Forex Trading Secrets: A Trading System Revealed Reviews

Money Currency

How (Not) To Lose Money With FX Currency Trading

Forex or FX currency trading is a risky business. Many people go into it with high hopes of getting rich and quickly find that it is easier to lose money in the foreign exchange markets than to make it. Even if you are ideally financed and have the best system, robot or plan, you may discover the sad fact that the one thing holding many traders back from success is themselves.

So in this article we look at some of the major pitfalls of forex trading and how to avoid them.

1. System hopping

One surefire way to lose money with forex trading is trying a system for a few days and giving up on it because it made a loss or two. Before you even start using a system you should be as sure as a person can be that it is going to be profitable. You have to accept losses and stick with it.

Remember that if you bail out every time that you are losing, you never give your systems a chance to put you back into profit. You will lose your shirt for sure if you hop from one system to another without giving anything a chance to work.

2. Dwelling on ‘what might have been’

One of the worst temptations of trading is being drawn into wasting time and energy on thinking about how much we could have made if only we had acted differently. Often a situation will arise that does not quite meet the requirements of your system. You wait, and perhaps it turns out that you could have made a lot of money if only you had acted.

But thinking this way is dangerous. Another time the same situation will turn against you. We tend to remember all of the lost chances to win and forget that by keeping to the plan, we also miss a lot of losing situations.

3. Impatience

You will lose money if you do not have the patience to wait for the right trading opportunity. A short run of losses can make us feel desperate for a successful trade, but we must still wait for the right market signals. Do not be led into acting too soon by excitement or the fear of missing an opportunity.

4. Hesitation

On the other hand, it is also important not to hesitate too long. When the right moment comes along, act with conviction. Have your plan written down and keep it in front of you at all times so that you know exactly when the signs are right for your trade. Do not wait until you see a trend forming to start thinking about your position size, leverage or stop loss. Everything should be in place so that you can take advantage of a genuine opportunity.

5. Letting emotions drive your trading

We all know the danger of letting our emotions lead us in any trading situation, at least in theory. In practice it can sometimes be hard to tell the difference between fear and caution, or between profit maximizing strategies and greed. Having a written plan will help again here, as will training with a demo account where emotions will not be nearly so strong.

Some people find that they cannot make money with a demo account because they are getting into experimental trades, telling themselves that it does not matter because it is not real money. If they do then start trading with a real account they are completely unprepared for the emotional punch of real time trading and have not learned any discipline to help them handle it.

So whether you are trading in demo mode or for real, take it seriously. Be sure to avoid these traps if you want to make money with FX currency trading.

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Saturday, November 20th, 2010 Strategy No Comments

Want To Make Money Online From Home? Try Forex Trading

More and more people want to make money online from home these days. Having no commute is so convenient. Having no boss is even better. You are not tied to regular hours and you can be at home with the family. Plus of course in the current economic climate it is harder and harder to find a good job. All of this makes the idea of making money on the internet very attractive.

Learning forex currency trading is one way of earning money online that a person can do from the comfort of his or her own home. Some of us start in our spare time while holding down a full time job, others may be retired, unemployed or disabled. We soon get hooked and want to make this our full time career.

We all start out with big dreams and while these may come true for a few people, we must face the facts. The truth is that the majority of traders starting out will lose money with online currency trading. Why is this, and how can we avoid falling into this unlucky crowd?

One problem with forex trading is that many people approach it as if it were a game. They have a gambling mindset. They may open and close trades almost as if they were playing roulette, hoping to be lucky this time.

This type of trader has become more and more prevalent in the last few years since online casinos were outlawed in the USA. People who got a kick from risking (and probably losing) their money had to find a new way to do it, and many of them came into the forex market.

But forex trading is not a game of chance. There may be some similarities in the way that you view gains and losses but exchanging currency is still a form of investing, even if you are trading on the probability of a rise or fall in the interest rates. There are skills to be learned, techniques and tactics, systems that are profitable and some that are not.

In fact the most important thing to remember when you are starting out as a forex trader is that you must completely get rid of the idea of relying on luck and intuition. Stop using words like ‘playing’ when you are talking or thinking about making a trade.

Instead, concentrate on finding a reliable system and understanding the market thoroughly before you jump in. I know you probably do not want to hear this but you do have to spend some time on your forex exchange training if you want to make money online from home with forex trading.

