Tips for Forex Method Validation : See if Your Trading Method can Make you Rich

Every Forex trader finds himself literally drowned in all of the trading methods, systems and automated programs, day by day we are finding it hard the method that really works —at least for us. Any method out there, no matter how complicated, simple or “effective”, cannot guarantee you financial success unless YOU understand and learn to use it to your advantage.

I have made another article regarding the method validation for whatever trading method you are using, here is another in relation to that.

1. Technical Indicators. Any good trading method out there will avoid too many or wrong technical indicators. Any trader with too many forex indicators will find themselves confused and will have conflict in their profit potential. The key here is simplicity. The more simple indicators are to understand, the more it is effective.

If you want to find a good trading method, few forex indicators together can identify whether you have a strong trade opportunity or not. I have discovered 3 to 4 indicators working together to accomplish this. An easy trading method may mean simple; and simple is the key of being effective. Forex traders should be cautious if using more than 4 forex indicators.

2. Another, any good method should not be purely mechanical. By mechanical, I mean there will be no room for market interpretation. Any good method will allow a forex trader to see the larger picture. E.G. is a forex pair in an extended downtrend? If so, is now the time to buy an uptrend? A mechanical system will tell you “buy” but a forex trader who succumbs to this will not see the bigger picture or have his own interpretation and instead just follow the signals and may face a disappointing consequence.

3. A good method makes a good trader. The method you should be using should help you establish discipline. This means the actions of trading — buying, selling, setting stops, and the like. If you have to face too many decisions, you are more likely to end afraid, and may not profit because you did not make a trade. Fear brings you to nothing. A method you use should be easy to follow, because the way to remove fear is understanding.

The trading method that can make you rich should use simple indicators to identify a trending forex pair, and such a way provide a lower risk and higher profit potential. Any fx master’s method is more simple than you think, because it is easy to understand, apply therefore easier to lower risk and pull in the profits.

With these keys , I hope you are enlightened on what trading method you should follow. This information here and the other information in the articles I wrote should help you be saved from the headache and the heartbreak of a Forex loss.

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Using Forex Trading Signals

They say there is a shortcut to everything, provided you are ready to pay for it. This is true about Forex trading also; well sort of. If you are a novice trader, you may find Forex trading just a little bit too complex, with so many things happening at the same time. So much so that it is really difficult to follow everything closely. It is not that the Forex trading is inherently hard to understand, but it takes time and patience to comprehend its multiple aspects.

What if you have a very short supply of both? Does that automatically mean your Forex Trading career should end before it beings? Isn’t there any shortcut available to Forex trading so that you don’t need to go through the painful research and try to figure out trends every time you would like to trade, at least when you first start? You may find yourself asking all these questions. Also, it would be handy if you could tap into the market at every available opportunity. However there are times when moves may happen when you are not online. You would therefore be completely unaware of them.

Automatic Forex trading signals provide a solution of sorts to the problems mentioned above. You can receive automatic Forex trading signals either via software which you have to install on your computer, or via membership of a website that provides automatic trading signal services. The con side is that these are usually paid services. In case of software, it could a one-time payment. In this case, the system is yours to use as you please. However, in the case of enrolling to an automatic Forex trading signal service, you need to pay monthly membership fees, which usually vary between $50 and $500, generally.

The way these signals work is very simple. Your software or your signal-providing agency will do all the necessary research and signal you when to buy or sell particular currency pairs. The idea here is that it eliminates all research, speculation and strategizing that you need to do. Simply open a Forex account, get an automated Forex trading signal service and buy or sell according to the trading signals sent by the automatic service.

The mathematicians, software developers and experienced Forex traders usually work in collaboration in order to build such systems. Therefore one would expect that they would work well. However, like any product in the world, there are some services or software that are of good quality and some are really bad. Reputable sources would be a good place to start.

You will rightfully wonder how come, if these services are as successful as their owners claim, all Forex traders don’t use them. Experienced Forex traders usually already have a time-tested method, which they follow and have complete faith into. Therefore, they would not like to change it for anything as these strategies have worked out for them for years. Also, being very experienced, they do not find Forex marketing very complicated any more and feel no need to hand the control over to someone else, or even a machine for that matter. Newer traders are likely to be confused about whether it is right to trust an automatic service. The answer is that you don’t necessarily have to trust them completely.

People can have various reasons not to try out these methods. Using a Signal Service can be very useful to learn about the markets. A good way to use them is to ensure that, for every signal you get, you understand the reasons why. You can try a service for a short time, and use them to learn about Trading while you are actually trading yourself. If you think that you want to start trading but are feeling low on confidence, you can try out an automatic Forex trading signal service. If nothing, it will enhance your knowledge about how to conduct your trades.

