FOREX TRADING FOR BEGINNER STEP BY STEP GUIDE TO A SUCCESSFUL TRADING JOURNEY

1. Complete Step-by-Step Guide to Become a Successful
Trader
BY NTK
GET A FOREX TRADING ROBOT HERE
BOT 1 HERE

2. What is Forex Trading?
it is the action of selling or buying foreign currencies. Of course, these are all used by banks,
corporations and investors for a variety of reasons like profit, making a trade, exchanging
foreign currencies and tourism.
One of the major benefits with forex trading is that after opening a position, traders are able to
put in place an automatic stop loss as well as at profit levels (this closes the trade).
The forex market is a place to buy or sell against each other a variety of national currencies,
globally. The currency will be changed from one currency to another, and currency pairs from
all over the world are continuously trading 24/7.
Wherever two foreign currencies are being traded, you can be sure that a forex market exists
regardless of the timezone.
Commonly used Trading Terminology
In this section of our forex trading PDF, we are going to run through some of the most
commonly used forex trading terminologies in the industry.
Pips
Pip stands for ‘point in percentage’, and depicts any small changes noted in currency pairs
within the forex market. The pip represents the smallest amount possible a currency quote can
alter. For instance, 0.0001 of a price quote – when it comes to the price of a currency pair. This
is referred to as the ‘base unit’ of the pair.
If the bid price for GBP/USD pair changes from 1.2590 to 1.2591, this illustrates the difference
of one pip.
Spread
The differentiation between the sale price and the purchase price of a currency pair is known as
the spread. The least popular (least commonly used) currency pairs usually have a low spread.
In some cases, this can be even less than a pip.

3. When trading the most commonly used currency pairs the spread is often at its lowest. The
total value of the currency pair needs to surpass the spread in order for the forex trade to
become profitable.
Leverage
We couldn’t create a forex trading PDF without mentioning leverage. In order for forex brokers
to increase the number of trades available to its customers, they need to provide capital in the
way of leverage.
Before you can trade using leverage, you must sign up to a forex broker and open a margin
account. Contingent on the broker and the size of the position, leverage is usually capped at
1:30 if you are a retail client (non-professional trader). Some offshore forex brokers will offer
much more than this if you are seeking higher limits.
Here are a few examples for a better idea of leverage:
 Let’s say that you are trading EUR/GBP which is priced at 1.1700
 You think the price will increase you you enter a buy position
 You only have £500 in your forex trading account
 You want to trade with more, so you apply the leverage of 20x
 The value of EUR/GBP increase by 2%
 On a standard stake of £500, you would have made a £10 profit
 But, as you applied leverage of 20x, this increased to £200
However, if the value of the pair went down by 2%, you would lose £200.
It is because of the aforementioned example that you should exercise caution when using
leverage. Should the worst possible scenario happen and your account falls below 0, you should
contact your forex broker and ask for its policy on negative balance protection.
The good news is that all forex brokers which are regulated by ESMA (the European Securities
and Markets Authority) will be able to provide you with this extra level of protection, ensuring
that you never become in debt with your broker. It’s like a stopper which prevents you from
dropping below 0.

4. Margin
Margins are a good way for traders to build up their exposure. Put simply, in order for a trader
to maintain position and place a trade, the trader needs to put forward a specific amount of
money first – this is the margin. Rather than being a transaction cost, the margin can be
compared to a security deposit. This will be held by the broker during an open forex trade.
It is commonplace for forex brokers to give their customers access to leverage (see above). This
is because generally speaking, the retail forex trader doesn’t have enough of a margin so that
they can trade in high volumes (well, high enough to make a decent enough profit).
Hedging
In order for you to lower your risk of exposure and offset your balance, you might consider
hedging. This is a procedure which involves traders selling and buying financial instruments.
When there are movements in currencies, a hedging strategy can reduce the risk of
disadvantageous price shifts. The protection of this technique is often a short term solution.
Traders often turn to hedge in a panic as a result of the financial media reporting volatility in
currency markets. This is usually down to huge events like geopolitical turmoil (conflict in the
middle east), global health crisis (COVID-19) and of course the great financial crisis of 2008
TRADING FOREX HERE

