WELCOME TO KENYA FOREX ANSWERS. HERE YOU WILL LEARN HOW TO TRADE FOREX PROFITABLY AND YOU WILL ALSO INTERACT WITH OTHER FOREX TRADERS. WE OFFER FREE TRAINING OPTION FOR YOU AND UP-TO TEN OF YOUR FRIENDS . YOU CAN CALL ME ON +254727292960 FOR MORE INFORMATION.

You can read more about free training here, FREE TRAININIG

 My name is Patrick K N. and I am an online forex trader. I have specifically created this site to offer  training on Forex trading and any other guideline that I can be able to offer those who need to learn Forex trading. This site is for all Forex traders from all over the world and I will continue to invite more people to join this community but I have used the word Kenya to show us where all this idea came from. To all our friends from other countries in Africa, Europe, Asia, south and north America and Australia you are most welcome. It is also a forum for the experienced traders to come and show their expertise here. So long as one will show that they are truly experienced in what they are doing, I will not mind having other experienced Forex traders posting their contacts here just in case someone within their area would be in need of one on one training. I have walked a long journey to be able to trade Forex live and I will endeavor to find relevant information that will be of use to Forex traders.

What is FOREX?

The Foreign Exchange market, also referred to as the “FOREX” or “Forex” or “Retail forex” or “FX” or “Spot FX” or just “Spot” is the largest financial market in the world, with a volume of over $4 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks!  You can trade with currency in a many different ways, and of course the most appealing method is the trade of foreign exchange currencies. Forex allows you to trade not just with the currency of your own country, but allows you to benefit from the currency values of other nations as well. People who deal with foreign exchange trades deal with many different currencies at the same time. The simplest way to explain it is – they try and benefit from the differences of the currencies by buying and selling the currency (exchanging in a way) at the right times. The obvious game plan is to buy a currency ‘low’ and sell it out when it reaches higher exchange values. However, currency values are prone to unexpected changes which even the most experienced traders are unable to predict.

What is traded on the Foreign Exchange market?

The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the euro and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).

Because you’re not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country’s economy, compared to the other countries’ economies.

Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or ‘Interbank’ market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Until the late 1990′s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions – and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to ‘retail’ traders like us.

All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.

Example of  how to make money in forex by buying euros

Trader’s Action EUR USD
You purchase 10,000 euros at the EUR/USD exchange rate of 1.18 x 10,000 =11,800
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500 x 10,000 = 12,500
$12,500-$11,800 = $700. You earn a profit of $700.

*EUR 10,000 x 1.18 = US $11,800
** EUR 10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.

I don’t have enough money to buy 10,000 euros. Can I still trade?

You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you’re able to open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital.

When Can Currencies Be Traded?

The spot FX market is unique within the world markets. It’s like a Super Wal-Mart where the market is open 24-hours a day. At any time, somewhere around the world a financial center is open for business, and banks and other institutions exchange currencies every hour of the day and night with generally only minor gaps on the weekend.

The foreign exchange markets follow the sun around the world, so you can trade late at night (if you’re a vampire) or in the morning (if you’re an early bird). Keep in mind though, the early bird doesn’t necessarily get the worm in this market – you might get the worm but a bigger, nastier bird of prey can sneak up and eat you too…

The Forex market (OTC)

The Forex OTC market is by far the biggest and most popular financial market in the world, traded globally by a large number of individuals and organizations. In the OTC market, participants determine who they want to trade with depending on trading conditions, attractiveness of prices and reputation of the trading counterpart.

The dollar is the most traded currency, being on one side of 86% of all transactions. The euro’s share is second at 37%, while that of the yen is third at 16.5%.

Why Trade Foreign Currencies?

There are many benefits and advantages to trading Forex. Here are just a few reasons why so many people are choosing this market:

No commissions.

No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.

No middlemen. Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.

No fixed lot size. In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250 (although we explain later why a $250 account is a bad idea).

Low transaction costs. The retail transaction cost (the bid/ask spread) is typically less than 0.1 percent under normal market conditions. At larger dealers, the spread could be as low as .07 percent. Of course this depends on your leverage and all will be explained later.

A 24-hour market. There is no waiting for the opening bell – from Sunday evening to Friday afternoon EST, the Forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade–morning, noon or night.

No one can corner the market.
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.

Leverage.

In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

High Liquidity.

Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will. You are never “stuck” in a trade. You can even set your online trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).

Free “Demo” Accounts, News, Charts, and Analysis. Most online Forex brokers offer ‘demo’ accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for “poor” and SMART traders who would like to hone their trading skills with ‘play’ money before opening a live trading account and risking real money.
“Mini” and “Micro” Trading:

You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn’t. Online Forex brokers offer “mini” and “micro” trading accounts, some with a minimum account deposit of $300 or less. Now we’re not saying you should open an account with the bare minimum but it does makes Forex much more accessible to the average  individual who doesn’t have a lot of start-up trading capital. Now here is how to get started by joining the free very comprehensive online forex trading training.

