HIGHKEYFX FOREX TRADING

BEGINNERS’ GUIDE
Table of Contents
CHAPTER ONE ............................................................................................................................................... 3
INTRODUCTION TO FOREX ............................................................................................................... 3
WHAT IS TRADED ON FOREX..................................................................................................................... 6
CHAPTER TWO .............................................................................................................................................. 7
WHO IS A FOREX BROKER? ................................................................................................................ 7
CHAPTER THREE............................................................................................................................................ 8
TRADING TIMES AND TRADING SESSIONS ................................................................................................ 8
CHAPTER FOUR ........................................................................................................................................... 11
TERMINOLOGIES USED IN FOREX.................................................................................................. 11
CHAPTER FIVE ............................................................................................................................................. 14
FORMS OF TRADING ............................................................................................................................... 14
FUNDAMENTAL ANALYSIS ...................................................................................................................... 14
WHAT NFP ENTAILS................................................................................................................................. 16
INTERPRETATION OF NFP ....................................................................................................................... 18
TECHNICAL ANALYSIS .............................................................................................................................. 19
CHAPTER SIX ............................................................................................................................................... 20
CURRENCY PAIRS..................................................................................................................................... 20
THE FULL MEANING OF THE CURRENCY SYMBOLS................................................................................. 21
CHAPTER SEVEN ......................................................................................................................................... 26
WHEN DO YOU BUY AND SELL? .............................................................................................................. 26
CHAPTER EIGHT.................................................................................................................................. 29
HOW TO REGISTER ON EXNESS STEP BY STEP ........................................................................................ 29
HOW TO CREAT REAL TRADING ACCOUNT ON EXNESS.......................................................................... 34
HOW TO LINK YOUR EXNESS TRADING ACCOUNT TO MT4 .................................................................... 37
CHAPTER NINE .................................................................................................................................... 39
PIP AND PIPS CALCULATION ................................................................................................................... 39
WHAT IS A PIP? ....................................................................................................................................... 39
PIPS CALCULATION.................................................................................................................................. 40
CHAPTER TEN.............................................................................................................................................. 50
CONCEPT OF BID PRICE AND ASK PRICE ................................................................................................. 50
SPREAD .................................................................................................................................................... 53
CHAPTER ELEVEN ........................................................................................................................................ 54

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 MARKET ORDERS (TAKE PROFIT AND STOP LOSS) .................................................................................. 54
TAKE PROFIT;........................................................................................................................................... 54
STOP LOSS ............................................................................................................................................... 60
CHAPTER TWELVE ....................................................................................................................................... 65
LOT SIZE................................................................................................................................................... 65
CHAPTER THIRTEEN .................................................................................................................................... 68
LEVERAGE ................................................................................................................................................ 68
CHAPTER FOURTEEN .................................................................................................................................. 71
CONCLUSION........................................................................................................................................... 71
CONTACT ME........................................................................................................................................... 72

THE CONCLUSION HAS

SOMETHING YOU MIGHT NEED
SO;
MAKE SURE YOU READ TO THE
END!!

2
CHAPTER ONE
INTRODUCTION TO FOREX

Forex is just a short form for Foreign Exchange where one foreign
currency is exchanged for another.

It is larger than New York Stock Exchange market and

the Crypto market combined.

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The Crypto market, the second-largest market, has a
daily trading volume of $2.48 trillion, as we can see in
the statistics above.

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The New York Stock Exchange, the third-largest
market, has a daily trading volume of $169 billion, as
we can see in the statistics above.
That is to show the massive liquidity in the forex
market. That is how large the forex market is. So, we
have seen a brief introduction to the forex market. We
would still see more, but let's move on for now.

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 WHAT IS TRADED ON FOREX
Someone would ask, what is traded on the forex market? This is
not the market where you buy your clothes or shoes. This is not
Circle, Oshodi, Accra Mall or your regular local markets in any
part of the world you are.
We trade the following in the financial market;

So, what is done is that we are constantly transacting

in the above items listed. I will take you through how to
trade on them, so follow the lessons closely.

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CHAPTER TWO
WHO IS A FOREX BROKER?

Forex Brokers are firms that give you access to the FOREX
MARKET. They provide you access to the financial market by
providing a trading account for you, and they give traders what we
call leverage. (we would see that soon), they also offer support
functions to the traders. Various brokers in the forex market are,
Icmarkets, Exness, Hotforex, Fxtm, LiteForex, Avatrader, etc. My
recommended broker is; Exness:
https://one.exness.link/a/umh2md35.
We will still talk about brokers in detail, but you
are now aware of their functions and what they offer
the traders.

Let's move on to the next topic!!

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CHAPTER THREE
TRADING TIMES AND TRADING SESSIONS

We are entering into the most crucial part of this forex training. If
you were distracted before, focus now because your proper
understanding of the forex market would be determined if you
know the forex cycle.

There are various trading times and trading sessions in forex,

including Sydney Session, Tokyo Session, London
Session, Frankfurt Session, and New York Session.

The session names are derived from the major cities where most
of the transactions are done. For example, the Sydney session
represents Australia and other countries around that time zone,
Tokyo session, sometimes called the Asian session, represents
Japan and some Asian countries.

London session represents the United Kingdom and the countries

within it. In Germany, the Frankfurt session represents Europe,
while the New York session represents the Americans. Forex is a
24 hours market. It is often regarded as the Market that never
sleeps because it's open for 24 hours every day except on
weekends. Let's now get to their trading times because each
session has its opening and close times.

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 SESSIONS OPENING TIME CLOSING TIME
Sydney Session 9:00pm GMT 6:00am GMT
Tokyo Session 11:00pm GMT 8:00am GMT
London Session 7:00am GMT 4:00pm GMT
Frankfurt Session 8:00am GMT 5:00pm GMT
New York Session 1:00pm GMT 10:00pm GMT

Note that these times are listed in GMT, Greenwich Meridian

Time, so you should do the appropriate calculations depending on
your country's time zone to know which session you are currently
on.

All sessions last for 9 hours, so having known their opening times,
to get their appropriate closing times, add 9 hours to the opening
time to get when they would close. There is an important thing to
note here; many forex traders don't understand because nobody
taught them. It is always good to trade when two markets are
open simultaneously. Thus, when two of the sessions are
available, take note.

This is because volatility is always more when two or more

sessions are available, and in the forex market, more volatility
means more money. As a forex trader, you wouldn't want to trade
a quiet market because there won't be many fluctuations and
those movements make money for us.

You will come to understand these soon and know what I mean.
For example, by 12:00 am GMT, the Sydney and Tokyo sessions
would be open together, which would have more volatility than
someone trading at 9 pm GMT because the market would be
quiet.

