Here is Review of Step One Forex Lesson , this step gives an idea of Meta trader software; types of charts used in analysis, Forex stop loss and also introduce commonly used trading terms.
Meta trader software
Meta trader software is software used in the Forex Trading. The user interface of this software is so simple and easy to understand that a beginner can also understand the process of opening and closing positions with the concepts of stop loss, trailing stop loss, take profit order, buy limit order, sell limit order, buy stop order, sell stop order etc. Meta trader software is provided with menus to make trading easier. These menus are File menu, View menu, Insert menu, Chart menu, Tools menu, Window menu and Help menu.
File menu is used to collect data and charts, logging into account, print the charts and preview the charts before printing. You can also open a demo account without any deposit because these accounts trade with virtual money and do not need any deposit. These used for learning Forex techniques. In the view menu, you can show or hide tool bar, charts bar, status bar and full screen mode. Insert menu is used to provide results from technical indicators, line studies, channels, Fibonacci, shapes and arrows, Andrew’s Pitchfork, Cycle lines, text and text label. Text and text label commands are used to add comments. Chart menu includes commands such as bar chart, candlesticks, line chart, foreground chart, periodicity etc. In Help menu, you can look for help related to any topic.
Types of Charts
Types of Forex charts used for analysis of a currency in the Forex Trading are Line chart, Bar chart and Japanese Candlestick chart. The information from the Line chart suggests the development of any specific currency pair over a certain period of time. Bar chart represents opening price on the left hand side of the chart and the closing price on the right hand side. Bar charts are also called “Open High Low Close” charts. Candlestick chart is also same as bar chart and the only difference between the two is that more graphics is used in the Candlestick chart and the Candlestick chart also has a block present at the center of the chart.
Forex Stop Loss
Forex Stop loss is the facility available to the traders and the investors to limit their losses. Trading without stop loss is like jumping from plane without a parachute because if you are not following stop loss and the price of your opened position starts falling suddenly then there will be nothing to save you. So to save yourself from huge loss, follow stop loss. Other concepts related to stop loss such as trailing stop loss, take profit order, buy limit order, sell limit order, buy stop order, sell stop order etc are also explained in this chapter.
Introduction to Trading terms
Traders and Investors trading in the Forex market should have sound knowledge of common Forex Trading terms such as Trade balance, balance, equity, margin, free margin, margin call etc. The unawareness about these terms will not allow the traders to trade smoothly.