What is Stop Loss and Take Profit?

Lesson No 9

In our lesson No 7 we have learned how to start our first trade through instant execution, there are two options in this case i.e Stop Loss and Take Profit.  In this lesson we will learn how to set stop loss and take profit limits and how these two options work. 

So, if you are going to buy any pair your take profit limit must be less than the price showing above sell button in case above sell button price is shown as 1.0525 then your take profit limit must be any value less than this e.g it may be 1.0500, now it is time to set your Stop Loss, if you have analyzed that market is fluctuating between 1.0495 to 1.0580 then your stop loss may be a little above 1.0580, it means that you have assessed that if price will go up till 1.0580 then there is chance that it will come back towards our take profit limit i.e 1.0500 and if it will go more beyond 1.0580 then there are chances that it will go more above this value and if it will keep going above it will increase our loss so we have set our loss on the limit very near to 1.0580 it may be 1.0585 so if market keep going on and it hits 1.0585 our stop loss limit will hit and our trade will be closed with a loss of almost 55 pips.  It will prevent your trade to incurred more loss if price goes upto 1.0700.  In case you have not set your stop loss limit and market goes upt 1.0700 then your loss will be 175 pips which is very high than 55 pips.

Stop Loss and Take Profit options make your trade automatic in case any of your limit is hit your trade will be closed automatically, in case you haven't set your take profit limit and price goes down till 1.0480 and you are not on your trade terminal and soon this price comes back to 1.0540 then it means you have missed a chance to earn profit, so either you have to stick to the screen to have keen eyes on your profit and you can close trade at any good profit or the other option is best i.e automatic trade with a take profit limit.  Same is the case with stop loss option.

Now its upto you that which options suites best if you have enough time and you are good to work online for more times and love to keep on looking market trends then you can chose other option i.e manual trading and you can close your trade at any time you earned good profit or can close at any point to avoid huge loss.  And if you are not so, then I will advise you to always do automatic trade with take profit and stop loss limits as it will not only save your time but will earn good profits for you.

Forex Trading - Learning

Forex Trading - Learning

Hello friends how are you, I hope all of your will be in good state of health.  Till now we have learned many things about forex trading, we have also learned about basics of Instant Execution order and stop loss and take profit limits.  In upcoming lessons we will learn more about how to place an order and how to set different options in pending order type.  So keep on visiting my blog and you will learn new things.  Also visit my youtube channel and watch videos how to practically carry out the forex trading.

WATCH VIDEOS

General Discussions

Lesson No 8

Till now we have learned some basics of forex trading like, introduction to forex trading, how to open account, what is MT4 and its interface and how to start first trade.  So friends I hope till now you have got enough information about forex trading and I hope that now you will be in a position to at least open your demo account and start playing and doing experiences with your demo account.

Friends remember, Forex Trading is not a game to make you millionaire over the night but it is a game of patience and hard work.  If you will lose temper and patience at an early stage of your forex trading then believe me you will lost your money and will bear a lot of loss to your capital.  You must, very keenly watch the market trends and then set  your profit and loss limits and place your order, after placing order wait for market trends so that it may hit your profit limit and you will gain profit.  It can take few hours or even few days or weeks to hit your profit limit if you will lose your temper in early stage you will not meet your target and will lost your capital.

You can watch videos on youtube channel to have general idea about forex trading.

How to Start your first trade?

Lesson No 7

Today we will learn how to make our first trade.  Friends please remember that before starting trade you must have some knowledge about the market, you must analyze or even you can use any signal providers service to asses the trends of the market.  But for now I am not discussing any technique or skills how to made a successful trade but I am going to just tell you how you can made your first trade irrespective of whether you earn a profit of got a loss.

So, you can double click on any currency pair to see an order window, there you will be shown two different prices i.e sell price and buy price with two buttons sell and buy in red and blue lines.  On the left side of that window you see a graph with two lines red and blue these lines are accordingly to the sell and buy buttons.  The difference between these two lines and prices is called spread.  Which means that if you are going to buy a currency with a price of 1.05256 $ when you will sell it broker will buy it with a price of 1.05250 which means a spread of 6 pips.  This is brokers commission.  In daily life you can examine that when we go to sell dollars to the currency exchanger he will buy it on higher rate and when you will buy it from him he will sell it on lower rate, this difference of buy and sell is called spread and commission in forex trading.

