Advanced Beginner Level - FX Trading School
This Section builds upon the knowledge gained from the Novice section.
Here, we will walk you through the various technical jargons that are used.
ADVANCED BEGINNER LEVEL UNITS - Ordered by Serial Number
"Welcome to the second section of this forex trading course. From here on, we jump into the more advanced concepts of forex trading. We start this second section with the most basic of all, how to open a forex trading account. Many traders will find it a bit intimidating and at times frustrating when they first open a trading account. There are lot of questions to be filled up and you need to carefully select the details while creating your forex trading account. But fret not! This article gives you a step by step process of opening your forex trading account and will ensure that you are all set up even before you make your first deposit. We will point in the right direction and what documents you need to have ready when you plan to open a forex trading account. You can avoid some of the most common mistakes traders make when opening their real forex trading account." Opening…
"In this section, we will cover one of the most basic things that you will need to know when trading forex, or for that matter any type of financial markets. A price chart basically shows what price a security is trading and at what point in time. You might have heard about technical analysis in forex. Well, technical analysis basically depends on reading the price chart and studying it. Therefore, you should have a good understanding of a price chart in order to be able to trade successfully in the forex markets. In this article, we will show you the basics of reading and understanding a price chart. We will also introduce you to the concepts of the various types of price charts that are available and how you understand the time series. By the end of this article, you should have a good understanding of reading a price chart and know what price is telling you." A price chart…
"As you evolve as a trader, over a period of time you might switch between short term trading and long term trading. If you have any experience in investing, you will know that investors tend to hold their investments over longer periods of time. This is the same with forex as well. If you are trading the smaller timeframes, you are basically speculating the price movement. The analysis used with trading smaller timeframes vastly differs when you trade the longer term charts. At the same time, there are significant differences with the timeframes that you are using in your trading. This article answers the question about which is the best timeframe to trade forex. Because there are so many timeframes to choose from, one can easily get confused. But the truth is that there is no perfect timeframe that will give you success in trading. Forex trading is all about finding a trading system and a trading style that suites…
"The forex markets, despite being open throughout the day still adheres to the concepts of trading session. A trading session is where one particular market is open. Due to the fact that the forex markets operate globally, depending on the geographical location, at any point, you can see one or at most two trading sessions operating. As a trader, you should have a good understanding of the forex trading sessions. This is because depending on where you are located, you would be able to easily tell which forex trading session is in effect. Depending on the trading session, the markets can behave differently. Liquidity can rise and fall and there are more news releases during certain forex trading hours compared to the others. In this article, we give you the basic concept of forex trading sessions and what are the three main forex trading sessions that you will come across." The forex markets are unique from other markets because of…
"When it comes to trading, the first thing that comes your mind is buying and selling. This might seem simple as it looks. But if you dig deeper, you will find that this simple concept has many different variations. This article takes a closer look into the forex market orders. You will learn the main types of trading orders that you can place. We will also explain to you’re the difference between the various forex trading orders. These terms are commonly used across all the markets. Traders use different types of trading orders to achieve certain specific goals when it comes to trading the markets. Therefore, as a trader, you too should have an understanding of the various forex trading orders and how you can use them to your advantage. This is useful because at a later stage you will have to start trading at some point. Learn about the different types of orders you can use to trade." Understanding…
"It is often said that death and taxes cannot be avoid. But did you know that spreads are another thing that cannot be avoided? This is especially true when you trade the financial markets, or forex in our context. Spread is one of the essential frameworks in the world of trading. Some see it as brokers being greedy, but this is not the case. In this article, we explain in a simplistic way how spreads work and why they are charged by the forex brokers. At the end, it is up to the trader to decide whether a fixed spread broker is better than a variable spread broker. Both these types have their own pros and cons and this is mostly a matter of one’s personal trading style and choice than anything else. Learn about what are spreads in forex and how they influence your trading costs regardless of whether you want to buy or sell." Have you ever noticed…
"Understanding what is a pip in forex forms the very basic of understanding how prices move in the forex markets. Depending on the type of the financial market that you trade, every market instrument has its own unit of change. With the forex or the currency markets, pips are the smallest units of change that you will see. Based on pips you can calculate the profits that you can make. In this article, we give you the lowdown on what is a pip in forex and how it is important that you understand this small change in the forex currency price quotations. We will also dig a bit deeper and explain to you how the pipette, which is another small unit, smaller than the pip works. By the end of this article, you should have a good understanding of how the forex markets move and how you can use this to understand whether your trade is in profit or a…
