Online Forex Brokers - A fantastic Idea for Novice Traders
by kelly Price
Will you make money at currency trading? This is a question most traders try and answer by trading a demo account - but the problem with demo accounts is there is no pressure, i.e no money on the line and it proves nothing.
Most traders who make money with demo account lose when they open an account with a forex broker. Now there is a fantastic way for traders to see if they have what it takes. There is a new account called a protected account and it acts as a bridge between a demo and a full trading account. The concept is:
The Protected Account works as a funded demo account in which the client pre-determines their risk level. Among its features are:
-Trade up to 100 times your initial deposit, even with a negative balance.
- Make as many trades as desired, 24 hours a day, using any currency pair.
- At the end of the a set period, (normally two weeks) any positive balance is the clients to keep the broker covers the losses. This has significant advantages over a demo account, as it simulates the feeling of trading real money on the Foreign Exchange and let's face it when money is on the line we feel and act differently.
Trading is probably 20&% method and 89% mindset and it's a fact that most traders fail because they don't trade with discipline.
To make money you not only need a method but you need the discipline to follow your method when the going gets tough. Its easy to score a penalty goal in your back garden but not so easy when its a huge game and you have to score to win and have 100,000 people watching you!
The Protected Account acts as a bridge between a demo account and a real one, providing an authentic trading experience, but of course the risk is managed and a huge advantage is - even if you go debit on the first day you can still keep trading so you get plenty of trades and plenty of practice.
These accounts are being now provided by forex brokers and they are a fantastic way to get your feet wet, before progressing to a full trading account and will help you determine if you have what it takes to become a successful forex trader.
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Online Forex Brokers - A fantastic Idea for Novice Traders
Monday, March 30, 2009 forex brokers, Forex Trader, Online Forex Brokers
Forex Day Trading - Scalping Your Way To a Fortune
Forex Day Trading, Forex Scalping Systems, Forex Trading courses, Forex Trading Elite, forex trading programs, Scalping
Forex Day Trading - Scalping Your Way To a Fortune
by kelly Price
Today there are more forex day trading and scalping systems available online than ever before. It's the dream of many traders to buy one and day trade for a living and make an income by scalping regular profits and here we will look at this in more detail.
Well the theory, says regular profits - the reality is different and is:
All forex day traders and scalpers always lose.
The systems that you see on the net make big claims and track records that look great - but the track records are never real - there simulated.
This is a disclaimer you will see (or similar) read it carefully:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Any forex day trading system you see will be simulated and of course anyone can make a profit in hindsight - but in reality we have to trade not knowing the closing price in advance.
So why don't you ever find a forex day trading system with a real track record?
Quite simply - because forex day trading or scalping doesn't work.
The reason for this is all volatility in daily time periods is random, support and resistance levels are meaningless and prices can and do go anywhere in a day.
You can't get the odds on your side and you can't win - Period.
The proof of course is in the track record and you will never ever see a day trading or scalping system with a real one - try and find one and if you do let me know, I have been looking for 25 years!
HOW TO WIN
If You want to win at forex trading then you are going to need to look at longer time periods, you have a choice:
Forex trading following looking for trends that last for weeks or month or forex swing trading which looks for trends that last for a few days to around a week.
The one you choose is up to you but both allow you to get the odds on your side because they use data over longer periods.
If you want to win leave forex scalping to the dreamers, naive or greedy traders and concentrate on ways to get the odds in your favor and enjoy currency trading success.
by kelly Price
Today there are more forex day trading and scalping systems available online than ever before. It's the dream of many traders to buy one and day trade for a living and make an income by scalping regular profits and here we will look at this in more detail.
Well the theory, says regular profits - the reality is different and is:
All forex day traders and scalpers always lose.
The systems that you see on the net make big claims and track records that look great - but the track records are never real - there simulated.
This is a disclaimer you will see (or similar) read it carefully:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Any forex day trading system you see will be simulated and of course anyone can make a profit in hindsight - but in reality we have to trade not knowing the closing price in advance.
So why don't you ever find a forex day trading system with a real track record?
Quite simply - because forex day trading or scalping doesn't work.
The reason for this is all volatility in daily time periods is random, support and resistance levels are meaningless and prices can and do go anywhere in a day.
You can't get the odds on your side and you can't win - Period.
The proof of course is in the track record and you will never ever see a day trading or scalping system with a real one - try and find one and if you do let me know, I have been looking for 25 years!
HOW TO WIN
If You want to win at forex trading then you are going to need to look at longer time periods, you have a choice:
Forex trading following looking for trends that last for weeks or month or forex swing trading which looks for trends that last for a few days to around a week.
The one you choose is up to you but both allow you to get the odds on your side because they use data over longer periods.
If you want to win leave forex scalping to the dreamers, naive or greedy traders and concentrate on ways to get the odds in your favor and enjoy currency trading success.
Who are the Major Players in the Forex Market?
Forex Day Trading, forex market, Forex Trading Strategies, Forex Trading Strategy, Major Players
Who are the Major Players in the Forex Market?
by Joon Trader
In Forex Trading, it is important that a newbie knows who are participating in the Forex arena. Below-mentioned are the major players in this market.
Central Banks and Governments- Monetary Policies such as Interest Rate that are implemented by central banks or governments can play a major and critical role in the Forex market. Central banks provide financial stability by controlling a country's money supply.
Banks- A major portion of the Forex market turnover is from banks. Large banks literally trade billion and billion of currency every working day. This could be in the form of hedging or speculative purposes.
Hedge Funds- By now, you should know that the Forex market has high liquidity, hence it is a major attraction for trading. Hedge Fund managers have increasingly allocated big portions of their portfolios to speculate on the Forex market. Another advantage is a higher degree of leverage available to them as compared to the stock or equity market.
Large Multinational Corporation (MNCs)- The reason why Forex market is in existence is due primarily to global trade. With the highly interrelated global market place, goods are imported or exported to many countries. Payment for these goods and services may be made and received in different currencies. Billion and billions of dollars are exchanges every day for global trade transaction.
Retail Investors and Speculators- In reality, there isn't much difference between the two. Both are in the market hoping to make money by exploiting the movement of a currency pair. Each has their reason to believe why a currency will move up or down and in turn long or short a currency accordingly. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform.
You and Me- When we have our holiday aboard or travelling overseas on business trips, we would naturally need to buy that country's currency and upon return, revert back to our own nation's currency. When we are using our credit cards to make overseas purchases, our credit card company has to convert our purchases into out home currency in order to bill us. Not knowingly, we are already trading currencies.
JoonTrader is the owner of forexdiscover. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
by Joon Trader
In Forex Trading, it is important that a newbie knows who are participating in the Forex arena. Below-mentioned are the major players in this market.
Central Banks and Governments- Monetary Policies such as Interest Rate that are implemented by central banks or governments can play a major and critical role in the Forex market. Central banks provide financial stability by controlling a country's money supply.
Banks- A major portion of the Forex market turnover is from banks. Large banks literally trade billion and billion of currency every working day. This could be in the form of hedging or speculative purposes.
Hedge Funds- By now, you should know that the Forex market has high liquidity, hence it is a major attraction for trading. Hedge Fund managers have increasingly allocated big portions of their portfolios to speculate on the Forex market. Another advantage is a higher degree of leverage available to them as compared to the stock or equity market.
Large Multinational Corporation (MNCs)- The reason why Forex market is in existence is due primarily to global trade. With the highly interrelated global market place, goods are imported or exported to many countries. Payment for these goods and services may be made and received in different currencies. Billion and billions of dollars are exchanges every day for global trade transaction.
Retail Investors and Speculators- In reality, there isn't much difference between the two. Both are in the market hoping to make money by exploiting the movement of a currency pair. Each has their reason to believe why a currency will move up or down and in turn long or short a currency accordingly. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform.
You and Me- When we have our holiday aboard or travelling overseas on business trips, we would naturally need to buy that country's currency and upon return, revert back to our own nation's currency. When we are using our credit cards to make overseas purchases, our credit card company has to convert our purchases into out home currency in order to bill us. Not knowingly, we are already trading currencies.
JoonTrader is the owner of forexdiscover. For further recommended resources on how to make money in Forex Trading. Click here to grab the secret to consistent pips.
7 Reasons Why FOREX Trading Is Better Than Stock Trading Or Futures Trading
Forex Killer Strategy, forex trading, forex trading course, Huge Gains, Internet Forex Trading, make Money Fast
7 Reasons Why FOREX Trading Is Better Than Stock Trading Or Futures Trading
by Yusoff Allian
1. Trade 24 hours a day! With the possible exception of a few hours on the weekend, the FOREX market is open around the clock. Compare that to the stock market and the futures market which usually opens at 9:30am and closes at 4pm EST in North America. Due to the global nature of the FOREX market you're able to trade at your convenience, day or night.
2. No commissions. Tired of paying upwards of $30 per trade for a simple stock transaction? You don't have to worry about that when trading on the FOREX market. Your FOREX broker makes their money by taking the difference in price between the ask price and bid price for the currency being traded. This means no money out of your pocket.
3. Instant order fulfillment. A common complaint (and sad fact of life) when it comes to trading on the stock or futures market is that there is often a delay between when you place your order and when it actually gets filled. This can mean the difference between making a bundle and making nothing at all. Due to the incredibly high volume of transactions that occur daily on the FOREX market you can fill your orders instantly based on the real-time data you see on your trading platform. There can be occasions when the market is particularly volatile which can result in some minor delays, but for the most part you get what you see is what you pay for.
4. No middlemen. Unlike equity exchanges, FOREX traders can access the market maker directly without having to go through an intermediary first. This means that a FOREX trader can buy or sell directly from the entity that decides on the price for a given currency pair. Because an extra layer of communication has been eliminated, FOREX traders benefit from cheaper costs and gain quicker access to trades.
5. No unfair influence. We've all seen it on T.V. or read about it on the news - talking heads telling us to buy when a stock's price is plummeting, assuring us that everything will be alright in the end. The truth is that the only one that wins is the firm issuing that so-called advice while the average investor is left to lick his wounds. The FOREX market cannot be influenced by any one brokerage or person as it is representative of a country's economic health and not opinion, and is therefore immune to any attempt at influence.
6. No choice overload. There are over 8000 stock available to trade on the NASDAQ and NYSE alone - that's an awful lot of news to keep up with on a daily basis, and an awful lot of analysis to perform before you begin your next trade. Compare that to the FOREX market which, although it gives you access to dozens of different currencies, tends to focus on the four major currency pairs. This drastically reduces your research time and allows you to enter the market far more quickly.
7. Limited risk. FOREX traders must enable margin limits to mitigate risk. The trading platform of your choice will automatically issue a margin call if the margin amount required by your account exceeds the actual capital available in your account. What this means is that the most you can possibly lose is the money you have sitting in your FOREX trading account. With futures trading it is possible for a margin call to occur at a loss, leaving you liable for any amount not available in your account.
by Yusoff Allian
1. Trade 24 hours a day! With the possible exception of a few hours on the weekend, the FOREX market is open around the clock. Compare that to the stock market and the futures market which usually opens at 9:30am and closes at 4pm EST in North America. Due to the global nature of the FOREX market you're able to trade at your convenience, day or night.
2. No commissions. Tired of paying upwards of $30 per trade for a simple stock transaction? You don't have to worry about that when trading on the FOREX market. Your FOREX broker makes their money by taking the difference in price between the ask price and bid price for the currency being traded. This means no money out of your pocket.
3. Instant order fulfillment. A common complaint (and sad fact of life) when it comes to trading on the stock or futures market is that there is often a delay between when you place your order and when it actually gets filled. This can mean the difference between making a bundle and making nothing at all. Due to the incredibly high volume of transactions that occur daily on the FOREX market you can fill your orders instantly based on the real-time data you see on your trading platform. There can be occasions when the market is particularly volatile which can result in some minor delays, but for the most part you get what you see is what you pay for.
4. No middlemen. Unlike equity exchanges, FOREX traders can access the market maker directly without having to go through an intermediary first. This means that a FOREX trader can buy or sell directly from the entity that decides on the price for a given currency pair. Because an extra layer of communication has been eliminated, FOREX traders benefit from cheaper costs and gain quicker access to trades.
5. No unfair influence. We've all seen it on T.V. or read about it on the news - talking heads telling us to buy when a stock's price is plummeting, assuring us that everything will be alright in the end. The truth is that the only one that wins is the firm issuing that so-called advice while the average investor is left to lick his wounds. The FOREX market cannot be influenced by any one brokerage or person as it is representative of a country's economic health and not opinion, and is therefore immune to any attempt at influence.
6. No choice overload. There are over 8000 stock available to trade on the NASDAQ and NYSE alone - that's an awful lot of news to keep up with on a daily basis, and an awful lot of analysis to perform before you begin your next trade. Compare that to the FOREX market which, although it gives you access to dozens of different currencies, tends to focus on the four major currency pairs. This drastically reduces your research time and allows you to enter the market far more quickly.
7. Limited risk. FOREX traders must enable margin limits to mitigate risk. The trading platform of your choice will automatically issue a margin call if the margin amount required by your account exceeds the actual capital available in your account. What this means is that the most you can possibly lose is the money you have sitting in your FOREX trading account. With futures trading it is possible for a margin call to occur at a loss, leaving you liable for any amount not available in your account.
Create Your Own FOREX Trading System In 5 Easy Steps
FOREX Charts, Forex Currency Trading Online, FOREX Money Management, Forex Scalping, FOREX trading account, Forex Trading System
Create Your Own FOREX Trading System In 5 Easy Steps
by Yusoff Allian
A quick search on your favorite internet search engine for the phrase "FOREX trading system" will yield thousands of results, all of which will try to convince you that theirs is the only sure-fire profit making system available. The truth of the matter is that yes, some or most can make you money, but you don't need to pay someone else to teach you something that's really pretty simple to create for yourself. At its core your FOREX trading system needs to be able to spot trends early and also be able to avoid sharp rises or falls due to a particularly volatile market. At first glance this may seem like a difficult thing to accomplish and to be honest no FOREX trading system will perform both functions flawlessly 100% of the time. However, what we can do is design a trading system that works for the vast majority of the time - this is what we'll focus on when designing our own FOREX trading system. So, what elements do we need to consider for our custom system? The most important criteria are as follows:
1. What kind of trader are you? Do you like to follow long trends, or are you glued to your charts for 8 hours straight per day? If you're new to FOREX trading it's suggested that you stick to long term trading as it's far easier to spot trends and cut your losses when compared to day trading.
2. Find an indicator you're comfortable with. Knowing when to buy is key to generating big profits, so it's important to understand some of the key indicators and how they can identify trends. Moving averages are probably the easiest indicators to work with and can be very useful in recognizing emerging trends. A common tactic is to use two moving averages, one slow and one fast, and wait for the fast average to pass above or below the slow average. This is commonly known as the moving average crossover technique. As with everything else in our FOREX trading system it's simple, easy to understand, and effective.
3. Risk Management. Successful FOREX traders understand that you *will* lose money at some point or another, no matter how effective your FOREX trading system is. You will always want to use a stop-loss on all your trades, but the amount risked will vary from person to person based on their experience and available capital. Knowing where to set your stop loss can be tricky - you want to limit how much you could possibly lose so you'd be tempted to set a very small range, but at the same time you want to allow for short term rises and falls so that you don't exit your position too early.
4. Know when to get out. Knowing when to exit a trade can be just as tricky as knowing when to enter, but for your custom FOREX trading system you want to pick one way that you're comfortable with and just stick with it. One simple technique is called the 'trailing stop' technique, and all this entails is updating your stop loss as your position increases in value. Another popular method used in many FOREX trading systems is to set a target and get out when that target is reached. This can be based on support or resistance, or simply based on a certain number of pips. Find a method you're comfortable with and stick with it.
