Would you like to know more about how the Forex Ace system works, and whether or not it is profitable? I used to have a lot of difficulty finding my trades, and never really had a systematic way of trading. As a result, I was not really making money out of the Forex markets even though I was placing many trades a day. Eventually, I was recommended to try the Forex Ace System, and I am going to explain some of the aspects of this currency trading system and my experience with it.

1. Do You Really Need a Mechanical System Like The Forex Ace?

I was glad that Forex Ace System has been designed to be completely mechanical that does not require any discretion on my part. If you are not an experienced Forex trader, it is highly recommended that you have a set of step-by-step rules to follow or you might end up losing money due to your emotions. Forex Ace has been great at removing my indecisions and emotions from my trades, and I have actually been able to achieve much better trading results now.

2. What’s The Worst Way to Trade the Forex Markets?

I personally know of people who trade with a bunch of indicators on their screens and yet they do not make any money. They may start looking at trends and then try to confirm it with another 3 indicators before looking at the price of the currency before entering their trades. Eventually, they find that they cannot enter many profitable trades because their indicators are always lagging.

3. How Does the Forex Ace System Work Then?

This system is a compilation of the fastest rules to identify swings in prices to help you find trades. Another good thing is that it requires very little time per day to find trades, and most have them have been very profitable for me.

Is the Forex Ace System a scam? Visit http://www.top-review.org/forex-ace-system.htm to read a FREE report about this Forex trading system!

titleThe Real Secret to Day Trading Forex Currency/titlepYou want to know the real secret to day trading forex currency? Well, here it is: emConfidence and understanding of the market/em. There you go. Theres your real holy grail. If you can accomplish these two feats then you can write your own paycheck. Happy? Ok, so you probably need a little more information. Fine. Here it is:/ppustrongConfidence/strong/u! I cannot begin to tell you how many forex traders in the world are having anxiety attacks watching their trades just as I am typing. If you cant handle a trade or trading or in general, then ustrongdont do it/strong/u. Youll never have success day trading forex currency if you are watching every pip move like its life or death. Emotions can destroy a trader. A traders fear can cause him/her to hold a trade even though the obvious trend is going against them. It could also have the adverse effect in which a trader closes a trade WAY too early because hes afraid to hold it, even though all the signs are pointing in the right direction./ppI could give you the greatest trading system in the world, but it wont do you much good if you dont have any confidence in trading it./ppThe ustrongunderstanding of the market/strong/u goes hand in hand with the confidence. When I say emunderstand,/em I mean just that: Understand what you are looking at. Dont be like everybody else who has to use indicators to tell them what the market is doing. Does anybody understand what these indicators even mean? Can you honestly tell me what using an MACD Divergence does? Its colorful and its pretty on a chart, but what does that have to do with the tea in China? Take the time to understand the underlying causes of price and market movement./ppTake off the indicators on your charts and see if you notice some repeated patterns. If you can start to see them then you can be ahead of the other 95% of forex traders who end up losing money on the markets. After all how can you have confidence day trading forex currency if you have no idea what you are looking at./ppJim Buhs has been a successful forex trader after learning how to trade price action. He was able to have a target=_new href=http://www.squidoo.com/forex-successforex trading success/A after he cleaned his charts of indicators, and his profits soared./ppTo check out Jims Highest recommendation go to LearnForexDirectory.com and look at a target=_new href=http://www.learnforexdirectory.com/forex-education/bird-watching-in-lion-country.htmlBird Watching in Lion Country/A./pbrbr

