Archive for Currency Trading
The Truth About Forex Trading Scams
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So what are forex scams? Some people jump to the conclusion that anything that doesn’t make them rich overnight is a scam. They do not want to have to spend any time developing skills – they want something that works like magic, without putting in any effort at all. That’s clearly crazy. If such a thing existed, everybody would be using it … and when you think about the economics, even if something like that was invented, it wouldn’t be effective for very long.
The fact is that the money you make has to come from somewhere. Technology can improve our methods of producing goods so that everybody’s standard of living improves and everybody becomes richer in real terms. However, when you are trading, gambling or doing anything else that involves ‘pure money’ without any goods or services being produced, then for one person to gain, another person or institution has to lose.
It is true that in forex currency trading exchange, some of the bad prices are taken by people or institutions who either do not know or do not care. Businesses who import or export goods rarely bother to try to schedule their payments for a moment when the exchange rates are favorable. People taking a vacation overseas are the same. Nevertheless, there are so many people and institutions in the ‘pure’ forex market these days that it is simply not possible for everybody to make money from forex trading.
So when you are in an internet forum and you are trying to decide whether negative comments that you read about a product are really a sign of a scam, it is useful to picture the situation happening in the real world, i.e. offline.
Imagine you bought a book about forex day trading from a bookstore, but the system described in it did not work for you. It might be that the methods in the book were out of date, or they might not be suitable for you for some reason. You would probably have learnt something, and you would just shrug and accept that wasn’t the right system for you. You wouldn’t go back into town and call the bookstore owner a scammer.
But if the bookstore was inviting everybody to pre-order a great new book on forex that was about to be published, and you and 1000 other people all handed over your cash, and the next day the store was closed and the owner had left town … that is a scam.
A scam, according to the dictionary, is ‘a fraudulent business scheme; a swindle’. A scam involves fraud and an intention to deceive. Scams are illegal. It is not correct to use this word to describe something offered and delivered in good faith.
People are very cautious of buying online and you will often see the word ’scam’ thrown around without much justification. Usually it is just a case of a frustrated customer trying to blame the product for his inability to be successful with it, or it might be something that worked at one time but is out of date or has been over-used. You wouldn’t want to buy it except for historical interest but it wouldn’t be right to call these systems forex trading scams.
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Forex Trading Scams – How To Avoid Them
Posted by: | CommentsThere is plenty of opportunity for unscrupulous people to make money fraudulently by launching a forex trading scam. Unfortunately there are always people who will part with money too fast in the hope of making more, this is especially true when it comes to the stock market. However, we cannot assume that a system has to make cash for everybody using it in order to be genuine. So what are the signs of a real scam?
1. Unrealistic claims
All websites that are promoting a forex product or service will try to appeal to your wish to make money. That is what forex day trading is about, after all. But if a site promises to make you millions of dollars virtually overnight no matter who you are and without requiring any work on your part, stay clear.
2. Huge earnings on trading account screenshots
It is also common for sites to provide images of their own trading account results to convince you that their system makes money. This is common practice. A scammer will fake the screenshots using Photoshop, and it is pretty much impossible to tell.
So although having screenshots on the site is not in itself a problem, you shouldn’t pay much attention to them. Even if they are not faked, you don’t know that the person followed the exact system you are buying in order to obtain those results … and even if the figures are 100% genuine, it certainly does not mean that you will achieve the same results.
3. No guarantee
There should be a money back guarantee on any product and you should not have to jump through hoops to get it. Look for a “no questions” guarantee rather than something that says you must have followed all instructions to the letter before you can qualify for a refund. Following the instructions may include investing more money than you have.
If you are buying a downloadable product such as an ebook or expert advisor, you can trust anything that is sold by Clickbank as far as refunds are concerned. Clickbank will always refund these items within 58 days of your purchase.
If you are looking at a membership site or a service, refunds on past payments may not be offered because of the time that the company will have put in to providing the service for you during the time that you were a member. However, you should check that you can cancel at any time without incurring further charges. Don’t sign up for something that locks you into a contract for 6 or 12 months.
4. Bad press in the forums
All products will show you recommendations and testimonials from satisfied customers. If you want to be sure you can ask for evidence that they are real, and a genuine business will usually find a way for you to contact the person if there is not already a link given along with the testimonial.
