OPPORTUNITIES IN FOREX TRADING
In forex the three basic secrets of profitability are to
- make pips.
- Keep pips.
- Repeat 1 and 2.
In September, 2011 someone told me and my beautiful wife about forex trading. The person promised to train me but did not. I searched online and got a company that is willing to train me. I travelled five hours to Toyin Street, Ikeja, Lagos for the training. The training lasted five days. We were done with the basics in 3 days. The rest was left for me to find my way. Maybe if an experienced person was very close by me I would have made consistent profit but that was not the case. I had to make do with the basics I was taught. Since 2011, I have made some profits and made some losses too. My profits would have been more than my losses if I had an experienced person I could reach easily. Anyway I am now on the profit trend for over twenty-four months in a row. Right now I make an average of 5,000 naira daily. It’s as easy as that.
Fundamental analysis, technical analysis and sentimental analysis are the 3 ways of trading. One of the key technical analysis which I learnt with 10, 000 naira some years ago is the pin bar system. It’s a trend reversal indicator. A fundamental analysis I learnt for free which am enjoying till date is the news fade strategy. This strategy states that after a major news release like the NFP on the first Friday of every month, the market will react in favour of the news and then will retrace after about 15-20 minutes when the news starts fading. The strategy is to wait 15 minutes after the news and then enter the market in the opposite direction of the movement.
What is forex?
Buying and selling money online. Profit can be made when you buy or when you sell. Forex is simultaneous buying of one currency and selling of another currency.
TERMS USED IN FOREX
- Trading platform/station: Where all the activities occur. Like a shop.
- Trend: The direction of market price. Trend can be up or down.
- Position: Action you are taking in the market per time. Whether you are buying or selling. The trend determines the position.
- Currency pair: Two currencies traded. E.g. Euro and dollar, pound and dollar.
- Currency quote: Exchange rate. Numerical figure in which currencies are priced or valued.
- Base currency: The first currency in a pair, i.e. to the left and is usually the stronger. GBP/USD.
- Counter currency: The second currency in a pair, i.e. to the right and is usually the weaker. GBP/USD.
- Leverage: Advantage or privilege given by a broker to traders with small capital to be able to partake in the market. 1:, 1:10, 1:100,1;500, 1:1000.
- Equity: The balance a trader is having as trade is going on.
- Margin: art of your balance that you use to buy currency at a given time or to place a trade.
- Take profit: Order a trader gives the broker to stop a trade when a particular profit is made.
- Stop loss: Order given by a trader to the broker to close a trade due to loss.
- Pip: Percentage change in price. Price index point. A unit change in price.
- Bullish trend: Up trend. Price going up.
- Bearish trend: Down trend. Price going down.
Traders look for the trend. The trend is your friend.
For more on forex, forex training and signals including money management, contact me directly.