MAIN TITLE

"THE BASIS OF FOREX TRADING"

What is FOREX?

Platform Trading

Differences between FOREX & Stocks

Identify type of currencies

Identify type of trader

World FOREX Trading Session

Market Structure

"HOW TO USE MT4 IN A GLANCE"

How to BUY & SELL

Types of "Pending Order"

What is "Take Profit" & "Stop Loss"

"BASIC PILLAR OF TECHNICAL ANALYSIS"

The "Basic Of Advance" to trade like John Legend

THE BASIS OF
FOREX TRADING
 WHAT IS FOREX ?

FOREX Trading is shortform for "Foreign Exchange" trading, in other words

foreign currency exchange. It is also known as Spot Market

All buying and selling transactions and currency exchange are done "online"
through a platform that already available in the market. For "Retail Traders",
all buying and selling transactions are done by yourself and not by any
other party.

TRADING & BROKER PLATFORM

l!IMetaTrader4

Platform: Meta Trader 4

(Usual Platform "Retail Trader"
 DIFFERENCES BETWEEN FOREX & STOCKS

IDENTIFY TYPE OF CURRENCIES

Currency is divided into 2 which are MAJOR and MINOR.
Major Currency is the most frequently traded currencies which are
USD, EUR, GBP, CHF, JPY, AUD & CAD. Minor is a currency other than
SYMBOLS CURRENCY the Major currency.

Currency pair is divided into 2 types, it is Major Pair and Cross

Pair.

Major pair is a pairing of any currency with USD. The 4 mainmajor

pairs are EUR/USD, GBP/USD, USD/JPY and USD/CHF.

Cross pairs are all types of currency

pairs that are not pair with USD.
For example EUR/JPY, EUR/CHF,
GBP/JPY, EUR/GBP and others.
 IDENTIFY TYPE OF TRADERS

1) Scalper Teader

- Using scalping techniques, which means taking a small profit

- Usually less than 10 pips per trade

- Scalper often trade more than 10 times in a day

- Gain a lot of profit when opening many positions

- Collect a small amount of pips for each position

2) Day Trader

- Open position not more than 24 hours

3) Swing Trader

- Position open more than 24 hours. (2 days and above)

- Known as mid-term & long-term trader

- They prefer to trade according to the direction of the trend, especially the big trend
(major trend on the 4 hour or daily timeframe and so on)

- Traders will be charged daily interest (swap fee) when their positions are
left/open for more than 24 hours
 WORLD FOREX TRADING SESSION

Price Movement TIPS in each session above:

- Buy currency at the lowest price

- Sell currency at the highest price
- Each price that goes up and down will move in the form of a wave
- Don't chase the market and control your emotions
- Follow the trend and mind your Money Management
 MARKET STRUCTURE

R a n g e (Sideways)

EH EH

EL

How Do Trend Reversals Happen?

- Mandatory Break previous HH to make an increase
- Mandatory Break previous HL to go down
CHART PATTERN (BONUS)
 HOW TO BUY & SELL (INSTANT)
BUY

1. Click Trade 2. Choose "Market Execution" 3. Determine your lot based on

your equity

4. Click Buy by Market 5. Notification buy has succesful

SELL

1. Click Trade 2. Choose "Market Execution" 3. Determine your lot based on

your equity

4. Click Sell by Market 5. Notification Sell has succesful

 TYPES OF PENDING ORDER

There are few types of Pending Order or known as "PO"

1. Buy Limit and Sell Limit

- Buy Limit can only be placed below the current price
- Sell Limit can only be placed above the current price

2. Buy Stop and Sel l S top

- Buy Stop can only be placed above the current price
- Sell Stop can only be placed below the current price
WHAT IS "TAKE PROFIT" & "STOP LOSS"

" Take Profit" is also known as TP

- TP is placed at the price where we want to take profit
- When the price goes and hit the TP, the order will be automatically
closed

Stop Loss" is known as SL

- SL is placed at a price where we want to minimize losses when the price moves against our
threshold
- Just like TP, the order will be closed automatically when the price hit the SL that has been set

COUNT PIPS(POINT)
1 0 Points = 1 Pips

1 0 0 Points = 1 0 Pips

1000 Points = 1 0 0 Pips

10000 Points = 1000 Pips

THE BASIC
PILLAR OF TRADING
 "BEARISH" VS " BU LL I S H"

     !"# $

Bearish Candlestick Bullish Candlestick

A bearish candlestick is a candle A bullish candlestick is a candle

that open at a high price and that opens at a low price and
close at a lower price. closes at a high price.

"SUPPORT" "RESISTANCE"

Support (Lowest Level)

- If the price is at the bottom, focus on looking for BUY

- Example: the actual price of the shoes is 500USD but there is a

price discount so it became 100USD. You must take a chance to
buy it, right?

Resistance (Highest level)

- If the price reaches the highest place, focus on looking for SELL

- Example: the price of shoes when you bought them was 100USD but now
the price has gone up to 500USD. So, you must sell and make a profit.
Support And Resistance (Continue...) :
Support and Resistance (S&R) are terms that are often used in investment and
trading. It is very important in helping traders to analyze price movements
technically. S&R is used to determine the price level of a stock whether it has
the potential to continue an upward trend or downward trend.