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Another Example is by 8 am GMT, London Session and Frankfurt
Session would be open. Even Tokyo would be with them briefly, so
you would notice that volatility would increase during such times.
So as a forex trader, always time your trading to fall in periods
where two or more markets are open simultaneously.

By doing that, you would always have an edge in the market. We

would be learning more important things; let's follow the training
closely.

I'm aware some of you have heard about forex, though you may
not have known how to trade the market. Also, some of you have
friends that trade forex, but the wicked part is that most of this
your friends won't teach you. Instead, they would buy you exotic
drinks in clubs and take you and your spouse out, but they would
never teach you how to trade forex.

The only thing you would see your friends do is pop champagne
in clubs, but they would never teach you or show you how to
make this money. He wouldn't want you to come to his level. I
used to tell people that hoarding knowledge won't make you
progress. You progress faster when you share this knowledge.
And the beauty about forex is that one's profit doesn't hinder the
next person's own.

We will see all these soon;

So, follow the training in this eBook closely and take it seriously
because this is a rare opportunity that only a few people tapped
into. This rare opportunity is not for everyone.

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CHAPTER FOUR
TERMINOLOGIES USED IN FOREX
Like every field you try to learn, you must get accustomed to its
terms and terminologies.
So also is the field of forex, you would need to learn about the
terminologies able to communicate with the market, analysts and
you may be among the gathering of forex traders.

Still, you won't understand a dime of what they are saying; this is
because you don't know the terms. So that is what we would be
learning in this section.

For every new field you embark upon in life; you would encounter
new terminologies and terms which is peculiar to such area, be it
Law, Medicine, Journalism, Engineering etc. so also is a forex, for
you to be able to learn and trade, you should get to know some of
the terms that are used in forex trading so that you can
understand the News, flow with your fellow forex traders and
understand analysts.

You would have to get yourself acquainted with their

terminologies to communicate properly.

To go long means to buy. If a trader tells you that he went long

on a currency pair, he indicated that he bought the pair.

To go short means to sell. Also, if a trader tells you that they

short a currency pair, they sell the pair. Soon, you would see that
all we are doing in forex is just buying and selling.

Bullish market: a market that is going upwards.

When someone tells you that a currency pair or a commodity is
bullish, they are telling you that it is going up.

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Bearish Market: A market that is going downwards. When
someone tells you that a currency pair or a commodity is bearish,
they mean it's going down.

Bulls: The buyers are referred to as bulls.

Bears: The sellers are referred to as bears.

Ranging market: A market is said to be ranging if it does not

have any particular direction. It's neither moving upwards nor
downwards. So, you may hear people tell you that the market is
just ranging. They indirectly tell you that the market has not
found any direction yet.

Trending market: A market that has a direction. It's either

moving upwards or downwards. So, you can hear people say a
market is trending upwards or the market is trending downwards.
Hawkish: this term is mainly used when referring to a country's
central bank governor or personnel. When they are hawkish, they
tend to be liberal on the interest rates and are willing to increase
them. This is good news for investors.

Dovish: this is the opposite of hawkish. Financial personnel who

are dovish are very restrictive. They do not want to tamper with
the interest rate. They even want to reduce it, and it's bad news for
investors.

N.F.P: An acronym for Non-Farm Payroll. We will talk more

about a significant news event in the U.S. very soon. Also, most
currency pairs have specific names in which they are called. For
example; The Dollar is sometimes called Greenback. The Pound
is called the Cable, and the New Zealand Dollar is called
the Kiwi.

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The Australian Dollar is the Aussie. You would get to know them
as you go along with the reading. It's just to get you acquainted
with the most popular ones so that When you see fellow forex
traders discussing, you can tag along easily.

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CHAPTER FIVE
FORMS OF TRADING
There are two forms of trading in forex. Sometimes, they are
referred to as Analysis. We have
the Fundamental and Technical Analysis.

FUNDAMENTAL ANALYSIS
this is also known as news trading. Here, you are analyzing the
forex market concerning the news. It's been said that news is what
moves the market. Every day, various news is being released by
some major countries that play a significant role in the financial
market. They either positively or negatively affect the currency
pair involved. Then you make your trading decision based on the
news you heard.

We see all these News on CNN, BLOOMBERG, CNBC, etc. Your

mt4 app has a summary of the news section. Some sites like
forexfactory.com, dailyfx.com, etc., give you an overview of this
news. We would come to see them later. Whether the news is
positive or negative, as a forex trader, that is none of your
business because you make money both ways. Those into crypto
trading would tell you that you only make money when a coin
appreciates, but we make money both ways in forex.

If a currency pair would appreciate, we go long on the pair, and

when a currency also depreciates based on the news, we go short
on the pair. Like many traders do every day, they buy and sell
some, so, in forex, you make money on both sides of the news. We
would come to see how to trade the news.
We would be discussing a piece of important news released by the
united states. even though there are news releases every day. We
forex traders refer to it as the king of all news called
the N.F.P. (Non–Farm Payroll). This is a piece of news released

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by the United States of America. Among all the news released by
the U.S.A, this is the highest because it causes the most volatility
in the market. Volatility means making the market fluctuate and
hurry in a particular direction. Let me give you an example;
We calculate profit in pips (we will talk about pips soon). I made a
trade; it was averagely about 89 pips in my favour, and I traded
about three currencies to make that. On a day of N.F.P, you don't
even need to trade that many currency pairs to make such a
profit.
Just one currency pair could make a move of 100 pips within 5
minutes. We will all see this soon.

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 WHAT NFP ENTAILS
Non-Farm Payroll is one of the biggest news that every trader
awaits. It's a piece of news containing various data and statistics
released by the U.S Bureau of labour and statistics. It's very
influential as an indicator of the U.S. economy because the U.S.
Federal Reserve makes monetary policy decisions based on this
data. Hence investors, financial analysts, forex traders, stock
traders make trading decisions with the news. It is released every
1st Friday of the Month by 12:30 pm GMT. The data released
include;

1. In the previous month, some new jobs were added in the

U.S. labour sector. (These data include employment in
the manufacturing industry, construction sector, goods
sector, etc.
Excluding farm workers, hence the name. Also
excluding private household employees and nonprofit
organizations).

2. Which sectors of the economy these jobs were added.

It mainly gives investors and traders the possible
sectors to invest in as the sector that added more jobs
would most likely have experienced growth.
3. The unemployment rate of the U.S. in that particular
month.
4. It also includes the average hourly earnings of the
workers in the U.S. This is also an economic indicator
because even if the number of workers didn't change,
however their earnings increased, it would have the
same effect as if their number increased. The same
also could be interpreted in reverse if their earnings
are reduced. It also includes the average hourly

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 earnings of the workers in the U.S. This is also an
economic indicator because even if the number of
workers didn't change, however their earnings
increased, it would have the same effect as if their
number increased. The same also could be
interpreted in reverse if their earnings are reduced.
5. Then lastly, the data includes a revision of previous
Non-Farm Payroll because investors compare these
values to see whether there has been an
improvement or reduction.
This also gives you an idea of whether the economy is
growing or not.

