*Stage 1*

❇INTRODUCTION

❇WHAT IS FOREX

❇WHAT IS TRADED ON FOREX

❇WHO IS A FOREX BROOKER

❇TRADING TIMES & TRADING SESSIONS

❇TERMINOLOGIES USED IN FOREX.

❇FORMS OF TRADING

❇CURRENCY PAIRS.

❇MT4 INTERFACE PART 1

*STAGE 2*

❇WHAT IS A PIP

❇CONCEPT OF BID AND ASK PRICE

❇WHAT IS A SPREAD

❇FORMS OF TRADING ORDERS

❇CONCEPT OF TAKE PROFIT AND STOP LOSS

❇LEVERAGE

❇LOT SIZE

❇RISK MGT

❇COMMON MISTAKES BY TRADERS

❇TRADING PLAN

❇MT4 INTERFACE PART 2

*STAGE 3*

❇HOW TO KNOW WHEN TO ACTUALLY BUY OR SELL

❇HOW TO GENERATE SIGNALS FOR YOUR SELVES.

❇INDICATORS...Moving Averages, Stochastic, MACD, Bollinger bands, RSI, ADX, Parabolic SAR, ATR,
Ichimoku.... etc

❇TIME FRAMES ANALYSIS

❇SUPPORT & RESISTANCE LEVEL

❇CANDLE STICK ANALYSIS

❇FIBONNACCI LEVELS

❇PIVOT POINTS

❇ELLIOT WAVES & FRACTALS

❇ MARKET STRUCTURES

❇CHART PATTERNS

❇ DEMAND AND SUPPLY

*STAGE 4*

❇PUTTING IT ALL TOGETHER

❇FOREX TRADING STRATEGIES

❇MENTORSHIP

❇LIVE TRADING

❇FOLLOW UP

For Those that are just joining us and have not downloaded the Apps

I would drop them once again below

*META TRADER 4* OR *MT4 FOR ANDROID PHONES*

[Link]

*META TRADER 4 FOR iPHONES*

MetaTrader 4. Currency Market by MetaQuotes Software Corp.

[Link]

*CALL LEVEL APP FOR ANDROID*

[Link]

*SIMILAR APP FOR iPHONES*

[Link]
*PIVOT POINT CALCULATOR FOR ANDROID PHONES*

[Link]

*PIVOT POINTS FOR iPHONES*

FX Calculators by Societe informatique Tyrcord Inc

[Link]

*STINU APP FOR ANDROID*

[Link]

*STINU APP FOR IPHONE*

[Link]

So Let's kick off

We would be starting with the first topics on our outline

*INTRODUCTION AND WHAT IS FOREX*

Forex is just a Short form for *FOREIGN EXCHANGE*

Forex is one of the Largest market in the world

With a Total Daily Liquidity of $5.3 Trillion dollars.

The New York Stock Exchange which is the Second Largest Market is having a Daily Trading Volume
of $169 Billion Dollars as we can see in the Statistics above

While the Cryptomarket, for those of us who know about Bitcoins has a Total Market cap of just
$989 Billion as of today, this is not even the Daily Volume.

All these Statistics are online, So you can do well to confirm them for yourselves

That is to show the massive Liquidity.... Which is on the Forex Market.

That is how large the Forex market is

So we have seen a Brief Introduction of the Forex market, We would still see more, but for now let's
fire on

Let's move on to the next topic

*WHAT IS TRADED ON FOREX*

Someone would ask, What is Traded on the Forex market.

This is not the form of market where buy your clothes or shoes.

This is not Gikomba,Idumota or Oshodi Market,Thika Road Mall, Accra Mall or your normal Local
markets in any part of the world u are.

In Forex market we Trade the Following

So what are actually do is that we are constantly Transacting in the items I'll list below.

I would take u all through how to Trade on them, so just follow the Lectures closely.

Let's move on to the next topic

*WHO IS A FOREX BROOKER*

*Forex Brookers* are Firms that gives you access to the FOREX MARKET .

They provide U as a Trader access to the Financial market...

By providing a Trading account for U.

They gives Traders what we call Leverage. (we would see that soon)

They also provide Support Functions to the traders.

There are various Brokers in the Forex Market

They include:-

*Hotforex*

*Fxpesa*

*Fxtm*

*Fxcm*

*Fbs*
*LiteForex*

Etc

We are still going to take time to talk about Brokers in details

But we are now aware of their Functions and what they offer the Traders.

Let's Fire on

Our Next important topic today is

*TRADING TIMES AND TRADING SESSIONS*

We are entering into the most important part of this Forex Training... If you were distracted before,
let's focus because your proper understanding of the Forex market would be determined if you
actually know the Forex cycle.

There are Various Trading Times and Trading Sessions in Forex

They include:-

*SYDNEY SESSION*

*TOKYO SESSION*

*LONDON SESSION*

*FRANKFURT SESSION*
*NEW YORK SESSION*

The Sessions names are derived from the major cities in which most of the Transactions are done.

For example

Sydney Session is represents Australia and other countries around that Time zone.

Tokyo session , sometimes called *ASIAN Session* represents Japan and some of the Asian
countries.

London Session represents The United Kingdom and the countries within it.

FRANKFURT session which is in Germany represents Europe.

While

NewYork Session represents The Americas

Forex is actually a 24 hours market.

It is most times regarded as the Market that never Sleeps because it's open for 24 hours of the day
except on Weekends
So no matter where you are around the World, no matter your Time zone.... U can actually Trade this
Large, Highly Liquid market.

Let's now get to their Trading Times....

Because each of this Session have their own Opening and Close times...

*SYDNEY SESSION*

Opens by *9PM GMT*

*TOKYO SESSION*

OPENS BY *11 PM GMT*

*LONDON SESSION*

OPENS BY *7AM GMT*

*FRANKFURT SESSION*

OPENS BY *8AM GMT*

*NEW YORK SESSION*

OPENS BY *1PM GMT*

Let's note these Times down in our Exercise as U all would be needing them for your Trading.

