FOREX TRADING

MASTERY

EMMANUEL
OKPARA

TRADE LIKE A PROFFESIONAL

ROADMAP
1. INTRODUCTION TO FOREX TRADING
WHAT IS FOREX TRADING?
HOW THE FOREX MARKET WORKS
KEY TERMINOLOGY
2. GETTING STARTED
SETTING UP YOUR TRADING ENVIRONMENT
CHOOSING A FOREX BROKER
UNDERSTANDING TRADING PLATFORMS: METATRADER 4 (MT4), METATRADER 5 (MT5), AND TRADINGVIEW
3. FUNDAMENTALS OF FOREX TRADING
CURRENCY PAIRS
UNDERSTANDING EXCHANGE RATES
BID AND ASK PRICE
SPREAD AND PIPS
4. TECHNICAL ANALYSIS
INTRODUCTION TO TECHNICAL ANALYSIS
CHART TYPES: LINE, BAR, CANDLESTICK
SUPPORT AND RESISTANCE LEVELS
TREND LINES AND CHANNELS
CHART PATTERNS: HEAD AND SHOULDERS, DOUBLE TOPS AND BOTTOMS, TRIANGLES
5. TECHNICAL INDICATORS
MOVING AVERAGES
RELATIVE STRENGTH INDEX (RSI)
MOVING AVERAGE CONVERGENCE DIVERGENCE (MACD)
BOLLINGER BANDS
FIBONACCI RETRACEMENT
6. FUNDAMENTAL ANALYSIS
ECONOMIC INDICATORS
INTEREST RATES
POLITICAL EVENTS
MARKET SENTIMENT
7. TRADING STRATEGIES
DAY TRADING
SWING TRADING
SCALPING
POSITION TRADING
RISK MANAGEMENT STRATEGIES
8. USING TRADING PLATFORMS
NAVIGATING METATRADER 4 (MT4)
NAVIGATING METATRADER 5 (MT5)
USING TRADINGVIEW FOR ANALYSIS
PLACING TRADES
USING STOP-LOSS AND TAKE-PROFIT ORDERS
9. ANALYZING THE MARKET
COMBINING TECHNICAL AND FUNDAMENTAL ANALYSIS
DEVELOPING A TRADING PLAN
BACKTESTING AND FORWARD TESTING STRATEGIES
10. ADVANCED TRADING CONCEPTS
AUTOMATED TRADING SYSTEMS (EXPERT ADVISORS)
TRADING PSYCHOLOGY
CONTINUOUS LEARNING AND IMPROVEMENT
11. CONCLUSION
SUMMARY OF KEY POINTS
RESOURCES FOR FURTHER LEARNING
FINAL WORDS OF ADVICE
INTRODUCTION TO FOREX TRADING
WHAT IS FOREX TRADING?
FOREX, OR FOREIGN EXCHANGE, TRADING IS THE PROCESS OF BUYING AND SELLING CURRENCIES WITH
THE AIM OF MAKING A PROFIT. THE FOREX MARKET IS THE LARGEST AND MOST LIQUID FINANCIAL
MARKET IN THE WORLD, WITH A DAILY TRADING VOLUME EXCEEDING $6 TRILLION. UNLIKE OTHER
FINANCIAL MARKETS, THE FOREX MARKET OPERATES 24 HOURS A DAY, FIVE DAYS A WEEK, ALLOWING
TRADERS TO PARTICIPATE AT ANY TIME.
HOW THE FOREX MARKET WORKS
THE FOREX MARKET IS DECENTRALIZED, MEANING IT DOES NOT HAVE A CENTRAL EXCHANGE LIKE
STOCK MARKETS. INSTEAD, TRADING IS CONDUCTED ELECTRONICALLY OVER-THE-COUNTER (OTC)
THROUGH A NETWORK OF BANKS, BROKERS, AND FINANCIAL INSTITUTIONS. THIS ALLOWS FOR
CONTINUOUS TRADING AND OFFERS HIGH LIQUIDITY AND VOLATILITY, MAKING IT AN ATTRACTIVE
MARKET FOR TRADERS.
KEY TERMINOLOGY
