Forex Trading can be a difficult business. In fact it is a ruthless business. Many have venture into forex only to find themselves losing money. In order to be successful in forex, you need to have the right kind of personality when trading. Changing your personality while trading can get you ahead of the race in forex.

So, why do you need to change your personality when trading forex? Let's look at forex, it is ruthless, unmerciful, does not care who you are or who your father is. So if you are a kind person, doing a hundred good deeds everyday, do you think forex will let you profit from it? Surprisingly, no.

Here's my point, to trade forex, you need to keep all of your emotions in a box, locked it and throw away the keys. You need to be another person when trading forex. Emotions can make you lose money in forex. Let's look for example, you are on a losing trade, you know you should cut your loss short, but something tells you, that it will be okay, the market will have a reversal or something pretty soon. So you leave your trade losing in the hope of it will turn and eventually make you a profit.

Another example is, you saw this candlestick was moving really quickly all of the sudden, then something tells you to catch a ride on it, and you need to hurry or you'll miss out. And so you enter the market, only to find yourself looking at a reversal and eventually your trade turn to loss.

That is why it important to keep those emotions locked. You need to be a robot when it comes to forex trading. And most people cannot achieve that because as humans, we are born with emotions.

If you find it hard to lock your emotions up during trading, then don't trade at all. You will lose money. Do what most elite trader do, use an automated trading system. Most elite forex trader find it easier to make money in forex using an automated trading system, because it does not involved human emotions.

There are many automated forex trading system out there, but only a few that is capable in making consistent profit. For a complete guide to help you in finding a profitable trading system
By Dylan Jonathan

Forex market is huge and is open for everyone who wants to exchange foreign currencies. Benefits from trading in forex are endless. For example, FX market is open for trade 24/7 all over the world. Forex market is extremely liquid and currently more than 2 billion dollars are changing hands every day. But every experienced forex trader can tell you, that maintaining all of your forex trades is very hard and usually takes a lot of time. Lucky for us, traders, the solution for our problem has finally come - automated forex robots.

Automated forex robots help you to control and maintain all of your trades automatically. In addition, some of the robots have the feature of working on autopilot, making profit for you. They just search and pick up signals when and where to close or open your trades, maximizing your revenue.

The choice of automated forex robot usually is hard, as there are many automated trading systems out there, but only few of them are actually worth the price. There are also very expensive automated forex robots, which could cost up to ten thousand dollars, but are not even worth a cent. I myself tried dozens of such kind of programs, but I liked only few of them.

The robots will certainly help you with the process of earning money on forex, but they will not replace your trading skill. So think twice before opening or cling your trade, even if such kind of inventions are appearing, they are only to HELP you, not to lead you to success.

Personally I give a favor to Forex Tracer, which in my opinion is the best automated forex robot. You can get a free report on automated forex robots and read my complete review of Forex Tracer on my website. To check it out just click this link http://www.automatedforex.info

Foreign currency trading or FX currency trading is the new age buzzword for the smart investors. In the global market of foreign currencies, prices fluctuate against one another and change value over time. This creates the opportunity for investment by trading one currency against the other. The dramatic evolution of communication technologies in recent years made it possible for millions of small individual investors to trade forex which was not open to them earlier.

According to a recent study, currencies worth more than $1 trillion are traded daily in the global forex market. Global political and economic events influence forex currency trading. The rates of currencies are determined by the investors’ attitude influencing the market. So if you were capable of foreseeing these developments, you can make profits in FX currency trading. On the other hand, if your assumptions are not correct, you may suffer huge losses. So the key to successful forex currency trading is knowledge.

Forex trading involves currency transactions between banks, investment funds, forex brokers and traders. The demand and supply of a particular currency and investors' expectations determine the market price of that currency. There is no physical location of the market and it is a virtual market.

