Is your Broker really the problem?

Is your broker really the problem?

I’m sure many traders out there have accused their broker of swindling them from their hard earned cash at one point or another. I know I have on many occasion. I have had the privilege to work with some of the world’s largest forex providers, and now that I have been on both sides of the fence I have a very different opinion. Firstly, they’re not in the business of ripping people off. This is just a fallacy. I completely understand why people may think this, as I know there have been times when I’m in a trade and for the life of me can’t work out why the market automatically defaults to going against me. While this does happen all too often, it really is not the provider doing this. Think about this for a moment; why would a provider try to manipulate the market for one or two clients? Unless you are trading with many millions of dollars, it would be pointless for a provider to do this. How could they provide multiple prices for their clients?

Another one I used to hear clients mention is; How come provider ‘x’ has different prices than you? Here in lies some of the issues with trading the forex markets. Unfortunately, as there is no fixed exchange to trade through, the liquidity providers that various forex providers use may differ. In essence what this does is create a market that looks similar, but could be multiple pips in difference to the next.

I started questioning myself after I had a few losses with a particular provider. I actually assumed that due to their spreads being somewhat wider, then perhaps that was my issue. Needless to say I changed brokers. The same thing happened at my next provider, and so forth until I eventually decided to take ownership of it. It was when I decided to take full responsibility for all my results that things started to change. Of course there will always be times when a provider is at fault, or the market does something unexpected, and closes you out at the wrong price. What I am alluding to is that when you take responsibility for your actions, you can start to realise that it’s not ‘me Vs them’ anymore, but quite simply ‘me Vs me’ in trading. Taking responsibility is the first step. I have now traded with some brokers that have extremely wide spreads, and still made money; conversely, I have traded with some others with tight spreads and not done so well. In essence, every provider has both their good and bad points, and at the end of the day it is a matter of you finding what works for you. When you take on the mindset that you could potentially lose, or no matter what happens with your provider, you could potentially win, then it changes your frame of mind. You are more emotionally in control as you are not expecting anything other than you trade to be executed. When you adhere to good risk management, understand that it is you, and not your provider that is responsible for your results, then you can start to create positive outcomes in your trading.

Tips For Choosing Automated Forex Trading Systems

Automated Forex trading systems are on the rise. Those looking to trade in this way should be aware of a few things first. This kind of technology would enable you to earn profits with more flexibility and diversification in your trading.

You only need to type in the words ‘automated Forex trading’ and you will see a myriad of results. There are numerous companies promoting their software that purportedly get more profits than the others. But, how sure are we of these claims? How does anyone really know which ones are actually producing the results they claim?

There are a few things you can do to ensure you end up with a system that suits your needs. Here are a few steps to take to get you on the right path.

• When choosing your trading system, make sure that your software covers your trading needs. This sounds glaringly obvious, but there are systems that could cover multiple currencies and other brokerage and trading activities. Is the system solely for forex, or does it work on other markets? When it’s being promoted, are the claims on percentage returns solely on forex, or does it include the other markets the software caters for?

• Make sure that the software has the capability of analysing the market. You can check customer reviews about the software. When checking the software, look for the facts and not for the opinions. Be cautious of anything with claims that are far too grandiose. You would need to know what you can and cannot do. Remember that the product which has not performed well the past may take time to improve.

• Reliability is important. When looking for an automated Forex trading system, make sure that they have backup systems. Aside from that, Forex trade is a 24 hours a day and a 7 days a week job, so you would need a system that works throughout those hours.

• Your automated Forex trading system should also be safe. Your trading and personal data should be guarded by Internet- based system that could encrypt your data for protection. This would also make sure that your software and computer are free from any viruses that could attack the computer’s memory.

• You should be able to customize your automated Forex trading system. You would like to have a software and system that would be able to fit your trading strategy.

• You can also check the other features offered with the automated Forex trading system. Some would include multilingual support, integration with existing Web applications and sub-administration. Sub-admiistration allows more than one brokers to be on one server.

• Choose a system that is easy for you to understand. It should be user-friendly, easy-to-install and have tutorials that can assist you whenever you would encounter software difficulties.

• Avoid automated Forex trading system that have longer losing periods or bigger drawdowns.

• When picking out a Forex trading system, make sure that they have money-back guarantees. There are some programs that are easy to operate and works with demo accounts but once used in an actual or real account , it experiences a lot of problems and issues.

