forex-fact

What Are Forex Robots?

2010-07-14T09:55:00.003-07:00

The Forex market is one of the most volatile markets and yet the most continuous and simultaneous trading in the world. A Forex trader profits from the movement of the different currency worldwide. It’s market is very speculative and unpredictable. Currency values can change in milliseconds because of different factors. This is where Forex robots come in.

Forex robots enable traders to trade without making emotions rule trading. There would be times when traders exit a trade because of changes, only to find out that the endangered value would come up again. For some traders, keeping your emotions in check and maintaining composure and being rational can be very difficult.

What is a Forex robot?

A Forex robot is a computer program that analyzes the Forex market based on a particular Forex trading system or strategy. The good thing is that these Forex robots are capable of analyzing more than one currency pair. It is programmed to identify a pre-determined point where the robot can place an order or exit a trade. Upon determining a particular trade deal where you would be able to profit, the robot can place or continue with the order without the trader actually being present.

Forex market changes very fast. Political, social and economic changes in a country can change the value of the country’s currency. Aside from that, there are other factors that can change the currency value. And it could happen in just a matter or milliseconds. This abrupt change can make timing very difficult for traders. About 95 percent of traders fail to make any profit every day. How can you be part of the successful 5 percent?

Whenever you are doing some Forex trading, timing is crucial. This could either make or break your profit. A Forex robot could help you to improve the timing of your trading. This change could actually help you attain bigger profits in the long run.

The good thing about a Forex robot is that it could monitor all the currencies in the world. It could monitor and determine not just one but more than 20 trading signals. With this capability, it could easily monitor all the currencies and let you know if it has detected a profitable trading opportunity for you.

A Forex robot can even be left at charge. It is ideal for traders who needs time flexibility or have time constraints. Forex robot can do the work and seal the deal for you while you are doing something else or doing some other work. They can even continue trading for you even if you are sleeping or playing golf.

Forex robots are not the same though. If you are looking for a Forex robot, you would have to take account your personal situation or lifestyle, objectives and previous trading experiences. Unfortunately, not all Forex robots have the same profitability. Its quality could sometimes be dependent on the manufacturer of the program. There are some Forex robots which would claim that their profitability would be about 95%, while some would be less that that, or sometimes worse.

So when looking for a Forex robot to help you with your trade, you would have to consider a lot before making a purchase. Aside from that, not all Forex robots can be left to operate on their own. There are some which would require to have manual participation while making the trade. You would have to take account all of this when looking for a Forex robot.

Tips When Choosing The Right Forex Robot

2010-07-14T09:55:00.001-07:00

Forex robots are becoming regular members of the Forex market. For some traders, Forex robots are indispensable. Huge opportunities for traders to earn big profits or eventually accumulate huge amounts of opportunities are opening up to traders, there are certain factors like emotions that can affect your trade in a bad way.

Forex robots can put emotions aside and deal without being impartial or being biased when making decisions. Trade decisions are important since the Forex market is so volatile and changes could happen in just a matter of seconds. Quick reaction and decision would pay off, since timing your trade would mean so much for you to be able to increase your profit.

This is the major role for a Forex robot. Forex robots are programmed so that they would be able to enter deals that would be profitable based on the trade signals that the program analyzes. What’s great with Forex robots is that they would be able to carry out the strategy without compromising your judgement or setting them aside due to emotional conflicts.

If you are putting your trade career on the hands of a Forex robot, then you would have to understand the different things about it. The profitability of a Forex robot can be based on its quality, and quality can be different mainly because of the manufacturer of the program.

How would you know that you are getting the right Forex robot? Let’s check.

• Your Forex robot has great background about the currency pair you are interested in. Of course, a Fore x robot can actually monitor all the currencies in the world. But there would be programs that work best with a particular currency pair.

• Forex robots sometimes would have a particular size of trade where they would work best. When they have to trade in a bigger size that what they are recommended to do, their performance can sink eventually losing you trade deals and profits. Make sure that you have defined how much your trading size or money you are willing to put into risk in the Forex trading. There are some programs which would work even in different sizes.

• Forex robots are also available in different levels of automation. If you would like to have a certain level of control on the machine and program, then there are programs which can allow the trader to do some partial manual trading.

• When looking for Forex robots, always ask about the money-back guarantee. If, for some reason, the program would not technically work, you do not have to worry about buying a new one or wondering about the vendor’s return policy.

• Inquire what kind of features is included with your Forex robot software. There are some programs that are very expensive but when you look at it closely, it does not even have any features that could help you boost your trade. There are programs that you can purchase in a reasonable price and can offer you additional information and tools to improve your trading skills.

A Forex robot is a worthy investment. For it to deliver based on you expectations, then you would have cautious even during the selection stage. You do not just pick up something that was poplar, you would need to understand how important it is to make sure that you would get a Forex robot or a program that suits your needs.

Things You Need To Know About A Forex Robot

2010-07-14T09:54:00.001-07:00

Newcomers and experienced traders are getting introduced and liking how Forex robots were able to work for them. Fore robots can work as an ideal Forex trader, the difference it is it automated and can be programmed. This technology can actually work for you 24 hours a day and 5 days a week.
If traders rely on these robots for their trade and transactions, is it foolproof then?

Forex robots have complex algorithms that enable them to do mathematical calculations based on the detail that they get from actual data from the Forex market. These programs could analyze millions of data in less than a second. Some experts would say that these programs eliminate the user error factor. Decisions about entering or exiting a trade, buying or selling, depends on these calculations and trade signals.

Forex trade is a very unpredictable, liquidated and volatile market. These make trading, even for those who are experienced, difficult. Which is why, most beginners, would rather have Forex robots and other automated trading system to help them with their initial trades. Once you have decided to have a Forex robot of your own, there are things that you would have to know first.

• You should at least have a computer, stable internet connection and some basic knowledge about currency trading. You just do not join something you have no idea about, or at the end you can suffer the consequences.

• Any problems that you have encountered when installing the program is a bad sign. So when you have encountered anything, even a slight glitch, make sure to have the program replaced by the vendor. This is why it is important to know if the vendor offers money back guarantee or good return policy before even going ahead with the purchase. Before purchasing any software, make sure that they would work smoothly with your operating system.

• Demo accounts are important. Do not shove them aside. Remember to test the program first with a demo account before you use your real and actual account. Of course, testimonials and comments would say that the product is awesome and perfect, but do not rely on it too much. Try doing some research and information-gathering about your program.

• Internet connection could affect how your system works. If you are experiencing any problems with the bandwidth, it could affect on how the signals are being detected and interpreted.

• Support is essential. Make sure that there are online and even phone support offered to users and traders that would make sure that any issues about the program would be immediately addressed.

• If you have seen a Forex robot in the market or in the internet that you are interested in buying, make sure that it is up to date. You do not want to have an outdated robot that could not provide accurate information. Clues if it’s the most recent are in the version history and how often the websites get updated.

• Forex robots are not only capable in handling entrance and exit orders, buy and sell transactions. It could also perform other functions like charting. When looking for Forex robots, standard trading tools would include Fibonacci levels, RSI, Stochastic and moving average. Check the features included in the program you would be buying. You would like to get your money’s worth, right?

