GK Goh Foreign Exchange Trading

About a month ago, I have attended the GK Goh Forex Trading workshop and brought back with me some basic knowledge on the basics of Forex Trading.

How does Forex trading work?

One will buy or sell currecy against another at a specific exchange rate.

The major currencies traded in the world are:

USD - US Dollar

GBP - British Pound

EUR - Euro

JPY - Japanese Yen

CHF - Swiss Franc

Some of the terms you need to know before trading:
Base and Second Currency - EUR / USD

The currency in transaction is always the base currency. We always buy or sell the base currency. But profit will be calculated on second currency. So in the above case, profits will be calculated on USD and not EUR.

Bid rate (The price on the left-hand side) - The price at which you can sell the base currency.

Offer rate (The price on the right-hand side) - The price at which you can buy the base currency.

An important pattern to take note: Candlestick pattern.

Candlestick is a leading indicator that shows moods, emotions and actions of the market. They are divided into two parts: Bullish patterns (show up after a pullback) and bearish patterns (show up a rally).

Long range candles will mean that the buyers and sellers are aggressive while narrow range candles will mean that little price movement will likely to represent consolidation.

Binni Ong, one of the speaker of the workshop. She is a very experienced investor in the finance industry using instruments such as stocks, futures, options, forex and commodities.

Demo Experience

At first when I first started playing the forex trade demo, I was like at a loss of how to buy or sell the currency as there are quite a few options where we can choose:

Limit Order - Users who wish to submit Limit orders that will be executed at a specific price can do so from the Instrument Panel (Currency Panel).

Stop-Loss Order - Users can submit orders to buy or sell once the price reaches a specified price, known as the Stop price. Stop orders are used to limit the loss / protect a profit on existing positions.

Stop-Limit Order - Users who wish to combine the features of both a Stop-Loss and Limit order can do so using a Stop-Limit order. Once the stop price is reached, the Stop-Limit order is placed to buy or to sell at a specified price.

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Did not use any of the above on the demo. Seems quite complicated as I need to key in a limit price. So I stick to the normal "GTC" - Good Till Cancel where orders that are submitted at a predefined price and remain in the queue until executed or cancelled by the user.

My heart is like the chart. It goes up and down as the price goes. At first, I was very Kiasu. When I started to lose money, I will immediately sell away all my shares. But after a few times, I decided to take a risk, I'm not resigned to the fact that I am losing money. So I just leave it till I make profit.

And it really worked, I managed to win back whatever I had lost. Keep a cool head and monitor the market.

Tips on investing

- The best way is to buy low, sell high.

- Hold your shares for a longer term basis, ignore the short-term fluctuation. Over the longer period, the price of your shares will be appreciate.

- How much to invest: The greater the amount of money, the greater is the risk.

- Do not panic when you lost money, the market will recover.

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Okay, this is what I have learnt in forex trading. Hope you guys have better understanding about forex trading too. Feel free to visit http://www.gkgohfs.com/forextrading.php if you have any enquires.