If you are considering forex day trading then you need to read this article first. Why?
Because, day traders have been making the simple critical error for a number of years its obvious yet traders still make it and its this.

Day trading does not work anymore.

We all have the same information at the same time and all moves in short term time frames are random. We will look at this more in a moment but let’s first give you the reality check on all those trading systems that claim big gains.

They all make big claims but there not real gains there in hindsight on paper and you will always see a disclaimer. Tell me would you trust any system with this on 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”.

I wouldn’t but thousands do – this disclaimer allows you to make up anything you want and say hey it’s just a simulation!

What good is that? – We need to make money going forward and don’t have the luxury of knowing the closing prices.

Also why on earth would you trust someone saying how great their system is when they haven’t had the courage to trade it for themselves. Of course if it worked then you wouldn’t, even need to sell it judging by the track records the vendor would be rich beyond their wildest dreams – yet they offer you these riches for $100 or so bucks UMM.

You cannot tell where short term prices are going and that’s a fact and that’s why you never see a day trader make real gains – Your going to lose so don’t try. If you want to trade short term use a forex swing trading system.

Moves are short term a few days to around a week, you get plenty of action and it can be very profitable. You will find lots of swing traders who make money and no day traders.

To win you need to get the odds on your side and that means trading a longer term time frame. If you have not discovered swing trading check it out.

Day traders tend to be lazy or arrogant or think currency trading is easy – well its not that’s why 95% of traders lose all their money ( 100% in the case of day traders!) and of course you wouldn’t expect it to be with the rewards on offer

Fact is you need to get the right forex education and get the odds on your side and you can’t do that in a random trading environment.

Forex day trading will see you lose because you can’t get the odds on your side, so try swing trading and you can get the odds on your side and enjoy forex trading success.

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

For free 2 x trading Pdf’s with 90 of pages of essential info and more on Swing Trading Systems visit our website at: http://www.learncurrencytradingonline.com

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

Of course you can buy a currency trading robot from a vendor but the one enclosed wont cost you a cent and will beat 95% of those sold – lets take a look at it.

Before we take a look at our free one, it lets see why most paid for ones fail to deliver and why you’re better off not paying for one.

Generally, they have never been traded and come with a simulated track record, using past data. This is the disclaimer you will normally see:

“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”.

What generally happens is a system doesn’t make money on first attempt, so the vendor adds more rules in and bends the system to fit the data. No two pieces of data replicate themselves exactly again and the system ends up wiping out the user.

This is known as curve fitting and most sold systems do it.

Now let’s look at our free one.

Its one rule that’s it so you can’t bend one rule by its very nature!

A Simple System for Profits

Now let’s look at the system. It’s called the 4 Week Rule and was devised in the late seventies by trading legend Richard Donchian.

Originally it was devised to work on commodities but works on any trending market and currencies trend well.

Here is the rule:

Cover short positions and enter longs when a price exceeds the highs of the previous 4 calendar weeks. Close long positions and go short when a price falls below the lows of the previous 4 calendar weeks.

That’s it!

Very simple – but it makes money and many of the world top traders have used this system and still use it today. Simple systems work best as they are more robust in the face of ever changing brutal market conditions.

The system works great in any trending market and will put you on the side of every major trend of course when the market is not trending it can suffer drawdown and here you may wish to alter the exit rule.

Rather than exiting on 4 weeks you can try 1 or 2 weeks then go long or short on the next 4 week trading signal.

This system is a long term trend following breakout based system and unless markets were to stop trending long term it will continue to work.

Its free so don’t discount it, trading legends such as Richard Dennis were fans of it and if its good enough for him then it really is good enough for you – it works.

It’s a simple highly effective logically based system that anyone can understand and use and you should consider it. Try this currency trading system in a demo account and follow it rigidly to prove the profitability to yourself and make it part of your forex trading strategy for success.

NEW! FREE FOREX BREAKOUT TRADING SYSTEM PDF

For free 2 x trading Pdf’s, with 50 of essential info and more on the 4 Week Rule and Currency Trading Robots visit our website at: http://www.learncurrencytradingonline.com

Of course you can buy one but why not get one that doesn’t cost a cent, is simple to understand has worked and will continue to work? This forex robot beats almost any you see for sale online so why waste your money?

This system beats all the ones you see for sale because – its got a track record in real time and is NOT curve fitted.

Most systems you see for sale, have never been traded and have there track records bent to fit the data, in meaningless paper simulations.

Seen a forex robot for sale? Then look for the warning below – your bound to see 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”.

The vendor simply bends the track record in hindsight, until it works on the data.

As no two pieces of data ever replicate themselves exactly it loses. Would you trust a system with the above disclaimer written on it I wouldn’t consider a system which has made paper money, if I want paper profits I can play Monopoly!

The one we are going to look at is different.

Many top traders have used and even the legendary Richard Dennis was a fan of this forex trading system.

Here it is and it is based on just one rule:

In a calendar month buy a new 4 week high or sell a new 4 week calendar low. The system is a stop and reverse so will always be in the market – that’s it.

Simple?

Sure it is – but it makes money and that’s what any forex trader wants.

It will get you on the right side of every major trend and works in any trading market not just currencies.

It was devised back in the seventies by legendary trader Richard Donchian, who is considered the grandfather of modern trend following. Originally, it was devised to trade commodities but works on currencies, as they are great trending market.