Donald Ogilve is a Part-Time Forex Trader. To learn more about making money Forex Trading an hour a day visit Donald Ogilve’s Blog at ForexInitiate.com. There are great Forex Trading Resources here

Forex Trading Signals - Do Automatic Forex Signals Help You Trade Successfully?

Forex Trading Signals - Do Automatic Forex Signals Help You Trade Successfully?

The Forex market has quickly emerged as one of the most lucrative as well as popular markets in the world. With an average daily turnover of more than $1.3 trillion, traders are earning their fortunes everyday. Hundreds of online brokers now allow you to trade quickly and easily online, and various sites offering free news feeds such as http://ForexNewsMarket.com give traders quick access to market news feeds which may effect currencies.

While there’s clearly a lot of money to be made, one can also lose money trading in this sometimes unpredictable market. As a matter of fact, around 90% of traders never make a significant profit trading currencies.

So how can you be successful & make money in Forex?

Along with gaining experience, mastering trend following and using an Expert Advisor (EA), most successful traders use a Forex signal service. A Forex signal service is an automated robot or an EA which provides automatic trading signals via email, sms text message, an automated pop-up software or right on the signal service’s website.

Most Forex signal service’s deliver daily signals, telling you exactly when to enter a trade and when to exit in order to maximize profit. With all the signal services available, it’s difficult to know which one’s can actually make you money and which are just scams.

Well now you can choose a proven Forex signal service that’s been providing it’s members accurate trading signals for over 7 years. Visit this link for a special $4.95 trial version: Automatic Signal Service Trial

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Forex Wealth Can Be Made Inspite Of Economy In A Recession

If you are a Forex Trader, no matter what experience you have, this is information you don’t see everyday. It is possible to build more wealth from short term forex trading even if recession is been bothering you. It is just a matter of making the economy work for you.

It is true that there are successful traders out there, and some unsuccessful..yet. It is because they have not seen or recieved a forex training that is custom-made for soon to be elite traders. One of the top Forex Brokers has just released the March 2009 update of one of his multimedia training kits that defies all the odds that creates wealth and breaks the norm of the other forex traders.

If this 30++ year old forex instructor and trader showed you a custom made, multimedia “blueprint” that address every mistake you made or might make, will you grab it? This is based on the over 100,000 forex traders that took part in the study to determine what works in forex trading and what does not. Timing in a recession of the economy.

You shall have access to it later.

The result of this study is a multimedia system that shows that popular or “bandwagon” does not always mean effective in the Forex Markets. Instead, a system that reveals what the Forex Elite is doing.

The training introduction is called the Forex 4 Pack

20 minutes a day?

You will discover how the forex veteran spends 20 minutes a day trading with confidence, and maximizes the pip potential that most forex traders find in themselves hard to achieve, forex wealth.

You will also learn :

** How to “shake out” the good Forex brokers from the
unscrupulous ones. Many brokers won’t be prepared when you
ask them these 5 questions (part 1, page 16, & part 4).

** The “core essentials” of Forex trading that will let you
“leapfrog” over other traders, giving you a “fast track”
that would otherwise take months, or years to achieve (part
2).

** The 4 “golden rules” your Forex trading method MUST
follow if you want to have an edge over all other traders
(part 1, page 58).

** The “insiders formula” on how to determine the best mix
of technical indicators to use when trading Forex pairs
(part 1, page 27).

** Step-by-step tactics for applying the “Optimal Profit
Exit Strategy”. This is a deadly accurate way of enjoying
profit-taking as quickly as possible (part 1, page 37).

** The 4 market conditions that you should avoid at all
costs and that practically eradicate risk (part 3).

** How to drastically reduce your “time in the trenches”
trading Forex by spending only 20 minutes a day. These 2
discoveries make it all possible (part 1, page 70).

** …plus, there’s a TON more you’ll get to sink your teeth
into when you get the ‘4-Pack’…

Sadly, it isn’t for sale.

This is not like any other few page e-books that some people put value and sell off the net. Instead, it is a collection of reports, video tutorials, and even a scorecard you can use when choosing/evaluating a broker.

It is for free! Take your time and read it all. And is advisable to download it right away. Why? Because it may not be available always, it has a large file size and it can be cut off anytime if the servers have too much request for the material.

Trading Without Indicators - What Are You Supposed to Look At?

I know to most traders, the idea of trading without indicators just doesn’t make any sense. It’s like going to the supermarket without bringing any money. It’s like what’s the point?

I definitely know where they are coming from, as I felt the same exact way when I started to trade. I felt so reassured knowing that I had indicators such as Stochastics, MACD, Moving averages, RSI, etc…… on my charts. But the more I thought about it, it wasn’t a case of reassurance that kept those indicators on my charts, it was a complete lack of confidence that i couldn’t trade it for myself.

