasical
lywhatwedo
i
nFor ex.
..Thi
sisnotthenor mal mar ketormallthatYouBuyandSel l
Clothes.Wi t
hForexisall aboutSECULATI ONi facurrencyvaluewi
llgoup
ordownwi thi
naparticularperiod

Forsomet hatwoul daskwhatar eyouBuy ingandSel l

ing?Thisisjustaraw
Analogy,
becausei nForexmar ketit'
sevenmor einteresti
ng.Youdon' t
havetowaitfor1y earormont hstomakeMoney .TheseCur r
enciesare
Constant
lyFluctuati
nginmi nut
es( whatisusuallyref
ertoasVol atil
i
ty)
.so
i
t'
sthoseoppor tuni
tiescausedbyt heseFluctuat
ionsint hePri
ceofone
Curr
encywi t
hr especttoanotherthatForextradersmaket hei
rmoneyf r
om.
BecausetheyhappenDai ly.That'
swhyBankswoul dnev eral
l
owy outo
 Fundament
alsoff
orex

l
earnFor ex.Theypr ef ery oucomet otheirBanksandf i
xt hemoneyf or
meager einterestrat es.Toev enshocky ou,I nv est
mentBankscont r
ibut
e
mor ethan70%oft het otalLiqui di
tyinFor ex,t heyusey ourMoneyt oTrade.
Dri
veBi gcar sandLi vei nBi gHousesandgi vey oupeanut sasinterestor
meager eamount sAsSal ar
y.Theseanal ogyi nt helowestt er
mst hat
everyonecanunder st and.Wi tht i
mei twoul dgetcl earer..ButIhopey ouall
arehav i
ngani deaofhowwemakemoneyi nFor ex.SoI nt heabove
Analogyi madeabouthowbuy ingdollarsandexchangi ngf orXXXlater.
..
Youwi ll
noticet haty oudi dn'treallyBuyorSel lanyr ealcommodi tytomake
money .Yout ookadv ant ageoft hechangei nExchanger atetomakemoney .
Thisisthesamet hingwedoi nf orexbuti nshor t
ertimef rame.Sowhydi d
youBuyUSD/ XXXi nt heabov escenar io?YouBoughtUSD/ XXXbecause
youknewbef or ehandt hatthev al
ueWoul 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
evemey ourfoundat i
onisgoingtobeshakyal l
thr
oughy ourForexjourney.Curr
enciesar egaugedinpips,Tradeor ders
areplacedinpips,Profit
sarecalculatedinpips.Pr
acti
call
yev er
ythingwe
aredoinginForexinvol
v esPips.Sot akey ourti
metounderstandt hisver
y
I
mpor tantt
opic.

API Pi sthesmal lestunitinwhichaCur rencypai rcanchange.Some

biologyst udentsaresmi li
ngnow, don'tbedecei v
edbecauset hat'sthe
closestitwi l
lgetsodon' texpectanysy nt hesissuff
ix .I tcanal sobe
saidt obeast andardi
zeduni tandt hesmal l
estamountbywhi cha
currencypai rinforexmar ketcanchange.I t'
sjustli
ketheCELLofFor ex.
Thoughasy ougof urther,youwilllearnt hattherearesmal l
erv ersions
call
edmi cr opips.Butlet'
snotgetany thingcompl i
catedfornow.Let snow
gett ohowt ocalculat
epi ps.Thisi swher emaxi mum concent rati
oni s
required.
.I fyouaredistractedbefor enow, pleasestayfocusedf rom now
onwar ds.Formostcur r
encypai r
si nForex, West artCalcul
atingt hepips
from the4t hdeci malplaceHowev er,ther earefewexcept i
ons.Wewoul d
startwitht hegener al
ones, beforewegot ot heexcepti
ons

SobeforeIstar
t,Letmer epeatThePipisbeingcalcul
atedstartingfr
om
the4thdeci
mal pl
ace.Soignorethatnumbersuperscri
ptbesideal l
the
pair
s.Thesuperscr
ipti
swhatsomeofuscal l
r ai
setopowerSoi fEURUSD
whichiscur
rentl
yat1.1806Makesamov eof1pi pIt
'snewv aluewould
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 mmedi at
elygot1.1807Fort 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=1.2973Sameanswerwi ththeabove
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.
2981

sameanswer

Iknowsomeonewoul dask,Sincetheshor tcuti

seasy ,Whyt eachusthi
s
l
ongmet hod.Aswegohi gher, i
tgetsmor ecompl i
catedespeci all
ywit
h
numbersthatarenotroundnumber sWewoul dseethatsoonNowf or
mostcurrencypai
rsinForex..
..ThepipCal cul
ati
on,st art
sf r
om t he4t
h
deci
malplace.Nowt her
ear esomecur rencypairsthatar enotupt o4
deci
malplace.Someoft hem hav especif
icway sofCal culat
ingthem.
Exampl
eoft hosepairsareJPYpai rs

