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 © 2021 - Homemade Loving's
All rights reserved.
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
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.
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.
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.
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.
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 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 a maximum period of 2 bank working days between the day on which the transaction is concluded and the day on which the claim is fulfilled.
The currency swap transaction
A foreign exchange swap (also known as a swap in short, derived from English to swap exchange) is a combination of a spot and forward foreign exchange sale or vice versa. Here the currency exchange of 2 currencies on the day,
on which the transaction is concluded. However, the redemption action will be carried out at a later date. As this is a combination with a forward exchange transaction, the swap solutions also fall under a currency hedging transaction.
The currency option business
A currency option transaction gives the buyer the right to deliver or purchase a currency at a specified rate and on a precise date within a specified period of time. So that then the buyer receives the option of this right, the seller receives a price from him (the so-called option premium). The seller then has the obligation to provide or receive the currency.