BASIC FOREX

EDUCATION
COURSE

by Prosper Agu
for FOREX-HUB
 Table of Contents
Part One:

⭕What is Forex Trading?

⭕Advantages of Forex Trading
⭕Key Players in the Forex Market
⭕Major Currency Pairs
⭕How Forex Prices are Quoted
⭕Basic Forex Trading Concepts

Part Two:

⭕Factors Affecting Forex Prices

⭕Fundamental vs. Technical Analysis
⭕Popular Forex Trading Strategies
⭕Risk Management in Forex Trading
⭕Choosing a Reliable Forex Broker

Part Three:

⭕Demo Trading and Education

⭕ Creating a Demo account on exness (Video
tutorial)
⭕ Connecting your Demo/Real account to MT4
(Video tutorial)
⭕How to take my trade signals on your MT4 app
(Video tutorial)
⭕Common Forex Trading Mistakes to Avoid
⭕Tips for Successful Forex Trading
 Part One
⭕What is Forex Trading?
Forex trading, short for foreign exchange trading,
involves the buying and selling of currencies in the
global financial market.

Explaining this in layman's term, imagine you're going

on vacation to a foreign country, and you need to
exchange your home currency (let's say US dollars) for
the local currency of the country you're visiting (let's
say euros). Forex trading is somewhat like that, but on a
much larger scale and for different reasons.

In forex trading, people buy and sell currencies from all

around the world, not just for vacations but to make a
profit or manage risks. Here's a simple explanation
using an example:

Let's say you live in Nigeria, and you believe that the
value of the Japanese yen will increase compared to
the naira in the near future. You decide to take
advantage of this potential increase in value, so you
buy some Japanese yen using naira. This act of buying
yen with naira is called "going long" or "buying" the yen.

Now, let's consider two scenarios:

Scenario 1: The yen's value goes up.

If your prediction was correct, and the value of the

Japanese yen indeed increases compared to the naira,
you can sell the yen back to the market for a profit.
For instance, if you originally bought 1000 yen for
N10,000 and the value of the yen rises, you might be
able to sell those 1000 yen for N12,000.
Congratulations! You've made a N2000 profit in this
trade.

Scenario 2: The yen's value goes down.

However, if the value of the yen goes down instead, you

might end up selling the 1000 yen for, let's say, only
N8,000. In this case, you've experienced a loss of
N2.000.🥲
The idea behind forex trading is to make well-informed
decisions based on various factors like economic
indicators, geopolitical events, and market trends to try
and predict which currency will strengthen or weaken
against another.

Traders aim to buy low and sell high or sell high and
buy low, depending on their analysis.

It's important to note that forex trading involves risk,

and the market can be quite volatile. People can make
money, but they can also lose money, so it's crucial to
approach it with caution and use only money you can
afford to potentially lose

In summary, forex trading is like a big global

marketplace where people buy and sell different
currencies to potentially make a profit based on their
predictions about currency value changes.
⭕Advantages of Forex Trading
1. High Liquidity
One of the advantages of Forex trading is high liquidity.
This means that the vast number of participants in the
Forex market ensures that you can enter or exit trades
easily, even with large volumes.

2. 24/5 Market Accessibility

Another advantage is the 24/5 Market Accessibility the
forex market provides. Forex trading allows you to trade
around the clock, from Sunday evening to Friday
evening, providing ample opportunities for various
trading strategies.

3. Potential for High Returns

Another advantage is the Potential for High Returns it

offers its traders. Forex offers the potential for
significant profits due to its leverage and price volatility
nature

4. Leverage and Margin Trading

Leverage and Margin Trading is another advantage
Forex trading gives. Forex brokers provide leverage,
allowing traders to control larger positions with a
smaller amount of capital. However, remember that
leverage also magnifies potential losses.
⭕Key Players in the Forex Market
1. Central Banks
Central banks play a crucial role in influencing currency
values through monetary policies and interest rate
decisions.

2. Commercial Banks
Banks facilitate most of the currency transactions in
the Forex market on behalf of their clients.

3. Institutional Investors

Large financial institutions, hedge funds, and

corporations participate in Forex trading for various
reasons, including speculation and hedging.

4. Retail Traders (Me and You)

Individual traders like yourself are an essential part of

the Forex market, and technological advancements
have made it easier for retail traders to participate.
⭕Major Currency Pairs
Currency pairs represent the exchange rate between
two currencies. The first currency is the base currency,
while the second is the quote currency.

Major currency pairs are the most traded pairs and

include EUR/USD, GBP/USD, USD/JPY, USD/CHF, and
USD/CAD.

Understanding the relationships between major pairs

can help you predict market movements.
⭕How Forex Prices are Quoted
Forex prices are quoted in pairs, such as EUR/USD or
GBP/JPY.

The bid price is the price at which the market buys a

specific currency pair from you, while the ask price is
the price at which it sells the pair to you

The difference between the bid and ask price is known

as the spread, representing the cost of the trade.
⭕Basic Forex Trading Concepts
1. Long (Buy) and Short (Sell) Positions
Buying a currency pair is known as going long, while
selling it is going short.