EgUSDJPY,
EURJPYGBPJPY,
AUDJPY,
NZDJPYet
c

AnotherExamplefrom thati
mageofUSDJPYabov e.
..I
t'
scurr
entl
yat
107.17.
..I
fitmakesamov eof2pi ps.TheNewv al
uewouldbeat107.
19
Howdi dwegetthis?Weadded" 2"totheseconddeci
mal pl
acenumber
whichis"7"anditi
ncreasedto"9"That '
showwegot107. 19

LETSSTARTWI THJPYPAI RS.ForJPYpairsEgUSDJPY. .

..
.Thepips
Calcul
ati
onstart
sfrom t
he2nddeci malpl
acedigi
t.I
fyounot i
cethati
t'
s
notupto4decimal pl
aceli
keothersthatwedidbefor
e.Let'
sseesome
examplesLet'
sgotothelongmet hodFortheLongmet hod,youshould
takenotethatForJPYpair
s1PI P=0. 01Nolonger0.
0001, li
kewesawf or
 Fundament
alsoff
orex

othergener
alpai
rs.Thi
sisbecauseJPYpai
rshasj
ust2deci
mal
place.
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 ewouldask,whyar ewesuf f

eri
ngour selvessolvingallt
hese
Elementar yschooladditi
onofdecimals.Youwoul dneedi twhenwegett o
Takingpr ofi
tsinyourtrades,
sett
ingtr
aili
ngstopset cSol earnitandget
groundednowoni tsothatwhenwegett here,uwoul dn'tgetconfused.PI
P
Calcul
ationi stheBedrockofmostt hi
ngswewoul dbedoi ngi nForex.
Someal soasked,whatdet ermi
neshowacur rencypai rmov edorhow
manypi psi tcanmov eThatissetbythemar ket,forcesofdemandand
supplyetcwewoul ddiscussall
thesesoonOt hersal soasked, Howwoul d
theyknowt hiscur
rencypairmoved5pi psor10pi psor20pi psetc

Uwoul dseei tt
her
eony ourMT.I magi
ne,y
oucamedur ingLondonsession
andyousawGBPUSDat1. 2600,andyoucamebackdur ingtheNewYor k
sessi
onandsawsameGBPUSDat1. 2670y oudon'tneedaPr ophettotel
l
youthatithasmov edandinthiscase,I
tmadeamov eof70pi ps.Soyou
wouldalwaysseeitthereony ourMT4.Themar ketisconstantlymovi
ng
andfluct
uating.

CONCEPTOFBI
DPRI
CEANDASKPRI
CE

Nowwear egoingtobeanswer i
ngthequestiont
hatmanyofy ouwere
aski
ngbef
ore.Whyarethere2pr i
cesbesideeachquot e?YouknowI
al
waystel
lyouguysthatIl
ikeTeachinginstepsthatwon'toverl
oadyou
whoisl
ist
ening.Asweappr oachthatar
eawewoul dtacklei
tandy ouwi
ll
 Fundament
alsoff
orex

under
standi
tbet
terLet
'snowgett
owhatt
heymean.

BI
DPRI
CEI
STHEPRI
CETHATBUYERSAREWI
LLI
NGTOBUY

WHI
LE

ASKPRI
CEI
STHEPRI
CETHATSELLERSAREWI
LLI
NGTOSELL

Memor
iest
hosedef
ini
ti
ons.Wewoul
dbr
eaki
tdownnow

Fr
om t
heI
mageabov
euwoul
dseesomet
hingl
i
ke

USDCAD 1.
23691.
2370(
inr
ed)

