Forex Trading Platform - How to Choose The Best Platform & Broker

I bet you can’t tell me… How to choose a good forex trading platform?

Choosing a forex trading platform can be very hard if you dont know what to look for.

In this article you will learn the most important things that a good forex trading platform should have.

Hopefully after reading this article you will have everything you need to choose a good forex broker & platform.

Tip #1 Real Time Quotes

This is extremely important. Forex trading is done 24 hours a day and you want to have live quotes. With live quotes you can be in full control of your funds and check them whenever you want.

Make sure to check if the broker platform offer live quotes 24 hours a day. This is really important i cannot stress this enough.

Make sure to check so the broker don't slow the execution of the orders. This way you will enter a market at a different time than you wanted.

So make sure that the broker don't slow the execution orders.

Tip #2 Easy to Use

The software you use should be easy to understand. You should be able to start trading immediately. Skip systems that take weeks to learn. They should be easy to use, that's it.

You should also try to pick a software that doesn’t need any download, that you can access from every computer.

You could choose to download a software but make sure that it got live quotes.

Tip #3 Support

This is very important. Your broker shall provide 24 hours support no question about it. The forex market never rests and if you need assistance you should get it fast.

A good tip is to contact their support about any questions you have before you buy their services.

Tip #4 Trading Rates

Be sure to check if the software allows a freeze option when you decide to buy or sell. This way you get the rate you freeze and not the actual rate that occurs when the buy or sell is processed seconds later.

Tip #5 Spreads

The spread is different from broker to broker. Make sure to check which spread the broker have. If they have larger spreads then the market have to move in your favor more than it would have if the spread was smaller.

It can be harder to make a profit if the spread is larger so try picking a software that have a small spread.

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If you follow these tips when choosing a trading platform you will get a great platform. Make sure you can trade at live quotes because this is most important.

Now go ahead and choose a trading platform that suites you.

Keep in mind that the expensive forex trading platforms doesn’t always need to be best.

An Ideal Forex Trading Education Module in Preparing Yourself for Profit and Risks in Forex Market

The Forex market is the largest and the most liquid market in the world that operates 24 hours a day and generates exchanges that amounts to 3 trillion dollars each day. Due to this kind of features, everyone would like a piece of the action going on inside the Forex market. However, before you join the Forex market, you should have the fundamental and proper Forex trading education, knowledge and skills on trading currencies. The ideal forex trading education module should consist of the following:-

Background

This is the first parts of the Forex trading education where you will learn the whereabouts of Forex market. Understand the nature of the market, which is a volatile market-conditions and keep changing frequently. Keep these two characteristics in your mind and along the way learn how to examine such market changes and make appropriate decisions.

Risk Control and Management

The second part of your forex trading education is how to manage and control the risk. This will be the crucial part of your activities in Forex market since this is the point of whether you are gaining profit or end up with loses. At the thrill of making huge money and at the same time there is opportunity in front you, don't be overconfident and over investing.

New starters especially, who instantly gain a lot of profits may think that they know too much. But it helps to know that it is not the same all throughout. Good profits oftentimes encourage more people to trading so much, without thinking of the risks. Discipline is one trait that you should practice and learn.

Through Forex trading education module you will study how and when to cut off your potential loses before getting worse and learns when to stop although you gaining profit from the market.

Psychology

This part will complement the risk control and management lesson. Why? During the trading, you may not every time gaining profit and worse case, you may face losses. This is a fact since you can't expect to gain at all times. You should know how to properly deal with all your losses and in Forex trading market, you must always mentally fit to make decisions.

Demo Account

Once you have learned and understand the essence and inside out of Forex trading, you will proceed to manage a demo Forex trading account. You will practice the Forex transactions as if a real trading activities. Although there is no reality risk involve, please do treat this demo account as realistic as the real Forex trading market. A good Forex trading education module will simulate a near cases to real risk of Forex market. In managing a demo account, please implement whatever you have learn before, especially in making decisions and controlling the risk.

Through this practice, the end result will reflect whether you are ready to take the ownership of managing the real thing.

Forex market is considered the largest market in the world. It is operational twenty four hours a day, five days a week. Its processes are been carried out in real times without boundaries. Therefore, prepare yourself with forex trading education so you have a better understanding before plunging into the business. Some people may suggest that the best way of learning Forex market is during the trading period, but it is always your own call to choose the best way that will be most appropriate to your needs.

