FapTurbo Review - is Fap Turbo Scam or the Best Forex Trading Robot Membership Provider - By: Jimmy Noi
Fap turbo is a forex robot, a type of computer program that automates the foreign exchange trading system. Fab Turbo�s main purpose is to automate the entire forex market, allowing you to trade on the foreign exchange market without doing anything. You can even make a profit while you sleep by using FapTurbo.
Factors worn to Evaluate the Trading Forex Robot Software
appealing Percentage
When evaluating this software, there are numerous key issues that can be worn to mediate its profitability. The first issue is the engaging degree of the system. This refers to the percentage of engaging trades that the software makes. FAP Turbo's engaging degree in the bygone 9 time has been 95% on norm, and live difficult is screening an even superior victory degree.
Drawdown
Another important reason is the drawdown of the system. This is a percentage table that tells me what is the limit % of funds that FAPTurbo has helpless. normal Forex trading software has drawdowns of 10% to 20%. FAPTurbo's drawdown is 0.35% which explains why the justice diagram is so downy on the speech page on its website.
The Good of Fap Turbo - Live Trading Forex Robot
The robot will observer Forex market and automatically make trades for you. Once you set up the program, you don�t have to do anything with it. Fap turbo also has some good promotion points. The first, as mentioned above, is their very well done tutorial videos. These show you just how to use the program. The videos answer just about every suspect you may have about Fap turbo and how to mount and use it.
Downsides of FapTurbo
Of course, no product is ever completely perfect. FapTurbo does have a few downsides. First, the program will only run when your computer is online. If your internet goes down, you disconnect, or you turn off your computer, Fap turbo will stop running. This means you could potentially miss a great trade. However, there is a solution�you can sign up for their forex hosting service. This will keep your Fab turbo robot online all the time, constantly seeking trades for you.
However, this repair will charge you $70 a month. If you can envelop that with the profits you make in trades, you�re good. If you�re just first out, you might not want to exhaust the spare money. The rate of FapTurbo is also appealing reasonable. You can automate all of your trading for about $100. because the authority for the program never expires, you won�t have to pay for anything also ever again.
Can You Really Trust the Back Test and Live Testing Results on the FAP Turbo Site?
After looking at the historical fallout and its live trading performance, I am opening to see that this software trades in the command of the long phrase trend, and the patterns of trading between back examine and live trying are very parallel. This shows that the robot is operation with the same policy and hence the testimony fallout are unfailing.
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DO FOREX ROBOTS REALLY WORK? - By: John Moore
Forex Trading Robots are designed to automate the process of Forex trading. They are also called Forex Trading Software, Forex Trading Systems, EA Forex, with popular products being; FAP Turbo,Forex Autopilot, Forex Killer.
A Forex robot is software that has a trading system programmed into it. These robots have grown in popularity for a number of reasons. One big reason is that the robot itself performs it's duties exactly as it was programmed to.
Another reason trading robots have grown in popularity is that individuals want to be able to trade profitably without learning how to develop their own trading system. As a result many are searching for the best Forex trading robot programs with expert advisors and forums available to them.
So, should you use Forex robots to trade successfully? In reality only you can answer that question as you best understand your trading goals. You should understand, however, that all Forex robots are not created equal. In fact, there are huge differences between them and it will be important that you evaluate any trading robot very closely before risking money. There have been some very good articles and blogs written about forex robot reviews.
Based on what I have seen out there, it would be safe to speculate that a great many of the Forex robots on the market today don't have what it takes to help you become successful. After buying most of these products and putting them to the real test of an actual forex trader, I can tell you that only 3 forex robot products I tried actually worked. My favorite; FapTurbo, met all of my requirements and I was successful with this product right out of the gate.
The other products that I researched; Forex Autopilot and Forex Killer, were good forex robot products, but were not as easy to use or intuitive as the FapTurbo product which is a second generation forex trading software.
Forex Currency trading can be very rewarding if you approach it like a business and take it seriously. Every good business realizes that they need the proper tools to do the job at hand. Forex trading is no different and you should arm yourself with every available tool that you can find to make your business more successful.
Do your research, check out my blog and make your most informed decision.Good luck with your trades!
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Start Trading With Excellent Forex Trading Software - By: Rudy S. Silva
There are trillions of dollars being traded in the forex market. It easy to get started in this market since it is very liquid. Many investors want to try their skill in trading in this market. To make it in this market you need to have the right personality and forex trading software.
If you decide you want get involved in Forex trading without the proper training most likely you will lose a lot of money. Just talk with other traders and find out how they have lost money in the present or in their early days of trading. They know the importance of using forex trading software.
There was a time when the forex market was only open to those with large bank rolls. But time has changed and the Forex Market opened up to all individuals. Now you can, with forex trading software, have a good go at trying to make some good money in forex.
With the forex market open to anyone who has money to risk, anyone can play in this market. It's not all that complicated when it comes down to it ; you buy low and sell high, as in any other sort of commodities trading.
But to succeed in this market, you'll need to learn how the market works and then move on to getting a handle on the necessary skills for trading profitably in foreign currencies.
To get started trading, you will need a computer and a DSL or modem internet connection. Get the fastest computer you can afford and the fastest internet connection available. You need speed when you are trading. When you are working with a forex trading program and are trading, you don’t want to wait to long to get computed results.
You can download trading software for a fee, or you can choose to use server-side software offered by many Forex brokerages instead. In either case, you'll need to open an account with a brokerage, which can be done online. Once you've opened your account, you'll be able to get started making Forex trades.
There is Forex trading software which you can purchase and then download; or you can use the web-based trading software available from most of the brokerages which deal in the Forex market. You'll also have to open an account with a Forex broker (which you can also do online) before you can make Forex trades.
Go into trading with a positive attitude. Know that you will win. And, don’t be greedy. Take profit when you have it and don’t get into the attitude that your trade will keep going up and up. Currency values change quickly when trading. A good profit can change into a loss quickly.
There are many Forex Brokers that you can chose from. The one you chose will have the trading platform that you feel comfortable with and that you can understand quickly. In addition look for solid forex trading software that has the ability to predict winners. Add to that a high speed computer and internet and now you have a chance to be successful trader. To become even more successful, look at yourself to see what personality trait can affect your trading.
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Real Time Forex News Alerts For Major Currencies - By: Pete Miguel Real
time forex news alerts show how global the financial crisis affects every major currency. Australian dollar is optimistic on keeping itself from recession. Although, reports are showing very slow come back from big blows. Unemployment rise with the loss of approximately 18,000 jobs. Business confidence is still down, record low, as well as consumer confidence. Good news is unheard for except for the slight increase in risk appetite. If this risk appetite is not sustained, Australia may face the recession sooner than expected.
The Japanese Yen recently lost track of the movements of the over risky assets. It has shown no significant movement even though the price changes in over a week. Real time forex news alerts is still wondering on how long the Japanese yen will last. Their domestic spending is showing very little movement. Both consumer and business confidence shows no sign of improvement. Some good news shows capital spending on safe investments that has at least break even results.
Euro, on the other hand, is showing promising signs of slight improvement. Though, there is no clear picture of the improvements, some would imply that it will come from stabilizing the Euro. This is a small step up if one is to consider the broader Euro zone. Business and consumer sentiment is still said to be bleak. The eyes are still focused on the financial market, whether they are to take the risks or not. Real time forex news alerts are sure to be hanging on to any news for Euro.
Swiss francs surprised real time forex news alerts when it emerged as the 'best performing major currency'. When inflation was controlled to nearly no movement, the consumer confidence was heightened. Although, their unemployment also reached a three-year high. Their export market slowed down, especially in US and Europe, so it is just a matter of time that their trading terms to hit low.
The New Zealand dollar is showing poor growth, but is hopeful that it can persuade the risk appetite. If they can persuade their markets' risk appetite they can stop the currency exchange rate from falling, which hit its seven-year low last week. Another blow was received as the retail industry hit record -low as consumers cut back on entertainment, so is true with South Pacific countries as well.
US dollar is keeping real time forex news alerts amazed. With their government's efforts to boost their consumer confidence, it has been showing more positive outlook on its way out of recession. There may have been downbeat like the consumer confidence drop and the unexpected jobless claims of about 623,000. The Obama administration is gathering up consumer confidence with the passing of his Stimulus bill. This is expected to boost the consumer and business confidence. All the other currencies are watching the movement of US dollar because of it.
As of this month, real time forex news alerts show interest rate for US dollar and GBP slightly went up. Euro, Japanese Yen and NZ dollar showed very little decline. Other major currency stayed the same.
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Automatic Forex Trading Software: Is It Really Possible? - By: Edward Lomax
Automatic Forex trading software makes trading on the currency market easy and accessible to just about everyone. But some people have trouble putting their trust in a software program to do all the trading for them. And who can blame them when real money is on the line. In this article I'll discuss why the Forex Market is a huge opportunity, and how you can end your fears about using automatic Forex software to do your trading for you.
The Forex market, as the largest financial market in the world, is a tremendous opportunity to make money and secure your financial future. The trading volume is huge, between 3-4 trillion dollars a day, and trading goes on 24 hours a day, Monday through Friday. Needless to say, if you know how to trade, there are big profits to be made. Unfortunately, most traders (about 95%) fail.
While it seems like a long shot, I'll take those odds. The good news is, it is not all that difficult to get into the 5% of traders that make real money on a regular basis. And by the end of this short article, you'll know all you need to know to join the traders making consistent profits in Forex!
Use Automatic Forex Trading Software
The truth is, computers are better than humans at performing certain tasks. They are faster. They can work non stop, 24 hours a day, 7 days a week. And they can get predictable results more consistently than humans. In my opinion, they Forex software (when programmed properly), are better at trading currency both over the short and long term.
Automatic Forex Trading Software Does Not Use Emotion
Unlike humans, a computer program is not swayed by emotion. Trust me, when real money is on the line, your emotions WILL show up. Without developing the iron will and steel nerves needed to trade Forex without letting emotions get in the way, set up an automatic computer program to do the trading for you.
In my opinion, this is the only way to get consistent results in currency trading. Sure, you might get lucky and have some winning days by trading your emotions. I would rather use a systematic approach to trading that grows my profits over time by making consistently more winning trades than losers. And this all happens on autopilot without any interaction from you!
