COMPILED NOTES ON FOREX TRADING

I welcome everyone to this wonderful platform and this great opportunity to learn forex.

Over the next couple of weeks, we would be having intensive training on how to trade in the
largest financial market in the world. It will be very rigorous and stressful because of timing of
the lectures, being awake at this late hour depending on which part of the word you are coming.
But at the end, it would be worth it. You would be glad you preserved to the end. Many of you
would not forget the day they joined this group. That is why I gladly removed the unserious ones
because they don’t know what they are missing.

This is my third batch of training students and many of them now are full of thanks daily, just
like I showed in the screenshots I posted earlier on. I would post the outline that we will be using
as a guide for our series of lectures.

Stage One (1) Stage Two (2)

1. Introduction 1. What Is Pip
2. What Is Forex 2. Concept Of Bid And Ask Price
3. What Is Traded On Forex 3. What Is Spread
4. Who Is A Forex Broker 4. Forms Of Trading Orders
5. Trading Times And Trading Sessions 5. Concept Of Take Profit And Stop Loss
6. Terminologies Used In Forex 6. Leverage
7. Forms Of Trading 7. Lot Size
8. Currency Pairs 8. Risk Mgt
9. Mt4 Interface Part 1 9. Common Mistake By Traders
10. Mt4 Interface Part 2

STAGE THREE (3) STAGE FOUR (4)

1. How To Know When To Actually Buy
Or Sell 1. Putting It All Together
2. How To Generate Signals For Your 2. Forex Trading Strategies
Selves 3. Mentorship
3. Indicators. Noving Average, Stochastic, 4. Live Trading
Macd, Bollinger Bands, Rsi, Parabolic, 5. Follow Up
Sar, Adx, Atr, Ichimoku Etc.
4. Support And Resistance Level
5. Candle Stick Analysis
6. Fibonacci Levels
7. Pivot Points
8. Elliot Waves And Fractals
9. Chart Patterns
ALL ARE REQUIRED TO DOWNLOAD THE FOLLOWING APPLICATIONS FOR
PRACTICALS

META TRADER 4 OR MT4.

[Link]

CALL LEVEL APP.

[Link]

ZOOM VIDEO APP.

[Link]

PIVOT POINT CALCULATOR.

[Link]

INTRODUCTION. What is forex and forex market? Forex simply means foreign
exchange. You embark on it every day, for those that buy things online, transact with
banks, travel for a business trip, you are unconsciously exchanging your countries
currency with larger one. But here, we are introducing you to the actual forex market,
where your banks, investments institutions and other financial affiliates invest and trade
with those money you save with them. Before, this was only meant for big banks before the
onset of retail brokers that now gives access to you and me to trade this large, and highly
liquid market.

Forex is the largest financial market in the world. According to Reuter’s survey about $5.3
trillion dollars is traded daily on the forex market. Comparing this to the New York stock
exchange (NYSE) and crypto market, the total market cap of all cryptocurrencies is netted
at $ 282 billion. That is 2000 times less than what is traded on forex daily. (Source: coin
market cap).

NYSE (New York Stock Exchange) which is the largest stock exchange in the world has a
total market cap of about $21 trillion dollars. That means if forex market runs just one
month, it would be 53 times larger than NYSE. And that is how liquid the forex market is.
People are keying into this highly liquid market daily and cutting their share of this large
market capitalization. The only thing is that, it’s only few people that trade this market
because little have the knowledge on how to trade it. And that is what we would be doing
over the course of these weeks that we will be here together.

Even some people here has friends that trade forex, but they would never tell you their
source of income, but will rather hoard this knowledge to themselves so that you would
always submit to them rather than to teach you. You will see them entering club, sip some
exotic drinks with everyone, but you want know all of them are forex traders and it has
been idolized to only selected peoples.

WHAT IS TRADED ON FOREX? Forex market is large enough to accommodate many

commodities. Examples; currency pairs, precious metals, oil, cryptocurrencies, and CFDs
etc. we basically trade in currencies. Thus, we exchange currency with another. Have you
ever wondered what your banks do with the monies you keep in fixed accounts? Let me
open you guys eyes a little to see how banks makes money through foreign exchange. Let’s
assume that you have $ 1,000 that someone sent to you from abroad, you went to the bank
to exchange it to naira.

The bank tell you that federal exchange rate is # 350 and you gladly collect # 350,000 as
equivalent to your money. The next day, you went to the same bank, because something
urgent came up and you want to travel and you need exact $ 1,000 for your journey. Now
they tell you the rate is #380. Virtually, you would have to pay #380,000 for that same
amount ($ 1,000) of which they gave it to you at #350. That is how lucrative bank business
is. And don’t want you to partake in this large market which is mostly meant for them.
However, thank God for retail brokers.

WHO IS A FOREX BROKER? Basically we have been in the introductory aspect, but we
are gradually entering into the main topics. A forex broker is a firm that gives you access to
financial market. To understand the importance of forex brokers, let me take back to a
little history of forex. Previously, like I told you guys, this was mainly meant for big
financial institutions and not even common local banks, I mean financial institutions like
the central bank of Ghana, central bank of Singapore etc. central banks of countries and
not just local branches. And you will need large capitals to trade (millions of dollars). As
time moved on, rich men’s and local banks also started trading though the capital
requirement was still much. Only for big boys (Men of Wall Street). Then came the invent
of forex brokers, they revolutionized the forex world.

They make it possible for everyone no matter your country of origin, background, financial
status to trade this highly liquid market. So forex brokers are firms that give me and you
access to this forex market. They provide as with what they call leverage (simply means
with your little capital you can trade forex), because of retail brokers you now not be
extremely rich to trade forex, also before the invent of retail brokers, for you to place a
forex order the central bank has to place a call to the regulatory bodies before you can
transact.

But with forex, you basically be on your bed and place a forex order with your MT4.
Internet and technology has also made things a lot easier and people like me and you can
participate in forex because of brokers. Currently as am talking today, before you can
trade on the floor of New York Stock Exchange, you must have fulfilled some numerous
criteria’s. eg above the age of 21, annual salary of more than $ 100,000 , they capped their
minimum investment to around $ 25,000. Federal records have some collaterals or surety
etc. all these just to partake in trading on NYSE. That is why it is only opened to some few
elites. Why want the rich keep on getting richer.

There are many forex brokers in existence as of today, eg. HOTFOREX, FXTM, FXCM,
LITFOREX, INSTAFOREX, XM, PEPPERSTONE and many more so as to guide you all
on which ones that are customer friendly, swift services response, low spreads, accurate
quotes etc.

TRADING SECTIONS AND TRADING TIMES. Some would be asking when to do

trade? Forex market is a 24 hours market. It is usually call the market that never sleeps.
It’s open for 24 hours that means you can wake up anytime of the day in any area you are
in the world and start trading except for weekends. When you open your MT4 at
weekends, it want click because market is closed. Though it is a 24 hours market, but we
have different sessions and that is what we are going to discuss now.

The forex trading times and trading sessions are as follows

 1. SYDNEY SESSIONS
2. TOKYO SESSION
3. LONDON SESSION
4. FRANKFURT SESSIONS
5. NEW YORK SESSIONS

The various sessions are named on capitals of countries in those regions. For examples it is
Asian session that is popularly known as Tokyo session and so on. So when do these
sections opened?

