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FOREX TRADING SEMINAR FOR BEGINNERS
Instructor:
Lin( Raymond) Zheng – Forex Specialist, Forex Club, LLC
FOREX CLUB, LLC LEARNING CENTER
Disclaimer• The information and opinions in this report are for general information use only and are not intended as
an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Before deciding to trade forex, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that Forex Club, LLC is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. Forex Club, LLC is registered with the United States Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA #0358265).
About FOREX CLUB, LLC
• Founded in 2005.• A subsidiary of Forex Club Holdings, LTD.• Registered with the United States Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association (NFA #0358265).• The industry's first and only Forex broker providing zero spreads and receive commission refunds on unprofitable trades*.• In 2010, Recognized as the fastest growing Forex broker in the U.S. by Inc. 500.• In 2009, Recognized as “Best Broker for Beginners” by Forex-Ratings.com.
* Exclusively on ExpressFX and Commission returns available for clients with deposits of $500 or more.
FOREIGNEXCHANGE
FOREX
FX外汇交易
外汇现货
FOREX Names
FOREX Advantages
Low transact-ion costs
50:1 Leverage 6 Major Pairs
Great Liquidity
Unrestricted short-selling
24 Hour Trading
* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Wellington
Sydney
TokyoHong Kong
Singapore
FrankfurtZurich
Paris
London
New York
Chicago
WELLINGTON 10:00pm/06:00amSYDNEY 10:00pm/07:00am
TOKYO 12:00am/10:00amHONG KONG 01:00am/10:00amSINGAPORE 01:00am/10:00am
FRANKFURT 07:00am/04:00pmLONDON 08:00am/05:00pm
NEW YORK 01:00pm/10:00pm CHICAGO 02:00pm/11:00pm
Trading Time
FOREX Participants
•US Federal Reserve•European Central Bank•Reserve Bank of Australia, etc.
Central banks•UBS•Barclays Capital•Goldman Sachs, etc.
Investment Banking Firms
•Hedge Funds•Mutual Funds•Private investors, etc.
Retail Market
The MajorsCurrency Symbol Currency Pair Nickname
EUR/USD Euro vs. U.S. Dollar Euro
GBP/USD Pound vs. U.S. Dollar Pound
USD/JPY U.S. Dollar vs. Yen Yen
AUD/USD Australian Dollar vs. U.S. Dollar
Aussie
USD/CHF U.S. Dollar vs. Swiss Franc
Swissie
USD/CAD U.S. Dollar vs. Canadian Loonie
NZD/USD New Zealand Dollar vs. U.S. Dollar
Kiwi
Currency PairBase Currency Counter Currency
USDЕUREuro VS. US Dollar
EUR/USD: 1.3652 Represents 1 Euro Can be exchanged for 1.3652 U.S. dollars
Trading EUR/USD
EUR/USD Daily Chart
EUR/USD Since 2011
Trading Volume
•10,000 Euro•10,000 Euro worth of US Dollars10,000
EUR/USD
•50,000 US Dollars•50,000 US Dollars worth of Yen50,000
USD/JPY
PipsPip is the smallest unit of price change in currency trading
EUR/USD: 1.40127• Pip is the fourth decimal point or 0.0001.
USD/JPY: 77.165• For currency pairs including the Japanese Yen, Pip
is the Second decimal point or 0.01.
Currency Prices
•Currency Pair: Euro vs. U.S. DollarEUR/USD
•Sell: Represents you can sell Euro while buying U.S. Dollar at 1.36980 .
1.36980
•Buy: Represents you can buy Euro while selling U.S. Dollar at 1.36985 .
1.36985
•Spread: the difference between the Sell and Buy prices, your transaction cost.0.5(1.36985-1.36980)
Currency PricesEUR/USD rises
The Euro has strengthened against the Dollar
One Euro is now worth more Dollars
EUR/USD Falls
The Euro has weakened against the Dollar
One Euro is now worth fewer Dollars
1.3988
1.3958
1.3958
1.3928EUR / USD
UptrendKnown as a bullish trend. There are more buyers than sellers in the market, which sends prices higher for an extended period of time.
EUR/USD 1 Minute Chart
Downtrend
EUR/USD 1 Minute Chart
Known as a bearish trend. There are more sellers in the market than buyers, which sends prices lower for an extended period of time.
Range
EUR/USD 1 Hour Chart
This occurs when there is an equal amount of buyers and sellers in the market, the market has no clear trend up or down for an extended period of time.
Candlesticks
EUR/USD Daily Chart
Known as a K Line Chart, this is the most commonly used type of chart. Candlesticks display the high, low, open, and close price points over a specific period of time. Candlestick data points can be used to determine reversal points and trend reversal patterns.
High
Low
Close
Open
High
Low
Open
Close
Buying / Going longWhen you buy a currency pair, you expect the base currency to strengthen against the counter currency and the price to rise.
EUR/USD 1 Minute Chart
1.3425 Buy(Trading Starts)
EUR/USD rises 93
pips
Euro
U.S. Dollar
1.3518 Sell(Trading Ends)
Selling / Going short
EUR/USD 1 Minute Chart
When you sell a currency pair, you expect the base currency to weaken against the counter currency and the price to Fall.