BEFORE DIVING DEEPER INTO FOREX TRADING, IT’S ESSENTIAL TO UNDERSTAND SOME KEY TERMS:
CURRENCY PAIR: THE QUOTATION OF TWO DIFFERENT CURRENCIES, WITH THE VALUE OF ONE
CURRENCY BEING QUOTED AGAINST THE OTHER.
BASE CURRENCY: THE FIRST CURRENCY LISTED IN A CURRENCY PAIR.
QUOTE CURRENCY: THE SECOND CURRENCY LISTED IN A CURRENCY PAIR.
BID PRICE: THE PRICE AT WHICH A TRADER CAN SELL THE BASE CURRENCY.
ASK PRICE: THE PRICE AT WHICH A TRADER CAN BUY THE BASE CURRENCY.
SPREAD: THE DIFFERENCE BETWEEN THE BID AND ASK PRICE, REPRESENTING THE COST OF THE
TRADE.
PIP: THE SMALLEST PRICE MOVE IN A CURRENCY PAIR, USUALLY EQUAL TO 0.0001.
GETTING STARTED
SETTING UP YOUR TRADING ENVIRONMENT
CREATING AN EFFICIENT TRADING ENVIRONMENT IS CRUCIAL FOR SUCCESS IN FOREX TRADING. HERE
ARE THE STEPS TO SET UP YOUR TRADING SPACE:
1. CHOOSE A RELIABLE FOREX BROKER: ENSURE THE BROKER IS REGULATED BY A REPUTABLE
FINANCIAL AUTHORITY AND OFFERS COMPETITIVE SPREADS, FAST EXECUTION, AND ROBUST
CUSTOMER SUPPORT.
2. SELECT A TRADING PLATFORM: POPULAR PLATFORMS INCLUDE METATRADER 4 (MT4),
METATRADER 5 (MT5), AND TRADINGVIEW. THESE PLATFORMS PROVIDE VARIOUS TOOLS FOR
CHARTING, ANALYSIS, AND EXECUTING TRADES.
3. STABLE INTERNET CONNECTION: A RELIABLE AND FAST INTERNET CONNECTION IS ESSENTIAL FOR
SMOOTH TRADING OPERATIONS.
4. TRADING JOURNAL: MAINTAIN A JOURNAL TO RECORD YOUR TRADES, STRATEGIES, AND
PERFORMANCE FOR CONTINUOUS IMPROVEMENT.
CHOOSING A FOREX BROKER
WHEN SELECTING A FOREX BROKER, CONSIDER THE FOLLOWING FACTORS:
REGULATION AND TRUSTWORTHINESS: ENSURE THE BROKER IS REGULATED BY A REPUTABLE
FINANCIAL AUTHORITY (E.G., FCA, CFTC, ASIC).
TRADING COSTS: COMPARE SPREADS, COMMISSIONS, AND OTHER FEES.
LEVERAGE OPTIONS: UNDERSTAND THE LEVERAGE OFFERED AND USE IT RESPONSIBLY.
CUSTOMER SUPPORT: LOOK FOR BROKERS THAT PROVIDE EXCELLENT CUSTOMER SERVICE AND
EDUCATIONAL RESOURCES.
UNDERSTANDING TRADING PLATFORMS: METATRADER 4 (MT4), METATRADER 5 (MT5), AND
TRADINGVIEW
METATRADER 4 (MT4): KNOWN FOR ITS USER-FRIENDLY INTERFACE AND ADVANCED CHARTING
TOOLS, MT4 IS A POPULAR CHOICE AMONG TRADERS. IT SUPPORTS AUTOMATED TRADING
THROUGH EXPERT ADVISORS (EAS).
METATRADER 5 (MT5): AN UPDATED VERSION OF MT4, MT5 OFFERS ADDITIONAL FEATURES,
INCLUDING MORE TIMEFRAMES, ORDER TYPES, AND AN ECONOMIC CALENDAR.
TRADINGVIEW: A WEB-BASED PLATFORM THAT PROVIDES POWERFUL CHARTING AND ANALYSIS
TOOLS, SOCIAL NETWORKING FEATURES, AND THE ABILITY TO EXECUTE TRADES DIRECTLY FROM
THE CHARTS.