Forex For Beginners A Step by Step Guide

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Table of Content
1 What is Forex?
2 Who is Forex trading meant for?
3 Understanding currency pair
4 What is Pip?
5 What is lot size?
6 The Forex chart
7 Getting a broker
8 What is leverage? How to select the right leverage
9 How much do I need to start Forex?
10 Risk management (All the insight)
11 Placing your first trade
12 Stop loss & Take profit
14 Planning your daily target

What is Forex?
What is forex? In this article I will explain all you need to know about forex!
Some called it FX, some called it foreign exchange either way you called it, it all
mean the same, forex is simply exchanging one currency to another for the
purpose of making profits.
Exchanging of one currency to another is called forex, currency are pair
together in the financial market, if let say EURUSD you open a buy order what
you do is you are buying EUR and selling off USD and therefore exchange as
taking place! And if

You open an order with EURUSD sell that means you are selling the EUR and
buying the USD at the same time therefore an exchange as taking place! Well it
depend on how you look at it, some said currency trading is very difficult and
others said is a scam!
To be honest with you forex trading is way too simple if only you understand
the basic, and the basic is knowing when to buy or sell a currency pair! With
that in place for sure you will be successful! And that is what currency trading is
all about! For summary purpose currency trading or forex is simply

When you buy one currency and sell the other for the purpose of making
profits. What is currency trading? Currency trading is the same as forex trading!
When you exchange one currency to another for the purpose of making profits
or interest or better still money.
Forex trading is when you I mean yourself go through some courses just like
this one and you probably learn all the basic of forex trading, when I mean basic
I mean you totally understand how currency market work, and how you can go
about it yourself, you know exactly when to buy and when to sell.
You know all about risk management, and how to probably make money in
trading by yourself! Well currency trading is a trading where the trader trade
the market by him or herself.
A trader is person who analyze the currency market daily and can spent lot of
time in front of their computer system, a forex trader trade by himself and not
only did they analyze the market but they also know the exact time to enter
and exit a trade.
Been a forex trader is not an easy task anyway because a forex trader is a busy
person all the time.

Who is Forex trading meant for?

Forex trading is meant for everyone! Just that you need to be 18 years old and
above to be able to create an account with a broker, forex trading or forex
market is legal almost 99.9% of the world countries! That is to say forex trading
is legal all over the world, many says forex trading is a scam and others said
forex trading is not legit, while some said forex trading is manipulated but to be
honest none of this is true! Forex trading is never a scam or in legit or
manipulated, forex is one of the oldest internet work at job or business! Almost
everyone can trade forex from the comfort of their home, offices or work place,
making it one of the legit internet business with almost zero scam level to talk
of.
Can I really make money trading forex? This is one of most likely asked question
especially by beginners, making money trading forex is sure and losing money
trading forex is also sure! Now if you know how to trade forex which I know
after this course you will for sure, there is know how you are going to blow your
account! After this course you will always win most of your trades giving you
95% edge over the market always.

Understanding Currency Pair

What is currency pair? This is one of the most important part of forex course
but is been ignore by so many beginners! Not too worry in this course I am
going to cover all of that in one piece! Currency are pair together to form one
currency pair, I mean currency of two different countries combine together
then it form one currency pair, example EURUSD is a combine of European Euro
and the United States dollars to form one currency pair called EURUSD.
Then we have USDJPY this is a combination of United state dollars with the
Japanese Yen that form USDJPY

More into this course is GBPUSD this is a combination of British Pound sterling
and the United States dollars that form GBPUSD.
Then we also have EURGBP this is a combination of European Euro and the
British Pound sterling that form EURGBP.
More into this we have lots of currency pair, we also have the majors and minor
currency pair and also exotic pairs too, as you grow into the world of forex
trading all of that will be well known to you, remember the two different
currency of two different countries are combine together to form one currency
pair. Remember you always trade forex using the currency pair and nothing
else, take your time and re-read this page again if you did not understand the
whole process.

What is Pip?
What is pip? In this part of the course you will learn all the basic of pip, what is
it all about! Pip is the change in value of a currency pair either positive change
or negative change! That is to say a change in value either addition or
subtraction of value, but what is the PIP really mean? It mean Price Interest
Point in forex trading what the trader is more interested on is the pip! My self
personally I am a trader I have lots and lots of passion for pip in-fact pip is the
only reason why all of us trade forex today! If a trader open a position says he
or she enter a new trade the next thing to do is to set the take profit level and
the stop loss level, they are often called the stop levels right? Yes the stop
levels for your information are measured in pips!
Yes they are measured in pips! Now to go deeper pip is the only reason why we
all trade forex. Pip money the way some traders called it in the forex industry is
the sweet money to ever taste as a trader or even individual, will I really make
this pip in the forex trading? This is the likely question many traders especially
the new ones asked, and I keep on telling them that making pips in the forex
trading is simple, but first you need to learn the basic, and some time they do
ask what is the basic? In-fact the basic is to learn what is forex first which we
already talk about in the first part of this course! Just for a flash back purpose
what is forex really? Forex trading is the exchange of one currency to another
for interest purpose! Well I can also said for pip purpose, yes the pip is the
money or the profit we are all looking for during trading.