Pick The Right Automatic Forex Trading Software
Becoming successful in the Forex market has less to do with what you know about the trading process, currency markets and economic trends than it does with making the right choice of automated software. You must use the right tool for the job. This is the fastest way to get into the exclusive 5% of forex traders. (And just imagine for a second how profitable being part of this group can be).
Avoid trading software that is programmed with an "all or nothing" trading style. While there are huge gains to be made using this strategy, there are also huge risks. And this really is an exercise in futility if you make a fortune one day and loss it all (and more), on the next. The real way to make money and secure your financial future is to use automatic Forex trading software that safely goes after winning trades while simultaneously reducing risk. Over time, this is the best way to profit from currency trading.
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Currency Trading For Beginners - Most Novices Make This Mistake! - By: kelly price
If you make the mistake enclosed you will lose at Forex trading and here is the mistake that causes the demise of more new accounts than any other. If there is one lesson for currency trading for beginners that you need learn.
Most traders believe that currency trading is easy and they think they can follow a guru, expert advisor or forex robot with a back tested system and enjoy currency trading success and of course, they lose their money. If you could win by buying $100 buck robot the amount of traders who lose wouldn't be so high.
Understand This!
Forex Trading is NOT easy. That's why 95% of traders fail to make money and get wiped out. That's a huge percentage of losers however:
The Good News However is
If you understand that big gains don't come without effort, you are prepared to get the right forex education and the right mindset the gains can be life changing - but you need to make an effort and get the knowledge you need, to give you confidence to trade with discipline.
Why You can Succeed
You wouldn't expect Forex trading to be easy with the huge rewards on offer - but you can succeed as forex trading as it's a learned skill. You don't need to have a college education and you don't need to work hard - you need to work smart, get the right Forex education and you can win. Anyone can learn currency trading in a few weeks and make money in 30 minutes a day. The effort you make will be well rewarded just simply understand the following combination for currency trading success:
Knowledge + Discipline to Execute the Knowledge is the Key to Success
Knowledge by itself is not enough to make money.
Having a logical robust forex trading system, needs to combined with the discipline to execute it.
You need to have the confidence to keep putting in your trading signals and ride out losing periods where the market is hurting your ego and giving you losses and your emotions are trying to tell you to veer of course.
Losing periods are part of trading ( don't believe anyone who tells you otherwise) and they can last for weeks and you must say on course until you hit a home run.
If you don't execute your signals though these losing periods with discipline, you have no system!
Success Comes From Within
Success comes from within. Someone can give you the knowledge and education and even though it may be sound education, it's your discipline and mindset which will turn it into profits. In forex trading many traders get the wrong education and lose and many others simply cannot trade with discipline and lose. In conclusion the trader doesn't get beaten by the market he gets beaten by himself.
Understand this and You can be a Winner at Forex
Understand Forex trading is not easy and success comes from within and the pillars of knowledge, confidence and discipline and you are on the road to a great second or even life changing income.
No other investment offers you such great profits in terms of effort to profits, it's not easy of course - but understand the above and you can win and your efforts will be well rewarded.
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How to Make Money Fast - A 4 Point Proven Plan Anyone Can Apply - By: kelly price
If you are wondering how to make money fast then the enclosed plan will work for anyone and it doesn't matter if you don't have much to start and no college education is required. If you want to make money fast, then you probably don't have much to start with and it would be a great help, if you can invest more than you have so you need the following advantage.
1. Leverage
This means that any money you put down you can invest more than you have. Let's assume you have $1,000, how about if you could leverage that and invest 100,000! Well there are many ways you can do this and we will look at one of the best later in the article and don't worry, no credit checks are needed to get this extra investment capital.
2. A Simple Business that's easy to learn
The business needs to be simple to learn and easy to apply and the one we are going to look at in a moment, takes a couple of weeks to learn and about 30 minutes a day to apply, making it a great wealth building method.
3. A business you Can apply a Proven Logic to
This means you can use a method that works and will continue to work regardless of the economic environment - in boom or bust times this business will make money. This business will always make money and the business is:
Becoming a currency trader from home and it's a lot easier to learn than most people think. You can leverage any deposit you put down by 100 times, allowing you to make money fast - it's a simple business to learn and the way you do it is:
To simply follow price charts and as humans decide the price of currencies certain patterns will repeat again and again, as human nature remains constant and never changes.
You can learn to spot these chart formations them and trade them for profit.
As one currency rises another must fall which creates constant opportunities for profit and you can trade them for profit.
Now here is the point that will lead you to success, in helping you realize your dream of making money fast. You have the vehicle and the method, now its time to get the right mindset
4. The Mindset for Success
All different businesses require a different mindset to succeed. In this business you don't have to work hard, you need to work smart and then acquire discipline to execute your plan.
In currency trading, you are dealing with leverage and to succeed, you need to accept losses and keep them small. If you don't keep them small, you will lose - but if you do, you can run your profits and make a huge amount of profits. This requires mental discipline to execute your plan when you lose and stay on track until you hit a home run.
Your discipline will enable you to cut your losses and run your profits and is a learned skill and one that is the real key to making money fast in this business.
The Challenge and the Reward
So if you are ready for a challenge then currency trading offers you the challenge of huge profits and its one you can win with the plan above and change your financial future forever - discover currency trading from home and how to make money fast and you maybe glad you did.
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Currency Trading Systems - This Ones Totally Free Has Made Millions and is Enclosed! - By: kelly price
If you want a free currency trading system, that is extremely simple to understand, has a track record stretching back over 25 years and works, you will find it and the rules of operation enclosed...
The great think about this system, is its free and was left to us by a true trading legend Richard Donchian for us all to enjoy, there is no cost or no risk at looking as it's free and available to anyone to take a look at.
There are of course lots of currency trading systems sold online - but most in real life disappoint users, because the track record presented is a back tested simulation and most are curve fitted.
The Dangers of Simulation
What curve fitting means is the vendor simply buys and sells in hindsight and bends his system to make a profit on a past segment of data history. Of course, as no two data segments ever repeat exactly the system collapses and losses in real time trading.
The one we are going to look at has worked for a quarter of a century and will continue to work, as long as markets trend. Let's take a look at it.
Real Profits for over 25 Years
The system was originally designed to trade commodities by Richard Donchian who is considered the grandfather of modern trend following and his system is a simple breakout system based on a 4 week cycle.
It only has one rule to consider and it gives this currency trading system its name - the 4 Week Rule. Here is the rule.
The System Rule
When prices make a new 4 week high buy and then hold the position. When a 4 week low is made liquidate the long trade and take a short and keep reversing the position on each new 4 week high and low and always hold a position in the market.
That's the rule - it's totally objective, you don't need to make any subjective judgement and its simple and it works - here's why.
Why the System Works
If you look at any forex chart you will notice that most new trends start and continue from new market highs or lows and these trends can last for months or even years. These long term trends, are a reflection of the underlying economic cycle of the country they represent which last a long time and so do the currency trends that reflect them.
This system will get you into and keep you in all the long term trends. In essence this is a simple forex trading breakout system and as long as markets continue to trend, it will work.
Using the System
It's a long term forex trading system and will take losses when markets don't trend but these losses will be more than compensated for when they do but you can also add a filter and exit on a shorter time frame say, 1 or 2 week low. Then go flat until the next 4 week signal. Either way, it will make money longer term - but this filter will smooth the equity curve.
Despite this systems proven track record, most traders won't use it for the following reasons.
1. They think it's too simple - Well maybe but that's an advantage in currency trading! They like the comfort of complexity but in the market it won't help you make money - simple is best.
2. It's not based on flavour of the month or far out theories such as, Neural networks, Fibonacci, or artificial intelligence - but that doesn't matter it works!
3. It's to long term and most traders don't have the discipline to trade and hold long term trends but holding long term trends is the way to make money!
4. No fancy name and packaging. The simulated forex trading systems have these names that insinuate they will clean up in Forex and great copy but that's no help without a real time track record.
A Simple Time efficient System for Big Gains
This currency trading system has been used by savvy traders for 25 years and been at the heart of many a great Forex Trading strategy. If you are interested in making money long term, it's a system that will deliver big gains and it's free.
Take a look at the 4 Week Rule and you will have a solid system you can apply in 15 minutes a day that piles up big long term gains and can give you currency trading success.
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Currency Trading Basics - 4 Critical Points to Consider Before Trading - By: kelly price
Here we want to look at currency trading basics and some points which will answer the question: could you win at currency trading? There are 4 points to consider and if you think you can master them, you can enjoy currency trading success.
1. You and Profits
Only you can make yourself successful no one else can.
Sure you can get knowledge from others - but you must learn and apply it by creating your own forex trading system.
A word of warning:
You will see numerous mechanical forex trading systems sold on the net, with simulated track records and none of them will make you money - they all lose. So forget them. The track records are meaningless as they have never been traded - don't be tempted to try them!
You're on your own - but that's the only place to be, if you want to enjoy currency trading success.
2. Working Smart
You don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.
You can learn all you need to know in about 2 weeks and you're done. It's a fact everything about successful forex trading can be specifically learned by anyone.
This was proved by trading legend Richard Dennis, who taught a group of people to trade in 14 days and they went on to make $100 million! Yes, forex trading is a learned skill - so where do you get the best education?
Well you can get a ton of free info on the net and you should also take a look at some books by the great traders from Amazon.
The best way to trade is to use a simple system, based upon forex charts but keep in mind - nothing complicated!
Simple trading systems work best, as they are more robust in real time trading with fewer elements to break.
Learning a trading method yourself is essential, as you will know how and why it works and this will give you:
3. Confidence
If you do not have confidence in what you are doing, you will never acquire the vital trait all traders' need - discipline.
Most traders who trade don't have confidence in what their doing - they follow news stories or other traders systems and when they hit a few losses, they throw in the towel.
You need confidence to allow you to accept short term losses as a natural part of making big longer term profits. No trading system is perfect, so you need to have confidence when you hit a bad spell.
4. Discipline
Confidence will give you discipline the vital trait all successful traders have.
To be successful you must follow your currency trading system with discipline and execute your trading systems to the rules of the system- through good times and bad.
If you don't have the discipline to follow your trading system you don't have one!
Finally ...
Forex trading is 25% method and probably 75% attitude.
The reason most traders fail is they simply cannot accept responsibility for their actions and blame everyone else - from their broker, to the wife for putting them in a bad mood!
If you are not prepared to accept responsibility and create and understand a framework of rules, you have the confidence to follow with discipline, then you need to forget forex trading and do something else.
Forex trading has huge rewards and is a big boys game and not for cry babies.
