Fear & arrogance in Forex trading by Lance Owen

All the forex market trading knowledge in the world is not enough to help, unless you have the balls to buy and sell currencies and put your own money at risk. As with the lottery "You gotta be in it to win it". Trust me when I say that the simple task of hitting the buy or sell key is difficult to do when your own money is at risk.

You will feel anxious, even fear. Here we have the moment of truth. Do you have the courage not to be afraid and act anyway? Unless you can conquer or accept your fear and do it anyway, you will have a hard time being a successful trader.

Once you learn to overcome your fear, and it does get easier, the inverse reaction can become an issue - you become overconfident and not focused. Start by accessing yourself. What type of person are you? Are you the type that can control their emotions even under extreme stressful conditions? Or, are you the type of person who is overconfident,cocky or arrogant? Then you will be prone to take more risks than you should. Before your first real trade you need to look inside yourself and get the answers. We can correct any inadequacies before they result in paralysis (FEAR) or a huge loss (ARROGANT). A huge loss can end your trading career instantly, or prolong your success until you can raise additional capital.

Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for the trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.

The difficulty doesn't end with "pulling the trigger". In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement. Please refer to Success or Failure

For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.

The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like "what if news comes out and you wind up with a loss". The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).

So your fear is just a baseless annoyance. Don't try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld "Live in the now man". Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.

Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards - this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains - so why close it?

If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you're a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.

Many new traders believe all you need to do to trade profitably in the foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1.

To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge without taking any shortcuts, thereby assuring a solid foundation to build upon.

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Auto Forex System Trading Strategy Tips by David Vernon

Auto Forex system trading strategies can be difficult to judge at face value. They can be great for helping turn a profit. There is still the risk of losses if you have not evaluated the auto trading system effectively. There are a few key things to look for in an automatic Forex trading system. Here are a few of them.

Even though past results are never a guarantee of future results, it says so on every Forex disclaimer on the web, you can still learn a lot just by looking at how well the auto Forex system trading strategy is working for existing users. It is also a wise idea to gain the knowledge of what the maximum drawdown has been in the past for the system.

What is the ratio between wins and losses? Not to be confused with profit-loss ratio. You should also look at that as well. Don't be fooled, just because a system has a good win-loss ratio doesn't mean the profit-loss ratio is good. For example, if the strategy you are researching has a nine win to one loss ratio, that might seem really good, but if the loss is a huge drawdown then that is not good. The nine wins could be small and the loss could be big, resulting in a riskier system. Make sure you look at both of the ratios.

What is the consistency of the auto trading system? You need to know if it is delivering profits on a regular basis.

When using an Auto Forex system trading strategy, make sure that your time zone settings are calibrated accordingly. This is a major factor that should not be overlooked. Your lifestyle can be a factor as well. Will you be there to monitor each trade or will you be out and about, checking on it every so often? You should adjust your risk level to accommodate.

Your leveraging will be what determines how much you are willing to risk, or gain in reward. Leveraging can be powerful for multiplying your profits, but at the same time there comes the risk of multiplying your losses as well.

If your auto Forex system trading strategy requires the use of stop-loss or trailing-stop or take-profit levels, and you have a U.S. broker, you may want to see if they provide a trading platform out of Canada or the UK. Let me tell you how I found out, I had a profitable trade that I wanted to close, but couldn't, I ended up needing to call the trading desk after it moved to a loss. This is because of the new, National Futures Association (NFA) Compliance Rule 2-43. For those that are unaware, you can no longer use these types of limits on American brokerages. In order to close your trade you will need to enter a contradicting trade to cancel it out. For example, if you wanted to close a buy order on the pair USD/CAD, you would need to execute a sell order for USD/CAD. You will want to contact your broker, or the manufacturer of your auto Forex trading system to find out if it is compatible with the new rule. They may even have an upgrade that you need to get in order for it to be compatible.

Having an automated Forex system can be very advantageous when used correctly while managing risk properly. You have just learned what to look for in an auto Forex system trading strategy. If you apply the knowledge you have just learned it should help guide you with your trading. Bear in mind that even a 100% track record does not guarantee future success. Just remember to do your research before implementing any auto Forex system trading software.

