Forex Trading Success - 95% of Traders Lose Because They Don't Understand These Key Points!

By Kelly Price
The paradox is - anyone can learn to trade successfully, as Forex trading success is a learned skill yet 95% of traders lose and they lose, because they don't understand these key points...Lets re state the fact 95% of traders lose money trading Forex - it's a big percentage and the reasons they lose, are because people use logic that helps them in everyday life and fail to understand why it causes losses in Forex trading.
Here are the reasons in no particular order of importance - there all important.
1. Trust an Expert
In plumbing, if you don't know how to fix a burst pipe, you get a plumber to do it for you. You pay X amount and you get a guaranteed result but this is not so in Forex. Most of the so called Forex Experts are anything but and cannot guarantee you a result and most sell there systems and advice because they can't make money themselves.
2. Forex Robot
Sounds nice and clever - putting technology to work to make you money, as in society technology advances have enriched our lives but the reality is technology doesn't help you win in Forex. Think about this...
50 years ago 95% of traders lost and the same ratio still lose today, despite all the advances in technology we have seen - it doesn't help but traders till fall for the ridiculous amount of Forex robots sold which are obviously going to lose because:
Most Forex Robots come with a track record based on paper, which is simulated backwards, knowing the closing prices. Trading becomes a lot harder when you have to trade not knowing where the price will go and the market teaches the users of these systems a hard lesson in the form on an equity wipe out
3. Effort and Cleverness Guarantees Success
Not so, hard work counts for nothing, only being right does and being clever? Won't give you an advantage, as trading is essentially simple and simple systems work best.
The Missing Ingredients for Success
From the above, it's obvious that normal traits that can lead you to success in society won't help you in Forex. There is however good news and it's the following:
Forex trading is all about keeping it simple in terms of method, taking responsibility for your destiny and trading with confidence and discipline based on inner understanding.
The real key is trading with discipline which comes from confidence and the right Forex education.
Discipline is the ability to execute your trading signals though periods of losses, keep them small and stay on track until you hit a home run. While discipline sounds easy, its not and any trader who fails normally lacks it.
Forex trading is a combination of a simple robust Forex trading strategy and the discipline to execute your strategy in line with the rules.
This has been the basis of trading success for decades and will never change. The fact is all traders have the potential to win but simply cannot get the right mindset and that's why they fail.

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Online Forex Trading: How to Trade without Going Broke

Learning the basics of online forex trading can be rather complicated because before you get started, you have to learn the lingo that is used. There are a lot of different terms that are used that can make it all seem very confusing.
Your first step to forex trading online is to open an account. There are a number of different agencies or brokerages that you can use; it only takes a little bit of investigating to find the one that gives you all of the benefits that you would like to have. Some agencies offer different benefits than others, so always do your research carefully.
Once you open an online trading account, you add money to it as agreed. For some accounts, you have to use PayPal; for others, you can use your credit cards or other banking information. Another bonus to some accounts is the ability to use practice accounts where you start making trades and charting your progress just like you would in a real forex trading situation online, but it does not cost you any real money.
Once you are done with the practice online forex trading account, you can start making real trades. This is where your knowledge of the terminology will come into play. Not only do you need to know that every online forex trade is done in pairs, but you will also need to know other words that can seem like code if you don't know them.
All online forex trading is done in pairs with one currency being called the "base currency" or primary and the other being the "counter currency" or secondary. When you see a pair of currencies listed on the forex trading market, the code for the first will be listed first and the secondary currency listed after. You can read the listings by looking at the codes for these currency pairs.
In addition, you will need to know that forex trading online is done in lots - ranging in size from a standard lot to a micro lot. Before you start making large lot trades, you will probably want to start off with a few micro or mini lots instead. The more successful trades you make with forex trading, the more potential leverage you will be allowed to have. Leverage is like a loan from the broker, which means that you can ask for certain amounts of trade volume even though it is technically higher than the amount of money you have in your online forex trading account.