FREE TRAINING ON ONLINE FOREX TRADING

There are so many people who want to trade forex but they do not know how and most of those who attempt it do it the wrong way. There is need for one to clearly understand what he or she is doing in forex in order to reap maximum benefits out of this business. Forex trading is exciting and a great form of investment and no wonder so many people are choosing this option as their preferred form of investment. It does however require some form of preparation inform of training. It is on this regard that easy-forex has come up with a program where the company will sponsor people for a free very comprehensive training. I will in collaboration with easy-forex staff carry out the training. The training will be for both the beginners and the advanced traders. I will teach people the strategy that I use in trading besides also teaching the basics of forex trading to the beginners. Easy-forex staff will also join me in the training and this is a very exceptional case as you will have the chance to ask them any question you have about their company. The training will be for a total of 30 hours. 20 hours will be covered online and 10 hours will be through a seminar which will be fully paid for by the easy-forex company. This is a great opportunity for anyone who has been searching for an opportunity to learn how to trade forex. For every registered participant, he or she will be free to invite up to 10 friends for the free training. The training will be held in Nairobi Kenya every Saturday of the month other than on public holidays. Details of the venue will be communicated to those who have registered for the training.

The requirement for the free training are very simple; all you have to do is to open a real account and then fund it with at least $250 with easy-forex. Remember that only one person is required to open and fund a real account in a group of 11 people. After you have an active account, I will take you plus up to 10 of your friends through the training for the first 20 hours online and then we will meet for the remaining 10 hours of training in a seminar on a saturday. This is a very comprehensive training and you will highly appreciate it. With this kind of arrangement, instead of paying $300-$400 and sometimes even more for training on forex trading, it will be wise to use this money plus your initial planned deposit to open a real account, attend free training which initially you would have paid for, and succeed in starting your forex trading career with good knowledge and capital base. To open a real account, Kindly follow this link EASY-FOREX WEBSITE and then go to the option where it is written OPEN AN ACCOUNT and fill in your details. You do not have to fund the account during the registration process, you can do so after completing the registration process.

N/B YOU DO NOT HAVE TO BE 11 TO BE TRAINED FOR FREE. YOU CAN ALSO GET THE FREE TRAINING ALONE OR WITH GROUP MEMBERS WHO ARE LESS THAN 11.

You can get in touch with me before or after opening the account, either through email kenyaforexanswers@gmail.com or call/sms me on +254727292960.  Feel free to also write your comments about this free training here on this website.

 I will endeavor in this blog to just answer questions regarding Forex. If there is something you would like to know besides writing in the comments section, you can email me at kenyaforexanswers@gmail.com. Am sure we will also get other experienced Forex traders in the forum and in this training joining us so that they can also bring their expertise here. I look forward to your comments on what I can do and probably not do to make is all a success. If you find this idea worth sharing, kindly share it out with your friends  through the sharing links below. Facebook wall  is a good place to let your loved ones know of it.

PAID OPTION

YOU CAN ALSO GET THE TRAINING WITHOUT HAVING TO OPEN AN ACCOUNT AND THE CHARGES ARE KSH 30,000 FOR 30 HOURS OR KSH 10,000 FOR 10 HOURS. IN CASE YOU PREFER THIS OPTION YOU CAN GET INTOUCH WITH ME ON +254727292960 or write me an email on kenyaforexanswers@gmail.com.

Below is a summary of the trading plan/strategy  which  I will expound on during the training after covering several lessons on different technical indicators. 

1. Wait for 7 candlesticks to close above/below the 4 hr Bollinger band median line without touching it.
2. Draw the Andrew’s Pitchfork
3. Define the  4 hr trend
4. Get an entry point from the 1 hr by checking for 3 consecutive candlesticks of the same color in the direction of the trend
5. Risk reward ratio, 1:2. For the most volatile currencies such as EUR/USD, BPD/USD and  CHF/USD, have a target of 150 pips minimum and 100 pips for the less volatile ones in this set up.
6. Set the stop loss at a maximum of 130 pips. If this is not possible, do not take the trade as it might be too risky.
7. The outer Andrew’s Pitchfork line is the target for the trend. If it is broken, the daily Andrews’ pitchfork  outer line becomes the new target.
8. If prices retrace to the outer Andrew’s Pitchfork line but there is no confirmed reversal, wait for one candlestick to close above or below the 4hr Bollinger Bands  median line without touching it and then move to 1 Hr to get the 3 consecutive candlesticks before entering again.
9. If prices retrace either to the 4 hr Bollinger Bands  median line or to the outer Andrew’s Pitchfork line and there is confirmed reversal (7 candlesticks to close above/below the 4 hr Bollinger band median line without touching it), move to 1 Hr to get the 3 consecutive candlesticks of the color of the trend before entering again.

