Currency Forex Trading Systems - The Best Ways To Learn Forex Trading Revealed By 6645 Forex Traders
By Peter Lim
Potential traders and novices to forex trading are getting somewhat confused on what is the best method to go about learning how to trade forex or currencies. This is rightfully so, because there are a whole lot of training providers, and independent coaches , even brokers and printed literature all vying for the attention of potential students.
Indeed, if you desire to learn how to trade forex successfully, what is the best way to do so?
Trading coaches and trainers sometimes do have their own opinions, but are their opinions on what is their best way to teach others necessarily be in the best interest of their students?
To get a better understanding of what exactly is the best way for a person to learn forex trading, a recent poll was conducted in a major Forex Trading forum, consisting of international forex traders across the globe, with the question:
"What is the best way to learn how to be a successful forex trader"
A significant number of forex traders responded to the question as a total of 6645 responses were received from the membership, providing direct answers to this question. These were responses from actual forex traders who have faced the same question earlier in their trading careers, and who, now having learnt the tricks of the trade, are able to look back with much hindsight and wisdom, and to share their feelings on what exactly would be the best way to learn forex trading successfully.
Topping the list of the main ways was " to attend more seminars, read books and forums, get some experience and make trading decisions yourself". In other words, members were overwhelmingly endorsing a period of self study and education and paper trading and practice as the best way to become a successful forex trader.
A close second approach was to "sit side by side with a Mentor and study his methods and techniques".
Other responses which receive little support included subscribing to a signal alert or to get live deals from a guru and trade according to them; to buy a software package and trade according to the signals therein; to hire a professional forex portfolio manager or to invest in a hedge fund and monitor trades done by the fund manager to learn from him, and several other minor approaches.
On the basis of these responses from experienced forex traders, it is clear that they were subscribing to the concept that in forex trading, it is important to know how forex trading works, why it works, and to do self study on the various aspects, which will include knowing the win/loss ratios, back testing and strategy testing. By a period of self study, a forex trader can find a system that matches closely his trading profile, his
personal tolerance for risk and time frame of trading. Those who were supportive of having a mentor would have the benefit of a fast tracking of practical skills and knowledge, from the mentor to the student, and to gain hidden and lesser known information from a reliable source, namely the mentor himself.
So if you are seeking to learn how to trade the forex profitably, consider the fact that 6645 forex traders are broadly supportive of the idea that it is personal discovery and study, and learning with a mentor that counts as the two major top approaches in learning to be a successful forex trader.
Peter Lim is a Certified Financial Planner. If you wish to discover profitable currency forex trading systems and to learn from an experienced forex professional on how to trade the forex and generate a 5 figure income using a 100% mechanical method, check out the author's blog at http://1forex-trading.blogspot.com
Article Source: http://EzineArticles.com/?expert=Peter_Lim
Saturday, March 31, 2007
FOREX Trading System – Get One That Has Made Millions In The Market
By Kelly Price
To trade successfully you need an edge over other traders – If you can’t think what yours is, you haven’t got one!
Here we will show you how to get an edge with FOREX Trading system that is unique and has made huge profits.
So what is this method that can give you an edge? Let’s find out.
Here we will look at a FOREX Trading system but as with any method you need to apply it with discipline and this involves having confidence that the method will make you money.
There is no better way to get confidence in a FOREX Trading system than to know that is made huge amounts of real money and is not just a hypothetical simulation sold by a vendor who has never traded in his life.
There are plenty around and people buy them but never ask for verification of results and the vendor doesn’t publish them as he doesn’t have any.
A FOREX Trading system that works WD Gann traded his unique methods at the turn of the century and amassed a fortune of over $50 million, while he died in 1955; his methods are still used around the world by savvy traders to help make big profits.
Why does his system give traders an edge?
Quite simply, while his system is a technically based system he had a unique concept.
The best trading opportunities occurred when price and time were in union. If they were not time was the ultimate indicator because:
All of life was governed by time.
Gann’s methods simply give a deeper insight into price patterns than most other technical systems and it is his unique analysis that gives you an edge when trading his methods in your own FOREX Trading system.
Are his methods easy to learn?
