By Josh Branyan
Big Profits Available to the Small Investor:
Making money in the currencies markets used to be exclusive to Banks and large financial institutions. For years they've been successfully using automated trading. In years past, because of the high cost, these automated programs were out of reach for the smaller investor.
And if you wanted to trade manually, it was very tedious and took a lot of technical knowledge. Normally a full time activity. With brokerages now offering very good terms, and online access readily available, a whole new wave of interest in the Forex markets has emerged.
Automated programs which were only available to the large Banks have become available at reasonable costs to small investors. One other item of note is that at some brokerages you can open an account with as little as $50.
Here's a look at the top reasons for the small investor to consider using an automated system and getting a share of the pie.
Top 10 Reason for using an Automated Trading Robot:
1. You don't have to continuously monitor your trades- a robot can monitor the markets 24/7 and auto execute your trades.
2. Reduces the chances of large losses- programmed stop losses which are normally the killer for inexperienced traders
3. Eliminates your emotions from trading- fixed entry and target exit points.
4. You can trade the currency markets with limited knowledge
5. Watches multiple currency pairs for you
6. Higher winning percentages
7. You can handle multiple trading accounts
8. Reasonably priced- most fall in the range of $75 to $150
9. Support communities that share ideas, trade successes, results,and give assistance
10. Ease of use- you no longer have to be a whiz with a computer to trade like a pro for profits. They can be setup in as little as 5 minutes.
Even with an Automated Trading Robot it's important you learn the basic terms of the market. This can be resolved by using a demo account (which is free with any Brokerage) and becoming familiar with the trading platforms and to get a feel with your Automated System.
If you'd like to learn how to use a "Trading Robot for Profits"
visit http://www.Forex-Insight.com
Article Source: http://EzineArticles.com/?expert=Josh_Branyan http://EzineArticles.com/?Automated-Forex---Top-10-Reasons-to-Trade-With-a-Forex-Robot&id=2276181
Wednesday, April 29, 2009
Friday, April 17, 2009
Forex Technical Analysis Tips - 3 Best Forex Indicators All Traders Must Use
By Kelvin Dee
The only way you can succeed in doing trading on the foreign exchange market is to do some forex technical analysis. Technical analysis involves reading particular forex indicators to project certain market movements and to time your trades properly. Any forex trader that does not do forex technical analysis is set for big losses. Forex technical analysis allows you to look at the market fundamentals and cross check it with the human component of the forex equation. That is, how other traders will react to the movements in the market. Looking at forex charts and forex indicators will give you a graphical representation of these market movements and then given your understanding of human behaviour, project whether your trades are likely to go in one direction or another.
There are a number of forex indicators as you will learn from your basic forex trading education. Some of these are the Bollinger Bands, the Stochastics, the Relative Strength Indices, and the MACDs. Chances are, you will be using a combination of these forex indicators. The following details three of these forex market indicators to help you choose which one to use in your forex trading.
1. Bollinger Bands - These forex indicators are used to measure how volatile the market is. Two common strategies are executed using this indicator: the Bollinger Bounce and the Bollinger Squeeze. In the bounce, the basic premise is that the price usually tends to go back to the middle of the bands. Logically, you execute a buying order when the price reaches the lower Bollinger Band and a selling order when the price reaches the upper Bollinger Band. The Squeeze, on the other hand, is usually used to ride on breakouts as they appear.
2. Stochastics - These forex indicators is used to show whether the market is overbought or oversold. In any one of these scenarios, there are opportunities for major trades. In a market that is overbought and moving average lines are upwards of 70, it is a good time to sell. Inversely, in a market that is oversold and the moving average lines are downwards of 30, it is time to buy.
3. Relative Strength Index - Otherwise called as the RSI, this indicator also indicates a market that is overbought or oversold. Its upper and lower limits are 80 and 20 respectively. The RSI is usually used to look for trends in the market. When a trend is forming, it would be good to enter a trade at a time when the RSI is either below or above 50.
Which ones of these forex technical analysis tools you use will depend on the kind of trader you are and what your trading strategy is. There is no way you get into a long term profitable forex trading business without getting into forex technical analysis. It could be quite tricky to do forex technical analysis especially to new traders and it could take some amount of practice before you get comfortable. Persistency and quick thinking would be to your favor when trying to master forex technical analysis.
