The Importance Of Knowing The Best Trading Systems

If you still haven't invested time, money and effort to know the latest about trading systems, you must review your reasons why. If you are into stocks and foreign exchange venture, you must always be on the lookout of various tools that can help you decide and strategise better.

This goes to everyone, even those who think highly of themselves. You may already be the best one and you may be good with how you move in order to gain, but how long will the winning streak last before you seek out the help of something that can help you in the process?

Useful Data

In every kind of investments, whether it be regarding stocks or on businesses, owners must be able to gain access to useful data that they can use in order to succeed with all their decisions and implementation of plans.

Look closely at your favorite store where you often shop for clothes and other necessities. There must be a reason why it has become your favorite. The store was able to capture your attention and it was successful in making you come and try its products and services.



The fact that you are one of its regular patrons proves that their strategies are working. Among these strategies that allowed this store to hook you up as one of its clients is by accessing important data about their target market that includes you.

 By knowing the kinds of people whom they should prioritize when they are doing their marketing gimmicks, they are able to suit these in ways that made you become what you are now.

But how are they able to get such data? You have to tackle the same route to know the vital information that can help you keep up to date with the latest on your trading quest. The main thing that you must accomplish is rigorous research.

You must not stop from learning to be able to arrive at the best sources and information about everything that you want to know about the field that you are playing at.

You are lucky because there are tools that you can use to become a better trader and to be able to come up with better decisions and strategies. All you have to do now is to conduct your research to know what you have to and to find out the best products that you can avail to help you achieve better results on your trading business.

These products are created to monitor all aspects of the trading industry all the time. This way, you can gauge if you are on the right track or if it will be better if you will take another route or postpone your bets on your trading moves.

You may think that you can always rely on other people to give you good advices when it comes to this aspect. But humans have other things to tend to aside from monitoring the movement of the trading industry. They may be able to come up with the right strategies most of the time, but they cannot be that accurate all the time.

To make sure that you will be able to get your hands on the best trading systems available in the market these days, think like how your favorite store thinks. You must never get tired in researching about the matter at hand even if you think you already have the best tool.

 Many similar products come up all the time and you would want to get your hands on them before your competitors could beat you to it.

The Secret Behind How Forex Robots Function

Forex robots are making waves.  They are believed to have provided numerous benefits to traders who are taking advantage of their support capabilities.

Why are Forex robots successful?  Forex robots are also known as Expert Advisers or EA.

They do live up to their name since they are said to have helped in the $3 trillion market turnover everyday in the Forex market.

As an expert adviser, Forex robots provide advice and information about when to buy, sell and close a deal.

 The expert adviser interprets and identify the trading signals that they are able get from analyzing the Forex market. 




What do they do?

• Forex robots provides indicators when a trader would enter or exit a deal.

Some traders would like to be notified first before the robot enters a deal and the trader would manually enter the deal or exit from it.

  But the EA could be programmed so that it could automatically enter a transaction.

 The trader is also responsible in providing the stricture from where certain trade information and signals would be determined.

• Aside from entering or exiting a transaction, the Forex robot can also be programmed to perform trade tasks like buying or selling.

• Fore robots can apply your money management strategy to their program and incorporate it in the trades that they do.

Money management is all about determining how much you are willing to buy and sell, or the risk factor involved in trading.

  Some traders would not include money management and would go for a free strategy.

But this could be a costly mistake, so it is better to make sure that the Forex robot already has money management  or you could input algorithms in the system to integrate your own management style.

• Forex robots are also capable of placing, changing and removing stop losses.  It could also take orders.

To operate a Forex robot or an EA, you necessarily need a computer, stable internet connection and at least some knowledge on how Forex trading works.

You would also have to sign up for an account with a Forex broker, they would be providing a trading program.

This trading program would be monitoring the Forex market and enable you to perform trades manually.

After setting up an account, you can get the Forex robot from a manufacturer.

  The EA would be downloaded to your computer and would make trades for you.

But there is a certain difficulty when using a Forex robot.

Although they can do the trade for you 24 hours a day and 5 days a week, it is impossible to keep your computer working for that long.

So, there are some companies that offer virtual hosting where traders can continue trading while giving their computers and trading robot the needed rest.

These service providers would just require necessary information so that they can host your trading platform.

They would be providing you would a username and password to have access to your server.

When looking for services like this, it is important to have a demo account first where you can check the service before foregoing into trading real money and account.

But as reiterated by experts, having an automated trading system, in this case the Forex robot, is not an assurance of succeeding in trading and becoming a millionaire.

It still relies on your trading skills, knowledge and mindset. Have A wonderful Day.

The Benefits And Introduction To Forex Trading Systems

Whether you plan to venture into foreign or stock exchange, trading systems will help you become successful in this endeavor.

But before proceeding, it is vital to first have an understanding of what they are and how they function.

Trading systems pertains to specific rules or parameters that determines points of entry and exit, called signals, for a given equity.

They are often indicated on a chart in real time and prompts immediate implementation of a trade.

In the construction of trading system parameters, the most common technical analysis tools consists of moving averages, Bollinger bands, stochastic, relative strength, and oscillators.

Most of the time, a combination of these tools determines a rule.

However, there are also instances wherein only one indicator is used in rule creation.