The Forex Market, The Biggest Game In Town! by Nicholas Sammut

FOREX, 5 letters that really hide the power of this financial market.Forex or foreign exchange is a market that operates 24 hours a day, 5 days a week and can be traded from anywhere on the planet where you can get an internet connection.The Forex markets facillitates the trading of the currency of the bigger nations, with the US dollar, the Euro, the Japanese Yen and the British Pound being the major players in Forex. Forex trading used to be the domain of only the big banks and institutions before the internet came into prominance, and these guys could push the little guys like me around. But the internet is the great leveller, so now instead of paying greatly overpriced comissions and having to rely on the advice of a broker, or should I say salesman(don't get me started on this topic) to give us biased advice so we can help to put more money towards the brokers goals. These days brokerage is so cheap and the trading platforms are so sophisticated that it really is a level playing field. Forex offers amazing leverage to invest a little amount and turn this money into a big amount quickly if you are armed with the right strategies and or trading systems. Doubling your money in the Forex market is very achievable with the right tools, and it can be done on auto pilot if you choose the correct trading program.There is alot of garbage on the market, so you have to be very careful when you choose a program that it is legitimate and legal.The 30 to 1 rule applies here, in that for every 30 trading programs you will get 1 good one. I hope this information helps you out in making the right choice for you and has armed you with useful knowledge you can use.

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Learning to Handle Risks in Forex Trading by Vahid Chaychi

Forex Trading is a great opportunity to make money but the risks that lie beneath it are equally challenging. People therefore are reluctant to get involve in it. But what they don't realize is that risks are everywhere. Don't factories malfunction, or Stock market crash? Don't people lose their jobs when their companies are downsizing? So instead of losing out on the Forex trading Opportunity one would rather learn to deal with the risks. Wouldn't you agree? Learn to maintain your risk. And the best way to deal with risks in Forex trading is by way of educating oneself.

One of the best ways to minimize or avoid risks is to learn to identify a genuine Forex dealer. When you are trading in Forex market, you are 100% relying on the dealer's integrity for a getting you a fair deal. So be cautious about whom you are dealing with and do not forget to check the investment offer. Hire a trader whose business are legally regulated. This is the safest method to avoid forex scams, especially on the net.

Besides choosing the right Forex trader, learn to keep an eye on the ever fluctuating forex market and create a risk profile for yourself. This risk profile or placing of stop loss order will stop or prohibit the Forex dealer from taking risks that are beyond your financial means.

One more way to manage your risks is to trade without overleveraged. Forex dealers may suggest you to trade with high leverages since it mean more spread income for them. But don't fall prey to it unless you have in-depth knowledge and the risks involved. Of course there are bigger profits when you trade like that but even the losses are big and as a beginner you'd rather avoid gambling with your money and stick to risk management rules and learn to strike wise deals.

You can also put your skills on test by using the demo account which is provided free by dealers.

Diversification of investments is another way to manage risks in Forex market. If you wish to lower your risk in fx market, it is advised that you diversify the trades between several currencies instead of sticking to one or two fixed pairs. Also give a try and simultaneously trade on different pair of currency.

By adopting the above strategies you will definitely be able to turn the odds in your favor and strike more profitable deals than before.

Trading Stocks, Forex and Emini to Earn Living by Gen Wright

Discipline has supreme importance in day trading any market. It means you execute trades as per instructions given at all times. You should never violate trading rules at all otherwise you could suffer serious financial loss. It looks very easy to follow rules. Many beginners are excited and they think they could be millionaire in a short period of time.

They see reality when they are sitting in front of their computers watching the market, they tend to forget rules of trading and make emotional trades. Beginners especially become excited with forex trading because it can be started with as low as two hundred dollars. Online currency trading does offer huge potential of income but there is also an opposite side which many traders forget easily and that is a huge loss. It means high risk high return. Successful traders determine risk before placing a trade while the opposite is true for emotional traders.

Well, you can trade any market like forex, futures trading, stock trading, emini futures and options. Managing risk is another important element of trading. If you manage your risk effectively by keeping a reasonable position size, you can do highly volatile commodity trading or currency trading. Risk management is a key to trade any market.

