Trading Really For You?
May 12th, 2012 | 
Author: 
Is Forex Trading Really For You? The trouble with being a full-time forex trader is that it can be a very lonely profession if you’re trading your own account at home. Everyone thinks it’s an exciting, exhilarating profession sitting at your computer in your underwear watching the markets, going long, going short, raking in huge profits, but the reality is somewhat different. You can sit staring at your computer screen for hours on end waiting for a good set-up to enter a trade, and sometimes you can sit there for the whole day and not enter a trade. And even if you do find a trade, when it goes against you and you have to close out at a loss, then it’s a gut-wrenching feeling. You’ve wasted a whole day, and not only have you not earned any money, but you’ve actually lost money. You could have made more money working a menial job for the minimum wage that day. Also in most cases you’re all alone and therefore have no work colleagues. You have no social interaction at all during the day except to maybe exchange pleasantries with the postman or to go down to the newsagents for a paper. Over many months and years this lack of social interaction can be quite depressing, especially if you are a naturally social person. Talking to traders on a forum or a load of pretend friends on Facebook is no substitute for real human interaction. There will also be lean times for even the most profitable traders, which can be extremely stressful, particularly if you have mortgage payments to make, bills to pay, and a family to support. Yes the potential profits you can make are almost limitless thanks to leverage and compounding, but it’s a very tough, and often very stressful way of making a living. Saying all that though, I’ve been working for myself since 2001, with forex trading contributing greatly to my overall income and I absolutely love it. Admittedly the lack of social interaction isn’t really an issue as I don’t really like people generally. In all seriousness though, if you can learn to trade successfully then you will be very well rewarded financially, which will allow you to have a great social life away from your computer screen and you can enjoy the benefits of being your own boss and the maker of your own destiny. For more forex tips and strategies, including full details of my main 4 hour trading strategy, simply sign up to my newsletter by filling in the short form above.
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Books on Trading Strategies
Books on Trading Strategies
Forex strategy e-books that are listed here provide information on the specific trading strategies as well as the use of particular Forex trading instruments. Basic knowledge of Forex trading is required to correctly understand and use these strategies.
Almost all Forex e-books are in .pdf format. You’ll need Adobe Acrobat Reader to open these e-books. Some of the e-books (those that are in parts) are zipped.
If you are having problems downloading the books and you are using Google Chrome, try right-clicking a book download link and choose ‘Save link as…’
If you are the copyright owner of any of these e-books and don’t want me to share them, please, contact me and I will gladly remove them.
1-2-3 System — a simple pattern trading system by Mark Crisp.
Bollinger Bandit Trading Strategy — a trading system based on Bollinger bands indicator by unknown author.
Value Area — from The Likos Letter.
The Dynamic Breakout II Strategy — by unknown author.
Ghost Trader Trading Strategy — by unknown author.
King Keltner Trading Strategy — by unknown author.
Scalp Trading Methods — by Kevin Ho.
LSS – An Introduction to the 3-Day Cycle Method — by George Angell.
Market Turns And Continuation Moves With The Tick Index — by Tim Ord.
The Money Manager Trading Strategy — by unknown author.
Picking Tops And Bottoms With The Tick Index — by Tim Ord.
The Super Combo Day Trading Strategy — by unknown author.
The Eleven Elliott Wave Patterns — by unknown author.
The Thermostat Trading Strategy — by unknown author.
Intraday trading with the TICK — by Christopher Terry.
Traders Trick Entry — by Traders Educators of Traders University.
Fibonacci Trader Journal — a journal covering different trading techniques based on Fibonacci indicators, by Robert Krausz. 12 issues.
Rapid Forex — a set of aggressive Forex trading strategies (Rapid Forex) by Robert Borowski and Stephen A. Pierce.
Microtrading the 1 Minute Chart — a small e-book aimed on Forex newbies to teach them the basics of M1 scalping.
BunnyGirl Forex Trading Strategy Rules and FAQ — set of rules for a BunnyGirl trading strategy based on WMA crossing.
The Daily Fozzy Method — by Michael Dunbar.
Forex Trader’s Cheat Sheet — real Forex cheat sheet for position entry times/conditions by Quantum Research Management Group.
Offset Trading — a basic Forex news trading range breakout system by Dana Martin.
How to Trade Both Trend and Range Markets by Single Strategy? — by S.A. Ghafari.
A Practical Guide to Technical Indicators; Moving Averages — by S.A. Ghafari.
FX Wizard — essential Forex trading rules by Rob Walton.
FX Destroyer — a description of a rather simple Forex trading strategy, involving moving averages, parabolic SAR and ADX indicators, by Izu Franks.
A Practical Guide to Swing Trading — a simple and practical guide to the swing trading strategy, by Larry Swing.