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

Ialway slikesimpl i
fyi
ngt hingsf ory ouguy s.Forexisnotmeantt obehar d,
i
t'speopl ethattr
yt omakei tcompl exsoast omonopol i
zet hebusi nessfor
themsel ves.Let'
ssayy our eceive$10, 000,from af r
iendabr oad.Andy ou
walkintoaBankt oexchangei t, Bankwoul dt el
lyout hatthel atestCBN
rateislet'
ssay#350.Sot heywoul dgi ve#3.5Mi ll
ionasequi valenttothe
$1,000Let 'ssaythenextday .youwal ki
ntot hatsamebank.Youhadan
emer gencyandy ouneededt otravel abr
oadandy ouar er equest i
ngfor
same$10, 000.Theywoul dnowt el
ly outhatt hei
rownBankr ateis#370So
youwoul dnowhav etopay#3. 7Mi l
lionforsame$10, 000I nthissi t
uati
on,
#350her eistheBi dprice,whi le#370i stheAskpr i
ce.Thati showBank
makest heirMoney .Theyj ustmade#200, 000pr ofi
tf r
om y oui njusta
spaceof24hour s. ThatiswhyBankswoul dal waysbeKi ngov ert he
 Fundament
alsoff
orex

masses.Theycont
rol
thefl
owofmoney.Andwouldalway
sconti
nuet
o
l
iv
einBighousesandDriv
eBigcar
sandpaytheworker
speanut
s.

Let
'scomebackt oForexInForex,t
heBidandAskpr i
cewor ksameway .
HowevernotasexuberantastheoneBanksexpl oi
tuswith.Thediff
erence
bet
weent hese2infor
exisjustinpoint
s.SoTheBidPriceisthatpri
cet hat
Buyer
salsoinForexarewill
i
ngt oBuywhileAskpri
ceisthepricethatthe
Sel
ler
sarewi l
li
ngtosell
.HereBuyersandsell
ersarenothumanbei ngs.

It
'sthemar keti
nthiscase..YouBuyf rom t
hemarketandSell
tothe
mar ket
.Thatiswhy ,t
heywoul dnev erwantyoutolear
nFOREX.Because
ForeignExchangeissoLi qui
dt hatitcanchangeyourFor
tunearoundi
n
j
ustf ewweeksofTr ading.Howev er,t
hisMonopol
yofknowledgeisbei
ng
ci
rculatedamongt heElit
es.Letsrelateitt
oourexampleofbanksabove

I
nt heExampl eIgav eabove,Wheny oubr oughty our$10,000t otheBank,
youarethesel l
eratthatinst
antwhi letheBankwast heBuy er.Sot hey
gaveyout hei
rBidpr i
ceof#350.Becauset hatisthepr i
cet heyarewi l
l
ing
toBuy.InreverseWheny oucamebackt henextdayt haty ouwantt otravel
foranemer gencyYounowbecamet heBuy er(nolongertheSel l
er)You
neededtoBuydol larstoTravel ur
gently.Nowt heBanki nthiscasebecame
theSell
er.Sotheygav eyout hedollarsatthei rAskpricewhi chistheprice
thatSel
lersarewill
ingtoSell(remembert 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,whoist
heBuyer
)Whil
ei n
rev
erse

Wheny ouplaceaSELLORDERi nForexItwouldactiv

ateforyouusi
ngthe
BIDprice(rememberthatt
heBI Dpri
ceisthePr i
cethatBuyer
sarewill
i
ngto
Buyfrom y ouwhoistheSell
er)Alsonotethatfr
om theexampleIgave
above,370wast heAskPriceandit'
sbiggerthantheBidpri
cewhichwas
350.SoAl soinFor
ex..
.TheAski sal
sohigherthantheBidpri
ce.
 Fundament
alsoff
orex

WHATI
SASPREAD?

SPREADi st hediff
erencebetweent heBI DandASKpr ice.TheSpr eadv ari
es
betweenTr adingSessions.Whent heVol ati
li
tyishighandmanymar kets
areopenatt hesamet i
me.Thespr eadi salway ssmall (meaningt hatyou
payBanksl essercommi ssions),thati sanotheradv antageofTr ading
whenmanymar ketsareopenHowev erwhen" onlyonemar ketisopenor
theVolati
li
tyislow,t hespreadsareal way sbigger "
.Not ethisdown!I nthe
exampl eIgav eabove.TheSpr eadis#370-#350=#20TheSpr eadi s20.
Thatisthepr ofi
toftheBanks.Soal soi nForex,theSpr eadist hepr ofi
tof
theBrookers.howev er,i
nthiscase, it
'sv er
ysmal lbecausei t'
smeasur edin
pips.Sothatishowt heSpr eadwor ks.Wewoul dmov et oanot her
i
mpor tanttopic.

