Forex: A Beginner's Guide
SCRIPT Outline (Abridged) Hey guys, it’s Fisayo here and in this video we’re going to talk about the basics of Forex Trading.Last year in November, I asked you guys on Twitter if you knew anyone who was successful trading Forex, some knew, some said they were rare, many said forex traders make money from courses and some were in fact selling a course in this same tweet.Some of you have asked me about Forex trading and some even specific apps which we’ll get to later in this video, I’m going to share my experience with this and also talk about some potential benefits and risks.We’re going to analyse an app that you can use and speaking of.This video is a beginners guide and I’ll be introducing Forex concepts in this video.We’ll touch on Money, Exchange Rates, Currency, a bit of Analysis and What Trading App I’m using to trade on my phone.
The Importance of Value in Forex Trading
That’s not all though, you’ll find out how two of you watching this video right now can win $100 from the channel when you download the app I recommend, thanks to OctaFX but more on that later in the video.If you’re new to the channel, welcome and if you’re returning, welcome back, this video took a long while and I’m excited to share my knowledge with you guys so do stick around until the end.I’d love it if you could hit that like button so more people can benefit from the knowledge we’re about to share here in this video.Without further ado, let’s get to the it.Money So first off, let’s start from the beginning, Money.Money basically is a means of exchanging value.In an ideal world, unless you steal the money, you are only going to get paid if you provide some kind of value in exchange for payment.
Cryptocurrencies: The Future of Money?
From the beginning of time as people can remember, we had the trade by barter system, where people exchange item for item.We later went to gold and after that, paper money.There are now debates as to whether cryptocurrencies or digital money is the next form of money and that’s the hot topic for today.Inflation Paper money was already a good enough medium of exchange, however, people started to see that it wasn’t an amazing store of value because of inflation, if you want to watch my video on Inflation, I already made one which you can watch with the card up above or the link in the description below.So the fact that people saw that they can’t just store money and keep it as a store of value, they started investing so that they can beat inflation and the value of their money goes up, that’s something I talk about on the channel here in the Finance Friday series as well.This is why people invest, buy stocks, cryptocurrency and even do things like Trading Forex.
What is the Nigerian Exchange Rate?
Exchange Rates Before we go into Forex though, let’s talk about Exchange Rates: There’s no doubt that many Nigerians are obsessed about the exchange rate, you probably hear it often, how much is a dollar to Naira?Is it 575 on the parallel market or 418 Naira to a dollar on the official bank rate?Those are questions that keep many people awake.Due to things like inflation, currency devaluation and many other things I’ve spoken about on the channel, you’ll have a case where one note like a 100 dollar bill for instance is worth 40 or 50 of this 1,000 Naira bill.Now this is N1,000 Naira, and I can only spend it in Nigeria.However, if I’m to go abroad, I’ll have to go to my Bureau De Change, or BDC and change some of my naira to dollar or if I’m eligible, I’ll walk into my bank and show proof that I’m travelling and then they’ll give me dollars in exchange for Naira at a certain rate.
Forex (For Beginners) Tutorial!” src=”https://images.pexels.com/photos/210607/pexels-photo-210607.jpeg?auto=compress&cs=tinysrgb&h=650&w=940″>
How to Make Money Trading Forex – Don't Overspend on
This is so that I can have an acceptable currency that the country I’m travelling to can take when I get there.So I have just exchanged my Naira for Dollar right?Trading Using a real world example now, let’s say on March 1st this year, you needed to visit a friend in the US, and you used 1,000,000 Naira to buy dollar at 416, you’ll have $2,400, now assuming your trip got cancelled and let’s say the friend chose to come around to Nigeria instead and you had to change the money back to Naira, well news flash, naira is now 418 which means it’s gone down in value because it’s cheaper in comparison to the dollar, aka the dollar can get you more Naira.If you want to change that $2,400 to naira at the new 418 rate, you’ll get 1,003,200.That’s 3,200 naira more from not doing anything.However, you can’t make money this way by going to the bank to change money, the uber or bolt fee alone would wipe out that 3,200 naira in “profit” you have made.
Forex Trading: Currency Pairs
That’s why people open a brokerage account and speculate on the changes in a country’s currency, maybe they feel a currency would go up or down in the future and they then speculate on that.So that is why we’re here today.Currency Pairs When you look at currencies in Forex trading, chances are, you’ve seen a currency written like this: where you’ve got USD/GBP or USDGBP.It’s called a Currency Pair and usually, the first currency written is in the Unit of 1 which means base or base currency, 1 being the base or lowest unit value while the next one is the interpretation or the quote, so that’s the quote currency.So when you see something like BTC/USD or BTCUSD, it basically means 1 BTC is this many USD or 1 Bitcoin is this many Dollars, here you can see that BTCUSD shows us that 1 BTC is 41,956 USD.In forex terminology, you’d say that this is a quote for BTC against USD.This quotation means that 1 BTC can be exchanged for 41,956 Dollars.
