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The Benefits of Strategy Trading

The Benefits of Strategy Trading

I wrote earlier article about the strategy traders who trade the strategies. From my point of view, I believe that if traders stick with trading strategies which have been properly back-tested, they can make more money than trading any other way. Making more money is not the only reason that strategy trading is a good method in trading. There are other benefits as well.

In this article, we will talk about a few obvious benefits of strategy trading.

Let’s begin with the most important one. The most important benefits of strategy trading is it will allow you to sleep well at night when you have a confidence by knowing that your trading strategy has been back-tested and is proven to be successful. No matter what happens in the market during the day or night, you will have a string belief that your strategy will gain you profits eventually.

The other one of the benefits, you are able to choose a market and a trading strategy that is appropriate to your personality. The basic idea of choosing a strategy is to select a market and a trading strategy that you feel most comfort when trading.

For example, traders who want to stay in market all the time will choose different strategies than day traders. If you are a trend follower, then you will choose a different type of strategy than traders who trade the swings.

Another advantage for strategy trading is you always know your financial situation. If you stick with the strategy’s rules, the rules will tell you how to manage your money and how to size your trading positions.

Strategy Traders will always know the maximum equity drawdown associated with their strategies from the results of historical tests. Hence, they are able to determine the capital requirements and prepare enough capital to maneuver through the eventual drawdown. There will be no financial surprises such as your broker give you an unexpected call for additional margins.

I have been providing you reasons why the strategy trading is the most viable way to make money in the markets in this article. And included type of skills and knowledge that are necessary

to be a successful strategy trader in earlier article. I hope they will give you enough motivations and can convince you to turn to strategy trading.

So, what are you waiting for? Let’s go on to the nuts and bolts of finding your viable trading strategies.…

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Forex Trading Software – The Reason Traders Dont Make Money With These Packages

Forex Trading Software – The Reason Traders Dont Make Money With These Packages

Forex trading software is presented as the road to easy money, simply pay a hundred dollars or so and sit back and earn an income for life with no effort but the reality of using these software packages is losses.

Common sense should tell users, that these packages are not going to work because they present track records that the world’s top fund managers cannot match (despite the fact these top traders are paid multi million pound salaries) but the user is promised bigger gains with no effort! Of course, you won’t be surprised to hear that none of the world’s top fund managers have lost their jobs and been replaced by a cheap Forex robot,

A look at the track records of the cheap software packages, shows they all have one thing in common – they don’t have an independent track record of gains which has been audited by a reliable source. None of them therefore have actually proved they can make the gains which they promise.

You are simply expected to believe, that you will make money based upon – back tested simulations, the vendor has done over historical data, knowing all the closing prices which is not exactly hard or you get figures the vendor tells you are true – but their selling the system. A quick look around the Forex forums tells you that people are losing money when the vendor claims gains! An independent audit would clear that up but the vendors are reluctant to do this – wonder why?

If you have read and understood this article so far you know why.

If it were as easy to make money, as plugging in a hundred buck robot then, sitting back and watching it make a fortune, everyone would be a trader and 95% of Forex traders wouldn’t lose money.

If you want to win at Forex trading, you do have to make an effort but for the amount of work you have to put in the rewards are enormous. So do what all successful traders do and that’s get a decent education and get on the road to Forex trading success.…

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Signs Your Forex Position Is About To Be Overrun and What To Do About It

Signs Your Forex Position Is About To Be Overrun and What To Do About It

Gaps are truly a tough call with the Forex market. Reason being the forex is open 24 hours a day, 5 A� days a week without interruption.

If you’re a trader in the forex market you really need to focus on the “intra-day” time frame of (32 minute, 64 minute candle charts) if you see gaps on these candles, take notice of their direction.

When the price is gaping in your favor that’s great. If the price is gaping contradictory to your position, you may have the first sign of a change coming, or a pattern break.

If you’re not in a position, but are planning one, take a “Break in your trading”. Here’s how it works: You see a potential entry level for the EUR/US Dollar pair, you have considered your risk, your profit objectives are marked on the chart and you are ready to hit the buy button.

