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    FOREX SIGNALS

    Thursday, 11 February 2021

    TERMINOLOGIES USED IN FOREX

    You may be among the gathering of Forex Traders but you won't understand a dime of what they are saying, this is because U don't know the terms.

    So that is what we would be learning in this section

     *TERMINOLOGIES USED IN FOREX*

    Just Like every Field you try to learn..

    You Will have to get habituate to its *Terms and Terminologies*

    So also is the Field of Forex,  you would need to learn about the Terminologies so as to be able to communicate with the Market, Analysts and also with your fellow Traders.
     And you would have to get yourself acquainted with their Terminologies so as to be able to communicate properly.


    So also is Forex,  for you to be able to *Learn* and *Trade* ,  U should get to know some of the terms that is used in *FOREX Trading.*

    So that u can understand the News, Associate with your Fellow Forex traders and understand Analysts

     So as I was saying

    For every New field you embark upon in Life, you would encounter New Terminologies and terms which is peculiar to such field.

    Be it Carpentering, bakery, Journalism, Engineering, medicine etc

     So let's get to it

    *TERMINOLOGIES USED IN FOREX*

    πŸ”–TO GO *LONG*....means to *BUY* πŸ“ˆ

    πŸ”–TO GO *SHORT*...... means to *SELL* πŸ“‰

    If a Trader tells you that he went Long on a Currency pair.

    He meant that,  He Bought the pair.

    While if they tell you that they Short a Currency pair, it means that they Sold the pair

    Soon you would get to see that All what we are doing in Forex is Buying and Selling

     The next terms we would see are


    *BULLISH MARKET*.......
    A market that is going Upwards πŸ“ˆ


    *BEARISH MARKET*...... A Market that is going downwards.πŸ“‰

    When someone tells u that a currency pair or a commodity is Bullish
    It's telling you that its going Up

    While

    One that is Bearish is going down

    Let's be noting all these terms down in our Exercise books or Jotters,
    You all would be needing them as you we progress with the Training

    Also Most of the Currency pairs have specific names in which they are called....

    We would get to know them soon
    Eg

    πŸ”– *The dollar is sometimes called Greenback*

    πŸ”– *The Pounds is called the cable*

    πŸ”– *The New Zealand dollars is called the Kiwi.*

    πŸ”– *The Australian dollars is the Aussie*

    πŸ”– *The Canadian Dollars is called the Loonie*

    πŸ”– *Oil is referred to as the Black Gold*
    Etc...


    We would get to know them as we go along with the Training.

    It's just to get you acquainted with the most popular ones so that When you see fellow Forex Traders discussing, you would tag along easily.

     *FUNDAMENTAL ANALYSIS*

    This is the study of Economic news and other news event's which affect financial markets.

    This is also known as *News Trading*.

     Let's start with the first one


    *FUNDAMENTAL ANALYSIS*

     *FUNDAMENTAL ANALYSIS*

    &

    *TECHNICAL ANALYSIS*

    Note them down

     
    It's been said that News is what moves the market.


    Everyday various news are being released by these major countries.


    And they either positively Or negatively affect the Currency pair involved and then you make your Trading decision based on the news you heard.

     Fundamental analysis is also a method of analyzing the financial markets with the purpose of price forecasting.


    Forex fundamental analysis is focused on the overall state economic news of that currency which affect the exchange rates...

     Trading on the fundamental is also referred as trading the news.


    Is the study of news event & Economic statistics to determine trading opportunities...

     Now whether the News is Positive or Negative

    As a Forex trader, that is none of your business because u make money both ways.

     Forex traders pay attentions in economic indicator (report)..

    Some traders find opportunities to trade by looking at fundamental indications of Economic news πŸ“°

     Those into Crypto Trading would tell you that u only make money when a Coin is appreciating.

    But in Forex, we make Money Both ways.


    If a Currency is appreciating, We go long on the pair


    When a Currency is also depreciating based on the News, We go short on the pair.

    Isn't that wonderfulπŸ˜‰πŸ“Š

     We see all these News on CNN,  Bloomberg, CNBC etc

    Also Your MT4 App has a Summary of News Section

    Also some sites like forexfactory.com, dailyfx.com etc

    Gives you summary of this News.

    We would come to see them later
     *There are many news that are been release...*

    Eg πŸ”–Nfp.
         πŸ”–Unemployment rate.
         πŸ”–international interest rate.
         πŸ”–consumer price index (CPI)... etc...

     Hope you can remember when *USA* and *IRAN* where having a war conflict...

    Its affect the US economy


    They are there flying missiles here and there bombing everywhere but we the forex trader..

    We will be in house making money, booking profits..

    We don't care whether the economic is good or not.. Its none of our business..

     Like many traders do everyday, They buy some and sell some


    So In Forex, you make money on both sides of the News(whether good or bad)


    We would come to see how to trade the News later

     Non-Farm Payroll (NFP) Affect Forex Trading.


     It is the most anticipated economic data releases as far as forex traders are concerned.