titleManaged Forex – How to Manage Your Forex Trading/titlepMoney changes everything. This line from a song takes a pitch on how money affects man. People from all walks of life – poor or rich – think of numerous ways on how to earn money or even how to grow them into million bucks. We are not survived by love alone, money still matters./ppOne of the most-sought after money-making investments nowadays is the popular forex trading. You watch them in the news, read them in the papers, see them in the movies – everybodys talking about it, and you dont even know a thing that people really do get rich from a well-managed forex trading./ppIf you are a novice, we are providing you with guidelines on how to start with forex and have a successfully managed forex trading all throughout./ppKnowledge is Power. The most successful businessman in the world is the man who has gained true knowledge and master of the business. You cant engage your money at once just because people are telling you this is how you do it. If ever their opinions matter, it is your opinion that matters the most. Search for numerous information about the business. Read them thoroughly and learn them by heart. Try joining seminars or workshops, watching online videos and tutorials, and dont stop until you know you have gathered more than enough information./ppRight Trading System at your doorstep. Before finally making a choice on which broker you have decided to put your money on, study all the different systems of brokers and do some sort of charting or auto trades on the computer./ppWork out your Trading Plans. Get your objectives, market strategies, point of investment and expected return on investments sorted out. If you have not finalized these details, then do not try to jump into the water yet. You will likely lose whatever you have invested. If in case you have a well-managed forex plan ahead of time and still failed to profit from the business, do not fret for there is always room for improvements on everything. Find out where you have mistakenly set your plans./ppManaging your money. In every business or investment, there are always possible risks or dangers. Learn how to manage your money and protect it from losing terribly. As I have mentioned earlier, set your objectives on your profits and set protective indicators on when to make a stop. Because if you lose everything at once, you might miss a great chance along the way since you have no capital anymore. Also, try managing your personal expenses with it./ppEverything is learned thru discipline. Especially if you are about to target a well-managed forex trading success from the beginning, it is important that you learn the art of discipline. Do not be moved by your emotions along the way; do trade with your trading plan at hand./ppOnce you have discovered the right formula to a well-managed forex trading, forex business can really be a smart and beneficial move to grow that capital in hand./ppJohn Callingham shows you which a TARGET=_new href=http://www.ForexReviewInsider.commanaged forex/a techniques, systems, and strategies actually work and which ones do NOT. Learn how to profit off of rising world currencies at a TARGET=_new href=http://www.ForexReviewInsider.comhttp://www.ForexReviewInsider.com/a/pbrbr

Over the next few lines I will tell you a little story about my experience with my automated forex system, and why it is important that you have one if you want to make money consistently within the forex market.

Forex trading can be a highly profitable business, but as everything in life it all comes down to knowing very well what you are doing. So to make a profit within the forex market you must either be already an expert, or you have to try and become one fast, but then again, becoming an expert in anything within a short period of time is virtually impossible and very risky if it is your investment at stake.

Believe me, even if you are an expert you will make mistakes quite often, maybe not because of a lack of knowledge, but because we as humans sometimes let emotions like fear and greed take us over, and this is where a reliable automated forex system comes in.

I have been trading for quite a while, and I started by trying to educate myself as much as I could, so I began my trading operation on my own. I didn’t do that bad, but I was not making the kind of money I was expecting, considering what some friends of mine where cashing in every month.

After a few months I decided that I have had enough, so I confronted one of my friends to try and suck some information out of him; when I finally managed to break him, he agreed to let me in on what he was doing, and here is what I got:

He confessed to me that in addition to some manually placed trades, he was using an automated forex system that had the ability to place and close over 90% winning trades all by itself.

Initially I took that for a joke and kept asking him to come clean with me, but he insisted that that was it, and to dig me out of my skepticism he sat me at his pc and showed me his forex trading chart. After 15 minutes staring at the monitor, I was surprised by the sound of a new trading order being placed without me or my friend touching anything; it was the automated forex system working. My jaw fell to the ground and I almost strangled my friend for not sharing this with me before.

I stayed there for a several hours because I had to see more to actually believe it. Well, after almost 6 hours and an aching back from my friends crappy chair, I witnessed the automated forex system place 3 winning trades for a $600 profit.

As you might guess, I did not wait until the next day and went straight home to download the software, and after three months using it I can only say that not having it is a waste of your money. You read right, a waste of your money, because you will be missing out on profits that you cannot possibly make all by yourself, and here is why:

1) You can be attentive about what is going on in the forex market for only a few hours a day, because we as humans need to eat, sleep and sometimes even work, and every time you are not following the market trends you are potentially missing profitable entry points for a trade. The automated forex system will be on guard 24 hours per day, and it will take advantage of every good opportunity to place a winning trade, which often occurs during the night.

