Forex Secret - Forex Literature As A 90-95% Of The Traders Loose Their Deposit (Part I)

This delusion globally entails identical aftermaths: 90-95% of traders turn steady to loose their deposits having studied books by Bill Williams, Alexander Elder, Thomas Demark, J. Schwager, et al.

Following the burn down of their first deposit trader’s plunge themselves again into scrutinizing Forex scholars, in this manner suffering losses of the second, the third and subsequent deposit. I will hereinafter try to elucidate where from the above regularity grows, so that no trader repeats his forerunners’ mistakes.

This statistics is common knowledge: 90% of traders constitute Forex losers… But the figure has always been giving rise to a leviathan of my doubts. It isn’t because of somewhat different 95%-5% loser-to-winner ratio quoted in the Van Tarp and Brian June “Intraday trading: secrets of mastership”. With 90% quoted universally, there naturally emerges the question, as to whether there is someone capable to check, to specify or to disprove the above figure.
NO ONE IS, besides the directors of largest Western banks providing streamline Forex quotes, but having never raised the issue.

WHY? Because should this statistics be published, there will be sharp and ultimate decline in number of those chasing easy profits from the world Forex market. Otherwise banks would not keep mum in advertising purposes. Neither would they be silent if losers constituted at least by few points less than 90%. In any advertising, customer attraction is ensured by quoting beneficial maxima and non-lucrative minima. This has always been, is being and will always be a universal practice.

As a conclusion, 10% Forex winners is a maximum result among traders. It’s them, who have understood Forex market absolutely simple truisms and who attained steady daily earnings in amounts being gained by others within years or even the whole of life.
Certainly, those are to be recollected, who in late 80s were the first in the ex-USSR to grasp laws of commerce and who began accumulating their initial stock. The rules used to be so simple that presently any schoolboy or a first-year student can show the way the capital might have been easily scraped up and augmented on the USSR debris and in the course of market relations being established in the post-Soviet space.

I do exactly allow for the fact that through the years a new generation will be laughing at the way we are now incapable to comprehend the laws, where under currency rates either spike up or fall down, all of a sudden.

With this provision, those seeking fast money at Forex have a much greater time limit than the ones engaged in capital building in the post-Soviet space (Forex market is incommensurably greater than that in the ex-USSR), but not to the extent thought by many.

By now trends are thoroughly less numerous than they used to be 10-20 years ago. By way of taking a glance the charts history You are in the position to understand the way traders used to earn under 20- 40 pts spread, commission and slippage. A trend was followed by a trend at that epoch.

AND WHAT’S NOW? Nowadays many of traders are impotent to gain under 3 pts spread without commission and slippage.

Thus, this book is intended for those willing to perceive Forex market laws.
In order to get understanding of the way 5-10% of successful traders obtain profits, let’s at the outset analyze the reasons and the way the outstanding 90% of traders suffer losses. The 90%-figure looks scaring, to say nothing of 95% or 98%. It occurs despite the amount of literature on the issue equals to hundreds of fundamental books, written by authors, having gained capitals expressed by means of more than 7-digit figures (G. Soros, B. Williams, A. Elder, T. Demark).

Thus, the above minimum of 90% of smart, well-read, broad-knowledged people:

- scrutinize the really great traders’ heritage;

- open accounts with Forex Broker's and banks, start trading and…

- loose funds up to complete rout!

AND WHERE’S THE LOGIC? The answer springs to mind by itself... There’s something wrong in the literature (by the way, recognized throughout the world, where the deposit-killing statistics is as disappointing as it is in our country) so long as its studying yields such oppressive results.

STRANGE? No, rather natural, than strange on account of the following:

1. Being a great trader is not indicative of everyone being a great teacher.

2. Multitude of rules elaborated by scholars 10-40 years ago, has grown obsolete, since the Forex market is changing.

3. The scholars HAVE NOT revealed ALL the secrets even WITHIN THE FRAMEWORK OF THE THEN

FOREX, therefore by now their advice and recommendation turn out either obsolete or naïve.

