This course is intended to serve as the knowledge development about the forex market and how you can trade successfully on it. Although the course is structured to start it from the previous levels, you can use it to start to trade from the beginning but also to develop your previous knowledges. It focus on the necessary steps to trade in Forex.
Each lesson has a conceptual map that summarizes the explained theory and a glossary with specific terms.
The course is aimed:
To people who want develop their trading knowledge and trade in Forex in a professional and successful way.
At the end of the course:
The student must acquire the necessary knowledge to introduce in the trading world, not only the technical aspects, also the psychological aspects which must be taken into account in the currency market of Forex.
The currency market or Forex is the market where the transactions of the national currencies are traded. It is a global and decentralized market in which the exchange rates are set depend on the demand and supply of each currency.
In this lesson we are going to talk about the main characteristics and the traded currencies in the market.
In this section we are going to see the basic aspects to understand what we do when we trade with currencies.
The trading in Forex, like in the rest of the markets, can be made on the purchase side (long) or on the sale side (short).
The instrument most used to trade in Forex is the contract for difference or CFD´s. They are contract based on the difference of values in different moment of an asset, in other words, currencies that have own characteristics.
By last, you will see the currency arbitrage what is the use of deficiencies in the market of an asset to introduce operations and wait the future correction on the direction that we have expected to get benefits.
In this section we are going to continue describing the characteristics of the Forex market: leverage, low costs, high liquidity, transparency and its global market consideration.
The leverage is a loan to invest in the markets, it allows us to multiply the money of our account, in that way we can trade with more money that we have.
The low costs in the Forex trading are an attractiveness for every intra day trader. The Forex brokers often trade without commissions and they charge only the difference between the purchase and sale.
The Forex liquidity is possibly its major attraction. Everyday more than 5 billions of dollars are traded in the currency market, so it is the most liquid market in the world.
The transparency is due to its high volume. It is impossible that only one agent influence on the prices with all his capital.
Another basic characteristic of Forex that we have to explain more carefully, is that is a global market in which you can trade 24 hours from Monday till Friday, in that way you can decide the time to trade.
In this section we are going to talk about the currency concept. We will study the coin creation due to the substitution of the barter, the weight of a currency, how you can measure it and what is the most traded pair in Forex.
We have explained previously that Forex is the most liquid market in the world because of its huge volume of daily transactions. However, some currencies are more traded than another, therefore those currencies have more weight.
Then, we are going to explain, the currency classification (convertible or non-convertible) besides the most traded pairs of currencies and the correlations (relationship of the existent dependency) that we can find on them.
This information is relevant and it is very helpful to trade.
The central banks are the institutions that are the monetary authority of the country that they represent. They usually are responsible of the issuing of legal money and the development and execution of the monetary policy.
Generally they are public entities for example like in Spain, but however, the Federal Reserve (central bank of USA) is a private organism because it is probed that a private bank control in a better way the inflation. For this reason, although they are a public organism,they are independent from the State.
The commercial banks treat with the general public (companies and people). The main goal is to be the intermediary between the supply and demand of financial sources. They can perceive savings from companies and people and also they can grant credits and loans.
The investment bank is composed by two business areas: the sale side, with the commercialization or exchange of values for cash or another values. And on the purchase side the pension funds services, mutual funds... In some countries you can trade on both, the pruchase and the sale side.
In this section we will talk about the hedge funds.
The hedge funds are private investment companies that commercialize in the financial markets through the financial derivatives and they use a high level of leverage.
In this chapter, we will focus on the financial intermediaries, they are financial institutions that act as mediators in the currency market. Their functions are perceiving savings from their customers that lend it to them in the medium or long run, and with these saving, the financial intermediaries offer funds to the companies that need it by a longer run loan.
To finish this chapter about the main agents in Forex, we will talk about the individual investors. Thank to Internet, nowadays there are individual investors in the market, therefore the currency market can be an alternative to the stock market.
Nowadays is the currency by excellence and it is the most traded currency worldwide. In addition is the most used reserve currency in the world and also is a universal measure to evaluate another currencies or raw materials.
In this chapter, we analyse the dollar, the federal reserve and the factors that can influence its quotation.
In this lesson we will see the analysis of the Euro, its main characteristics and the Central European Bank.
The Euro is the second currency in the world because of its liquidity and its volume of operations. The currency pair composed by the Euro and the Dollar is the pair with the highest number of transactions per session. In addition, is the second reserve currency used by many countries.
In this section we will see the currency of United Kingdom, one of the main currencies worldwide and the third reserve currency used by a lot of countries.
The Pound was the dominant currency due to the Britain Empire, before the dollar started to be the reference currency in the early 40´s.