5. Test your FOREX trading system. So you now have a trading system that tells you when to enter and exit a trade, so see how it performs using real data. Find historical data for a currency you've thought about trading, and analyze the charts. Apply your FOREX trading system to the data you see in the charts and write down the results. Was the system effective? Would you have turned a profit or a loss? Try your trading system on several different charts and record the results. If you've got a winning system then it's time to move onto live data via a demo account. Practice makes perfect and you don't want to risk real money until you're confident your FOREX trading system can provide you with decent profits over time.
by Yusoff Allian
A quick search on your favorite internet search engine for the phrase "FOREX trading system" will yield thousands of results, all of which will try to convince you that theirs is the only sure-fire profit making system available. The truth of the matter is that yes, some or most can make you money, but you don't need to pay someone else to teach you something that's really pretty simple to create for yourself. At its core your FOREX trading system needs to be able to spot trends early and also be able to avoid sharp rises or falls due to a particularly volatile market. At first glance this may seem like a difficult thing to accomplish and to be honest no FOREX trading system will perform both functions flawlessly 100% of the time. However, what we can do is design a trading system that works for the vast majority of the time - this is what we'll focus on when designing our own FOREX trading system. So, what elements do we need to consider for our custom system? The most important criteria are as follows:
1. What kind of trader are you? Do you like to follow long trends, or are you glued to your charts for 8 hours straight per day? If you're new to FOREX trading it's suggested that you stick to long term trading as it's far easier to spot trends and cut your losses when compared to day trading.
2. Find an indicator you're comfortable with. Knowing when to buy is key to generating big profits, so it's important to understand some of the key indicators and how they can identify trends. Moving averages are probably the easiest indicators to work with and can be very useful in recognizing emerging trends. A common tactic is to use two moving averages, one slow and one fast, and wait for the fast average to pass above or below the slow average. This is commonly known as the moving average crossover technique. As with everything else in our FOREX trading system it's simple, easy to understand, and effective.
3. Risk Management. Successful FOREX traders understand that you *will* lose money at some point or another, no matter how effective your FOREX trading system is. You will always want to use a stop-loss on all your trades, but the amount risked will vary from person to person based on their experience and available capital. Knowing where to set your stop loss can be tricky - you want to limit how much you could possibly lose so you'd be tempted to set a very small range, but at the same time you want to allow for short term rises and falls so that you don't exit your position too early.
4. Know when to get out. Knowing when to exit a trade can be just as tricky as knowing when to enter, but for your custom FOREX trading system you want to pick one way that you're comfortable with and just stick with it. One simple technique is called the 'trailing stop' technique, and all this entails is updating your stop loss as your position increases in value. Another popular method used in many FOREX trading systems is to set a target and get out when that target is reached. This can be based on support or resistance, or simply based on a certain number of pips. Find a method you're comfortable with and stick with it.
5. Test your FOREX trading system. So you now have a trading system that tells you when to enter and exit a trade, so see how it performs using real data. Find historical data for a currency you've thought about trading, and analyze the charts. Apply your FOREX trading system to the data you see in the charts and write down the results. Was the system effective? Would you have turned a profit or a loss? Try your trading system on several different charts and record the results. If you've got a winning system then it's time to move onto live data via a demo account. Practice makes perfect and you don't want to risk real money until you're confident your FOREX trading system can provide you with decent profits over time.
FOREX Leverage - Money Maker Or Bankroll Breaker?
Tuesday, March 24, 2009 Bankroll Breaker, FOREX Leverage
FOREX Leverage - Money Maker Or Bankroll Breaker?
by Yusoff Allian
FOREX traders conduct trades in one of three types of FOREX accounts - a standard account, a mini account, or a micro account. A micro account allows the FOREX trader to trade in the smallest of lot sizes, generally 1000 units of the base currency. The next step up is the mini account, which allows trades in lot sizes of 10,000 units of the base currency. The standard FOREX account allows trades in 100,000 units of the base currency, and is the level at which you'll find all professional FOREX traders.
The nice thing about having three levels of investment minimums is that it allows new FOREX investors to get their foot in the door without having large amounts of investment capital before they can get started. Micro accounts allow traders to deposit as little as $250, and due to the power of leverage, lets the FOREX trader control sums of currency many times larger than their investment capital.
Although FOREX leverage provides investors with a method of generating healthy profits it can also be responsible for the new FOREX investor losing his or her capital very quickly. The primary reason new FOREX traders fail is that they're undercapitalized for the type of account they've opened. Professional traders understand this, and this is why they make sure they have far more investment capital to deposit in their FOREX account than the required minimum.
Leverage's constant companion is the margin. Margin basically describes the amount of money in your account that you can use to conduct trades. The amount of usable margin you have to play with is dictated by the amount of equity you have in your account: take the equity in your account and subtract the amount of margin that you've used and you've got your usable margin.
If the equity in your account ever drops below the amount of used margin then a margin call is generated. A margin call is when the broker cashes in enough of your position to cover the drop in equity. As an example imagine that you have $10,000 in your account, giving you $10,000 in usable margin. You buy $7000 worth of lots, giving you $3000 remaining in usable margin. If the value of your investment drops just a few pips (which can easily occur in a matter of hours or minutes in some cases) your equity can drop from $10,000 to $7000 quite quickly. At this point the margin call is triggered and you lose $3000 to cover your margin. Before you know what has happened you've lost 30% of your investment capital.
The power of FOREX leverage can be seen in the above example. The ability to control $100,000 worth of currency with $1000 can catapult the savvy FOREX investor into the next tax bracket, but only if they manage their margins wisely.
The FOREX market can be a very volatile place, and those that don't understand the concept of margins will quickly fall victim to it. Those that understand this reality are far better equipped to succeed in the FOREX market than those who jump in unprepared.
by Yusoff Allian
FOREX traders conduct trades in one of three types of FOREX accounts - a standard account, a mini account, or a micro account. A micro account allows the FOREX trader to trade in the smallest of lot sizes, generally 1000 units of the base currency. The next step up is the mini account, which allows trades in lot sizes of 10,000 units of the base currency. The standard FOREX account allows trades in 100,000 units of the base currency, and is the level at which you'll find all professional FOREX traders.
The nice thing about having three levels of investment minimums is that it allows new FOREX investors to get their foot in the door without having large amounts of investment capital before they can get started. Micro accounts allow traders to deposit as little as $250, and due to the power of leverage, lets the FOREX trader control sums of currency many times larger than their investment capital.
Although FOREX leverage provides investors with a method of generating healthy profits it can also be responsible for the new FOREX investor losing his or her capital very quickly. The primary reason new FOREX traders fail is that they're undercapitalized for the type of account they've opened. Professional traders understand this, and this is why they make sure they have far more investment capital to deposit in their FOREX account than the required minimum.
Leverage's constant companion is the margin. Margin basically describes the amount of money in your account that you can use to conduct trades. The amount of usable margin you have to play with is dictated by the amount of equity you have in your account: take the equity in your account and subtract the amount of margin that you've used and you've got your usable margin.
If the equity in your account ever drops below the amount of used margin then a margin call is generated. A margin call is when the broker cashes in enough of your position to cover the drop in equity. As an example imagine that you have $10,000 in your account, giving you $10,000 in usable margin. You buy $7000 worth of lots, giving you $3000 remaining in usable margin. If the value of your investment drops just a few pips (which can easily occur in a matter of hours or minutes in some cases) your equity can drop from $10,000 to $7000 quite quickly. At this point the margin call is triggered and you lose $3000 to cover your margin. Before you know what has happened you've lost 30% of your investment capital.
The power of FOREX leverage can be seen in the above example. The ability to control $100,000 worth of currency with $1000 can catapult the savvy FOREX investor into the next tax bracket, but only if they manage their margins wisely.
The FOREX market can be a very volatile place, and those that don't understand the concept of margins will quickly fall victim to it. Those that understand this reality are far better equipped to succeed in the FOREX market than those who jump in unprepared.
FOREX Money Management - The Key To Long Term Profits
forex experience, Forex Information, FOREX Money Management, Forex Quote, Forex Scalping
FOREX Money Management - The Key To Long Term Profits
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
by Yusoff Allian
Although it can be tempting to whip out your credit card and take advantage of a strong upward trend in your favorite currency, failure to manage your money properly will leave you broke faster than you can say "sell, sell, SELL!!"
FOREX trading, just like any other form of investment, is not a guaranteed money maker 100% of the time. Professional investors know this, and they know that some of their trades *will* lose money. The reason they're still successful is that they plan for these losses accordingly so that in the long term they remain profitable.
Consider this example: a new trader finds a FOREX trading system that proves 75% successful, definitely a system to hold on to. What this means is that out of every 100 trades, 75 will generate a profit. The problem lies in not knowing which of the trades will be successful and which will cause a loss. What if the first 25 trades executed with this system generate losses, while the next 75 generate profit? If the trader has not practiced money management wisely he may have lost his entire investment capital on those first 25 trades.
The more aggressive FOREX trader will no doubt claim that the only way to big profits in a short period of time is to risk more of your capital, but in essence all he is doing is gambling. Indeed, an aggressive FOREX trader may get lucky and hit ten profitable trades in a row generating a very nice profit, but what happens if the next 19 trades all generate losses? If he's still wagering large sums of money on each trade he'll soon be back to where he started from, or more likely in an even worse predicament.
A disciplined FOREX trader will only risk a smaller percentage of his or her investment capital on each trade. Sure, the profits will be smaller in the short term compared to a more aggressive trader, but when the downturn hits (and it most definitely will), the FOREX trader practicing wise money management will be able to weather the storm far better than the aggressive trader.
It may not be the most exciting of strategies, but you're not in the FOREX trading business for thrills, you're in it to generate consistent profits. Using anything other than wise money management when investing in the FOREX market is simply gambling, and if you want to gamble then you're better off at the casino. Even professional poker players, widely labeled as gamblers by spectators, employ money management systems. They realize that they can't possibly win every single tournament they enter, so instead of risking their entire bankroll on one game they risk only a percentage at each one. This allows them to recover far more quickly when their losing streaks hit. Those that don't practice money management quickly find themselves playing Crazy Eights instead.
In conclusion, don't let the promise of quick riches cloud your judgment. FOREX trading is not a get-rich-quick scheme; it's an investment vehicle that can provide healthy profits for those who manage their money wisely. Remember, slow and steady wins the race.
FOREX Trading For Absolute Beginners
Absolute Beginners, FOREX news, forex trading
FOREX Trading For Absolute Beginners
by Yusoff Allian
The FOREX market, or Foreign Exchange market, is the largest financial market in the world, with roughly two trillion dollars worth of transactions taking place daily. The source of all this activity is the buying and selling of money - specifically the currencies of countries from around the world. To give you an idea of just how popular FOREX trading is, the volume traded daily on the FOREX market is three times that of the stock market and futures market combined!
Until recently only traders with huge amounts of capital available could participate in FOREX trading -minimum requirements upwards of $10 million were required before you were allowed to trade, so naturally the little guy was shut out completely. With the coming of the internet, however, opportunities arose for FOREX trading firms to offer accounts to everyday traders with limited start-up funds.
So what exactly would you be trading on the FOREX market? As mentioned above, the simple answer is money, but it's a little more complicated than that. If you look at a FOREX quote you'll notice that the currencies are quoted in pairs. What this means is that you're actually buying one currency while selling another currency at the same time. For example, you will see quotes for the U.S. dollar and the Euro listed as USD/EUR, or the Japanese Yen and the Canadian dollar as JPY/CAD.
One of the chief advantages to FOREX trading is the ability to trade 24 hours a day, and almost seven days per week. Because there is no physical exchange, transactions occur electronically every second around the world. And due to the huge volume of transactions that take place every day there is never a worry about filling your order or selling your currency - there's always someone willing to sell to you or buy from you, no matter what time of day it is.
Another advantage of FOREX trading is the ability to leverage your investment funds. What this means is that you can control large amounts of money with relatively small amounts of actual cash. FOREX brokers typically offer a 200:1 leverage ratio, meaning you can control $20,000 worth of currency with $100 worth of capital. Used wisely, leverage can catapult the average FOREX trader into the next level of FOREX trading. Keep in mind, however, that although leverage can provide the FOREX trader with the ability to trade in levels unreachable in other areas of investing, rushing in without enough knowledge can cause you to quickly lose your investment capital.
So how do you best prepare for profitable FOREX trading? Fortunately, most FOREX brokers offer demo accounts along with FOREX news, reports, and up-to-date charts. Patience is most definitely a virtue when it comes to FOREX trading, and taking the time to practice trades and learn how to read FOREX charts effectively can make the difference between huge profits and losing it all. The information is out there, and in most cases it's free, so read until you become confident enough to turn your practice trades into real FOREX trades.
by Yusoff Allian
The FOREX market, or Foreign Exchange market, is the largest financial market in the world, with roughly two trillion dollars worth of transactions taking place daily. The source of all this activity is the buying and selling of money - specifically the currencies of countries from around the world. To give you an idea of just how popular FOREX trading is, the volume traded daily on the FOREX market is three times that of the stock market and futures market combined!
Until recently only traders with huge amounts of capital available could participate in FOREX trading -minimum requirements upwards of $10 million were required before you were allowed to trade, so naturally the little guy was shut out completely. With the coming of the internet, however, opportunities arose for FOREX trading firms to offer accounts to everyday traders with limited start-up funds.
So what exactly would you be trading on the FOREX market? As mentioned above, the simple answer is money, but it's a little more complicated than that. If you look at a FOREX quote you'll notice that the currencies are quoted in pairs. What this means is that you're actually buying one currency while selling another currency at the same time. For example, you will see quotes for the U.S. dollar and the Euro listed as USD/EUR, or the Japanese Yen and the Canadian dollar as JPY/CAD.
One of the chief advantages to FOREX trading is the ability to trade 24 hours a day, and almost seven days per week. Because there is no physical exchange, transactions occur electronically every second around the world. And due to the huge volume of transactions that take place every day there is never a worry about filling your order or selling your currency - there's always someone willing to sell to you or buy from you, no matter what time of day it is.
Another advantage of FOREX trading is the ability to leverage your investment funds. What this means is that you can control large amounts of money with relatively small amounts of actual cash. FOREX brokers typically offer a 200:1 leverage ratio, meaning you can control $20,000 worth of currency with $100 worth of capital. Used wisely, leverage can catapult the average FOREX trader into the next level of FOREX trading. Keep in mind, however, that although leverage can provide the FOREX trader with the ability to trade in levels unreachable in other areas of investing, rushing in without enough knowledge can cause you to quickly lose your investment capital.
So how do you best prepare for profitable FOREX trading? Fortunately, most FOREX brokers offer demo accounts along with FOREX news, reports, and up-to-date charts. Patience is most definitely a virtue when it comes to FOREX trading, and taking the time to practice trades and learn how to read FOREX charts effectively can make the difference between huge profits and losing it all. The information is out there, and in most cases it's free, so read until you become confident enough to turn your practice trades into real FOREX trades.
FOREX Trading Signals - Are They Worth It?
Forex Traders, Forex Traders Guide, forex trading market, Forex Trading Signals
FOREX Trading Signals - Are They Worth It?
by Yusoff Allian
Someone new to FOREX trading may be tempted by the promise of easy profits made by companies that offer FOREX trading signals as a paid service. Indeed there are signal providers out there that do consistently provide decent profits over the long term, but the vast majority of FOREX signal providers are unable to live up to their promises. A new FOREX trader is much better served by learning how to identify entry and exit points themselves, but if they do choose to employ the services of a FOREX trading signal provider there are a few points they should be aware of before handing over their hard earned money.
Keep in mind that FOREX signal providers can charge anywhere from $50 per month to $500 per month, so you'll want to be sure that you get your money's worth. The mere fact that providers are charging money for their signals is usually enough for most professional traders to avoid their services - the thinking being that if their signals were any good they'd be keeping them to themselves and making a bundle from trading alone.
Still, as mentioned above, there are some good signal providers out there so you want to be able to determine the honest providers from the less reputable ones. An easy way to shorten your list of candidates is to focus only on the FOREX signal providers that offer you a free trial. Any provider worth their salt will allow you to try their signals out for a month without any financial obligation. While you're trying out their free service take a look at their past results - have they been consistently profitable over the long term? Any legitimate FOREX signal provider will not hesitate to show you their past results.
Let's assume at this point that you've found a FOREX signal provider that has given you a free month trial, shown positive results in the past, and offers their services at a reasonable monthly rate. Take advantage of their demo account (any broker you use should offer free demo accounts that let you use real data with fake money) and apply their signals to your fake trades. How is it performing? Are the entry and exit signals yielding generally positive results? No signal will ever be 100% accurate, so what you're looking for is a positive result over the long term. Try the signals out for the month and if you're consistently seeing profits then you've likely found yourself a winner.