2. Pips
Pips are the smallest price movements in Forex.

3. Lots

A lot is the standard unit size of a transaction.

4. Leverage

Leverage allows you to control a larger position with a

smaller margin.
 Part Two
⭕Factors Affecting Forex Prices
1. Economic Indicators
Economic data, such as Gross Domestic Product (GDP),
Consumer Price Index (CPI), and Employment Reports
influence currency values.

Forex prices are determined by the exchange rate

between two currencies. The exchange rate shows how
much one currency is worth compared to another.

For example, if you want to exchange US dollars for

Euros, the exchange rate will tell you how many Euros
you can get for a certain amount of US dollars.

Economic data refers to information about a country's

economic performance. This data can include things
like employment numbers, GDP (Gross Domestic
Product), inflation rates, interest rates, and more. When
this economic data is released, it can have a significant
impact on forex prices. Here's how:

2. Supply and Demand

Supply and Demand, like any other market, the forex

market operates based on supply and demand. If an
economy is doing well, investors and traders may
become more interested in investing in that country.
This increased demand for the currency can cause its
value to go up compared to other currencies, leading
to an increase in its exchange rate.
3. Interest Rates

Central banks set interest rates, and these rates affect

the attractiveness of a currency. Higher interest rates
can attract more foreign investments because
investors can earn more returns on their investments.
As a result, the currency's value may rise.

4. GDP & Employment Data

Good economic data, such as higher GDP growth and

lower unemployment rates, signals a healthy economy.
Investors will feel more confident about the country's
currency, leading to an increase in demand and a
potential increase in its value.

5. Inflation

Inflation refers to the general increase in prices of

goods and services. High inflation can erode the
purchasing power of a currency, making it less
attractive to investors. As a result, the value of the
currency may decrease.

6. Market Sentiment

Economic data releases can influence market

sentiment. Positive data can boost confidence, while
negative data can create uncertainty and lead to a
decrease in demand for that country's currency.
7. Global Events

Economic data from one country can also have a

ripple effect on other economies. Global events, like
geopolitical tensions or natural disasters, can create
uncertainty and cause investors to flock to safe-haven
currencies, affecting forex prices.

To summarise, economic data provides valuable

insights into a country's economic health, and this
information can influence investor perceptions and
decisions.

Based on the data, demand for a currency may

increase or decrease, which, in turn, affects its
exchange rate in the forex market.

Traders closely monitor these data releases to make

informed decisions about their forex trades.

As for me, I use a site called

https://www.forexfactory.com/ to keep tab with
economic data of various countries
⭕Fundamental vs Technical Analysis
1. Fundamental Analysis
Imagine you are considering buying a car, but before
you make a decision, you want to check its overall
condition and value.

Fundamental analysis in forex is somewhat like that,

but instead of a car, you are trying to evaluate the
health and potential value of a country's currency.

In layman's terms, fundamental analysis in forex

involves looking at the underlying factors (which I
earlier mentioned in the previous topic) that influence
a country's economy and, consequently, its currency.

2. Technical Analysis

Technical analysis is a method used by forex traders to

make predictions about the future direction of currency
prices based on past market data.

Instead of looking at economic factors or news events,

technical analysis focuses on studying charts and
patterns to identify trends and potential trading
opportunities.

Imagine you are looking at a chart that shows the price

movements of a currency pair, like the EUR/USD
(Euro/US Dollar). The chart plots the currency's value
over time, with time on the horizontal axis and price on
the vertical axis.
Since this is a basic class, I'll not be going into details of
different techniques to conduct technical analysis on
currency pairs to predict its movement but I'll just list
them.

Technical analysis looks at the following to make a

prediction of price movements:

1. Price Patterns
2. Trends
3. Support and Resistance
4. Indicators
5. Timeframes

It's important to note that technical analysis is not

foolproof, and it doesn't predict future prices with
certainty.

It's more like reading the signs and probabilities based

on historical price behavior.

Many traders use a combination of technical analysis

and other factors like fundamental analysis (looking at
economic data) to make their trading decisions.

Overall, technical analysis is a way to understand

market sentiment and behavior through charts and
patterns, and it can be a useful tool for forex traders to
help them make informed choices about their trades.

But, like any skill, it takes practice and experience to

become proficient at using technical analysis
effectively.
After this basic class, I expect everyone here to atleast
open a demo account and practice or trade the
signals I'll be dropping daily on my signal group.

Tomorrow, I'll go into how you can get your MT4, open a
demo trader account and also trade my signals.
⭕Popular Forex Trading Strategies
1. Day Trading
This involves opening and closing positions within the
same trading day to capitalize on short-term price
movements.

2. Swing Trading
This involves holding positions for a few days to several
weeks to benefit from medium-term price swings.

3. Carry Trading
This involves taking advantage of interest rate
differentials between currency pairs to earn overnight
interest.

