Tuesday, 6 March 2012

The Best Currency Advice I Can Give You From 25 Years Trading Experience

I have been a trader for over 25 years and have seen most things booms, busts, extraordinary life changing events, the rise of the internet and here I am going to give new traders what I Consider the best currency advice I can in terms of getting started in the exciting world of forex trading...
The first bit of advice I would give you is, don't think currency trading is a walk in the park - its not.
The rewards of currency trading are high and it's important to get the right education and don't believe anyone who tells you that you can make easy money. Forget all the forex robots with there fake track records, or sure fire trading systems at the end of the day they won't help you.
Trading is a personal experience where you have to construct a forex trading strategy and apply it yourself with discipline.
You can get a lot of good education free online and you should approach the markets by using forex charts.
By trading with charts you can simply trade price changes as you see them on a chart and you can learn this skill in a few weeks and soon be making big profits for just 30 minutes work or less per day.
You only need a simple robust forex trading system and forget about anyone who tells you there is some hidden market order in terms of a scientific theory - there isn't and applying complicated theories is doomed to failure, as they have too many elements to break. Keep it simple and keep it robust. I have used the same system for over 25 years and NEVER changed it. Sure it's not perfect, no system is however it makes money and that at the end of the day is the aim of currency trading.
The real challenge of currency trading is maintaining discipline and my currency trading advice here would be - it sounds simple but it is actually very hard and most traders never master it.
If you are a currency trader you are going to have a strong of losses which will last for weeks ( even the best traders do), what you have to do is to keep executing your plan with discipline through this losing period, until you hit a home run which you will, if your forex trading strategy is soundly based. You have to lose to win and many people simply can't take this and throw in the towel.
They can't stay disciplined and if you cannot apply a system with discipline, you simply don't have one.
Currency trading is a unique challenge, anyone can learn to trade but most fail because they cannot accept responsibility, follow others, or get the wrong education.
If you take responsibility for your destiny and get a simple forex system, you understand and can apply with discipline; you can enjoy currency trading success.
The world of currency trading is one where you can enjoy success with a great second income, or even a life changing income, if you have the right education and a disciplined mindset.
For free 2 x trading Pdf's, with 50 of pages of essential info and more on Currency Trading Course visit our website at: http://www.learncurrencytradingonline.com.

How To Do Currency Trading

I'm going to show you the necessary steps on how to do currency trading. I'll even share a little with you the things you will need to work on with your personality, so you can be the most efficient trader you can be.
  • Find A Good Broker: You're going to need broker of some kind. There are a lot on the internet and some can be very poor quality. This means you're going to have to designate a specific period of time for research. Brokers are the ones that hold your money and make the trades (on your behalf), so you're going to want to have a good one to protect your money. The best place to get unbiased reviews are forex forums. You can search for them on Google. You will be able to find out which ones get poor ratings and which ones are excellent. You can also ask questions, if need be.
  • Trade On The News: News effects currency. There is just no way around it. Economics isn't as simple as supply and demand because people control the supply and demand. People get emotional and the news has the ability to scare and excite people. Watch the news every morning before you start trading. You want to get the latest news, especially the political and economic news before you put your money on the table. Government policies and unemployment rates affect currency and you need to be able to identify that.
  • Use Your Demo Account: Demo accounts come with your trading platform. They're away to make simulated trades in a real market environment. This is the best and safest way to practice. You can trade hundreds of times before you ever invest a penny of your own money. This can give you the added confidence and self-esteem to be a smart trader.
I'm currently giving a 7 day free forex training course. Newbies and experienced are all welcome. If you're interested in participating, check out the Casual Forex Trader.

Forex Trading Systems - 5 Key Points To Consider To Get The Best Currency Trading System For You