SESSIONS OPENING TIME

1. SYDNEY 9 : 00 PM GMT
2. TOKYO 11 : 00 PM GMT
3. LONDON 7 : 00 AM GMT
4. FRANKFURT 8 : 00 AM GMT
5. NEW YORK 1 : 00 PM GMT

Though this may vary by just one hour depending on whether we are in summer or winter.
But basically those are the standard time. So you will use your countries location to know
the session that is open at any particular time. Because the time is in Greenwich meridian
time. E.g. South Africa is GMT + 2 that means you would have to add 2 hours to the
stipulated time above to know the opening times of any session you want to trade. So just
select the time that will be convenient to you, mind you it is a 24 hours opened. That is the
beauty of forex, you decide when to work. It does not stop you from your normal routine.

Closing time of the above sessions.

Closing time, you just add 9 hours to the corresponding opening time and you will get the
closing time. For example, Sydney session that opens 9pm GMT you add 9 hours to the
opening time to get the closing time of 6 am GMT for London session which opens at 7 am
you add 9 hours to get a closing time of 4 pm GMT. And so on

When is it advisable to trade? Many forex traders don’t know this, as for trading session
you can trade anyone but note this. Always trade when two or more trade are opened at the
same time. It gives the market more volatility and that means more money for you as a
trader. For example when Sydney session is open by 9pm GMT, at that moment is only
Sydney. You should at least wait till 11pm GMT for Tokyo session to join before you enter
the market. By doing that, you are taking advantage of the market’s volatility to your
favor.

LECTURE TWO

TERMINOLOGIES USED IN FOREX. Just like every filed in life, there is a unique
language peculiar to that field. Those that read law would use some terms that is peculiar
to lawyers, so in other fields. Likewise in forex, we also have our own languages and you
have to be familiar with these terms for you to understand what we would be doing. So
follow closely from here, because soon you would start meeting forex traders and you need
to know some of these terms for you to make sense of what they are saying.

Also most analysis done in forex are done in these peculiar language, so you need to be
familiar with them. Let’s take them one after the order.

1. To go long. This simply means to buy when you hear forex traders say they are
going long …. That means they are buying that particular currency pairs or that
particular financial instrument. Irrespective of what the instrument is, it could be
currency precious metal, oil, natural gas, cryptocurrency, stock and others. E.g.
Somebody tell you that ‘I went long on EURUSD. So long means to buy.
2. To go short. This is the opposite of going long, it simply means to sell. So if you hear
a forex trader telling you that he/she is going short on a particular financial
instrument it simply means to sell.
3. Bullish market. a bullish market is one that is going upwards. When you hear
analyst saying the market is bullish it means it’s going upwards.
4. Bearish market. Bearish in forex means going down it is the opposite of bullish. So
if you hear that a market is bearish, it means that the market is going down.
5. Bulls. In forex nomenclature, buyers are referred to as bulls. So when you hear
forex analyst on CNN or CNBC tell you that bulls took over the market. they are
simply telling you that buyers took over the market
6. Bears. This is the exact opposite of bulls and it simply refers to sellers. In forex, you
would soon understand that we do only two things (we buy and we sell )

That’s the only two things we do in forex. That is why you will only see these two
buttons. We will see how to set it up in your MT4.

7. Trending market. The next term is a trending market. When a market is said to be
trending, it simply means that it has a particular direction. Is either is going up or
going down. That means you could either hear people say that a market is trending
up or that a market is trending down. This means there is a clear cut trend
8. Ranging market. A market is said to be ranging, if there is no clear cut trend. That
means it is the opposite of trending. Its neither going up or down. It’s just revolving
or bouncing around two fixed points. What you need to know as a forex trader is
whether a market is trending or ranging, and this is because some forex trading
strategies are best applied to trending market while others are best applied to
ranging markets. You will soon see numerous trading strategies, it’s all left for
every individual to choose the ones they are comfortable trading with. As we go
along, in the training and we meet new terms I would be explaining what they mean.

FORMS OF TRADING:
Note you need these terminologies for you to be able to understand how analysis are
made in the forex market, you would tend to follow with the discussion and events
even when you see them on your TV or online. Before I stated forex, business or
economic news on CNN were one of the most boring things for me to watch. Because
most times I won’t even understand the jargons that they are saying. But now, I
don’t miss any of the major economics news because as you would soon get to know.
They are the factors that move the financial market. So as you start interacting with
traders, who previously you may not understand what they are saying. Start
listening closely from today even on news.
FORMS OF ANALYSIS. The two forms analysis are the fundamental and technical
analysis. As we go higher, you may like to add what we call sentimental analysis.
But let’s stick to the basic first. We will be going into the crust of the matter from
here. Like I said these foundation if the bed rock of most things we do in forex.
FUNDAMENTAL. This refers to as trading with the news. It involves analyzing the
forex market using the important factors like import and export indices, political
stability of a country strength of the country’s economy any trade wars between
countries, local violence within the country and so on. All these affect the economy
value of the currency of a particular country. Let’s take for example, you hear that
there is cries in Libya, you would know definitely the value of Libya’s currency will
decrease. Or like you saw the export value of goods from china to other countries
has increased, that means Chinese yuan is doing well. So all these factors are all put
into consideration to help you analyze the forex market. As a general basic rule in
forex, you buy currency that is doing well and you sell the one that is weakening/ not
doing well.
This is just a basic rule.
It is not just a straight buy or sell like you do in your local market when you buy
groceries or stuffs like that. You will soon see what we mean by buy and sell. But it
is better you have this basic knowledge at the back of your mind. That we buy a
currency whose countries economy is getting stronger and sell one that is
weakening. So you make this analysis of whether the economy of a country is getting
weaker or stronger using the fundamental analysis. You put into consideration
things like, interest rate, export and import indices, retail sales, consumer
confidence in the countries market, is there political cries or not any ongoing
election in the country etc.

We would soon get to be seeing all these. Amongst all news (fundamental) trading
there is one that is hoped upon by every trader which is known as the NON FARM
PAYROL. NON FRAM PAYROL. This is news released by the US bureau of labor
and statistics and it and indicator of how strong the US economy is. In forex, over
70% of all currency pairs are linked with the US dollar. So you should endeavor to
know at all times the strength of the US dollar.
Because it strength or weakness will help you make trading decisions on the
currencies it’s paired with.
NON FARM PAYROL (NFP). Is the biggest news in the forex market? It is a direct
indicator of the US economy’s strength and that is why traders cares. NOTE. This
news is released on the first Friday of every new month exactly 12:30 pm GMT. You
can get this news in your MT4 by clicking on the news button or read from
[Link] and [Link]. And as a forex trader, you don’t have to miss
this even if you are at the hospital, when it’s time for NFP tell your doctor or nurse
to give your phone that you just have to check something. Note that, the volatility
created by this message is always massive. And remember you need volatility in
trading. The market jump about 100 pips within a seconds. We would soon see what
pips means. These were screenshots from my last batch, just like I’m doing for you
This was just within 5 minutes.
Normally, it contains the number of jobs created by the United State,
unemployment rate in the United States whether it is increasing or decreasing, it
also tells traders and investors which sector of the economy add more job than the
other. This give investor and idea on which sector of the economy is growing and
hence where they will invest in. lastly, it also include average daily earning of the
United States whether it increase or decrease.
Example. Am currently trading the Tokyo session. And this is example of
fundamental new. Those who has been following the news must have heard that
Britain wants to pull out from Europeans union. Now they have summited their
withdrawal proposal over the weekend and the breaking news right now is that it
was rejected. This is bad news for the pounds sterling. And am expecting the pounds
to weaken. Am currently bearish on some set of GBP pairs.
Note. People are mostly of the view that since NFP is released once in a month so
will it have useful effect throughout the month or till the end of the month.
But you should know that even though, it has a significant effect on the US dollar
throughout the month or even beyond not just that month alone. As a forex trader
the ones we are always want to key into is the first 5 minutes and mostly after five
minutes we close for the day. And that is how volatile it can be. Imagine making
what you make normally in a week in just 5 minutes. You just close for the week.
This give the federal reserve of united state insight on how the economy of the US is
fairing and hence determine how they implement their policies. Example if the news
is released and you see US added more job than the former value and that
unemployment rate decreased, it give you an idea of how the US economy is doing
and hence guide your forex decision as a forex trader. There are strategies on how
to trade the NFP and we would see them later.
TECHNICAL ANALYSIS. This is the second form of analysis, it involves the use of
indicators, chart patterns, candlesticks, patterns, Fibonacci, pivot and others to
analyses the market. This is the major forms of trading done by all forex traders.
This is because news don’t come often just like NFP it only comes once in every
month and when it comes you hit Christmas. But that will be till another month
before you see the jackpot again, but in-between that traders trade and make use of
all these mentioned above and are called technical analysis.
Technical analysis, is the bedrock of forex trading. As a forex trader if you don’t
know how to analyze a market technically, you have not arrived yet. You are just a
bystander. So that is why you need to learn technical analysis carefully. In fact
majority of what we have listed in our course outline are composed of technical
analysis. Elliot waves, Fibonacci, candlestick, chart patterns, fractals, support and
resistance etc. we will be looking at them one after the other.