5. To counteract negative price movements, market players will tactically take advantage of
attainable financial instruments in the market. This is hedging against risk in its truest form.
Hedging will give you some flexibility when it comes to enhancing your forex trading
experience, but there are still no guarantees that you will be totally protected from any losses
or risks.
A hedging strategy example would be:
 As a concerned investor, you open a contrasting position on trade.
 To further explain, let us say you have a long position on GBP/USD
 You might decide to open a short position on GBP/GEURBP as well.
 This is also commonly referred to as a direct hedge
While it can take some time to get your head around heading in the forex markets, the
overarching concept is that it presents both outcomes. That is to say, irrespective of which way
the markets move, you will remain at the break-even point (less some trading commissions).
Spot Forex
The exchange rate of two currencies is often referred to as a ‘spot’ exchange rate. More
specifically, the spot trade is a spot transaction, with reference to the sale or the purchase of a
currency. Essentially, spot forex is to both sell and buy foreign currencies.

6. A good example of this is if you were to purchase a certain amount of South African rands
(ZAR), and exchange that for US dollars (USD).
If the value of the ZAR increases, you are able to exchange your USD back to ZAR, meaning you
get more money back in comparison to the amount you originally paid.
Contract for Difference (CFD)
CFD is basically a contract which portrays the price movement of financial instruments. So,
without having to own the asset, you can still make the most of price movements, whilst also
avoiding the need to sell or buy vast amounts of currency.
CFDs are also accessible in bonds, commodities, cryptocurrencies, stocks, indices and of course
– forex. With a CFD you are able to trade in price movements, cutting out the need to buy them
at all.
Different Forex Charts
This section of our forex trading PDF is all about forex charts. When it comes to a MetaTrader
platform, traders can use bar charts, line charts and candlestick charts. You can usually toggle
between the different charts, depending on your preferences, fairly easily.
Below we’ve put together an explanation of each type of chart for you.
Candlestick Chart
The first record of the now-famous candlestick chart was used in Japan during the 1700s and
proved invaluable for rice traders. These days, this price chart is without a doubt one the most
popular amongst traders all over the world.

7. Much like the OHLC bar chart (see below), candlestick charts provide low, high, open and close
values for a predetermined time frame. Live forex traders love this chart due to its visual
appearance and the range of price action patterns utilised.
It’s always advisable, unless you are a seasoned trader, to make use of free demo trading
modes. This allows you to gain a better understanding of how live trading works before you
take any big financial risks in the market.
OHLC Bar Chart
Standing for ‘Open, High, Low, Close’, the OHLC chart is great for portraying any movement in
the price of an asset, done over a specific time (for example – one hour, or a trading day).
As the title suggests, this one is a bar chart, and each time frame a trader is looking at will be
displayed as a bar. In other words, if you are viewing a daily chart you will see that every bar
equates to a full trading day.

8. Unlike the line chart (see below), the OHLC bar chart is unique in the sense that it displays a
wider variety of values and information like ‘open’, ‘high’, ‘low’ and ‘close’, hence the name.
 The highest market price traded within the selected timeframe will be represented by
the high of the bar.
 The lowest market price traded within the selected time frame is represented by the
low of the bar.
 The dash on the right will represent the closing price, and the dash on the left will be the
opening price.
 The red bars are also called seller bars; this is due to the fact the closing price is less
than the opening price
 The green bars are also referred to as buyer bars; opposite to above. This is because the
opening price is lower than the closing price.
With this price chart, traders are able to establish who is controlling the market, whether it be
sellers or buyers.
OHLC analysis was the starting block for the creation of the ever-popular candlestick charts
(please further down).

9. INVESTMENT OPPORTUNITY HERE
Line Chart
This chart is considered to be the most elementary type of price chart, but that doesn’t mean
it’s not useful. It is a great tool for looking at the bigger picture when it comes to trends.
It does depend on what time frame you are viewing (this can be anything from minutes to
months), but for argument’s sake let’s say you are using a daily chart. The line chart arranges
the close prices at the end of that time frame; so in this case, at the end of the day, the line will
connect the closing price of that day.
Forex – How to Trade
In this section of our forex trading PDF, we are going to talk about the different ways in which
you can sell and buy a forex position as well as things to look out for.
Pricing and Quotes
When it comes to forex trading you will see both ‘bid’ and ‘ask’ prices:
Bid price: This is the price you can sell currency at.
Ask price: This is the price you are able to buy currency at
When it comes to forex trading you can trade both short and long, but always make sure you
have a good understanding of forex trading before embarking on trades. After all, forex trading
can be a bit complex to begin with, especially when mixing long and short trades.
Long Trade (Buy)
In a nutshell, going long is usually a term used for buying. So, when traders expect the price of
an asset to rise, they will go long.
As an example of a long position:

