Tag Archives: Trading

Forex Trading Articles

Forex Trading – 4 Simple Ways to Supercharge Your Profits

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If you are trading forex, you want to make big profits and if you are new or not enjoying the success you want, then these simple forex trading tips will help you increase your profitability.

Some of the tips below are not commonly held beliefs by the majority of forex traders – but don’t let that worry you the majority lose!

Here are your simple ways to supercharge your profits.

1. Learn the 80 – 20 Rule

If you don’t know what it is then in essence its 80% of your results come from just 20% of your efforts.

In marketing many sales forces see 20% of their clients produce 80% of their revenue; forex trading is similar and for most traders the next statement is true:

80% of your profits come from 20% of your trades.

The fact is many traders trade to much – don’t make this mistake!

Be patient and wait for the best opportunities.

There is no correlation between trading frequency and profits.

Trade less. I know traders who make 100% + annual profits and trade less than once a month.

2. Load The Trade

I hear a lot about risking just 2% if your equity – ok if your trading a seven figure sum – but for smaller traders, taking such a small risk means their guaranteed to be stopped out by normal volatility.

If you have a trade that looks good, load it up.

Risk 10 – 20% and go for it.

This is not being rash, its taking a calculated risk, when the odds are in your favour. Better to trade one great trade and risk more, than risk less on marginal trades, where you’re almost guaranteed to lose.

3. Don’t Diversify

Diversification is the buzz word of the investment community, it can cut risk but it also cuts profits to.

Again the small trader (under $100,000) shouldn’t bother, just pay attention to points 1 and 2!

4. Don’t Trail Stops to Quickly!

A common error. If you do this you will NEVER get a big forex trend profit.

I see people looking for 10 and 20 pips -compete waste of time. When I trade I go for at least a few hundred and on a big trend can bank a 1,000.

I am prepared to trail my stop way behind volatility, that short term can drop my equity – but I have my eyes on the bigger prize.

I use a 40 day moving average a lot of the time and don’t mind giving a bit back at the end. Keep in mind forex trends ( the big ones) last for months or years and if you caught just 50% of them, you would make a lot of money.

As you can gather forex trading with the above tips is all about taking risks – not being rash but taking calculated risks at the right time when the odds are in your favour.

Forex trading involves risk – learn to love it not be frightened of it and forex trading success can be yours.

Forex Trading Articles

Long Term Forex Trading v Short Term Forex Trading

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A lot of forex traders trade the markets several times a day or at least several times each week, but long term forex trading can be equally as profitable, if not more so. You only require one highly profitable long term position to match the hundreds of smaller positions you may take.


Short term forex trading can be highly stressful if done over a long period of time, as you’ve probably discovered if you have any experience of forex trading. You need quick fingers to trade in and out of positions and you need to make decisions quickly regarding entries and exits. You also are often faced with requotes from your broker and will often come under close scrutiny if you place a lot of short term trades with them that only last a few minutes.


Overall it is quite a stressful occupation which is why long term forex trading generally makes a lot more sense. Even if you only trade the 1 hour or 4 hour charts, you will find a noticeable difference in the amount of time you have to make trading decisions, not to mention the reliability of the technical indicators you use.


If you really want to take it one step further you can trade the very long term charts such as the daily, weekly and monthly charts. This style of trading is ideally suited to people who want to trade forex but maybe have a full-time job so don’t have the time to sit in front of a computer and monitor their positions all day.


All you need to do is wait for the right set-up to occur, enter your position and watch it unfold. Each position can last days, weeks or even months, but at least you only have to look in at the end of each day to monitor your position, and if your trading call is correct you can potentially make several thousand points profit.


As an example take a look at the monthly chart of the EUR/USD currency pair. If you used a simple EMA crossover system such as the EMA (5) crossing the EMA (20), you could have entered a long position on the last crossover (in 2006) at around 1.2500 and at the time of writing would be over 3000 points in profit.


You can look at other currency pairs and see similar results so it’s clear that long term forex trading can be equally as profitable as short term trading, if not more so. It’s also a lot less stressful and time-consuming. So if you’re struggling to make consistent profits from short term trading try increasing the time frame of the charts you are using, and you may well notice a big improvement in your results.

Forex Trading Articles

Forex Trading System Software Simply Understandable

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The word is quickly getting out about forex trading system software. Forex stands for foreign exchange. Simply put, it involves the selling back and forth of the various currencies of the world. When you go on vacation to a foreign land and exchange your American Dollars for that nation’s money, you are in essence engaging in the forex markets.

However, when on vacation you are not seeking to profit off of this exchange. You simply need the local money in order to purchase goods and services throughout the duration of your visit. Assume though that you had a small amount of the foreign currency left over as you are leaving to come back home. You go to exchange the foreign money back to dollars. That completes a true forex trade. Many have traded forex without even knowing it.

When you engage in forex trading you are seeking to buy a given currency and then sell it back yielding more money than you began with. Conversely, one can engage in what is called shorting a currency which is tantamount to a bet against it. The forex markets can be exciting and profitable. They also entail other lifestyle advantages.

Many desire the freedom associated with working from home. However, the vast majority of the myriad work at home offers turn out to be schemes or scams. Forex trading has been around for hundreds of years. It is a legitimate enterprise which attracts the highest level investment entities from around the world. Ample evidence has been shown in the form of megafortunes garnered by trading in currencies.

