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Forex Trading Articles

Forex Trading – Why Technology Advances Have Not Increased The Odds Of Success In Forex!

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In forex trading the application of technology and complicated mathematical formulas has not increased the chances of success and here we will explain why and also how you can win with a simple forex trading strategy…

The answer is simple – because forex markets don’t move with mathematical accuracy and if they did, we would all know the answer in advance and there would be no market!

Why You Cannot Predict Forex Prices

It’s a fact that you cannot predict markets in advance and all the people who say you can are wrong. You will see numerous forex robots that tell you can trade on auto pilot and win all the time – but they base there assumptions on a back tested track record – that means knowing the closing prices.

All they do is bend there system to fit the price sequence and make a profit. In real trading though, the same price sequence never repeats again and the system loses and you cannot bend the system rules going forward.

Learn the Odds Trade them and Win Big

Forex trading is an odds game – sure you can’t trade with mathematical accuracy but you can make money just like a successful poker player does. He doesn’t win all the time and has losing periods but he knows, if he plays the odds and uses sensible money management he will win.

Be Complex and Clever and You Will Lose

Complex theories are developed and used all the time but it’s a myth that a complex theory will beat a simple one – it won’t. Simple systems work best and always have because they are more robust with fewer elements to break.

Think about all the advances in computers software and theories, we have had in the last 30 years yet, despite all these advances, 95% of traders lost money in yester year and they still do today. Advances in technology and forecasting simply didn’t change the odds.

This shows that you don’t need to be complicated to win.

Keep it Simple and Win

Forex trading doesn’t require that your clever or make a lot of effort – it requires you to use a simple robust system which you understand and will have the discipline to trade through losing periods, with good money management, until you hit a home run. Its discipline to apply a robust system that’s the key and the system can be very simple

Forex trading is an odds game and will never change, so keeping it simple is the best way to trade. Don’t complicate something that’s simple, accept it and build your forex strategy around the odds and you will achieve currency trading success.

General Forex

Percentage Of Successful Forex Traders – Odds of Becoming a Successful Forex Trader

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Percentage Of Successful Forex Traders

Forex Megadroid is one of the most popular trading robots today, and is continuously supported by more and more traders who have witnessed the power of this trading robot. Being a successful trader requires a lot of time, and experience. Aside from these things you also need to constantly monitor the market trend in order to generate an effective trading strategy. This is the reason why a lot of traders before fail to make a lot of money in Forex trading. The release of trading robots like Forex Megadroid increased the chances of anyone to become a successful trader. This article will show you the things that will give you a successful trading career.

It is true that Forex Megadroid really has the ability to make anyone a successful trader. In fact most of the users of Megadroid have already claimed that they have received more than 95% winning percentage, with an average of 4800% net profit every year. According to them, all you have to do is to install the robot in a Virtual Private Server (VPS), configure it properly, and constantly update its configuration. However, there are still a lot of people who are complaining about the performance of this trading robot. These are the people who were not successful in Forex trading even while using Forex Megadroid. Percentage Of Successful Forex Traders

When you are using Forex Megadroid, always remember that you need to constantly update and change its configuration in order to match your trading style, and to improve your results. If you are simple watching your robot to conduct trades, chances are you will not make a lot of money, and you even lose all of your investment. Always keep in mind that being a trader requires you to monitor the market trend constantly, even though you are using a trading robot. If you do not have time to monitor the market trend, I strongly recommend you to look for another source of extra income if you do not want to lose a lot of money in Forex trading. Percentage Of Successful Forex Traders

General Forex

Forex Technical Analysis – Using Forex Charts for Bigger Profits Part 1

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Here we are going to give an introduction to using forex technical analysis and using forex charts for bigger profits. Forex technical analysis if done correctly is the best and most time efficient way of seeking profits and should be considered as part of any forex trading strategy.

The first point to keep in mind is:

Forex technical analysis is a game of odds not of certainties, so forget about predicting with scientific accuracy, no one can achieve that – but if you understand the following equation, you can make big forex profits:

Fundamentals + Investor Psychology = Price

It is a fact that the fundamentals have an influence on price – all investors have the facts at their disposal but they see them in their own way and this mass of millions of people determines forex prices.

Investor psychology

Human psychology is constant and never changes.

