Presentation performed by Jerry Suppan at the Tokyo PC Club on Thursday, January 6, 2011. He presented on basic concepts of Forex (foreign exchange) and also how to get started in online trading of forex by introducing brokers to trade forex online.

1. Forex Trading
Basics of Forex & Online
Presentation by: Jerry Suppan - Visionworks Japan ©2011

2. Forex
Basics of FX & Online Trading

3. Forex ?

4. Forex ?
• FX

5. Forex ?
• FX
• Foreign Exchange
Market

6. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market

7. Forex ?
• FX
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized

8. Forex ?
• FX • Buy, sell, exchange
and speculate
• Foreign Exchange
Market
• Currency Exchange
Market
• Global, Decentralized

9. Forex ?
• FX • Buy, sell, exchange
and speculate
• Foreign Exchange
Market • Simultaneous
Exchange
• Currency Exchange
Market
• Global, Decentralized

10. Forex ?
• FX • Buy, sell, exchange
and speculate
• Foreign Exchange
Market • Simultaneous
Exchange
• Currency Exchange
Market • $ 2 Trillion USD
• Global, Decentralized

11. Forex ?
• FX • Buy, sell, exchange
and speculate
• Foreign Exchange
Market • Simultaneous
Exchange
• Currency Exchange
Market • $ 2 Trillion USD
• Global, Decentralized • 24 hours

12. Why Forex ?

13. Why Forex ?

14. Why Forex ?

15. Why Forex ?

16. Why Forex ?
• Business Transactions

17. Why Forex ?
• Business Transactions
• Exploit Volatility

18. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate

19. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit

20. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit
• Anyone Can Do

21. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit
• Anyone Can Do
• Instant Gratification

22. Why Forex ?
• Business Transactions
• Exploit Volatility
• Speculate
• Profit
• Anyone Can Do
• Instant Gratification
• (or regrets)

23. Currencies

24. Currency Pair

25. Currency Pair
• Two Currencies Comprise EXCH. Rate

26. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange

27. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold

28. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold
• Ex. USD/JPY

29. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold
• Ex. USD/JPY
• Base Currency - USD

30. Currency Pair
• Two Currencies Comprise EXCH. Rate
• Simultaneous Exchange
• one bought / other sold
• Ex. USD/JPY
• Base Currency - USD
• Counter Currency - JPY

31. Currency Pair

32. PiP ?

33. PiP ?
• Percentage in Point

34. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation

35. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001

36. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal

37. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal
• Sometimes 2 decimals (i.e. JPY)

38. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal
• Sometimes 2 decimals (i.e. JPY)
• 82.19 => 82.20 (= 1 pip)

39. PiP ?
• Percentage in Point
• Smallest Unit of Currency Valuation
• 1 Pip = 1/100 of 1%, or .0001
• FX Prices Quoted to 4th decimal
• Sometimes 2 decimals (i.e. JPY)
• 82.19 => 82.20 (= 1 pip)

40. SPREAD

41. SPREAD
• Broker’s profit

42. SPREAD
• Broker’s profit
• NO Commission

43. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’

44. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

45. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

46. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

47. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

48. SPREAD
• Broker’s profit
• NO Commission
• Expressed in ‘pips’
• Buy/Sell Differential

49. Trade Tools
Transaction Components

50. Tools
Lot Size

51. Tools
Lot Size

52. Tools
Lot Size

53. Tools
Lot Size

54. Tools
Lot Size

55. Tools
Leverage

56. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

57. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

58. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)

59. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)
50:1
100:1
200:1
400:1

60. Tools
Leverage
Give me a lever long enough and a place to
stand and I will move the entire earth.
Archimedes (2nd Century B.C.)
50:1
100:1
200:1
Multiplication Factor of 400:1
your money working for you.