Forex robots are not exclusively for newcomers in industry. An expert trader can reap numerous and outstanding benefits by using this technology. It’s a win-win situation really, as long as you keep in mind that the technology should not over run its creator.

The Secret Behind Forex Robots

2010-07-14T09:53:00.001-07:00

Forex robots are making waves. They are believed to have provided numerous benefits to traders who are taking advantage of their support capabilities. Why are Forex robots successful? Forex robots are also known as Expert Advisors or EA. They do live up to their name since they are said to have helped in the $3 trillion market turnover everyday in the Forex market.

As an expert advisor, Forex robots provide advice and information about when to buy, sell and close a deal. The expert advisor interprets and identify the trading signals that they are able get from analyzing the Forex market.

What do they do?

• Forex robots provides indicators when a trader would enter or exit a deal. Some traders would like to be notified first before the robot enters a deal and the trader would manually enter the deal or exit from it. But the EA could be programmed so that it could automatically enter a transaction. The trader is also responsible in providing the stricture from where certain trade information and signals would be determined.

• Aside from entering or exiting a transaction, the Forex robot can also be programmed to perform trade tasks like buying or selling.

• Fore robots can apply your money management strategy to their program and incorporate it in the trades that they do. Money management is all about determining how much you are willing to buy and sell, or the risk factor involved in trading. Some traders would not include money management and would go for a free strategy. But this could be a costly mistake, so it is better to make sure that the Forex robot already has money management or you could input algorithms in the system to integrate your own management style.

• Forex robots are also capable of placing, changing and removing stop losses. It could also take orders.

To operate a Forex robot or an EA, you necessarily need a computer, stable internet connection and at least some knowledge on how Forex trading works. You would also have to sign up for an account with a Forex broker, they would be providing a trading program. This trading program would be monitoring the Forex market and enable you to perform trades manually. After setting up an account, you can get the Forex robot from a manufacturer. The EA would be downloaded to your computer and would make trades for you.

But there is a certain difficulty when using a Forex robot. Although they can do the trade for you 24 hours a day and 5 days a week, it is impossible to keep your computer working for that long. So, there are some companies that offer virtual hosting where traders can continue trading while giving their computers and trading robot the needed rest.

These service providers would just require necessary information so that they can host your trading platform. They would be providing you would a username and password to have access to your server. When looking for services like this, it is important to have a demo account first where you can check the service before foregoing into trading real money and account.

But as reiterated by experts, having an automated trading system, in this case the Forex robot, is not an assurance of succeeding in trading and becoming a millionaire. It still relies on your trading skills, knowledge and mindset.

The Risks Of A Forex Robot

2010-07-14T09:52:00.001-07:00

Who does not want to have some share with the $3 trillion market turnover that the Forex market gets everyday? If you are one of those newcomers who are learning how to be a part of the Forex trading market and having difficulty to cope with it, you would also receive a lot of talk about getting a Forex trading robot to help you with your trade.

We have hear how good this system is and how a lot of people have gained a lot from using it. But how good is it, really? Could it just be too perfect that we do not want to worry about anything. Contradictory to what most people think, Forex robots would also have downsides.

What are these negative effects?

• Heavy reliance on your equipment

A Forex robot is there to help you not to completely take over for you. A common mistake made by traders is let automated trading programs do the work for them and never ever put even small manual trading. This can turn into a trading disaster in the long run.

If you rely too much on your equipment, what would you do if your computer crashes or you robot encountered problems? Would this be the end for your trading career? Having sufficient knowledge in doing trade manually could save it, making it really essential if you wanted to succeed in Forex trade.

Another thing is that most traders that use automated trading system would just leave their equipment alone. Automated trading system, specifically, Forex robots have the feature called optimization. This would allow traders to check on previous trades and determine how trades have been won in the past. This would allow your system to improve its program. But, there would be times when the optimization process would be too much. It could keep improving its system until it sees that there are no losses on the data. But this could buy time and can even lose transactions in the end.

• Believing its magic

There is no such thing as a perfect system. There are some Forex robot systems that say that they have zero losses under their belt. Systems that claim this could happen aer actually losing their account. There are experts who say that system like this could actually earn a break-even after 20 years!

So, just the same with the first point, even if there are Forex robots that claim to have as much as 95 to 100 percent gain, relying on them too much and letting them do the trading without the trader getting involved could lead to disaster. But traders would have to dig deeper to understand that, actually, their account could end up dipping as much as 75 to 80 percent. Eventually, this could entirely deplete their account.

• Alert signs

Some Forex robots would use bad money management strategies, like stop loss could be larger that the target. Others would not have any trading strategy at all! Some would not allow backtest, which is something that traders should be conscious about.

Bottom line is that no automated trading system could make you rich by millions overnight or in weeks. The Forex market is unpredictable and could be exciting. But to succeed in this field, miracle-workers like automated trading system is not the answer. Of course, it could help or provide the necessary support in Forex trading. But still, a good trading mindset and skill could take you to a long way.

Newbies: Forex Robots?

2010-07-14T09:51:00.001-07:00

Forex trade is becoming more lucrative and attracting more and more people to start trading. There is about $3 trillion turnover everyday and more people are becoming interested. If you are a newcomer in this field, there are lot of things that you would hear from authorities and “so-called experts,” like using Forex robots and other automated trading strategy.

There are things that you need to know about Forex trading, as beginner.

• Not everybody in the Forex trading wins everyday. This is totally a myth. As a matter of fact, there is about 95 percent of Forex traders who lose their money everyday. Start erasing all your images that Forex trading is uncomplicated and can be done easily. Winning in Forex trading is not only about proper trading tools and equipments. It is also about trading knowledge and mindset.

• Forex trading is not only about winning. There are also losing periods. It is important to know and understand this fact, since there are some “experts” who would say that there are trading systems that would enable you to have 100% trade wins and zero loss. This is impossible!

If you are a newcomer, is using a Forex robot the best option for you?It can, as long as you would be using it correctly.

There are different reasons why an expert would like to use a Forex robot. It could be because of time constraints, wanting to be more flexible, improving their deals, or keeping their emotions at bay to help them make more transactions. A newcomer or a beginner is a different case.

Forex robot could actually make things easier for a newcomer. Forex trading could be complex and difficult, a software like the expert advisor would help beginners understand the principles about Forex trading and understanding the different strategies and systems.

Expert traders, over time, have developed their own “winning recipe” or their profitable trading strategy. A newcomer cannot compete with that. A Forex robot assists a newcomer in coming up their own winning trading strategy. Beginners would always follow a beginner’s curve where they could lose a lot of money while giving different trading methods and strategies a try.

To help the newcomers, these Forex robots can accomplish trades for the beginner. Forex robots can be readily brought from different websites. They are very popular since it can work with Metatrader4. You just need to configure it at the beginning and later let it run to autopilot.

Its installation and setup process is also very easy to accomplish. Aside from that, there are also videos and instructions that comes with the expert advisor which you can watch to expand your understanding on how the system would work. Aside from that, some Forex robot vendors would offer training kit (for additional fee, sometimes). This would help you get some basic ideas and trading knowledge on how the Forex market works and what to expect from it.