Kelvin is a Forex enthusiast and a full time Forex trader. His website at http://www.How-To-Trade-Currency.com offers simple yet powerful Forex tips and strategies to help other traders to make their 20 pips a day. Kelvin's Forex newsletter is jammed packed with Forex tips and techniques for other Forex enthusiast. Subscribe for Free Forex Strategies newsletter now.
Article Source: http://EzineArticles.com/?expert=Kelvin_Dee http://EzineArticles.com/?Forex-Technical-Analysis-Tips---3-Best-Forex-Indicators-All-Traders-Must-Use&id=2142437
The only way you can succeed in doing trading on the foreign exchange market is to do some forex technical analysis. Technical analysis involves reading particular forex indicators to project certain market movements and to time your trades properly. Any forex trader that does not do forex technical analysis is set for big losses. Forex technical analysis allows you to look at the market fundamentals and cross check it with the human component of the forex equation. That is, how other traders will react to the movements in the market. Looking at forex charts and forex indicators will give you a graphical representation of these market movements and then given your understanding of human behaviour, project whether your trades are likely to go in one direction or another.
There are a number of forex indicators as you will learn from your basic forex trading education. Some of these are the Bollinger Bands, the Stochastics, the Relative Strength Indices, and the MACDs. Chances are, you will be using a combination of these forex indicators. The following details three of these forex market indicators to help you choose which one to use in your forex trading.
1. Bollinger Bands - These forex indicators are used to measure how volatile the market is. Two common strategies are executed using this indicator: the Bollinger Bounce and the Bollinger Squeeze. In the bounce, the basic premise is that the price usually tends to go back to the middle of the bands. Logically, you execute a buying order when the price reaches the lower Bollinger Band and a selling order when the price reaches the upper Bollinger Band. The Squeeze, on the other hand, is usually used to ride on breakouts as they appear.
2. Stochastics - These forex indicators is used to show whether the market is overbought or oversold. In any one of these scenarios, there are opportunities for major trades. In a market that is overbought and moving average lines are upwards of 70, it is a good time to sell. Inversely, in a market that is oversold and the moving average lines are downwards of 30, it is time to buy.
3. Relative Strength Index - Otherwise called as the RSI, this indicator also indicates a market that is overbought or oversold. Its upper and lower limits are 80 and 20 respectively. The RSI is usually used to look for trends in the market. When a trend is forming, it would be good to enter a trade at a time when the RSI is either below or above 50.
Which ones of these forex technical analysis tools you use will depend on the kind of trader you are and what your trading strategy is. There is no way you get into a long term profitable forex trading business without getting into forex technical analysis. It could be quite tricky to do forex technical analysis especially to new traders and it could take some amount of practice before you get comfortable. Persistency and quick thinking would be to your favor when trying to master forex technical analysis.
Kelvin is a Forex enthusiast and a full time Forex trader. His website at http://www.How-To-Trade-Currency.com offers simple yet powerful Forex tips and strategies to help other traders to make their 20 pips a day. Kelvin's Forex newsletter is jammed packed with Forex tips and techniques for other Forex enthusiast. Subscribe for Free Forex Strategies newsletter now.
Article Source: http://EzineArticles.com/?expert=Kelvin_Dee http://EzineArticles.com/?Forex-Technical-Analysis-Tips---3-Best-Forex-Indicators-All-Traders-Must-Use&id=2142437
Best Forex Trading Indicator - For Trend Followers Simple Moving Averages
By Kelly Price
The simple moving average is one of the most effective tools you can use. It's simple to understand and easy to use and if you are interested in getting in on trends, its one of the best forex trading indicators if used correctly...
Here we will look at the best periods to use and how to apply them but first let's take a look at the the equation for a moving average is very simple and is:
The closing price is added up and divided by the period of the moving average.
You can of course use as many days as you like, traders typically use between 5 and 200 days but which ever time frame is used, the aim is the same:
To identify trends over specific periods of time and smooth out the day-to-day price fluctuations caused by market volatility.
