Monday, February 27, 2017

Four Things to Expect From Free Forex Signal Providers

Everyone who knows how this intricate world of numbers and profits moves will agree that Forex trading is quite literally a minefield - one wrong step and all your future endeavours of making it big will be blown to bits. Trading in currency is not for the faint hearted, nor is it for people who don't fully understand complexities involved in it. Free Forex signal providers however, serve as a guiding light, helping you navigate this minefield, avoid the fallacies and make a killing in currency trade. There are many things you can expect from these service providers - various ways in which they can help you achieve your profit goals. Here is a list of four things that a free Forex signal provider is expected to provide you with:
Reliable trade signals
Until you are ready and prepared to take command of the ship, it would be better to test the turbulent waters of Forex trading under the guidance of a free Forex signal provider. Reliable, accurate, consistent and timely signals offered by these service providers can help you take the right decisions and make a profit in currency trading. The expertise and market understanding of professional trading signal providers can always be relied upon to help you make the right calls.
Variant currency pairs
Different traders select different currency pairs to increase their trade spread and cash-in on market movements. For example, the USD/JPY trade will operate very differently as compared to the EUR/USD. A Forex signal provider that deals in a wide range of currency pairs will be the best choice for you, at least till the time you understand the market better and are able to select the options that you like working with.
Consistent support
Forex trading is a highly technical world for which you will need time and patience to understand. The Forex signal provider must be your guide, available to support you, clear your doubts about the platform, its technical aspects and trade logics, 24*7. For such a company - your profitability and satisfaction hold the highest degree of priority.
High volume trades
One of the best ways to ensure consistent profits in Forex trading is making multiples trades during the day in different currencies and segments. Forex signal providers understand this fact and make sure that you get a large volume of tips and trade signals to ensure you get a fair chance of making money in currency trade.
The right Forex signal provider can make or break your stint on the currency market. Make the most of your money!

Forex System Reviews - Is Forex Morning Trade Worth The Investment?

As you can imagine, I was very skeptical when I came across the Forex Morning Trade System for the first time, not in the least because there are hundreds of Forex systems out there with big claims they can't deliver on. As I read through the website though, I was sufficiently impressed that the Forex Morning Trade System is really quite different from many of the systems out there.
I read through a number of Forex system reviews, which were all positive, another good sign. I don't put my trust in Forex system reviews alone though, so I decided to take matters into my own hands and test Forex Morning Trade out for myself. By the end of this Forex system review, you'll know if the it is a worthwhile investment.
If your experiences with automatic Forex trading systems has mostly been bad, then you can understandably be cautious when considering the Forex Morning Trade System. What caught my attention with Forex Morning Trade was that it only traded once a day, and aimed for 30-40 pips in profit with a 1:1 risk to reward ratio. Most other automatic Forex trading systems trade all day long, collect 5-10 pips in profit when they win, and blow 100-200 pips when they lose. That means that with the Forex Morning Trade System, I wouldn't lose a week or even a month of profit in just a couple of losing trades like most other systems would.
Also, while most automatic Forex trading systems don't show losses in their account statement, Forex Morning Trade does. We all know that systems will have losing trades, so it was a very good sign for me that the Forex Morning Trade System showed that it could have good monthly profits while still having quite a few losing trades in the mix. That was the feedback that I got from reading most Forex system reviews as well. The fact that it was available as an automatic Metatrader 4 expert advisor was an added bonus that makes trading it a lot more convenient for me, given that I'm in a different time zone from the UK.
I decided to buy the Forex Morning Trade system on a Sunday evening to give myself a full first week of trading, and I was really impressed with how easy it was to understand the basic principles behind the system and to install the Metatrader 4 expert advisor. All the instructions were laid out in a clear, step by step format which really helped, and I could see that the system had been updated with a few minor improvements to enhance its profitability, which showed me that there was a good ongoing support system in place. I personally have not contacted support for any reason, but based on the Forex system reviews I've read they are very responsive when called upon.
Well, as luck would have it, my first trade was a losing trade, but I managed to end the week on a positive note with a profit of +30 pips with a total of 2 winners, 1 loser and 2 no trades. I've traded the Forex Morning Trade System for just over 6 months now, and it has made me 300 pips on average each month, which is a result that has far exceeded my expectations. Overall, I'm happy with the initial performance of Forex Morning Trade and am quietly optimistic about putting my money into it moving forward.
I highly recommend Forex Morning Trade for its consistent and reliable returns, little to no time commitment on my part, and the great results that I've been seeing from it. Everything that I've experienced has been mostly in line with the Forex system reviews put out by others, so I know that I'm not the only 'lucky' one. Thank you for reading my review, and I hope that Forex Morning Trade will be just as successful for you as it has been for me.
Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.

No Loss Forex Robot - Does One Actually Exist?