61. Tools
Margin

62. Tools
Margin
• Directly Related to
Leverage

63. Tools
Margin
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin

64. Tools
Margin
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin
• 100:1 Leverage

65. Tools
Margin
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin
• 100:1 Leverage
• 1unit of capital =
margin requirement

66. Tools
Margin
• Directly Related to
Leverage
• Leverage / lot size,
defines amount of
required margin
• 100:1 Leverage
• 1unit of capital =
margin requirement

67. Tools
Margin x Leverage

68. Tools
Margin x Leverage
Margin

69. Tools
Margin x Leverage
Margin

70. Tools
Margin x Leverage
Margin 50:1
100:1
200:1
400:1

71. Tools
Margin x Leverage
Margin 50:1 Lot Size
100:1
200:1
400:1

72. Tools
Margin x Leverage
Margin 50:1 Lot Size
100:1
200:1
400:1

73. Tools
Margin x Leverage
Margin 50:1 Lot Size
100:1
200:1
400:1

74. Tools
Margin x Leverage
Margin 50:1 Lot Size
100:1
200:1
400:1

75. Tools
Margin x Leverage
Margin 50:1 Lot Size
100:1
200:1
400:1

76. Tools
Margin x Leverage
Margin 50:1 Lot Size
100:1
200:1
400:1

77. Charts
Types

78. Charts
Types

79. Charts
Types
Line

80. Charts
Types
Line

81. Charts
Types
Line
Bar

82. Charts
Types
Line
Bar

83. Charts
Types
Line
Bar
Candle stick

84. Candlestick Chart

85. Candlestick Chart

86. Candlestick OHLC
Anatomy of a Japanese Candle Stick

87. Candlestick Intervals
time intervals
Close High
open
Open
close
Low

88. Candlestick Intervals
time intervals
Close High
open Time Intervals
1 minute
5 minutes
15, 30 minutes
1-hour
Open 4-hour
close Daily
Weekly
Monthly
Low

89. Candlestick
Patterns & Signals

90. Candlestick
Patterns & Signals

91. Candlestick
Patterns & Signals
Doji

92. Candlestick
Patterns & Signals
Doji

93. Candlestick
Patterns & Signals
Doji

94. Candlestick
Patterns & Signals
Doji

95. Strategies

96. Strategies
Limit & Stop Orders, Hedging
GBP/JPY

97. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50

98. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Buy 1 lot GBP @ 126.50

99. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Limit Order
Sell 1 lot
GBP @ 127.25
Buy 1 lot GBP @ 126.50

100. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Limit Order
Sell 1 lot
GBP @ 127.25
Buy 1 lot GBP @ 126.50

101. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Limit Order
Sell 1 lot
GBP @ 127.25
Buy 1 lot GBP @ 126.50

102. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
Buy 1 lot GBP @ 126.50 GBP @ 125.50

103. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
Buy 1 lot GBP @ 126.50 GBP @ 125.50

104. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
Buy 1 lot GBP @ 126.50 GBP @ 125.50

105. Strategies
Limit & Stop Orders, Hedging
GBP/JPY
PROFIT:
0.75 JPY
(75 pips)
x Lot Size
Limit Order
Sell 1 lot
GBP @ 127.25
Stop Loss Order
Sell 1 lot
Buy 1 lot GBP @ 126.50 GBP @ 125.50

106. Strategies
Hedging
GBP/JPY

107. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

108. Strategies
Hedging
GBP/JPY
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

109. Strategies
Hedging
GBP/JPY
Sell 1 lot
GBP @ 127.25
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

110. Strategies
Hedging
GBP/JPY
Sell 1 lot
GBP @ 127.25
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

111. Strategies
Hedging
GBP/JPY
Sell 1 lot
GBP @ 127.25
Sell JPY @ 127.22
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

112. Strategies
Hedging
GBP/JPY
Sell 1 lot
GBP @ 127.25
Sell JPY @ 127.22
simultaneously Buy / Sell 1 lot
each JPY @ 126.25 / 126.22

113. Broker Selection
Setting Up Online

114. Broker Selection
Setting Up Online
Think..

115. Broker Selection
Setting Up Online
Think..
Global

116. Broker Selection
Setting Up Online
Think..
Global
Features

117. Broker Selection
Setting Up Online
Think..
Global
Features
Reliability

118. Broker Selection
Setting Up Online
Think..
Global
Features
Reliability
Speed of Execution

119. Broker Selection
FX Solutions, Australia

120. Broker Selection
FX Solutions, Australia

121. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed

122. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services

123. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services

124. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services
Precious Metals
Spot Tradable

125. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services
Precious Metals
Spot Tradable

126. Broker Selection
FX Solutions, Australia
Hedging, CFDs
Allowed
Electronic
Broking
Services
Precious Metals
Spot Tradable
http://www.fxsolutions.com.au/

