Category Archives: General Forex

General Forex

Forex Trading Ways For Success

Trading Forex requires good understanding of the basics and some common ways for the trading. Many people enter trades and fail because they ignore the following points although forex trading is open to all people. The important point to notice is that forex trading like any other business requires good understanding of the basics.

Below is presented four tips that must be followed when trading forex:

1. Don’t use forex robots unless Well understanding them: many people that are new to forex trading can buy the forex robots that say that the person can make many bucks per month with it for long lifetime. This can be attractive to new forex traders and buy it with knowledge oh how it woks. Forex robot sellers say that it will make hundreds of points per month. The point here is that the person buying them must know how they work and know also the basics of the forex trading.

2. Use simple Forex Trading System : when beginning to trade, one can depend on many indicators on the charts in addition to the analyzing the news. Actually, analyzing the news is not necessary to be included I the forex trading strategy. Keeping the forex trading strategy simple will help make money with little risk. Two or three techniqual indicators are good. Complicating the analysis with more techniqual indicators will make the matter difficult. The established strategy must be applied for few weeks or months to test if it works well.

3. Trade with discipline :many people after building the strategy can diverge from it when trading. This is because the trader can trade with just a look at the chart and don’t remember the strategy he built when entering a trade. This can be very dangerous and lose extra money for the trader. The strategy that is built and tested to be well must be followed exactly when trading forex. For example, if the strategy includes technical indicators that consists of the pivot point, the stochastic, and the RSI. The trader must see the all above indicator values met to enter a trade. If two are met and one doesn’t reach the value required to enter the trade, the trader must wait it to reach its value.

4. Don’t Fall for the Myths: There are numerous myths but the major one traders fall for is markets move to science or some higher force and the way to make money is to predict in advance – prediction is just guessing because markets cannot be predicted instead, you should focus on trading the reality of price action. If you want a simple strategy that works, trade breakouts, we have covered this timeless ways to make money in other articles so look them up.

5. Mange well Your Money: many people behave with a random manner when going to buy and sell currencies in their account. The money management control how mush to buy or sell relative to the overall value in the account. It controls also how mush profits to take and how mush losses to afford. Money management is very important like the forex trading strategy.

General Forex

Managed Forex Account – an Explanation

Many people are drawn to the forex market due to high liquidity, 24 hour trading, low startup costs, and a number of other attractive reasons. However, some traders are unable to sufficiently learn or trade currency due to a conflicting full time job or other obligation. Also, many investors like to supplement their existing portfolio without having to learn a completely new market. This is where the “managed forex account” comes in. A managed forex account is an established live forex account funded by the investor, and traded by a company or professional. This allows the investor a reasonable rate of return on an account he does not necessarily have to trade himself, and the opportunity to be a part of the largest market in the world.

There are literally hundreds of companies and investment firms that make use of an investor’s money by establishing a managed forex account. Some of these companies and firms specialize in managed forex accounts, and spend all of their time and effort strictly in the currency exchange. This gives the investor confidence their managed forex account is being traded by a professional currency investor, and gives them a better chance of a steady monthly (or yearly) percentage of return. The returns on a managed forex account have been advertised anywhere from 5% to 20%+ monthly, with a 10% to 40% of the profit as a monthly (or yearly) fee to the company or firm. Alternatively, many companies and professionals may take management fees on the managed forex account even if the account is not in profit for the month.

There are obviously many up sides to a managed forex account. The investor is able to achieve a steady rate of growth without having to spend all the necessary time and effort to trade the money himself. The investing firm or company that provides the managed forex account will take a small portion of the profit for the month or year, still assuring that the account is at steady growth. The forex market is a very liquid market as well, giving the investor a much more flexible means of withdrawing funds from the managed forex account. Also, trading currency allows profit potential in both rising and falling markets, giving the experienced money manager more opportunities to grow the investor’s account.