Is there such a thing as a no loss Forex robot? Many Forex robot sellers would have you believe that their automatic Forex trading system can look into the future and avoid all losing trades, but the truth is that it's impossible to build a system that will never lose. In fact, you don't need a no loss Forex robot to make money in Forex trading. Believe it or not, there are many profitable Forex trading systems that suffer losses up to 50% and even 90% of the time! By the end of this article, you'll know why you don't need a no loss Forex robot to be wildly profitable in the Forex markets.
The Myth Of A No Loss Forex Robot
The myth of a no loss Forex robot has been conveniently propagated by Forex robot sellers for years to sell more systems. It's such a big selling point because let's be honest, we don't like to lose! Forex robot sellers know that, and so they try to design their automatic Forex trading systems in such a way that they appear to be the real deal... until it's too late.
If you're thinking, "But Thad, I've seen their live trading account records and it's had no losses in the last 3 months!" You're right, they haven't had a loss yet, but if you look at their profits per trade, chances are that they're only bringing in 3-5 pips in profit, and at the same time risking a 200-500 pip loss because the system uses a wide stop. These automatic Forex trading systems can go for weeks and even months without a loss, but when it comes, you'll lose all your profits and may even blow up your account!
Do You Really Need A No Loss Forex Robot?
When the whole world seems like it's going crazy, then it's often time to change your assumptions. In this mad world of automatic Forex trading systems, most people don't want to lose... and lose big as a result. But do you really need to have a no loss Forex robot to make lots of money trading Forex? Well, no, of course not! In fact, you can have a system that makes losing trades 50% of the time and still make money. Wait, let me take that one step further. You can have a system that makes losing trades 90% of the time and still make money.
How does that work? In the world of automatic Forex trading systems, the percentage of winners and losers aren't the only thing that affects the profitability of the system. For example, let's say your system has 10 winners and 10 losers. Is it a profitable system? Well, it really depends on the average size of your winners, and the average size of your losers. If your average winning trade is twice as big as your average losing trade, then you have a profitable system!
A Profitable Forex Trading System With 90% Losers?
What about the system that has 9 losers and 1 winner, the 90% loss system. Well, if you only lost $100 on each losing trade, but made $2,000 with the winning trade, then you would be $1,100 to the good and have a very profitable Forex trading system. As you can see, you don't need a no loss Forex robot to make lots of money, because the winning percentage of the system is not the only factor that determines whether you have a profitable Forex trading system or not.
Another key factor that most Forex robot sellers don't want you to know about is the relative size of the winning trades to the losing trades, known in professional trading circles as the win to loss ratio. If you have a good enough win to loss ratio, then the winning percentage doesn't matter. So, when you're searching for a profitable Forex trading system, forget about getting a no loss Forex robot. Make sure you have a great win to loss ratio to go along with your winning percentage, and you'll be laughing your way to the bank!
Thad B. is a Professional Trading Systems Developer who has developed and managed dozens of profitable trading systems over the years for a private hedge fund. Forex trading systems are his passion and expertise, and he has a wealth of helpful resources available for any serious Forex systems trader.

Why is it Important Use Forex Indicators?

Forex indicators are a series of data points applied to predict movement of currencies. It is a technical indicator containing following components.
♦ Stochastic Oscillator
♦ Relative Strength Index (RSI)
♦ Elliott wave theory
♦ Moving Average Convergence Divergence (MACD)
♦ Number Theory
♦ Gaps
♦ Chart formations
♦ Trends
Stochastic Oscillator:
It indicates the oversold and overbought conditions on scale of 0-100%. In uptrend, the closing prices concentrate on period range's higher part. While in downtrend, the closing prices are near extreme low level on period's range.
Relative Strength Index (RSI):
It is most popular in Forex indicators. The RSI is displayed in range between 0-100 and calculated by measuring the ratio of upward moves to downward moves. The instrument is considered overbought if RSI is 70 or greater, while a RSI of 30 or less, it indicates instrument oversold.
Elliott wave theory:
The theory is a way to analyze market, which depends on Fibonacci number sequence and repetitive wave patterns.
Moving Average Convergence Divergence (MACD):
This indicator requires plotting two momentum lines. The MACD line refers to difference between two exponential changing averages and trigger or signal line, which refers to exponential moving average difference.
Number Theory:
Fibonacci numbers is a sequence (1, 1, 2, 3, 5, 8, 13, 21, 34.....) achieved by adding first two numbers to achieve the third number in the sequence. The ratio between the smaller number and the next larger number is 62%.
Gann numbers:
The Gann numbers refer to methods developed by W.D. Gann to trade instruments, which are based on relation between time and price movement. These Forex indicators are hard to explain, as it uses angles in charts to ascertain resistance, support areas, and speculate the timing of future trend.
Gaps:
No trading is indicated on bar chart by spaces, which are called Gaps. These Forex indicators indicate the market conditions.
There are different types of indicative gaps in Forex indicators
♦ An up gap is displayed on the graph when lowest price of trading day is comparatively higher than highest high price of the previous day. It is a sign of strong market.
♦ A down gap is displayed on the graph when highest price of the trading day is comparatively lower than lowest price of previous day. It is sign of weak market.
Chart formations: There are different chart formations such as rectangle, head, shoulders, and triangle chart, which display different information related to Forex indicators.
Trends: They are Forex indicators that denote direction of prices. Rising peaks and troughs signify uptrend and falling peaks and troughs signify downtrend.