So if you understand the above and what you need to do and you're up for the challenge, then welcome to the world of currency trading!
We hope our quick review of the currency trading basics above help you on the road to currency trading success.
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Currency Trading Basics - 4 Critical Points to Consider Before Trading - By: kelly price
Here we want to look at currency trading basics and some points which will answer the question: could you win at currency trading? There are 4 points to consider and if you think you can master them, you can enjoy currency trading success.
1. You and Profits
Only you can make yourself successful no one else can.
Sure you can get knowledge from others - but you must learn and apply it by creating your own forex trading system.
A word of warning:
You will see numerous mechanical forex trading systems sold on the net, with simulated track records and none of them will make you money - they all lose. So forget them. The track records are meaningless as they have never been traded - don't be tempted to try them!
You're on your own - but that's the only place to be, if you want to enjoy currency trading success.
2. Working Smart
You don't get paid for effort in forex trading you get paid for being right with your trading signal and that's it.
You can learn all you need to know in about 2 weeks and you're done. It's a fact everything about successful forex trading can be specifically learned by anyone.
This was proved by trading legend Richard Dennis, who taught a group of people to trade in 14 days and they went on to make $100 million! Yes, forex trading is a learned skill - so where do you get the best education?
Well you can get a ton of free info on the net and you should also take a look at some books by the great traders from Amazon.
The best way to trade is to use a simple system, based upon forex charts but keep in mind - nothing complicated!
Simple trading systems work best, as they are more robust in real time trading with fewer elements to break.
Learning a trading method yourself is essential, as you will know how and why it works and this will give you:
3. Confidence
If you do not have confidence in what you are doing, you will never acquire the vital trait all traders' need - discipline.
Most traders who trade don't have confidence in what their doing - they follow news stories or other traders systems and when they hit a few losses, they throw in the towel.
You need confidence to allow you to accept short term losses as a natural part of making big longer term profits. No trading system is perfect, so you need to have confidence when you hit a bad spell.
4. Discipline
Confidence will give you discipline the vital trait all successful traders have.
To be successful you must follow your currency trading system with discipline and execute your trading systems to the rules of the system- through good times and bad.
If you don't have the discipline to follow your trading system you don't have one!
Finally ...
Forex trading is 25% method and probably 75% attitude.
The reason most traders fail is they simply cannot accept responsibility for their actions and blame everyone else - from their broker, to the wife for putting them in a bad mood!
If you are not prepared to accept responsibility and create and understand a framework of rules, you have the confidence to follow with discipline, then you need to forget forex trading and do something else.
Forex trading has huge rewards and is a big boys game and not for cry babies.
So if you understand the above and what you need to do and you're up for the challenge, then welcome to the world of currency trading!
We hope our quick review of the currency trading basics above help you on the road to currency trading success.
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Learn Currency Trading - 5 Common Deadly Mistakes - By: kelly price
If you want to learn currency trading you need to get the right forex education and avoid the mistakes of the losing majority. The mistakes below are common ones but there easy to avoid and you must do so if you want to enjoy currency trading success.
1. Following a Vendor Blindly
One of the most common errors is to think someone else can give you success - they can't.
Most systems sold are junk - but even if you do find a good one, how can you follow it with discipline if you don't know how it works?
You cant to have discipline to follow a system you must have confidence in it so you need to take the time to develop your own trading system or have total confidence in someone else's logic.
2. Trading News Stories
We have more news at our disposal than ever before and all those stories are very convincing - but that's all they are stories. The news reflects the greed and fear of the crowd and they lose longer term - try and trade news stories and you are guaranteed to lose as well.
The best way for any novice to trade is to simply follow the reality of price action on a forex chart and trade it - your trading the truth not an opinion and that is the only way to win.
3. Day Trading
Simply the dumbest way to trade.
It doesn't work as all short term volatility is random and you can't get the odds in your favour.
Don't believe me?
Try and find a forex day trader with a real ( not simulated ) track record that's made real dollars over the long term. Let me know if you find one I have been searching for 25 years and still not found one!
Avoid day trading at all costs!
4. Trying to Predict Forex Prices
If you try and predict prices in advance you're hoping or guessing and that won't get you anywhere in life and certainly not forex trading.
You must not predict wait for momentum to confirm a turn and you can look up how to do this in our other articles - it is essential to confirm a price turn, rather than simply guess when it might come.
5. Markets are Scientific
It's amazing how many people buy into this myth yet it's obviously not true.
Why?
Because if prices did move to a scientific theory, there would be no market, as we would all know the price beforehand and there would be no market. The reason a market moves is because we all have different opinions of where the price may go.
The far out investment crowd love scientific theories and like to follow the works and methods of gurus such as:
Gann, Elliot and Fibonacci.
Well they made no money with their theories in forex trading and neither will you.
So if you want to learn currency trading correctly avoid the common mistakes enclosed and work and getting a simple forex trading system which will help you trade the odds, you can understand and can apply with discipline.
If you learn currency trading the correct way ( and 95% of traders don't ), then you can enjoy currency trading success and create a life changing income - good luck!
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Currency Trading Basics - Answer This Question Correctly or Lose Your Equity - By: kelly price
Here we are going to look at currency trading basics and one specific question any novice forex trader must answer correctly, if they are going to win with their forex trading strategy, so here it is...
My trading edge over the 95% if traders who lose is (defined)
To win you need to have a trading edge - it's as simple as that. Here are some answers the bulk of losers will give and they will all see you lose
- I intend to use a forex day trading or scalping method
- I am going to blindly trade a vendors system
- I like to take expert opinion and trade the news
- I have a forex trading system that can predict forex prices
- I believe the markets move to a scientific formula and will take advantage of one
- I have a complicated system that I have refined in back testing
- I am simply going to buy into support and sell into resistance
All the above do NOT constitute and edge and will see you fail at forex trading - keep in mind 95% of traders lose!
If you learn anything in your forex education it should be that forex trading is not as simple as it first appears and to learn currency trading correctly you must end up with an edge that you can define - no two peoples edges are identical but successful traders know what it is and why it gives them an advantage and they have the confidence to apply it with rigid discipline.
Lets first start with a fact - forex trading is an odds game not a game of certainties.
There is no scientific method to help you determine prices in advance.
If there was we would all know the price and there would be no market! Furthermore, if you try and predict forex prices, you will lose because you are simply hoping and guessing and you should really be trading the reality and confirming every trading signal before executing.
Forget complicated trading system!
Simple systems work best as they are more robust in the face of brutal ever changing market conditions and have fewer elements to break.
Forget the news its just stories.
The news reflects the emotions of the losing majority and if you get involved in trying to follow it, you will lose.
You need to trade the odds to enjoy currency trading success.
The best way is to use forex charts, where you can simply see the reality of price change and you can either forex swing trade or trend follow - but never day trade!
Day trading is the best way to lose money out and doesn't work in the real world.
Forget all the gurus out there with their regular income systems and simulated track records; it's a loser's game.
Forex trading is a combination of a simple forex trading system; you totally understand this then allows you to execute it with discipline.
If you don't have the confidence in your system you will never have the discipline to follow it and these traits come from understanding and knowing a trading edge.
So there you have it perhaps the most important point of currency trading basics to learn but if you do and apply what we have written you could enjoy huge forex success.
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Forex Trading For Novices – Learn This System In Under an Hour and Target 100%! - By: kelly price
Forex trading for novices can seem confusing so here I am going to give you a system you can learn in under an hour and immediately target 100% gains or more – its simple and it’s effective so let’s reveal it.
The first point to make is - although I write articles, I am a trader and have been for 25 years. I am not a self proclaimed expert, so here what I say as I walk the walk, rather than just talk the talk.
I have tried lots of ways of trading and this is the simplest method I use and probably one of the most effective.
I am going to call it Fundo-Tech trading, because that’s exactly what it is.
If you read much of the information on the net, you will hear lots of stories how you can predict currency prices with scientific accuracy, all for a few hundred bucks! Well, call me a sceptic (or a realist) but they don’t work and never will and if they did, people wouldn’t sell them to you; they would be to busy making money.
So what is Fundo-Tech trading?
Exactly what it sounds like, a blend of fundamentals and technical inputs. The first for defining strong currencies the second, for timing entry.
Currencies move to the long term fundamentals, we all know that but their hard to trade, as humans see the facts they’re there for all to see but you, me and millions of others, draw our own conclusions from what we see.
In simple terms we have this equation:
Fundamentals + Human Perception = Price direction.
That’s not too difficult to understand is it?
Now let’s take economies with strong currencies – this is the fundamental bit.
Currencies that rise tend to have good interest rate earnings, strong economies, and budget surpluses and export more than they import.
Let’s take the US dollar first – The American economy is swimming in debt (and so is the population) and the budget deficit is huge and finally, it has to import raw materials that are rising in price.
Now let’s take a strong currency - the Canadian dollar.
Canada has huge amounts of commodities including oil it sells, has a huge budget surplus and has good interest rate earnings.
The Canadian dollar therefore should rise against the US Dollar and it has.
In fact if you check out my other articles I stated this months ago and I made some great gains.
Now you may be saying - that sounds simple!
Well yes and no.
Picking the direction is easy, entering the trade with good risk reward is a different matter however this is not to complicated either, lets look at how to enter correctly and another great currency trading opportunity.
Resistance forms and simply means supply and demand are in equilibrium below the price and when prices break to a new high supply and demand are out of synch.
Notice here, we are looking to buy new highs NOT lows – this is called breakout trading and it’s a fact that most of the biggest moves come from new highs not lows so foreget all the buy low sell high is a great way to trade its not.
A few weeks ago when we saw the Canadian dollar break important resistance - we bought it and enjoyed the ride!
Now let’s look at another opportunity shaping up right now and it involves buying the dollar and our victim is the Japanese Yen.
Why?
Because the yen has interest rates at just 0.5%, a sluggish economy and is a bigger importer of commodities than America.
Last week we saw the dollar consolidate above significant resistance at 117.00 and were targeting 119.00 and maybe as high as 130.00.
We will now just sit back and wait as we did with the Canadian dollar.
We have lined up the technical with the long term fundamentals and timed our entry as the dollar has broken up outside of a trading range. If were wrong, our stop is tight under the recently broken resistance which is now support.
Does this method sound simple?
Yes it is, but that doesnt mean it doesnt make money - it worked in the Canadian dollar and you follow the yen for yourself.
