FX Beginner Guide

Basic knowledge of FX trading starting with ChartLite

FX (Foreign Exchange Margin Trading) is the world's largest financial market. This guide explains everything from FX trading basics to effective analysis methods using ChartLite in an easy-to-understand way for beginners.

What is FX

FX (Foreign Exchange) is foreign exchange margin trading, an investment method where you buy and sell different currencies to make profits. For example, you trade using fluctuations in the exchange rate between US dollars and Japanese yen (USD/JPY).

The FX market allows 24-hour trading and is a huge market where investors from around the world participate. In Japan, even individual investors can start with small amounts, and efficient investment is possible by utilizing leverage.

Major Currency Pairs

In FX trading, you select currency pairs to trade. Here are the major currency pairs recommended for beginners:

USD/JPY (US Dollar/Japanese Yen) - Most traded, recommended for beginners. Relatively stable price movements
EUR/USD (Euro/US Dollar) - Most traded currency pair in the world. High liquidity with narrow spreads
GBP/JPY (British Pound/Japanese Yen) - Large price movements, for advanced traders. Also called "widow maker"
AUD/JPY (Australian Dollar/Japanese Yen) - Popular as resource currency. Also suitable for swap trading utilizing interest rate differentials

How to Read Charts

Candlestick Charts

Candlesticks are a Japanese-originated chart display method that shows price movements over a certain period in one bar:

Open - Price at the beginning of the period
Close - Price at the end of the period
High - Highest price during the period
Low - Lowest price during the period

Types of Timeframes

Timeframes are used differently depending on the analysis period:

5-minute, 15-minute charts - For short-term trading (scalping)
1-hour, 4-hour charts - For day trading
Daily, weekly charts - For medium to long-term analysis

Risk Management

The most important thing in FX trading is risk management. By following these principles, you can achieve stable long-term trading:

Trade with surplus funds - Never use funds necessary for living
Decide stop-loss levels in advance - Execute stop-losses mechanically without being swayed by emotions
Use moderate leverage - Beginners should start with 2-3x leverage
Avoid emotional trading - Trade with calm judgment
Thorough money management - Don't risk more than 2-3% of total funds in one trade

How to Use ChartLite

ChartLite is a lightweight and easy-to-use FX chart tool. Here are effective ways to use it:

Multi-timeframe analysis - Check big trends on daily charts, look for entry points on hourly charts
Price alert function - Set alerts at important support/resistance levels
Multiple currency pair monitoring - Use tab function to observe multiple currency pairs simultaneously
Always-on display mode - Use old tablets as dedicated monitors to never miss market changes

Learn More

For those who want to learn more about currency pair characteristics or have questions about using ChartLite, please also see:

Currency Pair Detailed Guide Frequently Asked Questions

Let's Start Now

Start FX analysis with ChartLite and make effective investments. First, check the USD/JPY chart.

Open Chart