Adam Khoo

Forex
 Market run within a network of bank 24 hours 5 days a week
 Minimal investment
 Account at @ $200
 Minimal time commitment
 3-6 hours a day is more than sufficient.
 Need hard work
 No employee, no office or inventory
 Recession proof

The business of forex trading

 24 hours market gives flexibility

 Build your business from anywhere in the world
 Plan your day trading routine around day

Generate consistent profits.

Profit returns of 5% - 20% a month are very possible.

Most common currency system

EUR Euro

USD US dollar

GBP British Pound

JPY Japanese Yen

CHF Swiss Franc

AUD Australian Dollar

CAD Canadian Dollar

NZD New Zealand Dollar

Successful traders only trade the most common and liquid 7 pairs:

EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD AND USD/CAD

Currency Exchange Rates

Currencies are quoted in Pairs and mostly in 4- decimal places.

EUR/USD = 1.3505

Base currency
If you want to buy Euro, you need to pay 1.3505 US Dollar. If you want to sell 1 Euro you would
receive 1.3505 US Dollars.

Currency Exchange Rates

While all other pairs are quoted to 4 decimal places (1 pip = 0.0001) , the JPY pairs are quoted to 2
decimal places

USD/JPY = 98.73

This quote tells is that 1 US Dollar is equivalent to 98.73 Japanese yen

PIP (price interest Point)

Pip is the smallest change in value for any given forex quote.

Contract Lot Sizes

A standard lot is 100,000 unit of the base currency

When you buy one standard lot of EUR/USD, you are buying 100,000 Euros with US dollars.

Other lot sizes

LOTS SIZE UNITS

STANDARD 100,000

MINI 10,000

MACRO 1,000

NANO 100

1 LOT = 100,000

0.5 lot = 50,000

Calculating forex profits

Profits/loss =

No of Pips

No. of lots

$ value per Pips Per Standard Lot

$value per pip per standard lot is USD 10 OR about USD10 for most of the actively traded pairs ( i.e.
EUR/USD, GBP/USD, AUD/USD)

GO TO https://www.mtpredicton.com/Pip-Value-Table to find out $value per pip per lot for all major
currency pairs.

Profit by going long

Going long EUR/USD

1 standard lot EUR100,000

Sell EUR/USD 1.3550

Bullish in trend

Profit 40 pips * $10* 1 standard lot = $400

Buy EUR/USD 1.3510

How to profit from forex moves

Going long EUR/USD 1 standard contract at EUR/USD 1.3510

Buy EUR/USD AT 1.3510

SEL EUR/USD AT 1.3550

3550-3510 = 40

Profits = Number of pips * $ value per pip std lot * number of lots

= 40 pips * US$10* 1 lot

= us$400

Another way of looking at it

Buy Euro 100,000 and pay USD 135,100

Sell Euro 100,000 and receive USD 135,500

Total profit earned = $400

Without leverage, you would have to invest USD 135,100 to earn USD 400 (0.29% Return). Forex
brokers allows you to leverage 1:100 times.
We employ leverage of 1:20 we just need to invest of a margin of US$6,755 (5% of position of the
position size). Our return becomes $400/6,755 =5.9% return.

Profit by going short

Going short EUR/USD

1 contract EUR 100,000

SELLEUR/USD AT 1.3560

BUY EUR/USD AT 1.3520

3560-3520 = 40 PIPS

Profits = Number of pips * $ value per pip std lot * number of lots

= 40 pips * US$10* 1 lot

= us$400

Another way of looking at it

SELL Euro 100,000 and RECIEVE USD 135600

BUY Euro 100,000 and receive PAY 135200

Total profit earned = $400

POWER OF LEVERGE

1.20 best for 10,000-dollar account

1. Scalpers 3 swing traders

Target 5-10 pips per trade Target: 50-150 pips per trade
Trade duration: second to minutes Trade duration less than a week
Charts: M1 and M5 Chart H and H4

2. Day traders 4. position traders

Target 20-40 pips per trade Target: 500-1000 pips per trade
Trade duration: within a day Trade duration: weeks to months
Charts: M15 and H1, H4 Chart: D1 (daily candles), W1
What is the secret to consistent trading profit?

Consistent profit from random outcomes.

Technical analysis

Three axioms of technical analysis

Market prices discount all known information

Market price is a reliable measure of collective human psychology.

Market price is leading indication of all fundamental data (economic and political news)

3. Price move with the trend

Uptrend > probability price will move higher.
Downtrend< probability price will move lower.

candle
Moving average indicates trend direction and support and resistance level.

A simple moving average is the simple average of the price over a pre-defined number of periods.

An exponential moving average (EMA) is a weighted MA that applies more weight to the recent
prices.

15 minutes

50 moving average.

The slope of moving average indicates the direction of market trend.

Moving averages act as support on uptrends and resistance on the downwards.

Moving averages

18

50

100

200

18 moving average is above 50 and 50 is above is 100 and 100 is above 200 and this is clears
uptrend.

It is bouncing 18 moving averages

Moving average crossover indicators indicate change is trend

6EM
Resistance zones.

When a stock fails to break resistance, it creates bearish momentum (possible short opportunity)

Avoid buying stocks when they are near resistance line.