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Friday, April 29, 2011

Hints and Tips - Learn FOREX To Make A Great Income

If you wish to learn FOREX and trade profitably then here are some hints & tips to get you going.

Trading FOREX can bring you a great regular income but it must be treated with respect. Like any other job trading requires training and practice. When you start a new job there is a lot to learn; you need to understand the company you are working for, your customers, suppliers, systems and people that you will be working with. It takes time and patience before you become excellent at all the aspects of your job.

It is no different when you study FOREX.

When learning to trade you need to become an expert in the following:

? FOREX markets

? Risk Management

? Trading Plans

? Brokers

? Trading Platforms

? Technical Analysis

? Fundamental Analysis

? Cycles

? Time frames

And perhaps the most important of all, you need to become an expert in yourself. An understanding of the psychology of trading is absolutely critical. How will handle the pressure of trading? Do you have the discipline to know when to make a trade and when to get out?

The list above looks like a lot and that's because it is!

You are not going to be a millionaire overnight in trading FOREX, but if you get it right then you can make a very good income either part-time of full-time.

One of the huge advantages of trading FOREX is its flexibility. As you begin to learn the subject you can practice trading around your existing job. You can trade 24 hours a day, 5 days a week so there are a lot of options.

Certain times of day are better to trade than others. These include when the UK/European market opens, when the US opens and closes. At these times you will see more momentum in the market as this is when the major players make their moves.

Practicing trading before you risk any money is also one of the key foundations for success. In order to learn about all the items listed above you need time to play. Why risk your own money during this time?

Here are the key steps in ensuring success to learn FOREX and make money.

1. Choose a broker. Make sure they are legitimate. Download (from their website) their version of the Metatrader platform.

2. Open a practice account with the broker.

3. Start playing with the trading platform, use the help files and introductory guides (see below) to try out different functions and features.

4. Create your trading and risk management plan.

5. Start a new practice account and trade as if you were following your plan. Keep practicing until you are consistently profitable for at 2-3 months.

6. Open up a small real account with your chosen broker. Use a micro-lot account. Start trading with real money using the same profitable techniques you have learnt with your practice accounts.

7. As you make money, gradually increase your pot size and trades. Ensure that you are still trading within your chosen risk management plan.

8. Scale up and compound those profits!

To learn FOREX and to trade profitably you must be patient and spend time and effort studying all of the different aspects of trading.

Follow the points outlined in this article and review the introductory guides that you can find at the link below.


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Metatrader 4 Expert Advisors - Should You Create Your Own?

Introduction


The popular opinion among the active posters in the Forex forums is that you can only make money in Forex by designing and trading your own Metatrader 4 Expert Advisor. While it sounds good in theory, the reality is that there are numerous problems with creating your own FX Expert Advisor that they either don't know or don't tell you about. Simply put, there's just no way that a beginner Forex trader (or even an intermediate one) can successfully design their own EAs. By the end of this article, you'll know the only way that you can really win with Metatrader 4 Expert Advisors.


The Problem With Creating Your Own Metatrader 4 EAs


Most beginner Forex traders really have no idea how to trade Forex profitably, so is it reasonable to expect them to develop their own FX Expert Advisor? Of course not! Developing a profitable Forex EA isn't just a matter of throwing a couple of indicators together and running backtests until you find a profitable combination. You really do need to understand the Forex markets and the patterns of price behavior before you even think about developing your own Metatrader 4 Expert Advisor. Otherwise, you're very likely to create a "curve fitted" system that worked well in the past, but is useless for live trading.


Profitable Metatrader 4 Expert Advisors are based on sound strategies that come from years of market research that no beginner Forex traders can hope to achieve in the short term. It's just like asking a first year medical student to perform complex brain surgery - it just isn't possible! Regardless of what anyone might tell you, it takes 3-5 years for any beginner Forex trader to accumulate the necessary market experience to develop their own profitable FX Expert Advisor.


Winning With Metatrader 4 EAs


So what can you do if you want to make a Forex trading income right now? Simple - you do your research and buy a Metatrader 4 Expert Advisor that actually works. Obviously, not every single one of the FX Expert Advisors out there do work, just as not every Forex trader makes money in their Forex trading. So how do you tell the good from the bad? Well firstly, you've got to be very skeptical and ignore all the hype and empty promises out there. You're not going to quadruple your money in a month's time, and you're not going to win 95% of your trades. Believe it or not, you don't need a system like that to make a consistent Forex trading income! A system that wins 50-60% of the time is fine, as long as its gains are more than its losses.


So how do you know if an FX Expert Advisor will actually deliver on what it promises? Simple - look for a money back guarantee from a reputable vendor, and test the system on a demo account risk free during the money back guarantee period. If it does what it says it will do, then you know it's safe to trade it with real funds. Otherwise, don't hesitate to return it and post up a bad review of it so that others know not to waste their time on it as well. It may take a while for you to find one, but it's well worth the effort.


Finally, trading with Metatrader 4 Expert Advisors is no different from trading Forex on your own. You've got to start with enough capital, stick to your system and apply good money management in all your trading. If you do that, then you can be sure that you'll have far better results than trying to design your own FX Expert Advisor.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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Market Maker Or ECN - Which Is Better When Trading Forex?

Electronic Communication Network (ECN) or Market Maker (MM) is the main thing which distinguishes a FOREX dealer from a broker. When you trade the dealer or market maker is the counter party, this is because, for an ECN, a counter order is actually required for execution of the deal. Although the FOREX markets are quite liquid the counter order can become a problem only when the order is very huge, or when the market is extremely slow or fast. The ECN is not able to do quite a few things which the MM does, but actually they do not have to, as they have no balancing of books. But it is also true that trading in ECN will require more accuracy and subtle trading techniques which the trader should aspire for.

If you take into account the various MMs, only a few are good and some are even excellent, but the majority is awful. You should remember the significance of a trade counter party, and should also know that market makers are literally the controllers in the market supposedly to maintain an order in the market. They control the dealing desk, and also No Dealing Desk through liquidity providers, the stream of data, the platform for trading, and tools like pip spreads, re-quoting, rules of trade, cancellation and acceptance of trades and dealer intervention. Fortunately Rule 2-43 of the NFA has reduced a few of these aspects but not eradicated them. There is some progress in this direction but with repeated excess they will be the industry dinosaurs.

On the other hand ECN brokers too have their own problems, the prominent one being their platforms are quite complicated, and learning and using them is very difficult. They mainly consist of raw data and need to be integrated with technical services and charting from a third-party. But the leeway is less as they are basically trade matched orders. In slower or faster markets the liquidity may worsen with a ECN, as market tools which are orderly, are not provided. But my advice would be to look for an ECN once you have gained experience in the FOREX market. You will also find that many retail brokers are providing trading via an ECN for small accounts also. But how they are able to bundle lots of 10k and make them into a 250K lot and escape intervention is not totally understood by me.

The main issue which is predictable is that ECNs will dominate in comparison to MMs because market makers, for maintaining order, often indulge in book manipulation. This manipulations are achieved by activities like dealer intervention, pip spread setting and re-quoting, whenever it please them. The basic problem from this is that market makers actually are trading against their clients. The profit you could make may turn out to be a loss for market makers.

MMs are in the habit of manipulating pip spreads and make it look like a legitimate process for maintaining the market. On the other hand ECNs do not do this generally. ECNs and market makers both will provide DOM (Depth of Market) where you can see the standing orders for buying and selling and also the bid price and the asking price. This is actually quite valuable information when you have practiced the correct way of using it.

Further complications arise when certain companies who are actually MMs advertise themselves as being an ECN broker It is not clear how such a hybrid entity can operate, and in few cases it is just semantics to get off the moniker of being a market maker.


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Getting Started In Forex - Staying Safe In Shark Infested Waters

Introduction


Many beginner Forex traders are attracted to getting started in Forex because it's represented as an easy and safe way to earn an additional income, but the truth is that trading Forex is a dangerous environment. There is a very real risk that you may lose your entire starting capital if you don't know what you're doing, and statistics show that 90% of beginner Forex traders give up on trading entirely within a year of starting. Clearly, successful Forex trading requires more than just a Forex broker and a basic system for trading. By the end of this article, you'll know how to stay safe in the shark infested Forex waters, and make the Forex trading profits you deserve.


The Dangers Beginner Forex Traders Face


Most beginner Forex traders start out without a proven Forex trading system, and that's the source of many of their initial losses. If you're just getting started in Forex, don't even attempt to trade without a tried and tested method for deriving Forex trading profits, otherwise you'll end up losing money. When you're new to Forex, it will take you a long time to gather the necessary knowledge and experience to develop your own method or system, so you're much better off buying a proven system if you want to start making profits quickly.