Learn Forex Trading - Dealing With A Market That Is Always On The Move

The foreign exchange market never stands still and, while it may move slowly at times, it is always on the move. In many ways this is one of the great benefits of Forex trading as it is this movement which provides the opportunity to profit from buying and selling global currencies, but it can also make it difficult to decide when to get into a trade, get out of a trade or simply stay out of the market altogether.

Perhaps the biggest problem with a market which is constantly presenting the trader with the opportunity to make a profit is that it plays on our natural sense of greed and this is a very real problem if you are not aware of the danger you face.

We all love to make a profit, but how much profit is acceptable? If you're in a trade and looking at a profit of $800 should you close out your position and take that profit or hang on in there for $1,000? You trade to make money and the more money the better so, when the market is moving in your favor it's only natural to want to ride the wave all the way to the beach. The problem however lies in knowing when you've hit the beach and not waiting until the undertow starts to drag you back out to sea again. Once you get caught up in the undertow it can prove to be very strong and drag you out again very quickly.

Many people enter Forex trading with a picture in their mind of just what they're going to do with all the money they make and that's no bad thing. It's extremely important to have a goal, and a plan to reach that goal, and to plant a visual picture in your mind as something concrete to aim for. However, the other side of this coin is that you may well be tempted to try to reach that goal faster than you had originally planned or to create a bigger and better goal as you go along, allowing your natural tendency towards greed creep in and begin to take control of your trading.

Another problem here is a simple failure to recognize that money does not drive the market.

Think about it for a moment. Whether you have $5,000 or $500,000 in your trading account is not going to make any difference at all to the way in which the market moves. Similarly, whether you have a $700 profit or a $700 loss in an open trading position isn't going to make the slightest difference as far as the market rising or falling is concerned.

The fact that you've done well in a trade and have made a profit of $700 doesn't mean that this is going to turn into an $800 or $900 profit if you wait a while longer. However, it's perfectly natural to find yourself caught up in your 'winning streak' and to convince yourself that there is more to come.

It's also perfectly normal to find that, having lost $700 in an open trade, your natural fear of losing is going to convince you that things will turn around if you just keep your nerve and hold on a little bit longer.

Setting yourself a goal and making a plan to reach that goal is essential, but your trading decisions need to be based not on your goal but on the market. Money should have nothing to do with whether you enter or exit a trade, or stay out of the market, and such decisions should be based solely on what your analysis and the numbers tell you.

FOREX Brokers – What I Learned as a Broker Trading 5,000 Clients

I spent 10 years as a forex broker and traded thousands of clients, here I will give you a broker’s view of trading clients.

I will reveal who won, who lost, how we made money and how we treated them.

I joined as a rather green salesman and had no idea about the reality of forex and futures trading.

I was excited about joining an industry where millions were made and millions were lost by clients – It was very exciting!

The company

I was rather shocked at the reality which was:

Clients didn’t appear to win very often and the company based its balance sheet on commission to equity.

The view was that about 95% of clients would lose and they would do it all on their own, with no help from us.

The clients we liked (from a financial perspective) were the ones who made commission for the company and top of the list were:

Day traders:

They lasted for short periods, never won and made loads of money for the company.

If they believed it worked, let them get on with it and we would take the commission.

Shoot from the hip traders

The action men.

They loved the buzz, in and out all the time, trading the news and advice from gurus and with no discipline.

Again, they wiped themselves out and made us plenty of money.

The company did not dislike its clients.

We treated all clients well and did what a good broker should:

Help them with queries and made sure they got fast accurate executions.

We just let them do as they wanted and in most cases they lost – that’s simply the reality of trading.

The clients

We had clients from all walks of life, from retired people, to highly educated mathematicians and the few that did win surprised me.

The ones I personally hated were the ones I will refer to as “educated fools”

Cocky as anything and believed they had a divine right to win, because they were clever.

They would ignore my warnings, that they would not win with systems that were too complicated and tell me to mind my own business.

If I am honest, when they learned the reality of a wipe out, I felt a little inclination to say “told you so”, but never did.

Perhaps my favorite client was a retired lady, 81 years of age, who lived on a sheep farm in Australia.

A lovely lady and she taught me a few things, that I remember to this day.

She devised a system and showed it to me.

