Forex Trading Education - Don't Focus On Making Money

It's a common thing to see new traders obsess over finding the "latest" and "best" way to trade Forex. While this may seem like the logical thing to do (after all, we're trading to make money right?), the true secret to making money in Forex trading has got almost nothing to do with that at all.

"Wait a minute... are you saying that to make money, we shouldn't focus on making money? That doesn't make sense!"

Believe me, I know this may sound weird... but the honest truth is that yes, you shouldn't focus too much on making money. And here's why...

The "Profit Paradox"

The first thing you must understand is that more than 90% of Forex traders lose money. Why is that? The answer is that many people underestimate what it takes to make money in Forex trading. These people have been misled by online marketers into believing that Forex trading is easy. The people buy into all the "Make $300 in one hour!"-type claims.

And this pulls their attention away from the one important aspect of trading: managing risk.

You see, the Forex market is one of the most volatile and liquid markets in the world. Everyday there are plenty of hazards you must overcome before you can survive long enough to be profitable. Imagine yourself flying a spacecraft into a meteor shower... that's basically what the Forex market is like. Your highest priority should be to survive: don't lose any money!

Once you've picked up the skills to survive in the 'meteor shower' of everyday price fluctuations, then you can start picking up new skills to learn how to profit from the market. Many new traders make the mistake of trying to make money first, before learning how to survive... and as you might expect, they eventually wipe out their trading accounts before even turning a dollar profit.

To learn more, download my free 26-page guide here: "Forex Trading Traps!"

Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading information and resources.

Currency Trading - New Revenue Stream

It is also about buying foreign currency, the most traded in the international market such as the US dollar, UK pound or the Euro, on a daily basis from the open market. It is sold either the same day or two-three days later when the demand for the particular currency is higher. Though the fluctuation in the currency rates is marginal, the earnings can be on the greater side since currency trading is carried out in the form of bulk. Only registered organizations and banks are entitled to engage in currency trading. Individuals and non-residents of a country cannot engage in currency trading. In some developing countries, only government agencies and banks can trade in currency. No individual can trade currency on his or her own. Normally, it is the federal bank of a particular country that stacks up foreign currency since it buys them in bulk.

Currency trading is regulated by the official stock exchange of a particular country. The price of the currency is fixed by the developments in the international market. The currency is traded on the basis of the rate it can fetch against a US dollar or Euro. All international currencies are traded against the US dollar since the international market transaction takes place in the US dollars. In the European Union countries, it is the Euro, which is active and strong. So stock exchanges in the European Union countries trade in the Euro currency against local currencies. Similarly, in Japan, it is the Yen, which is traded against the US dollar and in China; it is the Yuan, which is traded against the US dollar. In the Pacific Oceania region, it is the Australian dollar that rules the roost. Therefore, traders have a tendency to stack up the Australian dollar. However, worldwide, the most preferred currency for trading is the US dollar.

For an agency to trade in currency, it has to clear certain stringent norms and procedures. The bank should necessarily comply with the conditions laid down by the federal bank of the country. In many third world nations, only the government agencies and nationalized banks are eligible to engage in currency trading. There have been relaxations in case of certain agencies, which have been permitted to engage in currency trading. However, these agencies are constantly monitored to ensure that they are following the norms are laid down.

It is illegal for individuals to trade in currency in some countries. Any individual or agent found engaging in currency trading in violation of the stipulated rules could end up being penalized. There are chances that the agent could even lose the trading license and could be barred from all future trading in the stock exchange.

It is necessary for agencies and banks to keep a tab on the movement of the currency in the international market to make quick earnings. There are possibilities of the currency weakening against each other due to various forces acting on the market. Since the stock markets are extremely volatile, it is difficult to predict which way the currency will swing.

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Learn Currency Trading - 5 Common Deadly Mistakes

If you want to learn currency trading you need to get the right forex education and avoid the mistakes of the losing majority. The mistakes below are common ones but there easy to avoid and you must do so if you want to enjoy currency trading success.

1. Following a Vendor Blindly

One of the most common errors is to think someone else can give you success - they can't.

Most systems sold are junk - but even if you do find a good one, how can you follow it with discipline if you don't know how it works?

You cant to have discipline to follow a system you must have confidence in it so you need to take the time to develop your own trading system or have total confidence in someone else's logic.

2. Trading News Stories

We have more news at our disposal than ever before and all those stories are very convincing - but that's all they are stories. The news reflects the greed and fear of the crowd and they lose longer term - try and trade news stories and you are guaranteed to lose as well.

The best way for any novice to trade is to simply follow the reality of price action on a forex chart and trade it - your trading the truth not an opinion and that is the only way to win.

3. Day Trading

Simply the dumbest way to trade.

It doesn't work as all short term volatility is random and you can't get the odds in your favour.

Don't believe me?

Try and find a forex day trader with a real ( not simulated ) track record that's made real dollars over the long term. Let me know if you find one I have been searching for 25 years and still not found one!

Avoid day trading at all costs!

4. Trying to Predict Forex Prices

If you try and predict prices in advance you're hoping or guessing and that won't get you anywhere in life and certainly not forex trading.

You must not predict wait for momentum to confirm a turn and you can look up how to do this in our other articles - it is essential to confirm a price turn, rather than simply guess when it might come.

5. Markets are Scientific

It's amazing how many people buy into this myth yet it's obviously not true.

Why?

Because if prices did move to a scientific theory, there would be no market, as we would all know the price beforehand and there would be no market. The reason a market moves is because we all have different opinions of where the price may go.

The far out investment crowd love scientific theories and like to follow the works and methods of gurus such as:

Gann, Elliot and Fibonacci.

Well they made no money with their theories in forex trading and neither will you.