But even the worst day trading system will have some users who were just lucky. What you want to know is what the un-satisfied customers are saying. There will be some for every product, no matter how good, and you need to find them and sift through their comments. Are they just unhappy because they didn’t make a lot of money overnight, or was there a genuine problem with the product? Search for them in online forums to get a clear idea of which products are worthwhile and which ones might be a forex scam.
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Forex Trading eBooks And Courses
Posted by: | CommentsThere is no doubt about it, forex trading books are very useful for the new currency trader and equally for traders who want to improve their skills with new strategies. There is a very wide variety of currency trading training resources available both online and offline these days including members-only websites, forums, online courses, seminars, conferences and even one-on-one tutoring from an experienced mentor. But there are times when a good old fashioned book is just the thing that you need.
No matter whether your currency trading book is published on paper or downloaded as an ebook, it can be the best way to learn in many circumstances. It wins over other options on both convenience and price.
You can open it up whenever you need it. You can re-read it whenever you want, repeating the more advanced passages and exercises as many times as you need to before everything is fully absorbed so that it becomes like second nature.You can also schedule your training sessions for the best times to suit your life.
Another advantage of forex books is that you save time by skipping over the things you already know. If you have any experience at all, going over the basics can waste a lot of your time in training that is based around seminars or even audio or video sessions online while you wait for everyone else to be shown the techniques that you have already mastered.
There are new books on forex day trading being published almost every week, so it is useful to know what to look for and how to pick out the best. Just as with any other market where money is involved, you need to know how to identify and stay clear of any scams that you might come across. The old rule is very valid here and you may want to post it up on the side of your PC as you browse for books online: “If it sounds too good to be true, it probably is!”
Having said that, the currency trading market is a place where you can expect to find a certain amount of hype. Do not be too fast to make negative judgments just because a book or ebook is advertised with a fair amount of hard sell. Remember the advertising copy is probably written by a professional writer, not the author of the book.
So you can safely ignore most of the hype in the promotional advertisements and look for the things that you really need to know. These are:
1. What areas of expertise are covered in the book.
2. Whether it is right for you, i.e. whether it is aimed at traders of your skill and experience level.
3. What are the benefits that you personally can hope to gain from it.
The first of these should be very clear from the advertising. If it is not, try asking to view the contents index of the book. The other two points will require a more detailed reading of the promotional material keeping your own individual situation in mind.
If you can take a look inside the book you will soon see whether it is well written. You are looking for something that is down to earth, logical and practical. Professional presentation and editing is a good sign of a reputable and successful author or publisher. If you are a beginner you will want step by step information. In any case, hyped up language inside the book itself is definitely a warning signal.
Another thing that you should do before getting a book or ebook, even if you plan to buy in a book store, is to do internet searches on the book title and author name. Look for any news stories about the writer. Is he or she a successful real life trader, or just someone hoping to make money from a lucrative trend? You need to be sure that the information in a currency trading book is good before you risk real money on the strategies it suggests.
You can also look for reviews written by buyers who are actually using the information they have learned successfully. It is true that some of these may earn a commission on sales of the book but a good review will help you figure out whether the book is right for beginner, intermediate or advanced traders, and how it fits your idea of what you need to know from forex books.
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Forex Trading Explained
Posted by: | CommentsWhat is currency trading? Well, at its simplest it is exchanging one currency for another, just as you might do when going on vacation to another country. You sell your currency for the money of the place you are going to.
However, when people talk about forex (foreign exchange) trading or currency trading on the forex market, they generally mean something very different. In this case traders are constantly exchanging one currency for another (buying currencies and selling others) with the goal of making a profit when the exchange rates change.
It is a little like trading in stocks on the stock market. Stock traders usually buy and sell stocks very quickly compared with the average personal investor who will take the advice of a broker but often keep stocks for years or even decades.
How Does Currency Trading Work?
The best way to demonstrate how currency trading makes money for the traders is to use an example.
Let’s say the current rate on the English pound to euro forex market is this: GBP/EUR 1.1200. That means that to buy one British pound you will need 1.12 euros. If you believed that the value of the euro was going to rise compared to the value of the pound, you might sell 100,000 pounds, buy 100,000 euros, and wait. Then let’s say a few days later, the exchange rate has moved to: GBP/EUR 1.0600. Sure enough, the pound is now worth only 1.06 euros. Now if you sell your euros and buy back 100,000 pounds, you will have made a profit of 6% on your cash, less any fees.