There you can see few options like you can select any currency pair from this order window.  You can see different options of order window as shown in the image below.  You can select currency pair, volume of your trade your order type instant execution or pending order. Take profit, stop loss, deviations and buy and sell options.

You can insert any comments in comment box for identification of your order in trade tab.

Here we will discuss instant execution first, as it is easy to understand and at very early stage you must learn about instant execution first.  Now if you asses that price will go down, you must select take profit limit below the blue graph line for instance you can select any value below 1.0048, it may be 1.0040 or any value below 1.0048, then press sell, it means that you are going to buy a pair at your selected price i.e 1.0040 and you will sell it at current buy price that is 1.0051.  It means that when your buy price i.e 1.0051 will hit the price 1.0041 your trade will automatically execute and close with a profit of 8 pips i.e difference between your buying and selling price i.e 1.0051-1.0051 = 10 pips.  In this case if your volume was 1 then you will earn 10 dollars for profit of 8 pips, and if your volume was 0.10 the your profit will be 0.10 dollar and if your volume was 0.01 which is the lowest volume lot then your profit will be 0.01 dollars.  If the volume of your trade will be higher your profit will be higher and if the volume will be lesser your profit will be lesser.

This was instant execution with a take profit option, but after placing your order if you are watching that market is going more down you can change your take profit limit to any other appropriate take profit limit.  In this case we have pressed "Sell button", in next example we will make a trade with buy botton.

If you want to press buy button then you must set your take profit limit above red graph line i.e in this case 1.0048, you can set any value above this value for instance we can select 1.0058 with a volume of 1 lot size.  In this case it means that we have bought a currency pair with a price of 1.0048 and want to sell it with a price at 1.0058, in this case when blue line will hit the limit i.e 1.0058 your order will execute and details will be as under:

            Buying price             1.0048

            Selling Price             1.0058

            Profit in pips              10

            Profit in dollars         10 if volume was 1.

In case market moves opposite of your expected direction you will face a loss 1 dollar for each pip value goes below the buying value.

I hope you have understood how to start your first trade.  I have started a youtube channel for forex trading training you can visit it and watch the videos for better understanding of forex trading.  Youtube channel link is WATCH VIDEOS please watch the videos and subscribe the channel so that you can get notification of future videos.

Metatrader 4 user Interface:

Lesson No 6

It is very important to be familiar with the user interface of any software to use it efficiently and effectively.  So today we will discuss user interface of metatrader 4 software.

When you open MT4 software, you will see following window:

This is the main interface of MT4 software, at the top of the window you can see status bar which shows your account number and type of the account, it also shows your broker name if you have registered with a any other broker than metatrader.  Account number and account type is highlighted in red box above.

Green box is menu bar which contains software main menu controls like, file, view, insert, charts, tool, window and help. It is shown in green box in the image above.  Then below this there may be one single or two rows of tool bar which have all forex related tools like different indicators, time and zoom tool, auto trading tool and many other tools.  It is shown in dark blue box.

In the main area of the window there are two portions one is market watch and other is graphs window.  Market watch contains list of all currency pairs, metal and other trading instruments with their as and bid prices.  Other part contains graphs window, you can select currency pair and drag it to graph window to see its graphs, you can increase or decrease number of graphs, you can arrange graphs in different arrangements.

At the bottom of the window there is a bar which will show your trades and trade history, it has some other components like news, mailbox, journal. Signals, code base, market  etc.  You can check these menus one by one to got familiar with all these so that you can use this software more effectively and efficiently.

You can download Ebooks for free and got more knowledge for Forex Trading.

FREE EBOOKS FOR FOREX TRADING

Which broker is best in Forex Market?

Lesson No 5

Mostly friends ask that which broker is best for forex trading, really very important question it is.  If you can't find a good broker you will face very hardships in your forex trading.  You must have to search for good trader who have following qualities / characteristics:

1. Lowest Spread
2. Maximum number of currency pairs
3. Easy methods to deposit and withdraw money
4. If you are religious and want swap free account then also search for a broker who offers swap free accounts
5. Who offers minimum deposit
6. Who offers bonuses for different programmes, like referral bonuses, contest bonuses etc.

