Monthly Archives: September 2016

Trading Systems Really Eliminate Risk

Take $50, a proven no risk strategy, 24/7 support, a double your money in 30 days guarantee, and 2 months to satisfy yourself that it does what it claims. We have heard it all before, but can any forex auto trader really make these promises. I have been trading for 3 yrs, lost thousands, and studied for hours a day, year in year out. If I could find such a product I would certainly be interested.

A few months ago, I finally decided to call it quits as far as my forex trading career was concerned. I had tried everything, and I do mean everything. Money spent on courses, books, videos outlining technical and fundamental information, and my pride and joy, a giant screen to give me the clearest possible view of the daily volatility that was slowly sucking me dry of funds.

Unlike the stock market, superannuation investments, artwork, or property, the forex market is an incredibly lucrative market in which to prosper, due to an ability to make profits in either direction. Leverage is used to enhance that profit taking ability, which is fine when things are going your way, but devastating should you misinterpret the information that determines the direction in which you trade.

The array of indicators that fill books are too numerous to name here, and many of them have been created as a way to market yet another trading tool that will give you a heads up. There are also no end of books telling you how to psychologically prepare yourself for the volatility, but I can testify to the fact that nothing can prepare you for the kind of volatility we have seen in the markets in the past year. I have literally seen a currency moving in one direction quite steadily for some hours, and within seconds turn and wipe out my profit before I even register that it is happening. And that is when I am sitting in front of the screen. I could give you horror stories about what can happen if you leave the room to get a drink, or answer the door.

The forex currency market is the largest market in the world, turning over trillions of dollars. The volatility it is experiencing at the moment is actually beneficial, allowing many more trades in both directions. With manual trading however, this volatility can mean that indicators will lag and markets will have moved quite a way before they catch up. This makes them unreadable in some cases, and certainly inconsistent at best.

To find a proven, consistent, and stress free system to take advantage of the unique opportunities that forex currency trading can provide, is certainly of great interest to me. What is of equal interest, is the ability to test a system completely free of risk, by testing for as long as you like on a demo account. That is an account that allows you to trade in real time, without actually risking any money. You can see with your own eyes, how your chosen system will perform before applying actual funds. There is no time limit on how long you research a system before going live. You wont get those guarantees with the stock market at the moment. I personally don’t believe in being taken in by the hype of a product being guaranteed to work until I have put it to the test.

You would have to expect that with the technology and computer programs, designers have access to, that there would in fact be robots in development that show outstanding results. So How do you go about deciding which product to purchase, if you take the sceptical approach and consider all of them failures until proven otherwise? Well you have to look for one that is affordable, easily understood, and clearly directs you to test it out on a demonstration account before going live. At least the promoters are not afraid to have their product fully scrutinised. Beware of anything where you pay up front for results you cannot replicate without cost to you. And always purchase such products knowing that you have made an informed decision by reading carefully the information provided. This advice is really applicable to any product you purchase that comes with guarantees to make money.

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Forex Trading Through a Third Party

As forex traders multiply across the web, third parties are also multiplying. Many of these third parties are offering very important tools that can make forex trading easier and more convenient. This also means that the information about forex is expanding rapidly. This is most obvious in the proliferation of e-books, websites, videos, and third party providers.
What is a third party provider? A third party provider is another trader that trades that will get applied to your account. You can have several third party providers for your forex account. How many you have is completely up to you.

Using a third party provider sounds like a great idea. However, just as with everything else, it can have its downsides. There is always the possibility that the third party trader will lose everything you’ve already learned. To avoid this, there are a few simple rules for picking a third party provider:

1. Look at the potential provider’s history. If they haven’t been making profits for themselves, then it is unlikely that they will be capable of making them for you.

2. The next rule is consistency. You want a trader that has made money over a longer period of time. If they have only been making money for a short period, it could be a scam or beginner’s luck. Make sure they have a track record.

3. Review their trades. Why have they been successful? By analyzing their individual trades, you can most effectively see how and why they’ve been successful and figure out if that can work for you.

4. Honor your own trading style. Everyone has individual financial needs and you need to choose the third party provider who is most likely to help you meet your goals. This doesn’t mean just your goals for this week, but your long term goals as well.

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How to Go From Humble Beginner to Major Winner

If you’re just starting out in forex and need some guidance and forex trading tips then you’re in the right place. In this article, I’ll give you some great but simple advice that could transform your trading.

Discipline

For each trade that you make, make sure you also specify a stop loss level. Trading without a stop loss is like playing football without a jockstrap! Simply, do not do it!

Ideally, you should also have a profit target (when to exit the trade) that you know before you place the trade. You can always revise this later.

Logic Over Emotions

The reason that you should have these is because it will force you into the habit of having a solid logical reason for each trade that you make.

The simply fact is that if you don’t even know where you should place a stop loss, let alone your profit target then you are trading on “gut” or “instinct” and not logic.

If you keep trading this way, you might get a lucky streak but you will soon regret it when you lose it all and possibly more. I have seen this happen to way too many traders.

Know Your Markets

If you’re using logic then you need to understand your markets. You really don’t need much knowledge at all to trade profitably.

Just pick a few markets and observe them. It’s easiest to start with the majors like EURUSD, GBPUSD and USDJPY. Check the forex news websites and monitor these markets closely. There are even many great market commentaries on Youtube.

You’ll start to notice some trends in the way that the market reacts to news. You’ll start to get a feel for the direction of the market.

And if in doubt, then you always have another option…

Outsource Your Research

If you don’t want to spend time learning and understanding the markets then simply pay a small fee to outsource it.

What I mean by this is to buy some good quality forex signals or a good autotrading “robot” (a predictive model). The cost of these is far less than the money you will make, so much so that you will consider it negligible.

Pros of Automated Forex Trading

With the ever increasing amount of mathematical indicators in the foreign exchange market, the capacity and capability that a trader needs to have in order to process information is also becoming deficient, not to mention that these traders also need to do things outside of the forex trading zone. Luckily, since these indicators are mathematical, there is no problem in using computers for doing the job. In fact, it is their specialty, hence the name of computers. This is what automated forex trading programs are meant to do. They are designed to execute several strategies according to the mathematical indicators that they are programmed to follow. All of these can be done by the program without the owner of the account having to tweak almost anything at all. Now, with this kind of high-powered processing capability and convenience, what else are the advantages of using this kind of strategic tool?

One of the major advantages that attracted the users of automated forex trading programs is its high capability to process very complex mathematical information. Give it whatever indicators, Fibonacci retracing, intermarket data, volume and volatility analysis, pivot points, and whatever else; a forex autotrading program can handle that. Although of course, such mathematical processing can also be done by a human trader, a computer does all of this process within a much shorter time. This kind of efficiency saves the trader the precious time to do many other things, a very invaluable resource for those who understand. Moreover, since a computer is immune against one of the human factor that plague so many traders, emotion. With only the pure rationality of a computer, it will fully rely on its computations without having to be affected by fear, greed, or pressure. This is a major advantage especially for very crucial times in trading.

Now, if you are still new to automated forex trading programs, you might be scared by the possibility that you may no longer have any control over your trading account. As for that, you don’t really have to worry much; these programs can be setup where you still have influence over the activities of your account. You can also customize the trading tendencies of your program depending on your own tendencies as well. The indicators that will be used by the program can also be adjusted by including or excluding those that you think are significant, and those that you think are useless.

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