There are lots of forex trading systems online and all promise to make you a lot of money, some can but most don't. This article is all about finding the best currency trading system for you...
Lets look at the points to consider in no particular order of importance, they ALL are!
1. Mechanical or Human Input
Some traders like a completely automated forex trading system, others like to have some manual input on the trading signals - the one you choose will simply depend on your trading personality.
2. Do You like Action or - are You More Patient?
If you are a patient trader, then a long term forex trading system will suit you. If you like short term trading, then you will be more attracted to swing trading - again this is simply personal preference.
3. Is the Track Record Realistic?
The first question you need to ask yourself is the track record real?
By this we mean has it been traded. 99% of forex trading systems we see on the net have not and simply make the track record up in hindsight and use this warning:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
The system may work - but most simulations fail and really you best off with a real time track record.
4. Can You Stand the Peak to Valley Drawdown?
A track record can make profits but it will have drawdown so assume that you join on the worst possible day and check the worst drawdown.
Can you stand it in terms of size and time to recovery?
Always assume your worst drawdown is ahead of you.
5. Do You Have Confidence in the Logic?
You will never have the discipline to apply any currency trading system unless you understand and have confidence in the logic. Keep in mind, any forex trading system has loses, so you need the discipline to ride them out.
Make sure you take the time to learn the logic and have confidence in it, as without the discipline to follow your trading system - you don't have one!
The Myth and Reality
The above are basic questions you need to ask when considering buying any trading system.
There is a huge industry in forex robots and vendors promising you huge riches based upon a simulated track record but they normally always fail.
Be sensible and be realistic in terms of seeking out a trading system that's right for you in terms of - your personality, your tolerance of risk, your objectives and your understanding.
Spending some time and keeping your feet on the ground, will enable you to find a forex trading system that's just right for you and can lead you to currency trading success.
For free 2 x trading Pdf's, with 50 of pages of essential info and more on Forex Trading Systems visit our website at: http://www.learncurrencytradingonline.com.

Get Rich With the Automated Forex Trading System

Foreign exchange, aka Forex, is a worldwide technological phenomenon in financial trading. Essentially Forex trading is defined by the exchange of one type of currency for another.
Incredibly, $3 trillion dollars are invested daily in the Forex market. Forex trading differs from the stock market in that investors must bid on scale and there are greater differences in the lower investment rankings. Anyone from multi-national financial conglomerates to the layman can bid and profit within Forex but naturally the highest financial rankings belong to the superpowers.
Of course, the higher ranks of trading in the Forex market are almost entirely reserved for big financial corporations like international banks. They offer the smallest difference for the bid you make and the price they are asked for. The smaller firms occupy the next few levels. These firms trade in small amounts and thus have less of an influence on the real rates as compared to the big financial corporations. These are followed by the central banks.
These banks concern themselves with manipulating real cash flow and controlling price inflation and other related measures. These central banks make use of foreign exchange as reserve funds. The hedge funds follow the central banks in this hierarchy and subsequently succeeded by the investment management funds. These operate at the level of mutual funds in the stock market.
Bottoming out in the pyramid are retail Forex traders, who participate indirectly in investing, and independent traders who rely heavily upon market trends rather than holding any market influence.
Several traders rely heavily upon Forex trading in order to predict financial trends and minimize losses. The software tracks market trends and enables investors to make informed decisions. Forex auto-trading is a smart move in preventing unpredictability in the foreign investment market.
In Forex trading it requires the ability to multi-task by following market trends while simultaneously maintaining continual market surveillance. Greater security and continual, 24-hour access make online trading especially appealing.
For traders in constant motion Forex trading can be done via mobile phones, an incredible boon in foreign exchange investing.
Current technology enhances trading options particularly when done via Forex auto-trading. Global trading through a laptop computer via internet connection is all that is needed for ongoing financial investing.
Richard U. Olson uses the incredibly accurate Forex Expert Advisor and he recommends it to make consistent profits in the Forex markets. Grab his FREE e-course on Forex Trading Tips to realize your financial dreams.

Forex Trading Style- 7 Essential Indicators You Need

When developing your own forex trading style, there is a danger in becoming fascinated with indicators. The newer trader experiments with one, finds it doesn't work so well, then switches to another, then another, etc.
The list below highlights 7 key indicators that can be woven into your forex trading style. You may not need to go any further than this. Stick with the 7, practice them, get to know them inside out, and get the satisfaction of developing your own successful forex trading style.
#1: Candlesticks
Watch for a hammer, doji, head and shoulders pattern, 1-2-3 formation, double top or bottom.
#2: Trendlines
Draw common sense trendlines across the highs in a downtrend or lows in an uptrend. Watch for price to break the trendline and come back and test it.
#3: MACD
Watch for a difference between the highs and lows of MACD and price. When there is divergence watch closely for a good entry point once price has shifted in the direction of the divergence.
#4: 200 EMA
This indicator is an all time favorite for traders across the board. On higher time frames (1 hour, 4 hour, daily) take note whether price is above or below the 200 EMA to give you the sense of price direction.
#5: Pivot points
Take note of previous support and resistance lines as price will come back to retest these levels time and time again.
#6: Fibonacci
Learn how to use this tool well and take particular note of the 50 and 62 retracement levels, especially when they coincide with trendlines or previous support/resistance.
#7 Price Itself
Let price prove to you where it wants to go by setting entry orders rather than market orders when entering a trade. By setting an entry order, price has to reach the target you specify before pulling you into the trade.
Using Technical Indicators
It is important to acknowledge the probability that no indicator on its own is a good enough reason for entering or exiting a trade.
Your individual Forex trading style will evolve in time as you become familiar with the key indicators and probably rely heavily on just 2 or 3 out of the 7. However, it is crucial to get a combination factor when considering a trade. Ask questions such as:
  • While one indicator may show a clear signal, how do the other indicators line up?
  • Is that one signal running against the general conclusion drawn from the other indicators?
This is where your skill as a trader comes in as you assess the clues the indicators give and make a decision based on your perception and experience in the market.
Only time and practice can give you that. Once you are familiar with the top 7 indicators, spend most of your time and energy on developing the emotional and mental disciplines necessary for successful trading. This will eventually make up the most important part of your Forex trading style.
Click here to see how indicator #3, MACD, can help you avoid much anxiety:
Click here to learn how to use indicator #4, the 200 EMA, in a simple yet powerful way:
For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:

