You can contact the ForexSchoolOnline.com team on the following email addresses.
Advertising & Broker Enquiries: [email protected]
Customer support email: [email protected]
ForexSchoolOnline.com is operated by Finixio Ltd.
25 Old Broad Street
Common Questions – FAQ's
Is Forex Risky and What is the Recommended Leverage?
Forex and trading involve some risk if you are trading real money. However, you can minimize this by using strategies such as working out your trade size, so you know exactly how much you are prepared to lose, and then always using a stop loss.
If you are not familiar with working out your position size before a trade, and money management, see Using Correct Money Management.
A big myth is that with large leverage comes bigger risk: this is not the case at all. Just because a trader may have 500:1 leverage does not mean they have more risk than someone using only 25:1.
If, however, the trader with 500:1 is using every spare dollar in their account with that leverage in order to make a trade as big as possible, then of course, this is a lot more risk. But the leverage shouldn't matter because both traders should be both working out their trade sizes exactly the same way, and the leverage should not be affecting the outcome of the trade.
What Equipment Do I Need to Trade Forex, i.e. What Charts Do I Need?
As stated in the heading, the number one key bit of kit for a price action trader is New York ‘close 5-day charts'. The important thing here is that their charts only have 5 daily candles instead of 6, and the days start in Asia where the market opens, works through Europe and the UK, and then closes in the US. This way, your daily candles are getting the most accurate reflection for price action.
Hand-in-hand with the close time of the charts goes a really solid broker. As a trader, we need to be able to know that we can rely on our broker, and also know that our stops and targets will get executed. The other thing is that one of the biggest expenses a trader is going to have over their career is commissions and spreads.
There can be a huge discrepancy between a good and a dodgy broker when it comes to spreads. Whilst you may think it is only a few pips, soon you will start making bigger and bigger trades, and over time, those pips quickly add into thousands. That’s how the brokers make their profits!
You can download your free set of demo charts or a new broker for a live account here: Recommend Charts & Brokers For Price Action Traders.
I have created a personal tools and resource list that I give out for free. If you have not yet received this, I recommend this to you. You can get this here: My Trading Tools & Resources
Can I Trade Price Action on Daily Charts or Smaller Time Frames as Well?
Price action can be traded on smaller time frames successfully because, as I discussed in the answer above, what we are doing with price action is reading the behavior of the traders who are moving the markets, and their order flow. This is the same whether it is a daily chart or a 15 minute chart.
Of course, it can get more tricky the smaller the time frame. The reason for this is that there can often be more false breaks and many more minor support and resistance levels to contend with. We discuss how to deal with this in the Lesson Daily to Smaller Time Frame Trading.
Can I Still Trade Price Action With a Full Time Job?
Yes. Each country and time zone works differently for everyone, but you can trade price action with a full time job.
In Australia, having a job and trading the Forex markets works almost perfectly for a lot of the year because they are able to wake up, check the New York close candle as it closes for any potential setups, and go off to work. When coming home from work, the UK session is about to start, which is the perfect time to start hunting intraday setups.
In other countries, a different approach is needed. I have lifetime members in South Africa who have full-time jobs and have decided to concentrate on the 4 hour charts with their trading. This is the way it suits them best with the time zones, so it is really just how it suits you and your situations best.
Read about how to trade with a full time job here.
Can I Trade Price Action On Markets Other Than Forex?
The reason price action is so great is because it is not some EA or fixed system. With price action, you are actually reading the behavior of the traders moving the market. Everything that traders are doing in their buying and selling is being represented right on the chart with price moving up and down, creating the price action story for you to analyze.
This is why you can read price action on many markets because all you are doing is reading the price action behavior of the buying and selling in the market.
Checkout the lesson; Stocks vs Forex.
How Much Money Do I Need to Start Trading Live?
This is a super tricky question because there is no right or wrong answer.
What is important is that you first use a demo account to prove that you are a profitable trader before you start risking a cent of your hard earned cash on any real live trades. I have had countless emails from traders who are contacting me for the first time, telling me how they have blown XXX amount of dollars, trading a live account and they've never had a clue if they were profitable, or if the method they are using is profitable. This is gambling, not trading.