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 INTERPRETATION OF NFP
So, when more jobs are added, business ventures are growing and
remember that these newly employed would be paid. More people
would have money to spend on goods and services, increasing the
economy's growth and standard of living for the citizens.

However, when the number of jobs added is reduced, the reverse

occurs. People won't have money to spend on goods produced and
services hence crippling the economy.

Also, the U.S. government has an amount of money paid to the

unemployed. When more jobs are added, more people will be
employed. This reduces the unemployment rate. As the
unemployed citizens are reduced, less money leaves the
government's pocket, boosting the economy.

So, this is just a breakdown of what N.F.P. entails and why it's so
volatile. It's usually released 1st Friday of every month. No forex
trader fixes his wedding or party on the first Friday of any month
except it's a night event. So, as a forex trader, never miss it. If you
are driving and it's 12:20 pm GMT, park and trade your N.F.P. and
continue where you are going.

If you are sick (God forbid), tell them to give you your phone that
Friday, because you can't miss N.F.P. That's how big it is. Some
traders trade once a month; they fund their accounts, especially for
N.F.P. and close for the month.

I don't trade N.F.P. because it doesn't impact the financial market

for long. It only lasts for 5 to 10 minutes.

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 TECHNICAL ANALYSIS
This form of trading analyses the market using indicators, charts
patterns, candlesticks, Fibonacci, support and resistance, pivot
points, Elliott waves etc.

When you use any of the above to analyze the market,

miscalled Technical Analysis.
It's the most popular form of trading. This is because high volatile
news is not released every day, so you can't just depend on
fundamental analysis alone. Every day can't be Christmas! So as a
forex trader, you must learn how to trade the market
using technical analysis.

Among the two primary forms of analysis, none is superior to each

other and also none is used in isolation. So, you would learn as we
move on how to harmonize the two to keep you on top constantly.

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CHAPTER SIX
CURRENCY PAIRS
For this lesson to be more interactive, you need to download an
app on play or Appstore called, Metatrader4.

If you download the app,

you will see the currency
pairs listed in the image
beside.

If you can't see where the

currencies are listed, kindly
click on where the arrow is
pointing at(quotes).

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 THE FULL MEANING OF THE CURRENCY
SYMBOLS
CURRENCY SYMBOLS MEANING
EUR EURO
USD UNITED STATE DOLLAR
GBP GREAT BRITISH POUND
AUD AUSTRALIAN DOLLAR
JPY JAPPENES YEN
NZD NEWZELAND DOLLAR
CHF SWISS FRANCE
CAD CANADIAN DOLLAR

These are some of the lists of popular currencies traded on the

forex market with their abbreviations and full meanings. As you
observe on your MT4, they are primarily written in their
abbreviation. Now, let’s proceed with the topic. If you Look at
those Currencies listed up there, you will discover that they are
listed in pairs. For example, EURUSD, USDJPY, GBPUSD and the
rest are currency pairs.

Among those pairs of

Currencies,
The first currency within the
pair is called
THE BASE CURRENCY
Whiles;
The second currency within the
pair is called the QUOTE
CURRENCY.

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An important thing to note here is that the base currency is always
stronger than the quote currency (with few exceptions, and we will
see why soon).

Let's take EURUSD as an example.

Euro is stronger than U.S Dollars. (I
believe we all know that).

Hence EURO is the Base while USD

is the Quote.

In this second example, US Dollars

is the Base while the Japanese Yen
Is the Quote because the USD is
stronger than the Japanese yen.

Because the USD is stronger than the

Japanese Yen

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 Also, you would see some sets of numbers written beside each of
those pairs. Just focus on the first number for now.

For example,

In this EURUSD besides, it’s

showing you;
EURUSD………1.1513. That
number is telling you, how
many units of the Quote
Currency you would need to
get 1 unit of the Base
Currency.

I will explain in detail now. Let me use a Local scenario to give you an
example. If you have a Currency pair between USD and Cedi, this
USDGHS = 5.50; This is first telling you that USD is stronger than Cedi;
hence USD is the Base and Cedi the Quote.

Then the next important thing it's telling you is how Many Quote
Currencies you need to get 1 Unit of the Base Currency. So, in this case,
you would need 5.50 cedis to get $1.
So, that is what that number by the side always tell you, how many quote
currencies do you need to get 1 unit of the base currency.

23
Let me give another example to make it more straightforward.
Let's say USDJPY is at 112.44. It's Currently telling that you would
need 112.44 Japanese Yen to obtain one U.S. dollar.
Like I said earlier, the base is always stronger than the quote;
there are occasions in which is stronger ones are written as the
second pair.

Examples include;
• AUDUSD; U.S. dollars is stronger than Australian dollars.
• EURGBP; Pounds is stronger than Euro.
• USDCHF; Swiss Franc is stronger than United States Dollar.

When you see these few exceptions, don't bother about why the
weaker one is written first, even though it's pretty glaring that the
quote is stronger. What you need to do is to look at those numbers
beside it.

So, these I highlighted in the image

are the exceptions. In these, the
quotes are stronger.

You would notice that they would

always start from zero point
something.
E.g., 0. yyyy, like you see in the
image. AUDUSD is at 0.7087,
starting from 0.

That shows you that the quote is

greater.

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However, apart from those few exceptions, the base is always
stronger than the quote generally in forex.
However, no matter which one is written first, always knows that
the price you see beside it is how many of the quote
currency you would need to get 1 unit of the base currency.

25
CHAPTER SEVEN
WHEN DO YOU BUY AND SELL?
Now, people always get confused because those who taught them
used the wrong semantics. You buy when you know that the
market would go up while you sell when you know that the
market would go down.

If you notice, I carefully labelled "would". I didn't say you buy

when the market is going up. Assuming I said that too, I would
still be correct, but you would get more confused. You would start
asking, who buys any item when it's going up?

As usual, I would use a practical scenario to explain this topic.

This seemingly complex concept will look very easy to you by the
time I'm done. Nothing is complicated in forex. Just tell yourself
that if young boys who are not even half as educated as you can do
this, you too can do it.

Let me use this analogy to explain what I mean. For those of you
who are not from Ghana, I would use two names in this brief
analogy
Name 1: Akufo Addo (He is the current president of Ghana).
Name 2: John Mahama (former president).

Now let's get to the analogy to understand in a

layman's way how forex works:
When John Mahama was in power, the dollar was around 5Cedis.
When Akufo Addo entered power, some of you would recall that
around 2016, at some point dollar shot up to 6 Cedis per one.

