Forex Trading Success - Understand These 2 Equations or Lose

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Enclosed I am going to give you 2 simple equations and if you want to win at forex trading you need to understand their significance or lose, so here they are.1. How Markets Really MoveSupply and demand fundamentals + Investor perception of the facts = Price Well that's nice and simple! Yes it is but most traders don't understand the significance of the equation and try and trade the fundamentals (news stories) and think it gives them an edge - it doesn't. Its how investors perceive them that's important, they are highly unpredictable and dominated by greed and fear. Other traders think that forex technical analysis is scientific, as of course human nature is constant, they therefore think they need to predict prices but this is impossible as well and they lose. If you understand the above you will realize that trading is game of odds -not certainties and it is investor sentiment that drives prices and the best way to win at forex is to use forex charts but not predict just follow the reality of price change. The next equation for forex trading success is: Understanding + Confidence = Discipline = Forex trading successAgain a simple equation but its one again that most traders fail to understand. Trading is more about mindset than method as even if you have a good forex trading system you still have to apply it or you have no system!The fact is you won't follow forex signals or systems unless, you understand the logic and have confidence in it. When you hit a string of losses (and you will) you will only trade with discipline if you have confidence. Consider how many traders simply buy a forex signal service or system from a vendor and believe the marketing hype - that it will help them win or make them rich. What happens? They all lose as they lack confidence or discipline. Consider this fact: Anyone can learn currency trading and anyone can win - but 95% of traders lose. The reason is they fail to understand the significance of the two equations above.They don't understand how and why FX markets really move or the link between method and mindset to apply it. If you understand the above, you could be on the way to making huge regular profits. You will realize that the way to win is based on understanding what you are doing and having confidence in it - it is simple, yet most traders just don't get it - trading success comes from within. Forex trading offers huge rewards and if you keep the above in mind and work smart you could enjoy forex trading success.
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Currency Trading Systems - Getting One for Big Profits

The rise of online trading has seen a rise in the number of trading systems sold online and the first criteria you judge them on are their track records so you need to establish if it has been traded in real time and made money. Look at the disclaimer to find out - most forex trading systems carry the disclaimer below read it carefully: "CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".The above is a standard CFTC disclaimer and you will see it frequently or a similar one on most forex trading systems sold. If you have read it carefully, it means that a vendor can make up any track record they wish, in hindsight and simulate profits on a graph - this is not of course the same as trying to make money in real time in the market - not knowing the closing prices makes it far harder!Many vendors are not traders, their marketing companies. They simply try and appeal to the greed and naivety of the buyer with hyped copy and a track record that's simulated. The best way to pick a good forex trading system is to get one that has been traded, made real dollars and is audited and supported by account statements from a forex broker. Not all simulations are worthless and there are a few honest vendors trying to get started - but if you must use one, look for the following- You need to know the logic the system is based on and see if it makes sense to you. You won't be able to follow it unless you have confidence in it.- Avoid any track record that shows huge gains and very low drawdown, ( most systems that are good will drawdown by 25% or more for at least several months ) If it looks to good to be true - it is. - Never be tempted by a day trading system - day trading simply does NOT work long term. - Look at the history of the vendor and ask some questions until you are happy.- Look for a guarantee of satisfaction or your money back. When you have found one you like and understand the logic, you need to have confidence in it and trade it. Make sure you know exactly how and why you're trading system works, so you have the confidence to execute your trading signals with discipline. If you don't have the discipline to apply your trading system, have no system! This is why confidence is vital, before you start. Look at how much money is needed to start trading and calculate the worst drawdown in the trading systems history and time to recovery, i.e you joined the system at the worst possible time. Always assume your worst drawdown is ahead of you and be prepared to take it.There are some good honest systems out there and it's up to you to find them and the above simple tips will help you. Always remember there is no free lunch or easy money to be made in forex trading and you wouldn't expect there to be, with the rewards on offer.If you find the right currency trading system which you understand and can apply with confidence, you can enjoy long term currency trading success, with minimal effort. Just make sure you do your homework first.
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Forex Trading - the 10 Biggest Errors New Traders Make

