By admin | March 30, 2008 - 11:13 am - Posted in Learning

Demo trading is an indispensable aspect of every retail trader’s career. It would be foolhardy to trade ‘live’ in the Forex market without first getting your feet wet with paper trading.

What Is Demo Trading?

Demo trading (or ‘paper trading’) involves normal trading activities such as entering into buy (or sell) trades, setting stop orders, and exiting the market. It’s basically the same as actual trading except for one crucial difference: you’re not trading with real money.

Most Forex brokers provide this service at no cost to retail traders because they hope the retail traders will move on to using their paid services when ready to ‘go live’. The brokers will typically provide you with a demo trading account where your winnings (or losses) are calculated, and also a trading platform for you to monitor the market and to place your trades with.

Why Is Demo Trading Recommended For Beginner Traders?

It allows new traders to familiarize themselves with the brokers’ trading platforms – for example, to learn how to place buy and sell orders, as well as how to set stop orders etc.

It’s a common occurrence for new traders to enter into a buy trade when they want to sell, and vice versa. Without a paper trading account, they’ll be paying for such simple errors with real money!

What Demo Trading Can’t Help You With

Within the ‘safety net’ of a paper trading account, many conservative traders are unwilling to start ‘live trading’ accounts. These traders take comfort in knowing that they can’t lose any real money.

This is a dangerous mindset to adopt because actual trading inherently involves taking real risks. When amateur traders grow too comfortable within the confines of a demo account, they stop their learning process: the important aspect of psychological discipline is ignored.

So don’t wait until you’re completely sure that you’re making money before you trade ‘live’. That day will never come. My advice is to trade live as soon as you’ve mastered the controls of your trading platform, but to trade with smaller amounts first.

One of the most important lessons to be learnt in Forex trading is how to manage the psychological impact of actual losses, and you can’t get that by paper trading.

To learn more, to download my free 26-page guide,

Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading tips and resources.

By admin | March 24, 2008 - 12:14 pm - Posted in Working

Trading online is a good way for investors to make some huge amounts money, but people without experience will often lose huge sums of money. A good road map can minimize risks and save months if not years of very expensive trial and error.

Day Trading

Day Trading was popular during the big bull market of the mid 1990′s. Most of the beginner investors have dropped out, but day trading is still quite popular and is practiced by professionals all over the world. There are less opportunities and advantages in the current market, but skilled traders and investors can still find them because they know exactly what to look for.

FOREX TRADING

Forex is is short for Foreign Exchange Market. It’s the worlds largest financial exchange market and started in the 1970′s. Daily turnover rate for the currency market is close to $1.3 trillion dollars a day.

It’s not like other markets because FOREX does not trade on a fixed exchange rate. Instead, currency is traded between various types of central banks, commercial banks, many types of non-banking companies, big corporations, hedge funds, personal investors and speculators. Smaller investors were once excluded from trading FOREX because of the initial capital and investment that was required by law. That changed in 1995 and now many small investors trade with the big time banks. Since then, the number of FOREX investors has grown tremendously and many FOREX courses are available to help new investors increase their profits.

Actually, most experts advise new investors to take a FOREX trading course before opening a new account. It is very important to know market terms, leveraging in FOREX, and the analysis of the FOREX market. Potential investors should enroll in a FOREX training class or purchase some books that will prepare new investors.

Although, there are major pros and cons when enrolling in a FOREX course that you should know about. For the beginners, a FOREX course is a very fast paced method of learning the basics. Not alot of time is spent on the history or economics of the FOREX market. Phone support or on-line guidance is usually available for a professional trader. This information is often condensed and very informative.

The major disadvantage to most people is the price of the course. A paperback is often less expensive. Also, a course is usually a biased approach of the instructor. Most professional investors have different strategies and opinions about theFOREX market. Therefore a student will become stuck on the way FOREX trading was taught, even when many different approaches to the market have been profitable. Another problem is knowledge of these approaches may not be enough. The market is very unpredictable and there are many different factors such as political issues, and changes of economies that effect the flow of profit in the market.

Many people today use automated software that detects these changes and can quickly create a trading road map. This often results in major profit for the investor.

