Become a Better Trader

It is a well documented fact that within the “business” of trading the financial markets, as much as 90 % of the participants lose and continue to lose money. So if 90 % are losing, that therefore means that 10% are gaining each and every time.

In order to improve my own trading record, I deliberately set out to try and discover what it was I had to do to become one of the 10% (The Winners) who are consistently making money from the unfortunate remaining 90% (The Losers) who don’t.

My research and investigations was to speak to as many successful traders as I could, to read as many articles, publications and books which have been written by successful traders. It wasn’t until I started my research, that I quickly realised just how much has been and no doubt will continue to be written about trading and the psychology of trading. What is even more astounding is the amount that has been written by so called “gurus” who actually haven’t made any significant amounts of money from a business that they are supposed to be experts in. I will tell you about some of my findings relating to these authors in future articles.

It is my intention to publish my findings in a series of articles over the next 3 months and I hope you can learn and improve your own trading from implementing the information which I release.

I personally trade the FOREX market now but I have tried trading stocks, futures, commodities and options. I will be covering the reasons for concentrating on FOREX in a later article but in the meantime let me tell you about one of my many discoveries.

Every one of the successful traders I interviewed, stressed the importance of keeping a journal of their trades. They would record the date, time, what they traded, buy or sell, price, indicators used including levels and/or figures, trends (long, medium and short) and an overall description of why they took the trade. It was also imperative that the journal entry included notes about the trade after the event. If it made money what was the criteria, and if it was a losing trade, why had it turned out to be like this and any contributing factors.

Now comes the interesting part. Everyone of them stated that they regularly reviewed their journal (some weekly and some monthly) but everyone quite categorically looked back over past trades. No doubt learning from their mistakes and to improve and repeat on their successful trades.

Trading is very disciplined with definite rules for entering and exiting trades. These rules must be adhered to at all times and one of the rules is entering all details about the trade in the journal, making no exceptions.

I hope you will all learn something from this and if you aren’t already maintaining a record of your trades, then please start doing so from now on. Also regularly go back over your records on a regular basis.

7 Easy Tips: Trading Style and Trading Strategies in Forex Software

As you may know, Forex is a profitable but risky form of investment, which is why many investors are interested in minimizing risks by trading with the help of a Forex Expert Advisor or automated trading robot.

A trader can reap many benefits from using a FX robot. If you want to improve your profitability in the Forex market do some research and look for best option there is for you out there...

What Forex investors really want is to complement their trading strategies or to automate the task. Oftentimes new investors experience frustration when trying to find the right FX trading system, because they can't find one that suits their trading style...

So today we'll go over 7 easy tips on how to look for those automated trading robots that complement your trading style with the right set of strategies:

* When you're on the look our for your trading robot, check if the sales page says what their trading robot does or how it does it. If the website is not very clear or you can't find answers to your technical questions read between the lines the information again and contact the developers if you have specific questions...if you can't get answers I suggest you continue your search somewhere else...

* What if you want to adjust the settings in order to have more control over your trades? Depending on you degree of knowledge and trading strategies you may need more "flexibility". If you would like to have more control over your trades then your best bet could be a system that allows you to do partial manual trading and get more involved, look for a good Expert Advisor.

* Make sure that the software has the capability of analyzing the market. You have to look into the factors that make the products work.

* Some Forex robots would use bad money management strategies, so try to find out about that and avoid systems that show no solid proof of successful trades or haven't been updated for a long period of time.

* If you had bad experience with an automated system before try to get rid of the idea that all Forex trading programs are all scams. Be patient and keep looking for the ideal trading software for you.. Be determined to find the best Forex Expert Advisor there is and suits your level of expertise and trading style...

* The best forex trading system will count with a selection of different strategies that you can use in different market conditions and you need to make sure that they all (or most) suit the way that you want to trade. For example, your FX robot could have long and short term trading strategies, or one strategy for a choppy market and another for a stable market.

* Your want to focus on those systems that go along with your trading style and knowledge, and would probably work for you, and then narrow down your selection from there...

If you keep these tips in mind it will be easier for you to find really good Forex trading software...
And happy trading!

Author: Denis Marsili

Be A Forex Expert

Any one who has ventured into the real market place would definitely have an idea what a Forex is and share the many promises and possibilities this horizon can bring.

What Is Forex?

FOREX stands for the very popular Foreign Exchange Market. Sometimes, though, people associate it or equate it to mean also currencies.

Basically, forex is where people trade. The objects of the trading are the different foreign currencies. People buy and sell the currencies.

The exchange market and the trading as we know it today started in the 1970’s. It has no definite place. It has no definite location. The foreign exchange market is found wherever there is a financial center where people conduct constant exchanges and buying and selling.

To ensure definite success in this field, the main goal has to be kept in mind. The keywords to traders in the foreign exchange market are to ‘buy low and sell high.’ This is the way to get the profits coming in.