With some time and a willingness to learn they can be digested and applied by anyone and the y will gibe you the one trait all traders need:The key to success
While you need a good FOREX trading system to make money, you also need the discipline to trade it EXACTLY.
By reading the logic you will gain the confidence to apply it with discipline even when losing periods occur ( as they do in all systems ) and trade for longer term capital gains,
If you want a FOREX Trading system you can understand, have confidence in and know that it has made real dollars then discover the Gann method of trading and you may be glad you did.
MORE FREE INFO & GANN COURSE
On all aspects of Gann trading including an exclusive Gann Trading Course visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
By Kelly Price
To trade successfully you need an edge over other traders – If you can’t think what yours is, you haven’t got one!
Here we will show you how to get an edge with FOREX Trading system that is unique and has made huge profits.
So what is this method that can give you an edge? Let’s find out.
Here we will look at a FOREX Trading system but as with any method you need to apply it with discipline and this involves having confidence that the method will make you money.
There is no better way to get confidence in a FOREX Trading system than to know that is made huge amounts of real money and is not just a hypothetical simulation sold by a vendor who has never traded in his life.
There are plenty around and people buy them but never ask for verification of results and the vendor doesn’t publish them as he doesn’t have any.
A FOREX Trading system that works WD Gann traded his unique methods at the turn of the century and amassed a fortune of over $50 million, while he died in 1955; his methods are still used around the world by savvy traders to help make big profits.
Why does his system give traders an edge?
Quite simply, while his system is a technically based system he had a unique concept.
The best trading opportunities occurred when price and time were in union. If they were not time was the ultimate indicator because:
All of life was governed by time.
Gann’s methods simply give a deeper insight into price patterns than most other technical systems and it is his unique analysis that gives you an edge when trading his methods in your own FOREX Trading system.
Are his methods easy to learn?
With some time and a willingness to learn they can be digested and applied by anyone and the y will gibe you the one trait all traders need:The key to success
While you need a good FOREX trading system to make money, you also need the discipline to trade it EXACTLY.
By reading the logic you will gain the confidence to apply it with discipline even when losing periods occur ( as they do in all systems ) and trade for longer term capital gains,
If you want a FOREX Trading system you can understand, have confidence in and know that it has made real dollars then discover the Gann method of trading and you may be glad you did.
MORE FREE INFO & GANN COURSE
On all aspects of Gann trading including an exclusive Gann Trading Course visit our website for a huge resource of articles, features and downloads and at http://www.net-planet.org/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price
Currency Forex Trading System - Opportunity For Swing Trading When Currencies Move Up or Down
By Peter Lim
Generally, when we trade forex, we can either trade the short term fast moves that characterise the volatility inherent in currencies, or we can trade the longer term swings.
Since our aim is to have a consistent income, there is a need to have a systematic way to trade forex so that we can glean our profits consistently and systematically.
If we look at trading systems today, we find that many forex traders day-trade and these day traders have their own favorite day trading systems. Another way to describe these traders is scalping. Indeed, many forex traders are able to make a living by scalping the markets, working a few hours a day from home.
If we look a bit deeper into what makes scalping possible, then we can discover that prices of a currency do have this characteristic of moving from a low point position to an upper point position, to form a trading range in a daily fashion. As long as prices oscillate within this range, the forex trader can actually scalp and make profits from buying at the low point and selling at the high point.
What is most interesting is that beyond the boundaries of the lower point and the upper point, the currency no longer displays its tendency to oscillate, but break out into a trend. If the price drops below the lower point position, it goes into a downtrend. If it goes above the upper point position, it goes into uptrend. It is no longer under a trading range where the forex trader scalps or actually is range-trading.
It is times like these when the projected lower points positions and the upper point positions are breached and confirmed that trends are apparent, and swing trading comes into play.
For example, the US-Yen currency pair has been in a prolonged downtrend where selling positions could be taken over a period of 8 years to profit from the down swing. Day trading is no longer the focus.
Recognising when the currency pair has moved out of its trading range and has broken out into a confirmed trend is the key to swing trading.
Is the chart displaying a bottoming pattern configuration, with higher bottoms, and higher highs? Is there a double bottom or triple bottoms pattern, a V formation or a W formation in the chart pattern?
