The key to being rich is learning how to become rich first. Everyone has their own idea of what it means to be rich and have financial freedom and the information Hands Free Forex Trading for Beginners will start you on your journey to getting what it is you want from Forex trading.

Use Hands Free Forex Trading for Beginners as an overview or a guide if you will, for what to study and learn first to become consistently profitable from investing and trading as a self-directed Forex beginner.

This book provides straightforward, easy to understand and easy to apply advice, tips and techniques that can be the backbone of any self-directed beginner Forex traders success in the financial markets.

Hands Free Forex Trading for Beginners cuts right to the core and lays out a progressive foundation of principles on which you can begin trading the financial markets for high profit as long as you have done the education and training the right way from the first day.

This book will start any brand new investor, swing trader or position trader the right way to begin driving their money train down the right tracks directly to the bank. Also, a large number of the components that comprise the GDP report are known in advance of the release.

Section 02 Key drivers of currency movements Most volatile news reports That traders should follow closely Volatility and profits in forex are measured in pips. The bigger the volatility the more pips and money a trader can make from a certain trade.

Keep this chart by your side and make sure to mark these reports in your calendar! Unemployment indicator, showing if U. employment is growing or not. interest rates. Inflation indicator. for month prior to the release of the report.

Section 02 Key drivers of currency movements Economic indicators What you need to know about them Part 1 What are Economic Indicators? Economic indicators are snippets of financial and economic data published regularly by governmental agencies and the private sector. These statistics help market observers monitor the economy's pulse - so it's no surprise that they're followed by almost everyone in the financial markets. With so many people poised to react to the same information, economic indicators have tremendous potential to generate volume and move prices.

It might seem like you need an advanced economics degree to parse all this data accurately - but in fact traders need only keep a few simple guidelines in mind when making trading decisions based on this data. Mark Your Economic Calendars Watching the economic calendar not only helps you consider trades around these events, it helps explain otherwise unanticipated price actions during those periods.

Consider this scenario: it's Monday morning and the USD has been falling for 3 weeks, with many traders short USD positions as a result. On Friday, however, U. employment data is scheduled to be released.

If that report looks promising, traders may start unwinding their short positions before Friday, leading to a short-term rally in USD through the week. Know exactly when each economic indicator will be released. You can find these calendars at the New York Federal Reserve Bank's site. What does This Data Mean for the Economy? You need not understand every nuance of each data release, but you should try to grasp key, large-scale relationships between reports and what they measure in the economy.

For example, you should know which indicators measure the economy's growth gross domestic product, or GDP versus those that measure inflation PPI, CPI or employment strength non-farm payrolls. Not All Economic Indicators can Move Markets The market may pay attention to different indicators under different conditions.

That focus can change over time and from one currency to another. For example, if prices inflation are not a crucial issue for a given country, but its economic growth is problematic, traders may pay less attention to inflation data and focus on employment data or GDP reports.

Section 02 Key drivers of currency movements Economic indicators What you need to know about them Part 2 Watch for the Unexpected Often the data itself may not be as important as whether or not it falls within market expectations. If a given report differs widely and unexpectedly from what economists and market pundits were anticipating, market volatility and potential trading opportunities may result.

At the same time, be careful of pulling the trigger too quickly when an indicator falls outside expectations. Each new economic indicator release contains revisions to previously released data. Don't Get Caught Up in Details While your macroeconomics professor may appreciate all the nuances of an economic report, traders need to filter data to focus on the numbers that can inform their trading decisions.

For example, many new traders watch the headlines of the employment report, for example, assuming that new jobs are key to economic growth. That may be true generally, but in trading terms non-farm payroll is the figure traders watch most closely and therefore has the biggest impact on markets. Similarly, PPI measures changes in producer prices generally - but traders tend to watch PPI excluding food and energy as a market driver. Food and energy data tend to be much too volatile and subject to revisions to provide an accurate reading on producer price changes.

There are Two Sides to Every Trade Just remember that no trader's knowledge can be complete all the time. You might have a great handle on economic data published in Europe - but there are times when data published in the U. or Australia might have a surprising impact on your currency market.

Doing your homework before trading any currency can help you make better decisions. unemployment rate is expected to increase. Imagine that last month the unemployment rate was at 8. With a consensus at 9. economy, and as a result, a weaker dollar. They will go ahead and start selling off their dollars for other currencies before the actual number is released. What the heck! This is because the big players have already adjusted their positions way before the news report even came out and may now be taking profits after the run up to the news event.

The market players thought the unemployment rate would rise to 9. Now that the report is released and it says something totally different from what they had anticipated, they are all trying to adjust their positions as fast as possible. This would also happen if the actual report released an unemployment rate of The only difference would be that instead of the dollar rallying, it would drop like a rock!