Assuming you knew the dollar would appreciate against cedi like
this and you had GHS200,000 lying fallow in the bank account,
you learned from your experience as a forex trader that

26
uncertainty in government weakens a currency pair. You used
your GHS200,000 and bought dollars to keep in 2015.
It would give you $40,000. Now one year later, the dollar just
escalated to 6 Cedis per one, and you went to the bank, cashed out
your $40,000 and exchanged it back to Cedis. It would now yield
GHS 240,000 (remember you just stocked GHS 200,000).
That means you made a profit of GHS40,000.

Now ask yourself, did you use that GHS200,000 for any
business? The answer is NO. You practically did nothing, but
what just happened there was forex.

You leveraged the fluctuations in the price of Dollar to Cedis to

make yourself money without doing anything. You just sat at
home while the foreign exchange market did the job for you.
This is basically what we do in forex. This is not the normal
market in Kejetia or Makola, where you buy and sell clothes. Lol.

This is just a raw analogy because, in the forex market, it's even
more interesting. You don't have to wait for years or months to
make money; these currencies we trade constantly fluctuate in
minutes and seconds (what is referred to as volatility among
traders). So, it's those opportunities caused by these fluctuations
in the price of one currency with respect to another that forex
traders make their money from because these happen daily.

That's why banks would never allow you to learn forex trading;
they prefer you come to their banks and fix your money for
meagered interest rates.

To even shock you, Investment banks contribute more than 70%

of the total liquidity in forex; they use your money to trade, drive
big cars and live in big houses and give you peanuts as interest or
meagered amounts as salary.

27
You notice that you didn't buy or sell any tangible commodity to
make money in the above analogy. You took advantage of changes
in the exchange rate.

So why did you buy USD/GHS in the above scenario? You bought
USD/GHS because you knew beforehand that the
value would rise. Take note; would.

In summary, we have seen that we buy when we know a currency

pair would rise, and we sell when we know a currency
pair would fall.
The big question is, how do we know when it would rise and when
it would fall?

That is What Technical Analysis would tell you…

Candlesticks, Fibonacci, Elliott waves, Indicators, Pivot point,
etc., are used to determine the market's next direction.

For HighkeyFxGang, we have a straightforward approach to

determining the market's next direction. We don't use the
majority of the tools mentioned above. We depend solely on pure
price action analysis. Just take the lessons seriously; we are
getting there.

But before then, you have to create an account with any of the
brokers I spoke about in this eBook. But like I said before, my
recommended broker is Exness. Use the link to
register: https://one.exness.link/a/umh2md35

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CHAPTER EIGHT

HOW TO REGISTER ON EXNESS STEP BY

STEP

Use the link: https://one.exness.link/a/umh2md35

1. Step One

Click/Press the open account

button

29
 2.
Select your country, enter your email and
password (special characters like @, #, $, %, &,
*, etc. won’t be accepted). Use upper and lower
cases and numbers in the password.

30
 3.

Here, click/press the real account

button.

31
 4.
To help secure your account, Exness requires its users to
verify their accounts. Click on become a real
trader button to start the verification process.

32
 5.
➢ First click/press send code button. A code will be
sent to your Gmail, copy the code and paste it in the
space they will provide to verify your Gmail.

➢ Next, enter your phone number. A code will be sent

to your phone number to verify it.

➢ Last for this step; they have to verify your identity or

personal information. You will be asked a few
questions, and after that, you will be required to
upload either a national ID, Voter ID, Passport,
Driving license, etc. Capture and upload any of the
documents mentioned. The last thing they will
verify is your proof of residence. A bank statement
or electricity or water bill bearing your name can be
used.
➢ Note: Without proof of residence verification, you
can only trade real accounts for some days.
(Ranging from 30 to 40 days). Done.

33
 HOW TO CREAT REAL TRADING ACCOUNT
ON EXNESS

1.
Here, you have to archive the already trading account.
Click on the Settings button beside the trading account
and click on the archive account. To create your account,
click/press Open New account.

34
 2.

➢ Choose real account, and a trading platform, MT4 or

MT5. Use MT4 as a beginner.
➢ Set leverage to 1:600.
➢ Choose a currency (normally USD).
➢ Account name can be your nick or real name.
➢ Now choose a trading password.

35
 3.

To connect MT4 to Exness, you need the following:

➢ You need your trading account server.
➢ Account login.
➢ Account Password: The password you used for the real
account.
➢ Click on the settings button beside your account and go to
3 account information. You will see your account server and
login there.

36
 HOW TO LINK YOUR EXNESS TRADING
ACCOUNT TO MT4

37
 Type Exness and choose your
server.

Enter your login and

password and hit the sign in
button

38
CHAPTER NINE
PIP AND PIPS CALCULATION

This chapter marks the real beginning of your forex journey.

Please start right from this chapter if you have not been focused
before. All that we have been learning since are introduction; from
here, we are creating the main foundation.

WHAT IS A PIP?
Pip is the bedrock of everything; I repeat everything we will be
doing in forex. If you miss the concept of pips here, your
foundation is going to be shaky all through your forex journey.
Currencies are calculated in pips; trade orders are placed in pips,
profits are calculated in pips. Practically everything we are doing
in forex involves pips. So, take your time to understand this very
important topic.

Let's proceed. Pip can also be a standardized unit and the smallest
amount by which a currency pair in the forex market can change.
It's just like the cell of forex, I should say. As you go further, you
will learn that smaller versions are called micro pips. But let's not
get anything complicated for now.

39
 PIPS CALCULATION
This is where I need maximum concentration from you. If you
were distracted before in reading this eBook, from here, please
stay focused. We start calculating the pips from the 4th decimal
place for most currency pairs in forex.

However, there are few exceptions, so we would start with the

general ones then proceed to the exceptions. So, before I start, let
me repeat, the pip is being calculated starting from the 4th
decimal place (keep this in mind). So, ignore that number
superscript beside all the pairs.

So, from the EURUSD in the

image beside, you start
calculating the PIP from the
4th decimal digit, "0".
If EURUSD, which is currently
at 1.1390, moves one pip up, its
new value would become
1.1391.

40
Currency moves generally in forex are measured and
calculated in pips. So how did I get the 1.1391 above? I added 1
to the 4th decimal placed number there, increasing it from "0"
to "1".

Let's still have another example;

Let's Take a Look at

GBPUSD (i.e. Pounds Vs US
Dollars) which is currently at
market price of 1.2885.

Now if GBPUSD makes a

move of 2 pips up from that
current value, its new value
would be at 1.2887.

Now how do we get this

1.2887? We added "2" to the
4th decimal placed number
which is "5" and it increased
to "7".

41
Let's do one more example before we go to the main
calculation.

Let's look at EURGBP in the

image beside, at a current market
value of 0.8843.