"In trading, you will always have to start by purchasing a standard unit of the currency pair. The standard unit is nothing but the contract size. Contract sizes are important because they are standardized. This is one of the unique features of the forex markets. Typically, standardized contracts are available only in exchange traded instruments. But forex is an exception. In this article, we give you the lowdown on what is a lot in forex. Understanding how a lot works and the various other units of contracts are important. You will find that this will be applicable especially when you trade on leverage. Based on the lot size you trade, the leverage can differ. The lot sizes also influence how much of profits or loss you can estimate from your trade’s position. We also go a bit deeper and illustrate how you can find out the value of a pip among the various currency pairs." A lot is the name…
"Leverage and margin are important when it comes to the financial markets. It is not just limited to the forex markets. You can find leverage and margin even in stocks and in futures too. Therefore, having a good understanding of how leverage and margin works is important for you as a trader to manage your money. Both these concepts are very simple. Many times, you will be asked to choose your leverage right when you open your forex trading account. Only a few forex brokers allow you to change your leverage after you created your forex trading account and deposited funds. While leverage can be tempting, it is also very risky. Thus, leverage is one of the important aspects when it comes the overall risk management in your forex trading. In this article, we cover the basics of leverage and margin and what they mean. By the end of the article, you would be more familiar with both these terms."…
"Leverage is probably one of the least understood things in forex. For many traders, leverage is all about increasing their exposure to the market. This means having to trade on borrowed money or trading on margin. While the potential to make larger profits are the common goal, there are also other aspects that traders need to consider. For example, did you know that the larger contracts you trade, higher the costs of transactions involved? This is because of using leverage. There is a fine balance between using leverage and maintaining the margin on your trading account. Traders need to account for these factors as well and not just focus on the profits that one can make. In this article we give you the lowdown on how leverage can affect the cost of transactions. This in turn will affect the margin account that you are required to keep in order to use leverage." So far, we covered the basics of what…
"Margin call is a term used in trading to depict a scenario where your trading account falls below a certain threshold when you are trading on margin or leveraged. Because trading on margin means trading on borrowed money from your forex broker, you are required to maintain a minimum amount in margin when you have open trades. When your account falls below this level, you will be asked to replenish your trading account. Failure to adhere to a margin call can mean that your trades would be closed, regardless of whether they are in profit or in loss. A margin call occurs when you are leveraged. Most beginners make the mistake of ignoring risk and trade management principles. Being higher leveraged and not understanding how the contract sizes work or risk for that matter can lead to a margin call which can simply blow up your trading account. In this article, we explain what is margin call and how you…
"Position sizing is something you will come across when you start to trade. Position sizing is a type of risk management that is used by traders. It is important that traders understand the importance of position sizing. It will help to preserve your trading capital longer and gives you more chances at trading. Most importantly, position sizing will stop your account from getting liquidated or blown by on a bad trading decision. Position sizing is not keenly followed by many traders. They only realize the importance of position sizing after they have lost their entire trading capital. Therefore, do not make this commonly repeated mistake many other beginners in forex trading do. In this article, we explain what position sizing is all about and how you can use this rather simple method to protect your account equity but also give yourself the chance to make consistent profits. Risk management in trading is just as important as your trading strategy so…
"Risk management is perhaps one of the essential topics that you should get familiarized with. To quote the famous Warren Buffet, the first rule of investing (or trading for that matter) is not to lose money. His second rule is to follow rule #1. As you can see, risk management is something that is applied across all levels of the financial markets. From short term speculating, or day trading to long term investing. The key to success in trading is to ensure that you do not lose money. But you might wonder how that is possible when losses are a common factor when trading? This comes by means of applying good risk management principles. In this article, we introduce you to the concepts of risk management and also outline some basic guidelines that you should know by heart. These rules should be fundamental to any trade that you take, regardless of the trading strategy." Risk management in forex is one…
"Stop losses are generally trading orders that you place with your broker. When you place a stop loss, you are telling your broker to stop your losses beyond the price level that you set. When price falls to your stop loss level, the stop loss order triggers and exits you from the market. Stop loss orders are a way to manage your risk and it also tells you when you should cut your losses short. Disciplined traders always enter the market with a stop loss order and a take profit order. This keeps them focused on their analysis. There are different ways stop loss orders can be set. In this article, we explain in detail the different approaches to setting your stop loss order. But before that, we will quickly explain the two main types of stop loss orders that can be used and the difference between these two types." A stop loss order is one of the most crucial…