TAKEPROFI
TANDSTOPLOSS

Asat r
ader,
y ouwi l
lnotalwaysbeonlinemonitor
ingallyourTrades.It'
snot
asifweForexTr aders,justgetaseatandstayinfrontofourlaptopsall
day.Someofy ourt
radesmayst ayovertheNight,somemayl astfor2
days.Andyoumayhav eadat ewithyoursomeone, youhav eChampi ons
Leaguetowat ch,yourFr i
endthatj
usthammer edononebi gtr
adei s
hosti
ngaPar ty,youev enhaveyourworkt ogotoifyouar eawor ker
.So
youhavemanyengagement s.
That'
swher eMarketorderscomei nto
play
.TakeProfitandStopLossar eFormsofMar ketorders.

Let
sst
artwi
thTAKEPROFI
T

Letssayy ourTar getprofitforthi

sparti
cularTradeisjust50pips.Youdon' t
wantt obeGr eedy.LikeIalwaysadv i
ce,Nev erbeGreedyinForex.
Eli
mi nateGr eed,Pickthelit
tleyoucanandmov eon.Evenifyoucan'tmake
$100dai ly.Evenifit'
sonly$50or$20or$10, youmakedai l
y,Mybrot her
andsi st
er, i
naweekt hat'
s$70t o$250.Whopay ssuchinaweekwi thy ou
si
tti
ngatt hecomf ortofy ourhome?I t'
sgoodf orast ar
tandabegi nner.
Witht i
me, youcanupgr adet o$100daily.That'
s$500weekl y(#180,000)
Soy ougr owgr aduallyRememberi nForexwear eal
waysdoing2t hings.
 Fundament
alsoff
orex

Buyi
ngandSel
l
ingLet
'st
akeascenar
iowhenwear
eBuy
ingandgi
vean
exampl
e.

Let'
ssayy ouenteredacur r
encypai r.Let '
scal li
tAAA/ BBBAndI t
's
currentl
yat$40.Andf rom y ourTechni cal orFundament alAnal ysis,you
foundoutt hatitwoul dsoonr i
se.Soy ouimmedi at
elyopenedy ourMT4
andCl i
ckedonBUYAndy ourtargetf orthisTr adei sj
ust50pi psy oudon' t
wantt obegr eedy.Fory out osetaTar getpr ofitat50pi psyouaddi ttothe
pri
ceuent er
ed, whichwas$40Soy ourTPwoul dbeat$90Soany ti
me,the
currencypairAAA/ BBBSt artsClimbingandReaches$90Ev eni fyouar e
notonline,YourMT4t hroughy ourBr oker’
sser verwouldcloset heTr ade
foryouaut omat i
callyusi ngy ourMT4andaddt he$50pr of
ittoy our
accounti mmedi at
ely .Sot hatishowTPwor ks.Oncey ouseti tatt hat
parti
cularpriceony ourMT4, whethery ouar eonl i
neornot.I tclosest he
Tradef oryouandLocksy ourpr ofi
t.Let'snowOpenourMT4, t
oseewher e
tosetourTPoni t
.Sot hatwecanal soseepr act i
calexampl eusi ngReal
pair
sOpenYourMT4.

(
fori
PhoneCl
i
ckHEREForAndr
oidcl
i
ckHERE)

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

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

SoHav
ingseenwher
etoI
nser
ttheTakePr
ofi
t.

Let'
snowdosomepr acti
calExamplesofhowtoCalculateTakeprofi
tThe
BoxontheRi
ghtlabel
edbyt heblackar
rowisthespaceforinputti
ngin
yourTP.Whi
lethespaceont heLefti
sforput
tingi
ny ourStoplosswhich
wewouldseenextAssumi ngIwanttoBuyEURUSDatt hatCurrentASK
PRICEof1.
0960seeni ntheimageaboveAndIwantaTakePr ofi
tof30
 Fundament
alsoff
orex

1
pi
ps.WhatIwoul
djustdoi
stoAdd30pi
pst
othatFor
merv
alueof1.
0960
andIwouldhave1.0990

Ihopey our emember edourpi pscalculat

ion.
...Thisiswher ewearegoing
tobeusi ngitSoMyTPf orthattradewoul dbe1. 0990Iwoul dgoint
ot hat
TPboxspaceandt y
pei tin.SoI mmedi at
elytheCur rencypairr
isesduri
ng
i
t'susual f
luctuati
onsandget st o1.0990MyBr okerwoul dimmediatel
y
ClosetheTr adef orme,Whet heram onli
neornotandt henAddmyPr of i
t
tomyaccount .(NoticethatIusedAskpr icebecauseIwasBuy i
ng,during
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 ntheafternoonorinthe
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 ori
set o1.3358(1. 3308+50pi ps)

HenceIwoul
dgot
omyTPboxandt
ypei
n1.
3358

WhenUSDCADr i
sesto1.3358,myBr okerwoul dautomat i
cal
lycl
osemy
Tr
adeformeandaddmypr ofi
ttomyaccount .Rememberi nBuying,weare
maki
ngrefer
encetotheAskpricenott heBidpriceThatswhywear e
maki
ngrefer
enceto1.3308andnot1. 3305( t
heot herpri
ceontheleft
whi
chistheBidpr
ice)SoWhenUSDCADr isesandget sto1.3358(which
woul
dbea50pi psmov e)MyBr okerwouldclosetheor derandKeepmy
pr
ofi
tsi
nmyFor exaccount.

