Currency Trading Education - 6 Common Novice Mistakes That See Traders Lose
By: kelly price
Currency trading education is all about getting the right information but most traders believe myths or base there trading strategies on logic which is not correct and lose. Here we look at some common mistakes, you must avoid to enjoy currency trading success...
One of more of these mistakes are made by the majority of novice traders so lets take a look at them, there in no particular order of importance to avoid - there all important!
1. Forex Robots and Expert Advisors make Money
You have seen them advertised, promising to double your money each month with no effort and all you do is pay a hundred dollars or so for an income for life.
They don't work and if you use one these systems you will lose very quickly. If making money was as easy as the robot vendors claim, no one would work and everyone would trade for a living.
2. Day trading and scalping Work
All short term volatility is random and there is no way you can get the odds on your side and win because of this. Trading short term moves is a loser's game - it looks low risk but you are guaranteed to be wiped out.
3. Markets can be Predicted
Prediction is hoping or guessing and you won't get far doing that in any venture in life and that includes Forex. The far out investment crowd love the theories of Elliot and Fibonacci which claim they can predict the future - but if they can do this, why do they ever get a trade wrong? Never predict, trade the reality of price change and you will have the odds on your side.
4. You can Trade breaking News Stories
News is discounted by the market instantly.
The news itself is not important it's the investor's view of the news which is and everyone may see the same facts but they all draw different conclusions from them. Markets always fall when the market is most bullish and rally when it's most bearish so never trade news stories.
5. Working Hard or Being Clever Guarantees Success
Forex trading suits a simple approach as it's an odds based market. Over complicate your trading and your Forex trading strategy will have to many elements to break. Don't work hard, work smart - effort may make you more money in a normal job but not in Forex.
6. Leverage is the Key to Big Gains
Yes it is but more novice traders wipe themselves out due to over leverage than any other reason. You can get 200:1 leverage with any broker now but novices should start with NO leverage at all, until they are comfortable with there trading and use no more than 10:1 after that.
Work Smart and Win
The above are all common and avoidable mistakes, so if you want to enjoy currency trading success, avoid them and get a good solid currency trading education which is based on sound logic and avoids the myths of Forex.
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How to Give World Class Trading Powers in Thirty-two Seconds
I wanted to title this presentation, How to Give World Class Trading Powers in Thirty-two Seconds, just because I thought it was sort of snazzy and I thought that might be al little misleading. We are going to talk about how best to use the membership website. I am going to give you a little bit of an introduction to me; information that wasn’t necessarily in the letter that most of you saw. We are going to be going over some of the opportunities that I see in the Forex right now; a couple of details that have to do with the meta-trader program.
Unfortunately, one of the things we have to deal with meta-trader is that I don’t control it so I have got a way to get you technical support and your questions answered with the updated versions. So we will be dealing with those meta-trader issues. Then I am going to walk you through exactly what I do in twenty minutes to get ready for the market. Hopefully by the end of this presentation, you’re going to have a better understanding on how to use the membership website. You are going to have a better understanding on how to use the membership website to duplicate these world class trading powers that I am talking about. I am also going to give you a couple of very advanced, although simple, learning technologies tips for actually going through the course.
A big part of the course is you are going to see exactly what I am doing. I am going to give you the game plan that I have every single day that I am trading for the markets. My personal goal is to really give you retire. Here is what that means. In my mind, somebody who is retired is completely independent. They are not dependent on a boss. They are not dependent on the business. They aren’t even dependent on their own decisions with their money because that has all been taken care of. Okay? So what does it mean to be retired in the market? That’s what we are hopefully going to have answered for you by the end of this presentation.
Mac X is recognized as a forex expert trainer, forex trader and author of three best-selling forex trading books and Home Study Courses including "How To Get Filthy Stinking Rich Trading The Forex" book and Home Study, "How To Trade The Harmonics of The Foreign Exchange Markets". Mac X has trained over 1,300 students in large forex seminars, one-on-one and small groups. Read Mac's Forex Blog for more Forex Trading information at TheInsiderCode.com.
