Ultimate FX Trading Guide: With Trading To Passive Income ...: (Workbook With Practical Strategies For Trading And Financial Psychology)

By Homemade Loving's

Ultimate Forex Trading Guide: With Forex Trading To Passive Income And Financial Freedom Within One Year

Make yourself financially independent now - with the profit opportunities of global foreign exchange trading!

Whether as a financial cushion to be your own boss or as a provision for old age: foreign exchange trading offers you the best conditions for an additional income, which you can earn anywhere on the side. Four trillion US dollars change hands here every day. Become one of them now!

This guidebook provides you with everything you need to know for successful foreign exchange trading. You will receive first-hand insider tips and look behind the scenes of the leading international exchanges. With the sound know-how, you will always be one step ahead of others and will be able to react to the market and its signals like a professional. All this is easier than you think: In no time at all, you'll know what matters. The best prerequisites for profitable Forex trading!

Compact and to the point: This workbook is your key to additional income that gives you financial freedom. Read how you can become even more successful:

✓ How does forex trading work? ... The basic knowledge so you can start immediately.
✓ The buying and selling signals ... How to easily recognize the signs to make the right decisions!
✓ The stock exchanges ... The fascinating world of the trading centers and the importance for your success!
✓ Money management and trading tools ... Effective tools for safe trading!
✓ Trading psychology ... How to begin thinking like a professional trader.
✓ All important trading terms ... So that you understand everything easily and become even better.

With this knowledge you can earn a lot of money while trading international currencies. Even as a beginner, you can get started immediately and take advantage of your profit opportunities.

Take the first step for your success now and start your career in forex trading today!

• Language: English
• Publisher: XinXii
• Release date: Jan 9, 2024
• ISBN: 9783989832084

Book preview

Ultimate Forex Trading Guide:

With Forex Trading To Passive Income And Financial Freedom Within One Year

(Workbook With Practical Strategies For Trading Foreign Exchange Including Detailed Chart Analysis And Financial Psychology)

Reproduction, translations, further processing or similar actions for commercial purposes as well as resale or other publications are not permitted without the written consent of the author.

Copyright © 2024 - Homemade Loving's

All rights reserved.

Table of Contents

With forex trading to passive income and financial freedom within one year

What is passive income?

What is forex and forex trading?

What is the foreign exchange or currency market?

The various market participants in the foreign exchange market in detail once again

Foreign exchange transactions and currency trading

How foreign exchange trading works

Foreign exchange business with private customers

The most frequently traded currencies and currency pairs in the foreign exchange market

Market supervision in the foreign exchange or currency market

How do profits arise in foreign exchange trading?

The historical development of foreign exchange trading

The requirements for foreign exchange trading

Forex trading basic knowledge

The forex broker

The advantages of foreign exchange trading

Possibility of making profits regardless of the direction of the market

Low barriers to entry

The disadvantages of foreign exchange trading

Dubious and non-transparent brokers

Behavior of exchange rates

Learn the forex basics

What is a pip?

What is meant by majors and minors?

The Forex Broker

What does margin mean in Forex trading?

Forex trading and emotions

Choosing the right Forex broker

Documentation and analysis

Being always up to date with the latest news

Exact daily planning and precise objectives

How is a trade opened?

The correct position size at the trade opening

When does a profit arise and when does a loss arise?

Find the right forex broker

Leverage in Forex trading

The trading platform of the Forex Broker

Free demo account

Customer support and customer care

The different types of forex brokers

Deposits at the forex broker

Withdrawals at the forex broker

Crypto currencies with a forex broker

Summary of the most important criteria for finding the right forex broker

The lot sizes

The most important different types of trading

Buy and hold

Swing trading

Day trading

Scalping

Technical analysis in foreign exchange or forex trading

The basics of technical analysis

The beginnings and the origin of technical chart analysis

The different chart designs

The Line Chart

The Candlestick Chart

The Bar Chart

The different colors of the charts in Forex trading

The technical indicators

The basic principles of technical analysis

Conclusion on technical forex analysis

The fundamental analysis of foreign exchange trading

Exchange rates and central banks

Bad or good news

Which factors are important in fundamental analysis?

Interest rate development

The practical implementation of fundamental analysis

Conclusion Fundamental Analysis

Forex strategies for beginners, advanced traders and professionals

Simple strategies for beginners

3 concrete practical examples for beginners

Strategy Moving Average Crossings

Forex strategies for advanced traders or professionals

The entry signals for scalping

Combined use

Which broker is suitable for scalping?

