Tag Archives: Trading

Forex Trading Articles

Forex Trading Success – Why This Group of People Often Become Millionaire Traders

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There is a group of people who tend to make the best traders and their not mathematicians or College educated, they have a skill that anyone can actually learn and their very successful. The group of people I am referring to are…

Professional card players who are good at Blackjack and poker and the exact same skills you need in these games are the ones you need in Forex before we explain why lets dispel one of the biggest myths about Forex Trading:

Forex Trading is Complicated

To enjoy Forex trading success does not require you have a college education or have a complex Forex trading strategy or knowledge of maths and the reason is simple – Forex trading is simple and if you make a system to complicated it will break in the ever changing brutal world of Forex Trading.

Mathematics doesn’t help, because markets don’t move to certainties, you are only dealing with odds and probabilities and that’s why card players are so good at Forex trading.

Here are the reasons card players make such great Forex traders.

1. They are Patient

They wait for the right hand and only play when the odds are in their favour. Contrast this with the bulk of Forex traders who are always in the market or trying losing strategies like scalping. In Forex Trading you don’t get rewarded for trading often, you get rewarded for being right.

2. The Ability to Fold

A good card player will pass hands by when the odds are not in his favour and he is also happy to fold when in a hand, if he doesn’t think he will win. He keeps his losses small and he doesn’t mind taking them, as he knows his time will come.

Most Forex traders on the other hand simply can’t do this and run losses or get frustrated, as their emotions get involved.

3. Courage at the Right Time

The good card player knows when a good hand comes up, he needs to maximize his potential and will milk as much money from it as he can. They are prepared to bet big amounts and hold on with discipline and win.

Contrast this with the average Forex trader who banks his profit early or bets 2% and thinks he is going to make a lot of money. In Forex trading, you need to hold and profit from long term trends and have enough riding on them to make a good profit.

4. Discipline Discipline Discipline!

You have heard about how important it is in Forex Trading and it is to take loss after loss as the market hurts your ego and makes you look stupid is hard. Most traders cant do – Professional card players know it’s the key to success and are mentally prepared to do this and know they will hit a home run.

Keep it Simple and Trade the Odds!

Forex trading is simple and always has been and the big difference between winners and losers is the discipline to keep losses small and bet big amounts when the time is right.

That’s why card players often become multimillionaire traders – there not interested in ego, being clever or complicated – but being able to make money and that’s why this group enjoy Forex trading success.

Forex Trading Articles

The Importance Of Forex Trading Education

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If you want to succeed in any endeavor, you need to have persistence and dedication. Even your daily life requires it because if you’re the type of person who is quite lazy and wants to goof around, you’ll attain nothing of importance in your life.

Ever since you were a little kid, you were already taught with the value of good education. From your nursery days, until you finally graduate in college, you have dedicated many years to get a good education. But it doesn’t end there.

Each time you encounter a new endeavor, activity, or thing, the first to come into your mind is to learn about that particular thing or activity. So you see, no matter what we do, education continues. And this is especially true with forex trading.

Statistics have shown that over 94% professional traders lose a lot of money every day in forex trading alone. But don’t be discouraged; in fact why not use that piece of information to strive hard to get a forex trading education.

The financial market changes by the minute, or even by the second. Who knows which currencies are a good buy and which aren’t. Most traders, specially the starters, believe that they can predict what is about to happen in forex trading. But you see there is more to predicting the market; you need to educate yourself still.

First things first, you must have a forex trading system which contains the key elements, namely: money management, risk, and execution. If you have a well developed system, which gives a lot of weight to money and risk management, over time you can actually carry on draw downs while expecting consistent returns.

Forex trading is not just about buying low currencies and then selling them when the price is high. Profitable traders can teach you more than just discipline, because you also need to learn about detachment. Ask a professional trader to show and guide you how it is done.

You must have the proper mindset in order to be a successful forex trader. To achieve this, your capital should have a positive return. It is not all about profits especially when you’re just a beginner. You should first determine if you have a reasonable return of your capital.

Most successful forex traders have undergone some sort of education. Since forex trading is a high risk endeavor, it is not wise to instantly jump into the trade.

If you purely rely on experience and instinct, you may not likely succeed in forex trading. But if you have undergone a forex trading education, you are more capable to handle demands and the stress that comes along with the trade.