10.  Say you’ve held a long position in the primary instrument purchased
 For example, USD/JPY
 This means that you are anticipating that the USD is going to increase in value against
the JPY
 If you invest £1,000 into USD/JPY through a long position, then you simply £1,000 staked
that the pair will increase in value
 Short Trade (Sell)
When forex traders expect the price of an asset to fall, they will go short. This means benefiting
from buying at a lesser value. To achieve this, you simply need to place a sell order.
Current Prices and Demand
The current exchange rate of a forex pair is always based on market forces. This will change on
a second-by-second basis. As we noted earlier, you also need to take the spread into account,
so there will always be a slight variation in pricing.
For instance, if you exchange 1 USD for 17 ZAR, the sale and purchase price offered by your
forex broker will be either side of that figure. The currency pairs with the most notable supply
and demand attached to them will be considered the most liquid in the forex market. The
supply and demand aspect is thanks to the investment of importers, exporters, banks and
traders – to name a few. This is how the forex arena is home to over $5 trillion worth of buy
and sell positions each and every day!

11. The most liquid currency pairs are therefore the ones in high demand. As an example, GBP/USD
offers a lot of short-term trading opportunities due to the sheer amount of pips moved each
and every day (90-120 on average). On the contrary, AUD/NZD doesn’t tend to move many pips
in a day. Having said that, if you have a good understanding of some of the more exotic
currencies- we at Learn 2 Trade are not saying it’s impossible to do well.
Forex Trading System to Consider
When you feel you are ready to take the plunge and begin live trading, you need to select a
forex trading system. There is a vast amount of trading strategies for you to pick from. This is
because investors, speculators, corporations and banks have been trading for decades.
In this part of the forex trading PDF, we are going to explain a few of the strategies available to
you.

12. Intraday Trade: Concentrating on 1-hour or 4-hour price trends, forex intraday trading is
considered more of a conservative way of trading. Focusing on the leading sessions for each
individual market, these trades remain open for anywhere between 1 and 4 hours. As such, this
could make it a suitable option for beginners.
Currency Scalping: This particular strategy is often viewed as a low-risk form of trading. It is
focused on selling and buying currency pairs within an extremely short time frame. This is
usually anywhere between a matter of seconds, and 2 to 3 hours at the most. This strategy
makes it very practical to potentially gain a number of smaller profits, with the hope of creating
a stockpile of profits.
Swing Trading: Often referred to as a medium-term approach, unlike scalping and intraday,
swing trading concentrates on bigger price movements. With this strategy, traders are able to
leave their trade open for days or even weeks. Some traders like to use this option in order to
embellish existing daily trades.
Trading Platforms – Explained
If you want to buy and sell currency pairs from the comfort of your home (or even via your
mobile device), you will need to use a trading platform. Otherwise referred to as a forex broker,
there are literally hundreds of trading platforms active in the online space. This makes it
extremely difficult to know which broker to sign up with.
In the below sections of our forex trading PDF, we explain some of the considerations that you
need to make.
Analysis Tools and Features
You should also look out for analysis tools available to you. In some cases, this might be
embedded, while some offer tools such as technical analysis and fundamental analysis. There’s
no doubt that having access to a range of technical indicators, live price charts, and current
news and data from the financial market is an essential part of forex trading.
However, if you can access these technical indicators within your trading platform, it’s going to
prove to be very useful. This is because it will save you a lot of leg work having to move
between different sites and sources of information.
Some of the fastest and easiest trading platforms are MetaTrader 5 (MT5) and MetaTrader 4
(MT4). Whilst MT4 was created especially for forex traders, MT5 gives traders access to CFDs