Forex trade success is not just about getting the correct equipment and the right tools. It is about getting a proper mindset and at the same time learning the inner works of trading, not from an automated point of view, but from the manual one.

Forex robots are not limited to be used by beginners only. Even large financial institutions would use automated trading software and program like Forex robots. Just think about it, even if all of traders would be using Forex robots and expert advisors, why are there still traders losing? It is because, it is not just the robots that define success. There are other fields that you need to improve on, like trading mindset and skill, to be able to succeed in Forex trading.

More Than Just the Robot: Forex Trading 101

2010-07-14T09:50:00.000-07:00

The benefits of using Forex robots have been determined and defined by experts. There are a lot of experts who have testified to the effectiveness of Forex robots in improving their trade and profits. But what is it about Forex and why do people would like to be involved in it.

Aside from the fact the Forex market can reach as much as $3 trillion of market turnover every day, it has become the fastest way to earn stocks. This is the reason why not only individuals are investing in it but also banks, companies and other institutions are turning their interest towards currency exchange and trade.

Before becoming an elite trader or one of the best traders in the Forex market, you need more than just luck. There are simple steps that you can do. You can start by working smartly. Yes, you could work very hard and put a lot of effort into trading. But you could save the time and effort that you put into trading, if you can start trading smartly.

Forex trading can be learned, there are training manuals where you can learn the different strategies and systems that can be used in Forex trading. Aside from that there are also automated systems that could also help you learn. Aside from supporting and making your job easier, automated trading tools and programs can also be instructional.

A successful trader would also need to be in a healthy trading mindset. Success would come from mainly on how you think and how you approach trade and transactions. Having a healthy mindset is not just something that you should have if you are in the Forex trade. You would need this, whatever trading market you are going to be part of.

Actually, the mind can take control over the experience. Results can be proportional to how much effort and though we put into trading. Little results would come from something you would not be putting any effort to. Like the old saying, “if you think you can, you can.”

Forex trading is full of risks. Sometimes, it could even be referred or compared to gambling. Since the market is very volatile, good timing is essential in making sure that you would be getting a good deal. You would also need a good deal of courage to make sure that you would be able to handle your emotions and close calls. Some traders who find controlling their emotions difficult would gladly take advantage of automated trading software and programs.

Aside from courage, you would also need a great deal of patience. Good deals do not happen everyday. Even if there are big turnovers in the Forex market, it does not mean that you would always and consistently get good trades. You would need patience. Some traders would use automated trading systems to earn big time. But there would be instances that it is not possible.

Automated trading systems would often let you lose your money if you are not conscious about it, like let the system or the program trade for you without you even paying any attention.

Successful traders could always give you advise on how to trade and how to be triumphant in Forex trading. You can even surf the internet, there could be options and various supports you can choose from. You can take a Forex robot or an automated Forex trading system, but still fail miserably in the end. Successful Forex trading involves more than skill, knowledge and tools, but character as well.

Its More Than One: Kinds of Forex Robots

2010-07-14T09:49:00.002-07:00

Forex or the foreign exchange market is one of the biggest trading markets and also among the most volatile. Forex trading can either be done manually or buying and selling through a broker or a financial brokerage firm. It can also be done by using the automated process like using a software or an expert advisor also known as a Forex robot.

Generally speaking, Forex trading is dealing with the international market. Forex market deals with all the currency trading the world. Because of its high level of unpredictability, some would refer the Forex market like gambling. Currency values change very fast, that you would need good analysis and at the same time, luck, to be able to land a good transaction.

There are about $3 trillion worth of turnovers every year in the Forex market. More and more traders, newcomers and people are getting interested in sharing the pie. But it is not as simple as that. Tools are necessary to be able to succeed in Forex trade. Forex trading is not also for those who are constantly indecisive and fearful at heart. It takes a lot of decisiveness and courage for you to be able to put your account and investment at risk so that you would be able to gain profit.

This characteristic of the Forex market made some programmers and trading experts to come up with a support system that would enable those who are relatively new in the business to be able to cope with the competition. Thus, the automated Forex trading systems and Forex robots called the expert advisor or EA.

The are two types of Forex trading indicators. These indicators would help you determine if the price is going up or getting down. These indicators would also help you in deciding whether you are entering or exiting a transaction. These indicators are also how kinds of Forex trading robots are called.

• Velocity/Momentum Robots

These robots analyze the price changes, fluctuations and other movement. Upon analyzing the movement of the price, patterns are defined and organized. These patterns would be grouped together and would be used to understand or as a reference when entering a deal or trade.

The rise and fall of the prices would be displayed and therefore would help in determining a pattern in the movement of the price. This would help the trader understand the factors that trigger price movement and at the same time identify opportunities. These trading robots would help you get oriented with the weak and strong points of different markets.

• Continuation trading robots

These kind of robots deal with averages. This kind of robot is ideal for Forex markets that show trends. This robot would determine if there are trends the market by monitoring the up and down movement of the currency trading.

Determining and understanding trade by averages would provide flexibility. At the same time, this would allow you to trade outside the technical factors of trading.

These two kinds of robots, operating based on the kinds of trading indicators, show significant impact on improving Forex trading transactions. Although, not all Forex robots can be entirely relied on to finish deals for you. So, you would have to be careful when buying your own robot. At the same time, it is important to remember that Forex robots are meant to support the trader, not to replace them.

Forex Robot Myths

2010-07-14T09:49:00.000-07:00

Forex market is among the most unpredictable and frequently changing market. Although, this kind of trade is high risk, there are still a lot of people who are venturing into this kind of investment. There are a lot of experts who give advice to every newcomer in Forex trading, it can be about using Forex robots, automated trading, or changing trading strategy. How can we separate the right from the myths?

Let’s start with Forex robots. What are the common myths about Forex robots and how can they be corrected?

• Clever and complicated Forex robots offer the best service

Unfortunately, this is not true. The most simple systems are the ones that may work best. The good thing about simple systems is that they use just simple algorithms and requires fewer elements.

Aside from that, vendors would claim that their programs were designed by brilliant people. Some would claim that their programs would be created by people in NASA or top programmers. What does these people know about trading, anyway?

• Trading can be improved by scientific and predictive systems

Yes, Forex trading and automated trading systems use mathematical calculations to understand and analyze trading signals and their trends. But, are the mathematical calculations some programs claim are really effective. Some vendors would claim that they use Fibonacci and it could relatively improve trading systems.

These formulas could help you analyze the market, but it could never be used to PREDICT the outcome of a trade. If you can, then there would be numerous people who have gone richer because they won in the Forex market.

• Forex robots can eliminate loss

There are Forex robots and automated system claiming to have zero losses. Again, if this would be true then a lot of users would already be walking millionaires. But that is not the case. There are about 95 percent of traders who lose their money everyday. So, the remaining 5%are just the successful ones, out of those small percentage, how many are using Forex robots? It is perfectly normal for everybody to encounter a losing period.

• You can leave your Forex robots to operate on their own

Forex robots claim that you can just turn on your computer and system and let it operate on its own. It can finish deals for you, without you even participating in the process. Any trading system has to be executed in a way where it can be monitored and still follow the trader’s trading strategy.

