Learning how to make money trading Forex

This approach has the advantage of you being in control and actually knowing what you’re doing. The disadvantage of this approach is that you have to be involved and spend some time and money to learn how to trade successfully. To be prepared for live trading currencies you will need at least 3 months of training and 3-9 months of demo and micro- or mini-account trading before you can start trading live with your money. You can start learning the basics using some free resources that you can find on the net, e.g. at babypips.com or the Forex Factory websites but if you want to trade Forex successfully, eventually you will need to take a course on Forex trading.

Some may think that this is too much work and too much effort, but when you think about it 8 or 12 months is a very short period of time, when compared to how long it takes and how much money you spend on your education in many other occupations. Take a look at the following table, which lists some of the more “prestigious” and higher-paying jobs and compares them to your Forex day trader “job”:

Occupation Avg. earnings year 1 Avg. earnings year 5 Training cost Training Duration

Doctor            $110,000                                $140,000           $300,000      16 years (4 yrs college, 4 yrs med school, 8 years residency)

Lawyer             $50,000                                  $80,000           $160,000       7 years (4 yrs college, 4 yrs law school)

Programmer      $35,000                                  $65,000           $130,000      6 years (4 yrs undergrad, 4 yrs optional post-grad)

Now let us compare these figures with what a Forex trader can earn a year and how long it takes to become one…

Assuming you will spend 1 year on your training and demo and mini-account trading before you start trading live standard accounts and that your initial deposit will be $10,000, your education costs are as follows:

$500 – spent on Online Forex Courses

$200 – Trading Software (if you want to use automation, otherwise $0)

$200 – Books or financial magazines subscription

$500 – 1 “blown” mini account. In other words we are assuming that you will start your trading on a mini, with a deposit of $500 and will completely destroy this account during your training (which in fact is virtually impossible, because even in the worst case scenario, where you open bad trades one after another you will still get back the margin portion of your account). At any rate – consider this $500 dollar account part of your tuition, the price of learning a new skill and don’t cry over it. When you learn how to trade Forex successfully you will be making this kind of money in one afternoon!

$100 – Misc. expenses – money spent on magazine subscriptions, e-Books, etc.

——

$1500

The above assumptions are more than realistic. As a matter of fact it is quite possible that you will be able to complete your training phase way earlier and that you will spend, say, $300 on online Forex courses instead of $500, and that you will not lose your $500 mini- or micro-account but will successfully make $50 or $100 dollars in profits with it! However, I’d rather you assume the worst and be pleasantly surprised than the other way around!

For an in-depth comparison of some of the most popular online Forex courses and education take a look here: http://www.fxsoftwaresolutions.com/ez-forex-online-course-comparison-vs-offline.

Have someone (or “something”?) trade for you

Don’t want to go to online Forex courses and wait a whole year before you start earning money? Well… that is doable! You drive your car every day without knowing how every part inside of it works, correct? Yep. And this does not make you a worse driver driver than your mechanic. Similarly you don’t need to know the Forex market inside out to profit from it!

There are companies offering signals which will tell you exactly when to enter an order and when to close it. There is software which can do the same — or even more! – trade 100% automatically for you! If you want to benefit from the investment opportunities of the currency markets but prefer a more hands-off approachm then signing up with a signal-provider company or opening a managed account or buying a Forex trading robot may be the best solution for you.

Doubtful about automated Forex software? If you think that automating your trading is just a gimmick or that forex robots and signals are nothing more than a scam – think again!

Did you know that since 2006, MetaQuotes Corp (the creators of the MetaTrader Forex trading platform), holds an annual Automated Trading Championship, where Forex robots compete over the period of 2 months for the prize pool totaling $40,000 in cash?! Participation is free, but you need to register in advance.

Last year (2008) the top ten finalists averaged a final balance of over $100,000 – that’s over the course of 2 months and starting with a $10,000 initial balance! Which means that each of the robots could potentially increase 10x your money within 2 months!