It was a simple buy and sell strategy and relied on holding big trends for months on end and you could learn it in a few hours.

Personally I thought it was to simple to work, but she built a $5,000 account to $39,000 in three months and had passed $100,000 in under a year.

She drew her charts by hand ( this was the late eighties) and didn’t have a TV and never read the papers.

Each day she would check her prices draw her charts and make her trades if she needed to.

A polite, humble trader, who was loved in the office by all.

We all had respect for the way she was our most profitable trader, even above some quite well known money managers.

We had many other clients.

Most lost and some won ( very few), but the ones who did win were humble, had simple systems, traded only when their systems told them to, had iron discipline and believed they were right.

This is just my experience.

I did trade a lot of people.

They from all walks of life and I learned very few won, but the ones who did, kept it simple, the ones who didn’t, had big ego’s, or liked excitement and traded with their emotions lost.

FOREX Trading - 10 Mistakes Novice Traders Make

Enclosed are 10 mistakes novice traders make and they help over 90% of novice traders lose all their money. Make any of them in forex trading and odds are you will lose to.

Here are 10 mistakes you must avoid to win in online forex trading:

1. Day Trade

Simply the best way to lose in Forex trading.

The logic doesn’t work.

This should be obvious to a child, let alone grown adults!

Yet, more novice traders than ever try this dumb way of trading.

We have written numerous articles on this, if you still want to day trade read them.

2. Consult a guru

There are some people who sell advice that is good, but 90% of it is not worth the money.

If you do buy advice make sure you understand the logic and can follow it with discipline.

There are very few gurus that can help you and the best way is to do it on your own.

Success comes from within.

3. Get a broker assisted account

If brokers were good at trading they wouldn’t be brokers, they would be making money for themselves.

Sure, they can give you convincing stories, but stories don’t make money.

Getting market direction right does and the odds of your broker doing this are slim.

4. I can trade a Demo account so now I can make money

So you can make money paper trading with no money and place orders?

Big deal.

Fact is, paper trading is easy there is no pressure, as there is no money on the line.

Trading is an emotional ride and when money comes into the equation paper trader’s crumble as easily as traders who have not used a demo account.

5. Trade to frequently

Many traders think if their not in the market they will miss a move.

They trade for the sake of it and don’t have the odds on their side.

Only trade high odds trades, they cannot be hurried.

Be patient.

6. Mix fundamentals and technical inputs

A great way to lose.

You are either one or the other you cannot combine the two.

7. Chase your tail

Many traders constantly chop and change systems.

They have a perfectly good system they could have stayed with but get bored and swap and then they do the same with the next system.

Get a system and stick with it.

8. Over leverage

They over leverage on trades and get wiped out.

To win at online forex trading you need to play great defense, as well as great offense.

Protect what you have above all else.

All trades are equal, don’t fall in love with a trade.

In fact, the ones that look best and are the most comfortable to trade, often turn out to be losers.

9. Avoiding risk and creating it

Traders are so obsessed with avoiding risk they create it, by having stops to close and trailing them to quickly.

By trying to restrict risk they create it, by guaranteeing they will be stopped out and never riding a big profitable trade.

Forex trading is all about taking risk – calculated risks, when the odds are in your favor and making sure you don’t get stopped out by normal market volatility.

Learn about volatility and standard deviation, if you want to know why this is so important.

10. Try and have to many inputs

Many traders look for the perfect system and the more complicated it is the more likely it is to succeed.

After all 10 indicators are better than 2.

Not so, in fact the more inputs you have the less likely the system is to succeed.

There are more elements of the system to break it.

In forex trading simple systems beat more complicated ones and most of the world’s top traders only use very few inputs.

Don’t try and be clever and complicated, or you will lose.

Final words

Above you have 10 common errors forex traders make.

If you make any of them your chances of losing will be increased dramatically.

Online FOREX Trading – Is Simple but the Majority of Traders Lose - Why?

Most traders lose however online forex trading is simple to learn. Traders lose because they follow conventional wisdom (a lot of which is wrong) never acquire the right knowledge and then cannot apply it.

Here we will give you pointers on getting the right knowledge and mindset to win.

Let’s look at why traders lose

1. They Won’t Learn The Basics

Many traders imply want to pay $100 or so for an e-book from a guru and hope that the guru will make them money.

Their too lazy to learn the basics themselves and think they can buy success from someone else.