Even with a proven Forex trading system, there's still a considerable risk if you don't practice good money management. In Forex, your trading system tells you what trades you take, but your money management system is even more important because it tells you how many to take. You can take the right trades, but risk too much on them and still end up with a loss. Good money management in Forex is all about staying safe so that you can profit from your proven Forex trading system in the long run.


Staying Safe In The Shark Infested Forex Waters


In Forex, there are many "sharks" that would try to convince you that their system is the answer to all of your problems, but many of them are only trying to con you out of your money. To tell the scams from the real deal, you only need to apply common sense when you're making your decision. If it sounds too good to be true, it probably is, and in Forex you're not going to double or triple your money in a matter of weeks no matter how "good" the system is supposed to be. A more realistic expectation is 5-10% return each month, and if you can find a system that delivers that on a consistent basis, you've got a winner in your hands.


Even more important is your Forex money management system. The best practice is to limit your risk per trade to 2-4% of your total trading capital, because this will increase your size when your system is on a good run, and reduce your size when your system in on a losing streak. You should allow your profits to compound as you go, and make additional investments at regular intervals to further increase your Forex trading profits.


Staying safe in the dangerous waters of Forex is easy if you have a proven Forex trading system, and practice good money management. The key is to focus on protecting your capital and surviving for the long term, and your profits will come in for sure.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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Housewives Trading Forex

This is not a big secret and apparently this is just the tip of the iceberg. Recent trend showed that many women are trading forex conveniently from their house especially in Japan, South Korea, Britain, and the United States. This is possible because today we have many tools that can help us to trade forex. Things such as self-paced DVDs, home course, and assisted trading. The latter is the best type for those who only have very little time to monitor the market. Why? Because the service is designed to cater the needs of those who wished to trade forex but cannot afford to spend time to engage in a long learning curve that is required to master forex trading. Why long learning curve? Because you first need to learn the method, test them out on the market using demo account (so you don't have to risk real money in testing the methods) and then you open a real account after you are confident that the trading method can give you profit. We are looking at 1 year time horizon.

Is there a way to cut the time? Yes. Why not skip the learning process and go straight to making money from forex? This is not a hype at all, we are talking about the reality that is happening around the globe as you read this article. Consider this... if you are a lawyer and you suffer from a heart disease do you go back to college to then pursue advanced study in cardiology? Honestly it's not a bad idea, but you certainly won't do it, right? If you are a nurse and you love your health and only eat organic food do you buy a land and start farming? Obviously not, right? So why not do the same thing? Focus on what matters the most to you-your family and make money without sacrificing your precious time.

Now these are the simple steps that you need to do in order to benefit from the forex market:

The first thing you need to do is to familiarize yourself with the forex broker's trading platform. To do this simply go to Oanda or Alpari UK and register a free demo account, go to YouTube and search for trading tutorial on MT4 or Oanda. Make sure to be creative in keyword usage because there are many tutorials regarding trading platform in YouTube. After a week or two you should already be able to do make a buy or sell orders or other things in the platform. After all that, open a real trading account for yourself.

The next step is to find a good forex trading signal service that can assist you in spotting good opportunities in the market. This is the most difficult thing to do especially today because you have to search, list and compare hundreds of services that are available on the internet. Most of them are simply not profitable, most of them are beginners. The good news is there are still genuine services out there that you can rely on to bring profit from the forex market. You should know that the success of new traders lies in subscribing to a genuine forex trading signal service that can help jump start their forex business.

Essentially, those are the steps that you need to do because forex trading signal will help you greatly in terms of making money and providing you the time you need to learn the rope. Not only that, a great forex trading signal service will also educate you by providing explanation for every trading signal they send. Honestly, this is the best thing for a new trader. You get the optimum output with very little effort on your part. This is the ultimate forex trading strategy for new comers.

I spent hundreds of hours discerning the services so you don't have to spend even a minute just to find the good one. Why waste your time?


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Learn Forex - 6 Tips That Will Help Trade Profitably And Make Money

Trading forex seems like a very complex activity but actually there are a set of defined procedures and rules that if followed will make the job a lot simpler. To learn forex you need to take into account the following:

? Consistency

Which ever way you decide to trade forex, whatever systems you use, plans, tools and techniques, consistency in your approach is critical. If you keep changing the goal posts then you have nothing to measure yourself again. Trading forex can be quite boring at times. You can be sitting in front of a computer for hours and hours before you can make a trade. Whatever you do, do it consistently!

? Measurement

In order to understand if you are trading profitably or not, you must measure what you are doing. Every time you make a trade you should record every element of it. For example you should include the time/date, the forex pair you are trading, whether your buying or selling, the lot size, stop loss, profit target and the reason why you took the trade and what the result was. Only by recording this information can you understand what is happening and what you need to do to improve your results.

? Risk Management

The most important factor in any kind of trading is to protect what you already have. It's harder to win back money that you might have lost than to make new money. For example if you lose 50% of your trading pot you would need to double it (increase by 100%) just to get back to the original amount. That is why it is so important to manage your risk. You should not risk any more than 2% of your pot for any one trade. If you follow this rule then you would have to lose over 40 consecutive trades before your trading pot would be wiped. You cannot learn forex successfully unless you follow a risk management plan.

? Trading Plan

As mentioned above, consistency is crucial for trading successfully. To be consistent you must have a plan, and the plan defines when you enter a trade, when you exit it, how much money you risk for each trade. Once you have tested and refined it then you can execute it consistently.

? Psychology

Another very important factor in trading is your psychology. How do you react when things are going well and when things are going bad? What will be your trading style? What time frames will you work with? Are you trading part-time or full-time? What is your financial situation? All of these questions and others need to be answered.

? Persistence

Trading forex is challenging but can also be very rewarding. However persistence is a fundamental part of your success in trading. You are not going to be a millionaire overnight with trading; it takes time, patience and persistence. You develop a system, test it, measure the results, fine tune it, test it, measure and hopefully improve. Once you get it right it will provide you with a wonderful income for life. Don't give up!

To learn forex and trade successfully requires that you consider all of the factors mentioned above. There is no short cut in making money, but there is a huge opportunity to make a massive income if you follow the rules. If you would like to know more than please click on the link below for a free introductory guide.


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Metatrader 4 Expert Advisors - Why The Banks Don't Use Them!

Introduction


There's a widespread myth in Forex trading circles that Metatrader 4 expert advisors don't work, after all if the did, then wouldn't the big banks and hedge funds sack their entire trading department and replace them with Metatrader expert advisors instead? While it's true that large financial institutions don't trade with the commercial automatic Forex trading systems available on the market, it's not because they don't work. There's a reason why this opportunity is "unwanted" by the major players, and by the end of this article, you'll know how you can profit from this little known fact.


Why The Big Banks And Hedge Funds Don't Use Metatrader 4 Expert Advisors


Typically, the large financial institutions like banks and hedge funds trade with hundreds of millions or even billions of dollars at a time. Obviously, the biggest issue for these big players is liquidity, because they would be taking thousands of contracts at a time, and that's just for one of them. When you consider the effect of all of them buying and selling at once, you can imagine just how hard it is for them to get a good price without drastically moving the market.


The problem that most big banks and hedge funds encounter with liquidity is good news for small individual traders, because it represents an opportunity to get into favorable positions that they can't. That's because individual Forex traders can enter and exit the market at will without "paying" any pips in slippage (getting a worse price due to poor execution). Good Metatrader 4 expert advisors add to the advantage of the small Forex trader even further, because it gives them a proven edge in the markets.


How You Can Profit From This "Unwanted" Opportunity


The large financial institutions can't possibly dream of using Metatrader 4 expert advisors to profit from the Forex markets, because it would be impossible for them to enter and exit their positions at the right prices. That's why they don't "want" this opportunity, because the typical Metatrader 4 expert advisor can only handle a million dollars before slippage becomes a problem. So if you have less than a million dollars in capital to trade, then this is a huge opportunity for you to profit in the place of the big banks and hedge funds.


Most small Forex traders don't profit from their Forex trading, because they don't have a proven edge in the market. They wrongly believe that Metatrader 4 expert advisors don't work, and as a result they try to do their own trading, with disastrous results. You can use this inside knowledge to your advantage by identifying a profitable Metatrader 4 expert advisor, and utilizing that edge to shortcut your way to Forex trading success!


