How Do I Begin Trading Forex?
August 25, 2008 by Trader Rich
I’ll assume that you have some knowledge about Forex either from a book or website. I’m not going to give definitions of a pip or explain what a base currency is. There are plenty of places you can find this information. What I want to provide are practical lessons for the beginner, lessons that can help straighten the learning curve.
There’s a lot of information out there on forex, some of it good and some of it misleadingly bad. Be careful. Trading forex is many times portrayed as a way to get rich fast; a home-based business. This is the furthest than from the truth. Trading forex is risky and though it may be possible to turn it into a home-based business, you need a lot of capital and experience. To give you an idea, a very experienced and respected currency trader had the following yearly returns: 71% in 2004, 433% in 2005, 53% in 2006, and 30% in 2007. Let’s just say for a minute that you were as successful as this trader and started 2007 trading forex as a home-based business with $5000. Could you live on the $1500 you made in 2007? I doubt it. I’m not trying to discourage you from trying but I think it’s important to be realistic. If you dive into currency trading with unrealistic expectations, you’re not going to get far.
Maybe you’ve read a book on forex, read something about trading forex on the internet or you went to a trading seminar. This is something that interests you, something you want to commit time to, initially as a hobby and maybe one day for a living. After you have this basic knowledge, where do you begin?
1. I’d recommend buying a book on forex because it contains a little of everything. It explains what the forex market is and answers other basic questions. In addition it should contain information on reading charts and technical analysis. Read the book from cover to cover. When you’re done, move on to step 2.
2. Download and install Metatrader which is a free trading and charting platform. You will prompted to open a demo account after installation. You can download Metatrader from any number of places. One such place is http://www.interbankfx.com. Start playing around with Metatrader to learn what capabilities it has. You’re not going to find a Metatrader book in your bookstore but you will find online manuals on the internet. There is also a huge user community around Metatrader. You can find any one of these communities by googling "metatrader forums."
3. Start applying some of the things you learned from the technical analysis sections of the book to your charts. Draw some trendlines or add some indicators. Start placing some trades also. Don’t be concerned about how much you’re risking or whether you’re going to win or lose. Just get a familiarity with how to place a trade. There’s only two directions you can trade in, long (buy) or short (sell) but there are many currency pairs. Try concentrating just for consistency on the EUR/USD, GBP/USD, USD/CHF, or the USD/JPY (the four most popular currency pairs.)
These three steps should keep you busy for quite some time. Take some time to get familiar with it all then you can move on.
Popularity: 81%
Filed Under: Forex Beginner
Tagged: forex basics
Friday, February 12, 2010
Does Your Forex Trading Plan Encourage You To Overtrade?
Does Your Forex Trading Plan Encourage You To Overtrade?
August 27, 2008 by Trader Rich
Welcome Ryan, the author of this Forex Project guest post. Ryan trades from a quiet country lake house and helps traders through his blog at http://www.ryanokeefe.com.
Does your trading plan encourage you to over trade?
Recently I started a survey on my website asking traders to answer this question:
“What is holding you back from trading successfully?”
Currently the number one answer is “I make some money, and then I give it all back.”
Multiple factors contribute to this result however over trading is the most frequent concern struggling traders email me with. I have some thoughts to avoid over trading I hope you’ll find useful.
Consider Your Trading Plan
Over trading may be baked into your trading plan without you realizing it. I received an email from a concerned trader who struggled with taking too many trades although they were following their trading plan. I asked to look at their trading plan and found it was built around the 60 minute chart, the opening of each trading session, support and resistance levels plus the MACD indicator. How many opportunities do you think their trading plan generated on a daily or weekly basis?
I’m a big fan of slowing things down with longer time frames. Using a longer time frame automatically reduces the number of trades you will consider which reduces your trading plan’s built in propensity for over trading. You won’t be tempted to take a “valid signal” 10 times a day trading a daily chart. The vast majority of my trades are planned on the daily chart with the entry taken on a four hour chart.
Consider a Weekly Goal
In my trading plan I have a weekly goal of 50 to 100 points. This is a realistic goal for me to achieve and having the number written down reminds me that once I’ve made my weekly goal there is no reason to place it at risk. When the goal is achieved it is time to do anything other than trade. If you’re trading a lower time frame I think setting a weekly goal is even more critical because as we have discussed, shorter time frames offer more “trading opportunities” which place your profit at risk. I’ve had this weekly goal established for years and it works well against over trading.
Some traders may think a goal of 50 to 100 points a week is too low but keep in mind there are as many ways to configure a trading account as there are ways to trade it. With the right mix of leverage, lot size and risk capital you can do a lot with a goal of 400 points a month. Most important is to set your goal according to your personality; whatever you believe you can achieve and doesn’t stress you out in the process is best.
Do you really need to take that trade?
Before I open a trade I ask myself this question every time without fail. It seems obvious but so is lowering the landing gear before landing yet some pilots still manage to land with the gear up. Consider your emotions before you take a trade. Are you tired? Are you angry? Did you miss a good trade and now desperate to make some pips? Have you made your weekly or monthly goals? If you have met your goals you don’t need to trade, period. If you can honestly answer this question with a “yes” then pull the trigger but if not, don’t put your capital at risk.
Be accountable to somebody other than yourself.
Rob Booker pitched this idea in a presentation I watched online and I believe it is the strongest action you can take to eliminate any propensity you have to over trade. Whoever you report to should have a basic understanding of your trading plan and be able to question you on each trade in a constructive setting. This is a full disclosure exercise so find somebody you can trust.
I report to my Wife every Friday morning with a print out of our account statement. We go through every trade while I explain what system I used, why I took the trade, what mistakes I made and what I could do better next time. We also discuss what I should be doing during the upcoming week if goals are already exceeded.
