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Easy To Follow Forex Strategies

Forex is not new in the financial market. It is not only known by big players in the world, but also by small organizations and individuals lately. Now, forex is no longer ruled by the big players; people from all walks of life can do forex trading.

Before plunging into trading, you must know specific terms that are used in the market. One important term is the forex trading system. What it is all about, and what is its use.

The birth of the internet has changed the face of forex trading. Because of this valuable tool, the FX market is easier to access, making it more convenient for small players.

And most importantly, all of this happens in real-time, which is why online traders can make quick decisions regarding their trade.

The forex trading system is ergonomic and intuitive. You can do all the necessary functions involved in forex trading from your main screen. You can place a trade and leave an order. And not only that, but you can also conduct margin analysis and position/order management.

There are many companies located in different countries, which can provide you with a forex trading system. The very first thing that a method usually involves is an investment of money.

Some companies would require you to invest as low as five dollars, while some can ask for as high as five hundred dollars for upfront payments. Forex systems greatly vary, and it depends mainly on the company offering such service.

With the system, you can purchase companies, stocks and make investments even in other places. You can enhance your wealth and personal preferences by investing in a forex trading system.

By investing a certain amount of money, you can make even more money in the future. The forex trading system that many traders know about is built among leading companies, investors, and worldwide currencies.

The trading system can be offline or online. You are free to choose which method will work best for you. However, online trading systems are gaining more and more popularity because you have easy access to your invested money.

Offline trading systems usually involve a lot of paperwork, while with an online system, you can instantly support, trade, move and remove money faster.

All it takes is for you to learn about the investment and trust the suitable brokers if you may need to make different decisions in the future. It would be best if you were involved with a company to communicate with at any time during a business day.

That particular company should provide you with a telephone number, fax number, and email address. Steer clear from companies that do not disclose such information.

Without the right trading system, you can’t trade effectively. Therefore you must choose a design that is suited for you as an individual. It would be best if you considered the trading style and the risk that it involves.

A system that focuses more on risk and money management techniques is a good one. Look for a company that has been in business for many years and those with proven professional experience.

It must also provide you with tools and strategies that will help you in developing your very own online trading system. If you select the right company, you can find one of the best value for your money.

Choosing a good and probably the best forex trading system is one of the first things you should learn in forex. There are three factors usually considered in determining a forex trading system: profitability, acceptability, and one that fits your daily routine.

Profitability is probably the most crucial consideration. People invest money to make profits, and a sound system should provide that. It is shown in dollar amounts or pips/month.

Every system has a drawdown, and it is also expressed in pips. It is the most considerable decrease in inequity in the past. In comparing different techniques, you should take a close look at their historical drawdown.

Also, check for the system’s profit and loss ratio and its win and loss ratio. The system should have consistency, and you can effectively tell this by looking into their monthly or quarterly and yearly results.
Once you’ve chosen a system, learn all about it, and you can expect to gain a lot from your investment.

Currency Trading Tips! Get Rich!

The retail FX market is purely speculative. No physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market price. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded as such on the trader’s account.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations who need to trade currencies continually (for example, for payroll, payment for costs of goods and services from foreign vendors, and merger and acquisition activity).

However, these day-to-day corporate needs comprise only about 20% of the market volume. Fully 80% of trades in the currency market are speculative, put on by large financial institutions, multibillion-dollar hedge funds, and even individuals who want to express their opinions on the economic and geopolitical events of the day.

Meaning of Trading in Pairs

Because currencies always trade in pairs, when a trader makes a trade, he or she is always long one currency and short the other.

For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, she would have exchanged euros for dollars and would now be short euros and long dollars. To better understand this dynamic, let’s use a concrete example.

If you went into an electronics store and purchased a computer for $1,000, what would you be doing? You would exchange your dollars for a computer. As a result, you would be short $1,000 and long one computer. The store would be long $1,000 but now fast one computer in its inventory.

The same principle applies to the FX market, except that no physical exchange takes place. Thus, while all transactions are simply computer entries, the consequences are no less real.

Great Returns in Currency Trading

The opportunities for unmatched returns and investment protection in the brave new world of foreign currency investing are second to none.

In Foreign Currency Trading, financial executives Russell Wasendorf, Sr., and Russell Wasendorf, Jr. describe foreign currency trading in plain terms and help you understand the risks. Benefits and operational requirements that you will need to take advantage of this market’s tremendous potential.

Look to Foreign Currency Trading for simple explanations on the mechanics of foreign currency trading, an in-depth discussion of all pertinent foreign exchange rules and regulations, and a comprehensive glossary with literally hundreds of terms essential to forex trading.

With formerly imposing currency trading restrictions having been struck down in recent court rulings, the world of foreign currency trading is an exciting and rapidly expanding field.