Is there slowing downwards price momentum? From the aspects of japanese candlestick, are there short term bottoming patterns such as a hammer, a tweezer bottom, a rising star, a piercing line or a bullish engulfing pattern to lend credence to your initial suspicions of a bottom and an initial upswing?
As forex traders, our objective is to be profitable whether we scalp or we swing trade. As markets trend only around 30% of the time, being able to identify the initial outbreaks of the swings and being able to trade them with our favorite swing trading systems will mean we can capture the sweetest part of the swing moves. While we range-trade 70% of the time, it is the big swing trades that can provide us with big profits. That's why we need a sound proven currency forex trading system for both range trading and swing trading if we are to profit from forex trading.
Peter Lim is a Certified Financial Planner. You can shorten the learning curve and discover 3 powerful trading systems that cover day trading, range trading and swing trading devised by a veteran professional forex trader by visiting the author's blog http://1forex-trading.blogspot.com
Article Source: http://EzineArticles.com/?expert=Peter_Lim
By Peter Lim
Generally, when we trade forex, we can either trade the short term fast moves that characterise the volatility inherent in currencies, or we can trade the longer term swings.
Since our aim is to have a consistent income, there is a need to have a systematic way to trade forex so that we can glean our profits consistently and systematically.
If we look at trading systems today, we find that many forex traders day-trade and these day traders have their own favorite day trading systems. Another way to describe these traders is scalping. Indeed, many forex traders are able to make a living by scalping the markets, working a few hours a day from home.
If we look a bit deeper into what makes scalping possible, then we can discover that prices of a currency do have this characteristic of moving from a low point position to an upper point position, to form a trading range in a daily fashion. As long as prices oscillate within this range, the forex trader can actually scalp and make profits from buying at the low point and selling at the high point.
What is most interesting is that beyond the boundaries of the lower point and the upper point, the currency no longer displays its tendency to oscillate, but break out into a trend. If the price drops below the lower point position, it goes into a downtrend. If it goes above the upper point position, it goes into uptrend. It is no longer under a trading range where the forex trader scalps or actually is range-trading.
It is times like these when the projected lower points positions and the upper point positions are breached and confirmed that trends are apparent, and swing trading comes into play.
For example, the US-Yen currency pair has been in a prolonged downtrend where selling positions could be taken over a period of 8 years to profit from the down swing. Day trading is no longer the focus.
Recognising when the currency pair has moved out of its trading range and has broken out into a confirmed trend is the key to swing trading.
Is the chart displaying a bottoming pattern configuration, with higher bottoms, and higher highs? Is there a double bottom or triple bottoms pattern, a V formation or a W formation in the chart pattern?
Is there slowing downwards price momentum? From the aspects of japanese candlestick, are there short term bottoming patterns such as a hammer, a tweezer bottom, a rising star, a piercing line or a bullish engulfing pattern to lend credence to your initial suspicions of a bottom and an initial upswing?
As forex traders, our objective is to be profitable whether we scalp or we swing trade. As markets trend only around 30% of the time, being able to identify the initial outbreaks of the swings and being able to trade them with our favorite swing trading systems will mean we can capture the sweetest part of the swing moves. While we range-trade 70% of the time, it is the big swing trades that can provide us with big profits. That's why we need a sound proven currency forex trading system for both range trading and swing trading if we are to profit from forex trading.
Peter Lim is a Certified Financial Planner. You can shorten the learning curve and discover 3 powerful trading systems that cover day trading, range trading and swing trading devised by a veteran professional forex trader by visiting the author's blog http://1forex-trading.blogspot.com
Article Source: http://EzineArticles.com/?expert=Peter_Lim
Forex Trading Systems Make Online Trading Fast and Efficient
By Milton Ziegler Ziegler
In the FOREX market, you can use two distinct types of trading systems. The first type is the mechanical trading system. The mechanical trading system is relatively easy to use because an automated process makes all trade decisions for you. This trading system is based on technical and systematic analysis. Traders call it mechanical trading because they use computers to get trading signals.
At the other side of the spectrum, the discretionary trading system uses gut instincts. It is based on an investor's experience, knowledge, and intuition. Some investors choose to use mechanical systems to understand current market conditions, and then analyze the details on their own before trading.
