2. By : Hafizzat
ROLE MODELS
Born Vincent Tan Chee Yioun
February 1952
Batu Pahat, Johor,
Nationality Malaysian Occupation Chairman
of Berjaya Group Home town Batu
Pahat
Net worth US$1.3 billion (2013)
35. By : Hafizzat
HAFIZZAT’S STORY
• Hafizzat Rusli, 24 delved into the world of forex trading even before he
reached the age of 17.
• He saved all his earnings as a waiter to start trading. Within less than a
month he grew his relatively small capital of USD500 into more than
USD20k.
• Hafizzat set about training and educating himself with a vengeance. He
learnt from the best he could find but more importantly he acquired and
honed his own trading skills and strategies.
• FXPrimus, one of the industry’s fastest growing brokers, approached
Hafizzat and appointed him as their Super Introducing Broker which is
quite a feat for a boy of 19 with just 2 years of experience in forex trading.
Hafizzat remains the youngest Super IB in the world in this elite group of
only 30 individuals.
• In July 2011 Hafizzat was ranked 5th in FXPrimus Top 20 Traders Global
Contest having made a percentage gains of 81.7% in 2 days. The student
had by now become a master.
48. By : Hafizzat
What is Forex?
• FOREX (Foreign Exchange) or more familiar with currency transactions
• Forex means buying or selling a currency against another currency with a
view to profit
• The currency is a kind of trade / transaction trade in the currency of a
country's national currency involving other major money markets in the
world for 24 hours continuously
• The foreign exchange market, which is usually known as “forex” or “FX,” is
the largest financial market in the world. Compared to the measly $22.4
billion a day volume of the New York Stock Exchange, the foreign
exchange market looks absolutely ginormous with its $5 TRILLION
a day trade volume.
49. By : Hafizzat
What is Forex?
The largest stock market in
the world, the New York
Stock Exchange (NYSE),
trades a volume of about
$22.4 billion each day. If we
used a monster to represent
NYSE, it would look like this…
50. By : Hafizzat
What is Forex?
So the NYSE sounds big, it’s
loud and likes to make a lot
of noise.
But if you actually compare it
to the foreign exchange
market, it would look like
this…
51.
52. By : Hafizzat
Why trade Forex?
ADVANTAGES OF FOREX
There are many benefits and advantages of trading forex. Here are just a
few reasons why so many people are choosing this market:
• No commissions
• No middlemen
• No fixed lot size
• Low transaction costs
• A 24-hour market
• No one can corner the market
• Leverage
• High Liquidity
• Low Barriers to Entry
• Free Stuff Everywhere!
53. By : Hafizzat
Why trade Forex?
No commissions
No clearing fees, no exchange fees, no government fees, no brokerage fees.
No middlemen
Spot currency trading eliminates the middlemen and allows you to trade
directly with the market responsible for the pricing on a particular currency
pair.
No fixed lot size
In the futures markets, lot or contract sizes are determined by the exchanges.
A standard-size contract for silver futures is 5,000 ounces. In spot forex, you
determine your own lot, or position size.
Low transaction costs
The retail transaction cost (the bid/ask spread) is typically less than 0.1%
under normal market conditions. At larger dealers, the spread could be as
low as 0.07%. Of course this depends on your leverage and all will be
explained later.
54. By : Hafizzat
Why trade Forex?
A 24-hour market
There is no waiting for the opening bell. From the Monday morning opening
in Australia to the afternoon close in New York, the forex market never sleeps.
This is awesome for those who want to trade on a part-time basis, because
you can choose when you want to trade: morning, noon, night, during
breakfast, or in your sleep.
No one can corner the market
The foreign exchange market is so huge and has so many participants that
no single entity can control the market price for an extended period of time.
Leverage
In forex trading, a small deposit can control a much larger total contract
value. Leverage gives the trader the ability to make nice profits, and at the
same time keep risk capital to a minimum.
55. By : Hafizzat
Why trade Forex?
High Liquidity
Because the forex market is so enormous, it is also extremely liquid. This
means that under normal market conditions, with a click of a mouse you can
instantaneously buy and sell at will as there will usually be someone in the
market willing to take the other side of your trade. You are never “stuck” in a
trade. You can even set your online trading platform to automatically close
your position once your desired profit level (a limit order) has been reached,
and/or close a trade if a trade is going against you (a stop loss order).
Low Barriers to Entry
You would think that getting started as a currency trader would cost a ton of
money. The fact is, when compared to trading stocks, options or futures, it
doesn’t. Online forex brokers offer “mini” and “micro” trading accounts,
some with a minimum account deposit of $25.
We’re not saying you should open an account with the bare minimum, but it
does make forex trading much more accessible to the average individual
who doesn’t have a lot of start-up trading capital.