Risk Management

The Forex market is highly lucrative battle ground where traders fight for money and when money is made, money is lost too. However what makes trading currencies different than gambling at a casino is the ability for hardworking individuals who spend their time tracking the news, analyzing and managing their risks in trades to take full control of their investments and have stable large returns. In this article I will give you a few tips to help you manage your risk when trading on the Forex market.
- Stop loss and Take profit orders:
Most Forex brokers offer a stop loss and take profit orders which can be used to manage the Risk reward ratio. Set your stop loss according to how much are you willing to risk on every trade I personally never risk more than 0.85% of my funds in one trade hence my stop loss orders are always set accordingly. Don't set stop loss orders too low otherwise your position might close with the usual small ups and downs in the currency pair price. Always set your take profit orders with reasonable profits or you might end up passing the awaited up/down movement in the position and start making losses. Monitor volatility in the market at all times and make sure to adjust both orders accordingly.
- Trading similar instruments:
Avoid holding positions on currencies that tend to move together in the same direction for example the pairs EUR/USD and GBP/USD tend to move together in the same direction hence I avoid having positions opened on both unless I have a urging fundamental or technical indication to act otherwise.
- Don't chase your losses:
All traders including yours truly have had losses at some point or another but smart traders only chase profit and once have had a bad experience with a certain instrument, it remains neutral to him and he moves on chasing profit unlike many traders who take the casino approach and pump more money into a losing trade trying to compensate for their losses. When it is time to move on it is time to move on. Never chase your losses.
- Take control of your leverage:
Not all brokers allow you to adjust your leverage however adjusting leverage is a great way of managing your risk to learn more about leverage you can read my article Leverage - A Gift or a Curse.
- Diversify your portfolio:
Always look for new instruments to trade with the more you diversify your trades the less risks you may have face. Use a broker that offers more instruments like futures, stocks, ETFs, options, bonds, CFDs or mutual funds.
- How to do it right?
Set a risk reward ratio, I personally use 1:3 ratio so for example on a trade that I set my take profit to $3000 I set my stop loss to $1000. I personally recommend this ratio as it is a balanced ratio.
Unlike many others Traders who chose to control their risk and rewards are most likely to stand a chance against bad days in the markets by taking control of their trades and make profits on a risky market like Forex.
Broco is a regulated broker offering access to the forex, stocks, futures, ETF and CFD markets along with a revolutionary state of the art tools to control risk reward ratio and an adjustable leverage up to 1:500. Broco offers a personal broker for every client as well as free news from Dow Jones wire, analytics, and trading recommendations.

The Best Instrument to Day Trade With

To be specific, the actual phenomenon of Forex trading is not the fact that there are more and more people turning to it as an investment opportunity, nor is it the fact that it has been growing steadily for the past few years. It isn't even the fact that more and more investors cropping up from all sectors of society.
The phenomenon of the Forex market is the day trade, which was once the exclusive landscape of many large financial firms, banks and investors/speculators, has now stretched to hundreds of thousands of casual traders which do most of their work from the comfort of their own home. This is because of the advent of online trading as well as margin trading, meaning more and more people have access to the investment tools necessary for trading.
Day trading's definition is the buying and selling of financial instruments or commodities in a single day, so that the investor liquidates all his investments and assets before the positions are closed on the day itself. These people are called day traders and they range from large banks, financial institutions to - only recently - a large portion of casual 'at home' internet traders. The basic machinations of the day trade are that an investor will always look for a position that has momentum or tension to move - in price.
This makes for a lot of research and a good eye for financial positions. Day traders make their money through cumulative results, they don't settle for the long view but are content to make a little a day and hopefully at the end of the month, the sums will total to something viable. Day trading is more popular to casual investors because of the fact the risks are lower. Day trading always incurs smaller amounts than long term positions (traditionally) and Forex is one of the best instruments to day trade with because of the fact that the Forex market is liquid.
The ability to pull out whenever you want as well as to make your investment decisions into actions is one of the most important things about day trading. Day trading is reactionary and impulsive, and it requires a market that shares the same properties. Within the Forex market, movements called percentage in points (pips) happen all the time in all areas of trading (spot, forward, future, swap, options, ETF trading) - and they happen within the course of different regional markets in different days.
Forex is the best instrument to day trade with because of its reflexive nature and the amount of resources that has been pumped into it - the interface, training programmes, software, that allows for split decisions to be made and communication to the broker at an almost instant integer. If you have decided to trade in the Forex market, I would advise that you start with the day trade. It is a safer option for the casual investor - then as you gain confidence, you might want to diversify your portfolio. Be the smart investor, and never allow yourself to be driven by an impatience to make a big killing.