Practical Fibonacci Methods for Forex Trading — practical guide to Fibonacci levels with the real trade examples of the Forex strategy based on these levels, by Ken Marshall and Rob Moubray.
Using The Heikin-Ashi Technique — a short but detailed guide to trading using Heikin-Ashi charting technique, by Dan Valcu.
The Day Trade Forex System — an indicator-based strategy with detailed description, chart examples and minor advertising, by Erol Bortucene and Cynthia Macy.
5/13/62 — a revised and updated EMA-based Forex trading strategy explained in the 3-grade language, by Rob Booker.
Not So Squeezy Trading Manual — a description for the rather interesting trading strategy that utilizes indicators package under the same name, by Akuma99.
KobasFX Strategy — a simple MA+MACD Forex trading strategy by Obaseki O. A.
Killer Patterns — a simple trading strategy based on MACD and trend lines by Philip Birchley.
3D Trading — a detailed description of a trading strategy that employs Elliott Waves, price & time patters, Gann rules, Williams’ Percentage Range and MACD indicators; by Ruben Topaz.
Forex Broker
| Forex Broker | Min. Account Size | Broker Rating | Min. Position Size | Payment | Max. Leverage | Regulation | Spread | US | |||||||
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| Trading Point | $1 | 5.8 | 0.01 | 1:500 | |||||||||||
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| GOMarkets | $500 | 5.5 | 0.001 | 1:500 | |||||||||||
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| InstaForex | $1 | 3.8 | 0.0001 | 1:1000 | |||||||||||
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| Vantage FX | $1 | 5.7 | 0.01 | 1:500 | |||||||||||
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| TradeFort | $0.01 | 6.2 | 0.0001 | 1:1000 | |||||||||||
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| RoboForex | $10 | 5.6 | 0.001 | 1:500 | |||||||||||
| EXNESS | $1,000 | 4.6 | 0.01 | 1:2000 | |||||||||||
| eToro | $50 | 5.4 | 0.1 | 1:400 | |||||||||||
| FXOpen | $1 | 5.5 | 0.1 | 1:500 | |||||||||||
| Forex4you | $1 | 5.7 | 0.0001 | 1:500 | |||||||||||
| LiteForex | $10 | 6.5 | 0.001 | 1:500 | |||||||||||
| Ava FX | $1 | 6.0 | 0.01 | 1:400 | |||||||||||
| United World Capital | $25 | 4.8 | 0.01 | 1:500 | |||||||||||
| FXcast | $10 | 5.6 | 0.01 | 1:400 | |||||||||||
| Easy-Forex | $25 | 4.3 | 0.05 | 1:200 | |||||||||||
| AGEA (ex-Marketiva) | $0.01 | 5.7 | 0.00001 | 1:500 | |||||||||||
| MasterForex | $1 | 3.5 | 0.01 | 1:500 | |||||||||||
| ACM | $1,000 | 3.7 | 0.1 | 1:100 | |||||||||||
| Alpari | $100 | 5.8 | 0.01 | 1:500 | |||||||||||
| CMS Forex | $250 | 5.5 | 0.01 | 1:200 | |||||||||||
| Forex.com | $250 | 5.7 | 0.1 | 1:200 | |||||||||||
| FX Solutions | $250 | 5.4 | 0.01 | 1:50 | |||||||||||
| GFT Forex | $2,500 | 6.0 | 0.1 | 1:50 | |||||||||||
| Interactive Brokers | $10,000 | 6.9 | 0.25 | 1:100 | |||||||||||
| Interbank FX | $10,000 | 5.9 | 0.01 | 1:50 | |||||||||||
| MB Trading | $400 | 3.6 | 0.1 | 1:50 | |||||||||||
| OANDA | $1 | 5.7 | 0.00001 | 1:50 | |||||||||||
| RTFX | $1 | 5.9 | 10 | 1:100 | |||||||||||
| Saxo Bank | $2,000 | 5.6 | 0.05 | 1:200 | |||||||||||
| Tadawul FX | $500 | 5.7 | 0.05 | 1:500 | |||||||||||
| X-Trade Brokers | $500 | 4.0 | 0.1 | 1:100 | |||||||||||
| Finotec | $200 | 5.4 | 0.1 | 1:200 | |||||||||||