The INSIDE-BAR strategy with a relatively high hit rate

The MACD Strategy

The GAP Strategy

The EMA Strategy

Summary Forex Strategies

Risk or money management in foreign exchange trading

Trading Psychology: How to begin thinking like a professional trader

Financial psychology - origin until today

Framing effect

Sunk cost effect

Heuristics

Disposition effect

Trading fears - The central issue in trading

Meaningful fears and meaningless anxieties

The longing for security

The view of things

The control center in the brain

The power of the unconscious

Statements of faith

Autoaggression (self-injury)

Which characterize the first years of life

The power of discipline - training the will

Stress and trading - the right dose makes the difference

Combat escape response

Stress due to loss of control

Recognizing and overcoming stress

Trading and personality

Trading trap: Thinking, believing, hoping

Small trading account - big problems

Trading with sense

Important technical terms in forex trading that you need to know

Bar chart

Basic currency/ exchange rate currency

Broker

Buy Stop Order

Candlestick Chart

Central Banks

Chance-Risk-Ratio

Course Order

Cross Currencies

Currency Pair

Day Trading

Dealing Desk Broker

Demo Account

Decentralized Market

Exchange Rate

Forex Trading

Forex Trading Software

Fundamental Analysis

Go Long or Short

Hidden Order

Iceberg Order

Indicators

Leverage

Limited Order

Line Chart

Lot Sizes

Majors and Minors

Manual Trading Strategy

Margin

Margin Call

Minimum Deposit and Minimum Stake

Momentum

Money and Risk Management

Obligation to make additional contributions

No-Dealing-Desk-Broker

Open and Close Position

Pips

Requotes

Return on Investment

Scalping

Short Position

Sell Limit Order

Sell-Stop Order

Simple Moving Average (SMA)

Scaling

Slippage

Social Trading

Spread

Stop Loss

Supports and Resistors

Swing Trading

Take Profit

Technical Analysis

Technical Indicators

Trading Platform

Trading Hours

Unlimited Order

Volatility

With forex trading to passive income and financial freedom within one year

Many people have the desire to leave the hamster wheel of working life behind them or to step back a little here. But each person, who strives here for financial freedom, independent of the work income, must be ready to take its finances into the hand. That means for this person, independently of its earned income or from national allowances to develop additional own sources of income. Here one speaks in the following of a passive income.

What is passive income?

Passive income is money and income that a person regularly receives for which that person does not work directly. This means that time is no longer exchanged for money, as it is the case in an employee-existence or as an independent person. This is usually money from passive sources of income in which this person has once invested time or money. However, these income streams must have been built up beforehand in order to benefit from them later. Passive income decouples time from income. This creates financial and time flexibility.

Especially in a time when jobs are no longer secure due to digitalization and rationalization, it is increasingly important not to be dependent on a job as an employee. Similarly, there is no source of income that is taxed as heavily as earned income. Taxes on investment returns or corporate profits are much lower. Therefore, flexibility, independence from earned income and low tax rates are important reasons to build up passive income.

An average income millionaire usually has between 7 and 10 different sources of income outside of his or her work income. One way of doing this is to build up a passive income in the world's largest market, the currency or forex market, in the form of Forex.

The following explanations in this book serve to present this field and its possibilities in detail and to show how a passive income can be built up in the world's largest market, the currency and foreign exchange market. First of all, it is a matter of explaining some of the terms used in Forex, so that even a beginner can become familiar with this subject.

What is forex and forex trading?

The term Forex (short for Foreign Exchange Market) is the most common name for the foreign exchange or currency market today. Also the terms FX market, foreign exchange market or currency market are used colloquially. The Forex market is the most liquid and largest market in the world, which includes all the currencies existing in the world. In this market, the demand for foreign exchange meets the supply of foreign exchange and the exchange of foreign exchange takes place at the current exchange rate.

There is no central marketplace where this foreign exchange trading is carried out, because the trade is mainly between the market participants.

Forex trading is then understood to be the sale and purchase of foreign exchange or currencies. In doing so, investors try to profit from the exchange rate changes and thereby make a profit. In order to maximize the profit amount, very high financial levers are used. However, the use of high financial levers also means the risk of realizing high losses, which can far exceed the original investment.

What is the foreign exchange or currency market?

The foreign exchange or currency market is the largest financial market in the world with a daily turnover of more than 5 trillion dollars. In contrast to the floor exchange, trading is possible here 5 days a week, 24 hours a day. Trading is usually possible practically from Sunday night until late Friday evening. Thus, trading is possible from Sunday to Friday non-stop without interruption.

The foreign exchange or currency market is a sub-sector of the financial market, which also includes the capital and money market. As already mentioned, the foreign exchange market cannot be localized to a specific location because trading in foreign exchange is primarily conducted between market participants and the foreign exchange exchanges have largely been abolished or have lost much of their importance. The market participants in the foreign exchange market are, among others, central banks (here, the foreign exchange market intervention also plays a role), credit institutions, the state, large companies from the private sector, medium and small businesses and private households, this for their foreign exchange transactions must then also turn to the credit institutions. Trading on the foreign exchange market is done with foreign exchange (book money in foreign currency).