Basic Terms and Slang Expressions - Forex For Beginners

This page contains common terms and slang expressions that should know any trader!
Ask
Rate at which bank (dealer) sells a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2238 (ask) the Bank shall sell euros for U.S. dollars.
Bid
Rate at which bank (dealer) buys a financial instrument. For example, if the quote is EUR / USD = 1.2234/38 at the rate of 1.2234 (bid) shall purchase the bank euros for U.S. dollars.
CFD
Transactions in shares of any product without their actual delivery.
Change
The difference between the current price and the closing price the previous trading day.
Change%
% Change is calculated as the ratio of Change and the current price of an instrument (% Change = (Change / Price) * 100)
MetaStock
One of the most popular and powerful programs of technical analysis.
OCO (Order Cancel Order)
This order is a combination of two separate orders for the purchase or sale. Once executed one part of the order (the first that can be executed), the alternative order is automatically canceled.
Omega
One of the most popular and powerful programs of technical analysis.
Active Balance
Cash account
Broker
Professional market participants conduct transactions with a specific set of instruments on behalf of and at the expense of the client or on its behalf and the client's account on the basis of onerous contracts with the client.
Usable Margin
Funds that can be used to open new positions or removed from the account.
Used Margin
Funds involved in the maintenance of all open positions at the time of the data.
Close position
Make a transaction leading to the closure of the open position.
Indicative quotes (Composit)
Quotes coming from several banks. Show the general trend in the Forex market and allow for those. Analysis.
Indicators graphic
Means of technical analysis to help predict the behavior of the market.
Execution warrant
Committing a transaction broker in accordance with the order (warrant) and cancellation of orders.
Leverage
Credit provided by the bank customer to conduct transactions. Shows how many times the required margin is less than the contract price.
Liquidation Balance (Equity)
Calculated as the difference between the active and total balance of Profit / Loss on all open positions.
Market Liquidity
Liquid market - the market in which relatively frequently committed transaction of buying and selling. A liquid market is characterized by opportunity for the seller (buyer) to quickly sell (buy) goods.
Limit
Order to buy or sell currency at a specified price or better. This warrant is usually exposed to capture profits. Can also be used for open positions.
Lock
The opening of two positions for one instrument, one specification and the same size in different directions. For example, the opening position 1 eur buy at the open 1 eur sell - called "zalokirovat position."
Loss
Loss of the transaction (or in the open position)
Lot
Target volume transaction torguemovogo financial instrument. When trading on Forex and CFD markets differentiate minimum and standard lots.
Better price
When selling price is better, if it is higher than is currently available in the market. When purchasing price is better, if it is lower than is currently available in the market.
Market maker
Large banks and financial companies, determining the current level of the exchange rate at the expense of a significant portion of its operations in the total market. Market makers set the current level of the exchange rate through a transaction with each other and with the smaller banks are users of the market.
Market order
Order for immediate purchase / sale of currency at the prevailing price at the moment on the market.
Margin call
The moment when there is a lack of maintenance margin account, you must either update your account or close some open positions.
Margin
Deposit (deposit insurance), which provides cover possible losses that may arise in margin trading.
Mini Lot (Mini)
Trade mini lots.
Illiquid market
Illiquid market - the market, which is relatively rare to contract for the purchase and sale. Illiquid market is characterized by lack of opportunities for the seller (buyer) to quickly sell (buy) goods.
Necessary Margin
The amount required to maintain an open position
Overnight
The fee is charged when passing an open position on the next day.
Order
Order broker to complete the deal under certain conditions.
Refused order
When installing the order agent may refuse to accept it in some cases: If the customer does not have enough funds in the account for the transaction If the warrant specifies incorrect price: worse for the limit, or better to stop.
Open Position
If the transaction has taken place (buying / selling) and has not yet been committed to her opposite transaction (sale / purchase) on the client's balance existing open positions.
Open positions
To make a deal leading to the emergence of Open Position
Cancel Order
Order broker to cancel an active warrant
Pips
The last digit of writing the exchange rate, for example, EURUSD 0.0005 - a five pips.
Scalping
Enter the market at the minimum possible time, sufficient to take profits, as a rule, the entire capital.
Profit
Profit from the transaction (or in the open position)
Item
For Forex is the same as teak.
Session
Intraday time trading tool.
Spread
The difference between the quotations of Bid and Ask.
Standard
Trade standard lots.
Stop
Order to buy or sell currencies in the market reaches a certain price, worse than the current market price. This warrant is usually billed to limit losses if the market moved in the opposite direction expected. Can also be used for open positions
Stop Loss
Stop order, fixing a possible loss for a specific open position.
Take Profit
Limit orders, fixing possible profit for a specific open position.
Technical Analysis
The method of forecasting future price trends through the study of graphs of the dynamics of the market for prior periods.
Teak
The minimum step change in the price
Trading quotes
Quotations particular bank (broker / a dealer firms). These quotes are committed transaction.
Forex (Foreign Exchange Currency Market)
International market exchange
Fundamental Analysis
The method of forecasting future price trends, based on the analysis of economic data.
Futures Contract
The agreement to buy or sell a specified quantity of a certain commodity at a specified time at a specified price.
Worse price
When selling price is considered to be worse if it is lower than is currently available in the market.
When you purchase price is considered to be worse if it is higher than is currently available in the market.