In this part we are going to talk about the characteristics of the Australian Dollar, its history and the Australian economy.
Australia is on the top ten of the main producing and exporting countries of raw materials worldwide. This implies a high correlation between the raw materials and the Australian Dollar therefore, it can be affected by the inflation.
We are going to explain the Japanese currency, some important factors that can affect to the official currency, the national economy and the Bank of Japan.
Japan, is the third force in the world economy. Its success is due to the cooperation between the industry and the State, the traditional work culture and the advanced development of the new technologies.
About the main principles to trade in Forex, we must know the fundamental analysis, the capital flows, the commercial flows and the economic calendar.
In this chapter, we will continue with the main factors that we have to take into account to trade in the Forex market and the three main sessions (the European, the American and Asiatic session)
In the Forex market we can trade 24 hours per day, what is to say, we can make transactions at any moment of the day because the market is always open.
In this section we are going to explain a good management of the risk in Forex, we are going to analyse some aspects to take into account to decide the size positioning.
In addition, you will find an example about the risk management.
In this part, we are going to study the different kinds of brokers (market makers, ECN brokers and STP brokers) that you can find to trade in Forex.
Before make our technical analysis, we have to prepare our graphs to the trading. We are going to see the different kinds of graphs that we can find.
The first question is to decide the time frame in the graph that we are going to use. We must indicate all the lines in our graphs of different time frames.
Both concepts have the same meaning but the only difference is that the support is made after the price has followed a bearish trend and it has found a level that has not been able to surpass, in this point two things can happen: the price has made a pull-back or a change on the trend.
We continue with the tools for the technical analysis, in particular in this section we talk about the Elliot and Fibonacci waves.
You can find practical examples with this indicator, in which you can see its working in a real trading.
In this section we talk about the moving averages, which is the most used indicator in the technical analysis.
They are very helpful to identify trends, because its function is to soften the price evolution and eliminate the oscillations in the short run. A moving average is an indicator that has a retard due to the used data for its calculation are past prices. Therefore, the moving average is the tool used to follow the trend and predict if that trend is an initial trend or a finished trend.
The difference that we can find between a simple moving average and an exponential moving average is that the exponential one follows the price in a closer way.
The recent prices have more weight than the past prices, for this reason the exponential moving average can change quicker than the simple one.
So we are going to see a practical example about entries and exits with the signals that a moving average can provide us.
The indicator of convergence-divergence moving average can be get by the difference of two moving averages. It is used as a trend follower and it is one of the most used and reliable indicator.
In this lesson we will show a practical example about the using of this indicator in a real trading.
This is one of the most used indicators to trade. It is an oscillator that values the boost of the price increases or decreases and it looks for the optimum moment to enter to the market.
In this lesson you can find a practical example in the Forex trading with the information that the RSI can provide us.
In this lesson we will focus on the stochastic oscillator in which its value displays the up trends or down trends in the market through the crossover among the two lines that compose the oscillator. This indicator is considered as a momentum indicator because it tries to indicate the best points of entries and exits of the market.
In this lesson you can find a practical example to understand in a better way the working of this indicator.
This indicator is one of the most used in the technical analysis worldwide by a lot of trader. It is very simple to understand because it consists in a canal in which the price oscillates, what is to say, we can observe the volatility of the market in a better way.
The Bollinger bands are composed by two standard deviation or bands. These bands are between a moving average or an average line.
For a better understanding, in this video you can find a practical example about the Bollinger bands.
In this case we are going to explain how the market was affected by the increase of the interest rates in the USA after the victory of Trump.
Trabajo como formador y trader profesional en la Empresa Invertions.
Dentro de la empresa trabajo para poner a disposición de nuestros usuarios herramientas formativas, las cuales, están diseñadas y adaptadas especialmente a las necesidades de nuestros clientes. Desarrollo aplicaciones móviles con las que aprender a invertir en bolsa de valores se convierte en un juego, pues qué mejor forma de aprender que jugando. Para los clientes que prefieren un método de enseñanza más tradicional, he desarrollado cursos de calidad con contenidos multimedia para que los usuarios puedan aprender a su ritmo y desde cualquier parte, incluyendo cursos de especialización para los clientes que deseen dedicarse a las inversiones profesionalmente.
I work as a trainer and as a professional trader in Invertions company.
In this company I work to make available to our customers the training tools which are designed and adapted specially to the needs of them. I develop mobile apps which you can invest in the stock market like in a game, because the best way to learn is by playing. To the customers who prefer a traditional method, I have developed quality courses with multimedia content, in this way the users can learn from anywhere and anytime. In addition, specialization courses are included to the customers who want to invest in a professional way.