A Chronological Forex Loser Path - Some Common Beginner Forex Traders Scenarios

Most people who begin trading Forex do so because they read on the internet that it was possible to make quick and easy money with currency trading. There is a chronological path that most of them follow before realizing that Forex trading is not what they thought it would be. The most common identified beginners trading path is as follow:

1. Know about currency trading. In Most Cases May Also Know What Forex Is Basically they learn about Forex trading on the internet or were informed about it by a friend, relative or love one. Or maybe had a lecture about the possibilities of trading currencies during one of their lectures in school.

2. Have an interest in Forex trading. After noticing that people actually make money form it, they became interested in actually traded Forex so they can also make some money too.

3. Try to locate an easy and profitable Forex service. Now they start looking for some information on Forex and how it works. They try to find services where they can start trading with.

4. Begin gambling with their trades. Once they find a Forex service, they begin trading with absolutely no signals and idea what is going on in the currency markets. This more or less like gambling, since they are just hoping and praying that things will work well for them.

5. Unable to make the easy profits they though they could make Unfortunately, in most cases, things don't happen the way they want. They lose money here and there, now and then.

6. Repeating scenarios 3, 4 and 5. At this time they may start blaming the Forex service they are using or maybe the Forex robot which promised to make millions overnight. What they do at this stage is go back to step 3: Look for a new Forex service. Step 4: start the gambling all over again. Step 5: lose money here and there and start all over again on step 3

7. Repeating scenarios 3, 4 and 5 again... and again... Now they do this over and over again, hoping that their persistence will pay out sooner or later. Too bad for them, because persistence only pays off when you have a good plan

8. Realizing that they are losing too much. They just can't seem to make any money. At the long last, they realize that they are only losing money. They realize that persistence alone is nothing. In most cases they are more broke than they were when they started off with Forex trading.

9. Give up and quit their trading for good. This is just a natural thing to do. Every rational human being will do just that. After a while, they just can't keep losing that kind of money. So they give up. Disappointment is high and they keep it a secret and try to move on with their lives.

Forex trading take is not as easy as you think. If you want to make money with it, you have to treat it like a real business.

Importance of Money Management in Forex Trading

The importance of money management in forex trading cannot be underestimated. When finances are not managed properly, liquidity of the trader is affected considerably, hence making it important for every trader to learn the rules of money management. Those forex investors that have either failed to demonstrate money management while trading or did not show interest in doing so, have failed miserably in the forex market.

You should understand the risks, and be quick in calculations while trading forex. Here is a quick snapshot on the importance of money management in forex trading:

Risk percentage

It does not matter what system you are used to trade forex since without a knack for good money management, you will always fail to achieve your goals. Even before you start trading in forex seriously, it would be necessary that you come up with a working trading system which will enable you achieve meaningful success. The rules you come up with, enable you follow a consistent path that would translate to better performance on every day basis. For a given trade, it is imperative that you determine a decent percentage of your overall capital that you will be willing to put at risk. A 2 % allocation of your capital can be allocated to every trade you are planning to take part. Take for example, when you have a capital base of $1000 at 2% risk level per trade, the amount you will be willing to risk is $20.

Do proper calculations

Well, you may allocate certain percentage of your capital to a single trade, but this must be done with regard to certain mathematical computations that have been proven to work. Ensure that you come up with an acceptable lot size as this will only risk a smaller amount of money in your account. There are a number of forex calculators that you can use online. The software allows you to enter your account size, the percentage of the risk that you would like to use, the market rate of the currency and the pair of the currency that you are trading. When used well, the online forex calculator will help provide you with the best understanding of the risk levels that you can allow every trade.

Follow the rules

Setting up certain rules and procedures is not enough since you will need to follow them pretty well. You have a lot to lose when you don't follow the good plan that you have come up with. Always make sure that you stick to your rules at all times. You will love the overall experience that you will achieve when you get disciplined and stick to your working rules. When rules are followed, you will find out that you will not be tempted to alter the trading rules which will in turn increase the risk levels of your forex trade. After following certain rules for a while, you will be able to look back and make alterations according to your experience.

Generally, money management in forex is tricky but when handled well, chances of success are enhanced. When you understand money management, you'll avoid mistakes that affect your profits in the long run.

ive Forex Trading Rooms Demystified

The Forex market is huge, in fact, the biggest financial market on the globe trading approximately $3 trillion in transactions per day. The advent of the internet and the capacity to trading Forex online has opened up Forex to an even broader community of home based traders. The barriers to entry are low, accounts can easily be opened and money deposited into an account in a short period of time.

A lot of "new to the market" traders can become overwhelmed with the trading courses, books, tapes, videos, DVDs, boot camps, seminars, free introductory offers and more that are out there. Most experienced traders know the "traders cycle" in the marketing machine all to well when starting out as well as the way some systems are portrayed as providing the holy grail of trading, unrealistic profits even downright lies.

Some traders after a while give up and move to other trading systems to save a losing account including Forex robotic systems. These systems commonly referred to as expert advisors or EAs provide what seem a relief from the tiredness that information overwhelm has created in the traders mind. A busy schedule, combined with a dwindling broker account balance gives hope to the ever increasing disillusionment of the trader. The known fact is... A LARGE PERCENTAGE OF TRADERS LOSE MONEY. Ive placed that in capital letters as it appears time and time again which many trader never seem to grasp... the grasp of reality tends to not bite until the account is decimated and the riches that were advertised fail to materialize.

