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? Forex Trading Notes

The document provides a comprehensive guide for beginner Forex traders, covering key concepts such as the Forex market, trading sessions, best currency pairs, strategies, and trading psychology. It outlines the advantages and disadvantages of Forex trading, the types of traders, and essential trading tools and apps. Additionally, it offers practical tips for successful trading and emphasizes the importance of risk management and emotional discipline.

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amantlesephiri71
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3 views8 pages

? Forex Trading Notes

The document provides a comprehensive guide for beginner Forex traders, covering key concepts such as the Forex market, trading sessions, best currency pairs, strategies, and trading psychology. It outlines the advantages and disadvantages of Forex trading, the types of traders, and essential trading tools and apps. Additionally, it offers practical tips for successful trading and emphasizes the importance of risk management and emotional discipline.

Uploaded by

amantlesephiri71
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Forex Trading Notes – Beginner Summary

1. Overview of Forex (Foreign Exchange)

What is Forex?

• The global market for buying and selling currencies.

Why Trade Forex?

• High liquidity

• Open 24/5

• Leverage potential

• Low startup cost (as low as R20–R500)

How It Works:

• Trade currency pairs (e.g., USD/ZAR).

• Buy one currency while selling another.

Major Market Participants:

• Central banks, retail traders, institutions, hedge funds

2. Forex Trading Sessions (South African Time – GMT+2)

Session Time (SAST) Notes

Sydney 11 PM – 8 AM Least volatile

Tokyo 1 AM – 10 AM Best for JPY pairs

London 9 AM – 6 PM High volume (EUR, GBP, USD)

New York 3 PM – 12 AM High volume, overlaps London

Best Times to Trade:

• 9 AM – 12 PM
• 3 PM – 6 PM

3. Best Currency Pairs to Trade (2025)

Major Pairs:

• EUR/USD

• GBP/USD

• USD/JPY

• USD/CHF

• AUD/USD

Volatile Pairs (For CRT & Scalping):

• XAU/USD (Gold)

• NAS100

• GBP/JPY

• USD/ZAR

4. Candle Range Theory (CRT) Strategy

Core Idea:

Price Action + Market Psychology

Phases:

1. Accumulation – Sideways movement

2. Manipulation – Fake breakout / liquidity grab

3. Expansion – Real trend starts

Setup:

• Wait for consolidation

• Watch for false breakout

• Enter on confirmation candle (with EMA or S&D zone)


5. Common Chart Patterns

Head & Shoulders

• Reversal pattern, signals end of uptrend

Double Top / Bottom

• Double Top = Sell

• Double Bottom = Buy

Flags & Pennants

• Continuation pattern, wait for breakout

Triangle Patterns

• Ascending = Bullish

• Descending = Bearish

• Symmetrical = Wait for breakout

6. Trading Psychology

Principles:

• Discipline > Emotion

• Follow your plan, not your feelings

Tips:

• Accept losses

• Avoid revenge trading

• Keep a journal

• Focus on long-term success

7. Trading Events That Impact the Market


Event Type Examples

Economic Reports NFP, CPI, GDP, Interest Rates

Geopolitical Events Elections, Wars, Political Crises

Central Bank Speeches Powell (Fed), Lagarde (ECB)

Unexpected Events Natural disasters, major surprises

Avoid Trading During:

• NFP (First Friday monthly)

• High-volatility events

• Interest rate announcements

8. Where to Read Forex News

• ForexFactory.com

• Investing.com

• Myfxbook.com

• TradingEconomics.com

9. Advantages of Forex

1. Low startup capital (R20–R500)

2. High liquidity

3. Open 24 hours (weekdays)

4. Leverage opportunities

5. Access to free tools (e.g., MT5, TradingView)

6. Variety of strategies

7. Learn about global economies


10. Disadvantages of Forex

1. High risk of loss (90% of beginners lose)

2. Leverage can wipe out accounts

3. Unpredictable market volatility

4. Emotional pressure

5. Complex learning curve

6. No passive income – requires active effort

11. Types of Forex Traders

Trader Type Timeframe Trade Duration Best For

Scalper 1–5 min charts Seconds–Minutes Fast thinkers, focused traders

Day Trader 5m–1H charts Intraday Part/full-time focused traders

Swing Trader 1H–Daily Days–Weeks Part-timers, students

Position Trader Daily–Monthly Weeks–Months Long-term investors

News Trader Any Minutes–Hours Fundamental-focused traders

Robot Trader Automated Based on logic Tech-savvy or investors

12. Key Forex Basics

Concept Description

Pip Smallest price move (0.0001, or 0.01 for JPY pairs)

Lot Size Trade size: micro, mini, standard

Leverage Use of borrowed capital (e.g., 1:100)

Spread Difference between buy (ask) and sell (bid) price

Margin Portion of your capital used for the trade


Concept Description

Stop Loss Automatically exits trade to limit loss

Take Profit Automatically exits trade when your profit target hits

Broker Trading platform provider (e.g., IFX Brokers, JustMarkets)

Recommended Broker (for Beginners)

• IFX Brokers

o Easy to use

o Minimum deposit: R50

o Great for South Africans

Candlestick patterns
Tips as a complete beginner:

• If you understand the charts, DON’T TRADE


• DON’T trade because of FOMO( Fear Of Missing Out)
• If you’re losing stop trading
• If blow your whole account – its okay – go learn using your demo account
• If you’re out of practice – learn using your demo account
• Don’t rely on robots
• Set realistic Take Profits(TP)
• Apply proper risk management
• You’re never gonna win – its part of the game!
• Set realistic goals
• Never trade on Monday – due to its volatility
• Trade NFP at your own risk!
• Don’t revenge trade
• Once you’ve reached your trade – STOP TRADING
• Don’t trust trader’s you see on TIKTOK or social media
• Never trade without doing you analysis – on TradingView
• Don’t trade XAUUSD with minimum capital (e.g. R100)
• Avoid self doubts

Apps you need as a Trader:

• TradingView – To do your analysis


• MetaTrader 5 – To actually trade
• IfxBrokers – To deposit and withdraw money

!!NB!! You need to 18 years to able to withdraw !!NB!!

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