• Do not overspend. Do not buy an automated account that’s very expensive or something that you cannot afford. If you use an expensive system but do not have enough money to pay for it, then your account may lose its future profit.

However, even if you are using an automated Forex trading system that fits or meets all the requirement this still does not assure you of your magical success. Of course, it would still need money management skills and other trading skills as well. But with a great deal of patience and learning from experiences, you would eventually be a successful Forex trader.

How to Make the Most out of all Market conditions

So, you have been trading for sometime now, and unfortunately you have had some runs where your trading is exceptional, and other periods where you couldn’t pick a winner to save yourself. Well, the good news is that most traders have been there. In fact, I would say that almost anyone that has done any trading for any amount of time has been there. The normal response to this is to start doubting your system, and then go in search for the next great indicator, or system as your one clearly no longer works!

The good news is you are not alone, and secondly, there may well be a remedy for it. You may even be surprised to know that it may not be you, or your system at fault. I know most traders, and self-help experts experts will all agree that it is bad form to blame a force outside yourself. That it is also bad form to place blame, and not take responsibility. This is a sentiment I fully agree with, but…

And there is a but…The simple answer may well be that the market conditions changed, and therefore your system needs to adapt. Unfortunately no system will ever be right in all market conditions, but if you adapt a strategy to a trending market, and then adapt another for a range-bound market, then you are potentially saving yourself from heartache.

Some further good news…

Statistics show that markets will be range-bound more so than they trend. This also helps us as, we know that oscillators tend to work better in range-bound markets, whereas a moving average crossover may work better in a trend.

I note (as of writing) that the USD/JPY has been range-bound for at least a couple of months. This has provided excellent repeatable patterns to work with on a short term basis. We also know that the longer a market is stuck within its range, the more dramatic the breakout tends to be.

This also works in our favour, as we can set stop and limit entries above and below the prevailing pattern to take advantage of this. This essentially allows us to trade within the current range, and also look to capture the trend when it breaks out.

This is just one very simple example of how to adapt your trading to your environment.

Failing to plan is planning to fail!

Ok, so may or may not have heard that one before, but essentially what it means is that in order to be successful at trading the fx markets, or any markets for that matter, you must have a trading plan. In this article we explore some of the benefits or setting up a trade plan.

For many types of investors, the Forex trading market is an excellent way to make sound investment decisions. It is a fascinating way to invest money because it encourages people to learn new information about foreign country cultures and business markets. This exposes people to global changes that they might not have otherwise known about. But you’ll probably also be excited to know that many people make a good amount of money doing this. There’s risk associated with currency trading, but a sound Fx trade plan will help guide you through the process. This article will help introduce you to some of the excellent Forex trading platforms available to everyone.

Basics of a Fx trade plan:

One thing to know is that while Forex typically refers to foreign exchange, most trading platforms will restrict you to currency sales. This doesn’t have to be a limitation to how much money you can make, but you’re going to want to target your research into this area of investment. There are a lot of changes happening right now in many countries world wide, and as a result there are rapid shifts in the value of currency. To stay on top of these changes, you’re going to need to have a great fx trade plan that will prepare you for almost any contingency.

Your fx trade plan should allow you to create a currency portfolio much like you would with any other investment strategy. This plan should incorporate currencies that are both low risk and high risk to give you a great amount of diversity. For instance, the United States Dollar is typically considered a low risk currency because it is so widely used and accepted around the world. There is almost no chance that the dollar will drop down to zero value any time in the near future. It also does not fluctuate much relative to other currencies, so it may be difficult to make a lot of money using this currency in your portfolio. Rather, what it does is provide you with a safety net for exchanging into other, more volatile forms of currency.

Another way to think about your fx trade plan is that it is providing you with the discipline you need to become a successful currency investor. It can be really tempting to throw all of your chips in when you hear of a new trade deal that will rocket a small country’s currency into the stratosphere. But your fx trade plan should restrict the moves you make so that you never invest a proportion of your account so large that it would jeopardize your entire fund. This may sound “boring”, but the truth is that it will protect you from making irreparably bad trade decisions during the day.

Gaining experience with your Fx trade plan:

When you first begin the process of exchanging currency, you may rapidly gain money much faster that you’re accustom to with other investment strategies. This can produce a sense of euphoria that overwhelms novice investors. A Fx trade plan should be devised BEFORE you get this euphoric sense and commit too much of your resources to speculative trades. A good rule of thumb is that the newer the Forex investor, the more conservative his Fx trade plan should be. When you get accustom to sensing some of the reoccurring trends in the market place, over time you may take a few more risks than you would initially.