This is based on the concept that short term price spikes, are simply caused by human emotion and don't last and prices will return back to the moving average or fair value. The real value of moving averages is in finding value areas to buy or sell back into in strong trends and when, a moving average is broken, to indicate when a trend is over.
What are the best Time periods?
This of course is all down to personal preference and to a degree how volatile the market is you are trading.
My own view based around 20 odd years of trading, is that short term averages are of little use i.e. under 10 days. Why? Because you are trying to get the longer term value and if the average used is to short, it ends up being part of the price spike!
Two Periods I Like are:
20 Day MA
When a market is trending strongly and you want to get in a trend - look at a 20 day Moving average to buy or sell back to. This is an excellent one to use, simply wait for the move to the value area and time your trading signal. If a market is trending strongly, this will give you plenty of opportunities to get in at good risk to reward.
40 Day MA
I like this one as my last line of defense in a trend to trigger a stop loss and go flat and also to indicate if a new counter trend may be emerging.
The two above are time periods I like to use - but everyone has there favorite period to put into their forex trading strategy.
Simple Yes but Very Effective if Combined with Momentum
Moving averages maybe simple but the logic is timeless. Price spikes are emotional and don't last and prices will always come back to fair value again and a look at any forex chart will show you this. This repeats over and over again, as human nature never changes and moving averages allow you to spot areas of value.
While we consider it one of the best forex trading indicators for trend followers and use it - never simply buy or sell, without confirming price momentum is in your favor first. It identifies the area to watch NOT the trading signal.
In the next article in this series we will look at the best momentum indicator to use with moving averages for better market timing.
NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info on [http://www.learncurrencytradingonline.com/subscribe.html]Best Forex Trading Indicators visit our website at: http://www.learncurrencytradingonline.com
Article Source: http://EzineArticles.com/?expert=Kelly_Price http://EzineArticles.com/?Best-Forex-Trading-Indicator---For-Trend-Followers-Simple-Moving-Averages&id=1565112
The simple moving average is one of the most effective tools you can use. It's simple to understand and easy to use and if you are interested in getting in on trends, its one of the best forex trading indicators if used correctly...
Here we will look at the best periods to use and how to apply them but first let's take a look at the the equation for a moving average is very simple and is:
The closing price is added up and divided by the period of the moving average.
You can of course use as many days as you like, traders typically use between 5 and 200 days but which ever time frame is used, the aim is the same:
To identify trends over specific periods of time and smooth out the day-to-day price fluctuations caused by market volatility.
This is based on the concept that short term price spikes, are simply caused by human emotion and don't last and prices will return back to the moving average or fair value. The real value of moving averages is in finding value areas to buy or sell back into in strong trends and when, a moving average is broken, to indicate when a trend is over.
What are the best Time periods?
This of course is all down to personal preference and to a degree how volatile the market is you are trading.
My own view based around 20 odd years of trading, is that short term averages are of little use i.e. under 10 days. Why? Because you are trying to get the longer term value and if the average used is to short, it ends up being part of the price spike!
Two Periods I Like are:
20 Day MA
When a market is trending strongly and you want to get in a trend - look at a 20 day Moving average to buy or sell back to. This is an excellent one to use, simply wait for the move to the value area and time your trading signal. If a market is trending strongly, this will give you plenty of opportunities to get in at good risk to reward.
40 Day MA
I like this one as my last line of defense in a trend to trigger a stop loss and go flat and also to indicate if a new counter trend may be emerging.
The two above are time periods I like to use - but everyone has there favorite period to put into their forex trading strategy.
Simple Yes but Very Effective if Combined with Momentum
Moving averages maybe simple but the logic is timeless. Price spikes are emotional and don't last and prices will always come back to fair value again and a look at any forex chart will show you this. This repeats over and over again, as human nature never changes and moving averages allow you to spot areas of value.
While we consider it one of the best forex trading indicators for trend followers and use it - never simply buy or sell, without confirming price momentum is in your favor first. It identifies the area to watch NOT the trading signal.
In the next article in this series we will look at the best momentum indicator to use with moving averages for better market timing.