Benefits of a Trading System

Utilizing a trading system provides several benefits to a forex or stock market trader.

Can Increase Profit

Coping with losses is one of the most difficult aspects of being a forex or stock exchange market.

In an effort to recover the money they loss from trading, investors usually make hasty decisions and consequently loss more money in the process.

Since most of these systems are automated, there is no need for the investor to make a decision, as it is the software that determines when to enter and exit trading.

By doing so, losses will be minimized and there is a greater chance for increasing profits.

Not Time Consuming

Again since most systems are optimized and automated, the trader need not exert a lot of time analyzing and initiating trades. The system is designed to both generate the signals and perform actual trade.

More Convenient Because They Have Been Optimized By Others

There are a lot of systems that have been developed and currently being marketed. However, availing of the work of other people entails payment of a certain fee.

However, you need to be careful when choosing a company because many of them are fraudulent.

Pitfalls of Trading Systems

While they may have their advantages, trading systems are not perfect and present their own disadvantages.

Complicated

This is the biggest disadvantage of a trading system.

Creating a trading system may require a solid knowledge of technical analysis, ability to decide empirically, or a comprehensive understanding of the functions of parameters.

While you may not be involved in the development of the system, familiarization with the parameters can be equally challenging.

Requires Realistic Assumptions

In order for a system to become effective, you need to have knowledge of how to differentiate simulated from actual results.

This is known as "slippage" and represents one of the major pitfalls in the effectiveness of a system.

Development Takes Time

The task of developing your own system is time consuming. Getting it to run and work effectively as well as testing it may take some time.

Not to mention the fact that you have to do a paper trade in real time to make sure that your system is reliable.

The factor of slippage may also come into play, which will require you to completely revise your system.

As mentioned above, you need to be careful when choosing a system.

There are firms that are out to get your money and offer a system that does not work.

However, there are likewise legal companies so you should determine the difference between the two.

A trading system can be a helpful tool to novice traders who wants to succeed and make a living out of this endeavor.

All The Best.

Some Basic Facts About Forex Trading

The benefits of using Forex robots have been determined and defined by experts.

There are a lot of experts who have testified to the effectiveness of Forex robots in improving their trade and profits.

 But what is it about Forex and why do people would like to be involved in it. 

Aside from the fact the Forex market can reach as much as $3 trillion of market turnover every day, it has become the fastest way to earn.

 This is the reason why not only individuals are investing in it but also banks, companies and other institutions are turning their interest towards currency exchange and trade. 

Before becoming an elite trader or one of the best traders in the Forex market, you need more than just luck.

There are simple steps that you can follow.

 You can start by working smartly.  Yes, you could work very hard and put a lot of effort into trading.

But you could save the time and effort that you put into trading, if you can start trading smartly.


Forex trading can be learned, there are training manuals where you can learn the different strategies and systems that can be used in Forex trading.

Aside from that there are also automated systems that could also help you learn.


Aside from supporting and making your job easier, automated trading tools and programs can also be instructional. 




A successful trader would also need to be in a healthy trading mindset.

Success would come from mainly on how you think and how you approach trade and transactions.

Having a healthy mindset is not just something that you should have if you are in the Forex trade.

You would need this, whatever trading market you are going to be part of. 

Actually, the mind can take control over the experience.  Results can be proportional to how much effort and though we put into trading.

Little results would come from something you would not be putting any effort to.

 Like the old saying, “if you think you can, you can.”

Forex trading is full of risks.  Sometimes, it could even be referred or compared to gambling.

 Since the market is very volatile, good timing is essential in making sure that you would be getting a good deal.

You would also need a good deal of courage to make sure that you would be able to handle your emotions and close calls.

Some traders who find controlling their emotions difficult would gladly take advantage of automated trading software and programs. 

Aside from courage, you would also need a great deal of patience. Good deals do not happen everyday.

 Even if there are big turnovers in the Forex market, it does not mean that you would always and consistently get good trades.

You would need patience.  Some traders would use automated trading systems to earn big time.

 But there would be instances that it is not possible. 

Automated trading systems would often let you lose your money if you are not conscious about it, like let the system or the program trade for you without you even paying any attention. 

Successful traders could always give you advise on how to trade and how to be triumphant in Forex trading.

  You can even surf the internet, there could be options and various supports you can choose from.

You can take a Forex robot or an automated Forex trading system, but still fail miserably in the end.

 Successful Forex trading involves more than skill, knowledge and tools, but character as well. 

How To Succed Trading Forex

Forex trade is becoming more lucrative and attracting more and more people to start trading.

There is over $3.2 trillion turnover everyday and more people are becoming interested.

If you are a newcomer in this field, there are lot of things that you would hear from authorities and “so-called experts,” like using Forex robots and other automated trading strategy. 

There are things that you need to know about Forex trading, as beginner. 



• Not everybody in the Forex trading wins everyday.  This is totally a myth.

  As a matter of fact, there is about 75 percent of Forex traders who lose their money everyday.

Start erasing all your images that Forex trading is uncomplicated and can be done easily.

Winning in Forex trading is not only about proper trading tools and equipments.

 It is also about trading knowledge and mindset.

• Forex trading is not only about winning.  There are also losing periods.