The reality is that you can let you equipment continue on trading, but it does not mean that the more trades that you have the more gains you will get. It still depends on how you would make your robot work for what you want and you strategy, not the other way around.

• Success in demo accounts is the same for actual trade

Not just because you have proven the effectiveness of the program in a demo account, it could show the same results in the real account. Everything could be risky. This is why it is important to check customer reactions and comments about the products. Most Forex robots website and forum would offer discussions about what are the common problems encountered in real accounts and hot it was resolved.

Forex Robot Advantages

2010-07-14T09:45:00.001-07:00

We might already have an idea what a Forex robot can do for Forex traders. Forex robot manufacturers would claim that this technology enabled them to gain more profit, but aside from this, what other advantages can a Forex robot give.

It is not unusual for a trader to a lose because of backing out from a deal that they think would end up in losing, only to figure out that this trade would go for the better. Emotions can influence traders and make them indecisive. This psychological factor is actually one of the major problems a Forex robot addresses.

Forex robots can eliminate the factor that human emotions could interfere with a deal. Aside from human emotions, robots could also eliminate user and manual error. Forex robots, deprived of any emotions, would be able to logically and rationally analyze the trading signals and determine if the deal is profitable or not.

A forex robot could maintain constant operation. It could manage and trade your account without you having to do any manual trading on your own. It constant monitoring would help a trader cope and analyze trading charts. Forex robots do not only monitor a determined or particular currency pair, but could almost analyze and monitor all the currencies.

Being able to monitor all of the currencies in the Forex market, would help you identify possible trades where you can get more profit. Its monitoring and updates are actually real-time monitoring. Keeping in tabs with the development of the trading market real-time, could give you an edge if you would like to pursue the transaction. There are some automated systems that would only monitor a currency pair, but Forex robots could analyze about 20 trading signals and determine deals of several currency pairs.

Aside from monitoring different currency pairs, you could trade in different markets, in different time zones. But still, it would be based on the market and business hours. But commonly, Forex market operates 24 hours a day weekdays.

It could even be programmed to determine points where you would like to place an order or exit a deal. This characteristic would allow traders to be able to enter trading deals without being present. This means more flexibility. You could do other work while your program would do the trading for you. This is great especially for those who has limited time in trading because of time constraints.

A Forex robot could also trade in real time. It could close on deals and handle transactions in seconds. Manual trading would not be able to do this. But mathematically speaking, robots could be a deal smarter than people. And Forex robots intend to determine the how you can get higher profits and trades in a short period of time given several indicators and factors.

In international trading like Forex trading, the most difficult part could be getting the payments. Sometimes, there are risks of delayed and worse, non-payment. Using a Forex robot would minimize this risk since the purchases will be coordinated with the software.

There are great benefits a trader could reap from using a Forex robot, you just to make sure that the robot that you would get will work for you. So you have to do some research and look for your best option. This would improve your profitability in the Forex market.

Some Free Forex Videos

2010-06-25T22:41:00.000-07:00

fibonacci forex trading

forex out break

forex-indicators

Penalty of £140,000 on Alpari (UK) Limited

2010-06-23T11:03:00.000-07:00

Date: 05/05/2010 Type of action: Fines On 5 May 2010 the FSA imposed a financial penalty of £140,000 on Alpari (UK) Limited ('Alpari') in respect of breaches of Principle 3 of the FSA's Principles for Businesses ('Principle 3') between 8 September 2006 and 25 November 2008.

The breaches relate to failings in the adequacy of Alpari's anti money laundering systems and controls. Specifically, Alpari failed to:

1)carry out adequate risk assessments of the money laundering and financial crime risks that Alpari was exposed to;

2)resource its compliance and anti-money laundering area adequately, in line with the growth of Alpari;

3)screen customers against U.K. and global sanctions lists and politically exposed persons (PEP) lists;

4)have in place adequate customer due diligence procedures, in relation to customers from higher risk jurisdictions, at the account opening stage;

5)carry out adequate on-going monitoring of the business relationship with the customer; and

6)adequately train employees, on an on-going basis, in relation to financial crime and money laundering.

The Final Notice and the relevant press release can be found on the FSA website.

http://www.fsa.gov.uk/register/firmDiscHistoryDetails.do?discHistorySid=1872&sid=167495

some more forex info website

2009-12-27T23:18:00.000-08:00

here are some useful forex websites:

http://www.best-forex-system.info/

http://www.best-forex-trading-system.info/

http://www.forex.idv.tw/

THE MARTINGALE AND ANTI-MARTINGALE STRATEGIES

2009-12-20T01:07:00.000-08:00

It's very important to understand the following two strategies and the differences between them.

Strategy #1
Martingale = increasing your risk when losing
This is a strategy adopted by gamblers which claims that you should increase the size of you trades when losing. It's applied in gambling in the following way:
Bet $10; if you lose bet $20; if you lose bet $40; if you lose bet $80, if you lose bet $160; etc…
This strategy assumes that after 4 or 5 losing trades, your chance to win is bigger so you should add more money to recover your losses.
The truth is that the odds are the same in spite of your previous loss. If you have a system that generates winners 50% of the time and you have 5 losses in a row, your odds for the next are still 50:50!
The same fatal mistake can be made by some novice traders. For example, if a trader started with a balance of $10,000, after 4 losing trades (each is $1,000) his balance would be $6,000. The trader will think that he has higher chances of winning the 5th trade and so he increases the size of his position 4 times to recover his loss. If he loses, his balance will now be $2,000! At this point he does not have enough capital left to continue this strategy. It is likely he will never
recover from $2,000 to his starting balance $10,000. A disciplined trader should never use such a gambling method unless he wants to lose his money in a short time.
Never use a martingale strategy in your money management!
Strategy #2
Anti-martingale = increase your risk when winning & decrease your risk when losing
This means that a trader should adjust the size of his positions according to his new gains or losses. This is the preferable method of managing your money.
Example:
Trader A begins with an account balance of $10,000. His standard trade size is $100. After 6 months his balance is $15,000. He should now adjust his trade size to $150 to continue to risk 1%.
Trader B starts with $10,000. His standard trade size is also $100 to start. After 6 months his balance is $8,000. He should now adjust his trade size to $80 to match his account size.
HIGH RETURN STRATEGY
This is another strategy for traders looking for a higher return and still preserving their starting balance.
According to your money management rules, you should be risking 1% of you balance. If you start with $10,000 and your trade size is $100 (Risk 1%) and after 1 year your balance is $15,000, now you have your initial balance + $5,000 profit. You can increase your potential profit by risking more from the profit amount while restricting your initial balance risk to 1%. For example, you can calculate your trade the following way:
1% risk of $10,000 (initial balance) + 5% of $5,000 (profit)… $100 + $250= $350 risk per trade.
This way you’ll have more potential for higher returns and at the same time you are still risking only 1% of your initial capital.
USING THIS MATERIAL IN THE ‘REAL WORLD’
Understanding and using the material presented here is one of the true “holy grails” of trading. Most people won’t take the time to learn it and put it to use. There are many variables to a successful trading plan, and while there is no guarantee that implementing this information will make you a success, using it is a big step in the right direction. It could help you to be one of the 5% of traders who are successful for the long term!

