Damm, I can't get this song out of my head!

Do you ever find yourself all of a sudden singing or humming in your head some song for no apparent reason? It gets stuck and keeps going round and round in an endless loop. Please say this happens to you too so I don't feel so crazy. :-)

Anyway, out of the blue I had this line pop into my head. "The lure of easy money is so hard to refuse". It is from a song called "Smugglers Blues" by Glen Fry. As some of you know, he was from the 70's super group, "The Eagles".

Anyway, his song was featured in one of the episodes of Miami Vice way back in the 80's. (seems like a second ago)

What's this got to do with trading? Trust me I am getting there!

"The lure of easy money" actually has everything to do with trading. Think about this… Would you still be interested in trading if you thought there was a salary cap of $20,000 a year? Would you still be interested if it took the same time to master as getting a doctor's degree?

The majority of traders are initially drawn into trading because they have heard of other people striking it rich and making extraordinary gains in a very short period of time. Once they hear about traders raking in thousands a day they are hooked.

I know I was initially drawn in hearing about a trader that turned a few thousand into a few hundred thousand trading things like corn, cocoa, coffee, sugar and soy beans. Heck, it sounded pretty easy to me since I used several of these products on my dining table almost daily.

Much to my dismay, I learned that making easy money trading wasn't so easy afterall. I finally realized that it was going to take a fair amount of time and some serious committment.

That brings me to the point of this article… I am amazed at how many traders I speak with that think that not only will they make "easy money", but that they can accomplish this is a matter of weeks. Its almost like they think they can just squeeze it in between their full time job, family commitments and a host of other things.

I wish it was so, but it isn't! Think about it? It takes 4 years to go to high school and another 4 to graduate college. Then if you want to become a doctor or lawyer it is another major chunk of time. The bottom-line is that we all know that things that are worthwhile take some time.

I don't think anyone would argue on the last statement, so why is it that some people think they will have this whole trading thing mastered in a few weeks or months? Here's why it takes some time…

Let me use a trading program of mine called Forex Profits. In my web-site I say that you can learn it in 60 minutes. Does that mean you will be the next George Soros or Warren Buffet after one hour?

No way! What I mean is that you will probably be able to understand all the principles of the system within that short space of time, but…

What takes time to master is learning how to apply the techniques in the real-time market place. And… There is no replacing spending a lot of "face-time" staring at your charts. This will allow you to see the ebb and flow of the market and help you get a feel for things.

Even though the trading patterns I teach are very straight forward, it still takes time to learn how to spot these trades quickly. You need to train your eyes and brain through repetition. By doing this, the trading setups will jump out at you and you will be able to pounce on any opportunity that comes along.

As motivational guru Anthony Robbins says… "There are no unrealistic goals, just unrealistic time frames." So if your goal is to make $100,000 a year, that's great and it is possible, but just don't expect to achieve this in an unrealistic time frame.

So what if it takes 1, 2 or 3 years to realize your goals? Most people don't expect to make this much their first day out of college, so why expect to make thousands after just a month of study in the markets?

If you are new to trading or starting out with a very small amount of capital, you need to be especially careful about your goals and expectations.

You can succeed, just give yourself time.

One last tip… The market will always be here, so don't be in a hurry!
Dr. Jeffrey Wilde, a trading veteran with 16 years of experience is a trading coach to over 3500 traders in 63 countries. His new blog http://www.askjeffwilde.com offers free trading articles, tips and advice. He also teaches a variety of courses found at http://www.win-at-trading.com and http://www.fastforexprofits.com

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http://ezinearticles.com/?Trading-and-The-Lure-Of-Easy-Money&id=421620

The first and perhaps most important “secret” is to realize that your methodology or approach (no matter how good) is only part of being a highly successful trader. This applies to any trading style including, day trading, swing trading or position trading.

The simple fact is that a bad trader can screw up a fantastic trading system. Conversely a talented trader can take a mediocre strategy and make money with it.

Why? Please read on and I will explain.

Many traders/investors that I have talked with think that to be a “Super-Trader” that they must possess some type of highly advanced trading techniques or software along with nerves of steel and a highly developed intuitive feel for the markets. In addition they think that these elite group, have some “inside information” that they don’t.

You will be relieved to know that the above is not necessary. There are actually only a few things that separate traders who consistently make money and those who don’t.

And here they are…

* Skilled traders find a strategy or market pattern that offers a high probability for success. They make money by exploiting this edge over and over again.

* Skilled traders never deviate from their methodology or “wing it”.

* Skilled traders never enter a trade without a entry and exit strategy. They know exactly when and where to cut their losses as well as taking profits.

* Skilled traders never ever let a winning trade turn into a losing one. The easiest way to ensure that this doesn’t happen is to place a protective stop at or a few ticks in the money once your position is up several points.

* Skilled traders never hope, pray or wish that their stock would go up. They understand that when they are wrong they are wrong and the best thing to do is cut their losses short.

* Skilled traders never trade with their emotions. They don’t allow themselves to get caught up in the latest and greatest investment hype.

* Skilled traders always have one goal in mind: To preserve their capital at all costs. They do this by never taking on too large of a position. A good rule of thumb to adhere to is never use more than 5% of your funds on any one trade. This way in the worst-case scenario the stock could drop to zero and your account would not be severely affected.

* Skilled traders never get too greedy. There is an old saying that “Pigs gets fed and hogs get slaughtered”. These traders don’t try to make one big trade that will turn them into instant millionaires. They don’t try to hit home runs, instead they understand that it is better to keep hitting singles and making smaller consistent profits.

* Skilled traders enter and exit trades swiftly and decisively.

* Skilled traders listen to no one else’s opinion concerning the market or particular trade they are in.

* Skilled traders are often contrarians. They will be buying when others are too scared to and sell when the crowd starts buying.

That’s it, the secrets to making big money in the markets. Perhaps that is a bit of a let down as you were hoping for something a bit more esoteric and complicated.

Let me assure you that if you follow the above principles that you will take your trading skills and profits to a level that you never thought possible!
Dr. Jeffrey Wilde, a trading veteran with 16 years of experience is a trading coach to over 3500 traders in 63 countries. His new blog http://www.askjeffwilde.com offers free trading articles, tips and advice. He also teaches a variety of courses found at http://www.win-at-trading.com and http://www.fastforexprofits.com

Article Source: http://EzineArticles.com/?expert=Jeff_Wilde



http://ezinearticles.com/?The-Secrets-of-the-Super-Traders&id=6503

With every passing year the interest in electronic trading is bigger, more especially trading shares and currency through Internet. A new profession came forward – this of the currency dealer. The appearance of this profession was caused by the full force of development of Internet, which enabled the exchange business to be carried over at home or at the office. The electronic platforms offered by banks and investment brokers enables all of us to go in the sea of the financial markets and to start living a difference and unknown by this moment way of life.

The development of the computer technologies, the program security and the telecommunications, as the same as the grown experience, raises the qualification level of the brokers. It it’s turn this raises the belief of the brokers in their own abilities to benefit and to lower the risk while operating. That’s why the higher level of the trading qualification leads to a higher level of trade amount.

The introducing of automated dealing systems at the eighties, as the same as co-coordinating systems in the beginning of the internet trading at the end of the nineties, entirely changes the standard methods of currency trading. The dealing systems are online computer systems which integrate the banks in a united net while the co-coordinating systems become electronic brokers. The dealing systems are more reliable and much more effective which enables the dealers to realize a bigger number of concurrent transactions. Moreover, they are safer as far as the dealers can observe the executors of the transactions. Thanks to their reliability, speed and safety, the dealing systems are playing cardinal role in the expansion of the currency business.

The using of computers is taking a substantial role at many stages in the realizing of the currency business. In addition to the dealing systems the co-coordinating systems connect together the dealers all over the world in this way building up an electronic brokers market. The new office systems are ensuring a full account report, filling vouchers, keeping secretary work, procedures of lowering the risk and they account the expense for their acquisition. The present-day program products afford an opportunity to be generated all types of graphics, adding theoretically well-grounded technical indicators and favour the dealer for lon lasting using with comparatively low expense.

