Why automated Forex trading? This is a logical question and it demands a logical, well-thought-out answer. After all, with so many hundreds of different varieties of investment vehicles around, why choose to trade foreign currencies? And more to the point, why try to automate the process?
To find a sensible answer, we'll need to look more closely at Forex investing and its various aspects. First, of course, the volume traded on the Forex market is huge relative to the other markets.
Second is its ready liquidity. With the market operating 24 hours a day, it's always open for business anywhere, anytime.
Third, since the market is so vast, one trader's buying or selling, even in very large volume, will cause no significant movement in market price.
Fourth, this market commands the largest number and variety of traders.
Trading locations are scattered all around the world, rather than being centered in just a few major cities of the USA or Europe.
Of course, as with any major market, many factors can influence foreign exchange rates, which may account for the powerful attraction for many Forex traders - the excitement. Average daily turnover in the foreign exchange market stands around 2 to 3 trillion dollars. That's DAILY turnover, and the figures come from none other than the Triennial Central Bank Survey of the BIS (Bank for International Settlements).
And the trend is upward. In other words, more money gets traded with each passing year, and may surpass $3 trillion within a very few years.
Perhaps most amazing, however, is the fact that anyone can enter this market and begin to trade foreign currencies. Entry requirements are low. This has been both a positive (because initial deposits are minimal) and a negative (a lack of experience can bring losses very quickly).
Now however, Forex trading can be partly automated by software that is sophisticated enough to offset much of a beginner's lack of knowledge. Even better, this software is not at all expensive - not when compared with the profits it may bring.
The concept of automation marks an important new trend in the foreign exchange trading market. The Interbank spot Forex market has also considered automating as well.
Automation actually brings a number of important benefits to Forex traders - especially those just entering the market.
With your computer handling much of the trading process for you, transactions can be done in real time. Although manual systems are well established, they have never offered the speed that an automated Forex trading system does. All trades are initiated and completed within milliseconds, which can be a huge plus because they virtually eliminate any lag time.
Problems that characterized manual trading methods can now be addressed and eliminated, or at least minimized. For example, if a trader were hit by a few losses in a row, he could be wiped out and unable to make new trades. This problem can easily be addressed using an automatic trading system.
Automated Forex trading also permits greater diversification. In the past, if you wanted to trade more currency pairs simultaneously, or a wider variety of them, you were limited by your memory and concentration. But thanks to automated trading, you can execute trades with other traders in Singapore or London or wherever, even it's midnight where you are. Thus you have the option of doing multiple exchanges.
You can also quickly evaluate various trading models from short-term data, projecting trends for as short as 15-minute or half-hour time slices.
As mentioned, extreme liquidity makes the Forex market unique. And greater automation will only increase this liquidity, with funds flowing faster than ever.
Risk becomes easier to manage with automation. International checks, now commonly used in Forex market purchases, are synchronized via automation technology. Since automated transactions are handled in real time, there is little chance of delayed payments, reducing the risk of non-payment by either party. And although issues still exist with the use of automated systems, they can easily be addressed and resolved through consistently updating the technology.
With the spread of automated Forex trading, the $3 trillion daily turnover may soon be far surpassed. And given the fast, efficient trades between any and every time zone, Forex trading is certain to remain one of the most profitable business models in today's changing world.
Friday, October 23, 2009
4x Trading Software At Its Best
The Forex MegaDroid has been developed by John Grace and Albert Perrie. Both are forex traders with 38 years 4x trading experience between them. As close friends, over time they firmed up their thoughts about developing their own 4x trading software robot.
Sadly the Forex MegaDroid has a horrid sales page like all the others do - which initially was a big turn off for me.
It's exactly the look and feel you'd expect from a used car salesman with sleazy tactics. It is so tacky that I expected to be reporting here that their 4x software product is a disgrace. But during my research of them, I was forced to reconsider my first impressions. The proven, ongoing live testing results confirm this.
In all of the live-account testing I have seen, there is no question that it performs exceptionally well. They claim better than a 95% successful trade rate - which I doubted very much - but it's true. I have seen the proof many times.
Visit Forex Robots Reviewed by clicking the link below to see links to live 4x trading accounts of this 4x software in action.
This guy bought his MegaDroid, installed it easily, and opened live forex trading accounts with 3 different brokers. In each account he put $3,000. From each account ID, he gave his MegaDroid the data feed from each broker. The robot can then execute trades on his accounts.