4. Breakout Trading
This involves entering positions when price breaks
through significant support or resistance levels.
⭕Risk Management in Forex Trading
Importance of Risk Management:
Managing risk is crucial to protect your capital from
significant losses.
Nobody wants to lose money, we all want to gain
money instead, that's why having a proper risk
management strategy is very important if you want to
become profitable in your Forex Trading Journey.

Setting Proper Stop Loss and Take Profit Levels:

Implementing stop loss orders to limit potential losses

and take profit orders to secure profits at
predetermined levels.

Position Sizing:
Determining the appropriate lot size based on your risk
tolerance and account balance.

Explaining further what position sizing is and how

👇
important it is, click the link below to listen to the voice
note I sent to the students during the class.

Position Sizing Voicenote

⭕Choosing a Reliable Forex Broker
Emphasising the importance and what to look out for
when choosing a forex broker, I sent a voicenote to the
👇
students. Click below to listen to it

Choosing a Reliable Forex Broker voicenote

Please listen to this voicenote as it sets the tune unto

what we'll be doing in Part Three of this course . So you
don't want to miss the info and become stranded.

Here are some certain things to consider when you

want to choose a forex broker:

Regulation and Licensing

Select a broker regulated by reputable financial

authorities to ensure the safety of your funds.

Trading Platforms

Choose a broker that offers a user-friendly and reliable

trading platform that meets your trading needs.

Spreads and commissions

Compare brokers' spreads and commissions to find the

most cost-effective option.

Customer Support

Opt for a broker with excellent customer support to

address any issues promptly.
So, the Broker name I'm recommending is Exness.

Exness ticks all the boxes of what I listed above and

what I said in my last voicenote. So you can be sure
your money is safe trading through them.

Click the link below 👇 to creating your trading account

now

Sign up for your Exness account

You can let me know in DM, and send me screenshots

while creating your account, should you need
assistance.
 Part Three
⭕Demo Trading and Education
By now, I expect you to have signed up for an Exness
account. If you're yet to do that, take a minute, go back
and create it, as you'll need it in this section of the
course.

Opening a Demo Account

Practice Forex trading with virtual money to gain

experience and test strategies.

You don't want to start testing the market using real

money cos you can always get burnt.

That's why Demo accounts are there to practice as

you'll still get real market situation even as it happens
for live accounts.

Importance of Learning and Practicing

Continuous learning is essential for improving trading

skills and staying updated with the market.

Even as I am, I still dey always learn and try out new
strategies. 😂😂😂
Learning will only stop in the grave.

Utilizing Educational Resources

Take advantage of books, online courses, webinars,

and other educational materials to enhance your
knowledge.
⭕Creating a Demo account on exness (Video tutorial)

👇
Click on the link below to watch this video tutorial to
help with creating your demo account on Exness

Exness Demo account creation Video

⭕Connecting your Demo/Real account to your MT4 (Video Tutorial)
If you're an Android user, click the link below to 👇
download your MT4 app if you haven't done that yet.

Android MT4

If you're an iPhone user, click the link below to 👇

download your MT4 app if you haven't done that yet.

IOS MT4

👇
Click on the link below to watch this video tutorial on
how to connect your Demo/Real account to your MT4
app.

Tutorial video on how to connect your

Demo/Real account with MT4
⭕How to take my trade signals on your MT4 app (Video
tutorial)

I assume you reading this ebook is already on my

signal group? If you're not, kindly DM me and I'll send
you an invite link

👇
Click on the link below to watch this video tutorial to
help you with how you can confidently take my trade
signals.

Taking my trade signals tutorial video

⭕Common Forex Trading Mistakes to Avoid
Overtrading

Trading excessively and impulsively can lead to losses.

Ignoring Risk Management

Failing to set stop losses or risking too much per trade

can be detrimental to your trading account.

You have to stay disciplined in setting stop losses and

take profits

That's why I can't drop a trade signal without including

a SL or TP

Explaining further the dangers of ignoring risk

👇
management, click the link below to listen to the voice
note I sent to the students during the class.

Dangers of ignoring risk management Voicenote

Emotional Trading

Making decisions based on fear or greed rather than a

well-thought-out strategy.

Chasing Losses

Trying to recover losses quickly by taking impulsive

trades.
⭕Tips for Successful Forex Trading
Patience and Discipline

Embrace a patient and disciplined approach to

trading.

Keeping Up with Market News and Events

Stay informed about economic and geopolitical

developments that can impact the market.

This was why I dropped the site I use to monitor news

for you guys earlier. forexfactory.com

Continuous Learning and Adapting

Forex markets are dynamic; successful traders

continuously adapt their strategies.

This can't be overemphasised. I have mentioned it

earlier and I'm still mentioning again.

Thanks for your time as this brings us to the end of the

Basic Forex Education Course

Click the below 👇

link to listen to the last voicenote
message I sent to the students, where I explained some
other key things on how to start trading right away and
also how you can get the advanced version of this
course.

Last voicenote
Get in touch

+234-814-393-6077