10 Most Frequently Asked Questions on Forex

1. What is the best Forex platform?
There is no one way to answer such a question. This will of course depend on the trader, in accordance with his preference, knowledge, experience as well as what he intends to trade (which financial instrument). Many intermediate-experienced traders, especially when trading on the currency market, prefer to use platforms such as MT4 or C-Trader which are designed mostly for Forex trading, as well as CFD trading, and for someone with some knowledge of the trading market.
Others, more novice traders would prefer the use of such platforms as ones found from Easy-Forex, iForex, or eToro, where limited math/ computational knowledge is required for their use and are a lot more straightforward to use.
More advanced/ experienced traders, which may also prefer access to multiple markets would prefer to use such brokers as Interactive Brokers or SAXO Bank's SAXO Trader. Such platforms usually contain much more advanced charting/ analytical tools (although to be fair most analytical tools can also be obtained from MT4/ C-Trader) and also give access to thousands of instruments including Equities, ETF's, Swaps trading etc; and are designed with the ability to effectively allow traders to partake in such markets.
2. Forex Trader: What is the best way to do forex trading?
If you've looked into trading forex then you have most doubtable been exposed to all the various opportunities to make money and are wondering which is the best way to learn forex trading. First of all, the foremost thing I would advise is to get a Forex Education. There are countless material on Forex in the internet for newcomers as well as experienced traders - all you need to do is search. Spend some time reading up on how forex trading works, the concepts behind trades and how prices are impacted by economic and political conditions.
Secondly you must get some experience, if you want to learn forex trading, it's the only way. To begin with it is prudent for this to be on a demo account. This will give you a good technical foundation on the mechanics of making forex trades and get used to using a trading platform.
After having traded for some time on a demo account it is very important to also use a Real one, albeit with little investment amount - find a broker that will accept lower sized trades (0.01 lots for FX) so that you can get a real feel for the live market. It is a whole different game trading on a demo and real platform, due to the psychological effect that trading with real money has. Trading small will allow you to put your money on the line, but at little risk if you make mistakes or lose money.
From there, provided you are gaining more than you are losing, you should gradually increase your trading size and invested capital, always keeping in mind it should be an amount you can afford to lose and which you feel comfortable with.
3. What is the best forex trading software?
There are a number of Forex Trading software available, all with their specific advantages and disadvantages. Many trading companies have built their own platforms while others prefer to use, and in effect White Label, existing solutions which are commonly known within the industry.
To say which one is best would be invalid as this falls on the opinion of the individual user, however there has been a clear trend in terms of popular platforms, which have proven to be favored among both novice and veteran traders. These platforms are the Metatrader 4 and C-Trader. The former has been built primarily for Forex products, while the latter has been designed to accompany other instruments such as Equities and ETF's. Both platforms are easy to use and master and come complete with full charting and technical analysis capabilities.
4. Forex Trader: How can one be a good forex trader?
If it was to be summed up in one word, the key to a good forex trader is discipline. Yes there are many things to learn and know before you make any trades or get involved in the financial industry, but one thing that must stay consistent throughout is discipline. Discipline in learning, in making your first trades and in sticking with your plan.
The basics that all new traders should follow are:
- Learn about Forex - there is an abundance of material on the net. Spend a good 1 month learning. Study Technical and fundamental analysis. Your learning should continue well into your trading and be ongoing.
- Come up with a strategy - Set rules that will determine your trading pattern and how you will enter and exit the market.
- Practice on a Demo - Open a demo account and trade as if for real. Of course this will not be 'exactly' as if you were trading on a real, due to the fact that fear of losing would not weigh in on your decisions. Do not proceed to the next step unless you can make a profit on the demo first.
- Practice on a real account with small amount - Do this so as to be able to understand the difference between trading with real money and trading on demo. Do this with substantially a small amount, but enough so that you are concerned over losing it.
- Trade on real account with substantial amount - Do this with an amount you are 'comfortable' to completely lose. Even if your strategy worked on the demo and on a real with a small amount it may not continue to do so in future. Stick to your strategy (have complete discipline). If you see the strategy is failing, then adjust your strategy accordingly, but stick to it (to the pip) at all times once it has been decided.
5. Foreign Exchange Market: Is it possible for an amateur forex trader to make sustainable profits trading forex?
Many Traders have made a living off of trading Forex and some have had very wealthy returns which have allowed them to become self-employed and leave the 9-5 work behind them. All of these traders have 1 thing in common - they all started out as an amateur forex trader! No one is born with the trading know-how; it is achieved through dedication and discipline.
So Yes! an amateur forex trader can indeed make sustainable profits from trading forex. As long as he is willing to put in the effort and has the discipline to follow through with such a commitment then there is no reason why he cannot do what others have done before him in the same shoes.
6. Forex Trader: Who is the best forex trader?
There is no one best Forex Trader - or at least there is no clear way to measure this (is it the amount one has won or the % gained from it). Also as many of the top forex traders in the world do not trade with their own money but instead funds and Company capital, it means that different psychological and risk appetite conditions exist for different traders and as such makes it bias to compare such traders success with those who trade with their own capital.
The one thing to know is that what a lot of Forex traders do have in common is their appetite for success, their diversified portfolio and willingness to take measured risk.
7. Has anyone ever made money trading FOREX?
Yes! Not only have people made money trading Forex but many have made a livelihood!
Although the majority of retail traders would not have as much success as professionals would, this is largely attributed to poor money management strategies and lack of discipline in sticking with their strategy.
With 100% discipline and a good money management strategy, there is no reason why anyone should not have a good chance in making money from trading Forex.
8. Is FOREX the best way to invest money?
It is hard to say if it would be the Best as there are numerous ways of investing money and would largely depend on what the individual is familiar with; however it is one of the best, largely to the fact that unlike stocks/ housing market - an investor can make money regardless of the how the instrument is doing by both selling/ buying that instrument (or doing both - known as hedging).
In the Stock market it is only possible to invest in the success of a stock - however in Forex you can both buy/ sell a certain currency against another and hence there is always a possibility for profit to be made.
Also the fact that Forex is commonly traded on leverage, it allows Forex trading to become one of the most volatile and hence allows for higher profits (as well as losses) to be made - if traded correctly.
9. Foreign Exchange Market: What are the best forex blogs?
There are a number of locations on the web to find a great forex related blog, in fact many brokers have their own blogs also; but in order to remain unbiased I will recommend a non-broker blog. One of the most useful blogs for both novice and veteran traders alike is at babypips.com - there is a regular update on current market movement as well as an abundance of information and back-forth ideas being expressed.
10. Why do individual investors usually lose money in Forex?
The majority of retail investors end up losing money in Forex. In spite of the fact that they may receive the right training and educative material (or at least the same as some other successful traders may receive) many often fail due to bad money management rules and/or lack of discipline. The latter is the most often.
The hardest thing in Forex is not making the calculations or predicting where to enter, how much to trade and/or what your limits should be; it is sticking to your strategy and following through with 100% discipline