If a currency pair move from let say 0.12345 to 0.12346 that is move in one pip
up! Now if a trader open a buy position he or she will expecting a pip to move
up in his or her favor any movement of pip down will for sure affect the trader
And if a currency pair move from 0.12345 to 0.12344 that is move in one pip
down, if a trader open a Sell position he or she will be expecting a move in pip
down and any move in pip up will for sure affect the trader.
Normally this is how to calculate pip value. Some broker set currency pair to 4
decimal places right? you maid be wondering yes and some broker set it to 5
decimal places, the last number on the 4 decimal places is called the pip, now
for the fifth decimal places the last number is called the pipette and the fourth
number is the pip, making money in the forex market all you need know is pip
and how to calculate the pip in your favor. Now some currency pair are set to 2
decimal places and some to 3 decimal places example of a currency pair are the
Japanese yen, quote 117.03 or 117.023.

What is lot size?

In this part of the course we are going to discuss what lot size is all about! Lot
size is the amount you are willing to risk in the market or the amount you are
willing to trade with! The lot are of type by type and we are going to discuss it
in this course…..we have standard lot size, mini lot size, micro lot and the Nano
lot size, the standard lot size is represented as 1.0 lot which when converted to
dollars is $10 so if you are trading with 1.0 lot size that is you are trading with
$10, then the mini lot size this is represented as 0.10 lot which is $1 lot size, so
if you are trading with 0.10 lot size you are trading with $1, then come the
micro lot size this is represented as 0.01 lot size, if you are trading with 0.01 lot
you are trading with 10 cent which is $0.10, and the last lot size is the Nano lot
which is represented as 0.001 lot size and is not offer by most brokers and if
you are trading with Nano lot size then you are trading with 1 cent which is
$0.01.
The table above will give you a clear understanding about lot size and how to
calculate it base on this course, in further part of this course I am going to
explained in details how to properly select or choose the right lot size to trade
with base on your account size.
Chosen the right lot size will help boost your performance and make you very
successful trading the financial market, many traders lose their money because
of proper lack of lot size selection base on account size.

The Forex Chart

The forex chart can be very confusing especially for the beginners, but not too
worry because in this part of the course I will explain in details all you need to
know, if you understand the chart then forex trading will be way too simple for
you to trades always! As a forex trader be rest assured that chart will surely be
your friend no matter what! The chart have something we called timeframe,
timeframe is a different time on a chart! The chart start from M1 timeframe to
Yearly timeframe, if you are looking at the M1 timeframe each candlestick
means 1 minute, and if you are looking at the 1 hour timeframe which is the H1
each candlestick means 1 hour and so on, the chart form patterns at times for
traders to know what is about to happen or what has happen already! The
chart show a trader support and resistant which is supply and demand now the
trader will see and read the language of the market and also understand it.

In chart we uptrend and downtrend, the uptrend is when the chart is moving in
an up direction and which a trader can easy ride the trend and make a lot of
profits, while if the trend is moving in a down direction which if a trader decide
to ride it can make a lot of money riding it downward. For more about forex
chart visit my channel click here: Joseph Benson
Getting a broker
Getting a broker can be so challenging but it worth it, a good broker with less
commission can be an extra incentive for a beginner or intermediary forex
trader, if you chose a broker with zero spread and low commission it will be
easier for you as a starter! Broker with high spread and commission is not good
for a beginner and not only for a beginner but also bad for scalpers! If you are a
scalper for sure you will like a broker with high spread at all, this part of the
lesson focus on getting a broker, so now you will say how will I know a broker
have a low or high spread and a low or high commission? Not too worry I will
explain everything, I am not affiliating for any broker have this in the back of
your mind but Icmarket, pepperstone, gomarket, fxtm and lot more are few
good examples of brokers with low or no spread and also low commission.