Four “currency pairs” dominate the global forex currency trading market. These are Euro versus U.S. Dollar, US Dollar versus Japanese Yen, US Dollar versus Swiss Franc, and US Dollar versus British Pound. So for any investor, it will be wise to hold a currency that appreciates in value in relation to the other currencies. For example, you may buy 50 British Pounds for US$100 and hold the Pounds for a while. When the value of Pounds increases in relation to US Dollars, you may sell those Pounds to earn $120.

Analyzing forex currency trading market is also equally important. There are two types of analysis: “fundamental” and “technical”. Fundamental analysis takes into account the economic conditions, political events, situation of emergency, etc. to derive the trend. Technical analysis, on the other hand predicts the future trend on the basis of past prices and trends. Fundamental analysis explains the reasons behind price movements and attempts to predict changes in price and market trends. Traders and investors adopt a hybrid method of analysis based on both technical and fundamental analysis for their Fx currency trading.

Forex currency trading is sometimes described as one of the riskiest financial markets. However, by choosing the reasonable leverage size, traders can minimize their risks. The Forex market is a highly speculative in nature and the ability to analyze price behavior becomes an invaluable asset for any trader or investor.

Since every country is involved in forex currency trading, the market is open round the clock. Irrespective of geographical location, any investor can open an account and buy and sell in any quantity of forex currencies from anywhere in the world. The FX currency trading offers fantastic opportunity for wealth provided you know the basic rules and regulations of the market. Therefore, before starting FX currency trading, do your homework and read as much as to maximize your knowledge hence profits.By Paul Bryan

Make money trading currencies on-line. Currencies are the most actively, heavily traded financial instruments in the world. The liquidity of the forex market directly translates into several critical benefits for traders that can gain an understanding. There are companies and trading schools that you can find on the Internet that will train you for a fee or others that you can sign up with and become a member and many will try and show you the ropes. Some companies offer free demo’s to help train you. Its like using play money until you get the hang of it. All anyone really needs is a computer. So you should be able to operate with a very low overhead. With excess to a phone line or an internet wireless computer card you should be all set. And you can start with very little cash. I know people who have started in this game with as little as $300.00. And I’m sure there is still others who have started with even less. The public has just in the last few years been able to participate in this trade. It wasn’t very long ago this turf was exclusively for governments and large international and prime bankers.

Forex trading generates around $1.9 trillion per day in volume, making it by far the world's largest, most liquid market. Serious traders know that the futures and equities markets provide only limited liquidity when compared with the spot currency market.

In addition, though there are obviously many currencies around the globe, roughly 80% of all daily trading is concentrated in the major G-7 currencies. By contrast, the futures market is fragmented among hundreds of types of commodities listed at dozens of exchanges, and equities market volume is spread across some tens of thousands of listed stocks.

Order Execution

The deep liquidity of the forex market ensures that bid/ask spreads are typically very tight, and the market can absorb large trades quickly and easily. Learn More…
24-Hour Trading no matter where you are located
You get consistently tight bid/ask spreads, day or night, because the currency market offers around-the-clock liquidity. As a trader, this allows you to react to economic and political events immediately. Learn More…

Risk Management

The forex market's size and nearly non-stop activity means that it tends to trade in a more orderly fashion than futures markets. Dangerous trading gaps and limit moves are all but eliminated. You'll ordinarily be able to get in and out of positions with ease.

No Market Manipulation

Thin stock and futures markets can be pushed up or down by specialists, market makers, commercials, and locals. Given the sheer size and depth of the spot FX market, however, real buying/selling by banks and institutions is required to move prices. Any attempt to manipulate the forex market usually is futile.

Trade FX and Lower Your Transaction Costs

Every trader should know that transaction costs can reduce profits or exaggerate losses. Due to the decentralized, electronic nature of the FX market, transaction costs are far less than the costs associated with trading either stocks or futures.

No Exchange Fees

The absence of any centralized exchange, such as the NYSE or the CME, means that there are no exchange fees with FX. Whereas equity and futures markets take small pieces of each transaction, FX is an over-the-counter market, which means that participants deal directly with one another, typically via the Internet.