Thus, once one’s advice and recommendations bring every 9 of 10 market participants to loose their money in each country, where one’s books have used to be published and have enjoyed all sorts of hosanna in the press, THEN ONE IS NONE OF A TEACHER.

Naturally, no trader will reveal his professional secrets to the full. But when studying Forex literature one gets astonished by a negligible extent the above secrets are “confided” at all, with a book on Forex containing 99% of common truth and 1% only of useful novelties. But should one train up even several thousands perspective traders, one will in no way burden oneself with competitors, due to the Forex market huge sale nature. Beyond a shadow of a doubt the above traders are really great. You may agree or not, but anyone, having earned USD1 bn or more, deserves being named “great”. So, one’s books should be published as memoirs. I am not attaching any irony hereto, since these persons have acquired gains by virtue of their minds and labor, as opposite to Rockfellers, who inherited their fortunes or to Russian oligarchs, who either stole or got their capitals dirt-cheap from state authorities.

Hopefully, understandable is the difference between such editions and manuals for beginners.

G. Kasparov, say, is far from writing manuals for chess beginners, since the job can be better completed by others with this fact not at all undermining Kasparov’s being a great chess player. And his advice and recommendation is sure to be of interest rather to a close circle of grand masters, than to those having touched the chess for the first time.

Actually Kasparov is but to be respected for not being tempted by the lust for fast money, by virtue of his name in the chess world and by way of cooking up manuals for beginners.

At Forex, by contrast, and for some reason, everyone deems oneself a teacher, which fact results in millions educated people worldwide leaving stock market being disappointed, angry with an inferiority complex life-time pursuit.

And hence, the unanswered question for them: is that all a fraud or not, since gains are midget, whereas losses are titanic?

I am recalling the book titled “The Alchemy of Finance” by G. Soros (the one I’ve read in early 90-s). I admit, it’s interesting, instructive…, but it is all narrated in so an inarticulate and tangled manner. As indicated in the foreword by an American investor, the theory has hardly been understood by few only.

So what’s the use of writing in such a manner? A theory may generally be complicated to any extent, BUT IT MUST BE wrapped in a simple, clear and understandable wording.
You are welcome to attempt to read the above book once You have time to. Shortly, the Soros reflexivity theory of the countries’ cyclic development may easily bear a couple-sentence confinement:

1. Following liberation from totalitarian yoke, a country is granted credits, then, there is a rapid growth and flourish of economy.

2. As soon as the above credits are to be paid back, a country’s economy faces a natural recession.

Is it as difficult? The question may be addressed to a schoolboy (to say nothing of an American investor): when should those countries’ companies’ shares be purchased and when they are to be advantageously sold in order to acquire maximum profit? What’s going to happen in case one is too late to sell the shares, shortly exhibiting an impetuous growth in price?

Propounded long before, the Soros theory has been entirely corroborated in August, 98 by the dismal practice established in Asian and Pacific countries and later in Russia.

There still is another question: how inarticulate should Soros have been to enable his theory to be grasped by few only?

The second part of the book is not worth retelling. Reading its original is sure to be much more instructive with my annotation leaving no conundrums therein.

The theory is permeated by Soros’s strategy: enter long on what’s shortly going to enjoy price growth with a 100% probability and “pull out” Your money along with profits before the companies enter crisis, thus facilitating bankruptcies thereof.
This is the way I clearly lecture my students on Forex-related complexities, thus conveying my logics to them. Despite its own complexities (news, TA, corrective actions, etc.), Forex is essentially reduced to a very simple truth: at a certain moment one should not be late with going long or short on a currency with “tertium non datum”.

And when asked if the Williams Alligator needs something to be added thereto, the majority of my students reply ”Yes!”, indicating what exactly is to be added.
I’ll present a detailed vivisection of the issue in a separate chapter by way of proving that the Williams Alligator is but 50% effective.