What happens?

You guessed it they lose, not just because in most cases the material doesn’t work (if it did why is the person selling it?) but there is a deeper reason.

2. Self knowledge is the key to success

Even if you are lucky enough to find a system that works, its difficult to follow something you don’t have ultimate confidence in.

If you follow someone else’s method, chances are you won’t achieve total, confidence in the method.

If this occurs then you will not be able to follow the method with discipline and you will end up having no method at all.

For a method to work you must have the ultimate confidence to apply it with discipline through inevitable losing periods.

3. Work Smart Not Hard

You get other traders who think the more work they put in the more they get out.

Not so, in online forex trading.

The amount of effort you put in has no correlation to how much money you make.

Many people get involved in information overload, but devising a method to trade is very simple (it should only take a few weeks) then you just need to execute your signals - that’s less than an hour a day.

Don’t work hard – Work smart.

4. Leave Your Ego Behind

The worst traders are the ones with big egos.

They think they can beat the market with complicated strategies and their superior knowledge, however in online forex trading this won’t help you.

I have seen all the complicated systems:

Ones using artificial, intelligence, neural networks and all sorts of systems, with equations so complicated you need a degree in mathematics to understand them.

They don’t work though!

Trading is simple and the more complicated the method the more likely it is to fail.

To Win In Online FOREX Trading

Learn the basics yourself, don’t buy stupid e-books on the net with ridiculous claims, do it on your own.

Build a method (that’s simple with just a few indicators) that you have ultimate confidence in and can trade it with discipline.

This should take under a month to learn the method.

Then, you can trade in under an hour a day.

That Is all you need to do and you could make some big long term profits in online forex trading.

Remember:

Work smart not hard and do it on your own!

Forex Trading

Forex trading, or foreign exchange current exchange trading, is a global phenomenon. This is the single largest market in the world. There are many different market sectors that are involved with Forex trading. These include, but are not limited to;

" Banks

" Corporations

" Governments

" Individuals


What is Forex trading you ask? At its simplest, Forex trading is currency being traded for another currency. However, Forex trading is anything but simple. The market has massive trade volume and is very fluid. Not to mention the hundreds of different currencies being traded and their ever changing value.


Forex trading is a very focused area of trading, but the amount of time and

energy most people and companies spend getting trained and educated on Forex trading and its inner workings and pitfalls, is at least as much time as it takes to learn the stock market.


Because of the complexity, Forex Trading is not your typical overnight success operation. There are many large corporations, such as GCI Financial which is a market leader in this space.


Forex trading is unique in that everyone does not have access to all of the same information and prices at the same time, as they do with the stock market. I won't get into specifics here, but basically there is a tiered level whereby different levels of access are given to the Forex traders and Forex firms.


The other main thing to remember about Forex trading is, until such time that the world adopts a single currency, Forex Trading will be around for a very long time.

Small Investor Dilemma - Forex Or Stocks?

If you had a limited amount of capital to invest, would you invest it in the foreign exchange (FOREX) or the stock market? This is a question that is, undoubtedly, pondered daily by small potential investors worldwide. In the ideal world, there should be a well-balanced portfolio including stocks, FOREX and other types of asset holdings. However, due to limited capital and the real need to start somewhere, the investor may not be able to immediately diversify. Incidentally, the investor could seek out some sort of diversified mutual fund, leaving all the ultimate control and decision-making to a fund manager. Nevertheless, for the small investor who wants to maintain full control and decision-making capacity over trading decisions, both the FOREX and the stock market offer such opportunity.

How does one decide which avenue to pursue, FOREX or stocks? Naturally, some sort of meaningful analysis needs to precede any decision on the matter. One approach would be to weigh the advantages and disadvantages of each. Let’s first look at the advantages and disadvantages of the stock market.

Advantages:
1. It is a regulated market; traders have more protection, generally speaking;
2. Some brokers have in-house researchers to help with trade recommendations;
3. A company would have to be virtually defunct for the stock to be totally worthless;
4. The retail market is well-established and has been around a long time; and,
5. The stock market has a greater abundance of books written about it; and,
6. Stocks may (or may not) pay out dividends, according to the vote of the Board;
Disadvantages:
1. Does not offer great leverage, comparatively speaking;
2. Not as volatile as FOREX, and, thus, lacks better potential for short-term profits;
3. There are thousands of stocks to be researched before deciding on the right stock;
4. Generally requires more capital due to the relatively high per share cost; and,
5. Margin calls may occur more frequently due to lower leverage; and,
6. Limited trading hours, compared to the FOREX.