Also Note that these Times are listed in *GMT*

Greenwich Meridian Time

So you should do the appropriate Calculation depending on your countries Time zone, so as to know
which session, U are currently on.

All Sessions lasts for 9 hours.

So having known their Opening Times, To get their appropriate Closing Times.

Just Add 9 hours to the Opening Time to get when they would Close.

Example

Sydney Session that Opens by *9 PM GMT*

WOULD close by *6AM GMT*

also TOKYO Session that Opened by *11PM GMT*

WOULD close by *8AM GMT*

NEWYORK SESSION that Opened by *1 PM GMT*

WOULD CLOSE BY *10PM GMT*

AND SO ON FOR OTHERS..

just Add 9 hours to their Opening Times

Now there is an important thing to Note here...

This is what many Forex Traders don't actually understand because nobody taught them.

It is always good to Trade the Market when 2 Markets are open at the same time.

I.e When 2 of the sessions are open.

Please Take note of this Important point.

This is Because, Volatility is always more when 2 or more Sessions are Open .

And in Forex Market, More Volatility means More money. 💵

As a Forex Trader, U wouldn't want to trade a Quiet market, because there won't be much
Fluctuations and it's those movements that make money for us.
U would come to understand these soon and know what I mean.

Example by,

*12 AM GMT*

Sydney Session and Tokyo Session would be open together and it would have more Volatility than
someone that is Trading at *9PM GMT* because the market would be Quiet.

Another Example is by *8AM GMT*

London Session and Frankfurt Session would be open, infact even Tokyo would be with them briefly,
so you would notice that Volatility would increase during such times.

So as a Forex Trader , Always time your Trading to fall in periods where 2 or more Markets are open
at the same time.

By doing that U would always have an edge in the market .

We would be learning more important things, let's just follow the Trading closely.

Some of You have heard about Forex before I'm aware, though U may not have known how to Trade
the Market.

Also some of U have Friends that Trade Forex.

But the Wicked part is that most of this your Friends won't teach U.

They would rather prefer to Buy you Exotic Drinks in Clubs, Take you and your Spouse out but they
would never Teach you how to Trade Forex.
I was once in that situation.

The only thing U would see how this your Friend Pops Champagne in Clubs, But would never teach u
Or show u how to make this money.

He wouldn't want you to come to his level.

I used to tell people, That hoarding Knowledge won't make u progress, U progress faster when U
share this knowledge.

And the beauty about Forex is that one's profit doesn't hinder the next persons own... We would see
all these soon.

As very soon I would be dropping My Trades in the group, for all of U to pick and Trade.

U would notice that When the Trade I dropped enters profit , everyone in the group that picked the
Trade would enter profit too...

So I see no need why people should hoard this Knowledge.

If not Just to feel Superior over their peers.

So Let's follow The Training in the Group Closely and take it seriously because this is a rare
Opportunity which only few people tapped in to.

After this session I'll also revoked the group link too

So the only rules I gave is, Just don't Spam the group.

Because Like I said I would remove anyone that does.

This rare Opportunity is not for everyone.

Many of You, Like I said earlier would always remember the day U joined this group as it would be a
turning point to your Financial Sphere.

Let's fire on

Our Next Topic is

*TERMINOLOGIES USED IN FOREX*

Just Like every Field you try to learn, U would have to get accustomed to its Terms and
Terminologies.

So also is the Field of Forex, U would need to learn about the Terminologies so as to be able to
communicate with the Market, Analysts and also with your fellow Traders.

U may be among the gathering of Forex Traders but U won't understand a dime of what they are
saying, this is because U don't know the terms.

So that is what we would be learning in this section.

So as I was saying,

For every New field you embark upon in Life, U would encounter New Terminologies and terms
which is peculiar to such field.

Be it Law, Medicine, Journalism , Engineering etc.

And you would have to get yourself acquainted with their Terminologies so as to be able to
communicate properly.

So also is Forex, for you to be able to Learn and Trade, U should get to know some of the terms that
are used in FOREX Trading.

So that u can understand the News, Flow with your Fellow Forex traders and understand Analysts.

So let's get to it;

*TERMINOLOGIES USED IN FOREX*

TO GO *LONG*....means to BUY

TO GO *SHORT*...... means to SELL

If a Trader tells you that he went Long on a Currency pair.

He meant that, He Bought the pair.

While if they tell you that they Short a Currency pair, it means that they Sold the pair.

Soon you would get to see that All what we are doing in Forex is Buying and Selling.

The next terms we would see are

*BULLISH MARKET*.......

A market that is going Upwards

*BEARISH MARKET*...... A Market that is going downwards.

When someone tells u that a currency pair or a commodity is Bullish

S/he is telling you that its going Up

While

One that is Bearish is going down

Let's be noting all these terms down in our Exercise books or Jotters,

U all would be needing them as U we progress with the Training.

*BULLS*..... The Buyers are referred to as Bulls

*BEARS*..... The Sellers are referred to as Bears

*RANGING*.....

A Market is said to be Ranging, if it does not have any particular direction.

It's neither moving Upwards not Downwards.

*TRENDING*......

A Market that is has a direction.

It's either moving Upwards or downwards.

So you can hear people say a market is Trending upwards or the market is Trending downwards.

So you may hear people tell you that the Market is just Ranging.

They are indirectly telling you that the the market has not found any direction yet.

The next terminology that we would be looking at is;

*HAWKISH*

This term is mostly used when referring to the Central Bank Governor or personell of a Country.

When they are Hawkish, they tend to be liberal on interest rate and are willing to increase it.

This is good news for investors.

*DOVISH*

This is the opposite of Hawkish.

Financial personnel who are Dovish are very restrictive... They do not want to tamper with the
interest rate.

They even want to reduce it.

This is bad news for investors.

Like what is happening to Great Britain right now.

*NFP*

An acronym for NON FARM PAYROLL.