Fig. 4. H1 EUR chart as of April 12, 2005. (See Note below)

The Alligator’s jaws display upward opening with a fractal formed at 1.3006. According to Williams, one should enter long one point higher, i.e. at 1.3007. Upward motion continues extra 11 points. Then the rate sharply swivels to fall down by 170 pts.
Another example.

Fig. 5. H1 EUR chart as of April 22, 2005. (See Note below)

Please, figure out 1.3094, 16 pts above the previous fractal, following the Alligator upward opening. Thereafter, a sharp down swivel covering 140 pts.
Hundreds of similar examples may be drawn. But what are the implications?

With the Alligator’s mouth opened, 50% of entries should be pro-Williams while the outstanding 50% - counter-Williams (i.e. vectored opposite to the Alligator mouth opening). When embarking on Forex, You must possess clear knowledge of the difference between either of the above 50%-portions. Otherwise…, You are doomed to loose even if You follow Williams’s technique, let alone other ones.

Even my students are in the position to advise what is to be added to Alligator in order to realize proper entry vectoring. Least of all would I want this example to be taken as a personal criticism of Bill Williams, whose contribution to the Forex theory is a significant one. And the majority of traders, like me, used to begin earning after studying HIS books. But not to go astray…, even without any addenda Williams managed to make a tremendous fortune, since a skilled trader (moreover being the Alligator’s father) is capable to differentiate between a steady travel and a pullback, or, say, a flat, or, visa versa, a trend low for the entry to be vectored oppositely. It is all fairly understandable for an experienced trader. But what about beginners as regards their interpretation of a flat, a recovery or a trend change?

These folks are sure to require assistance, especially, in information not presented in literature on Forex.

Without this knowledge a trader will never perceive the ABCs of stable daily earnings. But why the Forex scholars do not clear out the issue? This query is to be addressed to them, not to me. While reading these opuses, I am getting horrified at the fact that we are being foisted expensive high-sounding titled books, which are not going to ever teach a trader how to attain profits at the market.

Let’s open one of them (E. Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: Secret Files”) to get the understanding of the way almost all the books on Forex are written and supposed to have the price of USD20-100.

You may agree or not, but the name looks very beautiful and pretentious: “Master-trading: Secret Files”, 320 pages of sheer secrets…

HOWEVER, I HAVEN’T FOUND ANY SECRETS THERE! You are welcome to discuss an argue Yourself:

1. “The interrelation between fundamental factors and exchange rate dynamics” being a detailed story of how a country’s macroeconomic growing, benign rumors trading and political stability promote the exchange rate growth.

A “valuable” secret to be practically encountered in any Forex edition. But below is a real FA secret (not paid any attention to by Nayman): why does currency use to reverse against its country’s economic news? A whole chapter here will be dedicated to the issue.

2. “Construction of two moving averages on a single chart and twin combinations thereof”. The author furnishes a “wise” recommendation: entries should be made in the direction the MAs diverge (adding secretly that the most effective MA combination is 21, 55, 89, etc., as per Fibonacci).

The pseudo-secret nature of the above recommendation underlies the fact that any MA combination (should it be 21+55, as the author’s; 10+20 as in many Western trading systems; 5+8+13 as per B. Williams or 1+21 as used by numerous traders) yields the same results.

Ok. It all looks great. However, E. Nayman et al., seem to have circumvented the MA intersection chief secret, through which traders suffer constant losses: a “lighter” MA has crossed a “heavier” one, say, upwards, but… thereafter there is sharp downturn resulting in the MAs intersection again.

Fig. 6. GBPUSD H1 chart as of April, 21-26, 2005. (See Note below)

A fivefold reciprocating crossing of MA 21 and 55. You are welcome to calculate traders’ losses.

Now, let’s call it a day with examples. The MA intersection technique operates perfectly in certain circumstances, while turning out impotent in others, thus inflicting losses upon traders. No criteria have ever been stipulated by Forex scholars as to entries to be effected pro- or counter-divergence of moving averages.