 It is important to know and understand this fact, since there are some “experts” who would say that there are trading systems that would enable you to have 100% trade wins and zero loss.  This is impossible!

If you are a newcomer, is using a Forex robot the best option for you?

It can, as long as you would be using it correctly. 

There are different reasons why an expert would like to use a Forex robot.

 It could be because of time constraints, wanting to be more flexible, improving their deals, or keeping their emotions at bay to help them make more transactions.

A newcomer or a beginner is a different case. 

Forex robot could actually make things easier for a newcomer.

 Forex trading could be complex and difficult, a software could help beginners understand the principles about Forex trading and understanding the different strategies and systems. 

Expert traders, over time, have developed their own “winning recipe” or their profitable trading strategy.

 A newcomer cannot compete with that.

A Forex robot assists a newcomer in coming up their own winning trading strategy.

Beginners would always follow a beginner’s curve where they could lose a lot of money while giving different trading methods and strategies a try. 

To help the newcomers, these Forex robots can accomplish trades for the beginner.

 Forex robots can be readily brought from different websites.

They are very popular since  it can work with Metatrader4.

You just need to configure it at the beginning and later let it run to autopilot. 

Its installation and setup process is also very easy to accomplish.

Aside from that, there are also videos and instructions that comes with some softwares, which you can watch to expand your understanding on how the system would work.

  Some Forex robot vendors would offer training kit (for additional fee, sometimes).

This would help you get some basic ideas and trading knowledge on how the Forex market works and what to expect from it.

Forex trade success is not just about getting the correct equipment and the right tools.

 It is about getting a proper mindset and at the same time learning the inner works of trading, not from an automated point of view, but from the manual one. 

Forex robots are not limited to be used by beginners only.

Even large financial institutions would use automated trading software and program like Forex robots.

 Just think about it, even if all of traders would be using Forex robots, why are there still traders losing?

  It is because, it is not just the robots that define success.

There are other fields that you need to improve on, like trading mindset and skill, to be able to succeed in Forex trading.

Wishing You Success.

The Risks Of A Forex Robot

Who does not want to have some share with the $3 trillion market turnover that the Forex market gets everyday?  If you are one of those newcomers who are learning how to be a part of the Forex trading market and having difficulty to cope with it, you would also receive a lot of talk about getting a Forex trading robot to help you with your trade. 

We have hear how good this system is and how a lot of people have gained a lot from using it.  But how good is it, really?  Could it just be too perfect that we do not want to worry about anything.  Contradictory to what most people think, Forex robots would also have downsides.

What are these negative effects?

• Heavy reliance on your equipment

A Forex robot is there to help you not to completely take over for you.  A common mistake made by traders is let automated trading programs do the work for them and never ever put even small manual trading. This can turn into a trading disaster in the long run.

If you rely too much on your equipment, what would you do if your computer crashes or you robot encountered problems?  Would this be the end for your trading career? Having sufficient knowledge in doing trade manually could save it, making it really essential if you wanted to succeed in Forex trade. 

Another thing is that most traders that use automated trading system would just leave their equipment alone.  Automated trading system, specifically, Forex robots have the feature called optimization.  This would allow traders to check on previous trades and determine how trades have been won in the past.  This would allow your system to improve its program.  But, there would be times when the optimization process would be too much.  It could keep improving its system until it sees that there are no losses on the data.  But this could buy time and can even lose transactions in the end.

• Believing its magic

There is no such thing as a perfect system.  There are some Forex robot systems that say that they have zero losses under their belt.  Systems that claim this could happen aer actually losing their account.  There are experts who say that system like this could actually earn a break-even after 20 years!

So, just the same with the first point, even if there are Forex robots that claim to have as much as 95 to 100 percent gain, relying on them too much and letting them do the trading without the trader getting involved could lead to disaster.  But traders would have to dig deeper to understand that, actually, their account could end up dipping as much as 75 to 80 percent.  Eventually, this could entirely deplete their account. 

• Alert signs

Some Forex robots would use bad money management strategies, like stop loss could be larger that the target.  Others would not have any trading strategy at all!  Some would not allow backtest, which is something that traders should be conscious about. 

Bottom line is that no automated trading system could make you rich by millions overnight or in weeks.   The Forex market is unpredictable and could be exciting.  But to succeed in this field, miracle-workers like automated trading system is not the answer.  Of course, it could help or provide the necessary support in Forex trading.  But still, a good trading mindset and skill could take you to a long way.

5 Popular Myths About Forex Robots

Forex market is among the most unpredictable and frequently changing market.

 Although, this kind of trade is high risk, there are still a lot of people who are venturing into this kind of investment.

There are a lot of experts who give advice to every newcomer in Forex trading,  it can be about using Forex robots, automated trading, or changing trading strategy.

 How can we separate the right from the myths?

Let’s start with Forex robots.

What are the common myths about Forex robots and how can they be corrected? 

1. Clever and complicated Forex robots offer the best service

Unfortunately, this is not true.  The most simple systems are the ones that may work best.

 The good thing about simple systems is that they use just simple algorithms and requires fewer elements. 

Aside from that, vendors would claim that their programs were designed by brilliant people.

Some would claim that their programs would be created by people in NASA or top programmers.

What does these people know about trading, anyway? 