Why Are People Trading in the Forex?

More and more people are turning into the forex trading now. It has become popular once again and people want to enjoy the success this can bring.

There are also no strict requirements to join the market. Anybody can enter it and learn how to trade. Some even study beforehand to be prepared for the big trading.

Another good aspect about forex is the absence of too many fees to be able to join in. There are no commissions, no brokerage fees and no government fees.

The best thing by far is that trading can be done at home. Anyone can initiate a trade online. This spells big for people who stay at home, especially those who do not feel comfortable in engaging on online businesses. With proper training and computer with internet access at hand, success is within the bounds of the home.

How Does One Trade Successfully in the Foreign Exchange Market?

The purpose of ‘to buy low and to sell high’ must be kept in mind when trading in the forex. This will be the main vision of a trader to succeed.

The next task at hand is to know the trends. This means knowing when a particular currency will buy low or sell high. This is not mere prediction of possible turn of events.

Thus, forex requires strategies that have been tested to make sure that a decision will be profitable. There are two basic strategies employed in forex that one can learn from tutorials or from the actual exposure to the market.

The first strategy is the technical analysis.

This provides that a particular price chain reflects all the necessary information regarding the market. This entails a close analysis of the various aspects of the currency like the lowest and highest prices or the opening and closing prices.

The other strategy is the fundamental analysis.

As the name implies, it takes the overall situation. It focuses beyond the currency. It takes into account the situation of the country, economy, politics and even the rumors. Thus this requires more exposure and knowledge from the part of the trader.

Conclusion

The foreign exchange market promises so many possibilities to the trader. Many people may be interested in the forex but are only afraid to take the first step. This attitude should be turned around. Just have a good vision, take the necessary steps and make the forex venture a success.

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Forex Trading Robot - An Honest Review and Findings

A hard honest review and analysis of Forex trading robots and systems means just that. We've taken the time to look in depth at current trading systems and automated ones to find fact from fiction. What we set out to do is to find out if in fact Forex trading robots can produce consistent results.

Here's what we found:

There are loads of Forex systems being offered in the market place ranging anywhere from thousands of dollars down to a few hundred dollars. The first question we had to ask ourselves was, is one better than the other based on price alone?

We bought a trading course for $600 and compared it to a trading robot for $147. What we found is that both systems were based on a set of rules and indicators and when certain conditions were met, a trade was triggered. Both systems produced decent results, but only for a short while. The $600 system failed after 2 months of forward testing, while the cheaper system continued to produce consistent positive results. Being that both systems were designed on a set of indicators, parameters and rules, we concluded that the price of a Forex robot is irrelevant to the results. Therefore, a cheaper system can in actuality out perform a more expensive system.

Our Second Finding:

After reviewing various Forex robots in the price range of $99 to $150, we tested three of them side by side. Each had its own set of indicators and each traded on the MetaTrader 4 platform. All three produced positive results after a back test of three years, however some experienced larger draw downs than others. Given that all there produced positive results; we then concluded that the safest Forex robot to go with was the one that had the least amount of draw down in order to protect our risk capital for long term sustainable growth.

Our Overall Conclusion:

Price does not matter when it comes to Forex Robots and systems. Cheaper systems can outperform more expensive ones. Forex robots do and can work, you just have to use sound money management and at least have a basic understanding of the Forex market. Aim for a risk to reward ratio of at least 1 winning trade is equal to 4 losing trades. You will lose trades, that's a given, however if managed properly you can profit even if only you are right 25 percent of the time with a risk to reward ratio of 1 win equals 4 losers. There are plenty of great Forex robots out there today. Be sure to do your own research before you buy.

By Timothy Rohrer

Forex Options Trading - How to win with Forex Options

The Foreign Exchange market, it is the most profitable, the premier, the largest and the leading financial market in the world. Millions of people trade in this market through the internet every day, generating as much as two trillion dollars of trade daily on average. But the sad truth is that not everyone is able to take advantage of the opportunities presented by the Foreign Exchange market. More than 95% of all traders lose their money, 4% are able to generate profits and only 1% of all traders are able to make a killing. With those kinds of odds, how can you win?

There are always more than one way to crack an egg, and same thing with the Foreign Exchange market, there are more ways to make a profit in here. An alternative method is by using forex options. There are two types of forex options in this market, the first is the traditional.

Traditional option basically gives you control over certain amount of currency. By paying the contract price, you reserve the right to purchase them but not the obligation to do so. Thus, you risk less money but you receive control over it.

The second type of forex options is the SPOT or Single Payment Options Trading. Here, you will input a scenario you predict. After which you will receive a premium quote; if the scenario takes place , then you will automatically payment.

The advantage of forex options is that it involves less risk. You do not need to put in a lot of money to get good opportunities.