By comparison, the advantages and disadvantages of FOREX trading are as follows:

Advantages:
1. High leverage is possible, in some cases up to an incredible 400:1;
2. There is a low barrier to entry, with some brokers allowing margin as low as $1.00;
3. Extreme volatility in FOREX makes for great short-term profits;
4. Only few dozen currency pairs are available for trading, making choosing easier;
5. Largest market size of any financial market, moving almost $2.0 trillion daily;
6. It offers 24/7 trading, closing only from 4:00 p.m. Friday to 4:00 p.m. Sunday; and,
7. Pays above-bank interest on margin funds, even when no trading is being done.
Disadvantages:
1 High leverage can result in substantial losses, if leverage is not used properly;
2 Because it is an unregulated market, some brokers may take advantage of traders;
3 The retail side is relatively new, so there are not as many well-written resource materials.
4. There is substantial risk involved and one can literally lose all of their investment in one trade.

After viewing the advantages and disadvantages highlighted above, this writer is of the opinion that the FOREX offers the best opportunities for profitability both long and short term. Of course, the underlying assumption here is that a profitable trader, prior to getting involved, will obtain the necessary education and learn strategies for properly managing risks while achieving profitability. To do otherwise would be courting financial disaster.

Starting with a relatively small amount of risk capital, such as $300, a trader in the FOREX, using proper money management techniques, can theoretically build a substantial nest egg by compounding the profits consistently over a period of time. Albert Einstein once commented that compounding is the greatest force in the universe. Whether or not that is true, it is readily apparent through mathematical computation that compounding can lead to the amassing of large amounts over a rather short period of time. Test this conclusion for yourself on paper by starting with $200 and compounding returns of 10% per month for 24 months. The results may astound you.

In conclusion, it would take substantially longer to accomplish the same financial results in the stock market as it would in the FOREX under the same economic circumstances and with the same amount of limited capital. Such likelihood would seem to favor investing in the FOREX, given a choice. As would any prudent investor, diversify your portfolio as soon as you are in a position to do so.

Day Trading Systems – Consider This Question Before You Buy One!

You will see day trading systems all over the net promising you huge gains but consider this key question before you buy one:

If the system makes such great gains, why does the vendor sell it for a few hundred dollars?

Of course, the answer is:

Because it doesn’t make money and the vendor is not stupid enough to trade it, when he can sell it to novice traders who are taken in by hyped up sales copy.

Day trading systems DONT work longer term and its one of the stupidest ways to trade online forex markets.

Don’t believe me?

Then ask any vendor selling a day trading system for a real time track record and see if you get one (let me know if you do)

What you will get is a hypothetical track record of great gains, but what use is this?

Hypothetical means it was done by the vendor knowing the closing prices, not risking real money!

Now if we al know tomorrows closing price today we would all be millionaires, but that’s not the reality of trading.

So why doesn’t day trading work?

1. Volatility in any daily or hourly period is random.

The period is to short and support and resistance levels are meaningless, so you cant trade of them – You may as well flip a coin.

So what happens?

Day traders constantly get stopped out and accumulate small losses as volatility can take prices anywhere in a daily period.

Do day traders ever win?

Occasionally they get lucky and win.

When they do they get obsessed with scalping a few points profit, or getting out at the end of the day, so they can never run profits to cover their huge amount of losses.

What happens – they get wiped out longer term.

There is no better way to lose your money than day trading! Most day trading system vendors are:

Failed brokers, writers or salesmen and make their money from selling systems.

Of course they don’t trade themselves, as they don’t trust their systems to make money and would rather have the guaranteed income from selling the system it’s a lot less risky than trading it!

Day trading is a mugs game don’t fall for the hype look at the facts.

Online Forex Trading – To Make Huge Gains You Must Master 1 Key Problem

Online forex trading looks easy yet few succeed and the bulk of novice traders over 90% wipe out their equity quickly.

Whilst there are many reasons novice traders lose this is the one that wipes out most.

If you don’t overcome this problem you will get wiped out too.

The major problem is:

Dealing with volatility

Many novice traders are more often than not right about market direction, but get stopped out constantly and lose as they cant deal with volatility.