Currency trading is simpler than many people believe.
Currencies do reflect the fundamentals, you just have to careful of your timing but that’s easy enough -use support, resistance and a few momentum indicators to time your entry and you’re all set.
You don’t need to trade often either, these trades tend to last for weeks or months, we did well in the Canadian Dollar now lets see how this one
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Building Wealth – How Anyone Can Raise $100,000 To Invest! - By: kelly price
Money makes money pure and simple we all know that – but most people simply cont have it well here is some good news – if you have $500.00 you can get access to $100,000 to help you build wealth fast – if this sounds to good to be true read on!
A simple way to raise extra money to trade with is to open a forex account online as most brokers will allow you to leverage by 200:1 - so put in $500 and you get $100,000 to trade with immediately.
What use is that to me? You may ask
I couldn’t trade currencies I don’t know how it’s to complicated and risky.
Well, if you have never considered this as a way to build wealth, you maybe surprised that learning to trade currencies is relatively easy and can be learned by anyone.
It’s a learned skill – let me give you a famous example.
In 1983 legendary trader Richard Dennis taught a group of traders to trade, none had any previous experience of trading and in 14 days he trained them and set them off to trade.
The result?
They made him $100 million and went on to become some of the most famous traders of all time and keep in mind none had any previous experience!
Now were not saying that you will become as rich as this group, but it shows that reading is a learned skill ANYONE can master - with the desire to succeed and the right knowledge.
It’s risky though!
Of course it is, but if you don’t take risks you wont make big rewards – pure and simple.
There is a huge difference between being rash and taking calculated risks though - if you know what to do at the right time, then you can cut risk and increase reward.
Leverage can work for or against you - it’s a double edged sword.
If you leverage your money your gains and losses are magnified and in the above example it’s by x 200.
So how do you reduce risk and increase rewards?
The best way to approach currency trading is to use currency graphs and simply follow chart patterns and spotting them is a learned skill.
The key then is, to lock into the big trends, hold them and cut losing trades quickly.
Learning to trade currencies is easy as we have said, the big problem most traders have is adopting the right mindset and this involves tremendous discipline.
Again discipline is leaned skill – if you have the desire to win you will learn it and master it – everything about currency trading is down to your attitude and desire to win its as simple as that.
If you are prepared to work hard, practice the basics and have the desire and confidence to take charge of your destiny, currency trading can open the road to wealth.
Success though is something you must desire and you must be motivated to win and change your financial destiny.
Sure, currency trading is a challenge and with the rewards to be made, you would expect it to be so.
The question is:
Are you up for the challenge?
If you are, then the currency markets if approached and traded correctly, could change your financial future forever - but like all opportunities in life it is up to you to grasp the opportunity.
Are you ready?
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Forex Trading Tip - Use This Simple Rule and Watch Your Profits Soar - By: kelly price
This is a very simple tip but if you use it you could see your profits increase dramatically and it takes into account a major error that a huge amount of forex traders make. Lets take a look at and why it will make your profits soar.
The trading tip is learn the 80 / 20 rule.
If you don’t know what the 80 / 20 rule is it simply states that 80% of profits come from 20% of your efforts and it applies in many areas of business and finance and is very applicable to Forex trading.
Ask yourself this simple question:
How do you earn your reward in Forex trading?
The answer is simple – you get rewarded for being Right about market direction.
You don’t get rewarded for how often you trade or the effort you put in, despite this fact most traders simply trade too much and do trades that have marginal chances of success. They should of course be trading high odds trades only and this means cutting back your trading frequency.
I know traders who trade just a few times a year and compound 100% or more and other who trade everyday and make nothing.
It’s fashionable to trade a lot, as you can see by the amount of day traders.
Now day trading is impossible to win at longer term as you can’t get the odds in your favour but the myht is spread by brokers who make money from frequent traders and vendors who sell Rubbish courses.
They will tell you it increases reward and decreases risk but in reality your 100% GUARANTEED to be wiped out as all short term moves are random and you can NEVER get the odds in your favor.
Other traders like to be in the market all the time in case they miss “a big move” but all they do is lose and others simply like the thrill and like all gamblers they get wiped out to.
If you want to increase your profits simply keep these two points in mind:
Cut your trading back and trade high odds set ups.
An example of this would be, trading breaks of support of resistance that are considered important by the markets. These breaks will then generate high odds trades.
THEN MAKE SURE:
You load the trade up with as much as you can risk – you can risk more on the high odds trades and milk them for all there worth.
Forget the common wisdom of risking 2% per trade if your trading a small account say $10,000 that’s $200! Well if you don’t risk you don’t make Big gains- PERIOD Risk up to 20% on these trades and hit them hard.
If you think about the above Forex trading tip it’s totally logical and makes sense:
Only trade the best set ups and when you see them load them up with as much as you can afford and have the courage of your conviction and trade the high odds trades for all their worth. If you Incorporate the 80/20 rule in your trading, you will increase your overall profit potential and decrease your risk.
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Essential Trading Books - The Way of the Turtle - By: kelly price
The turtle experiment took a group of people who had never traded before and trained them and the result? These traders went on to make hundreds of millions of dollars and become some of the most famous traders of all time.
“The Way of the Turtle” by Curtis M. Faith. Is a book written by one of the turtles themselves and is an excellent insight in what you need to do to become a successful trader. Curtis Faith speaks from the experience of having made $30 million for Dennis the trader who devised the experiment.
The Turtle Experiment
Before we examine the Way of the turtle lets briefly look at the experiment itself.
It all began in 1983, when Richard Dennis had a bet with his long-time friend William Eckhardt. They had a friendly dispute on whether traders were born with innate ability, or could they be taught to be successful. Dennis thought they could be taught, but Eckhardt disagreed – the experiment was conducted and Dennis proved his point.
“Way of the Turtle” reveals the reasons for their success and covers:
The system rules and methodology (it’s not complicated system) it’s a simple system that anyone can understand.
Curtis also explains why even though the turtles all used the same method, some Turtles were more successful than the others.
How to expand and refine the rules the Turtles used to apply them to and succeed in any tradable market.
- How to apply the Turtle methods and rules into your own trading strategy.
- Ways to diversify and ways to reduce risk when trading.
- Perhaps the most important lesson of the book is that it shows the importance of discipline and mindset when seeking trading profits.
- The system the turtles used was simple ( so simple in fact that they learned it in 14 days), yet the results of all the turtles varied considerably in terms of the profits they made.
- It shows how psychologically difficult for most traders to execute a trading method and follow any system.
- There’s also good insight into the difficulty of executing a trading system that has a few large winning trades and a large amount of small losses.
If you learn one key fact from the book, it’s:
Learning a successful trading system is not enough to ensure trading success.
We all know that trading can be learned by anyone but very few traders win longer term and over 90% lose. This is not a question of these traders can’t learn the correct knowledge to succeed its – they cannot apply what they have learned.
You need the mental discipline to execute the system correctly - in order to achieve success and if you think about it this is totally correct if you can’t execute a method correctly with discipline you have no method!
It’s possible to become a successful trader if you have the right method – but you also need confidence, courage and discipline, in order to execute the method. The “Way of the Turtle” will help you understand this link between mind and method better.
You may not become as successful as the turtles – but “Way of the Turtle” is simply one of those books all traders should read.
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Forex Charts - The Fatal Mistake 90% of Novice Traders Make - By: kelly price
Forex charts can make you a lot of money but most traders fail to make money. There is one mistake made more often than any other on forex charts and it’s the one I am referring to in the above title.
Make it and you’re guaranteed to lose. So what is it?
Let’s find out.
The fatal mistake is trying to predict where prices are going to go on a forex chart – You may be thinking well you have to predict – NO YOU DON’T!
Think about it:
If you are trying to predict where forex prices are going to go you are simply hoping and guessing and the forex markets will take your money – you can’t guess or hope, you need to trade the odds but more of that in a minute. Let me give you a vital piece of forex education first.
If you want to win you trade on the reality of what you see – that’s price action. You never ever try and guess what will happen you wait and confirm. Let’s look at an example.
Many traders love to try “buy low and sell high” its accepted market wisdom and its wrong (90% of traders lose so don’t worry about most traders believing it) and if you think about it of course it’s wrong.
Traders see prices coming into support and buy as they think there in at the bottom – yes they are if the support holds!
The important word is “if” it holds.
Most times it doesn’t and they lose.
If they knew how to trade correctly they would wait for the price to test support by moving toward it and watching price momentum turn up and move away – This would confirm support has held and they could enter with the odds on their side.
Of course you miss the bottom but you can’t predict that anyway, so you simply don’t do it – you trade with momentum and the odds.
Now a lot of people believe that markets move scientifically, after all human nature repeats itself and is constant and a lot of vendors will tell you can make regular income and trade tops and bottoms with pinpoint accuracy - You can’t
Consider this:
If there was a scientific theory that worked everyone would know the price in advance and there would be no market!
This is logical and common sense leaving aside the fact that if someone had discovered the secret of market movement they certainly wouldn’t tell you they would be making millions.
This of course doesn’t stop people selling the public ridiculous theories.
The king has to be Fibonacci numbers (derived from the copulation of rabbits no less and nothing to do with finance) which tells you buy the key support levels you will win – try it and you will lose.
Another example is, Elliot wave (lets leave the fact that he died in poor so it obviously didn’t work for him) its supposed to be objective but lets you decide what to do – well, if its scientific, it should tell you exactly what to do!
Trading is an odds game nothing more and if you try to predict kiss goodbye to your equity – this doesn’t mean you cant make a lot of money you can:
All you need to do is trade with momentum when the odds are on your side and you will do what the majority of traders don’t (don’t worry about being different
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Forex Charts - Essential Indicators For Bigger Forex Profits - By: kelly price
If you want to use forex technical analysis, then you will need to look at forex charts to decide where to execute your trading signals.
You will of course need to combine indicators to do this – Here we will give you some essential ones, to help you achieve currency trading success.
Before we look at how to use forex charts correctly, lets make two things clear.
1. Day trading
Do not even try and attempt it. The time frame is to short and all volatility is random, so you have no valid data and will lose. Day trading profits is one of the biggest myths of forex trading – Don’t fall for it.
2. You can’t predict market turns in advance
Forget the far out investment theories like Elliot wave, Fibonacci numbers, cycles etc that are supposed to repeat with scientific accuracy – they don’t. If they did everyone would know the price in advance – so there would be no market.
