TradingTeaching Press · Dubai, UAE Trading is high-risk. Check local laws, your residency rules and your finances. Risk warning
Forex Trading Foundations, 2027 Edition, Book 1 cover

2027 EditionForex Series · Book 1 of 3

Book 1 · Beginner

Forex Trading Foundations

The Complete Beginner's Guide to Currency Markets

A complete introduction to the forex market for readers starting from zero: what moves currencies, how to read currency pairs and quotes, how the market and your broker work, how orders, lots and leverage fit together, how to read a chart, and the risk management rules that keep an account alive while you learn.

Buy on Amazon.com

Kindle eBookKindle editions arrive instantly$12.99 PaperbackPaperbacks ship to the UAE$24.99
  • Paperback ISBN9798244437560
  • PublisherTradingTeaching Press

This is education only, not financial advice. Trading is high-risk. Check local laws, your residency rules and your finances. Readers in the UAE: order from Amazon.com.

  • 12 Chapters, Zero to First Trading Plan
  • Worked Examples with Real Numbers
  • Risk Rules: 1% a Trade, 0.5% in Year One
  • Free Companion Workbook
  • A Quiz for Every Chapter, with Answers
  • Common Mistakes and How to Avoid Them
What you'll learn

Inside Forex Trading Foundations

Six of the twelve chapters, in the book's own words.

What Is Forex and Why Trade It?

This chapter covers what currencies are, why they move, and how the market became what it is today. (Chapter 1)

How the Forex Market Works

The forex market is built differently from a stock market, and its structure shapes your results more than most beginners expect. It decides when the market is busy and when it is thin, what your trades cost, and what can happen to an order between your screen and the fill. (Chapter 3)

Your First Trade: Orders, Lots, and Leverage

This chapter covers the mechanics underneath every decision you will make later: the order you send, the size you send it in, and the leverage your broker lends you to do it. (Chapter 5)

Introduction to Chart Reading

Technical analysis, the study of price charts to forecast future movement, is the primary tool for most retail forex traders. This chapter lays its foundations: chart types, candlesticks, timeframes and trends. (Chapter 6)

Your First Indicators: Moving Averages and RSI

This chapter introduces the first two: moving averages and the Relative Strength Index. They are among the most widely used tools in forex. (Chapter 9)

Risk Management Essentials

This chapter sets out the rules that keep an account alive long enough for your skills to develop. (Chapter 10)

Contents

Complete chapter overview

The twelve chapters of the 2027 Edition.

1

What Is Forex and Why Trade It?

This chapter covers what currencies are, why they move, and how the market became what it is today.

What Forex Means · A Brief History of Currency Trading · The Forex Market Today · Why Trade Forex? · Forex Against Other Markets · Who Should Trade Forex? · Realistic Expectations

2

Understanding Currency Pairs and Quotes

This chapter teaches you to read the numbers on a trading screen: what EUR/USD 1.0850 actually means, how to work out the profit or loss on a trade, and why some pairs cost more to trade than others.

What Is a Currency Pair? · Base Currency and Quote Currency · Major Pairs, Crosses and Exotics · Reading a Quote · Pip Value · Long and Short Positions · Pair Nicknames · Choosing Your First Pairs

3

How the Forex Market Works

The forex market is built differently from a stock market, and its structure shapes your results more than most beginners expect. It decides when the market is busy and when it is thin, what your trades cost, and what can happen to an order between your screen and the fill.

A Market Without an Exchange · The Market Hierarchy · Who Trades Currencies, and Why · The 24-Hour Trading Day · Liquidity · How Your Order Reaches the Market · Weekend Gaps and Holidays · The Economic Calendar

4

Choosing Your Broker and Platform

The pages that follow cover broker types, regulation, platforms and the warning signs of fraud.

Why Your Broker Choice Matters · Types of Forex Brokers · What to Look For in a Broker · Trading Platforms · Opening a Demo Account · Avoiding Broker Scams

5

Your First Trade: Orders, Lots, and Leverage

This chapter covers the mechanics underneath every decision you will make later: the order you send, the size you send it in, and the leverage your broker lends you to do it.

Before You Place Your First Trade · Order Types · Lot Sizes · Leverage · Placing the Order · Profit and Loss · Swap and Rollover · A First Trade, Start to Finish

6

Introduction to Chart Reading

Technical analysis, the study of price charts to forecast future movement, is the primary tool for most retail forex traders. This chapter lays its foundations: chart types, candlesticks, timeframes and trends.