Mechanical Trading System
Of course, most FOREX traders use the mechanical trading system, simply because it automates the process and you can set it up with little effort. It is the easiest way to become a FOREX trader because it requires less training and education than discretionary trading. Mechanical trading systems are widely available online and some software is available in stores.
Mechanical trading systems take the human element out of FOREX trading. Through such a system, you have no opportunity to make trading decisions based on greed, gut feel, or bad judgment. Because a wise investor always invests with his head and not with his heart, mechanical trading can help those investors who often base his or her decisions on emotions.
In recent years, the internet has made FOREX trading much easier by providing online trading platforms. The brokerage firm you use will provide one for you. Some brokers have also developed mechanical trading systems that their clients can use to trade. You can buy this separately, or have one provided for you. Your broker may also provide valuable tools like economic calendars, detailed analyses, and current currency charts. If your broker does not provide these to you, you can buy them on your own or find a different brokerage firm to work with.
Discretionary Trading Systems
Even when you opt to use the FOREX mechanical trading system, you should still understand the basics of the FOREX market to become an informed investor. There are various courses and books on becoming a FOREX trader and you should take full advantage of them.
Those with limited knowledge in this area can gain just from testing a broker's trading software. The trading software can easily teach you terms, how to read charts, and some basic trading theories. Used with a book or online course, you can quickly grasp the principles behind FOREX. An informed trader can therefore use both discretionary and mechanical trading systems to achieve maximum profits.
If you're interested in entering the FOREX market, carefully consider your choices. It may be best to start off by using mechanical trading systems before deciding of your own. In this way, you can minimize losses and lessen the risk of betting over your head. Once you are familiar and learned, you can start setting up the discretionary system of trading. Stay educated; it will pay off!
Get the latest in forex trading systems know how from the only true source at http://www.forextradingline.com Check out our forex trading systems pages.
Article Source: http://EzineArticles.com/?expert=Milton_Ziegler_Ziegler
By Milton Ziegler Ziegler
In the FOREX market, you can use two distinct types of trading systems. The first type is the mechanical trading system. The mechanical trading system is relatively easy to use because an automated process makes all trade decisions for you. This trading system is based on technical and systematic analysis. Traders call it mechanical trading because they use computers to get trading signals.
At the other side of the spectrum, the discretionary trading system uses gut instincts. It is based on an investor's experience, knowledge, and intuition. Some investors choose to use mechanical systems to understand current market conditions, and then analyze the details on their own before trading.
Mechanical Trading System
Of course, most FOREX traders use the mechanical trading system, simply because it automates the process and you can set it up with little effort. It is the easiest way to become a FOREX trader because it requires less training and education than discretionary trading. Mechanical trading systems are widely available online and some software is available in stores.
Mechanical trading systems take the human element out of FOREX trading. Through such a system, you have no opportunity to make trading decisions based on greed, gut feel, or bad judgment. Because a wise investor always invests with his head and not with his heart, mechanical trading can help those investors who often base his or her decisions on emotions.
In recent years, the internet has made FOREX trading much easier by providing online trading platforms. The brokerage firm you use will provide one for you. Some brokers have also developed mechanical trading systems that their clients can use to trade. You can buy this separately, or have one provided for you. Your broker may also provide valuable tools like economic calendars, detailed analyses, and current currency charts. If your broker does not provide these to you, you can buy them on your own or find a different brokerage firm to work with.
Discretionary Trading Systems
Even when you opt to use the FOREX mechanical trading system, you should still understand the basics of the FOREX market to become an informed investor. There are various courses and books on becoming a FOREX trader and you should take full advantage of them.
Those with limited knowledge in this area can gain just from testing a broker's trading software. The trading software can easily teach you terms, how to read charts, and some basic trading theories. Used with a book or online course, you can quickly grasp the principles behind FOREX. An informed trader can therefore use both discretionary and mechanical trading systems to achieve maximum profits.
If you're interested in entering the FOREX market, carefully consider your choices. It may be best to start off by using mechanical trading systems before deciding of your own. In this way, you can minimize losses and lessen the risk of betting over your head. Once you are familiar and learned, you can start setting up the discretionary system of trading. Stay educated; it will pay off!
Get the latest in forex trading systems know how from the only true source at http://www.forextradingline.com Check out our forex trading systems pages.