If knowing you need to explain why you put hard earned profit at risk for an unnecessary trade at the end of the week can’t keep you from pulling the trigger, nothing will.
Popularity: 81%
Filed Under: Investing and Trading
Tagged: Forex Beginner, Forex Trading, Learn Forex, macd, macd indicator, money, Money Management, risk, Rob Booker, support and resistance, trading plan, trading session
Similar Posts:
* What Do You Think Is Holding You Back?
* Down 400 Pips and In Denial
* 10 Steps to Guarantee Failure
* New Forex Trading Goal and Equity Curve Graph
* This week PROFIT GOAL REACHED!
August 27, 2008 by Trader Rich
Welcome Ryan, the author of this Forex Project guest post. Ryan trades from a quiet country lake house and helps traders through his blog at http://www.ryanokeefe.com.
Does your trading plan encourage you to over trade?
Recently I started a survey on my website asking traders to answer this question:
“What is holding you back from trading successfully?”
Currently the number one answer is “I make some money, and then I give it all back.”
Multiple factors contribute to this result however over trading is the most frequent concern struggling traders email me with. I have some thoughts to avoid over trading I hope you’ll find useful.
Consider Your Trading Plan
Over trading may be baked into your trading plan without you realizing it. I received an email from a concerned trader who struggled with taking too many trades although they were following their trading plan. I asked to look at their trading plan and found it was built around the 60 minute chart, the opening of each trading session, support and resistance levels plus the MACD indicator. How many opportunities do you think their trading plan generated on a daily or weekly basis?
I’m a big fan of slowing things down with longer time frames. Using a longer time frame automatically reduces the number of trades you will consider which reduces your trading plan’s built in propensity for over trading. You won’t be tempted to take a “valid signal” 10 times a day trading a daily chart. The vast majority of my trades are planned on the daily chart with the entry taken on a four hour chart.
Consider a Weekly Goal
In my trading plan I have a weekly goal of 50 to 100 points. This is a realistic goal for me to achieve and having the number written down reminds me that once I’ve made my weekly goal there is no reason to place it at risk. When the goal is achieved it is time to do anything other than trade. If you’re trading a lower time frame I think setting a weekly goal is even more critical because as we have discussed, shorter time frames offer more “trading opportunities” which place your profit at risk. I’ve had this weekly goal established for years and it works well against over trading.
Some traders may think a goal of 50 to 100 points a week is too low but keep in mind there are as many ways to configure a trading account as there are ways to trade it. With the right mix of leverage, lot size and risk capital you can do a lot with a goal of 400 points a month. Most important is to set your goal according to your personality; whatever you believe you can achieve and doesn’t stress you out in the process is best.
Do you really need to take that trade?
Before I open a trade I ask myself this question every time without fail. It seems obvious but so is lowering the landing gear before landing yet some pilots still manage to land with the gear up. Consider your emotions before you take a trade. Are you tired? Are you angry? Did you miss a good trade and now desperate to make some pips? Have you made your weekly or monthly goals? If you have met your goals you don’t need to trade, period. If you can honestly answer this question with a “yes” then pull the trigger but if not, don’t put your capital at risk.
Be accountable to somebody other than yourself.
Rob Booker pitched this idea in a presentation I watched online and I believe it is the strongest action you can take to eliminate any propensity you have to over trade. Whoever you report to should have a basic understanding of your trading plan and be able to question you on each trade in a constructive setting. This is a full disclosure exercise so find somebody you can trust.
I report to my Wife every Friday morning with a print out of our account statement. We go through every trade while I explain what system I used, why I took the trade, what mistakes I made and what I could do better next time. We also discuss what I should be doing during the upcoming week if goals are already exceeded.
If knowing you need to explain why you put hard earned profit at risk for an unnecessary trade at the end of the week can’t keep you from pulling the trigger, nothing will.
Popularity: 81%
Filed Under: Investing and Trading
Tagged: Forex Beginner, Forex Trading, Learn Forex, macd, macd indicator, money, Money Management, risk, Rob Booker, support and resistance, trading plan, trading session
Similar Posts:
* What Do You Think Is Holding You Back?
* Down 400 Pips and In Denial
* 10 Steps to Guarantee Failure
* New Forex Trading Goal and Equity Curve Graph
* This week PROFIT GOAL REACHED!
Top 500 Forex Websites
Top 500 Forex Websites
August 29, 2008 by Trader Rich
Forex on Top was updated today with the latest traffic rankings for what has now grown to 500 forex websites. Their is no doubt that Google is the best place to search for specific forex content but if you’re looking for websites that you can sink your teeth in, this is the place to find them. You can also browse the top 20 movers to find upcoming forex sites that might be worth exploring.
http://www.forexontop.com
Popularity: 82%
Filed Under: Forex Announcements
Tagged: forex, forex on top, forexontop.com, Top 100 Forex Sites, Top Visited Forex Sites
Similar Posts:
* Forex Rankings Updated Today
* Oanda is #1 in Traffic
* Forex On Top Back From Hiatus
* Most Popular Forex Websites
* Most Visited Forex Websites
August 29, 2008 by Trader Rich
Forex on Top was updated today with the latest traffic rankings for what has now grown to 500 forex websites. Their is no doubt that Google is the best place to search for specific forex content but if you’re looking for websites that you can sink your teeth in, this is the place to find them. You can also browse the top 20 movers to find upcoming forex sites that might be worth exploring.
http://www.forexontop.com
Popularity: 82%
Filed Under: Forex Announcements
Tagged: forex, forex on top, forexontop.com, Top 100 Forex Sites, Top Visited Forex Sites
Similar Posts:
* Forex Rankings Updated Today
* Oanda is #1 in Traffic
* Forex On Top Back From Hiatus
* Most Popular Forex Websites
* Most Visited Forex Websites
The Good News About Forex Automated Trading
The Good News About Forex Automated Trading
August 26, 2008 by Trader Rich
I’ve received positive and negative feedback from a lot of you who have experienced forex automation. I don’t want to talk about the bad news quite yet. So what’s the good? Unfortunately, the good news mostly involves available API’s for developing your system and brokers that support automation. I haven’t heard of many success stories relating to forex automated trading. Here are some recommended API’s and brokers and some comments on whether I will explore them further.