It's important to realize that although you can pay others to send you FOREX trading signals you'll be much more profitable in the long run if you understand the concepts yourself. Take the time during your free month trial to fine tune your trading strategy and focus on building up your trading discipline.
by Yusoff Allian
Someone new to FOREX trading may be tempted by the promise of easy profits made by companies that offer FOREX trading signals as a paid service. Indeed there are signal providers out there that do consistently provide decent profits over the long term, but the vast majority of FOREX signal providers are unable to live up to their promises. A new FOREX trader is much better served by learning how to identify entry and exit points themselves, but if they do choose to employ the services of a FOREX trading signal provider there are a few points they should be aware of before handing over their hard earned money.
Keep in mind that FOREX signal providers can charge anywhere from $50 per month to $500 per month, so you'll want to be sure that you get your money's worth. The mere fact that providers are charging money for their signals is usually enough for most professional traders to avoid their services - the thinking being that if their signals were any good they'd be keeping them to themselves and making a bundle from trading alone.
Still, as mentioned above, there are some good signal providers out there so you want to be able to determine the honest providers from the less reputable ones. An easy way to shorten your list of candidates is to focus only on the FOREX signal providers that offer you a free trial. Any provider worth their salt will allow you to try their signals out for a month without any financial obligation. While you're trying out their free service take a look at their past results - have they been consistently profitable over the long term? Any legitimate FOREX signal provider will not hesitate to show you their past results.
Let's assume at this point that you've found a FOREX signal provider that has given you a free month trial, shown positive results in the past, and offers their services at a reasonable monthly rate. Take advantage of their demo account (any broker you use should offer free demo accounts that let you use real data with fake money) and apply their signals to your fake trades. How is it performing? Are the entry and exit signals yielding generally positive results? No signal will ever be 100% accurate, so what you're looking for is a positive result over the long term. Try the signals out for the month and if you're consistently seeing profits then you've likely found yourself a winner.
It's important to realize that although you can pay others to send you FOREX trading signals you'll be much more profitable in the long run if you understand the concepts yourself. Take the time during your free month trial to fine tune your trading strategy and focus on building up your trading discipline.
FOREX Trading Software Reviews
Forex Killer, FOREX Trading Software, Reviews
FOREX Trading Software Reviews
by Yusoff Allian
Success in FOREX trading is all about timing - knowing when to get in and when to get out can make the difference between huge profits or heartbreaking losses. There are many companies offering their services as signal providers, and for a modest monthly fee they'll send you real-time signals (even via your cell phone) letting you know when to buy or sell a currency pair.
Ideally you'd like to be able to identify trends by yourself without having to rely on a signal provider, but this will take time to master. By all means begin your education in recognizing trends and in-depth technical analysis, but in the meantime you can make use of some personal FOREX trading software to aid you in your FOREX trades.
As mentioned above, there are plenty of signal providers out there, but finding a reputable one can be a tricky task and can cost several hundred dollars per month. Fortunately there's an alternative - FOREX trading software that you can download and run on your home computer. There are two pieces of software out there right now that are quite popular and offer excellent FOREX signal notification, so no matter if you're a short term trader, swing trader, or long term trader one of these FOREX software programs should be part of your trading arsenal.
FOREX Killer is a FOREX trading software program designed to run on Windows. FOREX Killer can take data from any FOREX broker that can export historical data in a .csv format. Once imported into the program, FOREX Killer allows the user to select a time frame and currency pair. Enter your desired stop loss and take-profit level and start the calculation. FOREX Killer generates two sets of signals, short term and long term, and lets you know whether you should buy or sell based on current market prices. This particular FOREX software program supports most of the common currency pairs, as well as gold, stocks, and futures.
The next FOREX software program to consider is called Prophet1 Expert Advisor. This program bases its signals on two popular indicators, moving averages and MACD's. This allows the user to make use of this software for day trading purposes, but it's certainly not limited to that time frame. Based on back-testing this FOREX software program boasts an admirable 90% win rate, and this is using its default settings. As with FOREX Killer, alerts can be sent via email or to your cell phone.
No matter what software you end up using, don't rely on it solely to make you money. It can be a powerful tool to help you succeed in FOREX trading, but it's very important that you take the time to educate yourself on the inner workings of FOREX technical analysis. It can seem daunting at first, but once you understand how signals are generated you'll be in a much better position to adapt to the ever-changing world that is the FOREX marketplace.
by Yusoff Allian
Success in FOREX trading is all about timing - knowing when to get in and when to get out can make the difference between huge profits or heartbreaking losses. There are many companies offering their services as signal providers, and for a modest monthly fee they'll send you real-time signals (even via your cell phone) letting you know when to buy or sell a currency pair.
Ideally you'd like to be able to identify trends by yourself without having to rely on a signal provider, but this will take time to master. By all means begin your education in recognizing trends and in-depth technical analysis, but in the meantime you can make use of some personal FOREX trading software to aid you in your FOREX trades.
As mentioned above, there are plenty of signal providers out there, but finding a reputable one can be a tricky task and can cost several hundred dollars per month. Fortunately there's an alternative - FOREX trading software that you can download and run on your home computer. There are two pieces of software out there right now that are quite popular and offer excellent FOREX signal notification, so no matter if you're a short term trader, swing trader, or long term trader one of these FOREX software programs should be part of your trading arsenal.
FOREX Killer is a FOREX trading software program designed to run on Windows. FOREX Killer can take data from any FOREX broker that can export historical data in a .csv format. Once imported into the program, FOREX Killer allows the user to select a time frame and currency pair. Enter your desired stop loss and take-profit level and start the calculation. FOREX Killer generates two sets of signals, short term and long term, and lets you know whether you should buy or sell based on current market prices. This particular FOREX software program supports most of the common currency pairs, as well as gold, stocks, and futures.
The next FOREX software program to consider is called Prophet1 Expert Advisor. This program bases its signals on two popular indicators, moving averages and MACD's. This allows the user to make use of this software for day trading purposes, but it's certainly not limited to that time frame. Based on back-testing this FOREX software program boasts an admirable 90% win rate, and this is using its default settings. As with FOREX Killer, alerts can be sent via email or to your cell phone.
No matter what software you end up using, don't rely on it solely to make you money. It can be a powerful tool to help you succeed in FOREX trading, but it's very important that you take the time to educate yourself on the inner workings of FOREX technical analysis. It can seem daunting at first, but once you understand how signals are generated you'll be in a much better position to adapt to the ever-changing world that is the FOREX marketplace.
How To Choose The Best FOREX Broker For You
Thursday, March 19, 2009 FOREX Broker, Forex Killer, Forex Killer Strategy, forex market
How To Choose The Best FOREX Broker For You
by Yusoff Allian
Until recently it was a fairly simple process to figure out which FOREX broker was best for you as there were only a handful available. With the rise of the internet and the explosive growth of FOREX trading, the number of FOREX brokers has skyrocketed. It may seem overwhelming given the sheer number of FOREX brokers available to you, but by carrying out some simple research and doing your due diligence you will be able to pick a FOREX broker that's right for you.
It might be a good idea at this point to back up a bit and understand what a FOREX broker actually does. Basically, a FOREX broker is a person or group of people that carry out trades for an investor. The nice thing about using a FOREX broker is that they don't charge any commission per trade like you see with the stock market. Instead, FOREX brokers make their money by taking the difference between the bid price and the ask price of the currency. Be wary of brokers that take too much of that spread as their fee as it can affect your profit margin. Ideally you want a FOREX broker that charges 2-3 pip spreads, and definitely avoid any that charge anything higher than 5-pip spreads.
Probably the most important factor to look for when choosing a FOREX broker is whether or not they're regulated. Any U.S. based FOREX broker should be registered with the Commodity Futures Trading Commission (CFTC) and should also be a member of the National Futures Association (NFA).
You can visit the NFA's website at http://www.nfa.futures.org/basicnet and look up any FOREX broker you're interested in. Make sure you deal with a broker that has a clean record and has solid company financials. Any FOREX brokers that don't meet either of these criteria should be stricken off your list of candidates!
Customer service is an absolute must when deciding on a FOREX broker. The FOREX market never sleeps, meaning you can trade any time of the day or night. It's very important that any FOREX broker you choose have customer support staff that can be reached at any time, and provide assistance on very short notice. Take note of any positive testimonials on their site that reference the speed and reliability of their customer service, but also visit search engines and try to find other sources that may have written about their experiences with customer service. Good customer service can make a huge difference in your online experience with FOREX brokers, so it pays to do your research.
Find a FOREX broker that offers a trading platform you're comfortable with. The vast majority of brokers offer both web-based applications and downloadable applications. The web-based platform allows you to connect from any computer in the world that has internet access, but can be slower than its downloadable counterpart. The latter has speed on its side, but can only be run from the computer it's installed on. Whichever you choose, make sure the platform offers at least the basics, such as real-time quotes and up-to-date account information.
The criteria listed above are the essentials to choosing the right FOREX broker for you. Other services offered by the broker can be considered icing on the cake, but depending on your situation may also be viewed as critical to your decision making process. Some other factors you may want to consider are the minimum account opening deposit, timely execution of your orders and free charts and analysis.
by Yusoff Allian
Until recently it was a fairly simple process to figure out which FOREX broker was best for you as there were only a handful available. With the rise of the internet and the explosive growth of FOREX trading, the number of FOREX brokers has skyrocketed. It may seem overwhelming given the sheer number of FOREX brokers available to you, but by carrying out some simple research and doing your due diligence you will be able to pick a FOREX broker that's right for you.
It might be a good idea at this point to back up a bit and understand what a FOREX broker actually does. Basically, a FOREX broker is a person or group of people that carry out trades for an investor. The nice thing about using a FOREX broker is that they don't charge any commission per trade like you see with the stock market. Instead, FOREX brokers make their money by taking the difference between the bid price and the ask price of the currency. Be wary of brokers that take too much of that spread as their fee as it can affect your profit margin. Ideally you want a FOREX broker that charges 2-3 pip spreads, and definitely avoid any that charge anything higher than 5-pip spreads.
Probably the most important factor to look for when choosing a FOREX broker is whether or not they're regulated. Any U.S. based FOREX broker should be registered with the Commodity Futures Trading Commission (CFTC) and should also be a member of the National Futures Association (NFA).
You can visit the NFA's website at http://www.nfa.futures.org/basicnet and look up any FOREX broker you're interested in. Make sure you deal with a broker that has a clean record and has solid company financials. Any FOREX brokers that don't meet either of these criteria should be stricken off your list of candidates!
Customer service is an absolute must when deciding on a FOREX broker. The FOREX market never sleeps, meaning you can trade any time of the day or night. It's very important that any FOREX broker you choose have customer support staff that can be reached at any time, and provide assistance on very short notice. Take note of any positive testimonials on their site that reference the speed and reliability of their customer service, but also visit search engines and try to find other sources that may have written about their experiences with customer service. Good customer service can make a huge difference in your online experience with FOREX brokers, so it pays to do your research.
Find a FOREX broker that offers a trading platform you're comfortable with. The vast majority of brokers offer both web-based applications and downloadable applications. The web-based platform allows you to connect from any computer in the world that has internet access, but can be slower than its downloadable counterpart. The latter has speed on its side, but can only be run from the computer it's installed on. Whichever you choose, make sure the platform offers at least the basics, such as real-time quotes and up-to-date account information.
The criteria listed above are the essentials to choosing the right FOREX broker for you. Other services offered by the broker can be considered icing on the cake, but depending on your situation may also be viewed as critical to your decision making process. Some other factors you may want to consider are the minimum account opening deposit, timely execution of your orders and free charts and analysis.
The 3 Most Profitable FOREX Charts
Currency Trading Course, FOReign EXchange, FOREX Charts, forex online trading, Forex Traders Guide
The 3 Most Profitable FOREX Charts
by Yusoff Allian
A basic understanding of technical analysis can propel the novice FOREX trader from a micro account to the big leagues in record time, and it really isn't that difficult to master once you comprehend the basics. At first glance all these charts and acronyms can seem daunting and can quickly scare the average novice trader away, but it's really not as complicated as it looks. Let's take a look at the three most popular FOREX charts out there right now.
The Line Chart.
This is the kind of chart that even non-traders are familiar with. It plots closing prices from one day to the next and connects the two points with a line, forming a jagged line with peaks and valleys from left to right. The general trend of a currency pair is very easy to identify as the price will either trend up, down, or remain relatively stagnant.
The Bar Chart.
The bar chart is a glorified line chart that not only shows the closing price, but also shows the opening price that day and also the high and low that the currency pair reached that day. Picture a vertical line, with the top point of the line representing the high price traded that day, and the bottom of the line indicating the low price traded that day. Each vertical line also has a horizontal line on the left side that indicates the opening price that day, and a horizontal line on the right side that represents the closing price that day. This FOREX chart is particularly useful as it's easy to identify the long term trend of a currency pair while also seeing what kind of daily variation it typically experiences.
You'll often see bar charts referred to as "OHLC" charts - Open, High, Low, and Close, for the reasons explained above.
The Candlestick Chart.
Candlestick charts are probably the most popular type of FOREX chart used by professional FOREX traders. It combines the best elements of the line chart and bar chart and adds its own unique twist. A candlestick has a vertical line, just like the bar chart, but instead of having horizontal lines on either side that represent the open and close prices it has a rectangular box in the middle of the vertical line. The inside of this box is typically white if the price closed higher than it opened, and black if the price closed lower than it opened, although you'll see various color schemes used from site to site.
Candlestick charts don't contain any extra information than a bar chart, but visually they're much easier to understand at a quick glance. You'll find that you'll be able to identify trends much quicker and recognize market reversals much easier than if you were using a bar chart.
As candlestick charts tend to be the most popular of the FOREX charts you'll find that there tends to be a lot more information available online about them, including information on candlestick patterns. These patterns have been tweaked many times over and are very handy in identifying emerging trends in a currency or stock, and it's highly recommended that you familiarize yourself with some of the more well known candlestick patterns if you want to realize some serious profits in FOREX trading.
by Yusoff Allian
A basic understanding of technical analysis can propel the novice FOREX trader from a micro account to the big leagues in record time, and it really isn't that difficult to master once you comprehend the basics. At first glance all these charts and acronyms can seem daunting and can quickly scare the average novice trader away, but it's really not as complicated as it looks. Let's take a look at the three most popular FOREX charts out there right now.
The Line Chart.
This is the kind of chart that even non-traders are familiar with. It plots closing prices from one day to the next and connects the two points with a line, forming a jagged line with peaks and valleys from left to right. The general trend of a currency pair is very easy to identify as the price will either trend up, down, or remain relatively stagnant.
The Bar Chart.
The bar chart is a glorified line chart that not only shows the closing price, but also shows the opening price that day and also the high and low that the currency pair reached that day. Picture a vertical line, with the top point of the line representing the high price traded that day, and the bottom of the line indicating the low price traded that day. Each vertical line also has a horizontal line on the left side that indicates the opening price that day, and a horizontal line on the right side that represents the closing price that day. This FOREX chart is particularly useful as it's easy to identify the long term trend of a currency pair while also seeing what kind of daily variation it typically experiences.
You'll often see bar charts referred to as "OHLC" charts - Open, High, Low, and Close, for the reasons explained above.
The Candlestick Chart.
Candlestick charts are probably the most popular type of FOREX chart used by professional FOREX traders. It combines the best elements of the line chart and bar chart and adds its own unique twist. A candlestick has a vertical line, just like the bar chart, but instead of having horizontal lines on either side that represent the open and close prices it has a rectangular box in the middle of the vertical line. The inside of this box is typically white if the price closed higher than it opened, and black if the price closed lower than it opened, although you'll see various color schemes used from site to site.
Candlestick charts don't contain any extra information than a bar chart, but visually they're much easier to understand at a quick glance. You'll find that you'll be able to identify trends much quicker and recognize market reversals much easier than if you were using a bar chart.
As candlestick charts tend to be the most popular of the FOREX charts you'll find that there tends to be a lot more information available online about them, including information on candlestick patterns. These patterns have been tweaked many times over and are very handy in identifying emerging trends in a currency or stock, and it's highly recommended that you familiarize yourself with some of the more well known candlestick patterns if you want to realize some serious profits in FOREX trading.
Online FOREX Trading Tips For Big Profits
Forex Day Trading, Forex Education, forex experience, Online FOREX Trading
Online FOREX Trading Tips For Big Profits
by Yusoff Allian
Fortunes can be made (and lost) on the FOREX market, but patience and a little bit of common sense can help you succeed where almost everyone else fails. The simple FOREX trading tips outlined below will help get you on the path to big profits in the FOREX market while at the same time reducing your losses. And you *will* suffer losses - it's a fact of life in the FOREX market. What separates the successful FOREX investor from the burnout is the successful FOREX investor understands this and plans for it, while those that don't quickly lose their shirt.