A very important News Event in the US.

We would talk on that tomorrow.

Also Most of the Currency pairs have specific names in which they are called....

We would get to know them soon

Eg

The dollar is sometimes called Greenback.

The Pounds is called the cable.

The New Zealand dollars is called the Kiwi.

The Australian dollars is the Aussie.

The Canadian Dollars is called the Loonie.

Oil is referred to as the Black Gold

Etc.

We would get to know them as we go along with the Training.

It's just to get you acquainted with the most popular ones so that When you see fellow Forex
Traders discussing, U would tag along easily.

As we go on with the Training, We would get to see more Terminologies and Explain them as we see
them.

SO I WOULD BE STOPPING HERE FOR TODAY.

WE WOULD RESUME FROM WHERE WE STOPPED TOMMORROW.

THE FLOOR WOULD NOW BE OPENED FOR QUESTIONS AND CLARIFICATIONS

From tomorrow Lectures will be resumes at 7pm GMT.

*FUNDAMENTAL ANALYSIS&TECHNICAL ANALYSIS*

We would be continuing with the outline

Our first topic today is

*FORMS OF TRADING*

There are basically two forms of Trading in Forex

*FUNDAMENTAL ANALYSIS*

This is also known as News Trading.

Here you are analysing the Forex market with respect to the News.

It's been said that News is what moves the market. Everyday Various news are being released by
these major countries

And they either positively or negatively affect the Currency pair involved and then you make your
Trading decision based on the news u heard

We see all these News on CNN, Bloomberg, CNBC etc.

Also, Your MT4 App has a Summary of News Section

Also, some sites like [Link], [Link] etc.

Gives you summary of this News.

We would come to see them later

Now whether the News is Positive or Negative

As a Forex trader, that is none of your business because u make money both ways.

Those into Crypto Trading in the early days between 2017 to 2016 backwards would tell you that u
only make money when a Coin is appreciating. Though recently some crypto exchanges are now
improving

But in Forex, we make Money Both ways.

If a Currency pair is appreciating, we go long on the pair

When a Currency is also depreciating based on the News, we go short on the pair.

Like many traders do every day, they buy some and sell some

So, In Forex, U make money on both sides of the News

We would come to see how to trade the News later

Today We would be discussing an Important News Released by the United States.

Even though there are News release every day.

There is what we Forex Traders Call KING OF ALL NEWS

It's called the *NFP*

*NON-FARM PAYROLL*

This is a News released by the United States of America.

Among all the news released by the US, this is the highest because it causes the most Volatility in the
market.

Non-Farm Payroll is one of the Biggest News that every trader awaits on

Let's start with understanding what NFP is

Let's talk about what the News entails

It's a News that contains various data and statistics released by the US Bureau of Labour and
Statistics

It's very influential as an indicator of US Economy because of the US Federal Reserve makes
monetary policy decisions based on this data

Hence Investors, Financial Analysts, Forex traders, Stock traders make trading decisions with the
News

It is released every 1st Friday of the Month by 8:30amEST

i.e. 12:30pm GMT

i.e. 12:30pm Ghana time

i.e. 1:30pm Nigerian time

i.e. 2:30pm South Africa time etc.

Just Calculate according to your Time zone

The data released include: -

1). *Non-Farm Payroll increase*

This is the number of new jobs added in the US labour sector in the previous month

It is usually compared to the previous data

For example

The one we traded on Friday, 2nd of April with my previous students ....is the number of new jobs
added in March

Many of you who were in the old Group where the last Batch held can chat them up for their
Testimonies

That was NFP, it's usually That Massive.

These data include; employment in the manufacturing sector, Construction sector, Goods sector etc.

Excluding Farm workers (hence the name), Also excluding Private Household employees and non-
profit organizations

It also includes

2) *Unemployment rate of the US*

3) *Which sectors of the economy, these jobs were added mostly*

It gives investors and traders where are the possible sectors to invest in as the sector that added
more jobs would be most likely to have experienced growth

4). *It also includes the Average hourly earnings of the workers in the US*

This is also an Economic indicator because even if the number of workers didn't change.

But however, their earnings increased...

It would have the same effect as if their number increased

Same also could be interpreted in reverse, if their earnings reduced

5.) *Then lastly the data includes a revision of previous non-farm payroll*

Because investors compare these values together....

Whether there has been an improvement or reduction.

This also gives you an idea if the economy is growing or reducing

Let's get to how to interpret the data

So, we would all be together and Trade the Next NFP, because it's better seen than explained

No Forex Trader fixes his Wedding or Party on the First Friday of any month except it's a Night event.
So as Forex Traders, never miss it.

If you are driving and it's 12:20 PM GMT

Just park, open your Phone Trade your NFP and continue where you are going

If you are sick (God forbid), just tell them to give you your Phone that Friday, because you can't miss
NFP. That's how Big it is.

Most Traders Trade once a month.

They fund their accounts specially for NFP and close for the month.

Most people make what you would be paid in a year just on an NFP afternoon

THATS HOW MASSIVE NFP NEWS ARE

IT CAUSES LARGE VOLATILITY IN THE MARKET

So, Like I said earlier,

We would Trade the Next NFP together on the group

It's coming up on the 7th of May

And as always, it's going to be massive

Just endeavour to stay tuned

Many of you saw the screenshots of the Testimonies of some of my students that I shared, if I've not
shared it yet. I would still share it later as we proceed through the Training.

This time around, it's not going to be screenshots again because U, yourself would be the one
screaming on the group, because most of my New students never believe it until they see it

Like I said when we started, Go and note down 1st of April on your journal as the day u me wisema
Fx online

I wouldn't know who directed you to this group, or how u heard about me, but soon U all would be
full of joy

Let's move on to the next form of Analysis

The other form of Analysis is

*TECHNICAL ANALYSIS*

This form of Trading is when you analyse the Market using Indicators, Charts patterns, Candlesticks,
Fibonacci, Support and Resistance, Pivot Points, Elliott waves etc.