You must find a way to deal with volatility to win at online forex trading.

Make sure that you take calculated risks that mean you can keep losses small when they occur and stay in the trends.

This is much more difficult than most traders think, so lets give some advice on how to deal with it.

1. Don’t day trade

One of the biggest myths of online forex trading is that day trading works – It doesn’t!

Why?

Because daily volatility is totally random and you are trading off support and resistance levels that mean nothing.

There are many day trading systems sold but they don’t make money – ask for the real time track record of profits and you are met with a deafening silence.

Day trading is a mugs game and a guaranteed way to lose, don’t fall for the hype or you will lose your money.

2. Use breakouts

Perhaps the best way to trade is using breakouts of significant resistance or support.

When the breakout occurs go with it – its that simple and place your stop below the breakout point.

Most traders cannot do this.

Why?

Because they want to “buy low and sell high” they wait for the pullback to get in at a better price and of course it never comes.

The fact is that most major moves start from new market highs NOT market lows.

While the stop might have to be a bit wider on a breakout the odds of success are very high.

3. Trailing stops

Most traders are obsessed with locking in some profit and move their stop up as quickly as possible, but this is a guaranteed way to get stopped out.

Then they sit and watch the trade they were in make $10,000 or more and their not in.

Fact is if you want to stay with the big trends don’t trail stops up to quickly

Forex trading involves taking a risk. If you become obsessed with having stops to close or trailing them you will create risk and guarantee you will get stopped out.

4. Trade with momentum

Another error traders make is not trading with momentum indicators they simply enter above support or below resistance and “hope” it holds.

They think that as its close to resistance or support their stop can be close – Yes it can but odds of being stopped out are high.

This goes totally against trading with the trend.

To trade properly you need to get some evidence of a reversal in price and then trade.

Sure, your stop has to be a bit wider but the odds are more in your favour.

Final words

Novice traders try so hard to avoid risk they create it for themselves.

To trade online forex you need to take calculated risks on trades that have high odds of going the way you predict.

This means placing your stop further away and not trailing it to quick.

On paper you have wider stops and more risk – In reality you are trading the odds and have far more chance of making big profits.

Hidden Secrets Of Forex

1. There is always a risk in Forex. That's the truth. There's a risk in anything.

Gambles go to casinos & Forex traders go towards online trading. Anybody that tells you, it’s a 100% Guarantee, is lying! Before you begin trading, make sure you put in some time and effort into studying the market + careful analysis. Any gamble is fun, except when you lose.

2. DON’T & I repeat DON’T ever put real money into a Forex account before trading on a demo account.

The reason over 85% of newbie’s fail in the Forex market is due to quickly investing in a get rich quick Forex scheme. Make sure you get a demo account, play around with it, and perfect your skills upon it. Remember, it doesn’t cost you anything. So why not give it a try first? I guarantee you’ll be better off if you go with a demo account first

3. Never ever risk over 3% of the total trading account size. Ever!

Remember the guy that said never say never… he was wrong. I can confidently say, Never ever risk over 3% of the total trading account size. This is a key in separating the Successful traders from the unsuccessful ones. I know its fun to put in more money, try to make more; become rich… everyone loves that stuff. It’s not worth it. You may win a few trades here and there. But overall, you WILL lose.

Forex Trading And Its Tactics

Trading the Online Forex market has many advantages over other fiscal markets, among the most significant are: better liquidity, 24hrs online market, superior execution, and many others. Traders and investor see the Forex market as a fresh speculation or expanding chances because of above mentioned benefits. Does this mean that it is quite simple to earn money trading the Forex Market? Not at all…!

The précising the forex market incoming/quitting time all based on technological an analysis that is specific for very short-term life of such forex analyses. It is resolute by days, hours, and some times even by minutes, but not by weeks or months. In all the above cases, the same technological tools are used. Having successful forex trading system carries the following tactics.

Tactics for Price Breaks

There are three different trader’s actions at price breaks:

To take a place in advance, predicting the break;
To open a place when the break is actually in progress;
To wait for the predictable rollback after break

When you work with several lots, you as a trader could open one position at every of the three stages. One could open a small place before the predicted break, and then purchase some more straight away after the break, and then lastly open extra place at an unimportant price fall during correction, which follows the break. If one trades with small place, two questions would have force on one's decisions first of all.

