3. By : Hafizzat
HAFIZZAT’S STORY
• Hafizzat Rusli, 24 delved into the world of forex trading even before he
reached the age of 17.
• He saved all his earnings as a waiter to start trading. Within less than a
month he grew his relatively small capital of USD500 into more than
USD20k.
• Hafizzat set about training and educating himself with a vengeance. He
learnt from the best he could find but more importantly he acquired and
honed his own trading skills and strategies.
• FXPrimus, one of the industry’s fastest growing brokers, approached
Hafizzat and appointed him as their Super Introducing Broker which is
quite a feat for a boy of 19 with just 2 years of experience in forex trading.
Hafizzat remains the youngest Super IB in the world in this elite group of
only 30 individuals.
• In July 2011 Hafizzat was ranked 5th in FXPrimus Top 20 Traders Global
Contest having made a percentage gains of 81.7% in 2 days. The student
had by now become a master.
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6. By : Hafizzat
What is Forex?
• FOREX (Foreign Exchange) or more familiar with currency transactions
• Forex means buying or selling a currency against another currency with a
view to profit
• The currency is a kind of trade / transaction trade in the currency of a
country's national currency involving other major money markets in the
world for 24 hours continuously
• The foreign exchange market, which is usually known as “forex” or “FX,” is
the largest financial market in the world. Compared to the measly $22.4
billion a day volume of the New York Stock Exchange, the foreign
exchange market looks absolutely ginormous with its $5 TRILLION
a day trade volume.
7. By : Hafizzat
What is Forex?
The largest stock market in
the world, the New York
Stock Exchange (NYSE),
trades a volume of about
$22.4 billion each day. If we
used a monster to represent
NYSE, it would look like this…
8. By : Hafizzat
What is Forex?
So the NYSE sounds big, it’s
loud and likes to make a lot
of noise.
But if you actually compare it
to the foreign exchange
market, it would look like
this…
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10. By : Hafizzat
Why trade Forex?
ADVANTAGES OF FOREX
There are many benefits and advantages of trading forex. Here are just a
few reasons why so many people are choosing this market:
• No commissions
• No middlemen
• No fixed lot size
• Low transaction costs
• A 24-hour market
• No one can corner the market
• Leverage
• High Liquidity
• Low Barriers to Entry
• Free Stuff Everywhere!
11. By : Hafizzat
Why trade Forex?
No commissions
No clearing fees, no exchange fees, no government fees, no brokerage fees.
No middlemen
Spot currency trading eliminates the middlemen and allows you to trade
directly with the market responsible for the pricing on a particular currency
pair.
No fixed lot size
In the futures markets, lot or contract sizes are determined by the exchanges.
A standard-size contract for silver futures is 5,000 ounces. In spot forex, you
determine your own lot, or position size.
Low transaction costs
The retail transaction cost (the bid/ask spread) is typically less than 0.1%
under normal market conditions. At larger dealers, the spread could be as
low as 0.07%. Of course this depends on your leverage and all will be
explained later.
12. By : Hafizzat
Why trade Forex?
A 24-hour market
There is no waiting for the opening bell. From the Monday morning opening
in Australia to the afternoon close in New York, the forex market never sleeps.
This is awesome for those who want to trade on a part-time basis, because
you can choose when you want to trade: morning, noon, night, during
breakfast, or in your sleep.
No one can corner the market
The foreign exchange market is so huge and has so many participants that
no single entity can control the market price for an extended period of time.
Leverage
In forex trading, a small deposit can control a much larger total contract
value. Leverage gives the trader the ability to make nice profits, and at the
same time keep risk capital to a minimum.
13. By : Hafizzat
Why trade Forex?
High Liquidity
Because the forex market is so enormous, it is also extremely liquid. This
means that under normal market conditions, with a click of a mouse you can
instantaneously buy and sell at will as there will usually be someone in the
market willing to take the other side of your trade. You are never “stuck” in a
trade. You can even set your online trading platform to automatically close
your position once your desired profit level (a limit order) has been reached,
and/or close a trade if a trade is going against you (a stop loss order).
Low Barriers to Entry
You would think that getting started as a currency trader would cost a ton of
money. The fact is, when compared to trading stocks, options or futures, it
doesn’t. Online forex brokers offer “mini” and “micro” trading accounts,
some with a minimum account deposit of $25.
We’re not saying you should open an account with the bare minimum, but it
does make forex trading much more accessible to the average individual
who doesn’t have a lot of start-up trading capital.
14. By : Hafizzat
Why trade Forex?
Free Stuff Everywhere!