CURENCY PAIRS.
Before we will start this topic I would like everybody to see practically as we are
now entering into the practical aspect of the class. So everybody should open his
MT4 app, when it opens you will see two options, one is saying: log into existing
account and the other is open a demo account. Click on the open a demo account.
This helps you to trade and practice with free virtual money. Normally I allow my
student to study with it. Most brokers only allows you to register a demo from their
sites but some would allow you open from the MT4. After opening, search for fx
choice which will allow you to create a demo account from the MT4.
And make all the necessary settings for yourself. Any amount you want, leverage of
1:500 or 1:1000
Then accept anything there and click ok.
 After you have open the account, login and click on the quotes and it will bring you
to a place where the currency pairs are listed,

You will see numerous currencies written there with their own symbols. So now
let’s get to the topic currency pairs.
1. EUR mean euro
2. USD means united states dollar
3. CHF means Swiss France
4. GBP means Great British Pounds
5. AUD means Australia dollar
6. NZD means New Zealand dollar
7. JPY means Japanese Yen
8. CAD means Canadians dollar
9. XAU means gold
10. TRY means Turkish lira
11. CNY Chinese yen.
If the currency pairs is few, you can click on the + plus sign on top to add more from
the major currencies folder for now.

Those are some of the currency pairs we trade. There are more, but we will be
seeing them as we progress. They are always in pairs eg EURUSD, USDJPY,
GBPUSD, USDCHF, and EURGBP and so on. (Sell the red and buy the blue)
Taking USDJPY for example the first pair is called the base currency (USD) and the
second pair is called the quote currency. In the case USDJPY you may see
differences in them due to different brokers. There are many brokers in the system
and they all have their sides of services. The link to use to create a life account of
your own For life account, you need means of identification, national ID or passport
or driving license. Any of the above three will be accepted as a means of
Identification.
Secondly, you will be asked for approve of address. Here too you will have to use
recent bank statement, recent utility bill eg water bill or light bill. Under currency
you would have to select US dollar. NOTE. It is when you are opening a trading
account that is where you will select the account type. The registration is in two
phase. After you have opened the hot forex account, you now login to your hot forex
dashboard and click on menu. And there you will see where to open a trading
account which is the second phase.

How one can fund his account. Click on the deposit on your dashboard and click
local bank transfer you would see their bank numbers. Copy it out and make your
transfer to that account. Under the narration input your hot forex ID and your
name. Apart from local bank deposits you can also see other deposits like shrill,
PayPal, master card, bitcoin’s, net teller and so on. Just select any of them which is
convenience to you.
Look at this image. The part labeled purple is the normal volatility of the currency
pair’s whiles the part labelled red is the massive volatility caused by NFP. Notice the
sharp dip. That dip right is over 100 pips. Remember this is a laptop image. We
would discuss what pips means later so that you all know what it means for a
currency pair to move 100 pips in 5 minutes.
Here is my trading for today. Closed with a net profit of $ 87. That’s enough for
me, I don’t have to answer any boss. I also drop the trade for the student in the
students in the former batch because they have all understood how to place all the
order I call and it still don’t hinder my own profit. That if one group of forex.
Someone else profit doesn’t hinder yours. No competition.

Currency pairs is one of the most popular things traded on the forex market. e.g.
GBPUSD, USDJPY etc. so let’s see what it means once again, open to the MT4 and
click on the quote

And it will bring you here

 To add the currencies click on the + plus sign to add more pairs. It would take you
to a folder, open the forex, the related once and add few. The red once are sold and
the blue once are bought. Also in the figures in dollar, blue is profit, and red is loss.
The currency pairs are quite much and as you click on that + sign you would see
many of them. Now these currency pairs are not listed singly. But are rather listed
in pairs.

Please let’s follow closely from here as I would be explaining something really
important here.
Let’s take USDJPY. The first currency is the base currency whiles the second
currency is the quote currency. Now except in few occasions. The base currency is
usually stronger than the quote currency here USD is the base currency and the
JPY is the quote currency. You are all aware that the USD is stronger than the
Japanese yen.

Let’s see another example, GBPUSD here GBP is the base currency whiles the USD
is the quote currency. You all know the reason for this, because pounds sterling is
more that the USD that is pound is stronger than the dollar. Hence it is the base
whiles the USD is now the quote currency.
Let’s see another example. EURCAD. This is called cross currency pairs. In forex
any currency pairs that does not have the USD inside is a cross currency pairs. So
this pair has no USD as part of the quote; hence it is a cross currency pairs. The
spread are always higher than USD pairs. We would come to discuss what a spread
is later. So in this example, EURO is the base whiles CAD is the quote.
Now before you understand the exception let’s a look at those figures by the side of
each currency pairs

Now get back to your MT4 and look by the sides of those currency pairs, you will
see two sets of numbers. Some are in red whiles others are in blue color for now just
focus on the numbers. Out of the two sets of numbers, we would be talking about
the first one for the day. I always like discussing these complicated things gradually.
We will talk about the other one later.
So let’s start the first example I gave which was USDJPY. If you look by the side of
the JPY in this screenshot you will see number written 111.44 though if you guys
have noticed from your chart it’s constantly fluctuating. But let’s use just a single
value in that screenshot to explain what these numbers means. So you will see
USDJPY 111.44 remember that, USD is the base here while JPY is the quote. What
that number means is that it’s telling you, how much of the quote currency would
you required to obtain one (1) unit of the base currency. So in the above example
you would need 11.44 unit of JPY to buy 1 unit of the USD. Let’s take another
example to explain it again.
Let’s take EURUSD as an example remember that, here EUR is the base while USD
is the quote.
This is because EUR is stronger than USD. By the side on your MT4 you would see
something like EURUSD 1.1689. Taking the static value of the screenshot as an
example, remember I told you guys it’s always fluctuating. Those looking at their
MT4 now will testify that. EURUSD 1.1689, what is telling us is that, you need
1.1689 USD to get 1 unit of the EUR currency. Further testifying that, EUR is
stronger than USD.

Now let’s use an example closer to Africa here in the image, you will see US dollar
paired with Nigerian naira. You see it written as USDNGN but it sides you would
see its own figure written as USDNGN 359.00 what this is telling u is that you would
need 359 units of the Naira to get 1 of the US dollar. Remember USD is the Base
there while naira is the quote. So let’s get some few exceptions there some cases that
you would see that quote currency is clearly stronger than the base but it still
written first. A clear example is EURGBP as someone who has receive3d this
training as not as some three days seminar. All you need to do is to look at the value
by the side. Let’s see the value and clarify it.