So if you want to learn currency trading correctly avoid the common mistakes enlcosed and work and getting a simple forex trading system which will help you trade the odds, you can understand and can apply with discipline.

If you learn currency trading the correct way ( and 95% of traders don't ), then you can enjoy currency trading success and create a life changing income - good luck!

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Forex trading course visit our website at: http://www.learncurrencytradingonline.com

Currency Trading Tips - A Simple Tip to Warn of the Big Moves

If you want to enjoy currency trading success, you need to catch and follow trends and spot turning points and this tool will help you - it's an obvious tip in many respects but most traders simply don't use it, so here it is.

It's to look at other markets that impact on the currency you are trading and for the purposes of illustration let's look at the US Dollar.

The dollar is a net importer of energy and high energy costs hurt it and the main one we are referring to here, is crude oil. In recent history when crude has hit high levels (and we have had recent tests of $100 a barrel) it has hurt the dollar and the retreat from this level has seen the dollar stabilize and rise.

Tops in the oil market recently have warned of dollar rallies.

Another major factor is interest rates.

Recently the dollar has been hurt by the perceived view that interest rates will be cut and you can get an idea of how much by looking at interest rate futures. When the interest rate futures rally too hard to fast and then fall, you can often see the dollar rally.

Why? Because traders get ahead of themselves - the recent rally in dollar euro was preceded by 100% consensus that interest rates will be cut by 50 bps (probably true) but gave 50 - 50 that rates would be cut by 75 bps (unlikely) the level of interest rate cuts factored into the market was overdone and prices in interest rate futures fell and the dollar rallied.

Tops in oil and interest rate futures can be used to warn of dollar rallies.

Another important variable is the stock market. Weak stocks hurt the dollar and strong stock markets support it - so watch it in fact if you want another tip:

If you are trading long term trends and only want to look at the prices of currencies once a day, do it just after the stock market closes. This closing price is always significant and while currencies trade 24 hours they are effectively thinly traded until Tokyo opens and the US stock market close sets the tone for the next day

Other currencies are also affected by outside influences:

The Canadian Dollar - Is a net exporter of oil and high prices of oil and other commodities are supportive of the currency

The Australian Dollar - Australia is a big producer of gold and when gold prices are high it supports the currency.

By looking at other markets that are important to a currency, you can often spot whether trends are going to continue or reverse. While it's obvious that currencies don't move in isolation, many traders do not bother to look at other markets for clues - if you do, you can get a trading edge.

A trading edge is what forex trading is all about and if you research this tip further, you will find it very useful as part of your forex trading strategy for bigger profits.

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

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive forex course visit our website at: http://www.learncurrencytradingonline.com

Options Trading And Price And Time Trading

Futures Options trading

Please only use these examples for educational purposes. Paper trade them.

I was doing my search for option inconsistencies and here is what I found.

March Swiss Franc futures contract closed at .9110.
(February options follow the March contract)

Feb. Swiss Franc options have 22 days left until expiration.
March Swiss Franc options have 50 days left until expiration.

Feb. Swiss Franc .95 Call options settled at .12.
March Swiss Franc .95 Call options settled at .34.

March Swiss Franc is close to its 52 week high of .9235. If you felt the market will fall, you can put on a reverse calendar spread. You can buy the front month out of the money option and sell a further month out of the money option. The further month option has more to lose if there is a big move, and also the time decay should be slightly greater due to the higher cost per day of the option. Keep this option spread in mind as an alternative to other types of credit or debit spreads.

When putting on any calendar spread, think of buying the cheaper cost per day options and selling the more expensive.

Even if you are not putting on a spread, this is a great way to choose which option to buy or sell.

Price and Time trading

Let's look at May Wheat. The recent high that stands out was 998 which happened on 12/17/07. I enter the price and date into the Gann section of my Price and Time software.

Below are the exported results:

Gann Analysis
Project Name: May Wheat

Input Values
------------
Price: 998
Date : 12/17/2007

Results
-------

Potential High Prices
---------------------
Price1: 1012
Price2: 1030
Price3: 1044
Price4: 1062
Price5: 1076
Price6: 1094
Price7: 1109
Price8: 1128

Potential Low Prices
--------------------
Price1: 980
Price2: 966
Price3: 949
Price4: 936
Price5: 919
Price6: 906
Price7: 889
Price8: 876

Potential Dates
---------------
Date1: 01/31/2008
Date2: 03/16/2008
Date3: 05/01/2008
Date4: 06/16/2008
Date5: 08/02/2008
Date6: 09/18/2008
Date7: 11/02/2008
Date8: 12/17/2008

Notes
-----
When price and time meet, we have a potential reversal point in the market.

David has traded futures & options for one of the largest cash trading firms in the world. He currently owns and runs the following websites:

Futures Options Simulated trading

Futures Options

Price and Time trading

Your Strategy To Financial Freedom

Can you imagine yourself financially independent from your own business of forex trading? Did you know everything about forex trading can be specifically learned? You can learn strategy from other traders who put in the time and effort to trade in profit. You can make money while others don't if you follow a few principals.

Work smart not hard. All you need is a simple forex trading system that you can have confidence in. You need to keep your system as simple as possible. They work far better than complicated ones. You get paid for being "right" that's it, so don't try and be clever. You may be thinking this all sounds a bit easy and yes learning to trade is not hard. All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. The hard part is executing the knowledge in a disciplined way.You need to have confidence and discipline in trading currency markets. A lot of traders allow emotions to get involved and ruin most trades.

Trading without emotion is hard to achieve. You have hard earned money on the line. If you want to have discipline you need to have confidence which comes from practice trading and understanding your own trading system.