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Tuesday, June 23rd, 2009 Introduction 1 Comment

What Are The Risks With Fx Managed Accounts?

Forex managed accounts present an attractive opportunity for people who want to make money from the lucrative currency trading markets but cannot or do not want to learn to trade for themselves. With a managed account you do not have to do any trading at all. Instead, you entrust your fund to the management company who will act for you.

There are two basic types of forex managed accounts.

1. Standard accounts

With this type of account, your money is kept in your brokerage account in your own name and the manager simply has control over it so that they can trade with it. You can see how much is there and how it is doing at all times. It remains your money.

You have to accept the risk that even a skilled account manager cannot predict the markets 100% and you may have to take some losses. Still, if you are a beginner, he is likely to do better with your money than you would yourself, so it is just a question of whether he can do well enough to cover his fees and make you a good profit.

2. Pooled accounts

Pooled accounts are more risky in that there is more possibility of fraud. Here, your money goes into a pool held by the account manager. You are paid a share of their declared profits.

In theory the pool provides a buffer so that profits and losses are more evenly spread and your income could be a little more predictable than when your money is being managed separately. The problem is that you cannot really know what is happening and an unscrupulous management company could simply be making small regular payments to keep their customers happy while illegally diverting the bulk of your funds into their own pockets.

If you are guaranteed a certain percentage return on investment by a forex account manager using pooled funds, you could be heading for trouble. There are no guarantees with forex trading and any company that makes promises of a 10% return or whatever should be treated with extreme caution.

Of course there are some well run pooled accounts and they have the advantage of a little more predictability than standard forex managed accounts. However, you should research a company offering pooled accounts even more thoroughly than usual before you decide to invest.

Even if you choose a standard account, you need to shop around. Avoid managers who insist on you signing up with their preferred broker. That usually means that they get a commission on all your trades, so they have an incentive to make a lot of small trades even if that is not the most profitable strategy, simply to increase the broker’s earnings from the spread and their own commission rakeoff. Even if their commission is worked on a different basis, you probably will not get the best or cheapest broker that way. It is better to sign up with a company who will let you choose your own broker for forex managed accounts, even if they charge a slightly higher fee.

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Tuesday, May 26th, 2009 Managed Accounts No Comments

What Are The Risks With Forex Managed Accounts?

Forex managed accounts present an attractive opportunity for people who want to make money from the lucrative currency trading markets but cannot or do not want to learn to trade for themselves. With a managed account you do not have to do any trading at all. Instead, you entrust your fund to the management company who will act for you.

There are two basic types of forex managed accounts.

1. Standard accounts

With this type of account, your money is kept in your brokerage account in your own name and the manager simply has control over it so that they can trade with it. You can see how much is there and how it is doing at all times. It remains your money.

You have to accept the risk that even a skilled account manager cannot predict the markets 100% and you may have to take some losses. Still, if you are a beginner, he is likely to do better with your money than you would yourself, so it is just a question of whether he can do well enough to cover his fees and make you a good profit.

2. Pooled accounts

Pooled accounts are more risky in that there is more possibility of fraud. Here, your money goes into a pool held by the account manager. You are paid a share of their declared profits.

In theory the pool provides a buffer so that profits and losses are more evenly spread and your income could be a little more predictable than when your money is being managed separately. The problem is that you cannot really know what is happening and an unscrupulous management company could simply be making small regular payments to keep their customers happy while illegally diverting the bulk of your funds into their own pockets.

If you are guaranteed a certain percentage return on investment by a forex account manager using pooled funds, you could be heading for trouble. There are no guarantees with forex trading and any company that makes promises of a 10% return or whatever should be treated with extreme caution.

Of course there are some well run pooled accounts and they have the advantage of a little more predictability than standard forex managed accounts. However, you should research a company offering pooled accounts even more thoroughly than usual before you decide to invest.

Even if you choose a standard account, you need to shop around. Avoid managers who insist on you signing up with their preferred broker. That usually means that they get a commission on all your trades, so they have an incentive to make a lot of small trades even if that is not the most profitable strategy, simply to increase the broker’s earnings from the spread and their own commission rakeoff. Even if their commission is worked on a different basis, you probably will not get the best or cheapest broker that way. It is better to sign up with a company who will let you choose your own broker for forex managed accounts, even if they charge a slightly higher fee.

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Monday, May 25th, 2009 Managed Accounts No Comments