Traders will always be influenced by emotion and these emotions of greed and fear, will push prices to far away from fair value and these price spikes are easy to see on forex charts.

The important point to keep in mind is that investor psychology repeats – and so do chart patterns.

Seeing the Whole Picture

Another very important point to keep in mind with forex technical analysis is that it studies the fundamentals.

All it does is simply assume that in today’s world of instant communications, they show up straight way in price action.

Studying forex charts however does something more:

It studies how investors perceive the fundamentals.

Its is not enough to simply look at the facts, as we all draw our own conclusions from what we see and emotions ensure that investors don’t act logically – they push prices to far ( either up or down) based upon their emotions.

Studying forex charts gives you the whole picture – it reflects the fundamentals and more importantly, how investors perceive them.

When using forex charts you don’t care how and why prices move, you simply look at the reality of price and try and make profits from the moves.

It sounds simple as a concept and it is – but it’s extremely powerful and if you incorporate it in your forex trading system, you can make big profits by trading when the odds are on your side.

Forex Technical Analysis Is Time Efficient

Using forex technical analysis is time efficient, you are studying price and don’t need to make assumptions of where they may go based upon the news – you can see the price as it is and simply trade the truth.

Many traders continually look at news and try and trade off it – but this is hard – the fundamentals are discounted instantly and you have very little chance of winning. Furthermore, if you look at the opinion of others your emotions get involved and any trader who lets emotions dictate their forex trading strategy, is destined to lose

Trading forex charts lets you see the reality as it is – no opinions or guessing and that gives you a huge advantage when trading for profits.

Forex Charting is An Art

Of course, all people use forex charts in different ways and it’s an art not a science.

It is similar to being a ships captain – use your charts correctly and you can get from A – B safely and earn a living; use your charts in the wrong way and you will hit the rocks and drown.

There are many myths perpetrated about using forex charts and if fall victim to them and you will lose.

The good news is anyone can become a successful forex chartist and if you follow basic rules, you can trade with the odds on your side and execute your forex trading signals correctly and win.

In part 2 of this article on forex technical analysis, we will look at basics points to incorporate into your forex trading plan, to be successful and look at common myths regarding forex charts you need to avoid.

General Forex

Spot Forex Trading – Parallel and Inverse Analysis

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Very few spot forex traders conduct any form of parallel and inverse analysis of the major currency pairs an exotic currency pairs to determine the best way to trade the forex market on a day-to-day basis.  Forex traders do this in spite of the fact that it would be nearly impossible to trade the forex successfully not knowing where the overall strength and weakness was in the spot forex across multiple pairs or the entire forex market.

Lets look at some examples. Many forex traders like to trade the GBP/USD and they spend countless hours losing sleep waiting to trade this currency pair even when no trends or parallel/inverse currency pair confirmation is available. Losses occur and lifestyles change.  Forex traders could increase their odds of success dramatically by setting up some forex trade entry rules and examples like the ones shown below.

Example 1 – Only buy the GBP/USD if the GBP/CHF and GBP/JPY are strengthening as well. This would be parallel confirmation that the GBP strengthening across the board. A simple but effective rule.  A forex trader could enhance the rules further by examining the EUR/GBP for weakness. This is inverse currency pair entry confirmation.

Example 2 – Only buy the GBP/USD if the EUR/USD is strengthening and the USD/CHF is weakening. This would be confirming the trade entry with two other currency pairs and verification with across the board weakness in the USD. In either situation you have confirmed the forex trade entry with at least two other currency pairs. Both of these entry management rules would include a stop order.

But this is not what forex traders do. They want to trade the GBP/USD so badly that they “manufacture” a trade, or they want to use “ forex technical indicators” that all conflict with each other, or trade the forex news. This is a mistake and is equivalent to betting or gambling and driven by greed. There is no logic to support the trade entry. This is not necessary because the forex works in a logical way.

Lets look at some other forex trade entry verification examples. Lets say a forex trader prefers to trade the GBP/JPY, you could set up rules for entry as follows: Only buy the GBP/JPY if the GBP is strong across the board based on parallel and inverse pairs, or only enter the GBP/JPY if the GBP/USD and USD/JPY are both strengthening somewhat or alot. In the second scenario the GBP/JPY will slingshot upward at a very fast pace due to the GBP strength combined with JPY weakness.

