FOREX CLUB, LLC LEARNING CENTER FOREX TRADING SEMINAR FOR BEGINNERS Instructor:Lin（Raymond）Zheng – Forex Specialist, Forex Club, LLC
Disclaimer• The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Before deciding to trade forex, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that Forex Club, LLC is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. Forex Club, LLC is registered with the United States Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA #0358265).
About FOREX CLUB, LLC• Founded in 2005.• A subsidiary of Forex Club Holdings, LTD.• Registered with the United States Commodity Futures Trading Commission(CFTC) and is a member of the National Futures Association (NFA #0358265).• The industrys first and only Forex broker providing zero spreads and receivecommission refunds on unprofitable trades*.• In 2010, Recognized as the fastest growing Forex broker in the U.S. by Inc.500.• In 2009, Recognized as “Best Broker for Beginners” by Forex-Ratings.com.* Exclusively on ExpressFX and Commission returns available for clients with deposits of $500 or more.
FOREX AdvantagesLow transact 50:1 6 Major Pairs -ion costs Leverage Great Unrestricted 24 Hour Liquidity short-selling Trading* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Trading Time Zurich Chicago London Frankfurt New York Paris Tokyo Hong Kong SingaporeWELLINGTON 10:00pm/06:00amSYDNEY 10:00pm/07:00am SydneyTOKYO 12:00am/10:00amHONG KONG 01:00am/10:00am WellingtonSINGAPORE 01:00am/10:00amFRANKFURT 07:00am/04:00pmLONDON 08:00am/05:00pmNEW YORK 01:00pm/10:00pmCHICAGO 02:00pm/11:00pm
FOREX Participants • US Federal ReserveCentral banks • European Central Bank • Reserve Bank of Australia, etc. • UBS Investment • Barclays CapitalBanking Firms • Goldman Sachs, etc. • Hedge FundsRetail Market • Mutual Funds • Private investors, etc.
The MajorsCurrency Symbol Currency Pair Nickname EUR/USD Euro vs. U.S. Dollar Euro GBP/USD Pound vs. U.S. Dollar Pound USD/JPY U.S. Dollar vs. Yen Yen AUD/USD Australian Dollar vs. Aussie U.S. Dollar USD/CHF U.S. Dollar vs. Swiss Swissie Franc USD/CAD U.S. Dollar vs. Canadian Loonie NZD/USD New Zealand Dollar vs. Kiwi U.S. Dollar
Currency Pair Base Currency Counter Currency ЕUR USD Euro VS. US Dollar EUR/USD: 1.3652Represents 1 Euro Can be exchanged for 1.3652 U.S. dollars
Trading EUR/USDEUR/USD Daily Chart EUR/USD Since 2011
Trading Volume10,000 • 10,000 Euro • 10,000 Euro worth of US DollarsEUR/USD50,000 • 50,000 US Dollars • 50,000 US Dollars worth of YenUSD/JPY
PipsPip is the smallest unit of price change in currency trading EUR/USD: 1.40127 • Pip is the fourth decimal point or 0.0001. USD/JPY: 77.165 • For currency pairs including the Japanese Yen, Pip is the Second decimal point or 0.01.
Currency Prices EUR/USD • Currency Pair: Euro vs. U.S. Dollar • Sell: Represents you can sell Euro while 1.36980 buying U.S. Dollar at 1.36980 . • Buy: Represents you can buy Euro while 1.36985 selling U.S. Dollar at 1.36985 . 0.5 • Spread: the difference between the Sell(1.36985-1.36980) and Buy prices, your transaction cost.
Currency Prices 1.3988 1.3958 EUR / USD 1.3958 1.3928EUR/USD rises EUR/USD Falls The Euro has The Euro has strengthened against weakened against the Dollar the Dollar One Euro is now One Euro is now worth more Dollars worth fewer Dollars
UptrendKnown as a bullish trend. There are more buyers than sellers in themarket, which sends prices higher for an extended period of time. EUR/USD 1 Minute Chart
DowntrendKnown as a bearish trend. There are more sellers in the market thanbuyers, which sends prices lower for an extended period of time. EUR/USD 1 Minute Chart
RangeThis occurs when there is an equal amount of buyers and sellers inthe market, the market has no clear trend up or down for anextended period of time. EUR/USD 1 Hour Chart
CandlesticksKnown as a K Line Chart, this is the most commonly used type ofchart. Candlesticks display the high, low, open, and close price pointsover a specific period of time. Candlestick data points can be used todetermine reversal points and trend reversal patterns. EUR/USD Daily Chart High Close High Open Open Low Close Low
Buying / Going longWhen you buy a currency pair, you expect the base currency tostrengthen against the counter currency and the price to rise. 1.3518 Sell EUR/USD 1 Minute Chart (Trading Ends) Euro U.S. Dollar EUR/USD 1.3425 Buy rises 93 (Trading Starts) pips
Selling / Going shortWhen you sell a currency pair, you expect the base currency toweaken against the counter currency and the price to Fall. 1.3506 Sell (Trading Starts) EUR/USD 1 Minute Chart U.S. Dollar Euro EUR/USD Falls 70 pips 1.3436 Buy (Trading Ends)
Technical Analysis Technical analysis is the study of price changes oncharts, affected by buyers and sellers positioning themselves to predict future market trends. Major economic Traders emotion can data, political History repeats itself, dominate thefactors, position holders especially in the market, they tend to , the relationship financial Investment move in similar between supply and markets, creating directions, creating demand will eventually identifiable price identifiable price be reflected into patterns. trends. the exchange rate.