At the end of the day trading Forex is not easy... just think of it that you are trying to grab money off one person (worse still playing poker with a broker) in the hope to profit... all under the guise of being hidden behind an online trading platform. Try walking up and down the street playing "hot potatoes" trying to grab money out of peoples hands and see where it leads... you'll soon see that this game is similar, where your view begs to differ from the person you transacted with and you are hoping that you got it right and they got it wrong.. after all... money doesn't come from thin air... its come from the pockets of someone's trading account or worse still your account... move to the casino and try playing against the Casino and see where you get... thats similar in some cases where brokers are market makers and you are effectively playing poker with the Forex brokerage company.

All brokers provide free software such as MetaTrader 4. MT4 or soon to be MetaTrader 5 (MT5) is a standard online Forex trading platform issued by brokers. The system is reliable and has been around for some years with generally continuous improvement and upgrade each year. MT4 is very simple to use and provides all the tools a Forex trader needs including technical analysis capabilities, online charting, Forex news, rates, etc.

But having a good trading platform and broker account flush with funds is not a panacea to having an ever growing online Forex broker balance, one has to have a system to execute trades and be disciplined when to cut a loss or take a profit.

Online Forex trading can be rewarding. You can be sitting in a hotel lobby in the Philippines, Thailand, Australia, London etc on the beach or at home for that matter. Armed with a good trade system and online Forex broker account, free software... the currency market is all yours. But are you prepared to forgo lifestyle trudging through books, tapes, DVDs and courses for years on end or do you want to get up and running right now?

You can start trading today with experience behind you. But how? Well, From my experience most new traders in choosing a trading system start by trying to go it alone. They have funds and will be prepared to outlay big money for isolation in some cases. The day job is now history and the new job - Forex Trader is now the new job. The new "at home" trader wants to sit behind the trading screen and trade for themselves in the hope their own decisions (based on the training they've received) will give them the freedom many traders desire.

Alexander Elder once said: "... You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody..." That statement will ring well in the desires of many new traders.

After a number of losses and failed systems traders start looking for comfort...either amongst their peers, family or other members... whether through the trading chat forums, automated systems (because of time issues) or Forex signals providers. Traders in a grim hope to look for that panacea may swap brokers and even trading platforms in the grim hope that it was the broker or platform and not themselves that is at problem.

One "service" that is often overlooked is the group environment within a Forex trading room. There have been various Live Trading Rooms that have sprung up in recent years. It must be remembered though you are going into a room to listen and watch an expert trading, someone who has had a lot more runs up on the board than you have... but remember, the education never stops and you should keep reading, researching about the Forex market and trading but at the same time a live Forex trading room will reduce the time it takes get up and running trading in the markets.

This article does not provide a review of all the live trading room services available given the number and detailed nature of each membership and what each room offers. Generally though, a live trading room offers the ability to "virtually" sit alongside a trading professional whereby members can monitor the traders screen, listen to the trader on audio and chat. The subscriber can also ask the trader questions and see and hear the traders analysis. What this does is provide many years of trading experience packaged into one place. It allows a steep learning curve where you have live trading in action and can ask questions then and there. Participants can either follow trades on an existing live account or use a demonstration account with "demo money".

Live Forex trading rooms provide the exact "hand holding" new traders need. It provides a disciplined strategy from execution of the trade to exit, money management. It provides the rigorous training that sets the tone for the future rather than the trader learn on the hop, losing money along the way (often termed paying "school fees") and in the end losing hope.

Live trading rooms are in fact a live course on a day to day basis. The discipline it provides of starting at a regular set time, working to a trading prescription that works and makes money is worth its weight in gold.
You get to hear what others are saying (in terms of typed questions asked about the entry, strategy, trade setups etc).

Many rooms employ a range of strategies including short term scalping and swing trading, position trading both in a long and short direction and hedging strategies coupled with differing money management stops and take profits. These aspects are beyond the scope of the article given the enormity of the trading techniques that are available vs the personal trading style of the reader. There is no one right or wrong way to trade the markets whether it be as above eg. Swing trading - using pivot point systems, Gann, Fibonacci, counter trend trading, trend following system, break out system, session trading during the London and New York period, etc. As you can see theres a lot to cover when educating oneself about Forex.

There are a number of key benefits for considering a live Daytrading room;

1. "hands on" experience from a live experienced trader or group of traders means your learning curve is going to rise a lot faster than struggling trying to interpret books or tapes as a mode of learning alone.

2. You are in the market, "live" as its happening getting real world experience and coaching.

3. Generally, costs of getting 1-to-1 mentoring from an experienced Forex trader are prohibitive and accessing a live trading room provides a cost effective solution to get personal coaching.

4. Helps develop discipline when starting out. Provides a level of coaching that runs through a process whether it be a trading strategy, money management upon entry (placement of stops, take profit etc) that would normally be either overlooked or not considered important as a new trader.

"COMPARE OTHER BENEFITS ALSO such as pip rebates, minimum room profit etc."

