📊 Percentage in Points (PIP)

PIP is the value of change in a pair. It reflects the price movement that occurs with the exchange rate in the Forex market.

So, how do you calculate it?

📝 Sample:

• BUY SIGNAL @ 1.24683
• TP (Take Profit): 1.25683
• SL (Stop Loss): 1.24583

Your TP is +100 PIPs and your SL is -10 PIPs 😌

⚙️ Using Leverage in Trading

Leverage enables your trading strategy by using borrowed money. The goal? To make big profits!

📈 Leverage Types:

• 1:1 = 100%
• 1:50 = 2%
• 1:100 = 1%
• 1:200 = 0.5%
• 1:1000 = 0.1%

⚠️ Remember: Leverage comes with its dangers if you don’t know how to use it properly.

You can overtrade, increase your chances of a Margin Call (Total Loss), and the higher the leverage, the higher the risks.

🔍 Always know your risks before entering a trade, okay!

🔄 Swapping in Forex

A swap charge is imposed by the broker if a position is carried over to the next day without being closed.

💡 Positive and negative swaps depend on the number of lots, and the rates can change over time.

This is why I always recommend my traders to open an Islamic Account—yes, that means it’s SWAP FREE!

✅ No swapping = No extra charges by the broker 😁

💼 Bid, Ask & Spread

These are essential terms you must familiarize yourself with before starting to trade on any platform:

• 🔻 Bid: The price you SELL
• 🔺 Ask: The price you BUY (usually higher than the Bid)
• 💸 Spread: The broker’s charges

Every pair has a different spread. Some brokers use fixed spreads, while others charge with floating spreads, or sometimes a combination of both.

⚠️ How to Reduce Risks When Trading

You must ALWAYS set your Stop Loss (SL) and Take Profit (TP) on each entry. This is the only way to calculate the risks accurately and make informed decisions.

💰 Take Profit (TP)

• Set a target and secure your profit.
• Can be divided into 20 PIPs to 100 PIPs depending on your strategy.

💸 Stop Loss (SL)

• Limit your losses to avoid significant setbacks.
• Typically set from 30 PIPs to 50 PIPs below your entry.

📊 Use a Step Win Ratio!

Example Ratio:
1:2 = 10 PIPs (SL) : 20 PIPs (TP)

🔒 Setting Your Breakeven (BE)

Breakeven (BE) is a crucial step to protect your capital from experiencing any loss after making profits!

💡 What is Breakeven?

It’s about making small profits while minimizing losses when trading.

🔐 How to Set Your Breakeven:

• You can set your BE by shifting your Stop Loss (SL) to just before the price action.

📊 Example:

• Left: Stop Loss (SL)
• Right: After setting Break Even (BE)

I hope this was useful to you! 🤟

🔄 8 Time Frames in Forex!

1. ⏳ M5 (5 minutes)

• Ideal for short-term trends. Used for scalping and very small time frame strategies.

2. ⏳ M15 (15 minutes)

• Good for tracking short-term movements. Useful for day traders.

3. ⏳ M30 (30 minutes)

• Used to observe broader movements and develop strategies for short periods.

4. ⏰ H1 (1 hour)

• One of the most popular time frames for day trading. Also useful for medium-term analyses.

5. ⏰ H4 (4 hours)

• Suitable for medium-term traders. Allows for broader analysis of market direction throughout the day.

6. 🗓 D1 (1 day)

• Ideal for long-term analyses and strategies. Shows the market’s daily movements.

7. 🗓 W1 (1 week)

• Good for observing weekly market movements. Mostly used by long-term traders.

8. 📅 MN (1 month)

• Shows monthly trends in the market, intended for the longest-term analyses.

Each time frame gives you a broader picture to analyze and make better trading decisions!

📊 Chart Patterns

Take a look and absorb this! These are patterns you can expect to see on the chart. It’s easy to trade, trust me!

🔍 What Are Chart Patterns?

These patterns typically occur before the market starts to speed up. They can be considered as indicators of a potential change in the market’s direction.

📅 Tomorrow, we shall continue!

📈 Double Top & Double Bottom


🔽 Double Top (SELL)

• When you see a Double Top, Only SELL.
• A Double Top forms when the price hits a resistance level twice.
• Due to strong resistance, the price won’t break through and will drop.


🔼 Double Bottom (BUY)

• When you see a Double Bottom, Only BUY.
• A Double Bottom forms when the price hits a support level twice.
• Due to strong support, the price won’t drop further and will rise.

📊 Head & Shoulder Pattern

This pattern is divided into two types:
1. Head & Shoulder
2. Inverted Head & Shoulder

🔽 Head & Shoulder (SELL)
• When you see a Head & Shoulder, Only SELL.
• It helps to identify a sell setup.
• Sell when you see the formation of the 1st Shoulder & Head.
• The 2nd Shoulder completes the pattern, confirming the sell entry.

