The Course Flashcards
What is trading?
Trading is an exchange that happens between two people.
When the market is LOW, we enter BUY trades. When the market is HIGH, we enter SELL trades.
What types of currencies are there?
Major, Minor and exotic pairs.
What are major pairs?
Major pairs are currencies that are predominately known around the world.
What are examples of major pairs?
EUR/USD, USD/JPY,GBP/
USD, USD/CHF,
USD/CHF,USD/CAD, AUD/USD.
What are minor pairs?
Minor pairs are currencies that are less dominant in the market.
What are examples of minor pairs?
EUR/GBP, EUR/AUD,GBP/JPY,CHF/JPY, NZD/JPY, GBP/CAD.
What are the different Forex market sessions?
London session:
Movement happens between (7am-3pm)(Morning)
New York session:
Movement happens between (1pm-9pm)(Afternoon)
Sydney session:
Movement happens between (8am-4am)(Evening)
Asian session:
Movement happens between (11pm-3am)
What are the different types of traders in the market?
Scalper
Day Trader
Intra Day trader
Swing Trader
Position trader
What is a scalper?
A scalper is someone that likes to get in and out of the markets very quickly. They place a trade then in a matter of minutes the trade moves and they take take their profits. A scalper normally stays on the market for no longer than 30 mins.
What is a Day trader?
A day trader is someone that is on the market for several hours but does not exceed longer than this, they normally are out of the TRADE before the day ends.
What is a Intra Day trader?
A Intra day trader is someone that likes to hold onto trades for a certain amount of days but it doesn’t go onto weeks.
What is a swing trader?
A swing trader is someone who likes to enter trades and hold them for a number of WEEKS.
What is a position trader?
A position trader is someone who likes to enter trades and hold them for a number of MONTHS going onto a YEAR. These traders are normally well - off and enter trades as long term investments.
What is a lot size?
A lot size simply means how much your willing to risk
What does 1 lot mean?
1 Lot means standard lot, which is 1.00. 1.00 also means that each PIP is equivalent to $10. if the market moves up 10 PIPS, I’ve now made $100.
How do we calculate pips?
By using the FXTM PIP calculator.
What is stop loss?
A stop loss is the safety net that allows you to only lose the amount you are willing to risk.
How much should we risk?
only 1%
What is take profit?
Take profit allows you to take profits without the need to do it practically. It allows you to secure profits automatically.
What is BULLISH?
When the trend is going upwards.
What is BEARISH?
When the trend is going downwards.
What are WICKS?
Wick are the thin lines at the end of the candlestick, they’re used to identify the highest highs of the candlestick at the given
time - frame and also the lowest lows of the candlestick.
Where is the OPEN of a candlestick located?
The OPEN of a BULLISH candlestick is located at the BOTTOM of the candlestick whereas the OPEN of a BEARISH candlestick is located at the TOP of the candlestick.
Where is the CLOSE of a candlestick located?
The CLOSE of a BULLISH candlestick is located at the TOP of the candlestick whereas the CLOSE of a BEARISH candlestick is located at the BOTTOM of the candlestick.
How should your Psychology be when trading?
The trading industry
