Author name: Alfred Majaheni

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Learn to Trade Forex in Gauteng

Learn to  trade Forex with us, our approach helps you start trading  Forex successfully as soon as possible. We offer free Forex Trading lessons with a few minimum requirements, which are as stated below. Minimum Requirements Laptop Computer Literacy Practical knowledge of internet usage Understanding of Simple English Open a Forex Trading Account with our Broker Our Forex Trading training programme is meant to give you practical Forex Trading lessons to help you get started as soon as possible. However to be a successful Forex Trader you need a lot of training going forward. We will guide you through all the knowledge and resources you need to be a successful Forex Trader. These will include but not limited to the following. Forex Trading Lessons Coverage Technical Analysis Technical analysis in Forex is the study of historical price data, primarily through charts and indicators, to forecast future price movements. It assumes that all market fundamentals are already reflected in price. Support & Resistance Trendlines and channels Moving Averages Relative Strength Index (RSI) MACD Bollinger Bands Fibonacci Retracement Fundamental Analysis Fundamental analysis in Forex involves evaluating the economic, financial, and political factors that influence currency prices. The goal is to determine the intrinsic value of a currency and predict its long-term movement. Interest Rates Inflation GDP Growth Employment Data Trade Balance Central Bank Policies Geopolitical Stability Consumer & Business Sentiment All these practical free Forex Trading lessons will be delivered through different methods such as online lessons, regular webinars with experienced analysts.

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Indices

What Are Indices? Trading indices (or stock indices) are measurements of the value of a group of stocks from a particular exchange, sector, or region. Rather than trading individual stocks, traders can speculate on the overall performance of a market via these indices. Popular Global Indices INDEX REGION DESCRIPTION S&P 500 USA 500 largest US companies Dow Jones (DJIA) USA 30 major US companies NASDAQ 100 USA 100 largest non-financial companies on NASDAQ FTSE 100 UK 100 top companies on the London Stock Exchange DAX 40 Germany 40 top companies on the Frankfurt Exchange Nikkei 225 Japan 225 major companies on the Tokyo Stock Exchange Hang Seng Hong Kong Major companies in Hong Kong ASX 200 Australia 200 top companies on the Australian Securities Exchange How Index Trading Works? CFDs (Contracts for Difference): Most popular method; allows speculation without owning assets. Futures: Agreements to buy/sell at a future date and price. ETFs: Exchange-Traded Funds that mirror an index. Options: Contracts offering the right (not obligation) to buy/sell the index. Why Trade Indices? Diversification: Exposure to a whole market, not just one stock. Liquidity: High volume and tight spreads in major indices. Volatility: Frequent price movements = opportunities for profit. Market Insight: Reflects broader economic sentiment. Risks Market volatility Leverage amplifying losses Geopolitical and economic events affecting indices

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Commodities

What Are Commodities? Commodities are basic physical goods that are interchangeable with others of the same type and are used as inputs in the production of other goods or services. Main Types of Commodities CATEGORY COMMODITY Energy Crude oil, Natural gas, Heating oil Metals Gold, Silver, Copper, Platinum Agriculture Wheat, Corn, Coffee, Soybeans, Cotton Livestock Cattle, Hogs How Commodity Trading Works Futures Contracts: Agreement to buy/sell at a predetermined price at a future date. CFDs (Contracts for Difference): Speculate on price changes without owning the asset. Spot Trading: Immediate purchase/sale of the commodity. ETFs & Mutual Funds: Indirect exposure to commodity markets. Options: Right, but not obligation, to buy/sell at a set price by a specific date. Why Trade Commodities? Hedge against inflation (especially gold and oil) Portfolio diversification Volatility = profit potential Supply & demand-driven pricing (influenced by geopolitics, weather, economics) Risks High leverage = amplified losses Political instability affecting supply chains Weather events (especially in agriculture) Volatility in global demand (especially energy)

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Currencies

What Is Currency Trading (Forex)? Currency trading involves buying one currency while simultaneously selling another, in pairs (e.g., EUR/USD). The Forex market is the largest and most liquid financial market in the world. Major Currency Pairs PAIR NAME NOTES EUR/USD Euro/US Dollar Most traded pair USD/JPY US Dollar/Japanese Yen Highly liquid, low spreads GBP/USD British Pound/US Dollar Volatile, popular for speculation USD/CHF US Dollar/Swiss Franc Considered a safe haven AUD/USD Australian Dollar/US Dollar Tied to commodities USD/CAD US Dollar/Canadian Dollar Linked to oil prices How Currency Trading Works Pairs System: Always trading one currency against another CFDs/Spot Trading: Most common methods for retail traders Leverage: Often high (e.g., 50:1 or more), amplifying gains/losses 24-Hour Market: Open 5 days a week, globally Why Trade Currencies? Liquidity: $6+ trillion traded daily Leverage opportunities Diversification Profit from rising or falling currencies Risks High leverage = high risk Economic/political news can cause volatility Requires close monitoring and quick decision-making Can be affected by interest rates, inflation, trade data, and geopolitics

Fundamental Analysis

Fundamental Analysis

What Is Forex Fundamental Analysis? Fundamental analysis in Forex involves evaluating the economic, financial, and political factors that influence currency prices. The goal is to determine the intrinsic value of a currency and predict its long-term movement. Key Factors in Forex Fundamental Analysis   FACTOR IMPACT Interest Rates Higher rates attract foreign capital, boosting currency value Inflation Moderate inflation supports growth; high inflation weakens a currency GDP Growth Strong economic growth = stronger currency Employment Data More jobs = healthier economy = stronger currency Trade Balance A surplus strengthens the currency; a deficit weakens it Central Bank Policies Actions (like rate hikes or QE) can heavily influence currencies Geopolitical Stability Political risk or instability usually weakens a currency Consumer & Business Sentiment Reflects confidence in the economy’s future Important Reports to Watch REPORT REGION RELEVANCE Non-Farm Payrolls (NFP) USA Key job creation report CPI & PPI Global Measures inflation GDP Reports Global Measures economic output Interest Rate Decisions All Set by central banks (e.g., Fed, ECB, BoE) PMI (Purchasing Managers’ Index) Global Measures business activity Why Use Fundamental Analysis in Forex? Identifies long-term trends Helps anticipate central bank moves Complements technical analysis Aids in understanding currency strength/weakness drivers Limitations Doesn’t predict short-term price action well Requires understanding of global macroeconomics Market may not react logically or immediately

Technical Analysis

Technical Analysis

What Is Forex Technical Analysis? Technical analysis in Forex is the study of historical price data, primarily through charts and indicators, to forecast future price movements. It assumes that all market fundamentals are already reflected in price. Core Principles Price Discounts Everything – All news and fundamentals are already priced in. Price Moves in Trends – Markets tend to move in directional trends. History Repeats Itself – Market behavior often follows patterns over time.   Popular Tools & Indicators TOOL/INDICATOR USE Support & Resistance Key price levels where price tends to pause or reverse Trendlines & Channels Identify direction and strength of trends Moving Averages (MA) Smooth price data to identify trends Relative Strength Index (RSI) Measures momentum (overbought/oversold) MACD Identifies trend direction and reversals Bollinger Bands Measures volatility and potential breakouts Fibonacci Retracement Predicts pullback levels in trends Advantages Great for short-term trading Clear entry/exit signals Can be automated with algorithms Limitations Doesn’t account for economic fundamentals False signals in choppy markets Needs discipline and practice to master