🔼 Inverted Head & Shoulder (BUY)
• When you see an Inverted Head & Shoulder, Only BUY.
• This pattern works similarly but indicates a buy setup.
• Look for a buy opportunity once the 2nd Shoulder forms.

💡 The GOLDEN Question: How Can You Get Better in Forex? 🧐

1. Identify a Daily Target

• How much do you want to make? Be realistic!
• Your target should make sense based on your capital.

Example:

If you have a balance of $100 in your trading account, a realistic target should be $10 per day.
Set your expectations wisely and stay smart with your goals.

🛑 Risks of High Targets

• If you aim to turn $100 into $1,000 in a single day, it’s possible but comes with incredibly high risks.
• If you’re okay with losing, then go for it. But always know what you’re risking.

📊 Realistic Target Breakdown:

With a $100 account, you can aim for:

• $10 Daily
• $50 Weekly
• $200 Monthly

With a $10,000 account, you can aim for:

• $1,000 Daily
• $5,000 Weekly
• $25,000 Monthly

Key Rule:

Once you hit your target, stop immediately and step away.
Avoid greed—stick to the plan and be strategic!

🛡 Manage Risks:

The only way to succeed is to manage your risks.
Patience and consistency are what will take you far in the long run!

📊 Fundamental Analysis Trader (FA)

• A trader who predicts the market using high-impact news, including economic, geopolitical, or currency policies of a country.
• FA analyzes the data of a country and evaluates what impacts the currency, no matter how small or large.

📈 Technical Analysis Trader (TA)

• A trader who predicts the market using chart analysis, focusing on price action or specific indicators like Supply & Demand (S&D), Support & Resistance (S&R), Trendline (TL), Moving Average (EMA), Relative Strength Index (RSI), and more.
• TA only analyzes charts based on price action, candlestick patterns (CS), or with the help of indicators available on trading platforms like MT4 (MetaTrader 4).

📈 Technical Analysis Traders (TA)

In the grouping of Technical Analysis Traders (TA), there are 3 types of traders with different targets and market approaches:

1. Scalper Trader
• Focuses on making quick trades to capture small price movements, typically holding positions for seconds to minutes.

2. Intraday Trader
• Executes trades within the same day, aiming to profit from short-term price fluctuations without holding overnight positions.

3. Swing Trader
• Holds positions for several days to weeks, aiming to profit from expected upward or downward market shifts.

💰 Getting on Top of the Game with Good Money Management!


$50 Capital

High risk - 0.10 lot✅
Mid risk - 0.05 lot✅
Low risk - 0.01 lot✅


$100 Capital

High risk - 0.20 lot✅
Mid risk - 0.10 lot✅
Low risk - 0.01 lot✅


$200 Capital

High risk - 0.40 lot✅
Mid risk - 0.20 lot✅
Low risk - 0.02 lot✅


$500 Capital

High risk - 1.00 lot✅
Mid risk - 0.50 lot✅
Low risk - 0.05 lot✅


$1000 Capital

High risk - 2.00 lot✅
Mid risk - 1.00 lot✅
Low risk - 0.10 lot✅


Use this to save your account. I don’t wanna hear people tell me they’re blowing their accounts anymore.

📊 Support & Resistance

SUPPORT

• Where we look to BUY. Support is a level where demand is high, preventing the price from falling further.

RESISTANCE

• Where we look to SELL. Resistance is a level where traders sell, preventing the price from going any higher.

There are two types of Support and Resistance that influence our decision to enter a trade:

Support:

• Strong support
• Weak support

Resistance:

• Strong resistance
• Weak resistance

Breakouts can change Support & Resistance:

• Support breakout = Support becomes Resistance (SBR)
• Resistance breakout = Resistance becomes Support (RBS)

🔑 Key Concepts of Support & Resistance (SnR)

1. The concept of SnR forms the foundation of technical analysis in Forex.

2. Forex traders buy at support or a nearby zone to capture the potential price hike.

3. Forex traders sell at resistance or a nearby zone, expecting a potential price drop.

🔍 Identifying Strong vs. Weak SnR

To identify if an SnR is strong or weak is simple:

• Multiple retests or rejections in the SnR zone indicate that it is strong, showing that the price is struggling to break through.

Timeframes Matter!

• Strong SnR levels are often found on larger timeframes like 4 hours, daily, weekly, or monthly.
• It’s not wrong to check smaller timeframes like 1 hour, 30 minutes, or 15 minutes, but these often contain more noise or minor movements that don’t impact the market as much.