No system is perfect and this system will get chopped when markets don’t trend, so you may wish to re consider the exit rule and exit on a 1 or 2 week high or low and go flat, then enter on the next 4 week signal.

Will most traders use the above?

No they wont, they will say its to simple and can’t work- but test the rule and it does and always will, because its based on trending markets and breakouts.

In fact, simple systems work best, because they are more robust in the brutal world of real trading, with fewer elements to break.

It may not have the image of a neural network, system based on chaos or Fibonacci but in the cold hard world of trading where fancy names don’t matter, it will probably beat 90% of them hands down.

So if you want a robust forex robot, which is simple to understand, takes only a few minutes to apply and makes big long term gains check it out and remember it will cost you nothing – just some time and trust me, that will be time well spent.

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

For free infopack and free research and more get your 5 x FREE Essential Forex PDFS visit our website at: http://www.learncurrencytradingonline.com

Forex trading for beginners is straightforward if you have the right mindset and get the right forex education however, you must avoid the mistakes enclosed which will slash or even worse wipe out your equity…

Here are the 10 most common mistakes in no particular order of importance – there all important.

1. Don’t Day Trade or Scalp

All short term volatility is random, you can’t measure what millions of traders will do in a few hours so don’t try.

2. Avoid Most Forex Robots

I see these forex trading systems all the time and they all claim great profits but the track records are all simulated in hindsight and have never been traded.

If you trade one of these you can kiss goodbye to your equity.

3. Don’t Predict

If you predict you are simply hoping and guessing and that won’t get you far in currency trading or life – trade confirmation and the reality of change and don’t guess.

4. Markets do Not Move to Science

Many people claim they do and follow the methods of Gann, Elliot and Fibonacci but they don’t work.

If markets moved to a scientific theory, we would all know the price in advance and there would be no market – common sense yet, many traders fall for this ridiculous idea, don’t join them.

5. The harder you Work the More You Make

In a normal job yes, in forex markets no.

You get paid for being right with your forex trading signal and that can take you ten minutes or ten hours – you earn your rewards for results.

Work smart not hard.

6. Following expert Opinion and News Stories

The markets are a discounting mechanism and news is discounted instantly, it also reflects the greed and fear of the crowd who lose. Will Rogers once said:

“I only believe what I read in the papers”

He was joking of course – but it’s surprising how many people follow the news and try and trade it – don’t do it!

If you do, you will end up losing.

Markets move on trader’s view of news and their emotions. The facts are unimportant its how they are perceived that determines the course of events.

7. Using a complicated method

10 indicators are better than 2 – dead wrong.

A complicated forex trading strategy , will not as a general rule beat a simple one as it has to many elements to break.

Simple systems have and always work best, as they are more robust.

8. Making Money in Demo Account Means You Will Make Money for Real

No, a demo account helps you learn how to trade not to make money and you need to understand this:

There is no pressure on you and therefore it’s not a real trading experience.

9. Not Being Patient

Many traders think the more they trade the more they will make – wrong. You get paid as we said earlier on for being right and that means waiting for the high odds trades.

I know traders who trade around 10 times a year and make 200% or more.

If you want fun and excitement do something else. If you want to make money, being patient is a key element to learn in your forex education.

10. Snatching Profits to Soon

When you first start trading, you will be tempted to snatch profits – but look at a forex chart – the big trends last for months weeks and years.

if you have the courage to hold them and take short term equity swings against you, you will be well rewarded when the trade is finally closed with a thumping profit.

Traders have more problems holding profits than they do cutting losses, don’t make this mistake.

Now here is the major problem that causes most losers to lose – I will ask you the question:

What’s your trading edge defined? i.e. why will you win, when the vast majority 95% of traders lose?

What’s Your Edge?

Don’t know what your trading edge is?

You don’t have one and will lose and it’s back to your forex education until you do.

We hope you found our forex trading for beginners of use and that you will avoid them in your forex trading strategy and enjoy currency trading success.

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

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

Automatic forex trading systems can be the road to ruin and it is for most traders but you can win with them and make profits you simply need to know what to look for in deciding the system that’s right for you…

First avoid any system that carries this disclaimer.

“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 this will be stated

“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”.

So the track record is not a track record of gains at all it’s a paper simulation and you should avoid these

You want something that is proven to work in real time so seek out a forex trading system which has been proven and this means the following:

1. Audited track record at least two years long

2. Logic is fully disclosed and not black box

You need a real track record to show logic is soundly based and this really needs to be over a few years. Many systems present a track record over a couple of months – this proves nothing. Its long term you want and a variety of market conditions.

Forget about the idea of practicing in a demo account unless you want to do it for a few years it’s a waste of time. Look at the logic and track record check the vendor’s background and see if it makes sense to you. You also need to know the logic it’s based on so you can have the confidence and discipline to follow it through losing periods.

Not being able to ride out a drawdown period , is a common problem for traders they quit early when they could have won don’t make the same mistake expect drawdown as part of normal forex trading.

Many traders think it’s hard but you can build your own system and it’s a lot simpler than you may think. Furthermore there is an excellent free system we have written on the 4 Week Rule and we have used this since the eighties with success and great news is its free!

So if you want to win, make sure you avoid the simulated track records and get a real one that’s proven. You can also use the free one we have given you or build your own. Then understand any automatic forex trading system you use needs to executed with discipline, which comes from confidence and knowledge, on how and why it works.

So there you have it, your forex trading system can be a road to riches or ruin. If you want the route to profits and currency trading success, note the tips in this article.

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

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