Through forex education, you can learn all about the market mechanics, reading the forex chart, how software works, how it is closed, the right time to bid, and many more. It is the best possible route to take before plunging into forex trading.

The FX market is volatile, and you can understand the situation better if you know how to read charts. It will be easier for you to understand the different reasons behind these shifts, and can greatly help in minimizing the risks that you are going to undertake.

The very first things that you’ll learn in forex trading education are the basics. It includes margin concepts, order types, rollovers, bids, and leveraging. Aside from that, you can also learn about fundamental and technical analysis. And lastly, you should learn about trading psychology which can teach you about patience, discipline, and commitment.

It is also good if you can learn about the financial market’s history. And knowing the past mistakes made by other traders will teach us how to avoid such circumstances. You can get a forex education online or in a traditional class.

Having a forex education is an added advantage compared to those who haven’t had any. This is especially helpful for starters, and even for those who have been in trading for some time.

Most professional traders highly recommend some form of forex education. With a little background and knowledge about the trade, it is a sure fire way to succeed in this line of trade. Instead of making wild guesses, why not take a forex education class, and make educated decisions when doing the actual trade.

Forex Trading Articles

Understanding the Two Primary Types of Forex Trading

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In forex trading, there are two primary types of forex trading strategies. One of these forex trading strategies is based on a fundamental analysis and the other is based on a technical analysis. As a forex trader you will need to integrate both of these techniques in your complete forex trading system.

The first primary type of forex trading strategies is fundamental analysis and this trading technique pertains to the economic and political conditions that may affect the currency prices. Forex traders use fundamental analysis to research information about economic policies, inflation, growth rates and unemployment rates. Traders accomplish this by using news reports about the areas where the currency they will be trading on. This information helps to provide a big picture of the economic conditions that will affect specific currencies. When dealing with fundamental analysis you will come to learn that the two more important fundamental indicators are international trade and interest rates. Other indicators will include, Durable Goods Order, Producer Price Index, Consumer Price Index, Purchasing Manager’s Index, and retail sales.

The second primary type of forex trading strategies is technical analysis. Technical trading actually takes into account the fundamentals. Technical analysis also factors in the greed and the fear of the people who will influence currency prices. Technical analysis looks at both inputs that make up the price, simply looking at the forex charts and lets that tell them where to execute their trading signals. When traders use technicals for plotting the entry an exit target prices into the forex market, they will supplement their findings with fundamental analysis. The upside to forex technical trading is that it’s much less time consuming and you are more likely to keep your emotions out of your trading. Technical analysis let’s you trade on reality, you will trade on the truth of the market price and not what your feelings say the market price should be.

While you will learn that both types of trading strategies are important for profitable and successful trades, you will also learn that traders tend to lean towards one or the other type more or so. When you incorporate the technical style of trading, you must be prepared to deal with mathematical concepts that are necessary to manipulate currency pricing data and when you incorporate fundamental analysis you must be ready to deal with many economic factors that will be necessary to base your trades on.

The most successful forex traders combine both fundamentals and technicals when trading. As a technical trader, you should understand what news events are being released and how they could potentially affect your trades. A good example would be if a currency appears to heading into resistance on a currency chart and one of those countries are expected to make a major news announcement, it would be good practice to stay out of the market until after the news event. Then once price has settled down, you can analyze what this data means to your bias and take the appropriate action.

General Forex

Best Forex Broker Spreads – Selecting the Best Online Forex Broker For Your Trading

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Best Forex Broker Spreads

When deciding on a Forex Broker you need to think about the way in which you will be using your Forex account. These days many traders, especially beginners, will use automated systems to enhance their trading returns. Therefore it is important that you select a Forex Broker who is sympathetic to their use.

The difficulty when trying to employ an automated trading system is in finding a Forex Broker that will accept their use. Many brokers will have an official or non official policy on the use of automated Forex trading systems on their platforms.

This policy is likely to be stricter the more successful the robot becomes. Increased success brings increased use, which in turn eats into broker profits. To combat this Forex Brokers employ various tactics to make it difficult to trade automated Forex systems.