Trading without indicators takes the same kind of courage as taking off the training wheels on your bike when you are a kid. Sure, it’s a bit scary and you might even hurt yourself a little bit, but once you figured it out, you could never go back to the training wheels.

It’s the same exact concept when trading without indicators. Once you can see the market’s movement in all of its glory you can never go back to using indicators like Stochastics to figure out oversold/undersold, price divergence, and all this useless information.

When it comes to trading without indicators, you have to rely on yourself to be able to explain and understand the technical side of the market. It can’t be done for you. This is what truly separates the men from the boys when it comes to succeeding in the forex market.

John Templeton has been a successful forex trader after getting the right forex trading education. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.

How to Forex Trade Without the Frustration of Missing Good Trades

Would you like to learn how to Forex trade without missing all the good trades? If you have been trading the Forex for long you probably know the frustration of missing out on good trades. You may spend hours or days waiting for a signal to enter a trade and then when it happens you weren’t there at that moment watching the charts to make the trade. You then watch the market move in your direction without you, feeling sick about the money you just missed out on because you missed the trade.

The Forex can be very profitable but at the same time very frustrating. One of the advantages of the Forex markets is it’s open 24 hours a day. Unfortunately this can actually be more of a disadvantage because some of us have to sleep and have lives to live and we can’t watch the markets 24 hours a day. So how do you ensure you won’t miss the good trades?

There are several ways. You can team up with other people so you can take shifts and always watch the markets. This is what a lot of the large trading firms do. The problem with that is most new and small time traders can’t afford a staff and then there are concerns of trusting and depending on the other people.

You can also use charting software where you can set up alerts that will give you an alarm when a buy or sell signal is triggered. They can make a sound, send you an email or even call or text your cell phone. The problem is you might not be somewhere where you can get to your computer when it happens. And do you really want to be woken up at odd hours of the night to make your trades? I tried that for a while and I was left exhausted from broken sleep. And I didn’t sleep well to begin with knowing at any moment an alarm might go off.

The other option is to use automated trading software also called robots or bots. With a robot you can set it up to actually make the trades for you when the market gives it a signal. Once you set it up it will make the trades for you 24 hours a day while you are away living your life. After using a robot that’s all I use to trade now. I have no interest in going back to watching charts and staying up odd hours waiting for good trades. Many traders are starting to use robots and I think it’s only a matter of time before old style manual trading becomes obsolete.

If you want to know how to Forex trade using a robot I suggest you try one on a demo account first as with any new system and prove to yourself that it will make a profit before you ever use real money. Also make sure it has a money back guarantee. Some come with time tested winning trading systems already set up, just make sure the advertised results are from real live trading and not just back tests.

When you start using a good robot to trade I doubt that you will want to go back to manual trading.

What is the Best Forex Software Out There?

Looking for the best Forex software in the market may well be a very difficult task, given the number of software providers out there and the wide array of features they offer. However, before you go out choosing what software to use, it helps to take into consideration a few things.

What you must decide on before you go using software for your stock trading business is whether or not you need the assistance of trading software in the first place. Of course, stock trading is a complicated business. However, you do get the hang of it after some time of engaging in it, just like with any other business. Also, are you sure that using trading software will give you the advantage you need to gain an edge in the trading business?

These are two of the hundreds of questions that are out there regarding the use of trading software. Of course, veteran traders have no need for such software by reason of their experience and knowledge of the trends of the stock market. If any, trading software will be used by newbies, or those who are new to the stock trading business.

Fortunately, trading software has been proven to be of great assistance to those who need it. This is because the software is designed to analyze the trends of the stock market in the same way a veteran trader does. It takes into consideration the rise and fall of stock market prices and records them. Eventually, a database is built by the program and the good stocks are revealed to the user.

The final question which must be answered is, is there really such a thing as the best software for stock trading?

The answer is yes.

Let us face it, all trading software programs are expensive to purchase. Getting one from an illegal source will not work wonders either. There are hundreds of software providers out there who offer a lot of features. For practicality’s sake, the best software is not necessarily the cheapest one. You must take into consideration the sensitivity of the software that will have a direct relation to the accuracy of the data it will give you. The software must be able to consider the most intimate changes in the trends of stock market shares in order to simulate what a keen-eyed veteran trader would do. This way, it will be as if a veteran trader is doing your venturing for you.

So, after everything, it all comes down to price and function. The best Forex software that you can use for your stock trading business is one that is moderately priced and can give up-to-date and accurate predictions of stock market trends.

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Useful Forex Trading Tips to Make More Profit

There are many different important things which you need to consider before really getting started in the world of forex trading. It can be a very risky business so you need to have all of the right advice and information at your disposal so you can refer to it anytime you need it. Too many beginning forex traders fail to really make a name for themselves because they just don’t go about it the right way. This article will give you an edge so you can make as much profit as possible.