NEW! 2 X FREE ESSENTIAL TRADER PDFS ESSENTIAL FOREX TRADING COURSE
For free 2 x trading Pdf's, with 50 of pages of essential info on [http://www.learncurrencytradingonline.com/subscribe.html]Best Forex Trading Indicators visit our website at: http://www.learncurrencytradingonline.com
Article Source: http://EzineArticles.com/?expert=Kelly_Price http://EzineArticles.com/?Best-Forex-Trading-Indicator---For-Trend-Followers-Simple-Moving-Averages&id=1565112
Sunday, April 12, 2009
Best Forex Software - Can it Make Easy Profit For You?
By Allisson Wood
Forex trading for a beginner could be a potential maze with major pitfalls. It has humongous data to handle, complex analyses to be done and numerous decision points to wade through. All this could deter a novice from venturing into the forex market. But, there is so much of profit waiting to be made in the forex market. How can profits be achieved? How can this forex trading complexity be tackled effectively?
Automated forex software is the answer to the prayers of forex traders. Best forex software is available to lift the load of complexity surrounding trade decisions in the forex market. Also known popularly as forex robots, these software are a result of technological innovations and forex trading wizardry. These robots come with minimal or no manual intervention.
All the user needs to do with the best forex software is to down load it, create a trading account and unleash the software into the forex market and just sit back and watch the profits pouring in! It should also be able to trade 24 hours a day, 5 days a week, when the forex market is active.
Forex robots are meant not just for novices. The best forex software is used even by experienced and highly successful traders. They make the forex trading process easy, fun and quick. And of course, most profitable too. They have the best built in algorithm or algorithms to help make winning trade decisions.
The algorithms are written in such a way that all the complexity of analyses considering several parameters, are handled logically and precisely. Not only that, all the unlikely trades that are potential profit makers should be fished out and utilized. So, trade decisions are always assured of being sound decisions that are highly likely to bring home profits.
The best forex software is very fast. Because of their speed, a lot of time is saved from the decision making process which can in turn be channeled into the actual forex trading. Small trade accounts or big trade accounts, there are profits to be made in the forex market using it.
Risks in the forex market are very high. If not taken into consideration, they could damage the trading accounts by booking heavy losses. There fore, the forex software should have risk mitigation factored in. When ever there is an untoward situation, it should stop the trading to avoid or minimize losses.
Are you ready to make money with best forex software? Check the site at http://automated-forex-software.com/best-forex-trading-software-products.html to access the best forex software.
Article Source: http://EzineArticles.com/?expert=Allisson_Wood http://EzineArticles.com/?Best-Forex-Software---Can-it-Make-Easy-Profit-For-You?&id=2043797
Forex trading for a beginner could be a potential maze with major pitfalls. It has humongous data to handle, complex analyses to be done and numerous decision points to wade through. All this could deter a novice from venturing into the forex market. But, there is so much of profit waiting to be made in the forex market. How can profits be achieved? How can this forex trading complexity be tackled effectively?
Automated forex software is the answer to the prayers of forex traders. Best forex software is available to lift the load of complexity surrounding trade decisions in the forex market. Also known popularly as forex robots, these software are a result of technological innovations and forex trading wizardry. These robots come with minimal or no manual intervention.
All the user needs to do with the best forex software is to down load it, create a trading account and unleash the software into the forex market and just sit back and watch the profits pouring in! It should also be able to trade 24 hours a day, 5 days a week, when the forex market is active.
Forex robots are meant not just for novices. The best forex software is used even by experienced and highly successful traders. They make the forex trading process easy, fun and quick. And of course, most profitable too. They have the best built in algorithm or algorithms to help make winning trade decisions.
The algorithms are written in such a way that all the complexity of analyses considering several parameters, are handled logically and precisely. Not only that, all the unlikely trades that are potential profit makers should be fished out and utilized. So, trade decisions are always assured of being sound decisions that are highly likely to bring home profits.
The best forex software is very fast. Because of their speed, a lot of time is saved from the decision making process which can in turn be channeled into the actual forex trading. Small trade accounts or big trade accounts, there are profits to be made in the forex market using it.