The using of Internet makes the financial information about the currency markets, currency indexes and prognoses about the rate of exchange, easy accessible all over the world. Now there are many websites with financial information. A big role in the currency trading has the rate exchange. The speed of the electronic post makes it possible getting these prognoses in a moment. If you take out a subscription to such a service, you can get prognoses of rate-exchange by electronic post every day. Such a service you can find at the following address:

http://www.iforex.org
Eric Cooper is moderator of Internet Forex Club which provide to it’s members useful forex forecasting and trade recommendation service. You can join the site at the following URL: http://www.iforex.org

Article Source: http://EzineArticles.com/?expert=Eric_Cooper


http://ezinearticles.com/?Internet-and-Computer-Systems-in-the-FOREX-Business&id=5435

At the very top of the forex market are transactions which are collectively called Interbank transactions. The “Interbank” is not, as some people may believe, an exchange. Rather, it is a collection or compilation of agreements between and among the major money center banks in the world.

An example may make it easier to understand this thing we’re calling the “Interbank” market. In most larger offices or business, perhaps even in your own home, there may be several computers which are inter-connected by means of a simple network cable. Now, each computer operates independently until the moment it needs a resource, program or file from one of the other computers. When that happens, computer A will contact computer B (or C or D, etc.) and request permission to access the needed resource. If the owner or operator of Computer B authorizes it, and if Computer B is functioning the way it should be, then the needed file or program can be accessed. Within minutes, Computer A’s request is fulfilled. It works the same way in the forex market; just substitute Computer A and Computer B for Bank A and Bank B and let resources substitute for currency. You now have the machinations for the relationships that exist within the Interbank system.

By the same context, if you’ve ever tried to locate resources from a computer that isn’t united by a computer network, you probably know full well what a time consuming, inefficient, sometimes futile effort it can be. You have to search each and every independent computer until you’ve found your resource, copy it and then download it to your own computer. Regarding prices and forex currency inventory, the same issue exists within the Interbank market system. If a bank in Taiwan occasionally transacts business with a firm in Sao Paula they need to exchange their currency. In this case, it can be quite difficult to determine what the proper exchange rate between the New Taiwan Dollar and the Brazilian Real should be. Because of situations such as this, the Electronic Broking Service (EBS) and Reuters established their services. For simplicity, we’ll refer to this service as ESB.

In a way, the EBS service acts as a blanket over the Interbank communication links. Through the EBS service, Interbank members are able to see how much currency is available, and the price(s) the other Interbank participants are willing to pay. It’s important to understand that the EBS is not in itself a market nor is it a market maker. The EBS system is merely an application allowing bank members to see offers and bids from the other members.

The forex market’s second tier essentially exists within each individual bank. If you were to call your local Citibank branch, they can arrange for you to exchange your U.S. Dollar for the foreign currency of your choosing. In all probability, they will likely just move the desired currency from one bank branch to another one. This is known as a single party micro-exchange, so you are pretty much at their mercy as it applies to the foreign exchange rate you’re quoted. You can either accept their “kind” offer or shop around for a better rate. Anyone who trades in the forex market should consider paying their bank a visit, at least once, to have an idea of their quotes. Certainly, it will be very “enlightening,” if not downright shocking, to see just how profitable these transactions are… for your bank.

The third tier is the retail market. Established foreign exchange brokers such as Forex.com, Oanda and FXCM, etc. or any broker who wishes to set up a retail operation, needs first to find a liquidity provider. The large majority of these forex brokers sign an agreement with a single bank. This bank agrees to provide liquidity only under certain conditions: That is only if they can simultaneously hedge it on EBS, including their desired spread.

These spreads will be highly competitive, and that is because that volume will be much greater than any single bank patron would ever transact. Bear in mind, banks are in the business to make money, and third tier providers will almost never precisely match what actually exists on the Interbank system. Banks collect the spreads and no agreement between them and a forex retailer is going to alter their priority.

Think of retail forex as a kind of casino. Most of the participants have little or no knowledge of forex trading effectively or successfully and, as expected, they’re consistent losers. The forex broker has the house advantage because of the inherent spread system and the normal probability distribution of returns. What results, is a system that plays one loser against one winner and collects the spread. If there is a dis-equilibrium within their internal order book, a broker may hedge the exposure with their second tier liquidity provider.

Though it may not sound good, there are significant advantages to the speculators that work with them. Since it is “internal,” many features, such as high leverage on an account with only a small balance, a non-standard contract size, and commission-free transactions can be provided which may not be available through any other means.

An ECN or Electronic Communications Network operates similarly to a second tier bank, but it exists, rather, on the third tier. The ECN generally will establish a liquidity agreement with more than one second tier bank. Instead of internally matching the book orders, it just passes the quotes through from the banks, as they are, to be traded. You might look at it as an EBS, of sorts, intended for the little guys. While there may be several advantages to the model, it still isn’t the Interbank.

Article Source: http://www.uberarticles.com/articles

Our website is dedicated to informing you about forex trading offering you an advantage through the available Forex Brokers Reviews. To be a successful broker on the Forex market, you need the edge our website can give you!


http://www.uberarticles.com/articles/Article/Forex-Market-Structure/223607

I can certainly understand the fascination that many traders have with forex EAs. For those that don't know what they are, they are basically these automated trading systems that can trade the forex market without any kind of human interaction. So technically 24 hours a day, 6 days a week, as long as your computer is on and you've got some kind of internet connection, you don't even have to look at your computer,yet your account will be buying and selling. Ah.....just like our forefathers did.

Honestly, I have nothing against the concept of forex EAs, if they actually worked. I would love to spend less time on my computer and more time on my boat, but if you are forex trader, that's just not really feasible.

Let's face it. The market is too complex to just blindly let an automated robot handle your trading for you. Do you honestly think that a trading robot would be able to handle NFP news? It has no idea what analysts expected? It has not idea what the actual numbers were? It has no idea how the market is going to interpret them?

Also, have you personally ever met anybody that has had success with Forex EAs? I certainly haven't. If you have, then I would consider you to be in the vast minority. The truth is, the concept of trading hasn't really changed since the first share of stock was traded. We just happened to add a lot of needless bells and whistles along the way. I suggest you look at a simple price chart and see what its REALLY telling you before you go crazy over another Forex EA.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. He has created a forex trading education course called Trading In The Buff to help fellow traders see the power of price action.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Whats-the-REAL-Truth-Behind-Forex-EAs?&id=1730972

Many people want to know how to become a great forex scalper. They love the idea of hit and run trades where you go in and out of the market several times of the day. So, how is any of this accomplished?

Well, for starters you know that indicator menu on your charting software? Yeah, don't bother looking at that, because that's not going to help you. Scalping (or any other kind of trading style) the market requires you to actually understand the market. It's hard to do that when you've got the 5 or 6 indicators on your charts. You are too busy trying to understand the indicators, instead of the market.

Let's get a little more bare bones about this. Pull off all your indicators that you are using, so you are left with nothing but a simple price chart. Then study it. One thing should become very obvious to you after you have gotten rid of all that interference. You are seeing the market at its truest form.

When you really focus, it should become really evident where the trend is going, and as any successful trader would say, "trade with the trend".

So after you figure out how to spot the trend, its time to do a top-down perspective on this. Let's say you like to trade a 5 minute chart. Then start looking to see where the trend is on the 15 minute, 30 minute, and 1 hour chart. After you look at those charts you should have some idea where the intermediate trend is. All you have to do then, is look for scalping opportunities that match that intermediate trend.

Reading and understanding basic price action like this, should be critical to any kind of trader, irregardless of trading style and/or trading market.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?How-to-Become-a-Great-Forex-Scalper-by-Following-the-Trend&id=1731178

I think many people really like the idea of being able to trade forex without any indicators and just being able to use price action. The problem is that most traders are also intimidated by this concept. They think that price action trading involves some kind of off the charts intelligence to figure out. Speaking as some one who barely graduated from high school, I can assure you that is not the case.

All it really takes is an open mind. That's where many traders have a problem with. First off, many traders have just been trained that they have to use indicators in one form or another. That is simply not the case. But its hard not to think that way when all you see is trading software that has 1000 proprietary indicators and people selling these magical indicators that give you arrows when to buy or sell.

You need to be able to get away from that kind of mindset, and that's an obstacle for a lot of traders. To that I say, just give it a shot. RIGHT NOW, take off all your indicators that you have been so accustomed to using for so long, and just sit down and watch the price movement. The only thing you should be looking at is a simple bar or candlestick chart.

