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Trade Forex From Home

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Trade Forex From Home is crammed full of vital and powerful information giving you exact details of how to make money trading the Forex market. The unique content will educate you without the fluff because I know you don't want to waste time. Chances are you just want to get down to the nitty gritty and start to turn a profit, am I right? Well, this ebook will guide you to the heart of what really matters, revealing the truth of how to make money trading the Forex market. Sounds good, wouldn't you agree? Order now to move forward with your Forex trading future and please let me know how you get on!

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									FOREX
TRADE FOREX
  om home
FOR yOu
Learn how to trade Foreign Exchange – ForEx




                Wri en and edited by
             Annabel Meade
     Written and edited by: AnnAbEl MEAdE.
Visit us at: www.tradeforexfromhome.com or www.tradeforexfromhome.co.uk




RISK DISCLOSURE STATEMENT / DISCLAIMER AGREEMENT

Your level of success in attaining the results claimed in this book depends on many
factors. Since these differ for every individual your success or income cannot be
guaranteed nor is the author responsible for any of your actions as a result of reading
this book. This is not a ‘Get Rich Quick Scheme’

The ability to withstand losses or to adhere to a particular trading program in
spite of the trading losses are material points that can also adversely affect trading
results. There are numerous other factors related to the market in general or to the
implementation of any specific trading program, which cannot be fully accounted for in
the preparation of this book.

Trading the financial markets involves risk. This book and any part of the website that
makes up Trade Forex From Home and its contents are neither a solicitation nor
an offer to Buy/Sell any financial market. The contents of this book are for general
information purposes only (contents shall also mean web sites relating to book Money
For You).

Although every attempt has been made to assure accuracy, the author does not give any
express or implied warranty as to its accuracy, and does not accept liability for error
or omission. Examples are provided for illustrative purposes only and should not be
construed as investment advice or strategy.

The author does not warrant the performance, effectiveness or applicability of any
of the web sites or books listed or linked in this book or any web site relating to this
book.

The information provided in this book is not intended for distribution to, or use by
any person or entity in any jurisdiction or country where such distribution or use
would be contrary to law or regulation or which would subject us to any registration
requirement.

This book is copyrighted by Annabel Meade. No part maybe copied or changed in
any format including photocopying, electronic, mechanical or otherwise under any
circumstances without the written permission of the author. All rights reserved.

This book is digitally encoded and electronically watermarked for rapid identification of
unauthorized distribution over the internet.

By purchasing this book, subscribing to our mailing list or using the contents of the
website you will be deemed to have accepted these terms in full.



Cover & graphic design by: www.corriedesign.co.uk. Illustrative elements include; ©iStockphoto.com/CreativeChain
Design House/Nick Monu/A-Digit/Bulent Ince. Initial book design by: www.janepadginton.com                          2
COnTEnTS
ChApTER 1
To iNFoRM ANd EducATE                                                     04

ChApTER 2
WHAT iS FoREX & WHY TRAdE iT?                                             08

ChApTER 3
HoW To PREPARE To TRAdE                                                   23
   Mental preparation - The psychology of trading.

   Physical preparation - Trading journal and when to trade.

   Trading Terminology.

   Financial preparation - What is required plus money management.

   Your Trading Plan.

   Research.



ChApTER 4
SuMMARY & coNcluSioN                                                      57
   Encouragement to succeed & where you go from here.


ChApTER 5
MY SToRY                                                                  62
   Why i started trading - pretty much the same reasons as many others.




                                                                               3
CHAPTER 1




INTRODUCTION
TO INfORM AND EDUCATE
    CHAPTER 1 – INTRODUCTION




    INTRODUCTION


    The purpose of this book is to inform
    and educate you about the wonderful
    world of trading foreign exchange
    from the comfort of your armchair.
    You are probably already aware there is
    much information available for free and
    courses that cost thousands with promises
    which only lead to dead ends. The plain truth
    is that trading is a simple business, but it’s
    not easy. if it was everyone would be trading
    successfully.

              The content of this book is written
               in plain simple english taking
                 the mystery out of trading.
    When one starts to trade with little or no
    knowledge it is not unusual for an amateur
    trader to lose all their money and miss out
    on what could prove more profitable than
    winning the lottery. if you start trading with
    the right attitude and training then this could
    provide you with considerable profit for a
    very long time to come.

    That is why this book has been written - to
    provide you with the tools to help you succeed
    in this exceptionally lucrative market.