For more information about automated FOREX software visit

By admin | March 20, 2008 - 12:13 pm - Posted in Software

Professional and beginner currency traders alike predict and test the market with the use of forex simulators. Are these tools vital business investments? Let’s take a look at the facts.

A forex simulator is an advanced program which you leave to run around the clock on your personal computer. These tools or ‘forex robots’ which they are sometimes referred to as will collect massive amounts of information about the currency market.

Market charts are created which allow you to make educated decisions on when to invest. Depending on your personal preferences, the software can actually make the decisions for you. Entering and exiting trade transactions whilst your away from the monitor.

Starting your own business has become much easier in today’s day and age, but don’t be tempted by the ‘get rich quick’ schemes. Business tools such as a forex simulator, although helpful, shouldn’t be relied on completely. Prior knowledge of the currency trading market is valuable, or you must at least have the motivation to learn the basics.

With the current fluctuation in economies, now’s the time to start investing in currency. Perhaps you aren’t as brave as some investors and want to test the water before you jump in. This is where a forex simulator comes in very handy. Using this software you can invest ‘pretend’ money. as a sort of real trading simulation. You are able to see if your methods would make you a huge profit or a big loss, without losing anything in the process.

Find out which are the top choice for the professionals by .

By admin | March 16, 2008 - 12:13 pm - Posted in Learning, Working

I’m going to give some of my tips to help the forex currency traders out there to learn the necessary skills to become great traders. There are over $3 trillion a day in trades, that means forex is the largest market on the planet. That means there is an amazing potential to profit at this.

How can I tell if my head isn’t in the game?

That is easy. If you start to feel mentally tired, as if you’re not wanting to put the energy into thought. There is also the stressed out feeling which is just nagging in the back of your mind. There is also the frustration, which starts to work you up and make you upset. These three all have a negative affect on your trading experience. You need a calm and cool mind to make decisions with your money, and these states will leave your mind cutting corners, leaving you with pretty bad decisions.

How bad are emotions in trading?

Emotions are pretty bad to the process of trading. They will often leave you thinking you made the right move, only to see your profits disappear. Emotions are what turns you from a trader and into nothing more than a gambler. Do you really want to make money at this when it all just boils down to a roll of the dice? No, of course not. Focus on the facts. Analyze currencies and use the FACTS to make DECISIONS. The FACTS are not biased and do not lie.

The automated software of will give you an immediate edge in the market. Make trades that work for your profit line. For more information on the Forex Killer software, check out .

By admin | March 10, 2008 - 12:13 pm - Posted in Learning, Starting

I’m going to take the time to share with you some forex currency trading beginner tactics that I’ve developed over the last few years. This is a big global market with over three trillion dollars a day being moved around. Just getting a tiny slice of that pie would be enough for you to retire on. This is what attracts a lot of traders to this market. The problem with that assumption is that it doesn’t take into the fact that you need to be smart. You just can’t join in and get rich quick. People have lost a lot of money in this market because they didn’t know what they were doing. I’m going to share a little of what I’ve learned during my time.

I think one of the most important things you have to understand is how you will sabotage yourself. What I’m talking about is your emotions. They have this way of making you reject logic and reason, for a feeling. Obviously this isn’t a smart move and always has bad consequence in the long term. If you’re someone that gets gut feelings, or stresses out easily, you need to learn to control it. If these feelings start to influence trades, you’ve just turned this from a business into gambling.

Another important forex currency trading beginner tactic is having the right tools to get the job done. A lot of people try to avoid getting trading software because they want to “do it themselves”. There’s just too much information to take in this market to do it completely on your own. It’s open 24hrs a day, so eventually you’ll have to sleep and you need software to watch over the market and your trades.

The is a great place to start. Not only does it give you a complete course on how to profitably trade, it comes will all the tools you will need, including trading software.

Learn more at the .

By admin | March 5, 2008 - 12:13 pm - Posted in Learning, Working

Forex money management is simply seen as a way of restricting loses but its lot more than placing a stop, if you follow the tips in this article, you could increase your gains dramatically…

The aim of forex traders is to take risks at the right time and get the odds on their side and then get as much as the trend as they can – sure you knew that already!

However most traders think high odds trades come around all the time – they don’t.

The really great trends maybe come around a few times a month no more but how many traders try forex scalping and day trading? Lots. How many lose? All of them.