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

SoLet
'sgett
otheSELLSCENARI
O

Let'
sFocuscl osel
yfrom hereonwards,thisiswherepeoplealwaysget
confusedandaskquest i
ons.Howev erencour ageyoursel
fthati
fpeopl
e
whodi dn'
tevengot oschool ar
etr
adingf orexanddoingthebasicaddi
tion
andsubt r
act
ionsthatyout oocandoit.Sol et'
sfol
l
owcl oselyfr
om her
e.In
Sel
li
ngaCur rencypairattheForexMar ket.

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,youmakemoneybot hway s.Whethera
Curr
encyisRisi
ngorFall
ing,i
t'
snoneofyourbusi
ness.youjustenteri
n
ther
ightdi
recti
onandmakeyourmoney.Let'
snowseePr act
icalExamples

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.

Soinsummarywehaveseent
hatWhi
l
eBuyingourTPi
supHoweveri
n
Rev
ersewhi
leSel
l
ingOurTPisbel
owthepr
ice.IWi
l
lDr
opAssi
gnment
s

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

thatYoual l
woul dusetoPr acti
ceanddropt heAnswer sonthepage
tomorrowmor ni
ng.Throughouty ourEnt
ireFor exJourney.youwould
alwaysEncount erPipsCalculat
ioninonepl aceoranother.Sothosewho
aresti
llhavingProblemswi thPips.UsethisNi ghtSCROLLUPandRev i
se
theLecturesonPi ps.

STOPLOSSi sanotherimpor t
antform ofMar ketorder,whichislikethe
oppositeoft heTakePr ofi
torderthatwesawl astt
ime.Her eyouar egi
vi
ng
yourBr ookerandInst r
ucti
ont oClosey ourtr
adewhent hemar ketwantsto
goagai nstyou.Mar ketisalwaysgoingupanddownandsomet imesa
Newsmaypopupandswayt hemar ketintheopposi tedir
ecti
oni nwhich
yourTr adewaspl anned,Butwi thaSt op-l
ossorder.Immedi at
elyt he
mar ketwant stochangeandgot heopposi tedir
ection,YourBrokerwould
closetheTr adefory outhroughyourMT4, evenify
ouar enotonline.

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
 Fundament
alsoff
orex

CCC/
DDDAndthep3r
icei
sat$100AndIwantaTPof40pi
psandaSt
op-
l
ossof5pi
ps(
meaningIdon'
twantt
oloosemor
ethan5pi
ps)

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 rom furt
herloss,
Evenifyouar enotonl i
ne.TechnologyofMT4hasmadeFor exso
i
nterest
ing,y oucont r
olhowmuchy ouear nandal sohowmuchy oudon't
wannaloosei ncasemar ketrever
sesLet '
sseesomer ealexamplesnow.
Let'
ssayIwantt oBuyUSDJPY. .AtthatAskpr iceof107. 47AndIwanta
TPof40pi psandIdon' twanttoloosemor 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 psCalcul
ati
onisbasi
call
ystr
aightforwardi
fyoulear
nhowto
Calculat
eit.I
t'
snotRocketsci
ence , Justbasi
call
yAddi
ti
onand
Subtract
ion.JustnotewhenyouareBuy ingorSell
i
ng.

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

I
NREVERSE

WhileSell
i
ng,YourTPisbel
ow(becausey
ouwantt hepr
icet
ofal
l)Whil
e
yourStopl
ossshouldbeabove(
becausei
fitst
art
sgoingup,
that
'snoty
our

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

tr
adepl anagai n)Nowl et
'sgettohowt oCal culateStop-l
ossinthe
oppositeScenar iowhichisSelli
ng.Followcl oselyfrom here,
soasnott o
getconf used,takeyourti
met ounderstandi t.Rememberi nSel l
i
ng,youare
onlymaki ngmoneywhent hepriceisFal l
ing.SoLet ssayIwantt oSell
Currencypai rTTT/UUUandt hepriceiscur rentl
yat$80.Andy ouwantaTP
of50pi ps.Rememberher eyouar eselling,soy ourTPi salwaysbel
ow,so
yousetI tat$30.(whi chis50pi psbelowt heinit
ial
priceof$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 oloosemor 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
oloosemor
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)att
hecur r
entBi
d
pri
ceof117.
93becauseIknowitwoul
dfallsoonf
rom myAnalysi
s.AndI
wantaTPof53pipsandIdon'twantt
oloosemorethan5pips.What
wouldbemyTPandSL?