He set his limits of risk he was happy with per the training. And then he sat and watched. He is a novice trader. He has just started out. He did nothing more than install it, set it on the default risk levels. Then he just watched and let it do its thing.
At the time of writing that review (May 14, 2009) - his 3 different broker accounts (using the one copy of MegaDroid) had made 37 trades.
Of the 37 trades, 36 made a profit - only 1 trade lost money - $7.36. For the 24 days trading till just then (on fully automatic) - his net profit is $1,067.15.
I am impressed by that. As of May 14, 2009 that's 97.3% profitable trades.
Also it is important to note the $/trade profit versus the $/trade loss. The 36 profitable trades were for an average of $29.85 profit each trade. As said, the 1 losing trade was for $7.36.
So, that's 36:1 profit to lose ratio on the number of trades. And a 4:1 ratio on the size of profits compared to losses.
My view is that even if a trader was expert and smart enough to do what the MegaDroid has demonstrated here, no human could concentrate long enough and consistently enough to match the performance.
Still not impressed? Then look at other live 4x trading account on the website Forex Robots Reviewed (link below).
MegaDroid $10,000 opening balance January 1, 2009 LIVE
As of May 14, 2009 it has now got a balance of $78,138.70. 103 trades - 101 trades made a profit. Look at the profit graph - sorry you have to visit the web page to get the link to the live 4x trading account.
Through the years of Forex trading John and Albert did realize that most Forex robot systems were designed and developed with only a single forex market condition in mind.
While this maybe true, I don't really care - I just want it to make money reliably and safely.
Every Forex trader does know that the forex market changes all the time. It is clear from real proof that the MegaDroid Forex Trading Robot has a system built into it that embraces this change.
The vendors claim this system has been successfully created to perform at 95.82% accuracy. What I have witnessed from real traders doing real trading it performs better than that. The novice is seeing 97.3%, and the professional is seeing just slightly better than 98%.
But don't rush off an buy Megadroid just yet. There are some important facts you need to know - so visit Forex Robots Reviewed to find out all about it.
Sadly the Forex MegaDroid has a horrid sales page like all the others do - which initially was a big turn off for me.
It's exactly the look and feel you'd expect from a used car salesman with sleazy tactics. It is so tacky that I expected to be reporting here that their 4x software product is a disgrace. But during my research of them, I was forced to reconsider my first impressions. The proven, ongoing live testing results confirm this.
In all of the live-account testing I have seen, there is no question that it performs exceptionally well. They claim better than a 95% successful trade rate - which I doubted very much - but it's true. I have seen the proof many times.
Visit Forex Robots Reviewed by clicking the link below to see links to live 4x trading accounts of this 4x software in action.
This guy bought his MegaDroid, installed it easily, and opened live forex trading accounts with 3 different brokers. In each account he put $3,000. From each account ID, he gave his MegaDroid the data feed from each broker. The robot can then execute trades on his accounts.
He set his limits of risk he was happy with per the training. And then he sat and watched. He is a novice trader. He has just started out. He did nothing more than install it, set it on the default risk levels. Then he just watched and let it do its thing.
At the time of writing that review (May 14, 2009) - his 3 different broker accounts (using the one copy of MegaDroid) had made 37 trades.
Of the 37 trades, 36 made a profit - only 1 trade lost money - $7.36. For the 24 days trading till just then (on fully automatic) - his net profit is $1,067.15.
I am impressed by that. As of May 14, 2009 that's 97.3% profitable trades.
Also it is important to note the $/trade profit versus the $/trade loss. The 36 profitable trades were for an average of $29.85 profit each trade. As said, the 1 losing trade was for $7.36.
So, that's 36:1 profit to lose ratio on the number of trades. And a 4:1 ratio on the size of profits compared to losses.
My view is that even if a trader was expert and smart enough to do what the MegaDroid has demonstrated here, no human could concentrate long enough and consistently enough to match the performance.
Still not impressed? Then look at other live 4x trading account on the website Forex Robots Reviewed (link below).
MegaDroid $10,000 opening balance January 1, 2009 LIVE
As of May 14, 2009 it has now got a balance of $78,138.70. 103 trades - 101 trades made a profit. Look at the profit graph - sorry you have to visit the web page to get the link to the live 4x trading account.
Through the years of Forex trading John and Albert did realize that most Forex robot systems were designed and developed with only a single forex market condition in mind.
