Month: February 2011

By Danielle Franklin

Practicing is over! You have done well with demo account and you have a fair understanding of forex, money management, charts and emotions involved in trading. You finally made big change – switched from demo to real account with couple of hundreds. But for some reasons, things don’t go as smooth as you expected. Why are you getting stopped almost on every trade? Why every insignificant retrace or movement takes you out of the game? Is the initial balance too small to handle the market dramas?

Every beginner in forex has experienced this problem. You are awesome at demo trading (making millions in couple of days!), but then you switch to live and suddenly forex shows the real face. Everything goes the way it shouldn’t! You thought you know it all, but somehow the real trading is much more difficult then demo. Even with a small risk of less than 2% even a minor spike kicks you out from the market. You are tired and disappointment.

One possible answer in such case is the illusion of understanding. You think you know what you are doing, but in reality you don’t. Forex trading is a very difficult profession and until you start making money and prove that your strategy works, consider yourself a freshman in this field.

If you get stopped on every trade, it might be because you are gambling and not really trading. Unless you can afford to lose money on this new hobby, go back to demo trading and back testing your strategy.

The reason to return to demo trading is to get more experience and perfect your system. There is no need to rush into live trading without being really prepared. I also suggest demo trading with the amount you are planning to invest in real account. There is no point of practicing with the balance of $10,000 while in real account you deposit only couple of hundreds. With bigger amount comes wider room to let it play out. The illusion of good trades on demo let you think that this can be real money. It can be real money if you have $10,000 to invest!

Before you compile your trading plan it is crucial to backtest and forward test your trading system in demo account. It the system worked in demo, there is no reason for it not to work in live trading, assuming that you applied the same set up used when practicing.

In case you didn’t backtest your strategy at all, stop trading right now! You are indeed gambling and the only thing you will see in the next future is losses. Backtest your strategy for at least 4 months, forward test it for, let’s say 3 months. If the results prove that the system works, you are ready to switch to live forex trading.

In case you did backtest, it is wise to analyze the trades you made. Even with small starting capital (let’s say $400), trading at 10p-50p per point makes plenty of room. You should be able to make profits without the stop being immediately hit at the size. Figure out if you lost because of tight stops, or there is much bigger problem behind it. Not only technical issues can damage your trading profits – fear of losing the money and necessity to protect your investment at all cost can be equally damaging.

Fear of losing is an emotional barricade that needs to be broken. Set a trading plan with a good entry point and an exit point (a win and a lose exit). Set it and don’t look back. Follow your plan no matter what and if you do exactly what you did on the demo account, you should be making money in no time.

Right mental attitude is the key to being successful trader. Don’t try to make fast money, instead try to reach perfection in being a trader. Your attitude towards trading makes a huge difference. The anxiety to earn will take you to the dark side of forex – first couple of losses will ruin your confidence. Consider the beginning in trading as exercise, a long-run investment in trading education.

You cannot “catch” forex market. Let the perception and understanding come to you with time and practice. Learn by your mistakes and try again. At the end if you make more than you lost, you are ready to make a living with forex trading.

About the Author

ForexExplore.com – Forex brokers reviews and rating, comprehensive forex tutorials and articles, latest forex news and forex blog.

ForexVote.com – Top forex brokers reviews, latest bonuses and promotions, free forex tutorial and more.

Forex Forum – All Forex Secrets In One Place!

By James McKee

A disputed border between Cambodia and Thailand is causing growing concern for the stability of Southeast Asia. As a result the markets are fluctuating and the fallout will reach the JPY in short order. The conflict has arisen as a direct result of a flag being raised and a marker stone being laid, truly this is an unstable region to act so harshly based on such actions. Cambodia and Thailand have never been close politically but have enjoyed a relative amount of calm for many years now. Some political analysts believe that the conflict may have been orchestrated by Thailand revolutionaries who want to oust the current government.

This conflict reminds many of the recent problems in the middle east (namely Tunisia and Egypt) that have caused a hike in oil prices and instability throughout the region. Such problems in Southeast Asia could cause scarcity in a number of goods if they spread to other countries in the region. Scarcity will lead to a rise in prices and cause havoc not only in Asian markets but in western ones as well. The west is addicted to the cheap goods Asian manufacturers provide and if there is a shortage prices will surely rise.