Since the market consensus was 9. looks a lot weaker now than when the forecasts were first released. Instability in the world likelihood of Clinton becoming the next market prods investors to pull out of their president, Lim Say Boon, chief investment financial positions, leading to currency officer at DBS Bank Ltd.

in Singapore, wrote depreciation. in a report. The Super Tuesday results are being seen as "an outcome for continuity over the disruption threatened by Trump and Sanders," he said. You must remember that investors hate uncertainty! Similar effects have occured with Clinton and Obama.

For Trump the upward trend was also there due to his promise to lower taxes and increase government spending on infrastrucure. Section 02 Key drivers of currency movements Market psychology The golden rule of economic indicators The currency rates often start moving even before the actual data comes out due to forecasts and market sentiment!

Sentiment analysis is a kind of FX analysis that concentrates on indicating and consequently measuring the overall psychological and emotional state of all participants of the foreign exchange market. This kind of Forex analysis strives to quantify what percentage of FX market participants are bullish or bearish, in other words being optimistic or pessimistic. If the forecast promised a positive growth and the actual data comes out even better than forecasted, it amplifies the rise of the currency even more.

Overlap between two The Foreign Exchange market operates 24 hours a day, making it nearly impossible sessions for a single trader to track every market Generally, whenever there is an overlap in movement and respond immediately at the market e.

In period. For instance, every morning during order to devise an effective and London Open session. Euro pairs are active time-efficient investment strategy, it is and if you have a good strategy, you could important to understand how much get pips. liquidity there is around the clock to maximize the number of trading opportunities during a trader's own 2. News Release market hours. Fundamentals drive the market. During News Release, volatility is experienced and Besides liquidity, a currency pair's trading some pairs could move over pips range is also heavily dependent on depending on the type of news.

For example geographical location and macroeconomic Non-Farm Payroll is the most volatile news factors. release and dollar based currency pairs could move hundreds of pips in seconds.

Knowing what time of day a currency pair However, trading news is risky if you are not has the highest or narrowest trading knowledgeable about it. volatility will undoubtedly help traders improve their investment utility due to better capital allocation. Central Bank Govenor's Speech High volatility offers lucrative profit Speeches from these guys could make pairs potentials to short-term traders. Lower go hundred's of pips and even change volatility under 80 pips per day is better market sentiment with effects lasting into for risk-averse traders, because there are months.

However, its risky to trade these less iregular market movements caused by speeches except you are subscribed to some aggressive intraday speculation. Section 03 Forex timing What Are the Best Times to Trade Forex We strongly advice you to avoid all resources that traders can then purchase currencies from tell you Forex market is a fairy-tale place where different continents.

The timing in forex trading is is usually the most active as it involves many crucial! countries of the European Union. The US market comes next, so the time when the London session The Forex market is open 24 hours a day, but it is intersects with the US session usually provides the not active all this time!

In Forex trading money is biggest returns. Expert traders consider 10 AM to made when the market is active when traders are be the best time as this is the period when the bidding on the prices so it is crucial for you to London market is preparing to close the trades learn about the most productive hours of the day and traders are getting ready to move to US and of the week for trading the forex!

This creates big swings in currency prices thus opening great opportunities for profit. There are three major trading sessions of the Forex market: London, US and Tokyo session. Fridays are busy as well, but only until PM and during the second half of the day the movements can be very unpredictable. While it is crucial to understand when is the best time to analyze the charts and make the bids, it is equally important to know when NOT to open positions.

A thin market also comes with higher commissions spreads for each trade due to the decreased liquidity. In simple words: if you want to sell a currency, it is harder to find potential buyers, so the broker or bank must increase the commission as it takes a risk of not finding a buyer so quickly.

A good example of chaotic trading is shortly before, during and shortly after important news events. In these times of uncertainty, the currency rates can swing wildly and unpredictably, thus messing up trading by creating execution lags, triggering stop-loss orders, etc. Usually, the higher the liquidity, the lower the volatility, and therefore the tighter the spread Spread is like a commission that you pay for the trade.

However, even major pairs can experience wider than normal spreads during volatile periods, such as interest rates announcements, GDP reports, unemployment figures, to name a few examples. There will also be wider spreads during off market hours, when there is only a fraction of the participants in the market, so the liquidity is lower.

This can be seen when the markets open for the Asian session, at GMT Sunday, for example. This widening occurs typically around news announcements or off-market hours. Most forex brokers allow you to trade all weekend, but spreads will be significantly wider during weekends when liquidity is almost non-existent.

