Friday, November 27, 2009

6 Reasons To Trade Forex Now

Well for those of you who don’t know what FOREX is , it stands for Foreign Currency Exchange Market . Basically it’s buying and selling currencies and making a profit on the rise or fall of one currency against another . It’s a 24 hour five day a week market , and generates $3.8 trillion a day in trades.

Ok lets get down to the six reasons why you should be trading FOREX now instead of leaving your money in a bank earning cents on the dollar .

1: Demo Account Paper Trade

A demo account or paper trading as it's also known allows you and your robot to practise without risking any money . This way you gain experience and a feel for trading , its also a great way to see how your robot performs. Yes you get a preview of the profits you can make ,what other business offers this ?

2: Profit Potential

After you have done the paper trade and learnt more about the market , you will see why people are making so much money on the Forex market. You can start with a small investment and in some cases watch it double every month. With a solid plan before you start trading your earning power will be limitless.

3: FOREX Your Flexible Friend

Working and just putting you money into a bank account will see small increases in your investment. However Forex trading can explode your earning potential. Trade at a time and place that suits you and no stock or physical goods to worry about. You can buy and sell within minutes making an instant profit in an up or downward trend.

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4: Fluctuating Prices

Forex is known as a liquid market as it's a cash only market. Well imagine the market as giant waves rising and falling and you can make money on the falling or rising wave . Of course there is a risk of you making losses as well as gains so keep this in mind when surfing on the Forex waves.

5: Now The Little guy Can Get A Piece Of The Pie

With the vast improvements in Forex Trading Robots and the cost of entering the market being very reasonable , you don't have to be Bill Gates to start trading. For a small investment you can have your own robot trading for you twenty four hours a day.So where ever you are in the world with access to the internet you can watch your profits grow.

6: Leverage

Leverage is borrowing to invest more in a trade than you have in your account . For example to trade $100,000 of currency, with a margin of 1%, an investor will only have to deposit $1,000 into their margin account. The leverage provided on a trade like this is 100:1. So 1% profit in a three hour trade would produce a profit of $1000.

Well as you can see forex is an amazing opportunity to make money , and you can get in at the ground floor. What you need to know now is what is the easiest and most profitable way to enter the market . Well there are some great Forex trading robots like Fap Turbo , Forex Megadroid , Forex Ambush .

After a few easy steps these robots will do all the trading for you twenty four hours a day .

The Five Basic Rules for FOREX Trading

Yes it is worrying starting your journey into FOREX trading .The rules and methods of trading can seem like a lot to deal with . Of course you will learn many things along the way , like which currency pairs perform the best and trends in the market.

There is however key rules and methods you should be aware of in order to keep loses to an absolute minimum and maximize profits. You will avoid many pitfalls as well as recognize opportunities that will boost your profits in the FOREX market.

These are the four rules/methods we will cover :
  1. Don't Over Leverage Your Investment
  2. Quit When Your Ahead Know When That Is
  3. Do your Research Before Making Trades
  4. Stop Loss Orders Protect Yourself From Large Losses
  5. Consider Getting Trading Robot That Will Save You Time and Money

  • Don't Over Leverage Your Investment
It's so easy to get caught up in the buzz of FOREX trading , However Leverage is a two edge sword. Leveraging is basically trading more money than you have in your portfolio . For example If you have $2000 in you account some brokers will allow you to buy $50,000 of a currency .

Its better to get the know the market over time than take unnecessary risks. Don't get carried away as you need a steady well thought out approach to make a long term consistent income with FOREX trading .

  • There Is A Time to Quit - Know When It Is
When your riding high on a profitable trade ,many people don't want to sell in the hope there profits will just keep on rising . Well values can fall as well as rise so don't get greedy and lose your gains.

However you don't want to cash in to quick and miss those few extra gains. Some trades you make won't be successful. But over time and careful studding the market trends , you will get a feel for when to start and stop trading. Even Experienced traders have a few losses along the way , but over all they have far more wins that losses and you will too.

  • Doing Your Research Before Making Trades
Research is a word many people don't like , because it involves extra work with no apparent benefits . Well in the FOREX Trading market , having an idea of history and current trends can be the difference between winning and losing . Don't treat the FOREX market like a casino because you will lose far more than you win. Do your research.

  • Stop Loss Orders For Protection
Stop loss is part of a system that stops you from losing too much of your investment or profit , basically if the value of the currency falls to the value you set in the stop loss , Stop loss will sell and stop you from losing any more profit .