| FXCM | $2,000 | 5.5 | 0.01 | 1:50 | |||||||||||
| PFG Forex | $1,000 | 5.1 | 0.1 | 1:100 | |||||||||||
| Dukascopy | $500 | 6.6 | 0.01 | 1:100 | |||||||||||
| Real Trade | $20 | 5.2 | 0.01 | 1:100 | |||||||||||
| Forex Club | $200 | 5.8 | 0.01 | 1:200 | |||||||||||
| MIG Bank | $2,000 | 6.9 | 0.1 | 1:100 | |||||||||||
| Questrade FX | $1,000 | 3.4 | 0.1 | 1:200 | |||||||||||
| IG Markets | $1 | 3.8 | 0.1 | 1:200 | |||||||||||
| MFFX | $100 | 5.0 | 0.01 | 1:500 | |||||||||||
| CMC Markets | £200 | 5.8 | 1 | 1:100 | |||||||||||
| IFC Markets | $1 | 5.7 | 0.0001 | 1:400 | |||||||||||
| MFN | $5,000 | 5.4 | 0.1 | 1:200 | |||||||||||
| iFOREX | $100 | 5.4 | 0.02 | 1:400 | |||||||||||
| FIBOGroup | $300 | 5.4 | 0.01 | 1:200 | |||||||||||
| FXDD | $250 | 5.6 | 0.1 | 1:200 | |||||||||||
| ActivTrades | $250 | 5.8 | 0.01 | 1:400 | |||||||||||
| marketindex | £1 | 5.5 | 0.00001 | 1:50 | |||||||||||
| GCI Financial | $50 | 5.1 | 0.1 | 1:400 | |||||||||||
| VarengoldBankFX | $2,500 | 5.4 | 0.1 | 1:200 | |||||||||||
| FxPro | $500 | 4.0 | 0.1 | 1:500 | |||||||||||
| DeltaStock | $5 | 5.7 | 0.01 | 1:200 | |||||||||||
| Forex-Metal | $1 | 3.3 | 0.01 | 1:500 | |||||||||||
| TradeView Forex | $100 | 4.8 | 0.01 | 1:100 | |||||||||||
| Exto Capital | $500 | 5.8 | 0.1 | 1:400 | |||||||||||
| NobleTrading | $1,000 | 5.5 | 0.1 | 1:100 | |||||||||||
| NordMarkets | $1 | 5.4 | 0.4 | 1:100 | |||||||||||
| FXCM Micro | $50 | 5.6 | 0.01 | 1:400 | |||||||||||
| FXD24 | $10 | 4.9 | 0.01 | 1:500 | |||||||||||
| Ingot Brokers | $100 | 5.4 | 0.1 | 1:100 | |||||||||||
| Velocity Trade (ex Latitude FX) | $1,000 | 3.8 | 0.01 | 1:200 | |||||||||||
| FXTSwiss | $2,000 | 5.4 | 0.1 | 1:400 | |||||||||||
| Apex FX Trading | $1 | 4.5 | 0.1 | 1:100 | |||||||||||
| ATC Brokers | $5,000 | 5.8 | 1 | 1:200 | |||||||||||
| Windsor Brokers | $100 | 5.5 | 0.1 | 1:500 | |||||||||||
| ForexYard | $100 | 4.9 | 0.01 | 1:200 | |||||||||||
| HY Markets | $50 | 5.1 | 0.02 | 1:325 | |||||||||||
| Arab Financial Brokers | $50 | 5.4 | 0.01 | 1:400 | |||||||||||
| WH SelfInvest | €2,500 | 5.0 | 0.01 | 1:100 | |||||||||||
| Sucden | £5,000 | 4.5 | 1 | 1:100 | |||||||||||
| FOREX UKRAINE | $200 | 4.4 | 0.1 | 1:100 | |||||||||||
| FX|Clearing | $1 | 5.3 | 0.00001 | 1:1000 | |||||||||||
| Admiral Markets | $10 | 4.8 | 0.1 | 1:500 | |||||||||||
| Bulbrokers | $50 | 4.9 | 0.01 | 1:200 | |||||||||||
| HMS Markets | $5,000 | 3.4 | 0.01 | 1:50 | |||||||||||
| FXCH | $2,000 | 4.3 | 0.1 | 1:500 | |||||||||||
| BroCo | $25 | 5.5 | 0.01 | 1:500 | |||||||||||
| ATG Marketplex | $3,000 | 6.9 | 1 | 1:50 | |||||||||||
| Advanced Markets | $2,500 | 6.2 | 0.1 | 1:50 | |||||||||||
| AL Trade | $20 | 4.8 | 0.01 | 1:500 | |||||||||||
| TeleTRADE | $2,000 | 6.4 | 0.1 | 1:200 | |||||||||||
| PFD (ex-WSD) | $200 | 4.1 | 0.01 | 1:500 | |||||||||||
| N2 Capital Markets | $2,000 | 6.1 | 1 | 1:2000 | |||||||||||
| Gallant Capital Markets | $50 | 3.6 | 0.01 | 1:400 | |||||||||||
| Wall Street Brokers | $10 | 5.5 | 0.01 | 1:500 | |||||||||||
| FXM Financial Group | $1 | 5.3 | 0.0001 | 1:400 | |||||||||||
| UFXBank | $100 | 5.2 | 0.005 | 1:200 | |||||||||||
| MRC Markets | $20 | 3.7 | 0.1 | 1:500 | |||||||||||
| RFXT | $1 | 3.4 | 0.1 | 1:400 | |||||||||||
| Citypoint Trading | $100 | 4.9 | 0.1 | 1:100 | |||||||||||
| 1pipfix | $100 | 6.4 | 0.01 | 1:400 | |||||||||||