Then you take a look at the intra-day trading and see gaps. Upside gaps, downside gaps, they are truly all over the place! Now all you do is just wait. Hold your order for a few minutes before you actually place your order.

This goes twofold for you day traders. If you’re feeling like you just got to get in before this thing gets too far away from you!” you need to adjust your calculations, and then take a “Break in your trading”for a few moments. Your emotions will calm and you might just find a few entries that were more optimistic thinking than high-probability. A good egg timer helps to keep you straight!

Wide Range Bar

First, you’ve got to know your true average daily range.

Second, you’ve got to calculate your entry points beforehand. If you see daily bars that exceed the average range, expect your entry target you know those.631 and 1.26 numbers to go to the full 1.26631 extension.

Shaved Head or Shaved Bottom

If the market is near your target for entry, and the 24 hour period closes at the extreme top or bottom that is an indication of strength close at the top or weakness close at the bottom. Expect to see several tail closes one after the other as price builds momentum.…

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Benefits of Automatic Forex Trading Software

Benefits of Automatic Forex Trading Software

Forex is short for foreign exchange and it is the process of trading for money in one currency and selling it when that currency rises in value. Before the advent of automatic forex trading, only banks were able to successfully make money from forex trading. With new automatic forex software, even a new person can make money from forex trading. This type of forex software uses several methods, in addition to normal strategies practices by people, to help ensure that money is made. Then can even do the transactions automatically after some careful set up and calibration of the software.

One of the primary benefits of an automatic forex program is that it can give a person information with daily signals. Unlike what is popularly said, forex trading rates update daily, not hourly. By paying attention to daily signals, a person can tell when to make a trade of currencies. The daily signals come in automatically and are some of the most important signals to pay attention to. It is also possible to set up the software to make trades automatically, without any need to be at the computer to complete the transaction. This can save people a lot of time.

Because automatic trading uses software to perform almost all of the functions of foreign exchange, it is possible to set up multiple trading accounts and manage them all at the same time. Using different programs in tandem with each other can help diversify a person’s investments into multiple currencies and spread the risk around. That way, if one currency exchange fails, there will be others to fall back on. All that is really required by the person using the software is to be at the computer at certain times to make sure that the trades are going well.

From being able to manage multiple accounts at once to automatically processing daily updates, automatic forex trading software is one of the best options to use when getting into forex trading. Properly made and maintained forex software can help an amateur investor in forex make tons of money. This can easily mean millions of dollars for the experienced forex trader who uses automatic forex trading software to help bolster his or her normal trading. All it takes is installing the software and doing some calibration of the settings to make sure that everything is exactly as the forex trader wants.…

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Day Trading Strategies for Beginners

Day Trading Strategies for Beginners

Day trading is the practice of buying and selling financial instruments, such as stocks, stock options or equities, within the same trading day and to have your positions closed before the market close for the day. Day trading used to be exclusive to financial firms and professional investors, but the advance of technology has seen the growth of day traders working at home.

With its quick returns, day trading is very profitable when you do it right. But its highly volatile nature can also make you extremely unprofitable. It can be a difficult skill to master, over 90% of those who tried fail. But don’t let the odds beat you. By learning intraday trading strategies and techniques, and by practicing continuously, you can become one of the few who are making millions of dollars per year.

There are several intraday trading strategies and styles. Beginners usually start with “Trend Following”, assuming that the financial instruments that are rising will continue to rise and the financial instruments that are falling will continue to fall.

Other strategies for beginners are “Range Trading” and “Contrarian Investing”. “Range Trading” is assuming that the financial instruments’ price is within certain range; every time they hit a high, it falls back to the low, and vice versa. Thus traders buy long when the price is at the lower end and sell short when price is at the upper end. While “Contrarian Investing” is a strategy that assumes that prices that is rising or falling will go to the opposite direction eventually, thus trading in the opposite direction.