2) We as humans have a tendency to become scared and nervous when we feel we are about to lose money and that often leads us to make bad calls based on emotion rather than calculated analysis. The automated forex system will never be scared or greedy, it will always act based on the market conditions and therefore will have a much higher rate of winning trades.

This does not mean that you cannot trade based on what you know about the forex market, because having an idea of what you are doing will always place you ahead. However, if you team up with an automated forex system you are certain to increase your profits by 100% or more, and if you are new to the forex market, you will start on the right foot making profits from the very beginning with very little risk.

So if you have ever wondered whether you should have an automated forex system by your side or not, the answer is: Definitely. Not having it will cost you a lot of potential profits.

Visit the: http://www.specialonlinebusinessreviewauthority.com, for details about fully tested and reliable automated forex systems (the one I am using is the first in their list).

Also visit my blog at: http://makequickmoney-bigtime.blogspot.com/, as I am always posting comments on new ideas and giving away useful tools and resources.

The Plain Facts About Stock Trading

Want to hear a scary statistic? Well, here it is – whether you want to hear or not: “At least 70% of traders lose money” in the stock market. This is according to a report from the North American Securities Administrators Association (NASAA). The report goes on to add that “70% of public traders will not only lose, but will almost certainly lose everything they invest.”

Yikes! Everything? How can that be? Especially with all the charting tools, the stock trading simulators, the books, courses, coaching, and seminars from stock-trading gurus that are available today.

One more little statistic from that report: In all, only “11.5% [of traders] might profitably trade” the markets.

And yet you constantly read about people raking in bushels of cash by day trading – most especially penny stocks. It doesn’t seem to add up.

The Difference Between Winners and Losers?

The difference between the 70% of losers and the 11.5% of winners is – what do you think? The best strategies? Guess again. It is, hands down, a good foundational education about trading and about the markets.

Case in point. A number of years ago a man named Ralph Vince (an expert on the mathematics of trading) conducted an experiment. He chose forty highly educated people – all with doctorate degrees — and gave each of them $1,000 in play money. He then invited them to participate in 100 rounds of a computerized stock trading game. They were even supplied with 100 trades that had a 60% winning percentage.

At the end of the experiment only two of these highly educated individuals – armed with winning strategies – made a profit. Thirty-eight failed! Why?

Specifically because winning strategies do not a trader make!

The criteria that will turn you into a successful trader is time, knowledge, experience and proper guidance. In a word, find some good day trading courses and see which one fits your needs.

Two Ways to Learn

As with most any endeavor there are basically two ways to learn. The first is, obviously, through reading and studying (seminars, online courses, books, videos, etc.). We might call this the formal training.

The second is by experience. The hands-on sensation of the actual day-by-day buying and selling which trigger your roller coaster highs and lows of wildly gyrating emotions. Most day-trading courses included both.

The formal training allows you to learn from the mistakes of others. From their teaching you can learn to avoid the worst of the pitfalls involved in day trading.

Hands-on training helps you get the feel of entering and exiting a trade. The feel of watching that chart move once you’ve pulled the trigger on a trade. The act of exiting at just the right moment to make the profit!

Can you imagine learning to drive a car from reading a book? Or learning to swim from reading a book? So much of it has to do with getting the “feel” of what you’re doing. Trading penny stocks is the same way.

Hands-on training will also help you to know yourself. (It is highly recommended that you begin by paper trading or other means of simulated trading.) What are your basic emotions with regard to money? To investing? To winning? To losing? You had better know ahead of time. Believe it or not, your own basic emotions will play a big part in your success or subsequent failure in day trading penny stocks.

Watch Those Emotions!

Fear is that emotional state of anxiety due to a real or an imagined presence of danger. Fear can impair judgment and cause a trader to recoil from making a trading decision, or to delay a trading decision response.

On the other hand, a self confident person, one with a positive attitude, has a more positive expectation. That person is more likely to take action in spite of a sense of fear. Consider this: winners manage their fear; losers are controlled by their fear.

