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BabyPips School review

Did you already open a practice account? Have you installed MetaTrader 4? Great!!!

Next thing you should do is to learn a few basics about trading, buy some Forex books for a few hundred dollars and pay someone $500-2000 for their “HOLY GRAIL” trading system. After 5-10 weeks you will be a PRO trader, you will start making thousands of dollars per month, quit your job and buy a nice house on the beach. Right??? WRONG!!!

I am still a newbie trader but I talk to PRO traders every day. One of the first things I learned from them is that it takes years of trading to finally become a Forex professional. Forex is not some get-rich-quick scam. Forex is a business…it’s a job! Every job requires practice and experience: if you start working for an IT company you will have to spend years and years learning and programming and whatever. You have the same situation in Forex.

The second thing I learned from other traders is that all the information you need about trading is free. There is nothing wrong with people who sell their Forex trading systems, books and courses. Trading does not require a lot of time if you know how to trade, so these PRO traders have enough free time to write books about Forex, make Forex courses and sell them to make even more money. But if these traders are successful with their trading techniques, that doesn’t mean you will also be successful. Every trader is different! That’s why you shouldn’t spend money on Forex education and system. You should learn the basics, practice, practice, practice and, in the end, build a trading system that fits you. But what’s the best place to learn the basics?

BabyPips School of course!!!

That’s why I wrote this review! BabyPips is a place where you can find a huge amount of Forex trading information. They are number one resource when it comes to Forex education. The most important part of BabyPips is their Forex school. The BabyPips School allows you to start in preschool and work your way through “forex college”. Of course, you will never get a trading degree, but when you finish the school you will have a lot of knowledge about trading and you will know what to do next.

BabyPips School is completely free and you will learn all the basics you need to start trading. It looks like any classrom session: you finish the chapter and you get a test after that. The school is also very funny so you will never feel bored reading it. And if you have some questions, you can simply go to their forum and ask other members.

BabyPips School review

How to install MetaTrader 4?

So, you found a Forex broker with New York close charts? Next, you should learn how to install MetaTrader 4. MetaTrader 4 is a program you will use to buy and sell currency pairs. If you have an account at FxPro, simply go to their website and download MetaTrader 4. Go to directory where you downloaded it and run the setup file. Just click “Next” on the following screen:

How-to-install-Meta-trader-4-picture1After that, the license agreement will appear. Make sure you check the “Yes, I agree with with all terms of this license agreement” option and click “Next” to proceed:

How-to-install-Meta-trader-4-picture2

Next window will appear giving you the option to accept default installation folder or choose another one. You can also choose if you want to create a desktop shortcut and to launch the MetaTrader 4 after installation. These options are selected by default but you can uncheck them if you want.

How-to-install-Meta-trader-4-picture3

Next window will appear showing you the installation progress. After all the tasks have been completed click on “Finish”.

How-to-install-Meta-trader-4-picture4

After you run MetaTrader 4, a window will appear inside it, asking you to open a new account. Fill in the required information (name, adress, city, zip code…), select the account type, leverage (1:100 is my favorite) and deposit amount. The account will automatically be the demo account where you can trade without risking your own money. Make sure you check the “I agree to subscribe to your newsletters” option and click “Next” to complete the installation process.

How-to-install-Meta-trader-4-picture5

Congratulations – you learned how to install MetaTrader4. After the account is created, the charts will open and currency prices will start updating. Start playing around, make a few trades, look at the charts and try to figure out where the price will go next. One of the most important things in Forex (and every other job) is practice. So…practice, practice, practice…trade, trade, trade!!!

 

Forex brokers with New York close charts!

Why do you need a Forex broker with New York close charts?

When you start the trading software of different Forex brokers, not all the charts will be shown in the same way and this can be very confusing. If you plan to become a price action trader (we will talk about this later), the inaccurate charts will make your trading harder. Looking at the charts, you will actually read the markets and that’s why it’s so important to have a Forex broker with New York close charts. My favorite broker with New York close charts is FxPro but you can find more Forex brokers like this one.

New York close – what does it mean?

This means that a day ends at 4:59 PM eastern time and a new day begins at 5:00 Pm eastern time. It’s when a new daily candle is started and the previous candle ends. We will talk about candles later, but here is an example of a daily Forex chart with 16 candles – each one of them represents 1 day:

forex-candles

Since the New York market doesn’t open up until Monday, there will only be 5 candles weekly on a daily chart and that’s just what we want. If your chart shows 6 candles weekly you know that’s not a New York close chart. The reason we don’t want to see 6 candles is because the 6th candle represents one part of Sunday and Sunday is not a full trading day. There is also a very low volume of trades on Sunday. That’s why I love when Sunday and Monday candles form into one.

Why do I trade New York close charts?

The main advantage of trading the New York close charts is because everyone else uses them when it comes to price action trading. That’s almost a general rule of trading! The New York close charts are also the most reliable charts to trade. If you don’t use them, you will look at different candles then everyone else and this can lead to confusion and losses. You will also have a problem comparing your charts with someone who uses New York close charts. You might see the perfect trading opportunity on your chart, but on a New York close chart there is nothing that looks close to your chart. This will give you a false signal and you will lose money.

You need the most accurate charts if you want to be successful in Forex trading and the New York close charts will give you this opportunity.

Now, go to FxPro and open your account or simply go to Google and search for Forex brokers with New York close charts.

How are currencies traded in Forex? In pairs, of course!

When trading currencies, you actually buy one currency and sell another. One more way to explain this is that you are actually betting that the value of one currency will rise (or fall) against the other. The most traded currency pair is EURUSD where EUR (first currency) is the base currency and the USD (second currency) is a counter currency. Here is a picture that explains what happens when you look at the EURUSD chart:

forex-explanation

When you look at the blue line between number 1 and 2, you will see that the line goes up, which means that the EUR becomes stronger against the USD. The line between 2 and 3 indicates that the EUR is weakening, then the EUR is becoming stronger again (3-4) and so on. This is actually the way to make money in Forex – you have to be able to preddict future movement of currencies.

The currency pairs in the table below are called “majors”. These are the most liquid pairs (most traded) and they all have U.S. Dollar as base or counter currency:

major-currency-pairs

The list below shows “minor currency pairs” that contain one of the three major non-USD currencies (EUR, GBP and JPY). Some of them are:

minor-currency-pairs

Here are a few exotic currency pairs:

exotic-currency-pairs

What is Traded in Forex Market?

The most simple answer is MONEY.

You actually use one currency to buy another. For example, you use USD to buy Japanese Yen. By doing that, you buy a piece of Japanese economy. If their economy does well, the value of Japanese Yen will rise, you will sell that currency and make money. It’s the same thing as buying and selling stocks – you buy shares of some company for a low price, that company does well and, after some time, you sell those shares back to the market for a bigger price.

Currencies

The currency code is mostly composed of three letters. The first two letters represent the country’s shortcode, while the third letter denotes the currency unit. For example JPY: Japan (JP) + Yen (Y). Here is a list of major currencies (these are traded much more than the others):

major-currencies

 

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