Investors through the ages have sought the holy grail to riches, a couple of bucks invested today, retirement tomorrow. Read the thousands of advertisements on the internet, you'd even think such a thing existed. Not only existed but Guaranteed!! If it did, we'd all have one.
The latest such mighty grail is the Forex Trading Robot, generating income automatically while you sleep, work and play. Just plug it in and let 'er rip!
The thing about this is... this one really does exist.
It isn't riches overnight with just a couple of buck investment and no effort or knowledge on your part – don't believe that hype – but it is a valuable tool for creating income, even for beginning foreign currency traders.
The foreign currency exchange markets are open worldwide 24 hours a day, 6 days a week. That makes following the markets continuously all but impossible. Forex trading software was originally designed by professional traders to help them monitor the markets 24 hours a day when they were physically unable to. The automated systems also helped them manage more campaigns than they could otherwise do without that help, thus vastly increasing their investment income.
There's nothing magic about automated trading systems – they are highly sophisticated algorithmic software packages specifically programmed with indicators to signal and execute trades automatically around the clock. Every hour of the day, they are analyzing market data and trading accordingly. Because they are connected to real-time market data, they react to the slightest changes in even over-lapping markets faster and more efficiently than any expert broker can.
One of the biggest hurdles for traders to overcome is emotion. The discipline in following a proven trading system is the only way to consistent profits and long-term success, knowing there will be losing streaks along with the winning streaks and not being distracted by them. The lack of this discipline is what causes the majority of new traders to fail. More often than not, it is emotion that triggers it: greed or fear creating cloudy or sloppy thinking and straying from the system path. Because the trades automated systems makes are based entirely on cold hard market data, any possibility of emotional trading is eliminated.
For the trader with discipline, it isn't about the money or the individual trades or prices, it's about the system and knowing that ultimately the profits will be there if that system is followed exactly. By using a forex trading system, the trader will face trades rather unemotionally and execute those trades following pre-determined levels of stop loss, trailing loss and projected profit.
It is only the disciplined trader who sees consistent large gains and small losses.
Forex trading system software is ideal for new traders to quickly learn to trade effectively and profitably. It is not a substitute for learning, following news and economic reports or studying trends. But it will earn some reliable profit and help keep you on the winning side of your trades automatically. The most valuable benefit to an automated trading system is confidence and taking the fear out of trading. If you never start, you'll never know.
Why would anyone want to invest and risk real hard-earned cash in something and not use every tool available to minimize the risk and maximize the return?
Tuesday, April 14, 2009
Forex Trading: Try It Before You Buy It
With more and more people entering the forex market every day, more and better tools are becoming available to increase the odds of success over the oft-touted 90% fall out rate. That kind of investor failure is clearly bad for the businesses that rely on their investors as their primary source of income. It is to their benefit and profit line to make it as easy as possible for investors to get in and stay in successfully.
Many brokerage firms have extensive libraries of articles and training courses as well as direct broker assistance. Among the most valuable resource tools is the demo account offered by financial institutions, banks and brokerage firms.
The demo account works with real-time market conditions just like the live market, but without any of the risks. Dealing with fake, or dummy, money you work within simulated environments to get first-hand experience in trading the foreign currency markets. There are many levels of demo accounts, some very basic that even allow you to interface with the broker as they help guide you.
Working with a demo account before you invest any of your real hard-earned money gives you insight into the market as well as show you how it feels to trade in a live environment. They are real-time with all of the risks and technical information provided so you can decide fully informed if trading in foreign currency is the right investment for you. You will learn to analyze the markets with the tools provided, place your dummy trades and exit them just as in a live market situation, learning the discipline required for successful trading.
Forex demo accounts will also help you to determine which brokerage is right for you if you do decided to enter the foreign currency market or if you're experienced and looking for a new brokerage. The trading software, or platform offered by brokers is the way you analyze and execute your trades and should be easy for you to understand and work with as well as provide all of the information you need for your trading system. The demo account will allow you to work with it to make that determination.