4                                                     5
    CHAPTER 1 – INTRODUCTION




    With the cumulative knowledge of experience
    and research i have amassed over the years,
    by reading this book you can learn what you
    need to know to be successful in this business.
    it will save you money and time on expensive
    courses and explain how and why trade the
    FoREX market.


                   There are no guarantees in life
                         or in this business
    The contents of this book contains the basic
    tools that you need to be a trader in a very
    lucrative market.

    The things you will need are:-

        1. A sum of money

        2. A new computer dedicated to trading

        3. An online broker and
           charting software

        4. The right attitude

        5. Time to trade


                                                      AFTER PlouGHiNG
    i wish i had access to this information           THRouGH THE ScAMS
    when i began my trading career.                   ANd ScHEMES THAT
                                                      SToPS THE MAjoRiTY
                                                      FRoM SuccEEdiNG
                                                      THiS iS A MuST REAd
                                                      BEFoRE You do
                                                      ANYTHiNG ElSE.




5                                                                           6
    CHAPTER 1 – INTRODUCTION




    Most people are aware that some city
    traders are receiving million dollar bonuses
    at christmas. Many people feel the lure of
    money and the greed that comes with that.
    After all how hard can it be?

    To put this in perspective the majority of
    private investors or traders in this game are
    losing.


           remember! Educating yourself about
             trading is key to increasing your
                  probability of success.
    Many successful traders have lost all their
    money in one or two accounts before they
    achieve consistent profitable results. It is wise
    to understand from the beginning you are
    entering in to a market that can make you or
    break you. You have already taken the first
    step to help ensure that you end up on the
    make and not the break side.

    Make it your business and give it the
    commitment that any business deserves. if you
    set up proper rules and strategies and above
    all stick to them you will have a far greater
    chance of success.




6                                                       7
CHAPTER 2




whAT IS fOREx
& why TRADE IT?
    CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




    what is the forex?


    The foreign exchange market, often
    referred to as forex, is the market for
    the various currencies of the world. It
    is a market which, at its core, is rooted
    in global trade. Goods and services
    are exchanged 24 hours a day all over
    the world. Those transactions carried
    out across national borders require
    payments in non-domestic currencies.

                    The forex market is the largest
                     traded market in the world
    For example, a uS company purchases a
    product from a British company. To carry
    out the transaction, one of two things is
    going to happen. The US firm may make
    a payment in British Pounds which would
    require a conversion of dollars into Pounds.
    Alternatively, the payment could be made in
    dollars, in which case the British company
    would then exchange the dollars for Pounds
    at their end. Either way, there is going to
    be a transaction which converts dollars
    into Pounds.

    Transactions like this take place constantly.
    The market maintains a rate of exchange
    between the uS dollar and the British Pound        ACCESSIBILITY -
                                                       TRAdE dAY oR NiGHT
    to facilitate that activity. This occurs between   WHEREVER You ARE
    all other world currencies.                        iN THE WoRld




8                                                                           9
    CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




    considering the amount of global trade
    which takes place, you can see why the forex
    market is the biggest in the world and dwarfs
    all others. literally trillions of dollars worth
    of forex transactions take place each and
    every day.

    why Trade the forex Market?

    If you are interested in trading currencies
    online, you will find the Forex market
    offers several advantages over stock
    and futures trading.

    Trading the Forex deserves serious
    consideration - the world’s largest market
    is knocking at your door! daily turnover
    exceeds $1.5 trillion u.S. dollars (source: Bank
    of international Settlements)

    With an expanding global economy, you may
    already be currency trading without realising
    it. Every time you purchase a foreign product,
    you have traded the value of your currency
    for the exchange traded value of the foreign
    product. Believe it or not, that is a simplified
    explanation of the basic process of Forex
    trading. In the Forex, banks, investment firms,
    large corporations and individual traders buy
    and sell world currencies such as the Euro,
    British Pound, Swiss Franc, and japanese Yen       FLEXIBILITY -
    in exchange for the value of another currency.     THE FoREX MARKET iS
    The Forex market has long been recognized          oPEN 5 dAYS A WEEK
                                                       24 HouRS A dAY –
    as an uncommon investment opportunity by
                                                       AlloWiNG You To
    major banks and financial institutions.            TRAdE AT A TiME
                                                       THAT SuiTS You




9                                                                            10
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     Furthermore, the Forex market is simpler to
     trade than stocks and futures. in the Forex
     market you may buy or sell currencies. You
     can make profits when the market is going up
     if you bought the market. You also can make
     profits when the market is going down if you
     sold the market. There are no restrictions
     when selling (shorting) as found in the u.S.
     stock markets. And, there are no required
     contracts sizes, expiration dates, and other
     constraints found in the futures market.