MyTPwoul dbeat117.40(
aft
ersubt
ract
ing53pi
psfrom t
hatcur
rentBid
pr
icebecauseIam sel
l
ingwhi
le,
MySLwoul dbeat117.
98(aft
eradding5
 Fundament
alsoff
orex

pi
pst4
ot
hecurr
entBi
dpriceof117.
93)Noti
cethatIam usi
ngBidpr
ice
her
eandnottheAskbecauseweareSell
i
ng.OurNEXTt opi
cis

LOTSI
ZE

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
ouwher
etoi
nputt
hem onMT4soon,Let
'sj
ustexpl
ainwhat

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

eachoft
hem means.Si
tti
ghtandenj
oyt
her
ide.

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

Let'
sassumeWehav e3Tr adersA,BandCt hatdealsonJeansWears
.
Youknowfort
hem tomakePr of
it,
theycan'
tjustbuysi
ngl
epair
sof
j
eansf r
om t
heWholesaler.Theyneedt oBuytheseJeansinBundl
esfort
he
profi
tmadetobeappreciable.ThoseBundl
esareWhatweCal lLOTSI
ZES

NowAssumi ngTraderAbuy s100,

000bundl esofJeans AndTr aderB
buys10, 000bundlesof JeansWhi l
eTr aderCbuysjustonl
y1,000
bundl esof Jeans.y ouwoul
dagreewi t
hmet hatTraderAwouldmake
mor emoneyt hanTr aderB,whowil
linturnmakemor emoneyt hanTrader
C.Andwhatdet er
mi nedhowmanyBundl esof Jeanst heyboughti
st he
CapitaltheyI
nvestedintheBusi
ness.ThatisaTy pi
cali
ll
ustr
ati
onof
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

SoIf3Tr aderst r
adesaCur rencypair.And3oft hem made50pi ps.Let '
s
sayTraderAt r
aded1St andardLotsizseoft hepairWhileTraderB, t
raded
1Mi niLot sizeofthepairAndt heLastTr aderC,traded1Mi croLot sizeof
thepair.Tr aderAwoul dmake50pi psx$10=$500Tr aderBwoul dmake
50pipsx$1=$50Whi l
eTr aderCwoul dmake50pi psx$0.1=$5Soev en
thought heyst i
llpart
ici
patedinthesamet radeandthemar ketmov edin
thei
rdirect i
onf orthesameamountofpi ps.Ther
epr ofi
tsweredifferent
 Fundament
alsoff
orex

be5causet
heamountofthatpar
ti
cul
arCur
rencyt
heyboughtwasdi
ff
erentI
beli
evethi
sconcepti
snowclear
.

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

Leverageistheabi l
it
yt ousesomethingsmalltocontrolsomethi
ngbig.I
n
thecaseofFor ex,usingasmal l
erCapital
Baset ocontrolalar
gerl
otsi
ze.
Tounder st
andt hisConceptofLeverage,l
et'
stakeabr iefhi
stor
yofhow
Forexwasi ni
ti
allyIni
tial
lyi
nForex,i
t'
snotanyonet hatisall
owedtoTrade
Forex.Justasweseecur r
ent
lyi
nNewYor kStockexchange.Forexareonly

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

tradedbypeopl ewecal ltheKabalsMENOFWALLSTREETUsual l

y
InvestmentBanks,Ri chMen, Monar chs,BigBusi
nessMen, Company
owner set cNowletmet akeNewYor kStockexchangef orexampleForyou
totradeinTheFl oorofNewYor kStockex changeyoushoul dbemakinga
Speci f
icamountofMi ll
ionsofdol l
arsperanum youshoul dn'
tbeowingany
Mor tgageYourTaxdocument sar euptodat eWithsomanyusel ess
crit
eriasjustt
olimiti
ttot heEli
tes.Soalsoitwasi nForexthenCommon
Menl i
key ouandMewoul dn'
thav ebenefi
tedfrom 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
 Fundament
alsoff
orex

