Friday, February 8, 2008

FOREX - Trading Tips

FOREX or the foreign exchange market is where one currency is traded for another. It is the largest financial market in the world, and it includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions.

Unlike the stock market, where participants have access to the same prices, the FOREX market is divided into top and lower levels. The inter-bank market is at the top, which is made up of the largest investment banking firms. This level is usually unavailable, and not known to traders outside the inner circle.

As you go down the inner levels, the difference between the biding (buyer) and asking (sellers) prices widens. If a trader guarantees a large number of transactions for large amounts, they can then demand a smaller difference between the biding and asking price. Investors can only buy currency (which is assigned a three-letter code) from a seller with an asking price that is the same as the biding price. There are smaller investment banks, followed by large multi-national corporations, large hedge funds, and even some of the retail FOREX market makers. Insurance companies, mutual funds, and other institutional investors are also playing an increasingly important role in the financial market and in FOREX markets in particular.

FOREX is an extremely competitive market. To be successful, traders have to concentrate on a set of simple strategies that they can put into practice without hesitation. These strategies are used to determine trading prospects in the FOREX market. They involve using technical and mathematical analysis, charts, and the like, along with fundamental analysis using monetary, political, and economic information, to opt for trading calls.


If you would more information about the FOREX market and trading, Derek Bijnaam has discovered an amazing system that he makes available at http://www.foreigntrademarket.blogspot.com

by Derek Bijnaam a freelance writer


 

Automated Forex Trading System

Automated Forex trading system

Forex trading can be quite profitable if you have solid methodology to find out entry and exit points. Expert Advisor is a Automated Forex trading system which can do this task for you automatically. This system by having an "exper advisor" (also called EA) can monitor the market and make trades behalf of yourself. The biggest plus point is this kind of system has no greed and fear like we human has which generally cripple novice trading accounts.

Metatrader

Expert Advises do work on MetaTrader 4 platform which is a freely available trading platform. It's very simple to install and learn. If you don't have this platform you can go to http://www.bestmt4brokers.com/downloads.htm and download it for free. An Expert Advisor is an automated trading system (ATS) written in the MetaQuotes Language II (MQL II) and linked to a chart on the free Metatrader 4 platform. One of the unique qualities of MetaTrader 4 is the ability to automate trading activities through the use of an Expert Advisor.

Automated

Various automated forex trading system are available in market. Each various in its performance. This kind of system is also useful for people who like to do manual trades, but who want to test their new strategies. Destiny NN is one of the best automated trading system currently available in market. It runs on your PC. Destiny expert advisor software is the result of years of research into automated trading of the forex market resulting in a fully automatic trading tool. It supports 8 currency pairs trades simultaneously including major EURUSD. You can adjust your risk level while trading based on your risk appetite. It combines technical and fundamental analysis . Destiny is constantly updated in real time so you have the latest trading software.

Money

Money management is very crucial while trading forex. Good Automated forex trading like Destiny NN also do money management for you. Destiny NN risks only 2% of capital per trade. It also analyze volatility to keep you out of bad trade. Your profits are compounded as your account grows. You don't need to study charts or graphs as it automatically once setup is done. Just turn it on and it trade for you day and night.

Demo

Once Metatrader4 is downloaded and installed on your computer, you can simply request a Demo forex trading account from any FOREX broker which supports MetaTrader platform. Then you can run one week trial version of Destiny NN on this MetaTrader platform. You don't need to risk your real money to find out if it really can make profit for you or not. Once you are confident about its capabilities then only you should trade on your live account.

Automated Forex trading system can really make great money for you. Forex Expert Advisors exercise unmatched discipline when trading and can be designed to evaluate more parameters at the same time than any human could keep an eye on at once. Automated Forex trading system like Destiny NN work only on mathematical logic as it has no fear or greed. Automated trading system are easy to setup and you can start trading in minutes and all you need is computer.

Happy Trading !!

by Jim Scott
Jim Scott recommends using an Expert Advisor for forex trading for better profit and low risk.



 

Day Trading - Want to try it? Then Say Goodbye to Your Equity

Day trading is popular with huge numbers of novice traders yet you are guaranteed to lose in the longer term, as the logic it is based upon is simply not true and can never work. ..

Lets look at the two reasons why if you day trade you will lose.

Before we get started on the reasons why day trading is a guaranteed route to losses lets look at why you see track records with huge profits on many day forex day trading systems.