When you use any of the above to analyse the market, it’s called Technical Analysis.

Majority of what we listed on the Course outline are Technical Analysis

It's the most popular Form of Trading....

This is because High Volatile News is not released Everyday so you can't just depend on Fundamental
Analysis alone.

Everyday can't be Christmas 🌲

So as a Forex Trader, U must learn how to trade the market using Technical Analysis.

So, because each day can't be Christmas 🌲, High Volatile News like NFP is not going to be released
every day, so you have to learn how to Analyse the market and Trade in the absence of any major
News release,

That's what makes you a complete Forex Trader

The next topic on our outline is

*CURRENCY PAIRS*

We are now entering the Practical Section of Forex where you all would be seeing what we do
online.

For this Next Section we would be needing our MT4 App

Hope we all downloaded the Apps I mentioned

We would be starting from that topic tomorrow

But I want All of Us to use this Night and Install the App

Among the 2 major Forms of Analysis,

No one is superior to each other and also no one is used in Isolation.

So, you would learn as we move on, how to harmonize the two to constantly keep you on top

Like I said earlier

For these coming parts to be more interactive...

We would all need to open our MT4 Apps

We would be getting into more serious Business from tmrw

Let's Open the App so that we can Register it.

We would all Start with DEMO ACCOUNTS

SO, OPEN THE APP, IT WOULD AUTOMATICALLY CREATE A DEMO ACCOUNT FOR YOU.

U would see where is written start without Registration

That automatically creates a Demo account for you

IF YOU DIDN'T SEE START WITHOUT REGISTRATION, AND IT TAKES YOU TO A PLACE WHERE IT'S
ASKING YOU TO SELECT BROKER, JUST SELECT METAQUOTES DEMO.
THEN FILL IN YOUR DETAILS ON THE NEXT PAGE THAT WOULD COME OUT.

THIS SECOND METHOD WOULD ALSO CREATE A DEMO ACCOUNT FOR YOU

This Demo Account is what we would be using for Now

WE'LL STOP HERE FOR TODAY

THE GROUP WILL BE OPEN FOR QUESTIONS AND CLARIFICATIONS

WE'LL STOP HERE FOR TODAY

THE GROUP WILL BE OPEN FOR QUESTIONS AND CLARIFICATIONS

We are gradually coming to the end of Stage 1 and we would soon enter Stage 2

Today we are going to look at the last set of topics on our stage 1 outline

We would be starting with

*CURRENCY PAIRS*

For this part to be more interactive...

We would all need to open our MT4 Apps.

We are getting into more serious Business right now.

I Believe everyone has successfully Opened their Demo account and has Located the CURRENCY
PAIRS page

If you haven't be Using my own images as Guides for now

After the Lectures, I would address it individually

If you Can't see the Currency Pairs

Open up your MT4 App

Click on that Double arrow icon below pointed at by the red arrow from any Screen U are, It would
automatically take you to the CURRENCY PAIRS PAGE.

ALSO

If your MT4 is showing an Interface, telling you MQL5 Registration

Don't bother about that, It has already opened the Demo account for you.

Just Click on that MT4 icon above pointed at by the Red arrow

It would now take you where you would see the Currency pairs by Clicking on the double arrow icon
as I earlier explained on any interface it takes u to

For Those that have Logged in, U would see where Currency pairs are listed, Like in the image below.

Even if it's in a different format, Don't worry.

The most important thing for now is that U are seeing there Currency pairs

We would address the Formats later

Let's fire on

EUR..... EURO

USD.... US DOLLARS

GBP.... GREAT BRITISH POUNDS

CHF...... SWISS FRANC

NZD.... NEW ZEALAND DOLLARS

AUD..... AUSTRALIAN DOLLARS

CAD.... CANADIAN DOLLARS

JPY.... JAPANESE YEN

CNY..... CHINESE YUAN

e.t.c.

These are some of the list of Popular Currencies traded on the Forex market

With their abbreviations and Full meanings

As u observe on your MT4.....

It's mostly written as their abbreviations

Now Let's continue with the Lectures

If you Look at those Currencies listed up there...

U would discover that they are listed in pairs.

Among those pairs of Currencies

The first Currency within the pair is called

*THE BASE CURRENCY*

WHILE

The second Currency within the pair is called the *QUOTE CURRENCY*

Let's note these down.

An important thing to note here is that

The Base Currency is always stronger than the Quote Currency

(with few exceptions and we would see why soon)

Let's take *EURUSD* as an example

Ie The first Currrency pair on that image that I uploaded above

EURO is stronger than the US Dollars.( I believe we all know that)

Hence EURO is the Base while USD is the Quote

Another example is

*USDJPY*

The 3rd pair in that image above

In this second example;

USDollars is the Base while Japanese Yen Is the Quote..

Because the USD is stronger than the Japanese Yen.

Also Beside each of those pairs...

U would see some set of Numbers written by the side...

Just focus on the first number for now

For Example...

In this EURUSD below ... It's showing you

EURUSD.... 1.1262

That number is telling you, how many Units of the Quote Currency, U would need to get 1 unit of
the Base Currency.

Let's note the above statement down,

I would explain in details now.

Let me use a Local scenario to give you guys an example

If you have a Currency pair btw USD and Kenya shillings I.e.

USD/KSH......108

This is first telling you that USD is stronger than Kenya Shillings, hence USD is the Base and KSH the
Quote.

Then the next important thing it's telling you is how Many Quote Currencies do you Need to get 1
Unit of the Base Currency.

So, in this case, you would need Ksh 108 to be able to get 1 US Dollar.

So that is what that number by the side, always tells U.

How many Quote currencies do you need to get 1 Unit of the Base Currency?

I believe this is clear

Let me give another example on the Chart to make it clearer;

Let's Take a Look at USDJPY....

