Forex Trading Robot - Why Most Banks Don't Use Forex Robots!

By Sonia Kristina

You can buy forex trading robots for $100 that promise to make you rich and they appear to have better track records than the top fund managers yet, these managers have not lost their jobs and the reason is obvious...

The forex trading robots you see don't work in real life - Why?

Because the track records produced are not real trades as you would imagine but a back test over historical data. This means the vendor has the luxury of knowing what the price history has done and simply fits his track record to it, makes it look to good to be true and it is.

Back Tests are NOT Real Profits!

Find a great track record and then you can go to the bottom and find the words hypothetical, back test and simulation in the risk warning.

In the real world, you don't have the price close at your fingertips in advance and you have to execute your trading signals without this advantage and guess what? That's a lot harder.

We all want easy money and forex trading robots appeal to greedy, naïve or stupid traders and they then get a lesson from the market that if you want to win, you need to treat it with a bit more respect.

Get the Right Education and Win

Forex trading can make you a lot of money, a great second or even life changing income can be obtained - but you don't get it with no effort on your behalf.

You need the right forex education to give you the skills and then you need to apply them with discipline.

The forex trading systems that promise instant riches don't deliver and if you think about it its obvious - banks, hedge funds and brokerage houses, still employ dealers on salaries of in many instances several million a year and they have not yet sacked them for 100 dollar robot.

If you want to win you can get the right education and remember - forex trading is NOT a walk in the park - but you can win if you have the mindset to learn and apply your skills.

NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE For free 2 x trading Pdf's, with 50 of pages of essential info on Currency Trading Strategies visit our website at: http://www.learncurrencytradingonline.com

How Forex Trading Can Get You Through the Subprime Crisis

By Nadav Snir

The subprime mortgage crisis, the biggest financial crisis since the Great Depression, has hit the heart of the economy of America and the world. Banks collapse one after the other, huge companies file for bankruptcy, and it seems like the economy is coming to an end as we know it. All these problems may lead to a recession, which is very bad for you. However, you can protect yourself from an upcoming recession and go through the subprime crisis smoothly. The answer is trading forex.

Trading forex, or currency trading, is not affected by any financial crisis. Of course, exchange rates move according to different news items, but this market will never be closed, unlike traditional businesses. There is always a trade to be made at the currency market, and the opportunities never end. Even during a recession.

Another benefit of the forex market is its ability to trade both ways, so traders can profit whether the exchange rate goes up or down. In regular businesses, when owners buy something and its price drops, they lose, because they must sell it for a low price. However, in the currency market, it does not matter which way the exchange rate moves or which currency is stronger. There is always a profit to be made.

Automation is a big part of trading currencies. With an upcoming recession, everyone wants to expand their income sources, not rely on a completely new source. This is where Forex Tracer comes in. This piece of software is able to make trades on its own, even while the trader is away from his computer. This way anyone can have a regular day job and also make some hundred dollars per day on the side.

Enter the Forex Tracer area of Great-Info-Products.com to get Forex Tracer, read a complete review, and get a better understanding of this software. This way you can start earning faster and easily get through the credit crisis. About the author: Nadav Snir is a stock market trader and forex trader. You can find more information about forex trading and Forex Tracer at his site at http://Great-Info-Products.com/Forex/forex-tracer.html

Foreign Currency Trading - Is There Any Risk on Forex Market?

By Mikel Freije

Foreign currency trading quotes always show up in pairs of two currencies. This means a currency quote is made of two pairs of currencies . Foreign currency trading on margin carries a high level of risk and is not suitable for all individuals. You should carefully consider whether online forex trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Foreign currency trading today has never been easy since the foreign currency exchange transactions itself can already be done at home or to any individual's premises. Due to the availability of highly reliable internet connection and state of the art computers, a trader can already buy and sell currencies at the comfort of his home.

Foreign currency trading always involves buying and selling the base currency. For example you buy one unit of USD/CHF (Swiss Franc), this means you are buying one US dollar and selling the current value of Swiss Franc at the same time. Remember that Foreign Currency trading is not suitable for everyone.

Forex currency trading is conducted around the clock, 5 days a week, and daily currency trades are worth in the region of $1.9 trillion US dollars. This means that the Forex the largest market in the world and puts the major stock markets very firmly into second place. Forex trading online has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets. Forex is one of the most promising and rewarding investments around and learning how to make money with Forex trading is easy. Of course there is risk and because you can trade marginally it is how to make money with Forex trading with the potential of making huge profits.

Stock markets are known for their occasional sell-offs and crashes as traders panic and head for the exits, but when you trade a currency, you can think of it as trading that nation's stock price. Nations, like the United States, Switzerland, Great Britain and so forth are far more stable than even the mightiest corporations. Stock trades, foreign currency exchange and nearly every manner of financial transaction can be handled online with a few mere clicks of a mouse. Currency trading in particular has been growing online due to some Forex companies offering individuals to trade in amounts as little as $25.

