Understanding Forex Trading - forex trader youtube

Understanding Forex Trading ~ forex trader youtube

Understanding Forex Trading

Having traded for a month on the forex market, i shall attempt to explain some of the basics in forex trading. Or at least my understanding of the whole forex thing. The following 3 charts
all relate to the same currency pair of USDJPY. They look so very different, dont they?


Time frames
Unlike the stock market which generally starts at 9 am and ends at 5 pm, trading in forex is a 24/7 thing. You can trade at any time of the day or deep in the middle of the night. You can watch the market in various time frames of M1, M5, M15, M30, H1, H4 to MN. It basically means there is a chart which updates by a minute, 15 minutes, hourly and up to monthly. I generally look at H1 (hourly chart), H4 (4 hourly chart) and D1 (daily chart).

Candlestick
I believe the reason why they are called candlesticks is probably due to them resembling candles with a wick at the top and bottom. In the above picture, there are 2 such candles.

Green candle - This indicates that the price is going upwards (bullish) with the bottom green as the opening price and the top green as the closing price.

Red candle - This indicates that the price is going downwards (bearish) with the top red as the opening price and the bottom red as the closing price.

Candle wicks - The thin line that protrude from the green and red candles indicates the highest or lowest price it ever went to during that time frame.

Try and see if you can figure out the trend from the above time frame charts.


Spread
Similar to shares trading where you are required to pay a commission every time you place buy or sell a share, it is the same when you trade in forex. But over here it is called a spread and can range from 3 to 12 depending on which currency pair you are trading. Example in the below picture, the spread for NZDUSD is 3 and NZDCHF is 10, meaning you need to earn more than the spread of 3 or 10 pip before its considered your profit.

PIPS
Forex trades up to 4 decimal points and every increase or decrease of 1 point is equivalent to 1 pip. Using the same picture above for illustration, if i were to buy the currency pair of NZDUSD at 0.6371, hoping that the price will go up, it would have to reach a price of at least 0.6375 which is an increase of 4 pips before its considered a profit 1 pip (0.6375 - 0.6371 = 4 pips increase less spread of 3).

Ok, thats about all for the basics, i will be back with more as i learn more.
I am currently updating my trades here, so check it out!

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Why you need a budget - forex trader yang berjaya di malaysia

Why you need a budget ~ forex trader yang berjaya di malaysia

2 weeks have passed since the beginning of 2016. I was looking at my ducky challenge and a small sense of satisfaction came to me when i saw that this challenge was right on track. My wife and i have been putting our initials to the chart everyday when we drop a dollar into ducky.


I then started a casual conversation with my wife about my grand plans of saving and budgeting -
“Hey, did you realise how much we spent just this one afternoon? We should be keeping track of all our expenses so that we......”

“Track everything for what? Whats the point of making our life so difficult? Wanna buy everything also must think so much!”

I guess i should just stick to our ducky challenge for now.

Budgeting is Spending!

That night, i pondered upon this conversation for a while and was thinking, yes indeed, why spending must think so much? Can buy just buy right? I thought i am a happy go lucky person?

But then again, i realise this one point. Yes, we should not be thinking so much about everything in life. YOLO yah (you only live once). And thats the reason why we should budget first before spending. Budgeting is spending freely on the object of your desire without feeling regretful afterwards. Thats what my 6 jars to financial freedom is all about! After all, i do in fact have a play jar where i should empty it every month. 

With Chinese New Year just around the corner, it is absolutely crucial to have a budget to avoid overspending. Wish me luck on this though...its gonna be tough!

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