Gaps - Price gaps that are created on bar charts could also be used to select a proper flash to open or close forex trading positions. For example, gaps created during price development frequently become support levels. That is why, at a forex up-trend, it is sensible to open extended positions when prices actually fall to the upper border of the gap or even sometimes a bit below it. A stop order could even be placed below the gap. At a down-trend, an open place needs to be opened when prices arrive at the lower border of the gap or even at bit above it. The defensive stop order is placed above the gap, in this above case.

Averaging - Averaging is a forex trading strategy used when one has made an error or simply made a trade (the first thing that comes to one's mind) and the price has moved beside, and one makes a fresh forex operation of the same kind but at a more money-making price. The most significant drawback of averaging is that one cannot know to what price the market would go beside the trader.

The averaging looks for investing a double amount of money when compared to that invested before. Trading productively is no simple task; it is a procedure and could take years to attain the preferred results. There are a few things though every forex trader needs to take in thought that could go faster the process: having a trading system, using money management, education, being conscious of psychological things, discipline to follow your forex trading system and your forex trading plan, and others.

Automatic Forex Trading Systems - 7 Ways To Benefit From Them

I don't know about you, but I'll bet that you'll want to learn about ways to automate your forex trading, so that you can benefit from the returns that forex gives you, without the need to trade yourself!

Is this where the future of forex is heading? Both for the forex trader who doesn't mind trading, to enable him to trade a second or third system, as well as for the trader who's actually not that interested in trading on a daily basis?

Well, it seems to me that automatic forex trading systems are on the rise, and more and more systems are becoming available over time.

By the time you finish this article, you'll have a very good idea of the benefits that automatic forex can give you, and how to look further into this new trend.

Automatic forex trading may be classed into two types:

The first type, is automatic forex trading through managed forex.

That is, a forex trading company that uses automatic trading through a trading robot to ensure that their system is traded exactly as intended. In fact many systems designed for robots can only be practically traded by robots rather than a human team, as you'll see.

The second type of automatic forex is the use of a forex trading program with an ability to automatically place trades, such as with WealthLab.

To do this, you'll need someone with programming skills to program the system into WealthLab or other software, and a connection to a forex platform that accepts automatic order placements by the trading program.

With either method (though the first method is the one that doesn't require programming skills) these are the benefits to automatic forex system trading:

1. You don't have to trade yourself, which frees up your time. This is one of the main benefits. For a trader who actually likes trading, this means that he can continue to trade one system, and at the same time trade a second or third through automatic forex. For those who are not really interested in actually trading on a daily basis, they're able to profit from forex, and concentrate their efforts on their other businesses.

2. The trades are able to be taken at anytime of the day or night. The performance of a system may rely on the fact that you actually take the trades generated by the system. Depending on the time zone and the time available by the trader, it may be impossible to take the trades that we're supposed to trade and hence compromise the profitability of the system significantly. Automatic trading by its nature, is able to overcome this problem.

3. You're able to trade multiple forex systems and strategies. You can trade multiple systems with the same automatic forex provider, or do so by choosing more than one provider. And because their systems are likely to rely on different indicators, trade different currency pairs, and also trade different time frames, you're diversifying your risk. The reasons why you want to diversify risk is that you want to smoothen out your equity curve and reduce drawdown.

4. There are no longer any issues with trading psychology. Trader discretion, if not based on proper practice and alertness, can causes a system's performance to decrease significantly, and this is not an issue with automatic forex trading. Of course your skill now comes in choosing a good automatic system to invest in.

5. You can trade systems that may be impossible for a human to trade. A human can only watch and trade a certain number of currency pairs at a time. With automatic forex, there are systems for example that has a high frequency of trades, traded on tick data. Therefore trading is no longer limited by how easy it is for a person to physically trade it.

6. You also leverage your time because you don't have to spend time learning how to trade a particular system. Learning a particular system takes time and effort, so there's a lag time between deciding on a particular system, to getting to the point where you know the system rules, and then actually paper trading then live trading that particular system. You could have been making profits in forex in the meantime.

7. Finally, you don't need to spend any time, or have any skill in designing or backtesting a trading system, as it already has been done for you. In fact with the different automatic forex providers around, you're taking advantage of many types of forex systems that are available.