Investments Article Source: http://www.eArticlesOnline.com
Forex Trading Strategy - The Easiest Trading Method for Novice Traders
By kelly Price
If you are a novice trader perhaps the easiest forex trading strategy to use is a swing trading strategy as it overcomes two problems that most novice traders face but cant overcome.
By using a swing trading strategy not only can you overcome these problems, you can give yourself a great chance of currency trading success.
Let’s look at this forex trading strategy in more detail
1. Patience
Most novice traders lack patience and they think the more they trade the better.
Most go for forex day trading which is probably the best way to lose money you can get – day trading simply does and cannot work, due to the fact all short term volatility is random.
You can never get the odds in your favour and you can never win – PERIOD.
Other traders however lack patience when long term forex trend following – they simply cannot accept the profits it wants to give them!
We all want profits – but when you sit on a long term trade and see open equity dips of thousands of dollars the temptation to take it is huge and most novice traders bank profits far to soon.
If you are forex trend following you need to take a bit more risk and that means hanging on for longer term gains.
Most traders simply don’t have the patience and discipline to do this and it’s hard even for pro traders.
Swing trading when incorporated in a forex trading strategy overcomes the problem.
You are looking at making profits in periods of 3 days to a few weeks, so you are never holding a position for long periods, and there are plenty of opportunities to keep the trader interested and finally, stop loss protection can be tight keeping risk low.
Forex swing trading is easier than long term trend following as you don’t have to be so patient, it’s easy to maintain discipline, which is the key to big forex gains.
2. Swing Trading is simple
Swing trading tends to be quite simple to learn.
All you need to do is look at support and resistance and use some momentum indicators to time your trades.
One or two timing indicators are all you need to judge price momentum as it moves into test support and resistance and your all set to swing trade.
Being simple to understand is a big advantage, because from understanding comes confidence and from confidence, flows discipline – the key to successful trading is having the disipline to foloow your plan through periods of losses and is a trait all succesful traders have.
So if you want to trade currencies then try swing trading its simple, easy on the mind and can be very profitable.
Consider it as part of your forex trading strategy and let it help lead you to the currency trading success you desire.
About the author:
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Forex Trading – If 95% Of Traders Lose Then To Win You Need To This:
By: Kelly Price
Do the opposite of what they do! This may sound obvious but most traders like to follow accepted market wisdom and trade in the direction of the crowd. If you want to win at forex trading you need to step away from the crowd – and that’s what this article is all about.
In terms of following accepted market wisdom like day trading, buying low – selling high and predicting the market, these are 3 examples of how to lose when devising a forex trading strategy and if you don’t know why read our other articles!
Here we want to focus on taking trades that the majority take and see their equity slaughtered and how you can trade in the opposite direction at the right time.
FACT:
If you buy into extreme bear markets and sell into extreme bull markets, as greed and fear blinds the participants to the reality – you will win.
Not only that - but you will trade with low risk and high reward.
It’s a fact that humans push both bull and bear markets too far and if you can spot these extremes and hit the turn you will rack up fantastic gains with low risk.
But How Do You Spot Them?
There are of course forex charts, where you can use technical analysis to look for price spikes - but this does NOT tell you how bullish or bearish the participants are - it just shows you price spikes and trends.
What you need are some sentiment indicators that show how much emotions are moving prices and when the turn is coming.
The best one of all is the CFTC Net Trader Positions and their FREE!
Not many traders use them, but this bi-weekly report is essential for all forex traders.
They show the breakdown of the futures forex markets - but these positions are just as useful when trading cash.
What do they do?
Quite simply they break the position into three main groups:
- Hedgers: These guys are the real pros and are simply hedging a cash position. There not trying to make money so are not influenced by greed or fear.
- Large Speculators: These are large funds who are mostly trend followers
- Small speculators: Everyone else
So why is the above breakdown so relevant?
Quite simply, you can look for extremes either bullish or bearish in speculative positions – with commercials holding and opposite position and moving the other way.
