FOREX TRADING TIPS

FOR BEGINNER

1.Know the markets.

Spend some time to make
research on the currency
pair and the factor
affecting the currency pair
before trade.

2.Make a plan and stick to

it.
Make your own trading
plan and set target profit
everyday . Ensure the
trading plan is relevant
with your capital.

3.Practice.
Consistently practice the
gained knowledge with
backtest in real market. If
unconfident can try on
demo account to gain the
confidence. The most
importance thing you do
something to improve
yourself.

4.Know your limits.

This is important as you
must know your account
limit that you can trade.
How much you afford to
loss for one setup and
please don’t make thing
out of your capability !.
Make calculation on risk
and reward before making
the entry.
This is chart pattern
usually happen at gold
pair . It easy to trade gold
and just take a look at my
chart pattern .

All of this usually happen

before market moving
fast . It can be a sign of
reversal pattern of a
market.

DOUBLE TOP AND

DOUBLE BOTTOM

1- Double top happen

when price reach at
resistance region 2
times.Strong resistance
make price cannot
penetrate the fallen
resistance

DOUBLE TOP : SELL

ONLY

2-Double bottom happen

when price reach at
support 2 times.Strong
support will never make
the price go down further
and continue rising.

DOUBLE BOTTOM : BUY

ONLY

HEAD & SHOULDER

This pattern divided into

two :
1- Head & Shoulder
2-Inverted Head &
Shoulder

Head & Shoulder works as

a pattern for us to find sell.
We will sell when we see
the transformation of 1st
shoulder and head.
So will sell at 2nd shoulder
part/region.

HEAD & SHOULDER:

SELL ONLY

Inverted Head & Shoulder

also works the same but
differ as we find buy at
2nd part/region shoulder.

INVERTED: BUY ONLY

Commonly type of
currency use in forex?

1. Eur - Euro
2. Gbp - Great Britain
3. Usd - US Dollar
4. Chf - Swiss France
5. Nzd - New Zealand
Dollar
6. Aud - Australian Dollar
7. Cad - Canadian Dollar
8. Jpy - Japanese Yen

When the transaction of

forex being made?

1.24 hours a day.

2.Monday to Friday.
3.Closing/open of market
according to your broker
respectively.

Feel free to surf this web

for more news related to
forex

www.forexfactory.com
CURENCY/PAIR

Currency pair is divided

into 2 TYPES ONLY,
namely MAJOR PAIR &
CROSS PAIR

MAJOR pair is a currency

that is paired with USD/
GBP/EUR
CROSS pairs are pairs
other than major
currencies such as JPY/
CHF/AUD

MARKET MOVEMENT

There are two type of

market which are BULLISH
and BEARISH.

BULLISH mean market is

going upward or
UPTREND.
During BULLISH market ,
trader will buy at low price
and sell at higher price to
gain PROFIT.

Position for bullish

market is BUY.
BEARISH mean market is
going downward or
DOWNTREND.
During BEARISH market ,
trader will sell at higher
price and close the
position at lower price to
gain PROFIT.

Position for bearish

market is SELL.

TRADING TIMING

There are 3 major trading

session which is TOKYO ,
LONDON and NEWYORK.

The movement of trading

pair affected by trading
session.

For example , EURUSD will

active during EUROPE
time or US time start their
trading session.
MARKET TREND

1.Bullish/Uptrend
2.Bearish/ Downtrend

Uptrend:

Market rise at peak price

higher than previous one.
HH mean High High
HL mean Higher Low
Distance between HH and
HL called Retrace and the
trend is Bullish Trend.

Downtrend:
-Market make lowest price
from the previous one.
-LH mean Lower High
-LL mean Lower Low
- Distance between LL and
LH known as Retrace ant
the trend is Bearish trend.

There are three type of

traders that different in
their target and way to
approach market.

⁃ Scalper trader
⁃ Intraday trader
- Swing trader

Scalper trader

Generally scalper will

make profit in shorter time
and the amount of pips is
lesser than other type of
trader.

Scalper will make profit in

less than 2 hour and the
amount of pips is about
15-20 pips.

Intraday trader

Intraday trader will let their

position running less than
24 hours in a day before
they close their profit.

Their target pips are

around 50 -100 pips.

Swing trader

Rarest type of trader and

meant for experienced
trader because swing is
not an easy position for
new trader.

Require a lot of patience to

wait for suitable setup to
enter. They always hold
their position more than
one day/week/month or
even a year.

Usually the accumulated

pips more than 100 pips.

Timeframe (TF):

There are 9 timeframes

provided on each trading
platform:-

1. M1 - 1 minute
2. M5 - 5 minutes
3. M15 - 15 minutes
4. M30 - 30 minutes
5. H1 - 1 hour
6. H4 - 4 hours
7. D1 - daily
8. W1 - weekly
9. MN - monthly

The time above is the time

for each candlestick (CS)
to be formed or formed.
Here are examples of
candlestick formation in a
specific timeframe

LAYERING AND LOT

SIZING.