Japan and the JPY will certainly have fluctuations if the current unrest in Cambodia and Thailand drags on much longer or intensifies. Those on the Forex currency exchange should keep a close eye on the conflict between Thailand and Cambodia to see if tensions ease. The financial markets and global economy have been suffering much as of late and as a result have put strain onto the entire world. While what has happened in Cambodia is not a direct result of such problems more are sure to come in the near future if the market does not correct itself.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By Vytautas Zilenas

Most brokers allow their customers practice their trading skills on a free forex demo account before opening a real account. In fact, in some companies you can play with fake money as long as you wish by opening a different demo account after the previous one expires. This has both advantages and disadvantages for a trader. In the article I will try to look at positive and negative aspects of practicing forex trading on a demo account.

Advantages

1. Forex demo allows you to test your trading strategies before you start using them with real money. You never know if your trading strategy is going to work before you have back tested it under real market conditions. So, having a demo at your disposal you can run as many tests as you wish and burn as many demo accounts as possible before deciding which trading strategy works and which does not.

2. It allows you to find out which forex broker you like most. Different brokers have different trading platforms and some of those platforms might fit your taste while others will not. I would advise you to avoid complicated ones as you might experience serious problems due to the complexity of a platform. Once, a friend of mine had an order open with 1 standard lot with one of the biggest forex brokers. When he tried to close the order somehow the system opened another one, instead of closing the first one. So, he had two standard lots open on an account with 2000 dollars deposit. As you can imagine he felt scared. He had to telephone the company and with some help the problem was solved. Luckily for him there was no fundamental news around. He could have lost everything in a matter of seconds. Therefore, I advise choosing only those brokers whose platforms are easy to use.

3. Forex demo account gives you an opportunity to practice your trading skills under real market conditions without losing a dime. Trading on a real account is a stressful experience in the beginning and if you are not absolutely sure what you are doing you can kill your deposit in no time. Demo account helps you to trade as long as you feel comfortable with your trading style, strategies and results. Then you can switch to real account.

Disadvantages

I thought of the points that I could write under the section and decided that I could put all disadvantages into one paragraph. Forex demo account does not allow you to experience real psychological states that you are in while trading a live account. It does not allow you to lose any real money of yours. It can lead you to self deception as you can burn as many demo accounts as possible while practicing your trading skills. You will not be able and you will not be willing to do that on a real account. Practicing is not real trading and real trading can only be learnt trading a real account with your real hard earned money.

About the Author

I have been in forex trading for more than six years. If you want to find you more about currency trading I recommend watching my video about forex trading strategies.

By Apurva Shree

Forex trading accounts are of many types. You can choose the type of account you wish to maintain. But while doing so there are two considerations to be kept in mind.

* Level of trading skills possessed by trader.

* Money the trader is willing to put up or risk while trading.

Forex Brokers

The best thing to do while deciding on Forex trading is to approach a good broker. Forex brokers are always attached to a lending institution like a bank, due to the requirement of large capital. They should be registered with Futures Commission Merchant (FCM) and come under regulation of CFTC or Commodity Futures Trading Commission. It is very important to make sure that your broker has the backing of a reputed institution.

Broker offer different types of trading accounts for people with different trading requirements and skills.

Demo Account

Brokers extend services of demo Forex trading accounts for beginners and those who are new to the Forex market. This account can be used to get knowledge about the nuances of Forex market and trading. These demo accounts are free so there is no requirement of any money here. The broker uses virtual money to finance the account so you can begin trading without the risk of making losses. This would give you an insider’s view of the market and teach you the strategies to be employed, the timing of trades and potential profit that can be made. This can be taken as training before actual trading with money can begin.

Micro Account

Micro accounts are those which can be funded with as little as $1. This is used mainly for an experience with very little risk. This is another training tool that can be utilized to increase trading skills and sharpen your mind to detect potential profitable movements of currency pairs.

Mini Account

Mini Forex trading accounts require a deposit of $100 minimum. Those people who are familiar with Forex trading methods and routines but do not want to take high risks can try the mini account. This account reduces losses greatly but profits are also less here.

Premium Account

Premium accounts are ideal for experienced traders. These require a minimum fund $1000. The risks involved here are higher and so are the profits. Hence only traders with sharp and efficient trading skills should open a premium account for trading.

Brokers offer more than one type of account for their customers. The mini accounts requiring less funding offers high leverage and the standard and premium accounts that allow trading on different leverages requiring significant amounts of capital is offered tools and additional services. Thus it is vital to ensure that the broker of your choice is equipped with right kind of tools and is offering appropriate services in accordance with your capital amount in your Forex trading accounts.

About the Author

There are several types of forex trading accounts that can help you invest in the forex market. An effective forex strategy can be the key to maximizing the return on investment in this high risk market of foreign exchange.