Support And Resistance Used :

When the support and resistance lines are repeatedly touched but they still
cannot be penetrated, this means that the support level or resistance level of
the trade is very strong.

So it is very useful to determine the Entry Level (Buy) or Exit Level (Sell) to
get the maximum profit possible.

For example, buy when the market has penetrated or a valid breakout
against resistance. While, sell when the market has penetrated or a valid breakout against support.

Apart from that, the nearest Support and Resistance are also very useful to be used as a Stop
Loss, as well as helping to minimize losses.
Support And Resistance (Continue...) :

Support is an area of the price level, where at that level DEMAND is large
enough to hold back the price drop (DEMAND > SUPPLY).

- At this level, the price tends to stop moving downward and most likely will
go upward again

- Simply put, support is a level that will prevent price movement from bearish
(downward)

- Because of that, it is called a floor

- During a correction (Retracement), if the price touches the support, the

price seems to bounce back upward. If this support is penetrated
(Breakout), then the price will fall until the latest support level is formed

- Support become Resistance (S&R)

While Resistance is an area of t​ he price level where at that level, SUPPLY is large enough to stop te
rise of the prices (SUPPLY>DEMAND).
- At this level, the price tends to stop moving up and most likely will go down again

- Simply put, resistance is a level that will resist bullish movement (upward). Because
of that, it is called a ceiling

- If the trade successfully penetrates the resistance level (Breakout), the price will rise
until it forms a new resistance before retracement (correction) occurs again

- Resistance become Support (RBS)

 TRENDLINE

The main use of the Trendline is to see the trend and also the trend changes. The trend line is a straight
line that connects the valley points (bottom) that rise sequentially in the uptrend state, or the peak points
(top) that fall sequentially in the downtrend state. To create a trend line, there should be at least two price
points connected. The more price points that are connected, the more valid and stronger the trend line is
to hold the support or resistance points in the next test. The more valid a trend line is, the more it will be
observed and obeyed by the market participants.
TRENDLINE

Blue line as a prediction for price makes

a 3rd touch before going up
Break high before creating a new high,
we will automatically pull tl from valley
to valley

Example Green Line

TRENDLINE
 TRENDLINE

break low before creating a new low,

we will automatically draw
a trendline from peak to peak

Example Green Line

Blue line as a prediction for price makes a

3rd touch before going down
 SUPPLY & DEMAND
DEMAND = UPWARD = BUY = BASE
SUPPLY = DOWNWARD = SELL = RALLY
 BREAKOUT & PULLBACK
When the price breakout at the place we mark, wait for a pullback for
us to entry. Don't chase the market price.

Wait for the right price.

HINT TO GO UP

EXAMPLE OF
DROP BASE RALLY> BREAKOUT AND PULLBACK
(DEMAND ZONE)

EXAMPLE OF
RALLY BASE RALLY> BREAKOUT AND PULLBACK
(DEMAND ZONE)
CONTINUATION TREND
 BREAKOUT & PULLBACK

EXAMPLE OF
RALLY BASE DROP> BREAKOUT AND PULLBACK
(SUPPLY ZONE)

EXAMPLE OF
DROP BASE DROP> BREAKOUT AND PULLBACK
(SUPPLY ZONE)
CONTINUATION TREND
 BREAKOUT & PULLBACK

CHANGE OF TREND FROM

UPTREND TO DOWNTREND > BREAKOUT
AND PULLBACK

CHANGE OF TREND FROM

DOWNTREND TO UPTREND> BREAKOUT
AND PULLBACK
 MONEY MANAGEMENT
In this trading world the most important thing is "Money Management"
- How to manage your money from loss
- How to control your emotion
In this
- How trading
to enter world
lots suitsthe most
with important
your capital thing is "Money Management", -How to manage your money
from loss. -How to control your emotional -How to enter lots with your capital
Remember that FOREX Trading is also one of the businesses. The safe steps to make this forex trade
as our income are;

1. Target By %

- One of the ways how to control income in the long term is the target% from capital
- For example, our capital is 1000 USD
- Target 1 day around 5%
- 1000x5% = 50 USD per day
- 5 days 250 USD
- Low risk

2. Target By PIPS

- There are also traders who control income in the long term with target by PIP
- 1 week target 500 pip
- If we enter 0.10 x 500 pips = 500 USD
- Low risk

3. Lot Sizing

- Before we entry, we have to know how much capital we have to entry with the right lot
- For example, the 100 USD capital we have
- SL (Stop Loss) 30 PIPS
- Max entry position we can enter is O.10
- If we have to SL around 30 pip = 30 USD loss
- We still have 70 USD in our account balance
- Prevents us from MC (Margin call)
- If we put 0.50 from capital 100 USD, we haven't hit SL 30 PIP yet already MC
- 0.50 x 30 PIP = 150 USD, it;s not fit with our capital

4. Using War Account/ "Willing To Lose"

- High risk, High Return

Top 5 Mistake From Trading

1. No trading plan
2. Giving into emotions
3. Overtrading
4. Lacking patience
5. Risking too much on one setup (Trade)