Use a demo first to become a profitable trader. Don’t listen to all the hogwash about how you need to trade a real account to get the experience, etc. That will come when you move to a real account, but until then, you need to know if you are profitable or not. It is pointless going to a live account if you have no idea if you are profitable or not.
How much money should you be trading with? This is going to vary so widely for a number of reasons. What $10,000 is to one person is not the same to another, even within the same country. This is because we have things like family situations, some people have kids and mortgages, whilst some are just uni-students.
Then, $10,000 in some parts of the world is much more than in others. So, to answer this question, the best way to put it is this: you should NEVER EVER risk money that you cannot afford to lose. If you need the money for food, rent, or bills, etc., you should not be making trades with it. The smallest amount you can open an account with is $200 and if that is all you have to start with, then that is fine. Start from there, skip your daily coffee, and start building – and use the power of compounding!
Does Price Action Trading Suit the Stock Market?
There are a couple of problems with trading individual stocks on any country’s markets. The major one is that unlike Forex where the market is open 24 hours per day, the stocks are only open for 8 hours during that country’s trading session. Because of this, there are huge gaps all over the daily price action charts where price is not simply flowing into the next session. Instead, a stock's price is regularly opening a lot higher or lower than where price closed the previous day.
This makes it near impossible to trade the daily charts because way too often, you would be stopped out with these gaps. The only other way to use price action would be to trade intraday or the smaller time frames, but the issue with this is that stocks just do not have the liquidity or the volatility. In other words, they just do not have enough money being traded in them and they do not move enough each day.
Checkout the lesson; Stocks vs Forex.
Lastly, unlike Forex and other futures markets like the commodities, such as oil, wheat, etc. where we can get really good leverage, they are really cheap to trade. Stocks are more expensive and unless you trade CFD's, there is no margin. In other words, you have to pay the whole 100% of the position. You can trade CFD's, but that involves more fees.
So, you can trade stocks, but there are far better markets to trade on the short term than stocks, and if you were looking to trade this way because you can't trade Forex, you are better off looking at stock indices. This is because stock indices trade almost 24 hours per day, they come with good margin, they are super cheap to trade, and they come on MT4 with New York close charts.
How Much Time do I Need to Devote to Trading?
This will depend on the route you want to go down. I have a lot of members that only trade the daily charts. This means they have full-time jobs and only spend 30 mins – 1 hour a day on the daily charts.
If you have more time, you may choose the daily charts plus adding the intraday charts such as the 8 hour, 4 hour, 1 hour, and potentially even smaller, during the UK and US trading sessions. This could then take anywhere from 1-3 hours per day, depending on how narrow a time frame you wish to go.
Does Price Action Trading Suit a Beginner?
Being a beginner is actually a very lucky thing because you don't have a mind full of bad habits and incorrect teachings. If you are very careful in what you learn from here, what you practice and where you go in your next steps, being a beginner could be very beneficial for you.
I recommend you first get a grasp of the basics of Forex, which are necessary for you to understand how the market works and operates. You can do this in our FREE Online Beginners Course
From there, the best thing to do is to open up a demo account and start learning how to trade price action the correct way, either through our step-by-step price action courses in the Lifetime Membership or the Price Action Strategies and Forex Videos on the site.
What is Forex Correlation? How Many Pairs Should I Trade?
The basic rule of thumb is that you never want to double up on any zone/area on country. No Forex correlation charts area needed for this.
For example, if you normally risk 3% per trade, then you would not want to risk 3% on the EURUSD and EURNZD each at the same time.
BUT if you could really not pick between them and really loved them both, what you could do with the JPY pairs for example is if one forms something, they all form it, then instead of just picking one, you could play both trades but split your risk.
For example, you could play both the EURO trades above but instead of doubling your risk, we could risk 1.5% on one trade and 1.5% on another, so we are still risking 3% overall. This avoids us risking and losing 6% of our account to the EURO if something happens in that region.
There is a video lesson on how you can do this in your trading at; Trick to Trading Multiple A+ Trades in Same Forex Pairs & Never Risking TOO MUCH
You can also find a list of Forex pairs and markets to trade here.