13. (For CFDs, please see explanation under ‘Commonly used Trading Terminology’ in this forex
trading PDF).
Crucially, both MT4 and MT5 are fast and receptive trading platforms, both providing live
market data and access to sophisticated charts.
Confidence in Your Forex Broker
It is essential before you begin trading seriously that you fully trust the trading platform you
intend on using. This is especially the case if you intend on using a scalping strategy, for
example.
However, if you like to trade, it is vital for your peace of mind and your finances that you are
fully confident with the fast execution of data transfer. This is also the case with the precision
of quoted prices, and the speed of order processing. All of these things are going to help you to
have a successful forex trading experience.
To enable you to make the most of new opportunities, the ideal forex broker will be available to
you 24 hours a day and 7 days a week, in line with the forex market opening hours.
Independent Account Manager
To save you from having to request that your broker takes action for you, your forex broker
should enable you to manage your account and your trades separately.
By doing this, you will be in a much better position to quickly react to any shifts in the market,
and hopefully, make the most of potential opportunities. This will enable you to gain better
control over any open positions as and when they arise.
Safety and Security
It is important to ensure that your forex broker of choice is a reputable company, who will
ensure that your personal information and trading funds are fully protected and backed up.

14. Segregation is frequently used amongst forex brokers as a way to separate your funds from the
funds of the company (i.e their daily costs, debts and running costs). So, no matter what
happens to the forex broker, your money is safe and segregated.
If you find that a forex broker is unable to do this, we would suggest you find a better broker as
it is standard practice these days. All of the brokers listed towards the end of this forex trading
PDF are regulated by at least one reputable licensing body.
Forex Trading – Getting Started
In terms of getting set up as an online forex trader, the steps remain constant regardless of
which broker you decide to join. Below we list some of the steps that you will need to take.
Step 1: Open an Account
In order to open an account, you will need to enter some personal information. Standard
details requested by the broker will be things like your name, residential address, and contact
details.
Some brokers will also require your tax status and will ask you to provide more financial details
such as employment status, net worth and any regular income.
Step 2: Trading Experience
Forex brokers will often want to ensure you have some level of trading experience (however
this isn’t always the case). In this instance, you will usually need to answer some multiple-
choice questions based on your experience. This is usually a fairly simple process.
Step 3: Verifying your Identity
Known as KYC in the industry (Know Your Customer), this simply means that the forex broker is
going to need you to prove who you are. Some brokers will verify this using scanned copies of
documentation. This is typically a government-issued ID (passport or driver’s license) and a
proof of address (utility bill or bank account statement).

15. Step 4: Depositing Funds
Now you need to select your payment method of choice (usually from a drop-down list). Bear in
mind that how long this takes to go into your trading account will largely depend on the
payment method – so always check this before parting with your cash.
Supported payment methods typically include a debit/credit card or bank account. Some
brokers even support e-wallets like Paypal and Skrill.
Step 5: Begin Trading
After reading our forex trading PDF you should now be feeling confident enough to begin
trading. However, we do recommend that you always try out a free forex trading demo first.
This will allow you to test out your newly formed trading strategies before risking your own
capital.
Forex Trading Strategies
In the next section of our forex trading PDF, we explore some of the more important technical
indicators and market insights used by seasoned traders.
Donchian Channels
First invented by Richard Donchian, the donchian channels can be adapted as you like, in terms
of parameters. Should you choose to view a 30-day breakdown, for example, the indicator will
be created by taking the lowest low, and the highest high of that period (so in this example 30
periods).
CLICK HERE

16. When observing the moving average on a donchian channel you can look at averages stretching
from 25 days to the last 300 days. The direction which is permitted is determined by the
direction of the short-term moving average.
With this in mind, you should think about opening one of the following two positions:
Long – If the last 300-day moving average is lower than the 25-day moving average.
Short – If the last 300-day moving average is greater than the 25-day moving average.
You will need to sell your pair in order to exit your trade if you open a long position (and visa-
versa).
Simple Moving Average

17. This is another commonly used forex indicator. The simple moving average (aka SMA) operates
at a slower rate than the present market price (known as a lagging indicator). Furthermore, it
uses a lot of historical price data. In fact, more so than most other strategies.
A good indication that the latest price is higher than the older price is when the long-term
moving average is below the short-term moving average. This could be considered a buy signal
due to an upward trend in the market.
In the opposite scenario when the long-term moving average is higher than the short-term
moving average, this of course points towards a sell signal due to a downward trend. Moving
averages are usually used as evidence of an overall trend, rather than purely forex trading
signals.
This means you can blend both strategies in order to ditch breakout signals which don’t match
up to the general trend the moving averages suggestS. Of course, this is a great way to make
your breakout signals much more productive. If you are alerted to a sell signal, this indicates
that the short-term moving average is below that of the long-term moving average, so you
might want to place a sell order.
However, if you are given a signal to buy, this usually means that the short-term moving
average is higher than that of the long-term moving average.
Breakout
Using breaks as trading signals, the breakout is considered a long-term strategy. Commonly
referred to as ‘consolidation’, markets sometimes alternate between resistance and support
bands. The breakout itself occurs when the market goes further than these consolidation limits
– whether that be lower or higher. As such, a breakout must take place whenever a new trend
occurs.
By looking at breaks, you will have a good indication of whether or not a new trend has begun.
With that said, this doesn’t mean that a breakout is 100% accurate in signalling a new trend. In
this case, you might want to use a stop-loss order to give you a better chance of avoiding a
substantial loss.