Right lets move on and look at forex charts and how to get trading signals for longer term profits.
Determining the trend
You have a choice trend lines or moving averages.
The former are better, as you have more precise levels but there is no harm in using moving averages as back up.
Your main aim is to determine support and resistance levels and decide if they are going to break or hold.
Determining Price Momentum
You need to ALWAYS trade in the direction of price momentum. An accelerating price momentum through resistance for example would favour the bulls; if price momentum drops it favours the bears.
There are two essential indicators you can use and if you don’t know what they are learn them – the stochastic AND Relative Strength Index ( RSI) - these are simply great indicators for helping you enter trades and take profits.
Determining Volatility
You need to know about volatility from the point of view of warning pf price reversals and determining targets and there is no better tool than the Bollinger band.
This indicator should NOT be used to generate trading signals but as a warning of trend change coming, or in determining targets there is no better tool.
Using trend lines to determine areas of support and resistance combined with momentum indicators to time entry and exit levels is all you need.
These are objective tools that tell you what to do – Ignore ANY Technical tool that means you have to make subjective judgements i.e Elliot wave or cycles -they will simply see you lose.
The indicators above are essential tools and if you learn about them and combine them, you will have a simple robust method t trend follow or swing trade and ALWAYS trade with the odds in your favour.
If you remember the above in relation to your forex charts, you can achieve longer term currency trading success.
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The Mindset Of The Successful Forex Trader - By: kelly price Forex trading can be learned by anyone, yet 95% lose all their money so what makes forex trading so hard? It's not learning the right information - it's doing so and executing it with the right mindset.
Let’s look at the traits of the really successful traders and what you can learn.
1. Acceptance of Responsibility
All successful traders rely on themselves and don’t believe anyone else can give it to them – so if you’re the type of guy who wants to try and follow a so called guru or buying an e-book and think you will win, then you’re going to lose.
If you accept responsibility and learn what you need to then this will give you the next vital character trait that you need to succeed.
2. Confidence
If you want to succeed, then you need to have to have confidence.
While this may sound obvious, many traders never acquire this trait. They follow gurus or mentors, and think that they can have confidence in them. However, this confidence soon evaporates when losses are encountered.
You won’t follow any method unless you have confidence and confidence is really a key to acquiring the next character trait:
3. Discipline. The key To Success
If you read any of the interviews with the world’s top traders, then you will find the word discipline mentioned all the time.
Discipline is vital to your forex trading success.
Lack of discipline is probably the major reason most forex traders fail to succeed.
You need to have the discipline to follow your method through losing periods, which will lead you to longer term success. Discipline is built on confidence, and without it you won’t succeed.
Keep in mind, that if you don’t have the discipline to follow your method, then you have no method at all!
If you have the above traits you will also be able to acquire to more which will lead you to currency trading success.
4. The Ability To Isolate Yourself
You must be able to rely only on yourself.
Don’t be tempted to discuss your trading with anyone, or give anyone else advice.
You will simply allow your emotions to get involved, and you need to keep them out of your trading to succeed.
5. Patience
Patience is a must in forex trading.
You need to not only have, the patience to wait for the right forex signals to come and not try and rush profits.
You must also have the patience to execute your trading system, through periods of inevitable losses.
The above 5 factors are key traits of all successful forex traders and give them the mindset to accept short term losses and stay disciplined to achieve overall currency trading success.
Confronting the Truth
The forex market forces you to confront truth.
Your opinion counts for nothing; the truth is the market price, no matter what you or anyone else thinks. The market is all powerful and always right and only you can be wrong.
This is why you have to create a framework or set of rules, that allows you to keep your emotions or weaknesses under control and allows you to deal with an unpredictable market and come out a winner.
This is why you cannot find market success through someone else. Traders need to find their own truth and work out how to confront the market - this is why you must do their own research and trust yourself.
If you cant do this and you believe all the people who tell you about how easy forex trading is you will lose your equity and lose it quickly.
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Learn Forex Trading - A Novices Guide to Technical Systems Part 2 - By: kelly price
As a trader for over 25 years I have tried lots of ways to make money and learned forex trading the hard way. Here I am going to look at the basics of building a currency system in simple steps and show you how to get one that not only works but suits your trading temperament and lead you to currency trading success.
The first point you need to consider before devising a currency trading system is what type of trader are you – Do you have lots of patience or do you like a bit more action?
You essentially have two choices, swing trading or long term trend following.
A common error made by most new forex traders is they are tempted by forex day trading but it doesn’t work. The biggest myth of forex trading is that day trading makes money, yet of all the systems sold on the net you will never find one with a real time track record of profits.
The fact is all short term volatility is random and you can never get the odds on your side, so it’s doomed to failure.
Let’s look at the benefits of swing trading:
You are trading moves of about 3 to 5 days, you get plenty of action, get profits and losses quickly and don’t have to have the patience of a long term trend follower.
Long term trend following is hard mentally however it's potentially the most rewarding in terms of cash, but you have the mental turmoil of seeing open equity dip – if you can overcome the mental hurdle you can make excellent gains.
The two basics of any currency trading system are:
You need to be able to spot support and resistance and then you need to enter trading signals in line with market momentum.
Many traders simply hope levels of resistance and support hold or break, however if you want to learn forex trading, you must learn to confirm each and every trading signal before entering.
We will look at the best indicators to use in the next article but what we want to concentrate on now is the most essential part of forex education that traders fail to learn – money management.
This is much more than learning to place a stop – that’s easy. The hard bit ( particularly when trend following) is moving the stop and how to maximize your gains.
If you are trading using support and resistance the stop obviously goes behind the level the opposite way to the way you’re trading. The problem is:
How to follow trends and get out with large profits?
Most traders simply cannot accept a large profit.
They get so excited when they get a profit they move their stop to quickly to protect what they have and then get stopped out by normal volatility. They then get frustrated when they see the trade pile up $10,000 or more in profits and their not in!
If you want to long term trend follow your stop needs to lag a long way behind and you need to have confidence your target will be met. Either exit on a target or accept you will give back a lot of the gain – this doesn’t mean to say you wont make money you will but you will of course miss some.
It’s frustrating but that’s forex trading
With swing trading you should never use a trailing stop always use a target and bank just before the next level of resistance or support.
In the next part of the article we will look at the best indicators to use and how to apply them for profit.
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Technical Analysis - Using Support & Resistance Correctly - By: kelly price
If you are trading with technical analysis one of the keys to making longer term profits is being able to use support and resistance to make profits.
Most novice traders however fail to trade with support and resistance correctly so here are some tips.
1. Support and resistance does not work in short time periods
Most novice traders try using support and resistance in daily periods – Forget it, you will lose.
Why?
Because these levels are totally meaningless.
Trillions of dollars a day are traded by millions of participants and to say that support and resistance is valid in such short time frames as a day or a few hours is laughable.
The only people who take notice of these levels are the small losing minority of day traders.
Don’t believe me?
Ask any day trader for a real time track record of profits using support and resistance and you won’t get one.
Volatility is random in short time frames and therefore any technical indicator you try to use wont work.
Novices try day trading and lose and wonder why, they need to get educated study volatility and standard deviation.
2. Support and Resistance Test and Time Span
Generally you want several tests (the more the better) and gaps between the tests.
The more tests you have the better, this means that traders will generally pay attention to them and when they hold are or broken.
However, when looking for support on resistance don’t just use the daily chart – Look at the weekly chart which will give you the bigger picture.
3. A Great Trade set up
Is when you get critical support and resistance on the longer weekly chart lining up with similar levels on the daily chart – These levels are very significant and you should look to trade them.
4. The Biggest mistake made by novice traders
The biggest mistake made by novice traders is they simply see support and resistance levels and trade into them and “hope” the market reacts in the way they want.
You will never make money this way -you must have price momentum in your favor.
Price momentum must support the way you are going to trade and we will look at this in more detail in part 2 of this article.
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Currency Trading - A Major Mistake Made By Novice Traders - By: kelly price
There is one major error that novice traders make and continue to make.
Its not they lack a sound method, or they lack discipline, or even they can’t pick trade direction correctly it is:
They fail to deal with market volatility and the placing their stops correctly.
How often does this happen.
A trader sees a potential trade enters and then gets stopped out only to see the trade they had picked go the way they thought and pile up thousands of dollars and their not in!
It happens all the time – and the reason many novice traders lose is they have no understanding of how to correctly place and trail stops.
Let’s look at this in more detail.
We all know currencies exhibit long term trends but there are constant and frequent pullbacks within major trends and your aim is to stay with the longer term trend without being stopped out.
Let’s look at some ways to do this when engaging in online FOREX trading.
1. Forget FOREX day trading
All volatility is random in daily time frames so you have no chance of winning, so don’t try.
Ever seen a day trader with a real time track record of profits?
Neither have I and random volatility is the main cause – don’t even attempt it, unless you want to lose your money quickly.
2. Entering the trade and initial placement of stops
Quite simply the best way to enter a trader is to enter on valid breakouts and put the stop behind the breakout point.
Most major currency moves start from new market highs and buying breakouts tends to give good risk to reward and help you catch the biggest trends and profits.
3. Always look for confirmation
If you want to buy a dip don’t predict and hope - wait for confirmation if a change in momentum, this will increase your odds of success dramatically.
Use stochastics to do this – their ultimate timing indicator.
4. Don’t trail stops to quickly
Many traders try to avoid risk so much they create it.
If you start trailing your stop to quickly, you will simply be bumped out by volatility, so hold your stop back and have a target that has to be reached before you even consider trailing your stop.
5. You need courage
Many traders go on about discipline in relation to placing stops, but it’s just as important, or more important when trying to follow a profit.
It takes courage and discipline to hold a long term trend, when pullbacks eat into your open equity, sometimes by thousands of dollars.
You need the courage to take short term pullbacks in open equity in order to catch the big trends that can make you big profits.
Yes you have to be disciplined in restricting losses, but don’t forget this applies to making profits to!
Understand the following to increase profits and restrict losses
I am constantly amazed by traders who trade the market without any idea of volatility or an understanding of such concepts as standard deviation of price.
If you don’t know what standard deviation is, make sure you educate yourself.
An understanding of volatility is essential to making big profits in FX Trading
Your FOREX education should also include trading breakouts (for spotting low risk high reward trading opportunities) You also need to know about momentum indicators ( check out stochastics ) and targets ( study Bollinger bands)
If you want to trade FOREX, then you need to spend as much time on placing and moving stops as you do on getting a method that catches profitable trade direction.
