Is It Easy To Start Forex Trading?
November 30, 2009 by Forex Guide
Filed under Forex for Beginners
If there is one sure thing in this world it has to be that forex trading is much more difficult than it seems. In reality, when you trade currencies, you are in effect buy or selling one currency against the other. This means that in essence there are only two possibilities. Price will go up or price will go down. In theory it is a 50-50 call.
Why is it then, that as higher percent as 95% of all forex traders lose money?
Perhaps it has something to do with the way price moves. You see price can only go up or down and that is a fact. But it can make long or short staccato movements. It may go up just a few pips and then down just a few. This should not really matter to the trader at first glance, but when you add in the fact that most traders, and especially those in the 95% category, are using very high levels of leverage, then those small movements in price are actually quite large from the traders’ perspective.
Understanding leverage is quite complex but here is a simplified view:
When you trade currencies in standard lots you are in fact contracting to buy or sell in multiples of $100,000 worth of currency. Each $100,000 is 1 regular or standard lot.
Because of the leveraged nature of retail trading, you will never need to put up $100, 000 to finance the transaction because you will secure the transaction with a proportion of your money based upon how much leverage you are using.
Leverage is in essence the amount of money you are contracting to buy or sell verses the amount of money you are actually using to secure the transaction (margin).
For example, if you buy or sell 1 standard lot at leverage of 100:1 you are contracting to buy or sell $100,000 worth of currency but you are only using $1000 of margin to secure this transaction.
What this means in real trading terms is that the higher the leverage, the greater the return on a small movement of price in your favour but also the greater the risk should price move against you.
It is very usual for retail traders to use a leverage of 100:1 but as your account grows ($100,000 or more) a lower leverage would give you and your account greater protection. On a standard lot trade of 1 lot at leverage of 100:1 for each price movement of 1 pip you would gain or lose $10. At a leverage of 200:1 you would gain or lose $20 for each 1 pip change in price and so on.
This means that although on the winning side your profits grow much more quickly, your stop loss requirement (financially) would be twice as high – your risk is twice as high.
Some brokerages offer as much as 250 or even as high as 400 to 1 leverage, but my advice would be to never use leverage greater than 100:1. And to reduce that level as soon as possible.
Most professional account managers would never use leverage in excess of 20:1. If you are trading mini lots (0.1) then all of the figures above would be divided by 10. If you are trading micro lots (0.01) then all of the figures above would be divided by 100.
So as you can clearly see, it is in some large part, the amount of leverage employed by the trader that makes trading more difficult. So why use leverage at all?
If you had at your disposal a vast amount of money that you were free to speculate with, such as is the case with some famous investors such as George Soros and Warren Buffett, then of course a great deal of money could be made or lost with a relative low element of risk by being what is known as a “real money” Investor. That is to say a trader that speculates on buying one currency against another without any leverage at all.
Unfortunately, the vast majority of traders do not have such deep pockets, and so the only way that they can trade the currency markets is by leveraging their money and taking on board increased risk.
Taking on more risk is to some extent an acceptable strategy, so long as you both understand the nature of the risk, and so long as you have a money management strategy.
If you end up taking the risk, without understanding that risk and making suitable preparations to manage that risk, then you are most likely to end up being one of the 95% of those traders who lose money.
To help you to trade more effectively, click the links below for more information:
Forex Trading Systems, Forex Systems, Forex Trading
Forex G-Force
November 30, 2009 by Forex Guide
Filed under Forex Systems
Develop your own Forex Robot Portfolio risk free in 60 days and reach a million in 1 year starting with only $1,000. Discover a Forex Trading System with an ROI of 2956.16% per month. Try these 1500 pips a day Forex Signals. I’ll try to make this short and to the point …but please ensure that you read it carefully as I promise you’re in for the ride of your life. You’ve probably been hearing about the Forex G-Force robot which is about to launch. Simple and to the point…one of 2009′s best FX robots and, believe me, it’ll be a hit for quite some time to come. The robot is one of the first of its kind – a robot that’s been adapted to the new market reality.