Don't force yourself into seeing something. Just watch patiently. Eventually, you will start to notice patterns. You won't need to draw trend lines or fibonacci retracements to see them. You will be able to see it with the naked eye. These kind of patterns have been going on since the stock markets opened.

I know many fundamental traders look down upon technical traders, but if you actually see these patterns, there are undeniable fundamental reasons why they are happening. So its not just a case of blindly following your charts. It's a bit deeper than that.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Is-Learning-to-Trade-Forex-Just-Using-Price-Action-Really-That-Hard?-Absolutely-Not!&id=1737908

No matter what the status of the economy is, the foreign exchange market still remains to be one of the most volatile and highly liquid financial markets in the world. To have a deeper understanding of what the foreign exchange market is all about, here is a brief definition of the term. Foreign exchange or forex refers to the trading of one currency for another. Did you know that this type of financial market averages $3 trillion in currency traded a day? Based from this staggering amount alone, you can clearly see why investors and all the other financial institutions would be tempted to dip their hands into the foreign exchange market. Now, if you are a beginner in foreign exchange trading, what are the things that you need to remember about forex trading system? How can you use forex broker reviews to your advantage? More importantly, what are the risks that you need to take if you are involved in the foreign exchange market?

Let us address these forex-related questions one at a time. First, what are the things that you need to remember about the forex trading system that you should use? Basically, this is the primary tool used by investors and traders who would like to take a part of the financial success brought about by the foreign exchange market. When looking for the best forex trading system, take into consideration the success rate of the system itself. This is when forex broker reviews online have proven to be helpful. When you check out these online reviews, you would know whether the forex trading system will tell you when and how to enter and exit a forex trade. You would also have an idea about the quality of support that you will get by subscribing to a particular forex trading system.

As you can see, consulting the online forex broker reviews is an important part of your success in forex trading. Now, after taking a look at the forex broker review sites to determine which broker will give you your money's worth in forex trading, the next thing that you should take into consideration are the risks involved in the foreign exchange market. Just as it is with any other type of financial market, there are risks involved in forex trading. This is where forex broker reviews come in handy. The live forex chat sites and forums will give you an idea about the things that you should watch out for when dealing with the foreign exchange market.

One of the risks involved in forex trading is the fact that despite the fact that it is a 24/7 market – it is almost impossible to monitor the currencies by the minute. Another risk that you need to take is that even if the principle behind forex trading seems to be quite simple, you do need to learn about the ins and outs of the market before it can turn out to be a financial success. At the end of the day, entering the foreign exchange market with an open mind and heart will give you a better forex trading experience overall.

Article Source: http://www.uberarticles.com/articles

Learn about the ins and outs of forex trading systems by browsing through our site forex trading system. Here is where you can get forex broker reviews for the success of your forex trading ventures forex broker review.

http://www.uberarticles.com/articles/Article/Forex-broker-review--understanding-the-risks-involved-in-foreign-exchange-trading/217027

If you're searching for some ways to earn a considerable profit, then you should certainly make use of the automatic forex day trading system since it can assists you in gaining some money in such a little period of time. But, for one to succeed, they'll have to gain knowledge of all the fundamentals of the forex trading market and be familiar with the mechanism behind it.

This automatic system will lessen the danger of squandering a big sum of money and it provides several vital tips on how to prevail over any horrible situation. The trader is the person that resolves how to generate money but the automated forex trading provides all the new strategy to be used.

The whole system has the ability to do the whole math for you; however, if you want to keep a manual data, then nobody will prevent you. As anyone can see, the automated forex trading will sort out the whole thing, from calculation to risk evaluation.

The automated forex trading has gained popularity and still others are looking at it. So, why there are so many groups in forex trading who are interested in this automated forex trading? Here's why:

1. Risk management: one setback for the auto system is the risk management. There is always the matter of checks that have to be completed when trades are being made. These checks have to take place in a setting where everything is well synchronized. This is a technical difficulty and can be solved when technology gets better. Aside from these two problems, there appears to be more benefits than disadvantages. Because of this, auto transactions are considered the best choice for the majority of the Forex traders.

2. One reason for the success of this system is that the transactions are carried out in real time. In manual systems, it is very hard to attain this benefit which can only be provided by automated Forex systems. Many trades occur within milliseconds and this can be a big boost for auto transactions vs. manual. Another benefit is, even when the trader is away or if they have some consecutive losses that are holding them back from making another trades, these can be helped through the use of auto trade.

3. More liquidity: Automated foreign exchange can provide traders more liquidity. This was found out when foreign exchanges had an enormous increase in trades after they begun utilizing the programmed system.

4. A better diversification: Having good choices in connection with diversification can be a plus when it comes to automatic transactions. Meaning to say, that a trader can do a trade in various markets in different time zones straight away. Another nice benefit from this advanced trading system is having models to examine the temporary data. This is an option that is not being offered in any other way. Thus, the users of this system has bigger advantage than other traders, since they can determine good trades in just a short period of time, as short as fifteen minutes to be exact.
Steve Comet, a pseudonym, is a group of experienced forex traders. Our team has reviewed all the different forex autotraders that exist, and found out the ones with make money. Check out our forex autotrader reviews

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http://ezinearticles.com/?Benefits-of-Using-Automated-Forex-Trading&id=1815498

Many people want to learn forex currency trading.They love the idea of working from the home and not having to go to their 9-5 job. I can't blame them. I know that is exactly the reason why I wanted to get started trading forex. I hated my job, and I heard from all these people on the internet that they were making a killing trading forex. It seems like a no brainer, right?

Well, one thing you should know right off the bat about the online forex trading community is that they can certainly talk the talk, but very few of them can actually walk the walk.

I'm sure if you have looked into forex, then you probably have heard this statistic. If not, you are going to right now: 95% of forex traders are losing money.

Does that mean its difficult to learn forex currency trading? Nope....not really.

The problem is that most people don't learn it. They just jump right into it like its a roulette table. There is a reason why most people lose in Vegas, and its the exact reason why most people lose in forex. They treat it as a gamble. They think that picking the right direction of a currency pair is luck.

You'll also notice many traders actually use the term playing. For instance, you'll hear traders say "how much are you playing with". Instead of using the word trading, they are using the word playing. By using that word, you can tell how they treat their money.

Also, notice how many people want a shortcut. How many people love the idea of having one of these charting packages where you don't have to think and the software does all the work for you, and tells you when to buy and sell?

Of course it sounds great, but if it were that simple, why are so many people losing money?
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. He developed his own course, called Trading in the Buff, where he teaches traders how to properly learn forex currency trading.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Learn-Forex-Currency-Trading---What-Everybody-Else-Isnt-Telling-You?&id=1636505

If I had to pick one forex trading technique above all else to learn, it would have to be price action. The reason I am saying this, is just look at the history of the famous technical traders of all time. if you read up on them, you'll know that price action is what they used.

Obviously price action means different things for different people, but the basic gist is that you can look at price movement and predict where the future of the market price is ahead.

Obviously there are other things involved, especially understanding fundamental analysis, among others. But as far as technical traders, price action is key.

Many traders really never get this far, as they get caught up with all the flashy indicators that they can play with on a forex trading platform.

I know that when I first learned about forex trading I must have tried every single toy that was on the software. I mean, I tried everything from Gann lines, stochastics, Bill Williams, MACD, price divergence, and everything else in between.

If you were able to make money using these tools, I salute you, because not too many people can.

The moment I realized that all I ever needed was to understand price movement. It was like I was using these indicators and systems to teach me the language of the market instead of learning the language myself. I implore all struggling traders to make their trading a little easier. Learn the forex trading technique of price action for yourself and see what the market has been trying to tell you all this time.
John Templeton has been a successful forex trader after learning the forex trading technique. of price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Price-Action---The-Ultimate-Forex-Trading-Technique&id=1633414

I know how hard it is to find a currency trading strategy that you can have success with. But if you look at the majority of the strategies that we see, I'm sure you could see why that's the case. For example, a lot forex traders like to go forex forums, and talk about trading strategies and see if they can come up with something good. I am all in favor of this. However, the problem that I see is that they involve a lot of heavy indicator driven systems. You read about these systems that just cover up your charts that you don't even know what you are looking at. It's no wonder why so many people fail at currency trading.

