Category Archives: Forex Trading Articles

Forex Trading Articles

Forex Trading Hard Truths – You Will Fail in Forex Trading if You Lack These

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Most People think that Forex Trading is easy and able to make quick money in a short period of time. This is one of the reasons why only 5% of the traders are successful and the majority of the 95% fail in the Forex market. Besides that, a lot of people lack a mindset that is essential for successful Forex Trading. Below are the 4 factors that most people lack of:

1. Discipline – This is a very important factor. Whether you are able to maintain successful Forex Trading in the long run will depend on this. As a disciplined trader, you have to follow the rules of a Forex Trading system and you do not break them. But on the other hand, you do not react to any signals appeared in the trading system blindly, you have to also understand the Forex market conditions. E.g. You may not want to go long on GBP/USD, when there are weak economic concerns about the U.K. market.

2. Trading Psychology – The inability to control the greed factor could lead to a downfall of your trading career. Always be satisfied with the profit target that you have planned and forget about the losses that you incurred in a failed Forex trade, there will always be more trading opportunities. Another bad habit of trading psychology is the Fear of losing a trade, meaning people may cut losses earlier or later. Leave it all to the target profit and stop loss that you have set, which means that you are consistent in everything you trade.

3. Money Management – Forex Trading is also about how good you manage your money. Do not trade all your capital, but only the amount that you can afford to loose. Plan on how much are you willing to risk per trade. I would recommend trading on 1% to 5% of your trading capital per trade. This ensures you have enough money to trade Forex when you loose some.

4. Consistency – If you can be consistent in the above 3 factors, then you should be making profits in Forex Trading, and consistently. A Forex trader can make a huge sum of profits in a short period of time, but if he/she lacks consistency, I can guarantee that the trader won’t make a successful trader in the long haul.

I understand that as a newbie trader, you may find it tough to follow the above 4 points. I have gone through that too. This is why Forex Trading is not as easy as one may think. But by learning to abide those rules and following my Forex Trading guide, which teaches Forex system trading, I can be sure that through hard work and determination, you can be one of the successful traders as well.

Forex Trading Articles

Forex Trading Traps – How You Can Avoid These 4 Top Frauds in Forex Trading

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Forex brokers should be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC) and a NFA member. The CFTC and NFA were made to protect the public against fraud, manipulation, and abusive trade practices. Never make a check or bank wire payable to anyone other that a FCM registered with the NFA.

1. Doing Research: It is most important to thoroughly research Forex trading, and any companies you may be thinking of trading forex with, before making any kind of investments. Be sure to check out any claims made by a company, and make sure they are indeed members of one of these organizations, before even thinking of dealing with them. Some people just park their hard-earned cash with some forex trading organizations without first doing research on that company. It is a risk.

2. Stay Away From Promises That Sound Too Good to Be True: Those Get-rich-quick schemes, including those involving forex trading, tend to be frauds. There is no easy way of learning how to trade forex and earn consistent profits everytime. Always remember that there is no such thing as a “free lunch.”, you will really need to spend some time to learn forex basics. Some big investors invest with a large amount of funds, which are never to be seen again if deposited with those schemes.

3. Avoid Any Forex Company that Assures You Large Profits: Be extremely wary of those forex trading companies that guarantee profits. Nobody can offer sure guarantees where currency trading is concerned. In many cases, those claims are false. Learn to trade forex by yourself with a forex trading guide or ebook will be good enough, then slowly make your way up. The following are examples of statements that are most likely are fraudulent:

“Guaranteed to make a ROI of 40-50% within few days.”
“You will reach a million dollars fast in forex trading.”
“Make $5000 in forex trading every week!”
“You don’t have to learn how to trade forex, it’s all automated.”
“You will never lose again in forex trading.”

4. Avoid promises with little or zero risk trading: The guarantee of risk-free forex trading is another fraudulent claim. The fact that more than 90% of people failed in forex trading means there are risks in losing. the currency market is not the place to put any funds that you cannot afford to lose. No can will know how the markets will be performing in the future. Therefore, it’s either low risk or high risk trading, and NOT NO risk! Anyone who suggests that forex trading is risk-free is likely to be a liar or fraudster.

For those new in forex trading, you will find the contents in my free ebook very useful as there is free forex trading system for you. And for advanced traders, you will also find value added stuffs inside the ebook, so try not to be attracted to those claims which can make you a lot of money, learning and trading by yourself is the best.

Forex Trading Articles

Creating a Forex Trading Plan

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Creating A Forex Trading Plan
 
Despite what you have read, all of the promises there is no system that will make you an instant millionaire in forex trading.  You can increase your chances of success by implementing a forex trading plan and to protect you from going broke.

When you start to dig deep into the Forex markets there are three simple time frames in which you can trade Forex.

      –     Short Term

-          Medium Term

-          Long Term

 All of these strategies have their own advantages and disadvantages when it comes to Forex Trading. No one strategy is better than the other.  

1. Short Term

Or as the Forex trader is known as the scalper and they are going to be trading very quick trades often buying and selling currencies back and forth many times throughout the day. Leveraging is required here to both make a profit and also protect your investment.

2. Medium Term

The medium term forex trader will hold the currency from one day to one week. The big advantage of the medium term trader is that profit can be made on the least amount of capital invested. This is looking at more established trend lines and trading with wider stops.