If you decide to investigate a live trading room service be sure to compare the other features of the room as well and not just trading style or the way the room is run (more on that soon). Some rooms offer free trial periods and its by using a trial you can hone in which aspect of the market or system suits your style at no cost. At the time of writing there were rooms using simple Google search offering trials of up to 2 weeks for free, some offered rebate system of commissions and/or a minimum monthly guarantee of profit (ie. if the person managing the trading for the members in the room didn't achieve a minimum "pip" profit per month then the cost of the membership is free).

Also have a look at how the room is run. Its well to have a technique to trade but if the room is changing traders often throughout the session it may affect your positions being held. The last thing as a beginner trader is to be left out in cold whereby Trader A in the trading room has told you to enter a position and then in two hours Trader B is looking after that same position. This can be dangerous given the logic and reasoning Trader A took to initiate that trade may be different to that which would have been undertaken by Trader B. Rooms that have a number of different traders coming into and out of the room to coach members during a session should be avoided at all cost in our opinion.

To recap, theres very little equipment required to get going with a live trading room. With a standard computer and operating system you can investigate quite comfortably a different concept of learning from your PC. As mentioned, live trading rooms provide the opportunity to sit beside a real live coach in a cost effective way than previously thought was possible. Membership fees alone, whilst some might appear high should not be the sole determinant of whether you move to a live trading room environment as some rooms offering member rebates on commissions and minimum room profit performance which offsets the membership costs paid. Remember to read the rooms terms and conditions thoroughly, familiarize yourself with the trading technique and take advantage of any trial periods to minimize any upfront outlays.

Simple Forex Trading Strategies - The Key to Profitable Trading

If you are struggling to find a trading strategy that seems like it is more than just a pre-packaged set of trading rules or a piece of software that teaches you nothing about the market, than what you are about to read in this article will help you get on the right path. The tendency for new and struggling traders to believe that they need a fancy piece of trading software or a complicated indicator based trading system to successfully trade the market is a very common belief but a huge misconception. There are various reasons why lagging indicator based systems and forex trading "robots" never work in the long run, it is important to understand these reasons so that you gain a deeper understanding of why a simple forex trading method can be used to profitably trade the market with.

Most traders who make most of their trading decisions off of technical market movements understand that the price chart is the main source of information for what causes them to decide to enter or exit a trade. Where many traders go wrong is in believing that through attempting to analyze and interpret secondary indicators to price movement, like lagging indicators, they will somehow gain an advantage that is not otherwise available to them on a naked price chart.

This belief typically arises from reading a website that claims if you learn their "special" combination of indicators you will easily profit in the markets, or from a well-marketed forex trading program that shows insanely good results which many beginners do not know are nothing more than back testing the program over the perfect period of time that fit the indicator to a T. The issue here is that no two moments in the market are ever exactly the same; therefore, back-testing is essentially pointless. The other issue is that people tend to have an ego-driven fixation on making forex trading more complicated than it needs to be so that they can brag to their friends or family about how they are using all these different fancy sounding indicators to trade with.

The fact of the matter is that price action is the best indicator you could ever ask for. Learning a simple forex trading strategy like price action analysis will allow you to unlock the potential of the market. You will not be learning a set of rigid rules that only work under certain market conditions, nor will you be watching your trading software with no personal involvement as you wait for it to generate a signal. When you learn to trade forex with price action you are learning an art and a skill that will carry over to every financial market you wish to trade and will ALWAYS be relevant in EVERY market condition and time frame. This is because price movement generates its own signals about possible impending market direction that once you learn to analyze will allow you to time your entries and exits with as much accuracy as possible. Essentially what is happening when you trade off the raw candlesticks or price bars on your chart, is that you are cutting out the "middle man" so to speak, which would be all the lagging indicators and junk trading robots, and are dealing directly with manufacturer of trading signals

Forex Trading Strategies

In order to successfully run an online forex trade, you need to have a forex trading strategy. When you are coming up with this strategy, it is good to be true to yourself. This will help you come up with a strategy that you can manage. A good online forex strategy should be flexible, effective and easy to implement. Many traders have found themselves making strategies which their implementation as proved to be a rocky hill to climb. They have come up with strategies that are complicated and confusing that they are unable to interpret. These strategies are commonly arrived at by applying confusing information gotten from the websites.

A forex trader should seek information before designing a strategy. This will be a good way of getting to know what to include in the strategy. It will also act as a guideline on how to come up with a realisable strategy.

A good trader should be able to sit down and think of a strategy that can be easy. It is good to avoid applying information gotten from websites since it can be so confusing and complex to apply in a real situation. It is good to bear in mind that the market keeps changing each day hence your strategy needs to be flexible to accommodate the changes. If you have a fixed strategy, you stand a chance of losing since it will not allow you cope with the changing market.

As a forex trader, one needs to have information on the market change. You should know the market trend. This will help you when you are designing a strategy. It is good to know the market suitability in given times. The market time frames are good in that they control the prices in the market. Low time frames are risky in that you are likely to earn losses. This calls for the need to be patient and await higher time frames. It is good to avoid designing your strategy to be fixed on one time frame. It is good to have a forex trade strategy that gives you the freedom to trade any time the market is good.