| IamFX | $100 | 5.6 | 0.01 | 1:400 | |||||||||||
| CitiFX Pro | $10,000 | 5.9 | 1 | 1:50 | |||||||||||
| Forex Capital Trading | $500 | 5.3 | 0.025 | 1:400 | |||||||||||
| Global Futures | $250 | 5.4 | 0.01 | 1:400 | |||||||||||
| Kalita-Finance | RUB5,000 | 5.4 | 0.01 | 1:200 | |||||||||||
| Renesource Capital | $500 | 3.5 | 0.1 | 1:100 | |||||||||||
| DfxTrade | $200 | 5.1 | 0.1 | 1:1000 | |||||||||||
| Finam | $10 | 5.5 | 0.01 | 1:500 | |||||||||||
| Investors Europe | $250 | 4.4 | 0.01 | 1:400 | |||||||||||
| 2pipfixed | $100 | 5.9 | 0.01 | 1:300 | |||||||||||
| Lionstone Investment Services | $1 | 5.6 | 0.00001 | 1:200 | |||||||||||
| TFIFX | $1 | 5.0 | 0.00001 | 1:100 | |||||||||||
| bforex | $100 | 3.6 | 0.025 | 1:200 | |||||||||||
| FBS | $5 | 5.5 | 0.01 | 1:500 | |||||||||||
| Persepolis Capital Management | $500 | 3.2 | 0.01 | 1:200 | |||||||||||
| FXGM | $250 | 4.3 | 0.025 | 1:400 | |||||||||||
| Gedamo Investments | $500 | 3.5 | 0.1 | 1:400 | |||||||||||
| AAAFx | $300 | 8.1 | 0.01 | 1:200 | |||||||||||
| ICM Brokers | $300 | 5.3 | 0.1 | 1:400 | |||||||||||
| fxUP.me (ex-RVMarkets) | $10 | 5.6 | 0.01 | 1:1000 | |||||||||||
| 4RunnerForex | $100 | 6.2 | 0.01 | 1:400 | |||||||||||
| Markets.com | $250 | 6.4 | 0.01 | 1:200 | |||||||||||
| STRATO Markets | $300 | 5.4 | 0.01 | 1:400 | |||||||||||
| AFM | $25,000 | 5.7 | 0.01 | 1:100 | |||||||||||
| HotForex | $1 | 6.7 | 0.01 | 1:500 | |||||||||||
| ECN Alpha Limited | $250 | 3.9 | 0.1 | 1:100 | |||||||||||
| Spread Co | $160 | 5.0 | 1 | 1:10 | |||||||||||
| Pepperstone | $200 | 4.2 | 0.01 | 1:400 | |||||||||||
| AccentForex | $1 | 7.0 | 0.01 | 1:500 | |||||||||||
| ForexControl | $2,500 | 5.4 | 0.05 | 1:500 | |||||||||||
| Forex-Trend | $20 | 5.2 | 0.01 | 1:100 | |||||||||||
| Profiforex | $1 | 5.2 | 0.01 | 1:500 | |||||||||||
| Universal FX | $1,000 | 7.0 | 0.01 | 1:100 | |||||||||||
| Loyal Forex | $50 | 6.2 | 0.01 | 1:400 | |||||||||||
| Ajax Financial | $2,500 | 5.7 | 0.1 | 1:100 | |||||||||||
| AFX Capital | $200 | 5.3 | 0.01 | 1:500 | |||||||||||
| FXOptimax | $10 | 5.6 | 0.01 | 1:500 | |||||||||||
| SunbirdFX | $100 | 4.8 | 0.01 | 1:100 | |||||||||||
| Real-Forex | $1,000 | 5.6 | 0.01 | 1:100 | |||||||||||
| Bloombex Options | $200 | 1.9 | 1 | 1:1 | |||||||||||
| Forex-Broker | $2 | 4.9 | 0.01 | 1:500 | |||||||||||
| FinFX | $10 | 4.9 | 0.01 | 1:200 | |||||||||||
| PaxForex | $10 | 6.9 | 0.01 | 1:500 | |||||||||||
| IronFX | $1 | 6.0 | 0.01 | 1:500 | |||||||||||
| Synergy FX | $500 | 3.0 | 0.01 | 1:500 | |||||||||||
| Trader’s Way | $1 | 5.4 | 0.001 | 1:500 | |||||||||||
| VertiFX | $500 | 5.6 | 0.1 | 1:200 | |||||||||||
| IC Markets | $1,000 | 4.1 | 1 | 1:100 | |||||||||||
| Grand Capital | $1 | 5.2 | 0.0001 | 1:500 | |||||||||||
| Harbour FX | $100 | 4.0 | 0.1 | 1:500 | |||||||||||
| Axiory | $100 | 5.4 | 0.01 | 1:300 | |||||||||||
| FXFlat | $500 | 5.0 | 0.1 | 1:400 | |||||||||||
| Ikon Group | $1,000 | 5.1 | 0.01 | 1:500 | |||||||||||
| ProCFD | $100 | 6.5 | 0.1 | 1:500 | |||||||||||
| AFB FX | $100 | 5.5 | 0.01 | 1:400 | |||||||||||
| DF Markets | $1 | 5.3 | 0.01 | 1:200 | |||||||||||
| Abshire-Smith | $500 | - | 0.1 | 1:200 | |||||||||||
| 1LotSTP.com | $1 | 6.0 | 0.01 | 1:400 | |||||||||||
| Bestec NFX | $100 | 5.0 | 0.05 | 1:100 | |||||||||||
| uTrader | $100 | 6.7 | 0.00025 | 1:1 | |||||||||||
