FOREX BASICS | A Simple Way to Understand and Learn About Forex

Forex Trading Objectives

In simple and basically, our goal is to achieve a profit trading or profits. So this is what will be one of the main and final goal in our learning process. However, usually without realizing it and you will get turned into a figure who is more desiplin, patient, calculating, and can control themselves well. Because you are not likely to profit which is stable without it.

General knowledge

Forex broker

Brokers, who are intermediaries between sellers and buyers together. And in this case we use the broker which has allowed us to transact online. By using this online broker trading business will be very easy and simple. Usually the broker has facilitated the application where we can easily order.

When you can trade forex?

Trading can be done 24 hours a day, 5 days a week Monday s / d friday
- Beginning of new zealand & australia market hours 5:00 to 14:00 pm,
- Then to the asia markets, namely Japan, Hong Kong & Singapore at 7:00 a.m. to 16:00 pm,
- Then the European markets of Germany and England at 13:00 to 22:00 pm
- Up to the American market hours 20:30 to 10:30 pm.
With one long interval of time, you can adjust when trading with your spare time.

Pips and profit and loss calculations

The movement of a unit / price of the smallest in the forex is calculated in units of point / pip. The value of each point varies according to the type of currency pairs (pair) and the type of contract.
Profit / loss = (Selling Price - Buying Price) x contract size x lot
example:
Buy 4 standard lot of EUR / USD 1.2500 and Sell 4 standard lot of EUR / USD 1.2570
Profit = (1.2570 - 1.2500) x 100,000 x 4
Profit = $ 2,800

Deposit / Withdraw

Deposit is a process where you fill in the balance / balance to be used for trading.
Withdraw is a process where you melt the balance / balance into dollars.
Deposit and withdraw it later you will experience when you have been trading with real money. For our initial learning or not memperlukannya, as most brokers already provide facilities for trading with virtual money (toy) is often called the Demo Account.

Learning Forex

Why is it called the process, the point to be a reliable trader, there is no dictionary or the exact formula. You should find yourself a secret that is inside of you. Capital nature or positive is you have to discipline and increasing knowledge / your knowledge.
Some important points that you can use as reference in increasing stages of knowledge:

Technical Analysis

Charts, Indicators, time frame

Fundamental Analysis

Knowing the market, and its effect on the movement of forex pairs

Psychology of Trading

What factors determine the individual and the psychology of your trading future.

Money Management

Setting the balance, lot, capital, and risk calculations.

Forex risk

Forex like a double-edged sword. With forex you can make a quick get rich, but the reverse can also instantaneously mengikikis depleted our capital. So forex risk factors eminence. So understand the true risks in forex and do not get the wrong foot.