As many traders know, the markets have changed dramatically since mid-2008… you only need to compare the daily ranges before and after mid-2008 and you’ll understand what I mean. What worked before September 2008, probably doesn’t work today… BUT, those who use robots and strategies that are adapted to TODAY’S new market reality are almost guaranteed success. Now… I want you to pay close attention:
It’s a FACT that markets change in a dramatic way in terms of range and volatility every 10 years or so. This important market behavior change occurred in 2008 and, trust me on this, it’ll last for several years to come… and those using strategies that are adapted to this new market change will PROFJT day-in and day-out. Forex G-Force is about to lead this new move from “old” market to “new” market behavior and those who get onboard this incredible ride will be the lucky ones.
Now, I know that you want to know a lot more about this new FX robot so all I ask is that you wait until tomorrow when it launches. You won’t regret it – MY PROMISE……and yes, the rumor is CORRECT, it’ll launch and be available on the market for just THREE days! Having seen what Forex G-Force does and how it trades, I can tell you that it isn’t just a VERY accurate and profitable robot but…it’s a robot that exploits what most other robots today don’t… big
market swings!
Big market swings are a part of today’s market reality and you can make A LOT of money from them if you use the right strategy. Forex G-Force does this like no other robot can. Tomorrow, for just 3 days, you’ll have the chance to witness how well it does what other robots fail miserably at… and, most importantly, WHY! Forex G-Force is one of the best, if not THE best, robot for capturing mid- to large-scale moves in the FX market.
Now, many traders are what I call “diversified” traders.. in other words, they trade scalping and swing trading robots on the same account. Forex G-Force is now live. It took over 7 years to develop, but the wait is finally over. G-Force has already turned $10,000 into a staggering $2,746,531- in just 10 months. And its not only insanely profitable, its easy to use too.
Combining FX Trading With Gold Trading
November 30, 2009 by Forex Guide
Filed under Forex Trading
Get these free Forex Scalping cheatsheets just now. Learn Candlestick Charting.Combining forex trading with gold trading can be highly lucrative. If you have been following gold prices, you must know Try these 1500 pips a day Forex Signals from heaven. that gold prices have reached their historical peak in the recent times. Gold prices recently broke the historical barrier of $1,000 per ounce and now hovering around $ 1,150 per ounce. Market is anticipating a US Dollar depreciation.
Whenever, the markets become jittery, investors start buying gold as a hedge against the US Dollar. Last year, after the stock market crash, many investors started investing in gold as a safe haven against the turmoil in the financial markets. Gold and US Dollar have an inverse correlation relationship.
Gold and US Dollar are almost near perfect mirror image of each other. US Dollar depreciation during the global financial uncertainty has been the primary reason for the gold appreciation as it is viewed as the ultimate form of money. Gold is also seen as the primary safe haven commodity. Countries like China, Russia and India are converting there US Dollar reserves into gold. This is putting upward pressure on the gold prices. Gold market has been in fact in a secular bull market for the last many years.
Now the good news, if you are a forex trader or if you have just started trading forex, then you should know this fact that you can also trade gold alongwith forex. The technical analysis basics for both markets are almost the same. The details may vary but if you can trade forex, you can also trade gold. As said before, US Dollar and the gold prices have an inverse relationship so combining forex trading with gold trading can be a perfect hedge. Both compliment each other. Most of the brokers allow gold trading from the same platform that you use to trade forex. If you want to take part in this latest gold rush, you can start trading gold along with forex. Now if you are interested in learning forex trading than you should take a look at the Strignano’s Forex Signals and Mentoring. It is a complete package that will help you to make money alongwith learn forex trading from an EX-Chief Currency Trader with 25 years to trading experience.
The technical analysis for the gold market is also done on almost the same lines as the forex market. Right now, gold market is hot. Gold prices are on the rise. If you can ride on this trend till it last, you are sure going to make a lot of money. Gold is also considered to be a perfect hedge against inflation. So if you trade forex or are thinking of trading forex, you should also think about trading gold alongwith forex!
3 Reasons To Get Forex Mastery Just Now At The Lowest Price Ever
November 30, 2009 by Forex Guide
Filed under Forex Systems
Get these free Forex Scalping Cheatsheets just now. Learn Forex News Trading! If you don’t have your personal copy of Forex Mastery by now….The Clock Is Seriously Starting To Wind Down! Actually, it’s more than that… In fact, there are three reasons why you should make your investment in Forex Mastery right now:
1. Quantity – Brett Fogle at OU Forex Trader told me there are now less than 10 copies remaining..
They’ll of course re-open, but they have no idea when…Could be mid to late next year..
