is open 24 hrs a day, 5 Days of the Week
between Sunday 4 p.m. ~ Friday 3 p.m. Central
Forex (FOReign currency EXchange
market) is traded in currency pairs and involves the
simultaneous buying of one currency and selling of
another, for example EUR/USD, (Euro/US Dollar) or USD/JPY,
(US Dollar/Japanese Yen). As one currency goes up, the other
goes down, similar to a teeter-totter.
We buy or sell the 1st or BASE
currency, which sells or buys the other currency, called
the COUNTER currency.
Pair is WEAKER
Pair is STRONGER
Pair Price is
SELL: bear, drubbing, going short, shorting (in Options
it is a PUT)
does NOT mean you have to own that currency to sell
it..you are simply Shorting, buying the SELL or PUT)
Pair is STRONGER
Pair is WEAKER
Pair Price is
BUY: bull, going long (in Options it is a CALL)
Trading the TREND Direction:
WEAKER going DOWN SELL!
STRONGER going UP BUY!
of Trend Direction Trading:
Trading the COUNTER-TREND Direction:
is based on fact that currency movement will often reverse
WEAKER going DOWN BUY!
STRONGER going UP SELL!
of Counter-Trend Direction Trading:
Currency pairs that do not involve the U.S. Dollar are
called CROSS currencies. i.e. EUR/JPY
The major currencies:
AUD = Australian Dollar
CAD = Canadian Dollar
CHF = Swiss Franc
CNY = Chinese Yuan
CZK = Czech Koruna
DKK = Danish Krone
EUR = Euro (currency of European
GBP = British Pound Sterling, also
HUF = Forint
JPY = Japanese Yen
KRW = Korean Won
MXN = Mexican Peso
MYR = Malaysian Ringgit
NLG = Netherlands Guilder
NOK = Norweigian Kroner
NZD = New Zealand Dollar
PLN = New Zloty
SEK = Swedish Krona
SGD = Sinapore Dollar
THB = Thai Baht
USD = US Dollar
XAG = Silver
XAU = Gold
ZAR = South African Rand
interest rates go up with the Fed it typically strengthens
the US Dollar.
Dollar Index: going up =USD is stronger, going down = USD
When the price of GOLD is up, the USD is usually down..and
UNDERSTANDING THE BASICS OF INCREASES AND DECLINES IN QUOTES
Using the currency pair of EUR/USD as study subject.
EUR/USD = BASE/ COUNTER = $1/variable X
Variable X is the quote amount or Index we watch.
For every 1 EURO dollar it takes X US Dollars to buy (typically 1.25 or so)
So when the price (variable X) or index is increasing the
EUR or BASE currency is STRENGTHENING
as it now takes more US Dollars or COUNTER
currency to purchase the base currency. So you would BUY
EUR betting on continued increases.
Strategies: There are countless numbers of ways to
trade the Forex market and strategies may be either
manually run or run with an automated program, such as an
Expert Advisor or in short referred to as an 'EA'.
may be devised to either trade 'with the trend', Selling
when the Base pair is weak and Buying when the Base pair
is strong; or they may be based on a 'counter-trend'
strategy, which would Sell when the Base is strong and Buy
when the base pair is weak. Though this 2nd ,
counter-trend method seems like it would be a losing way
to trade, it is based on the known fact that a currency
index does not always move in a straight line. So the
market may surge forward, but will fall back (retrace) and
trading strategies incorporate technical indicators, which
are applied to a chart, to assist in seeing patterns and
direction changes. The most common ones are Moving
Averages, MACD (moving Average Convergence Divergence),
Support, Resistance, Pivots Lines, Fibonacci Retracement
Levels and Trend Lines. The Forex market is greatly
impacted by financial and economic news around the globe.
This is referred to as Fundamental Indicators. Some of the
most market moving news events are the USA Non-Farm
Payroll release, FOMC, and rate statement releases from
major countries around the world. The good thing is that
these are mostly confined to a strict release schedule
and they are listed on a site called ForexFactory.com (see
a Forex trader, you will learn the importance of keeping an ear on news events as the Forex
market is greatly impacted by them. On our Forex Home tab under
'Education' you will find an XLS file that we try to keep
current with past events. Also the Options Expiration
calendars show when that event hits each month, another
very volatile time. Typically we suggest avoiding the
times of highest volatility because the Broker is flooded
by so many orders they are unable to process them in a
timely fashion so what happens is orders get 'slipped' or
not filled or filled at dramatically different prices. Not
Here is the link to Forex Home
Most events for the XLS sheet are from a site called
Forex Factory. Here is the direct link to them:
In the USA we are mostly limited to 50:1 leverage. For some
leverage, 200:1 or greater is recommended. Learn more on
Leverage, Margin and Margin Calls at this link:
Club 2 Week Free Trial
Below is a link to a free school you can go through to
learn about Forex trading:
provides tools and resources that allow traders to analyze
price, place and manage trades, and employ automated trading
We also offer a free Forex glossary here:
The platform we use to run the Forex programs called
'Expert Advisors' or in short referred to as an 'EA' is a
trading platform developed by MetaQuotes software called
MetaTrader 4 or for short, MT4.
can download the MT4 program, which will run on your home
PC from numerous brokers. We recommend FX Open or FX Pro.
When you open a Demo Account you can 'paper trade' without
risking real money, just to learn and test strategies.
This is an important step with every new program you get.
Never trust someone else's results! You must verify them
on a platform from a broker you plan on using.
FX Open link: http://www.fxopen.com/TerminalMetaTrader4.aspx
Look at the bottom for 'Download
FXOpen MT4 Trading Terminal'
FX Pro link: http://www.fxpro.com/downloads/platforms/client-terminal
MT4 Client Terminal
will typically need to download and install the platform,
then open up a demo account before you can use it. The set
up will either prompt you through this or from the MT4
platform, right click on the word 'Accounts' in the
Terminal window, then select 'Open an Account'. Fill out
the form they provide to get registered, making your
desired selections. Take some time to explore the MT4
platform and learn its basic functionality. You will become
more comfortable with it as you get more familiar with
the SecretsFromTheHeart.com site, if you
click on the Forex Auto-Trading tab there is a PDF file to help
traders understand some of the basics of using the MT4
platform. Here is the direct link to that:
also offers a tutorial for learning the MT4 platform. The
also have tips they recommend for success. The link is:
will need to try several methods both manually trading and
using auto-trading programs to learn what you are most
comfortable with using.
In surfing the web you will likely find numerous free
Forex forums. Many traders are there discussing their
latest and greatest free 'Holy Grail' system. They can all
look great at first but over time we learned that the
forums are more of a distraction then a help. Doing your
and study may prove more beneficial.
Government Required Disclaimer:
trading has large potential rewards, but also large
potential risk. You must be aware of the risks and be
willing to accept them in order to invest in the FOREX
markets. Don't trade with money you can't afford to lose.
This is neither a solicitation nor an offer to Buy/Sell
currencies / futures or options. No representation is
being made that any account will or is likely to achieve
profits or losses similar to those discussed on this web
site. The past performance of any trading system or
methodology is not necessarily indicative of future
CFTC RULE 4.41: HYPOTHETICAL
OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS.
UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO
NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE
NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER
COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET
FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY
ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS
LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.