Beginning Trader Flashcards
What are pips
points in percentage
What decimal place is the pips in ?
fourth decimal place
for joy which decimal do you look at ?
the second decimal place
How many cents per pip is a standard lot
$10 per pip
How much per pip for a mini lot
$ 1.00 per pip
How much per pip for a micro lot
10 cents per pip
Pair moved 60 pips off of a 0.01 lot size , how much did you make.
$6.00 profit
What is a broker ?
Broker is the “ bank” , they loan money
What is a leverage
Leverage is the amount of free room to trade .
What is a margin call
When you overleverage
What is market execution ?
Go straight into the market
What is bullish
when the trade is buying
what is bearish
when the trade is bearing
Stop loss
the price that takes you out of the market
What is a limit
The price in which the currency cannot go above
what is a risk
how much you want to risk in a trade
what is a reward
the amount of pips you want to win in a trade
When usdxxx increases , what happens with pairs that have used as a quote
The pairs with use as a quote decreases
What is a bid
Best price for a sell ( would be a lower number )
what is a ask
Best price for a buy ( higher number )
What is a spread ?
dIFFERENCE BETWEEN ASK AND BUY .
what us the recommended leverage for beginners ?
1: 200
At what percentage will you be removed from the trade
70%
What is a buy stop ?
When you place a order above price and it continues upward ?
What is a sell stop
when you place a order below current price and it continues downward
What is a buy limit
A buy limit is when you place a price below current
what is a sell limit
When you place a price above current for a favorable price
What is a entry
The point in which you enter the market
What is day trading ?
Hold it for 1-3 days
what is scalping
scalping is when you actively watch the markets
what is technical analysis
technical analysis is analysis of previous movements
Japanese candlesticks
The candlesticks that the markets use
What does a buy candle look like
open at the bottom and close at the top
what does a sell look like
open at the top and close at the bottom
What is a doji
doji indicates that the market is indecisive , not that much space btw open and close
what does upper shadow
upper shadow describe the top wick
What kind of signals does candlesticks give you
tell you whether to buy or sell
bearish engulfing
when a sell candle engulfs a buy one
bullish engulfingg
When a buy candle engulfs a sell
What is a hammer
A hammer is when the candle body is short but the bottom or top wick is long
Dark cloud cover
blue candle cover in the middle of previous candles . / opens @ a new high
What is a uptrend
higher highs ///higher lows
what is a downtrend
Lower highs/lows
what is a sideway Trend
pair cannot break a certain support / resistance
what is reversal
A reversal is a change in the overall direction of the trend
what is a retracement
a short term reversal
how does retracements help entry points
helps you find a better one
what is time frame analysis
top down analysis from 4hr to 30
if the overall trend is a buy ————–
retracements
which timeframe should I look at for support and resistance lines
4 hr time frame
What is fundamental analysis ?
Fundamental analysis is when you view the news/ forex factory for affects on the markets ..
What is nfp
non form payroll