Article Source: http://EzineArticles.com/?expert=Milton_Ziegler_Ziegler
Currency Forex Trading System - How To Test Any Forex Trading Strategy By Using This Unique Method
By Peter Lim
With the popularity of forex trading since middle of year 2004 when it even overtook the interest in futures and commodities trading, we have seen a lot of forex trading systems being developed. As new technology evolved, we have also seen the power of the desktop computer being harnessed for running trading platforms involving all sorts of forex trading systems instead of using computer mainframes.
The usual way most traders would want to test their forex trading systems is to use a forex strategy builder and back test on historical data, and then to discover what parameters in that trading strategy are important to the results, and to forward test again on past historical data to check the results.
Some traders will merely back test historical data, and then run the system to test on simulated data. If they find that the system could generate good results based on the system parameters, they then adopt the system for actual use in real trading instead of a paper trade.
There is a lesser known way of testing a forex trading system, and that is to actually port the trading system to test it on actual historical individual stock data.
In other words, you can use the forex trading strategy to test it on historical stock data and to check how the system performed with stock market data.
Stocks and shares normally have less volatility then forex, the difference being trading stocks and shares would involve a study of accompanying volume. In contrast, we are concerned with price and time action in forex and not volume. Further. many forex traders are more familar with trading stocks and shares, and to use a forex trading system on stocks and shares would allow the trader who is transiting from trading stocks and shares to trading forex, an easier way to learn how to trade forex.
A general guideline for testing a forex trading system with individual stock data is this - if you find the forex trading system to perform well with an individual stock data, returning profits consistently, you can have reasonable confidence that the same forex trading system will function as well for trading forex itself. If the forex trading system does not perform well with stocks and shares, the general understanding is that the system may not be robust enough for the volatility and velocity of trades inherent with trading forex.
As always, this is not a dogma, but a general guideline. That is why any forex trading strategy or system have to be tested prior to being adopted for trading.
What is significant is that you can uncover the power of a forex trading stratgey to use on trading stocks and shares in this manner. Some forex trading strategies have been performing very well on stocks and shares, and it follows that these will also perform as well with forex.
Are you still struggling to become profitable trading forex? Discover how you can get help to personalise 3 powerful trading systems from a successful professional forex trader by visiting the author's blog at http://1forex-trading.blogspot.com
Article Source: http://EzineArticles.com/?expert=Peter_Lim
By Peter Lim
With the popularity of forex trading since middle of year 2004 when it even overtook the interest in futures and commodities trading, we have seen a lot of forex trading systems being developed. As new technology evolved, we have also seen the power of the desktop computer being harnessed for running trading platforms involving all sorts of forex trading systems instead of using computer mainframes.
The usual way most traders would want to test their forex trading systems is to use a forex strategy builder and back test on historical data, and then to discover what parameters in that trading strategy are important to the results, and to forward test again on past historical data to check the results.
Some traders will merely back test historical data, and then run the system to test on simulated data. If they find that the system could generate good results based on the system parameters, they then adopt the system for actual use in real trading instead of a paper trade.
There is a lesser known way of testing a forex trading system, and that is to actually port the trading system to test it on actual historical individual stock data.
In other words, you can use the forex trading strategy to test it on historical stock data and to check how the system performed with stock market data.
Stocks and shares normally have less volatility then forex, the difference being trading stocks and shares would involve a study of accompanying volume. In contrast, we are concerned with price and time action in forex and not volume. Further. many forex traders are more familar with trading stocks and shares, and to use a forex trading system on stocks and shares would allow the trader who is transiting from trading stocks and shares to trading forex, an easier way to learn how to trade forex.
A general guideline for testing a forex trading system with individual stock data is this - if you find the forex trading system to perform well with an individual stock data, returning profits consistently, you can have reasonable confidence that the same forex trading system will function as well for trading forex itself. If the forex trading system does not perform well with stocks and shares, the general understanding is that the system may not be robust enough for the volatility and velocity of trades inherent with trading forex.
As always, this is not a dogma, but a general guideline. That is why any forex trading strategy or system have to be tested prior to being adopted for trading.
What is significant is that you can uncover the power of a forex trading stratgey to use on trading stocks and shares in this manner. Some forex trading strategies have been performing very well on stocks and shares, and it follows that these will also perform as well with forex.