A good forex trade strategy should give you the choice of getting into the market anytime as long as you see profits as the final product of your transaction. It should also give you a guideline on the kind of trade setup to trade in. This will ensure you increase you profits by engaging in profitable trade setups alone.

Next, I have put together perhaps the greatest gift of all times. If you want to be able to do what you really want with your life and generate as much cash as you want anytime and anywhere, you're in luck.

Best Forex Trading Platform - Who Supplies the Most Effective Trading Platform?

The forex is the business term used to signify the place where all the world's major currencies are traded. The forex market is the place where the currency figures are made, and depending on how much trading happens to a certain currency, the currency is strengthened. The forex is reliant on certain economic, social and even physical environments of ones country. Traders of the forex market must use a platform with which to trade and hereby gain some profit from it.

What then is the forex trading platform?

Certain platforms are created in a country, where trading can take place. This is synonymous to a market place, which will give the traders a place at which they can meet one another, interact and make purchases and sales of currencies. In the world that we live in, this has extended to a global market place whereby through online platforms, trading can take place.

Who provides the best forex trading platform?

The best forex trading platform for an individual who is beginning is highly reliant on the broker he acquires. The broker is the one who does most of the work for you. In light of this, the trading platform is usually flooded with brokers who are willing to work for any individual. Nevertheless, there is certain criterion that is supposed to be used in order to find out who the best person for the job is, and in essence find the best forex trading platform.

How can someone find the best broker?

Firstly, one should find the broker with the lowest spread. While finding the best forex trading platform, one will want to reduce the risk of loosing huge amounts of money at a go. The broker who goes lowest entitles the trader to a lower risk. Secondly, the deposit method that he shows is important. It is important to find one that will be most convenient. In the same way, the trader looking for the best forex platform will have to look for a broker who has a good method of withdrawal.

Where can I find the best forex trading platform?

One can find the best platforms through contacting hones and reliable brokers. They may seem expensive in the beginning but in the long run, they prove to be the better option from any other. One can find them through directories or through online sources available.

Online Forex Trading - Basic

Forex is basically referred as foreign exchange trading which trades currencies of almost all types of currency. Around 100 currency pairs, you can trade with on daily basis. Generally, the currencies that are most commonly used are EUR/USD, GBP/USD, EUR/JPY, USD/JPY, AUD/USD and many more.

Daily volume of Forex trading exceeds 4 trillion US dollars and it's still growing. Forex market operates 24/5 as bank performs forex operations at any time i.e., day or night. Online Forex Trading is stable as even if one currency declines then other currency is improving. Consider an example, In Forex, you might pay in American dollars and buy some British Pound Sterling. Or, you can also sell your euros for Japanese yen. Simply, you have to buy for less and sell for more. All you need to do is take benefit of fluctuations of world currencies.

Forex trading helps you to trade and earn lot of money. Forex can be very simple for the one who researches on the market thoroughly before trying to trade live. Most of the people do not research and directly jump into the market which leads to lose money of majority of the people. You need to know how Forex work, find out everything you need before thinking to start trading. This allows you to have knowledge like when to trade, which market is good for trading, and which currency pair to select for trading. If you have internet connection then you can do online Forex trading anytime and anywhere.
You simply sign up for an account with a broker. Once you complete registration, make a deposit of the margin amount you wish to begin trading and you can start. Hence, keep in mind that it is a risky business so you can practice with demo account which is offered by many brokers before investing the real money. In demo account, you can practice and trade with virtual money. This helps you to understand a few techniques along the way. While trading using demo account, you need to keep records so that you can know which strategy gives you more profit and which strategy gives you more loss.

Brokers also provide useful tools that enable you to understand the market trends and come up with unique strategies easily. The tools may differ from one broker site to another but some of the common ones are current rates, news feeds, analyses etc. The most important thing to keep in touch with the current happening around the world that can affect the Forex market. And also you need to get familiar with the key terminologies of Forex trading.

Automated Forex Trading Systems - A Shortcut to Forex Trading Success?

Do automated forex trading systems seem too good to be true to you?

They did to me too. My problem was that I was so desperate to make a success of trading forex for a living that I was almost prepared to try anything, including putting my trust in a trading robot.

For anyone reading this who doesn't know what automated forex trading systems, or 'robots' are, then they are advanced virtual robots that you plug into your trading account and allow to fully manage your trading for you.

They are designed using Artificial Intelligence technology that provide them with the ability to predict market trends using detailed analysis of past market activity, allowing them to take up profitable positions with minimal risk.

So, do these trading robots actually work in practice?

Well if you believe what their websites tell you then, yes, they are a guaranteed shortcut to forex trading success. Unfortunately, as we all know, the hyped up claims of these websites are often too good to be true.

The fact that so many of these automated forex trading systems appear amid a wild fanfare that they will turn the forex world on its head, only to disappear without trace after a few months tells us the honest truth about most of them:

They were only designed to make the owners a quick buck!

In fact the very next robot that is suddenly released amid similar fanfare, will most likely be a re-branded version of the last one released by the very same owners. It's a rinse and repeat operation that has only one guarantee of making anyone any money: them!

That said, there are trading robots out there that have been around for a while and have stood the test of time. So, if you do consider trying out a trading robot, find one that hasn't just been released with wild and exaggerated claims.

