Welcome to Your First Lesson!
Congratulations on taking the first step toward learning how to trade forex and crypto! This section will introduce you to the two main markets we'll focus on throughout this course, and you'll get hands-on experience setting up your very first trading workspace.
Don't worry if everything feels new right now. Every professional trader started exactly where you are today—at the beginning. By the end of this lesson, you'll understand the basics of how these markets work, and you'll have a free, professional-grade platform ready to use for practice.
Sa section na 'to, matututunan mo:
- Explain what forex and crypto markets are in simple terms
- Understand how currency pairs work (EUR/USD, BTC/USD, etc.)
- Know what a "pip" is and how to spot it on charts
- Create your free TradingView account and navigate the platform
- Turn on Paper Trading so you can practice without risking real money
- Recognize safe vs. unsafe trading platforms, especially in the Philippines
Part 1: Understanding the Forex Market
What is Forex?
Forex stands for "Foreign Exchange." It's the global market where people buy and sell currencies. Think of it like a giant, 24-hour currency exchange counter—but instead of exchanging cash at the airport, traders are exchanging currencies digitally to make profits from price movements.
The forex market is:
- The largest financial market in the world (over $7 trillion traded daily)
- Open 24 hours a day, 5 days a week (Monday to Friday)
- Decentralized, meaning there's no single "forex building"—it happens online across the globe
How Do Currency Pairs Work?
In forex, you never trade just one currency alone. You always trade pairs—one currency against another.
EUR = Euro (the base currency)
USD = US Dollar (the quote currency)
When you see EUR/USD at a price of 1.0500, it means:
1 Euro = 1.05 US Dollars
If you buy EUR/USD, you're betting that the Euro will go up in value compared to the Dollar.
If you sell EUR/USD, you're betting that the Euro will go down in value compared to the Dollar.
Understanding Base and Quote Currency
Let's break this down with a simple analogy:
Imagine you're at a store buying apples. The price tag says:
Here, apple is the base (the thing you're buying), and ₱50 is the quote (the price you pay).
In forex:
- EUR/USD = 1.0500 means 1 Euro costs $1.05
- GBP/USD = 1.2700 means 1 British Pound costs $1.27
- USD/JPY = 150.00 means 1 US Dollar costs 150 Japanese Yen
The first currency in the pair is always the one you're "buying or selling." The second currency is what you're using to measure the price.
What is a Pip?
A pip is short for "percentage in point"—it's the smallest price movement in most currency pairs.
For most pairs (like EUR/USD, GBP/USD):
- A pip is the 4th decimal place
- EUR/USD moves from 1.0500 to 1.0501 = 1 pip move
For Japanese Yen pairs (like USD/JPY, GBP/JPY):
- A pip is the 2nd decimal place (because Yen values are much larger)
- USD/JPY moves from 150.00 to 150.01 = 1 pip move
Why does this matter?
Because in forex, profits and losses are measured in pips. If you hear a trader say, "I made 30 pips today," it means the price moved 30 small steps in their favor.
You buy EUR/USD at 1.0500 and sell at 1.0530.
The price moved 30 pips (from 1.0500 to 1.0530)
If your trade size was set correctly, those 30 pips = profit (we'll learn sizing in later chapters)
Part 2: Understanding the Crypto Market
What is Cryptocurrency?
Cryptocurrency (or crypto) is digital money that exists only online. Unlike pesos or dollars, there are no physical coins or bills. Crypto uses blockchain technology to record transactions securely.
Popular cryptocurrencies include:
- Bitcoin (BTC) – the first and most well-known crypto
- Ethereum (ETH) – the second largest, used for smart contracts
- Binance Coin (BNB), Ripple (XRP), Cardano (ADA), and many others
How is Crypto Different from Forex?
| Forex | Crypto |
|---|---|
| Trades currencies like USD, EUR, JPY | Trades digital coins like BTC, ETH, BNB |
| Open 24/5 (Mon–Fri) | Open 24/7 (every single day) |
| More stable price movements | Very volatile—prices swing fast |
| Regulated by central banks | Decentralized (no single controller) |
| Traded through brokers | Traded on crypto exchanges |
Volatile means prices can move up or down very quickly. Bitcoin might jump 5% in one hour, or drop 8% in a day. This creates opportunities—but also higher risk. That's why we'll focus heavily on risk management throughout this course.
Understanding Crypto Pairs
Just like forex, crypto is traded in pairs:
- BTC/USD = Bitcoin priced in US Dollars
- BTC/USDT = Bitcoin priced in Tether (a stablecoin, always worth about $1)
- ETH/BTC = Ethereum priced in Bitcoin
Why is USDT used so often?
USDT (Tether) is a stablecoin—a cryptocurrency designed to stay stable at $1. Many exchanges use USDT instead of real dollars because it's faster and cheaper to move around in the crypto world.
For learning purposes, BTC/USD and BTC/USDT are almost the same. If Bitcoin is at $95,000 in both, the price action will look identical.