No Commissions

FX costs are further reduced by the efficiencies created by a purely electronic marketplace that allows clients to deal directly with other traders or a dealer, thereby eliminating middlemen, brokers, commissions, and ticket charges. There are no commissions charged when you trade FX.

High Transparency

Every financial market has a spread between the bid price and the offer price. In futures and option markets, current bids and offers often aren't displayed, so the real cost of the trade is hidden. By contrast, in the FX market, you can always see current bids and offers, so you'll always know the true cost of the trade.

Tight Bid/Ask Spreads

Because the FX market is global, continuous, and always liquid, traders benefit from tight, competitive pricing both day and night, making this an excellent market choice for aggressive short-term traders and longer-term position traders alike.

Free Streaming Quotes

Because FX is a decentralized marketplace, real-time, streaming prices are absolutely free. Real-time, streaming futures data, in particular, has always been exorbitantly priced, and as more futures exchanges convert from membership organizations to for-profit public enterprises, it is reasonable to assume that such costs may increase. This trend is likely to make the FX market's cost advantage even more pronounced.

24-Hour Currency Trading

Currency trading essentially follows the sun around the world, so you can buy and sell currencies 24 hours per day. If there's a market-moving event, day or night, you can take advantage of it.

- Somewhere around the world, there's always a major financial center open where banks, hedge funds, international corporations, and individual speculators are trading currencies. If you're an event-driven trader, the 24-hour nature of the currency market allows you to react to virtually any important development, regardless of when it occurs.

- By contrast, the centralized exchanges in the stock and futures markets effectively close at the end of each business day, and after-hours market liquidity can be thin and occasionally treacherous.

- Nearly continuous trading and deep liquidity mean there are fewer dangerous gaps in the currency market, so you won't have to endure the unfortunate surprise of a market that closes one day and reopens the next at a drastically different price.

- Stock and futures traders who carry positions overnight are exposed to the very real risk that positions may not be able to be immediately liquidated, should that become necessary or desirable. When trading resumes the following day, prices may have moved substantially from the previous afternoon's close.

Major Financial Center Chicago Time GMT

Tokyo Open 6:00 PM 00:00

Tokyo Close 3:00 AM 09:00

London Open 2:00 AM 08:00

London Close 11:00 AM 17:00

New York Open 7:00 AM 13:00

New York Close 4:00 PM 22:00

Forex Market Overview

Many active traders have come to love forex because of its strong advantages and exciting opportunities. Not sure how the forex market works? Here's a quick overview to help you get started.

Factors Effecting the Market

Currency prices are affected by a variety of economic and political conditions, such as interest rates, inflation, and political stability. Moreover, the central banks of various governments occasionally intervene in the forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely, by buying in order to raise the price. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and depth of the forex market makes it practically impossible for any single market participant to "drive" the market in one direction for any length of time.

Economic Growth

Investors want to be sure that they are investing in a solid economy that is achieving steady growth. Currency traders looking to assess the economic growth of a country will look at unemployment, trade, and GDP data.

Interest Rates

Money tends to follow interest rates. If interest rates go up, money will flow into the country from all over the world as investors seek to capitalize on higher returns. To determine whether interest rates will rise or fall, investors pay attention to economic inflation indicators, as well as speeches by influential figures. Generally, the timing of interest rate moves is known in advance. They take place after regularly scheduled meetings by the Bank of England, The U.S. Federal Reserve, European Central Bank, Bank of Japan, and other central banks.

Political Stability

Election turmoil, changes of government, high unemployment and international conflict all make investors cautious to put their money in a given country. Investors will watch for major news that comes out of a country.