Are they a shortcut to forex trading success? Well I have been using a well respected trading robot over the last few months, and can report moderate success. Truth is that there is no such shortcut to success, it takes time, hard work and commitment.

What I have found is by using a robot that does trade with consistent success, is that it has given me more time to work on other aspects of turning into a full time forex trader, and so it has proven itself to be an important piece of the overall puzzle.

Some Effective Forex Trading Tips

t experience enormous profits at one time, and a huge loss at another.

It keeps your livelihood at stake. Thus, you should opt for a technique that is easier to use and has more chances of profits.

Forex trading is very unpredictable, and thus, you need to take steps in order to reduce the chances of loss. Keeping in mind the following tips, might help you.

Do not over trade

The first and most important rule of forex trading is to avoid over-trading. It is nothing but a result of greed, which results in loss. Every trader has the greed of getting more and more profits, and thus, they invest all their hard-earned profits in it, which in turn results in the loss of the whole amount. It is thus; better to tame all the greed and desire for more, to save yourself, from losing all the earned profits. Thus, it is difficult but important to notice when to discontinue the trading.

Do not let your emotions get over you

Emotions are something that can destroy a person's whole future. A persons business may get affected because of emotions getting over him. Thus, whatever business it is, it is better to keep the emotions on one side. Decisions that are based on emotions always result in loss. Thus, even if you are frustrated with the forex trading business, and the loss you have faced has made you sad, never think of quitting it immediately. Always consider a number of factors before making the decision.

Never stop learning

Every individual is in his learning stage until he reaches his deathbed. Thus, when you are in the field of forex trading, you should try to learn more and more. The more you learn the better you will know the tricks and techniques to make the most profits.

Stop loss

This is one thing that will ensure that your investments are all safe. This will reduce the amount of risks in forex trading.

Use Risk management tools

There are a number of risk management tool involved in it that help reduce the risks involved in this business. You can go through a number of models, and choose the one that suits you the best. Just make sure that you d not get into hurry to accumulate lots of wealth in less time. It is a long-term procedure and let it be like that.

Why You Need A Forex Trading System To Succeed - A Story Of Two Forex Traders Just Starting Out

With whatever field or investment you'd like to take on, there are always tools and resources available to assist you. And this is especially true when it comes to Forex. The currency market can be quite overwhelming, and becoming a successful Forex trader does not come from pure luck. There are simply too many factors that can affect the direction that currency prices will move toward.

Here are two important realities to consider:

1. Most newbies try to take on Forex using no assistance or tools. (Most newbies lose all of their money).
2. Most successful traders use a Forex trading system to help them (Successful traders make VERY good money in Forex).

But even with these realities commonly known, newbies still try to attack Forex blind, basing their buying and selling decisions on limited knowledge and experience. It is not until they have lost all of their trading funds that they consider that it probably would have been smarter to invest in a Forex trading system and software from the beginning. Don't make the same mistake. If you want to be successful with currency trading (ie. making consistent profitable trades) then it is highly recommended that you investigate the many Forex trading systems and software on the market.

Let me illustrate further with a story of about two Forex traders:

Tom and Jim have been reading about Forex a lot recently. Both have been spending hours online trying to understand what currency trading is and how (and if) they can make some quick profits. All of the marketing ads that they read say that you can increase your money very, very quickly. Sure, there's some risk involved, but the potential rewards are just too good to pass up. So they both decide to try out Forex and see if they can make a go of it.

Both guys are highly motivated and want to give Forex their best chance. So each of them is going to invest $1000 of their savings into currency trading. If they lose the $1000, then they will quit Forex and re-evaluate whether or not to try again in the future. By investing a thousand bucks, both have shown that they are fully committed to making Forex work for them.

Starting Out:

Tom takes his entire $1000 and transfers it into a retail online Forex broker. Tom will be making all of his trading decisions on his own. He will be doing his own research and will lurking on Forex forums and blogs to see if he can get some much needed tips.

Jim goes a different route. Although he is just as motivated as Tom, he is also aware of the complexity of the Forex market and realizes that he just doesn't have much experience at this point. So he takes $900 and transfers it to the same retail Forex broker as Tom. He saves the remaining $100 in order to get access to tools and resources (ie. Forex trading systems and software) to help him make better trades. He used to day trade stocks and knows first hand the edge that these tools and resources can have (especially if you are just learning the ropes).

Month 1:

Tom jumped right into currency trading. His first trade started off in the positive, but quickly went south. Before he could post his sell request, he had lost $100. Although he did have some minor profitable trades, overall his trading history was very similar to his first trade. Many trades started off good, but for some reason (that he just didn't have the experience or knowledge to understand), then would eventually trend down. At the end of his first month trading currencies, Tom's trading account was down to $400.

Jim, did a little bit of research and found Forex Ambush. This was a membership website that provided its members winning signals. What really caught his eye was that they boldly stated that their trading signals were 99.9% accurate. How could they make such a bold statement? Jim did some more digging and found lots of positive feedback from current members. And there was one more thing that finally swayed Jim into giving Forex Ambush a try: they offered a 7 day trial at a fraction of their normal price.

