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Welcome to "SDSANJAR Management". Established by Sandjar Ikramov

Welcome to "SDSANJAR Management". Established by Sandjar Ikramov

Welcome to "SDSANJAR Management". Established by Sandjar IkramovWelcome to "SDSANJAR Management". Established by Sandjar Ikramov

FOREX (Foreign Exchange)

What Is Forex?

  1. Largest and regulated financial market in the world.
  2. Cash-bank market established in 1971 when floating rates began to materialize “interbank” or over the counter (OTC) market.
  3. Main trading Centers are Sydney, Tokyo, Frankfurt, London & New York
  4. Daily turnover increased from $5 billion in 1977 to $5 trillion. Compare: The NYSE trades only &25 billion per day.

Features of Forex

  1. Can be part time
  2. Forex trading can start with small amount of money
  3. Trades can happen in either direction
  4. Trading occurs in all time zones in the world
  5. Potential to profit from move either up or down.
  6. High liquidity 
  7. Leverage 
  8. 24-hour access 

Currency Pairs

  1. Currency Pairs are always traded in pairs such as the EUR/USD or Euro vs. US Dollar – when you buy one currency and simultaneously sell the other 
  2. Currency Price is the result of comparisons between the values of two currencies such as the EUR/USD 1.0650 Meaning that 1 Euro is worth or getting 1.0650 US Dollars. The first named currency is called the Base Currency which is the Euro.

Lot, Pip & Spread

  1. Lot – A lot is the size of the currency unit to be traded. One standard lot is worth 100,000 (1.0) units of the base currency,  a mini lot is 10,000 (0.1)
  2. Pip – the smallest unit of price for any foreign currency is known as the percentage in point or pip (1/100 of a cent). Since prices are quoted to the forth decimal point in the forex market, a 1 pip move the EURUSD would be the result of the following price move: from 1.2224 to 1.2225.
  3. The Bid, the Ask, and the Spread. A quote consists of two prices like so: 1.4387 Bid and 1.4391 Ask which means that you buy at ASK and sell at Bid. 
  4. How Forex Brokers Operate. Are they on Your side? Brokers make money on spread. Normal: 3-4 Pips

Currency Pair Types

Major Pairs -  Pair with US Dollar.

Cross Pairs – Combination of most popular pairs which do not contain USD

Exotic Pairs – Currency of an emerging Economy


  • Major Pairs

US Dollar vs. Japanese Yen (USDJPY)

Euro vs. US Dollar (EURUSD)

British Pound vs. US Dollar (GBPUSD)

US Dollar vs. Canadian Dollar (USDCAD)

Australian Dollar vs. US Dollar (AUDUSD)

US Dollar vs. Swiss Franc (USDCHF)

New Zealand Dollar vs. US Dollar (NZDUSD)


  • Cross Pairs

AUDNZD, AUDCAD, AUDCHF, AUDJPY;

CHFJPY;

EURGBP, EURAUD, AURCHF, EURJPY, EURNZD, EURCAD;

GBPCHF, GBPJPY; GBPAUD, GBPCAD, GBPNZD;

CADCHF, CADJPY;

NZDCAD, NZDCHF, NZDJPY.


  • Exotic Pairs

USDSEK (Swedish Krona)

USDNOK (Norwegian Krona)

USDDKK (Danish Krona)

USDZAR (South African rant)

USDTRY (Turkish Lira)

USDRUB (Russian rubble)

USDCNH (Chinese yuan)

USDCZK (Czech Krona) etc.

Forex Hours

Forex is open 24 hours per day, 5 days a week;

Main Trading Sessions are Sydney, Tokyo, London, and New York;

London is the most active foreign exchange center handling over 30% of all Forex transactions;

Together the four centers account for more than 60% of the total Forex transactions.

Introduction to Forex Analysis

Bullish and Bearish

  • LONG (Bullish, Buyer) - When we go long it means we are buying the market and so we want the market to rise so that we can then sell back our position at a higher price than we bought for. This means we are buying the first currency in the pair and selling the second. So, if we buy the EURUSD and the euro strengthens relative to the U.S. dollar, we will be in a profitable trade.
  • SHORT (Bearish, Seller) – When we go short it means we are selling the market and so we want the market to fall so that we can then buy back our position at a lower price than we sold it for. This means we are selling the first currency in the pair and buying the second. So, if we sell the GBPUSD and the British pound weakens relative to the U.S. dollar, we will be in a profitable trade.

Types of trading styles

  • Technical Trading - Technical trading, or technical analysis, involved analysis of a market’s price chart for making one’s trading decisions. Technical analysis traders use price patterns or ‘technical signals’ to trade the market with an edge. 
  • Fundamental Trading - Fundamental trading, or news trading, is a trading technique wherein traders rely heavily on market news to make their trading analysis and predictions. Fundamental news does ‘drive’ price movement, but often times the market will react differently than what a particular news release would imply due to the fact that market participants often buy on expectations of future events and sell once the reality of said future event occurs. 
  • Day Trading.
  • Scalping.
  • Swing Trading.
  • Range Trading.
  • Trend trading etc

Type of Orders

  • Market order - A market order is an order that is placed ‘at the market current price’ and it’s executed instantly at the best available price.
  • Limit Entry order (Buy Limit & Sell Limit) – A limit entry order is placed to either buy below the current market price or sell above the current market price. 
  • Stop Entry order (Buy Stop & Sell Stop) – A stop-entry order is placed to buy above the current market price or sell below it. For example, if you want to trade long but you want to enter on a breakout of a resistance area, you would place your buy stop just above the resistance and you would get filled as price moves up into your stop entry order. The opposite holds true for a sell-stop entry if you want to sell the market.
  • Stop Loss order – A stop-loss order is an order that is connected to a trade for the purpose of preventing further losses if the price moves beyond a level that you specify. The stop-loss is perhaps the most important order in Forex trading since it gives you the ability to control your risk and limit losses. This order remains in effect until the position is liquidated or you modify or cancel the stop-loss order.