In the image above,

It's Currently at 110.37

It's Currently telling that U would need 110.37 Japanese Yen to be able to obtain one US Dollars

Like I told you guys... That the Base is always Stronger than the Quote

There are occasions in which the Stronger ones are written as the second pair

Examples include
*AUDUSD*

US dollars is stronger than Australian dollars

*NZDUSD*

US dollars is stronger than NewZealand dollars

*EURGBP*

Pounds is stronger than Euro

U always know them because they start with zero point something written beside them

Now when you see these few exceptions..

Don't bother too much.... About why the Weaker one is written first even though it's quite glaring
that the Quote is stronger

What you just have to do is to take note of them,

It doesn't affect your trades.

It's just for the knowledge sake, so note them down.

They are the pairs I listed above

However Apart from those few exceptions

Generally in Forex...

The Base is always stronger than the Quote

Also, no matter which one is written first

Always know that the Price u see beside it is How many of the Quote Currency , u would need to get
1 unit of the Base Currency.

We will now move to another Very important Part of Forex

Let's follow closely here

This is where many people always asks Questions

However, For your Foundation to be Strong in Forex , U need to grab this concept

Let's fire on

The Big Question is Now

*When Do you Buy and When Do you Sell* ?

Now this is where people always get confused....

Because those who taught them used the wrong semantics.

U BUY. WHEN YOU KNOW THAT THE MARKET *WOULD* GO UP

WHILE

U SELL WHEN U KNOW THAT THE MARKET *WOULD* GO DOWN.

If you notice, I carefully labeled *WOULD*

I didn't say

U Buy when the Market is going Up

Assuming I said that, I would still be correct but you would get more confused

U would start asking, Who buys any item when it's going Up

Now as Usual, I would use a Local scenario to explain this topic , by the time I'm done

This seemingly complex concept, would look very easy to u

Believe me, nothing is hard in Forex

Just tell yourself that if Young young Boys who are not even half as educated as U can do this, that u
too can do it

I will use Nigeria, i do follow those people alot.

So Let me explain to U guys...

What we are actually doing in Forex in very simple terms

Just follow me here closely

If you are doing anything else, just focus from now onwards

Let me use this Analogy to explain what I mean.

For those of you who don't know about Nigeria .

I would use 2 names in this brief Analogy

Name 1 : Buhari (He is the current president of Nigeria)

Name 2 : Jonathan (former president)

Now let's get to the Analogy so as to understand in a layman's way how Forex actually works.

When Jonathan was in power.

Dollar was at a time around 180 Naira to 220 Naira

Let's just take the average and say 200 Naira.

When Buhari entered power... Some of you would recall that around 2016 , at some point Dollar
shut up to 500 Naira per one.

Assuming you knew Dollar would appreciate against Naira like this and u had 2 Million Naira lying
fallow in the Bank account , U knew from your experience as a Forex trader that uncertainty in
Government weakens a currency pair and you used this your 2 million and bought dollars and kept in
2015.
It would give you about $10,000.

Now 1 year later, Dollar just escalated to 500 Naira per dollars.

And you went to the Bank, cashed out your $10,000 and exchanged it back to Naira.

It would now yield U 5 Million Naira (remember u just stocked 2 million Naira).

That means u made 3 Million Naira Profit

Same situation with Mwai Kibaki( for president of kenya) and Uhuru Kenyatta (current President)

Now ask Yourself .....

Did you use that 2 Million Naira to do any Business.?

The answer is NO

U practically did nothing,

What just happened right there was Forex.

U leveraged on the fluctuations in the Price of Dollar to Naira to make yourself Money.

Without Doing anything., U just sat at home while the Foreign Exchange market did the job for U.

This is basically what we do in Forex...

This is not the normal market in Gikomba, Marikiti, Oshodi or Idumota or Accra mall that You Buy
and Sell Clothes.

For some that would ask what are you Buying and Selling.
This is just a raw Analogy , because in Forex market it's even more interesting.

U don't have to wait for 1 year or months to make Money.

These Currencies are Constantly Fluctuating in minutes (what I usually refer to as Volatility) ., so it's
those opportunities caused by these Fluctuations in the Price of one Currency with respect to
another that Forex traders make their money from.

Because they happen Daily.

That's why Banks would never allow you to learn Forex.

They prefer U come to their Banks and fix the money for meagere interest rates.

To even shock you, Investment Banks contribute more than 70% of the total Liquidity in Forex, they
use your Money to Trade.

Drive Big cars and Live in Big Houses and give you peanuts as interest or meagere amounts As Salary
.

I had to sit down to type this analogy in the lowest terms that everyone can understand.

With time it would get clearer..

But I hope you all are having an idea of how we make money in Forex

So In the above Analogy..

U would notice that u didn't really Buy or Sell any real commodity to make money.
U took advantage of the change in Exchange rate to make money

So why did you Buy *USD/NGN*

IN the above scenario

U Bought *USDNGN* because you knew before hand that the value *Would* Rise

Take note *Would*

So In Summary,

We have seen that We Buy When we know A currency Pair *would* Rise

And we Sell

When we know a Currency pair *would* fall

The Big Question is how do we know when it would rise and when it would fall.

That is What Technical Analysis would tell you;

-Candlesticks

-Fibonacci

-Elliott waves
-Indicators

-Pivot point etc.

We are going there

Just follow me step by step

So we would be stopping here for today...

This brings us to the end of the Stage 1.

We would continue with MT4 interface and Stage 2 from tomorrow.

If you have any questions, Please do drop them on the Page.

I WOULD NOW OPEN THE GROUP

TODAY MARKS THE REAL BEGINNING OF YOUR FOREX JOURNEY

IF YOU HAVE NOT BEEN FOCUSED BEFORE, PLEASE START FROM TODAY.

ALL WHAT WE HAVE BEEN DOING SINCE IS INTRODUCTION, TODAY WE ARE STARTING THE MAIN
FOUNDATION

We are Starting with the Topic

*WHAT IS A PIP*

PIP IS THE BEDROCK OF EVERYTHING, I REPEAT EVERYTHING WE ARE GOING TO BE DOING IN FOREX.