Exampl
e6

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

RI
SKMANAGEMENT

Ont hetopicofRi skManagement .It

scomposedofal lt
hesetopicswehav e
beent eachingint hi
sstage2.Topicsli
keLotsi ze,
Stoploss,Tradingplan,
Greedel i
minationet cI
t'
sallaspectrum.BecauseIt ol
dy ouguysthat1.0
Lotsizegives$10perpi pand0. 1Lotsizegi v
es$1perpi p,youwill
see
someonet ryi
ngt ogoanduse1. 00Lot sizeona$100or$200account .
Becausehewant stogetri
chov er
night.Thati swhatweCal lOvertradi
ngin
Forex.Alway ssticktoaLotsiz
ecommi serat
et oyouraccount.Neverget
greedy.Themar ketwouldalwaysbet her e.

Evenifi
t'
s0. 01,y
ouar estart
ingwith,It
'ssti
l
lOK.Ifyoumake$10t o$20
dail
yandy oucouldn'tr
each$100dai ly
,It'
ssti
ll
fair
.$20dailyis$100i
na
week.It
'snotbadf orastart
er!Astimegoesony ouprogressto$70to$80
to$100dai l
yetcAsy ougoalongi nthecourseofy ourTr
aining,
youwill
be
seei
nghowweappl yal
lthesepracti
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.

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

Ri
skmanagementi
sver
yimpor
tanti
ntr
adi
ng!

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

Not
e:ona$100accounti
t'
sadv
isabl
enott
oev
endar
eusea1.
0or

0.
1lotsizebecauset
hat'
sthebegi
nni
ngoftheendfortheaccount
becausethescouti
s0.01int
wo10placesona1:100lever
age

PI
PSCALCULATI
ON

I
fyouhaveGBPUSDat1.2335,youcountonl
yt hefourdisgustaf
tert
he
deci
malpoi
nt.Fori
nst
anceify
ouronabuyt rade,anditmov esfr
om 1.2334
to1.
2335,t
hatmeanyoualr
eadyhave1pip.Soi fi
tmov esfrom

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 s100pips.Soitmeani fyouwanl t
totr
adewith0.01lotsize,
you’dber
isking$10ofy ouraccountonat rade.
Soifyouenterl
ike8trades,i
tmeansy ou’
reri
sking$80t hatday.You’l
l
l
oose$80ifallthetr
adeshi t
sstopl
oss(whi chhappensonl yonr ar
e
 Fundament
alsoff
orex

occasi
on7s)
.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
timeIt
akeabr eak,
Iwoul
dcloseloosi
ngt
radessetpr
otect
ivest
ops
onaWinni
ngtradesandTPatreasonabl
etar
get
s;shoul
dIbeunavail
abl
e

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

andMar
ketget
stomyTar
getl
evel
.

Iwoul
dtake70%outofmyaccountandinv
esti
nnonFxr
elat
ed
busi
ness(l
ikeReal
est
ate)andr
einvest30%.

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

Youneedt
ofact
oral
ltheabov
eint
oconsi
der
ati
on.Theabov
eisa
 Fundament
alsoff
orex

summari
z8edv
ersi
onofmyTr
adi
ngPl
an.I
tshowst
hesal
i
entpoi
ntsi
nthe
plan.

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
anttoalwaysrevi
ewy ourplan.Rev i
ewitweeklyi.
e,
attheendoft heTr adi
ngweek.Anot herimpor t
antaspectofthePlanis
oncey ouhav ereachedyourtargetf
ortheday .Alwayscloseandgoand
restforthatday.Thecashf l
owwoul dsti
llconti
nuet omorrow.For
ex
mar kethasbeenar oundfordecades,soitwon'tclosethatday.Soalways
takey ourbowof f
,wheny oureachyourtarget.Maybe, yousetatargetof

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

$100perday(l et'
sassumey ouhav eacapi talof$500) .Thenyouhav e
alr
eadymade$99. 2.Someofy ourFxcolleaguesj ustcalledyouthat
DonaldTr umpjustpulledtheplugonI r
andeal thatyoushoul dBuyBr entOil
,
andy ouimmedi at
elyrushbacki ntothemar ket.So, y
oumustel i
mi natethat
factorofGreedwhi l
eformulati
ngort ryi
ngt osticktoy ourTradi
ngpl an,By
takingthemarket,sl
owandst eady.Youwoul dalwaysbecomf ortablewi t
h
forexthisway.SoIbel i
eveeveryonewoul duset hi
sandf ormulatet heir
ownTr adingPlan.Right?Wellthechoiceisy ours.

