Congratulations! You Made It!

You would be able to make it!

You’ve already read all six gazillion pages of the School of Pipsology.

 Now, you belong to everything you need to conquer the FOREX world, retire in a year or two, and then go travel the world in your Gulfstream jet, right?

Make a tour on your mind again.

We are sorry to burst your bubble, but you have just barely scratched the surface.

We never sugarcoat things. We told you early on that it was going to be difficult.

When you’re a noob and just finished the School, you’re most likely going to be horrendously bad at trading.

FOREX MANAGED ACCOUNTS

Don’t have time to learn how to trade FOREX? Want to be part of the Billionaire’s Club?

If you answered “yes” to these two questions, the FOREX managed accounts scam is the fraud for you!

You can call our hotline at 1-800-4XFRAUDS!

This scam operates by having an investor “invest” with a “professional” trader, who trades the investor’s capital for a percentage of the profits.

This can sound appealing, especially to beginners who have no idea what they are doing or don’t have the time to learn.

They make out, “Well, he’s a ‘professional’ – he must know what he’s doing! It’s 100 times better than if I traded by myself!”

There is a problem that the user is placing complete trust of his/her money into the hands of a complete stranger.

CURRENCY CORRELATION EXPLAINED

 Did you see that when a certain currency pair rises, another currency pair falls? Or how about when that same currency pair falls, another currency pair seems to copy it and falls also?
If you reply “yes,” you’ve just witnessed currency correlation in action!
And if you say “no,” you need to stop doing less important things like sleeping, eating, playing Candy Crush or Angry Birds, and instead spend more time watching charts.
But, don’t be worried about. We are going to start with the basics and break it down yo…

4 TYPES OF STOP LOSSES

Come forward to face it. As the market will always do what it wants to do, and move the way it wants to move. In each new second coming is a new challenge, and almost anything from global politics, major economic events, to central bank rumors can turn currency prices one way or another faster than you can snap your fingers.

Position Sizing

By now, you have already learned the hard lesson of trading too big, let’s get into learn properly the usage of leverage using proper “position sizing.”

Position sizing is setting the correct amount of units to buy or sell of currency pair.

This is one of the most crucial skills in a FOREX trader’s skill set, in deed.

IGNORING LEVERAGE: WHY MOST NEW FOREX TRADERS FAIL

Almost all of the  professional FOREX traders and money managers trade one standard lot for every $50,000 in their account.
Whenever they traded a mini account, this means they trade one mini lot for every $5,000 in their account.
Think a moment.
When pros trade like this, why do less experienced FOREX traders think they can succeed by trading 100K standard lots with a $2,000 account or 10K mini lots with $250?
It is not a serious matter what the FOREX brokers tell you. Never open a “standard account” with just $2,000 or a “mini account” with $250. Heck, sometimes you may be able to open accounts with just $25.
The most important cause is new traders fail is not because they suck, but because they are undercapitalized from the start and don’t understand how leverage really works.

What is a Currency Cross Pair?

Come back to few years ago.
 Then, whenever someone wanted to change currencies, they would first have to convert their currencies into U.S. dollars, and only then could they convert their dollars into the currency they desired.

For example, if a person wanted to change their U.K. sterling into Japanese yen, they would first have to convert their sterling into U.S. dollars, and then convert these dollars into yen.

Whenever the currency crosses invented, individuals can now bypass the process of converting their currencies into US dollars and simply convert it directly into their desired currency. Some examples of crosses include: GBP/JPY, EUR/JPY, EUR/CHF, and EUR/GBP.

What is Fundamental Analysis?

On the way travels, you must come across Gulliver, Frodo, and the topic of fundamental analysis.
Wait a minute…
You have already been provided a teaser about fundamental analysis during Kindergarten! Now let’s get to the nitty-gritty!
Do you the exactly usage of it? Well, fundamental analysis is the study of fundamentals! That was easy, wasn’t it? Ha! Gotcha!
There is really more to it than that.  Really much more than you imagine!
If you hear people mention fundamentals, they’re really talking about the economic fundamentals of a currency’s host country or economy.
The economic fundamentals cover a vast collection of information – whether in the form of economic, political or environmental reports, data, announcements or events.
Even a credit rating downgrade qualifies as fundamental data which do you need to look how Pip crawler turned this news into a winning short EUR/USD trade.

What are breakouts and how can I take advantage of them?

Unlike the breakouts you might have had as a teenager, a breakout in the trading world is a little different!
A breakout happens if the price “breaks out” (get it?) of some kind of consolidation or trading range.
A breakout may also happen when a specific price level is breached such as support and resistance levels, pivot points, Fibonacci levels, etc.
In breakout trades, the goal is to enter the market right whenever the price makes a breakout and then keep it continue to ride the trade until volatility dies down.

Know Your Trading Environment

If two people go to war, the foolish man always rushes blindly into battle without a plan, much like a starving man at his favorite buffet spot.

On the contrary, the wise man will always get a situation report first to know the surrounding conditions that could affect how the battle plays out.