You can have a great method but it will fail if you keep getting stopped out by volatility.
Deal with it, or lose at currency trading.
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Is it really possible to become a professional FOREX trader and make money in just 14 days? - By: kelly price
Is it really possible to become a professional FOREX trader and make money in just 14 days?
The answer is yes, and here we are going to show you how to do this in simple steps.
One of the most inspiring stories I ever read was when veteran trader Richard Dennis took a group of people with no trading experience and taught them to trade in just 2 weeks.
The result was a group of trader nicknamed “the turtles” who went on to become some of the most successful traders of all time.
Richard Dennis taught 3 key principles to his students:
1. A simple technical method, they could easily understand and therefore have confidence in to trade.
2. Rigid money management techniques to preserve equity.
3. The mindset to follow the method through losing periods with total discipline.
Working smart
The emphasis was on working smart not hard, to achieve trading success with no filler.
So lets look at how you can do the same taking the above 3 points and look at what you have to learn.
1. Method
Just like “the turtles” you should learn a simple trading method and it should be technically based.
While there are many ways of making money, you should start with a similar method to the turtles.
Learn about technical analysis and how to use support and resistance in relation to breakouts.
Trading breakouts is simple to understand, simple to apply and it works as well today as it ever has.
You then need to add in some momentum indicators to indicate price strength or weakness.
Look up stochastics and use them.
There is no better momentum indicator to start with.
2. Preserving equity
You need to play great defense and preserve equity.
Trading breakouts sets your stops for you (behind the breakout point) if you only trade valid breakouts you will have the odds on your side for big gains and small losses should the trade go wrong.
3. Trading with discipline
This comes from having a simple method you understand.
If you understand why it works and why it will continue to work, you will have the confidence to trade it through losing periods.
Discipline comes from confidence and that’s why using a simple technical breakout method is best.
Many traders think they should use more complicated methods, but the fact is there is no correlation between how complicated a method is and how successful it is, in fact the opposite is true:
Complicated methods tend to break easier than simple ones in the face of brutal ever changing market conditions.
If you learn a breakout system and acquire mental discipline you can make money and all the information you need is freely available on the net.
You can do it!
Most novice traders don’t believe they can learn to trade on their own, but it really is the best way to do it as you are the only person who can give yourself success no one else can.
Forget the gurus trying to sell you $100 e-book and promising you instant riches – you wont make money that way, Take responsibility for your destiny.
So put in some effort and you will be richly rewarded for your work.
_______________________________
Expensive Beginner Forex Trader Mistakes- How to Learn Your Lesson and Move On - By: forexresource Hi Traders
Learning anything new can lead to mistakes, but making mistakes can be the natural part of the learning process. When learning to trade or invest in the Forex, mistakes can lead to lose of profits and can become expensive. A good investor will understand the market they are using for trading. Whether you are new or experienced, you can still make mistakes. There are common errors that many traders and investors make when trading on the Forex. With a little research, you can learn how to avoid common Forex trader mistakes and how to learn to move on.
Using too much margin when trading or investing on the Forex can lead to costly mistakes. Margin is the use of borrowed money to purchase securities. While it is true that using margins can help you make more money, it can also make your losses bigger. When new investors look at margins as "free" money, they have the potential to lose much more money in the Forex. Margin is not free money and using is too much can end up making more debt than profits. You would not buy stocks using a credit card, so you would not use margins to trade currency. When investors use margins when trading on the Forex, it requires the investor to have to watch their investments much more closely than when margins are not used. Margins should never be used if the investor does not have the experience or time to closely monitor their trades.
Another common, but costly mistake is when investors buy and trade on unfounded tips. This is one of the most common mistakes, even with more experienced traders. It is easy to be tempted to buy or trade currency or even stocks when you overhear someone talking about the next big "thing". Sometimes this can be helpful, but more often than not, it will only lead to losses, not profits. Do not fall victim of investing and trading based on tips you hear or read about on television or on the Internet. If you hear about a trade that interests you, then best tip is to do some research and talk to your broker before trading or investing. You can also benefit from getting a second opinion about a Forex tip before buying, selling or trading any form of currency.
Not understanding how the foreign exchange market works is yet another costly mistake that new traders and investors make. Understanding the terminology and terms used in the Forex is very important to new traders. There are tutorials and free demos widely available on the Internet that allows traders and investors to learn how to use the Forex to their advantage. In addition, it is wise to choose an experienced broker that can help you trade and invest in the Forex. These brokers should know everything about the Forex and can help traders and investor make wise choices. Find a broker that is tied with a good financial institution and that has experience in the Forex.
Also, another common mistake is when traders and investors buy or sell when the rate on currency is cheap. Sometimes this is a good move, but just because the rate is low, does not mean that it will profit the investor. Instead of choosing a currency to buy or trade, it is best to look at all of the factors that affect the exchange rate and look at the trends and history. Avoid buying or selling any currency just because the rate is low. Most of the time, there is a distinct reason why these rates are low. Research the trends of the currency and find out, which ones are the best profit makers when trading on the foreign exchange market.
Last of all, another common mistake that costs money for both new and experienced traders is that they underestimate their trading abilities. Some investors feel that they do not understand the Forex well enough to trade to their fullest ability. Anyone with willingness to learn the Forex can profit with some education and research. It can take some time to learn the aspects of the foreign exchange market, but even new investors can learn how to trade with success.
_________________________________
How to select a Forex Broker - By: forexresource
The decision of which brokerage firm is best for you is as important in the Forex market as it is in the Stock Market. The way of evaluating the various firms differs slightly between the two markets, however. Forex trades do not involve commissions, but they do have what are known as spreads, which is the difference between the price a currency can be purchased and the price for which it can be sold at a given point in time. This spread (which is expressed in "pips") is how the brokerage makes its money, so it serves the same purpose for them as a commission. You can be pretty certain that the spreads vary between brokerage firms just as widely as commissions do in the Stock Market, so investigate this carefully before making your selection.
Most brokerages dealing with the Forex market are involved with large financial institutions where the funds are available to provide sufficient leverage for their clients. It is still important to make sure your firm is reliable. They should be registered as a FCM (Futures Commission Merchant), and regulated by the CFTC (Commodity Futures Trading Commission).
Most firms offer widely varied packages of tools that assist you in making trading decisions and understanding the market better. They provide information and research that is available to you in many different formats. It is wise to take a little time to study these tools, and to find the ones that are most helpful to you. They are going to end up being very important and you need to be comfortable with them.
Look for a firm with a wide variety of account and leverage options. The ability to use the Forex market's advantages in leverage is one of the things that makes it the most attractive to you as an investor, and you want to have the maximum flexibility here. Although there are a few unethical firms operating, a few references and inquires should be able to identify them. This selection process is worth a little effort and an investment of time. It is an investment that is going to the most likely to pay off.
To learn an amazing breakthrough system that can skyrocket your trading profits
________________________________
Forex Platforms:Liquid, Large And Nimble - By: Marvin Young
Foreign Currency:Liquid, Large And Nimble Trade Instruments
What does it take to get started in the arena of foreign currency trading?
I first asked that question about 2 years ago. What was distinctive to me about foreign currency trading (or forex ) was that you didn't need thousands of dollars to get started, and equally important, the markets where these instruments traded were open 24 hours a day.
Of course there was a downside to the appeal as well. While the leverage offered through forex was 100:1, 200:1 and even 400:1 with some online brokerages, one would need to be skilled to make that leverage work in
your favour. Clearly you could possibly lose substantial amounts of money without either: proper training from experts in the field; or alternatively the ability to adopt the "MasterMind" principle - to use
vernacular of Napoleon Hill.
Clearly, there were successful, well documented examples of authorities one could draw upon to substantially increase the likelihood of success. (The step chosen by the author.)
And, equally true, there were services out there which basically would supply a newcomer with buy and sell signals-with some built in gaurantees that these signals were profitable.
Let me step back a little and provide a basic set of facts that will further inform the reader. First, online retail brokerages now exist that provide free software platforms permitting forex trading with less than $1000 startup capital.
Second, as I point out further below, there are clear differences in the level of service, the degree of capitalization of, and most importantly, the built in fees charged by each online brokerage offering forex to the public.
Each firm gets its profits from charging a fee each time a trade is placed . This special fee is termed the "spread". It is the difference between buy and sell quote prices given to the trader when placing the trade. The larger the spread, the more likely that the brokerage has considerable overhead, associates, introducing brokers and the like, who get paid to bring more business to the firm. Further, these spreads are variable with many firms, and are generally larger across the less highly traded currency pairs. (Each trade is in fact not a simple buy or sell of one currency, but the exchange of one currency for another-termed a "currency pair".
Whether you "buy" or "sell" you are engaged in enacting a transaction of the first currency with respect to the second. If you "buy" the EUR/USD, then you are exchanging US dollars for Euros on the transaction. To close the trade so opened, you reverse the transaction. You sell the EUR/USD. ).
The more highly capitalized firms ( see http://www.cftc.gov/marketreports/financialdataforfcms for more on capitalization by brokerage) can and do offer tighter spreads (minimal fees) per transaction. The
more highly capitalized firms however may not always offer the highest leverage. Sometimes it's a tradeoff- a firm may be well capitalized with tight spreads, and may offer highly leveraged accounts .
At other firms, the capitalization may be less than top 10 status, with larger spreads, and equally high leverage.
You want to learn as much as you can to get started with actual
demo trading accounts. (Most online brokerages will give you a limited
demo account to get started.)
CENTRAL FACTS ABOUT FOREX
I.) Foreign Exchange Markets Trade close to $2 Billion Daily
II.) Foreign Exchange Markets are open 24Hours/day and
depending on the brokerage up to 7 days /week.
III.) Forex Trading accounts come in two sizes -
a) standard accounts with $1000 or more in trading capital
b) mini accounts: some firms offer startup accounts for less
than $100; while other firms can get you started with $300 or more in trading capital;
IV.) Some Trade brokerages provide their own trading software platform;
All software platforms will permit multiple currency pairs to trade.
Some but not all software platforms will allow custom programmed
entry by users.
Here's a good tidbit to alert you to a one very useful feature. Some platforms give volume of transactions directly as an indicator. This is very helpful because it serves as a confirmatory indication of breakouts. One can trade successfully without volume (using substitutes), but the direct knowledge of it is very helpful.