While this maybe true, I don't really care - I just want it to make money reliably and safely.
Every Forex trader does know that the forex market changes all the time. It is clear from real proof that the MegaDroid Forex Trading Robot has a system built into it that embraces this change.
The vendors claim this system has been successfully created to perform at 95.82% accuracy. What I have witnessed from real traders doing real trading it performs better than that. The novice is seeing 97.3%, and the professional is seeing just slightly better than 98%.
But don't rush off an buy Megadroid just yet. There are some important facts you need to know - so visit Forex Robots Reviewed to find out all about it.
COMMON MISTAKE BY FOREX TRADERS
Forex trading is among the most lucrative industries that independent individuals can participate in. Beginners, though, are susceptible to making mistakes that may result in the depletion or total loss of their investment.
One of the strong suits of currency trading is that it allows traders to use leverage or to trade on margin. This means that they can buy or sell currencies despite a small account balance. Novice traders at times take advantage of this opportunity and decide to use too much leverage on a large trade. Such a move is highly risky since if the market shifts the opposite direction from what is expected, the trader may suffer greater losses.
Over trading is another tendency that beginners and experts in forex trading alike should avoid. Newbies often easily get excited by observed market movements and trade by impulse, expecting drastic shifts that fail to materialize. To some extremes, they engage in multiple trades at once simply because they wish to. Frequent trading in the absence of real earning opportunities may as well lead to loss.
In an effort to maximize their profit, a lot of new traders also speculate the point at which the chosen currency pair will turn around. Referred to as "tops" and "bottoms", these points are difficult to determine even for veteran traders. At times, it is more advisable to trade when a gradual, but constant movement is observed that yields less but more definite earning.
Forex trading firms today utilize their own platform that allows novices to trade in simulation mode. With enough practice, there are fewer chances that traders would make these mistakes and increased likelihood of earning high in this profitable business.
One of the strong suits of currency trading is that it allows traders to use leverage or to trade on margin. This means that they can buy or sell currencies despite a small account balance. Novice traders at times take advantage of this opportunity and decide to use too much leverage on a large trade. Such a move is highly risky since if the market shifts the opposite direction from what is expected, the trader may suffer greater losses.
Over trading is another tendency that beginners and experts in forex trading alike should avoid. Newbies often easily get excited by observed market movements and trade by impulse, expecting drastic shifts that fail to materialize. To some extremes, they engage in multiple trades at once simply because they wish to. Frequent trading in the absence of real earning opportunities may as well lead to loss.
In an effort to maximize their profit, a lot of new traders also speculate the point at which the chosen currency pair will turn around. Referred to as "tops" and "bottoms", these points are difficult to determine even for veteran traders. At times, it is more advisable to trade when a gradual, but constant movement is observed that yields less but more definite earning.
Forex trading firms today utilize their own platform that allows novices to trade in simulation mode. With enough practice, there are fewer chances that traders would make these mistakes and increased likelihood of earning high in this profitable business.
Growing Popularity of Forex Trading
Today it is very hard to ignore the fact that forex market is the world's biggest financial market. Over the past few years, it has become the most popular market with trades amounting to more than USD 3 trillion every day. Generally referred as currency trading market, it always involves the combination of two currencies. For example- either you can buy Euro or sell US dollars, or you can buy and sale any other combination of globally accepted currencies.
In recent times, fx trading has gained huge popularity and turned out to be a very profitable money making option. If we look at the present scenario, it can be recognized as one of the most potentially rewarding types of investments available in the global market. Though this form of trading involves great risks but the potential to earn profits are enormous relative to initial capital investments. The major reason of growing recognition is its very low dealing costs, high leverage margin, 24 hours trading a day and high liquidity market. For example, with a $5000 account, you can make about $5000 per month.
Obviously it decidedly depends on the manner that you trade and the strategy you follow but good and experienced traders can double their money every month.
The key positive sign of fx currency trading that can help you consider it as a money-making affair can be its size. Its wide yet easily accessible size prevents almost all attempts by others to influence the market for their own gain. Consequently, when you invest in foreign currency market, you can be certain that the deal you are making has the same opportunity for profit as other investors do throughout the world.
So, if you are looking to get involve in this type of currency trading, it is always better to enjoy trading with the help of a forex broker. A forex broker can be the key person who can guide you to earn more profits from market, as a result it is always better to carefully select a right forex broker for right deal. Apart from all this, the next major fact about this form of currency trading is- in this form of trading there is no centralized location of foreign currency trading. With the help of various online platforms you can trade currency from any parts of the world. With the help of internet connection and active forex trading account you can easily trade in foreign currencies.