56. By : Hafizzat
Why trade Forex?
Free Stuff Everywhere!
Most online forex brokers offer “demo” accounts to practice trading and
build your skills, along with real-time forex news and charting services.
AND GUESS WHAT?! THEY’RE ALL FREE!
Demo accounts are very valuable resources for those who are “financially
hampered” and would like to hone their trading skills with “play money”
before opening a live trading account and risking real money.
57.
58. By : Hafizzat
Who trade Forex?
• the rulers of the world
• the world's major banks
• international class business
• hedge fund
• currency speculators
• individuals
THE PEOPLE WHO TRADE IN FOREX MARKET ARE:
Thus the number of players in the Forex market is causing the velocity of
money becomes very fast.
Transactions happens more than 1.9 trillion U.S. dollars every day and that
means money are transferred from one hand to another in just a few
seconds.
59. By : Hafizzat
Who trade Forex?
Forex Market Hierarchy
Major Banks
Electronic Brokering Services (EBS) / Reuters
Dealing 3000-spot Matching
Medium-sized and small banks
Retail Market
Makers
Retail Traders
Retail ECNs
Hedge funds and
commercial
companies
60.
61. By : Hafizzat
When can you trade Forex?
Now that you know whatforex is, whyyou should trade it,
and whomakes up the forex market, it’s about time you
learned whenyou can trade.
Yes, it is true that the forex market is open 24 hours a day, but that
doesn’t mean it’s always active the whole day.
You can make money trading when the market moves up, and you can
even make money when the market moves down.
BUT you will have a very difficult time trying to make money when the
market doesn’t move at all.
62. By : Hafizzat
What is Forex?
WORLD POPULAR CURRENCY
• USD "U.S. Dollars" or "buck" (the currency of the USA)
• EUR "Euro" (European currency)
• GBP "Sterling" or "Cable" (UK currency)
• AUD "Aussie Dollar" (Australian currency)
• NZD "Kiwi" (the currency of New Zealand)
• JPY "Yen" (Japanese currency)
• CHF "Swissy" (Swiss currency)
• CAD "Dollar Canada" (Canadian currency)
63. By : Hafizzat
How to trade Forex?
1UNDERSTAND BASIC FOREX TERMINOLOGY
• Base currency is the type of currency you are spending, or getting rid
of. Quote currency is the currency that you are purchasing. In forex
trading, you sell 1 type of currency to purchase another type.
• The exchange rate tells you how much you have to spend in quote
currency to purchase base currency. For example, if you want to
purchase some U.S. dollars using British pounds, you may see an
exchange rate that looks like this: GBP/USD=1.589. This rate means that
you'll spend 1.589 dollars for 1 British pound.
• A long position means that you want to buy the base currency and sell
the quote currency. In our example above, you would want to sell U.S.
dollars to purchase British pounds.
64. By : Hafizzat
How to trade Forex?
• A short position means that you want to buy quote currency and sell
base currency. In other words, you would spend sell British pounds and
purchase U.S. dollars.
• The bid price is the price at which your broker is willing to buy base
currency in exchange for quote currency. The bid is the best price at
which you are willing to sell your quote currency on the market
• The ask price, or the offer price, is the price at which your broker will sell
base currency in exchange for quote currency. The ask price is the best
available price at which you are willing to buy from the market
• A spread is the difference between the bid price and the ask price
65. By : Hafizzat
How to trade Forex?
2DECIDE WHAT CURRENCY YOU WANT TO BUY AND SELL
• Make predictions about the economy. If you believe that the U.S. economy
will continue to weaken, which is bad for the U.S. dollar, then you probably
want to sell dollars in exchange for a currency from a country where the
economy is strong.
• Look at a country's trading position. If a country has many goods that are in
demand, then the country will likely export many goods to make money. This
trading advantage will boost the country's economy, thus boosting the value
of its currency.
• Consider politics. If a country is having an election, then the country's
currency will appreciate if the winner of the election has a fiscally responsible
agenda. Also, if the government of a country loosens regulations for
economic growth, the currency is likely to increase in value.
• Read economic reports. Reports on a country's GDP, for instance, or reports
about other economic factors like employment and inflation, will have an
effect on the value of the country's currency.
66. By : Hafizzat
How to trade Forex?
3Read a forex quote
• You'll see 2 numbers on a forex quote: the bid price on the left and the
ask price on the right.
4Learn how to calculate profits
• A pip measures the change in value between 2 currencies. Usually, 1 pip
equals 0.0001 of a change in value. For example, if your EUR/USD trade
moves from 1.546 to 1.547, your currency value has increased by 1 pip.
• Multiply the number of pips that your account has changed by the
exchange rate. This calculation will tell you how much your account has
increased or decreased in value