The CMS Forex brokerage platform for example gives over a dozen currency pairs to trade, allows programmed trading, and it will permit you to start with a demo account.
If none of this is new news, then you're probably looking for
an online broker. I can suggest a few, each with customizeable
software suites, ability to open standard or mini accounts, and
other support. Here are two :
(The CMS Forex referrer page provides a way to list the author (marvin l. young) as your referrer should you choose to trade with that brokerage.
Enter your name, and email in the "friend" part, then enter the author,
marvin young, along with my email: GAppSoftware@juno.com
in the remaining or upper fields of the referrer page. )
To emphasize there are differences among online brokerages, keep in mind that U.S. based firms all must register with the CFTC, and have some NFA
based registration number. (Commodity Trade Advisor-CTA, National Futures Association-NFA) CFTC based regulation is only incumbent upon US firms. International firms in many cases will have licensing through regulatory authorities issued from thecountry of operation;
You can find U.S. registered brokerages listed at the Commodity
Futures Trading Commission site. Total capitalization for each firm is listed. The more capitalized the firm, the easier they can withstand any changes cftc may require in capital requirements going forward.
More On Software and Platforms can be found at my references below.
If you prefer to just get Automated Trade Signals :
Here's a way to get automated trade signals, up to 4 times a day for
intraday trades, or once a day for Daily trades:the founders of this
service indicate they use intermarket analysis, with neural programming to
input a variety of data leading to signal generation: http://marvlyfx.tripod.com
More On Technical Indicators
For more about successfully using Technical indicators (RSI, MACD , etc.) plus
a copious supply of references to successful Forex traders:
you can contact the author for additional reference information.
Though the above "cross-based trade entry" method is simplistic, you get the idea. You test, in this case
the moving average of closing prices; "cross" is a specific method available
in some software platforms, which evaluates two parameters or "inputs";
parameter 1 is "mov(CLOSE,10,EXPONENTIAL)"-and refers to the moving
average of a Close price, with 10 sample data points, and with exponential
weighting of the signal; parameter2 is similar, except the sample data
point length is extended to 25 data points; When moving average1 crosses
above moving average 2 from below, then the "BUY" order is executed;
We can add other qualifying tests, or filters, to more specifically define
when, how, at what price, and under what conditional stop settings such an
order might be placed.
You'll always wanted to test your trading program within a demo
account, and you'll want to look at performance over several
years of previous data. Most platforms will allow you to do that.
Really good platforms will have integrated account managment
tools (as does the cmsfx.com platform), which will indicate your
trading performance. However some management tools are
of greater value, because they will show performance, yearly
tabular performance, profitability, return on investment,
and will in some instances show standard deviation in profit,
on a yearly basis.
A broadband connection is helpful, though not essential to place trades. Some
platforms are suited for Dial-up connections. Given the choice, broadband is better.
Broadband will clearly handle data throughput faster, and give faster data interpretation.
You'll get better performance with at least 2MB of RAM on your
system, and at least a PIV system.
For Programmed Trading Optimization
a) One well known expert suggests optimize your programmed
trading for profit taking even when 3 std.dev. from mean profits.
(That is, even when the parameters you've chosen produce poor
results---i.e. are > 95% worse than your mean profit taking performance)
then you still make money.
b) Optimize over several years prior to current data--meaning 3 or 4 year
periods, several times removed from current data, and then walk
up to current data, one month at a time, continuing to optimize
c) Optimize for trading exits-consider using some multiple of
several std.dev. from the mean, for criteria setting on exit of
of a trade---this will improve performance; or, some suggest
the use of Fibonacci measurements to project retracements,
and further price movement .
d) Test whatever signal generation method you develop
versus a basic moving average crossover variety, to gauge the performance premium gained.
Foreign Currency ETFs ,Options And Futures:
Clearly Definable, Limited Risk
Another avenue some choose to gain exposure to Currency Markets
occurs through ETFs (Exchange Traded Funds ), as well as Futures markets
and Options on Futures. As of this editing (10/2008) over 1000 ETFs have
come into existence, with a remarkable breadth of exposure possible.
In fact, since the total number is increasing, it becomes necessary
to use assistance programs (such as QEtfList) to more easily
identify ETF trade symbol and sector.
QEtfList may be had via:
ETFs are instruments that combine the exposure of multiple securities into
one tradable, sector-singular instrument. ETFs are much like mutual
funds, except you get exposure to specific sectors without mutual fund-like
commissions.
Currency ETFs are now available, whereby one may be exposed to currency
markets, although with the drawback of less leverage .
Options on ETFs give the trader a clear, well defined risk, based entirely
on the premium paid to inact the option. Thus, the trader knows entirely
on execution of the option trade what the downside risk will be.
Futures market have begun as well to trade in currencies. The International
Securities Exchange for one (ise.com) lists Futures on the Euro (EUI), the
British Pound (BPX), the Japanese Yen (YUK) and the Canadian Dollar (CDD).
Other exchanges offer full fledged Futures contracts on the major currency
pairs, with means to convert futures values in real time into equivalent spot
market rates.
I will be uploading some downloadable reports, by which those who
would like more information can be better informed. Please check back
from time to time, as this is an ongoing work.
The wealth of resources out there is too numerous to list in one
page. What I will do is attempt to summarize some of what is available for
your continued growth and success.
Disclaimer: This article is not an endorsement to buy or sell a specific currency, stock, option or future. All currency trading involves risk.
Future performance is not entirely determined solely by past performance.
Consult competent professional advisors before trading.
_________________________________
Forex Platforms:Liquid, Large And Nimble - By: Marvin Young
Foreign Currency:Liquid, Large And Nimble Trade Instruments
What does it take to get started in the arena of foreign currency trading?
I first asked that question about 2 years ago. What was distinctive to me about foreign currency trading (or forex ) was that you didn't need thousands of dollars to get started, and equally important, the markets where these instruments traded were open 24 hours a day.
Of course there was a downside to the appeal as well. While the leverage offered through forex was 100:1, 200:1 and even 400:1 with some online brokerages, one would need to be skilled to make that leverage work in
your favour. Clearly you could possibly lose substantial amounts of money without either: proper training from experts in the field; or alternatively the ability to adopt the "MasterMind" principle - to use
vernacular of Napoleon Hill.
Clearly, there were successful, well documented examples of authorities one could draw upon to substantially increase the likelihood of success. (The step chosen by the author.)
And, equally true, there were services out there which basically would supply a newcomer with buy and sell signals-with some built in gaurantees that these signals were profitable.
Let me step back a little and provide a basic set of facts that will further inform the reader. First, online retail brokerages now exist that provide free software platforms permitting forex trading with less than $1000 startup capital.
Second, as I point out further below, there are clear differences in the level of service, the degree of capitalization of, and most importantly, the built in fees charged by each online brokerage offering forex to the public.
Each firm gets its profits from charging a fee each time a trade is placed . This special fee is termed the "spread". It is the difference between buy and sell quote prices given to the trader when placing the trade. The larger the spread, the more likely that the brokerage has considerable overhead, associates, introducing brokers and the like, who get paid to bring more business to the firm. Further, these spreads are variable with many firms, and are generally larger across the less highly traded currency pairs. (Each trade is in fact not a simple buy or sell of one currency, but the exchange of one currency for another-termed a "currency pair".
Whether you "buy" or "sell" you are engaged in enacting a transaction of the first currency with respect to the second. If you "buy" the EUR/USD, then you are exchanging US dollars for Euros on the transaction. To close the trade so opened, you reverse the transaction. You sell the EUR/USD. ).
The more highly capitalized firms ( see http://www.cftc.gov/marketreports/financialdataforfcms for more on capitalization by brokerage) can and do offer tighter spreads (minimal fees) per transaction. The
more highly capitalized firms however may not always offer the highest leverage. Sometimes it's a tradeoff- a firm may be well capitalized with tight spreads, and may offer highly leveraged accounts .
At other firms, the capitalization may be less than top 10 status, with larger spreads, and equally high leverage.
You want to learn as much as you can to get started with actual
demo trading accounts. (Most online brokerages will give you a limited
demo account to get started.)
CENTRAL FACTS ABOUT FOREX
I.) Foreign Exchange Markets Trade close to $2 Billion Daily
II.) Foreign Exchange Markets are open 24Hours/day and
depending on the brokerage up to 7 days /week.
III.) Forex Trading accounts come in two sizes -
a) standard accounts with $1000 or more in trading capital
b) mini accounts: some firms offer startup accounts for less
than $100; while other firms can get you started with $300 or more in trading capital;
IV.) Some Trade brokerages provide their own trading software platform;
All software platforms will permit multiple currency pairs to trade.
Some but not all software platforms will allow custom programmed
entry by users.
Here's a good tidbit to alert you to a one very useful feature. Some platforms give volume of transactions directly as an indicator. This is very helpful because it serves as a confirmatory indication of breakouts. One can trade successfully without volume (using substitutes), but the direct knowledge of it is very helpful.
The CMS Forex brokerage platform for example gives over a dozen currency pairs to trade, allows programmed trading, and it will permit you to start with a demo account.
If none of this is new news, then you're probably looking for
an online broker. I can suggest a few, each with customizeable
software suites, ability to open standard or mini accounts, and
other support. Here are two :
(The CMS Forex referrer page provides a way to list the author (marvin l. young) as your referrer should you choose to trade with that brokerage.
Enter your name, and email in the "friend" part, then enter the author,
marvin young, along with my email: GAppSoftware@juno.com
in the remaining or upper fields of the referrer page. )
To emphasize there are differences among online brokerages, keep in mind that U.S. based firms all must register with the CFTC, and have some NFA
based registration number. (Commodity Trade Advisor-CTA, National Futures Association-NFA) CFTC based regulation is only incumbent upon US firms. International firms in many cases will have licensing through regulatory authorities issued from thecountry of operation;
You can find U.S. registered brokerages listed at the Commodity
Futures Trading Commission site. Total capitalization for each firm is listed. The more capitalized the firm, the easier they can withstand any changes cftc may require in capital requirements going forward.
More On Software and Platforms can be found at my references below.
If you prefer to just get Automated Trade Signals :
Here's a way to get automated trade signals, up to 4 times a day for
intraday trades, or once a day for Daily trades:the founders of this
service indicate they use intermarket analysis, with neural programming to
input a variety of data leading to signal generation: http://marvlyfx.tripod.com
More On Technical Indicators
For more about successfully using Technical indicators (RSI, MACD , etc.) plus
a copious supply of references to successful Forex traders:
you can contact the author for additional reference information.