Dealing desk or market making brokers are going to widen their spreads coming into economic announcements to offset the risk they take on by filling orders. Unfortunately, banks do the same thing, so an average forex broker could be better, but only marginally.

What happens before or during important announcements. The volatility jumps before important anouncements and the drastic movements can hit the stop-losses, resulting in a lost trade and investment. wild swings based on rumours etc. So I generally close the position or wait out the increased spread unless it is really pumping. This should not be a problem if you are trading the higher time frames as your stop will probably be quite large and so increasing it by 5 or 10 pips probably won't be too significant risk increase better yet - factor in the widened spread when you calculate your position size as you know that if the trade works out you will be holding for a few days or more, in which time there will be anouncements.

If you can't be at your computer when the news anuncement hits, I would suggest leaving your stop wider for the periods that you can't manage the trade unless there are no announcements over that period. If you are trading lower time frames however, your stops will inevitably be smaller and the increase in stop size may substantially increase your risk.

In this case, you may have to decide to close the position before the anouncment or close enough of the position so that the increased stop will equal the same loss as the originally intended loss. But make no mistake - you will have to widen your stop. The spread will get you. Even if the announcement is in your favour, price generally whips up and down at least a few pips before taking direction. If your stop is anywhere near price just prior to news, chances are you will be taken out not matter what the result.

Just be aware of the anouncement times and factor this in when deciding wether or not to take a trade. It may often seem that these indicators are contradictory.

Analyses of longer time periods show tendencies, ignoring accidental changes, whereas daily, hourly ir minute graphs help in choosing the moment to open and close positions.

Example Multiple time frame analysis time X Let us look at a daily graph. What do most traders do when they see such a curve? Aug Sep Okt Nov Dec Conclusion For successful and precise market analysis, you must use at least time frames!

Section 04 Time frames Time frame choice of pros The shortest time frame that traders should start looking at when their trading day starts are daily charts, even if you are trading on a 5-minute time frame! The most common form of multiple time frame analysis is to use daily charts to identify the overall trend and then use the hourly charts to determine specific entry levels.

As a matter of principle, all good traders I know use 2—3 time frames 3 being the best spaced enough so that each timeframe above encompasses 4—8 bars from the lower time frame. Currency pairs that include the U. The bid is the price that a trader can sell the base currency while the ask is the price they can buy the base curren- cy. Spread refers to the difference between the two prices. The spread is measured in pips.

Most currency pairs- the base currency and quote curren- cy- have a pip value equal to 0. Find Out Here! Currencies are traded in pairs as their value is relative to one another. The first currency shown is the controlling one in terms of placing your order.

MAJORS are widely traded by beginners and profes- sionals alike. This is because they have the most liquid- ity, lowest spreads and the broadest range of move- ments. Unlike small currencies, majors are generally more stable. The economic and political institutions of these nations are generally long established and pre- dictable compared to other nations. Too much US Dollar exposure can lead to all your trades heading in the same direc- tion, a big problem if that direction is against you.

THE "EXOTIC" currency pairs are less traded and so much more costly to buy or sell. Leverage in Forex trading is all about entering borrowed capital into transactions. The money is borrowed from a broker who acts like a bank that fronts you some cash to invest, which in this case is to buy currencies.

This shows that the higher your leverage, the higher your chance of a better ROI. The stop loss order lets your broker know to sell a currency when it hits a certain set price. These stops work around the clock in the forex market, therefore, protecting your position when you are logged out of the system.

In addition, the strategic stop caps the losses while also protecting the profits. While the Forex market is open 24 hours a day, five days a week, trading is not always active during this entire time. So it is essential that you know the crucial hours and days of forex trading when traders are the most active. As a result, there are three active and in the afternoon overlaps with main forex trading sessions you should the opening of the New York or American be aware of; the Tokyo or Asian session, session, so there can be good opportuni- the London or Eurpoean session and fi- ties to trade forex and make a profit.

Seasoned traders considered 10am EST The busiest times are when these ses- to be the best time to trade forex markets sions overlap, for example, in the early as during this time, traders in London and hours of the morning in London, the trad- Europe are preparing to close their positions ing session in Tokyo is just winding down.

and traders are getting ready to make a European traders are getting to their move in the American session. As the focus desks and analyse and digest information shifts from Europe to the US, this often cre- from the Asian trading session, so early ates big swings in currency prices, opening 6am GMT is a great time to make trades up opportunities to profit. These days generally show the biggest movements in currencies as major data releases relat- ed to the economy are usually released on these days.

Fridays are busy as well, but only until 12am. During the second half of Friday, movements can often be unpredictable since major banks, hedge funds and financial institutions will close some of their positions for safety reasons over the weekend.