10. N/B, If however the confirmation of the reversal does not yield a trend (does not give rise to 3 consecutive candlesticks of the same color and prices resume the former trend), the process has to be repeated. i.e. one has to wait again for 7 candlesticks to close above/below the 4 hr Bollinger band median line without touching it now in the former direction of the 4 hr trend, and then move to 1 Hr to get the 3 consecutive candlesticks before entering again

11. If prices retrace to the 4 hr Bollinger Bands  median line but do not trade below/above it towards the opposite direction and do not reach the Andrew’s Pitchfork outer band, wait for one candlestick to close either above/below the 1 hr Bollinger Bands  median line without touching it in the color of the trend and then enter again. If however the prices trade below/above  the 4 hour Bollinger Bands  median line  towards the opposite direction, wait for one candlestick to close either above/below  the 4 hr Bollinger Bands  median line without it touching it in the direction of the trend and then enter again from the 1 hour chart when one candlestick closes in the direction and color of the trend.

12. ONLY make use of the 4 hr retracement levels to determine how far the stop should be moved to breakeven. This is very important as frequently moving the stop to break even without paying attention to retracement levels in most cases results to being closed out too soon.

13. Do not enter any trade if prices have already hit the weekly R1 or S1. Exit half of the position at either R1 or S1 and move the stop now to breakeven if it has not been done.

14. Always take note of the FIRST Friday of the month release of nonfarm payroll news. These news tend to determine the direction that the dollar will follow for the month.

15. Enter positions based on a maximum of 5% risk per trade. For a $1000 dollar account, enter a maximum of 5 micro lots with a maximum stop loss of 130 pips

16. Use the one hour to enter short term positions. Wait for prices to retrace and either touch the one hour Bollinger Bands median line or to either trade above or below it depending on the direction of trend.

17. Wait for the prices to resume the direction of the trend and one candlestick to close either above or below the one hour Bollinger Bands median line in the direction of the trend and also in the color of the trend.

18. Also consider the angle of the one hour Bollinger Bands. If it is opposite to the four hour even after there is one candlestick that has closed above the median line without touching it or it is just flat, avoid the trade.

19. If it is not past 6 am EST in the day, enter the short term trade with 5% risk and have 50 pips as the profit target and 50 pips as the stop loss. This can however be adjusted on the basis of either the pivot points or the currency being traded. For a $1000 account, this would amount to 5 micro lots per trade.

20. Do not take more than 3 trades from the 4 hour chart and not more than 2 short term trade. In summary, no more than 5 trades (5% risk trades) should be opened at any particular time. Trades can however be added with time when the previously opened ones becomes profitable.

21. This strategy implies that a 2000 pips loss would be required to wipe out the account.

22. To minimize risk, only open the short term trades if the trade from the 4 hour trend is profitable.

23. An estimated 70% success rate is expected in this set up. Realistically therefore, it would be best to expect a 50% return from this setup per month though this is not fixed since every month presents different trading opportunities.

24. You must confidently be able to answer if your forex account can survive with a good trading margin during the worst case scenario that can result to a gap of even 100 pips.

25. Trade only between New York 1 am EST to 6 am EST (8 am to 1 pm Kenyan time). This will erase the tendency to enter trades late in the day and have the prices retrace as soon as I enter the market.

26. Currencies to trade: EUR/USD, USD/JPY, USD/CHF, AUD/ USD and NZD/ USD. Though I will not trade GBP/USD, I will still observe it as it does have a high correlation with EUR/ USD and can thus suggest what the EUR/ USD might do next.

27. Expected return: If out of the 5 pairs only 4 in a month give trading opportunities and a 70 pip per week per currency is realized, the result would be as follows:

70x 4 =280 per currency per month. Let us approximate this to 250 pips per currency due to possible loss. For 4 currencies, this would equal to 250 x 4 =1000pips. This will then translate to 50% return.

A famous expression “There are old traders; and the there are bold traders; but there are no old bold traders.  Traders that do not use stop losses go broke”

FOLLOW THE TRADING AND ENJOY THE FOLLOWING:

1. 1.    An account that constantly makes profit
2. 2.    Emotional free trading
3. 3.    Trading without stress

Good trading opportunities are rare: Patience is thus a great virtue in Forex trading.

You can get a free copy of the 27 forex trading strategy by becoming an active trader in forex with one of our recommended forex brokers, easy-forex . Open an account with easy-forex by following this link, easy-forex, and we will give you a free copy of the 27 forex trading rules. On opening and funding the account, write to us  at kenyaforexanswers@gmail.com or call us on +254727292960 and give us your details so that we can send you the ebook on the 27 forex trading rules strategy.

WISH YOU GREAT SUCCESS IN ADVANCE

PATRICK K N.

FOREX TRADING IN KENYA.