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Forex
Market run within a network of bank 24 hours 5 days a week
Minimal investment
Account at @ $200
Minimal time commitment
3-6 hours a day is more than sufficient.
Need hard work
No employee, no office or inventory
Recession proof
EUR Euro
USD US dollar
Successful traders only trade the most common and liquid 7 pairs:
EUR/USD = 1.3505
Base currency
If you want to buy Euro, you need to pay 1.3505 US Dollar. If you want to sell 1 Euro you would
receive 1.3505 US Dollars.
While all other pairs are quoted to 4 decimal places (1 pip = 0.0001) , the JPY pairs are quoted to 2
decimal places
USD/JPY = 98.73
Pip is the smallest change in value for any given forex quote.
When you buy one standard lot of EUR/USD, you are buying 100,000 Euros with US dollars.
STANDARD 100,000
MINI 10,000
MACRO 1,000
NANO 100
1 LOT = 100,000
Profits/loss =
No of Pips
No. of lots
$value per pip per standard lot is USD 10 OR about USD10 for most of the actively traded pairs ( i.e.
EUR/USD, GBP/USD, AUD/USD)
GO TO https://www.mtpredicton.com/Pip-Value-Table to find out $value per pip per lot for all major
currency pairs.
Bullish in trend
3550-3510 = 40
Profits = Number of pips * $ value per pip std lot * number of lots
= us$400
Without leverage, you would have to invest USD 135,100 to earn USD 400 (0.29% Return). Forex
brokers allows you to leverage 1:100 times.
We employ leverage of 1:20 we just need to invest of a margin of US$6,755 (5% of position of the
position size). Our return becomes $400/6,755 =5.9% return.
SELLEUR/USD AT 1.3560
3560-3520 = 40 PIPS
Profits = Number of pips * $ value per pip std lot * number of lots
= us$400
POWER OF LEVERGE
Market price is leading indication of all fundamental data (economic and political news)
candle
Moving average indicates trend direction and support and resistance level.
A simple moving average is the simple average of the price over a pre-defined number of periods.
An exponential moving average (EMA) is a weighted MA that applies more weight to the recent
prices.
15 minutes
50 moving average.
Moving averages
18
50
100
200
18 moving average is above 50 and 50 is above is 100 and 100 is above 200 and this is clears
uptrend.
6EM
Resistance zones.
When a stock fails to break resistance, it creates bearish momentum (possible short opportunity)