However, even the most fearful person can overcome that fear with the proper education and training. Using day-trading courses can help to develop self discipline. Self discipline will evolve into self confidence. Once you fully believe in your own abilities (to successfully trade and profit from penny stocks), you will be able to assess and accept risk, and then take decisive action.

If the fear seems overpowering, it is vital that that fear be analyzed. Where does it stem from? From childhood? How can it be faced and worked through? The answer most usually comes through more and more education – both formal and hands-on.

Day Trader’s Traits

Successful day traders must think outside the box. They have to think quickly and wisely. When stocks are fluxuating at split second intervals, making a wrong decision, or ignoring a trade could result in the lost of a great deal of money. Does that describe you?

From the outside looking in, it may appear that day trading penny stocks is akin to gambling. And of course, some traders would prove that assumption to be correct. But they are not the ones who are consistently in the profits.

Day Trading as a Business

Rather than gambling, day trading penny stocks should be thought of as a business. You are both the employee and the boss in this business. You will need another employee – your broker. There will be competitors – the other traders out there, and of course the stock market itself. Just as with any business, there is buying and selling going on. The difference with day trading penny stocks is that this business is extremely fast-paced. (Roller coaster, remember?)

Another part of your day-trading training is to take a realistic look at your day trading business and make plans that will carry you through the long haul. What are your goals and aspirations? The first of course is to make money. But, just as important, is to make money consistently. How is that going to happen?

Working Capital

Understand that your working capital is vital for your business’s survival. Capital preservation is more important than capital growth. Reinvesting profits back into your business should be high on your priority list. What percentage of your total portfolio will be given over to penny stock day trading? Part of it? Half of it? All of it? Make that decision before you plunk down your hard-earned cash.

Can YOU Profit With Penny Stocks?

So can you profit with penny stocks? Absolutely, you can. I encourage you to learn all you can about day trading. Look for good day-trading training courses. Day trading penny stocks can be exciting and rewarding. And with regard to those statistics cited in our intro – they’re really not that scary – as long as you are in that 11.5%. And you can be. Keep your feet firmly planted in good basic foundation of education, and don’t allow yourself to be swept along by hype and high-pressure come-on’s.

Do that and you too can enjoy the cash rewards from successfully day trading penny stocks.

Three of the better day-trading training programs out there are outlined here.

http://www.squidoo.com/daytradingcourses

There are plenty of freebies offered to get you started. There are simulators, coaching programs, webinars, mentoring. You name it, it’s included! And you’ll see there is something here that fits your wallet precisely. If you think education is expensive – try ignorance!! http://www.squidoo.com/daytradingcourses

So, while these steps are applicable to online training for foreign currency trading in the forex market in my case, if you think about it while you read this, it could easily be the same principles that you need to apply to become a professional currency trader in the trading futures markets, or trading options market.

Lets not waste time here is step: 1) Start trying to save your money today not tomorrow or next month.

To trade in the big league or you need a bankroll to play with, and one that is capable to withstand the ups and downs that are a natural part in the trading currency markets. For me, I know this is a problem for most people, but you need to just get an organized budget together. Then stick to it, and if you want it bad enough then it will start to add up to where you need to be in the online currency trading.

So you say “How much money will you need?” Unfortunately I can not be the one to answer that because it will depend on the trading strategy that you chose to implicate, and the amount of leverage that you need to plan on trading with in the course of a day. Also the amount of money that you can take out in profits, is just simply what is extra from what you need in the course of day trading. Though you should not count on having a bare minimum for you currency exchange balance, it you leave a little more in each day then you may be able to start to take more risk. And if you understand that risk means that you have a chance to make a lot of more money, then your on the right track. But I can say, that I see plans from $1000 to a years salary.

The Next Step: 2) Get online training for foreign currency trading.

Common sense will tell you that you need to get training in you subject before you go about risking you money. So with that said, there is plenty of free information to get your self started. With the free information you can get yourself familiar with the terms that they use in the currency trading market, with terms like “fx” meaning forex, or “cdf” meaning, channel definition format. If you just learned something with the last sentence then you know what I mean, because this is also free information that you are reading.

