Adam Khoo Forex Trading 6651r

Adam Khoo Forex        

Market run within a network of bank 24 hours 5 days a week Minimal investment at @ $200 Minimal time commitment 3-6 hours a day is more than sufficient. Need hard work No employee, no office or inventory Recession proof

The business of forex trading   

24 hours market gives flexibility Build your business from anywhere in the world Plan your day trading routine around day

Generate consistent profits. Profit returns of 5% - 20% a month are very possible. Most common currency system EUR Euro USD US dollar GBP British Pound JPY Japanese Yen CHF Swiss Franc AUD Australian Dollar CAD Canadian Dollar NZD New Zealand Dollar Successful traders only trade the most common and liquid 7 pairs: EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD AND USD/CAD

Currency Exchange Rates Currencies are quoted in Pairs and mostly in 4- decimal places. EUR/USD

Base currency

= 1.3505

If you want to buy Euro, you need to pay 1.3505 US Dollar. If you want to sell 1 Euro you would receive 1.3505 US Dollars.

Currency Exchange Rates While all other pairs are quoted to 4 decimal places (1 pip = 0.0001) , the JPY pairs are quoted to 2 decimal places USD/JPY = 98.73 This quote tells is that 1 US Dollar is equivalent to 98.73 Japanese yen PIP (price interest Point) Pip is the smallest change in value for any given forex quote.

Contract Lot Sizes A standard lot is 100,000 unit of the base currency When you buy one standard lot of EUR/USD, you are buying 100,000 Euros with US dollars. Other lot sizes LOTS SIZE

UNITS

STANDARD

100,000

MINI

10,000

MACRO

1,000

NANO

100

1 LOT = 100,000 0.5 lot = 50,000

Calculating forex profits Profits/loss = No of Pips No. of lots $ value per Pips Per Standard Lot $value per pip per standard lot is USD 10 OR D10 for most of the actively traded pairs ( i.e. EUR/USD, GBP/USD, AUD/USD) GO TO https://www.mtpredicton.com/Pip-Value-Table to find out $value per pip per lot for all major currency pairs.

Profit by going long Going long EUR/USD 1 standard lot EUR100,000 Sell EUR/USD 1.3550 Bullish in trend Profit 40 pips * $10* 1 standard lot = $400 Buy EUR/USD 1.3510 How to profit from forex moves Going long EUR/USD 1 standard contract at EUR/USD 1.3510 Buy EUR/USD AT 1.3510 SEL EUR/USD AT 1.3550 3550-3510 = 40 Profits = Number of pips * $ value per pip std lot * number of lots = 40 pips * US$10* 1 lot = us$400 Another way of looking at it Buy Euro 100,000 and pay USD 135,100 Sell Euro 100,000 and receive USD 135,500 Total profit earned = $400 Without leverage, you would have to invest USD 135,100 to earn USD 400 (0.29% Return). Forex brokers allows you to leverage 1:100 times.

We employ leverage of 1:20 we just need to invest of a margin of US$6,755 (5% of position of the position size). Our return becomes $400/6,755 =5.9% return.

Profit by going short Going short EUR/USD 1 contract EUR 100,000 SELLEUR/USD AT 1.3560 BUY EUR/USD AT 1.3520 3560-3520 = 40 PIPS Profits = Number of pips * $ value per pip std lot * number of lots = 40 pips * US$10* 1 lot = us$400 Another way of looking at it SELL Euro 100,000 and RECIEVE USD 135600 BUY Euro 100,000 and receive PAY 135200 Total profit earned = $400

POWER OF LEVERGE 1.20 best for 10,000-dollar

1. Scalpers Target 5-10 pips per trade Trade duration: second to minutes Charts: M1 and M5

3 swing traders Target: 50-150 pips per trade Trade duration less than a week Chart H and H4

2. Day traders Target 20-40 pips per trade Trade duration: within a day Charts: M15 and H1, H4

4. position traders Target: 500-1000 pips per trade Trade duration: weeks to months Chart: D1 (daily candles), W1

What is the secret to consistent trading profit? Consistent profit from random outcomes.

Technical analysis Three axioms of technical analysis Market prices discount all known information Market price is a reliable measure of collective human psychology. Market price is leading indication of all fundamental data (economic and political news) 3. Price move with the trend Uptrend > probability price will move higher. Downtrend< probability price will move lower.

candle

Moving average indicates trend direction and and resistance level. A simple moving average is the simple average of the price over a pre-defined number of periods. An exponential moving average (EMA) is a weighted MA that applies more weight to the recent prices. 15 minutes 50 moving average. The slope of moving average indicates the direction of market trend. Moving averages act as on uptrends and resistance on the downwards. Moving averages 18 50 100 200 18 moving average is above 50 and 50 is above is 100 and 100 is above 200 and this is clears uptrend. It is bouncing 18 moving averages

Moving average crossover indicators indicate change is trend 6EM

Resistance zones. When a stock fails to break resistance, it creates bearish momentum (possible short opportunity) Avoid buying stocks when they are near resistance line.