
WTF is Forex Trading?
In forex, knowledge is currency and time is your asset. – Trading Hour
Hey guys and gals, I’m new to this Medium app but I’ll be throwing out my $0.02 here and there regarding forex. You’ll also get plenty of coffee/travel pics so I do apologise in advanced. 🤷🏼♂️
So…what the hell is Forex? 🤔
Before I tell you about the ins and outs for everyone who doesn’t know, Forex has changed my life ever since I first saw it on the TV to googling it. 👨🏽💻 I wanted to find out how I can work from home, a cafe or anywhere with wifi completely on my own terms. To be successful within this field you need to have a constant thirst for knowledge. You’re on your own and you need to want to find out about everything and anything that might help you and put it in your tool box. Absorb as much as you can and discard the 💩. Then go for it. Execute trades and learn from experience. You will get punched in the face, you will take a loss. But remember to never fucking quit. Never! You need to be able to take the hits and wear them as armour going into the next trade. Be unstoppable and love the journey as you go along. It’s a very rewarding and enjoyable game. 💙
Forex Trading Basics 👇🏽
Forex trading in the simplest form is the conversion between 2 currencies. E.G. GBP into USD. There will be a conversion if you need to change up your quids for those Benjamin’s. 😉 £1 will get you $1.29 right now. But in an hours time £1 might get you $1.31. And these ‘conversions’ are changing every second of the day 24/5. ⏱ – That’s great Scott but how can money be made from these tiny movements in the price?
Well here’s where traders come in. In actual fact the price is calculated to something called a ‘pip’. And a pip is the 4th decimal place in the conversion. So going back to our example of £1 will get you $1.29. £1 will actually get you $1.2945. The (0.0005) is the pip in this case and traders will buy and sell the conversion rate based on the pip movement. If 1.2945 turns into 1.2946 it has moved up 1 pip. So if I open up a position where I buy GBP/USD at 1.2945 for £10 per pip and the conversion moves to 1.3045 over a period of time, I will make £1000.00 profit. Because that’s a 100 pip movement in price. If price was to go from 1.2945 (where we bought in at for £10 per pip) down to 1.2845 then we would lose £1000.00.
So it’s quite simple right? And there is no limit to how much you can bet per pip. Which means there is completely uncapped potential on how much you can make. You could make a £1,000,000 in a week as long as you have the capital to invest. In actual fact there is $4,000,000,000,000.00, yes 4 trillion dollars cash pushed through the market every single day. This money 💰 is changed from losing traders to winning traders.
This all sounds exciting doesn’t it. So all you need to do now is buy my signals and make £500 every day by following my trades 😂🤣😂🤣😂 *im totally kidding and please don’t fall for these advertisements or ‘trading gurus’ promoting anything like this.
Next when you open a trading account and make your deposit, you will need to manage your risk appetite per trade you enter by entering a ‘lot size’ when you place a trade. I knew nothing about this lot size when starting out and it crushed my first account because of this. Here is what a lot size would look like in your trading platform 👇🏽

Here you can see that 7.00 is entered in.
Lot sizes are worked out like so…
0.01 lots = £0.10 per pip movement.
0.10 lots = £1 per pip movement.
1.00 lots = £10 per pip movement.
10.00 lots = £100 per pip movement.
And If your a real fucking baller 😎…
100.00 lots = £1000 per pip movement.
That means if you make 500 pips with £1000 quid per pip you would make half a mill. 💰💰
So with that knowledge you need to make sure that you are using the appropriate lot size depending on how big or small your account size is. Nothing wrong with only trading 10p or 20p per pip. We all start somewhere and I respect you for mastering the craft before diving deeper into your pockets. If you are Trading on a real account with small lot sizes, screenshot your trades and send them to my Instagram @tradinghour and I will repost them 💚💚👨🏽💻.
There’s so much more to forex but I wanted to give a brief summary of what it is for someone who knows zero about it.
Anyways… I’ve got work to crack on with as I don’t sit on a beach all day making money. Hope you all have a great day and I’ll be back with another article Trading related tomorrow 10am. Peace ✌️.
