Forex Trading for Beginners: Step-by-Step Guide & Transcript

[00:04] because forex is a scam, but because no one teaches them the right way to trade. This is the beginner's guide I wish I had when I started. If you truly understand what I'm about to show you, you'll already be ahead of most traders. I've been trading in the markets for 17

[00:18] years, and it was undoubtedly one of the best decisions I ever made. It gave me the confidence and flexibility to live the way I choose, and most importantly, more time with my family. I won't show you exaggerated numbers on the screen, and I won't try to sell you an

[00:31] unrealistic dream. Yes, I've achieved good results, but that's not why you should learn from me. The real reason is my learning method. After more than a decade of working in the markets, I decided to create this channel, and since then, I've been helping struggling traders

[00:45] develop their skills and make tangible progress in their trading. So, if you're serious about learning this field the right way, follow along because in this video, I'll explain everything you need to know to start forex trading, starting with: What is forex trading? Before

[01:01] strategies, charts, and trading opportunities, which I will explain in detail, you must first understand what you are actually trading. Those who overlook this step often encounter the greatest difficulties. Simply put, the Forex market is where currencies are bought and sold.

[01:17] Participants include retail traders, banks, and financial institutions, retail traders, banks, and financial institutions, all trading one currency for another. That's the market in its simplest form. In fact, you may have already dealt with Forex. If you travel

[01:30] on vacation or visit a country that uses a different currency, you will need to convert your currency to that country's currency, such as US dollars to euros. For traders, profiting from market movements depends on the fact that currencies are always traded in pairs. When you execute a trade, you

[01:44] buy one currency and sell another simultaneously. The results are based on the exchange rate movement between these two currencies—buying at a lower price and selling at a higher price. But which currency pairs should you focus on? I recommend for beginners to concentrate on these seven

[01:57] major pairs only, as they all include the US dollar, making them among the most common pairs. Liquidity and ease of trading and monitoring are key factors. Now let's learn some basic terms. When the market is said to be rising, this is known as an uptrend, and when the market is said to be falling,

[02:11] this is known as a downtrend. Buy when rising and sell when falling. It's important to know that you can profit from market movements, whether the price is rising or falling, provided your analysis of the direction of movement is correct. Where does all this trading take place? It takes place in the spot forex market.

[02:26] Unlike the stock market, forex doesn't rely on a single central exchange. Instead, it's a global network of banks, brokers, and financial institutions connected electronically. This means that trading is available almost anywhere and at different times throughout the week. The market operates 24

[02:39] hours a day, five days a week, providing multiple opportunities to monitor price movements. Trading begins in Australia, then moves to Tokyo, followed by the London session, and concludes with the New York session. Personally, I followed by the London session, and concludes with the New York session. Personally, I

[02:52] highest levels of activity and liquidity, and they also align with my time zone. To trade in the morning and complete my day, the Forex market is enormous, with trillions of dollars traded daily. This means high levels of supply,

[03:06] demand, and liquidity, which are elements I rely on in my trading strategies, which I will explain later. Now that you have an idea of ​​how the market works, the next question is: how can you achieve results from trading, and what factors influence this? If we simplify things as much as possible,

[03:19] you'll find that it depends on two main factors: your skill level and the amount of capital you trade with. When these two factors come together, the result is the account's performance. But I don't want you to focus on profits and financial results right now; rather, focus on developing your skills. That's all that matters.

[03:32] Generally, account performance is affected by two main factors: the achieved return percentage and the amount of capital used. The larger the account size, the low goals. For example, a 5% return might equal $500 or $5,000, depending on the account size.

[03:47] But in the early stages, the focus should be on... Small profits and gradual growth are crucial. Let's say a trader has a $100,000 account and achieves a consistent 6% monthly return. Over 12 months, their total earnings might reach

[04:02] around $100,000. Of course, this can be achieved with a smaller account, but the this can be achieved with a smaller account, but the Can trading be a positive element in your life? Can it help

[04:15] cover some daily expenses, like weekly shopping? This is the kind of thinking I look at the numbers and start planning trades randomly. A 6% monthly return is not guaranteed. Every trader, myself included, experiences periods of losses, declines in performance, and months when strategies don't work

[04:29] well. This isn't failure; it's a normal part of trading. One of the most important video is that you need to stop thinking like an employee if you want to become a successful trader. As a trader, you need to think more flexibly and forward-looking. One bad month shouldn't break you. What