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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Thursday, April 28, 2011

Good Forex Trading System - How To Spot The Genuine Article

Introduction


In a marketplace that is becoming increasingly saturated with dud systems by the day, a good Forex trading system is really hard to find these days. There's a new "latest and greatest" automatic Forex trading system released at least once a month, so how do you differentiate between the genuine article and the "me too" marketers? By the end of this article, you'll know how to find a good Forex trading system to make you the Forex profits you desire.


To Find A Good Forex Trading System, Timing Is Everything


Product launches are the scourge of the Forex robot industry, because they use all the deceptive marketing techniques in the book to get you to buy what is essentially an unproven system. One of the biggest lies you'll hear when someone's trying to sell you an automatic Forex trading system is that they are only selling 100 copies because they don't want to "lose the edge" of the system. While it's true that a system's effectiveness will decrease if there are a lot of people trading it, the kind of volume that will cause that to happen is in the millions. Even if 100 traders started trading it with $10,000 in capital each, it would hardly begin to put a dent into the viability of the system. So don't buy in to the myth that the seller will take their system off the market any time soon, because they'll want to sell as many copies as possible.


Timing is everything when you're looking for a good Forex trading system, because there's simply no track record at the moment the system is launched. Sure, you'll read your fair share of reviews done by paid writers and optimistic traders who have just bought it, but it normally takes 6 months for the truth to come out. If you want to save yourself a whole lot of time and money, then you're far better off waiting until 6 months after an automatic Forex trading system is launched before you make a proper decision. Let others do the testing for you, and swoop in once you're confident that the system has proven itself.


Turning A Good Forex Trading System Into A Long Term Money Machine


Even if you're confident that you've found a good Forex trading system, you still owe it to yourself to be safe and protect your capital. Profits can be made easily with the right system, but once you've lost your capital your money will have to work doubly hard to make it back. That's why you should test your new automatic Forex trading system on a demo account for at least a month before running it on real funds. An added benefit of doing a month's worth of testing is that you'll know what to expect from the system, and have the added confidence of knowing that it can weather a losing streak. Losing streaks do happen even with the best systems, so to avoid wrongly giving up on it too soon, you need to manage your own expectations.


Patience is a virtue when you're searching for a good Forex trading system, and being anxious about missed profits is your worst enemy when it comes to profiting from the Forex market. If you adopt a calm and cautious approach, you'll avoid the many traps that other more impatient traders will fall into, and you'll be able to conserve your capital for when you really have the genuine article.


I've been a full time Professional Forex Systems Developer since 2007. Forex is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


View the original article here

Make A Fortune In The Foreign Exchange Market: How To Trade Forex For Ultimate Profit

Many entrepreneurs are beginning the journey into investing. Long term trading has proven to be the safest way to grow wealth but it is not the only way. Currencies are possibly the fastest growing genre of day trading available to the general public. With this fast growing area of investing, investors are finding themselves searching the internet for; How to Trade Forex For Profit.

Day trading is the craft of trading securities and holding on to them for a limited amount of time. A day trader will usually only hold a security for a few minutes or hours and will usually have all positions closed at the end of the day with all profits and losses counted for the given day. Day traders often trade using margin accounts.

Forex is an abbreviation for Foreign Exchange. This is the genre of securities regarding the trading of contracts for differing amounts of foreign currency. Forex may be the fastest growing sector of securities among the general population due to promises from brokers about millionaire dreams.

A contract for a security with the promise to purchase that security at a future date and time for a specified price is called a future. Futures are bought and sold in the hopes that the specific commodity or security will either rise or fall in value at a specified point in the future, thereby allowing the buyer or seller to profit off of the gain or loss.

Many indexes and currencies are too costly for an average person to trade. The Emini Forex was brought to life by the Chicago Mercantile Exchange as a way of scaling down the costs of the larger future indexes and future securities contracts so that these futures can be bought and sold by individuals as opposed to investment groups.

Currencies have been thought by many to be a losing game because brokers are better versed at making money than their investor counterparts. It is thought that some brokers intentionally steer a client wrong for the sake of self monetary gain. The invention of the Forex emini has allowed even the amature investor to take part in Japanese and European money futures without risking excessive loss and being governed by unfair practices.

Every investor has a strategy about long term or short term investing. Books and videos are only some of the ways that investors have tried to share their tips and techniques. Unfortunately, most of these tips and techniques are either outdated, unproven, or require a college degree to decipher. This causes great confusion to the new investor. An easy to learn software tool or website will be a great starting point for your investing journey.

Navigating through a search engine for; Understanding Foreign Exchange: How to Trade Forex For Profit will lead new investors to a variety of web tools and softwares. A good choice in software will ease the transition into trading currency futures. Anyone will be able to enjoy the thrilling ride that day trading will take you on in a comfortable and intuitive software environment.


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Getting Started In Forex - This Mistake Will Destroy Your Account

Introduction


Everyone getting started in Forex trading does so as a means to an end. For some, it may be to create an additional stream of passive income, for others, it may be to achieve financial freedom and build wealth. That's the one thing that everyone getting started in Forex trading has in common: they're all in it to build a better life. There's always a danger that one will get impatient and try to achieve that better life faster by taking more risks, and this is one mistake that will destroy your trading account if you allow yourself to fall into that trap. By the end of this article, you'll know how to avoid that one mistake that every beginner Forex trader makes, and build lasting Forex trading profits for you and your family.


The One Mistake That Every Beginner Forex Trader Makes


The one mistake that every beginner Forex trader makes is to allow their greed to dictate their trading. When you're getting started in Forex, you may not have all that much money to start off with. In fact, the average deposit of a new Forex trader is between $2,000-$5,000. With that amount of money starting out, you can expect to make a good $200-$500 a month, which is fantastic compared to what the banks or any other investment vehicle will give you.


Somehow or the other, we've been led to believe that we can have more. That's what greed is: an insatiable hunger for more and more and more. There are people out there that would tell you that you can make 100% or even 200% a month, and turn your $5,000 into $50,000 like clockwork in a matter of months. Yes, it's possible for you to do it, but it comes with a price. There's a very real possibility that you will blow up your entire trading account if you try to gun for such high returns.


How To Build Lasting Forex Trading Profits


The secret to building lasting Forex trading profits is to have a profitable Forex trading system in place, and more importantly to limit your risk on each trade. You may be used to risking 10% and upwards of your trading account, but even with a profitable Forex trading system in place that's a recipe for disaster. That's because no matter how profitable your system may be, it will still experience losing streaks that will be completely outside the realm of your expectations. If you're risking big on your trades, then you'll wipe yourself out when one of these losing streaks hit you.


So what's a safe level of risk to trade your account on? I recommend risking no more than 2-4% of your account depending on how aggressive you want to be. You risk 2% if you're conservative, and up to 4% if you're super aggressive. Anything below that will result in vastly inferior trading results, and anything above that will put your account in serious risk of a blowout.


Keeping your risk low is the cornerstone of successful trading, because it keeps you in the game long enough to allow your profitable Forex trading system to compound your profits for you. If you're starting with $2,000, don't try to turn it into tens of thousands of dollars overnight. Build it up with regular additional investment and reinvest your trading profits, and soon you'll have a capital base that will bring you the level of Forex passive income that will give you the better life you desire.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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How To Trade Forex Successfully - The Forex Success Mindset

Introduction


If you're trading with automatic Forex trading systems, you may wrongly believe that mindset has nothing to do with your success in Forex trading. The right mindset is actually a very big part of how to trade Forex successfully for big profits with automatic Forex trading systems. In fact, two traders running the same profitable Forex trading system can have vastly different results due to the differences in mindset that they have. By the end of this article, you'll know how to trade Forex successfully with the right mindset.


Common Mindset Mistakes Of Beginner Forex Traders


The biggest mistake that any beginner Forex trader can make is to be overly anxious about the performance of their automatic Forex trading system. They get worried after one or two losses, and start thinking that the system may have stopped working. As a result, they give up on a profitable Forex trading system too soon, and miss out on the profits that they could have made if they were more patient with it. If this has happened to you before, you know how painful it is to open up the system you gave up on a month ago, only to find that it's had record profits all the while since you shut it down.


Another common beginner mistake that you'll want to avoid is being overly aggressive with the risk allocation to your system. When you have a profitable Forex trading system, it's easy to get caught in the trap of being greedy and wanting to make more and more profits by taking bigger risks. While you may get bigger gains in the short term by risking more on each trade, the chances of you wiping out your account are huge. I'm sure you would agree that it's far better to be conservative and ensure consistent long term profits than to risk it all and lose it all when something unexpected happens.