3. MACD construction and analysis. What sort of secret may one expect from the following statement of Nayman’s: “a subsequent high being lower than the preceding one suggests a bullish trend depletion or even its changing with the same being visa versa under minimum MACD values”. Much of a secret, isn’t it? I thought it were the MACD operation principle, familiar to any Forex novice. The secret-fancier B. Williams hasn’t even taken effort to advise to perform inputs change from 9, 12, 26 into 5, 34, 5 to provide for a lag killer.

Assuming the above, authentic MACD secrets are not paid any attention to by scholar, which fact inflicts losses upon traders. The situation comes into effect, when upon a divergence formation, no trend change is observed with another same-trend wave taking place instead.

Fig. 7. GBPUSD H1 chart as of April, 2005, where MA21 crosses MA55 with slight rise and sharp downturn. (See Note below)

Another example:

Fig. 8. GBPUSD H1 chart as of May, 2005: a divergence with MA10 upward crossing MA21; a brief nudge up to 1.8916 and a sharp downturn. (See Note below)

As different from Nayman and other Forex scholars, we’ll touch in detail upon the ways to detect when MACD is trustworthy as a trend reversal attribute and when it is not.

4. TA classical patterns. One can not help smiling at the author sharing a secret of “head’n’shoulders” and “double bottom” patterns, being studied by beginners at the earliest lectures on Forex.

And here goes a real key secret: in what cases the patterns are indeed indicative of a reversal but in what cases brokers trap TA pattern-fanciers? Is there someone doubting the fact that patterns are known not only to traders, but as well to brokers with their mouths watering to make a rod for the backs of lovers and connoisseurs of the above patterns, just like on the sample chart below:

Fig. 9. GBPUSD H1 chart as of May, 09-11, 2005, a classical “inverted H&S” (See Note below)

At 1.8871 there’s an impetuous upward breakthrough, the Alligator rotating upwards, MACD above zero, MA8 having intersected MA21 upwards, the Williams vaunted Awesome Oscillator signaling long entry, the Accelerator Oscillator pointing up… nevertheless, the rate reaches as far as 1.8916 and slips down to 1.8481 by 450 pts.

To be noted: much worth scrutinizing is the phenomenon of Nayman’s “Trader’s Minor Encyclopedia” and “Master-trading: secret files” purported at understanding why over 90% of traders turn losers after reading the books.

The solution, to my mind, is that the above opuses are but good “ABCs OF FOREX” thus giving birth to all Nayman’s merits and demerits.

The guy is primarily awardable for having spared beginners’ paying USD50-200 to various Forex training courses or academies. Instead, one can download and study Nayman’s books, whose extracts are, by the way, quoted to trainees during their studies.
Nayman is generally to be expressed gratitude to, because of his having laid out the Forex basic course in a competent, popular and accessible way.

This is the point, I elucidate to every beginner, being introduced to me: first one should scrutinize Nayman’s books, then only it’s worth discussing hooks and crooks of earning at Forex instead of loosing.

Nevertheless, there is a chief Nayman’s self-delusion about his folios really being in no way secret files with no one being able to find anything new to enable oneself to improve one’s Forex earnings. These books containing neither unique techniques nor non-standard solutions are famous for the generalization and systematization of what has been the Forex knowledge prior to Nayman.

But this fact is not realized by majority gripped by the “Master-trading: Secret Files” fascination, who open live accounts and turn losers inevitably.

Shortly upon their pre-mature success on demo accounts these folks hastened to open live accounts and faced losses. But since the Dealers’ staff managed to convince them in the incidental nature of the above losses, the folks ventured to go live again and did again turn to be deposit killers.

With these facts being proclaimed, I don’t hold it appropriate to call any statistics science for help. Any sensible man is to get the understanding of the above losses as not being of an incidental nature.

There could be NO OTHER WAY about it.

The next trader training level comprises books by B. Williams: “Trading Chaos” and “New aspects of exchange trading”, where the author propounds his own Forex trading methods along with advertising the other ones’, viz. Elliott’s.

My book, “Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders” is purported at developing of THAT particular school of training traders to practical operation at Forex.