Stop loss should be st up before you start to trade ,and you need to decide the value that the stop loss activates. The successful traders use this safety method all of the time .

  • Consider Getting Trading Robot That Will Save You Time and Money
Well after reading the four rules above you must be wondering if there is an easier way .

Well yes there is , FOREX automated robot software , not only trades on average better than humans it can also trade night and day with no interaction from you. Real live account studies have shown one particular Robot Doubling Profits every month

Why so Many Traders Fail at Forex

The old battlefields of the middle ages are not gone, they have merely changed form. Hundreds of years ago normal men would set out to build their empires by conquering lands through the force of arms. Today, normal men like you and i set out to build our financial empires by conquering markets through the force of self.

The blood soaked battlefields of yesterday have made way for the cash soaked commercial battlefields of today, with the large private armies of Family warlords making way for large pools of family capital. Just as armies were needed to shape empires of the past, so too is capital needed today in order to put modern commercial plans of conquest into action.

In there, lies the reason as to why many forex traders fail. They go into battle risking too many soldiers (capital) and without the knowledge of tactics needed to win the fight.

Lets look at that again. 1. They risk too much capital, 2. They do not understand Forex markets.

Many traders both successful and miserable have made these mistakes, the main reason for me writing this article is so you can learn this lesson here and do not have to make this mistake and lose money, or at the very least be cautious enough to minimise your losses.

No general will risk a majority of his men in a battle that he has no plan for and where he has no idea about his enemy. So my question to you is, why would you risk your capital in market conditions you know nothing about? Luckily two remedies exist for the forex general who finds himself in this situation.

1. Make it a rule to only risk 1% of your capital in any one trade. This is to minimise your losses.

2. Educate yourself so you can recognise your chance to strike but also recognise when it is neccessary to withdraw. Learn to read the conditions of the forex battlefield. Great generals of the past would spend years learning battlefield tactics, luckily we can achieve this in a couple of months.

So in summary only risk 1% of your capital in any trade, and educate yourself about how forex markets work.

Why You Really Need An Automated Forex Trading Strategy

FX automated trading (Forex or Foreign eXchange), is a type of trading that allows you to set your computer to trade by a set of parameters, and then to a certain extent forget about it. In the meantime, the computer analyzes the stock market based on its programmed logic and makes buy and sell decisions accordingly without any further input from you.

Now I wouldn’t recommend necessarily leaving any software like this running for an extended amount of time without watching it (as you never know what kind of computer bugs can get you), but for many professional traders or scalpers, these programs can prove to reap tidy little profits.

Also, since the FX market is open 24/5 (24 hours a day, Monday-Friday), FX automated trading programs like this can allow the trader to actually sleep on his short-term trades - not always the easiest thing to do if you’re “winging” it!

How do these automated forex trading computer programs work? Anyone who has studied market behavior for any extent of time knows that markets work in patterns, and since history tends to repeat itself, these patterns repeatedly come into play time and time again in the markets. The FX automated trading software’s job is to spot these repetitive high-probability areas from which it can predict the next move.

These predictions are never 100% accurate (there’s no way they could ever be), but programmed into this software is also a system for risk management - which any professional will tell you is the #1 reason for their trading success. By utilizing pattern recognition, and incorporating risk-management, these FX automated trading programs are able to provide consistent profits, day in and day out.

Why are FX automated trading systems so prolific and profitable compared to normal stock market trading systems? The reason is that most trading in the FX market is done because it has to be, not for pure profit. The banks and government entities that provide 90% of the trading volume in the FX markets do it for a multitude of reasons (arbitrage, hedging, loans to other countries), but are not motivated towards profiting off these positions.

Because there must be a winner and a loser on each side of a trade, and the big entities are not concerned about being the winners, this leaves huge potential for the small trader to profit by the proverbial “coins by the wayside.”

On top of that, FX trading systems are affording great amounts of leverage (oftentimes more than 100:1!), while stock margin accounts are limited to 2:1. All of these reasons show why FX automated trading can be an extremely lucrative way of trading for a small investor.

Forex Currency Exchange Market Basics

It is important to know that day trading the Foreign Exchange Markets (Forex) or (FX) adheres to the same concept of other styles of currency trading but differs slightly in the terms of execution, functionality and risk tolerance levels.

In order to avoid the risk of an event happening somewhere in the world that could have an adverse affect on the currency they buy, the trader will sell the currency at a loss if it is needed. A geopolitical event, governmental reports released regarding a countries economy or an increase in the price of a commodity, such as oil or gold are those factors that could cause a decrease to a currencies value.