               Profits can be made no matter if
            the market goes up or down giving you
                     a win-win situation.
     Forex trading has enjoyed exponential growth
     and widespread popularity over the past few
     years since it was deregulated in 1997. it is
     only now that online foreign exchange trading
     is starting to get noticed. until recently, large
     international banks were the only ones in the
     foreign exchange market, selectively allowing
     access to Fortune 500 companies, large funds,
     high net worth individuals, etc. But now,
     there are online trading firms that provide
     individual traders like you and i with direct
     access to the largest, most liquid financial
                                                         iT’S oNlY NoW THAT
     market in the world - the Forex. it is the
                                                         oNliNE FoREiGN
     most perfect market that exists because it          EXcHANGE TRAdiNG
     has a large number of buyers and sellers all        iS STARTiNG To GET
     selling the same products. There is a free flow     NoTicEd BY THE
     of information and there are few barriers to        PRiVATE iNVESToR -
                                                         THE TiME iS NoW!
     interfere with your participation.




10                                                                            11
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     Over 85% of all Forex transactions involve 7 major
     currencies:

     uS dollar (uSd)
     japanese Yen (jPY)
     Euro (EuR)
     Swiss Franc (cHF)
     British Pound (GBP)
     canadian dollar (cAd)
     Australian dollar (Aud)

     Take the EUR/USD for example. The first
     currency (the Euro in this example) is called the
     base currency and the second is the counter
     currency (the uS dollar). in this pairing we
     can see how many uS dollars can be bought
     for one Euro (the base currency).


           A currency pair represents the exchange
               rate between the two currencies.
     Typically, trades of $1 million and above
     constitute the institutional marketplace.
     Trades below this $1 million threshold
     constitute the retail marketplace.

     The major dealing centres today are:

     london (with over 50% of the market)
     followed by New York Tokyo
     Zurich
     Frankfurt
     Hong Kong
                                                          LONDON iS THE
     Singapore                                            MAjoR dEAliNG
     Paris                                                cENTRE FoR THE
     Sydney                                               FoREX MARKET




11                                                                         12
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     The major trading sessions in the Forex
     Market are:

     ASiAN Session (Tokyo) 7pm–4am EST
     uS Session (New York) 8am–5pm EST
     EuRoPEAN Session (london) 2am–12pm EST
     The uS EuRoPEAN overlap period
     8am–12pm EST is the most active period and
     therefore the best opportunity for day traders
     looking for volatility.

           The biggest price movement frequently
            occurs during the European Session
     how is the forex Market Different?

     There are some significant differences between
     the forex market and other markets, for
     example the stock market. While it may be
     the feeling that a good trader should be able
     to handle any market, the fact of the matter is
     that some structural differences in forex can
     require a different trading approach.

     Trading potential in both rising and falling
     markets whichever trading transaction
     process you choose.
     in every open Forex position, an investor is        A SHoRT PoSiTioN iS
     long in one currency and short in the other.        oNE iN WHicH THE
     A long position is one in which the trader          TRAdER SEllS THE
                                                         BASE cuRRENcY. A
     buys the base currency in anticipation that it
                                                         loNG PoSiTioN iS
     will appreciate. Equally a short position is one    oNE iN WHicH THE
     in which the trader sells the base currency in      TRAdER BuYS THE
     anticipation that it will depreciate. This means    BASE cuRRENcY.
     that trading potential exists in a rising as well
     as a falling market.


12                                                                             13
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     Forex is available to trade for more than
     120 hours per week
     24-hour trading is available most days.
     Whether it’s 6pm or 6am, somewhere in the
     world there are buyers and sellers actively
     trading foreign currencies. Traders can always
     respond to breaking news immediately, and
     P&l is not affected by after hours earning
     reports or analyst conference calls.


     No Exchanges
     The lack of an exchange is probably the next
     big thing that sticks out as being different in
     forex. While it is true that there is exchange-
     based forex trading in the form of futures, the
     primary trading takes place over-the-counter
     via the spot market. There is no NYSE or
     FTSE in the forex market.