Hardly will anyone object to the fact that B. Williams will disclose his Forex intimacies free of charge. Neither will he furnish their 100% disclosure after being paid to.

In all his splendor, Williams possessed sufficient knowledge to;

- to share A PORTION of his secrets in his “Trading Chaos”;

- to share A PORTION of his secrets as a paid training;

- not to share A PORTION of his secrets in the least.

My book, “Secrets Of Craftsmanship Narrated By Professional Trader Or What B. Williams and E. Nayman Have Concealed From Traders” is also dedicated to teaching how the Williams secret methods are to be decoded properly to ensure successful Forex trading capabilities.
Each of my book’s 20 chapters is permeated with a common logic aimed at finding relevant discrepancies in literature on Forex and at presenting my personal technique of Forex trading.

B. Williams declares being capable of analyzing tens of currency pairs (of 140-bar history each) that within tens of minutes, but in no way does he explain how to, whereas, I explain, that it’s feasible for any wide-screen trader, provided my computer monitor being 3-currency capable only (see: “Ally and adversary currencies”).

B. Williams sings about his magic Alligator, while I disclose and eliminate its pitfalls by, say, adding a MA233 thereto. This arrangement visualizes the whole of the 4 potential currency travel options: up/down above MA233; up/down under MA233.

B. Williams lists a stop-loss to be a “safety cushion”, whereas I disclose and eliminate its shortcomings by way of alternatively using my own pending orders.

B. Williams hold trades volume to be authentic resistance breakthrough criterion, while I quote reasons by which trades volume turns to be deceptive on Metatrader platforms (thanks to the banks Consortium) and I introduce my own levels true/false breach criteria.
Now, regarding trading on news, I demonstrate the way one can turn a loser if trade like all the others and I offer my own on-news trading style.

(See continuation of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part II)

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V - one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Vyacheslav Vasilevich (Masterforex-V)
Professional Trader from 2000 year.
President of Masterforex-V Trading Academy.
Author of Books:
1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.
2. Technical analyses in Trading System MasterForex-V.
3. Entry and Exit Points at Forex Market
http://www.masterforex-v.su
http://www.masterforex-v.org

Getting Started In Forex - The Proven Best Strategy For Getting Started In Forex

The proven strategy for getting started in Forex trading - thousands of people every year get started in Forex trading. Thousands of people new to Forex trading every year make critical mistakes because they've cut corners and not followed the best strategy for getting started in Forex. This article will discuss the best proven strategy for getting started in Forex - what you need to do and what you have to know. Keep reading to get a FREE Forex trading lesson plus access to a $100,000.00 Forex demo account to get you getting started in Forex.

Getting Started in Forex Strategy One - when you are getting started in Forex trading it's important to a realistic Forex trading strategy. To do this you need to know (and stick to how much money you are willing to risk.

Getting Started in Forex Strategy Two - when you are getting started in Forex trading it's important to choose the best Forex trader. It is an ABSOLUTE MUST that your Forex broker is registered with the Commodity Futures Trading Commission.

Getting Started in Forex Strategy Three - when you are getting started in Forex trading be sure to have access to the most up to date and most important Forex tools to help you getting started in Forex. Various brokers have access to various tools. Only choose a Forex broker that has the best and most up to date Forex tools at his fingertips. The more access to Forex information that he has the better your chance at winning Forex trades.

Getting Started In Forex Strategy Four - getting started in Forex trading involves learning two different ways of Forex trading (technical and fundamental) and becoming as efficient as you possible can in the Forex trading strategy that works best for you.

Getting Started In Forex Strategy Five - when getting started in Forex trading it's absolutely critical that you build a solid Forex foundation with a comprehensive understanding of the basic building blocks. Taking shortcuts here is not an option and will only result in Forex losses.

Getting Started In Forex Strategy Six - every Forex trader, even ones not getting started in Forex trading, should have a reasonable understanding of interest rates, international trade and the economy in order to predict movements in the current market.

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Why Choose Forex Trading Over Stocks Trading

Forex trading holds significant differences to stocks trading. Understanding these differences will aid a trader in deciding the right market to enter. Forex trading itself has several advantages over stocks trading and is ideal for the beginner and individual small investors.