Forex Signals - What Are They?

If you are a Forex trader, then you undoubtedly make use of Forex Signals to help you decide not only what currencies to buy and sell, but also at what price and under what conditions. Regardless of the kind of trader you are (long-term or short-term), your personal risk profile (low risk or high risk) or what specific type of forex instrument you trade (spot cash, forwards, futures or options), forex signals form the basis of your trading decisions, whether you are aware that fact or not!
So what exactly are the various different types of Forex signal and how are they used by different types of trader?
Let's start by going back to basics. In essence, a forex signal is nothing more than an instruction or a recommendation to make a forex trade. Could that instruction stem from a panicky voice in the trader's head yelling "sell the dollar now!"? Yes indeed, that is probably the most fundamental kind of signal there is!
But usually forex signals are associated with a little more accuracy and a little less emotion than that. Mostly they are generated by applying various technical analysis rules to charts of price movements. The actual signals that arise from these applications are usually specific to the individual trader and are based upon a range of configuration options.
For example, you may have two traders who are both trading the same market (USD/EUR say). They are both looking at the same prices and they might even both be using the same application to generate their forex signals. But if trader Bill is a day-trader or scalper and has configured the application to generate short-term signals and trader Bob has a longer-term outlook and has configured the system to generate signals that will allow him to ride the trend, the trading signals they see might be diametrically opposed to each other, even though they are coming from the same system.
That is why it is important that, whatever forex trading system you use, you set it up to match your own outlook and to follow your own trading strategies. Any forex signal is only as good as the trader who is using it. There is no such thing as a universal forex signal. If there was, there would be no market (because for any market to exist, you always need both buyers AND sellers).
Whatever forex signals you decide to use, and whatever your trading perspective, always remember the golden rule - never risk more than you can afford to lose!

Analyzing Different Trading Instruments

Strife is the affix of the world's most efficient trading Forex tools; Manufacturers' are finally setting up the most effective and easy tools to trade with. On hullabaloos bound to persist, traders are apprenticed to benefit more. This does not only exclusively gives you an upper hand to opt wisely on the best Forex tool to trade with, but also lets you to compare the products and have the best trading capabilities in the market. Today, there are numerous trading systems to trade with. Detailed herein are two major Forex instruments in the market and their attributes.
Forex Megadroid automaton:
Megadroid was created by two accredited persons in the trading industry, with thirty-eight years of training and experience; they are the most respected loyalists in the masses of Forex trade, (Albert Perrie and John Grace). This trading instrument is extremely earning whim in the global trading industry. It is however aforementioned to quadruple every single dollar you invest in spite of the market condition. According to its web page, it has an anticipating capability of close to 95.82% accuracy. Only seven exceptional months in the business of currency trading, it has attained recorded gains of 1,384.87% just from 340.33%. Its project is to fissure the 2,000% profit mark by the end of the year. Megadroid assures full money-back compensation in the consequence that you buy the product and it deceives to work successfully. It is fitted with plug-and-play lineaments and fast installation process. Moreover for any inexperienced user, there is an effortless steps tutorial to tutor you on how to trade. You will be eligible to trade on test basis until you are self-gratified that the trading tool works.
FAP Turbo Forex Robot:
This constitutes amongst the most-reviewed automated Forex trading software with a minimal of $50 as a start up trading requirement; it bears straightforward directions and tutorials on the web page. Besides, it accompanies a pre-programmed software capability known as the Scalper Relax Hours and 2 winning advances, an interim scalping design and a long-term trading tactic. The trading system has major advantages when employing real time trading capability sometimes regarded as "off session and on session"; it implements trade when the market looks more inevitable. This is the advantage behind Scalper Technology - to lead you through venturous trades that may truncate your chances for raising profits and minimizing losses.