Fundamental Analysis Fundamental Analysis is the study of macro-economic indicators, political factors which influence currency prices. InternatioInterest Economic Changes in National nal Inflation Political Geopolitic Rate growth commodit economic Indicators Influence al Events Mergers &Decision indicators y prices structure Acquisitio ns
LeverageLeverage refers to the ratio between the size of position one can open and the actual total amount of funds required, also known as margin ratio. Maximum Leverage is: 50:1* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Leverage Deposit $5,000 Trading Amount 50,000 leverage 10:1* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Risk Management Example: EUR/USD Deposit: $5,000 Moving Range: 150 PipsLevera Trading Pip Moving Range Risk ge Amount Value 50:1 250,000 $25 $25 x 150 = $3,750 $3,750 / $5,000 = 75% 25:1 125,000 $12.5 $12.5 x 150 = $1,875 $1,875 / $5,000 = 37.5% 10:1 50,000 $5 $5 x 150 = $750 $750 / $5,000 = 15% 5:1 25,000 $2.5 $2.5 x 150 = $375 $375 / $5,000 = 7.5% 2:1 10,000 $1 $1 x 150 = $150 $150 / $5000 = 3% 1:1 5,000 $0.5 $0.5 x 150 = $75 $75 / $5,000 = 1.5% * Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Example: EUR/USD Deposit: $5,000 Moving Range: 150 Pips Risk management100% 15% 7.50% 3.00% 1.50%80% 37.50% 75%60% Risk40% Remaining Capital20% 0% 50 to 1 25 to 1 10 to 1 5 to 1 2 to 1 1 to 1* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Example: EUR/USD Deposit: $5,000 Moving Range: 300 Pips Risk Management 3.00%100% 15.00% 6.00% 30%80% 75.00%60% Risk 100%40% Remaining Capital20% 0% 50 to 1 25 to 1 10 to 1 5 to 1 2 to 1 1 to 1* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Your Goal: Find A Best Ratio Success Failure The The Risk Of Profitability Loss
Orders Limit: Stop Loss: Enter or exit the Enter or exit the One Cancels Other: market at a better market at a worse A two-legged order: Limitprice than the current price than the current + Stop Loss rate rate Buy at a price below Buy at a price higher The second leg is the current market than the current cancelled if the first price market price leg is executed Develop a trading Sell at a price above Sell at a price lower strategy, without the current market than the current having to watch the price market price market all the time. * You can place pending orders no closer than 10 pips from the current price
Our Trading Platforms ExpressFX - A Trading Platform for the Beginners • Zero spread, Instant commission returns on unprofitable trades* • Built in Trading Wizard, Simple operation ActTrader - For slightly experienced traders • Industry low Spread, Entry orders, Professional charting tools • Provide access for Web-based, iPhone, iPad, Android and Mac computer MetaTrader 4 - worlds most popular Forex platform • Compatible with a large online library of custom indicators and trading tools • Use EAs (Expert Advisors) for automated trading strategies* Commission returns available for clients with deposits of $500 or more.
Company Advantages • In 2010, Forex Club LLC was recognized as the fastest growing Forex Strong Market broker in the U.S. by Inc. 500 Positions • In 2009, Forex Club LLC was recognized as “Best Broker for Beginners” by Forex-Ratings.com Provide • Autochartistprofessional analy • Trading Central sis tools • Sentiment Index - The Companys own Market Sentiment indicator On- • Training can be accessed online or at our New York City officesite instruction an • Provide one to one guidance to the real account owner d guidanceExcellent Trading • Industry low average spreadenvironment and • Trading Platforms: MT4*, ExpressFX, ActTrader, Rumus and MirrorTrader service • No annual fee, no monthly fees, no account maintenance fee • Forex Club, LLC is registered with the United States Commodity FuturesClient Protection Trading Commission (CFTC) • A member of the National Futures Association (NFA #0358265)
Leverage your Opportunity at www.FXCLUB.com/cn Chinese Toll-Free: 1(800)541-4302 Thank you for choosing Forex Club, LLC!