FOREX Tip #1 - Start with at least $1000 ready to trade. Although you can open micro accounts for as little as $200 you really won't be able to weather any turbulence in the market with so little investment capital. Start your online FOREX trading career with a minimum of $1000 in a micro account, and once you've made $10,000 roll it into a mini account and see your profits really pick up.
FOREX Tip #2 - Use leverage wisely. The ability to control large sums of currency with small amounts of cash is one of the major advantages of FOREX trading, but if not used correctly you can quickly blow through all of your investment capital. Make smaller trades to start with, and keep enough cash in your account so that you can withstand the occasional margin call.
FOREXT Tip #3 - Use a winning FOREX trading system. Seems like a common sense thing to say, but jumping in and spending thousands of dollars on the first trading system you find online can leave you penniless and none the wiser. You're far better off creating your own system (it's really not that difficult) and applying it to your trades. You'll learn how to recognize trends, when to get in and exit, and you'll be able to understand why a trade works one day and why it didn't the next. Using this knowledge you can modify your FOREX trading system accordingly - if you had simply purchased a system online you'd be stuck with what they gave you.
FOREXT Tip #4 - Manage your risk. You make money on the FOREX market based on two events - when you buy and when you sell. Discipline is key when determining when to get out of a trade, so set up stop losses at reasonable positions in line with your trading system and *always* follow your system. There may be times you're tempted to get out early, but don't deviate from your system. If you set your stops wisely you'll manage your losses over the long run and end up turning a decent profit.
FOREXT Tip #5 - Practice, practice, practice! If you're just getting started in the FOREX trading world you may be seeing dollar signs dancing around your eyes, and yes it is possible to make some really nice profits by trading currencies. However, as with any kind of investing, if you jump in without really knowing what you're doing you'll quickly lose your money. Most online FOREX brokers offer demo accounts that let you trade with fake money using real data - take advantage of this and fine-tune your FOREX trading skills. Get comfortable with your trading system and work on your discipline, and only move up to real money trading when you're consistently making winning trades in your demo account.
by Yusoff Allian
Fortunes can be made (and lost) on the FOREX market, but patience and a little bit of common sense can help you succeed where almost everyone else fails. The simple FOREX trading tips outlined below will help get you on the path to big profits in the FOREX market while at the same time reducing your losses. And you *will* suffer losses - it's a fact of life in the FOREX market. What separates the successful FOREX investor from the burnout is the successful FOREX investor understands this and plans for it, while those that don't quickly lose their shirt.
FOREX Tip #1 - Start with at least $1000 ready to trade. Although you can open micro accounts for as little as $200 you really won't be able to weather any turbulence in the market with so little investment capital. Start your online FOREX trading career with a minimum of $1000 in a micro account, and once you've made $10,000 roll it into a mini account and see your profits really pick up.
FOREX Tip #2 - Use leverage wisely. The ability to control large sums of currency with small amounts of cash is one of the major advantages of FOREX trading, but if not used correctly you can quickly blow through all of your investment capital. Make smaller trades to start with, and keep enough cash in your account so that you can withstand the occasional margin call.
FOREXT Tip #3 - Use a winning FOREX trading system. Seems like a common sense thing to say, but jumping in and spending thousands of dollars on the first trading system you find online can leave you penniless and none the wiser. You're far better off creating your own system (it's really not that difficult) and applying it to your trades. You'll learn how to recognize trends, when to get in and exit, and you'll be able to understand why a trade works one day and why it didn't the next. Using this knowledge you can modify your FOREX trading system accordingly - if you had simply purchased a system online you'd be stuck with what they gave you.
FOREXT Tip #4 - Manage your risk. You make money on the FOREX market based on two events - when you buy and when you sell. Discipline is key when determining when to get out of a trade, so set up stop losses at reasonable positions in line with your trading system and *always* follow your system. There may be times you're tempted to get out early, but don't deviate from your system. If you set your stops wisely you'll manage your losses over the long run and end up turning a decent profit.
FOREXT Tip #5 - Practice, practice, practice! If you're just getting started in the FOREX trading world you may be seeing dollar signs dancing around your eyes, and yes it is possible to make some really nice profits by trading currencies. However, as with any kind of investing, if you jump in without really knowing what you're doing you'll quickly lose your money. Most online FOREX brokers offer demo accounts that let you trade with fake money using real data - take advantage of this and fine-tune your FOREX trading skills. Get comfortable with your trading system and work on your discipline, and only move up to real money trading when you're consistently making winning trades in your demo account.
Here's A Quick Way To Learn How To Trade The Forex
Quick Way, Trade The Forex
Here's A Quick Way To Learn How To Trade The Forex
by Leo Howland
Interested in becoming a Forex trader?
It is easy to start into the Forex market, using a demo account until you are satisfied with your level of understanding. This will let you test your skill without risking your money in a live transaction.
Before you can start you need to learn the basic terms. Forex is the buying and selling of the different world currencies. If you buy one currency and sell another, you have completed a Forex deal. The Forex market is very large, with an average transaction rate of almost $2 trillion traded daily.
The first step in learning how to trade the forex market is to understand the quotes. A Forex quote is listed as a pair of numbers. The first number is known as the base currency and has a unit value of 1. The second number of the quote is known as the counter currency reflects the value of the counter against the base currency. For example: USD/JPY 109.2 would indicate that one US dollar will buy 109.2 Japanese Yen at that moment in time. As the value of the currencies change the quotes will change to reflect the difference.
Another type of quote is obtained from a currency dealer. The dealer will use a two sided quote which consists of a "bid" and "ask" price. If the quote for EUR/USD is 1.2385/1.2390, this means that the "bid" or selling price of the base currency is 1.2385 while the "ask" or buy price is 1.239. This means you can buy one Euro dollar with 1.239 US dollars. You could also sell one Euro dollar for 1.2385 US dollars. These quotes are always in the currency dealers favor. trader is required to buy the currency at the higher price. The difference goes to the broker which replaces a commission charge to the broker's clients.
This simple explanation of Forex quotes is merely a beginning toward becoming a Forex trader. You can learn much more with on line study, books, and utilizing demo trading accounts to hone your skills.
by Leo Howland
Interested in becoming a Forex trader?
It is easy to start into the Forex market, using a demo account until you are satisfied with your level of understanding. This will let you test your skill without risking your money in a live transaction.
Before you can start you need to learn the basic terms. Forex is the buying and selling of the different world currencies. If you buy one currency and sell another, you have completed a Forex deal. The Forex market is very large, with an average transaction rate of almost $2 trillion traded daily.
The first step in learning how to trade the forex market is to understand the quotes. A Forex quote is listed as a pair of numbers. The first number is known as the base currency and has a unit value of 1. The second number of the quote is known as the counter currency reflects the value of the counter against the base currency. For example: USD/JPY 109.2 would indicate that one US dollar will buy 109.2 Japanese Yen at that moment in time. As the value of the currencies change the quotes will change to reflect the difference.
Another type of quote is obtained from a currency dealer. The dealer will use a two sided quote which consists of a "bid" and "ask" price. If the quote for EUR/USD is 1.2385/1.2390, this means that the "bid" or selling price of the base currency is 1.2385 while the "ask" or buy price is 1.239. This means you can buy one Euro dollar with 1.239 US dollars. You could also sell one Euro dollar for 1.2385 US dollars. These quotes are always in the currency dealers favor. trader is required to buy the currency at the higher price. The difference goes to the broker which replaces a commission charge to the broker's clients.
This simple explanation of Forex quotes is merely a beginning toward becoming a Forex trader. You can learn much more with on line study, books, and utilizing demo trading accounts to hone your skills.
Forex Education - 3 Vital Tips to make Money Fast In 2008
Forex Education, make Money Fast
Forex Education - 3 Vital Tips to make Money Fast In 2008
by kelly Price
As we turn into the New Year it's a good time to make changes and take action - if you are trader who is not doing well or a potential trader then these 2 tips will help you make money fast not just in 2008 but at anytime and they should be a cornerstone of your forex education.
The first point I want to make needs serious thought 95% of traders lose money not because they can't learn forex trading (anyone can) but because they believe certain myths and commonly accepted wisdoms that are wrong.
The tips below are not conventional but don't let that worry you the bulk of traders don't make money so being in the minority is good so here are your 3 tips
1. Be Patient Trade Less
Many traders think the more they trade the more they will win but this is simply not true in forex trading in fact the opposite is true - the more you trade the greater the chances are you will lose.
You don't get paid for the effort or amount of trades you make - you get paid for being RIGHT that's it. I know traders who trade every day and make nothing and others who trade a few times a year and make over 100% annualized gains!
The majority of novice traders believe the day trade and make money myth and that's all it is a myth. Day traders don't make money period.
If you don't believe me, try and find a real track record on a day trading system and you will be looking for ever. You have to catch the big high odds moves and they can ONLY be spotted by looking at longer term data and data within a day is meaningless.
If you like the buzz of trading you will lose - if you are patient and wait for high odds trades you will win.
2. Diversification
You will have heard it countless times diversify; don't put all your eggs in one basket etc. On a small account of $1,000 or less you don't have enough to diversify and make big gains at the same time.
All diversification does is dilute gains - wait for the big moves and load them up with as much as you can afford.
3. Take Bigger Risks
You will hear many give you the advice of only risking a maximum of 2% on a trade - well on 1,000.00 that's $20 you won't make much doing that!
Wait for the good trades and load them and risk up to 20% on a small account.
You can only diversify and risk less per trade if you have enough cash and that's $10,000 + if you don't you need to risk more - period!
4. Have Courage
Learn to accept big gains!
Hang on you may say all traders can do that because that's why their trading currencies.
They are - but they don't understand accepting a big gain is harder than taking a loss.
Why?
Because as soon as a trader sees a profit he wants to take it and the bigger it becomes the harder the temptation is to resist. As open equity swings keep eating his open profit it becomes too much and he snatches a mediocre or minor gain.
What happens next? The trade goes on to make 10,000 20,000 or more and he's not in.
If you want to make money you need to have courage and accept that open equity will eat into your profits and have confidence to hold for a bigger longer term gain.
If you want to make more money from your forex trading and you are starting off with a small account make the above part of your forex education and you will see your profits increase dramatically.
by kelly Price
As we turn into the New Year it's a good time to make changes and take action - if you are trader who is not doing well or a potential trader then these 2 tips will help you make money fast not just in 2008 but at anytime and they should be a cornerstone of your forex education.
The first point I want to make needs serious thought 95% of traders lose money not because they can't learn forex trading (anyone can) but because they believe certain myths and commonly accepted wisdoms that are wrong.
The tips below are not conventional but don't let that worry you the bulk of traders don't make money so being in the minority is good so here are your 3 tips
1. Be Patient Trade Less
Many traders think the more they trade the more they will win but this is simply not true in forex trading in fact the opposite is true - the more you trade the greater the chances are you will lose.
You don't get paid for the effort or amount of trades you make - you get paid for being RIGHT that's it. I know traders who trade every day and make nothing and others who trade a few times a year and make over 100% annualized gains!
The majority of novice traders believe the day trade and make money myth and that's all it is a myth. Day traders don't make money period.
If you don't believe me, try and find a real track record on a day trading system and you will be looking for ever. You have to catch the big high odds moves and they can ONLY be spotted by looking at longer term data and data within a day is meaningless.
If you like the buzz of trading you will lose - if you are patient and wait for high odds trades you will win.
2. Diversification
You will have heard it countless times diversify; don't put all your eggs in one basket etc. On a small account of $1,000 or less you don't have enough to diversify and make big gains at the same time.
All diversification does is dilute gains - wait for the big moves and load them up with as much as you can afford.
3. Take Bigger Risks
You will hear many give you the advice of only risking a maximum of 2% on a trade - well on 1,000.00 that's $20 you won't make much doing that!
Wait for the good trades and load them and risk up to 20% on a small account.
You can only diversify and risk less per trade if you have enough cash and that's $10,000 + if you don't you need to risk more - period!
4. Have Courage
Learn to accept big gains!
Hang on you may say all traders can do that because that's why their trading currencies.
They are - but they don't understand accepting a big gain is harder than taking a loss.
Why?
Because as soon as a trader sees a profit he wants to take it and the bigger it becomes the harder the temptation is to resist. As open equity swings keep eating his open profit it becomes too much and he snatches a mediocre or minor gain.
What happens next? The trade goes on to make 10,000 20,000 or more and he's not in.
If you want to make money you need to have courage and accept that open equity will eat into your profits and have confidence to hold for a bigger longer term gain.
If you want to make more money from your forex trading and you are starting off with a small account make the above part of your forex education and you will see your profits increase dramatically.
Forex Day Trading and Scalping - a Guaranteed Way to Lose Your Money Quickly
Monday, March 16, 2009 Forex Day Trading, Guaranteed Way, Money Quickly, Scalping
Forex Day Trading and Scalping - a Guaranteed Way to Lose Your Money Quickly
by kelly Price
I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money - it doesn't its simply the dumbest way to trade and will lose you your money. Let's examine why.
Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.
Support and resistance levels are meaningless, as volatility can and does move prices anywhere in a day session.
If you don't believe me lets look at the proof.
The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record - what do you get?
A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices). Here is the normal one you will see which is a CFTC standard one:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale.
Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time - maybe the don't stop to think or simply miss the disclaimers when they buy these systems.
You can if you want to prove me wrong try and find a track record ( that's real dollars and audited) I saw one day trading system show his bank balance of evidence of his success - success in selling day trading courses, NOT trading that's for sure!
So if you find one be sure to let me know. I have been looking for a day trader to prove me wrong for 25 years and I Haven't found a long term track record of profits and know I never will.
So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.
by kelly Price
I have been involved in trading forex for 25 years and still amazes me how many people think forex day trading or scalping makes money - it doesn't its simply the dumbest way to trade and will lose you your money. Let's examine why.
Countless millions of traders trade trillions of dollars each day and it is impossible to determine what this mass of people will do within such a short time span as a day or a few hours.
Support and resistance levels are meaningless, as volatility can and does move prices anywhere in a day session.
If you don't believe me lets look at the proof.
The first question you need to ask yourself is if forex day trading really did make money why is there no real track record of gains to show the success? There are thousands of day trading systems promising gains and none of them have a real track record - what do you get?
A lot of hype and a track record that is simulated (not traded for real) in hindsight (knowing the closing prices). Here is the normal one you will see which is a CFTC standard one:
"cftc rule 4.41 - hypothetical or simulated performance results have certain limitations. unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Put the above disclaimer on a track record and you can say anything you want and vendors do. They appeal to lazy or greedy traders and the trader buys and gets a guaranteed loss and the vendor makes a guaranteed profit from the sale.
Day trading is simply the dumbest way to trade and sensible knowledgeable people fall for it all the time - maybe the don't stop to think or simply miss the disclaimers when they buy these systems.
You can if you want to prove me wrong try and find a track record ( that's real dollars and audited) I saw one day trading system show his bank balance of evidence of his success - success in selling day trading courses, NOT trading that's for sure!
So if you find one be sure to let me know. I have been looking for a day trader to prove me wrong for 25 years and I Haven't found a long term track record of profits and know I never will.
So avoid day trading and pick another method that will help you gain currency trading success by trading the odds.
Advantages Of Forex Trading
Advantages, Beginner Forex Trading, Best Forex Brokers, forex trading
Advantages Of Forex Trading
by Joon Trader
Forex Trading has many advantages as compared to stock or equity trading. Due to the current uncertainty of the stock market, many stock or equity traders are now thinking to trade the Forex market. Their main question and concerned was why trade the Forex market? What are the advantages of the Forex market as compared to the stock market? In this article, I will go through some of the advantages of Forex Trading.
24 Hour Global Market - The Forex market is truly a 24 Hour Global Market opens from Monday to Friday. The Forex market starts each trading day from Sydney, Tokyo, London, and finally to New York. Regardless of whether it is in the day or night, there are always market participants actively trading the Forex market. Forex traders can respond very quickly to any currency fluctuations or breaking news immediately unlike the stock and future market. The ECN's (Electronic Communication Networks) in stock and future market are relatively new products derived as an after hours extension to the regular trading hours. Many of these ECN's have ill liquidity and there is no guarantee that a trade will be executed, or at a fair price. Usually, stock or future market traders would have to wait until the real market opens the next morning in order to execute a trade at fair value.
