Ultimate Trading Roadmap

Step 1: Understanding the Basics

What is Forex Trading?

The Forex market is the world's largest financial market where
currencies are bought and sold.

Currencies are traded in pairs (e.g., EUR/USD, GBP/JPY), meaning

you exchange one currency for another.

Types of Currency Pairs:

Major Pairs: Always include the US Dollar (USD), like EUR/USD or

GBP/USD.

Minor Pairs: Do not include USD, such as EUR/GBP or AUD/NZD.

Exotic Pairs: Consist of one major currency and one from an

emerging market, like USD/ZAR.

BEST PAIRS TO START AS BEGINNER: EUR/USD, GBP/JPY,

AUD/USD
Forex Trading Sessions:

The market operates 24 hours a day, five days a week.

The four major trading sessions are

(Market Hours in IST)

Sydney: 5:30 AM – 2:30 PM

Tokyo: 6:30 AM – 3:30 PM

London: 1:30 PM – 10:30 PM

New York: 7:00 PM – 4:30 AM

( I personally trade in LONDON session and also NEW

YORK-London overlap of 6:00 to 11:00)

CHOOSE ONE SESSION AND STICK TO WHAT SUITS YOUR

STRATEGY THE BEST!!!

Essential Forex Terms:

Pip: The smallest price movement in the Forex market.

Lot Sizes: Standard (100,000 units), Mini (10,000 units), Micro

(1,000 units).

Bid & Ask Prices: The price at which you buy (Ask) and sell (Bid)
currency pairs.

Spread: The difference between the Bid and Ask prices.

What is News Trading?

News trading involves making trades based on economic reports and

geopolitical events.

It is a key part of fundamental analysis, which examines how

macroeconomic factors impact currency prices.

How to Trade News?

Identify Key Events: Focus on reports like NFP, CPI, Interest Rates, and
Central Bank Announcements.

Check the Economic Calendar: Use platforms like Forex Factory or

Investing.com to track upcoming events.

Analyze Forecast vs. Actual Data: Compare expected outcomes with

actual results to predict market reactions.

Trade the Reaction: Price movements after news releases can be

extremely volatile. Traders either trade the spike or wait for a
retracement.

Manage Risk: Use tight stop losses and proper position sizing due to
increased market uncertainty.

Important News Events:

News events can significantly impact market movements.

Key reports include Non-Farm Payrolls (NFP), Interest Rate Decisions,

CPI (Inflation Reports), GDP Announcements, and Central Bank
Speeches.

Trading around news events requires caution due to increased volatility.

Step 2: Learning Basic Technical Analysis

WATCH THIS: https://youtu.be/lNPRb2GPOwI

1.Understanding Market Structure

Uptrend: A series of higher highs (HH) and higher lows (HL).

Downtrend: A sequence of lower highs (LH) and lower lows (LL).

2.Support & Resistance: Key price levels where price often reverses.

3.Trend Identification: Recognizing whether the market is bullish (up)

or bearish (down).
4.Chart Patterns: Includes formations like Double Tops, Head &
Shoulders, and Triangles.

5.Candlestick Patterns: Important formations like Doji, Engulfing, and

Pin Bars.

6.Indicators: Common tools like RSI, MACD, and Moving

Averages.(personally i don't use any indicators and use pure price
action)
Step 3: Mastering Price Action Trading

What is Price Action?

Price action trading relies on raw price movements without using

indicators.

It focuses on analyzing candlestick patterns, trendlines, and key price

levels.

WATCH THIS: https://youtu.be/vbM2R2CM96Q

Key Price Action Concepts:

Break of Structure (BOS): A significant price move that breaks

previous highs or lows.
Change of Character (CHoCH): A shift in trend direction.

Liquidity Zones: Areas where large buy or sell orders are concentrated
(e.g., previous highs/lows).
A liquidity zone is a part of a trading chart where there is a high
volume of trading activity. This can lead to significant price
movements.
Order Blocks: Zones where institutions place large trades, influencing
price movements.

When price revisits unfilled orders to balance liquidity.

Step 4: Smart Money Concepts (SMC)

What is SMC?

A trading approach that focuses on how large institutions influence market

movements.