FOREX MONEY MANAGEMENT FOR SUCCESSFUL TRADERS

2009-12-20T00:26:00.000-08:00

Money management is critical to your success as a professional trader. Quite simply, it means the difference between being a winner and a loser.
It has been shown that if 100 traders start trading using a system with a 60% winning ratio, only 5 of those traders will be in profit at the end of the year. In spite of the 60% winning system, as many as 95% of traders will lose because of their poor money management. Money management is the most significant part of any trading system. Most of traders don't understand how important it is.
It's important to understand the concept of money management and also understand the difference between it and trading decisions. Money management represents the amount of money you are going to put on one trade and the risk you’re going to accept for this trade. It
has nothing to do with where you enter or exit a trade; only how much risk you are willing to accept on that particular trade. There are different money management strategies. They all aim at preserving your balance from high risk exposure.
To begin to understand money management, you should understand
the following term: Core Equity

Core Equity = Starting Balance minus Dollar Amount in Open Positions. If you have a balance of $10,000 and you enter a trade with $1,000 of risk, then your core equity is now $9,000. If you enter another $1,000 trade while the first trade is still open, your core equity now becomes
$8,000. It's important to understand what's meant by core equity since your money management will depend on this equity.

Next I’ll explain one model of money management that has proven to assist in delivering a high annual return with limited risk. The account that we will use as an example will be a standard account with a balance of $100,000 and 20:1 leverage. You don’t have to have this much money in an account to use this strategy, it can be adapted to fit any size trading account including mini-accounts. What is important is you understand the theory behind the method.
MONEY MANAGEMENT – BASIC CALCULATION OF POSITION SIZE
The first thing to understand about money management is you should choose an acceptable amount of risk for your trading capital. Your risk per trade should never exceed 3% per trade. It's better to adjust your risk to 1% or 2%. Most professional money managers prefer a risk of
1% but if you are confident in your trading system and you have a personality of more of a ‘risk taker’, then you can raise your risk up to 3%.
1% risk of a $100,000 account = $1,000
You should adjust your lot size on the trade so that you never lose more than $1,000 on a single trade. Here’s an example:
If you are a short term trader and your system calls for a 50 pip stop loss on the pair you are going to trade:
If you are willing to risk 50 pips with a total loss of $1,000: 50 pips = $1,000
1 pip = $20 ($1,000 divided by 50)
The size of your trade should be adjusted so that you risk $20 per pip. With 20:1 leverage, your trade size will be $200,000 or two standard lots. (If you were trading a $10,000 account with the same scenario you could trade .2 [two tenths] of a standard lot or 2 full mini-lots).
If the trade is stopped out for a loss, you will lose $1,000 which is 1% of your balance.
Here’s another example: If you are a longer term trader and your system calls for a stop loss
200 pips below/above your entry point on a currency pair: 200 pips = $1,000
1 pip = $5
The size of your trade should be adjusted so that you risk $5 per pip. With 20:1 leverage, your trade size will be $50,000 (5 mini-lots or .5 standard lots).
If the trade is stopped out for a loss, you will still lose $1,000 which is 1% of your balance.
These are just examples. Your trading balance and leverage provided by your broker may differ from this formula. The most important thing is to stick to the 1% risk rule. Never risk too much in one trade. It's a fatal mistake when a trader loses 2 or 3 trades in a row, then is confident that his next trade will be a winner and he may take a larger position in this trade. This is how you can blow up your account in a short time! A disciplined trader should never let his emotions and
greed control his decisions.
DIVERSIFICATION
Trading one currency pair will generate few entry signals. It would be better to diversify your trades between several currencies. If you have $10,000 balance and you have open positions with $1,000 then your core equity is $9,000. If you want to enter a second position then you
should calculate 1% risk of your core equity… not of your starting balance! It means that the second trade risk should never be more than $90. If you want to enter another position and your core equity is $8,000 then the risk of this trade should not exceed $80.
It's also important that you diversify your orders between currencies that have low correlation.
For example, if you have a long EUR/USD trade then you shouldn't go long GBP/USD since they have high correlation. If you have long EUR/USD and GBP/USD positions and are risking 3% per trade then your risk is 6% since the trades will tend to end in same direction.
If you want to trade both EUR/USD and GBP/USD and your standard
position size from your money management is $1,000 (1% risk rule)
then you can split the amount between the trades; $500 EUR/USD and $500 GBP/USD. This way you’ll be risking 0.5% on each position. You’ll be able to take both trades but still stick to your money management rules.

Fibonacci theory

2009-07-22T17:46:00.000-07:00

Price correction (retracement) is a short-term anti-trend price movement. Prices almost never just rise during the uptrend and fall during the downtrend. Even within the same trend, the price can rise and then retrace for a while or vice versa. The most profitable and less risky positions are positions opened at the end of the retracement. It is therefore important to know how to define the levels at which the trend will resume after a short retracement. Technical analysis has the so called correction index which uses Fibonacci numbers. The Fibonacci sequence is a series of numbers that takes the previous number and adds it to the current number to get the next number in the sequence. For example, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 etc.

These numbers possess an intriguing number of interrelationships, such as the fact that any given number is approximately 1.618 times the preceding number and any given number is approximately 0.618 times the following number.

Experienced traders know that in a fast market, the correction is about 0.382 of the price range movement. In a market with average price movements, correction is about half the price range movement. Maximum correction is 0.618, which indicates that the trend is rather weak.

Zero percent is the considered as the peak of the crest of the move while hundred percent is considered as the bottom most point of the trough of the move. The trading signals are revealed by the Fibonacci retracement zones or levels which are calculated at 23.6%, 38.2% and 50%.
Since it's mostly seen that history is continuously repeated when it comes to the forex market, the Fibonacci methods prove be to be very applicable over here. Thus, with these shapes, the forex traders are not only able to predict the entire course of the market, they also end up preventing worthless investments.

Trader and Trading Systems

2009-04-07T20:24:00.000-07:00

A good trader can trade almost every system, he's just looking for the most comfortable for his character and time frame

A very good trader don't need a system, can trade a candlestick bar chart with fibs, TL's and HL's.

A lousy trader changes system every moment because he can't find one that works.

What is the NFP report?

2008-12-04T19:45:00.000-08:00

Of all the world monthly economic reports, the monthly U.S. Non Farm Report (NFP) is the most highly anticipated and has the most dramatic impact on the currency market.

The report, which is released on the first Friday of each month and states the previous month's numbers, provides detailed industry data on employment, hours and earnings of workers on nonfarm payrolls. These numbers are the best way to gauge the current state of the US market as well as the direction that the economy is heading.

What's more, the employment numbers provided by the report are used by the Fed to shape their interest rate policies. The health of the U.S. economy and interest rates translate to the strength or weakness of the U.S. dollar.

