Forex Trading Academy
Trading financial markets has never been easier as online trading attracts more and more people to the most fascinated market: the forex market. Everyone dreams of financial independence and the freedom to trade from home, not to mention being your own boss and making your own schedule.
Are these things real? Can they be achieved? If yes, how to do that?
The answers to all those three questions can be found here on our Forex Trading Academy as understanding the concepts explained here is a must for every trader.
Forex trading is being advertised as an easy thing to do, and in a way, it is: all you have to do is choose between two directions, up or down, and then take a position in the market. In reality, there are many factors that influence trading and being a successful trader is a result of a clear understanding of how markets function, what makes them move, market psychology, technical and fundamental analysis, plus many other things.
The purpose of this trading academy is to provide the wannabe trader with all the necessary tools to succeed in the forex markets, and to offer experienced traders new trading tools for the everyday experience in these markets.
Basics of Forex Trading
The learning process should always start with basic things to know when it comes to forex trading, like what is a currency pair, how are currency pairs divided, the notion of a pip, why do we need a broker, what trading platforms to be used, and, in general, everything there is to know to start forex trading from scratch.
Moving forward, it is mandatory to know what really moves a market, and this is becoming clear by the time the difference between fundamental and technical analysis is understood. While technical analysis allows one to forecast prices on the right side of a chart based on interpreting past patterns and price formations, fundamental analysis represents the actual reason markets are moving.
A forex trader should take advantage of all the trading tools available and technical indicators are being widely used. As you probably guessed by know, this is technical analysis, and indicators are being divided into two main categories: trend indicators and oscillators.
The most important trend indicators and oscillators are covered here, starting with the main interpretation and ending with how to actually trade them in order to profit from the moves in the forex market.
There are many ways to trade and different trading theories out there that in time proved to work and it is important to know that every trader has a different trading style and expectations. Therefore, some traders find a specific theory to work best for their personalities and expectations, while other traders find comfort in another approach. To give you an example, there are traders that trade only based on technical indicators, while others are using concrete and exact levels for entering and exiting markets.
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Forex Trading Theories
Here we listed the most important trading theories that exist and are mandatory for any serious trader to know, starting with a fascinating one, Elliott Waves theory.
Under this theory, not only that one can know in advance where the market is supposed to go, but also these moves can be timed. It is one to know where a market is going but if you are able to put a time element on that move, then the holy grail in trading is achieved: price and time.
Elliott Waves is the only theory that allows such a thing, and for this reason, it is so well represented in this trading academy. The theory is so wonderful in its simplicity that exactly this is making it so complex. It is a saying that every trader has a different Elliott count, but this is true only for the unprepared ones, as applied correctly, Elliott theory always works.
Besides Elliott, trading theories like the ones of W.H. Gann and Gartley are also popular, and here you’ll find out the basics of those theories as well as some pros and cons.
Any forex trading academy should explain what a pitchfork is and how to trade markets with it, and this one is no different. Andrew’s Pitchfork is a vital tool to successful trading, and our approach here starts with setting the pivots, the most important thing, and continues with the all-important median line and Schiff line.
While everything discussed above is part of the Western approach to technical analysis, in recent years the Japanese approach became more and more interesting as traders discovered new and interesting ways to interpret market moves based on candlestick formations.
Japanese candlestick techniques are a must for a trader and the most important continuation and reversal patterns are represented here.
When it comes to technical analysis, patterns are very well represented in the sense that one can forecast a price based on them. The most important trading patterns are being approached here, not only from a theoretical point of view but from a practical one as well, with clear entry and exit strategy to profit from forex trading.
How about fundamental analysis? What are the most important things to consider?
This academy explains the economic calendar, what events to watch and how to interpret them, as well as why currency pairs are in fact mirroring an economy. Economic events as being presented in the economic calendar are in fact depending on one and one thing only: what the central bank will do when it meets to decide on interest rates. This is why interest rates are key to fundamental analysis and more details are to be found on our designated articles here.
Risk Management and Market Psychology
Perhaps the most important part of this trading academy is dedicated to money management and market psychology.
All of the technical and fundamental aspects, while mandatory when trading forex markets, are of no good if proper and solid money management rules are not followed strictly. Discipline, patience, and the gut to take a trade or to close one are key and few people master them.
After all, trading is risk management above all: how to manage the risk of losing a trading account before making a profit. These steps, in this order, are all that matter when trading.
Market psychology has a very strong correlation with money management as they go hand in hand. Markets are not necessarily moving up in a bullish environment, or down in a bearish one, as well as it is not mandatory for a currency to move up on a positive economic release or down after a negative one.
A strong understanding of market psychology will make a huge difference between a successful trader and one that still struggles with trading.
This academy has everything you need to know when it comes to forex trading and we like to think we’ve put together here a comprehensive course for all traders.
Below is a detailed list of what is being covered, but above all, one should keep in mind that these are not only theoretical aspects. The aim here is to provide not only the concepts but to show how to actually take a trade, starting with entering a market and ending with where to place stop losses and take profits.
All in all, understanding these concepts and how they work will prepare a trader for one of the most interesting journeys: to profit from forex trading on the way to financial independence.
Basics of Forex Trading
- What is Forex Trading?
- What is a Currency Pair?
- Majors and Crosses – How to Trade Them?
- Leverage and Margin Requirements
- Forex Trading Platforms – Metatrader 4 and 5
- What is a Margin Call?