Demo accounts are also valuable for risk-free testing of algorithmic automated trading systems, or forex robots, that are designed by professional traders to monitor the markets 24 hours a day and automatically execute trades based on specific programmed signals. There are many of them on the market, some advertising huge profits with no effort. Don't believe the hype, but don't reject the tool as these robots can be a tremendous asset to your trading system whether you're a beginner or an experienced trader.
For this, you will want to open a demo account that allows forex robots with a broker you're comfortable with. Read reviews of the different automated systems, making sure the one you consider offers a money-back guarantee. Most offer at least 8 weeks to try it. That kind of guarantee tells you that the company has faith in its system to work as advertised.
After you buy the robot, set it up in your demo account and let it trade for you for a few weeks to see its performance. If it's working well and as expected, test it with a mini or micro account, a live account with a small investment that you can afford to risk. Some robots will trade profitably in a demo account but not as well in a live one. Make sure before you invest any significant capital that you can trust the system and be confident with it.
It has never been easier or a better time to enter the lucrative foreign currency market as it is now with the many resources and tools available to help you succeed. Take advantage of them!
Many brokerage firms have extensive libraries of articles and training courses as well as direct broker assistance. Among the most valuable resource tools is the demo account offered by financial institutions, banks and brokerage firms.
The demo account works with real-time market conditions just like the live market, but without any of the risks. Dealing with fake, or dummy, money you work within simulated environments to get first-hand experience in trading the foreign currency markets. There are many levels of demo accounts, some very basic that even allow you to interface with the broker as they help guide you.
Working with a demo account before you invest any of your real hard-earned money gives you insight into the market as well as show you how it feels to trade in a live environment. They are real-time with all of the risks and technical information provided so you can decide fully informed if trading in foreign currency is the right investment for you. You will learn to analyze the markets with the tools provided, place your dummy trades and exit them just as in a live market situation, learning the discipline required for successful trading.
Forex demo accounts will also help you to determine which brokerage is right for you if you do decided to enter the foreign currency market or if you're experienced and looking for a new brokerage. The trading software, or platform offered by brokers is the way you analyze and execute your trades and should be easy for you to understand and work with as well as provide all of the information you need for your trading system. The demo account will allow you to work with it to make that determination.
Demo accounts are also valuable for risk-free testing of algorithmic automated trading systems, or forex robots, that are designed by professional traders to monitor the markets 24 hours a day and automatically execute trades based on specific programmed signals. There are many of them on the market, some advertising huge profits with no effort. Don't believe the hype, but don't reject the tool as these robots can be a tremendous asset to your trading system whether you're a beginner or an experienced trader.
For this, you will want to open a demo account that allows forex robots with a broker you're comfortable with. Read reviews of the different automated systems, making sure the one you consider offers a money-back guarantee. Most offer at least 8 weeks to try it. That kind of guarantee tells you that the company has faith in its system to work as advertised.
After you buy the robot, set it up in your demo account and let it trade for you for a few weeks to see its performance. If it's working well and as expected, test it with a mini or micro account, a live account with a small investment that you can afford to risk. Some robots will trade profitably in a demo account but not as well in a live one. Make sure before you invest any significant capital that you can trust the system and be confident with it.
It has never been easier or a better time to enter the lucrative foreign currency market as it is now with the many resources and tools available to help you succeed. Take advantage of them!
Forex Trading: Scalping or Going for the Long Run
Foreign currency trading strategies vary depending on the style of the trader and investment capital available. If you're wanting to begin trading, it's important to understand the different general strategies you can use to plan your own specific strategy suitable to your style and financial position. Here we'll look at Short-Term, also called “scalping” or “day trading”, Medium-Term and Long-Term trading.
Forex scalping strategies involve getting in and out of the market several times a day, executing multiple trades to make smaller, quick profits off of what long-term traders would see as fluctuations. It's those fluctuations in currency prices that the day trader relies on. It generally relates to entering and exiting trades with all positions being closed off at the end of the day.
Day trading is a popular and profitable form of trading used by many professional investors for a number of reasons. It is lower risk in comparison to the very high returns if executed properly in a highly leveraged account. Besides the “instant gratification” that is appealing, exposure to risks is lessened due to the ability to quickly get out of bad trades and realize small profits in good trades. Small pips in a large number of trades can accumulate to substantial profits by the end of the day.