Risks in the forex market are very high. If not taken into consideration, they could damage the trading accounts by booking heavy losses. There fore, the forex software should have risk mitigation factored in. When ever there is an untoward situation, it should stop the trading to avoid or minimize losses.
Are you ready to make money with best forex software? Check the site at http://automated-forex-software.com/best-forex-trading-software-products.html to access the best forex software.
Article Source: http://EzineArticles.com/?expert=Allisson_Wood http://EzineArticles.com/?Best-Forex-Software---Can-it-Make-Easy-Profit-For-You?&id=2043797
Forex Trading - How to Start Making A Profit In Forex
By Nathan Pennington
So, you're a beginner in forex and need a simple way to beginning turning a profit. Or perhaps you're an experienced trader who has just had trouble turning a profit? There is a simple set of steps you can take.
1) Use a proven system. This may sound very obvious, but you need to use a proven system, or nothing else matters. How do you get a proven system?
You can find systems in forums. You can find them for sale. In general, you want to stay away from the highly commercial looking websites. They are often put together by people who don't even trade. The system must be proven.
2) Avoid systems that trade "fast" timeframes. These are problematic. It is a known factor that the market becomes more random on the shorter time frames (anything less than 1 hour bars/candles). Your daily bars the most stable. The trends are much clearer there (so are the trend reversals).
Honestly, why not make it easy on yourself? There is the lure of fast, easy, compounding money on the really fast charts. That is an illusion. Ignore the phantom and go after what is real. Stick with the slow time frames.
Does it seem like I'm harping on this point too much? It's really that important. Ignore it and your own financial peril.
3) Trade small. Find a broker that offers micro lots. Most won't advertise it, you'll have to write to them and ask. Micro lots are sized at $1000 instead of the $10,000 mini lot size.
Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
Download it free here: [http://www.winningforextrading.com/html/fx.html]Forex Trading
Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide Article Source: http://EzineArticles.com/?expert=Nathan_Pennington http://EzineArticles.com/?Forex-Trading---How-to-Start-Making-A-Profit-In-Forex&id=462349
So, you're a beginner in forex and need a simple way to beginning turning a profit. Or perhaps you're an experienced trader who has just had trouble turning a profit? There is a simple set of steps you can take.
1) Use a proven system. This may sound very obvious, but you need to use a proven system, or nothing else matters. How do you get a proven system?
You can find systems in forums. You can find them for sale. In general, you want to stay away from the highly commercial looking websites. They are often put together by people who don't even trade. The system must be proven.
2) Avoid systems that trade "fast" timeframes. These are problematic. It is a known factor that the market becomes more random on the shorter time frames (anything less than 1 hour bars/candles). Your daily bars the most stable. The trends are much clearer there (so are the trend reversals).
Honestly, why not make it easy on yourself? There is the lure of fast, easy, compounding money on the really fast charts. That is an illusion. Ignore the phantom and go after what is real. Stick with the slow time frames.
Does it seem like I'm harping on this point too much? It's really that important. Ignore it and your own financial peril.
3) Trade small. Find a broker that offers micro lots. Most won't advertise it, you'll have to write to them and ask. Micro lots are sized at $1000 instead of the $10,000 mini lot size.
Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
Download it free here: [http://www.winningforextrading.com/html/fx.html]Forex Trading
Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide Article Source: http://EzineArticles.com/?expert=Nathan_Pennington http://EzineArticles.com/?Forex-Trading---How-to-Start-Making-A-Profit-In-Forex&id=462349
Sunday, April 5, 2009
How to Make Money Forex Trading With No Previous Trading Experience
By Alex Cadens
In order to make money forex trading you need to have a feel for the market movements that usually comes with education and experience. This allows you to read what is going on within the forex market at any given time thus enabling you to spot the right time to place a trade for a profit.
But if you do not have a previous forex education or trading experience, you still can make money forex trading by using technology to your advantage, as even expert traders rely on digital tools and resources to ensure a more profitable performance.
Indeed, these days practically no one carries out a forex trading operation without some help from a forex software of some kind, and that is because a software -provided that is has been well conceived and designed- will make split second and highly accurate decisions that no human could make, thus taking advantage of trading opportunities that we would likely miss.