Make no mistake about it. Passive trading (and other passive forms of investments) will get more popular, as it frees up your time to enable you to focus on other income generating business, or to do whatever else you need to do with your time.

So it's important to choose a good automatic forex trading system, so that you'll benefit as much as you can from automatic forex system trading!

Forex Trading – Swing Trading In 3 Simple Steps For Big Profits

Swing trading can be highly effective in forex markets enabling you to trade with low risk and high rewards.

Swing trading is however misunderstood by many traders and they lose.

Here we will look at a specific method to swing trade that will give you low risk and high reward.

Swing trading

Takes advantage of corrections in value sideways or strongly trending markets and a typical trade will last 2 – 5 days.

Many traders think they can swing trade on a daily basis but this will just see you lose your equity quickly.

Day trading no matter what system you use is a mugs game, as volatility within a day is totally random and levels have no significance.

If you want proof then ask a day trader for a real time track record of profits and you won’t get one.

Now let’s get started on a simple 3 point method to swing trade.

1. Establish valid support and resistance

You are looking for support or resistance that has been tested and held on several occasions preferably at new chart highs or lows.

2. Watch Momentum

Watch prices move strongly toward the support or resistance and look for confirmation that price momentum is going to turn.

This is the critical point!

You need CONFIRMATION that price momentum is waning, a turn is likely and the odds favour a swing trade.

You want some evidence that price momentum is not strong enough to take out support or resistance.

The best indicator for this is the stochastic indicator – It’s the ultimate indicator to time a swing trade and if you don’t know how it works learn about it from our other articles.

The stochastic is a visual indicator and here we will simply look at the visual set up you need.

When the market is for example trending up to resistance, the stochastic lines will both normally point up. When the market is moving down the opposite set up will apply.

The signal you are looking for is:

For the stochastic lines to cross each other and point either up (bullish divergence) to show support has held or cross and point down (bearish divergence) to show resistance has held - This is your signal to take the trade.

You can see this set up on any free chart service and one of the best is futuresource.com.

3. Target

When you have entered a trade you need a target.

Next pull up the Bollinger band.

If you have had a quick volatile move to test support or resistance, prices will be normally at the top or bottom of the band.

Look for prices to return to the middle band and make this your target.

Don’t hang around and trail stops.

As soon as you hit this band or near it take profit.

Other points

1. Only trade sharp volatile moves into valid and significant support and resistance.

2. Always wait for a stochastic crossover to enter don’t predict.

3. Set a target and get out.

A typical swing trade will last for around 2 – 4 trading days.

If you look for set ups that meet the above criteria you can get some low risk high reward trades that will build significant profits over time.

Tips On How to Start Trading Forex

If you've decided to jump in and check out the Forex, or foreign currency market, there are a number of things you should keep in mind as a beginning trader. Your experience with Forex can be a long and profitable one, and it is essential to be prepared at the onset so you can start leveraging your tools and resources at once, and start building experience.

To get started, once you've located a brokerage you would like to work with, you should open up a demo account, so you can start making practice trades. When you are ready to open a real account, its a good idea to also keep your demo account open. You will be able to test alternative trades with your demo account, which gives you the ability to keep learning and testing strategies. You will also be able to see if you are being too liberal or conservative in your real account, by testing out different trade amounts in your demo account and comparing the outcomes.

To become more successful with Forex, research is the name of the game. If you tend to jump in first and ask questions later, you may want to be a little more deliberate, and start by understanding the basics of how the market works, such as the trading terms and terminology that are used in Forex. There are many tutorials available on the Internet, and much of the basic information can be accessed at no cost.

You should also stay informed with current events, such as political, social and economic factors that can effect a country's currency rates. While you don't want to feel overwhelmed by a barrage of information, Forex trading is fluid, and these external factors play a part in currency fluctuations that impact your trading.

Probably the most important piece of advice is to have a money management plan in place. You should only use money you can afford to lose when you invest in the Forex market, and have only a set amount of money at risk. There are no guarantees in Forex trading, and you don't want to get wiped out. In addition, you should be especially careful when trading on margin, which is borrowed money to trade with. Margin money is not free money, and if you can accumulate bigger losses if you are trading on too much.

Forex trading can be fun and profitable, but it does carry a number of risks and uncertainties. By doing your research, practicing and shadowing with a demo account, and carefully managing your money, you can minimize your risks and increase your success with Forex.