Risks Associated with Trading Off-Exchange Retail Foreign Currency During Economic News Announcements

As with all major economic releases, there could be significant price volatility with this announcement. Currency spreads will typically widen just before the release and will remain wide for a few minutes after. If the announcement is a shock to the consensus estimate, the price of the currency pair could gap significantly. For example, the price on the EURUSD trading at 1.2820 - 1.2822 just before release could gap up 60 pips to 1.2880 - 1.2882, without any available prices available between the price of 1.2820 and 1.2882. A Buy Stop placed before the announcement at 1.2830 would turn into a Market Order and would be filled at the prevailing price 1.2882. The same would be true with a Sell Stop.

Approximately four years ago we saw a gap of approximately 200 pips on the GBPUSD on a Non-Farm Payroll announcement. While this is an extreme example, it nevertheless is a possibility with trading during economic announcements. Consequently, plan on the spreads widening and, if you are trading with a Buy or a Sell Stop entry order, do not anticipate being filled at your entry price. You will be filled at the prevailing market price after the release, which could be significantly different from your desired price of your entry order.

Please be advised that due to the volatility of price fluctuations during the news, it is possible to see a delay in execution due to the additional verification necessary for each trade.

Primary Reaction in Forex Markets

2008-10-09T01:49:00.000-07:00

In forex markets, the primary reaction is in the JPY-crosses, like EUR/JPY, AUD/JPY, and GBP/JPY, commonly referred to as carry trades. As stock markets fall, the JPY tends to strengthen, sending USD/JPY, GBP/JPY, and the like down. When stock markets gain ground, USD/JPY and the JPY-crosses tend to move higher. Against other major currencies, the USD generally fared better on demand for USD from still frozen credit markets and on a flight to safety basis. If markets begin to stabilize and recover higher, it should be a positive for USD/JPY and the JPY-crosses, while the USD is likely to lose ground as fear and panic subside. If markets continue to slide, there is more downside in USD/JPY and the JPY-crosses and more upside for the USD against others.

The Main Players In Forex Market

2008-10-09T00:17:00.000-07:00

Central Banks And Governments

Policies that are implemented by governments and central banks can play a major role in the FX market. Central banks can play an important part in controlling the country's money supply to insure financial stability.

Banks

A large part of FX turnover is from banks. Large banks can literally trade billions of dollars daily. This can take the form of a service to their customers or they themselves speculate on the FX market.

Hedge Funds

As we know, the FX market can be extremely liquid which is why it can be desirable to trade. Hedge Funds have increasingly allocated portions of their portfolios to speculate on the FX market. Another advantage Hedge Funds can utilize is a much higher degree of leverage than would typically be found in the equity markets.

Corporate Businesses

The FX market mainstay is that of international trade. Many companies have to import or exports goods to different countries all around the world. Payment for these goods and services may be made and received in different currencies. Many billions of dollars are exchanged daily to facilitate trade. The timing of those transactions can dramatically affect a company's balance sheet.

The Man In The Street

The man in the street also plays a part in toady's FX world. Every time he goes on holiday overseas he normally need to purchase that country's currency and again change it back into his own currency once he returns. Unwittingly, he is in fact trading currencies.He may also purchase goods and services while overseas and his credit card company has to convert those sales back into his base currency in order to charge him.

Speculators And Investors

We shall differentiate speculator from investors here with the definition that an investor has a much longer time horizon in which he expects his investment to yield a profit. Regardless of the difference both speculators and investors will approach the FX market.

How to evaluate a forex broker

2008-10-06T21:21:00.000-07:00

How can I evaluate a forex broker and make sure I select a good one?
There are several things you can check before making a decision on a forex broker:

1. Is the forex broker regulated? The parent company of the forex broker must be regulated by at least one government regulatory body. Some of the regulatory bodies in the US include the US Securities and Exchange Commission, Commodity Futures Trading Commission, National Futures Association, Financial Industry Regulatory Authority, and the Securities Investor Protection Corporation.

2. Does the forex broker have a good reputation? Before doing business with any forex broker, it is very important to check on their reputation. For example, how long have they been in business – it should be 3 years at the very least. Brokers who are successful and have been around for a while usually have positive news press on their websites. Find out what former and current clients say about the forex broker – there should be at least 20 reviews available to read.

3. Does the forex broker provide a natural trading environment? There are two major benefits that come from natural trading environment. First is that you get to benefit from true spread which can often be as low as ZERO. And second is that your stop/losses will get hit less often. For example, you should immediately be able to see price changes when submitting limit orders.

4. How much does it cost to withdraw money from your broker? Immediately before opening an account with a forex broker, call them and tell them that you are planning to withdraw money 10 to 15 times per month, and ask them how much it would cost. You may be surprised to find out that with such withdrawal activity, you may be losing extra $500 to $1,000 per month just in withdrawal fees.

What is “Swap”?

2008-10-06T20:26:00.000-07:00

Swap is basically interest that you are either charged or paid. When open a “buy” or a “sell” position on a currency pair, what you are really doing is buying one and selling the other. Swap is paid to you when a positive offset of interest occurs and charged to you when a negative offset of interest occurs on the buy and sell. Wednesdays are triple swap days where you will either pay or receive more swap due to the weekend coming.

What is a Lot?

2008-10-06T20:23:00.000-07:00

Spot Forex is traded in lots. The standard size for a lot is $100,000. There is also a mini lot size and that is $10,000. As you already know, currencies are measured in pips, which is the smallest increment of that currency. To take advantage of these tiny increments, you need to trade large amounts of a particular currency in order to see any significant profit or loss.

What is a Pip?

2008-10-06T20:02:00.000-07:00

The most common increment of currencies is the Pip. If the EUR/USD moves from 1.2250 to 1.2251, that is ONE PIP. A pip is the last decimal place of a quotation. The Pip is how you measure your profit or loss. As each currency has its own value, it is necessary to calculate the value of a pip for that particular currency.

Demo Trading

2008-10-06T19:56:00.000-07:00

Free demo accounts are available with most Forex brokers. These accounts have all the capabilities of a "real" account and allow you to test your trading skills with ZERO risk. You should demo trade for at least 2 months before opening a live account and using real money.

EUR/USD

2008-10-06T19:54:00.000-07:00

In this example Euro is the base currency and thus the “basis” for the buy/sell. If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar

Bid/Ask Spread

2008-10-06T19:48:00.000-07:00

All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price. The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell. The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy.

What Tools Do I Need to Start Trading Forex?

2008-10-06T19:37:00.000-07:00

A computer with a high speed internet connection and a good understanding of forex basics is all that is needed to begin trading currencies

What is Forex

2008-10-06T19:33:00.000-07:00

The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually equates to more than three times the total amount of the stocks and futures markets combined! Forex rocks!

Secret to Success in Forex

2008-06-10T17:04:00.000-07:00

What it takes to succeed in forex trading is the guts to keep
going and the smarts to have enough money to last that long.

Let me explain.

You see most traders blow out accounts (rather small ones)
rather quickly. Then they re-fund the account and start all
over. It's madness.

If you're account is too small, you are fighting an uphill
battle. No, it's worse. It's like trying to fight and scale a
cliff at the same time. It's not going to happen.

Drawdowns happen. You need to have enough money to make through.
You need to have the smarts to preserve your capital and not
chase bad trades during this time. How do you learn to do this?