These forex softwares can analyze the market in real time and instantly take action once the conditions are right. Also, these robots -as some people call them- will not be overtaken by fear, impatience or greed, factors that usually conspire to make us fail within the forex market.
There are only a few softwares that will actually do the trick, so it is important that you start using the ones that have been proven to work and perform consistently.
So in order to make money forex trading you do not necessarily need to have previous trading experience (although having it will not hurt), all you need is a reliable forex software by your side and you will be on the right path to consistent profits.
Therefore, go ahead and get yourself a good forex trading software, but before you do I recommend you read the analysis provided at this site, as it will help you make informed decision: [http://www.specialonlinebusinessreviewauthority.com/best-forex-trade-systems.html]http://www.specialonlinebusinessreviewauthority.com. Whatever your choice, just make sure you have one, because forex trading can really become the most profitable business you will ever run from you pc once you have the right tools at hand.
Article Source: http://EzineArticles.com/?expert=Alex_Cadens http://EzineArticles.com/?How-to-Make-Money-Forex-Trading-With-No-Previous-Trading-Experience&id=1586231
In order to make money forex trading you need to have a feel for the market movements that usually comes with education and experience. This allows you to read what is going on within the forex market at any given time thus enabling you to spot the right time to place a trade for a profit.
But if you do not have a previous forex education or trading experience, you still can make money forex trading by using technology to your advantage, as even expert traders rely on digital tools and resources to ensure a more profitable performance.
Indeed, these days practically no one carries out a forex trading operation without some help from a forex software of some kind, and that is because a software -provided that is has been well conceived and designed- will make split second and highly accurate decisions that no human could make, thus taking advantage of trading opportunities that we would likely miss.
These forex softwares can analyze the market in real time and instantly take action once the conditions are right. Also, these robots -as some people call them- will not be overtaken by fear, impatience or greed, factors that usually conspire to make us fail within the forex market.
There are only a few softwares that will actually do the trick, so it is important that you start using the ones that have been proven to work and perform consistently.
So in order to make money forex trading you do not necessarily need to have previous trading experience (although having it will not hurt), all you need is a reliable forex software by your side and you will be on the right path to consistent profits.
Therefore, go ahead and get yourself a good forex trading software, but before you do I recommend you read the analysis provided at this site, as it will help you make informed decision: [http://www.specialonlinebusinessreviewauthority.com/best-forex-trade-systems.html]http://www.specialonlinebusinessreviewauthority.com. Whatever your choice, just make sure you have one, because forex trading can really become the most profitable business you will ever run from you pc once you have the right tools at hand.
Article Source: http://EzineArticles.com/?expert=Alex_Cadens http://EzineArticles.com/?How-to-Make-Money-Forex-Trading-With-No-Previous-Trading-Experience&id=1586231
Forex Trading - 3 Simple Tips To Make Money Fast
By Kelly Price
If you are just starting out in forex trading or an experienced trader not making the gains you would like then these 3 tips are for you. There simple to learn easy to apply and could help you make triple digit annual gains so lets look at them.
1. Trade Less For Bigger Profits
Most traders think that they need to be in the market All the time in case they miss a move or the more they trade the more likely they are to be successful – but this is totally incorrect.
In Forex trading you make your money from being Right and that’s it – the effort you put in does not affect the amount of money you make. In fact in most instances the harder you try and more you trade, the greater your chances of failure.
Why?
Quite simply because the high odds trades don’t come around that often.
This philosophy is based on the famous Pareto principle the 80 / 20 rule.
The rule states that 80% of your results come from 20% of your activities.
This is true in many areas of life including trading Forex.
In forex trading by focusing on the trades with the best odds and ignoring the others, you can improve your profits overall.
By only focusing on this 20%, you will see bigger gains. This is really a common sense rule, yet few Forex traders stop to think about it. Most trade too much and try and force profits but if they were disciplined, patient and only focused on the best trades they would win more.
I know a trader who only trades about 6 times a year and yet they make over 100% annualized gains!
Think about trading less and you will see the logic of the above argument.