Think Less Is More. This is what I want you to do.

I want you to completely get rid of everything that's on your chart so all that is left is a basic bar chart. This means getting rid of all your bells and whistles and what you always felt comfortable trading with. Next, I just want you follow the price. This may seem very unorthodox at first, but stick with it. If you really take the time to study the movements of the price action, you will notice that there are patterns which do repeat themselves.

These are the kind of patterns which can help you predict the future movements in price. Without all the space is eaten up by those indicators, you can have a real and true understanding of market behavior. It's an uninterrupted view of the market. It's the last currency trading strategy you'll ever use. It's always baffling to see how many traders cover their charts so badly, that they can't even see this. Don't make the same mistake that the majority of the trading public makes.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. He has developed his own currency trading strategy called Trading In The Buff.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Currency-Trading-Strategy---The-Less-is-More-Method&id=1623900

It's obvious that traders love using indicators on their charts, and if there was one indicator that most traders like to use, above all else it would have to be stochastics. But does this indicator actually help your trading?

For those that don't know what stochastics are, they are basically a tool that traders use to tell them when the a trading instrument is overbought or oversold. There are a couple of different ways that they can be used.

For some, they trade when the indicator shows that it is below the 20 range, they buy because they feel the price is oversold and they are getting in at a a good price. When the stochastics lines go above 80, some traders sell, because they feel the market is overbought.

Another way many traders trade the stochastics is on the line crosses. Whenever the two stochastics lines cross each other going upwards, the trader also buys, and whenever the two stochastics lines cross each other going downwards, they sell.

And there are also plenty of traders that combine the trading rules to form their own system.

But the question at hand is, do they work???

From my experience......no. Truthfully stochastics suffer from the problem of 99.9% of all indicators. For starters, they are lagging. These type of indicators tell you what the market has already done, not what its about to do. The rules behind indicators like these, is that they are completely random. The market doesn't care about these mythical 20, 80 areas. There is no way you can predict whether a market is oversold or overbought when it hits these areas.

The other obvious flaw, is that you don't even need to look at the price to tell you when to buy or sell, since all you are looking at is your indicator to make that decision for you. These are the kind of questions you have to ask yourself when you trade with indicators. What are they actually telling you about the market???
John Templeton has been a successful forex trader after learning how to trade price action

Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Does-Trading-Stochastics-Actually-Work?&id=1697737

I know of many traders who are fascinated with the idea of trading price action, but they think the process is too complicated. Are they right? Well, if you think about it logically, aren't you complicating things more by throwing up yet another indicator on your chart? After all, its just another thing you have to look at. Using no indicators, and just trading off of a basic price chart: It can't really get much simpler than that.

But, you will have think outside the box a little. This is a lot easier for newer traders, than for people who have been trading for awhile. Veteran traders can be stubborn. They think they know it all, and think there is nothing new to see. As long as you come at this with an open mind, you should be able to see everything that you will ever need to see when it comes to trading.

First step is to just get rid of all your indicators. Don't cheat. Take every last one of them off. Then just follow the market in real time. You might not notice anything right away. But the more you do it, the more you are training your eyes.

The price always has these particular patterns that get repeated over and over in a constant basis. With the pattern, once you start to see the setup, you can start to see where the future price is headed. With enough practice, you should be able to spot these patterns in your sleep. It becomes that obvious.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Is-Trading-Price-Action-Really-That-Difficult?&id=1706072

Traders often wonder what is the best forex trading strategy? There are certainly a lot of choices, but if you read up on the history of some of the most successful traders (of any market), you'll find that the term price action comes up a lot.

Price action has been used ever since the first stock was traded in the stock market. Read the history of the famous floor trader Jessee Livermore, who basically used the price movement of a stock to tell him when to buy and sell. He became a multi millionaire just by understanding the concept of price action. What's more amazing is that he didn't even use a chart, let alone all the bells and whistles that us traders use today.

Even though the basic principle of price action, it that you do not use trading indicators, it's obviously not as cut and dry as other trading strategies. After all, two traders can be using price action in very different ways.

Some traders like to use it to spot support and resistance areas, while others like to use it to predict where the future price is headed, others like to use it for spotting the trend, or spotting when there is a countertrend. That is kind of the beauty of it. It isn't some generic, mechanical trading system, where you throw a bunch of indicators up on a chart, and say when "x" and "y" do this, I will do "z". It requires you to use a little subjectiveness and thinking outside the box.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Whats-the-Best-Forex-Trading-Strategy?---Just-Look-at-the-History-of-Trading&id=1701831

I know that many people are still struggling to learn how to trade the forex markets. If that wasn't the case, then I don't think we'd be aware of statistics like 95% of traders lose money trading. So, what I propose to you may seem a little strange, but bear with me.

First off, get rid of all your indicators. Every single last one of them. I'll never understand people's fascination with these things. I know that you think they are helping you, but the truth is, they are only getting in the way.

After you take the indicators off, just spend a day, 2 days, 3 days, whatever it takes and watch the market. Just look at a basic bar or candlestick chart, and just follow what the price is doing. Don't worry if you don't see anything right away. It's normal for that to happen. After so long trading with indicators, your eyes have got to be retrained.

It may not be obvious at first, but what you'll being to notice is price action. There are patterns inherent in the market that provide a ton of insight as to where the future price is headed. You'll begin to notice that the price stop on these support and resistance levels that you could never have gotten from any kind of indicator. You see how a trend can be spotted from a mile away. All it takes is a little practice and before you know it, you'll be laughing at all the indicators that were supposedly "helping" you trade.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Th-Best-Way-to-Learn-How-to-Trade-the-Forex-Market&id=1722912

I guess the dream of most traders is to become a millionaire trading forex. But is it really possible? Sure. Absolutely! It happens every single day. Although, if you want be the percentages, I would for every new forex trader that became a millionaire today, you've got 10 other people who have crashed their accounts. So why is there such as big difference?

Well, to become successful in trading forex, you have to be able to think outside the box. That's a problem for most.

For example most traders love gimmicks. I don't mean this as a put down, but they do. They love things like forex robots. For those that don't know, forex robots are basically automated forex systems that trade without any human interaction. Most traders also love these indicators that tell them exactly when to buy and sell.

This is not what trading is supposed to be about.

In a nutshell, that's what separates the forex millionaires from the traders that crash their accounts. The traders who are crashing their account are looking for the shortcuts. They are looking for something or somebody else to tell them what the market is doing. The rich traders just simply know where the price is headed. It doesn't have anything to do with shortcuts. They just simply understand the markets.

The best way I can describe it is, traders can look at a simple price chart with no indicators, and it just makes sense to them. While the struggling traders have completely flooded their charts with every toy at their disposal.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Do-People-Really-Become-Forex-Millionaires?&id=1729226

I can certainly understand the fascination that many traders have with forex EAs. For those that don't know what they are, they are basically these automated trading systems that can trade the forex market without any kind of human interaction. So technically 24 hours a day, 6 days a week, as long as your computer is on and you've got some kind of internet connection, you don't even have to look at your computer,yet your account will be buying and selling. Ah.....just like our forefathers did.

Honestly, I have nothing against the concept of forex EAs, if they actually worked. I would love to spend less time on my computer and more time on my boat, but if you are forex trader, that's just not really feasible.

Let's face it. The market is too complex to just blindly let an automated robot handle your trading for you. Do you honestly think that a trading robot would be able to handle NFP news? It has no idea what analysts expected? It has not idea what the actual numbers were? It has no idea how the market is going to interpret them?

Also, have you personally ever met anybody that has had success with Forex EAs? I certainly haven't. If you have, then I would consider you to be in the vast minority. The truth is, the concept of trading hasn't really changed since the first share of stock was traded. We just happened to add a lot of needless bells and whistles along the way. I suggest you look at a simple price chart and see what its REALLY telling you before you go crazy over another Forex EA.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. He has created a forex trading education course called Trading In The Buff to help fellow traders see the power of price action.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Whats-the-REAL-Truth-Behind-Forex-EAs?&id=1730972

Most courses in currency trading don't really teach you how to understand the market. They basically teach you some system where you are putting together a bunch of indicators and they tell you "if x and y happen, you buy or sell". There are thousands, if not millions of these type of systems/courses out there. Some are perfectly free, while others cost a couple thousand dollars.