History shows us that the commercials are the right way around at EVERY major top or bottom and the speculators get slaughtered as the market turns.
Be careful!
You have to look for extremes. Once you see speculators heavily net long and commercials moving to the short side – a turn is coming - Prices are to far from fair value and its time to look for a position.
Watching these positions and spotting extremes in sentiment will allow you to:
Trade against the majority when everyone else thinks you are crazy!
You will have the confidence to do this, as the commercials are right about market extremes time after time and you can then look to enter your trading signals, knowing your trading with the smart money.
A Word of Caution
Net Traders positions alert you to the fact a big contrary trade is coming against the herd – but they should not be used on their own – they are not a timing indicator.
You need to use your forex charts and your normal indicators to enter a trade when price momentum turns in your favour.
Trade With the Pro’s
Want to know what the real pros are doing?
Then that’s what following the commercials via Net Trader Positions gives you.
If you want to trade with the smart money and catch the big profits from the big moves - trade with the commercials for bigger forex profits!
GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER More on becoming a profitable trader some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html
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Read More......How to Evaluate a Forex Trading System (Without a Degree in Finance)
It seems that everyone wants to bombard you with his or her favorite Forex trading these days. There is obviously some need for a systematic method of evaluating these various systems. The alternative would be rather chaotic and expensive.
There are ways to technically evaluate a Forex trading system, but these often go beyond the skills of many beginning traders. How does someone with limited technical experience go about evaluating the claims and/or effectiveness of the various systems that are presented?
While not entirely conclusive, I believe that a useful evaluation of a trading system can be done on a non-technical basis. And in fact, it is the first evaluation that I do, before I look more closely at the technical aspects of the system. After all, I don't want to waste my time if there are obvious problems that show up in this initial evaluation.
The first thing I look at is the presentation of the trading system. If it is presented through a web site, does the site have a professional appearance, or does it look like an amateur who couldn't be bothered to pay attention to details threw it together? I also pay attention to the grammar and spelling on the website as well as any other advertising materials.
Now that may seem petty and unfair. But if the grammar is poor, and there are misspelled words, it is another indication that there was not a lot of attention paid to detail. That fact could indicate problems with the actual system being presented.
Next, I evaluate the credibility of the claims that are made concerning the system. One of the ways I do that is by looking for any disclaimer or admission of fallibility on the part of the system designer. It is not only the presence of a disclaimer that is important. The quality of the disclaimer is important as well.
I saw one web site that claimed I could make 20% or more per day, and they all but guaranteed that fact. There was no sign of a disclaimer. There obviously was a credibility problem, and I never gave their offer a second look. Evaluating credibility is definitely an important step in the overall evaluation process.
After all that, I look for something that indicates the basic premise that the system is founded on. I don't expect a developer or vendor to give away their whole secret at this point. But if a system developer or vendor is willing to reveal their basic premise in even a limited fashion, that is a good sign, in my opinion. And then I ask myself if their premise makes logical sense. If it is something that makes logical sense to me, then I am willing to look even closer.
I once saw a trading system that was based on the premise that the markets move up and down along with the cycles of the moon. Now that is an example of a system that makes no logical sense to me. I do not mean to offend you, if you believe that the moon has anything to do with the movements of financial markets. But I would not be comfortable trading a system like that, because the underlying premise is not logical to me.
Those are some of the ways that I evaluate a Forex trading system on a non-technical basis. While this method of evaluation is not 100% conclusive, I find that I generally do not go wrong if I follow my gut instincts with those questions in mind.
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Jerry Brunet is a Forex trader, and software developer. He is the developer of a software program called The Forex-Backtester, which can be found at http://www.forex-backtester.com
Did you find this article helpful? Subscribe to Jerry Brunet's free "Trade While You Sleep" Newsletter at http://www.forex-toolbox.com
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Forex Trading MachineDon't Underestimate Moving Averages When Forex Trading
by Kenneth Aikens
Picture yourself as a successful forex trading professional. You would feel very good knowing that you knew exactly how to diagnose your indicators on your currency trading platform. Moving averages is one of many different technical indicators used by forex traders. Below we will take a look at how moving averages are used by professional forex traders.