Forex is a Decentralized, OTC Market

The forex market, unlike other financial markets, has no physical location or central exchange. Rather, it's an over-the-counter (OTC) or "Interbank" market, due to the fact that participants deal directly with one another via the telephone or an electronic network. The forex market is unique in that there's live, active, continuous trading 24 hours per day for most of the week. Somewhere around the world, there's always a major financial center open where banks, hedge funds, international corporations, and individual speculators are trading currencies. Essentially, foreign exchange trading follows the sun around the world, allowing traders to buy and sell currencies whenever it's convenient, or whenever the need arises. The world's currencies are on a floating exchange rate and are always traded in pairs, such as Euro/Dollar or Dollar/Yen. Forex transactions always involve the simultaneous purchase of one currency and sale of another – in other words, in every open position, an investor is long one currency and short the other.
FX traders express a market position in terms of the first currency in the pair. For example, a trader who has bought Dollars and sold Yen (USD/JPY) at 103.99 is considered to be "long" the USD/JPY (pronounced "Dollar/Yen"). Quoting convention is to display one unit of the first currency in the pair expressed in terms of the second currency in the pair. By way of example, if the USD/JPY pair is quoted as 1.6433, this means that $1 is the equivalent of 1.6433 Japanese Yen.

Regulation of the Forex Market

The Commodity Futures Modernization Act of 2000 (CFMA) placed responsibility for overseeing and regulating the foreign exchange market with the Commodity Futures Trading Commission (CFTC). Generally, if a brokerage company offers over-the-counter (OTC) foreign exchange trading to retail customers, it must be registered as a Futures Commission Merchant (FCM) is subject to strict capital requirements.

So good luck and have fun and hopefully make some money.

http://www.lagunajournal.com

Michael Webster
301 Forest Ave., Laguna Beach, CA 92651. Ph. (949) 949-7121. Fx. (949) 583-0154. e-mail mvwsr@aol.com http://www.michaelwebster.net Mr. Webster is a United States Citizen of Native American Heritage.

America's leading authority on Venture Capital/Equity Funding, Trustee on some of the nations largest trade Union funds. Labor Law, Teamster Union Business Agent, General Organizer, Union Rank ñ - File Member Representative, Grievances, NLRB Union Representative, Union Contract Negotiator, Workers Compensation Appeals Board Hearing Representative and a noted Author, Lecturer, Educator, Emergency Manager, Counter-Terrorist Specialist and Business Consultant. Michael Webster is a world-renowned expert on global economics, financing, emergency management, preparedness and terrorism. He is the author of Venture Capital, the Christian Covenant the RedRoad, the LemonFast. And the United States Civil Defense Emergency Training Manual. Mr. Webster has Collaborated on a Community Emergency Response Team (CERT) course having over 300 plus pages

If you want to buy a mechanical forex trading system there are plenty on the net that you can buy but 99% of them don't work as they have never been traded and come with simulated track records. On the other hand, you can use this free one which is simple and profitable.

The trading system we are going to look at is incredibly simple but don't assume that just because it's simple it doesn't work - it does. You can make big profits with it by incorporating it in to your forex trading strategy.

This system was developed by trading legend Richard Donchian in the late seventies for trading commodities and many traders have used over the years. While it was developed to trade commodities it works well in currency markets because they trend.

The system is called "The four week rule" and it does exactly what its name implies.

Here are the rules:

1) Close short positions and reverse to a long position when a price exceeds the highs of the previous 4 weeks.

2) Close long positions and reverse to a short position when a price falls below the lows of the previous 4 weeks.

That is the system and you couldn't get simpler than that.

The above will work very well in trending markets but in sideways and consolidating markets it will get chopped, so you can consider using a filter. Enter trades on the 4 week rule - but exit the position on a shorter time period and go flat.

1 or 2 week cycles are ones to consider. You would then simply re enter on the next 4 week signal.
I have used this currency trading system as part of my strategy for years and it works -most traders won't use it though, despite the fact its proven and it works - Why?

1. It's too simple.

Most people discount it purely on this, although simple systems always tend to beat complicated ones as they are more robust.

2. It takes discipline to follow, as it is not fussy about exact market timing.

Most traders are obsessed with buying low and selling high (even though it doesn't work!) so can't follow it and most traders lack discipline anyway.