This is no hoax, no scam, no fad – the ATC is an international event, documented, regulated and sponsored by several renowned Forex industry giants. The prizes are provided by the sponsors: FXCM, FXDD, IBFX and others and the winners are determined by a MetaQuotes jury according to the strict rules of the tournament.

If the above facts have swayed your opinion in favor of automated Forex trading you can get more details about the championship and the robots at http://www.fxsoftwaresolutions.com/articles/results-2008-automated-trading-championship

Happy (auto?) trading, Alan Bentler

Alan Bentler is a veteran trader and an editor at a Forex online community web-site.

Article Source: http://EzineArticles.com/?expert=Alan_Bentler

1. First of all – you will need a computer with an Internet connection.

2. You then open an account with a Forex broker. There are many brokers out there and naturally some are better than others. Remember that this is the company with which you will entrust you hard earned deposit, so if you really want to make money trading currencies you will need to choose your broker very carefully! You can see my other article “Opening Forex Account” for tips on how to choose a broker.

3. You then need to execute an order. In Forex you buy and sell foreign currencies – that is how you make money trading currency. The objective is to exchange one currency for another in the expectation that the price will change, so that the currencies you bought will increase in value compared to the ones you sold.

Let’s say you have 10,000 USD (US Dollars) and you want to buy British Pounds (GBP). If the Pound increases in value compared to the dollar then you will have made money trading these currencies.

Example:

You purchase 10,000 British pounds at the exchange rate of GBP/USD = $1.39. Ten days later you sell the pounds (also called closing your position or closing your trade or order) at the exchange rate of GBP/USD = $1.45.

Let’s see what happened in your account:

• Open BUY Order —-> GBP = +10,000; USD = -13,900
• Close BUY Order —-> GBP = -10,000; USD = +14,500
• End Balance: —–> GBP = 0; USD = +600

4. One of the great things about trading currencies, especially in times of recession is that unlike on the stock market, in Forex you can make money regardless of whether a currency pair goes up or down! Continuing with the above example, if at the same time the Canadian dollar went up, compared to the US dollar and you opened a SELL order on the USD/CAD pair, you would have also make money trading that currency pair!

Example:

• Open SELL Order —-> USD = -10,000; CAD = +12,700
• Close SELL Order —-> USD = +10,000; CAD = -12,200
• End Balance: —–> USD = 0; CAD = +500

Note that this time the plus and minus signs changed their places – this is because this time we are SELLING the USD in order to buy Canadian dollars!

If you don’t know much about Forex then you are probably wondering, looking at the above examples, whether you have to have at least $10,000 to trade currencies?

The answer is – NO! You won’t need nearly as much to start. All forex brokers offer margin accounts where you only use a portion of your money (used as collateral) to control a much larger sum of money in your order. The idea is similar to a mortgage. When you take a mortgage you provide the down-payment, which is only a small fraction of the price of your house, but are given control of the entire house! Similarly, in a Forex account your money acts as a collateral but it allows you to control much more money with which to trade. Most Forex brokers will allow you to trade 50x, 100x or even more times the value of your deposit!

That’s the basics of how you make money trading currencies: open an order and hold it until your position increases in value. Don’t be fooled – even though it looks easy there’s many aspects of currency trading that you need to be familiar with before you can start trading currencies successfully and profitably! Let’s face it – just because it looks easy doesn’t mean that everyone who starts doing it will make money trading currencies. In fact – most people who start trading Forex don’t make money but lose money.

Why? Forex provides the little guy with incredible opportunity for success… if you approach it seriously, if you take the time to invest in your Forex training and if you spend the money to get the right tools for the job. Most people don’t approach this wonderful opportunity seriously and the results are often dismal. Knowing how to play chess and winning at chess are two different things.

This article explained to you the basics of the Forex trading process and how it is possible to make money trading currencies. If, however you want to know how to trade currencies PROFITABLY then you may want to consider investing some time and money into doing it right.