Are you still struggling to become profitable trading forex? Discover how you can get help to personalise 3 powerful trading systems from a successful professional forex trader by visiting the author's blog at http://1forex-trading.blogspot.com
Article Source: http://EzineArticles.com/?expert=Peter_Lim
Tips On Choosing Automated Forex Trading Systems And Software
By Amy Wells
If you plan on learning Forex, or foreign currency exchange trading, software-developed automated Forex trading systems will be the way you make your real and your practice trades. Most individuals will start out with a demo, or practice account, that will allow them to simulate Forex trades in order to build their level of proficiency. When choosing Forex software, here are some important considerations to keep in mind.
There are many online brokers that will offer a variety of demo and real accounts that are easy to open, along with a variety of learning resources. Some of the demo accounts may have a small fee, which will usually be waived once you become confident enough to open a real account. It is certainly worth paying the small fee to get started, as the first step toward becoming a Forex trader should be practicing with a demo account.
To make a profit with Forex, it is essential to develop your skills, and to let the learning curve be with virtual money, rather than with real money.
Once you are consistently making a profit, you can then take your knowledge to real world trading, and transition to an actual account. Another advantage of using a demo account is that it lets you become familiar with the software and the system itself, so when you do start trading you will be comfortable and can concentrate on the trades themselves.
Automated Forex trading systems usually come as either desktop-based or Internet-based software. The Internet based versions usually have several advantages. For example, by using Internet-based software, you won't have to deal with maintenance issues, and the software will usually offer more data security than software that is based on your desktop. Normally, the system will be on a data-encrypted secure server, similar to a credit card, which will protect your security.
An Internet system will also be more convenient, as you will be able to check your account anywhere, which can be a plus if you travel frequently, and you won't have to deal with downloading or storing the software on your computer. However, the effectiveness of internet-based trading systems is also determined by the speed of your internet connection. Having a DSL or a broadband connection is usually the best.
Its worth taking the time to find a Forex software system that works for you. Once you settle on a place to house your demo account, you'll want to keep your real account in the same place. You can then continue to use the demo account to test alternate moves, and also to shadow the moves you make in your real account, to see if you are being too prone to risk, or too conservative.
Forex trading can be both lucrative and exciting, and its worth spending the time finding a Forex software trading system that you will be comfortable with, and that you can understand. Internet-based software offers several advantages over desktop-based software, but whichever one you choose, ease of use and the ability to practice are essential.
Amy Wells is an enthusiast of Forex trading and writes and reports on consumer finance issues. You can get more information on forex trading software at: http://www.forex.yourtechtool.com/Foreign-Exchange-Forex/Forex-Software-1.php
Article Source: http://EzineArticles.com/?expert=Amy_Wells
By Amy Wells
If you plan on learning Forex, or foreign currency exchange trading, software-developed automated Forex trading systems will be the way you make your real and your practice trades. Most individuals will start out with a demo, or practice account, that will allow them to simulate Forex trades in order to build their level of proficiency. When choosing Forex software, here are some important considerations to keep in mind.
There are many online brokers that will offer a variety of demo and real accounts that are easy to open, along with a variety of learning resources. Some of the demo accounts may have a small fee, which will usually be waived once you become confident enough to open a real account. It is certainly worth paying the small fee to get started, as the first step toward becoming a Forex trader should be practicing with a demo account.
To make a profit with Forex, it is essential to develop your skills, and to let the learning curve be with virtual money, rather than with real money.
Once you are consistently making a profit, you can then take your knowledge to real world trading, and transition to an actual account. Another advantage of using a demo account is that it lets you become familiar with the software and the system itself, so when you do start trading you will be comfortable and can concentrate on the trades themselves.
Automated Forex trading systems usually come as either desktop-based or Internet-based software. The Internet based versions usually have several advantages. For example, by using Internet-based software, you won't have to deal with maintenance issues, and the software will usually offer more data security than software that is based on your desktop. Normally, the system will be on a data-encrypted secure server, similar to a credit card, which will protect your security.
