FX Trading Tutorial
FX Trading Tutorial – When a Forex trader sits down at a computer to make money the first thing they do is analyse the Forex trading capital markets. How To Trade Forex Market – Emotions have no place in financial decision making.
Having the important background knowledge on the Forex market is important and will help you understand just how easy it can be to get into and out of the Forex market, as well as trade Forex without the risk. Something other financial markets simply can’t always deliver on. Define and improve your relationship with money through Forex trading.
- Support and resistance: Support and resistance levels develop over time as price “tests”. Upon price extending past these levels, a breakout may ensue.| FX Trading Tutorial
- Market consolidation: Candlestick Trading
One of the big advantages of Forex trading is that the markets are open 24 hours a day, 5.5 days a week so you can trade when you want. Using Forex Signals will help any trader.
- Join FxPremiere – Central banks can often manipulate the currency markets in order to boost exports or even lower the value of a currency. If Forex traders know what they’re doing, they can really use this to their advantage. In this final installment we unlock the secrets to understanding these market changes.
How To Set Up MetaTrader Forex Platform
This lesson is going to provide you with a tutorial of the basics of using the MetaTrader trading platform. MetaTrader 4 (MT4) is the most popular Forex trading platform and forex charting software in the world. I personally trade on this platform and I recommend my readers & members use it too.
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Navigating the MetaTrader platform: The main windows
To see which currency pairs I prefer to trade as well as an example of how you might want to populate your market watch window, check out my article on the best forex pairs to trade.
How To Place Different Trade Entry Types Using MetaTrader
In today’s lesson we are going to learn about different trade entry order types and how to set up the perfect trade using the MetaTrader trading platform, the most popular trading platform in the industry.
Identifying the Best Times Trade Forex
If you are a beginning trader or even if you’re just new to the MetaTrader platform, you will find this tutorial very useful. More experienced traders may also find this lesson useful as a refresher on the ins and outs of setting up a trade in MetaTrader using good trading strategies
Types of Currency Pairs:
There are three categories of currency pairs; majors, crosses, and exotics.| FX Trading Tutorial
The “major” forex currency pairs are the major countries that are paired with the U.S. dollar. We are also including silver and gold in this list since they are quoted in U.S. dollars and we trade them regularly.
EUR/USD – Euro vs. the U.S. dollar (Fiber)
GBP/USD – British pound vs. the U.S. dollar (Sterling, Cable)
AUD/USD – Australia dollar vs. the U.S. dollar (Aussie)
NZD/USD – New Zealand dollar vs. the U.S. dollar (kiwi)
USD/JPY – U.S. dollar vs. the Japanese yen (the Yen)
USD/CHF – U.S. dollar vs. the Swiss franc (Swissie)
USD/CAD – U.S. dollar vs. the Canadian dollar (Loonie)
XAU/USD – Gold
XAG/USD – Silver
• Commodity currencies
A commodity currency is a name given to currencies of countries which depend heavily on the export of certain raw materials for income. The major currencies that are also considered “commodity currencies” are the Australian dollar, Canadian dollar, and New Zealand dollar FX Trading Tutorial.
Gold and silver are actual commodities, so they can also be considered “commodity currencies”, and once again they are traded in U.S. dollars
The “crosses” are those pairs that are not paired vs. the U.S. dollar such as:
AUD/CAD – Australian dollar vs. the Canadian dollar
AUD/CHF – Australian dollar vs. the Swiss franc
AUD/JPY – Australian dollar vs. the Japanese yen
AUD/NZD – Aussie dollar vs. the New Zealand dollar
CAD/JPY – Canadian dollar vs. the Japanese yen
CHF/JPY – Swiss franc vs. the Japanese yen
EUR/AUD – Euro vs. the Australian dollar
EUR/CAD – Euro vs. the Canadian dollar
EUR/CHF – Euro vs. the Swiss franc
EUR/GBP – Euro vs. the British pound
EUR/JPY – Euro vs. the Japanese yen
EUR/NZD – Euro vs. the New Zealand dollar
GBP/AUD – British pound vs. the Australian dollar
GBP/CHF – British pound vs. the Swiss franc
GBP/JPY – British pound vs. the Japanese yen
NZD/JPY – New Zealand dollar vs. the Japanese yen
Create your own forex currency pair watch-list: FX Trading Tutorial
Metatrader 4 has many little nuances that a lot of traders are unaware of. One of them is how to create a “market watch list” of the currency pairs you want to follow. You can also create a “pop up” price list that allows you to get a quick view of the current price quotes of all the pairs you follow, you can adjust the size of this pop up list and it will stay that way so every time you hit F10 you can see all the currencies you follow in large text. Here are the instructions to create a market watch list and a pop up price list in MT4:
1) Click on “view” at the very top of your screen.
2) Click on “market watch” within the “view” menu
3) You should see a screen appear with some or all of the currency pairs available, and probably gold and silver.
4) Now, right click anywhere in the “market watch” window, you should see a menu appear with various options.
5) This is where you can pick and choose which currency pairs you follow. You will need to first select a currency pair if you want to hide it, then right click and select “hide”, it will now disappear from your market view menu. (note; if you have an open trade you cannot hide the quote of the currency pair from the trade you are in)
6) To reverse this just lick “show all” and all the currency pairs will pop back up.
7) You can also just click on “symbols” and then go through and hide or show which ever currency pairs you want.
8) Once you get your watch list set go to “sets” and save it. You can save multiple watch lists if you want.
9) FX Trading Tutorial – Hit F10 and a pop-up price menu of your currently opened watch list will appear. This is a handy little short cut that you can use to check the prices of all the instruments on your watch list very quickly so that you don’t have to have the watch list window open all the time.
MetaTrader order types and long versus short
There are two main categories of order types in MetaTrader, they are: Market Execution and Pending Orders.
A ‘Market Execution’ order means your order is executed at the next available market price, so as soon as you place the order it is filled at whatever the price is at that time of the fill. Market execution orders only include market or ‘at market’ orders.
A ‘Pending Order’ means that you place an order in the market that will be filled at a later time, after price moves up or down to the price level you’ve set the order at. Pending orders include limit orders and stop orders. Stop orders can be an ‘on-stop entry’ order or a stop loss order. Limit orders can be a limit entry order or a limit profit target order, in Meta Trader the profit target order is labelled ‘Take Profit’,
Long – If you’re trading long or looking to ‘get long’, it means you are expecting the market to move higher and so you are a ‘bull’ or ‘bullish’ on that market.
Short – If you’re trading short or looking to ‘get short’, it means you are expecting the market to move lower and so you are a ‘bear’ or ‘bearish’ on that market – FX Trading Tutorial
Let’s move on to discuss how to place these various order types and set up trades using the MetaTrader platform…
Extra reading: How to Find a Reliable Forex Broker
- A comprehensive money management plan must be in place in order to preserve profit from unwarranted risk. For a swing trading approach, the plan needs to clearly define the risk vs. reward scenario for each trade setup including Stop Loss Trading setups.