Interactive Brokers has a free C++, Java, and .NET API. The C++ API does not come highly recommended from the one trader I received an email from but the API’s are free. He also goes on to say that, “Interactive Brokers is also good from a fund safety point of view, given they are one of the bigger brokerages. Commission is very cheap and they basically offer anything you can trade.” This seems to be the best option I’ve seen and definitely worth exploring further.
Another trader recommended Varengold Bank for trading via Metatrader. He says that he has “yet to find anything to come close to their service utilizing the Metatrader platform.” Varengold Bank is a German bank and has regulatory oversight by the German Federal Financial Services Supervisory Agency. Unfortunately I don’t have a lot of experience with brokers or regulatory agencies outside of the United States yet this may be worth exploring if Metatrader is the platform of choice.
Interbankfx with Metatrader comes recommended also. A trader who just recently started using IBFX states, “I just started live automated trading this week… They seem to be very EA friendly and come highly recommended.”
MB Trader comes recommended due to their “well documented API and you can develop and test your system on their demo servers for free. MB Trading is a relatively well-known firm inside the United States so this could be yet another option worth exploring.
Ninja trader comes recommended and could be a “good option that allows for testing and development for free.” It’s also broker independent supporting Gain Capital, Interactive Brokers, MB Trading, and more. I like options and with the multiple brokerage support, I may look into Ninja Trader further.
Other options include FXCM’s FSS or Forex system selector. Based on what I’ve read though, you really can’t design your own system. You can select from their own designed forex systems. I don’t see the benefit to this at all.
FXTraderLink provides a facility for automatically trading your account based on signals from a portfolio of signal providers. I don’t want to rely on a signal provider to “provide” me with wealth plus I don’t trust them. I’m not a big fan.
I haven’t even begun to explore any of these options yet but I will regardless of the bad news I’ve received from others. Is it possible to make money with forex automation? Unfortunately I cannot answer this. I’ve had a tough enough time making money manually trading but at this point, I’d like to try something else.
Popularity: 83%
August 26, 2008 by Trader Rich
I’ve received positive and negative feedback from a lot of you who have experienced forex automation. I don’t want to talk about the bad news quite yet. So what’s the good? Unfortunately, the good news mostly involves available API’s for developing your system and brokers that support automation. I haven’t heard of many success stories relating to forex automated trading. Here are some recommended API’s and brokers and some comments on whether I will explore them further.
Interactive Brokers has a free C++, Java, and .NET API. The C++ API does not come highly recommended from the one trader I received an email from but the API’s are free. He also goes on to say that, “Interactive Brokers is also good from a fund safety point of view, given they are one of the bigger brokerages. Commission is very cheap and they basically offer anything you can trade.” This seems to be the best option I’ve seen and definitely worth exploring further.
Another trader recommended Varengold Bank for trading via Metatrader. He says that he has “yet to find anything to come close to their service utilizing the Metatrader platform.” Varengold Bank is a German bank and has regulatory oversight by the German Federal Financial Services Supervisory Agency. Unfortunately I don’t have a lot of experience with brokers or regulatory agencies outside of the United States yet this may be worth exploring if Metatrader is the platform of choice.
Interbankfx with Metatrader comes recommended also. A trader who just recently started using IBFX states, “I just started live automated trading this week… They seem to be very EA friendly and come highly recommended.”
MB Trader comes recommended due to their “well documented API and you can develop and test your system on their demo servers for free. MB Trading is a relatively well-known firm inside the United States so this could be yet another option worth exploring.
Ninja trader comes recommended and could be a “good option that allows for testing and development for free.” It’s also broker independent supporting Gain Capital, Interactive Brokers, MB Trading, and more. I like options and with the multiple brokerage support, I may look into Ninja Trader further.
Other options include FXCM’s FSS or Forex system selector. Based on what I’ve read though, you really can’t design your own system. You can select from their own designed forex systems. I don’t see the benefit to this at all.
FXTraderLink provides a facility for automatically trading your account based on signals from a portfolio of signal providers. I don’t want to rely on a signal provider to “provide” me with wealth plus I don’t trust them. I’m not a big fan.
I haven’t even begun to explore any of these options yet but I will regardless of the bad news I’ve received from others. Is it possible to make money with forex automation? Unfortunately I cannot answer this. I’ve had a tough enough time making money manually trading but at this point, I’d like to try something else.
Popularity: 83%
Best Way To Automate Forex Trading
Best Way To Automate Forex Trading
August 13, 2008 by Trader Rich
automated forex tradingI have never traded a forex strategy live using any advanced automated methods. At the most, I’ve placed a limit order. Most, if not all of my experience has been with expert advisors in Metatrader.
I realize more than ever that if I could automate my strategies, this may take me to the next level of trading and keep me more involved in the market. At this point, I need the motivation. The subject of automated trading has always interested me but my issue has always been with trusting a broker and the platform with a live account using an expert advisor. Therefore I’m calling on everyone who has experience with automated trading to share your experiences. If you’ve used Metatrader, have you found success with any particular brokers? I know there are other automated trading software available that mostly allow trading via an FXCM API but are they any good? I know Oanda also has an API but it costs about $600/mo. If you could, please send any experiences you have to my email address at rich@forexproject.com and based on what comes in, I’ll put the information together and post it here. Thanks.