An Internet system will also be more convenient, as you will be able to check your account anywhere, which can be a plus if you travel frequently, and you won't have to deal with downloading or storing the software on your computer. However, the effectiveness of internet-based trading systems is also determined by the speed of your internet connection. Having a DSL or a broadband connection is usually the best.
Its worth taking the time to find a Forex software system that works for you. Once you settle on a place to house your demo account, you'll want to keep your real account in the same place. You can then continue to use the demo account to test alternate moves, and also to shadow the moves you make in your real account, to see if you are being too prone to risk, or too conservative.
Forex trading can be both lucrative and exciting, and its worth spending the time finding a Forex software trading system that you will be comfortable with, and that you can understand. Internet-based software offers several advantages over desktop-based software, but whichever one you choose, ease of use and the ability to practice are essential.
Amy Wells is an enthusiast of Forex trading and writes and reports on consumer finance issues. You can get more information on forex trading software at: http://www.forex.yourtechtool.com/Foreign-Exchange-Forex/Forex-Software-1.php
Article Source: http://EzineArticles.com/?expert=Amy_Wells
Forex Day Trading System
By Andrew Kasch
Most people who are interested in Forex trading are ordinary folks with no prior training or experience in short-term trading, that unfortunately are being sold a bill of goods. Late night infomercials irresponsibly tote Forex trading itself as the Holy Grail, and show clips of testimonials from a few lucky people who made some atypical trades. “I made $800 this morning before going to work,” “I cleared $3,000 my first week, part-time,” that kind of junk.
These infomercials employ a two-step process to jam an expensive product of questionable worth down your throat. Usually it’s a piece of software that has arrows which light up red or green, and when all four of them light up green you enter your position. Simple, huh? The software costs about $3,000. But they don’t tell you that up front – the television bit just invites you to a free seminar full of happy, excited people. At the seminar they fill your head full of dreams and make the price tag seem like a fraction of your first month’s profits. You feel like you are really missing out if you don’t join the crowd and get in line to buy.
While there is some merit to the four arrows all lighting green, which indicates that the price trend is all in one direction over several different time-frames, blindly following it is a horrible system. You cannot rightly call yourself a trader if this is your approach. You are just a monkey pushing buttons. Don’t plan on making any long-run profits as a monkey – maybe a banana here and there, but you WILL slip on the peels.
Think about it – if this software could really make money like they claim (virtually on autopilot), no way do they sell it. They would get much richer simply using it themselves trading large positions.
I’m not saying that daytrading Forex cannot be beaten. Much to the contrary, I trade the EUR/USD successfully intraday. You probably can too. But avoid purchasing an expensive system. In fact, I recommend avoiding mechanical systems altogether. All you need is some basic trader training in the way of technical analysis, some idea of a solid approach, and a little experience watching the markets to get a feel for them.
It’s probably best to concentrate on one pair. That’s what I do, just the EUR/USD. Sometimes if it really starts moving I will cross check other currencies to try and figure out what is happening, but I don’t trade them. By only watching one pair at regular hours you develop a feel for the trading action and can tell when conditions are strange.
There are really only two ways to day trade: Continuation or Reversal. Continuation includes breakouts and trends, while Reversal concentrates on trading ranges at the edges, betting against a breakout. Which hours you trade should dictate which style is best suited for you. If you want to trade during the most active hours you probably want to look for breakouts and try to ride trends. If you are working the quieter hours then fading the edge of the range is a higher-probability setup. Either way, success comes from employing proper risk vs. reward analysis, which means setting your stops and profit targets in the right places.
Personally I trade the after-hours EUR/USD market. It’s what I like. Also, it’s what’s practical for me because I live on the west coast of the USA. So I am only watching the market during the Asia trading period, no other markets are open. And I am looking for trading ranges, particularly double-tops and double-bottoms at prior support and resistance levels. I usually get off 5 good trades per week and win 3 of them, with a win of about 1.5 times my average loss. So it’s a good methodology because 1.5+1.5+1.5-1-1 = 2.5. That’s a positive number and it’s a good one.
Now, if I wanted to play breakouts and trend continuations I would only trade during the New York / London overlap period, which is between 8:00 am and 12:00 noon EST (or very early my time; I would rather not miss out on those early morning dreams). This is the time where those types of trades have the best odds of working out for this pair.