1.3506 Sell(Trading Starts)
1.3436 Buy(Trading Ends)
U.S. Dollar
Euro
EUR/USDFalls 70
pips
Technical Analysis
Technical analysis is the study of price changes on charts, affected by buyers and sellers positioning themselves to
predict future market trends.
Major economic data, political
factors, position holders, the relationship
between supply and demand will eventually
be reflected into the exchange rate.
History repeats itself, especially in the
financial Investment markets, creating identifiable price
patterns.
Traders emotion can dominate the market, they tend to move in
similar directions, creating identifiable
price trends.
Fundamental Analysis
Fundamental Analysis is the study of macro-economic indicators, political factors which influence currency prices.
Interest Rate
Decision
Economic growth
indicators
Changes in commodit
y prices
National economic structure
Inflation Indicators
Political Influence
Geopolitical Events
International
Mergers & Acquisitio
ns
Maximum Leverage is:
50:1
Leverage
Leverage refers to the ratio between the size of position one can open and the actual total amount of funds
required, also known as margin ratio.
* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Deposit$5,000
leverage10:1
Trading Amount50,000
* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Leverage
Risk Management
Leverage
Trading Amount
Pip Value
Moving Range Risk
50:1 250,000 $25 $25 x 150 = ± $3,750 $3,750 / $5,000 = ± 75%
25:1 125,000 $12.5 $12.5 x 150 = ± $1,875 $1,875 / $5,000 = ± 37.5%
10:1 50,000 $5 $5 x 150 = ± $750 $750 / $5,000 = ± 15%
5:1 25,000 $2.5 $2.5 x 150 = ± $375 $375 / $5,000 = ± 7.5%
2:1 10,000 $1 $1 x 150 = ± $150 $150 / $5000 = ± 3%
1:1 5,000 $0.5 $0.5 x 150 = ± $75 $75 / $5,000 = ± 1.5%
Example: EUR/USD Deposit: $5,000 Moving Range: 150 Pips
* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
50 to 1 25 to 1 10 to 1 5 to 1 2 to 1 1 to 10%
10%20%30%40%50%60%70%80%90%
100%
75.00%
37.50%15.00% 7.50% 3.00% 1.50%
Risk management
RiskRemaining Capital
Example: EUR/USD Deposit: $5,000 Moving Range: 150 Pips
* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
50 to 1 25 to 1 10 to 1 5 to 1 2 to 1 1 to 10%
10%20%30%40%50%60%70%80%90%
100%
100.00%75.00%
30.00%15.00% 6.00% 3.00%
Risk Management
RiskRemaining Capital
Example: EUR/USD Deposit: $5,000 Moving Range: 300 Pips
* Increased leverage opportunities in expanding the profitability but also expand the risk of loss.
Success Failure
The Profitability
The Risk Of Loss
Your Goal: Find A Best Ratio
OrdersLimit:
Enter or exit the market at a better price than the
current rate
Buy at a price below the current market
price
Sell at a price above the current market
price
Stop Loss:Enter or exit the market at
a worse price than the current rate
Buy at a price higher than the current
market price
Sell at a price lower than the current
market price
One Cancels Other:A two-legged order: Limit
+ Stop Loss
The second leg is cancelled if the first
leg is executed
Develop a trading strategy, without
having to watch the market all the time.
* You can place pending orders no closer than 10 pips from the current price
Our Trading Platforms
ExpressFX - A Trading Platform for the Beginners• Zero spread, Instant commission returns on unprofitable
trades*• Built in Trading Wizard, Simple operation
ActTrader - For slightly experienced traders• Industry low Spread, Entry orders, Professional charting tools• Provide access for Web-based, iPhone, iPad, Android and Mac
computer
MetaTrader 4 - world's most popular Forex platform• Compatible with a large online library of custom indicators and trading
tools• Use EA's (Expert Advisors) for automated trading strategies
* Commission returns available for clients with deposits of $500 or more.
•In 2010, Forex Club LLC was recognized as the fastest growing Forex broker in the U.S. by Inc. 500
•In 2009, Forex Club LLC was recognized as “Best Broker for Beginners” by Forex-Ratings.com
Strong Market Positions
•Autochartist•Trading Central•Sentiment Index - The Company's own Market Sentiment indicatorProvide professional analy
sis tools•Training can be accessed online or at our New York City office •Provide one to one guidance to the real account ownerOn-site instruction an
d guidance
•Industry low average spread•Trading Platforms: MT4*, ExpressFX, ActTrader, Rumus and MirrorTrader•No annual fee, no monthly fees, no account maintenance feeExcellent Trading environment and
service
•Forex Club, LLC is registered with the United States Commodity Futures Trading Commission (CFTC)
•A member of the National Futures Association (NFA #0358265)
Client Protection
Company Advantages
www.FXCLUB.com/cn
Thank you for choosing Forex Club, LLC!
Leverage your Opportunity at
Chinese Toll-Free: 1(800)541-4302