Forex Trading for Beginners
Goal: understand currency pairs, sessions, position sizing, two simple setups, and a daily routine that keeps you consistent.
1) What You’re Trading
Forex trades currency pairs (e.g., EUR/USD). The first currency is the base, the second is the quote. If you buy EUR/USD, you expect the euro to strengthen vs. the dollar.
2) Sessions & Volatility
- Tokyo (Asia): generally calmer.
- London: active; news moves.
- New York: overlaps with London; highest liquidity.
3) Position Sizing & Risk
Risk a fixed percentage per trade (0.5–1%). Determine stop-loss distance first, then calculate lot size so your loss = your risk cap.
4) Two Simple Setups
- Trend pullback: price above 200MA, buy pullbacks to 20–50MA; stop below swing low.
- Breakout: buy breaks of recent highs after consolidation; tight stop inside the range.
5) Daily Routine
- Scan 6–8 major pairs only.
- Mark levels, trend, and session context.
- Set alerts; place orders; walk away—no over-trading.
- Journal entries (reason, risk, outcome).
- Weekly review: refine, don’t add noise.
Forex trading involves risk. This guide is for education only—no financial advice.
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