Technical analysis

  • Technical analysis is the study of the price movement on a chart of a particular Forex currency pair or other market. We can think of technical analysis or Technical analysis for short, as a sort of framework that traders use to study and make use of the price movement of a market. The primary reason that traders use Technical analysis is to make predictions about future price movement based on past price movement.


Fundamental analysis

  • Fundamental analysis is the study of how global economic news and other news events affect financial markets. Fundamental analysis encompasses any news event, social force, economic announcement, Federal policy change, company earnings and news, and perhaps the most important piece of Fundamental data applicable to the Forex market, which is a country’s interest rates and interest rate policy.

Candle Stick

  • Candlestick charts show the same information as a bar chart but in a graphical format that is more fun to look at. Candlestick charts indicate the high and low of the given time period just as bar charts do, with a vertical line. The top vertical line is called the upper shadow while the bottom vertical line is called the lower shadow; you might also see the upper and lower shadows referred to as “wicks”. The main difference lies in how candlestick charts display the opening and closing price. The large block in the middle of the candlestick indicates the range between the opening and closing price. Traditionally this block is called the “real body”.

Common Forex trading Mistakes And Traps

There are common mistakes and ‘traps’ that give nearly all traders trouble at some point in their trading careers. So, let’s cover the most common mistakes that traders make which keep them from making money in the markets:

Analysis-paralysis

There is a virtually unlimited amount of Forex news variables that can distract a trader, as well as tons and tons of trading systems and trading software. You’ll need to sift through all of these variables and forge a trading strategy that is simple yet effective, warning; this can be a very a difficult task for beginner traders.

The reason why, is that most traders seem to think that ‘more is better’, when in reality ‘more’ is actually worse, as it relates to Forex trading. There really is no need to sit in front of your computer for hours on end analysing Forex news reports or numerous indicators. My trading philosophy is that all variables that affect a market’s price movement are reflected via the price action on a price chart. So, spending your time and money on trading software, systems, or analysing news variables is simply a waste. Furthermore, many traders get analysis-paralysis, this occurs when a trader tries to analyse so many market variables that they exhaust themselves to the point of making silly emotional trading mistakes.

Over-trading

Most traders do not make money in the markets over the long-run for one simple reason: they trade way too much. One curious fact of trading is that most traders do very well on demo accounts, but then when they start trading real money they do horribly. The reason for this is that in demo trading there is virtually no emotion involved since your real money is not on the line. So, this goes to show that emotion is the #1 destroyer of trading success. Traders who over-trade are operating purely on emotion.

Trading when your pre-defined trading edge is not actually present is over-trading. Trading if you have no trading plan or have not mastered a trading edge yet is over-trading. Essentially, you need to know EXACTLY what you’re looking for in the market and then ONLY trade when your edge is present. Trading too much causes you to rack up transaction costs (spreads or commissions), and it also causes you to lose money a lot faster since you are purely gambling in the market. You need to take a calm and calculated approached to the market, not a drunken-gamblers approach…which seems to be the favoured approach of many traders.

Not applying risk reward and money management correctly

Risk management is critical to achieving success in the markets. Risk management involves controlling your risk per trade to a level that is tolerable for you. Most traders ignore the fact that they COULD lose on ANY TRADE. If you know and accept that you could lose on any trade…why would you EVER risk more than you were comfortable with losing??? Yet traders make this mistake time and time again…the mistake of risking too much money per trade. It only takes one over-leveraged trade that goes against you to set off a chain of emotional trading errors that wipes out your trading account a lot faster than you think. Check out this cool article on Forex money management for more.

No trading plan and no routine or discipline

Not having a Forex trading plan is perhaps the most prevalent trading mistake the Forex traders make. Many traders seem to think that they will create a trading plan “later on” or after they start making money or that they simply don’t need one or can just keep it “in their heads”. All of these rationalizations are simply keeping traders from achieving the success they so badly desire. If you don’t have a Forex trading plan that details all of your actions in the market as well as your overall trading approach and strategy, you will be far more likely to operate emotionally and from a gambling mind-set. Beginner traders especially need a Forex trading plan to solidify their trading strategy and to create a guide that they use to trade the market from, and you can’t keep it in your head…you need to physically write out your trading plan and read it every day you trade.

Trading real money too soon or gambling instead of trading

The urge to jump into the market and start trading real money is often too much for most traders to withstand. However, the truth is that until you have mastered an effective Forex trading strategy like price action trading, you really should not be trading real money. By “mastering” the strategy, I mean you should be consistently successful with it on a demo account for a period of 3 to 6 months or more, prior to going live. However, you don’t want to use demo account trading as a crutch…trading a real account is different due to the real emotions involved, so just be sure you switch to real-money trading after you have achieved success on demo…don’t be afraid of trading real money, because eventually you will need to make the switch to real money trading.

Also, be sure you are not just gambling your money away. Doing the things we discussed above; over-trading, over-leveraging, not having a trading plan, etc., these are all things that gambling traders do. Traders who don’t gamble in the markets are calm and calculating…they have a trading plan, a trading journal, and they know exactly what their trading edge is and when to trade it.