Two of the major types of managed forex accounts are those traded manually, and those traded by an automated “trading bot”. Trading bots are pieces of software that automatically trade currency based on a hard coded set of rules. A coder will write the system and money management rules into a variety of programming languages to produce software that could provide a more regulated steady rate of return for the managed forex account than the manual trader. This gives the ability of the company or professional to advertise a set rate of monthly (or yearly) growth. Some of the more traditional companies and individuals alike prefer to have their funds traded manually, as the human interaction aspect can sometimes yield smaller drawdowns and larger returns.

As a managed account seems like a very lucrative direction to take in the forex market, some people may still be drawn away from it for a few select reasons. Usually, many commercial brokers and investment firms have a minimum for the account to be traded. These minimums are usually around $10,000, and prove a hefty starting cost to the average trader. Also, many of these companies can (and usually do) promise high returns. In spite of these statements, the majority charge a monthly management fee to your managed forex account. If your monthly return is less than the standard monthly charge, your managed forex account will be in the negative even though before the fee, you were positive. Great care must be taken in selecting your forex investment firm, as to minimize your losses due to weak months.

General Forex

Forex Megadroid Robot – Auto-Trading Explained

Forex, or the foreign exchange market, is a market in which trillions of dollars are traded every day, and it is one that is unstable. Conventional trading has involved the use of a broker to buy and sell currencies for profit. But in recent years, various automated trading systems have developed that are able to enter and complete trades for you. They are known as Forex trading robots, and one well respected robot is called the Forex Megadroid Robot.

Generally speaking, Forex trading can include trading in any of the world currencies. The volatile nature of the Forex market has led to many who consider it as gambling. Currency values change very fast, and the result is that you need some proficiency to have the ability to make profitable trades. You would not find a lot of disagreement if you said some luck is required too.

Over $3 Trillion is traded on the world’s Forex markets every day, which is why an ever growing amount of would-be traders desire a share of the pie. Actually getting a share of that pie is a lot more complex though. Forex currency trading is not for individuals who are frequently indecisive and fearful at heart. In order to profit in Forex you’ll need a good deal of assertiveness, at the same time the belief in one self when you judge a trading opportunity.

This characteristic of the forex market gave some developers and trading specialists the thought of creating a support system that could allow those who are only starting out in the business in order to deal with the competition. Consequently, the modern day trading robots came to be. The Forex Megadroid Robot being the most advanced achievement in Forex robot technology.

Forex robots can be divided into 2 categories. These robot systems are made to help you determine if the price is going up or down. They also help you in deciding whether you are entering or exiting a transaction.

Velocity/Momentum Robots

These robots analyze the price changes, fluctuations and other movement in the market. When these movements are analyzed, patterns are organized and defined. These patterns are grouped together and would be used as a reference when entering a deal or trade.

The fluctuations in the prices is made available, and therefore would help in determining a pattern in the movement of the price. This would help the trader understand the factors that trigger price movement, and at the same time identify opportunities. These trading robots would help you get oriented with the weak and strong points of different markets.

Continuation trading robots

These type of robots deal with averages. They are ideal for Forex markets that show clear trends. This robot would uncover any trends that appear in the fluctuations of a currency pair.

Determining and understanding trading by averages provides flexibility, while at the same time would allow you to trade outside the technical factors of trading.

Both robot types show significant impact on improving Forex trading transactions. Though not all Forex robots can be entirely relied on to finish deals for you without having human monitoring. This is important to remember before trying a robot like The Forex Megadroid Robot, that robots are designed to support the trader, not to replace them.

General Forex

Currency Trading Tips 4 Psychological Threats Every single Trader Should Know About

The mental part of trading better known as trading psychology is regularly overlooked by most traders. Consequently, these forex traders suffer from the psychological manipulation of the Forex market The reality is that the markets and currency prices are an expression of what traders are feeling.

For illustration, whenever Fx traders are feeling doubtful a support or resistance level is formed. The emotions that are felt by the market individuals define what currency prices will do next.

Trading psychology plays an essential role in Forex trading and understanding how your emotions and personality can affect your trading is necessary for success. In this part of my currency trading tips series I would like to discuss 4 psychological threats that you should know about and that can stop you from reaching your financial goals.