By day trading the currency investor has substantially decreased their risk of an occurrence out of their control happening and not being able to react to it immediately.

There are two types of a currency day traders system; it could be either manual or software based. Today’s statistics show vast majority on all FX traders utilizes a computer based trading system and this is growing yearly, not only for day traders but all traders. The day trader’s style is mostly based on either signals or trends or a combination of both. They assemble the information in the form of fundamentals, utilization of various charting systems, technical analysis and gathering of new information.

Every professional currency day trader has developed his/her own specific personality towards trading and even might have found another market form they prefer to trade in. A highly volatile market offers the day a huge upside for profits where as their downside risk is controlled and considerable less than the upside gain potential.

They control the downside risk through the use of a Stop Loss (SL,) which the trader will set when initiating the trade or anytime the trade is still open. The SL is usually set very low and this means that even the smallest downside in the currency could force a sale. There is one big advantage that you must be aware of, that it is a highly liquid market where the sale of the currency occurs instantly in most circumstances.

A market where a trend in a particular currency has been established thus ensuring profits is the other type of market day traders like to concentrate on.

“Trend” - means an established movement that is able to be predicted and the day traders usually are the first ones to recognize the trends starting and the first to realize a trend changing.

If you are interested in it you can use numerous commercial Forex training courses and currency trading software systems (that are not expensive!) that have been developed especially for the day trader in order to improve your knowledge and to make you ready for day trading the Foreign Exchange Markets.

Choosing A Forex Broker

Finding the proper forex broker can be a very difficult and confusing task. As trading on the fx market has become significantly popular, tens of new forex discount brokers are starting their broker businesses each month. No wonder that picking the right one could end up as a full-time job. Therefore it is vital for you to determine your requirements to ease up the choosing process and save some time, which you could spend on making healthy profits. learn forex trading

First of all you must write down your demands, like the quantity of your initial deposit and the most preferred currency pairs you would like to trade with. Secondly it is important to decide which trading program suites you best. Some traders favour the MetaTrader platform for its ability to use automated expert advisors for trading or Sierra charts for its fast response but there are web-based platforms available as well, which do not need installation.

The next big question is whether to choose a retail forex broker or an ECN broker. The first one is like a market maker for your trade. They shade prices, change the spread and unfortunately often trade against you! They also have the possibility to manipulate your trading platform which is rather unpleasant and as a result it can end up with huge losses. Market makers advantages are that you can open a trading account with very little money and offer the possibility to trade with little amounts, as well as tremendous leverage. ECN brokers are like interbanks, they do not manipulate the prices and offer a direct linkage between you and other traders. Though ECN brokers have their downside, too: you need a larger deposit to start trading and there are also commissions for trades.forex training

If you are new to currency trading, it is wiser to choose a broker who does not want a large deposit because then you are not risking with everything you’ve got, and secondly it is a bit suspicious if broker wants a deposit reaching to thousands of dollars. So, if a broker accepts your desired deposit and offers a satisfactorily line-up of currency pairs, it’s worthy to take the broker under closer look. If the forex broker is associated with regulating authorities (the National Futures Association, Commodity Futures Trading Commission for the US or the Financial Service Authority for the UK), it is more trustworthy than a broker which is not regulated at all. Years have shown that many unregistered brokers are only interested in stealing traders’ money contrary to offer an honest service.

After completing steps mentioned above you should have only a handful of brokers to choose from. If they are all so-called market makers, compare their pips, on the whole look for reputation reviews which always show whether the broker can handle your trades in the forex market or not.

Finally you should have the dream broker picked out, open a live account and cash in your profit!

Forex Alerts Systems

Trading in the fx market is never easy. At first it might seem like a walk in the park but when your hard-earned money is burning due to some miscalculations and mistakes, trading currencies gains an ominous look and with terrible unfortune you could lose your faith in forex trading and, what’s even more worse, in yourself. So, what to do then? In my opinion the fastest way out of the crisis is to adapt or even create your own working trading system, which will be a future basis of your financial success. learn forex

How could a trading system be a benefit, one might ask. The answer is actually quite simple, a trading system will tell you when to buy and sell the currencies you want to trade, more elaborate systems even signal the stop-loss and take-profit points to maximise the profits.

The main advantage of the signalling system is that it rules out emotions and helps to achieve given goals. Mainly there are two signalling systems, computer (automated) and so-called manual systems. The first one uses different software based indicators which detect the trend and other variables and upon that a forex signal of entry and exit price is born.

