Understanding Forex and Trading - Quick Overview

Trading Forex is NOT GAMBLING!

If you wish to gamble and become a lucky billionaire, then you are in the wrong place.
In this Blog, I will be teaching you the basics of Forex Trading and some advanced strategies that you can use to start earning money online.

More advanced sections will be posted on Money Management and Trading Psychology.

Please Scroll Down to start reading and understanding the basics.

Some sections of this blog will be references and post from other sites, which I find useful and wish to share them with you. Mostly, I will try to make your life easier because trading is boring. So my Job is not to create anything new about Forex but to guide you and try to make your life easier and more fun to trade.

We all know that the best way to learn is to open a demo account, but let's get real, we want to start making real profits.

For those of you who wish to start trading immediately: I can recommend my broker, and I have been trading with them for few years. If you are interested to trade with them, click on the link to get your 100% deposit bonus. If you register with them thru the below registration form, please let me know in the comment section and I will add you to my mailing list. I will be sending by email some trading analysis and trades that I will open.



Happy Trading and Good Luck.

**** Due to several requests from people around me, I started a PAMM account with my broker.
If you are interested that I trade on your behalf, click on the banner below and register thru this link banner only, to be directed into my PAMM account.

Understand the Basics

We all take the basics of trading very lightly and we want to directly start focusing on patterns and Fibonacci and advanced patterns etc...

But we forget the fact that the market moves, only because of demand and supply. If demand is bigger than supply, prices go up and vice versa.

The market keep moving because of supply and demand. When the demand becomes stronger than the supply, we find support in the market (i.e. support line on the charts). and when the supply becomes stronger than the demand, we find resistance in the market (i.e. resistance line on the charts).

Now, this is very important, Support and Resistance lines should be broken or else the market will not go anywhere.

In general, we focus on strong support and resistance levels in the market, to expect strong rallies or retracements.

Our job is not to define or try to change the market, the market will not move the way we decide.

Our few lots will not make the market even blink 1 pip. What we need to understand, is that there are market movers, such as governments, banks and big financial companies. If we trade with few thousands of dollars, these guys trade with billions. 

Let us assume that the market is a jungle, with no rules and very chaotic atmosphere. and you are in the middle of this jungle. If you see a pack of Bulls running in a certain directions, you would want to run with them and not confront them. Same as if you see a pack of Bears running in a certain direction, you better ride with them and not face them.

In the market, Bears are the Sellers and Bulls are the Buyers. You better not confront them, but ride with the most powerful in that particular period of time.

You might have heard the term "the trend is your friend", this is very true. Bulls and Bears define the trend, and as a beginner, you better start trading only with the trend.

Support and Resistance Levels Example

As you can notice from the chart above, the market respects these lines. Respecting the lines does not mean that it will always bounce off these levels. Respecting these lines means that most of the traders are waiting to take actions around these lines. You can imagine how many traders set their take profit, stop loss, buy/sell orders, around these levels. This is why most of the time we can see a big move on the breakout.

If you have any questions, please post them in the comment section.