Forex Trading Notes – Beginner Summary
1. Overview of Forex (Foreign Exchange)
What is Forex?
• The global market for buying and selling currencies.
Why Trade Forex?
• High liquidity
• Open 24/5
• Leverage potential
• Low startup cost (as low as R20–R500)
How It Works:
• Trade currency pairs (e.g., USD/ZAR).
• Buy one currency while selling another.
Major Market Participants:
• Central banks, retail traders, institutions, hedge funds
2. Forex Trading Sessions (South African Time – GMT+2)
Session Time (SAST) Notes
Sydney 11 PM – 8 AM Least volatile
Tokyo 1 AM – 10 AM Best for JPY pairs
London 9 AM – 6 PM High volume (EUR, GBP, USD)
New York 3 PM – 12 AM High volume, overlaps London
Best Times to Trade:
• 9 AM – 12 PM
• 3 PM – 6 PM
3. Best Currency Pairs to Trade (2025)
Major Pairs:
• EUR/USD
• GBP/USD
• USD/JPY
• USD/CHF
• AUD/USD
Volatile Pairs (For CRT & Scalping):
• XAU/USD (Gold)
• NAS100
• GBP/JPY
• USD/ZAR
4. Candle Range Theory (CRT) Strategy
Core Idea:
Price Action + Market Psychology
Phases:
1. Accumulation – Sideways movement
2. Manipulation – Fake breakout / liquidity grab
3. Expansion – Real trend starts
Setup:
• Wait for consolidation
• Watch for false breakout
• Enter on confirmation candle (with EMA or S&D zone)
5. Common Chart Patterns
Head & Shoulders
• Reversal pattern, signals end of uptrend
Double Top / Bottom
• Double Top = Sell
• Double Bottom = Buy
Flags & Pennants
• Continuation pattern, wait for breakout
Triangle Patterns
• Ascending = Bullish
• Descending = Bearish
• Symmetrical = Wait for breakout
6. Trading Psychology
Principles:
• Discipline > Emotion
• Follow your plan, not your feelings
Tips:
• Accept losses
• Avoid revenge trading
• Keep a journal
• Focus on long-term success
7. Trading Events That Impact the Market
Event Type Examples
Economic Reports NFP, CPI, GDP, Interest Rates
Geopolitical Events Elections, Wars, Political Crises
Central Bank Speeches Powell (Fed), Lagarde (ECB)
Unexpected Events Natural disasters, major surprises
Avoid Trading During:
• NFP (First Friday monthly)
• High-volatility events
• Interest rate announcements
8. Where to Read Forex News
• ForexFactory.com
• Investing.com
• Myfxbook.com
• TradingEconomics.com
9. Advantages of Forex
1. Low startup capital (R20–R500)
2. High liquidity
3. Open 24 hours (weekdays)
4. Leverage opportunities
5. Access to free tools (e.g., MT5, TradingView)
6. Variety of strategies
7. Learn about global economies
10. Disadvantages of Forex
1. High risk of loss (90% of beginners lose)
2. Leverage can wipe out accounts
3. Unpredictable market volatility
4. Emotional pressure
5. Complex learning curve
6. No passive income – requires active effort
11. Types of Forex Traders
Trader Type Timeframe Trade Duration Best For
Scalper 1–5 min charts Seconds–Minutes Fast thinkers, focused traders
Day Trader 5m–1H charts Intraday Part/full-time focused traders
Swing Trader 1H–Daily Days–Weeks Part-timers, students
Position Trader Daily–Monthly Weeks–Months Long-term investors
News Trader Any Minutes–Hours Fundamental-focused traders
Robot Trader Automated Based on logic Tech-savvy or investors
12. Key Forex Basics
Concept Description
Pip Smallest price move (0.0001, or 0.01 for JPY pairs)
Lot Size Trade size: micro, mini, standard
Leverage Use of borrowed capital (e.g., 1:100)
Spread Difference between buy (ask) and sell (bid) price
Margin Portion of your capital used for the trade
Concept Description
Stop Loss Automatically exits trade to limit loss
Take Profit Automatically exits trade when your profit target hits
Broker Trading platform provider (e.g., IFX Brokers, JustMarkets)
Recommended Broker (for Beginners)
• IFX Brokers
o Easy to use
o Minimum deposit: R50
o Great for South Africans
Candlestick patterns
Tips as a complete beginner:
• If you understand the charts, DON’T TRADE
• DON’T trade because of FOMO( Fear Of Missing Out)
• If you’re losing stop trading
• If blow your whole account – its okay – go learn using your demo account
• If you’re out of practice – learn using your demo account
• Don’t rely on robots
• Set realistic Take Profits(TP)
• Apply proper risk management
• You’re never gonna win – its part of the game!
• Set realistic goals
• Never trade on Monday – due to its volatility
• Trade NFP at your own risk!
• Don’t revenge trade
• Once you’ve reached your trade – STOP TRADING
• Don’t trust trader’s you see on TIKTOK or social media
• Never trade without doing you analysis – on TradingView
• Don’t trade XAUUSD with minimum capital (e.g. R100)
• Avoid self doubts
Apps you need as a Trader:
• TradingView – To do your analysis
• MetaTrader 5 – To actually trade
• IfxBrokers – To deposit and withdraw money
!!NB!! You need to 18 years to able to withdraw !!NB!!