It's one of those things that you learn by doing. You can't get
it from a book or course. So how do you not lose a fortune in
the process?

First, make sure that your account isn't too small. Anything in
the hundreds of dollars is too small (if you're base currency is
something other than US dollars, convert to get the numbers for
your currency).

Don't even think of trying to trade with less than $1000 USD.
And don't even think of trying to trade with money that you can
lose and then shrug your shoulders. I remember one business deal
I invested $17,000 into. I lost it all quickly (it was a bad
deal).

I didn't need that money. It wasn't a big deal to me. I shrugged
my shoulders and said, "oh, well." I also recovered the money
quickly from another deal. However, if it had been a problem to
lose that money, I doubtless would've lost more not made it
back.

It's funny that it works that way, but it does.

So, (and I know you've heard this before) only trade with money
you can lose. And only trade with an account that is a
sufficient size.

Make sure that your trades are as small in size as you can make
them (and still be following your system).

As long as your account is large enough, your trades are small
enough, and you have a system that works (see lesson one if you
don't), then you will make it as a trader if you stick with it.

You see, you're as bad as your going to get right now. You can
only get better, and you will, if you do things right.

So what does it take to succeed in forex trading? Perseverance
and intelligence. You can do this. You can do well at this. Stay
the course. The end is a pot of gold and it is really worth it.

How To Avoid Losing Money In Forex

2008-06-10T17:03:00.000-07:00

Perhaps the biggest reason people fail in forex trading is
because they can't seem to take enough winning trades, right?

Wrong.

The biggest reason people fail trading is because they don't let
their profits run.

Sorry. Still wrong.

Because they attempt to day trade.

No, that's not it.

Most people who fail in forex trading do so because they trade
with too much leverage. Trading at 100:1 is asking for trouble.
Why do the brokers advertise it so heavily?

Because it's good for you? Because they have your best interests
in their heart? Because they make a lot of money when you do?

No.

Most brokers trade against their traders because they know that
most are losers. So all they have to do is take the opposite
side and over time they will be net winners.

Shocking? Disgusting?

I don't think so. Don't hate them. You'd do the same if you were
in their place. Sure, if they truly cheat or steal, that is
another thing. But don't hate them just because they are trying
to maximize their money.

Back to the main point. Too much leverage will kill you. Do you
realize that at 100:1 (the most common leverage offered) you
will be wiped out if the price moves just 1% against you (if you
have no stops in place).

At 200:1 leverage just 1/2% of price movement against you will
empty your account. In truth, you shouldn't (in my humble
opinion) trade at higher that 10:1. In other words, ten cents
would control one dollar (or whatever currency is your base
currency).

Let's backtrack. If you noticed above I said that you wouldn't
be wiped out at 100:1 leverage if you have stops in the market.
If that is the case, then what is the danger? Just make sure you
have stops, right?

No.

The percentages still hold true. At the higher leverage the
market may only have to move a hundredth of a percent to take
out your stop. All the market has to do is hiccup, and you're
out.

On the other hand, if you've got your leverage small, you can
give your trade more room, because each pip is worth less. More
room means the market can move against you before moving in your
favor.

How many times has the market touched one of you stops (taking
you out of the trade), before moving in the "right" direction?
That wouldn't have happened if you'd had been less leveraged.

Leverage kills traders. Repeat that. Over and over.

How to make money in forex

2008-06-10T17:00:00.000-07:00

If I could sum up forex trading in 5 steps, here's what they'd be.

1) Rid yourself of the get-rich-quick mindset.
2) Use a simple system (that works!).
3) Practice.
4) Practice some more.
5) Enjoy the fruits of your labor (in other words, make money).

Let me explain each one.

Rid yourself of the get-rich-quick mindset. There is a disease that most of the people looking to better themselves have. It's "make a lot of easy money fast" disease. It comes
from reading too many books full of hype and too many infomercials.

It will destroy your ability to make significant money at anything, especially trading. Yes, there is a lot of money to be made in the forex market. But you're not going to make it your first week, or your first month. You might not even make it your first year.

Does that discourage you? If so, you are a sufferer of this disease. Believe me; the goal of making money by trading forex is very attainable. And it is worth the effort. $$$

But you are going to have to commit yourself to doing it right, if you want to do it successfully at all. Are you with me? Good. (You have just been cured.)

Next you need a simple system that works. Nothing is more discouraging to a new trader than to be doing everything right and still lose because of a bad system. Furthermore, a complicated system is another sure route to failure. It must be simple.

So, how do you tell if a system is good? It can be complicated. Here is the easiest way. Ignore income claims and backtesting results. They are worthless. First they are easily faked. Secondly, many systems that backtest well blow up in real trading.

Stick to old systems that are proven through out time. I'm talking about Fibonacci retracements, Bollinger band squeezes, etc. You can learn all you need to about these methods for small amounts of money (if you don't know already). Save your $997. You don't need the latest and greatest automatic trading system. Fibonacci still works. It will most likely work until the world ends.

Now you practice. There are hundreds of forex brokers that are hungry for your business. All are willing to give you free demo accounts with free charts. Sign up for one and practice.

Enter demo trades just as if they were real. Don't worry about winning or losing. No one is going to see your trading record. Prove to yourself that you can follow the rules.

Guess what? Step 4 is more practice. Why? Because you didn't do step 3 right (which is to practice). You didn't follow the rules. You didn't take trades when you should have. You exited early to grab profits. You did, didn't you? (Hey, it's okay. I've been there and done that.)

So practice some more. You can do this right. You can make money trading forex. I know you can. Just follow the steps, okay. Practice.

Finally, you've reach the last step. You've practiced. You're following the rules. You're actually picking winning trades, and your account balance is larger than when you started. You're ready for real money. You're going to get rich!

Whoa!! Let's not get that easy money disease again. Things will be bumpy when you first start using real cash. However, you know what to do. If you do it, you will make money. (Read the last two sentences again and let that sink in.)

How to Choose a Forex Broker

2007-10-05T04:16:00.000-07:00

Choosing a broker in forex trading is as important as choosing a right partner in doing business. Most people think low spread is the most important factor, but I think reliability must be firstly considered. Simply because it's a money game, the broker must have integrity in handling your money, no matter it's deposit or withdrawal, by wire or by credit card.
Other factors to consider: Trading platform, software, spreads of currencies' spreads, speed execution of trades, service charges.
You can get more information from some popular forex forums such as forexfactory.com.

Mechanical Forex Trading

2007-06-06T00:21:00.000-07:00

Traders can be categorized as mechanical and discretional. A mechanical trader sets up some strict rules for his/her trading and sticks with them all the time. A discretional trader considers his/her power of judgment at the time of trading. In a mechanical approach you can estimate the likelihood of your success and based on that likelihood you can make correct decisions. A discretional trader has no clear way to evaluate his/her likelihood of success. A discretional trader could be more successful than a mechanical trader in short term but in the long run it is the mechanical trader who wins the most. There might be some exceptions but in general mechanical trading is the right way to go.

The ultimate mechanical trader is the computer. Even a highly-disciplined manual mechanical trader is not 100% free from discretion. If you leave your trades to your computer it never breeches the rules you have set for it.