The sad thing is that I bought my fair share of this garbage too, because it seemed much easier just doing what indicators were telling me to do, instead of using my own judgement. You can even say I was a prisoner of these indicators. I couldn't trade without them. I was only as good a trader as how well the indicators were reading the market that week.

I guess it wouldn't have bothered me as much if I was making money with them but I was definitely not.

I'm sure I don't have to tell you that when you are losing money trading, its very hard to be optimistic. But the thing that was bothering me the most was the fact that I wasn't losing. The indicators were the ones that were losing. I just went along for the ride.

It's the same exact thing with all the automated trading robots that are so popular right now. Instead of taking the time to learn what the market is trying to tell traders, they would prefer not to listen and just let a robot do the trading for them. If you have been making money using this method, I sincerely applaud you, because most people are not.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared. He has come up with a new currency trading course on the subject, called Trading In The Buff.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?A-Course-in-Currency-Trading---What-Most-People-Dont-Grasp-About-Forex&id=1636576

I know there is a million forex trading tutorials on how to use all the hundreds of indicators that are on your trading platform, but there are so few that actually teach about price action. For every 100 people that want to show you how stochastics work or how to trade fibonnacci retracements, you can't find too many people to teach you about how to actually read a price chart without all the gadgets.

The entire concept that people need to understand is how to trade without using any indicators. The main purpose is to show traders that all the relevant information you will ever need is in the price.

Do me a favor and pull up a bar chart on whatever platform you are using. DO NOT put any indicators on the chart. I know this is uncomfortable, especially if you are used to using them.

The next thing I want you to do is just to study it. I want you to particularly pay attention to when the markets get volatile. Notice the strong upward and downward movements and take a look at the corresponding market behavior. You will begin to notice obvious support and resistance areas that are basically the most pivotal areas on the chart.

You can tell exactly where the price is headed just by witnessing what happens in these key areas. You can tell if the particular currency will continue its trend or we are setup for a strong counter trend move. Its all there in black and white. This is something that you will not see with indicators.
John Templeton has been a successful forex trader after learning to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Trading-Price-Action---A-Forex-Trading-Tutorial&id=1648001#

It happens every single day. The great news is that the majority of them started off with very humble beginnings, before they became a forex millionaire. Now for the bad news. There are A LOT more people losing money trading forex. I would say that for every single forex trader that is hitting the big time, there are about 90-100 of them who just crashed their accounts.

So why is that the case? How come there is such a large discrepancy between the haves and the have nots in forex trading? Well, lets think about it. This may seem rather obvious, but how come more people just don't trade like the forex millionaires do? Seems rather simple, right?

But when you don't know what the successful traders do, then its pretty hard to emulate them. Fair enough. Then lets look and see what most of the unsuccessful traders do, and stop emulating them.

This may be a rather general statement, but many struggling traders love bells and whistles. They love the idea of playing around with indicators, and coming up with a mechanical system. You can go on just about any forex forum, and you'll find hundreds of threads where people are using indicators like Stochastics, Moving Averages, etc.... to come up with some kind of holy grail.

However, if you do a little reading about the most famous traders of all time, you'll know that a vast majority of them did not use indicators. Even today, when you look at the most well known traders around, most of them absolutely despise indicators.

There is a very good reason for that. These traders would rather trust their own eyes to be the judge of the market, than any of those indicators. They understand that there is some kind of price analysis that has to be done, otherwise you are just like a robot waiting for your indicators to give you a signal. The signal should be coming from within.

In summary, it is definitely possible to become a forex millionaire, however, it does require you to see the market from a whole new set of eyes.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?Can-Someone-Really-Become-a-Forex-Millionaire?&id=1779805

The more and more you look, the more you see people desperately trying to find the best automated fore trading system. I'll give you a clue where it is. It's definitely not online.

Think about what it is you are trying to find. You are trying to find something that basically says "go ahead and relax, I'll handle all your money!" Talk about your giant leaps of faith.

The truth is there is no automated system that could compare with what YOU have to offer. You have the ability to see the markets in a much more analytical sense, than any of these systems could.

Also, not to completely destroy these automated robots, but how many people have you actually seen or heard about making money with them? It's sort of like the holy grail. The phrase gets tossed around a lot, yet I don't know too many people that possess it.

Also, think of all the more successful & famous traders in the world. Do you really think that there are many of them, who would let a robot do the trading for them? I seriously don't think so.

Quite simply, the best automated forex trading system just couldn't handle all the intricacies of the market. To give you an example, think about breaking news that has just hit the market, whether it be financial, economical, or political, you know that its going to have some kind of effect on the market. Do you think that a trading robot is going to have any idea? Nope. To that piece of software, it's just another day.

If you get anything out of this article, it's this: Take time to understand the market. I know that may sound like the most obvious piece of advise you've ever heard, but you'd be quite surprised (or maybe you wouldn't) as to how many people just don't even try to.

Start today!

Take off all your indicators, and just do something as simple as watching the price action of a currency pair. You might not see something right away. But if you keep with it, you can't help but notice all the information that is being shown to you.
John Templeton has been a successful forex trader after learning how to trade price action Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton



http://ezinearticles.com/?Whats-the-Best-Automated-Forex-Trading-System---There-is-No-Such-Thing!&id=1783693

It seems like the moment a new forex trader starts off his/her trading career, the first thing they do is just blast their charts with every single indicator that their charting platform carries. I know that's what I did when I first started trading. I look back at that now, and wonder how in the world could I even tell what I was looking at? The entire chart was nothing but lines, shapes, colors, graphs, oh my!!

The day that you can trade forex without indicators is the day that you can finally say "I get it now!"

If there is one thing I have learned in my trading career, it's this: The worst thing you can have when trading is too many opinions, and that's exactly what you get when you use indicators.

You've got an MACD saying buy, you've got Stochastics saying sell, you've got moving averages saying buy, and you've got RSI saying sell. How could this not drive you completely nuts??? It's like a severe case of multiple trading disorder. In your ear, these indicators are saying "don't listen to the other one, I know which way the market is headed."

The truth is none of them know where the market is headed. These indicators are both lagging and completely random. All it is, is just a static formula that's being used irregardless of market conditions.

The real truth can be found in price action. There are no formulas involved. It's just a simple case of both seeing and understanding the market. Once you do, you can really see the power of what a simple bar chart can provide.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

Article Source: http://EzineArticles.com/?expert=John_Templeton


http://ezinearticles.com/?What-Happens-When-You-Finally-Start-Trading-Forex-Without-Indicators?&id=1790208

In order for you to be able to do well when it comes to Spot Currency Trading you need to learn as much as you can about the movement of currencies around the world. Today you can if you want actually rather than allow a broker deal with your spot currency trading for you carry it out for yourself online.

However, before you do start to trade online in foreign currency it is worthwhile learning more about the markets and the movements of these items. Also you should actually spend time learning the strategies involved by taking an course in Forex trading again these can be completed online if you want. Certainly when it comes to spot currency trading there are a number of advantages to be gained from you carrying it out online and below we take a look at what some of these are.

Benefit 1 - You will be able to access your account from anywhere in the world at any time of night and day as long as you are able to connect to the internet. You don't even need a PC or laptop to do online spot currency trading having a mobile phone with internet connection or a handheld will suffice.

Benefit 2 - As mentioned you can do your trading anywhere in the world it only takes one click for you to get access to real time Forex quotes and for you to be able to chart and track your transactions. So even on holiday and your PC is at home as long as you have your account details with you then you can log on and see how your account is doing.

Benefit 3 - The tools used in many of the online programs provide you with the opportunity to be able to analyze the markets quickly. Plus they allow you to study the various statistics collated from around the world with regard to this form of trading and how the Forex market is moving.

Benefit 4 - You have the opportunity to record how your trading is going through using special software. This will not only show the volumes at which currency is being traded but what other activities are taking place in this particular market. Not only does it help you keep meticulous records of everything that you do, but will help you to better understand how the market works and so gain even more knowledge about the subject.

Benefit 5 - When it comes to online Spot currency trading you are not restricted to the amount you invest in your trades. In some cases there are a few online brokers who will allow you to invest as little as $50 in your trades.

