Day 5: Intro to FxMechanic™

Welcome to FxST™ Five Day eCourse – Start Forex Now! The topics covered in today’s course are the following:

  • Margin Calls – A Deeper Understanding
  • Margin Agreement – Your Brokers Requirement
  • Fundamental Analysis – 6 Major USA News Events
  • Technical Analysis – 8 Forex Trading Indicators

Learning Goal: What are the 2 Types of General Trading Strategies?

Level: Beginner

Okay, this is the final day of the FxST™ Five Day eCourse – Start Forex Now, clearly there’s only so much that we can fit into a this quick start to generating Consistent Bullet Proof Profits. Our goal is that after this course you will a have general concept of Forex and the proper mindset to start creating your own $100,000/yr business or more in the Forex Market.

Now lets take it to the next level and start learning how to trade with the FxST Start Forex Now video series. Through out this video series you will actually download a practice demo account and start taking the next steps to generating Consistent Bullet Proof Profits. For more details CLICK HERE

Margin Calls and Requirements

Obviously since leveraging is all about borrowing money from the broker you need to understand exactly how much risk your broker is going to allow you to take on trades. For example, assume you maintain a margin account and your positions dramatically fall before turning around and rising substantially even exceeding the beginning price. Whether or not you have sufficient capital, a broker might have traded out your position during the fall to lessen the broker’s risk and potential loss. That trade could have been at or near the bottom of the price fluctuation. That would result in a margin call to you and you could lose substantial sums of money even though the price rebounded after the broker liquidated your position.

Opening a Forex account, regardless of the type, is similar to taking out a rotating equity loan or maintaining an equity account. The main thing that separates them from the Forex account is that you are required to sign a margin agreement with relation to your Forex accounts. The margin agreement acknowledges that you are trading with money borrowed from the broker and that the broker can insert itself into your trades as necessary to lower its risk and protect its interest. It also explains your liability relating to any losses. After you execute the agreement and deposit the beginning capital to the account you opened, you are ready to begin trading.

Basic Overview of Trading Strategies

“Technical analysis” and “Fundamental analysis” are considered the two main forms of analysis in both the FOREX market as well the equity markets. However, most FOREX traders opt for using technical analysis. The following is a quick overview of both types of analysis and how they are used in FOREX trading:

Fundamental Analysis – Using fundamental analysis in the FOREX market tends to be somewhat difficult and is generally used to forecast long-terms trends. There are, of course, some traders who conduct their trades on a short term basis solely on economic news releases.There are many fundamental indicators that can impact the exchange rate of a currency pair that are released at various times. Below you can find a list of the most important USD news release you should be aware of:

  • Core Retail Sales
  • Core CPI
  • ISM Manufacturing PMI
  • Preliminary & Advanced GDP
  • Federal Funds Rate (Interest Rates)
  • Non-farm Payrolls

Of course these are not the only fundamental indicators you need to be aware of. There are also several meetings that can provide you with additional information that may affect a market. These meetings usually focus on interest rates, inflation, and other causes of currency value fluctuation.

Sometimes a volatile market is caused by something as simple as the wording of issues such as the Federal Reserve chairman’s discussion on interest rates. The most significant meetings you should be aware of are the Federal Open Market Committee. Simply studying the commentary can help FOREX fundamental analysts to better understand long-terms market trends and can also help short-term traders capitalize on the market.

Should you opt for the fundamental strategy, you should keep an economic calendar on hand so you know when these reports are available. Your broker should be able to keep you up-to-date on this information as well. Below are a few links to all of the Central Banks around the World:

The website below provides a Free Forex News calendar that you should make a habit of looking at everyday.

When you start trading, we recommend to sit on the sidelines and not trade during these events. News releases can create volatility in the market 15 minutes before and after the news event is released. For advanced traders we also offer proprietary trading strategies for Forex News Trading used by Professional Forex Traders.

Technical Analysis – Helps FOREX traders analyze price patterns for the past much like their counterparts in the equity market. The only difference is that FOREX markets are open 24 hours every day. In order to work with that 24 hour a day time frame, some types of technical analysis to be changed or modified. The following is a short list of technical analysis tools that are most commonly used in FOREX:

  • Price Movement
  • Fibonacci Studies
  • Moving Averages
  • Stochastic Oscillator
  • MACD (Moving Average Convergence Divergence)
  • Candlestick Charts
  • Elliott Waves
  • Pivot Points

There is so much more to learn but again this is a free five day course.

Take the Next Step…

CLICK HERE to Start Watching the FXST™ Start Forex Now Video Series

Chief-Master Trader, Armando Martinez

To Your Success,

Armando Martinez
FxST Chief Master Trader

P.S. Thank you for taking the time to allow me to
teach you a little about Forex trading, I hope you’ll
take me up on my offer to teach you more!