2. Don’t Diversify
When you do this resist the allure of diversification, it may reduce risk but if you have a high odds trade, why dilute its potential profit by diversifying with a marginal trade?
If you have a high odds trade go for it and this leads directly on to the next point.
3. Risk More Per Trade
As you only have one trade to focus on and it’s a good one risk as much as you can afford on it forget the accepted investment wisdom of 2 or 5% risk 10 25% minimum – if you believe in the trade go for it.
This is not being rash – its simply acknowledging an investment fact:
Risk goes with reward and the more you risk the more you can make.
This doesn’t mean being rash but your better to risk a lot on a high odds trade, than risk a little on a number of trades with poor profit potential.
Finally – To Make BIG Profits Learn To Love RISK!
The reason most traders never make any money is they are so afraid of risk they actually create it. They trade marginal trades, don’t risk enough and dilute their profit potential.
The fact is if you want to trade currencies you need to enjoy risk and be a speculator and confront and conquer risk – If you do you will make a lot of money. On the other hand if you don’t enjoy risk – don’t trade Forex.
NEW! FREE Trader PDF'S - Forex Profits Alerts and Much More
On all aspects of becoming a profitable trader including: Free critical trader reports, weekly and daily newsletters, and updates on the best high reward trades via Forex Trading Alerts visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price http://EzineArticles.com/?Forex-Trading---3-Simple-Tips-To-Make-Money-Fast&id=721717
If you are just starting out in forex trading or an experienced trader not making the gains you would like then these 3 tips are for you. There simple to learn easy to apply and could help you make triple digit annual gains so lets look at them.
1. Trade Less For Bigger Profits
Most traders think that they need to be in the market All the time in case they miss a move or the more they trade the more likely they are to be successful – but this is totally incorrect.
In Forex trading you make your money from being Right and that’s it – the effort you put in does not affect the amount of money you make. In fact in most instances the harder you try and more you trade, the greater your chances of failure.
Why?
Quite simply because the high odds trades don’t come around that often.
This philosophy is based on the famous Pareto principle the 80 / 20 rule.
The rule states that 80% of your results come from 20% of your activities.
This is true in many areas of life including trading Forex.
In forex trading by focusing on the trades with the best odds and ignoring the others, you can improve your profits overall.
By only focusing on this 20%, you will see bigger gains. This is really a common sense rule, yet few Forex traders stop to think about it. Most trade too much and try and force profits but if they were disciplined, patient and only focused on the best trades they would win more.
I know a trader who only trades about 6 times a year and yet they make over 100% annualized gains!
Think about trading less and you will see the logic of the above argument.
2. Don’t Diversify
When you do this resist the allure of diversification, it may reduce risk but if you have a high odds trade, why dilute its potential profit by diversifying with a marginal trade?
If you have a high odds trade go for it and this leads directly on to the next point.
3. Risk More Per Trade
As you only have one trade to focus on and it’s a good one risk as much as you can afford on it forget the accepted investment wisdom of 2 or 5% risk 10 25% minimum – if you believe in the trade go for it.
This is not being rash – its simply acknowledging an investment fact:
Risk goes with reward and the more you risk the more you can make.
This doesn’t mean being rash but your better to risk a lot on a high odds trade, than risk a little on a number of trades with poor profit potential.
Finally – To Make BIG Profits Learn To Love RISK!
The reason most traders never make any money is they are so afraid of risk they actually create it. They trade marginal trades, don’t risk enough and dilute their profit potential.
The fact is if you want to trade currencies you need to enjoy risk and be a speculator and confront and conquer risk – If you do you will make a lot of money. On the other hand if you don’t enjoy risk – don’t trade Forex.
NEW! FREE Trader PDF'S - Forex Profits Alerts and Much More
On all aspects of becoming a profitable trader including: Free critical trader reports, weekly and daily newsletters, and updates on the best high reward trades via Forex Trading Alerts visit our website at: http://www.learncurrencytradingonline.com/index.html
Article Source: http://EzineArticles.com/?expert=Kelly_Price http://EzineArticles.com/?Forex-Trading---3-Simple-Tips-To-Make-Money-Fast&id=721717
Subscribe to:
Posts (Atom)