Day Trading Robot, Automated Forex Trading Bot

A day trading robot? Gee Wiz! It sounds like science fiction, right? It did to me just a few years ago. I would have never imagined that such a thing was possible.

First of all, I came from a school of thought that believed nothing could be programmed to trade the markets successfully. I strongly believed this and argued with anyone that crossed my path. “No automated day trading system could tackle the stock market; impossible!” or so I thought.

I also said to myself, “How could a computer program successfully factor fear and greed [the emotions that move the market] into an equation designed to extract consistent short-term profits from the market every day?” Well…,

…the bad news is that there really isn’t a robot to day trade stocks. Sorry to burst your bubble.

But…the good news is that there is one that day trades currencies (you know, the great forex market that I love and have bored you over and over with throughout this website?).

No folks; this is not “Forex Made Easy.” This is “Forex Made Easier”- An automated day trading system that NOT ONLY comes with a highly sophisticated set of conditions to enter and exit the market but one that also pulls the trigger (that is, executes the trades) for you, using proper money management without which day trading is doomed to failure.

[If you have not read why I strongly believe that the forex (short for foreign exchange) market is the purest and best market to day trade in the world, go to the currency trading section of this website]. This automated system is also known as Forex Robot or FX Bot (for frequently asked questions about the trading robot, click here).

Yes, day trading fans. This day trading robot (or bot) not only finds the trades, but it also takes advantage of them when it finds them.

When the forex trading robot was presented to me for the first time, it was difficult for me to accept the whole concept. I got to admit; I was pretty skeptical. If the explanation hadn’t come from the best two money managers and traders I know (and personal friends of mine), I wouldn’t have even listened. But after a while, I was sold.

“You, Dan? Mr. Day Trading Tutor?” 

“Telling us that you believe in a day trading robot after writing an endless amount of information about how people could learn how to day trade, how much you believe in day trading, how you have helped day traders in the past, etc., etc.?”

Whoa, whoa!!! People don’t get so excited. But, all of these things are still true. Some people will learn how to day trade successfully and become successful traders.

I am still involved on a minimal basis in the training of some day traders. But there are also many people out there who will never succeed as day traders and others who will realize that it is not for them after having tried it.

This is the truth, plain and simple. And even if the day trading robot wouldn’t have existed, this would have still been a reality.

So instead, the FX robot is just something extra that I feel can help unsuccessful traders and investors add something different (a new component) to their investment portfolios. Believe me; this is completely different from any investment I have ever seen before.

I created Day Trading Tutor to give you the reality of trading. Well, talking about the trading Bot extends this goal. Since it exists and can help you, I must tell you about it, period!

Ladies and gentlemen; I am sorry if I sound really excited about this trading Bot thing so excited it made me I even became part of it to offer it to my clients, friends, and family members (read “How are you involved in the day trading Bot and are you doing it just for the money?” below.

I like to be very clear about the things I say. It makes me sleep peacefully at night. The thing is that I haven’t been part of a grand project like this for a long, long time.

The money managers and traders who designed and monitored the day trading robot daily have become personal friends of mine in the last few years.

They are great guys and exceptional traders. They have been top-ranked in the past in the forex money management industry. I don’t particularly appreciate recommending traders or money managers to people, but this is an exception.

The robot program rocks!

Forex Money Strategy

While day trading is neither illegal nor is it unethical, it can be hazardous. As a trader, you will probably fall into two major categories, traders who like to trade the breakout and traders who like to join the trend once established. Of course, most day traders have their favorite markets.

You don’t need to know everything about day trading to succeed as a day trader.

More important for the day-trader than others is to have the proper ‘team’ in place. Keep in mind a day-trader with a computer and access to the Internet already has access to a world of information.

Some day traders might buy and sell stocks in minutes but might also hold some overnight or longer. During the day trading, a day trader will quickly buy a large number of stocks and sell them once they see the stock gain within the day.

Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures.

An investor needs to have a system that helps him to be prepared for all scenarios of a trade. For example, is Day Trading Right For You? Can day-trading be learned?

With the unlimited potential to earn from day trading comes the possibility of great financial loss.

The Forex market is the largest financial market in the world, with the average daily trading of currencies going over US$1.6 trillion. Day trading doesn’t mean trading every day.

Day trading means not holding any position beyond the current trading day.

Currency Exchange Rates Ins and Outs

Are you planning a trip abroad? If so, you might want to know the current currency exchange rates so you can plan for your financing needs. Your money is usually not worth the same in different countries as it is in the country where you live.

It’s a good idea to know the value of your dollar before you take your trip, as you will have to hand it over to be converted when you reach your destination.

You don’t want to be shocked when you get there and realize the possibility of an enormous difference in monetary value and that your money isn’t worth close to what is in your own country.