Fact - 95% of forex traders lose and they will make one or more of the mistakes below, so avoid these common errors or join them, here they are:1. Trying to Predict Forex Prices Most novice traders think that the way to win is to predict where prices are going but that's simply hoping or guessing and you won't get far with that currency trading - you need to trade confirmation of trend changes only. 2. Believing Markets are Scientific Forex traders who try to predict also fall victim to the myth that markets are scientific. They follow forex trading systems based around - Elliot Wave, Gann, or Fibonacci and lose. Of course these systems all fail because if there was a scientific theory of market movement, we would all know the price in advance and there would be no market!Trading FX is a game of odds not certainties. 3. Day TradingThe most common myth of all. More novice traders try to use forex day trading systems than any other method - it doesn't work. As we have said forex is a game of odds not certainties and there is no way you can possibly work out where prices are going within a day. If you day trade the odds are against you and you will lose your money - period.4. Trading to Often Most traders think they should always be in the market in case they miss a move but this is rubbish. You should only trade when your currency trading system tells you there is high odds trade, then and only then should you execute your trading signal. 5. Trying to Buy Low Sell HighThis again goes with the trader who wants to predict prices with their forex trading strategy - but it wont work and the best moves with the best odds are breakouts. Most major trends start from new market highs and you need to learn to buy them if you want to make money. 6. Blindly Following a Vendor There are plenty of vendors selling forex trading signals and forex trading system software where if you follow it they tell you that you can make money - the vast majority are junk and come with simulated track records. Try and find one with a real track record and get ready for a long search. We can all make money in hindsight but that's not the real world.7. Trying to Trade the News If people could trade by following the news there would be a lot more winners than losers! Sure the stories are convincing but that's all they are stories. I love Harry Potter books but I don't think I can fly! News reflects the greed and fear of the herd and if you trade it get ready to dump your money quickly. 8. Making Their Forex Trading System to Complicated.Many traders assume the more inputs they cram in the better a trading system will work however the total opposite is true - cram too many indicators in and the system will break. Simple systems work best as they are more robust. 9. Failure to Run Profits There is a lot about said about traders not keeping their losses small, but a far bigger reason for losses is their failure to run profits. Traders get excited when they get a profit and the bigger it gets the more tempted they are to take it. Of course a few dips in their open equity, sees them snatch it - then what happens?It turns into a mega trend and goes the way they thought and their not in - this happens all the time. You need to have confidence and conviction to accept huge gains. 10. Over leveraging and Stops to Close Sure you can get 400:1 leverage and trades use it and place stops within normally volatility. I often hear people talk about using a 30 pip stop! Well you may as well flip a coin; market volatility will kill your equity. You need to de leverage and give a s top that's logicalFinally - Answer this question Before You Trade: If you understand you mustn't make the above mistakes there is one more question to consider before you trade ask yourself this: What's your trading edge? In other words why should you win when the vast majority of traders fail? The edge you have must be logical and you must have confidence in it, to beat the majority of losers. If you don't know what it is you don't have one and its back to your forex education.Forex can give you a life changing income if you work smart, avoid the mistakes above, get a simple currency trading system and apply it with discipline and you will soon be enjoying currency trading success.
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Forex Trading Tools: Timeless Forex Trading Wisdom And Strategie