You may also want to adjust your Fx trade plan depending on the reason why you’re investing this money. If you’re using it to build a retirement fund, it should naturally become more conservative as you get closer to retirement age. The logic behind this is similar to other forms of investing. As you get older, you have less time to recoup some of your losses if you make a couple bad decisions. If you are younger and don’t depend on investment income for your daily expenses, you may feel free to have a more risk oriented Forex trading plan.

Ultimately, these are just a few words of warning for beginners looking to start up a Fx trade plan. There is so much to learn, you may only figure out some of the best strategies by actually creating a package for yourself. Sometimes you simply have to learn by trial and error, which will give you a feel for which currencies to trust when they are fluctuating wildly. Spend some time each day managing your account and looking for deals, and you will be on the path to success with you fx trade plan!

Trading Strategies anyone can implement

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While there are many investment vehicles to put your money to work these days, none are as large, and potentially as lucrative as the foreign exchange markets. With a daily turnover of over $1.4 Trillion! (yes you read that right…daily). Needless to say it offers a freedom that many other markets just cannot compete with.

Along with the fact that it is a huge market, it also comes with a stack of other benefits…

Open 24 hours on weekdays, the fx market gives you the ability to trade any time of the day or night. Compare that to other markets that operate at specific hours of the day, the forex market is a buzz of activity and opportunities throughout the week. Investors can react to specific news events and trends that happen within the week, anytime.

This also gives traders another type of freedom. The freedom to choose where you work, and when. This has allowed many new traders enter the market that may work during the day. If you have a laptop, then you can trade no matter where you are!
Less Cost
Due to the size, and daily turnover of the fx market, and the fact that it is traded electronically, the costs of trading are far less significant than trading normal equities (shares/stocks). The majority of fx trading cost is built into the opening spread (the difference between the buy and sell price when you enter the trade). The spreads here are usually smaller than the spreads in other markets, which again makes the ability to earn a profit much easier.

Unlike other markets where leverages are small, forex trading allows for bigger leverages, giving you the chances to trade (at times) up to four hundred times your investment. Of course, like any investment of this nature, leverage also carries a significant degree of risk. Thankfully with the forex market in particular you can easily manage your risk. At times risking only a handful of dollars per trade in order to place your trade.

Stable Price
Since your trade is executed immediately, your trades are done with precision, and you have less risk that the prices will slip if you set up orders to enter at specific prices. Due to the rapid nature of the markets, you can be in and out of a trade and not have your funds tied up in the markets.

With the speed, liquidity, and popularity of the fx markets this also means that the market moves in predictable patterns. This means you can formulate a trading plan based on these repeatable patterns, and ensure you can predict the market with a certain level confidence and consistency.

Stable Profit Chances
Since your trading involves two currencies and not other markets and trends, one always has the opportunity for profit. There is no bulldog watching of rising or falling of markets, goods and industries. Whether the market is bullish or bearish does not really need to worry you. What really matters is that you pick the right currency to trade.

Forex trading is considered the perfect competition for logical reasons. Everybody is presented with an equal playing field. Even if the currency is falling, it just means that there is currency rising somewhere and the opportunity of profit exists. An unlimited earning potential, the freedom, and the even opportunity makes the foreign exchange market an exciting opportunity for anyone.

What To Avoid With Your Automated Forex Trading System

Automated Forex trading system is an answer for some traders. Some would say that using this kind of system enabled them to win and earn profits that they would unlikely earn when doing manual trading. Successful users of the Forex trading software would say that not only would they earn money, but they would earn it consistently.

But not everything is a walk in the park. There are traders that would say that getting an automated system and using it for their Forex trade did not help them at all, worse even made them lose profit. Actually, failure in using the automated Forex trading system would depend on the how we take advantage and use this system. Some would commit common mistakes which they can readily avoid.

What are the things that we should be conscious about and at the same time what are the commonly made mistakes when using the automated Forex trading system.

Mistakes would oftentimes start when you are just beginning to choose your Forex trading software. Of course you can check the testimonials of the customers. But do not solely rely on them, it can be fictitious testimonials. So, what you can do is check forums where not only opinions about the software are tackled, but also about the problems encountered and how customers were able to resolve them.