However it is important that if you intend to do online Spot currency trading you choose a firm that has sufficient leverage and investment capabilities. If you don't then you will quickly come to realize that your chances of making a profit are greatly reduced. Before signing up to any of these online services make sure that you get some testimonials and references for them first.
Find out more about the ULTIMATE training program to learn spot currency trading online, see http://www.fxhood.com.

Article Source: http://EzineArticles.com/?expert=Will_Hopgood


http://ezinearticles.com/?5-Benefits-of-Spot-Currency-Trading&id=1704718

The Forex market is said to be one of the largest exchange markets in the world today and is gaining in popularity as we speak. Certainly the reason that many people have now chosen to invest in this market over many of the others is the chance of earning some decent profits from it. However, if you are just starting out trading in this particular market is not easy, but there are several Forex trading systems around that can assist you.

Many people who trade on the Forex market understand how important it is to have the right trading strategy in place. Plus they need to learn how to manage the money they are investing in this market effectively. But things can become difficult when a trader allows their emotions to guide them rather than their head.

But using a Forex trading system will offer you the opportunity to trade on this market without having to deal with the emotions. Actually executing any trading actions is much easier as you have the use of fixed prices levels with initial stop loss and trailing loss computations to use. The system works out just how much you will make or lose before you actually risk any of your money in the market.

If you use such a system you can then plan your trades to ensure that you make the right moves which will result in you making a profit rather than a loss. However, if you do happen to make the wrong kind of move the system will show you where it was made and you can extract yourself from the situation before your losses become to vast. In fact with these systems you are protecting yourself against large losses and instead making sure your lock in more of the profits because you win the trades you place.

When it comes to deciding which of the many Forex trade systems to use there is plenty of advice available online. It is worth spending a few hours looking at the various systems available and reading as many reviews as you can on them. Ideally look for reviews and testimonials provided by traders who are currently using the system or have spent some time trying the system out. Another place to find out which systems are the most useful is to join one of the many forums where you can openly discuss with others the pros and cons of each of the systems available.

Another thing to look for when considering what of the Forex trade systems you are going to use is find those that allow you to try them out. Those that offer you a trial period will provide you with enough time to get a feel for the system and to understand how Forex trading works. Plus you will soon find out whether it meets your particular requirements and will help you to make rather than lose money when you do finally start trading in the Forex market.
This forex trade system gives you access to watch a 20 year veteran Forex trader LIVE. Check it out at http://www.fxhood.com

Article Source: http://EzineArticles.com/?expert=Will_Hopgood


http://ezinearticles.com/?A-Forex-Trade-System-Can-Help-You-Succeed&id=1792973

There are plenty of different Forex systems one can use which promise to make you rich. However, it is important that you spend a little time doing some research into the various ones available and to read as many Forex system reviews beforehand. This is a great way of preventing you from wasting money on a system that promises but delivers very little.

If you carry out research beforehand then you will be far better informed and so make a more sound and informed decision as to which system you should buy. There are plenty of systems available but the automated ones are proving very popular these days and come with a wide number of advantages.

1. Firstly with an automated system you will have removed the fear that you will often experience when you are trading live using a manual system. These systems not only allow you to trade on a consistent basis but you don't have to hesitate before you make a trade.

2. Next you don't actually have to be present when the system is trading for you. So the chances of you missing out on trading opportunities have been greatly reduced. This in turn means the chances of you making a profit are greatly increased.

3. If you feel able to you can actually diversify your trading by using a number of systems. Doing this you are actually spreading out the amount of risk you are taking and helps to keep your equity line more equal.

In order for you to use these automated Forex systems you need to have an Mt4 Trading Platform. Once this is installed on your PC then you are ready to down load the system you want onto it as well. Below we take a quick look at two automated Forex systems that are worth considering using.

Shark EA Automated Forex System is designed to watch 12 indicators, pivots, fibs, and support and resistance levels on a number of time frames in order for it to make a trading decision. Each trade that it makes is secured by a fixed stop loss and on average it will carry out 2 trades each day and comes with a win ratio of around 85% on all trades made. It enables you to set the level of risk you make on each trade and it is recommended by the designers of this product that you set it between 1 and 3% of the equity you intend to invest.

Griffin EA Automated Forex System in an intra-day one and again will make between 1 and 2 trades for you on each trading day. However the percentage of win ratio is slightly higher than that for the Shark EA system being 89% but it uses much higher time frames to be able determine in which direction the market is moving. As with the Shark EA system there is a fixed stop loss setting and you are able to determine what percentage of your equity you wish to risk. With this particular system it is slightly higher than the Shark one being between 2 and 4%.

Above we have given you details of two automated Forex systems that people are now using to trade in this market. However, it is important that whether you use a manual or automated Forex system that you spend time researching each one you are considering. There are plenty of sites online where you will find good quality Forex system reviews to read and digest.
Stop looking at forex system reviews! You can get an automated expert advisor and access to watch a veteran forex trader make trades in real time at http://www.fxhood.com

Article Source: http://EzineArticles.com/?expert=Will_Hopgood

http://ezinearticles.com/?Forex-System-Reviews---What-to-Look-For&id=1796950

The currency markets or other names it is known by, such as; Forex, FX or the Foreign Exchange Markets have existed since one country or region stated trading goods or services with each other. After the goods where exchanged for the currency of the local economy, the merchant needed a way to convert it back into there local currency. Thus the beginning of the Forex markets.

The present markets operate world wide in every country on the globe where currency of each and every country are bought and sold daily. The value of a particular currency can and will go up and down throughout a day based on many factors. The currency markets operate approximately 5 ½ days a week and are open somewhere in the world at all times on those days.

Reasons to Invest in the Foreign Exchange Markets:

1. The ability to leverage relatively low amounts of investments and control large sums of currencies.
2. Most Forex brokerage firms don't charge commissions to execute a trade
3. The ability to buy and sell at will due to extremely large market.
4. Unstable markets provide conditions where knowledgeable investors can make vast sums of profits.
5. The ability to limit risk though the use of available tools.
6. It does not matter if a currency is raising or falling, you still are able to make money.

Trading In the Forex Markets:

The name of the game in any investment is to make money. In other words, you want to buy low and sell high. Investing in the FX is no different. The vast majority of the investments are made by people or institutions which have no intention of every actually taking possession of the currency. They are simply attempting to use educated guess to determine which direction a currency is going to move and make a profit from it.

Currencies are always traded in pairs. One might sell US dollars and buy Euro's or vice versa. Remember, to truly make a profit in the currency markets you must have a plan to get the profits you have made back into your own countries currency. Let's say you live in the United States and make an investment in Euro's and own them at a later date. Your next trade could be in Japanese Yen, where you also made a big profit trading the Euro's for the Yen. What do you do now; you live in the US and can't spend Yen. So, a very important long term consideration for any currency investor is how are they repatriate there profits into there home countries currency.

A very common measure of an investment is called, the Return on Investment (ROI,) Regardless of whether you're investing in currencies, real estate or a business venture this is a very important consideration that must be considered in all investment transactions. There are very safe forms of investments that are considered risk free, such as US Treasury Bonds. For an investment in a currency to be considered a good investment you should be able to receive a profit that more than marginally exceeds an investment in US bonds.

The Major Currencies and how Exchange Rates are Determined:

There are five major currencies that are traded most often. They are the US Dollar (USD,) the Euro (EUR,) the Japanese Yen (JPY,) the British Pound (GBP,) and the Swiss Frank (CHF.) There are certain foundations that also consider the Australian Dollar (AUD) a major currency. At some point in the near future, at least we hope the Chinese government will remove the restrictions presently placed on the trading of there national currency and allow it also to be freely traded.

As we mentioned earlier currencies are always traded in pairs. The initial currency in the pair is called the base currency and the next currency is named quote or counter currency. The base currency is the denominator and the counter or quote currency is thus the numerator in the ratio. The value of the base currency is always one. Thus the exchange rate is how many of the counter currency must be paid to buy the base currency.

The bid price for a counter currency is always lower than the ask price. The reason for this is that the bid price, which represents how much will be received in the counter or quote currency when selling one unit of the base currency, is always lower than the ask price, which represents how much must be paid in the counter or quote currency when buying one unit of the base currency.

