How does the Forex market work? - Free training course in Forex lesson 8

Even understand how the Forex market works , I will tell you the story of the trader, "John," John is a new dealer in the market to trade foreign exchange tells us his story quickly about the first day he began of trade in this market.

He says, I saw the ad in site "http://www.accurateforexsignals.info/" for the Forex profession and free training course in Forex and that I can trading in the foreign exchange of online so I was impressed by the idea I learned at their educational and trained on what I have learned through the demo account for a period of two months.

And I had known from the site http://www.accurateforexsignals.info/ that there are 3 types of accounts in Forex vary according to the size of the deposit:

Micro account may begin to deposit $ 25 and can open it deals 1000 paper currency per deal, and the lowest point is calculated at 10 cents.

Mini account may start to deposit $ 100, and it can open trades at 5000 sheets of currency per deal and more, and the lowest point is calculated at 50 cents.

Standard account may begin to deposit $ 2,000 and can open it deals with 100,000 sheets of currency per deal and more, and the lowest point is calculated by $ 10.

After I opened the account with a brokerage firm, and signed agreements with the opening of my record account which was opening within 24 hours, I deposited by the amount of $ 10,000.

And the next day I woke up at 8:00 GMT, and it was my first day of trading in the Forex began briefed on the news market and identified the most important economic reports that may affect the currency pair EUR / USD, which I  intended trading when it Germany Stock Exchange opens at nine in the morning.

I decided to buy the euro (ie sell the U.S. dollar interchangeably with the purchase of euro) probably about ten o'clock GMT, and in the case if news released of the employment report and the employment that awaited come much better than its predecessor in the last month for the euro currency, and as analysts expected market the result of this news, but if the report was issued bad about the euro I will sell the euro (dollar buying any interchangeably with the sale of the euro).

The time was about 9:00 so I did my technical analysis for currency pair and I saw that the direction of the euro better upward it may be that the euro is the strongest for the day...

And when the tenth o’clock comes, the report was issued more than excellent for the euro , yes my mental now more comfortable became confident in my news and technical analysis, and began to enter a purchase order for the euro against the dollar and set the size of the deal was a lot size of $ 100,000 financing at the margin provided by my brokerage firm from Bank , and my balance was there safety margin on the transaction is $ 1,000 until the end of the deal then shown me the value of the margin of safety is due to the company for the value returned by the facilities to the bank.

And placed stop-loss orders on the deal up to 30 points, and I know very well that this is the time of a medium degree of risk because it is the time of the news.

the difference in the spread Was between the purchase price and selling 3 points on a pair: EUR / USD, I  made a purchase order at a price of 1.3420 and set goals of profit even 1.3450 Fortunately, the pair moved more than 25 points in minutes, and stopped the movement and the price started to decline slightly with 10 points and I could I open a new deal, but this time to sell the euro and win this 10 points for me, but I preferred to continue on the upward trend with the euro and do not stand against it …

Suddenly news issued an important policy were not in favor of the dollar, pushing the price of the euro strongly higher profit they made my goal towards 1.3470 instead of 1.3450.

Yes I was lucky this day euro has arrived until 1.3510 Yes, I gained a lot gained about 50 points, each point of $ 10 net profit is $ 500, and it was possible to win more if the deal at 1.3510 but I'm sticking to the rules of the strategies that trained them and will not I replace it, I hope, will never.. 

This was the story of "John" seems of it, that the currency is moving in a particularly strong time of the issuance of the news and even the time of political news and his words clear to us that it was able to buy and sell at the same time because it deals with known Pair, this is unlike the stock market, which is where the deal either only buy or sell either all, but preferred to trade with the market trend.

Example John profit is from the purchase deal in the EUR / USD	Euro	Dollar
John bought Lott with 100,000 sheets of the euro at the exchange rate of 1.3420 against the U.S. Dollar	+100.000	-13420
A few minutes later John replaced the 100,000 euros into dollars at the exchange rate of 1.3450 for the euro against the dollar	-100.000	+13470
Thus profit John was of U.S. $ 500	0	+$500

The beginning of the open deal

the size of the deal Based on financing margin 100,000 × 1.3420 euro exchange rate to open a deal to buy the EUR / USD = 13420 dollars due to the size of the deal

Close the deal

the size of the deal Based on financing margin 100,000 × 1.3470 euro exchange rate closed the deal to buy the EUR / USD = 13470 dollars due to the size of the deal after the change in the exchange rate

Net profit and loss

So $ 13,470 -$ 13,420 = 50 points profit (excluding Spread)

50 points × the size of the deal $ 100,000 = $ 500 net profit without adding any interest or discount as every point is calculated by $ 10 multiplied by 50 points is equal to $ 500.

Here's a question...

What does the Forex market move?!!

Simply because the Forex market is moving...

(1) The release of economic news or economic results of the daily news agenda.

(2) Changes in the cases of inflation and the strength or weakness of the country's economy her currency.

(3) The decisions of central banks around the currency.

(4) Changes news that occurs on interest rates in the major currencies.

(5) News World stock markets and the equity markets and the oil market and the market of gold and silver, etc...

(6) Important political news and any news that may affect the market situation.

Here is another question...

How to take advantage of these changes in the market and achieve of them profits for us!!

Simply the foreign exchange market in which to buy or sell currencies based on the introduction of orders to buy or sell to a program trading after a study determining the status of the state's economy its currency, the idea of trading in the currency exchange is to replace one currency for another on the basis of the forecast price changes in the incident because of the growth or deterioration its country's economy this currency, so any currency that you bought that you expect will increase its value compared to the one that sold it.

In short... We buy the currency in which the country's economy and stronger economic and political news better, and sell the currency in which the economy is weak and her weak economic news and political bad.