One more key to success is a desire to be successful. Most people in business enjoy what they do, taking some risks and have the ability to build profits. Does this sound like the person you are? There is really nothing stopping you from making money in forex. Just work smart and have a good mindset and you to will succeed. To increase your chances of success in forex trading requires knowledge. Knowledge takes hard work, study, dedication and focus. Build your knowledge base without taking any shortcuts. You will build a solid foundation for trading.

Rick Williamson is an investment researcher and owner of www.forexebookstore.com

Easy-Forex Review - Is Easy-Forex Really "Easy"?

Easy-Forex has rapidly become one of the biggest players in the currency trading market.

Part of the reason for this is its name! Easy-Forex implies that Forex trading is easy, which of course we all know is not altogether true.

However, when you are just starting in Forex trading, the first thing you need to know is how much assistance and training you are going to get. So the purpose of an Easy-Forex review must be to see how far a system that calls itself Easy-Forex actually succeeds in making things "easy".

Easy-Forex does in fact have a number of unique features that do make it as easy as it can be to get a foothold in Forex trading.

• One of the features of Easy-Forex that many people find attractive is that there is no software to download. This is not actually unique to Easy-Forex but it gives it an edge over trading platforms that do require a software download, which is the majority. If you have had your share of download problems and set-up glitches, you will certainly appreciate this. Plus it means that you can access your account instantly from any PC anywhere in the world.
• Easy-Forex make it very easy to make a trade by allowing you to deposit funds using your credit card or Paypal. This avoids the frustration of finding that by the time your funds are in place, the price has moved.
• Where Easy-Forex really scores is that it has a human face! This makes it probably the best Forex trading system for you if you are just starting. As soon as you register you are allocated your own personal account manager who works closely with you and who is very easy to get hold of when you have a question. The manager will advise you and will walk you through the initial stages. This to me is worth A LOT. And it is a better way of learning the ropes than using a demo account.
• You don't have to pay a commission to Easy-Forex when you make a winning trade. This is because Easy-Forex makes its profits from competitive spreads. Some people sneer at this, alleging that it means they can't call themselves commission-free. But of course they are a business so they have to make a profit somewhere - but they aren't making it directly from YOU.
• One very big plus for Easy-Forex is the freeze-rate option that they offer. If you are a hesitant person, like me, it is extremely valuable. It gives you "thinking time" while deciding whether to accept a trade. Without it, the rate could change while you are hesitating and you could lose a good opportunity. Alternatively you might plunge into trades which on reflection might not be a good idea.

So there are features which do help to put the "easy" in Easy-Forex. But of course an Easy-Forex review would not be an Easy-Forex review without weighing up the negatives too. And you will see some very disgruntled people putting negative comments on the forums.

The majority of these seem to be from people who have lost money with Easy-Forex. And make no mistake, you WILL have losing trades. If you can't cope with this, Forex trading is not for you, period. The real secret of trading Forex is to make sure that your winning trades outnumber your losing trades. And to do this, it is essential that you know what you're doing. To this end, Easy-Forex is acknowledged to have the most thorough and personal tutorial service of any Forex trading system.

Another point that people complain about is that if you carry over a day-trade to the next day, Easy-Forex make a charge, and if you don't have that money in your account, they deduct it from your credit-card without prior warning. To prevent this, it is essential that you keep sufficient money in your account.

An Easy-Forex review cannot provide a complete analysis of Easy-Forex - it can only weigh up the pros and cons. There are other excellent Forex trading systems on the market and of course you need to compare them, though in my experience Easy-Forex has more unique features to make it really easy to start trading. But whether it is for YOU, only you can decide!

If you would like to find out more about Forex trading, come and visit us at http://www.bizwrite.co.uk/Forex/forexindex.html

How To Choose A Good Forex Trading System

Most Forex traders find it hard to choose a good trading system. In part because there's a lot of trading systems and, in the other hand, there are a lot of scams in this market. There are a lot of huge profits promises but hardly ever a trader can see a real profit in their account.

As a Forex trader, I found myself under these same circumstances. Although, as the time passed by, I created some special rules that a forex trading system must follow in order for me to buy it.

My first rule is only to buy a forex trading system that comes with a money back guarantee or a free trial period. For me, this is a very important rule because it shows me that the trading system developer really believes in what he is selling.

The second rule is to read reviews about the system I want to buy. But not any kind of reviews; the reviews I like most to read are from real forex traders. The more reviews I read about the product I want to buy, the better the idea I will have of what to expect.

The third rule before I buy a forex trading system is to carefully read the webpage where it is being promoted. This is sometimes hard because the pages are too long... But it is well worth the time. I eliminated many products with this rule and I'm very happy with my decision. I found out later, with other traders reviews, that those were scam products. If you have any doubt about the product or about what it does, contact the support team. If they have a quick answer, this is a good point for you to buy it because if, for some reason, you don't like the product after you buy it, pretty sure they'll refund your money fast.

If the forex trading system you chose fills these rules, then it is time to buy it. And here comes my fourth and last rule: test it first on a demo account. Almost all forex brokers have free demo accounts. This way, you can test the trading system and achieve some consistency before you commit your money to it.

I believe that if you follow these 4 rules, you be able to chose the best forex trading system for you and make good profits with it.

John Baker is an editor at http://www.ForexTopTen.com

By visiting the website http://www.forextopten.com you can read forex traders reviews about forex trading systems, trading courses, ebooks, softwares and brokers.

Forex Charts - Avoid These Myths or Lose Money Quickly

Using forex charts and technical analysis is a great way to enjoy currency trading success - the problem is most traders fall victim to common myths and join the 95% of losing traders. Here we will look at the forex chart myths to avoid.

1. Do Not Try and Predict!

Probably the most common error of all is when a forex trader tries to predict where a price is going to go to next and it's doomed to failure - Why?