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Forex Trading Find The Right Automatic Trading System

Forex Trading  |  Written by ForexCycle.com

Well you are trading currency on the foreign currency market and as a consequence you've recently been informed we have a far better solution to accomplish your investments without having to involve your current brokerage. Precisely what you need can be described as trustworthy Automatic Trading System. There are a number of Automatic Trading System products that you can purchase. Each will function in a very much the same method, but the key distinction between each system may be the experience associated with the creator(s) as well as precisely what method the particular Auto Trading System has been based upon. The actual base method for the package is actually what sorts out the men from the boys. Should you be serious, I would like to be able to share with you some capabilities which can be significant to think about in the Automatic Trading System which you are likely to purchase and use to invest on the foreign currency market. A profitable created Automatic Trading System: integrates years of forex trading experience, mastering how the market behaves, integrating long-term experience into the method, programming computer systems to master the particular method. In the same manner you just cannot open up your car hood in order to rebuild the engine without years of mechanical experience. A truly fantastic Automatic Trading System has to be meticulous in every single market place situation. That is what rules, it again makes the vital big difference. Commercial Finance institutions know it and that's how these companies have generated substantial profit margins for decades. Your ultimate Automatic Trading System must be making absolutely consistent and even results for in addition to long period of time never making average outcomes for a specific time period. Your foreseeable future in the foreign currency market depends upon just how good your Automatic Trading System can adapt to new market forces, the difference somewhere between being able to generate profits and generate losses can be extremely fine. There are actually hardly any Automatic Trading Systems that can adapt to long term market forces. Of course an additional crucial have to have feature in the Automatic Trading System is that the software must be invisible to your current brokering service. A few, not all broker agents can begin to play games with your account, such as raising the spread of any currency pair you might be buying and selling or maybe not allow you from trading together with your Automatic Trading System. An inbuilt sleuth mode allows you and your Automatic Trading System the flexibility to be able to make trades at anytime night or day every time the forex market is actually open. I guess the last thing to go over will be the saving it and operation of the Automatic Trading System. Again these must be simple, a total newbie ought to be able to down this system and also have it functioning within a few minutes from downloading it. The operation guide book ought to be laid out in an simple structure consequently every single step is completely thorough and follows on from one another. Anyone should be able to confirm all of the earlier mentioned product or service benefits within the product or service sales information when undertaking your search to the most suitable Automatic Trading System before you purchase. If the sales details has only pointed out some product or service benefits it is a signal to move on to your next product offer. With the right tools you can trade the Forex Market - Find Your Automatic trading System Here http://automatictradingsystem.net Article Source: ForexArticleCollection.com

The Foreign Exchange Market: The Fastest Growing Marketplace In The World

Just over 10 years ago, few investors were even aware of the forex market due to the fact that the only players allowed were large hedge funds, banks, and very wealthy investors.  At that time, the minimum contract size a trader could hold was usually $1,000,000, so small, private investors were not able to trade the FX Market.  The advance of technology and the internet, however, has changed that.  Case in point, if you think back to how you heard about the forex market, and how you learned about it at first, chances are it was on the internet!

The advance of technology throughout the 1990’s allowed retail brokers to begin opening up shop in the late 90’s, and these retail shops began allowing clients to trade in the FX Market with positions as small as $100,000, and eventually many  brokers began allowing clients to trade positions as small as $10,000.

Therefore, the FX Market has literally exploded over the last 10 years.  Today, average daily turnover in the FX Market is around $4 trillion, and this figure is expected to double in the next 10 years.  The FX Market is not only the biggest financial marketplace in the world, but it also has one of the greatest and most aggressive growth prospects.  However, the unfortunate truth is that most traders who decide to trade the FX Market fail and lose money, and most traders actually lose everything they deposit.  Industry legend tells us that nearly 95% of traders lose money.  That is a daunting statistic.  The reasons for failure are many, but if you boil it down to the most basic element, the forex market is a high risk investment vehicle, and most traders do not adequately consider these risks.  Let’s examine a few of the primary risks of foreign exchange trading.