| TradeNovaFX | $5,000 | 4.9 | 0.1 | 1:100 | |||||||||||
| OctaFX | $5 | 5.4 | 0.01 | 1:500 | |||||||||||
| Larson & Holz IT | $1 | 5.5 | 0.01 | 1:100 | |||||||||||
| GKFX | $1 | 5.5 | 0.1 | 1:400 | |||||||||||
| 3TG FX | $500 | 5.5 | 0.01 | 1:100 | |||||||||||
| ICM Capital | $500 | - | 0.1 | 1:250 | |||||||||||
| FXSystems.com | $25,000 | 7.0 | 1 | 1:500 | |||||||||||
| Nefteprombank | $80 | 5.3 | 0.1 | 1:100 | |||||||||||
| Infin Markets | $1 | 1.0 | 0.001 | 1:400 | |||||||||||
| 4XP | $10 | 5.9 | 0.01 | 1:300 | |||||||||||
| Boston Merchant Financial | $100 | 5.5 | 0.1 | 1:400 | |||||||||||
| Finexo | $100 | 3.4 | 0.01 | 1:200 | |||||||||||
| FxCompany | $1 | 4.3 | 0.01 | 1:500 | |||||||||||
| IncoNeon | $1 | 4.9 | 0.01 | 1:500 | |||||||||||
| Mega Trader FX | $2 | 3.6 | 0.01 | 1:500 | |||||||||||
| Plus500 | $100 | 4.3 | 0.005 | 1:50 | |||||||||||
| Xforex | $100 | 5.5 | 0.05 | 1:400 | |||||||||||
| You Trade FX | $100 | 5.6 | 0.01 | 1:500 | |||||||||||
| FastBrokers | $2,500 | 6.0 | 0.1 | 1:200 | |||||||||||
| FOREX MMCIS | $100 | 3.0 | 0.01 | 1:500 | |||||||||||
| InvestTechFX | $100 | 6.0 | 0.01 | 1:500 | |||||||||||
Online Forex Trading
Do you know what Forex trading is? Some people have heard of this type of trading, others have not. If you haven’t, it might be something you are interested in trying. Forex trading stands for foreign exchange trading. What it consists of is the buying and selling of different currencies. This is done simultaneously, and there are people who make a lot of money with this kind of trading. This is apparent by the 1.9 million dollar turnover in this market that happens every day. Also a lot of it is done online. Online Forex trading is very popular.
The most common currencies to trade are the Euro and the U.S. dollar, and the U.S. dollar and the Japanese Yen. However, nearly all of the Forex trading done involves the major currencies of the world. These include the Euro, Japanese Yen, U.S. dollar, Canadian dollar, British Pound, Australian dollar, and the Swiss franc. The Forex exchange is different from other exchanges, such as the New York Stock Exchange, in that it does not have a physical location or central exchange. The exchange day begins in Sydney, then moves to Tokyo, on to London, and finally ends in New York. Each country takes the responsibility of regulating the Forex exchange activities in their own country. So there is no overall regulatory agency. However, this does not seem to be a problem and most countries do very well at overseeing Forex exchange activities.
There are a lot of things that influence the Forex rate. For instance, economic things, like interest rates and inflation, and also political things, such as political unrest in other countries and major changes in government cause up and down changes in the Forex rate. However, these things tend to be short-term, and don’t affect it for long.
Online Forex trading sites are easy to find by surfing the Internet. Most of them provide a wealth of information for the first time trader. You can find out about the history of Forex trading, how to co it, tips on being successful, etc. You can also start trading with as little as $250 in your account on some sites. For anyone who is interested in currency or trading, it is something you should check out.