Whether you decide to learn how to do it yourself or hire or a team of professionals to provide you with signals or manage your investments for you or (last but definitely not least!) decide to buy some automated Forex trading software – there are plenty of ways to approach your currency trading career intelligently and seriously. While going for an automated Forex trading robot may be considered a “quick-and-dirty” solution by some hard-core Forex traders it is also the fastest way to get a taste of the Forex market and pull in some quick profits, without burdening yourself with all the possible Forex trading techniques and methods available.

By the way – did you know that in 2006, over 25% of all Forex orders and over 40% of all orders at the London Stock Exchange, were entered by automated software trading robots? These numbers are expected to double by 2010. Still think that trading robots are a fad, a scam or simply don’t work?

If you want to read more about a proven, affordable and profitable system that can make you money take a look at this review of FAP-Turbo. During a NINE year testing period this software showed over 95% winners and an extremely low drawdown (0.35%)!

Alan Bentler is a veteran trader and an editor at http://www.fxsoftwaresolutions.com

Article Source: http://EzineArticles.com/?expert=Alan_Bentler

Now, does it means that you should ignore all those factors and focus only on performance?

No, not at all, but it does mean that you have to make sure that the software you regard as the best for you is not only a great software, but a great performer.

I have used many forex software (some of which I simply have returned for a refund) and I did not know whether they where the best or not until I put them to use. However, in my continuous quest for the best trading tools, I have had the opportunity to see some very friendly softwares, some of which were fully automated while others where semi-automated.

My natural preference of course has always gone in favor of the fully automated forex software, but this fact has not blinded my judgment at the time of choosing the best trading tool, because although I love “easy to use” and “do nothing” capabilities, my main concern always will be “how much money will it make”.

Until recently, it was hard to get a real idea about the performance of any given forex software before buying it, because all you could see once you landed on the website were the claims from its creators stating that “this one” is the best.

However, the landscape of the trading tools market has gone through some interesting changes due to serious improvements in the technology behind the best forex software, and now you can find what is called “live proof” of earnings in a few of those websites.

This means that the performance of a particular forex software has ceased to be a simple hyped promise to turn into an actual and live demonstration of trading capabilities. Based on this, it is far easier to make the right decision and really get the best trading tool, with the assurance that you are actually considering what matters the most: performance.

So when choosing the best forex software, sure it is important to consider things like your time availability (because that might determine the convenience for a fully automated option) and other factors, but always make sure that your choice is truly capable of making you money.

Take a look at the results attained with some of the few forex software, which have actually delivered the best performance trading live in real money accounts, at the Forex Edition of the: http://www.specialonlinebusinessreviewauthority.com

Article Source: http://EzineArticles.com/?expert=Alex_Cadens

One sure way NOT to make money and lose it all in Forex trading is to stay in a move too long because you are looking to “clean up.” Bad move! You must have a clear strategy to get in and out of a trade or you will lose everything, I promise. The bottom line is that you must be disciplined and stick with your trade method. Use objectivity when trading. I suggest using a few trading indicators, such as the Relative Strength Indicator (RSI) and the 200 day moving average. They will help develop a mechanized manner of trading that assists in staying away form poor emotionally led decisions.

Most importantly, I would suggest using effective Forex trading software that provides consistently winning trading signals. I have included a link to the best one I know at the bottom of the page. Good trading ahead.

Make a Killing Trading Forex! Forex Wealth is the place to visit.

Article Source: http://EzineArticles.com/?expert=George_Knoechel

After roughly two months using the FAP Turbo, I considered important to share in this review not only details about the performance I have experienced so far, but also some technical information that might tell you a bit more about this forex software.

A look at the FAP Turbo Claims:

The creators of the FAP Turbo launched the product with a basic claim consisting of three different real money accounts that basically tripled their equity over a three month period.

They focused on showing live statements of these accounts, instead of throwing bold claims about people becoming instant millionaires with FAP Turbo. This approach makes this software stand out from the crowd, and was one of the reasons I had better expectations about the FAP Turbo when I first got it.

What is in the box?

* You will get the FAP Turbo which is small file that will work as an expert advisor in a Metatrader4 trading platform. Within this file you will find what some consider a refined version of the FAPS which trades only in EUR/USD and scalper that trades on several currency pairs.