If EURGBP moves five pips up

from that value of 0.8843, the
new market value would be
0.8848. How did we get that?
Once again, we added "5" to the
4th decimal place number, which
was "3", and we got "8".
Hence our new value was 0.8848.

42
Now, this is just a shortcut; let's get to the actual calculations.
A pip for a four decimal placed unit is 0.0001.

So, we would use this second but long method and do the three
calculations we did above.

For example, we gave where EURUSD moved one pip; the

actual calculation is 0.0001 x 1 = 0.0001. Therefore, you add
0.0001 with your calculator to that original value of 1.1390.

So, we have 1.1390 + 0.0001 = 1.1391. You see that this

method looks longer, though it's the real way of calculating it,
and we got the same answer.

In the first method, we just directly added 1 to the last decimal

placed number of that value of 1.1390, and we immediately got
1.1391.

Let's see the second example where GBPUSD moved by two

pips;

From that value of 1.2885, I said GBPUSD made a move of 2

pips. What would my answer be? I will add 2 to the 4th
decimal place of 1.2885 and my answer as 1.2887.

Let's see the long method.

Since I was told that the market made a move of 2 pips up, I
initially told you guys that one pip for a four decimal place
currency pair is 0.0001. So, if the move made by GBPUSD is 2
pips up, we will have:

43
0.0001 x 2 = 0.0002. I would now add this 0.0002 to the
original value of 1.2885

We would now have 1.2885 + 0.0002 = 1.2887. Same answer as

the one above.

Let's go a little bit higher. I will give examples soon for you to
solve.

Assuming we were now told that GBPUSD made a move of 10

pips from 1.2885, we would, as usual, add figure 10 from the
4th placed decimal number, and we would have our new value
as1.2885 ===>>>> 1 2895.

Let's now see the long method again;

The move made was 10 pips up, remember that 1 pip = 0.0001.
So, 10 pips movement would be:

0.0001 x 10 = 0.001 (notice the zeros reduced). So, to get the

new value of GBPUSD we have;

0.001 + 1.2885 = 1.2895 (same answer)

Since the shortcut is easy, I know someone would ask why

teach us this long method? As we go higher, it gets more
complicated, especially with numbers that are not round.

We will see that soon; for now, let me give you guys examples
to solve and give me the answer using any method of your
choice.

44
 Let me use USDCHF (i.e. US
Dollars Vs Swiss Franc) at a
Current price of 0.9967 to give
you examples to provide the
answers by yourself.

LET'S START WITH THE

SIMPLE ONES.

Assuming USDCHF makes a

Move 2 pips up.
What would be the new value
of USDCHF?

a) 0.9969
b) 0.9965
c) 0.9928
d) 0.9921

Have you gotten the

correct answer?

Let's now go a little bit higher.

Assuming AUDUSD makes a
move of 20 pips up from
0.7063. What would be its new
value?
a) 0.7043
b) 0.7041
c) 0.7093
d) 0.9774

45
 The pip calculation starts from the 4th decimal place for
most currency pairs in forex. Now some currency pairs are not
up to 4 decimal places. Some of them have specific ways of
calculating them. Those pairs are the JPY pairs. Example;
USDJPY, EURJPY, GBPJPY, AUDJPY, NZDJPY, etc. Another
famous example is Gold, i.e. XAUUSD.

Let’s start with JPY pairs;

For JPY pairs, E.g. USDJPY. The

pips calculation starts from the 2nd
decimal place digit. If you notice
that it's not up to 4 decimal places
like we did before.

Let's see some examples.

46
From that image of USDJPY above, it's currently at 112.24. If it
makes a move of 2 pips up from that value, the new value would
be at 112.26. How did we get this?
We started by adding "2" to the second decimal place number,
which is "4", and it increased to "6". That's how we got 112.26.

Let's go to the lengthy method;

Remember that for JPY pairs, one pip equals 0.01. Hence from
the above example, since it made a move of 2 pips up, we have
0.01 x 2 = 0.02; adding 0.02 to the original figure, it would now
become 112.24 + 0.02 = 112.26. Same answer as above.

Let's go a little bit higher; Assuming USDJPY made a move of 10

pips up from that value of 112.24, the new value by simply adding
10 from the 2nd decimal place number would be 112.34.
Using the long method
For JPY pairs 1 PIP = 0.01. Hence 0.01 x 10 = 0.1, adding 0.1 to
the original value, we now have 112.24 + 0.1 = 112.34. Same
answer.
The works below are for you, the reader.

1. Let's start simple and move

higher. Let's take a Look at
EURJPY at a Current value of
127.82. If it makes a move of 4
pips. What would be its New
Value.?

2. Assuming EURJPY in the

image beside made a move of
50 pips from that value of
127.82 downward. What would
be the new value?

47
Now, Let's wrap up the exceptions by calculating pips on gold, i.e.
XAUUSD. Gold is represented as XAUUSD because if the
chemical formula for gold in the periodic table is AU, some
brokers write it as XAUUSD instead of gold. It's the only pair in
forex that can move over 1,000 pips a day. Interesting right?

For Gold, i.e. XAUUSD, the pip

calculation starts from the 1st decimal
place digit. Unlike USDJPY that I said
starts from the 2nd decimal place. Let's
see some examples;
Besides the Gold pair that I labelled, the
price is currently at 1229.06. If it makes
a move of 2 pips up, the new value would
be 1229.26

How did we get this? Using the shortcut

method, we added: "2" to the 1st decimal
place number, the figure "0".

48
Let's get to the Long but accurate method. For gold, 1 pip move
= 0.1. Hence for that two pip move up, we have;

0.1 x 2 = 0.2, adding this 0.2 to the original value of 1229.06,

we have 0.2 + 1229.06 = 1229.26.

Assuming the move was seven pips on the same gold pair, we
would have the new value as 1229.76. How did we get this? We
added 7 to the 1st decimal placed number or

using the long method;

0.1 x 7 = 0.7, 1229.06 + 0.7 = 1229.76

So, that's how to calculate pip movement on various currency

pairs. Be it the general pairs or JPY pairs or Gold. Just take
note of the exceptions.

We would see the application of these when we talk about

market orders.

49
CHAPTER TEN
CONCEPT OF BID PRICE AND ASK PRICE

In this chapter, I will be answering the question that's running

through your mind all this while.
"Why are there two prices beside each quote?".

I like teaching in steps that won't overload you, the reader. As we

approach that area, we would tackle it, and you would understand
it better.

From the image, you would see something

like;

EURUSD 1.1366 -------------- 1.1367.

1.1366 is the bid price while 1.1367 is the

ask price.

Let's now get to what they mean

50
Bid price is the price that buyers are willing to buy, while Ask
price is the price sellers are willing to sell.
As usual, I would use what is happening around us to explain
these concepts.