This sound like a lot of money. Who has 100,000 pounds or even dollars lying around in the bank to trade with? Not me, and I guess not you either. But fortunately, you do not have to have all that money for real. You are buying and selling at the same time, so all you need to have is enough to cover any loss that might be made before you could exit the market if your prediction was bad and the currency that you bought started to fall. Your broker loans you the rest.
This is known as trading margins. On a $100,000 trade the margin is usually 1% or 2%, i.e. $1,000 or $2,000. This is the money that you must have in your forex brokerage account.
The amount you trade is determined by ‘lots’. A lot may be worth $10,000 or more depending on the currency and the Forex broker. So if you want to trade $20,000 you would trade 2 lots and so on.
There are now limited risk accounts, where you can only risk the amount of cash you have on account with the broker, thus avoiding margin calls. This is done by allowing smaller players to trade forex using ‘mini lots’ or fractions of a lot. So you can trade $1,000 by trading 0.10 of a lot. This reduces risk but may cost more to trade.
More and more ordinary people are getting into currency trading these days. It has certain advantages over the stock market and even if you know nothing about valuation of the different currencies you can set up a forex trading robot, a complex software program that will trade for you according to the settings you choose. Keep in mind that it is a risky business and capital can be lost as well as gained. Knowing what is currency trading gives you an idea of whether you want to take the next step towards becoming a currency trader.
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Forex Mini Accounts – New Traders Start Here!
Posted by: | CommentsIf you are new to forex trading or have only a small amount of capital available right now, mini forex trading could be the way to go for you. It allows you to trade with real money while limiting your risk to a relatively small amount. Generally the lot size of trades for a mini account is only one-tenth of the lot size for a standard account with the same broker.
Somebody starting out in forex has several options:
1. Start out right away with live trading in a standard brokerage account, investing from $1,000 to $5,000. This would be very risky for a beginner and is not recommended.
2. Begin with live trading in a mini forex account. Generally you need $250 for these accounts but you may be able to find brokers who will let you start with even less.
3. Start out with a demo Forex day trading account where you are picking up trading skills without investing any real money at all, then when you are consistently making profits, switch over to either a mini account or full brokerage account depending on your capital and your strategy.
Advantages Of A Mini Forex Trading Account
Most people choose option 3, the demo account. They feel much safer using ‘toy money’ online for several days, weeks or months. A demo account also gives you the opportunity to try out the various different strategies that you are probably reading about.
However there can be problems with running a demo account for too long. Some forex traders and trainers say that it lulls you into a false sense of security. It is much easier to take risks when there is no real money involved, and you will be practicing with strategies that you may be uncomfortable using in real life trading.
So what can happen is that the demo account teaches you to make profits using medium to high risk strategies, but when you are faced with a real money situation you may lose your nerve. This usually results in bad decisions made on the spur of the moment and ’strategy hopping’ where you are constantly switching from one plan to another. Losses are almost inevitable in this situation.
For this reason, some experts recommend starting with a mini account and using real money almost from the get-go. You would only use a demo account for a small number of trades to familiarize yourself with the technical side of operating your account and making trades. In this way you are likely to learn strategies that can work for you in the long term.
Disadvantages Of A Mini Trading Account
When you are trading small amounts, you must expect to pay more in percentage terms to the broker. This eats into your gains. In the long term this can have a massive effect on your results and can make the all important difference between profit and loss. Therefore, most people operating a mini account will be aiming to switch to higher value trades as soon as they have the capital to do so.
However you choose to start, you will need to accept that forex trading is high risk by its very nature, like all forms of investment that offer the possibility of large gains in a short time. You should only invest cash that you are prepared to lose if things go against you.
Starting out with a mini Forex account can be a great way for someone who is new to forex to pick up the techniques for real. Mini forex trading could be the best way to find out for sure whether foreign exchange trading is right for you.
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Foreign Exchange Basics: The Forex Market
Posted by: | CommentsThis article on foreign exchange basics will look at the forex market. There is a lot to discover about the foreign exchange market and you will need to understand how it works if you plan to take practical steps towards becoming a successful forex trader.
You will come across several different terms for the forex market. Forex and fx are both short ways of saying ‘foreign exchange’. It may also be called the currency market, the foreign currency market, the currency trading market, etc. All of these terms refer to the same international market on which the currencies of the world are exchanged and traded.
The forex market is not situated in one particular place. Practically every country is involved so there is a possibility of trading currencies in most countries. Because of this, the market runs 24 hours a day, five days a week. The week starts on Monday morning in Sydney, Australia (that is, 5 pm Sunday EST in the USA) and ends at 4 pm EST on Friday in New York. During that time it is always possible to trade currencies somewhere in the world.