For more information on Foreign Currency Trading visit our site: All You Need to Know About Foreign Currency on the Forex Market.

Forex Price Movement - How and Why Prices Really Move and How to Win

By Kelly Price

Forex price movement is misunderstood by most traders. Prices don't move in line with the news and they don't move to some mystical recurring scientific theory either. You can win but understand the key reason prices move or lose...

Here is a simple equation for forex price movement.

Fundamental Supply and Demand inputs + Investor Perception = Price.

Simple enough but most traders fail to see the significance of the above which is:

- The news and facts are un-important its how traders perceive them as a whole that is.

- Humans are emotional so you cannot predict what they will do.

Those traders who think they can trade breaking news are wrong and they don't understand the markets discount news instantly furthermore, we all have the same facts to see but we all draw different conclusions from them.

How Markets Really Move

As humans are emotional, there is no way of predicting forex prices in advance or some mystical scientific theory they move to which the far out investment crowd love with their Fibonacci, Gann and Elliot Wave based systems.

If you want to trade forex, you need to see it as an odds game and play the odds when there in your favour, run your profits and cut your losses. Sure, human nature means you cannot predict exactly what will happen next - but human nature is constant and we are all governed by greed and fear and this means you get hig odds formations which can be traded for profit.

Keep It Simple and Trade the Odds for Success!

All you need to do is - use a simple odds based forex trading strategy and have good money management and you can win.

Today traders make forex price movement much more complicated than it really is, traders try and apply ever more complex formulas and software to try and crack the code behind forex price movement but it's all in vain - there isn't one!

Complex Systems and Maths are NOT the Answer

This is proven by the fact that 50 years ago 95% of traders lost and the same ratio lose today; showing that advances in technology have not helped at all.

This leads to the obvious conclusion that forex trading success is not dependant on being clever, complex or the application of maths and of course this is true - its NOT and the fact we have just given you, clearly shows this.

How to Enjoy Success

Forex trading success is simply based upon a combination of a simple, robust forex trading strategy, with good money management which you can apply with discipline. Forex trading is an odds based market and if you learn to trade the odds, you can make a lot of money and enjoy currency trading success.

NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE For free 2 x trading Pdf's, with 50 of pages of essential info on Forex Basics for Success visit our website at: http://www.learncurrencytradingonline.com

Forex Expert Advisors - Automated Systems Generally Lose Money Here's Why

By Kelly Price

Forex expert advisors are all the rage and traders buy these automated systems and expect to re produce the track record presented and end up losing their money and this is due to one simple fact...

The track records are in most instances simply not real.

If you are presented with a track record by a forex expert advisor, you are told you can expect the same but this in the overwhelming majority of cases is simply not true. Why?

If you look at the track record you will normally see the words "simulated in hindsight" on it. All this means is - the vendor has tested it on back data and then bent the rules to fit and make it profitable.

Some of the track records (if they were real) would out perform the best fund managers in the world but of course there done knowing all the closing prices and when the system is traded going forward, you cannot bend the rules and they lose.

No two pieces of historical data will replicate exactly again and that's a fact.

There are some forex expert advisors that do have winning software - but don't expect to get it for $100 or so, expect to pay thousands. While these systems can make money long term (a good one will do 30 - 100% annually) you will still have weeks of drawdown and losses to trade through. Don't believe anyone who tells you that you can trade without drawdown you can't - you will lose short term, that's just the nature of trading.

Ask yourself the following question:

If the forex trading system is so good and can give me an income for life, why does it cost $100 or so?

The answer we have just told you and the old saying applies - if it looks to good to be true it probably is, there is no free lunch in life and especially not in forex trading.

If you want to win you can - but you need to get a proven system or build your own.

Building your own is much simpler than many traders think and is covered in our other articles. The advantage of doing this is, you will understand why it works and will have confidence in it and will be able to trade it with discipline through losses until you hit a home run.

Don't ever think forex trading is a walk in the park - its not, its hard to win and you would also expect it to be, with the huge rewards offered. The good news is with the right education and mindset; you can enjoy currency trading success but don't be tempted by a forex expert advisor with a simulated track record to bring you success.

NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE For free 2 x trading Pdf's, with 50 of pages of essential Forex Education for Beginners visit our website at: http://www.learncurrencytradingonline.com

Four Great Reasons to Trade Forex

By Darren Bardsley

This may be the first time that you have considered looking at trading in the Forex market. It may even be the first time you have come across the term Forex and want to know what it actually is. The purpose of this article is to give an introduction into the Forex market and look at why you should consider trading on this market.