Popularity: 85%
Filed Under: Investing and Trading
Tagged: august 2008, Automated FOREX Trading, forex robot, Forex Trading, FXCM, Investing and Trading, oanda
August 13, 2008 by Trader Rich
automated forex tradingI have never traded a forex strategy live using any advanced automated methods. At the most, I’ve placed a limit order. Most, if not all of my experience has been with expert advisors in Metatrader.
I realize more than ever that if I could automate my strategies, this may take me to the next level of trading and keep me more involved in the market. At this point, I need the motivation. The subject of automated trading has always interested me but my issue has always been with trusting a broker and the platform with a live account using an expert advisor. Therefore I’m calling on everyone who has experience with automated trading to share your experiences. If you’ve used Metatrader, have you found success with any particular brokers? I know there are other automated trading software available that mostly allow trading via an FXCM API but are they any good? I know Oanda also has an API but it costs about $600/mo. If you could, please send any experiences you have to my email address at rich@forexproject.com and based on what comes in, I’ll put the information together and post it here. Thanks.
Popularity: 85%
Filed Under: Investing and Trading
Tagged: august 2008, Automated FOREX Trading, forex robot, Forex Trading, FXCM, Investing and Trading, oanda
Is Rob Booker Forex Training Any Good?
Is Rob Booker Forex Training Any Good?
August 29, 2008 by Trader Rich
This is a question I receive often and unfortunately I can no longer give an honest answer which is the only answer that I ever want to give. This is due to the fact that I haven’t dedicated myself to Rob Booker’s training since 2006 making my experiences outdated. The good news is that over the coming months, I will be able to give you an honest opinion because I am in the initial phases of giving his tutelage another go. This is possible because he has no expiration date on his training. According to his training contract, "You have as long as you need. You never have to pay me anything again…."
At first glance, there have been many changes to his training. His chart school, which are Rob’s trade ideas for students in video format appear to be more interactive. He provides a web conferencing platform where any of his students can attend and ask questions via messenging or voice. Other basic course materials seem unchanged such as the course introduction, FX basics, backtesting, support and resistance, moving averages, and similar topics. These are really basic though and I don’t see any reason why these would ever change. The course materials are also for the totally inexperienced forex trader, someone who has really never explored Forex outside of this course.
His primary trading system which has many components to it is called the Arizona Rules. He was just developing this system back when I lost interest in his training so I haven’t really explored it. If anything, it seems like Rob’s attempt is to provide his students with a well tested and possibly profitable trading system while also providing a comprehensive trading plan and system that one can take knowledge from to develop their own forex trading system.
I’m just getting involved again so I cannot comment further at this time but keep checking back here in the upcoming days and weeks for more details on Rob Booker Training. You can also read my previous and new experiences at http://www.forexproject.com/category/rob-booker-training/.
Popularity: 100%
August 29, 2008 by Trader Rich
This is a question I receive often and unfortunately I can no longer give an honest answer which is the only answer that I ever want to give. This is due to the fact that I haven’t dedicated myself to Rob Booker’s training since 2006 making my experiences outdated. The good news is that over the coming months, I will be able to give you an honest opinion because I am in the initial phases of giving his tutelage another go. This is possible because he has no expiration date on his training. According to his training contract, "You have as long as you need. You never have to pay me anything again…."
At first glance, there have been many changes to his training. His chart school, which are Rob’s trade ideas for students in video format appear to be more interactive. He provides a web conferencing platform where any of his students can attend and ask questions via messenging or voice. Other basic course materials seem unchanged such as the course introduction, FX basics, backtesting, support and resistance, moving averages, and similar topics. These are really basic though and I don’t see any reason why these would ever change. The course materials are also for the totally inexperienced forex trader, someone who has really never explored Forex outside of this course.
His primary trading system which has many components to it is called the Arizona Rules. He was just developing this system back when I lost interest in his training so I haven’t really explored it. If anything, it seems like Rob’s attempt is to provide his students with a well tested and possibly profitable trading system while also providing a comprehensive trading plan and system that one can take knowledge from to develop their own forex trading system.
I’m just getting involved again so I cannot comment further at this time but keep checking back here in the upcoming days and weeks for more details on Rob Booker Training. You can also read my previous and new experiences at http://www.forexproject.com/category/rob-booker-training/.
Popularity: 100%
Rich is Trading Forex Again
Rich is Trading Forex Again
December 31, 2008 by Trader Rich
So after yet another hiatus from trading forex, I just recently had my first trade in months. It was a successful one also. But the question I want to answer is, “Is this blog dead?” The answer is no. I’ve made a living over the past 3 years ducking in and out of here depending on what’s going on in my life. Sometimes I’m just too swamped at my real job, other times I just don’t feel like writing, but I always come back. The great thing is I’ve built up a lot of content over the years so a lot of it applies to the type of forex trader you’re trying to become.
So where do I go from here? I’m in the mood to start trading forex again so that’s what I’m going to do. I’m also going to talk a little about stocks. I’ve had a lot of success, believe it or not, trading the stock market in the last couple of months and I think I’ve learned some things that I could apply to trading forex. So you’ll hear me talk about some of these things also.
Stay tuned….
Popularity: 66%
Filed Under: Investing and Trading
Tagged: forex blog, Forex Trading
Similar Posts:
* What Is More Important In Forex Than Making Money?