How To Trade Forex Successfully With The Right Mindset


The Forex success mindset is a combination of being calm and patient, and has a lot to do with how well you are prepared for your live trading. Most beginner Forex traders rush into live trading, which has a lot to do with greed and leads to a lot of anxiety when things don't turn out as expected. The smart Forex trader will hold off on live trading and start out with demo trading for at least a month to determine the expected performance of the automatic Forex trading system. If you want to learn how to trade Forex successfully, then you need to do the same.


Once you've fully prepared for your live trading with at least a month of demo testing, then you're ready to commit real money to your trading. At the start, you should only invest a maximum of half of what you have available to trade, and invest the other half after a month of profitable live trading. Not only does this reduce your risk drastically, but it also helps you to adopt a calm and cautious attitude while you're doing so. Once you have completed another month of profitable trading, you can proceed with full investment and have the peace of mind because you're prepared and know how to trade Forex successfully.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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Money Management For Trading - Ways To Success

There have been many self made millionaires that could attest to the potential of the trading industry as a gateway to financial freedom. Because of this a lot of people do wish to become successful traders themselves but surely there are a handful of things they have to remember before taking the plunge.

Good money management for trading is the only safety net you can rely on and the very first thing a trader should decide upon is the amount of risk capital he is willing to place on the line. It is termed as risk capital because it should be an amount with which you are comfortable in losing. Yes, it may sound morbid of thinking that your money can be lost at any given moment but that is the harsh reality you have to deal when you engage in the trading business. Many neophytes resort to using the forex or trading software. These software technically analyze that constant movements in the market and do your trades for you 24/7. Since they are computerized you no longer have to worry regarding the currency pairings and languages making money management for trading somewhat easier.

Although the software do give you ample signals and greatly augment the analyzing you should be doing, it is still best to be hands on it every once in a while. Among the many factors that could affect the trading industry, news is one of the most powerful. Because of that fact should keep yourself updated with anything in the media that could affect the market. A large component of good money management for trading is knowing when one should make a trade and when not to. A drawdown is also one thing you need to decide upon even at the start of your endeavor. It is a given that at the start of any trading business very large profits are as rare as blue moons and that reasonable and realistic goal are the key to success in a system where the only control you have is the decision of trading.

The time you are willing to invest in trading also plays a very big role in the amount of money you want to invest. Surely you don't want to invest thousands of dollars and spent several minutes of your time for it. Money lost in the trade is money that may never come back.


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Learn FOREX - How A Connected World Can Help You Make Money Trading FOREX

Markets do not exist in isolation and to learn FOREX well you must understand that stocks & shares, bonds, futures, indices, commodities, and FOREX are all interrelated. The world is becoming more and more connected. It is very easy for individual traders and large trading institutions to move money between different tradeable items. The economies of the world are also tightly bound as was demonstrated very effectively in the recent crash from 2008.

There is a whole branch of trading called inter-market analysis where traders study the relationships between different trading instruments. The intention is to find correlations that can help predict the future movement in the markets and to make money. Many of the correlations are related to the perception of risk and where money is moved at any one time. The big players can transfer their investments very quickly to where they believe they will get higher returns or safer.

What kinds of correlations are there and why do they work?

Well let's take some examples.

Inflation & Gold

If there is a perception in the market that price inflation is increasing then the value of traders' money is decreasing unless they do something. One of the favored instruments to invest in at this time is Gold. You can see this presently (April 2011) where the price of Gold is rising steadily because it is seen as a hedge against inflation. In other words investors are buying Gold so as to offset the value of their money as it decreases over time.

Oil versus US Dollar

There is an inverse relationship between the value of the US dollar and oil, or at least there seems to be. Why would this happen? Well there are many theories such as:

a) As the value of the dollar drops, the price of dollar denominated commodities has been boosted.

b) If the price of oil goes up, and a country is a net importer of oil such as the US, the this will worsen their balance of trade deficit, and this weaken the value of their currency.

c) The dollar is coming under pressure as the reserve currency for purchasing oil, with other alternatives such as the euro becoming more prominent. This has started to undermine the value of the dollar.

I suspect is could be a mixture of all these examples and others. The important point is that as a trader we can take advantage of this as we trade. There is also a correlation between the Canadian CAD and the oil price as well due to the fact that Canada is a major oil exporter.

AUD (Australian Dollar) and GOLD

The AUD has a relationship with the price of GOLD because Australia is a major exporter of Gold. Therefore the more the country can sell the better its trade deficit will be and the value of its currency will rise. Because the New Zealand economy is so inter-related with the Australian there is also a strong correlation between the value of the NZD with the price of Gold.

To summarise, its important to understand these relationships because they can help you fortify your analysis on a particular currency pair. This is another conjunction; if your charts are telling you the EURUSD is dropping and you can see that the price of oil is going up then that is more supporting evidence. For more information click on the link below.


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How To Explode The Monetary Value Of Your Blog

The value of blogging has been massively misunderstood by many if not most internet marketers. The majority of blogs which were originally intended to be used to make money online have simply faded into cyberspace without ever earning their owners a single cent of the income they expected to make. If this describes you or someone you know, this article can help you to turn things around.

There are a variety of ways to make money with your blog. One of the most common methods that bloggers use is to include Google AdSense on each one of the pages and blog posts. This can either be done manually or you can find a plugin that will insert the code automatically. The only thing that is required is to have an active AdSense account. While AdSense earnings may not be as lucrative as they were just a few years ago, you can still earn a lot of extra income simply by including the code on your blog.

Another common way to earn extra income using your blog is to include affiliate banner advertising. Be careful that you do not overdo the number and types of banners you include. They can quickly take away from the professionalism of your site if there are too many or if they styles and colors clash with the rest of the page. Banners can, however, generate affiliate income, especially if the topic is relevant to the rest of the content on your blog.

CPA or cost per action networks are another popular way to make money with your blog. These networks are not as easy to use since you have to apply and get accepted into the network before you can start earning money, but they can be extremely profitable simply by including the CPA offers on your site.

Selling advertising is another option for monetizing your blog. If you are generating a lot of traffic to your site, you can easily find advertisers who are willing to pay you to place ads on your blog. This is especially true if your blog is dedicated to a specific niche and your readers represent a highly targeted demographic. You can check out other blogs that focus on similar niches or markets to see what kinds of advertising might be appropriate.

Blogs are also an effective platform for earning affiliate commission through doing reviews of products and services. Writing detailed posts about a specific products can serve as a type of pre-sell page which can then direct the reader to the main sales page of the affiliate program you are promoting. This is probably one of the most common ways that internet marketers use their blogs to make money online.

The key to building a successful blog and monetizing it properly is staying as focused as possible on a specific niche and building up a following of readers who are interested in what you are writing about. You can either write the content yourself or have it outsourced. The more consistent you are both in terms of focus and how often you post to your blog will help you to earn more money with your blog with whatever method you choose.


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Wednesday, April 27, 2011

Profitable Forex Expert Advisors - Why They Outperform The Bank Traders

Introduction


You'll often hear it said that profitable Forex expert advisors cannot possibly exist, because if they did then the big banks and hedge funds would just sack their trading teams and replace them with Forex EAs. This is a blatant lie that is told by people who don't have the slightest understanding of how fund trading works. Profitable Forex expert advisors do exist, and there are very good reasons why banks and funds don't use them to trade. By the end of this article, you'll know why you have the opportunity with Forex EAs that the banks don't want.


The Myth That Profitable Forex Expert Advisors Don't Exist


Believe me, if the banks and hedge funds could replace their traders with software, they would in a heartbeat. The problem is, even the best Forex EAs cannot match the returns that professional Forex fund traders make. You might be thinking: "Hang on a minute, the banks and funds only make a 10-20% return per annum, while profitable Forex Expert Advisors can bring in 100% and upwards returns in a year." Yes, but the key difference is that banks and funds have hundreds of millions of dollars to trade, while typically an individual Forex trader would have a few thousand dollars.


So what difference does it make? While the Forex markets may have the highest trading liquidity in the world, meaning that the market can absorb a few hundred contracts without a price shift, there's still a limit to how many trades you can put on at any given time. That means that as an individual Forex trader, we can buy or sell a few contracts with no problems, but when the banks want to move thousands and even tens of thousands of contracts, then it takes a lot of skill and maneuvering on their part to get that done without getting a very bad price.