Leverage

This is one of the leading reasons that traders are attracted to the forex market.  Leverage has been as high as 400:1 in the FX Market.  Recently, the NFA limited regulated brokers in the United States to 50:1 leverage, but that is still far more leverage than other financial markets offer traders.  50:1 leverage means a trader can control a $50,000 position with only $1,000 deposit in his account.  The trader then gets to keep the profit his position accrues, but high leverage can also blow up an account very fast.  In this example, if a trader were to take a $50,000 position in the FX Market, that would cause each 1 pip (minimum price movement) to be $5.  That means that if the market moved 200 pips against the trader, the trader would lose his entire $1,000 investment.  Furthermore, a currency pair can easily move 200 pips in just a few hours during times of heightened volatility, so that means a novice trader, or even an experienced one who does not respect risk, can lose his entire account in a matter of hours.

Strong Volatility

Prices in the FX Market move extremely fast, and this poses a significant risk for new traders and experienced traders alike.  The degree and swiftness of price moves in the FX Market can literally destroy an account in a matter of minutes during a key news release, and new traders rarely have the education, money management skills, or trading psychology to effectively deal with this fast-moving marketplace in an efficient manner.  Good forex software, however, can help traders analyze the market more effectively.

The forex market undoubtedly offers traders the potential for huge gains, but the potential for huge loss is just as real, and the unfortunate truth is that the great majority of traders experience the latter.   By:Written by ForexCycle.com 

Online Future Trading – Rules Of Thumb

Setting Goals For Online Future Trader

In this section we will be covering the few important rules that should never be broken in trading online future. If you can apply these rules consistently, and with the right amount of discipline, you will be well on the way to being a profitable online future trader. The following are rules that can significantly improve your chances of online future success if they are understood, practiced, and implemented consistently in your trading. These rules have been learned the hard way, mostly through trial-and-error, and the inevitable mistakes that everyone makes when they start a trading business.
Setup & Implement Specific Goals & Objectives For Trading Online Future
Few things are more important to your online future trading success than having set specific goals and objectives for what you are trying to achieve. It is amazing to me how often we hit our targets, meet our objectives, and reach our goals best when we speak aloud and write them down.
For any business to be successful it must have measurable objectives that you are actually able to achievable. In online future trading, the primary objective is obviously to make money, but it is important to have other objectives that are not strictly cash related.
We must always remember that reward and risk go hand-in-hand in trading online future and that we can’t expect to achieve high returns without planning and bracing for high risk (draw-downs).
Your online future objectives and goals have to be very specific to you, but they must also include the following characteristics if they are going to be useful:
• Be measurable in accordance to completion and timeframe involved
• Be realistic and achievable
• Be worth the time and effort involved
• Be positive
As an example, here are some actual objectives (Please bear in mind that this is only a partial list):
• Create 2 new positive-expectancy online future trading systems each and every year
• Seek to make less errors implementing your online future systems each year
• Work to achieve a return to maximum draw-down ratio of 1.5:1
• Take 2 weeks vacation from trading during each year
You should also note that only one of them is meant to be about making money in online future, and that has a measurable objective that is very similar to a draw-down, and it is not guaranteed. If you know what you are trying to gain in your online future trading, and when you are trying to achieve it, the whole of your efforts will be more focused on meeting your objectives.
This also helps to guide you to only pay attention to things you really want to achieve with your time and resources that you have available. This will also give you a way that you can effectively measure the success and progress of your online future strategy.
Generally online future traders who have well-defined objectives will be much more successful than those that do not have pre-defined goals.  By:http://www.forextradingstrategies.org/online-future.php

