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.

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!

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.

About Forex Trading Online

The internet is indeed a gift of today’s advanced technology. It has changed the communication industry and now it is being used for different kinds of tasks. It seems that everything is possible through the internet. Before, the only way to trade in the Forex market is to be there physically. But now, you can trade even in your own home or in the office as long as there is an internet connection.

If you think that only the intelligent individuals are involved Forex trading, you’re wrong because at present, average individuals can already trade in the market, provided they have adequate capital. The behavior of different currencies in the Forex market can be compared to the movements of regular stock. The economies of most countries around the globe are fluctuating. Some currencies are highly priced but there are also currencies which have very low values. The Forex market is alive twenty four hours each day and so you can do your transactions at any time of the day and night. If you have an internet connection at home, you can monitor the Forex market trends and other vital info. Don’t worry if you’re not very familiar with Forex trading because you can find loads of information on the internet. Gather all the possible information you can get about Forex trading; you must read, comprehend, and learn from the information sources because that’s one way to attain success. With the internet in your home or in the office, you can monitor all the real time market information without much difficulty.

Forex trading also have mechanics. For you to understand the trade’s mechanics, you will need some helpful tools. Before you invest in the Forex market, you have to ensure that you’ve already developed the right trading skills to prevent possible loses.

There are some Forex firms that help new traders in becoming more skilled in Forex trading by giving free demos, guidance, and helpful Forex news. You can even start investing in the Forex market with only $300. Starters often feel uncomfortable but as days and months pass, you can get the hang of it. With the aid of the internet, it’s much easier to learn about the current Forex market trends. You can also rely on a good Forex broker especially if you’re new in Forex trading. Brokers can help you in developing trading strategies or in finding efficient trading systems. Aside from that, a good broker can also help you with fundamental and technical analysis of relevant data.

You too can earn promising rewards if you’re willing to assume some risks in Forex trading. However, it is vital that you minimize such risks so as not to lose your investment. Make use of all the possible online tools so that you can make educated Forex decisions.

What are your needs? You must be able to identify your needs so that you can choose a god trading system or perhaps a reliable broker. Take your time when researching about the latest trading systems offered in the market. Don’t forget to check the background of the broker as well.

Forex trading online can be easily carried out and you can expect more profits to roll in once you properly use the tools mentioned earlier. As a trader, you need to be disciplined and you must be very careful with all your trading decisions; being hasty will not get you anywhere.