I always like simplifying things for my readers. Forex is not meant

to be complicated; people try to make it complex to monopolize
the business for themselves.
Assuming you received $10,000 from a friend abroad and walked
into a bank to exchange it for Ghana Cedi. The bank would tell
you that the latest CBG (Central Bank of Ghana) rate is, let's say,
GHS5. So, they would give you GHS50,000 as equivalent to the
$10,000.

Let's say the next day, you walked into that same bank because of
an emergency, and you needed to travel abroad, and you are
requesting for same $10,000.
They would now tell you that their bank rate is GHS5.2. So, you
would now have to pay GHS52,000 for the same $10,000.
GHS5 here is the Bid price in this situation, while GHS5.2 is
the Ask price.

That is how banks make their money. They just made a GHS2,000
profit in just a space of 24 hours. That is why banks would always
be king over the masses.
They control the flow of money and live in big houses, drive big
cars and pay the workers peanuts.

That is why they would never want you to learn forex. The Foreign
Exchange market is so liquid that it can change your fortune
around in just a few weeks of trading. However, this monopoly of
knowledge is being circulated among the elites.

Let's come back to forex. In forex, the bid and ask price works the
same way. However, not as exuberant as the one Banks exploit us

51
with. The difference between these 2 in forex is just in
points/pips. So, the bid price is that price that buyers also in forex
are willing to buy. Ask price is the price that the Sellers are willing
to sell. Here, Buyers and sellers are not human beings directly but
the market in this case. You buy from the market and sell to the
market.

So, the meaning of this above is that when you place a buy
order in forex, it will activate for you using the asking price
(remember that the Ask price is the Price that Sellers are willing
to sell to you, the buyer). While in reverse;
When you place a sell order in forex, it will activate for you using
the bid price. (remember that the bid price is the price buyers are
willing to buy from you, the seller).

Let's relate it to our example of banks above. In the example I

gave above, when you brought your $10,000 to the Bank, you
were the seller at that instant while the Bank was the buyer.
So, they gave you their bid price of GHS5.00 because that is the
price they are willing to buy while in reverse; when you came back
the next day that you want to travel for an emergency, you now
became the buyer (no longer the seller).
You needed to buy dollars to travel urgently. Now the Bank, in
this case, became the seller.

So, they gave you the dollars at their ask price, which is the price
that sellers are willing to sell (remember they are now the sellers)
From the example I gave above, GHS5.2 was the ask, and it's
bigger than the bid price, which was GHS5.00.
Let's now move to the next concept related to them.

52
 SPREAD
In the example I gave above, the spread is 5.2 – 5.00 = 0.2. The
spread is 20 pesewas (GHS 0.20), which is the banks' profit.

So also, in forex, the spread is the profit of the brokers;

however, in this case, it's minimal because it's measured in
pips.

The spread varies between trading sessions. When the

volatility is high and many markets are open simultaneously,
the spread is always small. That is another advantage of
trading when many markets are open.

However, the spreads are always bigger when only one market
is open or has low volatility.

So that is how the spread works. We will now move to another

important topic.

53
CHAPTER ELEVEN
MARKET ORDERS (TAKE PROFIT AND
STOP LOSS)
Take profit and stop loss are forms of market orders. Let's start
with TAKE PROFIT.
As a trader, you would not constantly monitor all your trades
online. It's not as if we FX traders get a seat and stay in front of
our laptops all day. NO!
Some of your trades may stay overnight; some may last for two
days and more.

You may have a date with your babe, you have champions league
to watch, your friend that just hammered on one big trade is
hosting a party, and you have to go; you even have your work to go
to if you are a worker. So, you have many engagements, and that's
where market orders come into play.

TAKE PROFIT;
It is a form of market order that tells your broker to close your
trade for you and lock in your profit when the trade moves a
certain number of pips in your desired direction, even if you are
not online. Remember, in forex, we are always doing two
things, buying and selling.

Let's take a scenario when we are buying and give an example.

Let's say you entered a currency pair called AAA/BBB, and it's
currently at $40. You found out from your technical or
fundamental analysis that it would soon rise. So, you
immediately open your MT4 and click on BUY.

And your target for this trade is just 50 pips; you don't want to
be greedy, so you set a target profit of just 50 pips. You added
it to the price you entered, which was $40. So, your TP would

54
be at $90. Anytime the price starts climbing and reaches $90,
even if you are not online, your Broker would close the trade
for you automatically using your MT4 and add the $50 profit to
your account immediately. That is how TP works.

Once you set it at that particular price on your MT4, whether

you are online or not, it closes the trade for you and locks your
profit. Let's see a practical example using real pairs.

Open your MT4/MT5

app. Click on the icon
pointed at by the
Purple arrow to take u
to your charts

Then Click on the icon

pointed at by the red
arrow to take you to
another page where you
would see where to
input in your TP.

55
 The box on the right labelled by
the red arrow is the space for
inputting your TP.

While the space on the Left is for

putting in your stop loss which
we would see next

So, having seen where to insert the take profit, let’s now do
some practical examples of how to calculate take profit.

Assuming I want to Buy EURUSD at a

current ASK PRICE of 1.1367 and I want a
Take Profit of 30 pips.

I will add 30 pips to that Ask price. So, My

TP for that trade would be 1.1397.
immediately the currency pair rises during
its usual fluctuations and gets to 1.1397;

my broker would immediately close the

trade for me, whether I’m online or not and
then add my profit to my account.
(Notice that I used Ask price because I was
buying. During the selling, I will use Bid)

56
For most of my trades, I may execute them at night or in the
morning during the London session after my analysis. I would
log out of my MT4 after setting my TP, and when I checked
back in the afternoon or the evening, I would notice that most
of them had been closed, and my profit had been added to my
account.

Let's see more examples………

Let's take a New Zealand / US

Dollars at the Current Ask
Price of 0.6524.

I want to BUY the pair, and I

want a profit of 50 pips. What
Value Would I input into my
Take Profit box?

Remember, in buying; we are

referring to the Ask price. So,
when NZDUSD rises and gets to
0.6574 (which would be a 50
pips move), my Broker would
close the order and keep my
profits in my forex account.
Interesting right?

Yes, in your mind…. hahaha.

57
Let's get to the SELL SCENARIO.
In selling a currency pair in the forex market, you are selling after
you have found out from your technical or fundamental analysis
that the price would fall.

Hope you remember that? So as the price is falling, you are

making your money (opposite of buying).
Let's say we want to sell AAA/BBB, and the price is at $100, and
we have seen from our analysis that it would fall.

So, we immediately opened our MT4 and clicked on sell, right?