1. Low Transaction Costs for Forex Trading.

There are no hidden fees for forex brokers as they are not paid by the traditional commission based fees. The fee paid to the forex broker is calculated directly from the trade in the form of the bid ask spread. In forex trading, the spread is the difference in how much you pay for a currency and how much you sell it for. This spread is commonly expressed in "pips" or points.

2. Forex Trading is a 24 Hour Market.

Forex trading can be done anytime of the day, the forex market is open for business twenty-four hours a day. This is considered a huge advantage for individual small investors who are just starting out forex trading in their spare time. This allows forex traders to juggle their schedule around their trading opportunities; they can schedule their forex trading when it is convenient for them.

For those of you who are night owls and prefer to trade at 1am, then forex trading is just right for you. Depending on where you stay, there are banks opposite the globe open for you to trade.

3. Fast Trade Execution and High Liquidity in Forex Trading

Trading forex means that you are trading in cash. No other form of investment has more liquidity than cash and as such, trades are executed almost instantly. There is no lag time in forex trading.

4. Having Leverage and Margin in Forex Trading

One of the significant advantages that forex traders have is the ability to trade on margin. This gives them a huge leverage in their trading and presents the potential for extraordinary profits with relative small investments. Let’s take for example; with a forex broker that allows a margin of 100:1, you can buy $100,000 in currency with only a small $1,000 deposit. A word of caution for the uninitiated, leverage can go both ways and may lead to large losses if you are not careful.

5. Forex Trading Requires Only a Small Sample to Study.

Stocks trading present thousands upon thousands of stocks to trade. Small and large companies, international companies, newly issued IPOs etc. It is highly impossible to follow them all.

Forex trading, on the other hand, presents only seven major currencies to follow so that you can devote more time to each of them. Many successful forex traders do not even trade in all seven major currencies; they just choose three or four and master them to achieve success in forex trading.

6. No Bear Markets in Forex Trading.

In forex trading, since you can trade either short or long, you will be able to make money whether the prices go up or down, that is if your predictions are accurate of course.

7. Forex Market is Not Easily Influenced.

The forex market is so amazingly huge that no one individual, bank, fund or government body can influence it for a long period of time. Forex trading is the opposite of stocks trading where one negative television appraisal of a company's stock could possibly send it into a tailspin.

Based on the above advantages, forex trading is a clear winner for the beginner and individual small investors. If you are deciding on a form of trading to enter and master, then forex trading is the choice for you.

Your FOREX Trading Philosophy

You could raise your risk to $1,500 per transaction.

"Easy money" is the allure that captivates many beginning FOREX traders. Money Management Money management is an integral part of any trading strategy. Risk in a third position should be limited to $800. You do this with a stop loss order 100 pips (1 pip = $10) above or below your entry position. Each group has its own objectives, but 1 thing all groups except traders have in common is external control.

After $5,000 profit, your core equity is now $15,000. Understanding Market Movements To make rational trading decisions, the FOREX trader must be well educated in market movements. FOREX websites offer "risk-free" trading, "high returns", "low investment. Every organization has rules and guidelines for trading currencies and can be held accountable for their trading decisions. With a starting balance of $10,000 and 1 open position, your core equity is $9000.

The first step in becoming a successful FOREX trader is to understand the market and the forces behind it. As your core equity rises or falls, adjust the dollar amount of your risk. Alternatively, you could risk more from the profit than from the original starting balance. " These claims have a grain of truth in them, but the reality of FOREX is a bit more complex. FOREX traders must have a rational trading strategy and not make trading decisions in the heat of the moment.

He must take advantage of the various types of orders to minimize his risk and maximize his profit. Watching the movements of EUR/USD for example, you may feel that you are letting an opportunity pass you by if you don't enter the market immediately. He must be able to apply technical studies to charts and plot out entry and exit points. These are the kinds of strategic tactics that allow a beginner to get a foothold on profitable trading in FOREX. You buy and watch the market move against you.