The Forex market is completely different today than it was 30-40 years ago. Its changed markedly even over the last 10 years. If you are going to trade on the Forex, I highly recommend that you use one of the software tools that are available in the market and don't directly trade with one of the many trading accounts otherwise I guarantee you will lose money.

So, why would you consider trading on the Forex market? There is actually not one but 3 or 4 good reasons! The first reason is that this market, unlike any other market is trading 24 hours per day. This means that there is plenty of trading opportunity no matter where you are in the world. No matter what time zone you are in you will have access to the Forex market 24 hours per day between Sunday evening and Friday afternoon.

The second main reason for trading on this market is its liquidity. And what this means is the amount of trades that take place and also the volume that is traded. This will astound you! Based on figures for 2007, $3.2trn per day, that's 3.2 Trillion Dollars is traded on the Forex Market every day around the world.

The third reason for trading on the Forex market is the narrow spreads, which is the difference between "buy" and "sell" price, commonly known as the bid and offer. But what does this mean? Well, because of the "liquidity" and the number of people that trade this market, these spreads as they are known are extremely narrow.

The fourth reason for trading is the "volatility" of the market. Do not let this frighten you, this is good because it relates to price movements and it is these price movements that generate profits. One thing you need to know is that there are certain times of the day where there is greater volatility. It also depends on what currencies you are going to trade. There are some currencies that are more volatile than others.

In the Forex market you are basically betting one currency against another and if you have already looked into this market you will see that you are looking to buy or sell currencies in pairs. For example the US Dollar against The British Pound, or the US Dollar against the Euro. There isn't an unlimited combination of these currencies but there are common pairs, some as mentioned earlier, more volatile than others i.e. there will be more price movement during the trading period, up and down.

I have been trading the Forex market for quite some time now and I would advise that you obtain a software program that lets you trade the market whilst taking out the guess work. Remember that unless you have been trading the Forex for many years and can read the market trends you are more than likely going to be one of the many losers out there.

There are a number of products out there and some can be as much as $4000. I'd seriously consider looking at the software provided by the guys at the following site, particularly if you are new to the Forex. The best part is that it's less than $100 and comes with a money back guarantee. So what's the risk, get into trading the Forex now and earn yourself some easy $'s. Visit http://easy-forex-trading.co.uk

Forex Trading System - Do You Need to Predict the Future?

By Albert Schmidt

It is true that no one can always accurately predict the future in currency market. If someone could do it he would quickly became the owner of all the money in world. However you don't need to predict the future to successfully trade in the market. For example the most successful investors like Warren Buffet do not predict the market. What they interested is to increase their investments in the companies that give them highest return. They are not interested in crystal ball of market prediction.

Market predicts and defines itself. We as traders do not need to predict its movement. All we need to do is to synchronize our actions with the market movements. We need a trading method to do that. For example we need a method that allows us to define the current trend. Such a method should harmonize us with the market. The whole idea of predicting the market is closely related to the idea of having control over the market. It's a typical utopian idea to predict to be able to control. This approach is fatal for trader's psychology. Such trader will blame the market because it moved into a wrong direction then he has predicted. It's the source of losses for most trades.

Most traders think that the main reason to succeed in trading is the ability to predict the market. They will suffer because they think that they know better what market should do. I think that a good trading strategy does not have to predict and control anything in market. That means it should exclude emotions of trader from the decision making process completely and leave him only the opportunity to act by executing trades.

I know such systems exist. The difference of these systems from the ones that based on predictions is that they have already incorporated loses in themselves that are related to lagging indicators. The only problem with those systems is that thy may not be as profitable as the systems based on traders discretion. But until you learn to make profit with such mechanical system you won't be able to control your emotions to make profit with discretional systems.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trading Forex.

Forex Trading Strategies - Learn to Use Support and Resistance

By Albert Schmidt

Support and resistance are fundamental elements of classical technical analysis. Additionally they are used to test some other indicators. In technical analysis all trend lines and price patterns are combination of support and resistance levels. So how these support and resistance levels are formed?

The line of resistance is the line that connects the maximums or peaks of the market. The peak is formed when buyers are not willing to pay higher price anymore for a given currency. At the same time with any upward movement traders who sell the currency feel the resistance and start selling at the lower price that makes the price to go down.

Trend that was going up now stalled as if there is an invisible ceiling that cannot be penetrated at the moment. If bulls become strong again the price can move higher. Otherwise there must be consolidation and eventually trend reversal.

Level of support on the other hand connects the minimums or bottoms of the price action. The reason behind of levels of support is similar but opposite to the reasons of forming resistance. Bulls switch places with bears.

Traders who sell are active players in the market. They are the ones who cause the price to move downwards. Traders who buy the pair play in defense. The higher the activity of sellers the higher the probability for the price to break out the support level.

