To recap the Basic Beans on the prestigious Forex Diva Coffee Break course, technical analysis is the study of price movement on the charts while fundamental analysis takes a look at how the country’s economy is doing. Market sentiment analysis determines whether the market is bullish or bearish on the current or future fundamental outlook, and you make the final decision on whether or not you should enter the market by your Capital and Overall analysis.
All these form your Invest Diva Diamond, which you can wear proudly at a forex party. Well, first you need to start with a fake forex party AKA trading on a demo account. Don’t worry, you don’t have to dress up or put on makeup to attend this party. You don’t even have to leave your home. All you need is the Invest Diva diamond and this book by your side. Attending a number of fake parties is absolutely crucial in order to proceed with this book.
It wouldn’t help if you just read all the analysis and memorize them one by one. In order to learn anything properly, you need to be interactive. You are now required to open a new tab on your computer browser, (or iPad, Smartphone, or any other gadget that hosts free forex demo accounts,) type the following in your search engine: “Free Forex Demo Account,” and download whichever you like.
Remember, you don’t have to and should not stick to your first demo account you open for the rest of your life. Beware that free demo accounts are the largest advertising asset for most brokers, and once you open an account, the hosting broker will try SO HARD to get you to open a live account with them right after. A smart Forex Diva wouldn’t fall for these advertisements. So my recommendation for you is to try as many broker’s demo accounts throughout the course of this book. They are all free and you will have no risk of loss of money. Later on in the Forex Diva course, I have dedicated a full session to guide you with choosing a forex broker for your real account. But for now, it’s time to study.
Did you open a demo account yet?
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We are waiting.
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Finished? Cool. Now you are qualified to proceed with the Forex Diva course.
Pre-party warm-up
- Based on what you learned so far, what is a “forex party”?
- What are the five essential points of in your Invest Diva Diamond?
- What is a “fake forex party”?
If you answered the following, you are ready to go!
- A Forex Party is a metaphor we use in this book to visualize a forex trading platform
- Five essential points of the Invest Diva Diamond are:
- a) Technical analysis
- b) Fundamental analysis
- c) Sentimental analysis
- d) Capital analysis
- e) Overall analysis
3. A Fake Forex Party is a free demo forex platform that you can download from the internet. It has all the functions of a real account, but the money isn’t real.
Now that you have opened your demo account, you probably see a giant platform filled with numbers, charts and different currencies. Such a crowded party!!
But we want to start slow. No need to complicate things.
Step 1
Go back to the currency pair party lesson and quickly take a look at the currency pairs who can be invited to your party (majors, minors, exotics,…)
Step 2
Close your eyes and pick a currency pair that you think is the coolest
Step 3
Open your eyes
Step 4
Go back to the demo trading platform and click on the chart which represents the currency pair that you picked. Now on your monitor you should see something like this:
As you may have noticed, I picked EUR/USD as my favorite currency pair for today. That’s right, this is the EUR/USD dance floor! They can jump up and down and change colors.
Charts are useful because they show you where the pair was dancing at any given month, week, day, hour, or even minute! You just need to set the chart on the specific time frame that you want to check out the movements, then look at the horizontal axis for the time, and the vertical axis for the price.
In the chart above you can see the hourly candle chart of EUR/USD for the 16th, 17th, and 18th of January. At any given hour in these three days, the approximate price of the Euro against the dollar can be discovered in the chart. I have a point when I say “approximate price.” We will get more into this right in the next coming pages, but for now, you need to know that candles are one of the recent ways to show the currency pair movements on the dance floor.