Here is the reason they all carry a disclaimer like the one below which means they have NEVER been traded:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

So you can make anything up you like and the track record is not worth the paper it's written on.

What's the point in having a track record if it isn't real and also you would think that the person selling the system would actually show confidence and trade it!

The reason they don't is most are sold by marketing companies looking to dupe naïve and greedy investors. Try and find a forex day trader with a real time track record and let me know if you find one you won't

So why doesn't day trading work?

The reason is obvious all volatility in short time frames is of a random nature and all support and resistance levels are not valid.

You cannot get the odds in your favor when day trading and if you can't get the odds in your favor you will lose - Period.

You simply can't judge in such a short time span what prices will do.

You have millions of people all with different motivations and personalities and to say you can measure what this vast diverse group will do in under a day is simply destined to failure.

So the next time you see that tempting day trading track record check the small profit, as chances are its never been traded. Then think about the above and you will see that day trading is a total mugs game.

by Kelly Price
NEW! 2 X FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info and more on currency trading systems visit our website at: http://www.learncurrencytradingonline.com

 

Currency Trading Systems - Check This Key Point If You Want Big Profits!

If you are looking at buying a currency trading system then you need to be careful 99% are junk and won't make you money to find the elite systems that can make you profits you need to check one key point.

The first point you need to check is the track record real or made up?

Check for the disclaimer below and if you see it avoid buying the system - here it is read very carefully:


"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

The fact is most of the systems you see on the net carry this disclaimer and it means the track record is not worth the paper it's written on. Anyone can simulate profits in hindsight, knowing the closing prices - but alas currency trading is not that simple.

When buying a currency trading system always insist on a real track record and audited statements from a broker. I saw one system where the vendor simply shows copies of his bank statement and that's his system sales, not trading profits!

You have to say to yourself if the vendor doesn't have the confidence to trade his or her own system why should you?

Once you have a real time track record you have at least some proof the system has worked. The key point with any system is applying it with discipline so check the drawdown (worst peak to valley) and recovery time. Finally, check you're happy with it and then trade it assuming this will happen again.

It's also a good idea to learn the logic of the system as it's easier to follow a system when you know how and why it will work longer term.

Another Way

Is not to buy a system but get a free one. A great one which is simple and works is.

Richard Donchian's 4 Week Rule

Look it up in our other articles its one parameter and it will beat 99% of the currency trading systems you see on the net.

The other way is to simply build a trading system yourself - it's a lot easier to do than many forex traders think and in the next article in this series, we will look at how to build your own successful currency trading system in under a week.

by monica Hendrix

NEW! 2 X FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive currency trading system visit our website at: http://www.learncurrencytradingonline.com


 

Forex Scalping Systems - How to Make Huge Profits

Forex scalping systems are over the net and it's one of the most popular ways for novice traders to get into Forex trading - but how do you find a system that can make you big regular profits? Let's find out.

Forex scalping systems don't work and never will. Before we go into the reasons why you will always see the disclaimer below on any system sold that claims to have made money.

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

Now - anyone can make money in hindsight but forex trading is a bit more difficult you have to trade not knowing the closing price!


Most vendors who sell forex scalping systems simply make track records up that appeal to the greed of the buyer. The buyer takes the loss in the market and the vendor as a guaranteed profit in his pocket.

Day trading doesn't work and it never will because all short term volatility within a day or a few hours is random and any day traders should look at standard deviation of price in daily time frames.

You have countless millions of people all trading with different motivations and personalities and this huge diverse mass can do anything (and they do) in a short time frame.

As volatility is random this means you cannot use support or resistance levels because they mean nothing in short time frames and if you can't use them, you cant get the odds in your favor and will lose - it's as simple as that.

If You Want to Win at Forex Trading:

You need to get the odds on your side and that means using valid data and getting the odds on your side. You can swing trade or you can forex trend follow the choice is yours but please forget day trading or forex scalping systems - they don't work.

Let me know if you find a forex scalping system that has a real track record, I have been looking for over 20 years and have yet to find one.

by Monica Hendrics
NEW! 2 X FREE ESSENTIAL TRADER PDFS
For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive currency trading system visit our website at: http://www.learncurrencytradingonline.com

 

Forex Trading - These Traders Made $100 Million Quickly How?