Liquidity - The Forex market is the largest and most liquid market in the world. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform. This tremendous turnover is more than all the world's stock markets combined on any given day. With a daily trading volume larger than all stock market combined, this will ensure price stability. With such liquidity, Forex Trader can open or close a position without much difficulty and most importantly, will receive a fair market price.
Opportunity to Make Money in Both Direction - There is no such thing as "bull" or "bear" market in Forex. In Forex, it is of no concern whether the economy is booming or in a recession. For stock trading, profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical - all things that go up must come down. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.
Simplicity - There are not many major currency pairs traded on the Forex market. Therefore, traders may have a better feel of price movement patterns and behavior. Where as in the stock market, there is literally thousands of stock to monitor and it is not easy to follow so many of them.
Small Trading Capital with High Profit Potential - Nowadays, the minimum amount needed to open a trading account is less than $300. Due to competition, some brokers may even accept much lesser amount. In Forex market, this small trading amount could potentially earn hundreds of dollars per week. In stock market, this may not be possible. Of course both market have potential to lose as well, but in the Forex market, traders can make good money with much lesser trading capital.
High Leverage of 100:1 - 100:1 leverage is commonly available from online Forex brokers. This is substantially exceeds the common 2:1 margin offered by equity brokers, and 15:1 in the futures market. Some brokers even offer higher leverage of 100:1. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. Leverage is a double-edged sword and necessitates the use of proper money management. Without proper risk management, this high degree of leverage cans also lead to big losses as well as gains.
Demo Account - Forex Trading has a unique feature called "Demo Account" or simulate account. This "Demo Account" allows the trader to trade using real-time price on the broker's trading platform with the exact interface and function as a real account. With this simulated account, Forex trader could gain real market experience in trading without risking any capital.
With Forex Trading unique advantages, its of little wonder that more and more retail investors are participating in the Forex market utilizing broker's electronic trading platform that are widely and easily available.
by Joon Trader
Forex Trading has many advantages as compared to stock or equity trading. Due to the current uncertainty of the stock market, many stock or equity traders are now thinking to trade the Forex market. Their main question and concerned was why trade the Forex market? What are the advantages of the Forex market as compared to the stock market? In this article, I will go through some of the advantages of Forex Trading.
24 Hour Global Market - The Forex market is truly a 24 Hour Global Market opens from Monday to Friday. The Forex market starts each trading day from Sydney, Tokyo, London, and finally to New York. Regardless of whether it is in the day or night, there are always market participants actively trading the Forex market. Forex traders can respond very quickly to any currency fluctuations or breaking news immediately unlike the stock and future market. The ECN's (Electronic Communication Networks) in stock and future market are relatively new products derived as an after hours extension to the regular trading hours. Many of these ECN's have ill liquidity and there is no guarantee that a trade will be executed, or at a fair price. Usually, stock or future market traders would have to wait until the real market opens the next morning in order to execute a trade at fair value.
Liquidity - The Forex market is the largest and most liquid market in the world. According to a survey conducted by the Bank for International Settlements (BIS) in April 2007, average daily trading volume for the Forex market reached an all-time record high of US$3.2 Trillion. A 71% increase from US$1.9 Trillion that was traded in April 2004. This increase is due mainly to the participation of retail investors utilizing broker's electronic trading platform. This tremendous turnover is more than all the world's stock markets combined on any given day. With a daily trading volume larger than all stock market combined, this will ensure price stability. With such liquidity, Forex Trader can open or close a position without much difficulty and most importantly, will receive a fair market price.
Opportunity to Make Money in Both Direction - There is no such thing as "bull" or "bear" market in Forex. In Forex, it is of no concern whether the economy is booming or in a recession. For stock trading, profits are usually made when the economy is booming. But we all know that the economic cycle is cyclical - all things that go up must come down. This is not the case in Forex market. Regardless of how major economies are performing, currency exchange rates are always fluctuating, and this in turn will provide trading opportunity for traders to gain profit.
Simplicity - There are not many major currency pairs traded on the Forex market. Therefore, traders may have a better feel of price movement patterns and behavior. Where as in the stock market, there is literally thousands of stock to monitor and it is not easy to follow so many of them.
Small Trading Capital with High Profit Potential - Nowadays, the minimum amount needed to open a trading account is less than $300. Due to competition, some brokers may even accept much lesser amount. In Forex market, this small trading amount could potentially earn hundreds of dollars per week. In stock market, this may not be possible. Of course both market have potential to lose as well, but in the Forex market, traders can make good money with much lesser trading capital.
High Leverage of 100:1 - 100:1 leverage is commonly available from online Forex brokers. This is substantially exceeds the common 2:1 margin offered by equity brokers, and 15:1 in the futures market. Some brokers even offer higher leverage of 100:1. However, it is important to remember that while this type of leverage allows investors to maximize their profit potential, the potential for loss is equally great. Leverage is a double-edged sword and necessitates the use of proper money management. Without proper risk management, this high degree of leverage cans also lead to big losses as well as gains.
Demo Account - Forex Trading has a unique feature called "Demo Account" or simulate account. This "Demo Account" allows the trader to trade using real-time price on the broker's trading platform with the exact interface and function as a real account. With this simulated account, Forex trader could gain real market experience in trading without risking any capital.
With Forex Trading unique advantages, its of little wonder that more and more retail investors are participating in the Forex market utilizing broker's electronic trading platform that are widely and easily available.
Forex Trading Strategy - Why If You Try and Predict Forex Prices You Will Lose
Forex Trading Strategy, Predict Forex Prices
Forex Trading Strategy - Why If You Try and Predict Forex Prices You Will Lose
by kelly Price
Many people try and base their forex trading strategy on predicting where forex prices will go but this is one of the biggest mistakes you can make in forex trading. You can win and enjoy currency trading success but you must not try and predict for the following reason.
Predicting the future is impossible and so is predicting forex prices and where they will go. Why? Because prediction is another word for hoping and guessing and you wont make money doing that in life - or with your forex trading system.
TRADE THE REALITY
The way to trade forex markets successfully is to trade the reality of price change and execute your trading signal in line with it an example will make this clearer.
Traders will often look at an area of support and want they want to buy low and get their marketing timing right at the bottom. As prices approach support they buy and hope and many occasions' prices keep going and go through support and hit their stop.
You don't know if support is going to hold so don't try and predict!
The best way to trade is to wait for support to hold and turn away from the level i.e it's been tested and has held.
How do you do this?
You need proof and the best way to do this is to look at momentum and use some momentum oscillators to indicate a trend change.
Good ones to use are:
The stochastic RSI, ADX, MACD etc
We dot have time to cover these indicators in detail here, ( simply look up our other articles) they will alert you to potential trend changes and let you enter the market when the odds are in your favour.
EXACT MARKET TIMING IS NOT POSSIBLE
You may say I Will miss the exact turn and yes you will but you couldn't predict that anyway so there is no point in trying. If you caught just 50% of every major move you would make a lot of money.
What you are doing is trading the reality and what you see on a forex chart and that's the way to get the odds in your favour.
TRADE THE BREAKOUT
If you want to know the best way of trading try trading breakouts.
It's a fact that most major moves start from new market highs NOT market lows and buying or selling new highs or lows will enable you to catch every trend.
Most traders want to get into these moves but don't, as there waiting for a pullback and a better price but it's a fact most of these major moves don't pullback - they accelerate away from the breakout.
If you learn to trade these moves, you're not predicting your trading the reality of a breakout and will be in on all major trends.
A MAJOR MISTAKE
Most traders get so obsessed with getting perfect market timing that they trade low odds set ups - They think buying just above support is low risk way of trading but they don't have the odds in their favour and lose. It's the same with breakouts - they think they have missed a move, wait for a pullback and never get in.
If they would have traded the reality of the break the odds would be on their side.
TRADE THE ODDS AND WIN
Any successful forex trading strategy should be based around trading the odds and that's why prediction is doomed to failure - it looks low risk on the face of it but is anything but.
If you trade the reality and confirm your moves with your forex trading strategy, your chances of success are greatly enhanced and you can make a lot of money. Try and predict and your predictions will be as accurate as your horoscope and you will join the 95% of losing traders.
by kelly Price
Many people try and base their forex trading strategy on predicting where forex prices will go but this is one of the biggest mistakes you can make in forex trading. You can win and enjoy currency trading success but you must not try and predict for the following reason.
Predicting the future is impossible and so is predicting forex prices and where they will go. Why? Because prediction is another word for hoping and guessing and you wont make money doing that in life - or with your forex trading system.
TRADE THE REALITY
The way to trade forex markets successfully is to trade the reality of price change and execute your trading signal in line with it an example will make this clearer.
Traders will often look at an area of support and want they want to buy low and get their marketing timing right at the bottom. As prices approach support they buy and hope and many occasions' prices keep going and go through support and hit their stop.
You don't know if support is going to hold so don't try and predict!
The best way to trade is to wait for support to hold and turn away from the level i.e it's been tested and has held.
How do you do this?
You need proof and the best way to do this is to look at momentum and use some momentum oscillators to indicate a trend change.
Good ones to use are:
The stochastic RSI, ADX, MACD etc
We dot have time to cover these indicators in detail here, ( simply look up our other articles) they will alert you to potential trend changes and let you enter the market when the odds are in your favour.
EXACT MARKET TIMING IS NOT POSSIBLE
You may say I Will miss the exact turn and yes you will but you couldn't predict that anyway so there is no point in trying. If you caught just 50% of every major move you would make a lot of money.
What you are doing is trading the reality and what you see on a forex chart and that's the way to get the odds in your favour.
TRADE THE BREAKOUT
If you want to know the best way of trading try trading breakouts.
It's a fact that most major moves start from new market highs NOT market lows and buying or selling new highs or lows will enable you to catch every trend.
Most traders want to get into these moves but don't, as there waiting for a pullback and a better price but it's a fact most of these major moves don't pullback - they accelerate away from the breakout.
If you learn to trade these moves, you're not predicting your trading the reality of a breakout and will be in on all major trends.
A MAJOR MISTAKE
Most traders get so obsessed with getting perfect market timing that they trade low odds set ups - They think buying just above support is low risk way of trading but they don't have the odds in their favour and lose. It's the same with breakouts - they think they have missed a move, wait for a pullback and never get in.
If they would have traded the reality of the break the odds would be on their side.
TRADE THE ODDS AND WIN
Any successful forex trading strategy should be based around trading the odds and that's why prediction is doomed to failure - it looks low risk on the face of it but is anything but.
If you trade the reality and confirm your moves with your forex trading strategy, your chances of success are greatly enhanced and you can make a lot of money. Try and predict and your predictions will be as accurate as your horoscope and you will join the 95% of losing traders.
Are You Ready To Trade The Forex Markets
Forex Markets
Are You Ready To Trade The Forex Markets
by John Spencer
At this time forex currency trading can be traded by anyone in your own time.The forex market is based on trading currencies with high volume.All these currencies are backed up by their governments using gold.
It is the backing of the leading financial institution that has made forex currency trading popular. With forex currency trading, you play your luck on the currency market based not only on supply and demand, but on cash. You invest money in the market, with the wish that the exchange rate of the currency you invest in ends in a profit.
Just like the stock market, the forex currency trading market has many variables that affect it. These variables change on a day to day basis and include the economic and political conditions in a country that has its currency on the forex market. This means that if there is a hit on the economy of the country on a day, there is sure to be a drop in its currency exchange rate. This in turn leads to a loss on your part.
Similarly, if there is an economical gain in the company through new routes or commodities involved in international trade, the cost of the currency exchange for their currency increases. This leaves you in a profit for your currency, than the previous day. And coincidently, inflation in the country proves to be profitable to you if you sell your currency at a high rate. This is because just like in the stock market, you have to buy low and sell high in the forex currency market.
Forex trading is usually done on a shorter timeframe.Because many things can happen in one day with the economy of a particular country that can cause panic and have an effect on the currency rate.A rumour can already be enough to make a move on the forex market to maximize profits or keep losses to a minimum.
This is the reason why success when investing in the currency exchange market lies in understanding and keeping up with the constant fluctuations of the currency market. With close monitoring on forex currency markets, you can realize when to change money to make the maximum profit in your currency market.
When you want to invest a large sum of money in to the currency market it's better to use an investment fund that trades currencies as they are more experienced at this and the change of making profits is much bigger.But if you feel comfortable doing it yourself after studying these markets you can always do it yourself using a currency broker.
Like other things in life, it is important that you find out as much as possible about the currency broker before actually seeking information from them. It is possible to choose a broker who has been involved in the currency market for quite some time now. If possible, find out something about their past clients and meet them to find out how much of a help the broker had been to them. The internet also offers you lots of information on the forex currency trading market. You can learn the fundamentals of forex currency here; however final advice for your investment should be sought from your foreign exchange broker. There are also many sites that help you start in your endeavors in forex currency trading so that you make as much money as possible with foreign currency.
by John Spencer
At this time forex currency trading can be traded by anyone in your own time.The forex market is based on trading currencies with high volume.All these currencies are backed up by their governments using gold.
It is the backing of the leading financial institution that has made forex currency trading popular. With forex currency trading, you play your luck on the currency market based not only on supply and demand, but on cash. You invest money in the market, with the wish that the exchange rate of the currency you invest in ends in a profit.
Just like the stock market, the forex currency trading market has many variables that affect it. These variables change on a day to day basis and include the economic and political conditions in a country that has its currency on the forex market. This means that if there is a hit on the economy of the country on a day, there is sure to be a drop in its currency exchange rate. This in turn leads to a loss on your part.
Similarly, if there is an economical gain in the company through new routes or commodities involved in international trade, the cost of the currency exchange for their currency increases. This leaves you in a profit for your currency, than the previous day. And coincidently, inflation in the country proves to be profitable to you if you sell your currency at a high rate. This is because just like in the stock market, you have to buy low and sell high in the forex currency market.
Forex trading is usually done on a shorter timeframe.Because many things can happen in one day with the economy of a particular country that can cause panic and have an effect on the currency rate.A rumour can already be enough to make a move on the forex market to maximize profits or keep losses to a minimum.
This is the reason why success when investing in the currency exchange market lies in understanding and keeping up with the constant fluctuations of the currency market. With close monitoring on forex currency markets, you can realize when to change money to make the maximum profit in your currency market.
When you want to invest a large sum of money in to the currency market it's better to use an investment fund that trades currencies as they are more experienced at this and the change of making profits is much bigger.But if you feel comfortable doing it yourself after studying these markets you can always do it yourself using a currency broker.
Like other things in life, it is important that you find out as much as possible about the currency broker before actually seeking information from them. It is possible to choose a broker who has been involved in the currency market for quite some time now. If possible, find out something about their past clients and meet them to find out how much of a help the broker had been to them. The internet also offers you lots of information on the forex currency trading market. You can learn the fundamentals of forex currency here; however final advice for your investment should be sought from your foreign exchange broker. There are also many sites that help you start in your endeavors in forex currency trading so that you make as much money as possible with foreign currency.
Forex Trading - Why Most Trader's Can Never Accept Huge Gains
Sunday, March 15, 2009 forex trading, Huge Gains
Forex Trading - Why Most Trader's Can Never Accept Huge Gains
by kelly Price
Most forex traders simply never make big returns because they cannot accept them. This may sound paradoxical as you would think most traders would want this and yes they do - but a psychological problem stops them from making the returns they deserve.
Traders have more problems accepting profits than taking losses.
Taking a loss is easy you place your stop and your taken out or not with a profit you don't have such clear cut levels to work with - in fact you have no levels at all as the trade could produce a minor profit of a few hundred dollars or a huge profit of $5,000, $10, $20,000 or more but:
When do you take profits?
This is the problem for most traders.
The dilemma is most traders have problems staying with a long term trend, as open equity swings eat into their open profit.
Here is a typical example of what happens.
When a trader gets a profit he gets excited, the bigger the profit becomes the more excited he gets and the more tempted he is to take it. All the time as the trend is moving volatility causes retracements and losses in open profit.
As the profit gets bigger and the swings against him more violent the more nervous he gets and in the end he moves his stop up or snatches the profit and banks it.
He then watches as the trend continues the way he thought and make a huge profit while he only has a minor profit despite getting the trend right.
So how do you cope psychologically with the above?
Here are some guidelines that will help you milk and maximize your profits from major trends.
1. Have Courage
You're after a big profit, so you know that if you believe the trade has further to go you need to accept short term price swings against you. Short term dips in equity, are a by product of making huge gains.