The forex market is a surprisingly recent phenomenon. Up until the 1970s, currencies had been stable relative to one another since the second world war. What was called the ‘gold standard’ gave every currency a value in relation to the US dollar. This system was introduced in order to maintain a stable world economy.
However, in the early 70s the USA abandoned the gold standard and the values of the different currencies began to change. Banks immediately began to exchange currencies for profit, buying low and selling high, instead of only making exchanges when they needed to transfer money from one country to another. In effect, each currency became a tradeable commodity. This was the beginning of forex trading.
The value of a currency is, in a sense, the value of the nation whose currency it is, so just like companies on the stock exchange, if a nation is successful the value of its currency increases and if it is going though a crisis the value drops. These fluctuations can be great and can happen very fast. The sums involved can be huge too. The total value of transactions on the forex market now averages almost $2 trillion dollars a day.
The market is still dominated by large international and investment banks, major corporations and other large financial institutions. However, it is possible to trade as a private individual through a broker and with the rise of the internet this has become much more popular. There are now a large number of people involved in forex trading through their home computers, although because they trade much smaller amounts than the institutions, they only account for around 2% of the total forex market.
The most common trades involve the US dollar against other currencies (especially the euro, British pound, Japanese yen, Swiss franc and Australian dollar) but it is possible to trade any one currency against another. Many of the automated forex robots used by individual traders concentrate on lesser pairs such as the pound against the euro.
The foreign exchange market is huge and an individual trader can feel like a tiny ant dodging around the feet of elephants. But almost anyone can get into it if they have a little capital that they are willing to risk. Some brokers will let you start with as little as $250. Before investing any real money, however, it is best to practice with a forex demo account while you learn the foreign exchange basics.
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Is FX Trading Software The Solution To A Lazy Mans Forex Trading?
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Automation is in the world of currency forex online trading truly the lazy mans way of trading the forex. It’s simply intelligent to let an automated system work for you. Why? This way you are able to beat your biggest conqueror, You!
But be careful, after 6 years of FX Online Trading, I’ve been probably through all the pitfalls that this industry has to offer, which was sometimes a very hard lesson to learn. And if you don’t want to experience all this trial and error yourself? So what makes the difference between the winners and the loosers?
There are some points that are absolutely key to your success!) with online forex exchange trading or simple, FX. So here they are:
How to become a successfully currency forex online trading expert
The 5 basic rules
1. Do not put any money at risk that you could need elsewhere. Never!
2. Do not have more than 3% of your current account balance at risk. Make sure you have always a Stop/Loss in place that takes care of this. Crucial!
3. Always start with a demo account for at least one month if you are testing something new (Most Automated FX Trading Software requires a minimum of 3-6 month testing to get familiar with the software and the trading “habits” of it.)
4. Only switch to real or live trading after a minimum of one month profitable trading (should be at least 20 trades, the more, the better).
5. After finding a profitable FX Trading Software, always take portions of the newly earned capital out of the account and let the rest accumulate. My recommendation is to take about half out of what you have already gained per month.
That’s all there is for the basics to get started. It’s as simple as that. You can be one of those 5% of profitable traders who make a killing in fx online trading.
How to find a profitable FX Software?
That’s no easy thing to achieve. Normally you have to test dozens of systems to find one that is really profitable. Don’t get me wrong on this one. Sure, everyone claims to have one that is profitable and will make you tons of money, but the reality can be very sobering. Bad ROI (Return of Investment), Bad RR (Risk to Reward Ration), these are my results after testing 74 over these automated FX online trading systems.
Every automated FX Trading Software System needs a platform to run with. In the majority of cases this is the Metatrader 4 or MT4 platform. Inside the Platform those Forex robots are called Expert Advisors or short EA’s. EA’s are simply some piece of Software that tell the MT4 Platform when to trade, which currency pair and how to trade it.
Just google it out on the internet. But I don’t want to overwhelm you with too much info. That beeing said, I will go straight to the point of interest:
5 Rules to find an automated FX Trading System that really works
1. If an EA is only advertised with “back tests”, it is nothing you should spend your time and money on. Because back test results are only good for programmers to get an idea if their system works or not.