Forex consists of many different pairs but there are six major currency pairs which are highly liquid. CME has introduced E-micro forex futures which you can trade easily with any reputable broker avoiding bucket shop businesses. Majority traders have a lot of complaints against brokers offering currency trading in the unregulated market. Some of these brokers manipulate prices for their own benefit but e- micro brings peace of mind. Now you can trade with low risk in regulated market.

Emini trading is also well known trading instrument. You can trade emini futures during the regular stock market hours effectively even though they are available twenty four hours. If you are a discipline trader you need only couple of hours a day to earn regular full time income. Reputable brokers offer emini on higher margin which is a positive thing because small traders try to make money with very small capital. You have no room of any mistake when you have little capital. You should have reasonable money to open account with a good broker.

Day trading in stocks requires large capital. But if you have large capital you can trade all trading instruments including forex and commodities with one broker. You can enjoy many trading opportunities in multiple markets. There are hundreds of stocks and you will definitely find a stock for daytrading every day.

You need a sound trading strategy and effective risk management plan to grow your equity and keep your capital safe. Only disciplined traders equipped with great risk management strategy can make money in today's volatile markets.

The 5 Benefits of Forex Trading by Jack Benson

Professional traders are not the only ones that are interested in making money with forex trading. Even commercial organizations, especially those that engage in the export and import business, also invest in the forex because they require the currency exposure for their business. However in terms of turnovers, financial institutions still take the lead. They are the big players and they consist of banks, brokers and the likes.

Nevertheless any investor is free to engage in forex trading, provided of course that they have the necessary knowledge of how to go about with the trading process.

Why Forex Trading?

No matter how risky forex trading is, a lot of people continue to venture into the forex. But, who can blame them? Forex trading has the most favorable trading conditions which makes it an ideal investment to venture into.

5 Reasons Why

1. Forex trading offers 24/5 accessibility which means that the trader can buy and sell foreign currency anytime regardless of zone differences...this is an ideal opportunity to make the most out of the investment.

2. If the trader joins a forex trading company, they would be guided by professionals on how to properly go about trading the forex.

3. Forex trading offers superior liquidity. Forex trading's liquidity helps with price stability and narrow down spreads.

4. Commissions are not paid in forex trading and, as a result, traders are able to fully maximize the profit they realize from their investments.

5. Leveraging is also a benefit because in forex trading you get to hold a position of up to a hundred times more than your margin deposit which is an ideal opportunity for traders to increase their investment.

In summary, traders must remember that the market for forex investing is constantly changing and making way for greater opportunities to trade regardless of the current condition of currency.

Is Forex Signals Service Reliable? by Joss Simos

When you make a decision to venture into the foreign-exchange or forex market, you, naturally, have latterly considered the myriads of possibilities that it can open up to you. You'll have already considered trying your luck with a foreign exchange broker, with getting a foreign exchange trading software and buying foreign exchange signals to be in a position to reassure your success.

In reality, only about 30 p.c are successful. Using foreign exchange signals such as Forex Ambush will permit you to become more successful while you get them and from the right sources and you know precisely what to do with them. Since the currency exchange world is extraordinarily dynamic and upbeat fundamentally, you should be prepared to make your own systems particularly when you are depending on currency exchange signals.

Having the facility to identify which foreign exchange signals will help you in a smart demeanour is vital since this is a mush to avoid very unlikely losses. Currency trading may be a fairly tough world, though, and if you aren't careful, you'll be sucked into purchasing currency exchange signals that don't essentially work and are just created to steal money from folks who are not smart enough to avoid them. Here are the things that you must consider when attempting to find the right forex signals to use : one. Do a research on your options. If you are planning to buy them, examine the Net for high-ranking foreign-exchange signal providers because possibilities are, they are the most trustworthy ones, otherwise, their high search engine lists won't be achieved. Two. Read through the disclaimers so you may know what you will be getting and what you will not be getting. Ensure you will be purchasing from trustworthy sources. 3. There are currency exchange signals that are brazenly given over the web, especially by foreign exchange traders who have their own blog sites.

A massive amount of them are kind enough to share their successes and their calamities and how they went about working with them. Foreign exchange signals will be prepared to help you while you know what to do with them. Use them to your benefit at each point.