Forex Information for Newbies 2

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.

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Getting Started in Trading Forex Information for Newbies with Elliott Wave

Imagine if you will, you have a computer at home with a broadband internet account. You discover that you can do something called “trading forex” online. At the same time, you discover a principle that allows you to predict the direction a forex market will move in. This is very powerful stuff. You could get rich!

A recent discussion with a colleague, who asked what I did with my time at home, led to me wondering about how to convey to a total newbie how to trade forex using the Elliott Wave Principle.

I started by pointing him in the direction of the wonderful online documentary, History’s Hidden Engine at the Socionomics institute. This will give anyone who has never heard of the Elliott Wave Principle a brief overview of the big idea, and how it can relate to market movements.

Next I advised him to purchase a copy of “Elliott Wave Principle” by Frost and Prechter. I use this book as a textbook, on a daily and even hourly basis. It seems there is always something new to learn about the Elliott Wave Principle, and this book is invaluable as a thorough guide. I advised him to read it at least twice.

The third step would be to learn how online accounts work. You need to learn the jargon; what’s a pip? A buy? A sell? What’s a market order? How about stops and limits?

The next step would be to open an online demo account with an online forex trading company. This is where you can put your new knowledge to the test, with no financial risk at all. My first demo account I completely rorted within a couple of weeks, getting many mistakes out of my system and learning some very valuable lessons in the process.

This process would take a newbie at least two months, from beginning to end. It is important if you are serious about using online forex trading to make decent money, to not rush the initial learning process. If you go too fast you will make too many mistakes with real money, and so not only will you lose financially but this could sour your outlook on how useful the Elliott Wave Principle is in making money online.

So, take it easy, be patient. The Elliott Wave Principle is at it’s heart fairly straightforward and obvious. But when it comes to daily market movements there are many subtleties to consider, and without a good understanding of how the market can move you could stand to lose financially.

But, if you take the time to learn how to apply the Elliott Wave Principle correctly, you could free yourself from wage slavery and give you and your family a decent income from anywhere you choose to be on the globe. All you need is a computer, a reliable broadband connection, and your textbook the Elliott Wave Principle.

Here at forexinfo.us I will be writing future articles on guiding newbies through the process of becoming proficient and profitable online forex traders. Watch this space!

Elliott Wave Principle practitioner, forex trader, and reporter on current economic and socionomic events.

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