Trading Divergences

How is it if there be a low risk way to sell near the top or buy near the bottom of a trend?
How is it if there be already in a long position and you could know ahead of time the perfect place to exit instead of watching your unrealized gains, a.k.a your potential Aston Martin down payment, vanish before your eyes because your trade reverses direction?
What will be it if you believe a currency pair will continue to fall but would like to short at a better price or a less risky entry?

What is the Elliott Wave Principle?

The Elliott Wave Principle is a detailed description of how groups of people behave. It reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific and measurable patterns.

One of the easiest places to see the Elliott Wave Principle at work is in the financial markets, where changing investor psychology is recorded in the form of price movements. If you can identify repeating patterns in prices, and figure out where we are in those repeating patterns today, you can predict where we are going.

FOREX PIVOT POINTS

Do you feel excitement!  It’s the last year in junior high before you send to high school!
 Pivot points are used by the professional FOREX traders and market makers to identify potential support and resistance levels. Simply put, a pivot point and its support/resistance levels are areas at which the direction of price movement can possibly change.
Do you know why pivot points are so enticing?
It is for their OBJECTIVENESS.

CHART PATTERNS SCHMATTERNS

We hope that you have achieved an arsenal of weapons to use when you battle the market now. In this lesson, you will add yet another weapon: CHART PATTERNS!

Imagine chart patterns as a land mine detector because, once you finish this lesson, you will be able to spot “explosions” on the charts before they even happen, potentially making you a lot of money in the process.

 Before you let a fart explode chart patterns are like that funny feeling which you get in your tummy right

Leading vs. Lagging Indicators

You are provided a lot of tools that can help you analyze potential trending and range bound trade opportunities. Still doing great so far? Awesome! Let’s move on.

We are going to streamline the use of these chart indicators in this lesson.

We desire you to make properly understood the strengths and weaknesses of each tool, so you can determine which ones work for you and which ones don’t.

Come to the some basic concepts first.

 There are two types of indicators:

1.      Leading indicator

2.      Lagging indicator

 Leading indicator

How to Use Bollinger Bands

Congratulations!  You have made it to the 5th grade! Each time you make it to the next grade you continue to add more and more tools to your trader’s toolbox.
“What’s a trader’s toolbox?” you may ask.
 It is simple!
Compare trading with a brick building of home.  Which tools is used to the building? You wouldn’t use a hammer on a screw, right? Nor would you use a buzz saw to drive in nails. There’s a proper tool for each situation.
It is similar to in trading business, some trading tools and indicators are best used in particular environments or situations. So, the more tools you have, the better you can adapt to the ever-changing market environment.
Or if you want to focus on a few specific trading environments or tools, that’s cool too. It’s good to have a specialist when installing your electricity or plumbing in a house, just like it’s cool to be a Bollinger Band or Moving Average expert.
There are billions different ways to grab some pips!
For this lesson, as you learn about these indicators, think of each as a new tool that you can add to that toolbox of yours.
You need not use all of these tools, but it’s always nice to have plenty of options, right? You might even find one that you understand and comfortable enough to master on its own. It is enough discussed.
Now, come to start!

WHAT ARE MOVING AVERAGES?

Moving average indicates a way to smooth out price action over time. By “moving average”, we mean that you are taking the average closing price of a currency pair for the last ‘X’ number of periods. On a chart, it would look like bellow this:

A moving average indicator is used to help us forecast future prices as every indicator does. It is better to determine the potential direction of market prices by looking at the slope of the moving average.

As we said, moving averages smooth out price action.

There are different types of moving averages and each of them has their own level of “smoothness”.

Actually, the smoother the moving average, the slower it is to react to the price movement.

The choppier the moving average, the quicker it is to react to the price movement. To make a moving average smoother, you should get the average closing prices over a longer time period.

Now, you’re probably thinking, “C’mon, let’s get to the good stuff. How can I use this to trade?”

In this lesson, we first explain the two major types of moving averages:

1. Simple moving average
2. Exponential moving average

We’ll also let you know how to calculate them and give the pros and cons of each. Just like in every other lesson in the forexmic.com, School of Pipsology, you have to learn the basics first!

Know about Fibonacci Trading

Fibonacci ratios is used a lot in our trading so you better learn it and love it like your mother’s home cooking. Fibonacci is a huge subject and there are many different Fibonacci studies with weird-sounding names but we’re going to stick to two: retracement and extension.
Lets come to start introducing you to the Fib man himself…Leonardo Fibonacci.

FOREX SUPPORT AND RESISTANCE

This is one of the most widely used concepts in FOREX TRADING. Surprisingly, everyone seems to have their own idea on how you should measure FOREX support and resistance.
Let’s see the basics first.

Put your eye before the diagram above. As you visualize, this zigzag pattern is making its way up (bull market). If the FOREX market moves up and then pulls back, the highest point reached before it pulled back is now resistance.

As the market continues up again, the lowest point reached before it started back is now support. In this way, resistance and support are spontaneously formed as the FOREX market oscillates over time. The reverse is correct for the downtrend.

3 TYPES OF FOREX CHARTS AND HOW TO READ THEM

Look at the three most popular types of FOREX charts:

1. Line chart
2. Bar chart
3. Candlestick chart

Here is the well explanation of each of the FOREX charts bellow…