Let's say our target profit for the pair is 45 pips.
So, in this case, we do the reverse by subtracting the take profit
pips from the initial price. In this case, our TP would now be set
at $55, which is below the current price because we are selling.
Immediately the price falls from $100 to $55; the broker would
add your 45 pips profit to your account.

That's the beauty of forex; you make money both ways. Whether a
currency is rising or falling, it's none of your business. You enter
in the right direction and make your money.

Let's see some practical examples…….

After our analysis, we found out that EURJPY would fall. So, we
decided to short (sell) EURJPY pair. Remember now we are
interested in the Bid Price because we are selling. If the Bid
Price is currently at 127.81 and you want a TP of 60 pips. What
would be the value of my TP? Because we expect it to fall, our TP
would be below, not above. So, subtracting 60 pips
from 127.81. We have 127.21; hence I would input 127.21 into
the same TP box we used when buying. So, when EURJPY falls
and reaches 127.21, my broker would automatically close and add
my profit to my capital.

58
 Let's see another example.
Let's say that after my analysis.
USD weakened because of bad
news, and I want to short (Sell)
USDCHF, and I only want a TP
of 40 pips from that current
Bid price of 0.9992.

What would my TP be? I would

subtract 40 pips from that
current Bid price because I'm
selling, and I would get 0.9952.
Hence, I would input 0.9952
into the TP box.

My profits would be
automatically added to my
accounts when the price gets
there.

so immediately the price falls to that level, your broker would

automatically add your profit for you.
in summary;

• we have seen that while buying, our tp is up.

• however, in reverse, while selling, our tp is below the price.

59
 STOP LOSS
Stop Loss is another vital form of market order, which is the
opposite of the take profit order that we saw earlier. Here you are
giving your broker instructions to close your trade when the
market wants to go against you.

The market is always going up and down, and sometimes News

may pop up and sway the market in the opposite direction in
which your trade was planned. Still, with a stop-loss order,
immediately the market wants to change and go the opposite
direction up to a point, your broker would close the trade for you
through your MT4, even if you are not online.

Let's say I want to buy a currency pair named AAA/BBB, and the
price is currently at $40. For this, I want a TP of 50 pips. So, I
would set my TP at $90; we saw this part earlier. Now, after
setting my TP, I would also tell my broker that look, Mr. broker,
I'm buying, so I want my trade to be open only when the price is
going up, that if the price tries to go down by let's say more than
ten pips, close my trade for me. You only want to stay in the trade
when the price increases because you are buying.

Now you gave your broker a stop-loss order of 10 pips.

Remember, the initial price was $40, so for a Stop-loss of 10 pips,
you should set it at $30. With this, anytime the price reverses and
starts falling without your knowledge, if it gets to $30, your trade
will close for you preventing further losses even if you are not
online.

Let me give another tentative example, before we use real

charts………
Let's say I want to buy a currency pair CCC/DDD and the price
is at $100. I want a TP of 40 pips and a stop-loss of 5 pips

60
(meaning I don't want to lose more than 5 pips). My TP would
be $140 while my stop-loss should be at $95. Anytime the price
wants to fall by 5 pips from $100 to $95, my broker would
automatically close my trade for me, preventing me from
further losses, even if I’m not online.

Technology of MT4 has made forex so interesting, you control

how much you earn and also how much you don't want to lose
in case market reverses on you.

Let's see some real examples now……….

Say I want to buy AUDJPY at the current ask price of 79.36. and I
want a TP of 40 pips, and I don't want to lose more than five pips.
What would now be my TP and SL prices? My TP would be at
79.76 (i.e. after adding 40 pips to the current price)

And my SL would be at 79.31 (after subtracting five pips from the

current price). I would now type in both the TP and SL boxes,
respectively.

Let's see another example…….

Let's say we want to buy GBPUSD, and we want a TP of 50 pips

and an SL of just ten pips. from that asking price of 1.2837, our TP
would be at 1.2887 (i.e. after adding 50 pips to the current ask
price), while our SL would be at 1.2827 (after subtracting ten pips
from that same ask price)

So, you now go to the TP box and type in 1.2887 and go to the SL
box by the left and type 1.2827. Once the price tries to fall instead

61
of rising to 1.2827, your broker would automatically close the
trades for you, even if you are not online.
Now let's get to calculating stop-loss in the opposite scenario,
which is selling. Remember, in selling, you only make money
when the price is falling, as we saw earlier.

So, Let's say you want to Sell currency pair TTT/UUU, and the
price is currently at $80, and you want a TP of 50 pips.
Remember, here you are selling, so your TP is always below, so
you set it at $30 (which is 50 pips below the initial/current price
of $80). Now let's get to stop-loss while selling; you don't want the
price to rise (that would be going against you). So, for selling, you
set your stop-loss above the price. If it tries to increase, you tell
your broker to cut you off the market.

Assuming you don't want to lose more than five pips. You would
now set your Stop loss five pips above the initial price of $80.
Hence my Stop-loss would now be at $85. If you notice, this is
precisely the opposite of what we did while buying.
While buying, our SL was below the price; now, it's above the
price.

Let's see another example………

I want to Sell Currency GGG/HHH, and the price is currently at
$100; I want a TP of 60 pips, and I don't want to lose more than
ten pips. My TP would now be at $40. (below the current price
because I'm selling), while my Stop-loss would be at $110 (above
the market price because I don't want to be in the market if the
pair wants to rise).

Let's see real examples now…….

62
 Let's say I want to Sell USDCHF (USD vs
Swiss Franc) at the current Bid price
of 0.9973 because I know it would fall
soon from my Analysis.

And I want a TP of 53 pips, and I don't

want to lose more than five pips.
What would be my TP and SL?

My TP would be at 0.9920 (after

subtracting 53 pips from that current Bid
price because I am selling while,

My SL would be at 0.9978 (after adding

five pips to the current Bid price of
0.9973)
Notice that I am using Bid price here and
not the Ask because we are Selling.

Let's say we want to sell USDCHF due

to a weakening US dollar. And we are
selling from the Current Bid price of
0.9973 (take note; Bid price because
we are selling).

We want a TP of 30 pips and an SL of

just ten pips. Where would be our TP
and SL price?

The TP would be at 0.9943 (i.e.

subtracting 30 pips from the Ask price
of 0.9973).

While the SL should be at 0.9983 (after

adding ten pips to 0.9973)

63
Pips calculation is straightforward if you learn how to calculate it.
It's not rockets science, just basic addition and subtraction. Just
note when you are buying or selling.

In Summary;
While buying, your TP is above (because you want the price to go
up) while your stop-loss is below (because if it starts going down,
that's against your trade plan).

In Reverse;
While selling, your TP is below (because you want the price to
fall), while your stop loss should be above (because if it starts
going up, that's not your trade plan again).

We would move on to another important topic. The second

question that many people have been asking. "How much do I
need to start forex?" or "how much do I need to make a particular
daily target?" After this topic, you would better understand how
money is made in forex.