The second system is more complicated because you use your own knowledge and understanding of how the fx market is going to react and to which direction the prices are bound to move. The last option should be definitely under great consideration for the reason that automated indication systems are somewhat inaccurate.

The cause of it is its unadjustability to inconstant trends, in other words the market is not a linear line, as the computer sees it, but more as a zigzag. Therefore diverse parameters should be used, but computer-run signal systems use only those indicators that are programmed into them. Furthermore, “reading” the forex market helps to capture its mentality, that is another aspect computers can’t estimate. In tricky market conditions it is absolutely vital to foresee how the large market makers of the forex market (central banks, for example) are likely to trade. And knowing that determines whether you win or crash. forex education

There are quite a few forex signal systems on the web as well. Some are free while others charge their trading signals. In my opinion paying for it is not worth at all and we all know that there are not such things as free lunches. It is much more secure to develop your own buy-sell signalling system, in which case you rely on yourself not on strangers. Although the developing process will be rather demanding, because the goal is to have a system that must trigger over 50% winning signals, but the process itself will give an invaluable experience about the foreign exchange and its trading mechanisms. And the more knowledge you have, the more likely you will be successful in forex trading.

Forex Trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857.

This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars.

Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments.

At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

The market Time: - the market is open 24 hours a day, Sunday to Friday every week, this gives the trader the freedom to work at any time without having to be restricted with opening/closing time as it is a fact in other monetary markets.

The completed transactions:as soon as the trader makes the transaction the deal is completely done with the displayed price at the time, this means that the deal is done at once and not broken into parts which can vary in price as happens in other monetary markets.

The margin system: - using this system enables the trader to make deals the exceeds his/her capital with a percentage of 1 : 500.

The trader should choose a good broker that can provide him/her with all the necessary technical tools to achieve successful trading. The broker should not overcharge the trader or enlarge the difference between the demand/ sale prices.

What is Forex?

“Forex” is short for foreign exchange. Quite often you can meet Forex to be also abbreviated as FX.

Forex trading is quite simple: you buy one currency while simultaneously selling another - that is, you’re exchanging the sold currency for the one you’re buying. Your goal is to buy currency and resell it for a better price - this is where you or your trader or your Forex trading robot are making profits.

Forex trading is done by managed Forex accounts through Forex brokers. Forex accounts are essentially foreign exchange currency accounts. You employ specialized groups that can manage Forex accounts for you.

But in case you have the time and education to monitor currency markets - then you can trade yourself. This is how all Forex traders are doing.

Can One Make Money on Forex without Trading Education?

Well, it is better to have some education. But professional Forex traders invented a nice thing - called Forex robot.

These traders have created special software which is trading (according to the secret trading strategies of these traders) AUTOMATICALLY. You just sit and watch.

That does not mean you are making guaranteed income, because no guaranteed income is possible on Forex. But watch these trading records of one of the best robots - and you will have no questions about a robot to be possible to generate profits. Or another trading robot from the same guy (he is one of the stars of the currency market today).
Even General Laws of Nature


Can Help You in forex Currency Trading?

The statement seems to be astonishing, but recently specific information came out and this information proves that general laws of nature have serious correlation with the way Forex market behaves.

It seems to be magic, but it is not for one simple reason - currency market is basically a reflection of the global economic situation. A specific reflection, but reflection; otherwise why traders are saying that “the market takes it all” - because all actions in bigger or smaller manner find the response on Forex.

So, one guy simply applied specific laws of nature to the Forex market - and he got a very nice system that helps in pointing out the turning points - this is exactly what the current up-and-down trader needs.

More details about the general laws of nature and their usage for currency trading here.
So, Trading without Professional Knowledge is Possible

For every newbie trader - it’s very difficult to predict where a trend or the market will go ahead of time. People have made it their life’s work to try to figure out how to effectively predict market activities. They are using the results of fundamental analysis (overall analysis of the market, economic situation in the world, financial and political updates that influence the currency of a given country) and technical analysis (special indicators that help to correlate the future behavior of the market in specific situations).

You should also understand that Forex market is a complex entity which constantly reacts to the factors on the market and “absorbs” them, resulting in changes of the value for specific currencies.

This “organism” is highly volatile and one should understand that learning a strategy or system does not make one to understand what will happen on the market. That is why in general the aproach about finding “a strategy that works” is erroneous from the very beginning.

There are no magic keys and silver bullets on the market. only professional traders with years of experience and clear vision of what is going on have real chances to make money on Forex.