Foreign Exchange will change your life

The biggest market in the world✅✅✅

Welcome everyone

We are gradually coming to the end of Stage 1 and we would soon enter Stage 2

Today we are going to look at the last set of topics on our stage 1 outline

We’ll be starting with

*CURRENCY PAIRS*

For this part to be more interactive...

We will all need to open our MT4 Apps

We are getting into more serious Business right now.

Here are links to the applications to download ⬇️

*META TRADER 4* OR *MT4 FOR ANDROID PHONES*

https://play.google.com/store/apps/details?id=net.metaquotes.metatrader4

*META TRADER 4 FOR iPhone*

MetaTrader 4 Currency Market by MetaQuotes Software Corp.

https://itunes.apple.com/ng/app/metatrader-4-currency-market/id496212596?mt=8

*CALL LEVEL APP FOR ANDROID*

https://play.google.com/store/apps/details?id=com.calllevelsapp

*CALL LEVEL APP FOR iPhone*

https://apps.apple.com/ng/app/call-levels-market-assistant/id937109871

*PIVOT POINT CALCULATOR FOR ANDROID*

https://play.google.com/store/apps/details?id=net.forexca.pivotpointcalculator

*PIVOT POINT CALCULATOR FOR iPhone*

FX Calculators by Societe informatique Tyrcord Inc

https://apps.apple.com/ng/app/fx-calculators/id1427831135

I Believe everyone has successfully Opened their Demo account and has Located the CURRENCY PAIRS page

If you haven't be Using my own images as Guides for now

*Please pay attention to this stage we are now*

If you Can't see the Currency Pairs

Open up your MT4 App

Click on that Double arrow icon below pointed at by the red arrow from any Screen U are, It would automatically take you to the CURRENCY PAIRS

ALSO

If your MT4 is showing an Interface, telling you MQL5 Registration

Don't bother about that, It has already opened the Demo account for you.

Just Click on that MT4 icon above pointed at by the Red arrow

It will automatically take you to where you’ll see the Currency pairs by Clicking on the double arrow icon as I earlier explained on any interface it takes u to

For Those that already Logged in, You’ll see where Currency pairs are listed, Like in the image below

Even if it's in a different format, Don't worry.

The most important thing for now is that U are seeing there Currency pairs

We will address the Formats later

EUR..... EURO

USD.... US DOLLARS

GBP.... GREAT BRITISH POUNDS

CHF...... SWISS FRANC

NZD.... NEW ZEALAND DOLLARS

AUD..... AUSTRALIAN DOLLARS

CAD.... CANADIAN DOLLARS

JPY.... JAPANESE YEN

CNY..... CHINESE YUAN

etc
These are some of the list of Popular Currencies traded on the Forex market

With their abbreviations and Full meanings

As u observe on your MT4.....

It's mostly written as their abbreviations

Among those pairs of Currencies

The first Currency within the pair is called

*THE BASE CURRENCY*

WHILE

The second Currency within the pair is called the *QUOTE CURRENCY*

*Let's note these down...VERY IMPORTANT*

An important thing to note here is that

The Base Currency is always stronger than the Quote Currency

(with few exceptions and we would see why soon)

Let's take *EURUSD* as an example

Ie The first Currrency pair on that image that I uploaded above

EURO is stronger than the US Dollars.( I believe we all know that)

Hence EURO is the Base while USD is the Quote

*....read that again and let it sink*

Another example is

*USDJPY*

In this second example

USDollars is the Base while Japanese Yen Is the Quote

..

Because the USD is stronger than the Japanese Yen

Also Beside each of those pairs...

U would see some set of Numbers written by the side...

*Just focus on the first number for now*

Get your biro and write this explanation down in your own words, it will help

For Example...

In this EURUSD above... It's showing you

EURUSD.... 1.0826

That number is telling you, how many Units of the Quote Currency, U would need to get 1 unit of the Base Currency.

Let's note the above statement down,

I’ll explain in details now

Mafoh...you’ll understand

Let me use a Local scenario to give you guys an example

If you have a Currency pair btw USD and Naira

Ie

*USD/NGN*......360

This is first telling you that USD is stronger than Naira, hence USD is the Base and Naira the Quote

The next important thing it's telling you is how Many Quote Currencies do you Need to get 1 Unit of the Base Currency

So in this case, U would need 360 Naira to be able to get 1 USDollar

*read it again...let it sink*

So that is what that number by the side, Always tells U How many Quote currencies do you need to get 1 Unit of the Base Currency

I believe this is clear

Let me give another example on the Chart to make it more clearer

Let's Take a Look at USDJPY....

In the image below,

It's Currently at 107.53

It's Currently telling that U would need 107.53 Japanese Yen to be able to obtain one US Dollars

You gauge?