* The FAP Turbo manual.

* Access to the FAP Turbo members forum.

* Monthly updates of the software, which are critical for you to have.

About the FAP Turbo creators:

Although I cannot 100% confirm this, the word is that Ulrich is an open source programmer, Mike is a some sort of complex number wizard, and Steve Carletti is the lead developer of the FAP Turbo, and some say that this software is based on the FAPS source code from which it was enhanced and rebuilt to be more adaptive and also to trade on multiple currency pairs through what is called the FAP Turbo Scalper.

FAP Turbo Support:

The FAP Turbo provides a phone number and an email address. As for the phone number, do not even bother, as you will get an answering machine that cannot take more messages. With regards to the email, be prepared to wait a few days for an answer (at least that was the case at the launch phase, maybe it has changed).

Your best bet for quick and effective support is the FAP turbo support forum, which is very active and you will often see the developers stepping in answering questions and helping with any issue.

FAP Turbo dynamics:

The internal logic behind the system is proprietary, so an inside look on how the FAP Turbo works is basically impossible.

However, let us have a look at what I think is the most innovative and interesting part of the FAP Turbo: the Scalper.

* The FAP Turbo scalper trades only on EUR/GBP, EUR/CHF, GBP/CHF and USD/CAD on a 15 minute chart (this cannot be changed).

* The scalper will usually attempt about 6 trades per day (depending on the market conditions it may trade just once). The profit range used by the software is around 6 to 15 pips.

* It will usually enter the market from the close of the New York session going into the Asian session, opening trades in the direction of the trend, which basically means it follows a known patter of the forex market.

* The stop loss parameter ranges from 50 to 100 and it is presumably determined by the FAP Turbo scalper depending on the currency pair used and recent price movements. Also, there seems to be some sort of time limit for closing trades.

* The FAP Turbo has a “stealth” feature that I first saw in the Forex Autocash robot, which is the ability to hide the read stop loss and take profit from the broker, to avoid price tampering and adjustments by some unscrupulous brokers that are believed to engage in this practice.

FAP Turbo Performance

The FAP Turbo is probably the first EA to publish real money statements in its website, and the performance displayed in those statements closely resembles that of other statements published by some users around the web.

Among friends and family I have my brother who has traded a $5,000 up to $19,758 in two months, but a friend of mine who recently purchased the FAP Turbo traded a $1,000 account up to $1,230 in one week and over the last three weeks he is back to $1,097. My personal account so far has taken me from $500 up to 1,954. The results vary depending on the settings you use, that is why it is very important to test the FAP Turbo on a demo account first, so you can adjust your risk parameters according to your own preferences. This will have an impact on the growth of your account, so make sure your read the pdf manual.

January was a particularly rough month for those trading with the FAP Turbo, because although it did not end up with an overall loss for the month, its performance slowed down considerably compared to the previous months. In February the software seems back on track but we will have to see how it ends by the end of the month.

Despite the January setback, the FAP Turbo remains the most reliable and profitable EA I have owned or reviewed, so if you are thinking about using an automated trading tool I think this is the one to look at.

For additional information about this forex software I recommend you to visit this FAP Turbo Review at: http://www.specialonlinebusinessreviewauthority.com

Article Source: http://EzineArticles.com/?expert=Alex_Cadens

In order to assess whether the FAP Turbo is a scam or not, the first thing to look at is its performance, because this software is intended for one thing only: make you money. So, does it?

A look at FAP Turbo performance

I purchase literally every forex trading software that comes out on the market, not because all of them work, but because I am always on the look for new trading tools, and I like to know first hand whether work or not. Usually, they do not.

However, when I purchased my FAP Turbo software, my decision was easier than usual for one simple reason: this software does not only provide you with back test results, but also provides statements of live trading taking place on real money accounts.

To me this move by the creators of the FAP Turbo was bold and risky, because if at some point the software underperformed, anybody would be able to notice it, so my simple guess was that if both back test results and live trading results were consistent, the FAP Turbo was very likely to be an accurate and effective EA.