2. Risk = Reward
Do NOT Move your stop to quickly leave it in its original position and trail it up slowly, a big trend will sometimes show huge volatility as it develops and this means not getting clipped out early. Traders try so hard to avoid risk they actually create it by getting clipped out by putting their stop to close.
3. Trail Slowly
If you want to make money from the big trends you are going to have to trail your stop slowly and this means that at the end of the trend, you are going to give a big chunk back at the turn - this is unavoidable with long term trend following so get used top it. Comfort yourself with the knowledge that if you caught just 50% of every major trend you would be very rich.
The KEY
Is to have rock solid confidence in your forex trading strategy and accept that you will give back profit and lose open equity but acceptance of the above will make you a lot of money.
A lot of traders think that they actually don't deserve big gains and they should take what they can get but if you have the courage and conviction to hold a big trend you deserve every cent of it - because most traders are simply incapable of doing it.
Accepting big profits is not easy psychologically - but get the right mindset and a solid system and you could be catching the big trends that yield thousands or tens of thousands in profits, so get ready to accept them when they come your way!
by kelly Price
Most forex traders simply never make big returns because they cannot accept them. This may sound paradoxical as you would think most traders would want this and yes they do - but a psychological problem stops them from making the returns they deserve.
Traders have more problems accepting profits than taking losses.
Taking a loss is easy you place your stop and your taken out or not with a profit you don't have such clear cut levels to work with - in fact you have no levels at all as the trade could produce a minor profit of a few hundred dollars or a huge profit of $5,000, $10, $20,000 or more but:
When do you take profits?
This is the problem for most traders.
The dilemma is most traders have problems staying with a long term trend, as open equity swings eat into their open profit.
Here is a typical example of what happens.
When a trader gets a profit he gets excited, the bigger the profit becomes the more excited he gets and the more tempted he is to take it. All the time as the trend is moving volatility causes retracements and losses in open profit.
As the profit gets bigger and the swings against him more violent the more nervous he gets and in the end he moves his stop up or snatches the profit and banks it.
He then watches as the trend continues the way he thought and make a huge profit while he only has a minor profit despite getting the trend right.
So how do you cope psychologically with the above?
Here are some guidelines that will help you milk and maximize your profits from major trends.
1. Have Courage
You're after a big profit, so you know that if you believe the trade has further to go you need to accept short term price swings against you. Short term dips in equity, are a by product of making huge gains.
2. Risk = Reward
Do NOT Move your stop to quickly leave it in its original position and trail it up slowly, a big trend will sometimes show huge volatility as it develops and this means not getting clipped out early. Traders try so hard to avoid risk they actually create it by getting clipped out by putting their stop to close.
3. Trail Slowly
If you want to make money from the big trends you are going to have to trail your stop slowly and this means that at the end of the trend, you are going to give a big chunk back at the turn - this is unavoidable with long term trend following so get used top it. Comfort yourself with the knowledge that if you caught just 50% of every major trend you would be very rich.
The KEY
Is to have rock solid confidence in your forex trading strategy and accept that you will give back profit and lose open equity but acceptance of the above will make you a lot of money.
A lot of traders think that they actually don't deserve big gains and they should take what they can get but if you have the courage and conviction to hold a big trend you deserve every cent of it - because most traders are simply incapable of doing it.
Accepting big profits is not easy psychologically - but get the right mindset and a solid system and you could be catching the big trends that yield thousands or tens of thousands in profits, so get ready to accept them when they come your way!
Forex Day Trading - Why You Will Lose Your Money Fast
Forex Day Trading, Money Fast
Forex Day Trading - Why You Will Lose Your Money Fast
by kelly Price
Forex day trading is simply an odds on way to wipe yourself out despite this more novice forex traders try day trading than any other methodology. This article will show you the facts and why you are guaranteed to lose at day trading.
Before we look at the reasons why traders lose lets dispel the myth that vendors try and sell that their forex day trading systems can make you profits. There all over the net promising you huge gains and low risk and they come with a track record of supposed gains.
The track records are not real they are all simulated in hindsight KNOWING the closing prices and you will always see a disclaimer like the one below ( standard CFTC one ) or similar. Read it carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - vendors can make up any track record they like for their system and simulate anything they want. If course anyone can make profits in hindsight knowing the closing prices - but trading forex for real is a different ball game.
You don't know the closing prices and that makes trading a bit more difficult.
In hindsight you can prove anything and I would be a millionaire several times over if I knew tomorrow's closing price today and it's odd that normally sane logical people buy these systems and never question the facts behind them.
So why doesn't day trading make money?
Pure and simple - You have no valid data to help you calculate the odds.
You have millions of traders trading trillions of dollars and to say that you can measure what this huge diverse amount of opinions will do in a few hours or a day is ridiculous. Volatility can and does take prices anywhere in a day and support and resistance levels cannot be used to get the odds in your favor.
The myth of day trading is small regular profits - the reality is lots of losses and a few profits in between and the erosion of equity to zero.
If you don't believe me try and find a forex day trading system with a real time track record over the longer term and you will search but never find one. If you want to make money at forex don't day trade leave that to the greedy and naïve traders and concentrate on getting the odds in your favor - that means long term trend following or swing trading.
If you want to win at forex try the above and get the odds on your side.
by kelly Price
Forex day trading is simply an odds on way to wipe yourself out despite this more novice forex traders try day trading than any other methodology. This article will show you the facts and why you are guaranteed to lose at day trading.
Before we look at the reasons why traders lose lets dispel the myth that vendors try and sell that their forex day trading systems can make you profits. There all over the net promising you huge gains and low risk and they come with a track record of supposed gains.
The track records are not real they are all simulated in hindsight KNOWING the closing prices and you will always see a disclaimer like the one below ( standard CFTC one ) or similar. Read it carefully:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - vendors can make up any track record they like for their system and simulate anything they want. If course anyone can make profits in hindsight knowing the closing prices - but trading forex for real is a different ball game.
You don't know the closing prices and that makes trading a bit more difficult.
In hindsight you can prove anything and I would be a millionaire several times over if I knew tomorrow's closing price today and it's odd that normally sane logical people buy these systems and never question the facts behind them.
So why doesn't day trading make money?
Pure and simple - You have no valid data to help you calculate the odds.
You have millions of traders trading trillions of dollars and to say that you can measure what this huge diverse amount of opinions will do in a few hours or a day is ridiculous. Volatility can and does take prices anywhere in a day and support and resistance levels cannot be used to get the odds in your favor.
The myth of day trading is small regular profits - the reality is lots of losses and a few profits in between and the erosion of equity to zero.
If you don't believe me try and find a forex day trading system with a real time track record over the longer term and you will search but never find one. If you want to make money at forex don't day trade leave that to the greedy and naïve traders and concentrate on getting the odds in your favor - that means long term trend following or swing trading.
If you want to win at forex try the above and get the odds on your side.
Forex Trading - 3 Points Key Points for Novice Traders To Understand
forex trading, Novice Traders
Forex Trading - 3 Points Key Points for Novice Traders To Understand
by Monica Hendrix
If you want to succeed at forex trading then beware the odds are against you 955 of traders fail and lose their money. Before you consider trading consider the 3 points below before you try to trade.
1. Do You like Responsibility?
It's a fact that most traders fail because they don't - they think they can buy an e-book for $100 follow a simulated track record, do no work and get rich well, if you are one of these people you will lose and lose quickly.
Not everyone likes responsibility and there is nothing wrong with that - but if you don't the forex market is not for you.
Forex trading places unique demands upon you not only do you need a sound logical system, you also need to have confidence in it and the discipline to follow it and realize that success rests on you and you alone.
The only person who can make you rich or wealthy is you - no one else is going to make you rich.
The good news is if you like the idea of taking charge of your own destiny and having the opportunity to make a life changing income, then forex can give you that - if you do your homework.
2. Are You a Risk Taker?
You hear a lot about forex trading does not need to be risky - but it is by definition!
If you don't like the idea of taking calculated risks, then you will not make a good forex trader. Successful forex traders know that risk goes with reward and the bigger the risk you take the more you make. This doesn't mean you act in a rash manner - but you know that the bigger the risk the bigger the potential gain.
3. Do you have a cool head?
Trading forex markets is 20% method and 80% attitude - you need discipline and this is hard to achieve for most people. If you don't like acting on your own and against the crowd and your emotional - again don't trade forex it requires tremendous discipline to succeed.
THE REAL KEY TO FOREX SUCCESS
If you have all of the above then you could become a good forex trader and enjoy forex trading success - but now you have to understand the key point you need to make it into the elite 5% of winners
You need to know your trading edge and why it will help you win.
Most traders if you ask them don't know what their trading edge is and the bad news is if you don't know what it is - You don't have one and you are going to lose.
A trading edge is something in your forex trading strategy has that enables you to win, while 95% of traders lose.
It's specific to you; you have confidence in it and can trade your edge with discipline.
How do you get a trading edge?
You work it out for yourself by working smart - you can take it from others but you must understand it and have confidence in it - that then is your edge.
Going back to point 1 you have to take responsibility for developing it yourself.
As you need to follow it you need to have confidence in it - this comes from understanding and gives you the discipline to apply it.
With me so far?
Good - then you have the opportunity (if you work smart) to get a trading edge and apply it on one of the world's most exciting businesses for profits and end up in the minority of winners and have the opportunity to earn a life changing income.
by Monica Hendrix
If you want to succeed at forex trading then beware the odds are against you 955 of traders fail and lose their money. Before you consider trading consider the 3 points below before you try to trade.
1. Do You like Responsibility?
It's a fact that most traders fail because they don't - they think they can buy an e-book for $100 follow a simulated track record, do no work and get rich well, if you are one of these people you will lose and lose quickly.
Not everyone likes responsibility and there is nothing wrong with that - but if you don't the forex market is not for you.
Forex trading places unique demands upon you not only do you need a sound logical system, you also need to have confidence in it and the discipline to follow it and realize that success rests on you and you alone.
The only person who can make you rich or wealthy is you - no one else is going to make you rich.
The good news is if you like the idea of taking charge of your own destiny and having the opportunity to make a life changing income, then forex can give you that - if you do your homework.
2. Are You a Risk Taker?
You hear a lot about forex trading does not need to be risky - but it is by definition!
If you don't like the idea of taking calculated risks, then you will not make a good forex trader. Successful forex traders know that risk goes with reward and the bigger the risk you take the more you make. This doesn't mean you act in a rash manner - but you know that the bigger the risk the bigger the potential gain.
3. Do you have a cool head?
Trading forex markets is 20% method and 80% attitude - you need discipline and this is hard to achieve for most people. If you don't like acting on your own and against the crowd and your emotional - again don't trade forex it requires tremendous discipline to succeed.
THE REAL KEY TO FOREX SUCCESS
If you have all of the above then you could become a good forex trader and enjoy forex trading success - but now you have to understand the key point you need to make it into the elite 5% of winners
You need to know your trading edge and why it will help you win.
Most traders if you ask them don't know what their trading edge is and the bad news is if you don't know what it is - You don't have one and you are going to lose.
A trading edge is something in your forex trading strategy has that enables you to win, while 95% of traders lose.
It's specific to you; you have confidence in it and can trade your edge with discipline.
How do you get a trading edge?
You work it out for yourself by working smart - you can take it from others but you must understand it and have confidence in it - that then is your edge.
Going back to point 1 you have to take responsibility for developing it yourself.
As you need to follow it you need to have confidence in it - this comes from understanding and gives you the discipline to apply it.
With me so far?
Good - then you have the opportunity (if you work smart) to get a trading edge and apply it on one of the world's most exciting businesses for profits and end up in the minority of winners and have the opportunity to earn a life changing income.
Learn Forex - What you need to know to become a profitable trader
Saturday, March 14, 2009 Learn Forex, profitable trader
Learn Forex - What you need to know to become a profitable trader
by Harold Hsu
Unlike all other financial instruments, Forex is probably the easiest market for retail traders to start trading in. A new trader can start trading with as little as $200 (or less), and - unlike stocks and options - require only a minimal understanding of the technical aspects of the financial assets that are being traded.
With Forex, you don't have to know how to value a company (as one would need to with stocks), nor would you need to understand how options are priced. There is no exact way to calculate the value of a currency, and that leaves a lot of room for speculation and thus the opportunity for more profits.
Compared to stocks, options and futures, Forex trading is a better equalizer of opportunity. You don't need a PhD or an MBA to be able to understand the Forex market - actually, you don't even need a university degree. Any one who understands the law of supply and demand will have the potential to be a good trader in the Forex market.
However, this doesn't mean that it's easy to make money in Forex trading. In fact, more than 90% of all Forex traders lose their money!
The main reason why there are so many losing Forex traders is because they don't have a good education about the forces at work in the Forex market. Losing traders often don't trade with a good entry/exit system, or with an overall trading plan. They simply place their trades "when they feel like it". And that's a recipe for disaster.
So here are the main areas you'll need to learn about in Forex trading, before you'll be able to make money consistently:
1. The nature of the Forex market - what moves prices, why they move, and how they move
2. A good mix of technical and fundamental analysis techniques
3. A reliable and complete trading system - this includes entry/exit criteria, stop loss and profit target levels, and good money management
4. A good understanding of your own personal trading psychology and how not to let your emotions control your trades
All of these areas are crucial in determining your success as a Forex trader. But don't be discouraged - learning about Forex trading is a lot easier than learning to trade any other financial asset.
The only thing you'll need to watch out for is all the garbage information that many "Forex websites" out there will try to feed you with. There is good information available on the internet - but more often than not, they are drowned out by all the marketing scammers trying to make a quick buck at your expense. So please do be careful about choosing your learning sources.
And when the going gets tough, don't give up - the road to becoming a profitable trader is no piece of cake, but the rewards are more than well worth it.
by Harold Hsu
Unlike all other financial instruments, Forex is probably the easiest market for retail traders to start trading in. A new trader can start trading with as little as $200 (or less), and - unlike stocks and options - require only a minimal understanding of the technical aspects of the financial assets that are being traded.
With Forex, you don't have to know how to value a company (as one would need to with stocks), nor would you need to understand how options are priced. There is no exact way to calculate the value of a currency, and that leaves a lot of room for speculation and thus the opportunity for more profits.
Compared to stocks, options and futures, Forex trading is a better equalizer of opportunity. You don't need a PhD or an MBA to be able to understand the Forex market - actually, you don't even need a university degree. Any one who understands the law of supply and demand will have the potential to be a good trader in the Forex market.
However, this doesn't mean that it's easy to make money in Forex trading. In fact, more than 90% of all Forex traders lose their money!
The main reason why there are so many losing Forex traders is because they don't have a good education about the forces at work in the Forex market. Losing traders often don't trade with a good entry/exit system, or with an overall trading plan. They simply place their trades "when they feel like it". And that's a recipe for disaster.
So here are the main areas you'll need to learn about in Forex trading, before you'll be able to make money consistently:
1. The nature of the Forex market - what moves prices, why they move, and how they move
2. A good mix of technical and fundamental analysis techniques
3. A reliable and complete trading system - this includes entry/exit criteria, stop loss and profit target levels, and good money management
4. A good understanding of your own personal trading psychology and how not to let your emotions control your trades
All of these areas are crucial in determining your success as a Forex trader. But don't be discouraged - learning about Forex trading is a lot easier than learning to trade any other financial asset.
The only thing you'll need to watch out for is all the garbage information that many "Forex websites" out there will try to feed you with. There is good information available on the internet - but more often than not, they are drowned out by all the marketing scammers trying to make a quick buck at your expense. So please do be careful about choosing your learning sources.
And when the going gets tough, don't give up - the road to becoming a profitable trader is no piece of cake, but the rewards are more than well worth it.
A Review of the Forex Killer Currency Trading Course
Currency Trading Course, Forex Killer
A Review of the Forex Killer Currency Trading Course
by Brian Garvin & Jeff West
Foreign Exchange (Forex) Trading is one of the largest investment vehicles in the world; over the course of each day, nearly 2 trillion dollars, an amount of money rivaling the entire United States Government annual budget - is traded on foreign currency exchanges each day. Since the 1990s, forex trading has been opened up to private investors, as well as institutional banks, and has become one of the greatest money making opportunities in the world.
In a nutshell, forex trading means converting one currency into another. If, for example, the Euro were trading at $1.20 to the dollar, it would take $1.20 to buy one Euro. Later, the Euro might be $1.40 to the dollar - if you bought Euros at $1.20 and sold them at $1.40, your investment would have appreciated at $1.40/$1.20 or by 16.67%.