LAYERING

Entry by layer is the most

easiest way to control/
manage our risk. I will
share the correct method
to do layering.

LOT SIZING

The most important thing

in trading but new trader
will not care much . Lot
sizing affect many aspect
of trading such as entry
layer , profit and loss.
How to entry & Layering!
(Martingale Layer)

1. Ok this layer technique

is called Martingale Layer.
James did not lie when
James said martingale
layering entry is one of the
best ways to manage our
risk.

2. First, you must choose

your lot sizing first. For
this purpose, let's say you
have 200 usd equity in
your acc. And James
chose lot sizing 0.10 lot
because he is in the
middle of low risk and mid
risk.

3. When the signal comes

out or when you want to
enter. Our mindset is to fill
our 0.10 lot sizing in layers.
So first we enter the
smallest/cute lot in our
0.10, for example, lot 0.01
or 0.02.

4. If the floating price is

negative 5/10 pips from
the open/entry price, you
add another layer and
increase a little from the
number of initials entered.
So you enter lot 0.02 or
0.03

5. And when the floating

price is again negative 20
pips from the open/entry
price, you add another
position to suffice our lot
sizing 0.10 by inserting the
last layer with a lot that is
bigger than the second
layer, which is lot 0.07 or
0.05.

6. Maximum only two

layers to avoid over
layering.

7. So if we hit SL, the loss

is very small compared to
if we enter je continue lot
0.10 in the first entry place

8. If we are in a state of
profit, our profit is greater
than if we choose to enter
lot 0.10 directly in the first
entry.

Doesn't it seem easy to

manage our risk with the
martingale layer?

If you choose a high -risk

sizing lot if you hit SL, the
loss is small compared to
entering a large lot in one
place.

But you have to remember

that high risk lot sizing can
also cause your trading
account to lose.

So choose a safe way to

grow consistently. This is
not a gambling machine
waiting for luck to come.
 We have to be good at
taking care & identify our
risks
This is an example of a
market trend.

If the market is downtrend

we are looking to sell.

If the market is uptrend

we are looking to buy.

HOW TO MAKE PROFIT?

We can make a profit by

buy/sell currency.

1. Buy at a low price

1. Sell at a high price
BUY

Will make a profit if the

price goes up. Will lose if
the price decreases.

SELL

Will benefit if the price

decreases. Will lose if the
price goes up.

Why buy at support and

sell at resistance?

To get maximum profit

and minimum risk.
If the market is BULLISH/
UPTREND, what do we
need to do?

We need to find support

to BUY.

If the market is BEARISH/

DOWNTREND, what do we
need to do?

we need to find resistance

to SELL.
TOPIC 1: SUPPORT AND
RESISTANCE

Before James delve more

on this topic I would like to
introduce first what is
support and resistance or
also known as SnR.

SUPPORT is the place

where we will find BUY
because support is the
condition when demand
are strong enough to buy
currency making the price
stop from dropping.

RESISTANCE is the place

when we will find SELL
because resistance is the
condition when traders sell
their currency resulting of
the price cannot go higher
than resistance level.

Support and resistance

type :

SUPPORT:
-STRONG SUPPORT
-WEAK SUPPORT

RESISTANCE
-STRONG RESISTANCE
-WEAK RESISTANCE

SUPPORT and
RESISTANCE also can
change when
breakout(bo) occur :

Support breakout =
support become
resistance ( SBR)

Resistance breakout =
resistance become
support (RBS)

SUPPORT and
RESISTANCE shows us :
 . SNR is the
fundamental of forex
technical analysis

. Forex trader buy at

support or at region
that have potential for
the price to go up.

. Forex trader sell at

resistance or nearby
region that have
potential to go down.

Simply is,

. BUY AT SUPPORT
. SELL AT RESISTANCE

HOW TO DEFINE SnR IS

STRONG OR WEAK ?

-To define SnR whether it

is strong or weak are
relatively easy . The SnR
is strong when there are a
lot of retest/rejection
indicate that price are hard
to penetrate our SnR zone.

-Secondly, our SnR must

be find at larger time
frame such as 4 hours ,
daily, weekly or monthly. It
is not wrong to find at
lower range timeframe like
1 hour, 30 minutes,15
minutes and etc but small
timeframe had a lot of
noise/small movement that
has no big impact on that
timeframe.
Please refer to all these
pictures
Before we make an
analysis , it is mandatory
for us to see the left region
first. This is because the
left region has the given
data that already given.
After we identify the data
on the left then we make
decision to buy or sell.

At the left there are 3

rejection at resistance
zone . It signify that the
resistance is strong. Later
when the price at the right
side reach to resistance
zone then it penetrate our
strong resistance zone .
Then it automatically
count as break out
resistance.
When break out resistance
happen, we make the
resistance zone as
support (RBS). Wait for the
price to reach and we
enter buy.

On the left side we can

see there a strong
rejection support zone.

We can decide on the right

side to buy because at the
support zone we will find
buy and not sell.

During chart analysis

using SNR remember to
always look to your left
because the analysed data
will always located at the
left side.