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Thursday, September 25, 2008

Is There a Safe Way to Trade Forex?

By Guy Williams

The Forex market is the largest on the planet, and it is estimated 3 trillion dollars are exchanged everyday there. A lot of money to be made, or lost, and that is the reason it so immensely popular with investors.

What is the best way for an average investor to trade this market? That question is asked countless times daily all over the world. The real answer is there is no absolute best method that would fit the needs of every investor. Each investor is unique and not one single method or system will meet every need.

Some investors prefer the managed account approach and let their broker or financial advisor make all trading decisions. This works for many people, but more independent traders want all the decision making left to them. They prefer to do their own research and decide for themselves when and what to trade.

Some traders swear by Japanese candlestick charts, and make all trading decisions based on the chart patterns developed using this technique. Japanese candlestick trading has been around for hundreds of years and used in every market known to man. Some traders have never taken to the candlestick chart system, and prefer to use other trading tools.

Point and figure charting was created by Wall Street traders in the 1930's, and is still used in many markets to this day. This method requires the chartist to select the size of the "box" to be used, and this is where many traders can never agree as to the proper box size to use. Using box sizes too small,the market will make many changes of direction, leaving traders frustrated with so many reversals. On the other hand, box sizes too large can leave traders out of the market until a large move is well underway.

In today's high tech world, many believe automated trading systems are the only way to trade. Systems created by software engineers are taking the trading world by storm, and some traders are realizing sizable profits using them. Does a Forex auto pilot system cracked exist? Has someone really "cracked" the code and created a reliable automated Forex system?

Automated computer generated trading systems have advanced to the point where many people believe in the future all successful traders will use them. Most don't believe that there is any system or method that is foolproof, and there most likely never will be. Today's technology has been responsible for creating some remarkably accurate tools, and smart traders all over the world are beginning to reap the rewards from them.


Has the Forex auto pilot system been cracked? http://www.howtotradeforexsuccessfully.blogspot.com

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