Tag Archives: Trading

Forex Trading Articles

Global Forex Trading – Trade Globally Now!

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The rise and success of the forex market trade has been the instigating facet leading some of the society’s bigwigs such as private investors and traders to undertake into global forex trading. They have given their high hopes for the continuous development and success of the forex trade and this serves as the beginning of a much greater achievement and triumph for the currency exchange market.

Although there are risk and threats in this market still, the passion of venturing into this global trading has been the main grounds of private investors in giving this trading a shot. However, global forex trading is not meant for everyone even if it gained popularity to great numbers of people. Forex trading isn’t just fitting especially to those who are not well versed and adept when it comes to doing the trade. But with all the revolutionary and modernization of the world, this trade has been opened to almost all people who have the heart and determination to deal with the trade regardless of being experienced or not.

Global forex trading should therefore be well learned and analyzed for this might pose some complexities and dealing over with its entirety is essential. First thing that every trader should know is the fact that each country corresponds to a particular currency. This is a given fact and almost all people know this verity. However, these currencies are never stable and its ebb and flow will incessantly occur so long as the market experiences changes not just internally but also from external factors. Traders have their way of predicting the possibilities of deterioration and improvement of currency and this becomes their basis if they will opt to buy and sell their currencies to generate further takings.

As belongingness and membership becomes one of the major dilemmas, the global forex trading opens its doors to all those aspiring traders who have the willingness to deal with this kind of market. By becoming a licensed trader is not the requisite of being a member of the circle and this should be considered appositely to avoid misapprehensions. Apart from hitting the market globally, this kind of trade runs with a common goal and that is to acquire as much money as possible to generate larger profits.

When you choose to take part of the dealings, you have to make certain that you are equipped with all the necessary things that should be learned by a true trader. The forex trading accumulates to trillion dollar transactions each day and therefore, taking part in the world’s largest trade should be your main motivation. Value your membership for not all people can venture into this trading business.

As a final point, global forex trading is a trade that undergoes a continuing process. You might come across great loss profits during your first venture but as you continue your trade and make necessary adjustments towards beneficial changes and adhere to learned strategies, you will be surprised by how much you’ve become exceptionally successful as you hit the forex market globally.

Forex Trading Articles

Forex Trading Fact – a Startling Fact Which if Understand it Can Give You Success!

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Here we are going to look at a forex trading fact which can lead you to forex trading success, if understand its significance. Here it is…

30 Years ago 95% of traders lost money and the same ratio lose today and the reason this fact is so startling is if you think of all the advances in computers, forecasting methods, the power of software, the wealth and quality of news – it hasn’t helped traders win and this leads to some conclusions:

– Technology is not the answer to market success

– Being clever is not the answer to market success

– Having a complicated forex trading strategy wont help you win

– Forex news will not help you win.

Success in forex trading is not dependant on being clever, being complicated, working hard, or having a forex trading robot, it depends ( as it always as done) on a combination of a simple forex trading system and having the mindset to apply it with discipline.

There are plenty of vendors telling you that you can make money with no effort and follow a junk robot or their predictive advice – but it’s not true, most of the systems sold are junk anyway – but even if you have a good one, its clear – success depends on you! Its you that is the key variable.

The Only Way to be a Winner

Sure you need a sound forex trading system and it needs to be simple so it’s robust. A complicated one will simply have many elements to break – but you have to apply it and this is not as easy as it sounds, as you have to trade through losing periods.

Technology can Never Overcome the Need to do This!

There is a huge market in telling you that technology and advances in forecasting, mean you won’t suffer much drawdown (if at all) but it’s not true.

Even the best currency traders will suffer losses for weeks on end and you must trade through these periods, to emerge a winner.

Anyone who says it’s easy to trade through a strong of losses, hasn’t traded – its hard! You need to keep taking losses and watch as the market make you look a fool – but if you can do it you can win.

Why 95% will Always Lose

Forex trading can be learned by anyone and that’s a fact – but 95% of traders lose and the reason they do is, they believe the easy route to profits sold online or, they have a good system but cant apply it with discipline. They don’t understand to win, you have to lose for periods and maintain your discipline.