Before you begin trading make sure you do the proper amount of market research. The more prepared you are the better chance you will have of making wise financial decisions that will lead to profit as opposed to loss. Always limit currencies that you deal with to 2 pairs, as dealing with multiple pairs at once can get confusing. You have to be closely paying attention to the market trends of any currency you are using, so try to keep it simple.

When trading you also need to cultivate patience. Because nothing in the forex market is a done deal, you need to be ready to accept loss no matter how large it is. Just keep on doing what you are doing and try not to let it effect you. You should also never make any financial decisions, small or large, based on how you are feeling. Whether it is happy or sad, joyful or frustrated, using emotion to influence your choices in the forex market can often lead to a great amount of loss which is what you want to avoid at all costs.

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What are the Benefits

There are five things give trading the forex market some unique advantages.

1. 24 hour market

Since the forex market is worldwide, trading is continuous as long as there is a market open somewhere in the world. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.

2. High Liquidity

Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. In forex this means we can move large amounts of money into and out of foreign currency with minimal price movement.

3. Low Transaction Cost

In forex, typically the cost for a transaction is built into the price. It is called the spread. The spread is the difference between the buying and selling price.

4. Leverage

Forex Brokers allow traders to trade the market using leverage. Leverage is the ability to trade more money on the market than what is actually in the trader's account. If you were to trade at 50:1 leverage, you could trade $50 on the market for every $1 that was in your account. This means you could control a trade of $50,000 using only $1000 of capital.

5. Profit Potential from Rising and Falling Prices

The forex market has no restrictions for directional trading. This means, if you think a currency pair is going to increase in value; you can buy it, or go long. Similarly, if you think it could decrease in value you can sell it, or go short.

How Does Forex Trading Work?

Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you feel is going to change in value and place a trade accordingly. For example, if you had purchased 1,000 Euros in January of 2005, it would have cost you around $1,200 USD. Throughout 2005 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to close your trade at that point, you would have made $100.

Forex trades can be placed through a broker or market maker. order can be placed with just a few clicks and the broker then passes the order along to a partner in the interbank market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds

The Explosion of the Euromarket

A major catalyst to the acceleration of Forex trading was the rapid development of the eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The Eurodollar market first came into being in the 1950s when Russia’s oil revenue-- all in dollars -- was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.

London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London’s convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euromarket.

Forex History - The Evolution OF FX Markets

The Gold Exchange and the Bretton Woods Agreement

In 1967, a Chicago bank refused a college professor by the name of Milton Friedman a loan in pound sterling because he had intended to use the funds to short the British currency. Friedman, who had perceived sterling to be priced too high against the dollar, wanted to sell the currency, then later buy it back to repay the bank after the currency declined, thus pocketing a quick profit. The bank’s refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $35 per ounce of gold.

The Bretton Woods Agreement, set up in 1944, aimed at installing international monetary stability by preventing money from fleeing across nations, and restricting speculation in the world currencies. Prior to the Agreement, the gold exchange standard--prevailing between 1876 and World War I--dominated the international economic system. Under the gold exchange, currencies gained a new phase of stability as they were backed by the price of gold. It abolished the age-old practice used by kings and rulers of arbitrarily debasing money and triggering inflation.

But the gold exchange standard didn’t lack faults. As an economy strengthened, it would import heavily from abroad until it ran down its gold reserves required to back its money; consequently, the money supply would shrink, interest rates rose and economic activity slowed to the extent of recession. Ultimately, prices of goods had hit bottom, appearing attractive to other nations, who would rush into buying sprees that injected the economy with gold until it increased its money supply, and drive down interest rates and recreate wealth into the economy. Such boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and the free movement of gold.

After the Wars, the Bretton Woods Agreement was founded, where participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Countries were prohibited from devaluing their currencies to their trade advantage and were only allowed to do so for devaluations of less than 10%. Into the 1950s, the ever-expanding volume of international trade led to massive movements of capital generated by post-war construction. That destabilized foreign exchange rates as setup in Bretton Woods.

The Agreement was finally abandoned in 1971, and the US dollar would no longer be convertible into gold. By 1973, currencies of major industrialized nations floated more freely, as they were controlled mainly by the forces of supply and demand. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, giving rise to new financial instruments, market deregulation and trade liberalization.

In the 1980s, cross-border capital movements accelerated with the advent of computers and technology, extending market continuum through Asian, European and American time zones. Transactions in foreign exchange rocketed from about $70 billion a day in the 1980s, to more than $1.5 trillion a day two decades later.

What is Forex (Foreign Exchange)?

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

MG Financial, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's dealstation allows them to participate in FOREX trading by providing a combination of live quotes, real time and news analsis that attracts traders with an orientation towards fundamental and/or technical analysis.