Basic Stock Strategy

Different Stock Strategies & How They Can Help Your Stock Trading

Technical analysis and fundamental analysis are the two basic areas of strategy in the stock market which is the exact same as in the equity markets. However, technical analysis is by far the most common strategy that is used by individual stock traders. Here is a brief overview of both forms of analysis and how they directly apply to stock trading:
Fundamental Analysis In stock Trading
If you think it’s hard enough to value one company, you should try valuing a whole country instead. Fundamental analysis in the stock market is often an extremely difficult one, and it’s usually used only as a means to predict long-term trends. However it is important to mention that some stock traders do trade short term strictly on news releases. There are a lot of different fundamental indicators of the currency values released at many different times. Here are a few of them to get you started:
Non-farm Payrolls
Purchasing Managers Index (PMI)
Consumer Price Index (CPI)
Retail Sales
Durable Goods
You need to know that these reports are not the only fundamental factors that you have to watch. There are also quite a variety of meetings where you can get some quotes and commentary that can affect stock markets just as much as any report. These meetings are often brought out to discuss any interest rates, inflation, and other issues that have the ability to affect currency values.
Even changes in how things are worded when addressing certain issues such as the Federal Reserve chairman’s comments on interest rates; can cause a volatile market. Two important meetings that you have to watch out for are the Federal Open Market Committee and Humphrey Hawkins Hearings.
Just by reading the reports and examining the commentary, it can help stock fundamental analysts to get a better understanding of any and all long-term stock market trends and also to allow short-term traders to be able to profit from extraordinary happenings. If you do decide to follow a fundamental strategy, you will want to be sure to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also be able to provide you with real-time access to this kind of information.

Technical Analysis For stock Traders
Just like their counterparts in the equity markets, technical analysts of the stock trading market analyze price trends. The only real difference between technical analysis in stock and technical analysis in equities is the time frame that is involved in that stock markets are open 24 hours a day.

Successful Option Trading Tips

The Right Moves To Ensure You Succeed In Option Trading

FX trading is always priced in pairs between two different types of currencies. When you make a trade, you have to buy one option and sell another at the same time. If you want to exit the trade, you must buy/sell the opposite position. For example, when you think the price of the Euro is going to rise against the US Dollar. In order for you to enter FX trading, you will have to buy Euros and sell US Dollars.
If you want to leave FX trading, you will have to sell Euros and buy back US Dollars. You will be hoping that you were right in your guess and that the exchange rate for EU/USD has actually risen, which means that you will get more Euros back than when you bought them, which is how you will make a profit from FX trading.
These days just about every FX trading broker is claiming to have the tightest spreads in the industry. But marketing does have the ability to be deceiving. The topic of spreads in the FX trading spot market is very complicated and often not easy to understand. However, nothing affects your FX trading profitability more.
First of all in order to understand the FX trading spread, you need to know what it is. A spread is the difference between the ask price (the price you buy at) and the bid price (the price you sell at) that is quoted in the pips. If the quote between EUR/USD at a given moment is 1.2222/4, then the spread equals 2 pips. If the quote is 1.22225/40, then the FX trading spread is going to equal 1.5 pips.
The FX trading spread is how brokers make their money. Wider FX trading spreads will result in a higher asking price and a lower bid price. The consequence to this is that you have to pay more when you buy and get less when you sell, which makes it more difficult to realize a profit.
FX trading Brokers generally don’t earn the full spread, especially when they hedge client positions. The FX trading spread helps to compensate for the market maker for taking on risk from the time it starts a client trade to when the broker’s net exposure is hedged (which could possibly be at a different price).
FX trading Spreads are important because they affect the return on your FX trading strategy in a big way. As a trader, your sole interest is buying low and selling high (like options and commodities trading). Wider spreads means buying higher and having to sell lower. A half-pip lower spread doesn’t necessarily sound like much, but it can easily mean the difference between a profitable FX trading strategy and one that isn’t profitable.   By:

