I got a little further in the same chapter. Instead of quotes, here are the ideas:
In the exchange rates, it seems like the base currency is usually the stronger one. That is the say, the ratio (base currency)/(counter currency) is greater than 1. This seems to be the trend on MetaTrader. I'll look into it.
The charts can be displayed 3 ways:
Lines - just the closing prices within the specified time frame (5min, 15min, 30min, 1hr, daily, etc)
Bar - provides open, high, low, and closing (OHLC) prices for each time period
Candlestick - same as bar, but easy to see if buyers or sellers are controlling a period.
These charts are used in all the markets. This chapter mentioned three market segments which also seem relevant for viewing all markets for trading:
Trend (upward or downward), range (sideways with resistance above and below), and breakout (breaking through resistance). A different segment can be seen based on the time frame you are trading, so be careful.
Unlike the stock market, the # of contracts bought = # sold in the forex market. Prices move because of emotion just the same.
I have to list the strategies I will take. For example, "When I see conditions a, b, c, d, e, and f, I will trade with strategy A." One of the 1st books I read on trading talked about the use of post it notes put on the screen to remind the trader what to do. This reinforces discipline in trades so that we won't fall victim to acting on a whim. By being consistent in our trading strategies, we can conclude what works and what doesn't.
I found out that spreads are lower for more liquid pairs of currencies. Thinking of stocks, this seems to be what I want within any trade; liquidity - the ability to go from trades to cash easily.
One reminder: "For short positions, trades execute on the bid price, exit on the ask price." The reverse is true for long positions.
In the MetaTrader app, my last position (17.32 -> 17.02) selling 4.0, I made $1200. I'm down -$180 on my current 'buy' of 2.0. So that means I entered on the ask price, and I'll exit on the bid.
A few things I noticed in MegaTrader: Margin + Free Margin = Equity. Margin Level makes no sense. I still don't see how my leverage is being incorporated into my trades, so I'm going to start another demo with $100,000. May be the round numbers will help me figure it out.