By CountingPips.com

Monday February 14th

• Reserve Bank of Australia meeting minutes

• Australia NAB business confidence

• Chinese consumer price index

• Chinese producer price index

Weekly Economic Calendar.

By James McKee

As if there were not enough fear surrounding the finance market a recent series of events has brought scrutiny to the US stock market with regard to their security. A series of stock market “freezes” with regard to prices that would not update sent some into a panic. The cause thought to be responsible for this recent issue is a breach of security undertaken by computer hackers. While there is no proof of this strange computer files left on trading system computers are seen as suspicious to investigators and many are wondering how vulnerable the system may be.

The USD is inextricably linked to the US stock market and when the very security of the market itself is tested and even broken the USD will inevitably suffer to a degree. Where there is a lack of confidence there is a lack of investment, if there is a lack of confidence in the market itself not due to financial instability but to the security of the system itself we are facing a whole new set of challenges. Officials have admitted to some strange files being found on their systems but have not confirmed the presence of any cyber intruders.

The fact that the financial systems of the United States have been compromised sends a message to the investors of the world that not even NASDAQ is full proof and that doubt may cause problems. Investors from the outside and even within the United States are very concerned about what has occurred and rightfully so. Those on the Forex currency exchange should stay on top of what actions are undertaken to correct this security breach and prevent others in the future. Failure to properly secure the computer systems that regulate financial markets could have catastrophic consequences for the world’s economy in the future if this problem is not corrected.

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.

By John Lismo

Are you a beginner when it comes to the world of online Forex trading? Well, you ought to know that there’s quite a lot of information to take in before you can even consider yourself ready to take on the trading action. But why is learning important when it comes to trading, especially when there are software available out there that could pretty much eliminate the entire learning curve? Well, it’s simple. At some point in your trading career, you would need to trade manually and you should be prepared for that. Also, this software can only do so much. You still have to rely on your own skills and instincts as a trader in order to make profits. Luckily for beginners such as yourself, there is a Forex trading demo account wherein you would be able to put your skills to the test long before you jump into the trading game.

These demo accounts would allow you to participate in real time trading without the need to deposit money into it. After all, wasn’t it said before that the best teacher is experience? What better way to do that than through a demo account. Besides practicing, you can also make use of these accounts to test new techniques or strategies that you have been thinking about applying to your trades. Of course, it is important that you test these new strategies before using them because you have to be sure that they would work and wouldn’t backfire on you. Now, whilst all of these things sound good and well, there is one drawback that you ought to know about. It is a very important one too.

Basically, a demo account is, more often than not, not modeled after a standard trading account. This can be quite challenging since once you get on to using an actual trading account, the differences might throw you off by a bit. This is where you’ll need to make certain adjustments. They are easy enough to do and probably wouldn’t cause you that much trouble. Of course, you should keep in mind the major differences between the two as well. After all, losing on a demo account wouldn’t mean much since you aren’t really losing anything but don’t let those feelings cloud your judgment when it comes to the actual trading process. You might become a bit too complacent, since this is how you were with the demo account, and forget that you’re actually trading real money.

It might have certain drawbacks but there is no denying just how useful a demo account can be especially for beginners. After all, there is no better way of perfecting your skills and instincts than through this account which would show you how the market functions and the type of the things that you can do within it. Even experts have gone through using demo accounts and there certainly is no better introduction to the world of online currency trading besides it. You basically learn as you go and do pretend trades.

So there you have it, a quick look at the importance of a Forex trading demo account.

About the Author

Are you looking for more information regarding Forex trading demo ? Visit http://www.learnforextradingbasics.com today!

USDCHF stays above a rising trend line on 4-hour chart. As long as the trend line support holds, uptrend could be expected to continue and next target would be at 0.9800-0.9850 area. However, a clear break below the trend line could indicate that a cycle top is being formed, and the rise from 0.9328 is complete.

Daily Forex Analysis

By Sacha Tarkovsky

There are lots Forex brokers to choose from when trading currencies online – and finding the right one to work with us critical, if you’re going to maximize your FX trading profits.

Here are 9 points to consider when choosing a Forex broker.

1. Pip Spreads Offered

Spreads between brokers vary dramatically and the difference can be as much as double so first and foremost when trading FX you need a tight spread

Transaction costs mount up – especially if you are trading frequently and impact on your profits and add to your losses. The tighter the spread, the more profits
you will make.

Today, many brokers offer 3 – 5 pips – and this is what you should look for.

2. Deposit Online & ease of account operation

Look for a broker who will take online payments to your Forex account via and secure online payment method. This is great for funding your account quickly – and getting your trading profits back to.