* Forex Trading Out of Sync
* The Next Stage In Forex Trading
* FXCM Trading Expo Today
* Forex Trading in the Black
December 31, 2008 by Trader Rich
So after yet another hiatus from trading forex, I just recently had my first trade in months. It was a successful one also. But the question I want to answer is, “Is this blog dead?” The answer is no. I’ve made a living over the past 3 years ducking in and out of here depending on what’s going on in my life. Sometimes I’m just too swamped at my real job, other times I just don’t feel like writing, but I always come back. The great thing is I’ve built up a lot of content over the years so a lot of it applies to the type of forex trader you’re trying to become.
So where do I go from here? I’m in the mood to start trading forex again so that’s what I’m going to do. I’m also going to talk a little about stocks. I’ve had a lot of success, believe it or not, trading the stock market in the last couple of months and I think I’ve learned some things that I could apply to trading forex. So you’ll hear me talk about some of these things also.
Stay tuned….
Popularity: 66%
Filed Under: Investing and Trading
Tagged: forex blog, Forex Trading
Similar Posts:
* What Is More Important In Forex Than Making Money?
* Forex Trading Out of Sync
* The Next Stage In Forex Trading
* FXCM Trading Expo Today
* Forex Trading in the Black
Places To Get a Great Forex Trading System
Places To Get a Great Forex Trading System
September 7, 2008 by Trader Rich
It’s very important that if you’re exploring forex trading or already trading that you have a trading system. One aspect of that trading system are the actual setup rules which usually contain entry and exit techniques. Traders put a lot of time and effort in developing these setup rules too often neglecting other aspects such as position sizing or relative size of your profits compared to losses. Therefore it’s important to find a comprehensive forex trading system.
Where can you find a comprehensive forex trading system? Throughout the last three years, I’ve been through many trading systems obtained mostly from books, forums, or other websites. I’ve found that almost every time, I’ll mold that system into something totally different than the original incarnation, something that fits my personality and style of trading. Many times, the original system will also need to be expanded to include things that were neglected or forgotten. Those of you searching for the perfect system may find this method of modifying existing forex trading systems desirable. There are places where you can find the whole package without any need for modification.
This brings me to the question, "where did you get your forex trading system?" I think there are four main ways of getting a trading system.
1. Buy it. There are tons for sale out there on the net but heed caution. Many were just copied from forums, books, or other websites. Sometimes when you buy forex education, part of the package will include a trading system. For instance, Rob Booker provides his Arizona rules as part of his mentoring program.
2. Get a free one. There are many free systems that can be found in books, forums, or other websites. I guess one can question whether a system found is a book is free since you paid for the book.
3. Create an original system yourself. My main trading system is an original creation. There may be other systems out there that are similar to it since it’s a culmination of years of exposure to other systems and experiences.
4. Modify someone else’s system and make it your own. As I stated above, I have done this many times.
September 7, 2008 by Trader Rich
It’s very important that if you’re exploring forex trading or already trading that you have a trading system. One aspect of that trading system are the actual setup rules which usually contain entry and exit techniques. Traders put a lot of time and effort in developing these setup rules too often neglecting other aspects such as position sizing or relative size of your profits compared to losses. Therefore it’s important to find a comprehensive forex trading system.
Where can you find a comprehensive forex trading system? Throughout the last three years, I’ve been through many trading systems obtained mostly from books, forums, or other websites. I’ve found that almost every time, I’ll mold that system into something totally different than the original incarnation, something that fits my personality and style of trading. Many times, the original system will also need to be expanded to include things that were neglected or forgotten. Those of you searching for the perfect system may find this method of modifying existing forex trading systems desirable. There are places where you can find the whole package without any need for modification.
This brings me to the question, "where did you get your forex trading system?" I think there are four main ways of getting a trading system.
1. Buy it. There are tons for sale out there on the net but heed caution. Many were just copied from forums, books, or other websites. Sometimes when you buy forex education, part of the package will include a trading system. For instance, Rob Booker provides his Arizona rules as part of his mentoring program.
2. Get a free one. There are many free systems that can be found in books, forums, or other websites. I guess one can question whether a system found is a book is free since you paid for the book.
3. Create an original system yourself. My main trading system is an original creation. There may be other systems out there that are similar to it since it’s a culmination of years of exposure to other systems and experiences.
4. Modify someone else’s system and make it your own. As I stated above, I have done this many times.
Domain name for Forex Sites
If you are going to become an affiliate in the Forex world, you will have to pick a domain name. As a beginner, you might want to start with just one domain. Later on, as your experience grows, you can expand and manage couple of domains at the same time. How to pick up the right domain name? Where and how to register your domain? Is it possible to get a free domain for your Forex site?
Choosing domain requires some serious thinking and searching. First of all, decide what your Forex website will be about: Forex brokers reviews, Forex forum, Forex blog, Forex education, Forex software, Forex trading platforms etc. Once you have figured out your website theme, choose the domain name with the theme keywords. In fact, brainstorm with 5 top keywords, pair them up, add prefixes and/or suffixes to come up with a good domain ideas. For example, if you decide to make Forex education, a good domain may sound like:
LearnForex.com, or StartForexTrading.com, or ForexTradingGuide.com
Here are couple of more things you should know while choosing a domain for you Forex website:
1. Domain Endings - nothing better than .com
You have probably already noticed the variety of domain endings, such as .net, .org, .tv, however there is nothing better than com. Don't fall for cheaper domains because of the endings other then .com. It is just not worth it.
2. Amount of Words - The Less, the Better
First of all, since your website is about Forex, the domain name must have "Forex" in it somewhere, preferably in the beginning. Don't go overboard by using more than 3 words in the domain.
3. Hyphens and Numbers are Bad
If you can avoid numbers and hyphens in the domain name - perfect! Hyphens might look better for a human eye, but for Google and other search engine they are just obstacles.