In this screenshot EURGBP has a value of 0.8924 you will see something like
0.8924. Those in math’s would have observed something that the value 0.8924 is less
than 1 and it is telling you that you will need 0.8924 GBP to get 1 unit of EUR. So
you would immediately know that even though EUR is written first but still the
GBP is still stronger than it. Another example of the exceptions.

In this screenshot you would see AUDUSD at 0.7376 it is clear to everyone that USD
is stronger than AUD. Hence it is supposed to be the based. You would now be
asking why AUD was written first before the USD. Before you ask that always the
value beside it to know if it is greater or less than 1. In this example the quote is
written as AUDUSD 0.7376 that means you need less than 1 dollar that is 0.7376
USD to 1 unit of AUD.
Apart from these few exceptions generally, the first currency which is the Base is
stronger than the quote currency. Also like I explained above, the value beside it is
how much of the quote currency you need to get 1 unit of the base currency. Our
next topic which is MT4 is what we will be making referencing constantly as we go
ahead.
WHAT IS PIP? All those introductory topic were meant to build you guys up.
Trough out your journey in forex. You would continue to hear this word time and
time again. It is the basic and bedrock of your analysis and profit calculation.
In forex a pip is the smallest amount by which a currency quote can move. Take a
pip to be compared to a cell in biology. So it’s is the smallest unit of a currency pairs
in forex. However as we move ahead and go higher you will get to see the concept of
micro pips, but for now let’s start from these basic one. Before we begin, go to your
MT4 and select setting and tick the advance section.
Once you do that your quote will arrange like this, and the last digit would be written as a
superscript. Now in the calculation of pips you should start from the fourth decimal place
(4th) though like always, there are some few exceptions. I would start with the usual and
also move to the teach you guys the exceptions. Note. Most forex traders miss this
foundation which intern make things a very difficult for them. If you foundation is shaky in
pips calculation, you would not follow us when we are placing orders or doing some
analysis because you would be confused.
Let’s take EURUSD as an example. In this image, the quote of EURUSD is written
as 1.1689 remember a pip is the smallest unit by which a currency pairs can move.
So to start calculating the pips, you always start from the 4th decimal place. The 4th
decimal place in the above figure is 9 so that is where the calculation will start from
so if EURUSD fluctuates and moves from 1.1689 to 1.1690 it means it has made 1
pip.

Another example, taking USDCAD which is currently at a value of 1.3167 so is

USDCAD fluctuates and moves from 1.3167 to 1.3168 it has also made 1 pip. Now
assuming it moves from1.3167 to 1.3169 that means it has made 2 pips.
Note for every move in pips, we are adding that value to the 4th decimal place. Thus
for a move of 1 pips we are adding 0.0001 to the 4th decimal place. E.g. 1.3167 +
0.0001 = 1.3168. So any method you want. But the most important thing is that, you
need to know that, the change is starting from the 4th decimal place.
 You know one funny thing is that, people think that, as a forex trader, you usually
cross your legs and move rain on as from above. They don’t actually knows how we
go about analysis this very large market. That is why when you see your alert, you
spend it with confidence because you worked for it.
Anything that anybody shows you in this life that comes on a platter of gold, my
brothers and sisters run because it’s a scam. Nothing good on this world comes easy.

We are still on pips calculation, and is getting this hot what of when we gets to
Fibonacci sequence or Elliott’s wave. But never fear, if someone has been able to do
it, you can also make it.
Still at the USDCAD at 1.3167 so assuming this currency pairs makes 10 pips it new
value will be 1.3177. How did we get this? If 1 pip is equal to 0.0001 then 10 pips is
equal to 10*0.0001 = 0.0010 therefore 1.3167+ 0.0010 = 1.3177.
Another example if USDCAD makes 20 pips movement at 1.3167 is going to be
1.3187. How did we have this? If 1 pip is 0.0001 therefore 20 pips = 20*0.0001 which
will give us 0.0020 then we add it to 1.3167 to obtain 1.3187.
So if we have 0.6783 and it makes 100 pips movement, is going to be 0.6883. As you
can see, it looks like it is 0.6783
+ 100 it get 0.6883. Yes it is. But those who has intend to
use calculator to do it, calculator will give you wrong figures if you are to input it in
this way. It will rather take the 100 as a whole number and remember garbage in
garbage out.

Now the ones we have been doing for most currency pairs, the counting of the pips starts from
the 4th decimal However in JPY pairs and Gold pairs. It's different with some other minor few
exceptions, but these 2 are the major traded pairs that have this exception to the rule, hence we
need to look at them closely let’s start from JPY pairs

JPY... Means Japanese Yen

Example of JPY pairs include

USD/JPY

EUR/JPY

GBP/JPY

CAD/JPY

AUD/JPY

Etc. Here remember that JPY is the Quote while the other currency written first is the Base
currency believe we still remember our Lectures on Base and Quote for JPY pairs... U start
counting the pips from the 2nd decimal place not from the 4th decimal place like we do with
majority of other currency pairs

Let's see some examples.

From the image above USD/JPY is currently at 111.21 USD/JPY......111.21

So if USD/JPY makes a move of 1 pip It would become 111.22 If it makes a move of 3 pips
from 111.21 It would become 111.24 If the pip move was 10 pips from 111.21 The new value
would be 111.31 Hence for JPY pairs, 1 pips is equivalent to 0.01 Unlike for other pairs where 1
pip is equivalent to 0.0001 I hope this is clear. As usual let's start simple and build up. From
146.13 if it makes a move of 5 pips, what would be its new value? It will be 146.13 if it makes
50 pips it will be 146.63.

Let's move on to Gold pairs, which is the second major exception

Remember Gold is represented in MT4 as XAU/USD XAU was derived from the Latin name of
Gold that was also used in the periodic table So if you see it written as that, know it's still gold
Let's move on So for Gold, The pip count starts this time around from the 1st decimal place
Remember JPY was from the second decimal place and others was from the 4th That’s why Gold
pair is very volatile.

Let's see some examples Let me just take 1....looks like it seems urgent for you. Normally it's till
the end

That's what I'm saying we have seen examples on JPY and other majority. Now I want to take
some examples on Gold.
Here the value of gold is at 1224.17 for 1 pip move in Gold From 1224.17.... If it makes a move
of 1 pip, it would now have a value of 1224.27 U guys should notice that I didn't say 1224.18 It's
because I didn't regard the 2nd decimal place there Let me give another example If it makes a
move of 5 pips from 1224.17 It would now have a value of 1224.67 See how I'm adding my pips
to the 1st decimal place figure... Not the 2nd Solve it, if it gets complicated for you. For JPY
remember that 1 pip is *0.01* (not 0.0001) so if 1 pip = 0.01 100 pips would be 0.01*100 = 1
Hence add 1 to 146.13 146.13 +1 = 147.13.

One more example on Gold before we move on

From that

1224.17 If Gold makes a move of 8 pips what would be its new value? So that's how u
manipulate your Calculations on Pips to place your Take profit targets, which we would be
seeing soon. With this foundation, when we get there, everybody would be following.

WHAT DOES BUYING AND SELLING REALLY MEAN IN FOREX

Anyway FOREX is not like the Market in Makala

These are names of market in Nigeria so let's really explain what we are doing in FOREX and
how we make money from both sides. Let's open up our MT4, I want to show you guys
something.
Let everyone opens up their MT4 and go to any currency pairs and click on that chart
logo.