Because if you predict you are hoping and guessing and you will find your predictions are about as accurate as your horoscope.

You don't get anywhere in life by predicting and certainly not forex trading - you need to trade the reality of price change.

2. Trade Valid Data

If you want to trade successfully you need to trade the odds and you cant do that in forex day trading because the time period is to short for the data to be valid. It doesn't matter how good your forex trading system is, apply it to day trading and you will lose.

3. Complicating a Trading Plan

It's a well know fact that simple trading systems work better than complicated ones as they are more robust in the face of ever changing brutal market conditions. Add to many indicators in and your system will have more elements to break.

So remember keep your currency trading system simple and profitable.

4. Not Buying Breakouts

Most traders like to buy low and sell high and this is a by product of trying to predict. Traders simply don't like buying trends in motion when they have missed a bit of the move - well if you don't, you will never catch the really big trends and will lose.

It's a fact that most major moves start from new market highs NOT market lows - so you need to forget buy low sell high, as a way to make money and think- buy high sell higher.

5. The Markets Move To a Scientific Theory

Many traders believe that as human nature is constant there must be a repetitive scientific formula that markets move to and they fall for scientific theories such as those sold by discipline of Gann, Elliot and Fibonacci and they lose.

Why?

Because its pretty obvious that markets don't move to a scientific theory as if it did we would all know the price in advance and their would be no market!

This is really common sense but you would be surprised at how many traders base their forex trading strategies on scientific nonsense.

6. No Indicator works all the time

This is obvious however you would be surprised at how many traders simply think buying dips to a moving average is a great way to make money! Always use a combination of 2 or 3 complimentary indicators and it's always good to use support and resistance lines as well, when generating a trading signal.

7. Using Indicators Incorrectly

We just gave you an example of using an indicator in isolation and also buying a dip to a moving average is incorrect usage - Why?

Because it's a lagging indicator and cannot confirm trades - you need to combine it with a leading indicator.

Another example is traders who set stop losses at the outer bands of the Bollinger band - this is not a good idea, because it's a volatility band that changes all the time, may move your stop to far away and cause you a big loss.

The above are common errors and if you make any of them you will lose. Forex charts are a great way to make money, charting is simple to learn, time efficient and works so learn how to use your forex charts correctly, by avoiding the above errors and you can enjoy long term forex success.

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive Currency Trading System visit our website at: http://www.learncurrencytradingonline.com

Currency Trading Basics - 10 Errors You Must Avoid to Win at Forex

Here we are going to give you some currency basics and this involves 10 essential tips you must do and 10 tips on common mistakes which you must avoid to enjoy long term currency trading success.

Let's start with 10 common errors you just avoid.

1. Don't Day Trade

It doesn't work as all short term volatility is random and prices can and do anywhere in a day and you have the odds firmly against you and will lose longer term.

Ever seen a day trader with a long term track record of success? No neither have I avoid it and trade longer term trends where you can get the odds on your side.

2. Don't Try and Predict

Predicting is simply hoping and guessing and won't get you far - trade the reality of price change. No one knows the future and your predictions will end up as accurate as your horoscope!

3. Don't use Science

Don't believe anyone who tells you markets move to a scientific formula they don't - if they did we would all know the price in advance and their would be no market.

Trading is a game of odds - not certainties but you can win if you know and trade the odds. You won't win every trade but over the longer term you can pile up huge FX profits.

4. Don't Trade Scared Money

If you can't afford to lose stay away, forex markets are extremely risky and if you are worried about losing your discipline will break down and you will lose

5. Don't follow a guru blindly

To follow a forex trading system you must have confidence in it and know how it works or you won't be able to follow it with discipline - if you can't follow it with discipline you have no system at all.

6. Don't believe experts

News stories are convincing - but that's all they are stories from journalists and there normally dead wrong about every major market turning point. Don't believe everything you read!

7. Don't buy low and sell high

Great theory - doesn't work, it means you must predict again where highs or lows will form.

The fact is most major market moves start from new market highs NOT market lows. Learn to buy these breaks as the odds are in your favor and you normally see huge trends develop if, the breakout is from a valid resistance level.

8. Complicate your trading system

Simple systems work best, as they are more robust in the face of brutal market conditions - over complicate your forex trading system and it will have to many inputs - which will break.

9. Acquire Knowledge for the sake of it

You will often here people say the more knowledge you have the better - but in forex trading you need just the right knowledge.

You don't get paid for work rate you get paid for being right and that's it.

10. Don't overtrade

Most novice traders simply over trade and lose.

They think the more often they trade with their forex trading system, the more chance they have of winning or if their in the market their bound to catch a major move - dead wrong.

You don't get a reward for trading often so don't - only trade high odds set ups and be patient and wait for them.

If you want to learn forex trading correctly and get the right forex education to enjoy forex success these are all errors to avoid. When developing your forex trading strategy keep the above points firmly in mind their currency trading basic errors that must be avoided if you want to get on the road to regular profits.

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and an exclusive course for Currency Trading Success visit our website at: http://www.learncurrencytradingonline.com

Online Forex Brokers - A Service All Novice Traders Should Use

Most new forex traders want to know if they can be successful forex traders in real time trading so, they try a demo account and conclude that as they have made money they will win - nothing could be further from the truth.

Trading a demo account lacks the vital ingredient of the pressure you feel when trading real money. This is why all novice forex traders should try the new service outlined below which is provided by some online forex brokers.

Before we begin lets think about pressure and give you a scenario:

You can throw a ball into a basket in your garden easily when practicing in your garden - but try it in front of 100,000 people, you have to score to win and the pressure is on and it's not so easy!

While not a direct comparison, it shows you what influence pressure has and it's the same in forex trading, when only dummy money is on the line - its easy.