Share now 🙅🏻 When NOT to Trade Forex? Also, novice traders should be very careful with the Asion sessions. Let's look at the three most popular types of forex charts: line chart, bar chart, and candlestick chart. It is created by simply connecting the data points depicting the closing prices of certain periods with a line.

Therefore, they can track its closing prices accurately. They are also called the OHLC charts in reference to the Open, High, Low and Close values of the currency under consider- ation.

These charts are similar to bar charts only that they present the price information in an aesthetically pleasing graphic format. It also con- centrates more on the opening and closing prices of the trading period. Even if you don't have time to stare at charts all day long, you can spot great trading opportu- nities by simply viewing the news and economic calendar on a daily basis.

In other words, by performing fundamental analysis. Basically, all fundamentals are indicators of where investors intend to put their money and which currencies will be influenced as a result. All the drivers are divided in 4 major categories: central banks, state economics, political stabili- ty and natural disasters.

Politics Economics Central Banks Natural Disasters 👉 Public Statements 👉 GDP, inflation, debt 👉 Finance Circulation 👉 Hurricanes 👉 Change of Officials 👉 Sales amounts 👉 👉 Stability of governments 👉 Interest from investors 👉 Mandatory Reserve Funds 👉👉 Earthquakes Interest Rates Floods 💸 In the chart below you can see how the British Pound dropped because of the Brexit related events.

This was a great opportunity to make money shorting betting that it would decline the British Pound. ative for the associated currency since the price level is relatively higher than Since people possess skills, knowledge and inflation in other countries, diluting its experience, this human capital can be used value. Therefore, employment data ed, where a lower rate of inflation translates releases have a substantial effect on ex- to an improvement in purchasing power.

change rates. of that currency. unemployment rate should act to depress A high inflation rate discourages investment, the currency in question.

reduces the purchasing power of consum- ers and makes planning for the future more The most important employment data re- difficult. lease in foreign exchange markets is the US Non-Farm Payroll figures. Some other Conversely, a low and stable inflation rate important data releases are the unemploy- encourages investment, increases the pur- ment rate, participation rate and other labour chasing power of consumers and business- market statistics, all of which have a moder- es can plan for the future more easily.

ate to high impact on exchange rates. Share now 3 Trade balance 4 Quantitative easing Trade with other countries is a major part Quantitative easing is an unconventional of most economies and therefore the trade monetary policy tool that is used to expand a balance can affect the value of a currency.

goods and services, this will increase the demand for that currency and hence Money supply and inflation are linked, where its price. However, if an economy in- a higher money supply should translate into creases its imports over time, this in- higher inflation and lower purchasing pow- creases the selling pressure on that er.

The USA, Eurozone, Japan and the UK currency and it should depreciate over have all engaged in quantitative easing, with time. Also, the timing of their quantitative easing The trade balance is simply the ratio of programs has differed. If exports are higher than imports, then the country is said to have a trade surplus - in- cies to make trades on the forex market. geared up for more quantitative easing.

Also, the US Federal Reserve has recently indicated that further quantitative easing As with other indicators, trade balance may be necessary.

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Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. eliza salihu. Abstract Forexhero. Continue Reading Download Free PDF. You will not find long third upgraded edition. We received a lot of great watery essay type paragraphs here, just feedback about the first and second e-book actionable and easy-to-digest information.

thank you! For this new edition we have rewritten This e-book will help you learn Forex trading everything from the ground up. We are pretty skills in the fastest time possible! We made this ebook as the you have. Our program has shown interesting ultimate learning resource for ourselves and results: people with no previous financial hope you enjoy it too! market experience often delivered better performance than those with the experience! If someone teaches you something and it this fact is confirmed as well.

sounds really complex, they probably haven't taken the time to think through how to boil it down. Be careful with folks like that. There's a difference between being good at something and being good at teaching it. The currency pair price changes will generate your profits. It is better to invest in the currency of a country that is growing faster and fund it with a currency of a country that is growing slower.

When does it work The market is open 24 hours, 5. Read on to uncover deeper secrets about forex timing.

Spread point The difference between the sell quote and the buy quote in pips. The smaller the spread, the more liquid the currency! Section 01 Introduction and key concepts 5 advantages of forex Make money even in times of crisis While the stock market and commercial bank deposits are in deep depression during the crisis, Forex profits, because any change in currency can be used to make profit.

A falling market is as profitable for Forex trading as a developing one because unlike in stock trading you can short the falling assets. Work while lying in a hammock All you need to start making money is a computer or a smart phone and an Internet connection.