The global nature of the forex market yields a significant amount of time during which trading is possible. Night owls can trade into the late hours. Early birds can begin trading before normal equity markets open. One can dictate their own schedule and work from anywhere having a computer and Internet access. The lifestyle of a successful forex trader is universally admired.

Modern software can make life even sweeter through the automatic execution of trades. Once you set the parameters and risk tolerances you can set these robots off on their own and check in once in a while to see how much money they are making you.

The largest mistake that most new forex traders make is to attempt to predict the currency markets on their own. Forex currency movements can be sudden and predicated upon complex events. Those attempting to personally conquer the forex market often find themselves outgunned. Luckily, there now exists cutting edge software which serves to even the playing field against the seasoned professionals.

One of the most salient advantages to forex system trading software is its ability to remove emotion from the equation. Many neophyte traders succumb to the pitfalls of emotions which guide them to selling low through panic and buying high via greed. Software removes this proclivity and allows the trader to ruthlessly trade guided by a superior intelligence. Those not similarly armed on the other side of the trade are often put at a severe disadvantage.

Forex Trading Articles

Develop A Forex Trading Strategy To Become A Master Trader

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If you are interested in becoming an amazing trader in the forex market, you definitely need a powerful forex trading strategy to guide you in your trades. Those individuals who are expert forex traders have learned this early and are now the elite that make a lot of money. There are four simple steps that you can take to develop your forex trading strategy. Follow them and immediately see success in the forex market.


First, you must realize that your success falls only on you. You need to accept responsibility for your own success and each trade. Only you can make yourself successful! This means that you have to take the necessary steps to develop your own trading strategy. The good news for you is that everything you need to know about forex can be found online for free, or very cheap.


Second, you need to focus on learn how to find the right information and increase your knowledge the right way. To be successful in the forex market, you need to learn the right things. This is important because many traders think that knowing more is better. This is simply not true!


You see, in the forex market, you get rewarded heavily for your results and the accuracy for your trades, not the effort you make in your trades. You should also make sure that the forex trading system that you chose to use integrate into your trading strategy is simple and easy to use. Simple systems are much easier to use for a long period of time and work much better than the complicated ones. This will give you confidence and an advantage over those who choose to use complicated systems.


Third, you need to decide right now if you feel comfortable taking a risk and if you have good money management skills. If you don’t like taking risks, you probably shouldn’t trade forex. Most traders don’t realize how big the actual risk is so they enter the market and lose a lot of money and get out quick. Then there are those who are so frightened by risk, that they end up being too conservative in their trades and lose a lot of money. If you want to make a ton of money in the forex money, you need to take risks that are calculated, I mean risk at the right times.


Last, you need to be realistic in your expectations. Sure, some people get into the forex market and get rich super fast. However, this isn’t the norm for most traders. If you take your time easing into the market and immediately begin developing a forex trading strategy that is strong and sustainable, you will find success.

Forex Trading Articles

Best Forex Trading Methods – What to Look for

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Forex trading methods have been evolving ever since the first currencies were traded hundreds of years ago. As with all disciplines, technology is having a great impact. Originally trades were made with paper and kept track of in longhand. However, today technology rules and the smart traders are all flocking to automation. Software which even includes trading robots is now available to all.

The forex market is simply a venue where the various currencies of the world are traded. Many find forex complex and daunting at first glance, however it is much simpler than it initially appears. Many have engaged in forex trading and not even known it. Think about the last time you went overseas on vacation. You most probably bought some of the local currency to spend during your trip.

On some occasions you might have had a few local bills left over unspent. If you converted them back into US Dollars, then you completed a forex trade. Forex can be easily understood, however mastery can take a lifetime, if ever. Many traders attempt to go it on their own when it comes to the forex markets. Unfortunately for them, they find themselves increasingly trading against sophisticated software.

The human mind presents several limitations when it comes to the forex markets. Firstly, the calculations required to effectively trade currencies is beyond most of our capabilities. Software fills this gap performing myriad calculations in the blink of an eye. The most sophisticated forex trading strategies often require this artificial assistance.

The human mind can also become the enemy when emotions rear their ugly head. The first emotion which taints an otherwise sound forex trading strategy is fear. This occurs as a target or position drops and either disallows the purchase or forces a sell at the most inopportune time. Left to its own devices, the human mind will foil the best of trading strategies when emotions emerge creating deviation from previous plans made with a cooler head.

The other counterproductive emotion is greed. In trading of all sorts greed can be the biggest enemy. When a position is doing well and the time has come to sell it often proves difficult. You desire to squeeze out just a little more profit from the trade and a sense of overconfidence and hubris can ensue. This often causes traders to watch theoretical profits turn into real losses.

The cure for these deficiencies is help from technology. Automated trading software is now on the market which allows anyone to craft a strategy, enter risk tolerances and let the autopilot robot go. It can be akin to a round the clock worker making you money and requiring nothing in return. A robot experiences neither fear tor greed and will calmly execute the previously determined strategy without deviation.

If you are exploring forex trading methods it is important to include trading robots within your research. Software can often save you from your own devices. Additionally, it allows for freedom with the entire day no longer required to be in front of your monitor. Great profits can be made in the forex market for those with discipline and a strong strategy.