With real money on the line it becomes harder.

A demo account is useful only for learning the basics of executing your forex trading strategy, executing signals etc and knowing how the platform works and that's about it.

So how do you get the feeling of pressure, without taking a big risk?

The answer is - a protected forex account.

This is an account with limited risk and the salient points offered by forex brokers in relation to these accounts are outlined below:

- You trade small amount with fixed leverage

- You make as many trades as you like in a set period even if you are debit

At the end of a set period the following occurs:

- You take all the profits made

- The broker takes the losses

The set period is normally a few weeks and the advantages are:

You have limited risk on small amount of trial money and get a lot of practice, as you can trade even when you're in debit. A

You also have the motivation to make money, as you keep the profits and the risk is limited and capped.

These accounts offered by forex brokers, act as bridge between demo accounts and real time trading. They give you a feel for what its like to trade money, while at the same time offering a set risk.

Forex trading is probably 20% method and 80% mindset.

You need the right mindset to execute your forex trading system with discipline.

Most traders fail because they lack discipline as methods are easy to learn.

This new service from online forex brokers offers a taster of what it's like to be a trader and deal with pressure.

They're useful for all new currency traders. If you try it with an online forex broker, you will have an indication of whether you can enjoy long term currency trading success or not.

MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES + FREE ESSENTIAL TRADING GUIDES

For more on best forex broker services and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com/index.html

Forex and the Risk Element

Time and time again I hear the statement that trading on a margin account is a risky business. In fact the NFA and CFTC require that all brokers and agents inform the public of the risks of trading on the foreign exchange.

So how much risk is actually involved in trading Forex? Is it any riskier than engaging in any other kind of business?

Let us first look at the hypothetical case of John and Mary. Each of them opened a forex trading account and funded it with $50,000. Both of them operated on a margin set at 100:1.

John traded very conservatively using one regular lot per trade and applying reasonable money management principals. Unfortunately, John was a poor decision maker and did little to improve his trading skills. Over a period of time, John lost his entire investment.

Mary had no intention of being shackled by the constraints of money management and traded to the maximum of her account margin, each trade carrying the maximum lot size permitted. After a few spectacular gains, Mary's luck ran out and her account was wiped out. Despite being in profit to the tune of $2,500,000 she had lost it all and her original investment was gone too.

So who took the most risk?

If you answered Mary - you are wrong!

Mary is a multi-millionaire. She has several mansions two yachts and a private jet. Her main income is from oil and her company owns some of the largest oil reserves in the world. The possibility of losing $50,000 for Mary is a very small risk. It is similar for her to that of anyone purchasing a lottery ticket - nice if it gives you a few million dollars, but no big deal if it doesn't.

John on the other hand was in a very different situation. John had taken a mortgage on his house to fund his trading account. He had no savings and had even given up his job to start full time trading.

As you can see from the two tales above, risk is about more than what percentage of your account you put at risk.

In our next example, Mike and Sarah both open mini accounts with $5,000. Both are using a margin of 100:1. Neither Mike nor Sarah are independently wealthy but each can easily afford to lose their $5000 without it adversely affecting their lives.

Both start trading and due to lack of experience do not fare very well. After a short time Mike stops live trading and starts to practice in a demo account. Mike seeks help and knowledge and then practices in his demo account to hone those new found skills.

When Mike starts to trade his live account again he uses very strict money management and a well developed trading system. Mike has not yet made a fortune, but he is starting to recover some of the investment that he lost.

Sarah continued to trade without any help. She is still managing to stay afloat.

So who was at the most risk in this example? I would suggest that it was Sarah. Her luck is still holding but if your trading style is built upon luck. You are at great risk.

Trading the forex market requires that you develop a style of risk management. It is necessary to understand the true risk of each trade as it applies to both the market in general and to you in particular.

If you always trade with money that you can afford to lose, your total risk is reduced. If you learn how to trade effectively, then your risk is further reduced and likewise if you adopt a strict regime of money management your risk is again reduced.

Trading will always carry a level of risk. If you intend to adopt trading as a career or investment vehicle, it is up to you to do everything in your power to learn how to properly assess and manage the risk.

Martin Bottomley is a full time professional forex trader, acknowledged author, forex tutor and co-developer of forex trading software including The Amazing Stealth Forex Trading system. You will find information at: http://www.stealthforex.com

Learn Currency Exchange the Right Way and Win

Anyone can learn currency exchange - but it's a fact that 95% of traders lose and this is simply down to the fact that traders believe currency trading myths or, simply get the wrong forex education. Let's look at learning currency exchange the right way.

1. Risk Goes With Reward

Risk goes with reward we all know that and the rewards in forex trading are potentially life changing, so don't believe its easy, its not - but currency trading success is achievable and anyone can be a successful trader. Just keep in mind you must approach currency trading with a desire to succeed and a willingness to work smart and take responsibility.

2. Your on Your Own

If you want to learn from someone else and use their knowledge as a basis for your forex trading strategy that's fine - but do not follow someone blindly, or you will not have confidence in what you are doing.

Understanding what you are doing and having confidence in it, is the key to applying your forex trading strategy with discipline and this is the key to success. If you do not apply your forex method with discipline, you don't have a system at all. So learn from others but understand what you're doing.

3. Do not Fall for these currency trading myths

The rise of online forex trading has seen the rise of vendors who are out to make a quick buck, most of them are not traders and they are responsible for spreading several myths of which some of the most popular are outlined below:

- Day trading and scalping is a great way to win at forex
- You can predict forex prices in advance
- Buy low sell high is a way to make money
- A forex trading system sold with simulated track record will work
- Forex markets move to a scientific formula

The above are all myths and if you believe any of them you will lose

4. Work Smart Not Hard

You don't need to work hard; you need to work smart when learning currency exchange. You should only learn the information you need to succeed.