In a famous experiment a group of traders had 14 days forex training and made $100 million in four years and went on to become some of the most famous traders of all time. If you want to trade forex then their story should be an essential part of your forex education.

The group were nicknamed "the turtles" and they were trained by legendary trader Richard Dennis. He set out to prove that anyone could learn currency trading, if they had the right education and mindset.


The group were of all ages, men and women, of various educational backgrounds and the only thing they had in common was - none of them had any trading experience.

The method they were taught was a long term trend following system which was based on breakout methodology and it was extremely simple; so simple in fact that anyone could learn it.

Now you may ask, if it's that simple to trade and learn a system, why do 95% of traders lose money?

Dennis knew the answer to this.

Rather than just teach them blindly to follow a system, he taught them how and why it worked, so they could have the confidence and discipline to follow it, through a string of losing trades.

The method had more losers than winners - but Dennis taught them to stay with the system, take the losses with strict money management and hold the big profitable trades.

So could you become as rich as "the turtles"?

Maybe not, life isn't like that but the opportunity is there for all.

There is nothing to stop you or anyone else, learning a similar method and enjoying currency trading success over the longer term.

All you need to do is get a simple system, understand it, have confidence in it and the vital element of discipline to apply it.

Discipline is the key, because if you don't have the discipline to follow your trading system, you don't have one!

Discipline is not easy to acquire but it's a learned skill. If you want to be disciplined trader you can be - it's as simple as that.

The turtles should be an inspiration to any trader and it shows what can be achieved and by anyone. I read about the story in 1983 and it inspired me to trade and I hope that it does the same for you.

Forex trading can offer a life changing income - sure it's a challenge but if you like a challenge, then you could be on the road to a life changing income.

by Monica Hendrics

NEW! 2 X FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive currency trading system visit our website at: http://www.learncurrencytradingonline.com



 

How much profit can you expect from Forex?

The forex trade is fast becoming the buzzword in the international arena and the forex trade is trying to attain its place on the top of the popularity chart at a steady pace. The forex trade always seemed as a lucrative proposition since its early days, but the requirement of huge investments somewhat restricted this trade from the general masses. After the popularity boom of the internet this trade also went through a vast change and that opened it up for the general masses. Lack of information about this trade made it relatively unknown for most of the people in the past. But slowly the situation changed and at present you can lot of information about this trade with expert advice too. The forex trade became the center of attraction among the masses due to its capacity to earn huge profits in a very short span of time. Here the question arises how much of profit you can actually earn from the forex trade?

If you pose this question you may get the answer like huge amount of profits and if you try to look at the forex exchange rates, they always move from 0.5% to 1.5% at the maximum, the movement is very small practically unnoticeable, then where from the huge amount of profit is coming, if you look at the investment required to trade in the forex market then you may find that it ranges from $50 to $300 with most of the online brokers and the forex dealers. The catch lies with the leverage allowed on your trading account. The leverage allowed on your account makes it possible to actually trade for $100,000 forex lot for every $1000 invested by you. If you are able to earn say about 0.75% return on the whole lot of forex then the return on your own investment comes out to be 75% flat. That is the actual catch and makes the forex trade attractive for the masses.


No expert in the forex trade can assure you about any specific rate of return on your investment but as portrayed earlier it is quite high and the earning of profits solely depend on the moves made by you. It is not always possible to register the profits only you can lose your investment sometimes, but the best part of the current forex trade is that in case of any loss you stand to lose the initial investment made by you only. This makes the proposition further attractive for the masses. The online forex broker/dealer sites made it quite easy for the people to get into the forex trade and reap the profits. These sites provide you with initial training on the forex trading by providing you the host of articles on the forex trading that enables you to get the initial knowledge required to get into the trade. Beside that it also provides you the demo trading account where you can trade in a virtual forex market that behaves like the real one without investing anything from your pocket. The demo accounts are quite capable of training you for the real forex trading. The demo accounts also provide you the facility to test and sharpen your skills in the forex trading arena.

The present forex trading format offers you the high amount of profit with the initial investment of $50 to $300 only and the risk of losing the initial amount in the case of a loss. This proposition I far better proposition as compared to the investment in the stock exchanges and hence the forex trade is getting popularity at a brisk pace.

by Murtaza Khan
The latest foreign exchange and currency information for investors, traders and travelers. Forex Invest features; online foreign currency trading platform, currency payments, Forex info and more! Sign up now!