Most online forex brokers offer “demo” accounts to practice trading and
build your skills, along with real-time forex news and charting services.
AND GUESS WHAT?! THEY’RE ALL FREE!
Demo accounts are very valuable resources for those who are “financially
hampered” and would like to hone their trading skills with “play money”
before opening a live trading account and risking real money.
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16. By : Hafizzat
Who trade Forex?
• the rulers of the world
• the world's major banks
• international class business
• hedge fund
• currency speculators
• individuals
THE PEOPLE WHO TRADE IN FOREX MARKET ARE:
Thus the number of players in the Forex market is causing the velocity of
money becomes very fast.
Transactions happens more than 1.9 trillion U.S. dollars every day and that
means money are transferred from one hand to another in just a few
seconds.
17. By : Hafizzat
Who trade Forex?
Forex Market Hierarchy
Major Banks
Electronic Brokering Services (EBS) / Reuters
Dealing 3000-spot Matching
Medium-sized and small banks
Retail Market
Makers
Retail Traders
Retail ECNs
Hedge funds and
commercial
companies
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19. By : Hafizzat
When can you trade Forex?
Now that you know whatforex is, whyyou should trade it,
and whomakes up the forex market, it’s about time you
learned whenyou can trade.
Yes, it is true that the forex market is open 24 hours a day, but that
doesn’t mean it’s always active the whole day.
You can make money trading when the market moves up, and you can
even make money when the market moves down.
BUT you will have a very difficult time trying to make money when the
market doesn’t move at all.
20. By : Hafizzat
When can you trade Forex?
THE MAIN TRADING SESSIONS
Despite the Forex market is open 24 hours a day it doesn’t mean that
the market is always active the whole day. FX traders can make money
trading when the market moves up, and they can even earn money
when the market moves down. However, it is extremely difficult to make
any money when the market does not move at all.
The Forex maket can be divided into four major trading sessions that are:
• Sydney Session
• Tokyo Session
• London Session
• New York Session
21. By : Hafizzat
What is Forex?
WORLD POPULAR CURRENCY
• USD "U.S. Dollars" or "buck" (the currency of the USA)
• EUR "Euro" (European currency)
• GBP "Sterling" or "Cable" (UK currency)
• AUD "Aussie Dollar" (Australian currency)
• NZD "Kiwi" (the currency of New Zealand)
• JPY "Yen" (Japanese currency)
• CHF "Swissy" (Swiss currency)
• CAD "Dollar Canada" (Canadian currency)
22. By : Hafizzat
What is Forex?
THE CURRENCY PAIR
• Direct currency: (EUR/USD, GBP/USD and other currencies in which the
normal USD written at the back)
• Indirect currency: (USD/JPY, USD/CHF and other currencies in which the
normal USD written at the front)
• Currency cross rate: (GBP/JPY, EUR/CHF currency which is not compared
to the USD
*base and counter
Example: GBP / USD
That means GBP is the base currency and the USD is the counter
currency
23. By : Hafizzat
When to trade Forex?
Let’s take a look at the average pip movement of the major currency pairs
during each trading session.
From the table, you will see that the European session normally provides the
most movement.
24. By : Hafizzat
When to trade Forex?
TOKYO SESSION = ASIAN SESSION
• Tokyo session is often referred to as the Asian session because Tokyo is the
financial capital of Asia and with its population of 36 million people it is
also the largest metropolitan area in the world.
• Japan is also the third largest Forex trading center in the world and the
Japanese yen is the third most traded currency partaking in about 16,5 %
of all Forex transactions.
• Therefore we can say that the Asian session opens at 11:00 PM GMT and
overall, about 21 % of all Forex Transactions take place during this session.
25. By : Hafizzat
When to trade Forex?
Below is a table of the Asian session pip ranges of the major currency pairs.
These pip values were calculated using averages of past data from the month of May 2012.
Take note that these are NOT ABSOLUTE VALUES and can vary depending on liquidity and
other market conditions. Also, the session range for EUR/CHF has not been included since
the Swiss franc has been pegged to the euro at 1.2000 during the period.
26. By : Hafizzat
When to trade Forex?
KEY CHARACTERISTICS OF THE ASIAN SESSION:
• Despite the most Forex transactions are made in Japan, tons of Forex transactions
are made in other financial hot spots like Hong Kong, Singapore and Sydney.
• The main market participants during the Asian session are commercial companies
(exporters) and central banks. This is due to the fact that Japan's economy is heavily
export dependent and, with China also being a major trade player, there are a lot
of transactions taking place on a daily basis.