What is leverage?
Knowing right leverage for your account size is very important! Because
leverage can work for you and also be against you.
What is leverage in forex? Many traders start by chosen high leverage without
even knowing or even thinking of it effect! What is the leverage of a thing
anyway? This is the question I will like a trader to ask! What can leverage do to
my trading account? Yes all of these questions are very vital! Well leverage is a
borrow money to increase your trading position in the forex market! I have new
traders creating a new forex trading account and some of them even go as high
as 1:500 and 1:1000 leverage, to be honest with you they don’t even know the
implications! Leverage can work for you and at the same time be against you!
Yes that is the simple truth, leverage is when you don’t have more money to
open a large position during trading the forex, with leverage trading made easy
and also made dangerous! If you have a high leverage trading account that
gives you an opportunity to enter a large unit of trade and making you fast
profits, and be rest assured if the trade is against you then you will lose the
money also very fast! To trade with leverage you need to be very careful, that is
the simple truth.
Leverage will not only affect your trade but it can take you out of the market
totally! Just as I mentioned earlier leverage can work for you and also be
against you! So trading with high leverage is very dangerous, if you want to
trade with high leverage make sure you know exactly what you are doing, we
all love to make money trading Forex right? That is the spirit! Choose your
leverage wisely, and trade with confidence, for the purpose of this lesson I will
suggest that an average trader should always use leverage 1:100 maximum.
How much do I need to start forex?

Yes this is a very good question I think every beginner should ask! To start forex
trading there is no set amount to start really but there is a recommended
amount you need to start with, I always know that all fingers are not equal that

is to say what Mr. A will start trading with Mr. B cannot afford it so let’s be
honest are clear here! Some will like to start with $100 account size while
others will like to start with $200 account size but a recommended amount can
be as from $500 to $1000 but still starting from $100 to $200 can still do it.
Never think $100 is too small it depend on how well you manage your trading
account that is where risk management have to come in.
Risk management (All the insight)

Risk management is the major reason why you will last long trading the forex
market, without proper risk management there is no how to trade and last long
in the market.
What is risk management in forex? This lesson be a short one because I will try
my best to keep it so simple! Risk management in forex is the ability to trade
and manage your trading account using lot size, percentage to trade with and
ratio of profits, in forex the number one lesson you need to learn is the risk
management, well the basic of forex trading cover all of that but risk
management should come first anyway! No risk management no forex trading,
what is Forex trading? Remember in the previous lesson we covered all of that!
Let me still touch some part for you, forex trading is the exchange of one
currency to another for the purpose of making profits or money! But if no risk
management apply no way to make money in the forex market, risk in forex

play a vital role of you becoming a very successful forex trader, and to be
honest with you all traders need to manage their account, and without proper
risk management the whole efforts is for nothing because nothing will come
out of it except loses and at the end of the day you just blow your trading
account.
Placing your first trade

Placing your first trade can fun at times confusing! But no problem in this part
the lesson I will cover all of that, when you already understand what is Forex
and you learn all the basic now is the moment of truth because you have to
place your first trade, we have metatrader 4, metatrader 5, ctrader and lot
more but the most commonly use is the metatrader 4 which is mt4 offer by
almost all the broker today! If you are metatrader 4 first is to launch your
trading platform and after you maid have analyze the market and you know the
direction you are to open your trade then select your prefer lot size and click on
the buy or sell button and your trade will be executed as simple as that! Many
beginner find it very difficult.

After that you trade will start going either on your favor or against you, because
always remember that the market is 100% random and it will not be as smooth
as you maid thought.
Stop loss & Take profit

Stop loss and take profit is also part of risk management and every trader most
know this! Take profits is a level set by a trader in such a way that if the price
move in his or her favor and probably hit or reach that level it will be taken out
of the market with the profits! And stop loss in the other hand is a level set by a
trader in such a way that if the price hit or reach that level it will take the trader
out of market with the set minimal loss, now you can see how important a take
profit and stop loss can be.

To be at the safer side always use take profit and stop loss while trading the
financial market, with use of take profit and stop loss always there is no doubt
you must be successful trading the forex market.
Planning your daily target

Planning your daily target is one of the key point many professionals forex
trader always use that you probably don’t know! Yes if you have a daily target it
will avoid you from trading multiple times a day, trading multiple times a day
can lead to loses upon loses yes you heard me right, now having a daily target
means having a weekly target and having a weekly target means having a
monthly target and having a monthly target means having a year target now
you see how the pros trade with target including me, now let say you have a
daily profits target of $20 that mean you are having a weekly target of $100 and
a monthly target of $440+ and a year target of $5280 that is how so many forex
professionals traders do and they don’t let you know.

Conclusion
If you have any question you can visit my YouTube channel for more free videos
on forex and how it works with lots of free indicators and strategies click here:
Joseph Benson
For more of this kind of useful free done for you eBook and free articles to help
you grow in the business of Forex trading, you can visit my website where you
can get everything for free Click here!
You can also contact me on WhatsApp on +2347067776628 thank you.
All rights reserved, No part of this book may be reproduced or used in any
manner without written permission of the copyright owner. © 2021 by
Joseph Benson.

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taking place! And if

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Who is Forex trading meant for?

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Understanding Currency Pair

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What is lot size?

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The Forex Chart

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How much do I need to start forex?

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Risk management (All the insight)

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Placing your first trade

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Stop loss & Take profit

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Planning your daily target

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