How to Trade the Forex Market
Trading World The Forex Market is way larger that the stock market.According to research, it’s around 6.6 Trillion dollars in daily trading volume (Data from 2019 Triennial Central Bank Survey of FX and OTC derivatives markets) The Forex market is also known as the FX Market and people exchange national currencies on the market a lot for many reasons, maybe it’s to hedge against inflation, to speculate on events going on within those countries for which they trade their currency, and to diversify their portfolios, alongside other reasons.It is important that I mention that the large percentage of people trading in the FX markets are actually institutions.These are Central Banks, Commercial Banks and Hedge Funds while individual traders or retail traders, people like you and me are quite a small percentage of the Forex Market and use FX trading for day trading activity.How To Trade Alright, let’s get to the part where you’ve been waiting for, how do I trade?
OctaFX Trading App: Top Forex Trading App with Free Fore
The app I’m using for this is OctaFX, and they have been around since 2011 with quite the high end trading experience and more than 6 million trading accounts in like 100 countries.One benefit or pro is that they also provide free Forex Basic courses for new traders on their website.They conduct webinars and send newsletters with new market updates.I’ll leave a links to all the resources that can help you get started as well.How to Download The App Make sure you download the real app, by clicking the link below.It’s called OctaFX Trading App on the Google Playstore.You’ll of course know it’s an original app because they have 10 million downloads, and 106 thousand ratings at a 4.4 star range which is quite good.Please don’t download a fake app.Interface: Once downloaded, you get a few sign in options: Email, Gmail, Facebook or you can try a Demo.I chose my sign up option and right here on the you’ll need to sign up with your preliminary details.
OctaFX Supports MetaTrader 4 and MT5 for Forex
Name, email address and password.You’ll also need to verify that you’re not a US Citizen as the service isn’t rendered to tax residents of the US.You’ll then need to fill out your Country, address, phone number and date of birth just to be sure you’re of age to trade.Lastly, you’ll confirm if you’ve traded Forex before or not.Regardless of what you do here, the next option you get is the kind of account you want to open.As you’re about to create your real or demo account, you’ll be faced with MetaTrader 4 and 5 as choices.I’ll be going with 4 as 5 is much more advanced.It does have a few more features but you can still do a lot with MetaTrader 4.OctaFX supports 2 of the widely used MetaTrader 4 and MT5 both of which have 24/5 trading hours.That is 24 hours, 5 days a week for regular currencies so, starting at 12 a.m.on Monday and closing at 11:59 p.m.on Friday.Server time is EST).While Cryptocurrency pair trading is available to trade 24/7.
Leverage Trading Forex: The Basics
However, they have server maintenance when trading cryptocurrencies is unavailable from 12:00 a.m to 2:00 a.m.on Saturday and 3:30 a.m.to 4:00 a.m.on Sunday.Basically you have 24/7 to trade the following currency pairs.BTCUSD; ETHUSD; LTCUSD; XRPUSD; BCHUSD Once that is done, I’ll get a couple of options, and I can see my Leverage options.So what does this mean?Leverage Trading Forex cannot be done without the broker lending you money.If you deposited say $100, you can’t instantly trade Forex with it technically.In fact, unless there’s a significant shift, with your $100, you’ll most likely make less than $1.Where leverage comes in is letting you trade with more money than you deposited.So a 1:1 Leverage means of you deposit $1000 (which is called a margin), all you can trade with is $1000.A 1:15 leverage means if you deposit $1,000.The app will let you trade with $15,000.And as we have it at the maximum here.
Short Selling: How to Trade When You Don't Have the Right Assets
A 1:500 leverage means $1,000 deposited will get you $500,000 allowance to trade.Keep in mind that this is just a loan and you really don’t want start with the higher leverage route as a beginner.Of course, once you make a trade and the price goes up, you make some money and if it goes down, you lose some money up to what you put in there and the Broker takes back their money.Short Selling And this whole idea of borrowing can be seen in short selling.This is a case where you borrow against a currency because you know or you have a feeling that it would go down in price.Say you wanted to do a transaction on turtlenecks for instance and you don’t have turtlenecks and you know a guy that likes to wear turtlenecks all the time.If the price of turtlenecks on the market is $50 and you had some idea that they would go down in price, you can borrow one turtleneck from your friend that has a lot of them, sell it to someone at $50 and wait for a bit.