Tokens, Altcoins, and Major Coins
- Bitcoin (BTC) is often called "the king" of crypto
- Altcoins = "Alternative coins" (anything that's not Bitcoin)
- Major coins = BTC, ETH, BNB—the largest, most traded cryptos
- Tokens = Coins built on other blockchains (like Ethereum tokens)
Stick with major coins. They have more reliable price action and better liquidity (easier to buy and sell).
Part 3: Setting Up TradingView (Your Free Trading Platform)
What is TradingView?
TradingView is a free, browser-based platform where you can:
- View live price charts for forex, crypto, stocks, gold, and more
- Add technical indicators (tools that help you analyze price movement)
- Practice trading with fake money (Paper Trading)
- Save your charts and settings
You do NOT need to deposit money to use TradingView. It's free for learning and practicing.
Step-by-Step: Creating Your TradingView Account
Go to the Website
Open your browser and go to: www.tradingview.com
Sign Up for Free
Click "Get Started" or "Sign Up" in the top-right corner
You can sign up with:
- Your email address
- Google account
- Facebook account
- Apple ID
Choose the Free Plan
TradingView will ask if you want to upgrade. Click "Maybe Later" or "Continue with Free."
The free version has everything you need to learn
Verify Your Email
Check your email inbox for a verification link from TradingView
Click the link to activate your account
Open the Supercharts Platform
Once logged in, click "Chart" at the top of the page
You'll see a big price chart appear—this is your workspace!
Navigating the TradingView Interface
When you open TradingView's chart, here's what you'll see:
Top Bar:
- Search box (find any asset: EUR/USD, BTC/USD, Gold, etc.)
- Timeframe selector (1 minute, 5 minutes, 1 hour, 1 day, etc.)
- Indicators button (where you'll add tools like RSI, MACD)
Left Sidebar:
- Drawing tools (trendlines, rectangles, arrows)
- Watchlist (your saved list of assets to watch)
Right Sidebar:
- News and social feed (you can collapse this to focus on the chart)
Bottom Panel:
- Paper Trading panel (we'll activate this next)
Chart Area (center):
- This is where you'll see candlesticks, price movement, and indicators
Part 4: Activating Paper Trading (Practice with Fake Money)
What is Paper Trading?
Paper Trading means practicing trades with fake money in a real market environment. The prices are real and live, but your money is not. If you make a mistake, you lose fake money—not your savings.
This is the BEST way to learn trading without risk.
How to Turn On Paper Trading in TradingView
Open the Trading Panel
At the bottom of your chart, click "Trading Panel"
Select "Paper Trading"
You'll see a dropdown menu that says "Paper Trading"
Click it to activate
Set Your Starting Balance
TradingView gives you $100,000 in fake money to start
You can reset this anytime if you run out
Start Practicing
You can now place fake buy and sell orders
Track your wins and losses without risking real money
Even though it's fake money, treat it like real money. Practice good habits now, and they'll carry over when you're ready for real trading.
Part 5: Philippines Safety Guidelines (2025 CASP Rules)
Why Platform Safety Matters
In 2025, the Philippine Securities and Exchange Commission (SEC) introduced new rules called CASP (Crypto Asset Service Provider) regulations. These rules require all crypto exchanges and platforms operating in the Philippines to register with the SEC.
Why does this matter to you?
Because if you use an unregistered or scam platform, you could:
- Lose all your money with no way to recover it
- Face legal issues
- Have no government protection
How to Check if a Platform is Safe
Visit the SEC Website
Go to: www.sec.gov.ph
Look for the list of registered CASP providers
Verify the Platform
Check if the platform you want to use is on the approved list
If it's NOT on the list, do not use it
Look for Red Flags
Avoid platforms that:
- Promise "guaranteed returns" or "get rich quick"
- Have no physical office or customer support
- Pressure you to deposit money immediately
- Offer "exclusive insider signals"
Use Well-Known Platforms for Practice
For learning and demo trading, stick with:
- TradingView (for charts and paper trading—no deposits needed)
- MetaTrader 4 or 5 (MT4/MT5) with a regulated broker (for forex practice)
When you're ready to trade real money, only use SEC-registered platforms.
Scammers target beginners with promises like:
- "Turn ₱5,000 into ₱50,000 in one week!"
- "Join our VIP group for secret signals!"
- "We'll trade for you and guarantee profits!"
Real trading doesn't work like that. Trading takes time, practice, and discipline. Anyone promising easy money is lying.
Practice & Reflection
- Go to www.tradingview.com
- Create your free account
- Open the Chart and activate Paper Trading
- Set your starting balance to $100,000 (fake money)
- Search for EUR/USD, GBP/USD, and USD/JPY
- Look at the current price
- Identify the base and quote currency for each
- Write down one thing you notice about each chart
- Search for BTC/USD and ETH/USD
- Compare how fast crypto prices move vs. forex
- Notice the difference in volatility
- What's the biggest difference you noticed between forex and crypto?
- Why is it important to practice with paper trading before using real money?
- Can you name two red flags of a scam trading platform?