You panic and sell, only to see the market recover. If you wish to add a second open position, your core equity would fall to $8000 and you should limit your risk to $900. Large organizations and educated traders approach the FOREX with strategies, and if you hope to succeed as a FOREX trader you must follow suit. After opening a FOREX account it may be tempting to dive right in and start trading.

Greater Profit, Greater Risk You should also raise your risk level as your core equity rises. Some traders may risk up to 5% against their realized profits ($5,000 on a $100,000 lot) for greater profit potential. There are various strategies for money management. Many rely on the calculation of core equity -- your starting balance minus the money used in open positions. This means that if you are trading a standard FOREX lot of $100,000 you should limit your risk to $1,000 to $3,000.

Accountability There are 5 major groups of investors who participate in FOREX: governments, banks, corporations, investment funds, and traders. Besides knowing which currencies to trade and how to recognize entry and exit signals, the successful trader has to manage his resources and integrate money management into his trading plan. Mistakes Of The Beginning Trader There are 2 common mistakes that many beginner traders make: trading without a strategy and letting emotions rule their decisions. Who trades FOREX and why? This will allow you to identify successful trading strategies and use them. Individual traders, on the other hand, are accountable only to themselves.

This kind of undisciplined approach to FOREX is guaranteed to lose money. Core Equity And Limited Risk When entering a position try to limit your risk to 1% to 3% of each trade.

Your Guide To Successful Forex Trading

In the past, the forex inter-bank market was not available to small speculators because of the large minimum transaction sizes and strict financial requirements.

Therefore, it is reasonable for you to believe that the FOREX market is active 24 hours a day and dealers at major institutions are working 24/7 in three different shifts. S. If you think one currency will appreciate against another, you may exchange that second currency for the first one and be able to stay in it. When you compare them, you will see that the currency futures market is only one per cent as big. It is also called the foreign exchange market, FX market for short.

The currency market is the largest and oldest financial market in the world. The fact is that the FOREX market never stops, even on September 11, 2001 you could still get your hands on two-side quotes on currencies. The currencies of the world are on a floating exchange rate, and they are always traded in pairs Euro/Dollar, Dollar/Yen, etc. It is the biggest and most liquid market in the world, and it is traded mostly through the 24 hour-a-day inter-bank currency market. They are: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc.

Banks, major currency dealers and sometimes even very large speculator were the principal dealers. Today, foreign exchange market brokers are able to break down the larger sized inter-bank units, and offer small traders like you and me the opportunity to buy or sell any number of these smaller units. Clients may place take-profit and stop-loss orders with brokers for overnight execution. It is truly a full circle trading game. Right now I will show you how they look in the trading market: EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

As a note you should know that no dividends are paid on currencies. Transactions on the FOREX market are performed by dealers at major banks or FOREX brokerage companies. Unlike the futures and stock markets, trading currencies is not centered on an exchange. Four major currency pairs are usually used for investment purposes. S.

Trading moves from major banking centers of the U. The daily turnover on the FOREX market is somewhere around $1. These brokers give any size trader, including individual speculators or smaller companies, the option to trade at the same rates and price movements as the big players who once dominated the market. To Australia and New Zealand, to the Far East, to Europe and finally back to the U. Price movements on the FOREX market are very smooth and without the gaps that you face almost every morning on the stock market.

FOREX is a necessary part of the world wide market, so when you are sleeping in the comfort of your bed, the dealers in Europe are trading currencies with their Japanese counterparts. About 85 percent of all daily transactions involve trading of the major currencies. 2 trillion, so a new investor can enter and exit positions without any problems. If you were wondering; forex trading is nothing more than direct access trading of different types of foreign currencies.

Only they were able to take advantage of the currency market's fantastic liquidity and strong trending nature of many of the world's primary currency exchange rates. In the past, foreign exchange trading was mostly limited to large banks and institutional traders however; recent technological advancements have made it so that small traders can also take advantage of the many benefits of forex trading just by using the various online trading platforms to trade. In case everything goes as you plan it, eventually you may be able to make the opposite deal in that you may exchange this first currency back for that other and then collect profits from it.

