Forex For Noobs - Trading Currency Made Simple Visit our site at http://daytradervideo.com Free 5 Day Video Beginner Boot Camp at the site above. This is part two of our series about forex for beginning traders. In this video we talk about some of the necessary tools required for forex trading. Keep in mind that this is the Forex for noobs version and therefore we are starting at the very beginning. The first thing that you will need is going to be a charting platform. The same thing holds true for a data feed. Let me start by explaining each of them. This will be explained as simple as possible in forex for noobs style. The charting platform is where you will be able to display all of your charts. You can create charts within the platform and it's also used to connect to your broker so that you can execute trades. In order to get price bars to plot on your charts you will need a data feed. The data feed plots the transactions that happen in the market in the form of price bars. In the video above my charting platform is NinjaTrader. This is actually my charting platform of choice. The broker that I'm setup through on this particular account amp futures. Chart Setup So, if you notice here on the bottom horizontal access we have time and on the vertical axis is price Price is measure in a unit we call pips. Example Move: So, the price is 1.32XX XX = pips If we have a move from 1.3220 - 1.3230 that's 10 pips 12.50 per pip x 10 = x at 1 contract How do you get paid? At the end of the day you'll finish up $x amount up or down and by midnight your broker will settle your account and the next morning you'll have more money in your trading account. In order to open a trading account you need something anywhere from 3k on up margins are anywhere as low as $500 per contract. Obviously you want a bit more than that because when you fall below the required amount they'll do what's called a margin call and will auto close your position. In fact I've had one of these when I first started and it was pretty frustrating. I took a trade and didn't realize that the market was about to close. In the pre-market and post market you need $5k per contract. So, when I took the trade it went against me immediately and then the market closed and I was immediately closed out of the position and as soon as that happened it headed straight for my target. I hope you have enjoyed Forex for Noobs. Another term for forex is trading currency. It pretty much all means the same.
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