[04:45] matters is performance throughout the year, confidence in the process, reviewing results quarterly, and adjusting risk management accordingly. One of the best things about trading is that it doesn't require huge sums; even achieving $20 in a single year is possible and might be enough to improve your standard of living and

[04:59] make it more comfortable. Ultimately, trading is simple: buy when prices are low and sell when they are high. The goal is to identify when a currency is undervalued or overvalued to profit from market movements. This is done

[05:12] using fundamental and technical analysis. In fundamental analysis, I focus on interest rates, inflation rates, and GDP data, but frankly, the main focus is on technical analysis, which simply means studying charts, analyzing patterns and

[05:27] probabilities, and understanding market structure. I will teach you how to do all of this step by step later. In my opinion, there are two ways to trade. The first is discretionary trading, which relies to some extent on events and making decisions based on market readings. Systematic trading

[05:42] involves building a trading system based on clear rules. These rules must be met before entering any trade. I personally prefer this approach to dealing with the markets, whether through manual trading or using automated trading systems. In this method, trading becomes simple, but

[05:55] execution is the most difficult part. Therefore, there are four basic steps we need to follow: finding a clear trading advantage, testing it historically, and executing it regularly. Once we have a successful system, we can then expand our trading volume and benefit from the power of compound growth.

[06:08] Now, what is technical analysis? It is simply reading price movements on a chart. We look at historical price data and try to understand why the market moves in a certain way and who is driving the price at each stage. If we can predict the direction of future movement based on

[06:21] previous price movements, we can then be in a position to achieve better results. It is very important to understand Japanese candlesticks. A candlestick gives us four main pieces of information: the opening price, the closing price, the highest price, and the lowest price. In a bearish candlestick, the opening price is

[06:37] at the top and the closing price is at the bottom, while the highest price represents the peak of the movement. The lowest price represents the bottom. Don't worry if it seems complicated; I'll demonstrate this practically on the charts. Each candlestick represents a specific time period, which could be one hour of price movement or a full day, depending on the

[06:51] timeframe used. However, candlesticks are just a simplification of market movement. What you really need to understand is why the market moves the way we see it. I have a trading strategy that helps me understand this process, and that's what we'll move on to shortly. We'll start with practical strategies that

[07:05] enable you to execute trades in the Forex market. Now, let's move on to the practical part: charts, strategy, and trades. All of this starts with the TradingView platform, which is free and you can access it through the link in the description. On the right side,

[07:18] you'll find the Forex pairs I trade, and you can see the major pairs I mentioned at the beginning of the video. You'll also find different timeframes and the ability to add indicators to the chart. On the left side, there are various tools you can

[07:30] use for analysis, such as drawing tools that help you visualize the market. You can also draw charts. Directly on the chart, such as identifying a support level, this helps you decide whether to trade from that level or not. Before we begin with strategies, it's important to understand

[07:43] what we're looking at. These are called Japanese candlesticks, and they accurately illustrate price movement. A red candle means the price is falling, and a green candle means the price is falling, and a green candle means the price is rising. However, there are additional details. In a

[07:57] bearish candle, this represents the opening price, and this is the closing price. In a bullish candle, this represents the opening price, and this is the closing price. Clearly, if the candle closes at a price lower than the opening price, it's considered a bearish candle, and if it closes at a price

[08:12] higher than the opening price, it's considered a bullish candle. represent the highest and lowest prices the price reached during that time period. time period. Each candle represents a specific time frame.

[08:26] If you choose the daily timeframe, each candle represents a full day of price movement. If we go back to the chart, you'll find that the timeframe used here is four hours, meaning each candle represents four hours. From market movement,

[08:45] and returning to this candlestick, we can see that the price started here and ended here, while during that period it dropped to this level and rose to this level.

[08:58] Understanding these details helps you make better trading decisions. Now that this is clear, we can move on to strategies. I have two main trading methods: swing trading and

[09:10] day trading, and then scalping. I will start with day trading and swing trading first, then we will move on to scalping later. I will simplify it for you in three steps: the first step is supply and demand, the second step is trend confirmation, and the third step

[09:25] is trend confirmation, and the third step is identifying entry points for trades. and I will show you how I achieve successful trades like these. I use this strategy in my

[09:37] day trading and swing trading, but you can also use it in scalping, although I have a specific scalping strategy that I will explain later. This method works on any timeframe; here I am using the hourly timeframe. It is important to understand that this concept can be applied within any

[09:49] trading strategy because it is a key foundation. The first step It's because it is a key foundation. The first step It's supply and demand. All I'm looking for is a strong upward price movement. Here you can see one, two, three large, consecutive green candles.