Another mistake is that traders would think that just because that the software they want got god ratings in the market and good customer feedback, it is already perfect. It can still encounter some problems on the way. So make sure that the software you will be choosing have a live support, whether it is over the internet or phone.

It is also a mistake to believe that since you have a trading software, losing is next to impossible. Even the best and most expensive trading programs, can still make mistakes and in the end, make you lose some profits. Winning and earning big profits does not happen in a matter of weeks. In Forex trading, you could have fewer transactions but these transactions could give you more profits. You would have to build solid transactions andtrades that can give you bigger accumulated profits in the long run.

Some would think that winning trades could happen everyday. But that is not the case. Very good deals and trades do not happen everyday. You need patience to be able to earn big profits. Making a lot of trades or overtrading does not mean you would be able to get big profits in the end.

Some traders would rely too much on their trading software and forget getting involved manually on the trade. Being lazy in learning your trade is a big, big mistake. Just because computer programs are working for you, does not give you any excuse not to understand and learn the Forex market.

But listening to all experts and following what they say do not guarantee success altogether. Knowledge is meant to compliment your trading style and system. Just because they say that a particular strategy or system works for them, it could also work for you.

Also, if you have encountered a bad software in past, do not think that all Forex trading programs are scams. It is a mistake to stop looking for ideal trading software. Be patient and keep looking.

It is common for everybody to make mistakes, even if you are using an automated Forex trading system. You just have to make sure that your software compliments your trading style and knowledge.

Strategies You Can Use In Forex Trading

Being a trader in the Forex market has its ups and downs. There are times when you earn lots of profits but there are also times when you lose a great deal too. Foreign Exchange is a complicated, profitable, and risky endeavor. If you’re not ready to take some risks, you can’t be an effective and efficient trader.

Are you aware that the Forex market is the largest market to conduct trade all over the globe? This is true and so if you want to earn more money, learn how to trade in the Forex market.

Currencies are traded in the Forex market. This market was primarily created to meet the demand and supply of different kinds of currencies by individuals, companies, and government. It was also created to assist exporters and importers. Most of the traders are investors, businesspersons, speculators, businesses, and those in the industry of banking.

As you probably know by now, countries have different kinds of currencies. The values of these currencies also vary. In Forex trading, two currencies are being traded which are also called ‘trading pairs’. When you sell a currency, you’re also purchasing another. For example, you can get the British pounds by using US dollars. If there is a small supply of British pounds, you will need to pay more US dollars. In this transaction, the buyer of the British pounds hopes to sell it at a much higher price (more than what he ir she paid for it).

Speculators accept the risk of any adverse movements in the exchange rate and in the case of a favorable currency movement, the speculator can earn lots of profits.

You must have your own trading system. This is a must for all traders and beginners in the industry are encouraged to develop their own system. For starters, you can start with a small investment. With the system in place, you can easily decide when to enter the market and when to exit. The cost for every transaction is very minimal and so you can trade for as many times as you like in a day; besides, the Forex market is open round the clock.

It’s quite hard to manipulate the Forex market because it is extremely huge. The market is also often influenced by global events and news. Insider trading is definitely eliminated because of these factors.

Never enter the Forex market with limited knowledge. You must be aware that around 90% of all Forex traders suffer great loses. Only 5% are able to gain profitable results while the remaining 5% are only break-even.

You will need to have adequate knowledge about the Forex market. You can start by researching online for useful information about Forex trading. Try to choose among the many Forex software programs available in the market and you have to ensure that you’re using an efficient program. That way, you can easily monitor the activities and changes in the Forex market online. With an internet connection at home and efficient trading software, you can make educated transactions. You can’t rely on sheer luck if you want to succeed as a trader. You need to study and analyze the market trends while considering market indicators and generators. You can also get a broker to help you out with your trading concerns. You can’t keep afloat in the Forex market without adequate help and knowledge. Know the strategies to use.

Advice On Automated Forex Trading Strategy

Having an automated Forex trading system can give you an edge in Forex trading, but having a Forex strategy can give an upper hand. If you want to reap long term profits, then you just do not trade using your instinct or just because a particular trade excites you. You need a trading system or a strategy to make sure that you are getting solid trades and transactions.

A Forex strategy or system consists of rules that guide you on how to make trades in the Forex market. A Forex strategy or system provides information on when to enter a trade and how to exit the trade. It would also enable you to apply and use risk management rules.

