Rayner Teo - Forex Trading: A Beginners Guide: Trading Strategies, Tools, And Techniques To Profit From The Forex Market

Forex Trading

A Beginners GUIDE

RAYNER TEO

Copyright 2022 by Rayner Teo

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed Attention: Permissions Coordinator, at the address below.

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www.tradingwithrayner.com

Printed in the United States of America

Cover Designer: Ryan Biore

Layout Designer: Mala Letra Diseo Editor: Barry Lyons and Renata Sielecki

Chart Illustr ations: www.tradingview.com and Jet Toyco

disclaimer

The information contained in this book is for educational purposes only.

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this book. The past performance of any trading system or methodology is not necessarily indicative of future results.

By reading this book, you agree that my company and I are not responsible for the success or failure of your trading business.

The ideas Im about to present are ones that Ive learned from other traders (see the acknowledgements section) and I dont claim to be the original source of them.

table of content

To deliver more value to you, Ive created a special bonus bundle to accompany this book. Heres the link to get it for free: forextradingbook.com/bonus

Bonus #1: The ultimate candlestick patterns trading course

Master candlestick patterns fast so you can better time your entries, exits, and even predict market turning points.

Bonus #2: How to draw support and resistance like a pro

Discover how to draw support and resistance correctly without cluttering your charts without useless lines.

Bonus #3: How to trail your stop loss and ride massive trends

Youll learn how to trail your stop loss so you can ride massive trends.

Bonus #4: Forex position sizing calculator

A simple tool to help you calculate the right number of units to trade so you dont blow up your trading account.

Bonus #5: Forex broker

Get my recommended Forex broker so you can trade with confidence.

Sounds good? Then heres the link to claim your bonus bundle: forextradingbook.com/bonus

Now, flip the page and lets get started

Introduction

I was introduced to forex trading during my university days. It all started when a forex broker came down to my school and organized a trading competition. It was free to join, and there was prize money to be won. I remember thinking to myself, How hard can this be? So, I joined.

Two days later I blew up my trading account, and that was the start of my trading career. From then on, I dedicated my time to forex trading because of all the possibilities that came with it. I could be my own boss, have unlimited earning potential, and work from anywhere in the world. Wow.

So, I studied everything I could get my hands on: chart patterns, candlestick patterns, RSI, MACD, Fibonacci, harmonic patterns, stochastics, and anything else that crossed my path.

But did amassing all this knowledge get me the results I wanted? No. Thats because I was hopping from one trading strategy to the next. Heres how the cycle went: I would come across a new trading strategy and quickly test it out. I usually got a few trades going in my favor, but after a while, the losses came, and I would abandon the trading strategy.

Then Id look for a new trading strategy and the cycle rinse-repeated itself.

This went on for years until one day

I came across a quote by Bruce Lee: I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times. That was an aha moment for me because it helped me to realize less is more.

So, I discarded 90% of the things Id learned and focused on the remaining 10% (which youll discover later). Eventually, things clicked, and it all started to make sense. Now, I cant guarantee that reading this book will make you a millionaire trader or that youll even make money from the forex market. But I hope that by reading it, youll be able to skip years of trial and error, avoid making costly mistakes, and drastically shorten your learning curve.

You may be wondering, Why write a book on forex trading? Well, there are a few reasons for this:

. Many forex trading books are overly complicated and leave the reader feeling overwhelmed and not knowing where to start. Its time to change that.

. It helps me generate another source of income. And who can complain about having more money?

Its my mission to give people access to quality trading education, and this is one way of doing that. Cool?

Just to be clear, this book isnt meant to teach you everything about forex trading. Rather, its purpose is to give you a strong foundation so you can kick-start your forex trading career without blowing up your account in two days. Its not meant to be the end of your trading education, but the start. Lets begin!

1. Forex trading explained

Forex stands for foreign exchange. So forex trading means exchanging one currency for another. But why do we exchange currencies? There are many reasons.

For example, lets say youre from the United States and want to go to Singapore for a vacation.

Clearly, its not convenient to use US dollars in Singapore. So, what you need to do is to exchange your US dollars for Singapore dollars.

Another example: Lets say a Japanese company needs to buy steel from an Indian company. The Japanese company cant pay in yen because its not accepted in India.

In this case, the Japanese company exchanges their Japanese yen for Indian rupeesso they can buy steel from the Indian company.

Now that you understand what forex trading is about, lets find out about the people who trade in this market.

WHO ARE THE PLAYERS IN THE FOREX MARKET?

Banks use the forex market to hedge their portfolios against currency risk, meet regulatory requirements, and provide liquidity to the market.

On a central bank level, they use the forex market to manipulate their currency, so the country remains competitive in the global market (a lower currency value makes a countrys goods cheaperand that increases exports).

Companies also use the forex market to buy raw materials and services from foreign countries.

Hedge funds use the forex market for speculation, to earn a profit, and to hedge their positions that are denominated in a foreign currency.

Forex brokers are interested in providing liquidity to forex traders around the world.

Retail traders use the market to meet their own needs (like traveling) and to speculate and earn profits.

Moving on, now youre going to learn the advantages of forex trading and why its so attractive to retail traders.

THE ADVANTAGES OF FOREX TRADING

You can start with as little as $100

You can open a forex trading account with as little as $100. To take things a step further, some forex brokers dont have a minimum deposit, which means you can get started with a lot less.

You can enter and exit your trades easily

You can enter and exit your trades with minimal slippage. This means you can enter and exit your trades at the price youre being quoted. Now, you can still encounter slippage during a big news event (like NFP or FOMC), but it wont happen as often as it does when youre trading stocks.