Each tenth of a percentage point of change is called a "pip", and good investors learn to read trends in the market, and look for things that signal upcoming changes in the market. Lots of banks invest a lot of money and expertise and data storage into analysts who can read those signals and leverage changes that are as small as a thousandth of a penny - when you're moving two billion dollars on a move, a thousandth of a penny shift translates into a significant chunk of change.
Which is where Forex Killer comes in. Andreas Kirchberger worked for Duetschebank for a decade before forex got deregulated; he's learned more about reading signals that most people will ever have time to learn, and he's made more mistakes (with monetary amounts that dwarf the budgets of most cities) than you'll ever have the time or guts to make. In the end, everything he learned boiled down to this:
He who has the most accurate information at the earliest time gets to make the best decisions, and that information is more than just the current exchange rate, or the historical change rate - it's also a factor of news stories, mass psychology, investor risk dynamics (all investors are prone to riding out the risks for too long, and that shapes trends in currency pairs), and a bunch of mathematical factors.
With the help of several mathematicians and even a couple of top notch psychologists, he's built all those factors into ForEx Killer. ForEx killer comes with a basic tutorial on what Forex trading is. It also "learns" as you hoot it into various data sources, and can be tailored to work on any pair of currencies, or multiple mosaics of currency pairs.
It's designed to spot trends before they crest so you can buy in early, or sell before things crash, and while it's not infallible, it does put many of the same informational tools at your fingertips that the professionals use. Furthermore, because of Andreas' experience with the markets, ForEx Killer can look at trends, match them to patterns, and give you estimated guesses about what else is going on "behind the scenes".
Now, ForEx Killer, like any investment tool, entails some risk. Which is why the program includes a dummy account; you're not trading real money, you're trading made up money, and ForEx Killer will let you do this as long as you like until you convince yourself that the tool works, and that you understand what's going on.
ForEx Killer is only an informational tool; it does not replace the need for a broker, or the need to have a well considered strategy. Decide early on if you want to be a day-trader or a buy-and-hold strategist. Day-trading strategies can make you more money quickly; buy-and-hold strategies involve several orders of magnitude less work, and ForEx Killer will provide you with adequate information to pursue either strategy.
by Brian Garvin & Jeff West
Foreign Exchange (Forex) Trading is one of the largest investment vehicles in the world; over the course of each day, nearly 2 trillion dollars, an amount of money rivaling the entire United States Government annual budget - is traded on foreign currency exchanges each day. Since the 1990s, forex trading has been opened up to private investors, as well as institutional banks, and has become one of the greatest money making opportunities in the world.
In a nutshell, forex trading means converting one currency into another. If, for example, the Euro were trading at $1.20 to the dollar, it would take $1.20 to buy one Euro. Later, the Euro might be $1.40 to the dollar - if you bought Euros at $1.20 and sold them at $1.40, your investment would have appreciated at $1.40/$1.20 or by 16.67%.
Each tenth of a percentage point of change is called a "pip", and good investors learn to read trends in the market, and look for things that signal upcoming changes in the market. Lots of banks invest a lot of money and expertise and data storage into analysts who can read those signals and leverage changes that are as small as a thousandth of a penny - when you're moving two billion dollars on a move, a thousandth of a penny shift translates into a significant chunk of change.
Which is where Forex Killer comes in. Andreas Kirchberger worked for Duetschebank for a decade before forex got deregulated; he's learned more about reading signals that most people will ever have time to learn, and he's made more mistakes (with monetary amounts that dwarf the budgets of most cities) than you'll ever have the time or guts to make. In the end, everything he learned boiled down to this:
He who has the most accurate information at the earliest time gets to make the best decisions, and that information is more than just the current exchange rate, or the historical change rate - it's also a factor of news stories, mass psychology, investor risk dynamics (all investors are prone to riding out the risks for too long, and that shapes trends in currency pairs), and a bunch of mathematical factors.
With the help of several mathematicians and even a couple of top notch psychologists, he's built all those factors into ForEx Killer. ForEx killer comes with a basic tutorial on what Forex trading is. It also "learns" as you hoot it into various data sources, and can be tailored to work on any pair of currencies, or multiple mosaics of currency pairs.
It's designed to spot trends before they crest so you can buy in early, or sell before things crash, and while it's not infallible, it does put many of the same informational tools at your fingertips that the professionals use. Furthermore, because of Andreas' experience with the markets, ForEx Killer can look at trends, match them to patterns, and give you estimated guesses about what else is going on "behind the scenes".
Now, ForEx Killer, like any investment tool, entails some risk. Which is why the program includes a dummy account; you're not trading real money, you're trading made up money, and ForEx Killer will let you do this as long as you like until you convince yourself that the tool works, and that you understand what's going on.
ForEx Killer is only an informational tool; it does not replace the need for a broker, or the need to have a well considered strategy. Decide early on if you want to be a day-trader or a buy-and-hold strategist. Day-trading strategies can make you more money quickly; buy-and-hold strategies involve several orders of magnitude less work, and ForEx Killer will provide you with adequate information to pursue either strategy.
Forex Market Timing - You Don't Need to Be Accurate To Make Huge Gains
Forex Market Timing, Make Huge Gains
Forex Market Timing - You Don't Need to Be Accurate To Make Huge Gains
by kelly Price
If you want to win at trading currencies correct forex market timing is needed but if you try and be too precise you will lose. This may sound strange at first but if you look at how forex prices move it will become clearer.
1. When novice traders think of market timing they are dominated by two major thoughts:
Predicting market tops and bottoms
It's very tempting to do this as you want to be in at the best possible price with your forex trading strategy but you cannot predict in advance why?
Because if you then you are simply hoping and guessing a level will hold and that wont get you anywhere in life and certainly wont give you currency trading success. Let me give you an example:
A forex trader sees prices moving to a support level and buys just above it hoping it will hold - but instead the price carries on towards support, goes through the level and stops him out.
What he should have done is confirmed that the level was going to hold (we will go through how to do this in a minute) but first lets look at another commonly held belief related to the above.
2. Buy low sell high
You will have heard this is the way to make money in investing - but it's again relying on hoping and guessing which we know will not help us win and also means you will miss the major forex trends and not get in with your forex trading signal - Why?
It's a fact that most new trends (and the strongest) develop from new market highs o and you can check this on any forex chart. Traders who wait hoping to get into the market at a better price, simply see the trend disappear over the horizon and they don't make any profits from it.
The Solution
Is to base your forex trading strategy on confirming if level will hold or break with momentum oscillators. If you don't know what they are its time to learn.
We don't have time to cover them here - but they are covered in our other articles and will give you advance warning of changes in velocity of price.
If a price is dropping to support - wait for a turn to be confirmed by these indicators.
You will miss the exact turn but you can't see that in advance anyway, so there is no point in trying and if you trade with momentum on your side the odds are in your favour.
The same technique is used when a market breakout to new highs or lows - if momentum supports the move execute your trading signal and go with the break.
Trading the Odds
In both of the above examples you have not got in at the lowest or best price but what you have done is, got in at the lowest or best price with the odds on your side and traded the reality.
Perfection and perfect timing is a myth, no one can do it and the best way is to trade the reality when you use a forex trading system and that means confirming ALL moves are going your way before trading.
Keep in mind if you get just 50% of every major trend you would be very rich. If you want to learn currency exchange the right way you will realise perfection is impossible.
Forex trading is about making money not trying to be clever and it's about trading high odds moves and then means waiting for confirmation.
by kelly Price
If you want to win at trading currencies correct forex market timing is needed but if you try and be too precise you will lose. This may sound strange at first but if you look at how forex prices move it will become clearer.
1. When novice traders think of market timing they are dominated by two major thoughts:
Predicting market tops and bottoms
It's very tempting to do this as you want to be in at the best possible price with your forex trading strategy but you cannot predict in advance why?
Because if you then you are simply hoping and guessing a level will hold and that wont get you anywhere in life and certainly wont give you currency trading success. Let me give you an example:
A forex trader sees prices moving to a support level and buys just above it hoping it will hold - but instead the price carries on towards support, goes through the level and stops him out.
What he should have done is confirmed that the level was going to hold (we will go through how to do this in a minute) but first lets look at another commonly held belief related to the above.
2. Buy low sell high
You will have heard this is the way to make money in investing - but it's again relying on hoping and guessing which we know will not help us win and also means you will miss the major forex trends and not get in with your forex trading signal - Why?
It's a fact that most new trends (and the strongest) develop from new market highs o and you can check this on any forex chart. Traders who wait hoping to get into the market at a better price, simply see the trend disappear over the horizon and they don't make any profits from it.
The Solution
Is to base your forex trading strategy on confirming if level will hold or break with momentum oscillators. If you don't know what they are its time to learn.
We don't have time to cover them here - but they are covered in our other articles and will give you advance warning of changes in velocity of price.
If a price is dropping to support - wait for a turn to be confirmed by these indicators.
You will miss the exact turn but you can't see that in advance anyway, so there is no point in trying and if you trade with momentum on your side the odds are in your favour.
The same technique is used when a market breakout to new highs or lows - if momentum supports the move execute your trading signal and go with the break.
Trading the Odds
In both of the above examples you have not got in at the lowest or best price but what you have done is, got in at the lowest or best price with the odds on your side and traded the reality.
Perfection and perfect timing is a myth, no one can do it and the best way is to trade the reality when you use a forex trading system and that means confirming ALL moves are going your way before trading.
Keep in mind if you get just 50% of every major trend you would be very rich. If you want to learn currency exchange the right way you will realise perfection is impossible.
Forex trading is about making money not trying to be clever and it's about trading high odds moves and then means waiting for confirmation.
Currency Trading - A Simple Tip for Huge Profits
Wednesday, March 11, 2009 Currency Trading, Huge Profits
Currency Trading - A Simple Tip for Huge Profits
by kelly Price
Here I am going to give you a simple tip that can make huge gains. It's simple to understand easy to use and easy to apply and can and does make big profits.
To show how effective this tip is I have demonstrated it live by predicting the euro would go no higher than 1.50 (it fell from this level) said it would have a target of 1.44 (it traded below this level) and then indicated a rally to 1.48 was on the cards and its trading just below this level.
Does that make me a guru or an expert? Of course not all I am doing is using the news to indicate overbought / oversold areas and anyone can do it
I am writing this on Thursday Dec 3rd and now looking for the euro to fall again.
This may seem odd if you read the news - most are turning bearish on the dollar based upon:
A run of poor U.S. data, including Wednesday's contraction in the manufacturing sector for December. To add to the dollars woes we have crude oil up at $100 a barrel.
This has seen dealers to fully price in a 25 basis point cut in the Federal Reserve's benchmark interest rate at the end of the month, and a one-in-five chance of a bigger 50 basis point move.
So the dollar is a banker to crash out of sight then - No and for the reason why you need to understand this equation:
Supply and demand + Investor perception of them = Price
The supply and demand fundamentals are there for all to see but we all as humans draw conclusions based upon our own view. Humans tend to push prices to far away from fair value and when they do this and you can spot it you can look for a contrary trade.
Will the fed cut by 25bps maybe but that's priced in, by 50bps? Unlikely, as they have already made their views clear on inflation. Is the US heading for recession as many think? Not yet, GDP is robust and the recent data indicates a sluggish economy not one in recession so prices look like they have run ahead of the fundamentals and the dollar could rally.
It's a fact that the majority of traders lose, so being in the minority is not a bad place to be.
All the above is priced in and while the price may run a bit higher a selling opportunity is coming in the euro against the dollar.
This doesn't happen just in currencies check out crude oil 15% in a short space of time is this anything to do with supply and demand its investor psychology at work and crude cannot hold these levels based upon supply and demand.
Of course humans are un predictable and you never know how far they can drive prices and this is where you need to look at your forex charts momentum is waning in both crude and the euro and its time to watch for a turn.
The important point is to wait for confirmation and when a top is confirmed shorts can go in but you need to be patient.
Our view is the euro will probably top around here and crude oil is the same tomorrow could be the day it happens. Wait on the sidelines and wait if the signals don't come don't jump, if they do then you can hit some nice contrary trades.
There's an old saying:
" if you can hold your head when everyone else is losing theirs you probably haven't heard the news"
In this case you have and you're holding your head and seeing an opportunity for a profit.
by kelly Price
Here I am going to give you a simple tip that can make huge gains. It's simple to understand easy to use and easy to apply and can and does make big profits.
To show how effective this tip is I have demonstrated it live by predicting the euro would go no higher than 1.50 (it fell from this level) said it would have a target of 1.44 (it traded below this level) and then indicated a rally to 1.48 was on the cards and its trading just below this level.
Does that make me a guru or an expert? Of course not all I am doing is using the news to indicate overbought / oversold areas and anyone can do it
I am writing this on Thursday Dec 3rd and now looking for the euro to fall again.
This may seem odd if you read the news - most are turning bearish on the dollar based upon:
A run of poor U.S. data, including Wednesday's contraction in the manufacturing sector for December. To add to the dollars woes we have crude oil up at $100 a barrel.
This has seen dealers to fully price in a 25 basis point cut in the Federal Reserve's benchmark interest rate at the end of the month, and a one-in-five chance of a bigger 50 basis point move.
So the dollar is a banker to crash out of sight then - No and for the reason why you need to understand this equation:
Supply and demand + Investor perception of them = Price
The supply and demand fundamentals are there for all to see but we all as humans draw conclusions based upon our own view. Humans tend to push prices to far away from fair value and when they do this and you can spot it you can look for a contrary trade.
Will the fed cut by 25bps maybe but that's priced in, by 50bps? Unlikely, as they have already made their views clear on inflation. Is the US heading for recession as many think? Not yet, GDP is robust and the recent data indicates a sluggish economy not one in recession so prices look like they have run ahead of the fundamentals and the dollar could rally.
It's a fact that the majority of traders lose, so being in the minority is not a bad place to be.
All the above is priced in and while the price may run a bit higher a selling opportunity is coming in the euro against the dollar.
This doesn't happen just in currencies check out crude oil 15% in a short space of time is this anything to do with supply and demand its investor psychology at work and crude cannot hold these levels based upon supply and demand.
Of course humans are un predictable and you never know how far they can drive prices and this is where you need to look at your forex charts momentum is waning in both crude and the euro and its time to watch for a turn.
The important point is to wait for confirmation and when a top is confirmed shorts can go in but you need to be patient.
Our view is the euro will probably top around here and crude oil is the same tomorrow could be the day it happens. Wait on the sidelines and wait if the signals don't come don't jump, if they do then you can hit some nice contrary trades.
There's an old saying:
" if you can hold your head when everyone else is losing theirs you probably haven't heard the news"
In this case you have and you're holding your head and seeing an opportunity for a profit.
Can You be Successful Forex Trading?
Forex Scalping Systems, Forex Signals, Forex trading caree, forex trading course, Forex Trading Elite, Successful Forex Trading
Can You be Successful Forex Trading?
by Rick Williamson
Let's talk about foreign exchange trading. It is the largest market in the world. It is larger than the stock market. Let's take a closer look. Trillions of dollars are traded every day. In the early days, banks, world wide companies and wealthy speculators traded foreign exchange.Today with the growth of the internet and online brokerages, the currency exchange market has exploded so that anyone with a computer who can sit down to trade.
Currencies traded are the US dollar, the Eurodollar, the Japanese yen, the Swiss franc and the British pound. These are expressed in pairs. One of the pair is bought and one of the pair is sold. A person with a computer and internet connection and some knowledge of this market can buy or sell these pairs through a brokerage. These brokerages have real time currency prices, charting features, instant execution and real time news and features.
There are many reasons to trade currency. Banks and large world wide companies trade as a function of doing international business. Speculators trade to make money. In 1992, a well known speculator made a billion dollars in one day trading the pound against the dollar. Maybe we all can not do that but there is money to be made trading currency. A person needs some time, some knowledge and the internet.
A person becomes interested as they spend time with this market. It can be an exciting venture. Most brokerages supply a "fake money" account so you can practice trading without losing money. When you become comfortable, move into the into real money and real profits. Happy trading.
by Rick Williamson
Let's talk about foreign exchange trading. It is the largest market in the world. It is larger than the stock market. Let's take a closer look. Trillions of dollars are traded every day. In the early days, banks, world wide companies and wealthy speculators traded foreign exchange.Today with the growth of the internet and online brokerages, the currency exchange market has exploded so that anyone with a computer who can sit down to trade.