Conclusion


That's why they don't use Forex Expert Advisors, because there's no way that they can get in and out of the trades like an individual Forex trader with small capital can. Once you hit a million dollars in trading capital, you'll experience the same issue with Forex EAs, but until then, there's a very real edge that you have over the banks. So forget about learning how to trade Forex from scratch on your own, because with a profitable Forex Expert Advisor, you have the potential to outperform the banks without doing any of the hard work on your own.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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Private Foreign Exchange

Foreign exchange is a unique global market in its liquidity, volume of international trades and the efficiency of the system of moving money globally. It has changed the whole concept of money exchange, making it more accessible and more efficient. The principle is that buyers pay for currency using a different currency and try to make profit based on the fluctuating values of the respective currencies. This could be dependent on local conditions, government interventions, natural disasters or seasonal events in each country that serve to alter the value of its currency.

However, that is the foreign exchange market. What you as a consumer probably understand as foreign exchange is when you want to travel abroad and have money to spend buying meals out, skiing equipment, coconut cocktails or inflatable boats. This type of foreign exchange is wracked with pitfalls for the humble holidaymaker as there are many ways of getting your currency exchanged and they certainly come with differing price tags. The first thing to do is check the international exchange rates of the country to which you are travelling.

The rates will fluctuate on a daily basis and it makes sense to wait for a spike to get your currency exchanged. This leads me onto the next important aspect. Time. Give yourself enough time to shop around and find a decent rate before getting your cash exchanged. This involves being patient, frugal and intent on finding yourself the best deal. And when you think about it, if there were three identical items of clothing that you loved, all with differing prices, you would most certainly go for the cheapest one. The airport is probably the worst place and the exchange desks know that they have a captive and often desperate audience and will hike the prices of currency accordingly.

So leave a decent amount of time between looking for currency and travel. Also look at the many deals available at your local bank for exchange. You can often find deals affiliated with travel insurance, flights or transfers. The best place to see all of the information together in an easily digestible table is on the internet. Look up financial price comparison sites which will give you real time information about the best places to get your currency exchanged in advance of your trip. You will certainly see discounts, deals and sometimes if you need a lot of money changing, you can get a more favourable rate from whoever it is you choose to go with.


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The Best Forex Robots - How to Hand Pick the Winners?

The Forex robot has become a very important part of the forex trading department. In simple terms, an FX robot is a computer application program that actually enables a trader in carrying out transactions in the forex market. The significance of this software is that it can carry out trading transactions without any human intervention for many hours at a stretch and it is capable of supervising the recent market conditions and the positive aspect of this application is that it can trade even without any input from the owner. This way a lot of time and effort of the trader can be saved and the trader can also earn lots of money in a short time. However, one need to have considerable knowledge of the various fx robots before you narrow down your research to the one which is the best forex robot for yourself.


Do your research
Performing a diligent research is certainly going to support your decision to purchase the best forex robot for you. The foremost step in the researching arena is to look in for a system which has its video tutorials and reviews advertised and these reviews and the video clippings will certainly help you to understand the robot which will certainly offer you a good chance to make your decision. Always choose a robot that comes with sufficient money back guarantee as then your investment will certainly turn out risk free.


Make use of a Demo Account
After your purchase of a suitable fx robot, you can check out if you have made the right choice by making use of the demo account which should be already present in the software and this way you can make sure that the software is tailor fit regarding your demands. By using the demo account, you can clearly make sure that your decision was on target and always keep in mind that you need to be extremely careful while dealing with real money and live accounts once you start trading in the market openly.


Compare the best robots
The next thing which is of utmost importance is to compare the cost of the best forex robot which you have chosen with the qualities which it possesses. Quality of this software is of utmost important so that you are guided in the right direction and with the apt researching tactics, you can find the right forex robot which is affordable by you as well as it meets all your expectations and demands as well.


Finding the right forex robot is important as this will make sure that you can surely reap benefits in the forex market and the best forex robot for you will be the one which matches and complements your style, personality and trading traits.


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Most Accurate Forex Trading Systems Review

The most accurate Forex Trading Systems should employ all the tools needed to make profits in a timely fashion for this fast moving market. Global events have consequences for currency value. What these values should be are not so simple to judge though. The economic results of any major incident can take surprising twists and turns.

Supply and demand is just one of the many factors regulating money's value. The economic health of a country and interest rates are two items under government's review. Both will have influence over the gross national product. The amount that foreigners are willing to invest and the balance between imports and exports signal the level of vitality.

The currency will rise or decline in value due to interest rates. Investors in the stock market tend to view rises negatively. The thinking is that companies will be restricted from borrowing what they need to expand. On the other hand, foreign investment will tend to go up thereby strengthening the money's worth. It is an exacting science to determine if the effect overall will be positive or negative.

It is usually considered a sign of bad economic conditions if the international trade account is negative. It means basically that more value is leaving the nation compared to the value coming in. If the country continually runs a deficit of this sort, the marketplace will have already taken this into account and devalue the currency accordingly. There is a form of self correction in this situation since this makes exports cheaper boosting outgoing goods in the process.

In the United States, 28 indicators are employed to analyze the economy. The gross national product, money supply, and cost of living are three of the most familiar. The majority of the measurements are announced once a month, but a few are reported on a weekly basis. All are meant to be used as marks of how the economy if doing. The financial industry keeps close watch over them all.

A lot of the strategies for investing in this market are based on what is known as core value. The amount of risk to take is based on a chosen percentage of the total investment. The rates can be reset as the amount of funds rises or falls. Numerous strategies can be used to further manage the account. Profits may be channeled into a separate balance and assigned a higher rate of risk.

The most accurate Forex Trading System will likely be the one you follow most closely. It is necessary to know when to enter and when to leave the market. Your first entry position should limit the risk to just a few percentage points. It should be accompanied by a stop loss authorization. This will keep your losses the level you have selected. I personally made more than 8 times on my money using a Forex automated trading robot.


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The Best Forex EA - Is There Such A Thing?

Introduction


You'll often hear it said that 95% of Forex traders fail, so there can't possibly be any Forex EAs that actually work out there. While it's true that 95% of Forex traders don't end up making a consistent Forex trading income, it's nothing to do with Forex expert advisors at all. In fact, it proves all the more that you need a profitable Forex EA to make the Forex trading income that you desire. By the end of this article, you'll know how you can use the best Forex expert advisors to make you rich.


Is There Such A Thing As The Best Forex EA?


If you believe in profitable Forex traders who trade for a living, then by extension you should believe in the existence of profitable Forex EAs. Why? Because profitable Forex traders have a quantifiable strategy that they repeat over and over again to make a living from Forex. If they didn't have one, then they'd be just like any of the 95% of traders who can't turn a consistent profit: up some days and down some days, but never getting anywhere fast. Obviously, a quantifiable strategy can be programmed into a profitable Forex expert advisor which can then trade on its own.


Obviously, some Forex EAs being sold out there are just pure junk designed to make money for the seller and not the user. That said, you can easily tell the best Forex expert advisors from the rubbish if you have the right attitude towards trading Forex. Most scams prey on the fantasy that you can get rich quick, and they promise you ridiculous things to get you through the door. Things like 95% win rates, or quadrupling your money in just a few months. You'll fall for these lies hook, line and sinker if you have a "get rich quick" mentality towards trading Forex, and never find the best Forex EA you seek.


Even The Best Forex EA Is Useless Without This


Even the best Forex EA will be useless to you if you don't have the right attitude towards trading. That's because the "get rich quick" mentality will cause many traders to take too much risk on their trades, and try to turn a small amount like $1,000 into $100,000. Even the best Forex expert advisor can't deliver that kind of return, and if you try to push up the risk to achieve them, then you'll end up blowing up your trading account. That's what thousands of new traders do to their accounts every single day, and when it happens they blame their profitable Forex EA even though it's their own fault!


To make the most of the best Forex EA, you need to have a patient and conservative attitude towards building up your Forex trading income. Yes, there is such a thing as a profitable Forex expert advisor, but even the best Forex EA cannot double your money in a few days. So stop buying into such blatant lies, and seek out the ones that promise you a reasonable return and you'll soon be part of that elite 5% of profitable Forex traders.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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Points An Individual Should Know About Just Before Opening Up A FX Account

Forex or Foreign exchange has become much more visible in many business portfolios ever since small traders were given a chance to participate in the FX realm. Despite the presence of strain and the rigors of a regular job, a number of investors still desire to enter and profit from the Foreign exchange trading markets.

There are actually accessible Forex accounts that allows you to train your trading knowledge for 1 month with no threat. There are actually quotes, currency pairs, technical charts and analysis and 24 hr up-to-date news information with regards to your trading account.

