1. INTRO 2 FOREX QUICK START TRAINING

2. WHAT IS FOREX? GBP/USD GBP/USD or
“Forex” is an abbreviation for “foreign exchange.”
If a tourist on a tropical island decides to exchange one currency for another, a forex trade has taken place.
All foreign exchange transactions involve two currencies.
In every instance, one currency is being bought and simultaneously, another currency is being sold.
(Definitions from “Naked Forex”)
BUY
SELL
SELL
BUY
GBP/USD or
GBP/USD

3. FOREX Liquidity Foreign Exchange New York Stock Exchange $22B Per Day
$5.3 Trillion Per Day
FOREX Liquidity
The Largest financial market in the World
New York Stock Exchange $22B Per Day

4. Market PARTICIPANTS
Interbank Market – set the pace for the market… determine exchange rates
Large Commercial Companies – companies do business internationally on a constant basis, they exchange those currencies back and forth and typically are relevant in the market on a day to day basis.
Governments – just like large commercial companies… governments are moving currencies constantly (governments are businesses)
Central Banks – affect the Forex market when they adjust interest rates to control inflation. They also intervene when they want to readjust exchange rates.
Spot Market/Retail Traders/Speculators – day traders, people speculating, investors, researchers, market analysts.

5. Advantages of forex trading
Little/No Commissions (commissions vary on your broker)
No Fixed Lot Size ( – 1.00 , etc)
As low as £25 account size to start ! (not recommended but! possible)
Low Transaction Costs (spread/bid/ask)!
24 hour market / 5 days per week ! Trade anytime from Monday to Friday.
Leverage!!! In Forex you can control large amounts of money with small capital. Allows you to keep your risk management tight w/ nice profit potential
High Liquidity ! Constantly high volumes of money exchanged daily.
Can get in and out of trade at any time!

6. THE MAJOR CURRENCIES Major Currencies Country Currency Symbol Europe
United States
Dollar
USD
Canada
CAD
Great Britain
Pound
GBP
Australia
AUD
New Zealand
NZD
Switzerland
Frank
CHF
Japan
Yen
JPY
THE MAJOR CURRENCIES

7. Foreign exchange
When a person wants to travel to a foreign country, they will need to exchange their money for the local currency of their destination. They usually make this exchange at the airport.
For example, if someone is heading to USA they would be swapping GBP for the USD.
The Focus is on ‘pounds and pence’, while in the USA the focus is on ‘dollars and cents’.

8. Unit of Focus (2nd digit after the point)
Trading With pounds & Pence
PROFIT
£1= £1.01
£10= £10.10
£100= £101
£1000= £1010
For every £1 exchanged in MAY you make 1p profit in JUNE
MAY
GBP/USD
£1= $1.34
JUNE
GBP/USD
$1.33=£1
-0.01cent
Unit of Focus (2nd digit after the point)

9. Trading With PIPS
In the Forex market the focus is not on the 2nd digit after the point, we focus on the 4th digit after the point. This is the smallest movement in price the market can make.
The term ‘Percentage in the Point’ or (PIPS) is the name used when calculating these small movements in the market.

10. Unit of Focus (4th digit after the point)
Trading With pIPS
PROFIT
£1= £1.01
£10= £10.10
£100= £101
£1000= £1010
For every £1 exchanged in MAY you make 1p profit in JUNE
MAY
GBP/USD
£1= $
MAY
GBP/USD
£1= $1.34
JUNE
GBP/USD
$ =£1
JUNE
GBP/USD
$ =£1
-0.01p
Unit of Focus (4th digit after the point)

11. Trading With PIPS $1.34000 $1.33999 $1.33998 $1.33997 $1.33996
£1 PER PIP $ $
10p
20p
30p
40p
50p $ $ $ $
DIFF
£100 PIPS $ $ $ $
FOREX
PROFIT
£1= £100
£10= £1000
£100= £10,000
£1000= £100,000 $ $ $ £1
1 PIP
1 PIPETTE

12. READING A QUOTE
You would buy the pair if you believe the base currency value will increase. You would sell the pair if you think the base currency value will decrease.

13. 0.01 MICRO LOT - $.10 per pip £53 0.10 MINI LOT - $1.00 per pip £533
1.00 STANDARD LOT - $10.00 per pip £5330
HOW MONEY IS MADE * This is AN example OF a buy… money can be made buying or selling a trend/move.
* about 7 days

14. 3 Pillars Of ANALYSIS
TECHNICAL – price movement, history, trends, patterns, support/resistance/zones
FUNDAMENTAL – economic, social, political influence
SENTIMENTAL – how other traders are reacting to the market, volume,

15. 10 SIMPLE TRADING RULES
Trade on DEMO until you have a PROFITABLE STRATEGY
DO NOT trade when you’re STRESSED, EMOTIONAL or DISTRACTED
Stick to ONE pair in the beginning and very gradually expand out into a second or third… otherwise you will become a jack of all pairs and master of none. Don’t be that trader! Focus and Master!
BE PATIENT
BE CONSISTENT – ROME WASN’T BUILD IN A DAY DAYS
BE PREPARED TO LOSE SOME TRADES…
NO FAILURE-NO PROGRESS (USE DEMO!)
Initially Stick to trading on Tuesday, Wed, Thursday - More predictable.
Spend 90% of your time studying, 10% executing
AND NEVER FORGET trading is 90% mental, 10% skill

16. 1 INTERESTING STATISTIC
74.8% of people are not profitable
25.2% of people are profitable
74.8% of people DO NOT backtest their strategy on a regular basis
25.2% of people DO backtest their strategy on a regular basis