Forex Trading Orientation

A Comprehensive Guide for Beginners

🌐

1. Introduction to Forex

What is Forex?

The Foreign Exchange market is the global marketplace for exchanging national currencies. It is decentralized and operates 24/5.

$9.6T Daily Volume
24/5 Market Hours

The Market Ecosystem

  • 🏦 Commercial Banks: The "Interbank Market" (Top Tier).
  • 🏛️ Central Banks: Control money supply & interest rates (The Fed, ECB).
  • 📈 Hedge Funds: Speculators managing large capital.
  • 🏢 Corporations: Exchanging currency for business (Apple, Toyota).
  • 👤 Retail Traders: Individuals (Us). The smallest participants.

2. Core Concepts

Currency Pairs

Currencies trade in pairs. A "tug-of-war" between two economies.

  • Majors: EUR/USD, GBP/USD, USD/JPY
  • Crosses: EUR/GBP, GBP/JPY

Reading a Quote

EUR / USD = 1.1050

Base: The currency you buy/sell.
Quote: The counter currency.

Mechanics: Pips & Leverage

The PIP (Percentage in Point)

The standard unit of movement. Usually the 4th decimal place.

1.1050 -> 1.1051 = 1 Pip

⚠️ Understanding Leverage

Leverage allows you to control large positions with small capital (e.g., 1:100).

Risk: It magnifies both profits and losses equally.

3. Market Sessions

The market is a relay race between financial hubs.

Sydney Opens 5PM EST
Tokyo Asian Session
London The Volume Beast (Starts 3AM EST)
New York High Volatility (Starts 8AM EST)

Power Hour: 8AM - 12PM EST (London/NY Overlap)

4. Analysis Types

Fundamental

The "Why". Economics, Interest Rates, Inflation, Employment (NFP).

Technical

The "What". Charts, Trends, Support & Resistance, Candlesticks.

Sentiment

The "Mood". Risk-On (Greed) vs. Risk-Off (Fear).

6. Risk Management

The Holy Grail of Trading

  • ✅ Protect Capital First: Survival > Profit.
  • ✅ Stop Loss: ALWAYS use a hard stop loss.
  • ✅ The 1% Rule: Never risk more than 1% of equity per trade.
  • ✅ Risk:Reward: Aim for at least 1:2 (Risk $10 to make $20).

7. Trading Psychology

The Cycle of Doom

Optimism ➡️ Greed ➡️ Fear ➡️ Regret ➡️ Despair

Key Disciplines

  • Process over Profits: Did you follow the plan?
  • Journaling: You cannot improve what you do not measure.
  • Patience: The best trade is often no trade.

Thank You

Be equipt with the full knowledge base.

📄 Download Comprehensive Guide (PDF)
1 / 10