As with any type of trading, there are no guarantees that you will make money or that you won’t make money. It is a smart choice to learn as much as you can about online Forex trading before investing any money and doing any trading. It is a fact that informed investors do better than those who don’t know much about what they are trading. So get the fact before you dive in. You might just make a little money in a very interesting currency exchange.
by Bob Hett
Forex Profits
Forex, FX and the Forex market are some common abbreviations for the Foreign Exchange market. Actually it is the largest financial market in the world, where money is sold and bought freely. In its present condition the Forex market was launched in the seventies, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from demand and supply. As far as the freedom from any external control and free competition are concerned, the Forex market is a perfect market.
With a daily turnover of over trillions of dollars, the Foreign Exchange market conducts more than three times the aggregate amount volume of the United States Equity and Treasury markets combined. The Forex market is an over-the-counter market where buyers and sellers conduct foreign exchange business using different means of communication.
Unlike other financial markets, the Forex market has no physical location or central exchange. Since the Forex market lacks a physical exchange, the market trades continuously on a 24-hour basis, moving from one time zone to the next, across each of the world’s major financial centers every day. Trillions of dollars of foreign exchange activity takes place every day. From 1997 to the end of 2000, daily forex trading volume surged approximately from US$5 billion to US$1.5 trillion and more (according to various recent studies it has touched $1.7 trillion per day and dwarfs all other markets for trading in size and volume). It is really difficult, if not impossible; to determine an absolutely exact number because trading is not centralized on an exchange. But one thing is for sure that the Forex market continues to grow at a phenomenal rate.
Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. These systems required as much as US$1 million to open an account. Thanks to advancements in online technology, today investors with only a few thousand dollars can have access to the Forex market 24 hours a day and around 5 ? days of a week.
The Forex market is a nonstop cash market where currencies of nations are traded, typically via brokers called forex brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets while traders increase or decrease value of an investment upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events so it is also considered to be a highly volatile and fragile market too. Conditions of the Forex market never remain the same they changes every second.
The foreign exchange market dwarfs the combined operations of the New York, London, and Tokyo futures and stock exchanges. According to its size and scope it is many times larger than all other markets. Stats shows that spot transactions and forward outright Forex trading take place in the inter-bank market. 51% of the market is in spot Forex transactions, followed by 32% in currency swap transactions. Forward outright Forex transactions represent another 5% of this daily turnover, with options on ‘interbank’ Forex transactions making up another 8%. Therefore the inter-bank market accounts for 96% of the global foreign exchange market, with the remaining 4% being divided among all the global futures exchanges.
For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular). Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours (forex trading goes on 24 hours a day) and you have the reason why so many stock traders have flocked to day trade currencies.
by Anthony Trister
5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading
With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven’t followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals.
1. Have Faith In Yourself
To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else’s thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.
2. Accept Your Learning Curve
Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don’t say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.
3. Decide What Type of Trader You Are
There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.
4. Get Educated
Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.
5. Continue to Get Educated
In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It’s nice to have an ongoing relationship with the person/people helping you to achieve your goals.
What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.
An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.
by Eddie Yakubovich
From: David Jenyns – The System Design Expert
From: David Jenyns – The System Design Expert
There are hundreds of “trading gurus” who want to sell you get-rich-quick products for big bucks. Maybe you’ve bought a few already.
Some of them work – some of these programs are even great. But where almost all of them fail is in painting a picture of how trading works.
When you understand EXACTLY what it takes to design an excellent trading system, you’ll understand why most people fail to make money trading.
The fact is, I can show you how to be successful trading, but it will take work!
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Inside this amazing manual, here’s just a few things you’ll discover:
- How to quickly and easily get started trading profitability.
- 3 critical components all profitable trading systems must have.
- The secret to mastering your discipline, confidence and psychology.
- How to best enter and exit your trades.
- What tools the professional traders use.
- How to prove your trading systems works, before you trade it.
- How to maximize your profits and minimize your loses.
- How to trade part time but make full time profits.
In short, you’re going to learn how to consistently make more money trading.
Pivot Points in Forex: Mapping your Time Frame
It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade.
Pivot points, a technique developed by floor traders, help us see where the price is relative to previous market action.
As a definition, a pivot point is a turning point or condition. The same applies to the Forex market, the pivot point is a level in which the sentiment of the market changes from “bull” to “bear” or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up, on the other hand, if the market breaks this level down, then the sentiment is bear, and it is expected to continue its way down. Also at this level, the market is expected to have some kind of support/resistance, and if price can’t break the pivot point, a possible bounce from it is plausible.
Pivot points work best on highly liquid markets, like the spot currency market, but they can also be used in other markets as well.