    The report causes extreme high volatility in the market and often triggers a long-term upward or downward trend for the U.S. dollar.

     There is what we Forex Traders Call *KING OF ALL NEWS*



    It's called the *NFP*


    *NON FARM PAYROLL*

     The non-farm payroll (NFP) figure is a key economic indicator for the United States economy.


    It represents the number of jobs added, excluding farm employees, government employees, private household employees and employees of nonprofit organizations.(we will see them soon)


    NFP releases generally cause large movements in the forex market.(volatility)

    *Non Farm Payroll* is one of the Biggest News that every trader awaits on

    Let's start with understanding what NFP is..

    Let's talk about what the News entails

     *Volatility* refers to how fast a market is moving..

    During *NPF* market moves very fast, Hence we say its very volatile.

     The data released include

    πŸ”– *1). Non Farm Payroll increase.*

    This is the number of new jobs added in the US labor sector in the previous month.

     It also includes:


    πŸ”– *2) Unemployment rate of the US*


    πŸ”– *3) Which sectors of the economy, these jobs were added mostly.*


    It gives investors and traders where are the possible sectors to invest  in as the sector that added more jobs would be most likely to have experienced growth

     Investors, Financial Analysts, Forex traders, Stock traders make trading decisions with the News


    It is released every *1st* *Friday* of the Month by *1:30pm NIGERIA TIME*

     However

    When the number of jobs added are reduced.

    The reverse occurs... People won't have money to spend on goods produced and services... hence dwindling the economy.

    Also the US govt has an amount of money paid to the unemployed.

    When more jobs are added, more people would be employed.
    This reduces the unemployment rate, as the unemployed citizens reduce.

    Less money leaves the govts pocket, hence boosting the economy.

     Let's get to how to interpret the data.


    *INTERPRETATION OF NFP*


    So when more jobs are added, it means that Business ventures are growing and remember that these newly employed would be paid....

    Hence more people would have money to spend on goods and services hence increasing the growth of the economy

     So this is just a Breakdown on What NFP entails and why it's so Volatile.....

    It's usually released *1st Friday* of every month

     Most Traders Trade once a month.
    They fund their accounts specially for *NFP* and close for the month.


    Most people make what you would be paid in a year just on an *NFP* afternoon


    THATS HOW MASSIVE *NFP NEWS* ARE

    IT CAUSES LARGE VOLATILITY IN THE MARKET
     No *Forex Trader* fixes his Wedding or Party on the First Friday of any month except it's a Night event.


    So as Forex Traders,  Never miss it.

    If you are driving and it's *12:20 PM GMT*

    Just park, Open your Phone Trade your NFP and continue where you are going.

    *Technical analysis* is the framework in which forex traders study price movement.

    The theory is that a person can look at historical price movements and determine the current trading conditions and potential price movement. ...

    Technical analysts use charts πŸ“Š because they are the easiest way to visualize historical data!

     By looking at charts, you can identify trends and patterns  
    which can help you find good trading opportunities.

     
    The most IMPORTANT thing you will ever learn in *Technical Analysis* is the trend!.

     *WE ALL WILL BE TRADING ON THE MT4 SOON WITHIN THE WEEK*

     This form of Trading is when you Analyse the Market using Indicators, Charts Patterns , Candlesticks, Fibonacci, Support and Resistance, Pivot Points, Elliott waves etc

    When you use any of the above to analyze the market, It's called *Technical Analysis.*

    Majority of what we listed on the Course outline are *Technical Analysis*

     Someone will ask which type of analysis is better?

     
    The answer is *neither*. You need both types of analysis to become a successful trader.
     
    Always remember to incorporate (MIX) both analysis before you trade

     Technical analysis can help you identify these trends in its earliest stages and therefore,

    Provide you with very *profitable* trading opportunities.

     Soo Many  people have a saying that *“The trend is your friend”.* πŸ“‰πŸ“ˆ

    The reason is that you  
    are much more likely to make money when you can find a trend and trade in the same direction.

     *Why is technical analysis important?*


    Technical analysis of a market can help you determine not only when and where to enter a market, but much more importantly, when and where to get out.

     Among the 2 major *Forms of Analysis*,

    No one is superior to each other and also no one is used in Isolation.

    Always corporate both the analysis.

     Everyday can't be Christmas 🌲

    So as a Forex Trader, you must learn how to trade the market using Technical Analysis.

     So because everyday can't be Christmas 🌲, High Volatile News like NFP is not going to be released everyday , so you have to learn how to Analyze the market and Trade in the absence of any major News release.

    That's what makes you a complete Forex Trader

     *Summary:*
     
    πŸ”– There are 2 types of analysis: Fundamental and Technical
     
    πŸ”– Fundamental analysis is the analysis of a market through the strength of its economy. (i.e. the  
    dollar gets stronger because the US economy is getting stronger).
     
    πŸ”– Technical analysis is the analysis of price movements.
     
    πŸ”– Technical analysis also helps us identify trends which can help us find profitable trading  
    opportunities.
     
    πŸ”– To become a successful trader, you must always incorporate both types of analysis.


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