Core SMC Strategies:

Liquidity Grab (Stop Hunts): Identifying areas where institutions trigger stop
losses before reversing price.

Fair Value Gaps (FVG): Price gaps that are likely to be filled.

Order Flow: Following the direction of institutional money.

Wyckoff Theory: Understanding market cycles of accumulation and

distribution

Study Material: (Topics and youtube channel you can learn from)

SMART MONEY CONCEPT (SMC)

- Market Structure
https://www.youtube.com/watch?v=Pd9ASRCHWmQ

- Liquidity concepts
https://youtu.be/TcmNQJYGdp0?si=P76oXD5_n9Jy9Jml

- Imbalances/FVG
https://youtu.be/fMnNCvRPgYs?si=l3QFnxwNdUn24Irr

-Multi Time Frame ANALYSIS

https://www.youtube.com/watch?v=T6cW9vMIPPQ&pp=ygUZbXVsdGkg
dGltZSBmcmFtZSBhbmFseXNpcw%3D%3D

- Supply & Demand

https://youtu.be/U5BJiBRFkjI
- Premium vs Discount.
https://youtu.be/MlMsG7li9zY

- Optimal trading entry (OTE)

https://youtu.be/4X5E3pMHss4?si=-h-5zTiHyhtI-g6B

- Accumulation, distribution, manipulation.

https://youtu.be/TG2Pm6PxX68?si=05rpmLbCdXLMNKr4
Step 6: Creating Your Trading Plan

1. Choose a Trading Strategy

Price Action: Focus on candlesticks, trends, and market structure.

SMC: Use institutional concepts like liquidity and order blocks.

Indicator-Based: Utilize RSI, MACD, and Moving Averages for signals.

News Trading: Trade based on economic events and macroeconomic

data.

2. Risk Management

Never risk more than 1-2% of your capital per trade.

Always use a stop loss to limit potential losses.

Aim for a minimum 1:2 risk-to-reward ratio.

3. Backtesting & Demo Trading

Test your strategy on historical data before trading live.

Use a demo account for at least 3-6 months to build confidence.

4. Trading Psychology

Avoid overtrading and emotional decision-making.

Stick to your plan and maintain discipline.

Develop patience and a strong mindset to handle wins and losses.

Step 7: Choose What Type of Trader You Are

1. Scalping

Short-term trading with quick entries and exits.

Uses lower timeframes (1M, 5M, 15M) for small but frequent profits.

Requires fast execution and a solid risk management plan.

2. Day Trading

Entering and exiting trades within the same day.

Uses medium timeframes (15M, 1H, 4H) to capture intraday trends.

Suitable for traders who can monitor charts during market hours.

3. Swing Trading

Medium-term trading, holding positions for days or weeks.

Focuses on market structure and trend continuation.

Suitable for traders who can't monitor charts all day.

Tips for Beginners in Forex Trading:

● Stick to major pairs as they have lower spreads and more predictable
movements.
● Start with a demo account before using real money.
● Follow economic news and understand how it impacts currency
movements.
● Manage risk by using stop-loss orders.
● Avoid trading during high-impact news releases if you're not
experienced.
 Trading Guidelines for 2025

1️⃣ Pick One Trading Session

Focus on a single trading session to improve consistency and

performance.

2️⃣ Avoid Trading on Mondays

Mondays are often unpredictable, so it’s best to skip trading on this day.

3️⃣ Best Days for Trading

Tuesday, Wednesday, and Thursday are the most reliable days for
trading.
Fridays can be traded, but aim for smaller profits.

4️⃣ Best Trading Hours

The most effective time slots for trading are 6-8 PM or 8-10 PM.

5️⃣ Use One Trading Setup, Look for Two Entry Chances

Stick to a single strategy, but be ready to enter twice if needed.

6️⃣ Follow a Fixed Strategy for Every Trade

Have a well-defined plan and stick to it for consistency.

7️⃣ Trade Only Three Instruments

Limit your focus to three trading instruments to keep things simple and
manageable.
Trading Tools:

Free:
- Tradingview (Charting)

- MyFXbook (Journaling)

- ForexFactory (News events)

- Metatrader 4/5 (Broker/Demo)

Paid:
- Fxreplay (Backtesting)
- TradeZella (Journaling)
- Prop firms (Capital)