Hello and welcome to the part two of the Forex trading tutorial. Incase you missed the first part, you can read it by clicking this link >>> http://victoragina.com/forex-trading/
DAY 2 (Final Class)
Today, we’d learn how to…
1. Setup our Demo Trading app,
2. How to buy and sell currency 💱 pairs
3. How to copy, paste and profit from experts trade signals.
First step to Forex trading, go to your Google Playstore and download “Meta Trader 5”.
Upon installation, the app will automatically create a demo account for you with $1,000,000 virtual cash to start trading with. Don’t get so excited oh, it’s not real money 🙂
Just follow the on-screen instruction to have your account set up, it’s nothing complex! Once you are logged in, the information in the picture below is what you’d see:
Once you’re logged in, this should be the first page you will see.
Let me explain each of the icons below from 1, 2, 3, 4.
Is the Quote page where you find the currency pair to trade. If you can’t find a particular pair on this page just click the + at the top corner to add new pairs to this list
And if you want to remove any pair, click the ✏ icon at the top right corner as well
Displays the trade window where you can monitor and analyze price movement of the pair you’re currently trading.
Icon 3 – Trade View
This is where you see all your running trades and positions that are currently active or pending. It shows how they fluctuate in blue (profit) or Red (loss) at every change in price.
This page also gives an overview of your opening, current and closing balances.
Shows the history of all your trade transactions.
Go to ‘Quotes’ and click on EUR/USD pair (for example)
Then select ‘New Order’
Choose ‘Instant Execution’ if you want to order at the current market price.
But if you want to place an order pending the time the market reaches your desired price, then you can use the options of
Buy Stop, Sell Stop, Buy Limit, Sell limit
The second red circle in the image above represents your LOT SIZE (remember the previous training on lot size?)
Depending on the amount you’re trading with, use this risk management rule to choose your lot size and protect your fund.
⭕Risk Management Chart
💷 $100-$400=0.01 lot
💷 $500=0.02 lot
(Max 5 trades)
💷 $1000=0.05 lot
(Max 5 trades)
💷 $1500=0.06-0.07 lot
(Max 6 trades)
💷 $2000=0.08-0.1 lot
(Max 7 trades)
💷 $2500=0.1-0.15 lot
(Max 7 trades)
💷 $3000=0.15-0.2 lot
(Max 7 trades)
📣 Always Use proper risk management
The third red circle from the last figure above represents the Bid price (left) and Ask price (right).
Finally, SL is your Stop Loss
TP is your Take Profit
Bid Price & Ask Price
The ‘BID’ is the price the market is willing to buy a specific currency pair. At this price, a forex trader can sell the base currency. It appears on the left side of the quotation.
See example below…
If the EUR/USD is equal to 1.0992 / 1.0994, the bid price is 1.0992 meaning you can sell one Euro for 1.09921 US Dollars.
Stop Loss & Take Profit:
A stop loss is an easy protection mechanism that you add to your order (either when you place your order or soon afterwards).
You want to buy EUR/USD at 1.3100, but want to make sure you don’t lose your money if the market goes against you, so you would place a “stop loss” at 1.3050 so that if the market falls, you only lose 50 pips.
The advantage is that it exits your order automatically, you don’t have to sit there monitoring the market (and you’ll be happy to have used a stop loss if your internet connection or computer experiences a malfunction!).
ALWAYS use a stop loss with all of your orders.
Take Profit works the same way to help you lock your profit automatically when price goes in your favour and reaches your set target for the particular pair.
Pips (or Points)
This is the smallest unit of a price change in any currency pair, representing the 4th digit after the decimal point (example: 0.0001).
Although some brokers quote using the 5th decimal but it really doesn’t affect the price as it changes very quickly.
Depending on the context, it’s usually one basis point (0.0001 or 1/10,000 for the EUR/USD, GBP/USD, USD/CHF currency pairs, and 0.01 for the JPY currency pairs). In forex, pips are used in measuring profit or loss in a given trade.
To calculate the pips from the above example of EUR/USD, simply subtract 1.0994 – 1.0992 = 0.0002 then move 4 decimal places or multiply by 10,000 which gives us 2pips. In Japanese Yen (JPY) currency pairs, pips are calculated as the second digit after the decimal point.
A lot is the standard transaction in the Forex market which equals 100,000 units of the base currency. Below are the most common lot sizes…
Standard lot = 1.00 = $10 per pip for the EUR/USD
Mini Lot = 0.10 = 10,000 base units = $1 per pip for the EUR/USD
Micro lot = 0.01 = 1,000 base units = $0.10$ per pip for the EUR/USD
Nano lot = 0.001 = 100 base units = $0.01 per pip for the EUR/USD
1. Look at the image above of EUR/USD and tell me the trade.
Is it upward or downward?
Upward means BULL
Downward means BEAR
If the market is bullish it means price is rising becos the market is buying .
The right thing to do is follow the trend and also buy.
But if it’s bearish it means price is falling bcos the market is selling.
You too sell.
Now let’s pick a trade using this random signal alert…
Entry Price: Market Execution
Stop Loss: 1.1576
Take Profit: 1.1582
After setting these parameters, click the BUY button below.
Rule: When buying, set SL below market price and TP above Market price
When Selling, set SL above market price and TP below market price
After placing your order, go to ‘trade’ view to see your profit or loss position.
Your trade will definitely start in LOSS (red) because of the spread that has been charged.
I hope you enjoyed this tutorial. Relaying this in text might not be too easy for some people while others would have been able to gain a lot from this text and image based tutorial. What if you could have access to our “premium Forex video training”, would you be interested?
If YES, you can join our FOREX Academy and get FULL training, mentorship and support.
Watch this short video to learn more about our Forex Academy…
What you will get in the Waawu Forex Academy…
1. Over 30 recorded videos that will guide you from beginner to Pro Forex trader
2. Weekly Live Sessions with expert traders
3. Access to our Live Trade houses across Nigeria
4. Daily trade signals that you can copy, paste and profit with.
5. Our CTRL+CV mobile app that notifies you every time there’s a new trade and news in the academy.
and much more…
Want to get started right away and enjoy 50% discount when you sign up through our PROMO plan? The beauty of this promo plan is that it accommodates Students, Youth Corpers and every other person. The price was subsidized to allow everybody enjoy money making from Forex trading.
This promo offer runs till December, you can get started with as little as N10,000 if you are a student, to get access to all the required information, click here >>> http://victoragina.com/student/
Got questions? Feel free to drop it in the comment box or email me on email@example.com
You can also reach me on 08037193840.