2. Trading can be improved by scientific and predictive systems

Yes, Forex trading and automated trading systems use mathematical calculations to understand and analyze trading signals and their trends.

 But, are the mathematical calculations some programs claim are really effective.

  Some vendors would claim that they use Fibonacci and it could relatively improve trading systems. 

These formulas could help you analyze the market, but it could never be used to PREDICT the outcome of a trade.

If you can, then there would be numerous people who have gone richer because they won in the Forex market.

3. Forex robots can eliminate loss

There are Forex robots and automated system claiming to have zero losses.

Again, if this would be true then a lot of users would already be walking millionaires.  But that is not the case.

There are about 95 percent of traders who lose their money everyday.  So, the remaining 5%are just the successful ones, out of those small percentage, how many are using Forex robots?

  It is perfectly normal for everybody to encounter a losing period. 

4. You can leave your Forex robots to operate on their own

Forex robots claim that you can just turn on your computer and system and let it operate on its own.

 It can finish deals for you, without you even participating in the process.

 Any trading system has to be executed in a way where it can be monitored and still follow the trader’s trading strategy. 

The reality is that you can let you equipment continue on trading, but it does not mean that the more trades that you have the more gains you will get.

It still depends on how you would make your robot work for what you want and you strategy, not the other way around. 

5. Success in demo accounts is the same for actual trade

Not just because you have proven the effectiveness of the program in a demo account, it could show the same results in the real account.  Everything could be risky.

 This is why it is important to check customer reactions and comments about the products.

Most Forex robots website and forum would offer discussions about what are the  common problems encountered in real accounts and hot it was resolved. 

The Advantages Of Trading With A Forex Robot

We all might already have an idea what a Forex robot can do for Forex traders.

 Forex robot manufacturers would claim that this technology enabled them to gain more profit, but aside from this, what other advantages can a Forex robot give?

It is not unusual for a trader to a lose because of backing out from a deal that they think would end up in losing, only to figure out that this trade would go for the better.

Emotions can influence traders and make them indecisive.

 This psychological factor is actually one of the major problems a Forex robot addresses. 

Forex robots can eliminate the factor that human emotions could interfere with a deal.

 Aside from human emotions, robots could also eliminate user and manual error.


Forex robots, deprived of any emotions, would be able to logically and rationally analyze the trading signals and determine if the deal is profitable or not. 

A forex robot could maintain constant operation.  It could manage and trade your account without you having to do any manual trading on your own.

It constant monitoring would help a trader cope and analyze trading charts.  Forex robots do not only monitor a determined or particular currency pair, but could almost analyze and monitor all the currencies. 

Being able to monitor all of the currencies in the Forex market, would help you identify possible trades where you can get more profit.  Its monitoring and updates are actually real-time monitoring.

 Keeping in tabs with the development of the trading market real-time, could give you an edge if you would like to pursue the transaction.

 There are some automated systems that would only monitor a currency pair, but Forex robots could analyze about 20 trading signals and determine deals of several currency pairs. 

Aside from monitoring different currency pairs, you could trade in different markets, in different time zones.  But still, it would be based on the market and business hours.  But commonly, Forex market operates 24 hours a day weekdays. 

It could even be programmed to determine points where you would like to place an order or exit a deal.  This characteristic would allow traders to be able to enter trading deals without being present.

This means more flexibility.  You could do other work while your program would do the trading for you.  This is great especially for those who has limited  time in trading because of time constraints. 

A Forex robot could also trade in real time.  It could close on deals and handle transactions in seconds.  Manual trading would not be able to do this.

 But mathematically speaking, robots could be a deal smarter than people. And Forex robots intend to determine the how you can get higher profits and trades in a short period of time given several indicators and factors.

In international trading like Forex trading, the most difficult part could be getting the payments. 

Sometimes, there are risks of delayed and worse, non-payment.

Using a Forex robot would minimize this risk since the purchases will be coordinated with the software. 

There are great benefits a trader could reap from using a Forex robot, you just to make sure that the robot that you would get will work for you.

So you have to do some research and look for your best option.

 This would improve your profitability in the Forex market.

Enjoy Your Day.

Things You Need To Know About A Forex Robot

Newcomers and experienced traders are getting introduced and liking how Forex robots were able to work for them.

Fore robots can work as an ideal Forex trader, the difference it is it automated and can be programmed.

This technology can actually work for you 24 hours a day and 5 days a week. 








If traders rely on these robots for their trade and transactions, is it foolproof then? 

Forex robots have complex algorithms that enable them to do mathematical calculations based on the detail that they get from actual data from the Forex market.

These programs could analyze millions of data in less than a second. Some experts would say that these programs eliminate the user error factor.

Decisions about entering or exiting a trade, buying or selling, depends on these calculations and trade signals. 

Forex trade is a very unpredictable, liquidated and volatile market.  These make trading, even for those who are experienced, difficult.

Which is why, most beginners, would rather have Forex robots and other automated trading system to help them with their initial trades.

Once you  have decided to have a Forex robot of your own, there are things that you would have to know first. 

• You should at least have a computer, stable internet connection and some basic knowledge about currency trading.

You just do not join something you have no idea about, or at the end you can suffer the consequences. 

• Any problems that you have encountered when installing the program is a bad sign.