When the currency pairs open click on that point labeled with a red arrow.
When you click there it will bring you to this place where you would see these 2 icons. Buy
and Sell.

Now why those 2 icons are they is because

In Forex, U can either decide to BUY OR SELL AT ANY PARTICULAR POINT. U don't have
to buy before you sell. I would explain this now Just follow me closely.

Now look at this trade I did the other day I bought Brent oil but sold GBPCHF, GBPUSD and
AUDUSD I never had to Buy GBPUSD, XAUUSD or GBPCHF before I sold them immediately
I click on that Sell button. It would open up a Sell order for me.
 Also assuming, I want to BUY. Immediately i click on the BUY button, It would place a BUY
order for me The Big question is now when will I Place a Buy order and when would I place a
Sell order Now, let's get to it After your Analysis and you Notice that a Currency pair would
rise... U BUY While in reverse when you notice that a Currency pair would fall, U would SELL
the pair. (I.e. Place a SELL order) That means in Forex, we Buy when a currency pair is rising
and SELL when it's Falling Let me give a practical example or something in our real financial
market that explains this or give you an idea of how this works.

Let's assume U knew Ghana Cedis would rise 2 years from now. And you bought $10,000 and
kept in a domiciliary account when you bought this $10,000. U bought it at a rate of 43 Ghana
Cedis Now 2 years later Ghana cedis rose to 4.8 Ghana Cedis per dollar. That means that
$10,000 u have in that account. Would now be worth $48,000 Ghana Cedis Now u didn't actually
do any business with this money U leveraged on the fact you knew that Ghana Cedis would rise
and U bought and kept currency in a stronger Base currency which in this case was US dollars
now currencies are constantly doing this in the financial market.

Let me give another example with the Naira for our Nigerian counterparts Assuming u knew
when the new Government came into regime that dollar would escalate and Rise Before the
election, Dollar was around 200 to 250 Naira or so Now there was a time in 2016 when dollar
rose to 450 naira Assuming u knew that this would happen and you used. 200,000 to buy $1000,
just 1 month before the election (remember our Fundamentals)
Immediately after the Election when it shot up towards 450 NAIRA that $1,000 u bought would
now be worth #450,000 Just by leveraging on News and your knowledge of how the financial
market works Now you didn't actually do any business with that former #200,000 but it rose to
#450,000 Just in 1 month because of changes in exchange rate Now this changes constantly
occur in the financial market However this is just to enable you understand what’s happening It’s
just a basic example Let’s now extrapolate it to the FOREX market

Now in Forex, u don't actually need to have #200,000 or invest in 43,000 Ghana cedi’s to make
this amount of money Also u don't have to wait for 2 years or 1 month for it to rise U are
however taking advantage of small changes in pips to make your money Immediately u click on
that BUY button and that currency starts rising that minute. U would start making your money
that same minute Also if you know it would fall and click on that Sell button U would start
making your money that same minute

The profit is significant because your Broker offers u what we call leverage. We would see the
meaning later So I would give all of us am assignment tonight Pick up any Currency pair of your
choice Note down the value, on piece of paper Let me continue with the assignment I would
answer later So after noting down the price... Open that place u clicked Buy and Sell Click on
Buy order Also Click on a sell order when you wake up in the morning Check it back again one
would be in profit with a blue color Check back at the chart and note down the new price. Note
down whether the price increased or decreased

Assuming u knew that dollar would fall from 450 Naira to 360 that it's currently is U would
immediately sell because if you don't From 450,000 Ur money would go down to 360,000
actually it's not that straight forward.

CONCEPT OF LOTSIZE

Because people have been asking questions regarding that... So that it would answer all the
questions and make things clearer Lot size in FOREX is the amount or quantity of a particular
currency pair that u trade In FOREX Market, these Currency pairs are not traded singly. They are
traded as multiples of units. More like they are traded in Bundles or Packs. That's what is making
those micro changes in value appreciable these bundles or packs of Currency pairs are what is
referred to as Lot size In FOREX, there are 3 major types of Lot size
Others are multiples of these 3 that I would mention now.

1) *Standard Lot size*

2.) *Mini Lot size*

3.) *Micro Lot size*

Let's start with the first

Also let me show you guys where Lot size can be changed in our MT4.

If any that place that the blue color is pointing is where we change the lot size to the lot
size of your choice. Then where the four red arrows are pointing is where you increase or
decrease it. To the lot size of your choice. Others just type it in directly, it depend on the
method you want to use.

So in MT4..... Standard Lot size is represented by the Figure.... 1.0 Mini Lot size is represented
by the Figure 0.1 While micro Lot size is represented by the figure *0.01* Now, Remember I
told u guys that Lot size signifies the amount of a particular currency that u are trading on Let's
start with the first

Standard Lot size signifies *100,000* units Lot size signifies *10,000* units

*Standard Lot size* = 1.0

2.) *Mini Lot size* = 0.1

3.) *Micro Lot size* = 0.01

Micro Lot size signifies *1,000*

That means when you click 1.0 (standard Lot size) and entry a trade... U are Buying or Selling
100,000 units of that particular currency pair Also When u input 0.1 (mini Lot size) and enter a
second trade U are Buying or Selling 10,000 units of that particular currency pair So also for the
micro. When you input it, u are Buying or selling 1,000 units of a Currency pair let me use an
example to illustrate this

I like teaching with examples that are very basic and everyone can relate to... Let me use a
normal trader as an example let’s say a Trader that sells Jeans in the market U all know that the
trader won't just go to a Man that imported Jeans and just buy a single piece. He would
definitely buy the Jeans in Bundles Picture Lot size as that Bundle of Jeans. I.e. u are buying a
Bundle of a currency pair. Now let's still continue with these example below

Let's say we have 3 traders

*A* *B* *C* Trader A goes to the importer and Buys 100,000 Bundles of Jeans. Trader B goes
to same importer and Buys 10,000 Bundles of Jeans. While Trader C goes to same Trader and
Buys 1,000 Bundles of Jeans. U all would agree with me that trader A, Would not have the same
profit as Trader B. Trader A would have higher profits. While Trader B would also have more
profit than Trader C This is because these 3 traders bought 3 different quantities of same item
this is exactly the concept that occurs in Forex Someone that traded with 1.0 Lot size would have
more profit than someone that traded 0.1 Lot size who would also have more than someone that
traded 0.01 Lot size Now let's get to the Pip value in each of the Lot sizes For Standard Lot
size... 1 pip is equivalent to $10 For *Mini Lot size ...1 pip is equivalent to $1 While for *Micro
Lot size* ...1 pip is to $0.1./ 1.0 Lot size. 1 pip = $10/ .1 Lot size. 1 pip = $1/ 0.01 Lot size. 1 pip
= $0.1

SUMMARY 1.0 Lot size. 1 pip = $10/ 0.1 Lot size. 1 pip = $1/ 0.01 Lot size. 1 pip = $0.1

Now remember for those 3 traders of Jeans, I mentioned above. The amount of Bundles they
would be able to afford would depend on their amount of Capital. (IE Their business capital) The
trader that bought 100,000 bundles of jeans entered the business with a much larger capital than
the Trader that bought just 1,000 Bundles of jeans I believe this concept of Lot size is well
understood So if 3 Forex Traders entered a Trade position at the same time

And they all made 10 pips. Even though they all made 10 pips. Their profits would be dependent
on the Lot size they traded. Let's say Trader a traded using 1.0 Lot size Trader B, traded using
0.1 Lot size While Trader C entered same trade using 0.01 Lot size Even though they all made a
profit of 10 pips. Trader A would make a profit of $100 Trader B would make a profit of $10
While Trader C would make a profit of $1. And each of them used the Lot size that their
accounts can accommodate. That is the capital on their accounts

So let's move on to the next topic That's why u have to make analysis before you enter We don't
enter trades blindly as Forex traders U would see us staring on Computer screens for long before
Clicking open a trade It's Analysis that we are making... Some might take minutes. Some would
enter hours before you open the trade don’t just Click on Buy and Sell blindly.