127. Broker Selection
121 Securities, Japan

128. Broker Selection
121 Securities, Japan

129. Broker Selection
121 Securities, Japan
Demo Trading

130. Broker Selection
121 Securities, Japan
Demo Trading FX Robot Trading

131. Broker Selection
121 Securities, Japan
Demo Trading FX Robot Trading
Various
Accounts

132. Broker Selection
121 Securities, Japan
Demo Trading FX Robot Trading
Various
Accounts
http://www.121sec.com/index.html

133. Broker Selection
Exness - St. Petersburg, Russia

134. Broker Selection
Exness - St. Petersburg, Russia

135. Broker Selection
Exness - St. Petersburg, Russia

136. Broker Selection
Exness - St. Petersburg, Russia

137. Broker Selection
Exness - St. Petersburg, Russia

138. Broker Selection
Exness - St. Petersburg, Russia

139. Broker Selection
Exness - St. Petersburg, Russia
https://www.exness.com/

140. Trading Platforms

141. Trading Platforms

142. Trading Platforms
FX Solutions

143. Trading Platforms
•Pro
•Web
•Mobile FX Solutions
•AccuCharts

144. Trading Platforms
•Pro
•Web
•Mobile FX Solutions
•AccuCharts
Global Use

145. Trading Platforms
Considerations

146. Trading Platforms
Considerations
•Windows

147. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms

148. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac

149. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based

150. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone

151. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface

152. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface
•Ease-of-Use

153. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface
•Ease-of-Use
•Speed of Execution

154. Trading Platforms
Considerations
•Windows
•Majority of Trade Platforms
•Mac
•Browser-Based
•Smart Phone
•Interface
•Ease-of-Use
•Speed of Execution

155. Resources

156. Resources

157. FX Terminology
Resources

158. FX Terminology
Schools
Resources

159. FX Terminology
Schools
Tutorials
Resources

160. FX Terminology
Schools
Tutorials
Chart Patterns
Resources

161. FX Terminology
Schools
Tutorials
Chart Patterns
Resources
Trade Strategy

162. FX Terminology
Schools
Tutorials
Chart Patterns
Trade Platform Tutorials
Resources
Trade Strategy

163. FX Terminology
Schools
Tutorials
Chart Patterns
Trade Platform Tutorials
Resources
Trade Strategy
Demo Trading

164. FX Terminology
Schools
Tutorials
Chart Patterns
Trade Platform Tutorials
Resources
Trade Strategy
Forum Exchange
Demo Trading

165. FX Terminology
Schools
Tutorials
Chart Patterns
Trade Platform Tutorials
Resources
Trade Psychology
Trade Strategy
Forum Exchange
Demo Trading

166. Resources
www.investopedia.com/

167. Resources - BabyPips

168. Resources - BabyPips
Baby Pips School

169. Resources - BabyPips
Baby Pips School
Text

170. Resources - BabyPips
Baby Pips School

171. Resources
Baby Pips School - Graduation

172. Resources
Baby Pips School - Graduation

173. Resources
Baby Pips School - Graduation

174. Resources
Baby Pips School - Graduation
No Holy
Grail!

175. Resources
Baby Pips @ Facebook

176. Other Pips

177. Resources
http://aboutcurrency.com/
www.goforex.net/

178. Demo Account
• Virtual Money
• Simulate
• No Risks (= NO gain)
• Gauge Ability

179. Demo Account

180. FX Trading Alternatives

181. Advanced Trading
Automated FX Robot
✦Robot is your friend
✦Works for you
✦Auto Entry/Exit Strategies
✦Arbitrage
✦Scalping
✦Frequency - 1, 2 ... to many
✦Speed - Execution rapid.

182. Advanced Trading
Automated FX Robot
✦Purchase (not cheap)
✦Market Conditions Change
✦Robot Tune Ups
✦Experienced Traders

183. Advanced Trading
Automated FX Robot
Mr. Robotto is your friend in Trading
Doomo Arigatoo, Mr. Robotto!

184. Trade Alternatives
FX Robotic Trading Application by Proxy
✦Advantages:
✦No need to purchase
✦No knowledge
✦No emotionalism
✦No time lost
✦Limited risk
✦Disadvantage
✦50% of profits only
✦Initial Capital Rqmt.

185. Trade Alternatives
Proxy FX Robotic Trading

186. Considerations
• Reward to Risk Ratio
• Example: 3:1 in 10
trades
• Winners / Losers Ratio
• Demo Trade, First!
• Resources

187. Q&A
Presentation by: Jerry Suppan - Visionworks Japan ©2011