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12:19
Sajid Ali
This is our second post in the series, Forex for Newbies. If you are completely new to trading, you will need to read these posts in order to gain maximum effect.
In order to trade forex using Elliott Wave, you need to purchase and read the Elliott Wave Principle book first in order to predict market turns and direction.
We are trading from an Elliott Wave perspective, so the first post necessarily covered the basics of the Elliott Wave Principle, and pointed towards useful resources such as the free online History’s Hidden Engine movie which explains the concept of Elliott Waves so well.
Once the basics of the Elliott Wave Principle are understood, it can be seen that it can be used to predict market turns and direction. This is powerful information and you can use this to trade forex online from the comfort of your own home, in your pyjama’s if you like! Before beginning to actually trade, you will need to learn some basic terminology and play with some online trading platforms.
Currencies are always traded in pairs, as the value of one currency is determined by comparing it to another. The majority of currency pairs will have the USD included, and if not are termed ‘cross currencies’, such GBP/EUR.
When you make a trade, you are placing an order. If you think the market will move up, you want to place a ‘buy’ order. If you think the market will move down, you want to place a ‘sell’ order. The market moves all the time. The smallest move is called a ‘pip’, this is the number furthest to the right of the decimal place in that currency pair. For example, currently the EUR/USD is at 1.47024. If it moves up one pip, it will be at 1.47025, if it moves down one pip it will be at 1.47023.
We recommend you watch modules 1 and 2 of David Waring’s excellent training videos at informedtrades.com next. These excellent videos give clear explanations of all the basics of trading forex online. When David advises to open a demo account, do so and have fun playing with it! Underneath each video is text of what David has said, go back and review this after watching each segment. Make notes as you go, this will help reinforce your learning faster.
For an Elliott Wave trader, this is where we would stop watching David’s excellent trading modules. Further modules focus on what moves the forex market, relying on major economic indicators such as interest rates, balance of payments, and a country’s monetary policy. The Elliott Wave Principle states that it is not these things that move markets, it is group psychology. Your reading of the Elliott Wave Principle book, and watching the movie History’s Hidden Engine, has outlined this clearly.
Now you understand some basic terminology, and can place and close a trade on an online platform, our next article will be on how to choose your online trading platform.
Have fun playing with your demo account! Happy trading!
Elliott Wave Principle practitioner, forex trader, and reporter on current economic and socionomic events.
In order to trade forex using Elliott Wave, you need to purchase and read the Elliott Wave Principle book first in order to predict market turns and direction.
We are trading from an Elliott Wave perspective, so the first post necessarily covered the basics of the Elliott Wave Principle, and pointed towards useful resources such as the free online History’s Hidden Engine movie which explains the concept of Elliott Waves so well.
Once the basics of the Elliott Wave Principle are understood, it can be seen that it can be used to predict market turns and direction. This is powerful information and you can use this to trade forex online from the comfort of your own home, in your pyjama’s if you like! Before beginning to actually trade, you will need to learn some basic terminology and play with some online trading platforms.
Currencies are always traded in pairs, as the value of one currency is determined by comparing it to another. The majority of currency pairs will have the USD included, and if not are termed ‘cross currencies’, such GBP/EUR.
When you make a trade, you are placing an order. If you think the market will move up, you want to place a ‘buy’ order. If you think the market will move down, you want to place a ‘sell’ order. The market moves all the time. The smallest move is called a ‘pip’, this is the number furthest to the right of the decimal place in that currency pair. For example, currently the EUR/USD is at 1.47024. If it moves up one pip, it will be at 1.47025, if it moves down one pip it will be at 1.47023.
We recommend you watch modules 1 and 2 of David Waring’s excellent training videos at informedtrades.com next. These excellent videos give clear explanations of all the basics of trading forex online. When David advises to open a demo account, do so and have fun playing with it! Underneath each video is text of what David has said, go back and review this after watching each segment. Make notes as you go, this will help reinforce your learning faster.
For an Elliott Wave trader, this is where we would stop watching David’s excellent trading modules. Further modules focus on what moves the forex market, relying on major economic indicators such as interest rates, balance of payments, and a country’s monetary policy. The Elliott Wave Principle states that it is not these things that move markets, it is group psychology. Your reading of the Elliott Wave Principle book, and watching the movie History’s Hidden Engine, has outlined this clearly.
Now you understand some basic terminology, and can place and close a trade on an online platform, our next article will be on how to choose your online trading platform.
Have fun playing with your demo account! Happy trading!
Elliott Wave Principle practitioner, forex trader, and reporter on current economic and socionomic events.
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