The most important part of any trading system is to have a methodology, stick to it, get good at it, and make it work for you. If you aren’t disciplined enough to stick to your trading ideals, then you would be better off being a monkey pushing buttons when the lights all turn green, as your losses will probably be smaller.
Details of my Forex Day Trading System are available at http://www.beatbom.com. I highly recommend the day trading platform at Easy Forex, as the risk/reward controls are excellent, and you can get started with a very small account in just a few minutes, funded with a credit card!
Article Source: http://EzineArticles.com/?expert=Andrew_Kasch
By Andrew Kasch
Most people who are interested in Forex trading are ordinary folks with no prior training or experience in short-term trading, that unfortunately are being sold a bill of goods. Late night infomercials irresponsibly tote Forex trading itself as the Holy Grail, and show clips of testimonials from a few lucky people who made some atypical trades. “I made $800 this morning before going to work,” “I cleared $3,000 my first week, part-time,” that kind of junk.
These infomercials employ a two-step process to jam an expensive product of questionable worth down your throat. Usually it’s a piece of software that has arrows which light up red or green, and when all four of them light up green you enter your position. Simple, huh? The software costs about $3,000. But they don’t tell you that up front – the television bit just invites you to a free seminar full of happy, excited people. At the seminar they fill your head full of dreams and make the price tag seem like a fraction of your first month’s profits. You feel like you are really missing out if you don’t join the crowd and get in line to buy.
While there is some merit to the four arrows all lighting green, which indicates that the price trend is all in one direction over several different time-frames, blindly following it is a horrible system. You cannot rightly call yourself a trader if this is your approach. You are just a monkey pushing buttons. Don’t plan on making any long-run profits as a monkey – maybe a banana here and there, but you WILL slip on the peels.
Think about it – if this software could really make money like they claim (virtually on autopilot), no way do they sell it. They would get much richer simply using it themselves trading large positions.
I’m not saying that daytrading Forex cannot be beaten. Much to the contrary, I trade the EUR/USD successfully intraday. You probably can too. But avoid purchasing an expensive system. In fact, I recommend avoiding mechanical systems altogether. All you need is some basic trader training in the way of technical analysis, some idea of a solid approach, and a little experience watching the markets to get a feel for them.
It’s probably best to concentrate on one pair. That’s what I do, just the EUR/USD. Sometimes if it really starts moving I will cross check other currencies to try and figure out what is happening, but I don’t trade them. By only watching one pair at regular hours you develop a feel for the trading action and can tell when conditions are strange.
There are really only two ways to day trade: Continuation or Reversal. Continuation includes breakouts and trends, while Reversal concentrates on trading ranges at the edges, betting against a breakout. Which hours you trade should dictate which style is best suited for you. If you want to trade during the most active hours you probably want to look for breakouts and try to ride trends. If you are working the quieter hours then fading the edge of the range is a higher-probability setup. Either way, success comes from employing proper risk vs. reward analysis, which means setting your stops and profit targets in the right places.
Personally I trade the after-hours EUR/USD market. It’s what I like. Also, it’s what’s practical for me because I live on the west coast of the USA. So I am only watching the market during the Asia trading period, no other markets are open. And I am looking for trading ranges, particularly double-tops and double-bottoms at prior support and resistance levels. I usually get off 5 good trades per week and win 3 of them, with a win of about 1.5 times my average loss. So it’s a good methodology because 1.5+1.5+1.5-1-1 = 2.5. That’s a positive number and it’s a good one.
Now, if I wanted to play breakouts and trend continuations I would only trade during the New York / London overlap period, which is between 8:00 am and 12:00 noon EST (or very early my time; I would rather not miss out on those early morning dreams). This is the time where those types of trades have the best odds of working out for this pair.
The most important part of any trading system is to have a methodology, stick to it, get good at it, and make it work for you. If you aren’t disciplined enough to stick to your trading ideals, then you would be better off being a monkey pushing buttons when the lights all turn green, as your losses will probably be smaller.
Details of my Forex Day Trading System are available at http://www.beatbom.com. I highly recommend the day trading platform at Easy Forex, as the risk/reward controls are excellent, and you can get started with a very small account in just a few minutes, funded with a credit card!
Article Source: http://EzineArticles.com/?expert=Andrew_Kasch
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