Start Forex Now Day 5
Day 5: Intro to Trading Strategies
Welcome to FxST™ Five Day eCourse – Start Forex Now!
Okay, this is the final day of the FxST™ Five Day eCourse – Start Forex Now. Clearly there’s only so much that we can fit into a this quick start to generating Consistent Bullet Proof Profits. Our goal is that after this course you will a have general concept of Forex and the proper mindset to start creating your own $100,000/yr Business or more in the Forex Market.
Now lets take it to the next level and start learning how to trade with the FxST Start Forex Now eBook. Through out this series you will actually download a practice demo account and start taking the next steps to generating Consistent Profits with Emotion Free Trading. For more details CLICK HERE
The topics covered in today’s course are the following:
- Margin Calls – A Deeper Understanding
- Margin Agreement – Your Brokers Requirement
- Fundamental Analysis – 6 Major US Economic Events
- Technical Analysis – 8 Forex Trading Indicators
Learning Goal: What are the 2 Types of General Trading Strategies?
Margin Calls and Requirements
Since leveraging is all about borrowing money from the broker you need to understand exactly how much risk your broker is going to allow you to take on trades. For example, assume you maintain a margin account and your positions dramatically fall before turning around and rising. Whether or not you have sufficient capital, a broker might have closed out your position during the fall to decrease the broker’s risk and potential loss. That trade could have been at or near the bottom of the price fluctuation. That would result in a margin call to you and you could lose substantial sums of money even though the price rebounded after the broker liquidated your position.
Opening a Forex account, regardless of the type, is similar to taking out a rotating equity loan or maintaining an equity account. The main thing that separates them from the Forex account is that you are required to sign a margin agreement with relation to your Forex accounts. The margin agreement acknowledges that you are trading with money borrowed from the broker and that the broker can insert itself into your trades as necessary to lower its risk and protect its interest. It also explains your liability relating to any losses. After you execute the agreement and deposit the beginning capital to the account you opened, you are ready to begin trading.
Basic Overview of Trading Strategies
Technical and Fundamental analysis are considered the two main forms of analysis in both the Forex market as well the equity markets. However, most Forex traders opt for using technical analysis. The following is a quick overview of both types of analysis and how they are used in Forex trading:
Fundamental Analysis – Using fundamental analysis in the Forex market tends to be somewhat difficult and is generally used to forecast long-term trends. There are, of course, some traders who conduct their trades on a short term basis solely on economic news releases.There are many fundamental indicators that can impact the exchange rate of a currency pair that are released at various times. Below you can find a list of the most important USD news release you should be aware of:
- Core Retail Sales
- Core CPI
- ISM Manufacturing PMI
- Preliminary & Advanced GDP
- Federal Funds Rate (Interest Rates)
- Non-Farm Payrolls
Of course these are not the only fundamental indicators you need to be aware of. There are also several meetings that can provide you with additional information that may affect a market. These meetings usually focus on interest rates, inflation, and other causes of currency value fluctuation.
Sometimes a volatile market is caused by something as simple as the wording of issues such as the Federal Reserve chairman’s discussion on interest rates. The most significant meetings you should be aware involve the “Central Banks.” Simply studying the commentary can help Forex fundamental analysts to better understand long-term market trends and can also help short-term traders capitalize on the market.
Should you opt for the fundamental strategy, you should keep an economic calendar on hand so you know when these reports are available. Your broker should be able to keep you up-to-date on this information as well. Below are a few links to all of the Central Banks around the World:
The website below provides a Free Forex News calendar that you should make a habit of looking at everyday.
When you start trading, we recommend to sit on the sidelines and not trade during these events. News releases can create volatility in the market 15 minutes before and after the news event is released. For advanced traders we also offer proprietary trading strategies for Forex News Trading used by Professional Forex Traders.
Technical Analysis – Helps Forex traders analyze price patterns from the past, much like their counterparts in the equity market. The only difference is that Forex markets are open 24 hours every day. In order to work with that 24 hour a day time frame, some types of technical analysis need to be changed or modified. The following is a short list of technical analysis tools that are most commonly used in Forex:
- Price Action
- Fibonacci Studies
- Moving Averages
- Stochastic Oscillator
- MACD (Moving Average Convergence Divergence)
- Candlestick Charts
- Elliott Waves
- Pivot Points
There is so much more information to cover, that cannot all be fit into a 5-day course to learn but again this is a free five day course.
Take the Next Step…
To your Success,
FxST Senior Trader
P.S. Thank you for taking the time to allow me to teach you a little about Forex trading. I hope you’ll take me up on my Forex Video Course to show you exactly how to take your trading to the next level and build a Profitable Forex Business!