An example of a trade might be the following. A trade of EUR/USD bid/ask currency rates at your bank may be 1.1015/1.2015, representing a spread of 1000 pips (also called points, one pip = 0.0001.) The smaller the spread the better for the investor. The reason for this is that in order to profit the currency needs to make a smaller movement.

The Advantages and Disadvantages of Margins:

The term "Margin" is essentially a loan by a brokerage firm to an investor that is a client of that firm. As with any loans, interest is paid on that loan. The longer the loan is outstanding the higher the interest expense associated with that loan.

There are many ways the use of margins can work against a currency investor. In fact, the number one reason novice investors fail to succeed in the currency markets is there lack of knowledge of margins. The good new is that margins can also work for the investor and produce extremely large profits with a very small investment.

Learning how to make margins work for you as opposed to against you is one of the most important concepts a Forex trader must understand. Fortunately today there are many exceptional Forex courses that instruct this vital concept in detail.

An example of how this could work against is when an investor takes a long term position in a currency utilizing a large margin. If they were to hold that currency for a few months and make a small profit when they sold they could still lose money on the investment due to the interest expense associated with the borrowed funds, called margins.

It is of the utmost importance if you intend on trading the currency markets that your understanding the benefits and pitfalls of the use of margins is at the highest level. There are other techniques that can be utilized instead of margins that can also produce the same large profits with a very small investment. If for no other reason than understanding margins a new trader would be wise to enrol in a course that teaches the ins and outs of there use.

How to use Leverage to Finance your Forex Trading:

Of course the use of margins is one way to leverage a relatively small investment into large potential profits as we discussed earlier. But, the are significant risk with this method and it should be understood at its highest level to be utilized successfully.

There are other Methods you can Utilize Leverage to Increase your Earnings:

1. Forwards
2. Futures
3. Options
4. The Spot Market
5. Spread Betting
6. Contracts For Difference

The Spot Deal:

With this type of transaction an swap of currencies is made. The current market price is the spot rate, which is also some times called the benchmark price. This types of swaps are not required to resolved right away. There is a value or settlement date and is usually the second day after the deal has been made. This period permits the time required to exchange funds from one bank account to another which could be located anywhere in the world.
We have researched, tested and reviewed 100's of Forex Training Courses, Software Systems and Brokerage Firms. We kept the best and eliminated the rest for you to examine at TOP RATED FOREX PRODUCT REVIEWS.

For the internets MOST comprehensive FREE Forex learning tools, which included 100's of FREE training articles and FREE tutorials check out FREE FOREX TRAINING. Good luck on the trading floor today! William R. Alheim, Jr., CPA, MA

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It seems like the moment a new forex trader starts off his/her trading career, the first thing they do is just blast their charts with every single indicator that their charting platform carries. I know that's what I did when I first started trading. I look back at that now, and wonder how in the world could I even tell what I was looking at? The entire chart was nothing but lines, shapes, colors, graphs, oh my!!

The day that you can trade forex without indicators is the day that you can finally say "I get it now!"

If there is one thing I have learned in my trading career, it's this: The worst thing you can have when trading is too many opinions, and that's exactly what you get when you use indicators.

You've got an MACD saying buy, you've got Stochastics saying sell, you've got moving averages saying buy, and you've got RSI saying sell. How could this not drive you completely nuts??? It's like a severe case of multiple trading disorder. In your ear, these indicators are saying "don't listen to the other one, I know which way the market is headed."

The truth is none of them know where the market is headed. These indicators are both lagging and completely random. All it is, is just a static formula that's being used irregardless of market conditions.

The real truth can be found in price action. There are no formulas involved. It's just a simple case of both seeing and understanding the market. Once you do, you can really see the power of what a simple bar chart can provide.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

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In normal life working hard and being clever can often mean you make more money but in Forex trading neither apply or will make you money, just understand the following if you want to win...

Why You don't need to Work Hard

Anyone can learn Forex trading in a few weeks and make money in 30 minutes or less per day. You don't need to work hard you need to work smart get the right Forex education and apply your knowledge with discipline.

It doesn't matter how long you take to generate your trading signal you are judged only on the result.

Many traders work hard, lose and think the more information they have the better and there always swapping systems etc where they should just get one and stick with it.

Why You Don't need to be Clever

It's a fact anyone can learn Forex trading and simple systems work best as the market is based on odds - in fact its very similar to playing poker, you play the odds correctly and win.

Why Keeping it Simple and NOT Working hard is the Right Way

More top traders in the world come from a background of poker than they do mathematics and these guys make a killing - they keep it simple and play the odds and if you do to - you can win.

The Forex markets haven't changed in 50 years and the same ratio of losers to winner's remains, despite all the advances in forecasting and education which leads to an obvious conclusion it doesn't help.

Forex trading is hard because you need the discipline to apply your method and this means keeping losses small as the market hands you a losing period - this is where most traders fail and you need to get the right mindset to succeed.

Its mindset rather than working hard or complicated methods which is the most important trait when seeking Forex trading success.

Work smart, keep it simple and have mental discipline and confidence and you can win at Forex.

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For free 2 x trading Pdf's, with 50 of pages of essential info on successful Forex Trading From Home visit our website at: http://www.learncurrencytradingonline.com.

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When you look at most Forex robots the gains are so big and drawdown so small there laughable. It's obvious why most systems lose and you only have to look at one key point to see why and we will discuss it in this article...

Look at the track record and then hunt around for the warning and disclaimer and chances are you will find this:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.

So its not real money, it's a back test. I don't need to tell you how flawed this is in terms of indicating future profits - real trading not knowing the closing price is a completely different and harder game to play.

If you think about it your average simulated Forex Robot costs 100 dollars and claims to give you access to a regular income and trade the markets like a pro with no learning curve necessary - well life is not that simple or easy.

No serious traders I know would consider using a robot with made up track record and if you do then let me know if you make gains in line with the simulations presented.

If you want to make money at Forex you can but don't use a Forex trading system with a simulated track record, go for the real deal of real dollars made in the market.

Even if you do find a good system, learn how and why it works so you have confidence to follow it through periods of losses until you hit a home run.

Winning With a Forex Trading System and a Free one For Big Long Term Gains!

Long term an automated Forex trading system can make you healthy profits just avoid the simulations and go for real time performance or you will end up disappointed and an equity wipe out.

If you want to check out a great Forex Robot that's FREE and made big real time profits, check out the 4 Week Rule, its easy to use and understand and has made millions for savvy traders for decades.

FREE! Essential Trader PDF's and FREE Forex Robot

For more essential forex trading advice and a FREE Forex Robot System and an exclusive RISK FREE Forex trading Course visit our website.

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You will see a lot of Forex scalping systems advertised and they all claim they can make big gains but which do and which don't? Check a simple point and we can reveal the answer...

Check this key point before you consider buying any Forex day trading or scalping system.

Look at the track record and see if it has the words "hypothetical", "back tested" or "simulated" written on it and immediately discount it, as its not been traded for real and has been done on past data knowing the closing prices and thats easy so pass it by and guess what?

You're probably thinking well, all I need to do is look for one with a proven real time track record. Of course this is true - but get ready for a long and fruitless search.

You won't find one with a real time track record over the longer term (say 2 years) I have been looking for 25 years and not found one, so let me know if you do.

The reason of course why you won't find one is simple - in today's world of instant communications and volatile price action, you have random volatility in a day and you cannot predict the price in a few hours or minutes and to think anyone can you would have to be able to work out the following:

What millions upon millions of traders, who all use trading different methods, who all have different skills and most are influenced by their emotions, are going to do in a short space of time and the task is impossible.

That's why you never see a real time track record on any system sold online.

If You Want to Win

Trade time periods where you can get the odds on your side and that means long term trend following or swing trading.

Both methods have their merits and both can make you money as you have a long enough time period to calculate the odds so focus on these two methods and pass by Forex scalping systems with their simulated track records - simulations will not turn into real profits.

NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info on the Mindset for success and more on Learning Forex Trading Online visit our website at: http://www.learncurrencytradingonline.com.

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Well if you do, you're in for a reality check and a loss of money. The reason is obvious and it's enclosed. If you want to know why your odds on to lose with these systems read this article...

The vast majority of Forex robots claim you will make a consistent income with no experience for paying $100.00. of course if this was true and they worked, the vendor wouldn't need to sell it so cheaply they could sell it for millions of dollars, not $100. In addition the whole world would be trading for a living and not working because for $100 you can get an income for life - but this has not happened. Why?