Always keep in mind that it’s not the markets that beat the trader, the trader beats himself and that’s a forex trading fact too.

The Route to Success is Simple

If you get the right forex education and have the mindset to succeed, gain confidence in what you’re doing and can trade with discipline, you can do what 95% of traders can’t – and as a result, can enjoy spectacular currency trading success.

Forex Trading Articles

Best Forex Trading Indicators – 4 Simple Effective Ones for Bigger Profits

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Here we will look at some of the best Forex Trading indicators and how you can combine them into a simple robust Forex trading strategy for long term gains…

No single Forex trading indicator works all the time by itself and the way you combine them is essential. Many traders make the mistake of the thinking the more indicators they combine the better – Wrong!

If you do this the system has too many elements to break; you only need a few and your Forex trading system will be simple and robust in the face of ever changing prices.

Right lets build our Forex trading system and look at some of the best Forex trading indicators to help you build a trend following Forex trading system.

First Identify the Trend.

This is obvious by looking at a bar chart but you also want to use moving averages as well. Simple moving averages are great in terms of smoothing out the fluctuations and two great periods to use are first, the 40 day MA to identify the long term trend. Secondly, use the 20 day MA to buy and sell back to in a strong trend and you will find this moving average is excellent for getting in on a trend in motion, with optimium risk / reward.

Spotting the Set Ups

We don’t have time to cover this in detail here but there are a couple of points that are the key to maximizing profits. Firstly, be patient and only trade high odds set ups and secondly, make sure you trade breaks to new highs and lows all the big trends start and continue from them so you need to trade them.

Bollinger Bands – Check Volatility and Standard Deviation

Ask most traders what standard deviation of price is and you will probably get a blank look but an understanding of standard deviation of price and volatility is something that all forex traders need to know about and if you don’t, make part of your forex education and learn about Bollinger Bands.

Bollinger Bands are not used to for market timing – but give you an all round view of volatility price and when you understand this concept, Bollinger Bands can help you in 3 ways:

They can alert you to potential big moves, help set targets and spot market value and entry levels.

Best Forex Trading Indicators for Confirming

When you spot a potential opportunity, you need to confirm the move and make sure price momentum is going the way you wish to trade. There are plenty of momentum indicators but for the last 25 Years I have found the following two the best. There easy to learn and apply, lets take a quick look at them.

The Relative Strength Index (RSI)

A great leading indicator to time your trading signals with. If the RSI supports your view of the market you can use it in strong trends – or when it diverges from the prevailing trend ( from over bought or over sold) to enter trades against the prevailing trend.

The Stochastic Indicator

The best Forex trading indicator of all for better market timing and when combined with the RSI you have a dynamite combination. The stochastic is a simple indicator but is the ultimate timing tool for timing trading signals in my view. If you use stochastic crossovers to confirm your move, you will get the odds on your side. It’s also very effective for timing contrary positions. A stochastic cross, from over bought or oversold levels, against the trend is a highly effective way of getting in on the big contrary trades.

Simple and Effective

There are other great indicators around such as the ADX indicator, MACD and many others but as a blend the above 4 indicators with a bar chart are my best forex trading indicators for profit and they have served me well over the last 25 years.

The indicators are easy to learn, apply and if blended correctly, can add a new dimension to your forex trading strategy.

Forex Trading Articles

Forex Trading Tips – 4 Tips You Must Understand to Win at Forex

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Here are 4 Forex trading tips that if you understand them, can allow you to enter the elite 5% of winners who make big long term consistent profits. Anyone can learn currency trading and win but these 4 points need to understood – here they are…

1. You are Responsible

If you think you can buy success think again, you can’t. Most traders think Forex trading can be done with no effort buy a junk robot with a simulated track record and think they will make the same gains sorry, it’s not that easy. Forex trading sees 95% of traders lose and is not a walk in the park.

While anyone can learn Forex trading, you need to get the right education and skills but first you need to understand what the Forex market and how prices move, which leads to the next point.

2. Understand Markets are an Odds Game

Many traders think you can predict prices and believe so called experts, who say it’s possible. Its not and your predictions will be as accurate as your horoscope if you try. Neither do they move to a scientific theory as many claim; if they did we would all know the price in advance and there would be no market!