"There are different ways you can use stop loss orders as we outlined in the previous article. But there are still some basic rules that should be followed. These “best practices” of using stop loss orders will eventually be for your own benefit. Trading is not as simple as buying low and selling high. You need to pay attention to the risks that you are taking when you trade forex. Therefore, managing your stop loss orders is crucial. It can define your overall success and also prevents the trader from taking on undue loss. The better you are at managing the risks, the higher your chances of making a consistent profit in the forex markets. This article will guide you on the three most important things you need to bear in mind when trading with stop losses. These should become second nature so that you automatically follow the rules without having to make a conscious effort." The word stop loss…
"A calendar as you know is a schedule of events. In the financial markets, an economic calendar has the same meaning. The only difference is that an economic calendar is a schedule of all the important economic events that are due to come out over a period of time. A forex economic calendar is basically one such calendar that forex traders use. In this article, we will introduce you to what is a forex economic calendar. You will learn about its importance and it can help you in your trading in the long term. Following economic news and fundamentals might not seem that appealing for many traders initially, but it is something that should be followed by traders. Understanding the forex economic calendar alongside technical analysis can give you a full picture of the markets. It will help you to not just become a profitable trader but will also show you about the ways you can combine both technical and…
"Trading forex based on news releases allows traders to profit within a short span of time. This is because news events bring a lot of volatility to the currency markets. This can lead to profitable trading opportunities. While news based trading is profitable, it is not for everyone. For starters, you will be looking at the smaller time frame charts in order to trade the news events. You cannot expect to see big difference if you are looking at the longer time frame charts such as the daily or the weekly charts. Trading news events can be profitable but not all forex brokers allow you to trade or scalp around news events. Therefore, you should be checking with your forex broker first before you trade the news. In this article, we give you an introduction about how to trade forex based on news releases. Remember that news based trading is not everyone’s cup of tea and requires a certain shift…
"The MetaTrader 4 or the MT4 trading platform is one of the most widely used trading platform in forex and CFD’s. You can use the MT4 on your desktop (Windows and Mac), mobile apps and via the browser as well. The reasons behind the popularity of the MT4 trading platform is that it is free of cost. But of course, it is not just the cost of the trading platform itself. Having been around for a decade, the MT4 trading platform has a strong ecosystem of developers and tons of technical indicators and expert advisors. If you are trading forex, chances are that you will stumble upon the MT4 trading platform. This article gives you a preliminary guide on how to get started with using the MT4 trading platform. By the end of this article, you should be able to comfortably navigate your way around the MT4 trading platform and even be able to identify where the various trading tools,…
"As a trader, one of the important things that you should learn is how to place orders. Depending on the market analysis that you have done, price can behave differently. This leads to setting up either a market order or a pending limit or a stop order. In this article, we give you the insights into the different ways you can set up the order types using the MT4 trading platform. It is relatively easy to use and the multiple approaches to pull up the trading order terminal will be easy. It might seem a bit difficult at first but once you have some practice, placing orders on the MT4 is very easy. Learn about the different order types that you can use on the MT4 trading platform in this article. At the end, you should be able to start applying the concepts explained onto a demo trading account and after you have gained enough experience, you can then apply…
"A demo trading account is an important toolkit in the journey of a trader. While traders usually start their journey into forex trading using a demo trading account, this is often discarded as a trader becomes more confident. Therefore, many think that a demo trading account is just a crutch to get rid of after one learns how to run. In reality, a forex demo trading account are like a simulation tool. The more you use it, the better the chances of increasing your success as a trader. There are many benefits of maintaining a forex demo trading account, regardless of whether you are a novice or an experienced forex trading. In this article, we give you a pointers on the importance of using a forex demo trading account and the benefits that you can gain from this. You will learn why some of the most experienced traders at prop firms continue to use a demo trading account. The importance…
Advanced Beginner Level Courses
- AB01 - How to Open a Forex Trading Account
- AB02 - How to read a price chart in forex
- AB03 - What is the best timeframe to trade forex
- AB04 - What are forex trading hours or trading sessions?
- AB05 - Different types of forex trading orders
- AB06 - What is a Spread in Forex Trading?
- AB07 - What is a Pip in Forex?
- AB08 - What is a Lot in Forex?
- AB09 - Leverage and Margin Explained
- AB10 - How Leverage Affects Transaction Costs
- AB11 - Margin Call Explained
- AB12 - Position Sizing Explained
- AB13 - What Is Risk Management?
- AB14 - 4 (Four) Types Of Stop Losses
- AB15 - 3 (Three) Rules To Follow When Using Stop Loss Orders
- AB16 - What is a forex economic calendar?
- AB17 - 2 Ways to Trade the News
- AB18 - Introduction to MetaTrader 4
- AB19 - MT4 Basics: How to Set Orders
- AB20 - Importance of trading with a demo account