The amount of the mini practice account is $5,000 while the conventional practice account costs $50,000.

The lowest commitment in a standard Foreign exchange account ranges from $5,000 up to $10,000.

Generally there are distinct types of forex accounts and many experienced traders keep not one but two or perhaps more accounts while trading. These types of accounts are principally categorized in accordance to how much funding a brokerage can invest. Generally there are about three types of Foreign exchange accounts, namely:

1. Mini account that is the best choice for novices whom possess an initial capital of less than $10,000. Basically, an individual is allowed to participate in Foreign exchange with only $250. Mini account may be a good commencing point which can build up the self-assurance of new and less seasoned traders in the sector. With only a small investment capital, one should not expect to have a substantial gain; nonetheless a person's income is susceptible to minimal dangers of loss.

2. Standard account that requires an original investment of $2,000.

3. Premium trading accounts with significant levels of cash necessary. These kinds of accounts may have diverse buying and selling products and services as well as equipment for innovation.

Along with the presence of all these varieties of accounts, it is worth stating that a good monitored Fx account can perform wonderful things in trading. A currency trader can gain a lot by simply deciding on a maintained account supported with good track records.

A part from all these facts, several benefits are worthy of referring to such as:

- Maintained Forex accounts can enable a trader take part in trading marketplace devoid of the headache of keeping track of it 24/7.

-Monitored accounts are really managed by specialists.

- You will discover maintained accounts which are not connected to the stock game, so assets may be additional varied.

- Greater return maximization may be probable within both slipping and mounting market segments.

- Investments are liquid and may be withdrawn frequently

- Monthly reports of account are generally readily available and there is realtime supervision of account.

Choosing a best account and investing in it presents a risk.

It is vital subsequently to be aware what steps are to take in order to minimize. Listed here are the handful of points to consider if launching a Forex account:

1. In registering for an account, identification is necessary; this can be required by the Federal government Regulation to prevent dupery. A trader will likely be requested to sign a margin understanding. Prepare the necessary files and browse the contracts totally to avoid confusions.

2. Test the practice or demo account to know the basics of Fx trading. You'll find brokers whom impulsively leap in to investing and rapidly suffer a loss of their cash. Spend some time and discover how the forex trading whole process works.

3. Steer clear of being emotionally charged when in a trade. Professionals have to stay with their judgments and never allow their emotions manipulate them.

FX can be considered as the greatest and most unique marketplaces in the world. Specific people, perhaps even inexperienced people get hooked on trading it. Just before beginning a Forex trading account, it really is needed to be informed in all the features involved with trading.


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The Four Important Steps to Start Forex Trading

The trading in Forex requires having the knowledge of it because if a trader steps in this market without any knowledge then he may lose his thousands of dollars and he will also not be able to understand the reason of it. You must have heard that Forex trading has the great money making opportunities but if you want to explore these opportunities then you should learn the basics first before investing. You should follow some important steps if you want to learn the basic and advanced concepts of the Forex market. The four important steps of the Forex trading are listed and explained below.

Search the free online Forex information resources

The Internet has many information resources where you can learn anything for free. Forex trading can also be learned from those online information resources. The presence of these information resources makes it useless to spend money on courses, books, or tuition etc. The Forex brokers are also ready to help their clients in the mastering the Forex concepts. Many websites also include articles, tips and advices related to the Forex learning.

Study the Forex basics and test your knowledge after studying

Finding a free information resource is not easy but if you have found one then use it 100%. You should learn the forex trading in the same way as you have learned in schools. Learn to analyze the charts because the chart analysis will help you to take good buying and selling decisions. Do not forget to test your knowledge. You can easily test your knowledge by explaining the Forex concepts to someone else.

Test your knowledge with a Forex practice account

Registering a practice account will be another useful step in testing your knowledge. There are many sites that offer a free practice account to the traders so you can setup one for free to test your knowledge. As the name sounds, practice accounts are made just for practice. No real money is used in the practice accounts but these accounts trade only with the virtual money feature. This feature is provided by the sites offering the practice accounts. The difference between the practice account and the real account is only of the virtual money and the real money. The practice accounts use only the virtual money and the real accounts use only the real money. The interest of the sites offering the practice accounts to the traders is the possibility that if the traders find the practice accounts useful then they may register the real accounts and trade with the real money. After you have tested your Forex education with practice accounts, you can move on the real accounts.

Register the real accounts and fund the account with money

The next and last useful step is to register the real accounts and move some part of your saving from your bank account to the Forex account. In the beginning, do not risk more than 5% of your investment in any single trade. So if the trade goes in lose then the loss will be minimized but if you earn profit then this win will boost your confidence.

This is how you should learn the Forex trading in steps so as to get minimum loss or profit and maximum knowledge and experience. Remember not to take jump of any step because all steps are very important in becoming a successful trader.


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Tuesday, April 26, 2011

Profitable Expert Advisors - How To Spot The Real Deal

Introduction


In an ideal world, you could go to any Forex trading system website, pick out the latest profitable Forex expert advisors and know that it would deliver on all the promises that were made by the seller. Obviously, it's not so easy to find a Metatrader EA that actually delivers the goods these days, so how do you find truly profitable EAs in the midst of all the junk that is out there? By the end of this article, you'll know how to spot the profitable expert advisors that are the real deal.


Sure Signs Of A Metatrader Expert Advisor Scam


Have you ever gone to a Metatrader expert advisor website that just reeked of being a scam? Typically, these sites are filled with all kinds of bells and whistles that will prey on your emotional weaknesses. One of the classic signs of a Metatrader EA scam are case studies of "beta testers" that made 300% in 3 weeks, 500% in 2 months and so on. It's a smart way for the seller to trumpet the possibility of large gains, while not actually promising you anything concrete. Of course, there's no Metatrader expert advisor in the world that can promise you an expected return, because that would be illegal. So if you see huge returns being "promised" in a matter of days, run.


Another classic sign of a Metatrader expert advisor scam is that the EA seller will try to convince you that their system has some kind of powerful predictive tool like neural networks or RCTPA that will guarantee you a high winning percentage. The truth is, there's no such thing as a Metatrader EA that can predict market movements, because markets are inherently unpredictable. They are affected by millions of factors including natural disasters, unforeseen events and national interests. There's no way a neural network can account for an Earthquake in Japan (and at the time of writing there has just been two in the space of a month) or Flooding in Australia in the height of summer. So again, if anyone talks about "predicting" the markets, forget about it.


How To Find A Truly Profitable Expert Advisors


Contrary to what the scam artists would have you believe, Profitable expert advisors do go through many losing trades, and they won't make you 200% returns in a matter of weeks. In fact, if you can find a profitable EA that gives you a 5-10% return a month, that's enough to set you up for life. If you consistently add to your account each month, and let your profits compound, then soon your trading capital will be producing a level of Forex trading income that will be enough to give you financial freedom.


So how do you find truly profitable expert advisors? It does take some work, but it's a lot better than wasting your time on scam Metatrader expert advisors, I can tell you that. First of all, you already know what the junk EAs look like, so you'll be left with a few good looking candidates of profitable EAs. I would recommend that you start with the most understated one: the one with the lesser hype and the smaller promises. Make sure that it has at least a 45 day money back guarantee, and run it on a demo account until you collect at least 30 trades with your potentially profitable expert advisor. That way you're not risking any real money until you're sure that you've got the real deal.


Profitable expert advisors are hard to come by, but now you're equipped with the inside knowledge of how to weed out the junk so you'll find one much faster than you would have otherwise. The most important thing in your search is to recognize that you need to verify the results for yourself before you trade it with real money. Once you have done that, then you can rest assured that you really do have a profitable EA on your hands.


I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!


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The Forex Explained

A BRIEF HISTORY

The Forex, FX or currency market is the foreign exchange market. The Forex in its present form originates from 1973. However, it has been around, in some form or another, since the time of the Pharaohs. It is a market exchange for changing money from one form or currency to another. If you want to travel from one country to another, you would have to exchange money, and this is what the foreign exchange market does, it trades currencies.

In 1973 the Forex market was started as the Bretton Woods Accord was ended. The Bretton Woods system was started after the second World War, it consisted of a set of rules and procedures to regulate the international monetary system, and it tied all its member countries' currencies to the US currency and this last one to gold. In 1971 the US ended the convertibility of the dollar to gold. As countries started to leave the Gold Standard, their currencies would become free floating and the currency market was born as a result. Free floating currencies means that the rate of exchange would fluctuate, moving either up or down depending on many different factors.