Why Charts Matter · Three Kinds of Chart · Reading a Single Candle · Timeframes · Trends · Market Structure and Price Action · Chart Navigation in MT4 and MT5 · Context Before Detail · Common Chart-Reading Mistakes

7

Basic Candlestick Patterns

The chapter covers the patterns every trader should be able to recognize. Learn them well, but treat them as clues rather than certainties.

How Patterns Work · Single-Candle Patterns · Two-Candle Patterns · Three-Candle Patterns · How Reliable Are They? · Trading a Pattern · Patterns at a Glance

8

Support and Resistance Basics

This chapter shows how to identify those levels, why they are thought to work, what careful measurement says about how well they work, and how to use them in your trading decisions.

Why Levels Matter · Support · Resistance · Finding the Levels · Zones, Not Lines · Role Reversal · How Strong Is a Level? · Three Ways to Trade a Level · Beyond Horizontal Levels · Where an Edge Comes From

9

Your First Indicators: Moving Averages and RSI

This chapter introduces the first two: moving averages and the Relative Strength Index. They are among the most widely used tools in forex.

What Indicators Do · Kinds of Indicator · Moving Averages · Using Moving Averages · The Relative Strength Index · Using RSI · Putting the Two Together

10

Risk Management Essentials

This chapter sets out the rules that keep an account alive long enough for your skills to develop.

Why Risk Management Comes First · The Mathematics of Survival · The 1% Rule · Position Sizing · Where to Put the Stop · Reward and Risk · Expectancy · Managing Drawdown · Trading Capital · Ten Rules of Risk Management

11

Building Your First Trading Plan

Professional traders trade from a plan; amateurs trade from their feelings.

Why You Need a Plan · The Ten Elements · Goals · Markets · Timeframes · Sessions · Strategy Rules · Entry Triggers · Exit Rules · Position Sizing · Routine · Review and Improvement · Writing It Down · From Demo to Live

12

Common Mistakes and How to Avoid Them

The traders who last are not necessarily smarter or more talented than everyone else. They have learned to avoid the mistakes that everyone else keeps making.

Why Most Traders Fail · Mistakes of Preparation · Mistakes of Risk · Mistakes of Execution · Mistakes of Mind and Method · Turning Rules into Habits · The Emotional Side of Trading · Surviving the First Year · Ten Truths to Keep

Who it is for

Who is this book for?

  • Complete Beginners

    Never traded before? This book starts from absolute zero. No prior knowledge required.

  • Stock Traders

    Transitioning from stocks to forex? Learn the key differences and forex-specific concepts.

  • Self-Taught Traders

    Fill the gaps in your knowledge with structured, comprehensive education.

  • Aspiring Professionals

    Building a career in trading? Start with the right foundation from day one.

Video course · Online

Prefer to watch?

The Forex Trading Foundations video course teaches this book lesson by lesson on the TradingTeaching Academy. The whole of Book 1: the market, currency pairs, orders and leverage, chart reading, risk management and your first trading plan.

  • 61 lessons
  • 12 modules
  • 255 quiz questions
  • Module 1 free
$99One payment, lifetime access See the course
academy.tradingteaching.com Course 1Forex Trading Foundations
Vadamalai Subramaniam, author of the Forex Series
About the author

Vadamalai Subramaniam, CMT, EPAT

Vadamalai Subramaniam is a Chartered Market Technician (CMT) and completed QuantInsti's Executive Programme in Algorithmic Trading (EPAT). He brings 15+ years of professional market knowledge to the Forex Series.

More about the author
The Forex Series

Three books, read in order

  1. Book 1 · BeginnerThis book

    Forex Trading Foundations

    An introduction to the currency market: how it works, currency pairs and order types, choosing a broker, reading a chart, first indicators and risk management.

  2. Forex Trading Strategies, 2027 Edition, Book 2 cover
    Book 2 · Intermediate

    Forex Trading Strategies

    Trend analysis, Fibonacci, Bollinger Bands, momentum and multiple-timeframe setups, with position sizing, system testing and a trading journal.

  3. Forex Trading Mastery, 2027 Edition, Book 3 cover
    Book 3 · Advanced

    Forex Trading Mastery

    Institutional Methods & Smart Money Concepts: order flow, harmonic patterns, volatility, correlation, multi-pair portfolios and trading as a business.

Start with Book 1

Forex Trading Foundations on Amazon: Kindle $12.99, paperback $24.99.

Kindle $12.99 Paperback $24.99 Have questions?

This is education only, not financial advice. Trading is high-risk. Check local laws, your residency rules and your finances.
Readers in the UAE: order from Amazon.com. Kindle editions arrive instantly and paperbacks ship to the UAE.