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
snotUsingaSt oploss. .Alwaysr emembert oputitinall
yourtrades.
Technologyhasmadei tt heretopr otectyouraccounts.No
mat t
erhowgood, youmi ghthav eanal ysedthemar ket,
Youmaynotknow
whenamaj ornewswoul dber eleasedandi tcouldchanget hedir
ectionof
themar ket.(t
hat'
swhyit'salway sgoodt olookatt heEconomi ccalendar
beforethebeginni
ngofev eryweek) .Butbyset t
ingyourStop-l
oss,no
 Fundament
alsoff
orex

mat
te9rt
henewswhet
heri
t'
sagai
nsty
ourdi
rect
ion,
youwi
l
lbepr
otect
ed.

Nextmist
akeandmostr
ampanti
sOpeni
ngsomanyTr
ades.Youwi
l
lsee
someoneopen:

GBPUSD

EURUSD

USDJPY

USDCHF

AUDUSD

Onlyoneperson.Phew! !! Tell
me, howcany oumonitorallthese
tr
ades?Itall
boilsdownt oGreed.Becausey ouwantt oGrabev erysingle
pipinthemarket.Sinceits$5.3Tril
li
ondol l
arsli
quidcap,
y ouwantt ogo
homewi thatleasthalfofthemar ketvolume.Asi ft
herewon' tbeanot her
marketday.Nev eropensomanyt rades,thatyoucan'tmonitor.I
ttendst o
dist
ractyouanddi vi
dey ourconcentrat
ion.Ialwaysli
mitmy selft
o3
curr
encypairspertime.

Ifyouseemeopenanot herCurr
encypai rtomoni t
or,thatmeansone
enteredmyt argetpr of
itquiteearl
yint hedaysoIhadt oopenanot her
trade.Thelastbutnott heleastIsAnticipati
nghowt heNewswoul daf f
ect
themar ket
.I t
'sbettert
oopenmul tipl
eposi ti
onsononet r
ade( i
eonone
currencypair
)andmoni toritj
udici
ously ,t
hantoopenmul t
iplecurr
ency
pairsanddistractyourat t
enti
onIwoul dt each,youall
laterhowt oenterthe
mar ketmulti
pletimesonapar ti
cularcur r
encypair.Wecal l
it"Ri
dingthe
Trend"Andsower idetot hetheendoft hefundament al
sofFor ex

Ial
waystel
lpeopl
esomet hi
ng,Investi
nwhatwil
li
mpr ov
ey ourli
fe.And
mygoalasanindi
vidual
isthatensurepeopl
ear
efinanci
all
yfree,
thatwas

Fordai
l
ysi
gnal
svi
sit

Bi
t.
ly
/DWGFX
 Fundament
alsoff
orex

whyIsharethi
sinf
ormati
onwher eNormal
lyfor3daysSemi
nari
nsome
part
softheworldpeopl
eChargeasmuchas$400.Mostofthem won't
evengoint
odetail
sofhalfofwhatyougotinStage1and2forf
ree.

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

Iandsomeexper t
swor khandi
nhandt oprovi
dedai
lytr
adi
ngsignal
wit
ha
90%accur acywhi
chcanhelpyousecure$50to$250aweekyeah!You
heardme.Soundtoogoodt obetr
ueright.Bel
owaresomeofthe
screenshotoft
heoutcomeofourdail
ytradesignal
s.
 Fundament
alsoff
orex

Toproveit
'saut
hent
ici
tyy
ouwi
l
lbeget
ti
ngfree2weekssi
gnalsall
for
FREE!YESFREEOFALLCHARGESbecauseourgoali
stoensurepeopl
e
aref
inanci
all
yfr
ee.

These24/5Si
gnal
sofProf
it
abl
etr
adeswil
lbedroppedonoursi
gnal
group
andasseenabovesot
hatwecantakeonourLi
veaccount
sandgrowthe
account
s.

Aninter
esti
ngconceptinForexi st hatyourgaindoesn'tstopmef r
om
gai
ning;I
fallofushereenterat radeonsamel otandityielded$105...We
al
lwouldmake$105.Ear li
erwel earntthatThe$6. 6Tri
ll
i
ondol lar
st r
aded
perdayisenought ogoround; Ialonecan'tfi
nishit.Asyoual lwil
lagree
wit
hme, Everyworkerdeserveshi swages.hoar dingKnowl edgewon' t
makeonepr ogress,y
ouprogr essf asterwheny ousharethisknowl 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)