Those results keep showing a winning percentage well above 90%, which is very high, and the drawdown of the software remains below 1% (the average EA will have 10 to 20%), which explains the smooth equity graph you will see on the statements page at the FAP Turbo’s site.

My personal record with the FAP Turbo

Since I downloaded and installed the FAP Turbo I have turned a special $500 account (which I set up to trade only with this EA) into $ 2,184, which up so far has been the fastest growth I have achieved with a fully automated forex software.

The FAP Turbo Scalper is a particularly strong component of the package, and as you will see once you download the software, it will allow you to trade EUR/GBP, EUR/CHF, GBP/CHF and USD/CAD.

So is the FAP Turbo Scam or Slam? You be the judge of that by taking a closer look at its performance and overall ratings compared to other forex trading systems at: http://www.specialonlinebusinessreviewauthority.com

Article Source: http://EzineArticles.com/?expert=Alex_Cadens

Having the correct software will make even the newest entrants to this financial arena up and earning money in lesser time than it used to take. This is something any FOREX trading robots review would mention. The people who created these systems claim that you do not need to understand all the complex algorithms required in assessing the movement of currencies. All you need to know is how to operate the software to be able to enjoy optimum performance.

The question will always come into mind whether these programs are scams or not. If a trader system promises you means of getting large amounts of profits from it in a short period of time, then it is most likely a scam. These programs can earn better proceeds for you, but there are a few underlying things that you have to learn in order to be able to get the profits you envision to achieve. This is why it is better to browse through software reviews first; more importantly, a FOREX trading robots review.

It is true that it is a lot simpler to use and that it saves you a lot of ordeal doing it the way it is done traditionally. One thing you have to consider, however, is that the foreign exchange market is a very critical and volatile market and it retains no memory whatsoever between the past trade and the future trade. The factors that affect the movement of currencies are complex and have reasons for their values to rise and fall. So, this is one aspect you also have to consider when choosing your automated system, especially if those products promise you great earnings based on past results.

Aside from using a robot, it is also a wise choice to try to learn something on how the market works, and any FOREX trading robots review would attest to that. Having knowledge on the currency pairs you are matching up against will give you better chances of analyzing potential opportunities for you to earn better. Try to consider the factors that affect them, such as political structure, economic status, business environment, and amount of domestic and foreign trades so that you can come up with the best assumption on how the currency will flow. Now that you are better armed, choosing the best software for your needs will be made easier by consulting a FOREX trading robots review first before making a purchase.

Want to take the guesswork out of Forex trades? Read this detailed review on the most popular and profitable forex trading robots that are making successful trades on autopilot for their traders.

Article Source: http://EzineArticles.com/?expert=Davion_Wong

In order to properly acquaint ourselves with these programs, two fundamental questions must be asked: what are automated Forex trading robots and what exactly do they do?

Automated Forex trading robots are not your typical “machines”, so to speak. They are not composed of mechanical working parts that do your business at your command. Rather, the term “robot” here is more of a symbolical terminology; that is, it helps you do your business by pointing out what shares are fit for purchase, when to buy them, and when to sell them. It is a software program based on artificial intelligence that is designed specifically for the conduct of stock market businesses.

This software helps a trader keep tabs on the trends of shares of stock; that is, the rise and fall of prices in relation to the volatility of the market. The program makes use of mathematical algorithms in order to make computations regarding “predictions” of prevailing trends. To validate the algorithms, the program bases them on the experiences of other traders as well as its own analysis of market trends.

Automated Forex trading robots constantly monitor the market. It takes into record the rise and fall of prices and “decides” on the best and most valuable stocks there are. It recognizes resistance and learns to detect a point where to make an entry point as well as an exit point for a particular activity.

Although purchasing this program is an expensive investment, it will prove to be worthwhile by reason of the returns you will realize, with proper sense and diligence, that is. Furthermore, they are not meant to make you rich while you sit back and relax. There will always be a need for human input in making the final decision whether to buy or to sell shares.