Pivot Points
In a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa.
Why PP work?
They work simply because many individual traders and investors use and trust them, as well as bank and institutional traders. It is known to every trader that the pivot point is an important measure of strength and weakness of any market.
Calculating pivot points
There are several ways to arrive to the Pivot point. The method we found to have the most accurate results is calculated by taking the average of the high, low and close of a previous period (or session).
Pivot point (PP) = (High + Low + Close) / 3
Take for instance the following EUR/USD information from the previous session:
Open: 1.2386
High: 1.2474
Low: 1.2376
Close: 1.2458
The PP would be,
PP = (1.2474 + 1.2376 + 1.2458) / 3 = 1.2439
What does this number tell us?
It simply tells us that if the market is trading above 1.2439, Bulls are winning the battle pushing the prices higher. And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session.
Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white time we should take the open, close, high and low from each session. From our point of view, the times that produce more accurate predictions is taking the open at 00:00 GMT and the close at 23:59 GMT.
Besides the calculation of the PP, there are other support and resistance levels that are calculated taking the PP as a reference.
Support 1 (S1) = (PP * 2) — H
Resistance 1 (R1) = (PP * 2) — L
Support 2 (S2) = PP — (R1 — S1)
Resistance 2 (R2) = PP + (R1 — S1)
Where, H is the High of the previous period and L is the low of the previous period
Continuing with the example above, PP = 1.2439
S1 = (1.2439 * 2) — 1.2474 = 1.2404
R1 = (1.2439 * 2) — 1.2376 = 1.2502
R2 = 1.2439 + (1.2636 — 1.2537) = 1.2537
S2 = 1.2439 — (1.2636 — 1.2537) = 1.2537
These levels are supposed to mark support and resistance levels for the current session.
On the example above, the PP was calculated using information of the previous session (previous day.) This way we could see possible intraday resistance and support levels. But it can also be calculated using the previous weekly or monthly data to determine such levels. By doing so we are able to see the sentiment over longer periods of time. Also we can see possible levels that might offer support and resistance throughout the week or month. Calculating the Pivot point in a weekly or monthly basis is mostly used by long term traders, but it can also be used by short time traders, it gives us a good idea about the longer term trend.
S1, S2, R1 AND R2…? An Objective Alternative
As already stated, the pivot point zone is a well-known technique and it works simply because many traders and investors use and trust it. But what about the other support and resistance zones (S1, S2, R1 and R2,) to forecast a support or resistance level with some mathematical formula is somehow subjective. It is hard to rely on them blindly just because the formula popped out that level. For this reason, we have created an alternative way to map our time frame, simpler but more objective and effective.
We calculate the pivot point as showed before. But our support and resistance levels are drawn in a different way. We take the previous session high and low, and draw those levels on today’s chart. The same is done with the session before the previous session. So, we will have our PP and four more important levels drawn in our chart.
LOPS1, low of the previous session.
HOPS1, high of the previous session.
LOPS2, low of the session before the previous session.
HOPS2, high of the session before the previous session.
PP, pivot point.
These levels will tell us the strength of the market at any given moment. If the market is trading above the PP, then the market is considered in a possible uptrend. If the market is trading above HOPS1 or HOPS2, then the market is in an uptrend, and we only take long positions. If the market is trading below the PP then the market is considered in a possible downtrend. If the market is trading below LOPS1 or LOPS2, then the market is in a downtrend, and we should only consider short trades.
The psychology behind this approach is simple. We know that for some reason the market stopped there from going higher/lower the previous session, or the session before that. We don’t know the reason, and we don’t need to know it. We only know the fact: the market reversed at that level. We also know that traders and investors have memories, they do remember that the price stopped there before, and the odds are that the market reverses from there again (maybe because the same reason, and maybe not) or at least find some support or resistance at these levels.
What is important about his approach is that support and resistance levels are measured objectively; they aren’t just a level derived from a mathematical formula, the price reversed there before so these levels have a higher probability of being effective.
Our mapping method works on both market conditions, when trending and on sideways conditions. In a trending market, it helps us determine the strength of the trend and trade off important levels. On sideways markets it shows us possible reversal levels.
How we use our mapping method?
We at StraightForex (www.straightforex.com) use the mapping method in three different ways: as a trend identification (measure of the strength of the trend), a trading system using important levels with price behavior as a trading signal and to set the risk reward ratio (RR) of any given trade based on where the is the market relative to the previous session.
by Raul Lopez
Way To Managing Losses In Your Forex Trading
One of the cardinal rules of Forex trading is to keep your losses small. With small Forex trading losses, you can outlast those times the market moves against you, and be well positioned for when the trend turns around. The proven method to keeping your losses small is to set your maximum loss before you even open a Forex trading position. The maximum loss is the greatest amount of capital that you are comfortable losing on any one trade. With your maximum loss set as a small percentage of your Forex trading float, a string of losses won`t stop you from trading. Unlike the 95% of Forex traders out there who lose money because they haven`t applied good money management rules to their Forex trading system, you will be far down the road to success with this money management rule.