There are ways to know if your Forex trading strategy is really successful or good.

• Start knowing how successful it has been in the past. It pays to know how much previous or existing users of the system have earned so far by using the strategy. Aside from that, also obtain some information on how much is the maximum drawdown of the system in its previous trading.

• There is a win-loss ratio wchich you can also check. It is about how much you have won compared with much you have lost. Aside from that, there is also a profit-loss ratio. This s about the average winning trade compared to the losing trade.

• You would also have to know how consistent the system is in delivering profits.

When choosing a Forex strategy, you do not only have to factor-in the success rate and profit percentage. You would also need to consider your lifestyle and what system can be used to fit or suit it. You would have to know what Forex trading system can be used appropriately in your time zone.

A useful strategy used in Forex trade is what is called leverage. With the leverage strategy, you would earn about a hundred times the amount of the money that you are trading in your account. A lot of traders have testified that they were able to win a lot of profit by using this kind of strategy. So if you have a funded Forex account, you can use this strategy to get more profits.

Another strategy is the stop-loss order. This strategy works by identifying a point where you will not trade. This trading point is identified and determined before the trading begins. When using this kind of strategy, you would have to be able to analyze trading signals so you would not be mistaken with your prediction. If your predicted trade did not go on as you expected, the stop loss system could be very disadvantageous.

The automated Forex trading is anther kind f system or strategy. Entering and exiting an order will be determined by your automated system. Again, the price and the point where the program would enter or exit a trade is predetermined.

These Forex trading strategies would help you have better trade opportunities in the Forex market. Whether you are using the leverage, stop loss or automated Forex trading system and strategies, 100 % success is not guaranteed. These strategies do not aim to give your perfect trades, because that is impossible. These trading strategies are here to help us minimize the risk of losing in the trade.

Things You Need To Know About A Forex Robot

Newcomers and experienced traders are getting introduced and liking how Forex robots were able to work for them. Fore robots can work as an ideal Forex trader, the difference it is it automated and can be programmed. This technology can actually work for you 24 hours a day and 5 days a week.
If traders rely on these robots for their trade and transactions, is it foolproof then?

Forex robots have complex algorithms that enable them to do mathematical calculations based on the detail that they get from actual data from the Forex market. These programs could analyze millions of data in less than a second. Some experts would say that these programs eliminate the user error factor. Decisions about entering or exiting a trade, buying or selling, depends on these calculations and trade signals.

Forex trade is a very unpredictable, liquidated and volatile market. These make trading, even for those who are experienced, difficult. Which is why, most beginners, would rather have Forex robots and other automated trading system to help them with their initial trades. Once you have decided to have a Forex robot of your own, there are things that you would have to know first.

• You should at least have a computer, stable internet connection and some basic knowledge about currency trading. You just do not join something you have no idea about, or at the end you can suffer the consequences.

• Any problems that you have encountered when installing the program is a bad sign. So when you have encountered anything, even a slight glitch, make sure to have the program replaced by the vendor. This is why it is important to know if the vendor offers money back guarantee or good return policy before even going ahead with the purchase. Before purchasing any software, make sure that they would work smoothly with your operating system.

• Demo accounts are important. Do not shove them aside. Remember to test the program first with a demo account before you use your real and actual account. Of course, testimonials and comments would say that the product is awesome and perfect, but do not rely on it too much. Try doing some research and information-gathering about your program.

• Internet connection could affect how your system works. If you are experiencing any problems with the bandwidth, it could affect on how the signals are being detected and interpreted.

• Support is essential. Make sure that there are online and even phone support offered to users and traders that would make sure that any issues about the program would be immediately addressed.

• If you have seen a Forex robot in the market or in the internet that you are interested in buying, make sure that it is up to date. You do not want to have an outdated robot that could not provide accurate information. Clues if it’s the most recent are in the version history and how often the websites get updated.

• Forex robots are not only capable in handling entrance and exit orders, buy and sell transactions. It could also perform other functions like charting. When looking for Forex robots, standard trading tools would include Fibonacci levels, RSI, Stochastic and moving average. Check the features included in the program you would be buying. You would like to get your money’s worth, right?

Forex robots are not exclusively for newcomers in industry. An expert trader can reap numerous and outstanding benefits by using this technology. It’s a win-win situation really, as long as you keep in mind that the technology should not over run its creator.

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