But when that is not enough there is many programs out today, mostly when you register for a trading platform then they will provide you with what you need to get informed in you field of currency trading. The part of the education process that I really am talking about here is necessary, and that is coming up with a good trading strategy that you are personally comfortable with currency exchange rates and among other things, as well as being financially sound with the money management strategy to ensure the long-term viability of your trading strategy plan.

Then the next step:

3) Which can also be simultaneously done with the last step. This is to sign up with demo trading account from a larger online trading broker. Then you can start practicing with your new found trading strategy, while not losing all you money to start, because the demo account uses play money and not real money. At your regular job or, if you have some free time and internet access at your work place, then maybe you can start to get a feel for how a normal day is while practicing trading.

So on to step 4: If you are then already making money trading on “paper,” so to say, and are comfortable with your trading strategy plan, then you need to go ahead and get started having fun with fx trading for real only on a part-time basis. Don’t include all apples in one basket just yet. You need to start out slowly and gain a decent comfort level. Then as your confidence builds up and you have learn from a couple mistakes, then you can start to move money from your savings to increase your bankroll.

Lastly step 5: When you can estimate that your average gains/loses from real trading, from following step 4, are at a level where and when you are comfortable, to say if you were to trade full-time using your present bankroll, you would be making enough profits that slightly go over and exceed your current employment salary, then and only then you are ready to quit your job for once and all, and trade full-time.

Remember, you want your currency trading profits to go over and exceed your present job salary. This will give you the opportunity to maintain a decent current financial level. Also at the same time you can then live with minimal stress in you life and continue to increase your trading bankroll, which will enable you to make more money as the size of your available funds grows sizable larger.

Lastly it is important to have patience with yourself and your online training for foreign currency trading, at each of the steps mentioned above. Mostly the seasoned traders will tell you to maintain emotional equanimity and understand that fear and greed are a traders weakness. If you can keep these strong emotions under control and keep you head straight, the discipline in establishing the while following steps, then you can look forward to making it as a everyday professional trader.

If you liked that and you want to get an even better grasp on Forex go to Prolificinfotoday.com and find more useful free currency trading information

When you are looking at forex trading methods you have choice between following an automated trading system or trading manually to set of rules so which is best lets take a look…

Forex Robots

Have rules build into them and there simply plug and play time efficient and require very little trading knowledge.

There are some good ones about that are sold online but most (about 99%) don’t work and the track records are simply made up and simulated in hindsight. Most carry the disclaimer below, look out for it and forget it:

“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

There are some that have been traded and tested and have real time track records but be careful – you still have to follow it with discipline and for this, you need to know how and why it works long term.

You need to be confident enough in its logic, to stick with it through periods of drawdown, if you dont understand how and why it works and have confidence in its ability to win longer term, your discipline will go and you have no system.

There are even some free ones that make money. I have written frequently on Richard Donchian’s 4 week rule and this incredibly powerful but simple system, is free! Look it up in our other articles.

Trading an automated trading system ( if you find the right one) is time efficient and easy – but you must have a disciplined and patient personality, to keep executing the signals in line with the rules and this is hard, when you had a losing period!

Manual Trading

There is a right way and a wrong way when trading manually – lets start with the wrong way.

The “shoot from the hip” news and story trader – He simply trades on a whim and of course as news is instantly discounted and his emotions are to the fore he losses.

The other trader is the trader who likes to do every trade manually but is still guided by rigid rules in terms of, executing his trading signal and money management.

I am this sort of trader and it suits me as I am involved and although I use rules I can pick and choose the best trades in terms of risk reward – this trading method is obviously my personal choice and each trader will know which method is right fof them.

You can make money with forex robots, just choose wisely and be prepared to have confidence and discipline in the system you follow. As a manual trader you still need discipline but it probably suits the trader who enjoys a challenge.

Which ever trading method you choose, remember to have a disciplined approach and make sure you employ rigid money management criteria, to lead you to long term currency trading success.