Monday, 5 March 2012

What All Forex Traders Need to Know About the Major Currency Pairs

In Forex trading, a group of currency pairs known as "the major currency pairs" constitute over 85% of daily foreign exchange volume. Because there is so much volume for these currency pairs, they are generally regarded as safer to trade; their massive volume ensures that it is relatively easy to find a buyer or seller to take the other side of your trade.
The major currency pairs are outlined below. It is worth noting that the US dollar is a part of all major currency pairs, a fact resulting largely from the US dollar's role as the world's reserve currency. Should the US dollar lose its status as the world's reserve currency, the major currency pairs may lose their significance for traders - or, alternatively, a new group of currency pairs may earn the title of "major currency pairs."
Euro/US dollar. The Euro/US dollar (EURUSD) currency pair is the most active currency pair traded in the Forex market. The fact that the Euro is used by many European countries, coupled with the US dollar's role as the world's reserve currency, create this scenario. Since the Euro's inception in 1999, the currency has risen sharply against the US dollar.
British pound/US dollar. The British pound/US dollar (GBPUSD) is another actively traded pair, a result of the pound's high interest rate (which incentivizes buying of the currency). The stability of both currencies also makes it appealing to traders seeking less volatile assets to invest in.
US dollar/Swiss franc. The US dollar/Swiss franc (USDCHF) is a major currency pair that tends to enjoy greater trading activity during times of greater geopolitical risk. This stems from the fact that the Swiss franc has historically been regarded as a safe haven currency, due to the fact that it previously had a legal requirement that a minimum of 40% of its value be backed by gold reserves. Though this legal requirement was terminated on May 1, 2000, market activity still tends to regarding the Swiss franc as a safe haven currency, as buyers still flock to it during times of increased geopolitical risk.
US dollar/Japanese yen. The US dollar/Japanese yen (USDJPY) is the only major currency pair that involves an Asian currency. Japan has historically had an export-driven economy, and thus the Bank of Japan - the central bank that regulates the value of the yen - has intervened to ensure that the yen remains weak, and thus conducive to sustaining an economy of exports.
As the major currency pairs constitute the vast majority of Forex trading, they are important for all traders to be aware of.
Simon Parth has been an active Forex trader since 2002. He is the co-founder of InformedTrades.com, a community dedicated to creating a comprehensive free online school for traders.

8 Tips on How to Make Money With Forex

Here I would like to discuss what are the 8 tips to help you make money with Forex.
1. First issue is tying to trade when there are news announcements without proper knowledge you will lose but that doesn't mean that you can't learn. Once you learn you will succeed.
2. Trying to trade without doing your homework because trading forex you cannot just jump in.
3. Using a demo account. This tool you can use it to actually get a real idea, without having to risk your money. Learning your trading platform, and testing your strategies. When testing your strategy your gain more confident enough to use your real money.
4. You need to learn how to control your emotions: If you don't you could lose some great trades so learning how to control them you could be very successful.
5. You need to learn how to gain confidence in trading and develop that into a strong level that would make your trading decisions successful.
6. A strong knowledge of different indicators and to learn from them and which ones would be helpful towards your trading career.
7. Knowing when to enter into a trade and not too. Very important.
8. Acknowledging when you need help even; top traders are always learning different methods of forex trading; and that's why they succeed.
One of the most important things in trading is to develop a daily routine and a trading style that will come in time. Also note that learning to trade is to recognize the skills you need to develop and then stay focused on that development and maintain a positive outlook on your trading.
So why not start your forex trading career, here you could find more tips at http://www.squidoo.com/successfulwithforextrading