How to Trade Forex the Right Way
Let’s say the price of turtlenecks in the city dropped to $30, with the $50 in your hand, you buy that turtleneck, the same one, and return it to your friend like nothing happened.Meanwhile, you’ve made $20.This is what happens with the forex and stock markets except you’ll swop turtlenecks for currencies or companies’ shares and the friend you borrow from is your broker.The Home Page: Alright, now back to the app.It is usually recommended that people trade with a Demo account at first before starting with a real account, this is so that people can get a hang of the process and practice till they become better at it.You’ll be able to create a Demo account for which the password will be sent to your email.This is great to start with so you get a feel of the app and a view of the land.
Forex Trading: The Basics You Need to Know
When you’re ready to switch to a real account I’d encourage you guys to go to the side bar and where you find the promo code, use the code “FISAYO”, this way you get up to 100% of your deposit because the regular offer on the app offers you 50% deposit bonus, my code gives you up to 100% deposit bonus, also make sure you read the terms and conditions…but that’s not all.Two people who send their screenshots via the link in the description stand a chance to win $100 from me after you’ve made your first deposit.That’s that but don’t go anywhere yet, we’re just about to get started.Trading So normal currencies of countries don’t move as much as crypto currencies or the stock market, Cryptocurrencies or stocks can move from 100 to 150 to 200 while countries move from 1.355 to 1.356.if it did big moves, that would be really bad for everyone.
OctaFX App Highlights Major Movement
However, they move in the lower decimal points or lower cent range and this is called a Pip or percentage in point, P.I.P, it’s basically the smallest move an exchange rate can make.What I like about OctaFX’s app is that they highlight that major movement part and it looks much bigger as you can see with these bunch right here.In order to buy or sell a currency, you do so in Lot sizes.A Lot is a measure of your order’s volume. 1 standard lot (1.00) equals 100 000 units of base currency.So 1 LOT for USDGBP or dollars to pounds is how much of pounds you can get with 100,000 dollars. 10 000 Units (0.1) are called Mini lot and 1000 Units of Base Currency (0.01) are often referred as to micro lot.It’s easier to see better gains using the lots method since trading with a larger sum on leverage gives you more gains vs trading with a smaller sum.But keep in mind, it’s still very risky.
The Basics of Forex Trading
Charts When it comes to the graphs of the forex markets, it’s one I struggled with learning as I started.This is one of the most common ways they’re shown and here’s a simple explanation: At the open of the markets or the first trade to be made, we start around here, if it’s a rising market, the price should go up and this is where we close.The best case for us is to buy around the bottom and sell around the top.This is where people buy, bid or go long on an asset.But of course, it’s not perfect as there will be market players that buy or sell for lower than the opening price so this wick or shadow above as it’s often called, represents them and then people that buy or sell for higher than the closing price so this is what represents them.
How to Trade Candlestick Charts
In a down market, the opposite is the case, we start or we Open the day or the trading period from somewhere here at the top, and the price goes down and we close at somewhere here which is lower.Here’s where we want to be if we are selling or we are “shorting” an asset where we sell high and buy low.Again, there would be people who bought or sold at lower than the closing price so this lower wick represents them and people who bought or sold at higher than the opening so this upper wick represents them.So each bar represents a period, usually a day or hour, or even every 5 minutes depending on what you configure, in a real life chart, you can see here that we opened at this price with the highest point being this and the lowest point being that.Candlestick charts give traders the most information about how they would be trading.
Trends and Volume – What Most Forex Traders Use as Ind
Trends and Volume What most Forex traders use as indicators to place their trades are trends and volumes, there are so many other things but for technical analysis these are 2 major things.A trend can either be an uptrend, a downtrend or a sideways trend and If they see that prices tend to move upwards, and they notice a trend, they would find the Lowest points to buy and the highest points to sell throughout the trend, in order to figure out entry points and exit points.So again, they buy low and sell high at a consistent pace.They use 2 lines called Resistance and Support so from their analysis, they won’t go below the support line or above the resistance line when they want to buy or sell.
OctaFX Review – The Leading Forex Brokerage
With volume as well, you might notice that the price of something has dropped and a bunch of people are buying in or selling.For the fundamental analysis, they use news articles, what’s going on in the world, news on interest rates, everything and anything that might affect the price of a currency.Trading activity (Shown) Alright, we’ve said a lot..now let me show you some trading from my end, I’ll show you guys a sample of my trade using a demo account and another using real money that I’ve deposited into my Octa FX account, I do have to stress that trading Forex is risky, I’m not giving financial advice, this is just for explanation purposes.Before I move on, It’s important to note that OctaFX lets you deposit from a very wide amount of sources.From Local Bank Transfer, Bitcoin, Dogecoin, Ethereum, Litecoin, Skrill Mastercard, Visa and more.With your demo account, you can trade with $1,000,000 or more.
