If you already know how to do these things and you are just here to learn technical analysis then skip too part 2

Part 1 of this tutorial will be about how to use the website and understanding what the terminology means and getting familiar with how to execute trades and all of that basic stuff

Part 2 of this tutorial will be on Technical Analysis, learning how to read charts and identify trends and key trend reversals and how to read candles and such. So if you already know how to open positions and start trading then skip forward to the second part of this tutorial and learn more of the technical side of trading!

Part 3 of this tutorial will be a continuation of Technical Analysis and a introduction too more advanced techniques and theories as well as a multitude of other things.

Part 2 and 3 will be on-going and I will be updating every now and then with more content

If you have any questions please feel free to PM me!

I will be choosing 5 people at random on the first of next month to receive some free trade signals. In order to be eligible for this "raffle" you need to be a referral of mine on https://1broker.com/?r=3567

Signals Include Variables For The Following: Entry Price, Stop Loss, Take Profit, Suggested Leverage, etc.
Signals will be provided for multiple currency pairs
(If your interested in purchasing FOREX trading signals PM me for details - spots limited)


Ive finally decided to compose this tutorial I've been adamantly getting asked to do for awhile now and what better community to share this with and give back then the bitcointalk community! In the beginning I will try to be very basic until we get a little further along as it will be easier for everyone to grasp some of the more advanced trading techniques and theories at that point. In this tutorial I will teach you guys and gals a few different things starting out with understanding what all those buttons mean in the trade prompt and becoming familiar with all of the trading options and how to use them

The next part of the tutorial will be the part that everyone loves -- Technical Analysis and how to read charts and understand them along with proper risk management ect, ect, I plan on updating this tutorial frequently and Part 2 will be a ongoing tutorial depending on everyone's interest in the topic.

Feel free to scroll down and skip ahead to part 2 if your already familiar with trading and want to start learning how to execute profitable trades

Please if you have ANY questions feel free to PM me



What exactly is FOREX?

Forex stands for foreign exchange and to participate in the market and realize profits you will be buying one currency and simultaneously selling another, Currencies are traded threw an exchange and are traded in pairs
(more on all this later)

There are alot of advantages that trading FOREX has over stocks and commodities or indices but thats for another time, our time will be much better spent getting right into things .

To someone who is completely unfamiliar with this market or trading in general sometimes it can seem very overwhelming at times but trust me, after this tutorial you will understand everything you need to know to get started . With a good teacher things that seem complex or overwhelming are easily understood (feel free to PM me if you have any questions at all!)



Before we get started I would like to show you how to read a currency pair and give a quick outline of the Symbols and what currency they correspond to for those who don't know


These are the symbols for the Major currencies


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Currencies are always quoted in pairs like USD/JPY or AUD/USD, as i said earlier when ever you make a transaction you are simultaneously buying one currency while selling the other



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In this example the first currency in the quote (GBP) is known as the base currency. The second currency in the quote (USD) is referred to as the counter or quote currency

If you were to participate in the market quoted above (GBP/USD) and make a buy, you would be paying $1.51 USD for a single GBP (British pound) or vice-verse if you were to sell, you would be receiving $1.51 USD for one single GBP

Shortly here i will discuss what taking a "long" position means and what taking a "short" position means



Okay now that we got that down lets get started!!

https://1broker.com/?r=3567 is the only exchange (that I'm aware of) that allows you to participate in the FOREX market by using your bitcoins and also receiving your profits in bitcoins!

This part is really simply and probably doesn't need an explanation lol

Step 1: Go to https://1broker.com/?r=3567 and create an account (yes, this is my referral link and I would really appreciate anyone who found this tutorial useful to register with that link, thanks guys )

Step 2: deposit the amount of bitcoins you would like to start trading with (Any new trader should start small) The beauty of 1broker is the minimum position size they offer is very small at .01 btc (the smallest minimum I've seen offered from any broker)

So now that you have an account lets take a look at the dashboard on the left side of the screen


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We will be focusing on the FOREX tab for this tutorial (if you haven't figured that out yet that's not a good sign lol )


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Here you will see a list of all the currency pairs available for trading and buttons that correspond to opening a short or long position as well as the current Bid and Ask quotes (Don't worry, more on what all of this means in a minute )


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Lets click on EUR/USD together and take a look at what this page consists of


At the top of this page you will see a variety of information including the currency pair (EUR/USD), The maximum amount of leverage available for this pair (200) and the current spread (0.0001)  (Don't worry i will teach you what all of this means, that's why we're here )


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Now just below that you will see the current Bid and Ask price as well as two beautiful buttons, one labeled "Long" and the other Labeled "Short"


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For the sake of this demonstration lets click on the button labeled "Long" together and familiarize ourselves with the most important page you'll be using on this website


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After clicking on "Long" you will see a window with the following options

AMOUNT: This is self explanatory, The amount you put here in bitcoin is the amount your total position is going to be worth upon entry. Minimum is .01, so while your just starting out and learning you may want to try a few smaller sized positions around the minimum of .01
DIRECTION: When trading you have two options, either going "Long" or going "Short". When you take a "Long" position that means you expect the price to increase and you will profit from the price increasing from your entry price.