Then again, it may end up that you are happily surprised upon discovering that your money is worth double or triple in the country you will be visiting than what it’s worth at home.

An excellent source of information for currency exchange rates and other international financial services is www.currencysource.com.

They offer information and services for business necessities like buying foreign currency, transferring funds to an overseas bank account, or paying an international seller’s invoice.

On a personal level, you can send international wire transfers to family or friends abroad, pay overseas college tuition or put a deposit down on a vacation rental in a foreign country.

Another great feature they offer is a currency converter right on their home page. So you can find out what your money’s worth in almost any country around the world in just a few seconds!

Another reason for being aware of currency exchange rates is for purchasing overseas stocks.

When you purchase stock in another country but are based in your own country, as in online trading, for instance, your dollar value will probably be different from what it is in the country where you are investing.

You will want to be informed of the exact currency exchange rates to know precisely how much you are paying for that stock. It may seem like a good price until you convert your dollars. Then, you may end up paying much more than the stock is actually worth, defeating the entire purpose of investing.

Comments on Forex Trading Account Sizes, Lots and Margin Calls.

Forex trading is one of the best business opportunities you can think of joining these days. No other market in the world allows the “Leverage” that the profitable world of currency-trading does. Leverage is all about margin trading.

In the Forex market, it is essentially the ratio of the amount used in a trade to the required security deposit needed by the particular broker you chose to use for that trade.

Normally, for most brokerages, a margin deposit of just $1,000 allows you to control a $100,000 position in the Forex market. That’s 100:1 leverage or 1%. Or, said differently, a “regular full-sized account,” sometimes referred to as a 100k account, allows you to trade with lot sizes equal to $100,000. Each lot is worth $100,000 in currency. So It would only require $1,000 to trade one lot.

This great feature in Forex trading is what makes this market the hottest market to trade in right now. The Forex broker has given you a loan of 99,000 dollars secured only by your $1,000!

This is a huge loan, and by now, this is what allows traders to make extraordinary incomes in this market. And, as you also are probably used to hearing, “leverage is a two-edged sword,” it is what can cause you to lose a lot of money if you trade without rules or Stop-loss orders.

But just as an example, let’s say you were a person that likes to trade with reckless abandon, i.e., with no strategy, no common sense, no money-management principles, etc.

Of course, that’s never recommended for anyone, but being a Forex trader has such great advantages that even someone with a trading mind like the one described before will never lose more than what he has placed into a trade.

Unlike Futures (Commodity Trading), the market most people associate with High leverage, you can never have a debit balance when trading Forex.

So, despite the greater leverage associated with FX trading, it is still arguably less risky than futures trading.

Futures markets are often prone to sudden and dramatic moves, against which you can’t protect yourself, even by trading with protective stops. As a result, your position may be liquidated at a loss, and you’ll be liable for any resulting deficit in the account.

But because of the Forex market’s great liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are very unprovable. Orders are executed quickly, without slippage or partial fills, which is just great.

And as it was not enough, there are no margin calls, for your protection, the forex broker’s trading platform will automatically close out some or all of your open positions if your account equity, meaning the total floating value of the account falls below the level required to hold the positions.

Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance.

Choosing the Right Forex Software For You

You might be looking for a charting platform or a trading platform. You could also be looking for an automated trading program or a signal service. You are most probably looking for some form of assistance to help with your trading.

This is the holy grail for many traders who do not have the time or the inclination to sit in front of a computer 16 hours a day. I have done that for a couple of years and done my ‘part-time, now it’s time to let the computer take care of it for me.

The best charting and trading platform is MT4; this allows you to create custom indicators and expert advisors, allowing you to auto-trade your account.

Some people have created truly excellent Expert Advisors, and it’s like having your forex trading guru sat at your computer 24/6, never getting tired, grumpy, hungry, or anything else for that matter.

Provide a stable internet connection and power, and the EA will handle everything else for you. The problem is selecting the correct one, as there are so many out there.

Some criteria you should apply when judging an EA are;

  • Whether they will give you a free trial
  • Their FORWARD tested history and their backtested history
  • What modeling quality their backtests are run on (90% is the best available)
  • Whether they offer a money-back guarantee should the EA cannot perform for you

Markets change, and so do the performances of EA’s. So the goal is really to find one that can perform consistently over different market conditions.

The best we have seen yet in the market is the PointBreak EA.

A private trading group used this for over a year before being recently released to the public.

PointBreak Expert Advisor (Very Aggressive Trading) has resulted in 49.76% since October 2007.

This is the most aggressive setting available, the more conservative settings give smaller returns but correspondingly smaller drawdowns.

Can You Afford To Invest In Forex?

America always has been a land of promise. Whatever the course of our economy in the years immediately ahead, it is likely that investment opportunities will be both numerous and attractive.