Best Online Trading Videos

The reasom many beginner traders fail is because they tend to put the cart before the horse rather than having it the other way round. In this case i am talking about thinking trading profits without education...

Those of you with such preception of trading are the ones who will end up as prey to the snake oil salesmen who peddle all kinds of blackbox trading kits and will have you buy them. Do yourself a favour and stop reading those professionally written sales pages that promise to give you a syatem that can make you $1000 daily on autopilot...ohh and lest i forget this will only cost you $49.97 with a 60 day money back guarantee that you really don't know how to pursue...that sucks big time.

I have walked that road and believe that we don't all need to make the same mistake at all. If you really and truly think financial trading is a fly by night money making venture i encourage you to start preparing your CV and save yourself a lot of heart break. People who sell you systems and methods in a box that does not require you to do anything are just selling you rubbish. Some of you might argue that these systems make money but the true question there is really for how long can such a system stay productive?

Such systems might make you $100 today and loose you $1000 tomorrow, so where is the consistency? A winning trading method must have consistency and money management. And how do you get such method? Sorry to disappoint you but you are going to have to learn it. Trust me its the best gift you can ever give yourself. Keep your $49.97 and dont even look at those money making forex and stock trading kits been sold.

I am able to make money from trading the market from following these steps:

1. Get basic education the market i want to trade.(this can be in form of books and online seminars)

2. As i learn i practice on a virtual account for clearer picture and a feel of the market.

3. I subscribe to financial news from reputable trading sites for example CNBC

4. I read materials from succesful traders (proven successful traders not the ones who show me pictures of yacths and houses on a website)

5. Build a method and stick to it (discipline is important)

You can change your life from trading the market but first you must get the education you really and truly deserve.

For online seminars from top traders and to watch videos where trading tips and skills are discussed check out INO TV

A Profitable Forex Strategy

Given a bit of education and knowledge of the market, it can become quite easy to profit in the forex market.

When the market comes back in my favor, those losing trades are making profit every step of the way. If the market moves 200 points no problem. Making money in the forex market is not an easy task by any means. If you don't know what a stop-loss is, it's simply an order telling the broker when you would like to cut your losses. How is this so? How can I make money without using a stop-loss? I tend to believe that the big players in the forex market like to drive this market in certain directions to take out other traders stop-loss positions.

Through your forex training you might have heard traders tell you to always trade with a stop-loss. The trading method I am going to explain here is probably going to upset you a little and will most likely go against everything you have ever been taught about forex. If the market continues to get away from me, I continue trading each day gaining which eventually compensates for the few losers and eventually overrides them. I only risk one tenth of my account balance per trade. Over analyzing and over thinking can sometimes affect your trading methods and strategy.

However, you have to remember that this is my personal strategy and its how I make money. Your next question might be, how do I know when to enter and exit the market? I use a set of indicators combine with a detailed analysis of trend lines and channels. For example, I only trade $1 lots on a $10,000 account. Having a good idea of where the market is heading over the course of a few years gives me a good idea whether I am in buy mode or sell mode on a daily basis. The indicators tell me when to get in and get out and the trend lines give me the overall direction of the market for the next month to few years.

Most traders end up learning that it's the simply systems that create the wealth. I don't trade with a stop-loss period. What this enables me to do is use no stop-loss. In some cases this is known as scalping the market.

On each trade I am only looking to get 3 to maybe 6 pips or as I like to say, get in and get out. I don't allow the banks to do this to me personally. How is it possible to survive without using a stop-loss? Very simply put, do not risk large amounts on each trade. Secondly, on each trade look to make only a few pips. It may not work for the next person, but it has shown me a way to make a substantial amount of money in the forex market.

By the time the market moves 200 points, I've already made 100 other trades in profit all for 3 to 6 pips each. In order for the banks to make money, they have to take other traders monies, therefore taking out stop-loss orders in the market.