NEW! 2 x FREE FOREX TRADER PDF’s

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

Many new traders think that profiting from the Forex involves finding a ‘secret formula’ or trading strategy. So they embark on an exhaustive search for what amounts to the ‘holy grail’ only to find themselves still searching 2 or 3 years later still waiting for consistent profits.

If that is the case, it is unlikely to be the strategy that’s the problem. Profiting from Forex can be done through any number of tried and test strategies. Just purchase a training package from many of the reputable online traders or brokers and you will find them.

The main problem that stops traders from profiting from Forex is in the mind! Successful Forex trading involves a whole range of mind control skills and mental disciplines that take some time to develop.

So if you are still struggling after one or two years of trading the Forex, start to focus your time and energies not so much on searching for a new strategy or trading methodology, but rather on yourself and how you approach and manage trades.

Monitoring Emotional State

How can this be done?

By monitoring our personal responses and emotional state during the course of a trading day.

Once we have a strategy we have confidence in, it is merely a case of waiting until the setup appears where we can employ that strategy.

Here is the problem. The Forex market goes through long periods of consolidation and low liquidity. The anxious trader will desperately look for trading opportunities and deviate from the strategy they have selected.

So things may not be quite right, but it looks reasonably favorable so in they go only to be dismayed when the trade turns against them.

It takes much mental discipline to restrain oneself from going into trades that do not match the criteria the strategy demands.

Once in the trade, mental discipline is again required so the trade is managed properly.

Have you ever found yourself doing this?

You enter the trade after examining risk and profit potential. Your stop is strategically placed 25 pips from your entry point. Price starts to go against you. It gets dangerously close to your stop and you think to yourself, “the trade needs a little more room for maneuver so I’ll push back the stop by another 5 pips.” Price continues to pull back getting close to your new stop.

The novice trader now thinks, “Just another 5 pips to make sure I’m not needlessly going to get stopped out of this trade” and moves the stop back to 35 pips.

Almost predictably in this scenario, price continues stopping out the trade at 35 pips. The trader has now suffered a loss of 35 pips instead of 25 pips which was originally factored in.

Continuing to trade in this manner makes profiting from Forex pretty remote! It takes mental discipline to stick to the plan!

Winning And Losing Responses

Then come the emotions associated with winning or losing.

The newer Forex trader will feel emotions of elation on getting a winning trade. In fact, the whole day can appear bright and cheerful with just one winning trade.

On the other hand, a losing trade can put the same trader into the depths of depression or despair. The day seems grim and hopeless leading to flawed judgment on the next trade which also goes wrong and compounds the attack on the trader’s level of confidence.

It takes mental discipline to keep the emotions in check trying to avoid feeling either elation or despair on the basis of a winning or losing trade.

The disciplined trader approaches order entry almost mechanically realizing there will be winners and losers and that the strategy, if adhered to, will in the end win out!

So how can we develop this tough mental condition and strong mindset if ever we are to see the day when we are actually profiting from Forex?

Just as the trader will keep monitoring the charts, watching price action and candle formations during the course of a trading session, the same monitoring activity needs to be applied to the mental and emotional condition.

Self-Monitoring Sessions

This can be achieved by constantly asking questions of oneself. For example:

• What am I feeling right now?
• Am I in a relaxed state or am I anxious, agitated, or frustrated?
• Am I desperately looking for trading opportunities when no high probability trades are setting up right now?
• How did I react after my last trade whether it was successful or not?
• What can I learn from that and how can I better handle my emotions next time?
• Am I enjoying the experience or am I nervous of the markets?

Many sports participants and Olympic medalists spend huge amounts of time and resources on getting the right mindset. Coaches work with them to develop mental discipline and mind conditioning so they perform well under pressure and become aware of their own emotional state and feelings.

Often, it is not so much the level of skill or physical strength that makes the difference between the winner and the rest, it is competitor who has mental toughness who has the edge!

Focus On Mindset

So if you have been trading the Forex for one or two years already with mixed results, why not focus on your mindset.

Select a strategy that has a tried and tested track record by other traders and professionals who are already profiting from Forex, and then spend most of your time and energy developing the mind skills necessary to get into the small percentage of traders who actually make money on the Forex!