CURRENCIES AND THE FOREX

The Forex market has evolved into a huge over $3.00 Trillion dollar a day market. The majority of the transactions, a whopping estimated 85%, is done in USD (United States Dollar). After that the currencies with the most trading are, the EUR (Euro), GBP (Great Britain's Pound, also known as Cable, Sterling or Pound), CHF (Swiss Franc), JPY (Japanese Yen), CAD (Canadian Dollar), AUD (Australian Dollar) and NZD (New Zealand Dollar). These are all the major currencies.

The most active and lucrative pairing of currencies are EUR/USD and GBP/USD. The British Pound is the most active and fastest moving currency. In order to trade in the Forex, you will want to get a small chunk of the market, in order to get that we have to have a moving market. This means that the currency pair we choose to trade in has to be one that is active and liquid.

WHAT IS LIQUIDITY?

Liquidity means selling to a captive audience for the price that you want. For example, if you were to sell ice to the Eskimos, it would not be a popular product as they have so much of it, and you would not get the same price for it as if you were to sell ice to the inhabitants of a Caribbean island, where ice is a scarce commodity. In the same way, there is a huge currency market which just concentrates on a few select currency pairs because they are the most active currencies. If you choose to trade in a less used currency, you might find not so many people are looking for a trade thus making trading less profitable. The most active pairs are the GBP/USD and EUR/USD. The foreign exchange market is the largest and most liquid financial market in the world.

HOW DO CURRENCIES MOVE?

If you live in the United States of America, and want to go on vacation to Great Britain, you will have to buy pounds with your dollars. This is called a foreign exchange trade. When you are buying a currency, you will be selling another. Exchanges always happen in pairs, you are always exchanging two currencies. If your exchange pair is GBP/USD: If you buy pounds, you will be selling dollars, and if you are selling pounds, you will be buying dollars. You just need to decide whether you are selling or buying, this is a function of a free-floating currency.

When you want to trade in the Forex, you need only concentrate on one thing, whether the chart is going up or down. If the chart, or currency, is going up, the thing to do is buy. If the chart, or currency, is going down, the thing to do is sell.

THE 24-HOUR MARKET

The Forex market is also unique in that it is a 24 hour market. You can trade the Forex 24 hours a day if you so choose. The currency market follows the sun around the world, the sessions flow as follows. If we look at all times as Eastern Standard Time, Tokyo will open at 7 pm EST and close at 4 am EST. London will be the next market, opening at 4 am EST and closing at 12 noon EST. London has the added distinction of being the largest, oldest currency center in the world. It accounts for around 36.7% of all the trades around the world, making it the most important global center for foreign exchange, New York would be second with around 17% and Tokyo third with around 6%. Another distinction about the London market is that the time slot from 4 am EST till 10:30 am EST is well-known to traders as being the most active time when a lot of big moves are made in the market. After London, is the time for the New York market to open at 8 am EST until 5 pm EST. Another good time for trading will be at 5 pm EST until 7 pm EST, because there will be lots of activity in the market at this time as well.

ROLLOVER

Rollover happens every day at 5 pm EST. Brokers shut down their tradings from 4:58 pm until 5:05 pm. They do this in order to rollover the open positions from one day to the next. In the Forex, the interest rates are set daily, so they rollover will roll the interest from one day and update it to the next day.


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Scalping Expert Advisor - The Hidden Dangers You Need To Know

Introduction

It may surprise you that a large number of the MetaTrader 4 expert advisors being offered for sale are classified as a scalping expert advisor. That's because scalping EAs have many attractive characteristics that appeal to the average Forex trader. That said, there are hidden dangers involved with trading a scalping EA that you may never have been informed of, so you owe it to yourself to get the full truth about these EAs before you invest your hard earned money into them. By the end of this article, you'll know the hidden dangers of using a scalping expert advisor.

The Appeal Of A Scalping Expert Advisor

So why is using a scalping expert advisor so popular? Scalping means taking very small profits on each trade (between 5-10 pips normally) with a very wide stop (anywhere between 50-200 pips). Scalping EAs are designed to have very high winning percentages, which appeals to Forex traders because naturally as people we like to win, and we like to win a lot. When market conditions are favorable, a scalping expert advisor can put together 20 or even 30 winning trades in a row, and it's these long winning streaks that Forex traders love to see.

Hidden Dangers Of Using A Scalping Expert Advisor

Unfortunately, every rose has its thorns, but the dangers of using a scalping expert advisor are seldom made clear by the vendors who are selling them. One of the major downfalls of a scalping EA is that it has the risk of losing days or even weeks of profit in unfavorable market conditions. That's because it has a very wide stop that is far, far bigger than the profits it takes. Another risky element with scalping is that it's in the market very frequently, and as a result there's a very real risk of it encountering a sudden unexpected market move like one that was caused by the Japanese 8.9 Earthquake recently.

Even though a scalping expert advisor may be profitable in the long run, many Forex traders will abandon it when it goes through a losing streak because they can't stomach the drawdowns. If you're considering using a scalping EA, you need to be aware that there's a very real risk of you going through a losing period right at the start of trading with it. If that happens, your account may never recover even with the influx of profits coming in later on. Personally, I don't like the risk profile of scalping EAs, and that's why I don't use them to trade.

I've been a full time Professional Forex Systems Developer since 2007. Forex trading is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own Forex trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!

If you're new to Forex trading and frustrated because what you're doing right now isn't working, I can show you how you can make a Forex Passive Income in just 30 minutes! Everything you need to know is in my free report: Winning With Forex Trading Systems.

Article Source: http://EzineArticles.com/?expert=Thad_B

Thad B - EzineArticles Expert Author

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The Foreign Exchange Market and Signals Explained

It's possible that you've heard the words 'forex signals' on occasions, but you're not exactly sure of their meaning. Or probably you do know but you're simply curious to find out a lot more. However, it helps if we explain what the forex market actually is in order to understand the signals related to it, so let's cover that first:


What is the Forex Market Exactly?


Well, Forex is short for 'Foreign Exchange' but what if the world in which we lived only had the one currency? Imagine that for a second. Yes I know, it's ludicrous but it would likely mean that we operated in one global economy. Moreover, there obviously wouldn't be a market called foreign exchange, because if we were all using the same currency, the requirement for foreign exchange rates and currency trading wouldn't exist.


Thankfully though, the world consists of countries who operate their own currencies (obviously the number has diminished since the advent of the 'Euro') but even so, it follows that individual currencies call for foreign exchange rates and the market that trades them. It is this market that converts one currency into another, with fluctuating rates for buying or selling. Stock market traders make their living and in some cases, fortunes, by trading on these constant fluctuations.


The foreign exchange has existed for quite a while now but there have been plenty of changes along the way. Most notably, technology and specifically the Internet, plays a crucial role in the where the actual trading of currencies is concerned, giving traders more scope to trade with better accuracy and follow specific signals when appropriate. Which leads us into.....


What is a Forex Signal?


Basically, these are alerts traders take advantage of in order to take specific actions. They give the trader vital information on when to strategically enter, exit, or freeze a trade.


These signals can be received in a variety of ways. As I said above, technology helps massively and a trader may receive alerts via the following methods:
An audio alert from their PC (useful if you've got better things to do than sit staring at your computer all day).Pop-up messages (If staring at your computer is something you can't avoid because it's part of your job or you suffer from OCD)Text messagesEmails

The last two are handy for traders who are on the road a lot and can receive alerts through their mobile device


Different Forex Signals


In addition to those common buy and sell signals, traders can receive other alerts which are slightly more intricate by nature, these are:
OB/OS - Overbought/Oversold - Part of the RSI (Relative Strength Index) which indicates when a currency pair has reached a specific threshold, readings above 80 commonly indicate OB and readings below 20 indicate OS.Volatility - What the likelihood is of a currency rising or falling and by how much, so the trader can discern risk factors.SL/TP - Stop Loss/Take Profit - Hopefully this is self-explanatory but for the purpose of being thorough, this gives you indicators on when it's best to quit while you're losing/winning.Partial Buy/Sell - which tells you to only buy or sell part of the currency, to minimize risk.

Hopefully you now have a greater understanding of what the foreign exchange or forex market entails but remember to use the signals available to you wisely, or what you're essentially doing is gambling with your money and that is definitely a risky game to play.




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The Best Way To Trade Forex - It's Not What You Think!

Introduction


The typical advice that beginner Forex traders will get is to learn how to trade Forex on their own, design their own profitable Forex trading system, and then they'll be able to make a good Forex trading income. Considering that 95% of Forex traders are bleeding money out of their trading accounts, I wouldn't recommend this path as the best way to trade Forex. There's a far better way to profit from the Forex markets if you're new to trading, and by the end of this article, you'll know what the best way to trade Forex is.