CONCEPT OF BID AND ASK PRICE

Some of you may have been wondering why there is usually two sets price besides all
currencies. Let's check our MT4 to confirm this. U would see something like

USDCHF....0.9940 / 0.9942. The first price on that sets of Quotes is called the BID PRICE
While the second price is called the ASK PRICE let’s now get to what they mean The BID
PRICE is the price that Buyers are willing to Buy. While ASK PRICE is the price that Sellers are
willing to SELL this may be looking complicated but as usual, I would use Simple things
occurring around us to explain the concept to. U people I seriously don't believe that Forex
should be hard to understand... Its people that try to idolize it so that it would look very hard, so
as to limit these riches to a limited class of people

So let me use a Local example to help you guys understand what this really means. Let's get to
our Local Banks If a friend of yours from US sends dollars and you walk into a Bank to
exchange it to Naira. Let's say u have $1,000 Bank would collect it from u and give you
#360,000.

Telling you that $360 is CBN rate now if you want exact same $1,000 the next day to pay a
Client. And walk into the same Bank... They would ask you to pay #380,000 and tell u that Bank
sells at #380 So in this scenario 360 is the Bid price for Naira, while 380 is now the Ask price In
the first instance,

The Bank is buying your dollars, hence they are the Buying and are willing to buy at #360.
While in the second scenario, They are now the Sellers and are only willing to sell to U at #380
That's where the above definition came from Let me repost it again The BID PRICE is the price
that Buyers are willing to Buy.

While ASK PRICE is the price that Sellers are willing to SELL Now the difference between the
Bid and the Ask is called the Spread In the example I gave above... 380 - 360 = #20 Hence #20
is the spread This Spread is the Profit of any financial institution #20 is the profit of the Banks
So also in Forex... Spread is the profit of the Broker... However it's now estimated in pips. So in
this example I gave above USDCHF 0.9940/0.9942 difference between these 2 figures is 2 Pips
Hence 2 pips is the profit of the Broker.

That's where they generate money to pay staffs, maintain sites and all that. And you pay this fee,
immediately u enter a trade. That's why if you notice, all trades u start on the. Forex market starts
with a minus and gradually grows into a profit so you pay the pip immediately u enter your trade.
That's the basically what spreads are So the 3 are linked together BID, SPREAD AND ASK
THE BID IS THE FIRST IN THAT SET OF QUOTES The Ask. Is the Second price out of the
two? While the difference between them both is called the Spread.

Just look at the four options and know when you are always free to monitor and analyze your
trades. Lot size affects Lot size too.... The way it determines the profit. The only thing is that, U
would recover any spread immediately your trade starts moving In Forex, we even don't
remember that Spreads exist... U are constantly making profits from all trades... That spread is
the least of your problems. Our main focus is Analysis.

FORMS OF TRADING ORDERS

In Forex there are basically 2 major types of Trading Orders INSTANT MARKET
EXECUTION and

2) *PENDING ORDERS*

PENDING ORDERS IS FURTHER DIVIDED INTO TWO

a) *STOP ORDERS*

b) *LIMIT ORDERS*

Let's start with the first

INSTANT MARKET EXECUTION instant market execution means Buying or Selling of a

particular currency at the current market price let’s say u logged in to MT4 and see that
AUDUSD is at 0.7352 If you immediately click on Buy or Sell... The BROOKER would open
up a trade position for you at that instant price the opposite is pending orders... In which you are
entering at a Future price.

Meaning price is not at that value yet. However u have an interest of entering when price gets to
that level Let's still continue with Instant market execution Let me show you guys where to set
all these in your MT4 Let everyone open their MT4.
Normally when you get to that place that you normally place your buy and sell orders. You
will see that it’s is default set as instant execution as shown by the red arrow. However when
you want to see others forms of Market orders, U click on that drop down arrow pointed by the
Purple arrow.
When you click on it, the other market others will appear.

So that's where you would see others forms of market orders... Be it Stop or Limit orders so like
I said in Instant Market Execution... U are entering the market at that instantaneous market price

For example, in this image... When entering a trade on AUDUSD, I would enter at a price of
0.7374 so that's what instant market execution means. I would talk about Stop orders and Limit
orders when we discuss Support and Resistance in our outline

Because it's an advanced form of placing orders. U would need to understand the basics of Forex
and Resistance points before you understand what a Stop order is. There are what we call turning
points so I normally leave Pending orders till we get there. However for this basic class, just
know that Pending orders are market orders that you place with an intention of entering at a
Future price. So let's move on to our next topic

CONCEPT OF TAKE PROFIT AND STOP LOSS. Take profit and Stop loss are other forms of
market orders but in a different category of its own. Let's start with the first one, so as to explain
what we mean

TAKE PROFIT: Take profit is a market order that instructs your Broker to close your trade for U
when it reaches a particular number of pips in your favor It would close the Trade and add the
profit in your balance These Take profit order takes effect even if the trader is not online That's
the beauty of Forex The truth is that most Forex traders are busy engaged with other activities,
hence it's not everybody would be online monitoring their laptops As am giving you this
seminar, a trade is currently open for me in EURUSD... but my TP is there so am not monitoring
it to close it when it reaches where I want.

Take profit is a modified form of market order that gives instructions to your Broker when your
trade moves a certain number of pips in your favor normally the market fluctuates up and down

Now. Sometimes you might decide to place a trade and when it has gotten to the point u want, U
can now highlight it and close the order by yourself The stress with this method of closing trade
is that u have to be online always to monitor the trade And secondly most currency pairs takes
time to move to get to a certain point And it won’t be feasible for a trader to just stay in front of a
computer screen for that long, monitoring a trade. It would inconvenience the individual that is
why Take profit was developed Take profit, Closes your Trade automatically and adds the profit
to your account whenever the Trade reaches you.

Target point this form of order executes itself automatically whether the Trader is online or not
online lets now see where to input this order into your MT4....before proceeding to how to
calculate it.

In the image above the area labeled with red arrow is where you input your Take profit value
while the area labeled in purple arrow is where you input your Stop loss value.

Let's now start with some basic calculation I would start with an arbitrary number first, then i
would go further to give real examples from charts Let's say EURUSD is at $30 Remember I
said this is an arbitrary value Let's say u see EURUSD.... $30 And U want 40 pips as u for that
trade Let's assume pip here is dollar So since you want 40 pips as profit, U would set your TP at
$70 How did we get this. We added 40 to the initial value of 30 and we got 70 so if the trade
rises from 30 and climbs to70... The trade would automatically close itself even if I’m not online
What I have to do is to input 70 in that space I labeled with red arrow Let's.

NOW GET TO STOP LOSS for same trade Stop Loss on the other hand is the opposite of Take
profit.
It's a form of market order that instructs the Broker to close your trade when the market is about
to go against U It does this automatically even if the trader is not online Let's still see that same
trade we are using as an example Remember I told you guys that the price we entered was $30
Assuming u said that, U don't want to lose more than $10 in that trade.