With more confidence, you can try “Scalping” or “News Playing”. “Scalping” is a strategy where you exploit the inefficiency of the market by taking profit where small price gaps happens between the bid and ask prices. News Playing is another strategy where you anticipate the market’s reaction based on the recent news or rumors of a certain financial instrument while bearing in mind that sometimes the market’s reactions are not always match with the tone of the news.

With more understanding of how the market works, you can also try “Price Action”. “Price Action” is a trading strategy in which you are keeping data of price movement, chart patterns, and other market data and use the combination of them to determine whether to make trade or not.

Not all strategy works for everybody and in every market. To maximize your profit, you need to know which day trading strategies works best for you and your characteristic.…

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Automated Forex Trading System – How Does it Make Money For You?

Automated Forex Trading System – How Does it Make Money For You?

Look around you today, there is nothing on this planet earth that has not gone through automation process. As we all know forex market with it amazing potential has made so many people to develop interest in this area of investment. Because of the increase in size of traders, a group of professionals have come together to develop automated forex trading system that would make life more easier in currency trading.

Now, lets look at how automated system works in making money for you.

1. Installation

The first thing that is required is installation of the trading software. Gone are those dayS that it will take several hours before you could install your automated trading system with you broker but now within two to three minutes the installation is done and you ready to go. Anyway this is achieved because most of the software usually come along with installation manual.

2. Settings

This is where a little bit of tweaking is required from the part of trader. Though this might not be necessary because most of nowadays software come along with default settings but if you an experienced trader and you wish to adjust or customise the settings to suit your trading style, no problem. You are allowed to do that provided that you don’t touch some settings that will not allow the automated forex trading to work as expected.

3. Action.

Once you have installed and set your parameters right, the next move is to turn it on and start to trade for you on automatic. It will start making pips and making money for you on autopilot. Let me tell this,there are some forex traders presently who are using automated system to earn thousands of dollars every week. Anyway, this is function of the size of their trading accounts. You too can make big money if you lay your hands on good trading software.…

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Finding the Best Trading Platform

Finding the Best Trading Platform

Foreign Exchange business or known as Forex trade is one of the large market in the world. Forex trading platform is software used by the people who are into the business. It basically served as the interface between the trader and the broker. There are different business platforms available in the market today. For some, choosing the best platform is difficult. Choosing the right platform depends on what business strategy you are using. The platforms will allow you to do business easily and effectively.

There are many things you need to consider in choosing the right business platform. You have to identify its benefits because different software can give you different features and advantages. One of the things you need to consider is the ability of the software to provide real time data such as your account balance and other movements in the market. This will also allow you to check the business charts. Choose also the platform that can give you convenience every time you enter and leave the deal. Another feature you need to consider is the trailing stops wherein you can lock your profit as soon as the profit is desirable. Lastly, you need to check if the software has an automatic dealing feature. This automated deal allows you to trade even in your absence. Most of the platforms have the ability to place deals automatically base your forex business preferences. However, in case your existing platform doesn’t have this feature, you can set-up forex robot software. It functions the same with the automated deals and you can definitely use it along with your existing software.

Traders used platform because it can also help in increase the profit because they can perform faster and perform business with no error. Before you buy your own business software, it is better to consult other traders, make some research and establish comparison of the other platforms available in the market. In order to check how a system works, it is better if you use a forex demo account first. This will allow you to see the different features and determine if it is the right software you needed. There are different types of business software available for stock buy and sell, commodities and mutual fund business. There is a wide range of business platform – from easy to operate software for novice traders to advanced tools for sophisticated traders. Choose the right platform that suits to your needs.…

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What is Forex Currency Trading?

What is Forex Currency Trading?

Foreign exchange trading – often shortened to forex trading or even just fx trading – is the purchase of one currency while simultaneously selling another.

Currencies trade in pairs, like euro/US dollar (EUR/USD) or pound sterling/US dollar (GBP/USD). The first currency listed is known as the ‘base’, and the second is the ‘variable’. The value of the base currency is always 1.