What happens if you don`t set a maximum loss? Let`s look at an example. If I had a Forex trading float of $1000, and I began trading with $100 a trade, it would be reasonable to experience three losses in a row. This would reduce my Forex trading capital to $700. What do you think those 95% of traders say at this time? They would reason, “Well, I`ve already had three losses in a row. So I`m really due for a win now.”
They would decide they`re going to bet $300 on the next trade because they think they have a higher chance of winning.
If that trader did bet $300 dollars on the next trade because they thought they were going to win, their capital could be reduced to $400 dollars. Their chances of making money now are very slim. They would need to make 150% on their next trade just to break even. If they had set their maximum loss, and stuck to that decision, they would not be in this position.
Here`s a perfect illustration why most people lose money in the Forex trading market. Let`s start out with another $1,000 float, and begin our Forex trading with $250. After only three losses in a row, we`ve lost $750, and our capital has been reduced to $250. Effectively, we must make 300% return on the next trade and that will allow us to break even.
In both of these cases, the reason for failure was because the trader risked too much, and didn`t apply good money management. Remember, the goal here is to keep our losses as small as possible while also making sure that we open a large enough position to capitalize on profits. With your money management rules in place, in your Forex trading system, you will always be able to do this.
by David Jenyns
Why is it that very few traders
Why is it that very few traders succeed in the Forex trading environment while the grand majority of traders fail to achieve success? Although there is no hard answer to this question, there are a few things that will put you one step ahead and will definitely put the odds in your favor.
The main purpose of this article is to guide you through some important aspects of Forex trading. But in a different way, instead of telling you what to do or the best way to do it, it will tell you what to avoid. Sometimes it is better to identify the main drawbacks on a discipline and then isolate them so we have the best results at a certain level of development.
The search for the Holy Grail
Many traders spend years and years trying to find the Holy Grail of trading. That magic indicator or set of indicators, only known by a few traders, that will make them rich in a short period of time.
Fact: Well, there is no magic indicator, nor a set of indicators that will make anyone rich in a short period of time. The main reason of this is because market changes, every single moment is unique. Every Forex trading system will fail from time to time. Our work here is to find a Forex trading system that fits our personality as traders, otherwise the trader will find it hard to follow it.
Looking for Easy Money
Unfortunately most traders are attracted to the Forex market for this reason. Mainly because of the publicity showing or rather trying to show how easy is to trade and make money in the Forex market.
Fact: Yes, it is very easy to trade, anyone can do it. It is as hard as one click. But the second part of it isn’t that easy. Making money or achieving consistent profitable results is hard. It requires lots of education, patience, discipline, commitment, and this list could go to infinite. In a few words, it is possible to have consistent profitable results, but definitely it is not easy.
Looking for Excitement
Some other traders are attracted to the Forex market or any other financial market because they think it is exciting to be a trader.
Fact: Yes, it is very exciting to trade the Forex market. But if this is the main reason you are still trading the Forex market, sooner or later you will discover the most expensive adventure you have ever known. Do some 
on it.
Not Using Money Management.
Most traders forget about this important aspect of trading. They think they shouldn’t be using money management until they achieve consistent profitable results. They totally forget about the risk side of trading.
Fact: Money management allows your profits to increase geometrically, but also limits your risk on every single trade. Money management tells you how much to risk on each trade. Using money management is a must if you want to achieve your trading goals. By using money management you make sure you are going to be able to trade tomorrow, the next week, month and the following years.
Not Being Psychology Tuned
This is one of the most underestimated subjects when it comes to trading. One of the main principles of financial markets is that the price of each instrument is based on the perception of each individual participant “the crowd.” In other words the price of each instrument is determined by the fear, greed, ego and hope of all traders.
Fact: Being aware of all psychological issues that affect the decisions made by traders will definitely put the odds in your favor.
Lack of Education
Education is the base of knowledge on every discipline. As lawyers and doctors require several years of college until they get their degree, Forex traders also require long years of study. It is better to have someone experienced to guide you through your trading, since some information could take you in the wrong path.
Fact: The market teaches us invaluable lessons on every single trade made. The process of education for a Forex trader could take for ever. That’s right, we never stop learning. We should be humble about the markets and our knowledge; otherwise the market will prove us wrong.
These are some of the most important barriers every trader faces when trying to trade successfully.
Trading successfully the Forex markets is no easy task, it requires a lot of hard work to do it right, but with the right education, you will put yourself closer to your trading goals.
by Raul Lopez