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Forex Trading for Beginners - Forex Explained in SIMPLE Terms

Forex Trading for Beginners

"My Forex basics course will give you a strong trading foundation.

The content is clear and straightforward.

It is entirely FREE with NO STRINGS ATTACHED!

Welcome to Forex for dummies...!"

You have come to the right place if you are new to Forex trading. This free online course will teach you the basics of Forex trading. It covers the basics of Forex in full. It even includes a free Forex PDF!

Forex trading can become a super career with fantastic advantages, such as earning a significant online income and working from home. In the beginning, though, Forex trading can be a money-making hobby.

The basics course is available below. Scroll down to get started! All course videos are from my YouTube channel. A Forex basics PDF is available for download at the end of the course. 

Have you got questions? Please email me at samuel@love-the-pips.com

FOREX EXPLAINED FOR DUMMIES - What is Forex trading?

So, what is Forex trading? Forex is the abbreviation of foreign exchange - the market where global currencies are bought and sold. The Forex market provides real-time prices of currencies. It offers the public - you and I - an opportunity to buy and sell currencies.

 

The value (or price) of any currency fluctuates daily. This creates money-making opportunities. Someone who trades Forex aims to buy currency at a specified price and then sell currency for a higher price. This results in making a profit. 

The Forex market is open 24 hours a day, 5 days a week (Sunday 2200 GMT - Friday 2200 GMT / Sunday 1700 EST - Friday 1700 EST).

In the Forex market, currencies are abbreviated to three-letter acronyms, such as EUR for the Euro and USD for the US Dollar.

 

The most popular currencies bought and sold (traded) are:

 

AUD - The Australian Doller

CAD - The Canadian Dollar

CHF - The Swiss Franc

EUR - The Euro

GBP - The British Pound

JPY - The Japanese Yen

USD - The US Dollar

 

Currencies are traded in pairs, called Forex pairs. The most traded Forex pairs are:

AUDUSD - The Australian Doller against the US Dollar

EURUSD - The Euro against the US Dollar

GBPUSD - The British Pound against the US Dollar

USDCAD - The US Dollar against the Canadian Dollar

USDCHF - The US Dollar against the Swiss Franc

USDJPY - The US Dollar against the Japanese Yen

Key Forex Terminology

Forex - the foreign exchange market
Market - a "place" where things are bought and sold
Currency Pair - the combination of 2 currencies to create a Forex pair

The simple video below will explain Forex and key Forex terminology in more detail.

Forex Basics Part 1

FOREX EXPLAINED FOR DUMMIES - Can you make money trading Forex?

Currency value (or price) fluctuates daily. Today, the British Pound (GBP) could be worth 1.2589 US Dollars (USD). Tomorrow, the GBP could be worth 1.2711 USD. Forex traders seek to profit from these price movements. They do this by buying currency and then selling currency for a higher price in the future. 

Let's go back to currency pairs. The first currency in a currency pair is known as the base currency. The second currency is called the secondary currency. The pair is priced by comparing 1 unit of the base currency against the secondary currency. Let's look at a couple of examples.

Forex Pair Example 1 - GBPUSD

The British Pound is the base; The US Dollar is the secondary

If this pair is trading at 1.4750, then for 1 British Pound, you would receive 1.4750 US Dollars


Forex Pair Example 2 - USDJPY

The US Dollar is the base; the Japanese Yen is the secondary

If this pair is trading at 111.50, then for 1 US Dollar, you would receive 111.50 Japanese Yen

 

Learning how to trade Forex profitably can be life-changing. A Forex trading career offers uncapped earning potential. It also offers the freedom to be your own boss and to work from home. For many, becoming a successful Forex trader is a dream career! Forex can become a fun money-making hobby for those with demanding commitments due to family, employment, or study.

Key Forex Terminology

Base currency - the first currency in a currency pair. Usually valued at 1
Secondary currency - the second currency in a pair. Usually shown as the exchange rate for 1 of the base currency.

The video below will provide more simple Forex examples and explain Forex trading further.

Forex basics course part 2

FOREX EXPLAINED FOR DUMMIES - How do you trade Forex?

The Forex market is ONLY accessible by using a Forex broker. Without a Forex broker, you cannot trade Forex. Forex traders use Forex brokers as their platform to access the market. They do this to buy and sell currencies. 

Why do Forex brokers offer access to the market? Money. They want to make money. Forex brokers make money by charging you a small commission on each trade you take. They also charge other fees.

Brokers allow traders to go long and short currency pairs. Profit is made as pair prices move up or down.

 

A trader that goes long a currency pair is buying a currency pair. This means they are buying the base currency and selling the secondary currency. They do this in the hope of selling later at a higher price.

 

A trader that goes short a currency pair is selling a currency pair in the hope of buying back later at a lower price. This means they are selling the base currency and buying the secondary currency in that Forex pair.

 

Traders often use historical price data. They analyse the data to help them in their trading decisions. Historical price data is displayed on a chart called a price chart. Studying these price charts is referred to as technical analysis.

 

Traders also analyse economic news and data. This is called fundamental analysis.

 

The purpose of studying price charts (technical analysis) and economic news (fundamental analysis) is to help predict where future currency prices may be. One of the keys to profitable Forex trading is correctly predicting a currency's future price.

My free Forex courses and other content will show you how to use technical and fundamental analysis.

Key Forex Terminology

Forex Broker - a business that offers access to the Forex market. Traders need brokers to trade the markets

Going long - buying a currency pair. This is called being bullish

Going short - selling a currency pair. This is called being bearish
Technical analysis - the analysis of historical price data

Fundamental analysis - the analysis of economic data

The video below will teach you more.

Forex basics course part 3

Download my FREE Forex for Beginners PDF...

Now you know the basics of Forex, move on to Step 2 and learn the basics of technical analysis

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