For less than twenty bucks, Jim had seven days to try out Forex Ambush and their 99.9% accurate trading signals. He was really excited. He had $900 in his Forex trading account and still had $80+ to use in case Forex Ambush didn't help.

The next day Jim received an email with a trading signal from Forex Ambush. He was still very new to Forex, but with the bold accuracy statement still in his mind, Jim put in his order just as the trading signal specified. When his transaction closed later that day, Jim had made a $145 profit. He was very excited! After his 7 day trial ended, Jim went ahead and signed up to be a permanent member of Forex Ambush. Although not every trading signal resulted in profits, almost all of them did. And the losses that he did have were very small. After a month, Jim had $1750 in his Forex trading account.

Month 2:

Tom was feeling deflated. Within a month, he had gone from $1000 to $400. In order to try to make back his money, he did higher valued trades that were much more risky. The end result: he was down to $0 before the month had even ended. Tom was angry and frustrated. He swore off ever doing Forex again, telling anyone that would listen that it was a scam and that they should save their money.

Jim, on the other hand, was on cloud nine. He had turned his initial $900 and turned it into $1750. He was still getting the daily email from Forex Ambush with the trading signals, but he was also testing out a few other Forex trading systems. After a month of profitable trades, he had a much better understand on the Forex market and was full of confidence. By the end of month 2, Jim's trading account was now at $2355.

And the most remarkable thing was that Jim was doing all of this in his spare time. He still had a full-time job to cover his living expenses. Everything he made in Forex was extra. He has been contemplating quitting his job and trading Forex on a full-time basis. But for now, he's happy for the stability his current job brings him and is enjoying the benefits that his "side" money in Forex is providing him.

The moral of the story: if you want to succeed at anything that you have very little knowledge and experience with, it is highly recommended that you invest in the tools and resources to maximize your chances of success.

You need to ask yourself: do you want to be like Tom, poor, angry, and swearing that Forex is just a scam? Or would you rather be like Jim, investing in tools to help you succeed and enjoying the profits that those tools will help you make? If you are serious about making money with Forex, then you owe it to yourself to find a Forex trading system that will give you the winning edge.

Forex Trading For Beginners - Why Automated Software Is the Best Way to Start

Automated forex software is used by hundreds of thousands of traders of the forex market the world over. These programs automatically place and and trades for you in the currency exchange 24 hours a day, seven days a week.

These programs can obviously enable forex trading for beginners to be done without the risk so that inexperienced traders can make the same kind of money reliably as those who have done it for years, and without the risk at that. That's not the only reason to use a forex program, however. Consider these three reasons to use automated forex software as the best intro of forex trading for beginners.

First off, as I mentioned in opening, automated forex programs work for you 24 hours a day around the clock seven days a week. They scour the market looking for high probability trading opportunities to invest in. Once they find what they believe to be a high probability trading opportunity, the program invests accordingly and then follows that trade and its performance in the market to react to any harmful changes which may come with fluctuations in the market.

Once that inevitably occurs, the automated forex software trades away the now bad investment to save you from loss. Given that the forex market takes place all around the world over different markets, some of which open and close in the middle of the night, saving you from having to perform this full time job and a half yourself is a major asset.

Secondly, relying on an automated forex program to do your analytics and trading works for you is much more cost-effective than hiring a broker to do the same job for you and arguably better at that. Most of these programs are had at a one time cost and are capable of reacting to changes in the market up to the second in which they occur because it's completely automated. They also work without tiring and obviously never make mistakes, every move is the product of algorithmically crunched market behavior and nothing else.

Lastly, using automated forex software to do your trading work for you in full means that knowing emotions or other negative human errors have a chance of negatively effecting your trades. Emotions kill even the most once promising trades and even the most seasoned investors can make these kinds of mistakes. With automated forex software working for you, you don't have to worry about staying invested in a trade longer than you should or when the best time to exit is because the program handles this for you in full.

Learn Forex Trading - How to Genuinely Learn Forex Trading, This is the Question Here!

Greed, the wrong advice, lack of advice usually create the premises for very poor investments on currency and stock markets. People who make profit on speculative markets like Forex usually know what they are doing, having solid information on the operations specific to Forex. You can learn Forex trading step by step but not from e-books and e-guides that promise you a fortune. The so-called secrets they try to sell to you are present for free on lots of web sites, and unfortunately, because of such materials Forex trading has a pretty negative reputation. How to genuinely learn Forex trading, this is the question here.

If you are a beginner, you should read tips, words of advice, articles and blog entries from more experienced traders. Amzon stores also abound in a book offer you can hardly refuse. It suffices to surf the net and read around, getting the basics. Then, begin modestly with Mini-Forex accounts and place small deposits of $25 and start with them. Once you have an understanding level of how the market works and a theoretical background, you can move on to learn Forex trading by direct practice.

Nobody says you will get as rich as turtles overnight, but loss is part of the learning process too. You need to be very heavily motivated to reach a high success level, otherwise, you could just be content with some extra profit you make on a weekly or monthly basis. In case you want some fast solutions to learn Forex trading, I only know of one way: with professional help. The secrets of speculative business can only be revealed by someone who masters them. Find out how to interpret Forex charts and focus on technical analysis of the Forex reports and make these two activities the cornerstones of your education.