             There is no central location for price
            data and no real volume information
     on the largest scale, forex transactions are
     done in what is referred to as the inter-bank
     market. That literally means banks trading
     with each other on behalf of their customers.
     larger speculators also operate in the inter-
     bank market where they can execute multi-
     million dollar trades with ease. individual
     traders, who generally trade in much smaller
     sizes, primarily do so through brokers and
     dealers.




13                                                     14
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     Superior liquidity
     With a daily trading volume that is 50 times
     larger than the New York Stock Exchange,
     there are always broker/dealers willing to buy
     or sell currencies in the Forex market. The
     liquidity of this market, especially that of the
     major currencies, helps traders either open
     or close a position more easily.

     Margin Trading
     The forex market is a 100% margin-based
     market. Margin trading allows the individual
     to trade with very little startup capital.

                     Forex brokers offer much lower
                        commission structures
     The most widely used forex
     transaction processes

     The transaction processes available in
     Forex trading are exactly the same as other
     products available to trade. The most widely
     used are:


     Spot Forex and Futures
     This is essentially trading a 2 day short term
     contract or Futures contract. if this is the area
     of Forex trading of most interest there are a
     few things to consider. Trading Spot Forex you
     do not take actual possession of any currency       TRAdERS cAN AlMoST
     but have a theoretical agreement to do so           AlWAYS oPEN oR
     in the future. This will enable you to benefit      cloSE A PoSiTioN AT
     from price change for which your broker             A cHoSEN PRicE duE
                                                         To HiGH liQuidiTY.
     will require a deposit as security against any
     losses.



14                                                                             15
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




            Margin Requirements in Different Markers
     60 %
                           Margin Requirements in different Markers

     50 %


     40 %


     30 %


     20 %


     10 %


      0%
                  Shares                        Futures               Currencies




     The advantage with this is that you may earn
     interest on this deposit which is called a Margin
     Fund. The percentage of Margin requirements
     on Spot or short term Futures contracts is
     greatly reduced compared to trading other
     markets which is illustrated overleaf.

     With Spot Forex or Forex Futures contracts,
     trades are held overnight. The trader will
     either payout or receive interest on their
     position, depending on whether the interest
     differential is for or against the trade. This
     is referred to as a ‘rollover’. Spot Forex and
     Futures trades are carried out on a trading
     day basis and are technically closed out at the
     end of each day. Your broker will then roll
     forward your position to the next trading day
     and at which time you will payout or receive
     interest on your position. Some traders will
     hold open a position knowing the interest
     rate is in their favour and make more profit                                  TRAdERS cAN PAY oR
     on their trade.                                                               REcEiVE iNTEREST oVER
                                                                                   NiGHT dEPENdiNG oN
                                                                                   THEiR PoSiTioN




15                                                                                                         16
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     cFd’s (contract For difference)
     This is as the name suggests a contract or
     agreement between a broker and a client
     to buy or sell (go long or short) a currency
     at a pre-determined price multiplied by the
     number of cFd’s or lots in the contract.
     cFds enable the trader to trade a highly
     geared product, and typically leverage of 100:1
     is available. A broker will charge a commission
     on the transaction which can vary between
     brokers. cFds enable the trader to hold a
     position over a period of time which maybe
     of more interest to those who are looking to
     trade less frequently.

               Currently in the UK profits from
            trading using a Spreadbetting account
                         are tax free
     Spreadbetting
     This is a simple concept. if you think that a
     certain currency will rise, then you buy the
     currency (going long). if you are right then
     you will sell back the currency or close the
     position for a profit. If your trading strategy
     suggests that the currency will fall then you
     would sell the currency (going short). if you
     are right you would close the position or buy
     back the currency for a profit.

     NoTE: if you are wrong in either of the above
     examples then you would make a loss.

     In the UK, profits made from trading using        iN THE uK THE PRoFiTS
                                                       FRoM TRAdiNG uSiNG
     Spreadbetting are tax exempt and duty free.       SPEAdBETTiNG ARE
     There is no commission to pay your broker as      TAX FREE
     a fee. However, your broker will make money
     on the spread of the price between buying
     and selling a currency.


16                                                                             17
     CHAPTER 2 – WHAT Is fOREx & WHy TRADE IT?




     Spreadbetting is a highly geared product giving
     you access to trade with many times your
     account size. Most brokers will allow you to
     open an account with very little capital which
     makes this product and the possibilities for
     trading so accessible to many.

     depending on how you are trading, whether
     Spreadbetting, trading cFds (contract
     For difference) or trading Futures there
     maybe other brokers commission
								
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