3. Its not trendy.

Most forex traders like trendy or mystical systems Fibonacci, Elliot Wave, Neural networks, artificial intelligence etc which are all a bit more glamorous than a system from the seventies, with one parameter.
Make no mistake though, this system beats most on the net that are sold and it's free!

While it may be simple, keep in mind many famous traders have used it such as, Richard Dennis, the turtles and many more - if it's good enough for them, it's good enough for you.

You can of course just use the general principle in your forex trading strategy as a currency trading system it is based on the 4 week cycle of price and you will be surprised at how important it is.

To get diversification you can trade currencies with other markets as well and diversify. For example -the energies and interest rate markets are good trending markets to combine with currencies.

The 4 week rule is free and if you are serious about your forex education, take a look at it and it will help you enjoy forex trading success.

NEW! FREE PDF REPORTS
CATCH THE BIG TRENDS NOW!

Get free essential trading Pdf's on catching the big profits from the big moves and more on Profitable Forex Trading Systems visit our website at: http://www.forextrendfollowing.com

Here we will discuss 3 tips which if you include them in your FX Trading strategy can turn a trading account making marginal money into big forex profits. These tips don not conform to the consensus way of making money but most forex traders don't win!

1. Cut Back Trading Frequency

Most traders simply trade too much and you need to remember you don't get rewarded for the amount you trade - just how many trades you get right and the profit they produce. The high odds big trades only come around a few times a month so look for them and trade them.

For example, I know traders who trade less than 10 times a year yet make 100% + annual profits and you can to.

Forget short term trading like forex scalping or day trading and hit the high odds trades only - the big trends that last for weeks or months. Look at any forex chart and you will see them, so lock into them and trade them.

2. Hit High Odds Trades Hard

When you have a high odds trade - hit it hard in terms of money you are prepared to risk. You hear a lot about risking 2% per trade but for a retail trader this is ridiculous. If you invest $1,000, that's 20 bucks and your risk is so small, your going to get stopped out by random volatility. If you have a high odds trade risk up to 20%.

This is not being rash. If you have a high odds trade your confident in then you need to take a meaningful risk to make a worthwhile profit.

3. Don't Dilute the Above!

Only run high odds trades and forget about diversifying. Diversification is supposed to reduce risk and maybe it does - but one fact is clear, it will dilute your profit potential at the same time.

Why when you have a great high odds trade do you want to dilute and reduce its profit potential?

Many people diversify so much, they never make anything! So don't bother spreading trades around, hit the high odds trades, risk as much as you can afford and focus on it.

Many traders try so hard to reduce risk they actually create it and ensure they will never make any decent gains.

Trading is all about taking risk but this is not being rash, it's about taking calculated risks, at the right time and knowing when to bet, how to bet and what stake to risk.

Your not trading forex to make 10 or 20%, you can do that with less risk elsewhere!

Your out to make 50 - 100% or more and the above is really common sense and if you try it, you will reduce your risk, turbo charge your gains and enjoy currency trading success.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf's, with 50 of pages of essential info and more on FX Trading Strategy visit our website at: http://www.learncurrencytradingonline.com.

FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.

Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.

But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind
has to be open and the slate has to be clear for starting out fresh with the CORRECT information.

So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.

As a successful trader said, Trading FOREX is like picking money up off the floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in the industry
have also said, Trading FOREX is like having an ATM machine on your own computer.

Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it:

The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.

But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.

What FX traders do is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks.

So, you're probably wondering where it's at ... or ... how to access the FX market?

The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.

Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.

Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:

Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is
simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate
between the two currencies.

In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.

Example:

EUR/USD last trade 1.2850 - One Euro is worth $1.2850 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets. This means that 1,498,574 skilled traders could each take 1 million dollars out of the FOREX market every day and the FOREX would still have more money left than the New York Stock exchange every day!

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.

There's plenty of money to be made using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them to profit immensely. And, with only 5% of the daily turnover of volume coming from banks, government and large corporations who need to hedge, the other 95% is for speculation and profit.

http://www.1-forex.com

Omar Vargas; Forex trader and freelance writer. http://www.1-forex.com/