Brokers and banks have the best information on Forex trends. This is where you should become an apprentice and learn Forex trading from the source. The important thing is to create your own work system that you can understand and apply on a constant basis. You won't be able to find your way in a maze of theories unless you keep things simple. You can learn Forex trading without being a born genius, but you do need an insightful mind and the ability to adapt to financial changes quickly and profitably. Then, experience will gain you money!

Forex Trading can be learned by anyone. It truly is a business open to anyone. BUT the learning curve is steep, a lot of mistakes are being made and you can lose a lot of money fast by making the same mistakes all beginner forex traders make.

The History of FOREX Trading

The origin of Forex trading traces its history to centuries ago. Different currencies and the need to exchange them had existed since the Babylonians. They are credited with the first use of paper notes and receipts. Speculation hardly ever happened, and certainly the enormous speculative activity in the market today would have been frowned upon.

In those days, the value of goods were expressed in terms of other goods(also called as the Barter System). The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value. Trade was carried among people of Africa, Asia etc through this system.

Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today's modern currencies.

Before the First World war, most Central banks supported their currencies with convertibility to gold. However, the gold exchange standard had its weaknesses of boom-bust patterns. As an economy strengthened, it would import a great deal from out of the country until it ran down its gold reserves required to support its money; as a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities had hit bottom, appearing attractive to other nations, who would sprint into buying fury that injected the economy with gold until it increased its money supply, drive down interest rates and restore wealth into the economy.. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability. The Great Depression and the removal of the gold standard in 1931 created a serious lull in Forex market activity. From 1931 until 1973, the Forex market went through a series of changes. These changes greatly affected the global economies at the time and speculation in the Forex markets during these times was little.

In order to protect local national interests, increased foreign exchange controls were introduced to prevent market forces from punishing monetary irresponsibility.

Near the end of World War II, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar. International institutions such as the IMF, The World Bank and GATT were created in the same period as the emerging victors of WWII searched for a way to avoid the destabilizing monetary crises leading to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that reinstated The Gold Standard partly, fixing the USD at $35.00 per ounce of Gold and fixing the other main currencies to the dollar, initially intended to be on a permanent basis.

The Bretton Woods system came under increasing pressure as national economies moved in different directions during the 1960's. A number of realignments held the system alive for a long time but eventually Bretton Woods collapsed in the early 1970's following president Nixon's suspension of the gold convertibility in August 1971. The dollar was not any longer suited as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.

The last few decades have seen foreign exchange trading develop into the world's largest global market. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.

The European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. The quest continued in Europe for currency stability with the 1991 signing of The Maastricht treaty. This was to not only fix exchange rates but also actually replace many of them with the Euro in 2002. London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance.

In Asia, the lack of sustainability of fixed foreign exchange rates has gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates in particular in South America also looking very vulnerable.

While commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have discovered a new playground. The Forex exchange market initially worked under the central banks and the governmental institutions but later on it accommodated the various institutions, at present it also includes the dot com booms and the world wide web. The size of the Forex market now dwarfs any other investment market. The foreign exchange market is the largest financial market in the world. Approximately 1.9 trillion dollars are traded daily in the foreign exchange market. It is estimated that more than USD 1,200 Billion are traded every day. It can be said easily that Forex market is a lucrative opportunity for the modern day savvy investor.

Futures Versus Forex (Foreign Exchange Market)

Todays current futures market is quite unlike the futures of the 19th century. Todays future market is a worldwide one that includes manufactured goods, financial currencies and treasury bonds, and agricultural products.

When you speculate on futures it is not the actual good that is speculated upon rather it is the contract for the goods that is traded as value. Every futures contract includes a buyer and a seller. The following is an example of a futures speculation: A farmer agrees to deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If the daily price of corn futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 — $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day.

Using the above as an example this is how the contract settlement would play out: If the price of corn futures is still at $4.00 the farmer will have made $1000 on the futures contract and the baker will have lost an equal amount. However, the baker can now purchase corn on the open market at $4.00 a bushel — $1000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of corn. Also, the farmer must sell his corn on the open market for $4.00 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference.

Speculators profit by daily fluctuations in the futures market by choosing to buy from the seller (buying short) or from the buyer (buying long).

The FOREX market has advantages over the futures market. FOREX is the largest financial market in the world. It is a liquid market and stop orders can be executed more easily and with less slippage than in other markets. The FOREX market is open 5 days a week, 24 hours a day. Traders can take advantages of opportunities as they become available. FOREX transactions are usually instantly executed. FOREX transactions are commission free. Brokers earn money on the spread.

Some investors feel that due to built in safeguards that FOREX trading is safer than futures trading.

FOREX: What Is It And How Does It Work?

one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information is superior.

For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid- meaning its in cash or convertible to cash) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors.

A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur — real time- day or night.

The Forex market is considered an Over The Counter (OTC) or 'interbank' market. This is because the transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange compared to stocks and futures markets.

Understanding Forex quotes

Reading a Forex quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.

The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

When trading Forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

Interested in FOREX Trading?

The Foreign Exchange Market (Forex) has no central exchange location yet it is the largest financial market in the world. It is over 3x's the size of the stock and futures markets combined and operates via an electronic network of a banks, corporations and investors.