Support and resistance are usually formed because of people's memory of the past events. Traders remember that at a certain price the market reversed some time in the past. That's why it stimulates selling or buying the pair at certain price. Their massive action creates those levels resistance and support again and again.

Most of them remember that a week ago at this point price stopped descending at reversed. Traders will start buying the pair that will make a reaction in the market and price will increase. The opposite is also true. Most traders remember where price did not go higher and once a pair achieved that height they will start selling it causing the price to collapse.

The more times price hits a certain level of resistance or support the stronger the level is. The more times it bounces form certain level the more participants of the market are satisfied with this market situation.

However over time these levels of support and resistance become weaker and weaker. At certain moment price penetrates the support or resistance level leaving those satisfied traders in loss. Many of them may encounter such a loss that wouldn't be able to continue to trade.

That's why any trader needs a trading method and sound money management system to avoid losing entire account when price violates some levels of support or resistance that seemed to be rock solid.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trading Forex.

Forex Trading and Management Theory

By Albert Schmidt

Whatever trading strategy you use in your trading it can be boiled down to the following three steps.

1. Picking the currency pair that suits your trading strategy.

2. Applying the strategy to get a trading signal.

3. Executing the orders according to the signal.

These are three stages are well known in theory of management:

1. Collecting and analyzing the information.

2. Forecast of the situation development.

3. Making management decisions for correction in case when dynamics of the development deviates from the projected course.

The developers of trading systems pay attending to these similarities. For example they use different methods to forecast the price movement. It can be some simple combination of indicators or something complex and expensive such as a solution based on neural networks algorithms.

There are a lot of trading systems used for setting market orders. Most of them allow programming the rules of trade execution for automated trading. But it is the user who must develop the rules. Otherwise these automated systems will not be profitable.

It seems that if people use elements of management theory they should achieve the level of success that achieved in traditional business. However it is not the case. Most traders fail. So what's the problem?

The problem is in disregarding the personal factor of a trader in this equation. It is the personal preference that plays a crucial role for a trader to follow or not to follow his trading system.

If a trading system is in place and you have chosen a currency pair the most important and most difficult part is actually executing the system. And this is where most traders fail to follow through with their systems. Their emotions make them violate their own rules. For instance trader sees a trading opportunity but hesitates to execute the trade. After that he sees the price is moving in his favor and jumps into the market just to find out that it's too late and market now is reversing against him.

To avoid such trading errors trader needs continuous practice of taking trades. First you need to take trades on historical data. Once you verified the profitability of the system take the trades on a demo account as many times as possible before switching to a live account.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trading Forex.

Forex Opportunity - Six Parameters of Trading Strategy

By Albert Schmidt

I would like to present six major parameters of a trading system that you can use to judge their performance in live trading. Backtest your system and look for the following:

1. Maximum value of losses you get during the test of your system. Avoid any system that gives significant drawdown in a single trade, for example 20% of your trading account.

2. The maximum value of profit you get in a single trade. If there is one trade that gave you profit that greatly exceeds the average profitability of the system exclude such a trade. Probably that was just a coincidence. The maximum loss can also be a coincidence but you cannot exclude it since it can be fatal to your account.

3. The next value is the average profit to loss ratio per trade. By average I mean the sum of all the profit divided by number of profitable trades. The average loss is sum of all losses divided by the number of losing trades. You want this parameter to be around 2:1. It actually can be smaller.

4. Win to lose ratio is your next parameter. It is the ratio of total number of profitable trades to the number of losing trades. If you have profit to loss ratio 2:1 then win to lose ratio can be 40% and you can still make money with this system. Usually win to lose ratio rarely exceeds 60%, even though there can be some exceptions. I would like to emphasize that these parameters are for pure mechanical systems when trades are executed based on formal signals of a trading system. For an advanced trader who takes discretionary trades this parameter becomes more individual.

5. The maximum number of consecutive winning trades and maximum number of consecutive losing trades are our next parameters. I explain why these numbers are important. When we start trading the system and number of winning trades approaches the maximum we will expect a losing trade. Knowing these parameters will allow us to avoid overtrading by increasing our lot size because of euphoria from a winning streak. If the number of losing trades exceeds the maximum number then it's a sign that market conditions are changing and we need to adjust and test the system again.

6. The frequency of signal generation. High frequency will require executing trades very often. That can lead to discomfort and nervousness. On the other hand low frequency will lead to low profitability of the system. Which one you chose depends entirely on your personal preferences.

Based on these six parameters you can test trading systems and pick the one that suits your personality.

Albert Schmidt is a part-time currency trader. After quite a long time of struggle he learned to make consistent profit trading in Forex. Review a trading strategy he successfully uses in his trading Forex.