Unlike trading on the stock market, forex trading does not take place on a central exchange. Instead the foreign exchange market is an OTC (over-the-counter) market. The main forex trading centres are in London, New York, Tokyo, Singapore and Sydney. The worldwide distribution of these trading centres means that forex trading can take place 24-hours a day – the market ‘chases the sun’.

Forex trading is the largest and most liquid market in the world. According to a survey carried out by the Bank for International Settlements (BIS) in 2007, the forex market has a turnover of more than $3 trillion a day.

Who trades forex?

Daily turnover in the forex market comes from two sources: speculation for profit (around 95%) and foreign trade (around 5%). The main market participants in forex trading are banks, but currency speculators, companies and other financial institutions also account for a significant proportion of trading activity.

Most traders focus on the most liquid currency pairs, known as ‘majors’. More than 85% of daily forex trading involves these major currency pairs.

How to trade forex

A relatively straightforward way of gaining access to the forex market is through trading forex CFDs (Contracts for Difference). Forex CFDs let you take advantage of the high volatility seen in the forex market without having to own substantial quantities of the actual currencies.

CFD providers quote a price for a currency pair, and, depending on whether you think the base currency is set to rise or fall against the variable, you buy or sell the base currency. For example, if you thought pound sterling was going to strengthen and that the US dollar was going to weaken, you would buy GBP/USD contracts.

Why trade forex CFDs?

Trading forex CFDs means that you do not have to pay for the full value of the underlying currencies you are trading. Instead you put down a deposit, which, in some cases, means you can trade up to 100 times more than your initial outlay would have bought in actual currency. Because of this remarkably high leverage – and when combined with the liquidity and volatility of the forex market – there is significant potential for making huge profits or losses with forex CFDs in a short space of time, even when there are only very small price movements.

Forex CFDs also enable you to go long (buy) or short (sell) on a currency pair. This means it’s simple to potentially profit from both rising and falling markets.

Leading forex CFD providers offer a wide range of forex CFDs, often with spreads from as little as 1 pip, low deposit requirements and advanced risk management tools.

Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved.…

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Trading the Forex Markets In Today’s Environment

Trading the Forex Markets In Today’s Environment

The currency or Forex markets could be said to be the most important in terms of volume of transaction and range of uses. Not only is it a popular for day trading and working from home, but its uses and participants extend from the individual traders to the central banks of governments. This makes a very interesting and fast moving market that is ripe in opportunities to extract daily profits.

The sophistication and participants involved in the Forex market make it a very challenging environment to trade because so many factors come into play. Mutual Fund managers use this arena to hedge their portfolios denominated in foreign currencies and governments regularly intervene in these markets to maintain what they consider a fair exchange rate. Then there those that speculate or trade based on technical and fundamental factors that they perceive will make pairs of currencies move in one direction of another.

As the Forex markets have grown, so has the sophistication and technology of its key participants. This has made trading more challenging and unless you possess either the right knowledge or equipment your are at a distinct disadvantage The demise of the day trader is usually not his knowledge of the Forex markets but the injection of opinion of emotions that distort the trading landscape.

The Forex market as many others have challenged radically in the last couple of years. Institutional investors that account for the bulk of the volume and trade in the Forex markets do not rely on judgment or opinion to determine price movements of currencies in the markets. Instead they have delegated this to computer that either buy or sell when certain conditions are met.

The trader who continues to rely on manual system and human analysis for trading is now competing against these computers. Clearly in the end we know who will win. So what is a trader or someone who desires to extract a small profit from the Forex to do? Simply play the same game. There are numerous Forex Robots that simulate the same type of trading based on the criteria the big boys do. Remember you only need to extract a minuscule amount from a huge market to make a decent living. With the proper tools and technology you can succeed. Forex Robots remove one of the biggest factors that traders fail, human emotion.

The bottom line is this, can you make a living trading Forex from home? Yes, but I would not do it alone and rely on a proven Forex Robot to automate my trading.…