[10:02] If we measure the movement from the bottom to the top, you'll find it's equivalent to about 75 pips. A to the top, you'll find it's equivalent to about 75 pips. A move of this size could represent about 10 to 50 move of this size could represent about 10 to 50 billion in net institutional flows. This

[10:16] large move could reflect a large institutional financial inflow into the market, not from individual traders, but from banks, financial institutions, and hedge funds. Therefore, I identify the demand zone by drawing the area around the red candle that preceded this strong rise. It's preferable to

[10:30] that preceded this strong rise. It's preferable to identify the candle's body. This area becomes a clear area of ​​interest for me. If banks and financial institutions are interested in this level, then I also consider it an important level for trading. Most of the trading volume occurs within the candle's body, and that's why

[10:45] I identify the zones based on the body. But if the candle is small like this, I But if the candle is small like this, I also include the shadow because I don't want to miss any potential trading opportunities. The next step I look for is the fair value gap.

[10:58] look for is the fair value gap. Here's a gap, and another one here. If we follow the movement of the next candle, we'll notice that there isn't a significant gap in significant gap in

[11:25] is considered a fair value gap, i.e., an area of ​​price imbalance. fair value gap wouldn't have formed at all. But since the price didn't return to cover

[11:38] since the price didn't return to cover

[11:52] buyers were so strong that sellers couldn't bring the price back to sellers couldn't bring the price back to those levels. this reinforces the idea that the demand zone is very strong and is

[12:08] likely to be relied upon later as a good buying level. It's also important that We narrow down the supply range and look at the area more broadly. If we extend the demand zone here, we can see that it is indeed a significant level.

[12:25] The price reacted strongly to this level in this area, and also reacted similarly to this area with a pattern very close to what we saw previously. Here, we can observe the formation of two closely spaced bottoms. In another area, almost the same behavior was repeated, followed by the

[12:40] strong move we saw earlier. This gives an additional indication that we have a strong demand level that can be relied upon later for potential buying opportunities. Now we move to the second step, which is confirming

[12:56] the trend, because we always want to trade with the overall market trend. Here, we observe a bottom, then a higher peak, then a higher bottom, then a higher peak, and then the price begins to correct again. It is expected that it will form a new higher bottom at a later stage. These are the swing points in the market. So, this is a

[13:11] swing bottom, then a swing value, then a swing bottom, then a swing value. We can also draw these levels on the chart like this. The purpose of this is that as long as the corrective movement does not break the previous bottom here, the trend The year remains upward,

[13:26] so you can look at the demand zone here. It might not be the strongest, but it's a zone the price has already reached. Or you can look at a stronger demand zone at this red candle below, expecting the price to return to it later. This remains within the

[13:42] upward trend as long as this bottom hasn't been broken. This bottom is still valid, but it's important to understand that the market isn't always this perfect. While recent price action is important, we can also look back at older data. If we look further back, we'll see that we're still in an upward trend

[13:57] even on a larger timeframe. Here we have a bottom, then a higher high, then another higher bottom, then another higher high. So we're still within an upward trend even when looking at a wider range of candles. However, we shouldn't look too far back,

[14:12] as this can complicate the analysis. In this case, it would be better to move to a higher timeframe instead of expanding the same charts. Even in this example, you can see that the price dropped to a low, then formed a new bottom, and then

[14:27] started a new upward trend. Even if the pattern isn't perfect, The market is still forming higher highs and higher lows as the upward trend continues. It's

[14:41] with the overall market trend, as this gives added strength to trading decisions. There's also another tool I sometimes use when trading with this strategy: the CIMA Moving Average. This is great for beginners. We add it to the chart and then

[14:55] double-click on it. It's best to set it to 200. This gives us additional confirmation that we're in an upward trend. When a strong breakout above the moving average occurs, like this one, with a clear price divergence from it, this increases the likelihood of the upward trend continuing. Therefore, if you combine this average

[15:12] with the market structure you're drawing, it will help you trade with the trend and improve your results.

[15:24] actually executing the trade. Looking at the chart, we notice the appearance of several bullish candles, and this is we notice the appearance of several bullish candles, and this is exactly what we want to see. So where do I look for the demand zone? Look for it in the red candle that precedes the strong upward movement.