The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political events. The purpose of this article is to present trading wisdom and strategies from some of the world's trading greats.Trading System - According to Howard Abell: The trading system gives the trader the ability to control his or her emotional states rather than allowing them to control him. A system is a disciplined method for organizing dynamic, ever-changing market phenomena.Risk Control - According to Paul Tudor Jones: If I have positions going against me, I get right out; if they are going for me, I keep them... Risk control is the most important thing in trading. If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.Psychological Makeup - According to Leo Melamed: You learn to distinguish the good traders from the bad, the successful techniques from the unsuccessful, and the good habits from the faulty. You also learn to distinguish the lover from the fighter, the winners from the losers, the serious from the frivolous, the cerebral from the superficial, and the friend from the foe. But above all, you learn that the psychological makeup of the trader is the single most critical element of success.The Easy Middle - According to Randy McKay: The beginning of a price move is usually hard to trade because you are not sure whether you are right about the direction of the trend. The end is hard because people start taking profits and the market gets very choppy. The middle of the move is what I call the easy part.Cut Back Trading Size When Losing - According to Bill Lipschutz: When you are in a losing streak, your ability to properly assimilate and analyze information starts to become distorted because of the impairment of the confidence factor, which is a by-product of a losing streak. You have to work very hard to restore that confidence, and cutting back trading helps achieve that goal.Have A Predetermined Stop - According to Bruce Kovner: Whenever I enter a position, I have a predetermined stop. That is the only way I can sleep. I know where I am getting out before I get in. The position size on a trade is determined by the stop, and the stop is determined on a technical basis.Accept the Risk - According to Mark Douglas: To whatever degree you haven't accepted the risk, is the same degree to which you will avoid the risk. Trying to avoid something that is unavoidable will have disastrous effects on your ability to trade successfully.Making Mistakes Is Part of Business - According to Bruce Kovner: Michael Marcus [another top trader] taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgement, being wrong, making your next best judgement, being wrong, making your third best judgement, and then doubling your money.Trading Forex 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 invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
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Forex Trading Strategy - Simple Tips for Huge Gains

If you want a forex trading strategy for success then these simple tips can help you make big gains. There simple to learn, easy to apply and even better will enhance your profit potential. 1. Get a Simple Method You Understand To make money at trading you need a method you understand and can have confidence in because if you do you will have the discipline to follow it. Many traders blindly follow others and lose because they haven't the confidence when they hit a period of losses to stay with the system. If you don't have the discipline to follow your forex trading strategy, you don't have one! Many traders are lazy or greedy and don't understand that confidence comes from understanding and learning currency trading for themselves. 2. Be Patient Many new traders want to trade all the time - they think the more they trade the greater their chances of currency trading success - their wrong. You don't get paid for effort, you get paid for being RIGHT and that's it. I know traders who trade all the time and lose and others who trade a few times a year and several hundred percent! 3. Look For Breakouts It's a fact that most big trends develop from new highs or lows. Most traders however can't buy these as they want to wait for a pullback to get in at a better price and miss the trade. You can make money simply by buying high odds breakouts and we have covered this in numerous other articles - check them out.4. Have The Courage To Accept Big GainsA paradox of forex traders is that most traders want big gains but can't accept them. Why? Because they can't deal with volatility, they hit a big potential trend and get a profit, the bigger it gets the more excited they get but the problem is daily swings eat into their open equity and they snatch the profit. If you are trading long term trends you can see on a forex chart that they last for months or even years and can yield huge profits - but they dip back every so often - if you don't accept this, you wont maximize your profits. You have to accept big short term swings against you, to pile up profits longer term. 5. Don't DiversifyIf you are trading a small account and looking for high odds trades don't diversify.Diversification just means you will dilute your profit potential. Instead risk as much as you can on a high odds trade and have the courage of your conviction. Forex trading success is all about taking calculated risks, with as much as you can afford at the right time. If you like the buzz of trading or you are not prepared to learn the basics your going to lose but if you incorporate the above trading tips in your forex trading strategy you can make a lot of money and build serious wealth.
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Can You Really Make Money With Forex Trading?

