Essential Forex Trading Guide

Trading in the Forex market can be a complicated and difficult task if you don't know where to start or what type of information to consume. There is an enormous amount of information available on the internet and even more people that want you to spend your hard-earned money on their courses, systems, signals, algos or any other number of trading related schemes. What we have done in this Wiki is break down the essential skills and information you will need to build a solid foundation as a Forex trader.

We have gone to great lengths to put this information together that was developed and written by actual full-time traders with decades of experience. It is our hope that, with this information, we can bridge the gap between the big banks and retail traders to help put more money in the pockets of retail Forex traders and less in the coffers of the big banks.

In this Wiki, we will look at the 6 Essential Elements of Professional Forex Trading, why they are so important to your success, and how you should approach learning them.

Just a reminder: This Wiki is intended for educational purposes only and is not intended as financial advice. Consult your financial advisor should you have questions about your finances.

NOTE: This Wiki is in constant development starting March 30, 2023. Please bookmark and check back regularly for updates.

The 6 Essential Elements of Forex Trading

In this Wiki, we will look at the 6 essential elements of professional Forex trading, why they are so important to your success, and how you should approach learning them. Understanding these 6 key elements will help form the structure of your learning and understanding of how the Forex market works and why price moves the way they do. Trading is a business just like any other with many moving parts and lots of things you need to know. We have done our best and are constantly updating this Wiki and the other Wikis it links to in order to give you the best information available to help you make more pips.

The 6 Essential Elements of Forex Trading are:

1. Fundamental Analysis
2. Sentiment Analysis
3. Risk Management
4. Trading psychology
5. Price Action Analysis
6. Technical Analysis

You can click on any of those links above now to take you to the Wikis on those subjects or you can keep reading the brief descriptions below for a bit more information.

After you have a solid understanding of these 6 concepts the next thing you need to do is define your trading strategies based on what makes the most sense to you and your situation.

This Wiki is an aggregate of several other Wikis. At any time you can click on the links to the other Wikis where you will be brought to the main Wiki for that subject. In those Wikis, you will find great amounts of information that are designed to help you understand each subject like a professional. There is a heavy emphasis on trading in line with the larger players in the market that are the ones that are responsible for moving the Forex market.

Fundamental Analysis

Fundamental Analysis is simply the process of identifying and understanding the "factual reasons" why the market is moving in the direction that it is currently moving within the overall trend over the long term. This is in contrast to identifying that a trend or price move has already happened which is the job of Technical Analysis. Technical Analysis is backward-looking at past prices while Fundamental Analysis is forward-looking and allows you to use current information to try and predict where prices might go in the near future.

Fundamental Analysis is an extremely underserved subject when it comes to retail traders and how they obtain their trading knowledge. Whereas Technical Analysis uses past prices and indicators based on past prices, Fundamental Analysis uses past market information to try and predict the future direction of prices. This past market information is what the big banks and hedge funds use to make their trading decisions and these are the people that have the money to move prices so it makes sense for us retail traders to understand how they are looking at the markets.

In this Wiki, we will explore all the various aspects of Fundamental Analysis including:

• What Fundamental Analysis is
• Objection to Fundamentals
• The differences between institutional and retail traders
• Sentiment Analysis
• Central Banks
• Economic Data Releases
• Fundamental Supply and Demand
• Intermarket Analysis
• Economic Cycles
• And so much more...

You can access the main Wiki for Fundamental Analysis HERE.

Sentiment Analysis

Sentiment can be best explained by describing it as the Mood of the market right now in the current trading session. Just like the moods of individuals sentiment can change quickly and for a variety of reasons. This Mood can last seconds, minutes, hours, days and even weeks but is often thought of as shorter in duration than something like the fundamental trend that can be determined using Fundamental Analysis.

In this Wiki, we will explore what sentiment is and the various forms and behaviours that sentiment can manifest itself in Forex and other financial markets including:

• Risk on Risk Off
• Safe Haven Flows
• High Frequency Traders
• Buy the Rumour Sell the Fact
• Volatility
• Profit Taking
• Stop Hunting and Price Squeezing
• Central Bank Policy Divergence
• And so much more...

You can access the main Wiki for Sentiment Analysis HERE.

Risk Management

Risk Management happens when a trader takes active steps to minimize the potential of losing more money on a trade than they originally intended. It is a method unique to each individual trader that is meant to preserve capital so that they do not lose too much money. If a trader is lacking sound Risk Management skills then all the other elements of Forex trading will fail. Without managing risks professionally the risk of blowing out your account becomes way too high.

Risk Management takes many forms and in this Wikki we will take a look at several Risk Management concepts including:

• Risk Management Plan
• Having a Trading Business
• 4 Risk Management Defences
• Developing your Trading Process
• Money Management
• Trade Management
• Stop Losses
• Entries and Exits
• Having an Edge in your Trading
• And so much more...

You can access the main Wiki for Risk Management HERE.

Trading psychology

When someone uses the term "Trading psychology" they are referring to the emotions and mental state of a trader that may dictate the success or failure they will have when trading in the financial markets. This Trading psychology is unique to the individual trader. However, in general, it represents various aspects of an individual’s character and behaviours that influences their trading decisions and consequently, the actions they will take in the markets.

Trading Psychology is a vast subject that can take many forms for each individual trader. In this Wiki, we go into great depth on subjects relating to Trading psychology including:

• Emotional States
• Potential and Performance
• The 4 Stages of Competence
• How to Create the Optimal State for High Trading Performance
• Managing the Voice inside our Heads
• How to Have Conviction in your Trading
• Trader Psychology Problems
• Solutions to Trader Psychology Problems
• The Psychology of Money Management
• And so much more...

You can access the main Wiki for Trading psychology HERE.

Price Action Analysis

Coming Soon

Technical Analysis

Coming Soon

Trading Strategies

Coming Soon

Fundamental Trading Strateiges

Coming Soon

Sentiment Trading Strategies

Coming Soon