Today it can be considered as one of the few trading markets in the world that always provides you with opportunities to trade because of currencies strengthening or weakening. The supply and demand are the factors that determine the price in any market. Now when there are too many buyers and sellers, similar to the current situation in forex market, the price volatility can be much higher, market may be more dynamic and chances to make money can be even more. The price may go up and down more frequently and this dynamic nature helps in making decent money. Consequently, if you are looking to choose Forex as your business, its better you do not get worried about competition but must make sure you develop a proper strategy to earn money and enjoy good success in fx trading.
In recent times, fx trading has gained huge popularity and turned out to be a very profitable money making option. If we look at the present scenario, it can be recognized as one of the most potentially rewarding types of investments available in the global market. Though this form of trading involves great risks but the potential to earn profits are enormous relative to initial capital investments. The major reason of growing recognition is its very low dealing costs, high leverage margin, 24 hours trading a day and high liquidity market. For example, with a $5000 account, you can make about $5000 per month.
Obviously it decidedly depends on the manner that you trade and the strategy you follow but good and experienced traders can double their money every month.
The key positive sign of fx currency trading that can help you consider it as a money-making affair can be its size. Its wide yet easily accessible size prevents almost all attempts by others to influence the market for their own gain. Consequently, when you invest in foreign currency market, you can be certain that the deal you are making has the same opportunity for profit as other investors do throughout the world.
So, if you are looking to get involve in this type of currency trading, it is always better to enjoy trading with the help of a forex broker. A forex broker can be the key person who can guide you to earn more profits from market, as a result it is always better to carefully select a right forex broker for right deal. Apart from all this, the next major fact about this form of currency trading is- in this form of trading there is no centralized location of foreign currency trading. With the help of various online platforms you can trade currency from any parts of the world. With the help of internet connection and active forex trading account you can easily trade in foreign currencies.
Today it can be considered as one of the few trading markets in the world that always provides you with opportunities to trade because of currencies strengthening or weakening. The supply and demand are the factors that determine the price in any market. Now when there are too many buyers and sellers, similar to the current situation in forex market, the price volatility can be much higher, market may be more dynamic and chances to make money can be even more. The price may go up and down more frequently and this dynamic nature helps in making decent money. Consequently, if you are looking to choose Forex as your business, its better you do not get worried about competition but must make sure you develop a proper strategy to earn money and enjoy good success in fx trading.
Forex Indicators For Better Trading Accuracy
For some traders, they prefer to use the forex indicators to make some trading decisions. They spend hours in front of the computers to observe the movements of the indicators to make sure that they have already made the perfect decision. For them, they accuracy on examining the indicators is the life of their trading sessions. Once they made mistake, it would be a bit hard to recover.
Some traders are using the forex indicators to see the forex signal. The signal gives them some hints to make a decision. Most of the traders prefer to combines some forex indicators. These forex indicators would give them some forex signals combination. They need to determine the direction of the market to make some decision. Are they going to buy, or they want to get the sell position? The decision could be made after they see and examine the forex indicators.
Those traders realized that not all the time those signal forex combinations are correct. They might make misjudge of a movement of the market that surely might impact the whole trading process. To avoid this situation, those traders should really understand about the forex indicators. This is the best way to eliminate some mistakes that might be done.
Some traders are using the forex indicators to see the forex signal. The signal gives them some hints to make a decision. Most of the traders prefer to combines some forex indicators. These forex indicators would give them some forex signals combination. They need to determine the direction of the market to make some decision. Are they going to buy, or they want to get the sell position? The decision could be made after they see and examine the forex indicators.
Those traders realized that not all the time those signal forex combinations are correct. They might make misjudge of a movement of the market that surely might impact the whole trading process. To avoid this situation, those traders should really understand about the forex indicators. This is the best way to eliminate some mistakes that might be done.
The Foreign Exchange Market Differs From The Stock Market
The alien interchange market is likewise known as the FX market, and the forex market. Syndication that takes place amongst two regions with dissimilar currencies is the basis for the fx market and the background of the Syndication in this market. The forex market is over thirty years old, traditionalistic in the early 1970's. The forex market is one that is not grounded on any one business or laying out money in any one business, but the retail and retail of currencies.