One of the best ways to start is to teach yourself forex technical analysis and how to use forex charts. This should only take you a week or so, you can then build your own robust trading system about 2 weeks - that's it. Once you have your system, its 30 minutes or less a day to execute your trading signals.

Forget all the people who tell you to constantly study and learn - that may help you get a university degree but won't help you in the forex markets. You don't get paid for effort - you get paid for being right and that's it.

5. You Must Acquire This!

All successful forex traders have it and it's a trading edge.

A trading edge is the edge you have over other forex trader's i.e the 95% who lose at forex trading. It doesn't matter what it is - but you must understand it and have confidence in it to give you long term success. If you don't know what your trading edge is - you need to get back to learning currency trading basics until you do.

6. Mindset

The real key when learning currency exchange is not so much getting a method but learning to apply it with discipline. Learning a currency trading system is easy; applying it with discipline is the hard part. When you are in the middle of a series of losses, it takes great mental discipline to stay disciplined and not throw in the towel or vary your trading system. You will understand this feeling better when you come to trade!

To be a successful currency trader you have a combination of learning the right knowledge, which gives you the confidence to apply it with discipline. If you want to learn currency exchange the right way, the above essay will point you in the right direction for long term FX trading success.

PROFESSIONAL FOREX TRADING COURSE
and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf's with 90 of pages of essential info and more on how to learn currency exchange visit our website at: http://www.learncurrencytradingonline.com

Forex - The Most Liquid Market In The World

Since the advent of the freely floating exchange rate system, after the decision by Nixon to remove the Dollar from the Gold Standard, currency valuations became much more volatile. This volatility makes it possible to speculate one currency against another.

Speculators quickly seized the advantage and the largest most liquid markets were born. Not only did the international banks provide the service of exchanging foreign currencies to facilitate tourism and international trade, but they soon discovered that speculating in the values of currencies was a profitable venture for themselves. Banks set up trading desks and were soon the dominant speculators in the forex markets. They traded for their clients and for their own account. Thus the interbank system of trading foreign exchange grew from $500 billion per day to the current level of $3 trillion per day.

For a private trader this offers the advantage of incredible liquidity, particularly in the major currencies such as the Euro Dollar. Although currencies are not traded in a formal exchange environment, (although currency futures are), the largest trading by volume takes place amongst banks in the spot market. The spot market settles every two days and is considered as "on the spot settlement".

However, because the market is not regulated in the traditional sense such as an exchange, traders need to be aware of where they open their accounts. The largest banks are obviously safe, as are the largest market makers. We recommend banks such as Barclays, Deutche Bank, Dukascopy and so on.

For a professional, technical analysis system, one can opt for TradeStation. TradeStation is a publicly traded software company with full brokerage facilities. They are listed on Nasdaq. TradeStation also offers users the ability to trade in Forex. Forex orders can be placed directly through the TradeStation software, which instantly transfers the order flow to Gain Capital in New York. The spreads are very tight and the slippage is minimal.

Some brokers advertise that they do not charge commissions but then their spreads may be wider than you think or slippage may be questionable. There is no free lunch. Always trade with a broker or bank with a solid reputation in the Forex markets.

Selwyn Gishen is an author and forex trader with over 15 years experience in trading and trading psychology. He is the author of a book called "Mind" - how changing your mind can change your life!, available from Lulu.com. He is also the author of "Trading the Forex Markets" - A foundation course for online traders. He is the founder of http://www.ForexNewsandViews.com a new website forum for traders. The course is available online at http://www.fxnewsandviews.com Selwyn is currently doing online speaking arrangements with leading forex brokers.

For more information contact him at fx@fxnewsandviews.com

Online Forex Brokers - A Fantastic Idea for Novice Traders

Will you make money at currency trading? This is a question most traders try and answer by trading a demo account - but the problem with demo accounts is there is no pressure, i.e no money on the line and it proves nothing.

Most traders who make money with demo account lose when they open an account with a forex broker. Now there is a fantastic way for traders to see if they have what it takes. There is a new account called a protected account and it acts as a bridge between a demo and a full trading account. The concept is:

The Protected Account works as a funded demo account in which the client pre-determines their risk level. Among its features are:

-Trade up to 100 times your initial deposit, even with a negative balance.

- Make as many trades as desired, 24 hours a day, using any currency pair.

- At the end of the a set period, (normally two weeks) any positive balance is the clients to keep the broker covers the losses.

This has significant advantages over a demo account, as it simulates the feeling of trading real money on the Foreign Exchange and let's face it when money is on the line we feel and act differently.

Trading is probably 20&% method and 89% mindset and it's a fact that most traders fail because they don't trade with discipline.

To make money you not only need a method but you need the discipline to follow your method when the going gets tough. Its easy to score a penalty goal in your back garden but not so easy when its a huge game and you have to score to win and have 100,000 people watching you!

The Protected Account acts as a bridge between a demo account and a real one, providing an authentic trading experience, but of course the risk is managed and a huge advantage is - even if you go debit on the first day you can still keep trading so you get plenty of trades and plenty of practice.

These accounts are being now provided by forex brokers and they are a fantastic way to get your feet wet, before progressing to a full trading account and will help you determine if you have what it takes to become a successful forex trader.

MORE ON PROTECTED ACCOUNTS AND BEST BROKER SERVICES + FREE ESSENTIAL TRADING GUIDES

For more on Protected Forex Accounts and some essential trading guides visit our website at: http://www.learncurrencytradingonline.com

Is It Possible To Trade Forex Without Using Technical Indicators?