[15:37] In this case, the candle isn't very large, so rely on the wick to identify the zone. We also have the value spike. The fairness is a crucial element we want to observe. The price is moving away strongly, reaching approximately 62 points in this move. This indicates a significant influx of liquidity into the

[15:53] market, driving the price upwards with considerable force. Therefore, this movement cannot be attributed to small traders but rather to large financial institutions. The next step is to wait for the price to return to this demand zone, which is our focus. Regarding profit-taking and stop-loss orders, let's

[16:06] clarify that as well. For profit-taking, I place it above, but generally, in this example, I will set my profit target at this level. The reason is the clear resistance level here,

[16:18] where the price has been rejected once, twice, or even three times. So why risk it? Why target a higher level if the price hasn't reached it before? I prefer to play it safe, hence my target here. As for the stop-loss, I place it below the

[16:33] demand zone and sometimes below the S/M (Simultaneous Moving Average) to make it safer, as the price may sometimes drop to test the S/M and use it as support before rebounding upwards. This helps increase the probability of a successful trade. Now, there are several ways to enter a trade. I

[16:48] prefer to see a slowdown in momentum when the price reaches the demand zone. If the price gradually drops to this zone, I enter directly at that level and place a pending buy limit order. Then, I hold the trade until the price rises. Some

[17:02] other traders prefer to wait for a clear price reaction and then enter the trade after a confirming bullish candle appears at the demand zone. This approach offers a slightly lower risk-to-reward ratio, but it's acceptable because they want to see confirmation that the demand zone has indeed begun to consolidate.

[17:15] In this case, you can see that the price has risen sharply to reach the profit target you set. Now, let's put all of this together in a complete trading example. Here, we have a low, then a higher high, then a higher low,

[17:28] in a complete trading example. Here, we have a low, then a higher high, then a higher low, then a higher high, and then a higher low. You can see that the market is clearly moving in one direction, so we want to trade with this trend. We also have the SCIM (Sensitive Moving Average) here, and the price is generally moving above it. It's

[17:42] true that the price recently fell below the moving average. Yes, but this isn't a problem as long as the overall trend is still upward. This is normal, and the upward movement can continue. After that, we look for demand zones. For example, we have a demand zone resulting from a strong upward movement, which could have led to a successful trade.

[17:57] We also have another demand zone here that could have yielded a very strong result. And here too, can you notice this zone? A strong upward movement started from this level, creating a strong upward movement started from this level, creating a new demand zone.

[18:13] Everything is going in the direction I want in this trade. As for the stop-loss, I place it below the demand zone, as shown here. As for the take-profit, the zone I target for profit is here at the peak of this

[18:26] for profit is here at the peak of this level. After that, I enter the trade, and when the price surpasses this level, I might move the stop-loss to the entry point so that the trade becomes risk-free. I can also take part of the profit at

[18:40] this level, but these are advanced details in trade management, and you can learn them later through a channel or other videos. As you can see here, the demand zone has reacted in the way I prefer. A strong bounce occurred from this level,

[18:54] providing successful trading opportunities using supply and demand. I've used this strategy for over 10 years, and the following scalping strategy is fundamental to this channel.

[19:07] Now that you're familiar with day trading and swing trading strategies, it's time to move on to scalping. Scalping is fast, yes, it relies on short timeframes and high volatility, and it's more fast, yes, it relies on short timeframes and high volatility, and it's more difficult than other strategies, but I'll explain it to

[19:20] you in the same way, in three steps. Let's talk about the opening range breakout strategy. Although it can be applied at other times, most traders, myself included, often use it at 8:30 AM, the opening time of the New York Stock Exchange. I want you to

[19:34] go to the Indicators section and type "Opening Range," then select the LAX indicator. Next, we go to the settings and adjust them as follows: set the period to as follows: set the period to 15 minutes out of 45

[19:47] UTC and set the time zone to UTC as well. Then, we disable the historical data options, and we're ready. I'm using a five-minute timeframe and will let some candles move. What happens here is that the first 15 minutes of the market opening establish a

[20:01] clear range, where the highest and lowest prices are recorded. If we zoom in, we'll notice that these first candles formed a defined range within the first 15 minutes of the

[20:13] New York session. This gives us an upper and lower boundary for the range. This is roughly the first step, but let's continue. What do I expect next? I expect a breakout and close outside this range. Here, you can see that a breakout and close did occur,