The divergence amongst the stock market and the forex market is the tremendous retail that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. There is is much higher than the cash traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial foundations and those similar types of foundations from other countries. The
What is traded, purchased and sold on the forex market is a thing that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is really going to be cash. From one currency to another, the accessibility of cash in the forex market is a thing that can take place fast for any investor from any country.
The divergence amongst the stock market and the forex market is that the forex market is worldwide, worldwide. The stock market is a thing that takes place only within a country. The stock market is grounded on businesses and products that are within a country, and the forex market takes that a step farther to include any country.
The stock market has set business hours. In general, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open in general twenty four hours a day because the tremendous number of countries that have part in forex retail, buying and retail are located in galore dissimilar times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market retail occurs.
The stock market in any country is going to be grounded on only that countries currency, say as an illustration the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you're involved with galore types of countries, and galore currencies. You will find references to a variety of currencies, and this is a big divergence amongst the stock market and the forex market.
The divergence amongst the stock market and the forex market is the tremendous retail that occurs on the forex market. There is millions and millions that are traded daily on the forex market, almost two trillion dollars is traded daily. There is is much higher than the cash traded on the daily stock market of any country. The forex market is one that involves governments, banks, financial foundations and those similar types of foundations from other countries. The
What is traded, purchased and sold on the forex market is a thing that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is really going to be cash. From one currency to another, the accessibility of cash in the forex market is a thing that can take place fast for any investor from any country.
The divergence amongst the stock market and the forex market is that the forex market is worldwide, worldwide. The stock market is a thing that takes place only within a country. The stock market is grounded on businesses and products that are within a country, and the forex market takes that a step farther to include any country.
The stock market has set business hours. In general, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open in general twenty four hours a day because the tremendous number of countries that have part in forex retail, buying and retail are located in galore dissimilar times zones. As one market is opening, another countries market is closing. This is the continual method of how the forex market retail occurs.
The stock market in any country is going to be grounded on only that countries currency, say as an illustration the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex market, you're involved with galore types of countries, and galore currencies. You will find references to a variety of currencies, and this is a big divergence amongst the stock market and the forex market.
Forex Trading and Rack up Profits
Can you really make a profit with Forex Trading? The short answer... yes you can, and it's one of the surest ways to earn impressive money. Of course, you'll need to know how, when, and what to trade, but if you take the time to learn what you're doing, you can realistically expect some very large profits. It's absolutely true that many who trade in the currency market build huge successes, but don't expect it to happen overnight
As a trader, you're looking forward to seizing the opportunity to earn big money and - of course - start a trading career in Forex. The Forex market is the largest and the most liquid financial market in the world. Whereas the stock market and other financial markets have centralized locations, the Forex market does not, being diffused throughout the world. On the plus side, it operates 24 hours a day at many different locations. Trading in the currency market is done through the worldwide communication network - the Internet.
The Forex (Foreign Exchange market) didn't come into existence until the US went off the gold standard and the many currencies of the world began drifting up and down in relation to the value of other currencies.
And until faster and more efficient communication networks were developed, the Forex was limited to the largest multinationals and financial institutions because of the high financial requirements. However, with more advanced communications technology came the high speed Internet, and in the nineties smaller, more agile investors began dipping their toes into the Forex market. Now virtually anyone who is interested in trading can enter this market.
Forex trading is simply the act of buying and selling different world currencies. This may seem simple on the surface, but it's important to bear in mind that, simple or not, many inexperienced traders - and some experienced ones - have suffered very large financial losses because they dropped their guard and stopped respecting the power of the Forex.
So, whether you are a beginner or not, this matter of respect is one way you can put yourself on equal footing with even the most seasoned veteran trader. Always remember that the Forex market can give you great gains, but it can also wipe those gains out in a flash if you begin taking it for granted. Therefore, even before you enter this market, you must be aware at all times of a few crucial things you'll need for making a success of this investment venture.
We're talking about the most liquid market in the world, but before starting, you must first actually know how to trade currencies. To begin trading, all you need is access to a computer (preferably your own, for security reasons) that has an active Internet connection, a Forex account with funds in it, and a Forex trading system or strategy to guide your buying and selling. Many websites offer Forex trading.
When you're ready to start trading, you'll need to start an account with the broker (trading service) of your choice, and fund it (pay an initial amount of money into it). Then you're ready to begin trading.