If you talk to any forex trader, you will find that the vast majority of them use technical indicators to make their trading decisions. However this does not necessarily mean that you need be an expert in technical analysis in order to be a profitable forex trader. Far from it in fact.

There's no question that technical analysis can help you greatly in making trading decisions, and many forex traders would be hopelessly stuck without it, but it is still possible to make good profits without using any technical indicators at all.

For instance you could decide to take a longer-term view and use fundamental analysis to help you make your trading decisions. This way you don't need to be so precise about your entry points and you can sit back and watch your position unfold without having to be constantly watching the markets all day.

This type of trading requires you to be able to interpret the current economic climate and to some extent predict future developments, such as which way interest rates will move in future months.

A classic case of someone who was successful using this method is George Soros, who took a now infamous position on the British pound in 1992. He shorted the pound heavily shortly before the Bank of England withdrew the pound from the European Exchange Rate Mechanism and pocketed over $1bn. This was obviously based on economic factors rather than any fancy technical indicators such as an oversold RSI or MACD crossover.

So you can definitely make big profits from long-term fundamental analysis, but if you are more of a short-term trader then there are still profits to be made. For example, you could look to adopt a strategy based on trading the economic data releases.

This is quite difficult to do, and is not something I'm particularly good at, but it is definitely possible to make profits this way. Indeed I know a few traders who trade the news releases for a living. The major announcements can create wild swings in a currency's price so there are plenty of opportunities to trade these volatile movements in price.

Finally, if fundamental analysis and technical analysis aren't your thing, then you can always use the only meaningful indicator you really need - price. After all the price history tells you how the currency has behaved in the past, and if read correctly can be used to predict future movements as well.

For details of three profitable price-driven forex trading systems please visit:

http://www.topforextradingsystem.com

Education Is the Key to Successful Forex Trading

Since I came in contact with Forex Trading back in 2002, I have learnt quite a lot. If you are new to forex trading, the information you will receive online will be overwhelming sometimes. My first contact with Forex Trading was through "HYIP" -High Yield Investment Programs. I invested with these people, but lost my money. So your first lesson, is beware of Forex scams. The marketing information can be so thorough, you can hardly figure out if it is a scam. Sometimes, you see even infomercials. Please be careful when to react to these products regarding Forex trading.

Education is the key to become a profitable forex trader. I studied and implemented many strategies. Majority of these left me with a $0 demo account from $50,000. This was pretty shocking to me. I lost many demo accounts. Its pretty devastating. Don't allow this losses to discourage you, because forex trading is really very profitable as I discovered at last.

My first advice is beware of FOREX TRADING Scams- there are many out there. My second advice is trade a demo accounts until you become profitable. If you are still loosing trading a demo account and you start with a real live account, the same failures will reflect on your real account. You might become frustrated and prematurely abandon an otherwise lucrative opportunity. Whatever happens, don't give up. This has been my forex trading experience.

As you trade the demo, continue to educate yourself on the forex. There is a lot to learn, but don't pay huge sums for forex courses. Any course above $500, don't go for it. Some people are deceived, thinking the higher the cost of a forex trading course, the more efficient the course will be. Don't be fooled. Most of these are rehashed information, that you can easily find online. I will do my best to link you to some pretty neat sites where you can get basic education on forex and I will write some good practical articles that will help you also. The main thing to master in forex trading after your basic education on trading the forex, is your emotions. It played a huge part in my failures and now my quite success. Again if you are new to forex trading, take your time and get yourself educated.

If you are already trading a demo, you will find a strategy that turned my business around. It helped me to move my demo account from $50,000 to $155,000 in 2 months. And this results is now reflecting on my real account.

If you are completely new to forex and you do not know what a demo account is or what forex is, don't worry. You will pretty soon. There is a link on my blog to a complete FREE forex trading course. Learn everything you have too for free. With a solid foundation in forex trading education, you can easily evaluate a product to see if it is what the cost.

Caroline Bisong
I started my forex trading carrier back in 2002. Got educated and traded the demo on and off for more than 2 years. I decided to start trading live back in 2005 and it has been a wild ride and I have learnt quite a lot along the way. I hope to share my experience as a lay person in hopes that you will avoid my mistakes and improve your forex trading skills.

http://1-online-forex-trading.blogspot.com

Do You Have What It Takes To Be A Trader?

Whether you're a doctor, a basketball or tennis player, a musician, or even a cowboy, knowledge and skills are going to determine your status in your "community" of peers. The level of your knowledge and skills can either catapult you to world class status or usher you out the door; create increased (or decreased) demand for your services or performances; provide opportunities to win awards and generate tons of money if you're the best, or no awards and little money if you're not.

Whatever you choose to do in life, your knowledge and skill level will determine your success level. If you've been in the workforce for a while now, you probably already know that how much you know (knowledge) and how well you perform (skills) are major factors in whether or not the company will keep you or fire you. Let's take a look at how trading knowledge and skills determine your success in trading.

While many people believe that the goal of trading is to make money, professional traders know otherwise. Being an active, professional trader, I know that making money is a byproduct of the primary goal of trading, which is to acquire the necessary knowledge and skills to protect your capital. Simply put, it is extremely difficult to make money if you don't have the capital with which to make the money. Nearly all entrepreneurs would not have been able to start their businesses if they didn't first have seed money, a line of credit or loan, or investors to do so. Trading is no different. Trading is a business, not an investment. Successful traders know this. It's all about protecting your capital.