Because the track records these robots present are not real gains at all, they have never actually made any real profits - the track records are back tests and that doesn't mean you will make the same money in real time.

So what's a back test?

Well it means you get all the closing prices buy and sell where you wish (knowing where the prices settled) and make some profits. Now you can do this and so can my seven year old cousin - but does this mean that going forward, the track record will repeat. Try it and see and get ready for a wipe out of equity.

The problem today is people think that Forex trading is a walk in the park and easy. They believe the slick advertising copy, telling them they can make money with no effort and get an automatic income; this is of course fantasy, not reality.

They don't think to ask the obvious question - if an automated Forex trading system makes countless thousands in profit per annum - why is it so cheap? The vendor could shut up and make himself rich or take it to a major institution and sell it, for countless millions - but they don't. Instead they fin naive or greedy traders online who believe the hype instead.

Check any of the heavily advertised robots online and the track records, are aways just paper simulations and paper dollars can't be spent and are of no use - its real cool, hard crisp dollars made in the market that are important and the hyped robots haven't made them.

If you want to win at Forex trading forget the hype and the easy profits and get a sound Forex education and win.

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The Forex Robots you see advertised heavily online simply don't work and some of the claims are ridiculous. Let's look at why they don't work...Most traders who buy these automated trading systems never ask the obvious question which is why don't they come with proof of performance?

None of the heavily advertised ones do they simply come with a back test simulation done in hindsight knowing all the closing prices so there made up!

It's pretty obvious these simulations will never repeat, as you don't have the luxury of the closing price in advance when you trade.

I Saw one Automated Forex trading system saying it had never lost a trade EVER! Another I saw offered a track record of several hundred percent per month in profit with losses of under 1%, no one achieves this, not even the best traders.

Of course if they did work they would be bought by major financial institutions for hundreds of millions of dollars - not $100. The reason there so cheap, is they simply don't work and while they may have fancy packaging and names that imply they teach the Forex market a lesson, they don't.

The rise of online trading has seen lots of new people wanting to trade and the robot vendors take advantage. The newbie traders think there going to get rich quick with no effort and lose.

If you want to win at Forex Trading understand this:

You need to get the right Forex education and work. You don't get anything for nothing and you wouldn't expect to in Forex as the rewards are so high. If however you are prepared to work hard no other venture can offer you the rewards that Forex trading.

FREE ESSENTIAL FOREX TRADING PDF's! + SUCCESSFUL FREE TRADING SYSTEM

For a complete resource on how to win at Forex trading and 2 Essential FREE Trader PDFs and an exclusive RISK FREE Forex Trading Course visit our website.

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Is FAP Turbo software a scam? Many Forex trading software sold on the internet may show outstanding back test results. But in actual fact, these software lose a lot of money when they are trading live. This is because some of them are programmed to fit past results, and this will not make them more successful during live trading.

To be honest, FAP Turbo made me really skeptical at first. Its back test equity curve is really smooth and looked too good to be true to me.

Factors Used to Evaluate the FAPTurbo Software

Winning Percentage

When evaluating this software, there are several key factors that can be used to judge its profitability. The first factor is the winning rate of the system. This refers to the percentage of winning trades that the software makes. FAP Turbo's winning rate in the past 9 years has been 95% on average, and live testing is showing an even higher success rate.

Drawdown

Another important factor is the drawdown of the system. This is a percentage figure that tells me what is the maximum % of capital that FAPTurbo has lost. Typical Forex trading software has drawdowns of 10% to 20%. FAPTurbo's drawdown is 0.35% which explains why the equity graph is so smooth on the statement page on its website.

Can You Really Trust the Back Test and Live Testing Results on the FAP Turbo Site?

After looking at the historical results and its live trading performance, I am starting to see that this software trades in the direction of the long term trend, and the patterns of trading between back test and live testing are very similar. This shows that the robot is running with the same rules and therefore the proof results are reliable.

Is FAP Turbo Software a scam? Find out how it works at http://www.squidoo.com/fapturbo-scam and read a FREE report about this Forex Robot!

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I am sure that you have heard of the Forex Massacre System by Steven Lee Jones. Now He claims that his system exposes one of the easiest and most consistent ways to make money from the currency markets. It seems like there are new Forex systems being developed every day, yet from my experience from using them, only less than 10% of them can consistently generate profits every month.

Why Use a Trading System Like Forex Massacre?

Before this information age that we are living in now, Forex market trading was only accessible for large financial institutions and banks. Today, it is possible for anyone to make money from currency trading with only a computer and an internet connection in the comfort of their own home.

Using the trading system in Forex Massacre, I am now able to make money from home by simply trading. The amount of capital needed to start trading with my broker is only $500, and this amount may be less for other brokers.

How Does Forex Massacre Work?

This trading system is quite unique in that, unlike many average Forex systems, FX Massacre looks to trade trend reversals using a reliable indicator that picks up signals of changing buyer and seller behavior. It has proven to work with many currency pairs, and I find it very easy to find signals using the techniques in this system.

Testing Results of Forex Massacre

This system has generated a consistent profit for me, but do take note that you will not be making money every day with it. Price reversals do not happen every day, but when it does and FX Massacre finds an entry point, I am usually confident that the price swing will be huge and the pips gained are quite substantial for every trade.

Is Forex Massacre a scam? Find out how risky it is at http://www.squidoo.com/forexmassacrescam and read a FREE report about this Forex System!

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Forex trading is a very good business with a very high potential for profits, and if carried out right you could grow a small investment of $500 into over $3,000 in less than 6 months.

Making a profit online can be hard, and although the internet holds a great potential for business the truth is that a consistent success will come slowly, and that is only if you out your back into it enough.

If you take on affiliate marketing or e-tail you are certain to see some great results in the long run, but that will not exactly translate in short term profits neither it will be a passive income, which is why Forex trading has become the best way to generate a steady income with little effort.

Of course you might think -and you would be right to do so- how could I possibly profit from Forex trading if I have no idea what Forex trading is in the first place?

Well, the good news is that in order to make a profit trading within the Forex market you do not have to be an expert anymore, although it will always help if you are one.

The thing is that even the experts are ever more reliant on technology - Forex software- to carry out their Forex trading operation and increase their profit potential. That technology, once exclusively available to big banks, brokers and institutions, has slowly started to become available for people like you and me.

Of course, there is a great number of Forex software out there, and not all of them are reliable enough to ensure your will profit Forex trading with them, because many of them do not have the ability to adapt to an ever changing market.

So, the secret to make a profit Forex trading is not being an expert trader anymore, but having the best technology available to help you perform like one.

You can find detailed information about tested forex softwares and system at this site: The Special Online Business Review Authority.

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http://ezinearticles.com/?Learn-How-Anyone-Can-Profit-From-Forex-Trading-Online&id=1545938

I am sure you have heard and read everywhere that it is quite easy to make a profit forex trading and that this the best way to generate a passive online income.

Some of that is true, as forex trading can really be easy, but it also can be painful if you are not properly equipped to manage the risks involved in this business thus avoiding losses.

Also, there is some truth in the fact that forex trading can become a stream of passive online income, but that will depend greatly on how you choose to carry out your forex trading operation.

First of all, if you want to make profit forex trading, you will want to either be an expert trader or have very good forex toolbox by your side.

Secondly, if you want forex trading to become a passive online income for you, you will not only need to have that forex toolbox, but you will also need to make sure that you have thrown a reliable automated forex software in it.

Indeed, forex trading can make you a lot of money rather easily, but only if you have an investment plan or at least the ability to execute one. This goal can be achieved based on your skills as a trader (if you have expertise in the field) or with the use of forex softwares and systems.

Some of these forex softwares and systems have the ability not only to analyze the market movements and spot a good opportunity for a profitable trade, but also to place and close trade orders all by themselves, which means that your time dedication is virtually reduced to zero while you are still making a profit forex trading.

A few of these fully automated forex softwares really work very effectively, and they are definitely the answer if you are looking to create a stream of passive income online through forex trading.

So if you want to make a profit forex trading while creating a passive online income, you should get yourself one of these softwares. However, before you do I recommend you to read this review so you can make an informed decision: http://www.specialonlinebusinessreviewauthority.com.

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