So when you have encountered anything, even a slight glitch, make sure to have the program replaced by the vendor.

This is why it is important to know if the vendor offers money back guarantee or good return policy before even going ahead with the purchase.

Before purchasing any software, make sure that they would work smoothly with your operating system.

• Demo accounts are important.  Do not shove them aside.  Remember to test the program first with a demo account before you use your real and actual account.

Of course, testimonials and comments would say that the product is awesome and perfect,  but do not rely on it too much.  Try doing some research and information-gathering about your program.

• Internet connection could affect how your system works.  If you are experiencing any problems with the bandwidth, it could affect on how the signals are being detected and interpreted.

• Support is essential.  Make sure that there are online and even phone support offered to users and traders that would make sure that any issues about the program would be immediately addressed.

• If you have seen a Forex robot in the market or in the internet  that you are interested in buying, make sure that it is up to date.

You do not want to have an outdated robot that could not provide accurate information.

Clues if it’s the most recent are in the version history and how often the websites get updated. 

• Forex robots are not only capable in handling entrance and exit orders, buy and sell transactions.  It could also perform other functions like charting.

When looking for Forex robots, standard trading tools would include Fibonacci levels, RSI, Stochastic and moving average.

Check the features included in the program you would be buying.  You would like to get your money’s worth, right?

Forex robots are not exclusively for newcomers in industry.  An expert trader can reap numerous and outstanding benefits by using this technology.

It’s a win-win situation really, as long as you keep in mind that the technology should not over run its creator.

How Forex Robots Works

The Forex market is one of the most volatile markets and yet the most continuous and simultaneous trading in the world.

A Forex trader profits from the movement of the different currency worldwide.

It’s market is very speculative and unpredictable.

 Currency values can change in milliseconds because of different factors.

This is where Forex robots come in.

Forex robots enable traders to trade without making emotions rule trading.

There would be times when traders exit a trade because of changes, only to find out that the endangered value would come up again.

  For some traders, keeping your emotions in check and maintaining composure and being rational can be very difficult.

What is a Forex robot?

A Forex robot is a computer program that analyzes the Forex market based on a particular Forex trading system or strategy. 

The good thing is that these Forex robots are capable of analyzing more than one currency pair.

It is programmed to identify a pre-determined point where the robot can place an order or exit a trade.

 Upon determining a particular trade deal where you would be able to profit, the robot can place or continue with the order without the trader actually being present.

Forex market changes very fast.  Political, social and economic changes in a country can change the value of the country’s currency.

Aside from that, there are other factors that can change the currency value.  And it could happen in just a matter or milliseconds.

This abrupt change can make timing very difficult for traders.

About 95 percent of traders fail to make any profit every day.  How can you be part of the successful 5 percent?

Whenever you are doing some Forex trading, timing is crucial.  This could either     make or break your profit.  A Forex robot could help you to improve the timing of your trading.

 This change could actually help you attain bigger profits in the long run.

The good thing about a Forex robot is that it could monitor all the currencies in the world. 

It could monitor and determine not just one but more than 20 trading signals.

With this capability, it could easily monitor all the currencies and let you know if it has detected a profitable trading opportunity for you. 

A Forex robot can even be left at charge. It is ideal for traders who needs time flexibility or have time constraints.

 Forex robot can do the work and seal the deal for you while you are doing something else or doing some other work.

They can even continue trading for you even if you are sleeping or playing golf.

Forex robots are not the same though.  If you are looking for a Forex robot, you would have to take account your personal situation or lifestyle, objectives and previous trading experiences.

Unfortunately, not all Forex robots have the same profitability.  Its quality could sometimes be dependent on the manufacturer of the program.

There are some Forex robots which would claim that their profitability would  be about 95%, while some would be less that that, or sometimes worse. 

So when looking for a Forex robot to help you with your trade, you would have to consider a lot before making a purchase.

Aside from that, not all Forex robots can be left to operate on their own.

 There are some which would require to have manual participation while making the trade.

You would have to take account all of this when looking for a Forex robot.

Are You A Forex Trader Or A Gambler ?

You might be treating the forex market like your own personal casino right now and not even know it.

In fact, if you are like many people trading the forex market, you are probably more of a gambler than a trader.

Traders who fail at making money consistently in the market have a gamblers mindset; they do not have the professional mindset and habits that consistently profitable traders have.

How do you know if you are approaching the market like it is a casino or like it is a business?

This article will answer this question for you and it will give you some insight into how professional traders think and act, it will also discuss how price action trading can foster a professional trading mindset.
 
• Are YOU a forex gambler?

There are basically two types of people trading the forex market at any given time; people who are gambling with their money, and professional traders who treat forex trading like a business.




As you probably could guess, the gambling traders are the ones who lose money; the professional traders are the ones who make money.

In order to determine whether or not you are a gambler in the forex market, let’s discuss some of the most common characteristics of gamblers, if you are shocked at how many apply to you there is no need to worry; this article is the first step in changing your mindset from that of a gambler to that of a professional trader.

• Characteristics of gamblers…

Gamblers are addicts; they are people who do the same thing over and over just to get a euphoric “high”, even if it hurts them or loved ones.

Gamblers think of a trip to the casino as a non-professional event, they view it as a hobby, or as something to do with their free time.