That means my Stop loss is 10 pips to know the value to input in your MT4. Subtract 10 from the
current value of 30. We now have 20 so the value of our stop-loss is $20 Remember in Buying
we want the price to rise Take note that all these examples are for Buying, we would see for
selling later So like I was saying. In buying u want the price to rise So if the price of this pair
didn't rise again and starts falling, Ur Broker would automatically close it for U when it reaches
the price U inserted Remember we got $20 in our calculations and that's the value we inputted in
that Area with Purple color So when the price starts to fall from $30 and falls to reach.... $20.
The trade would automatically close that means, U only went a negative of $10. Your account is
still safe, because even if it falls to $5. U are out of the trade so for the example i gave above for
a currency pair with $30 as current price Our TP... $70 and Our SL.... $20 that’s using 40 pips as
TP and 10 pips as Stop loss.

Let's now see real examples.

if any let say we want to buy USDCHF at an ask price of 0.9949 And we want 50 pips as TP
and 10 pips as Stop loss Our Calculations would be as follows Let's start with TP 0.9949 Plus 50
pips would be 0.9999.

So we would just go to that area I colored with red arrow and type in 0.9999. Once the Trade
rises from 0.9949 to 0.9999 it would close automatically assuming u used 0.1Lot size, it would
add $50 to your account. (We know that when using 0.1 as Lot size, 50 pips is equivalent to $50)

Let's now get to Stop-loss since we are saying that we don't want to lose more than 10 pips in
this trade... Let's see where our TP would be So what we do is that we minus 10 pips from this
our current price, By doing that we would have 0.9949 Minus 10 pips... We would now have
0.9939

Hence our Stop loss would be at 0.9939 and that's what we would input to that purple area
pointed by the arrow

Hence, if the currency wants to fall instead of rising and falls to that value of [Link]
Broker would automatically close the Trade so as to protect your account For mini Lot size..
(0.1) I pip = $1 Hence 50 pips = 1 * 50 = $50 Hope its clear now.
You guys should solve this example on EURUSD from the image above you will see that
the ask price for EURUSD is 1.658 (remember it’s ask price that we make reference to
when buying and not the bid price.

So for the above trade... We want a TP of profit of *40 pips* and a Stop-loss of *5 pips* what
values should I input in the MT4 under the respective TP and SL boxes? Ans. TP 1.1698 and SL
1.1653.

A SELL SCENARIO

Let's follow closely once again let’s take an imaginary Currency pair as USD/TTT Whose Value
is currently at $100? I want to Place a Sell order on this Currency pair and i want a TP of 60 pips
and a Stop loss of 10 pips Now this is a case of Selling, Remember that I told you guys that when
Selling, U want the Currency pair to go down So we want it to start falling from that price of
$100 downwards, that's when we would make money So since we want a TP of 60 pips, our TP
would now be at 100 - 60 = 40 If you notice I didn't add this time around because I don't wish for
it to go up, I want it to go down because am selling. That’s why I subtracted.

Hence u have noticed that I did opposite of what I did when I was buying so our TP should be at
$40. That's what I would input in that box I pointed with a purple arrow so if the currency starts
falling from this current price of $100 and reaches $40. My Broker would automatically close
and add my $60 profit to my account For the Stop loss in this case of Selling It's the opposite of
what we did in Buying

So I don't want to lose more than 10 pips in this selling trade... Remember its current price is
$100. What we. Would do is to add 10 from the current value we now have 100 +,10 = 110
Hence we set our Stop-loss at 110 and input it into the MT4 If this Currency now fails to fall like
we wanted and starts rising from this $100

Immediately it rises and reaches $110 Your Broker would close the Trade for U to protect your
account so u guys noticed that we did opposite of what we did in Buying So for Buying U are
adding to get your TP And subtracting to get our Stop loss. While in Selling, we are subtracting
to get our TP and Adding to get our Stop-loss

Let's now see a real example before I give you one to solve.
Let now use Australian dollar vs Canadian dollar as an example. Let’s say we want to sell this
pair. Its current price is at 0.9668. Take note I used the bid price here and not the ask price. So
don’t forget that in selling you make reference to the bid price. Let's say I want 30 pips from
the above trade and want only a Stop-loss of 5 pips.

To get our TP we would have 0.9668 - 30 pips we now have 0.9638 this above value is what we
are going to input as our take profit. So when price falls and reaches to that level of 0.9638 Your
Broker would close and add your 30 pips profit equivalent to your account depending on your
Lot size For our Stop loss We would now add 5 pips to that same BID PRICE So we have
0.9668 + 5 pips We have 0.9673 That's what we would now input as SL.
If any this Australian/ new Zealand dollars let’s say we want to place a sell order on this
pair and we want a TP of 57 pips and a stop loss of 10 pips. What would be our TP and SL?
Ans. Tp…… 1.0830 and sl. 1.0897.

LEVERAGE

Leverage is a concept in Forex market that enables traders to participate in this large market
effectively this is given to traders by their Brokers U all saw it when we were opening our Live
Trading accounts U would figures like

1:100

1:200

1:400

1:500

1:1000

Now remember when I did Lot size, I told you guys that u are buying these Currency in bulks I
said that Standard Lot size is 100,000 units Mini lot contains 10,000 units of that particular
currency Now to buy this large quantity would have required a large amount of capital Imagine
using $10,000 to buy one currency pair It would have only been Big Banks and wealthy
individuals that would be participating in Forex

However the emergence of Retail Brokers gave everyone, no matter your class or annual income
to participate in this large market Brokers all over the world made this possible by offering
traders what we call Leverage. That concept of Leverage gives traders a helping hand by
multiplying their capital by a certain amount so that they can actually participate so if you own a
$100 account and you chose a 1:500 leverage. The market allows you to make a trade worth
$500 * 100 = $5000 so you can place a trade worth $2500

If you own an account of $100 and chose a Leverage of 1:400 The Broker using this tool of
Leverage can allow you place a trade worth 400 * 100 = $4000 So u can place a trade worth
$4000 But not more than
That's why for example... If have a $100 account. And you want to place a trade using 1.0 Lot
size may be because you want larger profit. The trade won't enter because even with your
leverage, U can't place a trade worth $100,000. So Leverage is that multiplying power that have
changed Retail Forex trading everyone can now participate

So if you own a $500 account and you chose a 1:500 leverage. The market allows you to make a
trade worth $500 * 500 = $2500 so you can place a trade worth $2500 so if you own a $500
account and you chose a 1:500 leverage. The market allows you to make a trade worth $500 *
500 = $2500 so you can place a trade worth $2500 Market has closed for the Week. And Forex
traders are currently relaxing.

However you can increase your equity, depending on your capacity and how much profit u are
targeting per day. Always feel free to call her only on Working days. Email for the account
manager oomisope@[Link] Email directly to hot forex Support is
Support@[Link] Use any of the above communication media

LAST LECTURES ON STAGE ONE AND TWO.

Welcome Everyone

Today we would be rounding up our Lectures on Stage 2, with some very important topics on
Trade Management.

RISK MANAGEMENT.

Risk Management is a very important aspect of Forex trading U need to manage your accounts
properly as a Forex trader, it always gives you an overall edge on your balance sheet one
important of risk management is Stop-loss which we discussed yesterday... Whenever u enter a
trade, never forget to put your Stop-loss. Don't rush into trades... Cool down and place your
trades People take 1 hour to review trades before placing them so take your time and calculate
where you’re Stop-loss should be. Above Resistance or Support points. We would discuss all
that soon Next method of managing Risks is your Lot size Please let’s all take that very seriously
What Kills people in Forex is *GREED*
Someone repeat *GREED*

I have been able to stay long in Forex because of I was able to learn about this simple yet
important aspect of Risk mgt. This is my 4 years plus in the Forex market and I have touched
Lots of life either directly by teaching them or giving them signals. U all see my trades whenever
I paste them it’s very rare that you see me using a Lot size of 1.0 I rarely use it Even though I
have a $4000 account. I range from 0.1 to 0.5 but u would see some people... They have an
account of $100 and they would want to use 1.0 Lot size That's Greed Because they know that
1pip = $10 while using 1.0 Lot size Use a Lot size commiserate to your account It's not a must
that you must make $200 in a day U can make that $200 in 4 days. Its better u build gradually
than build rush to make money quickly I always believe in slow and steady I make between $50
to $90 daily on forex and am OK with that. In 1 week even if it's $250 I make. That's over
150,000. Who pays me that in 1 week?

