Day Trading Forex: Advanced Techniques and Strategies to Trade Any Market – Options, Futures, Cryptocurrency, Stocks, ETFs by Odin Velez

Chapter 1: Forex Trading

 The foreign exchange currency market, more commonly written as the
 forex market, is the largest of all the investment markets, currently boasting
 more than $4 trillion dollars’ worth of transactions per day, or roughly 10
 times more than what the New York Stock Exchange can manage. Despite
 the lucrative potential available in this market, it was long outside the realm
 of the amateur trader as technological limitations made it difficult to amass
 the information required for such an undertaking. Luckily, the rise of the
 internet, along with countless online forex trading platforms, means that
 anyone who is interested can take advantage of the extreme leverage rates
 available in the market to turn a small initial investment into a serious
 payday.
 Before jumping in with both feet, you are going to want to keep in mind the
 fact that the forex market is completely speculative which means that unlike
 in most markets when you buy and sell in the forex market you aren’t
 actually gaining anything physical in the process. Unlike the stock market
 where you acquire shares in a specific company, for example, in the forex
 market, all you are doing is moving numbers around in various computer
 databases with relevant information relating to the countries in question
 causing them to either move in one direction or another. Your gains and
 losses are then expressed in the currency of your choosing.

If this seems like a bit of an odd system, that’s because the forex market
 only exists because international organizations and countries needed an
 easy way to move currency around in massive quantities without going
 through the steps the average person would be required to do such a thing.
 These entities tend to trade in units of currency that are so extreme they can
 actually affect the overall value of the currencies being traded, which is
 where the speculative side of the market comes into play.
 Generally speaking, only about 20 percent of the movement in the forex
 market is from these major entities, with the rest coming from investors that
 are trying to make a buck from the movement that spreads out through the
 market as a result. While a majority of these investors are professionals
 working for financial institutions or hedge funds, more and more private
 traders are jumping on the bandwagon each year, drawn to the promise of
 potentially huge wins thanks to the available leverage.
 Forex facts
 The most important thing to keep in mind when trading in the forex market
 is that each forex trade is actually a pair of disparate trades because you are
 always selling one currency in order to pay for another. Forex trades are
 made in three separate sizes, known as lots. A micro lot is 1,000 units of a
 given currency while a mini lot is 10,000 units of a currency and a standard
 lot is 100,000 units of a specific currency.
 When the market moves, the smallest amount that is tracked is known as a
 pip which is one percent of the total price of the currency in question. When
 you are first starting out in the forex market you are going to want to avoid
 taking on trades that are larger than a micro lot as in this case the pip is
 worth 10 cents of the currency you are working with. This means you won’t
 quickly lose your shirt when a trade turns against you in the last moment. If
 you stray to mini lots or standard lots you run the risk of losing $1 or $10
 respectively, per pip. For reference, you can expect a trending currency to
 move around 100 pips per trading session.
 While the forex market differs from other markets in key ways, it is
 important to always keep in mind that it is the same in the ways that matter

Day Trading Forex: Advanced Techniques and Strategies to Trade Any Market – Options, Futures, Cryptocurrency, Stocks, ETFs by Odin Velez