Kill Those Bad Habits in Your Forex Trading

The Forex market is full of possibilities for personal traders. There is the potential to do very well financially for those who are able to study, work hard and exercise patience and self-restraint. It is vital when learning Forex that the trader has information from experienced traders to help along the way. Use this article to find tips about Forex trading.
People tend to be get greedy once they start seeing the money come in. This can make them overconfident in their subsequent choices. Another emotional factor that can affect decision making is panic, which leads to more poor trading decisions. Remember that you need to keep your feelings in check, and operate with the information you are equipped with.
Most Forex traders who have been successful will suggest that you keep some type of journal. Complete a diary where you outline successes and failures. Keeping a diary will help you keep track of how you are doing for future reference.
Don't trust anyone to watch your trading activity other than yourself. You know yourself and your trading strategy better than anyone. Software can't be trusted to completely control your trading. It takes a human touch to really figure out Forex trading, if you want to be successful.
Do not buy an automated Forex software product that cannot be personalized. You should strive to change your system. Your software can also be varied in order to better fit your particular strategy. Check to make sure that your software is customizable before you buy it.
Is Forex trading something you want to give a go? Before you begin this adventure, you need to understand how the market works in depth. Learn about currency fluctuations, and what causes shifts in the currency markets. Do you research on the foreign currencies traded on this market. When you are armed with knowledge, the odds will be in your favor that you will pick currencies that will see an increase in value.
Don't think that you can come along and change the whole Forex game. Financial experts take a great deal of time and energy practicing and studying Forex trading because it is very, very complicated. Your odds of finding a trading method that works better than these tried and true methods are incredibly small. Do some research and find a strategy that works.
You should be very cautious about utilizing robots in Forex, as they are often detrimental to buyers. Buyers rarely benefit from this product, only the people selling it do. It is better to make your own trading decisions based on where you want your money to go.
Few things can benefit Forex investors like perseverance. All traders hit a run of bad luck at some point or another. But what makes a successful trader different from an unsuccessful trader is that the successful traders just do not quit. When things seem awfully dark and you forget what a winning trade even looks like, keep on and ultimately, you will triumph.
Forex trading information can be found anywhere online at any time. You are better supplied for the experience when you definitively know the ropes. Joining a forum to talk to others involved with and experienced in Forex trading can be quite helpful in understanding information.
Why should you consider Forex market trading over other options? The Forex market is open all day, so you can make trades any time. When investing in Forex, a little can go a long way. Both of these outstanding benefits mean that Forex is accessible to nearly everyone and at any given time.
Forex trading, or foreign money exchange plan, is devised as a way for you to make money by trading foreign currency. Many people use this to earn cash on the side, or even as a full time job. You will want to be sure you know exactly what you are doing before you begin buying and trading.
Use what you want as well as what you expect to select an account and features that are right for you. Acknowledge you have limitations and be realistic. You will not master trading overnight. Generally speaking, it's better to have a lower leverage for most types of accounts. For starters, a practice account can be used since there is no risk involved in using it. Know all you can about Forex trading.
Forex can have a large impact on your finances and should be taken seriously. People who are interested in Forex for the thrill of making huge profits quickly are misinformed. It would be more effective for them to try their hand at gambling.
All Forex traders need to know when it is time to pull out. Many times, traders see their losses widening, but rather than cutting their losses early they try to wait out the market so they can attempt to exit the trade profitably. That is the quickest way to lose more money.
Choose an extensive Forex platform to be able to trade more easily. There are platforms that give you the ability to see what is going on in the market and even execute trades all from your smartphone. You'll get faster reactions and better flexibility this way. Don't allow limited Internet access to hinder the availability of investment opportunities.
Make and stick to a plan. If you do not have a plan you will not win. Having a plan and sticking to it will avoid temptations where you would trade with your emotions rather than your knowledge.
You should always be concerned with risk management. Have a clear idea what acceptable losses are within risk management. Never override your stops or limits. You can lose everything very quickly if you get too emotional and don't focus. Knowing when to cut your losses and call it a day can help you to succeed.
Again, any trader new to the Forex market can gain useful information and knowledge by learning from experienced traders. Anyone looking to get started in the Forex market should keep in mind the tips presented here. The opportunities are huge for traders that work hard and take expert advice.