You may search on the internet and check the authenticity of the brokers and select who suites you most.  There may be some restriction like few brokers are not available in your country or region, few brokers will not offer you local currency deposit and withdrawal, so you should have to cater all these requirements before registering with any broker.

What I searched and come to the conclusion is that FX TM is top level broker who has very good rating in the forex market, you can search its rating it is on the top of the list in Forex Brokers.  Even it offers referral bonus both to the referrer as well as to the person who is signing up with referral link.  You can earn upto 50 $ bonus by signing up from the link given below.

SIGNUP FOR FOREX ACCOUNT

After signing up from this you will have to complete few steps like provision of your identity documents and deposit of minimum 10$ for activation of your bonus.  After all these steps are completed you will be able to start trading without any hassle.

Online Support:

Most of the forex brokers offer online chat support to their traders.  This feature is very good as you can discuss any problem with the live chat support agents.  I have contacted support agents of different brokers are all very responsive but few of them have lesser knowledge while few are very competent in their job.

FX TM also have its mobile application which can be downloaded from the following and you can trade even from you office or car without any laptop or pc.  So please download it and install to have easy of access.

FX TM MOBILE APP

How to Create Forex Trading Account - Practical

Lesson No 4

Friends today we will learn how to create a live / real account of MT4, MT5 platform.  So first of all you should download MT4, MT5 platform according to your operating system i.e Windows, Mac, Apple or android etc.  You can download the software from the link given below, click and download.

DOWNLOAD MT4 SOFTWARE

After download right click on the exe file and run as administrator.  In few seconds your software will be installed.  After Installation by default it will be opened on your window screen and its User Interface will be in front of you.  We will discuss user interface in some other class.

So, now we will start our today's topic how to create account on MT4 and MT5.  Click on file from main menu and then select "Open an Account" as shown in image one, it will take you to the next window as shown in image two.

Image 1

Image 2

Now search your broker, select it and press next button:

Image 3

On the next screen you will be asked to select your account type, either you want to open a demo account of a real account for trading. Select real account for trading and press next:

 Image 4

On the next screen you will be asked to provide your personal details please fill the details of press the button next as shown in the image below:

  

Image 5

Complete the process as per the images shown below:

Image 6

Image 7

 Also attach your identity documents as per image 6, complete details in image 7 and press Next.

Image 8

Fill out your experience in the given fields, accept the agreement and you are almost done, Click next to proceed to the final finishing step.

Image 9

On final screen your login details password and other details will be shown as shown in above image, remember all these information which i have entered in these fields are fake just to show you how to create a real account in real scenario.  You must enter your real details and must kept your login and traders password secret so that no body can spoil your account.

Image 10

Now you can login to your real trader account, but your account will be limited untill your identity if verified which you have provided with the identity documents.  Now you are to login to your brokers official website and to deposit funds to your account so that you can start trading.

But i will suggest all of my friends that please please, don't start trading with your real account untill you have experience with forex trading.  For getting experience and training you may start with a demo account which can also be opened with the same procedure but in just two steps i.e enter your email and other details on first screen and then press next, your account will be created.  Now start doing practice with your demo account so that you can have adequate experience in forex trading and can learn techniques to earn maximum revenue / profit from your forex trading.

How to Create Forex Trading Account

Lesson No - 4

In this lesson we will learn how to create Forex Trading Account?

First of all we must know that there are how many types of forex accounts.  So friends there are mainly three types of forex trading accounts:

1. Demo Accounts
2. Bonus Accounts
3. Real / Live Accounts

Demo Accounts are aimed to provide training to new traders without any possibility of lose in trades.  These accounts of virtual money and provides opportunity to the traders to start trading and do experiments and learn new things. Creating demo account is very simple, whenever you download MT4, MT5 trading platform you will got a demo account with it, but it is not by default opened then you can create it  In next lesson we will discuss details about how to create account in practical.  In the meanwhile you can download MT4 software and install it on your system.

DOWN LOAD MT4 SOFTWARE

How Much Capital Required to Start Forex Trading?

Lesson No - 3

It is an important question that how much capital is required to start forex trading?.  To be very frank there is not limit of capital required for forex trading even you can start with 1 dollar and even there are brokers those who are offering to start forex trading without any capital.  They ask you to contribute on their forums and earn some bonus and start trading.  But to be very true starting trade from 1 dollar or even by less than 100 dollars or with bonuses it is very difficult to survive in a very large forex market.  If you have very little capital you will have to work very very hard and to wait for a long time to gain some good profit.  MT5 forum is good to start contributing and earning good bonuses to start forex trading.  You can signup by clicking on banner below of on the link SIGN UP and earn bonus.

