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Should new traders use a Forex robot?

August 14, 2015 by admin

Trading courses to teach forex robot tips

Forex robots may not be safe for new traders.

Forex trading can be one of the best ways to make money from home, allowing you to give up your 9-5 day job and replace it with a far greater quality of life and a much bigger pay check at the end of the month. Of course, this will only be possible if you are able to trade the Forex market effectively whether you are manually trading or using automated Forex trading software.

Today we are seeing more people than ever try and make a living in Forex, but sadly the majority of traders lose huge sums of money and give up before the magic can happen. I have been there myself so I know how frustrating it can be when you see losing trade after losing trade with no understanding of where and why it all went wrong. But I was determined to make it work and stuck with it until I was able to trade with confidence and more importantly with success.

Today the Forex market gives me a very good and flexible lifestyle and I only need to work for a few hours each day to achieve the level of return I desire. During the last few years the Forex market has grown so quickly and has never seen so many people getting involved, but despite the huge interest it is arguably harder than ever for new Forex traders to be successful.

Why is this I hear you ask? The answer is down to the so called Forex guru’s who claim to have the best system, robot or method available. The problem is that most of them do not which, is not to say that all Forex products are a waste of time and money, but the majority of them most definitely are. The difference between success and failure is often going to be whether or not you pick a robot that works, or a Forex course that really does cover the important aspects of trading.

If you are new to trading then choosing the best Forex trading robot or course is not going to be easy, given the huge number of products being released each month. So I decided that I would start my own Forex site to help guide newbie traders through a number of products that do work. Of course, I cannot buy and test every product that is released to the market so I will be looking at those that I believe are the better products, testing them for myself and writing my no nonsense reviews here.

So why do most Forex trading robots fail?

The major flaw with most robots is the fact that they cannot predict what will happen in an ever changing and highly volatile market. They are each designed in a precise way with specific preset instructions and rules and cannot adapt if market conditions change. When they are first released they will often make winning trades as the market is the same or very similar to the market they were tested in and designed for, but as the market changes the robots keep applying the same rules and end up losing more trades than they win.

What makes a successful robot?

The first thing I look for when reviewing a new Forex trading robot is whether or not the software will be updated by the developers. This is so important. As I have already mentioned, the Forex market can change very suddenly and robots need to be able to adapt to keep up with these changes in order to continue trading effectively. Software updates are an indication that the creators will be around for sometime so you can be sure that they want to get it right. Some product owners will release a product to make a load of quick money, then disappear leaving their customers on their own with a piece of software that doesn’t work.

Some of the better robots are owned by people who not only send free updates but also hold free webinars to discuss various strategies and settings they use with their robot. It is also imperative that you only ever look at robots that show you live results. Designing a robot that works well on back testing is not difficult, for when you know what happened in yesterday’s market it’s very easy to predict. We can all win huge amounts of money betting on horses when the race was run yesterday as we know the winner, so why would we trust people who show us how their robot performs in old market conditions?

In summary the three main points to look at when deciding on a new Forex trading robot are: regular software updates, customer support and live trading results.

Forex Trading Courses

Forex trading courses are another investment you can make if you are serious about becoming a full time trader – for me this is a better investment than buying a robot. While I do use robots I believe that you should know exactly how things work if you want to trade full time. It is too risky to try and make a living in an industry that you know nothing about.

Education is vital if you want to be a successful trader. I started with robots, lost money left right and center and decided to enroll in a Forex trading course to learn how to trade for myself. Initially I was worried that Forex was too complicated for me to learn and would take too much time out of my day, but I was totally wrong. You can find courses that are laid out so well that you cannot fail to learn quickly and easily with help from well written step by step instructions and guides.

We would recommend FAP Turbo if you’re interested in checking out the state of the art robots today.

The cost of such courses are a lot more than your average robot but you are normally offered a payment plan to help spread the cost over a period of 3 to 6 months. When I first bought in I opted for a 3 month payment plan and actually paid for more than half the cost of the course using money I made using knowledge that I had gained from the course.

In addition to the Forex broker reviews and reviews of FX affiliate programmes on this site you can also find lots of helpful Forex information covering everything from the basics of the Forex market through to some of the more advanced trading methods used by the pros. Learn everything from technical analysis and who the best Forex brokers are, as well as lots of other Forex news to help traders be successful at online Forex trading. I will even be sharing some of my favourite Forex strategies.