If you are still struggling with your trading when it comes to making money consistently, take a look at your level of trading knowledge and skills vs. those who are actually trading successfully. What do they know that you don't? Why are they doing well while you are not? Where did they get the knowledge and skills to do so well? It could be anything - from your

1. Knowledge (Have you mastered the concept behind candlestick charts, studied up on risk and money management in trading, established an understanding of the stock market price cycle like the back of your hand?),

2. Skills (How good are you at identifying Traps and 3-Bar Candlestick Plays, or how quick are you at responding (vs. reacting) to the trade signals with the proper set up?), Or even your

3. Psychology (Are you too desperate, unable to control your emotions, distracted?),

4. Habits (Do you have the discipline to follow your trading plan no matter what, the tenacity to focus on the charts on your computer screen 8+ hours a day, the determination to get up every morning no matter how bad it was the day before to do it all over again?).

5. Attitude (Are you willing to learn from your mistakes, to get help from experienced traders through coaching or mentoring, to practice patience and a willingness to do what it takes to succeed?).

At the end of the day, if you are deficient in your trading knowledge and skills, be prepared to work harder than those who are already successful. Commit to do what it takes to protect your capital and make money. If you don't, you may well be ushered out the door sooner than you would like.

Leroy Rushing is an active, professional day trader; trading coach; and eBook author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide.

Fundamental Analysis

It is commonly accepted that there are two major schools when formulating a trading strategy for any market, be it securities, futures, or currencies. These two disciplines are called fundamental analysis and technical analysis. The former is based on economic factors while the latter is concerned with price actions. Of course, the trader may opt to include elements of both disciplines while honing his or her personal trading strategy.

Supply and Demand

Fundamental analysis is a study of the economy and is based on the assumption that the supply and demand for currencies is a result of economic processes that can be observed in practice and that can be predicted. Fundamental analysis studies the relationship between the evolution of exchange rates and economic indicators, a relationship which it verifies and uses to make predictions.

For currencies, a fundamental trading strategy consists of strategic assessments in which a certain currency is traded based on virtually any criteria excluding the price action. These criteria include, but are not limited to, the economic condition of the country that the currency represents, monetary policy, and other elements that are fundamental to economies.

The focus of fundamental analysis lies in the economic, social, and political forces that drive supply and demand. There is no single set of beliefs that guides fundamental analysis, yet most fundamental analysts look at various macro factors.

Interest Rates

If there is an uncertainty in the market in terms of interest rates, then any developments regarding interest rates can have a direct effect on the currency markets. Generally, when a country raises its interest rates, the country's currency strengthens in relation to other currencies as assets are shifted away from it to gain a higher return elsewhere. Interest rates hikes, however, are usually not good news for stock markets. This is due to the fact that many investors withdraw money from a country's stock market when there is an increase in interest rates, causing the country's currency to weaken.

Knowing which effect prevails can be tricky, but usually there is an agreement among practitioners in the field as to what the interest rate move will do. The producer price index, the consumer price index, and the gross domestic product have proven to be the indicators with the biggest impact. The timing of interest rate moves is usually known in advance. It is generally known that these moves take place after regular meetings of the BOE (Bank of England), FED (U.S. Federal Reserve), ECB (European Central Bank), BO] (Bank of Japan), and other central banks.

Jason Stessler is an author for the website Forex Daily Signals:

http://www.forexdailysignals.com

Forex Daily Signals offers quality professional forex signals specifically for the use of investing and growing your money.

Make Money Fast - Want $100,000 Get Now Easily!

We all want to make money fast but the problem is we don't have much to start with and it is of course easier to make money when you it at your disposal. Well, if you have just $500.00 you can get 100,000 to invest. Lets look at how and putting it work to make money fast.

The way to do it is to open an online currency trading account - they will immediately let you trade your deposit x 200 which on $500, is $100,000

Hang on!

You may say I don't know how to trade currencies - and you may not but currency trading is a learned skill and many people start with small stakes and build wealth using leverage.

It's a fact that online currency trading is now open to all, with the rise of online trading and the money that can be made is truly life changing - however leverage is a double edged sword and can of course work for or against you

You need to make it work for you and restrict risk - so how do you do this?

If you want to make money and have a desire to succeed, then you will be prepared to learn forex trading the right way.

So if you know nothing about currency trading what do you need to learn?

The best way to trade is simply to look at forex charts learn repetitive patterns that continue to repeat and are a reflection of human nature - this is of course a learned skill, anyone can do it. You need to lock into the longer term trends and run them for profit and cut losing trades quickly.

Is it really that simple?

The answer is yes and no.

It's a fact that 95% of traders fail to make money at currency trading but it's not the market that's at fault it's their approach.

Most traders simply fail to appreciate that you need to have not only a good method - but the confidence and the discipline to execute it and stay with it, through periods of losses to achieve long term success.

Do not be fooled - obtaining trading discipline is not easy, but there is a big difference between something being easy and being achievable.

Again anyone can learn discipline - if they have the right attitude and a willingness to learn the correct way of trading.

Making money is never easy and you certainly wouldn't expect it to be with the rewards that are on offer in forex trading but again if you have desire and a willingness to learn you can.

Let me tell you an inspiring story...

In 1983 Richard Dennis a famous trader set out to prove that anyone could learn to trade successfully. In just two weeks, he taught a group of diverse people, all from different backgrounds, of both sexes and all ages, to trade - none had any previous experience.

The result?

They went on to become famous and within 4 years had made $100 million dollars!

Now I am not saying that you will become as rich as this group - but there is nothing to stop you becoming a competent and successful trader, creating wealth and an income that could change your life.

The real crux of this article is - do you have a desire to make money fast and do you have the willingness to learn the skills required?

If you do - then welcome to the world of global FX Trading and the opportunity to make money fast.

From the above you now know that you can learn forex trading and you know it's a challenge - but its one you can take up if you want to and the rewards as you have seen can be immense.

Live The Dream
Become A Professional Forex Trader From Home!

Get 2 x free trading guides and an exclusive novices guide to forex trading success visit our website at: http://www.learncurrencytradingonline.com