Moving averages are one of the most popular and easy to use tools available to the forex trader. While technical analysis is largely subjective, moving averages are mathematically precise and objective. One of the reasons moving averages are so popular is that they embody some of the most common stipulations of successful forex trading. Moving averages are extremely important for not only isolating trends, momentum, and support/resistance, but more importantly, for highlighting the underlying bias of the dominant trading cycles. Because the forex market is a spot market, moving averages are used to calculate the current average of prices, and can help traders make investment decisions on the spot.
Moving averages are a useful technical tool in a trending market. The reason for this is simple; they are considered by most analysts the most basic and core trend identifying indicators. It is designed to smooth out temporary price fluctuations and reveal the true path of the underlying trend. Moving averages may also act as support and resistance levels in a trending market. Some investors prefer simple moving averages over long time periods to identify long-term trend changes. When two moving averages are used together, the longer term moving average is used to help identify the trend, and the shorter one for timing purposes. When there is no trend, the moving averages are flat and are not of much use. Fortunately for forex traders the forex market is a trending market - a perfect market for utilizing moving averages.
There are five popular types of moving averages: simple, exponential, triangular, variable, and weighted. The two major types of moving averages are "simple" and "exponential". Simple moving averages are widely used, predominately because of its ease of computation. Simple moving averages apply equal weight to the prices. A simple moving average (SMA) is formed by finding the average price of a currency or commodity over a set number of periods of time.
Exponential moving averages (EMA) are by and large preferred when charting prices on the currency markets. Exponential moving averages reduce the lag by applying more weight to recent prices relative to older prices. The method for calculating the exponential moving average is fairly complicated. The important thing to remember is that the exponential moving average puts more weight on recent prices.
History has shown that when prices begin trading above the moving average line the market is becoming bullish and traders should be looking for buy entry points. When prices begin trading below the moving average line the market is becoming bearish and traders should look for an opportunity to sell. Investors typically buy when the price of currency pair rises above its moving average and sell when the it falls below its moving average.
Start practice trading using moving averages on a demo account right away. Go out there and continue to research moving averages as well as other technical indicators. Once you master interpreting forex currency trading technical indicators profits will surely follow.
About the Author
What if you could become a successful forex trader? With the proper forex training you can. Visit Kenneth Aikens forex trading site for more info: forex article directory | forex trading system | forex training.
Forex Education - The 4 Major Mistakes That Cause 90% of Traders to Lose
by Monica Hendrix
If you want to trade Forex and win the odds are against you - 95% of traders lose and only 5% succeed. If you want to win at forex trading (and the rewards are huge) then don't make these 4 trading mistakes.
If you make any of these mistakes you will never achieve long term profitability in forex trading.
1. Predicting Market Movement
This is the one major error almost all new forex traders make and it's a critical one.
If you try and predict then you are simply hoping or guessing and the market will destroy your equity.
Hoping or guessing is not a way to make money in any business - forex trading included!
For example, traders spot a support level and think it will hold so they buy - what they should do is:
Wait for proof that the level will hold by looking for a change in price momentum that shows prices are moving back up - this is the proof.
Check out and start using momentum indicators in your trading.
2. Using Logic That Does Not Work
Trader's very often use methods or systems which can never work.
Here are some examples:
Day trading
Is popular but you will NEVER win.
All short term volatility is random - therefore you can't get the odds in your favour and lose.
The Appliance of Science
Many traders think markets move with scientific accuracy and use cycles or Fibonacci numbers - they don't work and never will, yet traders still use them.
Obviously they can't work:
If markets moved to a scientific formula, we could all work out the price in advance and there would be no market.
Two Many Inputs
Many traders try to be too clever and have systems with huge amounts of indicators.
After all, 12 indicators must be better than 2 or 3 - Wrong!
Too many indicators, simply means the system simply breaks in real time trading and are not as robust as simple systems.
The above are just a few examples and there are many more - look them up in our other articles.