Greed:

Greed is one of the primary causes why Fx traders lose money. The good amount of leverage in trading currencies enables Forex traders to produce very fast and large profits, but the same theory is applicable to losses. Just because you have great returns in a few hours on a trade it does not mean you should expect it every single day. For that reason, it is significant to set reasonable targets when you are managing your trading account.

Fear:

Fear is the feeling that tells us to not do things that we feel are far too risky. Fear is an emotion we need in our lives but when our amounts of fear are way too high it may stop us from doing things that are necessary. The primary fear Forex traders face is the fear to lose money. This a usual fear since no one wants to lose money, but it is illogical if it doesn’t let a Forex trader take and manage his trades correctly.

As an illustration, a trader might take a couple of losses and then be too fearful to take the next trades what could be profitable trades that could have taken care of the previous losses. This is an instance of the negative effects of fear.

Hesitation:

Hesitation is understood to be the lack of action because one is feeling skeptical or uncertain. Currency trading can sometimes be extremely fast paced and a trader’s power to respond to the markets will impact their success and gains. Subsequently, hesitating to take action and take advantage of the great opportunities the market has to offer can be very adverse to your trading career.

Ensuring that you never miss out on great trading opportunities because of hesitation can be easily done by just using a strict trading plan and using efficient trading systems.

Uncertainty:

When you feel uncertain you just don’t know or have any idea of what is going on in the markets. Such a thing happens to all traders, nonetheless; not everyone responds the same way. The reality of the matter is that uncertainty is an emotion that can make you make unreasonable decisions, and irrational decisions lead to losses.

The best piece of advice I can give you to fight uncertainty is that “when in doubt, stay out”. I have learned that whenever you are unsecure or uncertain about a trade you are more likely to lose money and commit mistakes.

Taking control of your trading career will require to also taking control of your emotions. The easiest method to take your emotions out of your trading is by using a trading plan, a solid trading strategy, and focusing on the process rather than on the profits.

Best regards,

Jay Molina

Pro Currency trader & Mentor

General Forex

Forex Trading Psychology Learn to See The Line Between The Trading Plan And Your Emotional Impulses

Forex trading market is a very well-known market. It is very important to understand everything about the market before entering into it. You can find many of pivot points, charts, trend lines, moving averages, and all types of the Fibonacci ratios simultaneously with the latest in the trading automation. Any of the forex website publishes all these data or some of these with the myriads of other details, opinions and interviews.

You might also get the support and resistance levels, entry and exit signals, all of which can appear as adequate in decision making process. If you are attentive of the importance of having a strict trading plan to start, then you should be known with the moments of doubt when the following the market goes awry, opening of trade, together with your self-esteem and emotions.

The trading books and videos will help you in knowing the forex trading market. As we trade, all our experiences are increased. Experience is also good for efficient trading. Since the forex trading market is extremely volatile and liquid market, the forex trading market goes on changing and changing all the time. With its unstable nature it is better that the trader should also accept it.

You should take your time to learn as how to understand the charts, preparing yourself accordingly to the economic calendar and make your trading plan to follow it strictly. Your emotions should not be present in the economy of trade.

As you progress along the path of becoming a professional Forex operator, your unseen analyst will start adjusting your trading decisions, silently participating in your trading decision process. Your emotions should never be present in forex trading. In fact, you should not give any place to your emotions in forex trading. That is why it is better to learn to see the line between the trading plan and your emotions impulses.

Emotions have no place in for successful forex trading. If a trader wants to be successful then he must dominate his emotions while trading in forex. In simple words, there should be no sorrow for in a loss and no joy in profit. There should be no joy in profit because if we enjoy the happiness of profit in forex trading then they joy will turn into sorrow when you will not make profit.

The very first step in forex trading for success is emotional control. Without emotional control there will no one to help you in forex. The trader has to himself help his own self from emotions to operate successful forex trading. By this way you can cope with psychological pressures.