One important point - you will definitely need a fast Internet connection if you hope to keep up with the constant updates and rapid price movements, and to prevent slippages (a lag between your buy or sell order and its execution).
Another crucial point - look for a Forex broker's website that offers dummy accounts so that you can practice and build up your skills with before you ever risk real money.
Now that you know how to trade in the Forex market, the next thing you need to know is what to trade. The Forex market involves buying and selling various currencies from all around the world. These currencies are traded in pairs, such as the ones in this list.
EUR/USD
USD/JPY
GBP/USD
USD/CHF
AUD/USD
USD/CAD
NZD/USD
EUR/GBP
EUR/JPY
GBP/JPY
CHF/JPY
GBP/CHF
EUR/AUD
These currency pairs are the ones most commonly traded in the Forex market. To guide your investment decisions, you'll be watching market trends as well as world news, and with experience you'll learn to predict how events may affect these world currency pairs. As you build up your skill levels, you can begin earning a very substantial income.
As mentioned, the Forex market is highly liquid, meaning you can get in or out at any time, 24 hours a day. The most important question will always be whether profits will result from each of your decisions.
Although most Forex traders are speculators who attempt to predict which currencies will go up and which will go down, that does not mean they are all gamblers. This is where a system (or strategy) becomes vitally important. Traders who go only by "gut instinct" are seldom consistent winners, leaving the real profits to those who are guided by careful and methodical decision making rather than by the excitement or "juice."
Now that you know the basic outline of trading in the Forex market, you can begin checking out trading websites for a service that fits your situation and goals.
Always remember that in all trades done in the financial market, you are working to build an upward trend, which will inevitably include both some gains and some losses. The goal is to keep the losses small while you maximize the gains. If you continually hold a long-term view, you will maintain emotional stability so that losses never discourage you and gains never over-excite you.
As a trader, you're looking forward to seizing the opportunity to earn big money and - of course - start a trading career in Forex. The Forex market is the largest and the most liquid financial market in the world. Whereas the stock market and other financial markets have centralized locations, the Forex market does not, being diffused throughout the world. On the plus side, it operates 24 hours a day at many different locations. Trading in the currency market is done through the worldwide communication network - the Internet.
The Forex (Foreign Exchange market) didn't come into existence until the US went off the gold standard and the many currencies of the world began drifting up and down in relation to the value of other currencies.
And until faster and more efficient communication networks were developed, the Forex was limited to the largest multinationals and financial institutions because of the high financial requirements. However, with more advanced communications technology came the high speed Internet, and in the nineties smaller, more agile investors began dipping their toes into the Forex market. Now virtually anyone who is interested in trading can enter this market.
Forex trading is simply the act of buying and selling different world currencies. This may seem simple on the surface, but it's important to bear in mind that, simple or not, many inexperienced traders - and some experienced ones - have suffered very large financial losses because they dropped their guard and stopped respecting the power of the Forex.
So, whether you are a beginner or not, this matter of respect is one way you can put yourself on equal footing with even the most seasoned veteran trader. Always remember that the Forex market can give you great gains, but it can also wipe those gains out in a flash if you begin taking it for granted. Therefore, even before you enter this market, you must be aware at all times of a few crucial things you'll need for making a success of this investment venture.
We're talking about the most liquid market in the world, but before starting, you must first actually know how to trade currencies. To begin trading, all you need is access to a computer (preferably your own, for security reasons) that has an active Internet connection, a Forex account with funds in it, and a Forex trading system or strategy to guide your buying and selling. Many websites offer Forex trading.
When you're ready to start trading, you'll need to start an account with the broker (trading service) of your choice, and fund it (pay an initial amount of money into it). Then you're ready to begin trading.
One important point - you will definitely need a fast Internet connection if you hope to keep up with the constant updates and rapid price movements, and to prevent slippages (a lag between your buy or sell order and its execution).
Another crucial point - look for a Forex broker's website that offers dummy accounts so that you can practice and build up your skills with before you ever risk real money.
Now that you know how to trade in the Forex market, the next thing you need to know is what to trade. The Forex market involves buying and selling various currencies from all around the world. These currencies are traded in pairs, such as the ones in this list.