The participants in the market as well as the trading objects on the foreign exchange or currency market

The Foreign Exchange Market instrument is used to exchange domestic currency for foreign currency and vice versa. As a result, the purchasing power of the domestic currency is then exchanged for foreign currency. The foreign exchange markets are mainly shaped by foreign exchange trading.

Various market participants are active in the foreign exchange market. These include, as already mentioned, banks and credit institutions, larger industrial companies, private foreign exchange dealers, trading houses and foreign exchange brokers. Enormously important market participants are the central banks. For economic as well as political reasons, the central banks have the possibility to intervene in the foreign exchange markets with foreign exchange market interventions (for example, to restore a foreign exchange market balance).

In interbank trading, the majority of foreign exchange trading is carried out over the counter. Since the foreign exchange exchanges were hardly involved in foreign exchange trading, they have either been abolished or greatly reduced (in Germany, this took place in December 1998). The essential function of the foreign exchange markets, the official determination of exchange rates, is nowadays determined by reference values (such as EuroFX or as a trading medium in the form of online trading via trading platforms, such as the electronic brokerage EBS, or via telephone trading).

The trading object used here is foreign currency, which has a currency designation representing its country of origin. The pound sterling was introduced as the first important trading currency in 1750. This was followed by the Swiss franc in 1850, the yen in 1871 and the US dollar in 1875. The youngest currency, the euro, was introduced in 2002.

Nowadays, the foreign exchange trade between the individual banks is handled electronically in practice. Very large amounts are traded between banks and credit institutions within seconds. Here then exclusively book money is used and also transferred.

The various market participants in the foreign exchange market in detail once again

Investment banks

Here one speaks also of institutional dealers, which are composed of large financial institutions as well as banks. Through them, liquidity is made available to the foreign exchange market. These traders then trade among themselves on the interbank market. This is, as already mentioned, an electronic communication network, which is supported by predetermined credit lines between the participating banks and credit institutions. This interbank market basically consists of a network of institutional foreign exchange dealers who trade currencies among themselves in order to keep the entire banking system liquid. According to the Bank of International Settlements, this network of foreign exchange dealers accounts for approximately 40 percent of the daily turnover in the entire foreign exchange market.

Central banks

Central banks, such as the Federal Reserve (FED), the Bank of England or the European Central Bank (ECB), are responsible for the money supply, interest rates and the supervision of the banking systems in their territories. Due to the fact and in the context of their task to manage monetary stability and growth, they have a great influence on the foreign exchange market.

The companies

Companies are also among the major customers of institutional traders. Foreign exchange is indispensable for any international trade. In every international transaction in which services or products are sold to corporate clients or purchased from their suppliers

are required here for the sale or purchase of foreign currencies. Especially in today's age of globalization, foreign currencies are an indispensable part of every large company.

The institutional and retail traders

Traders are the most diverse group of market participants in the foreign exchange market. These market participants profit from the price fluctuations. Traders working for hedge funds are a very influential group of currency speculators and are also able to influence currency rates due to the size of the stakes they place in the foreign exchange market at regular intervals. This type of market participants is also a very knowledgeable and experienced clientele. Such hedge funds invest on behalf of pension funds, private individuals, companies and also to some extent governments. These professional traders use various techniques, including discretionary and algorithmic trading or a combination of both, as well as fully automated trading.

The retail traders are the private traders. These are small private investors who want to earn a reasonable income in Forex or foreign exchange trading. The problem here is that for this purpose, a sufficient and good education must be available to be able to survive especially in the foreign exchange market, because the smallest wrong decision triggers corresponding consequences and thus it can quickly come to losses.

Foreign exchange transactions and currency trading

Foreign exchange trading is understood to be the interbank market. There the trade of internationally active banks and credit institutions takes place in the form of standardized foreign exchange transactions with the trading object foreign exchange. Foreign exchange transactions consist of the basic forms of forward exchange transactions, spot exchange transactions and the resulting currency swaps (derivatives) and currency options.

The forward exchange transaction

A forward exchange transaction is also referred to as a forward, outright or solo transaction. In this case, there is a period of time between the settlement date (on the day on which the transaction is executed) and the day the transaction is concluded of at least 3

working days. However, the time span can also extend over several months. Both parties to the contract must meet the conditions agreed on the day of the transaction (which includes the exchange rate valid on that day), regardless of how the current exchange rate situation has changed.

The forward exchange transaction is thus one of the hedging transactions or exchange rate hedging transactions.

Spot exchange business

In the case of a spot exchange transaction (also referred to here as spot transactions), there is