Your work space and goals are up to you! Easy rules Unlike the stock market with tens of thousands of different shares, Forex works with 8 basic currencies, which are the center of most trades. Moreover, there are significantly less factors that influence currency exchange rates than in the stock market. Section 01 Introduction and key concepts 3 main disadvantages of forex Most of other forex learning materials will tell you that forex offers an easy way to make money.

High risk to lose the whole position In stock trading, unlike forex, it is very unlikely that you will lose all the money when investing in the stock market. But the truth is, you struggle with finding enought time to do it all. Emmanuel Follow Follow their activities. This is also a good way to learn Forex strategies in a real-life trading environment. I believe the investors. This was a great opportunity to make money shorting betting that it would decline the euro. This is useful because the larger trade.

Leverage is shown as a ratio, for movement in currency rates can be very small, example profits and losses alike. Leverage allows you to trade with more money Stock market Forex market Maximum leverage from to Varying lot sizes Term Lot In Forex, all transactions can be conducted via standard, mini, and micro lots.

Each lot size accounts for a different measure of units of the base currency, which in turn presents a different pip value. Below is a simple chart to illustrate the differences in lot sizes, measured in units, volume for the major pairs where the base currency is USD.

Those traders who are looking to get started in the forex market should consider opening a mini account because of the smaller contract sizes. Term Spread The difference between the bid price and the ask price is called a spread.

Although these movements may seem insignificant, even the smallest point change can result in thousands of dollars being made or lost due to leverage. Again, this is one of the reasons that speculators are so attracted to the forex market; even the tiniest price movement can result in huge profit.

While the high degree of leverage used in forex trading magnifies returns and risks, a few safety precautions used by professional traders may help mitigate these risks.

Do you need more than strategy and only those with high risk , US dollars to open the trade? With tolerance should consider using big leverage. If you are a relatively cautious Leverage investor or trader, use a lower level of leverage with perhaps or leverage. Maximum leverage limits vary in different This is the amount that will be used to cover your potential losses. In other words, the countries, varying from to margin is the actual amount that you are Use Stop Loss orders! Stops can be used not risking to lose if the trade goes against you.

just to ensure that losses are capped, but also to protect profits. Section 01 Introduction and key concepts Example: leverage in use Going short on euro Europe has been hit by a crisis, so you expect the euro to fall against the US dollar.

nov 1. dec Case B: Leverage Case B: Leverage 1. You open a position of 1 lot, which 1. You were right. Euro depreciates against 2. Euro depreciates against the dollar to 1. close your trade and take your profits. Result: The euro fell by pips 1. Your profit is x 1 - 1. Section 01 Introduction and key concepts How much should I invest? Traders should look to use an effective leverage of to1 or less.

Research shows that the amount of capital in your trading account can affect your profitability. With smaller investment you will not get enough profits as the average changes in the currency rates are small. If you haven't heard of these terms already, you undoubtedly will as you begin to invest.

The terms bull market and bear market describe upward and downward market trends, respectively, and can be used to describe either the market as a whole or specific sectors and securities. These images will help you memorize which is which.

Doji - when the opening and closing price are equal. Long-Legged Doji - after small candlesticks, they indicate a potential trend change. Normally only seen on thinly traded pairs. Your Capital may be at risk. That is, on the most fundamental level, a currency rallies because there is a demand for that currency. Regardless of whether the demand is for hedging, speculative, or conversion purposes, true movements are based on the need for the currency.

Currency values decrease when there is excess supply. Supply and demand should be the real determinants for predicting future movements. However, how to predict supply and demand is not as simple as many would think. Two of the primary factors affecting supply and demand of currencies are interest rates and the overall strength of the economy.

There are many factors that contribute to the net supply and demand for a currency and the strength of the economy. Read on to uncover the main drivers that influence the exchange rates. The number of economic announcements made each day from around the world can be intimidating, so we will focus just on the most important ones. How are they divided The drivers are divided into three major groups: Geo-political, Economic and Market Psychology.

Here they are: Kathy Lien Chief Currency Strategist at Forex Capital Markets LLC. Former Currency trader at JPMorgan Chase. TOP 9 Unemployment NFP or Non Farm 1 Payroll 6 Retail sales Will US employment continue to grow? For example, if the U. trade the U. more dollars flow out of the U.

Let's Get to Know Forex Free For Beginners GFT, 29 Pages, In this article, GFT introduces Forex trading and explains the meaning of 'pips', 'leverage' and 'lots'. close positions. Forex for beginners gives more insight into this. The book also helps to understand risk management and trading psychology. The ultimate goal of social trading is to build a portfolio of the best traders. decisions, choose a platform that lets you follow leaders and copy their transactions.

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