Because not all trades would go your way... After your Analysis, News may be suddenly
released and change the direction of the trade. But you would be protected if you are using a Lot
size commiserate to your account even though, we are allowed to use a Leverage of 1:1000. Let's
not abuse that privilege. Use it wisely if u make $50 daily that’s 50 pips it’s achievable. If you
take2 trades and make 25 pips each in the Trades, U would already hit that target for that day.

Our Next topic is

COMMON MISTAKES TRADERS MAKE

I have already been mentioning them little by little during the course of our Training But I
would mention them again I've already mentioned Points such as Forgetting to. Put their Stop
Loss and Abusing Leverage Next is not having A Trading Plan I would be discussing this topic
on details s It's going to be next because it's a very important aspect of Trading Psychology Next
is Demo Trading for so Long.... Though it's advisable for all traders to start with Demo trading In
fact nobody would allow u to start with live accounts

But as U Demo trade for 1 to 2 or 3 weeks. Try to get a live account and be practicing what you
learnt. That's after u must have learnt Analysis One thing with Demo is that, because it's not real
money. U are not bothered... And u are not conscious to monitor your trades. Another point is
Trading too Large for your account I mentioned this earlier when we were talking about risk
mgmt. Eliminate Greed from your Trades Trade with Lot size commiserate to your account We
would still be meeting and addressing other issues even as we go along in the seminar The Next
important topic that we would be looking at is

*TRADING PLAN*

Here is where you would all bring out your Pen and paper Take this Section seriously In fact this
is a topic, U would always make reference to. I always do even at this point in every U do in life,
U need a Plan There is a saying that when one fails to plan, U are planning to fail. So that's why
U need a *Written* Trading plan before you kick off your Forex journey Take note that word
written U need to write it down Next is that U need to follow this plan judiciously. Never try to
adjust it to suit your present market conditions or biases Most Traders neglect this vital aspect of
Forex. Also while forming your plan, it needs to be SMART

SPECIFIC

MEASURABLE

ACHIEVABLE

REALISTIC

TIME BOUND

You need to factor all the above into consideration I would share with U all, my personal
Trading Plan that I normally give my Students This Plan should be like a Guide, so that U can
use it to form yours. It mustn’t be exactly like mine, however it's just a Guide I would want
everyone, to get a Paper and write it down. I said write it down because, U would tend to
understand each concept as you scribble it down

*MY TRADING PLAN*

❇ I would earn 100% of my trading equity in 1 month

❇ I would set a near term goal and make at least 25% make at least 25% of my trading Capital in
1 week and I would plot this target daily
❇ If I am behind my trading plan for the quarter; I would take a brief break to re-evaluate my
trading system.

❇ I would not trade more than 3 markets per day (i.e. more than 3 currencies pairs)

❇ If I have more than 4 loosing trades in a row, I would take a trading break of 2 days to re
access the Market.

❇ Anytime I take a break, I would close loosing trades set protective stops on a Winning trades
and TP at reasonable targets; should I be unavailable and Market gets to my Target level.

❇ I would take 70% out of my account and invest in non FX related business (like Real estate)
and reinvest 30%.

❇ I would record my daily trade activities in my trading log and review them weekly.

❇ I would know my ratios and results and would work to improve on them by at least 5% per
week.

❇ I would invest 4 hours a week to update my Knowledge on Forex and learn new Trading
Strategies

The above is a summarized version of my Trading Plan It shows the salient points in the plan I
printed this out and pasted on the wall near my Trading desk, because the more you look at it, U
would be more obliged to follow the plan While forming your plans, especially your targets,
make it realistic depending on your capacity Because I set my target at $100 per day or another
person sets his at $500 per day. That should not influence yours.

Always make it realistic

Because that My Forex pal Diego makes $1000 to $2000 daily, doesn’t mean I should copy that.
His account is almost ten times mine. He trades with about $30,000 So form yours according to
your strength If for a start, U make $20 per day, believe it's a good start For a little capital of
$100, U can set up your target at $10 to $20 per day. In a week, my brother that's $50 to $100.
That's equivalent of 18k to 36K in a week the main aim of Forex in this your early stage is to
support your normal expenses. Something to make u not depend on salary alone with time, U
would now make it a permanent job. Then u have stabilized in it if you can hit your target of
$100 in a week. In a month that's $400. Which is almost 144K and it's more than some people's
salary in a month with this u can support yourself and your family whether u are in school, doing
a day job or into business. It’s an additional source of income to everyone then as u now grow in
Forex, U can now increase your capital. Hence increasing your daily target A time would come
that u wouldn't depend on your salary again for anything. So always start it step by step.... With
time you will get there Next is that it's important to always review your plan Review it weekly IE
at the end of the Trading week Check your Transaction history for the week.

Have you achieved 1/4 this of this plan.

Where are you currently and what part of your target is remaining that would influence your
Trading for the upcoming week May be if you are few $ behind your target and you analyzed
only 2 currency pairs last week. U might add one currency pair this week to make it 3 and
maximize your profits another important aspect of the Plan is once you have reached your target
for the day. Always close and go and rest for that day. The cash flow would still continue
tomorrow. Forex market has been around for decades, so it won't close that day. So always take
your bow off, when u reach your target. U Guys would notice that immediately I reach my target,
I would close for the day May be, u set a target of $100 per day (let’s assume u have a capital of
$500). Then you have already made $99.2. Some of your FX colleagues just called you that
Donald Trump just pulled the plug on Iran deal that you should Buy Brent Oil And you
immediately rush back into the market Instead of waiting for the next Trading day as if the
market won't continue tomorrow So U must eliminate that factor of GREED while formulating
or trying to stick to your Trading plan By taking the market, slow and steady.

U would always be comfortable with forex So I believe everyone would use this week we are
entering and formulate their own Trading Plan That's part our Assignment for this Week that we
would be free After forming the Plan, Ensure U write it down or *print* it out (Very important)
And paste it near where you think, U would be making your Trade Analysis After forming the
plan, U can chat me up to help U. Review it or if you have any clarification with any aspect of
the Template I gave which u don't understand Like I said, it's a Mentorship Programmed, not just
a Seminar. Hence I would always be there to offer anyone Guide and Support I would stop here
for today.

This would bring us to the end of this Stage 1 and 2.

We would be commencing Stage 3 and 4 Mentorship and Training in the new group. We would
commence upper week this is to give everyone time to raise their Training Fee. If you are
interested, in moving with us to this Training Stage. Chat me up to get the Account Details or the
Wallet address.

Thanks All.

I also forgot one topic, nobody reminded me

The last topic for our Stage 2 is MT4 interface this is about knowing how to use the MT4. Where
to see each functions How to place trades Where to see your indicators Where to input your TP
and SL We have seen some of these during the course of our Training and we would see more as
time goes on However as a form of a Guide, I normally give my students a Link to a video to
watch that explains most

Of these... However as u trade and grow in Forex, u would have all these at your fingertips.
[Link]

[Link] so we can all watch it during our spare time. It’s not a long clip
Just a beginners Guide.