2. You have to look for live testing or forward testing results.
3. The Trader/Advertiser should have a live stream that you can follow and look at all trades whenever you want to.
4. This automated system should have build in settings that you don’t have to figure out for yourself. An update service should be included. Only work with a system that is already optimized, so you don’t have to do it by yourself.
5. And finally: A Money-Back-Guarantee for the Trading Robot.
That’s all there is to it. If you only follow these guidelines, your way to the top of the fx traders is well planned.
Forex Robot | Fap Turbo Review
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Forex trading is about the most dynamic financial markets around, and why not when one is dealing with a market trading over $3trillion every day and accessible to anyone.
Many people are looking for a secure way to make good money on Forex without getting involved on a daily basis, and there are even more people claiming they have the product that will achieve precisely that.
I have tested a few, not back testing but on real time demo accounts and they are very good at spending your money. They failed dismally, but that said, there is one which consistently produce good returns; FapTurbo.
I have been using it beside my manual day trading, and once it programs itself around its chart interpretation, it consistently makes profitable trades like every day the markets are trading. It is a Forex Robot, so once the parameters are set it is close to ‘set and forget’, except for the monthly upgrades which keep it at the cutting edge.
One of the more interesting aspects to FapTurbo is it cannot be used with some brokers, it works too well, an enviable notoriety!
FapTurbo is very straight forward to install, so you can start learning how it works within a matter of hoursa few days. Soon you will be testing settings and strategies on your demo account, watching what settings win and which do not work. Within less time than you think, you will become confident of its abilities and able to throw some real money at it, then watch the profits roll in.
Support is brilliant as is the very active ForexTurbo Forum, where the is a copious quantities of quality information and assistance for newbies.
So if you want to start Forex Trading, this is a worthwhile way to start and not be left on your own to be challenged with a Robot system that offers no help or support.
Visit the Official FapTurbo Website for more information.
Day Trading and the Mind
Posted by: | CommentsWhat impact your mind frame has on your day trading activities will in part be determined by how emotionally tuned you are. In some cases, if you happen to blow with your emotions, your day will be heavily affected by other things in your life, frustration, or a few bad trades. In other cases, you may have a high tolerance for emotional strife before you believe it affects your daily dealings. In either case, the mind frame you enter the day with counts.
Because day trading is a solo activity, only you get to determine how your day goes and how you handle the events of the day. Because of this solo activity, you may also need to develop a higher level of self awareness. Your mood can become your monkey on your back even during a good trading day. If you allow a downcast mood to factor into your decisions, you are no longer making objective decisions. Using emotion through the trading day is a definite sign of potential loss. Being objective helps you make objective decisions and the introduction of emotion into that equation is a good recipe for loss.
On top of the unexpected emotional ups and downs of every day life, you also need to take into account the typical rhythm that your body goes through. Some people are morning people with clarity of mind and others just don’t perk up until later in the day. Know yourself, and your own natural biorhythms, and you will be more readily capable of determining the best time to lay out your plan for the following day. In some cases, you are going to need to learn to trust your clear conceptualizing because when you go to execute your trades, your mental cloudiness may want to over rule the clearly thought out plan.
If you are a morning person with the wind at your back all the way until noon, use that time wisely. During your natural down time, rely on your good judgment from the morning. If you are a natural night owl, use your morning to execute trades that were well thought during your peak times the day before, again trusting your earlier clarity. This is a process that takes some traders a couple of years to really get down. They allow their own poor judgment of their fatigued time to get in the way of what was otherwise a perfectly awesome plan.
Developing self discipline is a necessity. Learn everything you can about yourself, the way you make certain decisions at certain times of the day, and learn to trust your most clearly thought out plans. Some traders keep a notebook beside them and note their mood and their overall energy level as they make decisions, and then they go back and keep track of the quality of those decisions to help figure out what time of the day they make the clearest and most profitable decisions.
This requires a dedication and a time commitment, but those who have successfully tracked themselves are successfully happier with their results from this exercise. Should you choose to follow the exercise, you can not pick and choose which decisions you keep track of. You must keep account of every single one and the shortest amount of time that is recommended is two weeks, with most people finding the best results between one and three months.
Well defined plans are vital to creating wealth over time and executing intelligent and profitable trades. Defining those plans during the times of the day when you are most apt to make the best decisions is only logical. Creating an environment that is healthy enough to allow you to leave your emotional issues at the door when you sit down to trade is also a vital part of keeping a clear trading head and trading without emotional involvement. These are easier said than done, but just like everything else, with practice comes better.
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