Once the software has been installed, all you have to do is to input the initial data to enable the program to have a basis on which to do its work. Once automated Forex trading robots are up and functional, they will give invaluable assistance to stock traders, as if a veteran trader is at their side.

Want to take the guesswork out of Forex trades? Read this detailed review on the most popular and profitable forex trading robots that are making successful trades on autopilot for their traders.

Article Source: http://EzineArticles.com/?expert=Davion_Wong

However, you do not just go to a supplier and purchase whatever software you find. This is not some computer gadget that you simply buy and install. There are matters you should consider before you buy that program, as well as matters you have to accept.

Let us face it, no matter how wonderful the program may sound, it just is not perfect. There is no such thing as a fully efficient program that will do your job for you. At best, automated Forex trading software should serve as guides for a potential stock trader. It should not be your bread and butter, so to speak, because entrusting your entire financial future on application-based decisions is a very bad idea.

Before you use automated Forex trading software, consider first trying out a demo version. This way, you learn the curves of business in the stock market without the pressures of having to use real money. The advantage of this move cannot be emphasized further. You get to learn how to trade without the risk of losing money.

Choose reputable and reliable products. You can do this by asking for advice from veteran traders and from those who have actually used the product. Do not rely on advertisements saying that you will realize a huge return of investment by just sitting around and letting it do all the work. Advertisements are meant to give you heaven and earth just so you would make a purchase. Learn from the experience of others before you make a choice.

You must develop your skills as well. Of course, you also have to learn how to trade without assistance. This way, you become surer of the decisions you make based on the recommendations. You have to use common sense and your personal instincts before making a move. Even trading robots make mistakes, and if your own robot makes one, a lot of money is usually lost.

You will also need a reliable Internet connection. Automated Forex trading software applications do not pull their data from the air. They must be constantly supported by sources found on the Internet. This means that you will have to invest in being online as well. And not just any connection will work best for broadband is usually recommended.

Human input is still better than blind reliance. Make sure that you only use automated Forex trading software as a guide, not as a master.

Want to take the guesswork out of Forex trades? Read this detailed review on the most popular and profitable forex trading robots that are making successful trades on autopilot for their traders.

Article Source: http://EzineArticles.com/?expert=Davion_Wong

These types of programs are quite a new technology, but the experiences of FOREX expert advisors who developed the system go way back. They were created by specialists in the business who fully understand how the market works and varies, and that is why they have put their knowledge into this product to make life simpler for new and old traders alike.

One aspect is that the buying and selling of currencies is done in several different time zones around the world, which run on a twenty-four hour a day cycle. Without the help of FOREX expert advisors, traders would need to monitor the particular currencies of those who want to bid and sell. And that by itself is a task that is close to impossible to do. They would then just have to make the best out of each day’s trading. But by employing the aid of a FOREX expert advisor, all the user has to do is set the proper signals and the robot will act accordingly to the tags instantaneously. This also eliminates emotion in trading and gives you better advantage in making those split second decisions that will be the cause of either losing or making money.

Try to stay away from systems that claim they can plot historical data to affect the chances of trades. This is not true at all. No record of past or present transactions can determine the outcome of a future trade, simply because these are independent outcomes not relevant to the trade at hand. There are very many and complex factors that determine the rise and fall of a particular currency value, and its history has no attachment to the present outcome.

Another thing that you can do to help find those correct opportunities is to do research on the currency pair you have chosen. Knowing all events and activities that affect the particular pair you picked to play with will help a lot in projecting or assuming a stake at a certain point in time. These factors may include economy of the country, system of government, trade policies, political and business atmosphere, and budget spending and appropriation.

There is really no perfect system but armed with the knowledge and the correct FOREX expert advisor by your side, you will improve your chances of making a profit in this very lucrative and high-stake market.

Want to take the guesswork out of Forex trades? Read this detailed review on the most popular and profitable forex trading robots that are making successful trades on autopilot for their traders.

Article Source: http://EzineArticles.com/?expert=Davion_Wong