The first real rule is to get the odds on your side as much as possible and that means

Cutting your trading down – most traders simply trade too much.
Keep in mind though you don’t get paid for how often you trade you only get paid for being right with your trading signal and that’s it.

Once you cut you’re trading down, you can concentrate on hitting the opportunities you are going to trade harder.

A huge mistake is to diversify why?

It simply dilutes gains. Most traders, also have small accounts and if they take the common wisdom of risking 2%, they have to have their stop so close, their guaranteed to get stopped out.

They have a small loss – but on the other hand, they have no chance of winning.

Sure it’s the majority view to risk 2% – but the majority doesn’t win!

Risk 10 – 20% and you will stay in the trade and get some meaningful profits.

Next the most common error of all of novice forex traders is to trail their stop to close and get bumped out the trade, by normal market volatility.

If you don’t know what standard deviation of price is, make it part of your essential forex education!
Knowing how to trail a stop, outside of normal volatility is the key to huge gains.

If you trade don’t trail too quickly and if your long term forex trend following, keep your stop well back.
A good way to do this is to use key trend line support, around the 40 day Moving Average.

Sure you give a bit back at the end of the trend but you don’t know when the trend was going to end anyway so don’t try and predict – you can’t

If you look at a forex chart, the big trends last for weeks, months or years and there worth a lot of dollars in the pocket.

If you trade forex you need to take risk pure and simple. You are not trading in a manner but take calculated risks when the odds are on your side.

If you want to make 10 – 20% you can do it with less risk elsewhere.

If you want 50 – 100% you need to take risks, it’s as simple as that.

Most traders try to restrict risk so much they create it. Sure they keep their losses small but they have a lot of them and never make any decent gains.

So in forex money management terms, you need to take risks at the right time hit the high odds trades with your forex trading strategy and milk them for all there worth.

FREE FOREX STARTER PACK 5 X PDFS – DAILY RESEARCH AND MUCH MORE!

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By admin | March 2, 2008 - 12:13 pm - Posted in Investing

There are a lot of advantages to trading currency on the foreign exchange market that stock market trading doesn’t have. Here are a few.

A twenty-four hour market – Foreign exchange markets are open to do business around the clock. Small investors who are starting out doing trades in their spare time can benefit from this, since they don’t need to juggle their schedules around opportunities to trade. This means that if you choose Forex, you can schedule trading when it works for you. It doesn’t matter if you’re a night owl who wants to trade at one in the morning. There’s a bank open in Tokyo.

Low cost of transaction – Since Forex brokers don’t work on commission, and no hidden fees are lurking in the fine print, you won’t pay a lot to trade. Broker fees are directly build into the trade as the bid/ask spread. This spread is the difference between the buying price and selling price of the currency, and it’s expressed in what are called pips.

Leverage/margin – Trading on margin means that Forex traders have greater leverage in trading. It also offers the ability to make a very high profit on only a small investment. If you find a broker allowing a margin of a hundred to one, you can buy a hundred thousand dollars in currency with only a thousand dollar deposit. Remember that this leverage goes both ways and can lead to large losses if you’re not careful.

Fast trade execution/high liquidity – If you’re trading in currencies, that means you’re trading in cash – the single most liquid investment there is. Trades can be executed almost instantly, and there’s no need to sit around waiting for yours to go through.

Difficult to influence – The foreign exchange market is so large that it’s almost impossible for a single person, bank, fund, or even a government to influence it for any length of time. The stock market, on the other hand, can be influenced by things as small as a television analyst’s negative forecast.

Small sample size – Stock trading means that you have thousands of options, including international companies, large and small companies, and newly issued IPOs. It’s difficult to follow everything. In Forex trading, on the other hand, there are seven major currencies to follow. That means you can devote plenty of time to each. In fact, there are a number of successful Forex traders who don’t even trade in all seven currencies. You can just pick three or four and stick to them without a problem.

No bear markets – Because it’s possible to trade short or long, you can make money whether the prices are up or down. You just have to make the right guess.

Ian Armstrong is an avid Forex enthusiast.

Visit for an inside look at what successful traders do, as well as objective, results-based reviews of the more popular FX trading systems.