If you miss the Concept of Pips here, believe me your foundation is going to be shaky all through
your Forex journey.

 Currencies are gauged in pips

 Trade orders are placed in pips

 Profits are calculated in pips.

Practically everything we are doing in Forex involves Pips.

So, take your time to understand this very Important topic.

Let's now fire on.

*A PIP* is the smallest unit in which a Currency pair can change.

It can also be said to be a standardized unit and the smallest amount by which a currency pair in
forex market can change

It's just liked the CELL of Forex, though as u go further, U would learn that there are smaller versions
called micro-pips.

But let's not get anything complicated for now.

Let's now get to how to Calculate it;

This is where I need maximum concentration from U all.

If you are distracted before now, please stay focused from now onwards.

If you are distracted before now, please stay focused from now onwards.

For most currency pairs in Forex, we start Calculating the pips from the 4th decimal place.

However, there are few exceptions.

We would start with the general ones, before we go to the exceptions

So, before I start,let me repeat.

The Pip is being calculated starting from the 4th decimal place.

So, ignore that number superscript beside all the pairs.

So, from the EURUSD in the image uploaded above.

So, if EURUSD which is currently at 1.1845

Makes a move of 1 pip

Its new value would become 1.1846

So how did I get 1.1846?

I added 1 to the 4th decimal placed number there and it increased from "5" to "6"

U start calculating the PIP from the 4th decimal digit there which is ""5""

Currency moves generally in Forex are measured and calculated in pips

Let's still have another example

Let's Take a Look at GBPUSD (i.e. Pounds Vs US Dollars)

Which is Currently at market price of 1.3100 in the image uploaded above

Now if GBPUSD makes a move of 4 pips from that Current value

Its new Value would be at 1.3104

Now how do we get this 1.3104?

We added "4" to the 4th decimal placed number which is "0" and it increased to "4"

Let's do one more Example...before we go to the main Calculation

Let's take a look at NZDUSD, which is at a Current market value of 0.6550 in the image above

If NZDUSD makes a move of 5 pips from that value of 0.6550

The New market value would be at 0.6555

How did we get that?

Once again, we added "5" to the 4th decimal placed number which was "0" and we got "5"

Hence our new value was 0.6555.

For the example 1, we gave where EURUSD moved 1 PIP.

The actual calculation is: -

0.0001 * 1 = 0.0001

Therefore, you add 0.0001 with your calculator to that original value of 1.1845

So, we have.

1.1845 + 0.0001 = 1.1846

U see that this method looks longer, though it's the real way of doing it

We still got same answer.

In the first method,

We just directly added 1

To the last decimal placed number of that value of 1.1845

And we immediately got 1.1846

Let's see that second example above where GBPUSD moved by 4 pips

Now from that value of 1.3100

I told that GBPUSD made a move of 4 pips (remember these are just tentative assumptions, just to
make the Lectures clearer)

Let’s fire on

What would my answer be, if GBPUSD makes a move of 4 pips?

I would simply add 4 to the 4th decimal place of 1.3100

And I would have my answer as

1.3104

Let's see the long method

For the long method

Since I was told that the Market made a move of 4 pips.

Remember that originally

I told you guys that 1 PIP for a 4 decimal place currency pair is 0.0001

So, the move made by GBPUSD is 4 pips

I would have

0.0001 * 4 = 0.0004

I would now add this 0.0004 to the original value of 1.3100

We would now have

1.3100 + 0.0004 = 1.3104

Same answer with the above

Let’s move a bit higher

Using the long method

The move made was 10 pips

Remember that 1 PIP = 0.0001

So, 10 pips would be

0.0001 * 10 = 0.001

(notice the zeros reduced)

So, to get the new value of GBPUSD we have

0.001 + 1.3100 = 1.3110

same answer

I know someone would ask, Since the shortcut is easy, why teach us this long method?

As we go higher, it gets more complicated especially with numbers that are not round numbers

We would see that soon.

I would give guys assignments for you all to practice too after today's Class.

Now for most currency pairs in Forex,the pip Calculation starts from the 4th decimal place.

Now there are some currency pairs that are not up to 4 decimal places.

Some of them have specific ways of Calculating them.

Example of those pairs include: -

- JPY pairs

E.g.
USDJPY

EURJPY

GBPJPY

AUDJPY

NZDJPY etc.

Another popular Example is Gold

I.e.

XAUUSD

LET’S START WITH JPY PAIRS.

For JPY pairs E.g. USDJPY. The pips Calculation starts from the 2nd decimal place digit. If you notice
that it's not up to 4 decimal places like others that we did before...

Let's see some examples

From that image of USDJPY above... It's currently at 106.45 as pointed at by the arrow

From that Value... If it makes a move of 2 pips.

The New value would be at 106.47

How did we get this?

We started adding "2" to the second decimal place number which is "5" and it increased to "7"

That's how we got 106.47

Let's go to the long method

For the Long method, you should take note that

For JPY pairs

1 PIP = 0.01

No longer 0.0001, like we saw for other general pairs.

So, Let's use the Long method to Solve the example above.

Remember that for JPY pairs,

1 pip equals 0.01

Hence from the above example, since it made a move of 2 pips.

We have

0.01 * 2 = 0.02

Adding 0.02 to the Original figure, it would now become

109.45 + 0.02 = 106.47

same answer as above

Let's go a little bit higher

Assuming USDJPY made a move of 10 pips from that Value of 106.45

The new value by simply adding 10 from the 2nd decimal place number would be

106.55

Using the long method

For JPY pairs 1 PIP = 0.01

Hence 0.01 * 10 = 0.1

Adding 0.1 to the original value we now have

106.45 + 0.1 = 106.55

same answer

Let's now get to the last exception which is Gold

By seeing how to Calculate pips on Gold [Link]

Gold is represented asXAUUSDbecause, if the Chemical Formula for Gold in the periodic table is AU

So, some Brookers write it as XAUUSD instead of Gold.