Unfortunately, this “hobby” often turns into an addiction, one that can cost thousands of dollars to sustain.

 Gamblers become addicted to the “hope” of gambling, this is why they keep losing and don’t change their habits, they put more and more money into their gambling addiction, sometimes even funding it on credit.

 Gamblers believe they are always “one away” from that next big jackpot or that next lucky card, so they continue to throw more money on the table, convinced that it will all be worth it in the end, because they think they will ultimately just make back everything they have lost and much more.

Typically, what happens to most gamblers is that they lose so much money they eventually snap out of their haze and walk away much poorer, or some sort of intervention is required to wake them up to the reality of what they are doing.

 Now, we aren’t talking about a once a year trip to the casino here, we are talking about a full-fledge gambling addiction.

Unfortunately, many traders treat their forex trading activities exactly like a gambler would.

Many forex traders become addicted to the feeling of “hope”, essentially they become addicted to the feeling of getting rich or that the next “big one” is right around the corner.

This causes them to behave like they are a gambling addict in a casino; pumping increasing amounts of money into their trading accounts, risking random amounts with no money management plan, meddling in trades after they are live for no good reason, chasing the market, and a whole host of other addictive trading errors.

Traders who are addicted to trading get too much enjoyment out of it. Even when they are losing money they are thinking about ways to “make it back”, or how this is just a temporary set-back and so they immediately begin looking for another setup to trade.

 For traders who treat the market like a casino, reality becomes a thing of the past, they enter into a sick world of over-trading and over-leveraging their accounts because they are operating purely on greed and hope, all the while ignoring the true reality of the risk involved on every trade.

Gambling addicts in a casino think and act exactly like forex trading addicts do while in the comfort of their own homes, it is the habits and mindset of a professional trader that separates him or her from a forex gambler.

Let’s now discuss how a professional looks at the market and how you can begin to change your gambling mindset and habits.

• Professional forex traders…

In order to become a professional forex trader, you must begin a transition from gambler to professional, this transition will begin in your mind and it will direct you in creating a different reality which will include positive trading habits that will work to reinforce your professional trader mindset.

In order to begin thinking like a professional trader you must think about trading as a business, and just like any business you must understand there is risk involved, real risk, you must figure out a way to compensate for this risk that doesn’t involve running your costs up so high you cannot operate the business anymore.

In the mind of a professional forex trader, money management is the way to manage one’s risk.

Correctly understanding and implementing risk reward strategies is the way professional traders compensate for the risk involved in any trade, combined with a refined sense of patience when selecting trades.

Professional traders typically get very little enjoyment out of entering or exiting a trade because they encounter very few, if any, surprising moments in the market like gamblers do, this is because professional traders know what they are going to do in the market before they do it, in other words, they have a forex trading plan.

The fact that professional traders have mastered their forex trading strategy, means they don’t lose money and then seek to immediately trade to make it back, they are confident in their trading strategy and they rely on the long-term edge to recover any short-term losses.

Professional traders trade only a small basket of major currency pairs and only a few reliable setups.

 Patience and precision are the tools that a professional trader employs each time they interact with the market, in comparison, gambling traders take random shots in the dark with a very limited supply of ammo; they do this because it makes them feel good, and it gives them their trading “fix”.

• What you can do now…

Here are a few things you can begin doing immediately to begin the transition from being a gambler into thinking and acting like a professional trader:

• Be realistic about how much money you can make given the amount you have at your disposal to trade with.

Don’t put unrealistic expectations on yourself and you will be far less likely to over-trade or over-leverage your account. Make sure you can sleep soundly at night with the amount of money you have at risk on a trade.

• Begin thinking about the forex market as an arena for self-improvement. Understand that the degree to which you have limited or no control over your own behavior and emotion, will be the degree to which you lose money in the market.

 The more you operate on logic and pre-emption, the more likely you are to make consistent money in the market.

You will likely notice a shift in your daily behavior and mental state in all your activities and relationships, not just with trading, when you become more emotionally controlled and self-aware.
 
• Start keeping a trading journal, record all aspects of your trades before and after you enter them.

 All businesses must track their expenses and manage their daily activities, having a tangible trading journal that you force yourself to keep up-to-date is an excellent way to keep yourself accountable and to keep your mind focused like a business person instead of a gambler.

• Model yourself after successful people…
 
Following the forex trading strategies and the mindset of a professional trader can help you greatly in making the transition from gambler to professional trader.

Professional traders are much simpler than what many beginning or gambling traders might assume; if you walked into a pro trader’s office, you would not find any complex indicator-laden trading systems.

The reasoning for this is simple; the industry hype is overrated and does not work, people sell trading systems that don’t work and that are over-complicated because they are not professional traders.

 I teach plain vanilla price action strategies to my students because it has brought me many years of stress-free profitable trading, and I know that by adopting my professional trading strategies and way of thinking, you too can become a profitable trader.


If after reading this article you KNOW that you are stuck in a cycle of gambling and trading for pleasure, then it’s time to make a shift in order to profit, after all, you cannot expect different results if you don’t change what you are doing.