Fact: The Odds Are Stacked Badly Against You


The traditional road to Forex riches is long and hard, and that's why 95% of Forex traders never make it into the "promised land" of Forex success. To learn how to trade Forex effectively, you'll have to make a serious time commitment to spend just about all of your after work hours staring at charts and constantly managing your trades. That means that you'll have a new part time job that is tougher and much more demanding than your day job, but pays you nothing. In fact, you may even lose money for the first two years of your trading. Very few people can stomach this level of commitment, and juggling it with a family while preserving your own mental health is pretty close to impossible.


So why is this still the recommended course of action for beginner Forex traders when it's clearly not the best way to trade Forex profitably? Well, up till very recently, Forex trading was a very exclusive club that was the private domain of secretive bank and hedge fund traders. Individual Forex traders were very rare, and they were typically hardcore Forex enthusiasts that were obsessed with the markets. They learned everything through the school of hard knocks, because there was no other good information out there to guide them through the process. With the explosion of the popularity of the Forex markets recently, there have been rapid improvements and advancements in the technology available to the modern Forex trader, but as in any field the traditional players are very resistant to change.


The Best Way To Trade Forex If You're New


There's a new breed of Forex trader that the hardcore Forex traditionalists can't stand, and they are the automatic systems traders. Instead of going through the school of hard knocks, they leverage on the market experience and knowhow of successful traders with automatic Forex trading systems. In doing so, they skip past the painful learning curve and make a Forex trading income much faster than any traditional Forex trader would. They get to have a life and have a Forex passive income at the same time, because of their automatic Forex trading systems that do all the entries and exits for them.


Automatic Forex trading systems is fast becoming the best way to trade Forex, as systems developers are getting more and more savvy with their modelling of price behavior. So forget about learning to trade Forex on your own, and get on board with this rapidly accelerating trend of automatic Forex trading to lock in your Forex passive income today.


I've been a full time Professional Forex Systems Developer since 2007. Forex is my passion, which is why I really love helping anyone to overcome their challenges and become profitable in their own trading. If you're just getting started in trading Forex, or if you'd like to take your trading to the next level, I'd love to help!

Supply, Demand and the Current Evolution of Yen

Recent monetary developments shows how wrong is the theory that the value of the currency depends on the economy. The value of money does not depend on the economy. Value of money (that is the power supply) depends on supply and relative demand of money, not the prices of the market, nor the high unemployment or any other technical elaboration.


As long as demand exceeds supply, the price trend of the concerned goods (currency, stock or anything else), will be rising. When the supply and demand are balanced, the goods price will move sideways, between intervals of price well defined or not, called phases of congestion or accumulation.


This phenomenon could be noticed concerning the yen. If the theory of the currency value as a reflection of the state economy would be valid, the yen should have depreciated. The yen was raising in value because of increased demand for money. This increase in demand has been caused by the necessity to avoid uncertainty on payments and future payments.


In other words it's about fears induced because of the earthquake, the tsunami and the damaged nuclear power plant. Because of this increased state of uncertainty grew the demand for liquidity, thereby increasing the value of yen.


This phenomenon was also observed regarding the dollar, at the beginning of the financial crisis. So, how is it that a strong inflationary currency (thanks to Greenspan and Bernanke) grew in value? Here's the answer! The currencies of the emerging countries (China, India, Brazil, etc.), strongly speculated, were perceived as less reliable, with the possibility to collapse ahead of the dollar.


There are many supporters of precious metals, who think that in these catastrophic periods, gold and silver are the basis for economic survival and not only. The problem is that paper money are currently perceived as the only accepted way for payment of everything that exists. After the earthquake in Japan gold and silver were sold for the liquid money needed for buying goods, insurance payments, etc.


The growth of the yen, taking into account the fact that Japan has a huge debt, is catastrophic, being an obstacle for the already affected exports. The question which many analysts and politicians put, is why the Central Bank did not intervened to stop the advance of yen. Well, the answer is that the Bank's management understood that it is better to let the Market to fix prices as desired, without the need for a monetary issuance which would not solve anything at all.


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The Bahrain Dinar and The US Dollar

With the political situation in the Middle East and part of Africa in political turmoil, many of the global investors are staying out of the region and allocating their portfolio elsewhere into Asian and European markets.

Bahrain is one of the country plagued with such turmoil. Starting Feb 2011, students and blue collar workers started to make their unhappiness heard, lamenting on the high unemployment rate and lack of political freedom. Along religious line, the Shiite Muslims, spurred by the regional unrest, started to protest against the mainly Sunni government (Sunni Muslims account for about 90% of the Muslims in the world today, while Shia Muslims largely made up the remaining 10%).

As a result, the 2011 F1 race in Bahrain is now postponed indefinitely due to the political standoff between the opposition and the Bahrain Government. There have also been reports of human rights violation in the Bahrain City of Manama where the police forces quarantined a public hospital and used physical force against civilian doctors and nurses, putting the Bahrain government to shame, resulting in the panic selling of the Bahrain Dinar. This is exacerbated in late March 2011, when the Central Bank of Bahrain, located within Manama's commercial district has been closed off. This further rocks the confidence in the Bahrain Dinar and plunging the Dinar to a new low.

As it stands now, the Bahrain Dinar is set to further depreciate. Currently, 1 Bahrain Dinar trades at 2.6525 US Dollar, or 1 US Dollar (USD) = 0.37701 Bahrain Dinar (BHD). It is expected that the Bahrain Dinar will further depreciate and trade at 1 US Dollar (USD) = 0.39000 Bahrain Dinar by the third quarter of 2011, if the political impasse is still unresolved. Besides the depreciation of the Dinar, it is noted that trading volume had shrunk drastically by 15% since the start of 2011. Forex traders are left wondering if there is still a ready market to sell off the Dinar without getting a big cut off the Bid-Ask spread in the forex market.

Most political analyst believe that it is unlikely for the Bahrain Government to make any key changes in policies or the way political parties are elected into the government. This will probably mean that further protests will be quelled by force rather than through negotiation. Looks like it will also be an equivalent forceful drop of the Dinar value.


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Monday, April 25, 2011

The Easiest Way To a Forex Fortune - And How To Avoid a Huge Loss

Everyone seems to be jumping on the forex bandwagon because there is serious money to be made. However, here's a dirty little secret: the majority of people of people who start trading on the forex (foreign exchange) end up with a loss. Furthermore, a significant portion of these people end up with a HUGE loss.


The problem is that most people are using a technique(s) that is at least a step or two behind. The technique they are using may have worked really well in the past but the forex changes so rapidly it is difficult to keep up.


If you use forex software, it is usually designed after a successful forex strategy that USED TO work well but doesn't work as well at the time you use it. This problem can be reduced by using forex software that has a really real live human being behind it and is working with a really fast programmer who is updating the software at exceptionally fast and furious speed. However, it's almost never fast enough. In fact, I know of no software that updates fast enough to work all that well. I do know a few people who use top-rated software and they about break even.


If you've studied the forex strategies written by experts, there's a good chance that the information was out-dated the moment you received it. Then, by the time you read it and digest it and figure out how to implement it, it's REALLY outdated!


So what do you do?


How do you make money with forex?


How can you get around the problem of out-dated information in the fast paced every changing world of forex?


How can you receive real-time information that is based on techniques that are working right then and there?


The most honest answers to these questions is to find a way to copy an experienced and highly successful forex trader in real time. You want them to send you forex signals in real time (NO DELAYS!) and then you want to copy what they do in real time.


Now, I need to tell you that a quality service like this is as rare as a precious diamond. In fact, I only know of two services that send forex signals fast enough and from an expert who is fast enough on his feet to constantly adapt the ever-changing foreign exchange - to make it so you can copy what they do and make a lot of money.


If and when you do find a service like this, you need to understand how valuable and rare it really is and hop on that opportunity as quickly as you can because I predict this type of service won't be around forever.


I also highly recommend that you don't use real money to test the service but rather sign up for the service and then trade in a demo account for at least a month before you use real money. This will show you how good the signals are and it will help you drastically reduce risk.


I've really dug into this and here's the very best forex signal service I have found. The signals are sent in real time (no delays) and the person sending them is one of the best known forex trading experts out there.


You also get the added benefit of webinars that disclose WHY he's making the trading decisions he's making as you go along. So, you end up learning how to think like he does. Here's the link.


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