EUR/USD
USD/JPY
GBP/USD
USD/CHF
AUD/USD
USD/CAD
NZD/USD
EUR/GBP
EUR/JPY
GBP/JPY
CHF/JPY
GBP/CHF
EUR/AUD
These currency pairs are the ones most commonly traded in the Forex market. To guide your investment decisions, you'll be watching market trends as well as world news, and with experience you'll learn to predict how events may affect these world currency pairs. As you build up your skill levels, you can begin earning a very substantial income.
As mentioned, the Forex market is highly liquid, meaning you can get in or out at any time, 24 hours a day. The most important question will always be whether profits will result from each of your decisions.
Although most Forex traders are speculators who attempt to predict which currencies will go up and which will go down, that does not mean they are all gamblers. This is where a system (or strategy) becomes vitally important. Traders who go only by "gut instinct" are seldom consistent winners, leaving the real profits to those who are guided by careful and methodical decision making rather than by the excitement or "juice."
Now that you know the basic outline of trading in the Forex market, you can begin checking out trading websites for a service that fits your situation and goals.
Always remember that in all trades done in the financial market, you are working to build an upward trend, which will inevitably include both some gains and some losses. The goal is to keep the losses small while you maximize the gains. If you continually hold a long-term view, you will maintain emotional stability so that losses never discourage you and gains never over-excite you.
Make Money And Minimize Your Losses Trading On The Forex Market
If you are interested in trading on the Forex one of the first things you will need to do is find a broker. All Forex trading is conducted through a broker who will provide the trading platform and cover the leverage you choose. Your Forex broker will collect a small commission on your trades but you trade the currency anyway you want. Choosing a broker is an important decision; you will be trading your money through this broker so you need to make sure they are legitimate. The broker you choose should understand your needs as a trader and do their best to help you make money.
Ultimately how you trade is your choice so it is good to set up some trading rules to minimize your losses and maximize your profits. First of all setting up a stop loss is very important. The stop loss is a point where you will get out no matter what. For beginners to Forex trading, this can be difficult because there is always the hope that the market will turn around at the last minute and lots of money will be made. This is an important rule to stick with though because it can save you from losing it all. This is where the discipline in Forex trading comes in; you should trade with your head not your emotions.
The next rule is to develop a clear point at which you will take your profits. Some Forex traders go by a straight percentage of profit and some use technical market analysis as their guide. You should set the profit you are going to take before claiming a position. If you wait it is too easy to convince yourself to stay in waiting for another percentage point before getting out. This is also a difficult thing to do, but it must be done if you plan to increase your wealth consistently trading in the Forex market. Most experienced Forex traders agree that when you stick to your trading rules this will eventually yield a profitable currency trading system.
The Forex is a very liquid market; money is made in seconds and lost in just as little time. The Forex operates twenty four hours a day, five days a week. If you are wanting to buy or sell there is always someone to trade with. Different from other financial markets, the Forex market doesn't have a physical location or a central exchange. The Forex operates through a worldwide network of banks, individuals, and corporations trading one country's currency for another. Currencies which are widely traded include the US Dollar, the Euro, British Pound, Japanese Yen, Swiss Franc, Canadian Dollar, and the Australian Dollar. Four currency pairs of this group are normally traded for investment purposes: US dollar against Swiss franc, Euro against US dollar, US dollar against Japanese yen, and the British pound against the US dollar.
There is money to be made on the Forex but it is also easy to lose money. Before you begin trading, you should do your research and learn about how currency trading on the Forex works. It is also important to take a good look at your finances so that you can use good judgment when choosing how much money you can afford to invest in Forex trading.
Ultimately how you trade is your choice so it is good to set up some trading rules to minimize your losses and maximize your profits. First of all setting up a stop loss is very important. The stop loss is a point where you will get out no matter what. For beginners to Forex trading, this can be difficult because there is always the hope that the market will turn around at the last minute and lots of money will be made. This is an important rule to stick with though because it can save you from losing it all. This is where the discipline in Forex trading comes in; you should trade with your head not your emotions.
The next rule is to develop a clear point at which you will take your profits. Some Forex traders go by a straight percentage of profit and some use technical market analysis as their guide. You should set the profit you are going to take before claiming a position. If you wait it is too easy to convince yourself to stay in waiting for another percentage point before getting out. This is also a difficult thing to do, but it must be done if you plan to increase your wealth consistently trading in the Forex market. Most experienced Forex traders agree that when you stick to your trading rules this will eventually yield a profitable currency trading system.