You need to understand that winning at Forex, is all about trading probabilities not certainties. You need to understand you won’t win every time and will have periods of losses – but if you always trade the odds, you can make a lot of money. Now let’s look at the type of Forex strategy you need.

3. A Simple System is All You Need

Your Forex trading system should be simple, robust and easy to understand.

Don’t believe anyone who tells you complicated methods are better there not, as they have too many elements to break and science (no matter how clever) won’t help you when you’re trading an odds based market.

Get a simple trading system – it’s easy to do and now we will move onto the final point which is the challenge you must overcome and if you can, you can make huge profits.

4. Discipline is the Key

A method by itself is not enough, you must have the discipline to execute it through periods of losses, until you hit profits again and this can be tough. It’s hard to keep executing your trading signals when the market gives you losses and makes you look a fool. Most traders simply let their emotions and ego get involved and lose.

Being disciplined at all times and employing strict money management, is the key to winning longer term and its not easy but it can be done, if you have confidence in what you are doing and have the right forex education.

It’s Not easy to Win

You can win though, anyone can. The fact it’s not easy to win, means the rewards are huge and you can get your share of them, if you want too.

Forex trading means you have to get the right education have confidence in what you are doing and trade with discipline. Accept this and take responsibility for your actions, and your on your way to Forex trading success.

Forex Trading Articles

Forex Trading – 5 Critical Mistakes Novice Traders Make and Lose Avoid Them at All Costs!

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If you want to win at Forex trading you need to avoid the common mistakes enclosed as most novice traders make them and get wiped out – avoid them or lose money.

1. Trusting a Forex Robot with a Simulated Track Record

It has always amazed me traders fall for this one – they are presented with a track record that Warren Buffet would be proud of AND all for $100! The buyer never has to work again, plug the robot in and make money with no effort, for life. The problem of course is these Forex systems sometimes amusingly called expert advisors, have never made any real money.

All they have support there claims is a back test simulation, which is done knowing the closing prices. Well anyone can do that – but you don’t get to know the price in advance when you trade. If you want to trust a paper back test you can – but don’t be surprised if you get wiped out.

2. Day Trading

Trading in short time frames is popular – but doesn’t work.

All volatility within a day is random – you can’t get the odds on your side and can’t win. All the systems sold that claim to make money, are like the Forex robots above – producing back tests and simulations on paper. Try day trading for real and it’s a different story, regular profits actually turn into regular losses.

3. Believing You can Trade with Little or no drawdown

90% Accuracy, make a monthly income, make 20 pips a day etc great copy – but not based on reality. If you trade Forex you are going to face losses – sometimes for weeks or months. Your challenge is to trade through these periods with discipline, until you hit a home run and hit profits. Most traders can’t do it and throw in the towel early.

Learn this – if you want to win in Forex trading, you need to learn to lose, take your loses and keep them small and stay on course.

4. To Win You Need to Predict

Not a good idea, as predication is hoping or guessing and you don’t get rewarded for that, in any area of life. Most traders dive into soon and should have waited for confirmation of trend continuation or change and then traded but they dont jump to early and get stopped out.

If you want to win, forget prediction and trade the reality of price change.

Do not believe anyone who tells you there is some mathematical law of market movement – if there was they wouldn’t tell you (they would be to busy making money) and also if there was, we would all know the price in advance and there would be no market. Markets move because prices are uncertain not certain!

5. You Need to work Hard and Be Clever

This is totally wrong and hard work and being clever, count for nothing in forex trading only being right with your trading signal and the money you make is how you are judged and the cleverest and hardest working people, don’t always win at all.

You need to work smart not hard, get the right Forex education and then you need to keep it simple! The best Forex trading systems are simple – not complicated and a simple system has a huge advantage, as it’s more robust, with fewer elements to break, than a complex one.

A simple system traded with discipline is the way to win and always has been.

How to Win

So there you have 5 common Forex trading errors – make any of them and you will join the vast majority of losers. If however you get the right Forex education, avoid the above mistakes and understand that a simple system, which trades the odds and applied with discipline is the key – you are on your way to Forex trading success