Forex trading sounds attractive but does anyone make any money from trading foreign exchange?At first sight, there ought to be a winner and a loser in each currency deal. But that's misleading - if I was selling you dollars and you were buying dollars from me, then there would be a clear winner and loser. If I chose to sell you $100 for the "bargain" price of $110 and you were to take me up on the deal, I'd gain $10 from the exchange.But Forex trading isn't that straightforward.The quick answer is that, yes, it is possible to make money from trading currencies. You simply have to buy at a better rate than you are selling at. Currencies move all over the place, 24 hours a day. Look at any chart and you will see this in action.All you need to do is "catch the waves" correctly!Hmm. Don't these articles always make it out to be easy when it's nothing of the sort - the same as television chefs always cook perfect meals yet when you follow their exact instructions, your food looks nothing like theirs.Undoubtedly, some people make a lot of money trading currencies. Adding 50% to your "bank" each month is by no means unheard of.You need a system to follow. And an account that will prevent you from making enormous losses if there's an unexpected movement in the wrong direction.Read a good book or two. Maybe get hold of a course - there are plenty to choose from online. Some brokers will even give you a free Forex tutorial when you open an account. After all, it's in their interest that you use their services and you won't continue to do that if you lose money every time you make a trade.Then start small.It's no good using the demo accounts that are available. Don't fool yourself, you won't make the same decisions when there's no money at stake. Watch any quiz show and see how many gambles you take at home that you wouldn't take if you were sitting in the hotseat.So put aside some money you can afford to lose. If you're thinking about putting in next month's mortgage payment, stop right now.Become unattached to the cash. It is now your trading account, not those dollars that were in your wallet or bank account.Then take calm, collected decisions.Set software up so that if a trade goes the "wrong" way, the software coolly and calmly ends the trade.Set the software up so that if a trade goes the "right" way, it also ends the trade when you've reached a profit target.Not getting greedy is probably one of the key secrets to making money with Forex trading. It's far better to get out while the going is good than to hold on, only to see the profit you would have made disappear into thin air.Good luck with your Forex currency trading and remember to stay within your comfort zone when you are playing the foreign exchange markets.
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3 Highly Effective Online FX Trading Tips For Beginners

Forex Trading involves the buying and selling of foreign currencies and can be a very lucrative business if you can do it successfully.
The Forex market runs 24 hours a day and can be traded anywhere in the world as long as you have an internet connection and an account with a dealer.
Online FX Trading profits are made every time a trader can successfully buy currencies at a low price and sell at a higher price. The difference between these two prices is the amount of profit they stand to make.
Although this is essentially what online FX trading contains, it does take skill to be a successful trader. We've identified 3 online FX trading steps to help you become a better trader:
1. Save Money with "Paper Trading"
Learning forex does not need to be a costly experience. You can actually learn how to trade without risking a penny. One popular method is "paper trading". This is basically when you write down when you would buy and sell currency without using real money.
All you would need to do is write down your buy and sell positions along with the stake you would use. From this, you can calculate the amount you would have won or lost if you had been committing real money.
The benefits of this are two fold. Apart from saving money, it also enables you to record your winning and losing decisions. This means that you can analyse your losing positions and work out why it was a loser so that you do not make the same mistake in the future.
2. Learn Using "Play Money" Accounts
Recently there have been a lot of online forex brokers that allow you to trade using "Play money". Registration is usually free and you will be given a balance to trade with.
Apart from having the same benefits as "paper trading", using accounts saves time because everything is recorded electronically and you get real life experience of using an online fx trading platform. An example of brokers that allows both real and play money accounts is Oxanda.
3. Choosing Online FX Trading Software
If you don't wish to hire a firm to assist you with online FX trading, there are plenty of software programs out there that you can use to help. These software programs are invaluable and a good one will include multiple features that will help make your online trading efforts a success.
A good software program will provide you with instant access to the Global Foreign Exchange market, and will also offer automated alerts as to the market condition and whether or not you should buy or sell in a particular trade.
A good idea is to make a list of the software programs available and then research which are the best for your situation.
Learning forex should not have to be a costly experience. The tips provided above should assist you to learn Online FX Trading quickly and, most importantly, cost-effectively.
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