If you want to learn more about successful forex trading and employing the power of simple price action strategies, please visit my Price Action Forex Trading Course page here

6 Steps To Start Your Price Action Trading Journey

So you’ve acquired an interest in price action forex trading and you want to get started as soon as possible, but you aren’t quite sure how to begin, or perhaps you aren’t quite sure if what you are currently doing is getting you started on the right track.

Does this sound like you? If so, read on, because today’s article is going to take you step by step through the very beginning stages of learning to trade forex with price action.

 I am going to lay out in very clear terms exactly what you should do to get your forex trading career off and running to a solid start. Let’s get started…

After Reading – Please Remember to Make A Comment Below to Show Your Support.

The first thing you need to do after deciding you want to learn how to trade the forex market, is find a trading strategy or trading setup that makes logical sense to you and that you know has worked for other traders.

Once you find this strategy, study it intensely, focus in on the main concepts and don’t deviate from your chosen strategy; genuinely focus and embrace it.

Too often beginning forex traders will switch trading strategies after not really giving the current one they are using a serious effort.

 No trading strategy is going to bring you instant success without any study and effort, and the ones that claim to do this are almost certainly scams.

If you want to learn how to trade the forex market with price action strategies, then you need to truly commit to this trading strategy and embrace it completely, don’t get distracted by the myriad of other trading systems and strategies out there, you must put all of your focus and mental energy into mastering the art and skill of price action if you want to be a consistently profitable price action trader.

2. Begin your forex education and begin demo trading…

Now that you have picked your forex trading strategy it is time to find a quality source of forex trading education on the particular strategy you want to learn to trade with.

Once you find a trusted and genuine forex trading education source, you should begin to absorb and learn from all the materials they offer.

While you are studying this material you should be observing the charts, watching the price action, and generally studying how the concepts you are learning apply to real-time price movement.

You can open a demo account to get this process rolling; begin taking notes and logging any demo trades that you take which are in-line with the concepts of the forex trading strategy you are learning.

You can record your demo trades in a spreadsheet or notebook, include a snapshot of the chart containing the demo-trade setup that you took, save it in a folder on your computer or print it out to use as a reference later on.

3. Begin to morph your demo-trade observations into a draft forex trading plan…

As you build your demo-trading track record and you get a decent amount of trades logged, you will begin to notice that some trade setups worked better than others in certain market conditions.

Keep record of the types of setups that you see working most often, record the specific setup and the market conditions that it formed in (trending/consolidating/quiet/volatile), make sure you note all important factors in these records; the type of signal or setup, the direction of the market at the time of entry and exit, nearby levels that acted as turning points, note the time frame, and make sure you record the potential risk / reward that these setups are providing.

By doing this you are building the basic foundations of your trading journal that we discussed in step 2, this will become your actual trading plan later on as you progress and master the trading strategy you have chosen.

This 3rd step of building your trading journal and drafting your trading plan is essentially just about you making and recording observations of things you see working in the market, according to the concepts you have learned in your trading strategy educational material.

Record as much as you can and keep it all for later reference, this step is about learning to use the concepts of the trading strategy that you will employ, so figuring out what works and why, is very important in building your final forex trading plan.

4. Start trading with your draft plan…

Now that you have a draft forex trading plan, it is time to start logging your demo trades officially; as if you were trading them for real.

At this point you are training yourself to stick to the basic concepts in your trading plan, during this period you will also be tweaking and improving your trading plan; adding the finishing touches.
 This means you will really be focusing on and recording the concepts that you see really working and that you understand clearly, this will work to solidify your trading plan.

There is nothing wrong with asking questions of your trading mentor or trading peers at this point, if you feel like you need to study more and go back and re-read or re-watch the educational materials that you learned from, then by all means do it, you want to make sure you thoroughly understand all the concepts now and that you are completely happy and confident with your trading plan.

5. Finalize your trading plan…

At this point you want to finalize your draft trading plan and trading experiences into a final forex trading plan.

If you are a price action trading student your plan should focus on one or two core price action setups, after you finalize your trading plan you should repeat the process from step 4; log demo trades and keep up your study and discussion with peers and mentors.

By this final step you will likely have simplified and condensed your thoughts and ideas from the earlier stages of your forex trading educational journey; at this point it is time to begin implementing and testing risk reward and money management techniques on the trading strategies in your trading plan.

6. Making it all work…

Implementing all of the steps above will not mean much if you are not using an effective forex trading strategy like price action.  

Learning to master the charts by gaining a thorough understanding of daily price dynamics in the forex market will allow you to clearly see what is happening in the market at any given point in time.

The simple and realistic approach of learning to trade off naturally occurring price action setups is a trading strategy that has been effectively used for hundreds of years.

 Once you are properly trained in the unique and proprietary way that I personally have successfully traded price action for years, the setups that I teach will begin to “jump” off the chart at you; practically begging you to trade them.

 There is no confusion or doubt once you become a proficient price action trader, this is because you are trading with the first-hand data of the market; pure price action.

SOURCE:http://www.learntotradethemarket.com/forex-currency-trading-blog/how-to-start-your-price-action-trading-journey

The Forex Assassin Vs. Forex Power Strategy Simply Explained

For those who have an interest in the huge Trillions of dollars a day foreign exchange market, it's common knowledge that to be able to remain on the right side of the Forex market.

what you require is to constantly discover new plans to minimize your losses, to maximize your profits, and to always adapt so that you can grab any and every opportunity to get a bigger share of the pie.