Forex Trading Demos: How to Use a Demo Account
You can also see the number of items you can trade, from Foreign Exchange or Countries’ currencies, to cryptocurrency, to indices, metals and even oil in the energy sector.Going right into the demo account now, you can see a chart, and you would want to know your strategy.Once you’re ready to trade, you will choose which account type you want to use.Real, Demo and Contest.For the purposes of this video, I’ll stick with the first two.Heading over to the demo account, clicking on the one you want to use and the clicking on Trade prompts you to enter your password and after that you see a bunch of currency pairs.You can click on any one of the currency pairs to see a chart of how that currency pair has been performing over time.You can see your current trade, view your historical trade and as you can see here I’ve been practicing with my Demo account, making and losing some money, although it’s not real.
How to Trade Forex – Introducing the Stop Loss and Take Profit
After looking at the trend and chart, I placed a sell order by clicking the red number, clicking on green is the buy order and this is what’s called a market order that is when you don’t punch in the exact price you want to buy and price you want to sell, you just click on the price that they give you.This currency pair is for the dollar to the Swiss franc and I shorted in 8 lots, remember that 1 lot is supposed to be around $100,000.The number change is the profit or loss I stand to make and it’s clear.What most traders do is set something called a Stop Loss or Take Profit.A stop loss essentially means you want to stop the trade and take a loss at a certain price point, while a take profit is to stop the trade and take profit at a certain price point.You can set those points here and leave your trade but if you’re new, you might babysit the trade and watch it turn green and then close the trade.
How to practice forex trading with demo accounts
I made a loss in this trade and for my next trade, I tried the Energy sector or oil.I first off looked at the chart and saw it was trending down, what I did was change from 15 minute candles that is M15 at the bottom to 1 minute candles to get a faster picture of the price movements.I then placed a short order, for 7.96 lots, also about 8 lots.Here’s the price movement as you can see.For this trade I actually set a stop loss and a take profit and I just left the trade.Coming back to this trade, you can see that I’ve made a profit of 1750 dollars for oil to USD.That is all well and good..So far, I’ve been practicing with demo trades as you can see here, now let’s check out real trading.Since this is an experiment, I only used around $100.So I’ll go through the same process like the demo account.I’ll just look at a couple of currency pairs, and checkout the EURO USD pair.
How to trade forex with stop losses and take profits
I’ll just do a short order for 0.01 lots which is around $1,000 and as you can see, the profit has been changing.Again, you can set a stop loss or take profit.OctaFX suggests one to you at a wide PIP difference.I’ll just close the trade now and take 50 cents.I did try the same process over and over again, so I would short sometimes and close when I’m in the green.I also did lose some and gain some.I noticed that whenever I was deliberate at setting stop losses and take profit, the trade did go my way but again, you want to have good reason or knowledge for it.I do have to mention that we’ve been trading on mobile and this is a basic guide, if you want to get serious, you can check out the links in the description for more courses and resources.You also would want to use the web if you’re really interested in trading, they also have a web platform that explains all of this to you and shows you more advanced feature sets.
OctaFX Review – A Good Forex Trading Platform
More Features & Settings For more features and settings, on the side bar you have Bonuses, Transaction History, Internal Transfer, so you can transfer money from one trading account to the other.View your Transfer History, check out the Economic Calendar so you’ll know of current events so as not to trade a currency that might have a bad news cycle, Market Insights, even a Profit Calculator so you’ll see how much you stand to gain if you trade a currency pair..You’ve also got the referral, Offer Page and Promo Code.Which we’ve already talked about.Other Tools to Help Lastly, OctaFX’s customer support was also helpful.I made a deposit and it didn’t come in on time, all I needed to do was chat with them live with their live chat feature, in a few minutes, they attended to me and it was fast.Conclusion In the end guys, Investing involves a level of risk, I do not recommend investing without prior expertise.
How To Trade Forex: The Basics
So if you don’t understand something you saw in this video, check Google, and learn from more YouTube videos and resources I’ll link in the description of this video.Also guys, beware of scammers who use my name in the comments.My handle is verified, never send personal data or funds via messengers (WhatsApp, Telegram etc) Please don’t fall victim.Thank you for watching please hit that like button so more people can benefit from the knowledge we’re sharing here and if you find this video useful in anyway, hit that subscribe button and the bell icon beside it so you’ll be the first to know when I post a new video.
Read More: Forex Trading For Beginners in 2022 – Can You Really Make Money?