Compare Forex Trading and Stock Trading

The forex (foreign currency exchange) market is the largest and most liquid financial market in the world. The forex market unlike stock markets is an over-the-counter market with no central exchange and clearing house where orders are matched.
Traditionally forex trading has not been popular with retail traders/investors (traders takes shorter term positions than investors) because forex market was only opened to Hedge Funds and was not accessible to retail traders like us. Only in recent years that forex trading is opened to retail traders. Comparatively stock trading has been around for much longer for retail investors. Recent advancement in computer and trading technologies has enabled low commission and easy access to retail traders to trade stock or foreign currency exchange from almost anywhere in the world with internet access. Easy access and low commission has tremendously increased the odds of winning for retail traders, both in stocks and forex. Which of the two is a better option for a trader? The comparisons of retail stock trading and retail forex trading are as follows;
  • Nature of the Instrument
    The nature of the items being bought and sold between forex trading and stocks trading are different. In stocks trading, a trader is buying or selling a share in a specific company in a country. There are many different stock markets in the world. Many factors determine the rise or fall of a stock price. Refer to my article in under stock section to find more information about the factors that affect stock prices. Forex trading involves buying or selling of currency pairs. In a transaction, a trader buys a currency from one country, and sells the currency from another country. Therefore the term "exchange". The trader is hoping that the value of the currency that he buys will rise with respect to the value of the currency that he sells. In essence, a forex trader is betting on the economic prospect (or at least her monetary policy) of one country against another country.
  • Market Size & Liquidity
    Forex market is the largest market in the world. With daily transactions of over US$4 trillion, it dwarfs the stock markets. While there are thousands of different stocks in the stock markets, there are only a few currency pairs in the forex market. Therefore, forex trading is less prone to price manipulation by big players than stock trading. Huge market volume also means that the currency pairs enjoy greater liquidity than stocks. A forex trader can enter and exit the market easily. Stocks comparatively is less liquid, a trader may find problem exiting the market especially during major bad news. This is worse especially for small-cap stocks. Also due to its huge liquidity of forex market, forex traders can enjoy better price spread as compared to stock traders.
  • Trading Hours & Its Disadvantage to Retail Stock Traders
    Forex market opens 24-hour while US stock market opens daily from 930am EST to 4pm EST. This means that Forex traders can choose to trade any hours while stock traders are limited to 930am EST to 4pm EST. One significant disadvantage of retail stock traders is that the stock markets are only opened to market makers during pre-market hours (8:30am - 9:20am EST) and post-market hours (4:30pm - 6:30pm EST). And it is during these pre-market and post-markets hours that most companies release the earnings results that would have great impact on the stock prices. This means that the retails traders (many of us) could only watch the price rise or drop during these hours. Besides, stop order would not be honored during this times. The forex traders do not suffer this significant disadvantage. Also, a stock trader may supplement his/her trading with forex trading outside the stock trading hours.
  • Affordability
    In order to trade stocks, a trader needs to have quite a significant amount of capital in his account, at least a few tens of thousands in general. However, a forex trader can start trading with an account of only a few hundreds dollars. This is because forex trading allows for higher leverage. A forex trader could obtain larger transaction compared to stock market. Some forex brokers offers 100:1, 200:1 or 400:1. A leverage of 100:1 means that a US$1k in account could obtain a 100 times transaction value at US$100k. There is no interest charge for the leveraged money. Stock trading generally allows for not more than 2 times leverage in margin trading. There are interest charges associated with margin trading.
  • Data Transparency & Analysis Overload
    There are thousands of different stocks in different industries. trader needs to research many stocks and picks the best few to trade. There are many factors that affect the stock prices. There are much more factors that may affects stock price than foreign currency exchange rates. The forex traders therefore can focus on few currency pairs to trade. On top of that, most data or news affecting currency exchange rate are announced officially, scheduled and in a transparent manner. Retail forex traders therefore have better chances of success than retail stock traders.
  • Bear/Bull Stock Market Conditions
    Forex traders can trade in both way buying or selling currency pairs without any restrictions. However, stock traders have more constraints to trade and profit in bear market condition. There are more restrictions and costs associated with stock short selling. In a bull market when the economy is doing well, stock traders have a high chance of profitability if they buy stock first then sell it later. Savvy forex traders however, could operate in all market conditions.
  • Trending Nature of Currency
    Major currencies are influenced by national financial policies and macro trends This national financial policies and macro trends tend to last long in a certain direction, either in monetary expansionary (rate cutting) or monetary contractionary cycle (rate hiking cycle). Stock prices however tend to fluctuate up and down due to many factors, many of these factors are micro and specific to the stocks. Therefore forex traders can better exploit the trends in foreign currency markets that stock traders in stock markets.
  • Regulation
    Generally, most major stock markets are better regulated than forex markets. Therefore, traders need to be aware of this difference to stock markets. Fortunately, there are however many reputable forex brokers in the market. With prudence and proper research, it is not difficult to find a suitable reliable forex brokers.
Based on the above few points, forex trading seems to be a better trading option than stock trading, especially during these uncertainties in the global economy. During bull market condition, stock trading could be a viable alternative. A stock trader should definitely seriously consider supplementing their trading with forex trading. Forex trading enables a stock trader to exploit any opportunity arises during non stock trading hours, by trading in forex trading. Forex trading would also enable the stock traders to understand a more complete big picture of world economies operations and further enhance their stock trading skills.