But if you are really short of capital and want to start your forex trading business then you can signup for these forums and can earn bonuses for starting your forex trading business:

SIGN UP and Earn Bonus

So in next lesson we will learn how to create an account for forex trading account?

How Forex Trading Works

Lesson No - 2

So friends, once again I am here with Basic Forex Trading Course with our Lesson No 2 How Forex Trading Works?

As we have discussed in our first lesson that forex markets are opened 24 hours and 5 days a week.  It remains open at 5 pm EST on Sunday till 4 pm EST on Friday.  There are four major session of forex market:

1. Sydney Session
2. Tokyo Session
3. London Session
4. New York Session

Forex Market opens at 5 pm EST with Sydney Session and after two hours at 7 pm EST Tokyo session overlaps Sydney Session, at about 8 am EST London Session starts and at about 1 pm EST New York Session starts and same circle runs 24 hours. 

Forex Market has a liquidity of about 5 Trillion Dollars so it is most volatile market and have alot of opportunities for the traders to earn good profits but earning profit is not as easy as some brokers advertise.

If you are going to start forex trading you must choose your hours according to above listed hours so that you can do trading as per your desire.  Mostly of the trading is done during London and New York sessions.  Mostly traders are interested to do trades during these two sessions.  Specially initial two hours of London Session and last 4 hours of London Session which are overlapped by 3 initial hours of New York Session have alot of trades.  However Sydney and Tokyo session also have good trading opportunities but London and New York session are favorite of traders.

Forex Markets mostly work on foreign currency pairs there are 8 major pairs and some minor pairs,  Except currency Forex Markets traders in metal and bitcoins also. Following are major pairs of forex markets:

Major Pairs:

1. EUR/USD
2. USD/JPY
3. GBP/USD
4. USD/CHF

Minor Pairs:

Followings are Minor Pairs of Currency:

1. EUR/AUD
2. GBP/JPY
3. GBP/CAD
4. NZD/JPY

Forex Trading Basic Training

In this section I will, start posting valuable information and basic training about forex trading.

So Please Keep in touch and you will find valuable information about forex trading.

Lesson 1:

So friends lets start with our first lesson i.e What is Forex Trading?

Mostly friends ask following questions about forex trading:

1. What is Forex Trading?
2. How it works?
3. When Forex Trading Market opens and when it closes?
4. Is there any holiday in Forex Trading?
5. How much capital is required to start forex trading?
6. Who can start forex trading?
7. How to start forex trading?
8. Which broker is good in forex trading?
9. How to open a Forex Trading Account?
10. How to learn techniques about forex trading?

and much more, there is lengthy list of questions that are asked daily on google search about forex trading.  So today we will start a course with the name "Basic Forex Trading Course" for all beginners of forex trading so that they can get all required information and answers to all questions.

Today we will start our first lesson "What is Forex Trading"?

What is Forex Trading?

Mostly friends ask a question about forex trading that what is forex trading.  Today I will tell you a short introduction of forex trading so that you can clear your concept about forex trading.

So friends I hope all of you know about local stock exchanges like, London Stock Exchange, New York Stock Exchange, Australian Stock Exchange, New Zeeland Stock Exchange etc.  All these exchanges work on local time of that specific country mostly in day time i.e from 9am till 5pm and trading is only open for citizens of that specific country, but contrary to this Forex Trading is totally different.  Forex Trading is open 24 hours a day and 5 days a week.  Anybody can do Forex Trading, there is no restriction of citizenship of any specific country or region in Forex Trading.  However there are some specific brokers in each country and these brokers helps traders in forex trading and take their commission.

So I hope friends now you have got the answer of your question that what is Forex Trading?

For my friends from India and Pakistan are those who understand Urdu and Hindi I have shoot out a video about the Introduction of Forex Trading which is available on you tube link is give below:

Introduction of Forex Trading - Urdu / Hindi

In future I will shoot same video in English language for my friends those who don't know Urdu or Hindi.  So please Subscribe to my you tube channel so that you can get new videos about Forex Trading.