• Liquidity can sometimes be quite thin. During these times most pairs may stay within
a range providing opportunities for short day trades or potential breakout trades
later during the day.
• It is more likely to see stronger moves among the Asia Pacific currency pairs such as
AUD/USD and NZD/USD as opposed to non-Asia pacific pairs like GBP/USD.
• Most of the action takes place early in the session, when more economic data is
released. Moves in the Tokyo session may set the tone for the rest of the day. Traders
in latter sessions often look at what happened during the Tokyo session to help
organize and evaluate what strategies to take in other sessions.
• Often, if there have been big moves during the preceding New York session,
consolidation can be seen during the Asian session.
27. By : Hafizzat
When to trade Forex?
WHICH PAIRS ARE COMMONLY TRADED DURING THE ASIAN SESSION?
• Pairs that include JPY
• Pairs that include AUD
• Pairs that include NZD
This is simply because the Tokyo session is on when news from Australia, New
Zealand and Japan come out presenting a good opportunity to trade.
Usually, there is more movement in JPY pairs as a lot of yen is changed as
Japanese companies are conducting business.
Furthermore, since China is an economic super power, the news from China
tends to create volatile moves.
Because Australia and Japan are relying heavily on Chinese demand, it is
possible to see greater movements in AUD and JPY pairs when the Chinese
data come in.
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29. By : Hafizzat
How to trade Forex?
1UNDERSTAND BASIC FOREX TERMINOLOGY
• Base currency is the type of currency you are spending, or getting rid
of. Quote currency is the currency that you are purchasing. In forex
trading, you sell 1 type of currency to purchase another type.
• The exchange rate tells you how much you have to spend in quote
currency to purchase base currency. For example, if you want to
purchase some U.S. dollars using British pounds, you may see an
exchange rate that looks like this: GBP/USD=1.589. This rate means that
you'll spend 1.589 dollars for 1 British pound.
• A long position means that you want to buy the base currency and sell
the quote currency. In our example above, you would want to sell U.S.
dollars to purchase British pounds.
30. By : Hafizzat
How to trade Forex?
• A short position means that you want to buy quote currency and sell
base currency. In other words, you would spend sell British pounds and
purchase U.S. dollars.
• The bid price is the price at which your broker is willing to buy base
currency in exchange for quote currency. The bid is the best price at
which you are willing to sell your quote currency on the market
• The ask price, or the offer price, is the price at which your broker will sell
base currency in exchange for quote currency. The ask price is the best
available price at which you are willing to buy from the market
• A spread is the difference between the bid price and the ask price
31. By : Hafizzat
How to trade Forex?
2DECIDE WHAT CURRENCY YOU WANT TO BUY AND SELL
• Make predictions about the economy. If you believe that the U.S. economy
will continue to weaken, which is bad for the U.S. dollar, then you probably
want to sell dollars in exchange for a currency from a country where the
economy is strong.
• Look at a country's trading position. If a country has many goods that are in
demand, then the country will likely export many goods to make money. This
trading advantage will boost the country's economy, thus boosting the value
of its currency.
• Consider politics. If a country is having an election, then the country's
currency will appreciate if the winner of the election has a fiscally responsible
agenda. Also, if the government of a country loosens regulations for
economic growth, the currency is likely to increase in value.
• Read economic reports. Reports on a country's GDP, for instance, or reports
about other economic factors like employment and inflation, will have an
effect on the value of the country's currency.
32. By : Hafizzat
How to trade Forex?
3Read a forex quote
• You'll see 2 numbers on a forex quote: the bid price on the left and the
ask price on the right.
4Learn how to calculate profits
• A pip measures the change in value between 2 currencies. Usually, 1 pip
equals 0.0001 of a change in value. For example, if your EUR/USD trade
moves from 1.546 to 1.547, your currency value has increased by 1 pip.
• Multiply the number of pips that your account has changed by the
exchange rate. This calculation will tell you how much your account has
increased or decreased in value
33. By : Hafizzat
Philisophy of
Supertraderx Academy
Emotional Control1
Make pips2
Keep pips3
Repeat4
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35. By : Hafizzat
Traders
Fundemental
analisis
Much depends on
the news. Lack of
precision and
something
unexpected often
occurs
Type of
trading
Technical
Analisis
Depending on the
technique used.
Usually 70% to 80%
41. By : Hafizzat
Finance Division
Multiple Entry/Multiple Exits??
How long are you willing to buy??
What is the risk / reward parameters?
When to take profit?