While some will reportedly close a trader’s account if they suspect a robot is being used, others use more underhand tactics to disrupt their use. A common tactic is to raise the spread during quieter market sessions when automated robots are more likely to trade. While this doesn’t actually prevent the robot from being used it can make it difficult for them to find trade entry points. This is particularly true of the many robots that are reliant on a low spread as part of their strategy.

And of course by raising the spread on trades taken, a bigger commission is earned by the Forex broker, leaving less profit for the trader. Best Forex Broker Spreads

Some Forex Robots will try to prevent the Broker from detecting that they are being used by offering a form of key protection. This will need changing frequently and is not an ideal solution. Ok so the broker may not be able to detect that a robot is placing the trades but this will do nothing to overcome the issue of increased spreads which effect the time of day rather than the actual mechanism of trade execution.

When selecting a Forex Broker to run your automated system on it is important to take account of the tactics employed. For this reason it is best to look for a broker who accepts the use of automated Expert Advisors and the strategy it employs. Selected Brokers will allow the use of EA’s, hedging and scalping strategies on their platform without penalty.

However this is only half the solution. There is no point in settling for a broker who accepts the use of automated systems and then puts up the spreads at the time of day that they are most likely to be used.

The second part to selecting a Forex broker is therefore to make sure that you keep an eye on the spreads. A low spread is good but make sure it remains that way at the times when your system is looking to trade. Be wary of the broker increasing the spread at times of low liquidity. In some instances, dependant on the strategy employed, it can be advantageous to look for a broker offering guaranteed fixed spreads. In this way you have a known constant to your trading. Best Forex Broker Spreads

Forex Trading Articles

Forex Trading Advice: Get Off to a Profitable Start

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There are a lot of people looking to get into the Forex market now that are looking for good Forex trading advice. After all, trading Forex is a great way to make money through currency trading, regardless of the economic climate. There is real money to be made currency trading, and it is not just for the high powered investor either.

So, if you are looking to get into the Forex market like I was, let me give you some common sense advice. No, this is not going to be complex investment strategy or sophisticated market indicators. (Quite frankly, the way I trade I don’t need to become an expert on all that stuff). This is just some simple things you can do to make generating consistent profits in the Forex market as fast, stress free and profitable as possible.

Forex Trading Advice: Be Realistic

Yes, there is a lot of money to be made in the Forex market. Regardless of the economic times, currency is rising and falling in respect to one another. Even in the best of times this happens. The trick is the be able to trade in a way that consistently produces more winning trades than losers.

So, don’t look at currency trading as a gimmick, or get rich quick scam. It,s not. Trading Forex is serious business and there is tons of money to be made (or lost) in the currency market. Be realistic about your goals. Understand that creating great wealth is a long term goal. Keep a cool head and you’ll do fine and can be amazed at the results.

Forex Trading Advice: Start With A Demo Account

Always test things out with a Demo account. I don’t care if you are convinced you have the perfect Forex system. Test it out first with a Demo account. Then if it performs well, invest money in the strategy.

I know you are excited to make money currency trading. But keep in mind, no system or trading strategy is perfect. You will make winning trades and you will make losing trades. The trick is to have everything work out in your favor in the end. So, test everything first with a Demo account to make sure before you put any real money on the line.

Forex Trading Advice: Start With A Small Account

The more money you trade, the higher the potential for profit. But the higher the risk as well. This is a balance you will have to determine according to your financial situation, goals and needs. But I recommend starting small.

You should have already tested everything with a Demo account first. But the dynamic changes when real money is in play. It is very exciting, but you are also vulnerable to things like greed, fear and lack of confidence. You can curb those feelings somewhat by starting with a small account until you get used to the emotion of currency trading.

My Best Forex Advice: Use A Proven Expert Advisor

I don’t know about you, but I have other things to do in my life. I don’t care how profitable Forex trading is, I can’t devote 24 hours a day from Monday to Friday to making it work. This is why I use an Expert Advisor. Basically, this is a computer script that is attached to the Forex Trading Platform you are using (like Metatrader4). This script keeps track of the currency market and makes trades for you based on a set of predetermined indicators.

Using an Expert Advisor doesn’t only save you a ton of time, they can be more profitable as well. Imagine, using a computer program set up by real Forex professionals that trades based on market conditions… not emotion. I use an automatic Forex robot…. and my biggest Forex Trading advice is that you do too.