I usually Call Gold My Boss.

The Volatility is the highest.

It can move 1000 pips on a good day.

Only Gold can do that.

From Gold pair that I labelled above;the price is currently at 1325.36.

if it makes a move of 2 pips.

The New value would be 1325.56

How did we get this??

As usual using the shortcut method we added "2" to the 1st decimal place number which is the
figure "3"

Let's get to the Long but accurate method.

For Gold 1 pip move = 0.1

Hence for that 2 pip move, we have

0.1 * 2 = 0.2

Adding this 0.2 to the original value of 1325.36

We have
0.2 + 1325.36 = 1325.56

Let’s Go Higher

Assuming XAUUSD made a move of 5 pips from that same Value of 1325.36

It would be as follows

For Gold 1 pip move = 0.1

Hence for that 5 pip move, we have

0.1 * 5 = 0.5

Adding this 0.5 to the original value of 1325.36

We have

0.5 + 1325.36 = 1325.86

We would stop here for today

Let me now open the Floor Questions

And also give u Guys Assignment (CLASS WORK)

Assignment 1

If AUDUSD at a current price of 0.6375 makes a move of 10 pips, what would be its New value

Assignment 2

If USDJPY at a current price of 107.58 makes a move of 20 pips, what would be its New value

Assignment 3

If XAUUSD at a current price of 1728.00 makes a move of 5 pips, what would be its New value

LETS ALL DROP THE ANSWERS OF THE ASSIGNMENT (CLASS WORK) ON THE GROUP

THANKS EVERYONE FOR YOUR TIME TODAY

*CONCEPT OF BID PRICE AND ASK PRICE*

Let's now get to what they mean

*BID PRICE* is the price that buyers are willing to buy

WHILE

*ASK PRICE* is the price that sellers are willing to sell

Write those definitions down.

We would break it down now,

From the Image above u would see something like

EURUSD 1.1843 1.1845

1.1843. Is the Bid Price.

WHILE

1.1845. Is the ASK Price.

As usual, I would use what is happening around us to explain these concepts.

I always like simplifying things for my students.

Forex is not meant to be hard, it's people that try to make it complex so as to monopolize the
business for themselves.

Let's say u receive $10,000, from a friend abroad.

And u walk into a Bank to exchange it, Bank would tell you that the latest CBN rate is let's say ksh
110.

So, they would give ksh 1.1 Million Naira as equivalent to the $10,000

Let's say the next day.

U walk into that same back.

U had an emergency and you needed to travel abroad and you are requesting for same $10,000.

They would now tell you that their own Bank rate is ksh 120

So, you would now have to pay ksh1.2 Million for same $10,000

In this situation, ksh110 here is the Bid price, while ksh120 is the Ask price.

Let's relate it to our example of banks above

In the Example I gave above,

When you brought your $10,000 to the Bank, U are the seller at that instant while the Bank was the
Buyer.

So, they gave you their Bid price of ksh110.

Because that is the price, they were willing to Buy

While in reverse

When you came back the next day that you want to travel for an emergency

U now became the Buyer (no longer the Seller)

U needed to Buy dollars to Travel urgently.

Now the Bank in this case became the Seller.

So, they gave you the dollars at their Ask price which is the price that Sellers are willing to Sell
(remember they are now the sellers)

So, the meaning of this above is that when you place a BUY ORDER in Forex

It would activate for you using the Ask price (remember that the Ask price is the Price that Sellers are
willing to Sell to U, who is the Buyer)

While in reverse
When you place a SELL ORDER in Forex

It would activate for you using the BID price (remember that the BID price is the Price that Buyers
are willing to Buy from U, who is the Seller) day

Let's now move to the next concept Related to them

*WHAT IS A SPREAD*

*SPREAD* is the difference between the BID and ASK price.

Remember from the example I gave above 120 Kenya shillings was the Ask and it's bigger than the
Bid price which was 110 Kenya shillings

So, Also in Forex... The Ask is also higher than the Bid price.

Just like we saw in the example above

EURUSD....1.1843 1.1845

In the example I gave [Link] Spread is ksh120 – ksh110 = ksh10

The Spread is ksh10

That is the profit of the Banks.

So also, in Forex, the Spread is the profit of the Brookers, however in this case, it's very small
because it's measured in pips.

The Spread varies between Trading Sessions.

When the Volatility is high and many markets are open at the same time.

The spread is always small (meaning that you pay Banks lesser commissions), that is another
advantage of Trading when many markets are open.

However, when only one market is open or the Volatility is low, the spreads are always bigger

So that is how the Spread works.

We would move to another important topic today

*TAKE PROFIT AND STOP LOSS*

Take Profit and Stop Loss are Forms of Market orders

Let's start with: -

*TAKE PROFIT*

As a trader, U would not always be online monitoring all your Trades.

It's not as if we FXTraders, just get a seat and stay in front of our laptops all day.

Some of your trades may stay over the Night, some may last for 2 days.

And U may have a date with your Babe, U have Champions League to watch, Ur Friends that just
hammered on one big trade is hosting a Party, U even have your work to go to if you are a worker.
So, you have many engagements.

That's where Market orders come in to play.

So

TAKE PROFITis a Form of market order.

That tells your Broker to Close your Trade for You and Lock in your Profit when your Trade moves a
certain number of Pips in your desired direction.

Even if you are not online.

Remember in Forex we are always doing 2 things; Buying and Selling

Let's take a scenario when we are Buying and give an example

Let's say u entered a currency pair

Let's call it AAA/BBB

And It's currently at $40

And from your Technical or Fundamental Analysis.

U found out that it would soon rise,

So, you immediately opened your MT4 and Clicked on BUY

And your Target profit for this particular Trade is just 50 pips.

U don't want to be Greedy.