CLOSE
Money
Management
Division
42. By : Hafizzat
Psychology Division
Use the willing to lose money
Get to know yourself
Starting with a little amount
Do not over confident
Take a break after each trade
Psychology
division
45. By : Hafizzat
Types of Analysis
It’s kind of like standing on a three-
legged stool – if one of the legs is weak,
the stool will break under your weight
and you’ll fall flat on your face.
The same holds true in trading. If your
analysis on any of the three types of
trading is weak and you ignore it, there’s
a good chance that it will cause you to
lose out on your trade!
47. By : Hafizzat
Types of Charts
1. Line Charts
A simple line chart draws a line from one closing price to the next closing price.
When strung together with a line, we can see the general price movement of a
currency pair over a period of time.
Here is an example of a line chart for EUR/USD:
48. By : Hafizzat
Types of Charts
2. Bar Charts
A bar chart is a little more complex. It shows the opening and closing
prices, as well as the highs and lows. The bottom of the vertical bar
indicates the lowest traded price for that time period, while the top of the
bar indicates the highest price paid.
The vertical bar itself indicates the currency pair’s trading range as a
whole.
The horizontal hash on the left side of the bar is the opening price, and
the right-side horizontal hash is the closing price.
49. By : Hafizzat
Types of Charts
*Take note, you will see the word “bar” in reference to a single piece of data on a
chart. A bar is simply one segment of time, whether it is one day, one week, or one
hour. When you see the word ‘bar’ going forward, be sure to understand what time
frame it is referencing.
Here is an example of a line chart for EUR/USD:
50. By : Hafizzat
Types of Charts
Bar charts are also called “OHLC” charts, because they indicate the
Open, the High, the Low, and the Close for that particular currency.
Here’s an example of a price bar:
Open: The little horizontal line on the
left is the opening price
High: The top of the vertical line
defines the highest price of the time
period
Low: The bottom of the vertical line
defines the lowest price of the time
period
Close: The little horizontal line on the
right is the closing price
51. By : Hafizzat
Types of Charts
3. Candlesticks Charts
Candlestick chart show the same information as a bar chart, but in a
prettier, graphic format.
Candlestick bars still indicate the high-to-low range with a vertical line.
However, in candlestick charting, the larger block (or body) in the middle
indicates the range between the opening and closing prices.
Traditionally, if the block in the middle is filled or colored in, then the
currency closed lower than it opened.
52. By : Hafizzat
Types of Charts
In the following example, the
‘filled color’ is red.
For our ‘filled’ blocks, the top
of the block is the opening
price, and the bottom of the
block is the closing price.
If the closing price is higher
than the opening price, then
the block in the middle will be
“green” or hollow or unfilled.
53. By : Hafizzat
Types of Charts
*Take note, you will see the word “bar” in reference to a single piece of data on a
chart. A bar is simply one segment of time, whether it is one day, one week, or one
hour. When you see the word ‘bar’ going forward, be sure to understand what time
frame it is referencing.
Here is an example of a candlestick chart for EUR/USD
54. By : Hafizzat
Types of Charts
The purpose of candlestick charting is strictly to serve as a visual aid, since
the exact same information appears on an OHLC bar chart. The
advantages of candlestick charting are:
• Candlesticks are easy to interpret, and are a good place for beginners
to start figuring out chart analysis.
• Candlesticks are easy to use and candlestick patterns have cool
names such as the shooting star, which helps you to remember what
the pattern means.
• Candlesticks are good at identifying marketing turning points –
reversals from an uptrend to a downtrend or a downtrend to an
uptrend.
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56. By : Hafizzat
Examples of resistance
& support
Look at the diagram above. This zigzag pattern is making its way up (bull
market). When the market moves up and then pulls back, the highest
point reached before it pulled back is now resistance.
As the market continues up again, the lowest point reached before it
started back is now support. In this way resistance and support are
continually formed as the market oscillates over time. The reverse is true
for the downtrend.
66. By : Hafizzat
Japanese candlestick
Candlesticks can be used for any time frame, whether it be one day, one hour, 30-minutes –
whatever you want! Candlesticks are used to describe the price action during the given time
frame.
Candlesticks are formed using the open, high, low, and close of the chosen time period.
• If the close is above the open, then a hollow
candlestick (usually displayed as white) is
drawn.
• If the close is below the open, then a filled
candlestick (usually displayed as black) is
drawn.
• The hollow or filled section of the candlestick
is called the “real body” or body.
• The thin lines poking above and below the
body display the high/low range and are
called shadows.
• The top of the upper shadow is the “high”.
• The bottom of the lower shadow is the “low”.
