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
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