Currencies traded are the US dollar, the Eurodollar, the Japanese yen, the Swiss franc and the British pound. These are expressed in pairs. One of the pair is bought and one of the pair is sold. A person with a computer and internet connection and some knowledge of this market can buy or sell these pairs through a brokerage. These brokerages have real time currency prices, charting features, instant execution and real time news and features.
There are many reasons to trade currency. Banks and large world wide companies trade as a function of doing international business. Speculators trade to make money. In 1992, a well known speculator made a billion dollars in one day trading the pound against the dollar. Maybe we all can not do that but there is money to be made trading currency. A person needs some time, some knowledge and the internet.
A person becomes interested as they spend time with this market. It can be an exciting venture. Most brokerages supply a "fake money" account so you can practice trading without losing money. When you become comfortable, move into the into real money and real profits. Happy trading.
Forex Scalping Systems - Beware of Curve Fitting or Lose!
Beware, Curve Fitting, Forex Scalping Systems, Lose
Forex Scalping Systems - Beware of Curve Fitting or Lose!
by kelly Price
Forex scalping systems are more popular than ever and they all come with great track records, which have unbelievable gains and their very tempting for novice traders but what they need to be aware of is - curve fitting which ensures that most scalping systems lose money.
Curve fitting is when a vendor bends his system to fit the data.
When the vendor can't get the system to work, he keeps adding more rules and parameters in until it does, by bending the system to fit the data or curve fitting. He then has a track record he is satisfied with or more to the point gives him a great track record he can sell.
What happens next?
No two periods of data are going to exactly replicate themselves and the system simply collapses and loses in real time trading.
LOOK FOR THIS DISCLAIMER!
The buyer scratches his head and wonders why - but if he looked for this on the track record he can find out if its curve fitted. Look for the disclaimer below (or similar) on any system you buy - this is standard CFTC one.
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
If you are looking at buying a forex scalping system from a vendor, beware there all curve fitted.
You will NEVER find one with a real time track record, as forex scalping simply doesn't work by the very nature of the logic its based upon.
The time period is simply to short.
All volatility in daily or hourly time frames is random - support and resistance is meaningless and prices can and do go anywhere in a day. It's impossible to get the odds in your favor and forex day traders always lose long term.
Of course it makes a good story and naïve and greedy traders buy it and vendors know this.
They simply tell the story add a simulated track record and appeal to their greed - it's a big industry.
If you want to trade forget forex, forget scalping systems or day trading and trade longer time periods, where you can get the odds in your favor.
Leave forex scalping systems to the dreamers and greedy traders, get the right forex education and enjoy currency trading success by using longer time frames and valid data.
by kelly Price
Forex scalping systems are more popular than ever and they all come with great track records, which have unbelievable gains and their very tempting for novice traders but what they need to be aware of is - curve fitting which ensures that most scalping systems lose money.
Curve fitting is when a vendor bends his system to fit the data.
When the vendor can't get the system to work, he keeps adding more rules and parameters in until it does, by bending the system to fit the data or curve fitting. He then has a track record he is satisfied with or more to the point gives him a great track record he can sell.
What happens next?
No two periods of data are going to exactly replicate themselves and the system simply collapses and loses in real time trading.
LOOK FOR THIS DISCLAIMER!
The buyer scratches his head and wonders why - but if he looked for this on the track record he can find out if its curve fitted. Look for the disclaimer below (or similar) on any system you buy - this is standard CFTC one.
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
If you are looking at buying a forex scalping system from a vendor, beware there all curve fitted.
You will NEVER find one with a real time track record, as forex scalping simply doesn't work by the very nature of the logic its based upon.
The time period is simply to short.
All volatility in daily or hourly time frames is random - support and resistance is meaningless and prices can and do go anywhere in a day. It's impossible to get the odds in your favor and forex day traders always lose long term.
Of course it makes a good story and naïve and greedy traders buy it and vendors know this.
They simply tell the story add a simulated track record and appeal to their greed - it's a big industry.
If you want to trade forget forex, forget scalping systems or day trading and trade longer time periods, where you can get the odds in your favor.
Leave forex scalping systems to the dreamers and greedy traders, get the right forex education and enjoy currency trading success by using longer time frames and valid data.
Forex Trading - Answer This Simple Question Correctly or Lose!
Tuesday, March 10, 2009 Correctly, forex trading, Lose, Simple Question
Forex Trading - Answer This Simple Question Correctly or Lose!
by kelly Price
So you want to win at forex trading? Well here is one simple question you must answer correctly with no hesitation - if you can you could be a winner if not forget forex trading. Here is your question:
My trading edge (the reason I will win when 95% of traders lose) is then define it:
Now a trading edge is essential and it's something you MUST have, understand what and why it gives you an edge, so you have confidence in it, to lead you to success.
Trading edges come from within and their personal and their based upon this:
Understanding = Confidence = Discipline = Forex success
A TRADING EDGE IS NOT
- Following expert news stories - Day trading or scalping - Following a system from a vendor blindly - Buying low and selling high - Predicting price moves in advance - Believing markets move to a scientific theory - Believing forex trading is easy - The more knowledge you have the better - The more complicated your forex trading system the better
If you think any of the above will lead you to currency trading success - your wrong and need to continue your fore education. The above are common myths there are many more but the above are believed by the bulk of losers and their the majority 95%
Consider the figure 95% it's a lot!
So how do you win?
There are no secrets to forex trading and anyone can learn currency exchange for profit but it involves seeing through the myths and working smart and seeing the reality.
The reality is that you need a simple method you understand can have confidence in and can apply with discipline.
Forex trading is actually quite simple when you understand what you need to do but most traders fail to get past first base of getting a logical method and more fail at the nest hurdles which is having confidence and few ever have the discipline to follow their forex trading strategy to success.
If you want to win at forex trading keep in mind it's based upon applying a method with discipline for that you need confidence and if you don't have these traits you won't have discipline and end up falling prey to your emotions and losing
The Good News Is:
For those traders prepared to work smart and do their homework a life changing income can be had and anyone can do it - but its up to you.
If you understand the above you will realize that forex trading requires certain skills and you need to learn and apply them and they are not what most forex traders think they are.
Learn the above, digest it get a trading edge and then you can enjoy currency trading success.
by kelly Price
So you want to win at forex trading? Well here is one simple question you must answer correctly with no hesitation - if you can you could be a winner if not forget forex trading. Here is your question:
My trading edge (the reason I will win when 95% of traders lose) is then define it:
Now a trading edge is essential and it's something you MUST have, understand what and why it gives you an edge, so you have confidence in it, to lead you to success.
Trading edges come from within and their personal and their based upon this:
Understanding = Confidence = Discipline = Forex success
A TRADING EDGE IS NOT
- Following expert news stories - Day trading or scalping - Following a system from a vendor blindly - Buying low and selling high - Predicting price moves in advance - Believing markets move to a scientific theory - Believing forex trading is easy - The more knowledge you have the better - The more complicated your forex trading system the better
If you think any of the above will lead you to currency trading success - your wrong and need to continue your fore education. The above are common myths there are many more but the above are believed by the bulk of losers and their the majority 95%
Consider the figure 95% it's a lot!
So how do you win?
There are no secrets to forex trading and anyone can learn currency exchange for profit but it involves seeing through the myths and working smart and seeing the reality.
The reality is that you need a simple method you understand can have confidence in and can apply with discipline.
Forex trading is actually quite simple when you understand what you need to do but most traders fail to get past first base of getting a logical method and more fail at the nest hurdles which is having confidence and few ever have the discipline to follow their forex trading strategy to success.
If you want to win at forex trading keep in mind it's based upon applying a method with discipline for that you need confidence and if you don't have these traits you won't have discipline and end up falling prey to your emotions and losing
The Good News Is:
For those traders prepared to work smart and do their homework a life changing income can be had and anyone can do it - but its up to you.
If you understand the above you will realize that forex trading requires certain skills and you need to learn and apply them and they are not what most forex traders think they are.
Learn the above, digest it get a trading edge and then you can enjoy currency trading success.
Forex Scalping - A Guaranteed Way to Wipeout Your Equity Quickly
Equity Quickly, Forex Scalping
Forex Scalping - A Guaranteed Way to Wipeout Your Equity Quickly
by kelly Price
Forex scalping and day trading are more popular than ever but it's simply the best way to wipe out your equity quickly. Here we will give you the facts about forex scalping and why it is based on unsound logic which will see you lose.
First let me ask you a question:
There are millions of traders all around the world from banks to private traders, trading trillions of dollars all with different methods, motivations and diverse opinions.
How is it possible to tell what this huge diverse mass will do in a few hours?
Know the answer?
Well if you do you can make money at forex scalping - but it's obvious that you can't predict what this vast mass will do in a few hours but forex scalpers try. Here are some of the answers you get form vendors selling systems .
1. Support & Resistance is Valid In a Day and can be Traded
Fact: Its not - volatility is totally random, prices can and do go anywhere and support and resistance levels in daily time frames are not tradable.
2. Markets Move Scientifically
Fact: This is absolute rubbish! If there were a scientific theory that worked, everyone would know the market price in advance and their would be no market! Markets move because they are not certain and while human nature is constant it certainly is not logical and predictable with scientific accuracy.
Anyway, if anyone had found a theory that worked all the time they would be to busy making money to bother anyone else.
You will see lots of forex scalping courses on the net, all promising 50 ticks a day, regular incomes and the ability to predict prices in advance - It's a wonder anyone has to go to work! Buy one of these for $100 odd bucks, sit back and earn money for doing nothing - if only it were that easy.
If ever you see a day trading or forex scalping track record it's a simulation - simply look for this disclaimer or a similar one:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - a vendor can make up any track record he likes in hindsight and of course they do (they have the sense not to trade it themselves) and simply put the above disclaimer on it.
Naïve and greedy traders can't resist it like bees at a honey pot, later they get a sharp lesson in trading reality - a wipeout.
The way To Make Money in FOREX
Is to forget day trading and forex scalping and trade time frames where you can get the odds in your favor and that means forex swing trading or forex trend following. The former looks for trends of a few days to about a week and the latter for weeks or months. Which you choose is up to you but with both methods ,the data is long enough for you to calculate the odds and enjoy currency trading success which is more than can be said for forex scalping.
by kelly Price
Forex scalping and day trading are more popular than ever but it's simply the best way to wipe out your equity quickly. Here we will give you the facts about forex scalping and why it is based on unsound logic which will see you lose.
First let me ask you a question:
There are millions of traders all around the world from banks to private traders, trading trillions of dollars all with different methods, motivations and diverse opinions.
How is it possible to tell what this huge diverse mass will do in a few hours?
Know the answer?
Well if you do you can make money at forex scalping - but it's obvious that you can't predict what this vast mass will do in a few hours but forex scalpers try. Here are some of the answers you get form vendors selling systems .
1. Support & Resistance is Valid In a Day and can be Traded
Fact: Its not - volatility is totally random, prices can and do go anywhere and support and resistance levels in daily time frames are not tradable.
2. Markets Move Scientifically
Fact: This is absolute rubbish! If there were a scientific theory that worked, everyone would know the market price in advance and their would be no market! Markets move because they are not certain and while human nature is constant it certainly is not logical and predictable with scientific accuracy.
Anyway, if anyone had found a theory that worked all the time they would be to busy making money to bother anyone else.
You will see lots of forex scalping courses on the net, all promising 50 ticks a day, regular incomes and the ability to predict prices in advance - It's a wonder anyone has to go to work! Buy one of these for $100 odd bucks, sit back and earn money for doing nothing - if only it were that easy.
If ever you see a day trading or forex scalping track record it's a simulation - simply look for this disclaimer or a similar one:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - a vendor can make up any track record he likes in hindsight and of course they do (they have the sense not to trade it themselves) and simply put the above disclaimer on it.
Naïve and greedy traders can't resist it like bees at a honey pot, later they get a sharp lesson in trading reality - a wipeout.
The way To Make Money in FOREX
Is to forget day trading and forex scalping and trade time frames where you can get the odds in your favor and that means forex swing trading or forex trend following. The former looks for trends of a few days to about a week and the latter for weeks or months. Which you choose is up to you but with both methods ,the data is long enough for you to calculate the odds and enjoy currency trading success which is more than can be said for forex scalping.
Forex Currency Trading System - A Basic Guide
Sunday, March 8, 2009 Basic Guide, Forex Currency Trading System
Forex Currency Trading System - A Basic Guide
by Abhishek Agarwal
If you are about to start doing it yourself and get into foreign exchange, make sure you have the right system to succeed.
Making money is fairly easy if you get the timing right. The right currency trading system helps you get the right timing. By definition, a trading system is well known for its use to invest money so you can make more money. The Forex exchange to be precise is all about investing money for a different currency, to make money and profits.
Forex is dependent only on the success of the stock markets.Using a Forex trading system can give you many advantages
1) in which you could invest in your own currency rates,
2) your money can be changed to another currency, and
3) can invest with a foreign company right from your own country.
So that you know, a currency Forex system was initiated by world-renowned investors, multinational corporations, and worldwide currencies.
Currency exchange Forex online system may have the same results as in a currency offline Forex trading system. However in a trading system online, access is definitely faster and you can see trade changes faster than offline systems. Also, in an online system, you could invest, trade, move investments and withdraw money faster. In addition, systems currency swap Forex can build wealth to potential investors willing to learn about their investments and whom to trust as their brokers to have other decisions.
However, making up your mind on the kind of Forex system to trust can be a decisive factor for your company. Typically in the treatment of any type of investment, whatever you want to meet other traders have met at another time. Thus, when the currency Forex trading system agent cant be contacted in person, by telephone, e-mail or fax, it is possible that you are working with a false company. A society that currently uses Forex trading systems currencies and offers many opportunities for global investments should contact you at different times ofthe trade.
Also, having to invest and work with a currency system Forex company that puts your money first and listens to whatever you need is a good thing. However, if they call you with suggestions opposing your decisions at regular intervals, it can get irritating. So it is advised to avoid doing business with such a currency system Forex business. Always remember that to cope with any type of investment, you should understand that you need time to learn the ropes before you get in.
Sometimes, a currency trading system Forex agency will call and ask you for money, because it could help you get involved in the scene, and here you have to be careful. Any good agent will give you time to make decisions without pressure. So look for one you are comfortable with investing.
Lastly, when you are sure you have a good agent, you will be able to work relaxed and feel your money is secure.
by Abhishek Agarwal
If you are about to start doing it yourself and get into foreign exchange, make sure you have the right system to succeed.
Making money is fairly easy if you get the timing right. The right currency trading system helps you get the right timing. By definition, a trading system is well known for its use to invest money so you can make more money. The Forex exchange to be precise is all about investing money for a different currency, to make money and profits.
Forex is dependent only on the success of the stock markets.Using a Forex trading system can give you many advantages
1) in which you could invest in your own currency rates,
2) your money can be changed to another currency, and
3) can invest with a foreign company right from your own country.
So that you know, a currency Forex system was initiated by world-renowned investors, multinational corporations, and worldwide currencies.
Currency exchange Forex online system may have the same results as in a currency offline Forex trading system. However in a trading system online, access is definitely faster and you can see trade changes faster than offline systems. Also, in an online system, you could invest, trade, move investments and withdraw money faster. In addition, systems currency swap Forex can build wealth to potential investors willing to learn about their investments and whom to trust as their brokers to have other decisions.
However, making up your mind on the kind of Forex system to trust can be a decisive factor for your company. Typically in the treatment of any type of investment, whatever you want to meet other traders have met at another time. Thus, when the currency Forex trading system agent cant be contacted in person, by telephone, e-mail or fax, it is possible that you are working with a false company. A society that currently uses Forex trading systems currencies and offers many opportunities for global investments should contact you at different times ofthe trade.
Also, having to invest and work with a currency system Forex company that puts your money first and listens to whatever you need is a good thing. However, if they call you with suggestions opposing your decisions at regular intervals, it can get irritating. So it is advised to avoid doing business with such a currency system Forex business. Always remember that to cope with any type of investment, you should understand that you need time to learn the ropes before you get in.
Sometimes, a currency trading system Forex agency will call and ask you for money, because it could help you get involved in the scene, and here you have to be careful. Any good agent will give you time to make decisions without pressure. So look for one you are comfortable with investing.
Lastly, when you are sure you have a good agent, you will be able to work relaxed and feel your money is secure.
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