And of course vice-verse, When you take a "Short" position you are expecting the price to decrease and you will profit from the price decreasing from your entry price
LEVERAGE!: This is very important and will be explained in much greater detail later on. Leverage can be used to maximize profit as well as risk and is generally used by more experienced traders. After spending some time with me you will understand and be able to comfortably use leveraged positions to your advantage

When using a leverage of 200 or 1:200 (which is the maximum amount offered for the currency we are looking at right now) for every 1 dollar of purchasing power (or for every 1 bitcoin in our case) you actually control $200 of the underlying currency

So if you were to purchase this particular currency pair we are viewing right now (EUR/USD) at a leverage of 1:200 then for every 1 bitcoin you purchase you will actually have a position size equivalent to 200 bitcoins!

Or subsequently, for just .01 BTC you would actually be controlling 2 Bitcoins worth of the currency in question! (that's $40,000 worth of buying power with only $200 invested!)

Now this may sound great but you can equally loose your whole position size just as fast, When using a leveraged position if the price moves against you even slightly you could end up being "margin called" which will force your position to be closed at a loss.

Here is a calculator that can be used to determine when your position will be automatically closed (margin-called) based off of how much leverage your using and how big your position size is
https://1broker.com/?c=stoploss_limit_calculator
I will explain leverage in much more detail later on so if your feeling overwhelmed about this particular part please don't fret, just continue the tutorial and you will have a much greater understanding by the end
ORDER TYPE: In this field we will determine how your trade will be executed. 1broker offers 3 different types of orders and we will discuss all of these

The first and most simplistic order type we encounter is "Market". This means that you will be buying (or selling) the currency pair selected at the current market value, your order will be executed almost immediately.

The second order type we come across is "Limit" and will probably be the order type that you use the most. A limit order allows you to set the entry price at which your trade will be executed. This should be lower than the current price for long positions and higher for short positions.

The third and final order type that crosses our path today is called a "Stop-Entry" order.

A Stop Entry order is an order to open a position once the market hits a specified price. Contrary to Limit orders the "stop entry price" should be higher than the current price for long positions and lower for short positions.

A good example would be if you wanted to go Long on EUR/USD but only AFTER it has risen to a certain point or broke threw a certain resistance level and vice verse, if you wanted to open a Short position but only AFTER the price goes down to a certain point do you want your order to execute.
(PM me for any additional questions pertaining to order types, or anything else for that matter )



The next field we see on this page is "STOP LOSS"



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Stop Loss: The Stop Loss field is where your going to enter the price at which you want your position to automatically close if it has moved to far against your entry price for your liking.
Opening a position without having a predetermined Stop Loss (as well as a "take profit" point) is a foolish mistake beginners tend to make and should be avoided.


The final field on the page we are viewing is the "Take Profit" section.

Take Profit: The "Take Profit" field is where your going to enter the price at which you want your position to automatically close if it has moved in the direction you were expecting far enough to realize the profits you were seeking .
So its essentially the same thing as the Stop Loss field but this time your setting a parameter for the scenario that you've made a profit on your position instead of trying to manage risk and minimize your losses which is what the "Stop Loss" field is for.

So to sum it up, Take Profit and Stop Loss are the fields in which your going to specify how much your willing to loose on your position and how much of a profit you want to realize before closing your position and ending the trade







 If you found this tutorial useful it would be much appreciated if you sign up using my referral link (https://1broker.com/?r=3567). I would love to help and see all of you become successful FOREX traders weather its for fun or too supplement income or if you really get into and it becomes even more than that . I am always here to help out so don't shy away from PM'ing me any questions you have about anything!

here is my referral link you can sign up with https://1broker.com/?r=3567

If some of you are still unsure about a few things and would like some further help I could probably let some of you follow my trades in real time so you can get the hang of things, send me a PM and we can discuss further


I will be posting the second part of this tutorial shorty (The most fun and important part!) so stay tuned!

In the second part you will learn trading techniques and risk management and how to analyze charts and much much more, AND as a BONUS getting to trade side-by-side with me and ask me questions

https://1broker.com/?r=3567

Please if you have ANY questions feel free to PM me




Forex Market Hours in GMT



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The Forex market is available for trading 24 hours a day, five and one-half days per week.

END OF PART I