Before trading currencies, learn the seven laws of successful traders

December 30, 2014 by admin

In this article we share some basic tips that every Forex trader should learn before trading real money. Most people are pulled into the world of day trading by the notion that they are able to make vast amounts of cash quickly. Oh if only things were this simple.

You see; the majority of people do not seem to realize that the profits they have their minds set on do not exist yet. It is all down to the trading style of a person to turn these ‘virtual profits’ into real gains.

The problem is that many rookies have absolutely no idea what they are doing in this regard. They will tend to blow away the cash that they have available before they even learn how to trade or how different currency pairs correlate to others. That is why we have put together this article–whether or not you are a Forex affiliate or a trader–because either way, keeping a couple ‘guidelines’ in mind can mean the difference between success and failure in the world of Forex day trading. Here are our top Forex trading tips.

Knowledge: When it comes to any type of trading, knowledge is going to be at the forefront of everything. Knowledge about your planned trades, the way in which prices have acted previously, and even knowledge about the news is going to be vital in making your decision. As a rookie trader it is likely that you are going to spend more time reading through information and selecting the trades as opposed to actually trading. Always make informed decisions; they are much more profitable.
Focus on small wins: It is important that you are realistic about the amount of profit that you could potentially make. Many rookie traders are greedy. Don’t be greedy. In our opinion, and probably the opinion of most Forex traders out there, it far, far better to end up with just a small amount of profit than nothing at all! Nobody ever went broke by taking a profit, no matter how small.
Leveraged Trader: As a newcomer to the world of Forex day trading it is suggested that you steer clear of extremely leveraged trading. The high degree of volatility associated with positions over 100:1 could cut into your profits substantially in mere seconds, so beware of the greedy voice telling you to roll the dice…that’s gambling, not currency trading.
Entry & Exit: It is important that you know exactly what price you are going to enter and exit a particular market at. This will help increase your profits and reduce your losses. You always stick to your intentions too…be a robot…seriously. You want to exit a market as soon as conditions become less than favorable to you. When you start trading on emotion, you will tend to make rash decisions.
Pairs: During your early days of trading you should stick to just one or two currency pairs at a time. This should make everything easier to manage. We know plenty of day traders out there who trade multiple pairs at once, but unless they are highly skilled, these people find it very tough to spot opportunities to both enter and exit a market.
Look before you leap into a trade: It is important that you try not to trade during the first 20 minutes or so of the trading day unless you understand how to ‘fade’. Price movements tend to be very profitable here due to severe turbulence, but most FX traders should be trading during the middle part of the exchange’s day as prices will be a whole lot more stable and it will slightly be more difficult to make ‘stupid’ decisions.
Manage your money: The only money that you should be trading with is money that you are prepared to lose. You do not want to be cutting into your living expenses and the like for the sake of making a trade. The last thing you want to do is find yourself homeless, right?

How I made and lost more than $10,000 in Forex trading within four days

December 15, 2014 by admin

Like some of our readers, I studied finance at university and worked in the industry first-hand. I also happen to come from a family that worked in the investments sector as well, so I was no stranger to the idea of trading. What was foreign to me is currency trading. Having had good success in the stock market, I decided to try my hand at Forex trading. This was years ago, but it taught me a valuable lesson; one that I hope readers will not repeat.

Here is how I made and lost $10,000 within four days.

The first day: I opened a trading account with a well-known online Forex broker, and deposited roughly $2000. I traded with that for a day before losing almost all of it. So what did I do next? Deposited more money, of course!

This time I decided to deposit slightly more than $5000. I figured that the $2000 I had started with was a good learning experience, and that I would now be more successful and discerning when trading currencies.

Day two: I started trading with my new deposit, I made over $3000 in a matter of six hours. I was on fire! One trade after another, I racked up profits, sometimes within just 10min of one another. It was insane. Do you know that scene in Good Will Hunting where Matt Damon is trying to explain how things like organic chemistry are easy for him, that he ‘just gets it’? that is how I imagine myself. ‘Of course,’ I thought to myself, ‘it is so obvious that I am the next George Soros!’

I took a leisurely lunch at a nice restaurant that day to pat myself on the back for a job well done.

Day three: I continued using the same strategy I used in day one, which was to set my leverage at 500:1, trade 90% of my account value on one pair, and wait for the magic to happen. Just as the day before, I made more than $3000. I was getting smog, texting one of my friends with every trade profit: $600!…(35 minutes later) $250!…( 14 min. later) $820!… You get the picture. My friend warned me to stop while I was ahead, and even though I had one or two losing trades that day, I had now racked up over $6000 in profits for doing little more than clicking a few buttons.