The Forex Assassin formula and the Forex Power Strategy are two of the most widely used currency trading tools.

Both these tools have received great reviews, but their operating principles are entirely different.

As a Forex trader, how would you understand which is the better tool for you?




To help you out of your confusion, just read on.

The Forex Assassin formula is designed as a solution to the busy man’s problems with forex trading.

This tool is ideal for the average 9 to 5 professional who wishes to generate some extra income through Forex dealings but can’t muster the time to either monitor the markets throughout the day or study intricate technical formulas, analysis and graphs.

Forex Assassin is a simple and convenient strategy that can be used with little or no understanding of how the market actually works.

It normally takes about a quarter of an hour every week to prepare and assign a trading strategy, after which you just have to relax and allow the market to do its work.

It is very straightforward, but on the flip side also rather limited, as you are not required to have much understanding of the market.

The whole target is to allow the dummy to make limited money by minimizing his chances of loss, which however is not certainly the best way to make the most money.

Conversely, The Forex Power Strategy tool offers a detailed and an in depth course in the dynamics and economics of the market. It takes into account a whole lot of material, and includes all levels of trading.

  As a result it requires a high investment of your time and attention to make the most of the course and absorb its lessons.

So unless you can commit quite some time to it, the Forex Power Strategy tool is not Really for you.

But in return you have the assurance that by the time you study it, you will have achieved a better and sounder knowledge of how the market works, and thus your earning potential will be correspondingly higher.

But no matter which tool you choose, using either is better than trading just blindly in the market and ending up with huge losses. 


Best Wishes.

The Importance of Real Time Forex Charting

Do you want to earn money in the arena of foreign exchange? In order to accomplish so, you should possess in-depth technical knowledge, focused on the capability of tracking currency exchange rates, through interpreting actual forex charts.

If you are an amateur in this field, you should quickly discover authentic forex charts from the Internet or may opt for free actual forex charts. 

The best option is however, to take the help of free chart recognition software and mastering on it, you are well suited for this business.

Online forex charts keep you updated about currency values at any time, even between short time gaps like minutes to long intervals like several years. 

The graphs depicting the oscillations in rates are line graphs, or bar diagrams or candlestick charts.

Line charts are easy to interpret and help you to broadly check ups and downs of prices. It aids you to track the current trend of rate movement.

 On the contrary, bar charts are not as lucid as line graphs but supply a much in depth information.

To summarize, the length of a bar chart depicts the amount of rise or fall in price and the breadth gives the duration, which has witnessed this. 

Initial and final rates are mentioned on chart so that you can identify the range and whether it’s a fall or rise. 

There are pattern recognition software available that interpret the bar diagrams for you and make your task easier.

The Japanese were first found to use candlestick charts to plot their amount of their rice production. Since then they have been increasingly popular. 

Though they are similar to bar diagrams, they are colored.

Each color acts as a code to signify the rise or fall in price. The index is written on the graph itself. Thus candlestick plots are much more user friendly than bars. 

Candlestick charts have unique patterns and they are as pretty as to be named after natural beauties. As soon as you are able to identify the particular pattern you will identify the market trend.

An actual forex chart is often complemented with many technical indicators such as trend, strength, volatility and cyclic movements. 

A forex chart is useful itself, but this adjunct information is provided to ease your task of market analysis to predict both movements in the market and market volume.

Calculating Interest on  Forex Trades

One of the best things about Forex trading is the fact that one can trade using leverage, thus borrowing as much as 1,000 times your capital in order to make a trade. 

However, borrowing money for trading in foreign exchange is the same as borrowing it for other purposes—interest must be paid on the loan. 

However, as currency trading involves both buying and selling, the interest due on your loan can be offset by the interest earned on the currency you buy. 

Before going on to particular examples, let us take a look at interest rates in general, to see how the foreign exchange market is affected by it. 

In central banks, interest rates are set in accordance with a country’s monetary policy—high interest rates make the currency more expensive to buy and lower interest rates make it less so. 

Imagining the government of a country with high inflation will help you understand how interest rates are used.

The government, because of rapidly rising prices, might decide to raise interest rates.

 This would increase the cost of the country’s currency, and make demand and consumption fall, as borrowing would be more expensive.

This in turn would cause prices to fall and inflation rates would come down. 

Similarly, a country undergoing recession might lower interest rates to boost the country’s economy, as lower price of currency would cause demand, and, therefore, supply, to increase. 

Interest rates set by central banks also determine at what rate commercial banks can borrow from governments and lend to their customers, including forex traders. Which tells us how interest rates affect this trade.

A trader who, for example buys GBP/USD, needs to borrow the Dollars to buy the Pounds and will, thus, pay interest on the USD and earn it on the GBP. 

If the interest rate the Bank of England sets for the UK Pound is higher than the one set by the Federal Reserve for the US Dollar, the trader will earn more on the UK Pounds he bought than he pays on the US Dollars he borrowed, thus making a profit.

However, unless there is a significant difference between the two interest rates, the net profit or loss will be marginal. 

Besides, while interest rates are set on an annual basis, trading positions are usually opened for short periods. This serves to significantly lower any gain or loss on interest rates.