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Beware! This is addictive... addictive in a positive sense! I have been on an incredible journey since joining up with Andy learning currency trading. I can't speak highly enough of Andys guidance and ability to walk you through with patience, skill, encouragement and enthusiasm. Thank you Andy for opening this exciting door for me, bring it on!
Melody Downie - Tauranga
I have only been with Andy for around 3 months, and had no exposure what so ever to Forex prior to joining the program. I had previously traded shares and Futures with a great deal of frustration and loss, and came to Andy with a lot of "baggage" from my trading history; desperately looking for solutions. I have found the way Andy goes about things in our weekly sessions to be calm and structured. He has " been there, done that" and has given me the psychological tools and training to remove the fear and cynicism that I arrived with. I greatly look forward to our weekly sessions, because I know Andy will hold me accountable for my trades, which has enabled me to trade clinically and objectively. My attitude to the market, life and trading are poles apart from when I started with Andy.
John Glassbrook - Tauranga
I've had it in my mind for some time now that I would like to learn to trade foreign currency, but only recently freed up enough time to embark on the learning process. I wish now that I had started much earlier. I chose to work with Andy in one-on-one sessions initially because I liked his philosophy of being present in the "now" and carrying that approach over to the practice of trading. I continue to work with Andy for so many other reasons. Andy speaks my language - he teaches systems and procedures, and rules, and above all, controlled risk. But, most importantly he teaches controlled emotion. Andy is patient and encouraging, never berating or belittling, and always supportive. He openly shares from his vast wealth of experience and knowledge and goes at a pace tailored just for me. Each time we meet my toolbox grows and my confidence in the system is reinforced. I believe so strongly in Andy's system I think it should be taught as standard curriculum in our schools. Andy's passion is contagious, and now I've caught the bug.
Donna Hudgeon - Tauranga
"As a complete beginner there was a huge mine field of products and people offering "the best" available coaching services. I wanted to learn from a professional in the industry. They to needed to be a successful trader themselves, but most of all, they needed to be honest and have a passion for their profession. I have found that person in Andy. His coaching style and understanding are both deep and wide in all facets which offer the complete package for any trader at any level. The coaching for the past 6 months has given me fantastic skills to minimise my risk and maximise my profit, including great indicators that are simple and deliver results. Consistency is key for me and Andy`s coaching provides that!"
Wayne Secker - Whakatane
“My wife and I have been coached by Andy for the past 7 months. We decided we wanted freedom to be able to do what we wanted to do and work towards our goals. We knew that trading was an option even though the whole concept of currency trading was new to both of us and we were not too sure what to expect. Well it’s the best thing we have ever done for ourselves its, exciting, hard work and quite hard on the psychology of one’s self. If one wants to put the hard yards in it is certainly worth its weight in gold.”
Ben and Maria Pomare - Rotorua
"After going through a couple of on-line trading courses I realised there is so much more to trading than flashy, pretty looking indicators. I have been fortunate to learn through Andy for the past 3 months and now strongly believe one on one weekly session are by far the best possible way to learn how to become a consistently successful trader. Andy is the real deal with an amazing ability to see your strengths and weaknesses and then give you advice and guidance's to strengthen your weaker areas. Currently Andy is helping me achieve a stronger winner’s mindset. I fully recommend to anyone who wants to take advantage of the massive potential available in the markets to seek Andy's guidance."
Jared Tong - Tauranga
Forex FAQ's
What is Foreign Exchange?
What is Spot?
Where is the central location of the FX Market?
Who are the participants in the FX Market?
When is the FX market open for trading?
What are the most commonly traded currencies in the FX markets?
Is Forex trading expensive?
What is Margin?
What does it mean have a 'long' or 'short' position?
What is the difference between an "intraday" and "overnight position"?
How are currency prices determined?
How do I manage risk?
What kind of trading strategy should I use?
How often are trades made?
How long are positions maintained?
When one asks what the Foreign Exchange market is, it is likely that you will get bombarded with technical jargon referring to the “Forex” market, which is the term that many businessmen use to describe the world’s largest financial market. However, what exactly does this term mean? According to the businessmen that use the term “Forex,” this involves the immediate buying of one currency and selling of another. Still confused? Basically, within the Foreign Exchange market, a currency’s value can fluctuate and this is known as a floating exchange rate. These currencies tend to always be traded in pairs, such as the Euro and the Dollar.
A spot transaction is the exchange of one currency for another on the day of the transaction or within two business days, simple – don’t let the technical jargon confuse you! Approximately 40% of all foreign exchange transactions are spot transactions; these tend to be the most popular.
Where is the central location of the FX Market?
The FX market is not like other markets such as the stock market as it does not have a central location. Technically speaking the FX market is known as an ‘Over the Counter’ (OTC) market or an ‘Interbank,’ but this simply means that the transactions are conducted over the telephone or via an electronic network which makes it pretty convenient.