Day four: like they say, if it ain’t broke do not fix it, so I continued my high leverage strategy, this time messing around with more exotic pairs. I will spare you the details, since it is a little more than a rehash of the previous two days, but I made over $6000 that day. My mind turned to thoughts of philanthropy, thinking how, even if I only managed to be half as profitable as I’d been to this point, I could easily help out some worthy charities.

As I walked down the street during my lunch break, I think I stood about 3 inches taller, looking man twice my age and twice my size in the eye well aware that I had made far more before lunch than they had probably made in a couple weeks. I was on top of the world. But, as the Good Book says,

Pride comes before destruction, a haughty spirit before a fall.

When I got back from lunch, I decided to roll the dice and put everything on what I considered was a sure-fire winner. The only problem was I forgotten that I had a big meeting later that day. When one of my colleagues stopped by my office to tell me that the boss was waiting, I had to leave my trade and run into the boardroom. ‘I’ll be ok’, I thought, ‘the trade looks stable.’

The meeting dragged on far longer than it was supposed to, and when I surreptitiously looked at my smart phone app to see how my trade was doing, my heart sunk. I had gotten on the wrong side of the trade big time… I had over $17,000 in my account before the meeting, and now I’d lost everything but a couple thousand dollars.

I was sick, but there was nothing I could do at this point.

By the time I got out of the meeting I had a margin call and my position was automatically closed out.

Once I got home that evening, cursing my lack, I decided to put on one more trade. This was sort of a Hail Mary pass, against all odds, in the hopes of regaining my money once again. Needless to say, it did not go so well, at least not as well as I had hoped, and by the next morning I had basically made and lost $10,000 in the 72 hour period.

The moral of the story is, the market has a paddle large enough to give everybody a spanking. No matter how successful you are, you are not immune to the illogical, irrational movement that is part and parcel of currency trading. When I traded for acts as if it was some gambling table in Las Vegas, I experienced the highs and the lows that go along with a lack of money management. Since then I have learned to be more conservative, and I am pleased to say that I have never repeated these mistakes in my training history. It may have cost me thousands of dollars, but I consider those days on the rough seas of Forex trading to be the most formative education that I have ever had.

When to close a profitable trade

December 11, 2014 by admin

whether you are new to trading or you consider yourself a seasoned pro, knowing when to close out a winning trade means the difference between long-term success and failure in Forex.

There are a great number of opinions concerning trading strategies, but we feel that erring on the side of caution by taking profits is the best practice for most traders. However, this is not to suggest that you should be overly cautious.

For instance one of the best ways to trade actively, but conservatively, is to move your stop losses to a point where you either break even or make a small profit on your winning trade. Personally, even if you only lock-in a few pips, it is still far better psychologically than walking away from your trading station having lost even as little as $20. Why? Because even small gains allow you to walk away as a winner, maintaining the proper psychological mindset that you had an up day.

The number one reason winners turn into losers is because of greed, plain and simple. We have all been there, a trade gains momentum, seems to go up and up, and we get cocky and tell ourselves that will close out the position when it gets to whatever the next level is in our mind. The problem is, the trade may reverse quickly and then we begin an inner dialogue about how it is sure to rebound, how this is just a consolidation or correction, and that the long-term trend is in our favor.

Perhaps you can get away with that kind of thinking if you are George Soros, but like the rest of us mortals, the reason why so many people lose in four acts by blowing up their accounts is because they have convinced themselves they are invincible or that the markets over them a better trade.

What is worse is when, after closing out too late, desperate Forex traders will tend to use too much leverage and make risky trades in hopes of gaining a profit. But if you do not already understand the basics of when to close out a profitable trade, no amounts of magical thinking, technical analysis, or analysts recommendations are going to help you make a living trading Forex.

Another option is to simply scale out of a trade, closing 80% of the position when you are solidly in the money, then move your stop loss to let the trade run.

In a nutshell, if you find yourself in a fast-moving market, where you have already made some decent profits, establish some criteria for when you are going to get out of a trade profitably. Different people will have different targets, for some it will be a dollar amounts and for others it will be a certain number of pips, but either way set some rules and live by them and you will close more profitable trades than you ever have before.