When To Cut Your Option Trade Losses Short

These Simple Rules Can Make A Huge Difference To Your Next Option Trade

This is actually the sister rule to the one mentioned above, and is usually just as difficult to do (even if it is very easy to define). In the same way that profitability comes from a few large winning option trades, capital preservation so comes from avoiding the few large losers that the market will see fit to send you each year.
Setting a maximum loss point before you enter the option trade so you know ahead of time approximately how much you are risking on this position is pretty straight up.
You just have to have an exit price that tells you that your option trade is a losing one you should exit before it gets any bigger. Because of gaps at the open, or limit moves in options we can never be 100% sure that we can get out with our maximum loss, but simply having the rules, and always sticking to them will save us from the nasty option trades that just keep on going against our position until we have lost more than many winning option trades can make back.
If you have a losing position that is at your maximum loss point, you should just get out of the option trade right away. You can’t hope that it will turn around for, as it isn’t common sense.
Being that option trades are either winners or losers, and this one is shouting ‘Loser’ at you, the chances that it will turn around and become a large winner is decidedly small.
Why would you want to risk any more money on a option trade that has already shown itself to be a loser when you could simply close it out (accept the loss) and move on. This will leave you in a much better place financially and mentally, than holding on to your option trade and hoping it will go back your way.
Even if it did do this, the mental energy and negative feelings from holding the losing option trade are just not worth it. This is why you should always stick to your rules and exit a option trade if it hits your stop point.
Never Add To A Losing Option Trade
One of the few option trade management rules that you should never break is ‘Never add to a losing option trade’. Trades are split into winners and losers, and if a option trade is a loser, the chances of it turning right around and becoming a winner are too small for you to want to risk more money on. If it actually is a winner disguised as a loser, why not wait until it shows it is a winner before you add to it.
If you do this you will notice that nearly every time the option trade ends up hitting your stop loss and does not change direction. Sometimes the option trade turns around before it hits your stop and becomes a winner and you can count yourself very lucky if it does.
Sometimes the option trade hits your stop loss and then turns around and becomes a winner and you can count yourself unlucky. Whatever happens, it is never worth adding to a loser, hoping that it will eventually be a winner. The odds of success are just too low to risk more capital in addition to the initial risk.   By:

Setting Goals For Online Forex Traders

In this section we will be covering the few important rules that should never be broken in trading online forex. If you can apply these rules consistently, and with the right amount of discipline, you will be well on the way to being a profitable online forex trader. The following are rules that can significantly improve your chances of online forex success if they are understood, practiced, and implemented consistently in your trading. These rules have been learned the hard way, mostly through trial-and-error, and the inevitable mistakes that everyone makes when they start a trading business.
Setup & Implement Specific Goals & Objectives For Trading Online Forex
Few things are more important to your online forex trading success than having set specific goals and objectives for what you are trying to achieve. It is amazing to me how often we hit our targets, meet our objectives, and reach our goals best when we speak aloud and write them down.
For any business to be successful it must have measurable objectives that you are actually able to achievable. In online forex trading, the primary objective is obviously to make money, but it is important to have other objectives that are not strictly cash related.
We must always remember that reward and risk go hand-in-hand in trading online forex and that we can’t expect to achieve high returns without planning and bracing for high risk (draw-downs).
Your online forex objectives and goals have to be very specific to you, but they must also include the following characteristics if they are going to be useful:
• Be measurable in accordance to completion and timeframe involved
• Be realistic and achievable
• Be worth the time and effort involved
• Be positive
As an example, here are some actual objectives (Please bear in mind that this is only a partial list):
• Create 2 new positive-expectancy online forex trading systems each and every year
• Seek to make less errors implementing your online forex systems each year
• Work to achieve a return to maximum draw-down ratio of 1.5:1
• Take 2 weeks vacation from trading during each year
You should also note that only one of them is meant to be about making money in online forex, and that has a measurable objective that is very similar to a draw-down, and it is not guaranteed. If you know what you are trying to gain in your online forex trading, and when you are trying to achieve it, the whole of your efforts will be more focused on meeting your objectives.
This also helps to guide you to only pay attention to things you really want to achieve with your time and resources that you have available. This will also give you a way that you can effectively measure the success and progress of your online forex strategy.
Generally online forex traders who have well-defined objectives will be much more successful than those that do not have pre-defined goals.  By: http://www.forextradingstrategies.org/online-forex.php