What is a PIPS?

In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1%.

In EURO/USD, a 3 pip spread is quoted as 1.2500/1.2503

Among the major currencies, the only exception to that rule is the Japanese yen. In USD/JPY, the quotation is only taken out to two decimal points (i.e. to 1/100 th of yen, as opposed to 1/1000th with other major currencies).

In USD/JPY, a 3 pip spread is quoted as 114.05/114.08

PIPS also shows how much u earn and loss at the realtime of your trading.As my advise to newbies in FOREX just stick to 5-10 pips closing per trade.This will slowly build up your confident level to target more pips next time.Most of the great trader will targeting 50 over pips.Sometimes can catch more than 100 over pips depend on how wise their trading skills and system.

Basic things u must know before opening any trade; what is BUY and SELL. Open BUY position if u think (depend on chart and system u use) the pair price will go up while open SELL position if u think the pair price will go down. Some broker allow trader to open BUY and SELL at the same time.This up and down price was tremendously rocking like crazy after big news was released.Be carefull to trade using news as we could not expect how much the impact will hit our trading.

The BIG Trading Factors

The importance of economic data releases and government events will depend on the current market's focus. For example, trade data have been important in the past, but are basically ignored right now. Since the U.S Federal Reserve has steadily been raising interest rates for the past year, interest rates and inflation reports have been in the spotlight. The market focus constantly changes so its important that you're aware of what the "it" factor is at the moment.

There are the top factors that have a major market impact on a regular basis:

* US employment data
* FOMC meetings
* US Federal Reserve Chairman's testimoy
* US trade balance
* US GDP
* ECB rate decisions
* US Consumer Price Index
* US retail sales
* Japan Tankan Index

FOREX Glossary

Here are some of the most common terms used in FOREX trading.

Ask Price – Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote – e.g. EUR/USD 1.1965 / 68 – means that one euro can be bought for 1.1968 UD dollars.

Bar Chart – A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information – the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.

Base Currency – is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote - USD/JPY 112.13 – US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen.

Bid Price – is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote - e.g. EUR/USD 1.1965 / 68 – means that one euro can be sold for 1.1965 UD dollars.

Bid/Ask Spread – is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker.

Broker – the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices.


Candlestick Chart - A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick – a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising.

Cross Currency – A currency pair that does not include US dollars – e.g. EUR/GBP.

Currency Pair – Two currencies involved in a FOREX transaction – e.g. EUR/USD.

Economic Indicator – A statistical report issued by governments or academic institutions indicating economic conditions within a country.

First In First Out (FIFO) – refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened.

Foreign Exchange (FOREX, FX) – Simultaneously buying one currency and selling another.

Fundamental Analysis – Analysis of political and economic conditions that can affect currency prices.

Leverage or Margin – The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 – you can trade currency worth 100 times the amount of your deposit.

Limit Order – An order to buy or sell when the price reaches a specified level.

Lot – The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars.

Major Currency – The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies.

Minor Currency – The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies.

One Cancels the Other (OCO) – Two orders placed simultaneously with instructions to cancel the second order on execution of the first.

Open Position – An active trade that has not been closed.

Pips or Points – The smallest unit a currency can be traded in.

Quote Currency – The second currency in a currency pair. In the currency pair USD/EUR the euro is the quote currency.

Rollover – Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials.

Technical Analysis – Analysis of historical market data to predict future movements in the market.

Tick – The minimum change in price.

Transaction Cost – The cost of a FOREX transaction – typically the spread between bid and ask prices.

Volatility – A statistical measure indicating the tendency of sharp price movements within a period of time.

Quote of The Day

90% of new forex traders lose all their money within the first 3 months.

This means 90% of all forex traders don’t know what the heck they’re doing! They just jump right in and rely on luck, only to end up giving away all their money to the other 10%.

The beauty of FOREX for me

Mastering the emotions of trading is more difficult than mastering the technical skills

Why FOREX?

I'm sure most of you wonder why i'm stating and focusing here about trade forex for your life? Yeah here is the best part of FOREX trading;

1) Market open 24-hours a day 24/5 (from Sunday evening to Friday afternoon EST)
2) Bigger and more liquidity than stock market
3) Ability to control profit and losses based on each individual knowledge
4) Power of leverage-higher leverage lesser capital so pick only establised broker.
5) 24 hours real-time trading just in front of your PC.
6) No middleman, you are the boss and control everything.
7) You can operate from home, work, vacation or anywhere else in the world as long as you have an Internet connection.
8) Unlimited buyers and sellers

Requirement to start learn and trade FOREX

1. You
2. Computer
3. Internet connection
4. Desk (or sofa) or even your bed

Steps to trade and start print money from your PC

1. Walk ten steps and
2. Sit in front of your computer (or sit on your sofa and place laptop on your lap)
3. Turn on computer and make sure Internet connection is working
4. Open charts and trading platform
5. Trade currencies
6. Make money!

Ok thats all for now wait for more and more guidelines to learn and trade FOREX

Introduction to FOREX for beginner

Hello to all visitors. Gosh you come to the right place at FOREX one stop centre provided by jutaONEfami. I hope I can give an idea to any beginner those interested to start trade FOREX for their life. FOREX trading actually could turn the way of our life.Forget all about working for other people (BOSS) all the working days 8 hours perday.I'm now looking forward to be a full time trader as I can decide when and how to work within my desired time.Be the boss of our own life.No more calling others boss.

Ok now lets move on to FOREX world.
The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion — 30 times larger than the combined volume of all U.S. equity markets.

"Foreign Exchange" is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar EURO/RUSD) or US Dollar/Japanese Yen (USD/JPY). For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.

A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.

Introduction to Technical Analysis

Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a technician, though most will also keep a close watch on volume and open interest in futures contracts. The bottom line when utilizing any type of analytical method, technical or otherwise, is to stick to the basics, which are methodologies with a proven track record over a long period. After finding a trading system that works for you, the more esoteric fields of study can then be incorporated into your trading toolbox.

Introduction to Fundamental Analysis

Fundamental analysis refers to the study of the core underlying elements that influence the economy of a particular entity. It is a method of study that attempts to predict price action and market trends by analyzing economic indicators, government policy and societal factors (to name just a few elements) within a business cycle framework. If you think of the financial markets as a big clock, the fundamentals are the gears and springs that move the hands around the face. Anyone walking down the street can look at this clock and tell you what time it is now, but the fundamentalist can tell you how it came to be this time and more importantly, what time (or more precisely, what price) it will be in the future.