Who are the participants in the FX Market?
The reason why the FX market is called an ‘Interbank’ is because traditionally it was where only the ‘hot-shot’ bankers could exchange various currencies. However this is all changing. More and more organisations are entering the market and this includes you!
When is the FX market open for trading?
The FX market is always on the go as it is a 24 hour market due to the currencies being in such high demand. Trading begins each day in Wellington and then moves around the world as each dealer wakes up and begins their trading day. So it moves first to Tokyo, then to London and then onto New York. This is great because investors can respond to various economic, political and social events and you don’t have to worry if you’re not a morning person – you can trade in the evenings.
What are the most commonly traded currencies in the FX markets?
There are many currencies used all over the world, but the only currencies that are traded are those that are economically and politically stable. In general there are seven main currencies that are traded. These are the US Dollar (USD), the Japanese Yen (JPY), British Pound (GBP), Canadian Dollar (CAD) and the Australian Dollar (AUD), the Euro (EUR) and the Swiss Franc (CHF). So you’re spoilt for choice!
The simple answer is no. These days using FXPRO you can start an account for as little as $500 USD and execute margin trades at up to 500:1 leverage. So, this means that an investor could execute a trade of $50,000 with an initial margin requirement of $100. Simple! However, don’t forget that while this allows you to maximise your profit potential, you’re still equally at risk for losses. If you’re new to the market, it might be a better idea to execute margin trades at 50:1 – but that all depends on how adventurous you’re feeling.
Margin is another technical term used by investors that basically means borrowed money from a broker that is used for trading. Generally speaking, the usual equity margin allowed in the equity markets is 50%; this gives the investor double the buying power. Leverage tends to range from 1-500%, giving investors suitable leverage to trade actively. Trust me, this may seem all a bit much to take in at the moment – but you’ll get it all eventually!
What does it mean have a 'long' or 'short' position?
In trading terms, a long position simple translates as a situation when a trader buys a currency at one price and intends to sell it for more at a later date. This would mean the investor would benefit from a rising market. On the other hand there are times when a trader will sell a currency at a certain price and intend to buy it with the expectation that it will decrease in value and so benefit from the declining market. Pretty straightforward huh?! But remember – some times it will be appropriate to go long in one currency but short in another. No two situations are the same.
What is the difference between an "intraday" and "overnight position"?
The clue is in the word! Intraday positions open anytime during the 24 hour period and usually close by the end of the trading day. Overnight positions are still on at the end of normal trading hours (4.30pm ET). In other words when a trader maintains a position in the market even when the market is closed. By now you’ll be able to see that these trading terms aren’t as complicated as you may first have thought.
How are currency prices determined?
The obvious factor that can affect currency prices is the purchasers of the currency. There are a number of economical and political factors that can also affect the price of a currency. From time to time governments participate in the FX market in order to sway the value of their currency. They do this by either overloading the market with their domestic currency in an attempt to lower the price, or they do the opposite and purchase a great deal in order to increase the price. This is called a Central Bank intervention. This explains the unpredictability of currency prices and the main reason why us investors have to been so on the ball.
This is a very good question as everyone needs to know how to manage risk, for the simple reason that no one wants to lose money do they?! We teach to only ever risk 1% of your account. So what tools are available to avoid risk? Well, firstly a limit order is an order where the buyer or seller has set a limit on the maximum price to be paid or the minimum price to be received. Secondly, a stop loss order is simple but powerful and is an essential tool for limiting losses. It is an order placed with a broker to sell a position as soon as it reaches a certain price. These are both tools that you need to be familiar with in order to rake in the big bucks.
What kind of trading strategy should I use?
Well firstly it depends on what kind of trader you are. Are you a fundamental trader or a technical trader? Have you even decided?! If you’re a fundamental trader you are likely to make decisions based on economic fundamentals rather than technical factors. If you’re a technical trader, charts, trend lines and various patterns and mathematical analysis might come in handy when identifying trading opportunities. You may have a technical strategy to follow to make sure you make the right decisions, but this could go of out the window following a turn of events such as a political election. So it helps to always be one step ahead!
Its completely up to you! Most traders make decisions based on the market conditions. A small to medium trader may trade only 3 to five times a day but of course this can vary from day to day. But don’t forget, FXPRO has very competitive spreads, so you can take positions as often as you wish and even better, there’s no need to worry about excessive transaction expenses.
How long are positions maintained?
The majority of positions tend to only last seven days or less. Approximately 40% last less than two days. Traders keep a position open until one of the following occurs; 1. The pre-determined stop loss is triggered, 2. They attain sufficient funds from that position 3. Another position with more potential appears in the market. Follow this advice and you’ll be as good as those ‘hot shot’ investors you aspire to be like!