Like I always tell my Students, never be Greedy in forex.

Eliminate Greed, Pick the little U can and move on.

Even if you can't make $100 daily.

Even if it's only $50, u make daily.

My brother in a week that's $50*5= $250(ksh25000)

Who pays u ksh25,000 in a week?

It's good for a start and a beginner

With time, u upgrade to $100 daily

That's $500 weekly (#180,000)

So, you grow graduallyas you upgrade.

Let's fire on

For you to set a Target profit at 50 pips

U add it to the price u entered, which was $40

So, your TP would be at $90

So anytime, the currency pair AAA/BBB Starts Climbing and Reaches $90,

Even if you are not online, Your MT4 through your Broker’s server would close the Trade for you
automatically using your MT4 and add the $50 profit to your account immediately.

So that is how TP works.

Once you set it at that particular price on your MT4, whether you are online or not,

it closes the Trade for U and Locks your profit.

Let's now Open our MT4, to see where to set our TP on it.

So that we can also see practical example using Real pairs,

Open Your MT4...

Click on the icon pointed at by the Purple arrow from any page u are currently on to take u to your
charts (any Chart).

Then Click on the icon pointed at by the red arrow to take u to another page where you would see
where to input in your TP

So,having seen where to Insert the Take Profit.

Let's now do some practical Examples of how to Calculate Take profit.

The Box on the Right labelled by the Red arrow is the space for inputting in your TP.

While the space on the Left is for putting in your Stop loss which we would see next

Assuming I want to Buy EURUSD at that Current ASK PRICE of 1.1848 seen in the image above

And I want a Take Profit of 30 pips.

What I would just do is to Add 30 pips to that Former value of 1.1848 and I would have

1.1878

I hope everyone remembered our pips calculation of yesterday. This is where we are going to be
using it

So, My TP for that trade would be1.1878.

I would go into that TP box space and type it in.

So Immediately the Currency pair rises during its usual fluctuations and gets to 1.1878,

My Broker through the automation of MT4 would immediately Close the Trade for me, whether am
online or not and then Add my Profit to my account.

(Notice that I used Ask price because I was Buying, during Selling we would use Bid)

Let's see another example;

Let's take an Australian Dollars/Canadian Dollars at the Current Ask Price of 0.9626

Let's say I want to BUY the pair and I want a Profit of 50 pips.

For me to get a TP of 50 pips from that trade,

I would need AUDCAD to rise to 0.9626 (0.9626 + 50 pips)

Hence, I would go to my TP box and type in 0.9676

When AUDCAD rises to 0.9676, my Broker would automatically close my Trade for me and add my
profit to my account.

Remember in Buying, we are making reference to the Ask price not the Bid price

That’s why we are making reference to 0.9626 and not 0.9624 (the other price on the left which is
the Bid price)

So, When AUDCAD rises and gets to 0.9676 (which would be 50 pips move)

My Broker through the automation of the MT4 once again would close the order and Keep my
profits in my Forex account.

So,Let's get to the *SELL SCENARIO*

Let's Focus closely from here onwards, this is where people always get confused and ask questions

However, encourage yourself that if people who didn't even go to school are trading forex and doing
the basic addition and subtractions that you too can do it.

So, let's follow closely from here

So immediately the Price Falls from $100 to $55.

The Broker through automation of the MT4 would add your 45 pips profit to your account.

That's the beauty of Forex, U make money both ways.

Whether a Currency is Rising or Falling,it's none of your business.

U just enter in the right direction and make your bar.

In Selling a Currency pair at the Forex Market,

U are Selling after U have found out from your Technical or Fundamental Analysis that the Price
would Fall.

Hope we remember that

So, as the Price is falling, U are making money.

This is the Opposite of Buying

Let's see another example.

Let's say that after My Analysis.

USD weakened because of Bad News and I want to Short (Sell) USDJPY...

And I only want a TP of 40 pips from that current Bid price of 105.51

Take note: Bid price, because we are selling

What would my TP be?

I would just subtract 40 pips from that current Bid price because I'm selling and I would get 105.11
Hence, I would input 105.11 into the TP box.

When price gets there, My Profits would be automatically added to my account.

Let's now see Practical Examples

Let's say after our Analysis,

We found out that AUDUSD would fall.

So, we decided to Short (Sell) AUDUSD pair.

Remember now we are interested in the Bid price because we are Selling.

And the Bid Price is currently at 0.7298 in the image above and I want a TP of 60 pips.

What would be the value of my TP.?

Here because we are expecting it to fall.

Our TP would be below not above.

So, subtracting 60 pips from 0.7298

We have 0.7238

Hence, I would input 0.7238 into the same TP box, we used when we were buying. (Same TP box is
used both when u buying or selling)

So, when AUDUSD falls and reaches 0.7238, my Broker would automatically close and add my profit
for me.

Throughout your Entire Forex Journey, U would always Encounter Pips Calculation in one place or
another.

So those who are still having Problems with Pips

Use this Night SCROLL UP and Revise the Lectures on Pips

So Immediately Price Falls to that Level.

Your Broker through the Mt4 would automatically add your profit for U.

So,in summary we have seen that While Buying our TP is up,

However, in Reverse while

Selling Our TP is below the price.

So, we would stop here for today.

We would continue from where we stopped from tmrw

I Would Drop Assignments that You all would use to Practice and drop the Answers on the page.

Assignment 1

Assuming, we want to Buy GBPUSD from the current ask price of 1.2351 and I want a TP of 45 pips.
What would be my TP value?

Assignment 2

Assuming, we want to Buy USDCAD from the current ask price of 1.4105 and I want a TP of 60 pips.

What would be my TP value?

Assignment 3

Assuming, we want to sell USDJPY from the current bid price of 107.45 and I want a TP of 40 pips.

What would I input in the TP box?

Assignment 4?

Assuming, we want to sell USDCHF from the current bid price of 0.9750 and I want a TP of 35 pips.

What would I input in the TP box?