2. Time – They plan to “shut the doors” on the course at 12 Noon EST on Tuesday..
It will then be time to focus on training and supporting the customers who have signed up. And there are a lot, so they have to close the doors and give them their full attention..
3. The last Orientation webinar is set for Tuesday night, and you don’t want to miss that. It’s their ‘Fast Track’ Training on Forex Mastery…
So… at least for now….You still have a chance to own your personal copy of Forex Mastery…But for the 3 reasons above, that chance is dwindling fast…Your chance to acquire Forex Mastery at the lowest price it will ever be is fading fast…To get one of the handful of courses left, head to this web page right now:
This is what Jason Fielder says about Forex Mastery Program: I’m sitting here in Las Vegas, about to jump on my plane that will “get me out” of Sin City… (Anyone who’s been here before I’m sure can relate to the need to be “Leaving Las Vegas!”) and I admit I’m no exception! If you’re wondering what I’m doing here, I’ll let you in on a little secret…I came down to attend the Traders Expo at Mandalay Bay, which is THE preeminent show for traders – held here only once per year.
I admit even I was a little star struck, rubbing shoulders with the “World’s Best” major trading celebs who were here…. (Just Google Vegas Traders Expo to get an idea). But as exciting that was, it wasn’t’ even the best part. You see last night I was invited to an “ultra exclusive” closed door meeting at the Skyloft suites at the MGM Grand (these suites are bigger than my house running larger than 5000 square feet!) with a few of the most elite traders from the show. The gang even included some television stars who regularly appear on CNN, FOX and CNBC.
As “geeky” as this may sound, in these incredible surroundings we weren’t talking about the gambling, the beautiful women or the crazy partying that goes on here…
No.
The conversation was all centered around OU’s Forex Mastery Home Study Course.
Forex Mastery, Trading Discipline And Online Forex Training Free Report On Position Sizing
November 30, 2009 by Forex Guide
Filed under Forex Trading
Get this Bob’s Online Forex Classroom free report on how to make is virtually impossible to blow out your trading account. Try these 1500 pips a day cash printing Forex Signals from heaven. Learn Fibonacci Retracement! This is what Norman Hallet says: “OU (which stands for Options University) is well known in the online investment industry for not only having quality courses, but also having a great learning PLATFORM… how they deliver the course to you. Their students, for years, have been getting some of the best options education available. A couple of years ago, Brett Fogle, OU’s type-A and very creative Chairman, decided to expand his offerings to include FOREX education, and OU’s reputation is now growing among FOREX traders. Part of what students love is… again… their learning platform. State-of-the-art online presentations. Anyway, I got 3 phone calls last week from subscribers of this list, telling me how much they liked the idea of the “Market Scanner”, which is part of the Project X offering (I sent an email to you on it a couple of days ago).
Stock, FOREX, commodity, options, and bond traders… Having worked with thousands of traders over the last 8 years… specifically on trading discipline…one thing is obvious…Most traders have a good enough trading plan to make money and the reason they DON’T is that they lack solid trading discipline. If you are not succeeding as a part-time or full-time trader, then discipline is likely your
issue. Well… that CAN change and change quickly. We’ve done it for thousands of trader. Why not you? January 11th… that’s the date that we kick off the next The Disciplined Trader Online Intensive where we’ll be training 200 traders to be steadfast in there trading discipline.
But registration for that class is now. Today. No more hesitating to pull the trigger on a trade you “should have” been in. No more “blow out trades”… the ones the blow a huge whole in your equity because you lifted a stop or just stayed in a trade knowing it “had to” come back. BE The Disciplined Trader…”
Indeed it is not the trading system that makes you a winning trader but it is your trading discipline and the proper application of risk and money management rules that can give you the winning edge. Bob Iaccino is a forex pro who gets regularly interviewed by CNBC, CNN and FOX. He is considered to be an authority on forex trading. Recently he has started his online forex classroom. Bob’s Forex Classroom is the best online forex training that you can get. Watch this three winning trading videos in a row trading video and download your free Position Sizing and Risk Management Report that shows how it is virtually impossible to blow out your trading account if you follow the correct risk and money management report.