4. Don't Look for Misspelling
I completely understand the need to be unique and have an image of a genius over the net; however, don't use difficult words in the domain name because it will only lead to misspelling. The words for your Forex website should be short, easy-to-spell and memorable. Avoid words, such as ecstasy, millennium, irresistible, sacrilegious etc. in your Forex domain!
Now it is time to register the domain for your Forex site. Before buying a domain name via Go Daddy or similar domain registrars, check whether your hosting provider gives away free domain with the hosting plan. Some hosting providers offer free the domain upon the purchase of the plan.
Search to see if the domain name you have come up with is available (there is a domain search with every registrar). Don't be too disappointed to find that all of the wanted domain names for your Forex sites are already taken by someone else. In the worst case scenario add hyphen between words, or try to brainstorm some more with words related to your Forex website topic.
Once you have found the available domain, click through, make the payment (unless you get a domain for free from your hosting provider), and you are all done! You are an official owner of a domain!
Forex Affiliate Programs - Quality information on top Forex affiliate programs including reviews and updates.
Article Source: http://EzineArticles.com/?expert=Yana_Makhanov
Choosing domain requires some serious thinking and searching. First of all, decide what your Forex website will be about: Forex brokers reviews, Forex forum, Forex blog, Forex education, Forex software, Forex trading platforms etc. Once you have figured out your website theme, choose the domain name with the theme keywords. In fact, brainstorm with 5 top keywords, pair them up, add prefixes and/or suffixes to come up with a good domain ideas. For example, if you decide to make Forex education, a good domain may sound like:
LearnForex.com, or StartForexTrading.com, or ForexTradingGuide.com
Here are couple of more things you should know while choosing a domain for you Forex website:
1. Domain Endings - nothing better than .com
You have probably already noticed the variety of domain endings, such as .net, .org, .tv, however there is nothing better than com. Don't fall for cheaper domains because of the endings other then .com. It is just not worth it.
2. Amount of Words - The Less, the Better
First of all, since your website is about Forex, the domain name must have "Forex" in it somewhere, preferably in the beginning. Don't go overboard by using more than 3 words in the domain.
3. Hyphens and Numbers are Bad
If you can avoid numbers and hyphens in the domain name - perfect! Hyphens might look better for a human eye, but for Google and other search engine they are just obstacles.
4. Don't Look for Misspelling
I completely understand the need to be unique and have an image of a genius over the net; however, don't use difficult words in the domain name because it will only lead to misspelling. The words for your Forex website should be short, easy-to-spell and memorable. Avoid words, such as ecstasy, millennium, irresistible, sacrilegious etc. in your Forex domain!
Now it is time to register the domain for your Forex site. Before buying a domain name via Go Daddy or similar domain registrars, check whether your hosting provider gives away free domain with the hosting plan. Some hosting providers offer free the domain upon the purchase of the plan.
Search to see if the domain name you have come up with is available (there is a domain search with every registrar). Don't be too disappointed to find that all of the wanted domain names for your Forex sites are already taken by someone else. In the worst case scenario add hyphen between words, or try to brainstorm some more with words related to your Forex website topic.
Once you have found the available domain, click through, make the payment (unless you get a domain for free from your hosting provider), and you are all done! You are an official owner of a domain!
Forex Affiliate Programs - Quality information on top Forex affiliate programs including reviews and updates.
Article Source: http://EzineArticles.com/?expert=Yana_Makhanov
Forex Brokers
Forex Brokers
One of the hardest decisions you face when starting out as a forex trader is which forex broker to go with. If you do a search online you will find hundreds of different forex brokers to choose from. The trouble is that some are better than others, and furthermore there are some that you should avoid like the plague.
So let me give you a list of things you should look out for when choosing a forex broker:
1. Regulation
This is arguably the most important factor because whichever broker you decide to go with, you must make sure that they are fully regulated with the relevant authority. So if they are based in the US, for example, then you should ensure that they are regulated by the NFA (National Futures Association) or the CFTC (Commodity Futures Trading Commission). Similarly if they are a UK-based company, then they should be regulated by the FSA (Financial Services Authority).
If you go with an offshore forex broker that is completely unregulated, for example, then you are taking a huge risk because you may never see your money again.
2. Spreads
If you are a relatively long-term trader and mainly use the 4 hour or daily charts, for instance, then the spreads offered by your chosen forex broker is not so much of an issue. However if you intend to trade the shorter time frames then your points gains per trade will obviously be a lot less, and therefore the spreads will start to eat into your profits. So as a general guide you ideally want to choose a broker that offers spreads of around 2 or 3 pips for the EUR/USD and GBP/USD pairs, and certainly no more than 4.
3. Leverage
The amount of leverage offered by different forex brokers varies greatly. Some may only offer 100:1 leverage while some may offer as much as 400:1. My own personal view is that 100:1 is more than enough, but if you are more of a risk taker then you may want to look for brokers that offer higher leverage.
4. Demo Accounts
If you are relatively inexperienced or if you want to test out a broker's trading platform before deciding whether or not you wish to open a live trading account, then you should choose a broker that provides a free demo account. Most reputable brokers offer demo accounts nowadays so I would always recommend you take advantage of this facility.
5. Account Types
Although all forex brokers cater for the well capitalized traders, not all of them cater for those traders who wish to trade smaller positions. Therefore if you yourself fall into this category, then you should look out for brokers that allow you to trade mini-lots (equivalent to around $1 per pip) or micro-lots ($0.1 per pip).
6. Minimum Deposit
If money is tight or you want to start off small (which is always a good idea), then you will want to choose a forex broker that requires a relatively low minimum deposit when opening a live trading account.
