Thanks for sharing 👍 The image is a beginner’s guide to Forex trading. Here’s the full text in English:
What Is the Forex Market?
The foreign exchange market (forex) is the largest and most liquid trading market in the world, with over $7 trillion traded daily. Its high volatility, flexible trading hours, and accessibility make it attractive to both beginners and seasoned traders.
The forex market is a global, decentralized marketplace where currencies are bought and sold. Unlike centralized stock exchanges, forex operates over-the-counter (OTC), meaning trades are made directly between participants through electronic communication networks.
The market runs 24 hours a day, five days a week, across four major trading sessions:
- Sydney
- Tokyo
- London
- New York
These sessions reflect active trading hours for specific regions and their currencies. For example, the London session sees heightened activity for EUR, GBP, and CHF pairs.
Major Tradable Assets in Forex
The most commonly traded instruments in the forex market are currency pairs, which include:
- EUR/USD – Euro / U.S. Dollar
- GBP/USD – British Pound / U.S. Dollar
- USD/JPY – U.S. Dollar / Japanese Yen
- USD/CHF – U.S. Dollar / Swiss Franc
- AUD/USD – Australian Dollar / U.S. Dollar
- USD/CAD – U.S. Dollar / Canadian Dollar
- NZD/USD – New Zealand Dollar / U.S. Dollar
Apart from currencies, traders can also engage in commodities like gold, silver, crude oil, and natural gas—often traded as pairs like XAU/USD. These assets serve as a hedge against inflation and market volatility.
Forex Terminology Every Beginner Should Know
To navigate forex trading effectively, it’s important to understand key terms such as:
- Pip: The smallest price move a currency pair can make.
- Lot: The volume or size of a trade.
- Ask Price: The price at which a broker sells a currency.
- Bid Price: The price at which a broker buys a currency.
- Short/Long: Selling or buying a currency pair.
- Bullish/Bearish: Market sentiment that predicts upward or downward movement.
Becoming familiar with this terminology will help you read charts, apply strategies, and make informed decisions.
Practice with Demo Trading
Before risking real money, it’s advisable to start with a demo account. This allows you to:
- Practice trade execution
- Understand platform features
- Test strategies without financial risk
A demo account replicates live market conditions, helping beginners build confidence before transitioning to real trading.
Start Small with Real Trading
Once you’re comfortable with the demo, move to a small live account, starting with a low deposit.
This helps you:
- Encourage discipline
- Limit potential losses
- Begin building consistency
Focus on setting realistic profit goals and maintaining emotional control. This phase is crucial for laying the foundation for long-term trading success.
Here is the extracted text from the image:
Understand Leverage and Margin
Leverage allows traders to open positions much larger than their account balance. For example, with 1:100 leverage, a $100 deposit can control a $10,000 trade.
While leverage can magnify profits, it also increases risk. Misusing leverage can lead to:
- Rapid losses
- Margin calls
- Account liquidation
Always use leverage cautiously, especially when starting out.
Master Discipline and Patience
Two of the most overlooked yet vital components of successful trading are discipline and patience.
- Discipline helps you follow your trading plan without letting emotions take over.
- Patience ensures you wait for ideal setups rather than forcing trades based on excitement or fear.
These qualities reduce impulsive trading and improve your overall consistency.
Conclusion
Forex trading is a rewarding yet challenging endeavor. As a beginner, it’s essential to build strong fundamentals—understand market mechanics, master key terms, practice risk-free on demo accounts, and gradually transition to live trading.
Focus on developing your trading discipline, refining strategies, and managing risks wisely. With consistent effort and a patient approach, you can evolve from a novice trader into a confident market participant.
Stay tuned to Investment Spot for more practical insights, strategy guides, and educational resources to support your forex trading journey.