Energetic new companies will emerge, looking for venture capital. Solid old companies will come forth with exciting new products. One industry or another will enjoy a boom period relative to the rest. And, of course, there will be casualties, too. There inevitably are.

For the observant investor, this activity, adequately evaluated and adequately timed, will bring rewards. There will be chances to buy stocks before they have called attention to themselves and begun to rise or purchase a Blue Chip, temporarily out of favor, at a depressed price.

There will be stock splits, dividend increases, new issues, mergers, spin-offs, and the tidal rise and fall of stock prices, all of these characteristics of the wildlife of the market as a reflection of American business.

If you have never invested before, you are bound to be tempted.

Whether or not you yield will depend on your answer to the first tricky question about investing: Can you afford it?

It is a lonely question, and only you can answer it, for it involves not only how much money you feel able to invest, but what kind of person you are. It is several questions wrapped into one. First, you are asking whether your financial condition permits you to invest; second, whether you can assume the risk implicit in stock investment; and, third, whether the market is a safe place for you to be.

Let’s take them one at a time.

Your Financial Position: One point should be made clear at the outset: you don’t have to be wealthy to invest. Among outsiders, you can hear it said that stock ownership is a rich man’s game. This can mean any of several things:

  • That the market is too complicated for the little man.
  • That brokers aren’t interested in minor orders.
  • That only the person who can lose a bundle without feeling it should invest.

However persuasive these arguments, they are all untrue.

The fact is—according to a recent New York Stock Exchange Survey—that almost half of all shareowners are in the $5,000—$10,000 a year income bracket. The median income of the 3,860,000 people who have become stockholders since 1956 is $6,900.

This would seem to suggest that an understanding of market operations is not too difficult to acquire and that an attentive, interested broker is not too hard to find. You can also assume that these are shareowners with a proper appreciation of the value of a dollar and in no position to laugh off losses.

You will outline the goals a small investor can hope to achieve and the possible investment pattern within the limits of a modest income further on.

The conclusion to be reached here is that investment is not a matter of enlarging a fortune you already possess, but making available some money, however small the amount, to start with.

Regardless of your salary or income level, investment is possible if three conditions can be met:

1. If you are assured of a steady income.

2. If you are meeting your current running expenses and obligations.

3. If you have a cash reserve with which to meet unforeseen emergencies.

These conditions are, first of all, safeguards made necessary by the inescapable fact that stock prices fluctuate. Outside circumstances should never dictate your judgment of when to buy when to sell, and how long to hold.

It would be best if you undertook investment only with funds you can honestly and legitimately earmark as extra. Then, with a regular income and your monthly bills paid, you know where you.

Stand and what amount can be put aside, in reserve, for any investment opportunity that arises.

Or, of course, for emergencies. A sudden demand for ready cash—to pay a hospital bill, an insurance premium, or your income tax—should come, if possible, from your reserve, not from cashing in your investments.

Whether your stocks are up or down, you are likely to take a loss on the downswing because you may be selling at less than you paid, on the upswing because you may be selling at less than the potential.

A reserve also enables you to pick and choose. The fact that you have a few hundred dollars lying idle does not automatically mean the time is ripe to buy stocks.

There’s no hurry. As the professionals say, “The market is always there.” If the market trend isn’t to your liking, or the price of a stock is higher than you want to pay, a reserve allows you the luxury of waiting for a more favorable situation.

Finally, a reserve permits investment over some time rather than all at once. As you learn more about the market, you will hear both sides of this argument. Some experts feel you should back what seems to be a good situation with all the investment funds at your command.

Others will warn against getting greedy, and advise partial investment here and there, at different times, to spread the risk. This is not the place to discuss the merits of these techniques. The point is to give yourself the flexibility of moving; either way, your judgment dictates.

Remember: your income need not be significant, so long as it is regular and enables you to put aside a surplus after taking care of your bills and the possibility of trouble. The rest need not be ample, either. Saving, as has been said many times, is a matter of regularity.

No one considers $5 too small an amount to put into a savings bank; don’t worry if that’s all you can save each week for your accumulating investment reserve. In most markets, brokers usually can suggest several sounds, solid stocks, offering liberal yields that sell for less than $20 per share.

There is no rule about the number of shares an investor must buy. If you can afford a single share (plus commissions), a broker will get it for you. As a matter of fact, through the Monthly Investment Plan, you can buy a fraction of a share, although the Plan requires a minimum investment every month.

To invest in the Forex, you will probably need a float of around $400 and support from $1 to $10 per pip to start with, then reinvest your profits.

So there is a much smaller outlay required to invest in Forex, although it is more speculative.

Good Forex software will help to reduce the risks involved.

Easy To Follow Forex Strategies

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