7. Charting Software
Nearly all forex brokers provide some kind of charting software free of charge when you open an account with them. It may be the highly popular Metatrader 4 platform or it may simply be a no-frills charting package. So therefore if you do want to use some of the more advanced charts, then I suggest you go with a broker that provides the Metatrader 4 or ProRealTime platform, for instance, otherwise you will have to fork out some money to access some decent charts elsewhere.
8. Additional Services
As well as charting software, you may also want your broker to provide a range of additional services such as daily commentaries, market analysis, educational materials and the option to deal through your mobile phone.
9. Customer Service
If you are just starting out as a forex trader you will probably have several questions and queries when you first open an account with a broker. So therefore you should try and join a broker that offers a high level of customer service. One way of testing this out is to contact the help desk of the brokers you are considering joining, ask them a particular question, and see how long they take to get back to you.
10. Customer Comments And Reviews
Finally your ultimate choice of forex broker will often be swayed by what other traders have to say about them. There are several websites which contain customer reviews of all of the leading brokers and you will find no shortage of opinions on all of the different forex forums.
However one thing I will say is that you will never come across brokers that have nothing but positive reviews, so don't waste too much time looking for the perfect broker because it simply doesn't exist. Just look for brokers that have a high number of positive comments and you should be fine.
One of the hardest decisions you face when starting out as a forex trader is which forex broker to go with. If you do a search online you will find hundreds of different forex brokers to choose from. The trouble is that some are better than others, and furthermore there are some that you should avoid like the plague.
So let me give you a list of things you should look out for when choosing a forex broker:
1. Regulation
This is arguably the most important factor because whichever broker you decide to go with, you must make sure that they are fully regulated with the relevant authority. So if they are based in the US, for example, then you should ensure that they are regulated by the NFA (National Futures Association) or the CFTC (Commodity Futures Trading Commission). Similarly if they are a UK-based company, then they should be regulated by the FSA (Financial Services Authority).
If you go with an offshore forex broker that is completely unregulated, for example, then you are taking a huge risk because you may never see your money again.
2. Spreads
If you are a relatively long-term trader and mainly use the 4 hour or daily charts, for instance, then the spreads offered by your chosen forex broker is not so much of an issue. However if you intend to trade the shorter time frames then your points gains per trade will obviously be a lot less, and therefore the spreads will start to eat into your profits. So as a general guide you ideally want to choose a broker that offers spreads of around 2 or 3 pips for the EUR/USD and GBP/USD pairs, and certainly no more than 4.
3. Leverage
The amount of leverage offered by different forex brokers varies greatly. Some may only offer 100:1 leverage while some may offer as much as 400:1. My own personal view is that 100:1 is more than enough, but if you are more of a risk taker then you may want to look for brokers that offer higher leverage.
4. Demo Accounts
If you are relatively inexperienced or if you want to test out a broker's trading platform before deciding whether or not you wish to open a live trading account, then you should choose a broker that provides a free demo account. Most reputable brokers offer demo accounts nowadays so I would always recommend you take advantage of this facility.
5. Account Types
Although all forex brokers cater for the well capitalized traders, not all of them cater for those traders who wish to trade smaller positions. Therefore if you yourself fall into this category, then you should look out for brokers that allow you to trade mini-lots (equivalent to around $1 per pip) or micro-lots ($0.1 per pip).
6. Minimum Deposit
If money is tight or you want to start off small (which is always a good idea), then you will want to choose a forex broker that requires a relatively low minimum deposit when opening a live trading account.
7. Charting Software
Nearly all forex brokers provide some kind of charting software free of charge when you open an account with them. It may be the highly popular Metatrader 4 platform or it may simply be a no-frills charting package. So therefore if you do want to use some of the more advanced charts, then I suggest you go with a broker that provides the Metatrader 4 or ProRealTime platform, for instance, otherwise you will have to fork out some money to access some decent charts elsewhere.
8. Additional Services
As well as charting software, you may also want your broker to provide a range of additional services such as daily commentaries, market analysis, educational materials and the option to deal through your mobile phone.
9. Customer Service
If you are just starting out as a forex trader you will probably have several questions and queries when you first open an account with a broker. So therefore you should try and join a broker that offers a high level of customer service. One way of testing this out is to contact the help desk of the brokers you are considering joining, ask them a particular question, and see how long they take to get back to you.
10. Customer Comments And Reviews
Finally your ultimate choice of forex broker will often be swayed by what other traders have to say about them. There are several websites which contain customer reviews of all of the leading brokers and you will find no shortage of opinions on all of the different forex forums.
However one thing I will say is that you will never come across brokers that have nothing but positive reviews, so don't waste too much time looking for the perfect broker because it simply doesn't exist. Just look for brokers that have a high number of positive comments and you should be fine.
Trading For Beginners
At first sight, the means by which to learn Forex trading online can seem a little daunting to the beginner. There are a number of factors to take into account and a whole new set of terminology to master.
But Forex training for beginners is readily available on the internet and can be accessed 24/7 for anyone to learn trading from scratch. The principle is simple - to take advantage in the changing value between two currencies as they trade in the global market. That means taking a position and then managing the exposure to take profits when the movement is in your favour and cutting losses when the movement is against you.
As with any skill, practice will make the trader perform better. Even beginners Forex trading can make as much money as a seasoned professional if they follow the basic rules and stay controlled. Gathering information on Forex trading strategies is also simple. There are numerous broker sites offering trading software and practice accounts for beginners to start getting comfortable with how the markets work. The more the prospective trader learns about how to trade the better armed they will be to make money.