18. Forex Trading: Possible Risks
As glamorous as a career in forex trading might sound, there are a number of risks that you
need to take into account. In the below sections of our forex trading PDF, we explore these
possible risks in more detail.
Transactions
The transaction risk is in relation to the exchange rate and any time zone differences. This
means there is a chance that at some point between the beginning and end of a contract that
the exchange rates could be subject to change. The risk of this happening elevates with the
more time that passes between entering a contract and settling the same contract.
Interest Rates
The risk here is that if a country’s interest rate falls, the currency of that country will probably
be weaker. This generally leads to investors withdrawing investments, and as a result, your
return will be lower.
The good news is that when a currency rate is on the rise, chances are that the respective
currency will be stronger. When this does happen, your returns could be higher. This is because
seasoned investors like to gain exposure to stronger currencies.
Leverage Risk
The higher your leverage is, the higher your losses or benefits will be. Of course, this means
leverage can affect your trading in a positive or negative way – depending on which way it goes.
Best Forex Trading Brokers of 2021
The final part of our forex trading PDF is to explore which brokers are popular with both newbie
and seasoned traders. Each of the forex trading platforms listed below has been pre-vetted,
meaning that you can be confident they tick most boxed.

19. This means that each platform is regulated, offers heaps of forex pairs, has low commissions
and fees, and supports several payment methods.
XM Group (XM) is a group of regulated online brokers. Trading Point of Financial Instruments
Ltd was established in 2009 and it is regulated by the Cyprus Securities and Exchange
Commission (CySEC 120/10), Trading Point of Financial Instruments Pty Ltd was established in
2015 and it is regulated by the Australian Securities and Investments Commission (ASIC 443670)
and XM Global Limited was established in 2017 and is regulated by the International Financial
Services Commission (000261/106). Our clients benefit from direct access to the financial
markets in over 300 financial instruments. This broker has more than 1000 financial
instruments which can be traded on the MT4/MT5 platforms and this includes Forex Trading,
Stocks CFDs, Commodities CFDs, Equity Indices CFDs, Precious Metals CFDs and Energies CFDs
with transparent real-time pricing, lowest spreads, and flexible leverage.
We value business efficiency - this is why we regard speed and fairness as crucial.
 up to 888:1 Leverage. *This leverage is not available to all the entities of XM Group.
Leverage depends on the financial instrument traded.
 First they offer 30$ bonus and trust me this is the best in the industry.
 8 Platforms, including MetaTrader4/5 and webtrader
 Deposit Bonus up to 5 000 USD. *Clients registered under the EU regulated entity of the
Group are not eligible for the bonus
 Webinars
 Tutorials
 Account Funding 100% automatic
 IB partner program with tailor made solutions for every partner
 Minimum deposit is only $5

20.  Tight forex spreads
 Currency converter available on official site
 Comfortable and safe trading
Visit XM
HERE
FXTM is a CySEC, FCA, IFSC regulated forex broker offering for trading Bitcoin, Forex, CFDs, CFDs
on Bitcoin, CFDS on Spot metals, Cryptocurrencies and standard and ECN accounts. FXTM works
from 2011 and has firmly established itself as a global broker. FXTM offers trading on...
FXTM is a legit broker, as each of the entities and brands that it serves is authorized and
regulated by various global jurisdictions. The main entity ForexTime ...
🎮 Demo Account: Available
💰 EUR/USD Spread: 1.5 pips
� ️ Regulation: CySEC, FCA, FSCA, FSC
� Platforms: MT4, MT5
VISIT FXTM
Get yourself a forex trading robot here
BOT 1 HERE