Foreign exchange consists of a simultaneous buying of one currency and selling of another. Currency is traded in pairs, in other words, one currency is traded for another. The major currencies are:

USD — United States Dollar
EUR — Euro members Euro
JPY — Japan Yen
GBP — Great Britian pound
CHF — Switzerland franc
CAD — Canadian dollar
AUD — Australia dollar

There are 2 types of investors involved in the Forex market.The first type of investor is the hedger. The hedger is involved in International trades and utilizes Forex trading to protect their interest in a transaction from adverse currency fluctuations. The 2nd type of investor is the speculator who invests in currency solely for profit.

Currency prices fluctuate due to a variety of economic and political factors. The major factors are:

Interest rates
International trade
Inflation
Political stability

There are many reasons investors take a great interest in FX trading Some of the major reasons are:

No fees
No middlemen
No fixed trade sizes
Low transaction cost
High liquidity
Instant transactions
Low margin / High leverage
24 hour market
Online access via online trading platforms
Always good opportunities to trade, unlike the stock market the market is never bullish or bearish.
No one entity can control the market
No insider trading can occur

To begin trading in the Forex market, an investor only needs a computer, a high-speed internet connection and an online trading currency account. A mini account can be opened for as little as $100.

Forex Trading — Understanding Commissions, Spreads and Trading Costs

The forex market is quickly becoming one of the most popular markets for trading.

Not only are the experienced traders looking to this market to maximize their trading returns, but many new, individual investors are now able to trade the Forex market — just as they do stocks and futures.

More and more individuals are seeing Forex not only as a new way to diversify their portfolio, but are also finding that it is becoming the most profitable component of their investments.

And that's because of the many advantages Forex offers over other markets like stocks or commodities. Here's what you will typically see advertized about Forex:

— Unparallelled liquidity. It is the largest financial market in the world by far. Almost $2 trillion being traded daily!

— Excellent leverage potential. Individual investors have access to leverage of 100:1 and even 200:1

— No Commissions (more on this later on)

— Low trading costs.

And yes, the Forex market really does offer all these advantages.

But the last two points above talk about costs, and that's what we'd like to focus on in this article.

Like any trading, there are costs involved, and, while these may be much lower than they used to be, it is important to understand what those are.

Let's start by looking at stock trading, something that most of us investors are pretty familiar with.

When trading stocks, most investors will have a trading account with a broker somewhere and will have investment funds deposited in that account.

The broker will then execute the trades on behalf of the account holder, and of course, in return for providing that service, the broker will want to be compensated.

With stocks, typically, the broker will earn a commission for executing the trade. They will charge either a fixed dollar amount per trade, or a dollar amount per share, or (most commonly) a scaled commission based on how big your trade is.

And, they will charge it on both sides of the transaction. That is to say, when you buy the stock you get charged commission, AND then when you sell that same stock you get charged another commission.

With Forex trading, the brokers constantly advertise "no commission". And, of course that's true — except for a few brokers, who do charge a commission similar to stocks.

But also, of course, the brokers aren't performing their trading services for free. They too make money.

The way they do that is by charging the investor a "spread". Simply put, the spread is the difference between the bid price and the ask price for the currency being traded.

The broker will add this spread onto the price of the trade and keep it as their fee for trading.

So, while it isn't a commission per se, it behaves in practically the same way. It is just a little more hidden.

The good news though is that typically this spread is only charged on one side of the transaction. In other words, you don't pay the spread when you buy AND then again when you sell. It is usually only charged on the "buy" side of the trades.

So the spread really is your primary cost of trading the Forex and you should pay attention to the details of what the different brokers offer.

The spreads offered can vary pretty dramatically from broker to broker. And while it may not seem like much of a difference to be trading with a 5 pip spread vs a 4 pip spread, it actually can add up very quickly when you multiply it out by how many trades you make and how much money you're trading. Think about it, 4 pips vs 5 pips is a difference of 25% on your trading costs.

The other thing to recognize is that spreads can vary based on what currencies you're trading and what type of account you open.

Most brokers will give you different spreads for different currencies. The most popular currency pairs like the EURUSD or GBPUSD will typically have the lowest spreads, while currencies that have less demand will likely be traded with higher spreads.

Be sure to think about what currencies you are most likely to be trading and find out what your spreads will be for those currencies.

Also, some brokers will offer different spreads for different types of accounts. A mini account, for example may be subject to higher spreads than a full contract account.

And finally, because the spreads really are the difference between bid prices and ask prices as determined by the free market, it is important to recognize that they are not "guaranteed". Most brokers will tell you that there may be times during periods of low demand, or very active trading when the spreads widen and you will be charged that wider spread.

These do tend to be rarer situations because the Forex market really is so large and demand and supply are generally quite predictable, but they do occur, especially with some of the lesser traded currencies. So it's important to be aware of that.

In summary then, when trading Forex, understand that the "spread" is truly your most important consideration for trading costs.

Spreads can vary significantly between brokers, account types and currencies traded. And small differences in the spread can really add up to thousands of dollars in trading costs over even just a few months.

So be sure to understand what currencies you are going to be trading, how frequently, and in what type of account and use those factors to help decide which broker can offer you the best trading costs.