Like I told you guys... That the Base is always Stronger than the Quote

There are very few occasions in which the Stronger ones are written as the second pair and not first

Examples include

*AUDUSD*

US dollars is stronger than Australian dollars

*NZDUSD*

US dollars is stronger than NewZealand dollars

*EURGBP*

Pounds is stronger than Euro

U always know them because they start with zero point something written beside them

Now when you see these few exceptions..

Don't bother too much.... About why the Weaker one is written first even though it's quite glaring that the Quote is stronger

What you just have to do is to take note of them,

It doesn't affect your trades.

It's just for the knowledge sake, so note them down.

They are the pairs I listed above

However Apart from those few exceptions

*Generally in Forex... *

*The Base is always stronger than the Quote*

Also, no matter which one is written first

Always know that the Price u see beside it is How many of the Quote Currency u would need to get 1 unit of the Base Currency

We’ll move to another important Part of Forex

Let's pay attention here

This is where many people always asks Questions

However, For your Foundation to be Strong in Forex , You need to understand this concept

Let's fire on

The Big Question is Now

*When Do you Buy and When Do you Sell* ?

Now this is where people always get confused....

Because those who taught them used the wrong semantics

YOU BUY. WHEN YOU KNOW THAT THE MARKET *WOULD* GO UP

WHILE

YOU SELL WHEN U KNOW THAT THE MARKET *WOULD* GO DOWN

If you notice, I carefully labeled *WOULD*

I didn't say

U Buy when the Market is going Up❌

Assuming I said that, I’ll still be correct but you will get more confused

You’ll start asking, Who buys any item when it's going Up

I Now as Usual, I would use a Local scenario to explain this topic , by the time I'm done

This seemingly complex concept, would look very easy to u

Believe me, nothing is hard in Forex

Just tell yourself that if Young young Boys who are not even half as educated as U can do this, that u too can do it

So Let me explain to U guys...

What we are actually doing in Forex in very simple terms

Just follow me here closely

If you are doing anything else, just focus from now onwards

Let me use this Analogy to explain what I mean.

For those of you who are not Nigerians.

I would use 2 names in this brief Analogy

Name 1 : Buhari (He is the current president of Nigeria)

Name 2 : Jonathan (former president)

Now let's get to the Analogy so as to understand in a layman's way how Forex actually works.

When Jonathan was in power.

Dollar was at a time around 180 Naira to 220 Naira

Let's just take the average and say 200 Naira.

When Buhari entered power... Some of you would recall that around 2016 , at some point Dollar shut up to 500 Naira per one.

Assuming you knew Dollar would appreciate against Naira like this and u had 2 Million Naira lying fallow in the Bank account , U knew from your experience as a Forex trader that uncertainty in Government weakens a currency pair and you used this your 2 million and bought dollars and kept in 2015.

It would give you about $10,000.

Now 1 year later, Dollar just escalated to 500 Naira per dollars.

And you went to the Bank, cashed out your $10,000 and exchanged it back to Naira.

It would now yield U 5 Million Naira (remember u just stocked 2 million Naira).

That means u made 3 Million Naira Profit

Now ask Yourself .....

Did you use that 2 Million Naira to do any Business.?

The answer is NO

U practically did nothing,

What just happened right there was Forex.

U leveraged on the fluctuations in the Price of Dollar to Naira to make yourself Money

Without Doing anything you just sat at home while the Foreign Exchange market did the job for U.

This is basically what we do in Forex...

This is not the normal market in Oshodi or Idumota or Accra mall that You Buy and Sell Clothes.

For some that would ask what are you Buying and Selling.

This is just a raw Analogy because in Forex market it's even more interesting.

You don't have to wait for 1 year or months to make Money.

To even shock you, Investment Banks contribute more than 70% of the total Liquidity in Forex, they use your Money to Trade.

Drive Big cars and Live in Big Houses and give you peanuts as interest or meagere amounts As Salary .

I had to sit down to type this analogy in the lowest terms that everyone can understand.

With time it would get clearer..

But I hope you all are having an idea of how we make money in Forex

So In the above Analogy..

*U would notice that u didn't really Buy or Sell any real commodity to make money.*

U took advantage of the change in Exchange rate to make money

So why did you Buy *USD/NGN*

IN the above scenario

U Bought *USDNGN* because you knew before hand that the value *Would* Rise

Take note *Would*am

So In Summary

We have seen that We Buy When we know A currency Pair *would* Rise

And we Sell

When we know a Currency pair *would* fall

*The Big Question is how do we know when it would rise and when it would fall*

That is What Technical Analysis would tell you

Candlesticks

Fibonacci

Elliott waves

Indicators

Pivot point etc

We are going there

Just follow me step by step

The more we go through with these teachings....the less hard forex will seem to be