The Forex is a very liquid market; money is made in seconds and lost in just as little time. The Forex operates twenty four hours a day, five days a week. If you are wanting to buy or sell there is always someone to trade with. Different from other financial markets, the Forex market doesn't have a physical location or a central exchange. The Forex operates through a worldwide network of banks, individuals, and corporations trading one country's currency for another. Currencies which are widely traded include the US Dollar, the Euro, British Pound, Japanese Yen, Swiss Franc, Canadian Dollar, and the Australian Dollar. Four currency pairs of this group are normally traded for investment purposes: US dollar against Swiss franc, Euro against US dollar, US dollar against Japanese yen, and the British pound against the US dollar.
There is money to be made on the Forex but it is also easy to lose money. Before you begin trading, you should do your research and learn about how currency trading on the Forex works. It is also important to take a good look at your finances so that you can use good judgment when choosing how much money you can afford to invest in Forex trading.
Right Forex Trading Software
Forex Trading is quickly becoming the hottest niche in the trading world. The regular market has become so tumultuous that the best traders in the industry are walking around scratching their head on a regular basis. If you were ever going to get involved in forex trading, now is the time. However, you are going to have to find the right forex trading software to be successful.
If you have familiar with the regular market, you are quite aware of how quickly the market changes. This is even more so true in forex trading, but the patterns of the changes tend to be much more recognizable as you are dealing in currency.
Now while currency has a reputation of being extremely volatile, it also follows patterns over times that you can spot. The challenge is in being able to spot the trend in time to be able to take advantage of it. While there are still a few horses around that have the gift, few people can pick up trends like software can.
Unless you are able to stand at the computer 24 hours a day, it is unlikely that you are going to be able to be successful trading currency unless you have software that can do your tracking for you. While you are sleeping, the software is busy crunching numbers and evaluating trends for you. When a good trend shows up, you can have the program send you an alert that will allow you to verify the trend and take advantage of the trade.
Of course, even the best program is going to put up a dud every now and again. Sometimes there are false trends that even the computer will misread. The goal of course is to find the right software that will allow you to win on more trades than you lose. If you can do this, the odds are in your favor to make a nice profit over the long run.
Something else to keep in mind as you follow this market is to make sure that you wait for the trend to be verified before you jump on it. You do this so you don't get caught up in one of those false trends. By taking that little extra time, you are protecting yourself and your investment.
The big knock on doing this is that you are not going to be able to take advantage of the lowest support level if you are going long or the best resistance price if you are going short. In the end, you have to look at if the risk is worth the reward. By trading in this manner, you may not make the maximum profit on the deal, but you are much more assured of actually making a profit every time you do a deal.
Forex trading is a great way to lock up that future and to make a living in the current economy. If anyone tells you that it is going to be an overnight get rich quick deal, run away. What you need is a good, reliable program that spots good deals that you can make money from time and again.
If you have familiar with the regular market, you are quite aware of how quickly the market changes. This is even more so true in forex trading, but the patterns of the changes tend to be much more recognizable as you are dealing in currency.
Now while currency has a reputation of being extremely volatile, it also follows patterns over times that you can spot. The challenge is in being able to spot the trend in time to be able to take advantage of it. While there are still a few horses around that have the gift, few people can pick up trends like software can.
Unless you are able to stand at the computer 24 hours a day, it is unlikely that you are going to be able to be successful trading currency unless you have software that can do your tracking for you. While you are sleeping, the software is busy crunching numbers and evaluating trends for you. When a good trend shows up, you can have the program send you an alert that will allow you to verify the trend and take advantage of the trade.
Of course, even the best program is going to put up a dud every now and again. Sometimes there are false trends that even the computer will misread. The goal of course is to find the right software that will allow you to win on more trades than you lose. If you can do this, the odds are in your favor to make a nice profit over the long run.
Something else to keep in mind as you follow this market is to make sure that you wait for the trend to be verified before you jump on it. You do this so you don't get caught up in one of those false trends. By taking that little extra time, you are protecting yourself and your investment.
The big knock on doing this is that you are not going to be able to take advantage of the lowest support level if you are going long or the best resistance price if you are going short. In the end, you have to look at if the risk is worth the reward. By trading in this manner, you may not make the maximum profit on the deal, but you are much more assured of actually making a profit every time you do a deal.
Forex trading is a great way to lock up that future and to make a living in the current economy. If anyone tells you that it is going to be an overnight get rich quick deal, run away. What you need is a good, reliable program that spots good deals that you can make money from time and again.
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