64
CHAPTER TWELVE
LOT SIZE
It is the amount/quantity of a trade you bought or sold. It's
sometimes called your position size/trade size.
These currencies are not bought and sold singly in the forex
market, but they are bought and sold in packs called lot sizes.

That is what makes the gain appreciable; if not, your profit in

forex would have been $0.0001 or something, but because you
buy this currency in bulk/packs known as lot size, that's why the
gain is appreciable.
Let's see the types.

There Are 3 Types of lot sizes.

➢ Standard Lot: Standard lot contains 100,000 units and is

represented on MT4 by 1.0.

➢ Mini Lot: Mini lot contains 10,000 units and is represented

on mt4 by 0.1 whiles;

➢ Micro Lot: Micro lot includes 1,000 units and is

represented on MT4 by 0.01.

As usual, I would always use things around you to explain

complex forex matters to you to simplify them.
Let's assume we have three traders, A, B, and C, who deal with
jeans. You know for them to profit, they can't just buy single pairs
of jeans from the wholesaler. They need to buy these jeans in
bundles for the profit made to be appreciable. Those bundles are
what we call lot sizes.

65
Now, assuming trader A buys 100,000 bundles of jeans and trader
B buys 10,000 bundles of jeans while trader C buys only 1,000
bundles.

You would agree with me that trader A would make more money
than trader B, who will, in turn, make more money than trader C.
And what determined how many bundles of jeans they bought is
the capital they invested in the business. That is a typical
illustration of lot sizes.

In the illustration above, trader A bought standard lot size, whiles

trader B bought mini lot size, and trader C bought micro lot size.
Let's now see the pip equivalent of each lot size in dollars.

Lot size type Lot size Equivalent in dollars

Standard lot 1.0 $10
Mini lot 0.1 $1
Micro lot 0.01 $0.1

So, if three traders trade a currency pair and the three of them
make 50 pips. Let's say trader A traded one standard lot size of
the pair, while trader B traded one mini lot size of the pair and the
last trader C traded 1 Micro Lot size of the pair.

➢ Trader A would make 50 pips x $10 = $500

➢ Trader B would make 50 pips x $1 = $50 While
➢ Trader C would make 50 pips x $0.1 = $5

So even though they still participated in the same trade and the
market moved in their direction for the same amount of pips,
their profits were different because that particular currency they
bought differed in terms of lot size. Now I believe this concept is
clear.
Some people would ask, "what's the minimum amount to start-up
in Forex?" Some brokers do a minimum amount of $100, some

66
$200. The broker I recommended (EXNESS) accepts as low as
$10 deposits.

Let's move on to a different topic.

67
CHAPTER THIRTEEN
LEVERAGE
Leverage is the ability to use something small to control
something big. In the case of forex, using a smaller capital base to
control a larger lot size. To understand this concept of leverage,
let's take a brief history of how forex was initially.

Initially, in forex, anyone is allowed to trade forex. These markets

were only traded by the Kabals -MEN OF WALL
STREET, usually investment banks, rich men, monarchs,
prominent businessmen, company owners etc.

Now let me take New York Stock exchange, for example, for you to
trade on the New York Stock Exchange floor, you should be
making a specific number of millions of dollars per annum, you
shouldn't be owing to any mortgage, your tax documents are up to
date and with so many other useless criteria's to limit it to the
Elites. It was the same for forex too.

Ordinary men wouldn't have benefited from this lucrative

business. Now, due to the invention of the internet, the world has
become a global village in that you can buy and sell from
anywhere around the world, leading to the proliferation of forex
brokers.

Now forex Brokers had so many customers worldwide that they

could solve that single problem of capital for us.

Now the world banks, etc., require a certain amount of money for
someone to trade with, but because brokers have pulled lots of
money together, we are now allowed to trade through our brokers.
So, instead of individual trading with 1 million dollars, you can
place a trade with as little as $10 for Exness because you didn't go
alone. You went to the market through your broker, recognized by

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the world bank as a formidable force because it has a large capital
base. I believe this simple illustration is understood.
Your broker allows you to trade because he offers you what they
call leverage in the forex market.
The principle of leverage is virtually multiplying your little capital
so that you can use it and buy something worth a bigger value.

Example;

When you fill out your forms for opening a trading account
on Exness, which is the last phase of the registration, you will see
things like 1: 500, 1:100, 1:2000, 1:600, etc.

So, Let's assume you have $100 in your forex account, which
generally $100 wouldn't have been able to place a trade in the
forex market, but because your broker gave you leverage, you can
now do that. Let's assume you would choose a leverage of 1:500
during registration. With that $100 capital, you can place a trade
of $100 x 500 = $50,000. Meaning you are controlling trades
worth $50,000.

This is how to set lot size on mt4/mt5.

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 Go to that same page where we
saw TP and SL.

You will see the Lot size space in

that space my red arrow is
pointing at.

Just type in the Lot size you want

in that space.

Either 0.1, 0.01, 1.0, 0.2, 0.02,

2.0 etc. It's currently at 0.1 in the
image.

Or use the + plus and - minus

buttons (adjusting knobs) by the
side to set the lot size.

In summary, you do three things before taking a trade;

➢ You have to set your stop loss.

➢ You have to set your take profit.
➢ You have to set a lot size.

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CHAPTER FOURTEEN
CONCLUSION
Congratulations!! You’ve made it to the end of this eBook. This
eBook was prepared by Samuel Foli, popularly known as Highkey.
I created this eBook intending to help interested people in forex
trading to have a solid foundation for trading in the financial
market. What you learnt in this eBook are just the basis for forex
trading which, if you decide to take the lesson further, will go a
long way to help you.

You can decide to learn from tons of forex traders/mentors, which

is 100% your personal decision. Still, if you enjoy or like the
contents of this eBook and would love to make a living out of forex
trading, then I think you will have a lot of advantage learning
from one person from basic to the advanced levels.

I have a mentorship group on telegram, which comes with a one-

time fee of $100. In this group, I will take you through the
advanced lessons for you to be able to analyze the market from a
technical perspective. Complex concepts are broken down with
simple scenarios for you to understand, videos and pdfs to guide
you psychologically; I will also continue to give you my setups
(signals) for you to be trading for free until you can trade on your
own. I will continue to share new ideas with you. I believe it’s a
learning process, and no one has arrived yet.
I edge you to read this ebook repeatedly to understand the basics
very well.

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 CONTACT ME

Chat and follow me on;

➢ Facebook
➢ Instagram @highkeyfx
➢ Twitter

My recommended broker is Exness:

https://one.exness.link/a/umh2md35.

See you in the HighkeyfxGang group on telegram.

Motto: Master Your Craft and Believe in God!!

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