Or another scenario is for a forex trader only to buy the GBP/JPY if the EUR/JPY, CHF/JPY and AUD/JPY are all strengthening as well, in this case the USD is not in the picture because of across the board weakness in the JPY. Either way you have confirmed the spot forex trade entry with other currency pairs in the same parallel group..

Another example would be to buy the USD/CAD only if the EUR/CAD and AUD/CAD are also rising. Similar rules can be applied to any major pair or exotic currency pair and easily monitored upon entry. In the case of the three CAD pairs, if you also do a careful analysis of forex support and resistance, and you can trade the currency pair with the most pip potential rather than just trading the USD/CAD.

But this is not what traders do, they get stuck trading the same pairs like the EUR/USD repeatedly and wind up justifying a trade when a trade is not there. These forex trade entries are not based on logic they are based on emotional needs. This leads to losses. The spot forex works in a very logical process and you must let the logic work for you. Stop looking at forex technical indicators and start looking at other pairs in the same parallel and inverse groups to support your entries, these are the best indicators available.

Across the board strength and weakness in the 8 major parallel and inverse groups of currency pairs occurs weekly in the forex.  But if you search the internet far and wide you will see that parallel and inverse analysis of the spot forex is rarely and in fact never discussed by forex traders, forex analysts, and forex trade planning services charging hefty monthly fees. People are too busy looking at  forex technical indicators and absolutely no discussion of the market forces governing the spot forex ever occurs. This has to stop or the forex industry and traders will suffer.

It is very rare if nearly non-existent for one forex currency pair to move strong without other currency pairs to confirm the move. This is true for any major or exotic currency pair. If you are “stuck” trading the same currency pairs while the other pairs and exotic pairs are making strong moves its time to look at all of the currency pairs every night for your forex market analysis then pick the best opportunities to trade based on parallel and inverse analysis.

In order to trade the spot forex daily and weekly, you must analyze 15-20 pairs every day to determine the current market forces within each parallel or inverse group of pairs. This forex analysis will lead to less forex trade entries, but more logical forex trade entries, and better methods of confirmation of forex trade entries when the movement starts. Parallel and inverse analysis is the logic behind the spot forex.

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How to Access the Best Forex Training Program

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Forex stands for foreign exchange. It is the largest trading market of the world with an average daily trade of US$ 2 trillion and above. The market is held in high esteem for its long working hours, geographical dispersion and extreme liquidity. A trader with basic knowledge regarding forex trading can easily earn substantial profit in forex market. And to get the knowledge of forex trading, a trader can mull over forex training programs. Following is a brief note about the nature and worthiness of forex training programs.

Forex training programs are available everywhere. Several forex firms have come up with forex training courses which are designed to boost a new trader before he lands in the forex market. The best place to get forex training is online. Just a single click will help you identify forex firms, who specialize in offering forex training programs through online method. With their help, you can get the basics of forex market and learn the ways to combat the odds of the forex market. Online method of forex training is good for newcomer for it helps him to get prepared with nuts and bolts of the trading market.

Except online, a trader of forex market can also avail training programs from traditional classrooms. Several schools and colleges have been established to offer up to date information regarding forex trading to traders. Such training programs will help you get the basics of the forex market from its root. You can get practical experience of the trading market directly from the experts. You can also find quality books on forex trading written by experts from your nearest library.

Experienced professional can also become good source for your forex education. Search out those, who have years of experience in forex trading. They can tell you what matter in the market and when to trade for earning substantial profit. Now, while selecting a forex training program, you need mull over a few important things. It is important for you to be sure about the worthiness of your forex training program. A good forex training should address the basics of the market. It should tell you how the forex market actually works. It should also talk about the risk control measures of fx trading. A good forex training program should also teach you the techniques to manage a forex trading account.

With access to a good forex training program, you get a scope to remain up to date about the latest happening of the trading industry. Here, you get a scope to learn from the masters, who have years of experience in forex market. Forex training is always beneficial for a trader, even if he has a few months of practical knowledge in forex market. And for a new comer, it is a blessing.

Forex is the largest market place of Currency trading. While currency trading in Forex Market or dwelling over currency market, one should mull over the present scenario and future prospects of the country, currency of which he is trading.