Forex markets are open at all times of the day and all days of the week. If you need this kind of access then choose the right broker system to work with. You'll need to be active and set good stop loss positions to cover whilst you are not online but have open positions.
If you're still unsure about the ins and outs or currency trading and would like help to learn learn forex trading online, there are many helpful currency trading forums out there with seasoned pro traders who are more than happy to answer any questions you may have or you can try the various trading course reviews websites.
Pro Trading Course will teach you everything you need to know to help you learn forex trading via remote forex trading courses and one-to-one mentorship from experienced Traders.
Article Source: http://EzineArticles.com/?expert=Ryan_Owen
But Forex training for beginners is readily available on the internet and can be accessed 24/7 for anyone to learn trading from scratch. The principle is simple - to take advantage in the changing value between two currencies as they trade in the global market. That means taking a position and then managing the exposure to take profits when the movement is in your favour and cutting losses when the movement is against you.
As with any skill, practice will make the trader perform better. Even beginners Forex trading can make as much money as a seasoned professional if they follow the basic rules and stay controlled. Gathering information on Forex trading strategies is also simple. There are numerous broker sites offering trading software and practice accounts for beginners to start getting comfortable with how the markets work. The more the prospective trader learns about how to trade the better armed they will be to make money.
Forex markets are open at all times of the day and all days of the week. If you need this kind of access then choose the right broker system to work with. You'll need to be active and set good stop loss positions to cover whilst you are not online but have open positions.
If you're still unsure about the ins and outs or currency trading and would like help to learn learn forex trading online, there are many helpful currency trading forums out there with seasoned pro traders who are more than happy to answer any questions you may have or you can try the various trading course reviews websites.
Pro Trading Course will teach you everything you need to know to help you learn forex trading via remote forex trading courses and one-to-one mentorship from experienced Traders.
Article Source: http://EzineArticles.com/?expert=Ryan_Owen
Long Term forex trading
January 25, 2010
Here's A Long-Term Forex Trading System You Can Use
Just before I go on holiday, I thought I would leave you with a long-term forex trading system that you may want to play around with. I came up with it over the weekend and it does seem to be very promising so far. It basically uses four variations of the Supertrend indicator, and seems to be most profitable on the weekly charts (where you start to get the really big trends).
So the indicators you need are as follows:
More on Here's A Long-Term Forex Trading System You Can Use
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January 23, 2010
The USDBOT Robot - A Sneak Preview
I don't normally mention forex robots very much on this blog, but there's been a lot of hype surrounding the upcoming launch of a new robot called USDBOT, so I thought I would bring it to your attention.
You can find out more about the USDBOT robot by clicking here and downloading the free report, but here's a quick run-down of some of the main features of this particular robot:
- Trades EUR/USD and USD/JPY pairs.
- Has built in neural technology that adapts to new market conditions.
- Designed by professionals.
- Completely automated.
- Takes less than 5 minutes to install.
- Live trading results updated every 15 minutes (after product launches).
I don't really have any experience of forex robots at all, so I can't tell you how profitable the USDBOT actually is. However I understand that the free report gives you past results from the last few years, so this should give you some idea of how good it is.
Here's A Long-Term Forex Trading System You Can Use
Just before I go on holiday, I thought I would leave you with a long-term forex trading system that you may want to play around with. I came up with it over the weekend and it does seem to be very promising so far. It basically uses four variations of the Supertrend indicator, and seems to be most profitable on the weekly charts (where you start to get the really big trends).
So the indicators you need are as follows:
More on Here's A Long-Term Forex Trading System You Can Use
Filed under Blog by JamesW
del.icio.us Digg Furl Reddit Ask blogmarks Google Netscape Socializer StumbleUpon
Technorati Windows Live Yahoo! Help
January 23, 2010
The USDBOT Robot - A Sneak Preview
I don't normally mention forex robots very much on this blog, but there's been a lot of hype surrounding the upcoming launch of a new robot called USDBOT, so I thought I would bring it to your attention.
You can find out more about the USDBOT robot by clicking here and downloading the free report, but here's a quick run-down of some of the main features of this particular robot:
- Trades EUR/USD and USD/JPY pairs.
- Has built in neural technology that adapts to new market conditions.
- Designed by professionals.
- Completely automated.
- Takes less than 5 minutes to install.
- Live trading results updated every 15 minutes (after product launches).
I don't really have any experience of forex robots at all, so I can't tell you how profitable the USDBOT actually is. However I understand that the free report gives you past results from the last few years, so this should give you some idea of how good it is.
Forex Trading for beginners
The Web Client Terminal for MetaTrader 4 provides the exact same functionality as the desktop windows downloaded version.
You can run Expert Advisors in it. You can analyze charts. You can place trades. Everything! And you can do so from any iPhone, Mac web-browser, linux web browser or any internet cafe in the world! By using a web client terminal there is no need to download the MT4 Client Terminal anymore on your machine. You can trade just by using any Web Browser that is Java enabled.
Using the Boston Technologies Web Client Terminal for MetaTrader 4 you can trade on:
• Firefox
• Internet Explorer
• Safari
• Chrome
• iPhone
And many other platforms.
The entire Client Terminal functionality is there: Charts, trades, net position — everything!
You can run Expert Advisors in it. You can analyze charts. You can place trades. Everything! And you can do so from any iPhone, Mac web-browser, linux web browser or any internet cafe in the world! By using a web client terminal there is no need to download the MT4 Client Terminal anymore on your machine. You can trade just by using any Web Browser that is Java enabled.
Using the Boston Technologies Web Client Terminal for MetaTrader 4 you can trade on:
• Firefox
• Internet Explorer
• Safari
• Chrome
• iPhone
And many other platforms.
The entire Client Terminal functionality is there: Charts, trades, net position — everything!