A computer is a machine and it cannot setup trading rules. It is you "the trader" who needs to define these rules for the computer to make your computerized trading experience a successful one.

Forex the Tug-of-war between Currencies

2007-06-06T00:15:00.000-07:00

Entering the forex market is very easy. You can open an account with less than $300 and enjoy the high leverage of 100:1 or even more. For many people this means making big money in a short period of time. The temptation is high but unfortunately the reality is different. The majority of inexperienced traders lose money in this market. Many of them even blow out their accounts completely in a very short period of time. It is not easy to constantly make money in forex.
Forex is the largest and the most liquid market in the world. With an average daily trade volume of about $1.9 trillion no other market can beat it. The Forex market which is an Over-The-Counter (OTC) market is open 24 hours a day for 5 days a week.
To be a successful trader you need to be a disciplined , knowledgeable person. You need to learn several skills including fundamental and technical analysis methods, and risk and money management techniques. The psychology of trade also plays a key role in your success as a trader.

Forex Risk Warning

2006-11-01T19:17:00.000-08:00

High Risk Investment
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Internet Trading Risks
There are risks associated with utilizing an Internet-based deal
execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since Global Forex does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. Back up systems and contingency plans to minimize the possibility of system failure have been implemented and trading via telephone is always available.

TECHNICAL ANALYSIS

2005-12-01T06:06:00.000-08:00

Technical analysis is the process of analyzing a market's historical prices in an effort to determine probable future prices. This is done by comparing current price action (i.e., current expectations) with comparable historical price action to predict a reasonable outcome. If we accept the fact that human emotions and expectations play a role in market pricing, we should also admit that our emotions play a role in our decision making. Many investors try to remove their emotions from their markets by using computers to make decisions for them. Technical analysts are sometimes referred to as chartists because they rely almost exclusively on charts to look into the history for their analysis.
On looking to a chart we get a clear picture on "over all trend, support, resistance etc. And by using tools like momentum, volume (buying/Selling pressure), relative strength index, moving average and many studies like these, one can see the approximate future direction. To further strengthen the view some effective mathematical calculations are used, like Fibonacci numbers, Elliot wave count and Gann analysis etc. This entire process of technical analysis is one of the best analyzing methods to know the future prices.

FUNDAMENTAL ANALYSIS

2005-12-01T06:05:00.000-08:00

Fundamental analysis is a process of analyzing the market with the news and facts that generates the initial direction. Fundamentally there are certain news which are the major reasons for the market price action. These news can be about economical or political changes and happenings. Since this acts as a trigger to the economical raise or fall of a country, it is followed by most economist and hence by traders and fund managers. This method to predict the next move in the market, though a best system may not work all the times. For example, there might be different news released at the same time the same day. (i.e US employment positive, retail sales negative, neutral interest rate decision, trade deficit widens). In this case no pro trader knows what will happen next, is the accepted truth. But generally we can compare the history of the market in the past and come to a conclusion how the market has reacted when there was a similar economical figure released. With this clue we can easily predict the direction of the next move, but again how much and how long the market is going to continue in this new direction, purely depends on the current situation. When we approximately guess the probable future price, we may require a conformation on our view for which we look into the charts.

What makes the Market Tick?

2005-12-01T06:04:00.000-08:00

"Markets up sharply amid??", "Gold heading south due to??", "Exchange rates soars, more highs predicted??", For many of us phrases like these are important indicators for making a major trading decision. It is no wonder that following these markets has become a part of our life. So we read the, wall street journal, listen to CNBC, or click to the inter-net for the latest market in-formations from the experts. This is where we require fundamental analysis.Reports such as Gross Domestic Product (GDP), Employment levels, Retail sales, Capacity utilizations and others shows a country's economical health. While economical numbers can certainly reflect in the market, some reports and numbers become important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years (for example) Interest rates, Employment data, Trade balance figures and Inflation numbers have all had their time in the spotlight. However, even most "experts" admit they have a difficult time "beating" the markets. That is where technical analysis plays an importance. If you have an idea about where the markets are headed but still have doubts then you can cross check with the help of technical analysis, where the ease of buying and selling decision turn to forex markets investment opportunities

Tip to Investors

2005-12-01T06:03:00.000-08:00

Trading in speculative markets can lead to very quick and substantial profits or losses. At times it is possible that you may lose more than what you have invested in these markets. Reason behind this is improper management of funds. A good rule of thumb is to use only funds that you can afford to lose without affecting your lifestyle. In other-words the amount invested in these speculative markets should be only a part of your surplus funds. And this fund should carefully be diversified into various portfolios.
Remember not every trade will be a winner. Some very successful traders may only win 30%-40% of their trades, but still they are able to fetch hefty returns. The secret behind this is, they efficiently manage their risk in rest of the trades. The key is to cut your losses short, and always follow the rules of money and risk management.

Forex: Tips & Benefits

2005-12-01T05:55:00.000-08:00

Currency trading on the Foreign Exchange market has numerous advantages as a home based business.
The startup costs compared to traditional businesses are extremely low.
You don't need any employees.
Trade from the comfort of your own home directly from your computer.
Make money regardless of the state of the US or world economy.
Trade from anywhere. If you like to travel, this is a dream business. Take your laptop with you and you can trade Forex and make money anywhere in the world where you have an internet connection. You have total freedom of location.
No experience or expertise whatsoever are required if you use a quality trading system, such as the 5Minute FOREX™ foreign currency trading system
When trading currencies you make profits on the fluctuation of exchange rates between major currencies. Currencies constantly fluctuate against one another regardless of the condition of the economy in individual countries, including the US. It is the perfect financial market. Trading Forex is truly a recession proof business.
$300 Account Minimum
No more are the days when you had to have millions of dollars to trade Forex. The minimums have now been lowered to the point where most people can afford access to foreign currency trading.
Liquidity
Forex is by far the most liquid market in the world. There is NEVER a problem buying or selling a position as in the stock market. The Forex market can absorb trading volumes and per trade sizes that dwarf the capacity of any other market. On the simplest level, liquidity is always a major attraction to any investor as it allows one the freedom to open or close a position at will. You can access the funds in your Forex brokerage account as easily as you can your bank account.
24-Hour Market
Foreign exchange trading is the only 24 hour market. It is the ideal market for active traders. Unlike stock and futures trading, currency trading on the Forex market is not cut short at the "close" of each day's trading. Forex trading is never paused, which ensures true 24 hour trading and the ability to trade during virtually any important event. The benefit of Forex being a 24 hour a day market is that there are little or no gaps in the market, meaning there is no chance that prices will close one day and reopen the next day at radically different rates.
When you are trading equities or futures, the central exchanges close at the end of the business day. This means that there is no liquidity in these markets after hours since the market is closed, which makes trading impossible. In addition, there is a high degree of risk for traders who have open positions after the market closes. If news or events take place after the close that affect their positions they will have no opportunity to liquidate their trades. The next day, at the open, prices may immediately jump drastically, forcing the trader to close their positions at a rate which they incur a far greater loss than if they were able to close their position after hours. The continual, 24 hour a day liquidity of the Forex market ensures that the trader can always open or close a position anytime, thus eliminating the large potential risks with market gaps