3. Negative Balance Protection

Leverage or gearing is one of the main reasons that people are attracted to online currency trading. Of course, leverage is a double-edged sword – and where there are high rewards, there is high risk.

With this in mind many Forex brokers now offer guaranteed stops and negative balance protection which is a big comfort to those traders who are new to the market or want to have a finite risk.

Fees for the service tend to be quite competitive and their a popular option with many traders

4. Leverage Offered

The leverage brokers will give you varies from broker to broker, but today 100 – 200:1 leverage is common and some brokers will go as high as 400:1 meaning you have the potential to leverage your account for greater FX profits

5. Other Charges & Broker assist accounts

Your only transaction cost should be the currency spread – you should NOT pay other commissions.

Avoid broker assisted accounts where a broker supposedly will help you make money from Forex trading they wont! If brokers were good traders they wouldn’t be brokers!

If you trade in this way you will lose and you will extra commissions to.
You are responsible for your FX profits so accept this fact and go with an execution only broker.

6. Investment Minimum

Today, currency trading is not just the preserve of wealthy individuals and banks – anyone can get involved and minimum deposits have dropped dramatically.

You can open a trading account online with some Forex brokers with as little as $100.00.

This means that novice traders can start off with small amounts.

7. Trading Platform

If you are trading online, you will go through a Forex trading platform.

You want ease of use and reliability – Many brokers offer demo accounts so try them out.

8. FOREX Trading Education

While you should always make your own investment decisions, it’s good to get some freebies that can help you with your Forex trading strategy such as:

* FREE trading guides

* Forex trading seminars

* Trading news and charts

* Trading recommendations & ideas

* Forex trading systems

* Trading books etc

9. Look at the overall package

When choosing a Forex broker you have a lot of choice and the above tips will help you while there are a lot of small brokers around and many are good go for someone who has been around for a while and is established.

Forex brokers are not all the same and some are far better than others in what they offer and if you use the above tips you will find one that will help you maximize your online currency trading profits.

About the Author

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Contributor: By Daren

The trading advantages of Forex robots have been determined and defined by experts as you can read from forex reviews. Many trading experts will agree with the fact to the convenience of Forex robots in boosting their trading and profits, but why are many people attracted to the Forex market initially which would make it so popular?

Well, considering that the daily turnover of the Forex market is well over $3 trillion, indicates there are huge earnings for those knowledgeable in trading in it. The result is that not only people are getting involved, but also banks, corporations and other institutions, all setting their sights on big earnings from Forex.

Even if an amount of luck might be involved, there is much more to learning to become a successful Forex trader. There are simple steps which you can take, and you can start by reading forex review and working smart. Putting lots of time and effort into your trading endeavor is a good start, however you ought to maximize the time and effort that you set in trading by working smart too.

There are many various strategies traders use in Forex, and it is a possibility to learn these strategies to gain a good knowledge of how the market works. Apart from that there are also automated systems which can aid in your learning development. Get information on the best strategies and automated systems from honest-to-goodness forex review. As well as aiding and making your job easier, automated trading tools and programs can also be instructional.

A good trading mindset is an additional vital asset for a successful trader. Success comes from your state of mind, and how you deal with day to day trading. Results can be proportional to how much effort and thought you put into trading. You will see minimal results from something you didn’t set any thought and effort into. Like the old saying, “if you believe you can, you can.”

Forex trading is a high risk business. Oftentimes, it could even be referred or compared to gambling. Because the market is very volatile, in order to generate profit from trading good timing is crucial. Your emotional condition plays a part too, because emotions like fear can get in the way of making trading decisions. Some traders who find controlling their feelings difficult would gladly take advantage of a trading robot. There so many trading robots available on the market, so make sure to read forex review before using or purchasing one.

One more aspect that makes a successful Forex trader, is the need for a great deal of patience. Potential winning trades don’t come round all the time. Still with the markets huge trading turnover, it doesn’t indicate that you would constantly and consistently have good trades. You continuously require patience.

Several traders employ the use of robots to generate income for them. Automated trading robots must be used with caution, as you don’t want to check back on them in order to find it has traded all your funds away. Always choose a well respected robot based on forex review and even then you should keep close eye on it.

One can try to learn trading from someone who is a successful trader having years of experience, but would they be happy to give up their secrets? A Forex robot or automated trading system may be the solution to learning the skills required while earning through trading. But keep in mind, successful Forex trading involves more than skill, knowledge and tools, but character as well.

About the Author

Please visit Forex review site to be well-inform on real facts about forex platforms, forex strategies, forex traders and forex robots coming from the expert professional forex traders who are authors of Forex review articles.