Though the above "cross-based trade entry" method is simplistic, you get the idea. You test, in this case
the moving average of closing prices; "cross" is a specific method available
in some software platforms, which evaluates two parameters or "inputs";
parameter 1 is "mov(CLOSE,10,EXPONENTIAL)"-and refers to the moving
average of a Close price, with 10 sample data points, and with exponential
weighting of the signal; parameter2 is similar, except the sample data
point length is extended to 25 data points; When moving average1 crosses
above moving average 2 from below, then the "BUY" order is executed;
We can add other qualifying tests, or filters, to more specifically define
when, how, at what price, and under what conditional stop settings such an
order might be placed.
You'll always wanted to test your trading program within a demo
account, and you'll want to look at performance over several
years of previous data. Most platforms will allow you to do that.
Really good platforms will have integrated account managment
tools (as does the cmsfx.com platform), which will indicate your
trading performance. However some management tools are
of greater value, because they will show performance, yearly
tabular performance, profitability, return on investment,
and will in some instances show standard deviation in profit,
on a yearly basis.
A broadband connection is helpful, though not essential to place trades. Some
platforms are suited for Dial-up connections. Given the choice, broadband is better.
Broadband will clearly handle data throughput faster, and give faster data interpretation.
You'll get better performance with at least 2MB of RAM on your
system, and at least a PIV system.
For Programmed Trading Optimization
a) One well known expert suggests optimize your programmed
trading for profit taking even when 3 std.dev. from mean profits.
(That is, even when the parameters you've chosen produce poor
results---i.e. are > 95% worse than your mean profit taking performance)
then you still make money.
b) Optimize over several years prior to current data--meaning 3 or 4 year
periods, several times removed from current data, and then walk
up to current data, one month at a time, continuing to optimize
c) Optimize for trading exits-consider using some multiple of
several std.dev. from the mean, for criteria setting on exit of
of a trade---this will improve performance; or, some suggest
the use of Fibonacci measurements to project retracements,
and further price movement .
d) Test whatever signal generation method you develop
versus a basic moving average crossover variety, to gauge the performance premium gained.
Foreign Currency ETFs ,Options And Futures:
Clearly Definable, Limited Risk
Another avenue some choose to gain exposure to Currency Markets
occurs through ETFs (Exchange Traded Funds ), as well as Futures markets
and Options on Futures. As of this editing (10/2008) over 1000 ETFs have
come into existence, with a remarkable breadth of exposure possible.
In fact, since the total number is increasing, it becomes necessary
to use assistance programs (such as QEtfList) to more easily
identify ETF trade symbol and sector.
QEtfList may be had via:
ETFs are instruments that combine the exposure of multiple securities into
one tradable, sector-singular instrument. ETFs are much like mutual
funds, except you get exposure to specific sectors without mutual fund-like
commissions.
Currency ETFs are now available, whereby one may be exposed to currency
markets, although with the drawback of less leverage .
Options on ETFs give the trader a clear, well defined risk, based entirely
on the premium paid to inact the option. Thus, the trader knows entirely
on execution of the option trade what the downside risk will be.
Futures market have begun as well to trade in currencies. The International
Securities Exchange for one (ise.com) lists Futures on the Euro (EUI), the
British Pound (BPX), the Japanese Yen (YUK) and the Canadian Dollar (CDD).
Other exchanges offer full fledged Futures contracts on the major currency
pairs, with means to convert futures values in real time into equivalent spot
market rates.
I will be uploading some downloadable reports, by which those who
would like more information can be better informed. Please check back
from time to time, as this is an ongoing work.
The wealth of resources out there is too numerous to list in one
page. What I will do is attempt to summarize some of what is available for
your continued growth and success.
Disclaimer: This article is not an endorsement to buy or sell a specific currency, stock, option or future. All currency trading involves risk.
Future performance is not entirely determined solely by past performance.
Consult competent professional advisors before trading.
________________________________
Trading Forex- overtrading. - By: Mike P. Kulej
Entire libraries have been written and published on a subject of trading mistakes. Just about every trader with some experience has his own list of pitfalls. They can vary from under capitalization to over leveraging to lack of general market education. While the list can be very long, few mistakes make the list on consistent bases. One of them is overtrading.
It is easy to say that, but when exactly does overtrading happen and how do we define it? More importantly how do we recognize it and prevent it from happening? Not one simple answer will be applicable to all traders, as it can only be determined in light of persons' trading style.
Perhaps the easiest type of overtrading to recognize happens to traders who use clearly define systematic approach. In other words mechanical trading systems. If you are using software generated signals to trade or some other form of auto trading and you start taking more and more trades outside of your system, you are probably ovetrading. This happens usually during period of time when the system is under performing. Since all systems go through weak periods, it might easily happen to everybody. Good news is, this is easy to notice and correct.
More difficult to pinpoint is overtrading happening to discretionary traders. Those who do not use mechanical systems are generally speaking trading in a discretionary manner. However, even here traders follow some strategy. These could be price breakouts, reversals, times of day or many, many other possible set ups that trigger a trade. It's good to look at a number of trades say from week to week, analyze both entry and exit points and, of course, results. If you take more and more trades, with slipping results, you might be overtrading. Traders often tell themselves they are “optimizing” their strategy, or employing new method. If that's the case, you can always open additional account to trade another approach. That should make it easier to notice any problems, like nonperforming system, not following your rules or overtrading.
Day traders who start leaving position open overnight or find themselves sitting in from of computer longer and longer, are almost certainly overtrading. Just because Forex can be traded 24 hour, doesn't mean it should be. Determine the time of the day most suitable to your lifestyle or fitting your trading strategy and stick to it. Around the clock trading availability is not a trading necessity.
Trading too many markets at once. There really is no need for an individual trader to have an open position in 15-20 pairs at the same time. First of all, this uses up available margin collateral very quickly. That can easily lead to a margin based liquidation if enough positions turn against you. Also, this kind of “dart board” approach implies that trader analyzed all those crosses and has a well developed strategy for all. In most cases it very unlikely.
Yet another form of overtrading is always having an open position. This suggests, that trade opportunity is ever-present and one always knows what it is. That is simply not possible, furthermore it exposes trader to a constant market risk. Trader who is always in the market is very likely not pursuing well defined trading plan.
Overtrading ranks as one of the most common trading pitfalls. Thankfully, it's also the one that is most easily avoided. Unlike intrinsic market risk, this one can be controlled by an individual. Periodical review of trades can show if you are trading more than your trading plan calls for.
_____________________________
The Undisciplined Trader - By: Leroy Rushing
The undisciplined trader is likely to lose more than can ever be gained. Discipline is at the very basis of success in the market because traders need to be consistent in order to yield consistent profits. Granted, striking it rich every once in a while seems great, but consider the gambler than wins $50,000 one trip out of 50 and loses $2,000 every other time. Instead of profiting, they come out very much behind.
Trading goals
With discipline should come a respect for your own trading goals. Your trading goals should include elements such as how much you want to earn, how much risk you can handle, and most importantly, how to generate profits. In life, we’re taught to do what we want, rather than picking a career based solely on earnings, but in trading, the successful trader picks trades on how much they can make, rather than how much they’ll enjoy taking it. Trading goals will help you better define why you’re trading and hopefully add an element of discipline, as we know the only way to meet most goals is with disciplined investments.
Unable to stand with what we believe
Many traders lose their principles because they do not see an immediate result and have very few reasons to continue down their own path. In many cases, this is due to a lack of education on trading topics, a void in understanding how trading works, and why the long term results are really what counts in the end. Traders that lose hope should consider taking a few classes to prepare for the ups and downs of the market and look into an online, live coaching solution. An online, live coaching solution is better than any book or text on trading largely because it can provide the encouragement to continue. Because trading is so heavily based on our own emotions and feelings, we often need something more than just a wall of words to comfort us through each trade.
Become disciplined again
Trading education and resource programs commonly stress maintaining a solid approach to the financial markets. Sticking to your own trading plans and proven strategies is the only way to produce consistent profits; otherwise we’re throwing darts rather than placing positions. Discipline tells us that proven strategies ultimately pay more in the long run than they lose – traders must never lose hope that a system isn’t working due to just a few bad trades. Sticking to your own proven strategies rather than the whim of emotions will help you improve your trading just for the sole reason of consistency and discipline. Stick to your proven strategy, and you’ll soon conquer your own trading goals
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Are Moving Averages Really Simple to Use? - By: Leroy Rushing
Moving averages are used by amateur and professional traders alike for very rewarding results. Finding moving averages that work for you might be a difficult task, but after finding the “perfect pair,” moving averages provide huge results with little work.
Moving averages can make up a whole strategy
Many profitable traders have built proven strategies around a few moving averages. Whether in an uptrend or downtrend, moving averages are a great way to identify the major trend while placing positions that are set for the highest profits.
Moving averages can be used in a variety of ways. Many professional traders use moving averages to smooth out a price over the long term to ascertain a reasonable price, while others use a combination of averages to find when the market is entering a reversal. Regardless of the technique, moving averages provide for great profits when combined with other day trading strategies.
Moving averages are some of the easiest technical indicators to use because they are the easiest to understand and can be used in practically any market type: uptrend, downtrend or sideways trend. Moving averages are simply a mathematical calculation of the average market price over the X amount of days preceding the current bar. Essentially, the calculation is just a “running average” of the price for comparison to the current price or other average prices for the long term.
Many different ways to use moving averages
Traders have adopted many creative techniques for use with moving averages. They can be used as a trendline, showing both support and resistance, or to show just a basic average price. Moving averages are also used by some professional traders as a cross to show when the market is ready for and uptrend or downtrend after a long time in a sideways trend.
Finding a cross pair of moving averages can be difficult, but not impossible. A trader first needs to find two moving averages that move together to show the high and low points of a chart. Good moving averages, when crossed, will alternate between buy and sell signals. Finding a good pair usually includes using a moving average between 2 and 20, coupled with another moving average between 21 and 100. Profitable traders utilize a moving average cross between a small number and a much greater number to show short term reversals against the long term trend.
All traders should use moving averages
Whatever the application, moving averages deserve a spot on a trading platform. Many traders have luck using trendlines as a way to show long term trends, while others use them as a way to find reversals and key resistance. Either way, moving averages really are simple to use both for amateurs and professional traders alike.
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