To learn how to preserve your mental and emotional resources in addition to your account equity click here:

http://www.vitalstop.com/Forex/Advisor/forex-day-trading-mental-equity.htm

Do you know the important lesson Mohammed Ali teaches us about Forex trading? Read it here:

http://www.vitalstop.com/Forex/Advisor/forex-online-trading-mohammed-ali.htm

For a free pivot point calculator, Fibonacci calculator and the best free economic calendars click here:

http://www.vitalstop.com/Forex/tools.html

Many traders believe the market can be predicted and charts move to some higher force – their wrong. Another group believe the fundamentals drive prices and their wrong to – if you want to win with your forex trading strategy you need to understand the key factor which is…

Market sentiment

Market sentiment is the views of all the traders added up and it equals price and many people totally misunderstand its importance.

We all have the same facts to look at – but we all draw our own conclusions about what they mean and this is the price. So the fundamentals are NOT important, it’s what traders think of them en-masse which is and this is why you can’t trade breaking news.

Charts reflect the bullish or bearish sentiment to a degree – they show you the reality of what traders think – but they don’t give you clues to the future of what humans may do next – that’s why all the clever, mathematical, predictive theories DON’T work.

So how do you judge and trade sentiment?

Well there is a great tool you can use and it’s free and it’s called The Net Traders Report from the CFTC. It gives you an idea of what traders are doing in currency futures but is also applicable to cash.

Follow the Smart Money

Its real advantage is it gives you free access to what the smart money is doing and this is a huge advantage in making your forex trading strategy work.

The report shows you what 3 main groups are doing.

The commercials

These traders are the ones who do it as hedging and their not motivated by greed and fear and know fair value

Large Speculators

These are funds and big individual traders

Small Speculators

These are all the rest of the traders

The way to use the report is to watch for the commercials to sell or buy heavily, when they are opposed by both speculator groups. The commercials move slowly as their hedging and only will do so when prices have shifted to far from fair value.

The commercials have a history of being long at important market bottoms and short at market tops.

When you see big extremes you know a break is coming.

The way to use the report is to spit your set up and then move to your charts for confirmation. The Net Traders Report gives you the set up which indicates when prices have moved to far from fair value. You then wait for the indication of a turn on your forex charts – then hit it.

Normally, once the market eases the speculators will get shaken out quickly, as they scramble to get out governed by their emotions, triggering a counter trend.

The commercials are the smart money and if you want to win, you need to look at their actions – they will tell you when a market has moved to far from fair value and when greed and fear are creating a sentiment extreme.

You can then hit the big contrary trades for big profits.

It’s a simple, free tool that gives you an insight into sentiment and its an extremely powerful addition to your forex trading strategy.

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Forex trading tutorial – one of these can be very helpful in giving you the basic knowledge from which to launch a successful forex trading career. In this article, I want to give you a few beginner basics to start you on the right path.

Never Trade On Instinct

Never make a trade based on instinct. Always use logic. Think “Spok” in Star Trek. He would have made an incredible trader!

I had a friend who made lots of trades based on gut feeling. He did well for a couple of months and then he blew it all in a single day. His wife is still not happy about that!

Learn broker Much As You Can

The forex market is not for lazy people. Sure, you don’t need to know much to start trading. But you owe it to yourself to continually learn.

Don’t worry – the great thing about learning forex is that it is so interesting. You learn about the world and it’s politics and economics and about the psychology of people in general. You’ll love broker I’m telling you!

Always Have An Exit Strategy

Let’s say you place a trade because you think the price will go up. So, how long will you ride this trend? What if it goes higher than you expected? What if the price suddenly turns around?

Always have an exit strategy before placing a trade. Either bail out if the price falls against you by a fixed percentage or make a decision as to how long you will hold on if the price goes even further in your favour.

Never Risk More Than You Can Afford To Lose

I’ll give you an example of this. I once lost 20% of my trading balance. I decided to go on what I thought was a sure thing and trade the remaining 80%.

You can never get it right all the time and on this occasion I lost that remaining 80%! That taught me a big lesson – never let emotions get the better of you and trade more than you can afford to lose.

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