[20:31] but the movement I was focusing on more was the strong and clear breakout. This is the strong breakout here—a strong impulse movement, or displacement. Displacement means a strong price movement that clearly breaks out of the range, just like in the

[20:46] previous examples. This strong breakout created a demand zone at this candle, in addition to the presence of a fair value gap, as we explained earlier. There is a fair value gap there. This is displacement. Displacement means a clear strength in the movement outside the range. The

[21:02] first breakout wasn't very strong, but the second breakout was Strong and clear, this provides a potential entry point for a trade. Now we just need to wait for the price to pull back trade. Now we just need to wait for the price to pull back a little and then move to the second stage, which is

[21:17] trend confirmation. We learned this previously; we want to trade with the trend. So what are we looking for here? Well, we're looking for the trend. We have a bottom here, then you can see a higher high, a higher low, a higher high, a higher low, a higher high, a

[21:29] trend. We have a bottom here, then you can see a higher high, a higher low, a higher high, a higher low, a higher high, a higher low, a higher high, and so on. We stay in the same direction, then we go back down, and then We stay in the same direction, then we go back down, and then ideally, we return to the uptrend.

[21:44] So we are in this trend, and you can see that I have the EMI (EMI 200 period). The price has clearly broken above this level and hasn't tested it. Now we are in a clear uptrend, and

[21:57] as we did before, we can identify this level here and this level here. They represent the bottoms, and as long as the price hasn't fallen below this bottom, we are still in an uptrend and are still

[22:09] below this bottom, we are still in an uptrend and are still looking for buying opportunities. In this case, we are also using the breakout from the opening range (ORB) strategy as an additional confirmation factor. Since we are trading scalps, we need as many

[22:21] confirmation factors as possible because this type of trading is fast, difficult, and frequent. Some traders lose their accounts due to speed and inaccuracy, so you must be very quick and precise in your decisions. I have also developed a trading robot that performs all these operations

[22:35] automatically, and I will talk about it later. Now, all we are looking for is to enter the trade, that is, to execute the third step. We have obtained a close outside the range, and now We have obtained a close outside the range, and now we are waiting for the correction to occur.

[22:51] at the top of the movement range within the demand zone, but at the upper limit of the range. When the price reaches this level, I am ready to enter the trade. As for the target, I must target this level. Here, it was a clear resistance level from which the

[23:09] Here, it was a clear resistance level from which the price bounced once, twice, and three times, and therefore it is likely to bounce from it again. All we have in trading is history, that is, what happened in the past. As for the stop loss, you can place it below the middle of the range, below the bottom of the

[23:23] range, or below the moving average. There are several options for moving the EMI, but I usually place it below the low of the range because the price has dropped here and tested this level twice. Again, I rely on past data and

[23:36] make my decisions based on historical price action with as much flexibility as possible during trading in order to reach the best possible positions. Here you can see that the price touched the zone and then quickly rose immediately, but this doesn't always

[23:52] happen. In some cases, the price might reach your zone and then go straight to your stop loss. This is a normal part of trading; you won't win every trade. But with these two strategies, I think you now have enough to start in the markets

[24:07] and experiment on a progressive account, gradually learning and starting to test the strategy on TradeView. What I mean by testing is using replay mode, where you can go back on the chart and ask yourself what you would have done if you were watching the

[24:22] market at this moment. Then you play the market step by step forward, and if you notice entry opportunities at a certain level that later turn out to be correct, you can record that.

[24:34] For example, you can say, "I follow the rules, and this method works." With me, you can start developing your own strategy. As I mentioned before, this same strategy has been transformed into a trading system used by a number of traders. It was launched several months ago,

[24:49] and if you join the Discord server here, you can see some results and member experiences. They share their performance there and post daily updates. There is a very high level of satisfaction among users with the program. You can see an example of another good trading day with

[25:03] balance growth and seven consecutive days of winning trades. Therefore, you can join the Discord server via the link in the video description. You can also consider subscribing to the trading robot service, which, in my opinion, is one of the easiest ways to start trading. It is said that more

[25:17] than 95% of traders lose, but a percentage of members here have purchased a second copy of the system, which reflects their satisfaction with the experience. In conclusion, it is clear that this was a large amount of information. If you liked the video, support it, subscribe to the channel,

[25:30] and join the free international or VIP room and ask any questions you have. You can also watch this video or this next video, and I will be with you next week.