- Setting Up a Chart in Metatrader 4
- Forex Trading Accounts and the Value of a Pip
- The Importance of Swap and Spreads
- How to Enter/Exit a Trade
- How Do I Make a Profit from Forex Trading?
- Forex Market Terminology
- Profit from Forex Trading Using Different Trading Styles
- How to Set Up an Expert Advisor
- HFT (High-Frequency Trading) in Forex Markets
- Trading Sessions and Their Importance
- Correlations Between Different Currency Pairs and Other Markets
Types of Analysis
Trade Forex Using Indicators
- Moving Averages – Find Support and Resistance Areas
- How to Use Parabolic SAR to Buy Dips or Sell Spikes
- Bollinger Bands – Profit from One of the Best Trend Indicators
- Trading with the Cloud – Use Ichimoku Cloud to Spot Reversals
- Trading Forex with the Kijun/Tenkan Cross
- Three Ways to Trade Forex with CCI (Commodity Channel Index)
- Overbought and Oversold Areas in Ranging Markets
- Profit from DeMarker Divergences
- How to Trade with RSI (Relative Strength Index)
- Using Stochastics to Trade Forex Markets
- Finding Entry and Exit Levels with Momentum Oscillator
- Trade Forex with Volumes Indicator
- Bill Williams – How to Use Williams Indicators When Trading Forex
Other Technical Things to Consider
- Classical Support and Resistance Levels in Forex Trading
- Dynamic Support and Resistance Levels in Forex Trading
- Use Market Geometry to Profit from Forex
- Trade Forex with Fibonacci Retracement Tool
- Use the Head and Shoulders Pattern to Spot Reversals
- Two Ways to Use Gaps When Trading Forex Markets
- A Guide for Trading Rising and Falling Wedges
- How to Draw a Trendline
- Pennants as Continuation Patterns
- Price and Time – The Holy Grail in Trading
Fundamental News That Influences Forex Markets
- Explaining the Economic Calendar
- Central Banks Meetings – FOMC, ECB, BOE, BOJ, RBA, RBNZ, SNB
- Interest Rates and CPI (Consumer Price Index)
- The Importance of NFP
- Why PMI’s (Purchasing Managers Index) Matter in Forex Trading PMI
- Other Economic Releases to Watch
- Special Events During a Calendar Year
More Things to Know When Trading
- The Importance of Press Conferences
- Forex Trading When Central Bankers Hold Speeches
- Risk-off vs. Risk-on Trading
- Macroeconomics in Forex Trading
- Geopolitical Risks That Influence Markets
- Different Trading Styles
Forex Trading Theories
Elliott Waves Theory
- What is Elliott Waves Theory?
- Defining Impulsive Waves
- Defining Corrective Waves
- Use the Fibonacci Extension Tool in Elliott Waves Theory
- Different Fibonacci Levels Important When Trading with Elliott
- Trading Different Types of Extended Waves
- Placing Pending Orders When Trading with Elliott
- How to Trade 2nd and 4th Waves
- The All-Important B Wave Retracement
- What Are Corrective Waves?
- Trade Forex with Simple Corrections
- Complex Corrections in Elliott Waves Theory
- Types of Flat Patterns
- Types of Zigzag Patterns
- Contracting and Expanding Triangles
- How to Use the Apex of an Expanding Triangle
- Trading with the Apex of a Contracting Triangle
- Types of Contracting Triangles
- Special Types of Triangles
- Types of Expanding Triangles
- Trading with X Waves
- The Concept of a Running Correction
- Double Three Running Patterns
- Triple Three Running Patterns
- Where to Find Running Corrections
- Double and Triple Running Flat – The Most Powerful Corrective Pattern
- The Waterfall Effect – Using Fibonacci to Find Targets
- Patterns with Failures – What Are They and Their Implications
- Overlapping Between Corrective Waves
- How to Use the Golden Ratio in Complex Corrections
- Introducing Double and Triple Flats
- Trade with Double and Triple Combinations
- Trading Forex with Double and Triple Zigzags
- Channeling with Zigzags
- Trading Forex with Double and Triple Combinations
- The Difference Between Double and Triple Threes in Trading with Elliott
- How to Trade Double Extended Impulsive Waves
- Generalities of 1st Wave Extensions
- Trading 3rd Wave Extensions
- Trading 5th Wave Extensions
- How to Trade with Gartley
- How to Trade with Gann
- Introducing Andrew’s Pitchfork in Forex Trading
- Trading with the Schiff line
Japanese Candlestick Techniques
- Spot Reversal Patterns with a Hammer and a Hanging Man
- Trading Multiple Types of Doji Candles
- Bullish or Bearish Setups Using Stars
- Explaining the Difference Between Engulfing and Piercing
- Trade with Risk-Reward Ratios
- Hedging – What it is and How to Use Different Types of Hedging
- Multiple Timeframes Analysis in a Hedged Account
Tools and Resources
- Use Finance Twitter to Stay Up-To-Date with Latest Financial News/Events
- Financial Websites to Consider When Trading Forex
- The Importance of Understanding Market Psychology
- Is Contrarian Trading Working?
- Let Your Profits Run/Cut Your Losses
A clear understanding of the concepts covered here gives you a glimpse into what forex trading is and how to profit from currency market moves. We hope that these educational articles help you be a better trader and offer everything a trader needs to know both from a fundamental as well as from a technical point of view.