3. Long Term Trader

The Long Term forex trader or investor  can hold the currencies from weeks to months and even years if they can see a direction for that currency. Leveraging is also required here as well as short term trading to both make a profit and also protect your investment

Where traders make the biggest mistake is start out as a short term trader, the trade will go against them and they then decide to hold on to this currency trade until it turns around so they are forced to become a medium term trader. What will normally happen is they will end up with a lot of bad trades and ultimately end up broke. So whatever your strategy is trade it and stick to it.

Tools of the Trade:

When trading on the Forex Markets most traders use Technical Analysis for find trades. There are a number of technical analysis strategies that you can to help you become a profitable trader.
Technical analysis can be used to monitor many indicators as well as the all important price activity. When you get to know more about your personal needs in Forex market, you can get programs that will bring together large amounts of the data that you want included in your analysis. You will be able to customise and organise your plans for your personal investment strategy.

The other advantage of being a long term trader is you isolate yourself from the huge swings as the markets are open for so long.

Every single Forex Trader should use the golden rule of using stop losses, as they will help you to protect your capital.

The take profit order is the same as stop/loss but will stop the order when it has reached the level that you have set to reap the benefits. It is a dilemma because you do not want to curb your profits by putting a take profit on your order but unless you watch your account all day, the currency may drop like a stone and you may lose it all. It’s better to take little and often.

Time to Trade, the advantage of the modern age is the internet, mobile phones where you can trade from anywhere in world. You can set up accounts with a broker, even use a demo account until you feel comfortable. When selecting a Forex Broker remember finding a great Forex Broker is an important as selecting a winning trade. If you are uncertain who is a great Forex Broker, visit the CFD FX Report as they have recently researched all the brokers to find who they believe to be the best Forex Broker in the market. They are some excellent education lessons to be learnt from them as well.

So if you wish to learn more on Forex Trading feel free to visit us to gain more knowledge on the Forex Trading.

Forex Trading Articles

How-to Use Forex Trading Leverage

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Forex trading leverage is used to significantly increase the returns that can be provided on an investment. In Forex, investors use leverage to profit from the fluctuations in exchange rates between two different countries. The forex trading leverage yields one of the highest returns that investors can achieve in the investment market.

Although the ability to earn significant profits by using forex trading leverage is substantial, leverage can also work against investors. Here are 7 tips to achieve success with forex trading:

1. Do not trade without stop loss point.

2. Do not focus too hard on achieving a certain target. Nobody knows which way the price is going.

3. Always use 3% of money management at most.

4. Try one strategy at a time and strict to that rule for at least 6 months. If you are really strict to the rule and the number of win is less than the number of loss, don’t use that strategy anymore.

5. Do not trade on news. It’s really unpredictable.

6. Do not quit after a few losses or a low profit margin.

7. Don’t trade when you are not in a good condition. Your physical, mental and emotional state will have a direct impact on your Forex trading result.

The last tip has a significant influence on forex trading leverage but is frequently overlooked and underestimated. A unique approach to trading must be used for you to achieve success with forex trading.

You must understand the psychology that can affect the result of the forex trading leverage. You should know how to handle the moments of doubt, when following the opening of the trade, and the market goes awry. It will determine the outcome of your forex trade.

When you see the market moving against all odds and logic, your emotional self cries for an immediate position reversal (‘short’ from ‘long’ and vice-versa), in a complete disregard of your own trading plan.

Even though all of your training books, videos and mentors have pumped the “trading plan supremacy” into your brain, your basic instinct is to be cautious and change course.

Experienced traders have a sixth sense, an ‘unseen analyst’. The ‘unseen analyst’ is based on experience. Yet every experienced trader also is aware that conditions can and will change in a heartbeat.

Over time, every forex trader learns how to juggle the contradiction of their emotions with their brain in order to maximize their forex trading leverage return. They also utilize the many options available to maximize their Forex trading leverage, instead of keeping all of ‘their eggs in one basket’.

To lessen the ‘pain’ of the learning curve of the becoming a successful forex trader, an automated forex system can have significant advantages over discretionary trading.

The automated trader removes the fear and greed you will experience when trading live manually. Or if you are an experience forex trader, you will appreciate the benefit of adding an automated system to maximize you forex trading leverage. One of the many benefits is an automated forex trading system allow your trades to be made at any time of the day or night, regardless of your presence.

Pick your systems carefully to maximize your forex trading leverage return and you will increase the chances of making the profit you would like to make. This is due to the fact that these automated computer programs can make completely objective decisions when it comes to trades – unlike humans. Regardless of whether you are a novice or an experienced trader, the automated forex system will increase your Forex trading leverage return.

To learn more about automated trading programs visit theautomaticforextradingsystem.com now.

Forex Trading Articles

Start Forex Trading with These Tips

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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.

 

More often than not, it is those who get into Forex trading without having an understanding of the market that take sizeable losses; however even the most experienced traders are not immune to the risks. Just as on the stock market, you need to go into Forex trading with some knowledge of the market and with excellent 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.

 

There are many Forex Brokerages that have software and have demo accounts that you can signup with.  Take advantage of these free demo account and become familiar with forex trading.  Don’t rush your training; it would be a big mistake.

 

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.

 

You can make or lose a lot of money on the Forex market, but having the best software can reduce your risks and increase your profits. Be sure to try out different trading software by creating a demo account with brokerages. This way you can evaluate the software they offer and decide if it’s right for you.

 

Since there are a lot of Forex brokerages out there and each uses different Forex trading software, try out several different ones before you decide and start trading. Look for software which provides performance as well as being easy to use.