3. Poor Money Management
Most novice traders are paranoid about losing - they place stops so close their guaranteed to get stopped out.
On the other hand, when they have a profit they get so excited, they bank it early by moving their stop too quickly!
If you want to make money you have to take meaningful risks to make big rewards.
To do this you must keep your stops outside of normal volatility - if you want to hang onto the big trends, that make the big profits.
4. Lack of Confidence and Discipline
The reason most traders lack this is because they try and buy success.
They think someone can give them success for a few hundred dollars and buy an e-book or system from a vendor.
When the system starts to lose, they have no confidence in it and throw in the towel.
An important vital part of your forex education is:
Only you can give yourself success.
Most systems sold on the net are junk if they were that good the vendor would trade them himself and not bother you for small amounts of money!
You need to build your own system and know how and why it makes profits, have confidence in it and this will give you the discipline to follow it through inevitable losses in the short term and hold on for long term profitability.
About the Author
NEW! 5 X Critical Trader PDF's & Much More
Claim your FREE PDF's and demo account and learn Forex Trading and also get: Breaking financial news, tight pip spreads, guaranteed stops $100.00 minimum investment and 400:1 leverage at http://www.freeforexguidesonline.com
Forex Education - The 4 Major Mistakes That Cause 90% of Traders to Lose
by Monica Hendrix
If you want to trade Forex and win the odds are against you - 95% of traders lose and only 5% succeed. If you want to win at forex trading (and the rewards are huge) then don't make these 4 trading mistakes.
If you make any of these mistakes you will never achieve long term profitability in forex trading.
1. Predicting Market Movement
This is the one major error almost all new forex traders make and it's a critical one.
If you try and predict then you are simply hoping or guessing and the market will destroy your equity.
Hoping or guessing is not a way to make money in any business - forex trading included!
For example, traders spot a support level and think it will hold so they buy - what they should do is:
Wait for proof that the level will hold by looking for a change in price momentum that shows prices are moving back up - this is the proof.
Check out and start using momentum indicators in your trading.
2. Using Logic That Does Not Work
Trader's very often use methods or systems which can never work.
Here are some examples:
Day trading
Is popular but you will NEVER win.
All short term volatility is random - therefore you can't get the odds in your favour and lose.
The Appliance of Science
Many traders think markets move with scientific accuracy and use cycles or Fibonacci numbers - they don't work and never will, yet traders still use them.
Obviously they can't work:
If markets moved to a scientific formula, we could all work out the price in advance and there would be no market.
Two Many Inputs
Many traders try to be too clever and have systems with huge amounts of indicators.
After all, 12 indicators must be better than 2 or 3 - Wrong!
Too many indicators, simply means the system simply breaks in real time trading and are not as robust as simple systems.
The above are just a few examples and there are many more - look them up in our other articles.
3. Poor Money Management
Most novice traders are paranoid about losing - they place stops so close their guaranteed to get stopped out.
On the other hand, when they have a profit they get so excited, they bank it early by moving their stop too quickly!
If you want to make money you have to take meaningful risks to make big rewards.
To do this you must keep your stops outside of normal volatility - if you want to hang onto the big trends, that make the big profits.
4. Lack of Confidence and Discipline
The reason most traders lack this is because they try and buy success.
They think someone can give them success for a few hundred dollars and buy an e-book or system from a vendor.
When the system starts to lose, they have no confidence in it and throw in the towel.
An important vital part of your forex education is:
Only you can give yourself success.
Most systems sold on the net are junk if they were that good the vendor would trade them himself and not bother you for small amounts of money!
You need to build your own system and know how and why it makes profits, have confidence in it and this will give you the discipline to follow it through inevitable losses in the short term and hold on for long term profitability.
About the Author
NEW! 5 X Critical Trader PDF's & Much More
Claim your FREE PDF's and demo account and learn Forex Trading and also get: Breaking financial news, tight pip spreads, guaranteed stops $100.00 minimum investment and 400:1 leverage at http://www.freeforexguidesonline.com