The disadvantage of scalping in the foreign currency market is that it can only be used with high leverage to see any significant profits. While the speed of trading currency fluctuations can result in quick gains, they can also result in great losses. The key is managing your money effectively; much more difficult when operating in shorter time frames. The trader must be mentally and physically quick to be able to manage the seconds-long trades. Utilizing a reliable automated scalping system, with the forex trading robot automatically executing trades, is particularly valuable in day trading.
The Medium-Term forex trader is typically looking to hold positions for a day or more, often taking advantage of technical indicators pointing to profitable trades and trading with the odds. The advantage of Medium-Term trading for retail traders is that it requires the lowest capital of all three types of trading because leverage is only needed to boost profits.
Medium-Term trading usually depends on technical analysis, charts and indicators, to determine the likely direction of currency prices. Using candlestick charts to examine such indicators as moving averages, relative strength index, stochastics, and moving average convergence divergence looking for trends, the trader can analyze market momentum and strength.
A degree in economics is not required to make sense of these indicators, rather just a working knowledge of a handful of them and an understanding of how to trade on them. Your well-defined trading system will incorporate the combination of indicators to signal specific entry and exit points.
Long-Term traders hold positions for months or years, looking more at long-term fundamental factors. To cover volatile movements, large capital investment is required against open positions. It can result in more long-term profits because it depends on reliable fundamental factors.
Long-Term fundamental traders focus on economic reports and news releases, including politics and social changes, affecting the value of a currency to determine market movement over a more extending time period. Fundamental traders rely less on charts and indicators that reflect what the market has done, rather than what it will do further into the future. For this type of trading, the future direction of the market hinges on the news and economic reports being released today.
Now that you have this overview of the different types of trading, you should be better able to determine which is the best fit for you to develop your reliable own trading system.
Forex scalping strategies involve getting in and out of the market several times a day, executing multiple trades to make smaller, quick profits off of what long-term traders would see as fluctuations. It's those fluctuations in currency prices that the day trader relies on. It generally relates to entering and exiting trades with all positions being closed off at the end of the day.
Day trading is a popular and profitable form of trading used by many professional investors for a number of reasons. It is lower risk in comparison to the very high returns if executed properly in a highly leveraged account. Besides the “instant gratification” that is appealing, exposure to risks is lessened due to the ability to quickly get out of bad trades and realize small profits in good trades. Small pips in a large number of trades can accumulate to substantial profits by the end of the day.
The disadvantage of scalping in the foreign currency market is that it can only be used with high leverage to see any significant profits. While the speed of trading currency fluctuations can result in quick gains, they can also result in great losses. The key is managing your money effectively; much more difficult when operating in shorter time frames. The trader must be mentally and physically quick to be able to manage the seconds-long trades. Utilizing a reliable automated scalping system, with the forex trading robot automatically executing trades, is particularly valuable in day trading.
The Medium-Term forex trader is typically looking to hold positions for a day or more, often taking advantage of technical indicators pointing to profitable trades and trading with the odds. The advantage of Medium-Term trading for retail traders is that it requires the lowest capital of all three types of trading because leverage is only needed to boost profits.
Medium-Term trading usually depends on technical analysis, charts and indicators, to determine the likely direction of currency prices. Using candlestick charts to examine such indicators as moving averages, relative strength index, stochastics, and moving average convergence divergence looking for trends, the trader can analyze market momentum and strength.
A degree in economics is not required to make sense of these indicators, rather just a working knowledge of a handful of them and an understanding of how to trade on them. Your well-defined trading system will incorporate the combination of indicators to signal specific entry and exit points.
Long-Term traders hold positions for months or years, looking more at long-term fundamental factors. To cover volatile movements, large capital investment is required against open positions. It can result in more long-term profits because it depends on reliable fundamental factors.
Long-Term fundamental traders focus on economic reports and news releases, including politics and social changes, affecting the value of a currency to determine market movement over a more extending time period. Fundamental traders rely less on charts and indicators that reflect what the market has done, rather than what it will do further into the future. For this type of trading, the future direction of the market hinges on the news and economic reports being released today.
Now that you have this overview of the different types of trading, you should be better able to determine which is the best fit for you to develop your reliable own trading system.
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