The Forex Mini Account - The Best Way To Start Off Trading Forex On Low Capital- Part #1

Submitted by: Peter Lim ,CFP

A lot of people assume that forex trading will require a huge capital base. As a result, they would instantly decline to entertain any proposal to start trading in forex, preferring to remain with trading stocks and shares which is more affordable. This is simply not true, because in forex trading, you can start off with minimal capital when you utilise a forex mini account.

There are four main advantages of a Forex Mini Account.

1. Low Minimum account size

$300 will allow you to start a forex mini account. This is affordable for most people to start off with in forex trading. When you consider forex trading as a business, there are very few businesses costing only $300 as a startup capital offering lucrative prospects of earnings within a very short time.

2. High leverage

You can get leverage of 200:1 In the mini forex account, there is a small margin deposit required fixed at $50 for per lot traded. This amounts to a stunning leverage of 200 to 1. One of the key factors to accelerate profits is to use trading vehicles of high leverage, and a forex mini account certainly meets or fulfils the definition of high leverage.

3. One pip is equivalent to $1

Trading in pips allows the new forex trader to scale down his risk. With such a low denomination, the trader is able to deal with forex trading with less pressure and more discipline. For example, a 20-pip floating loss is approximately $20, so that if you have a 20-pip sudden move against the direction of your trade on a 100K account, that is translated into a $200 floating loss. In every transaction, by using a Mini account, the trader does not end up with a total loss as he loses only a small amount on every losing transaction. This allows him to follow his trading strategy in a disciplined manner.

4. A smaller trade size

The mini forex account trades in smaller contract sizes of 10,000 units which is 1/10 th the size of the standard account. This smaller trade size allows traders an opportunity to trade live with less overall risk. As a result, a beginner can transit or move into forex mini trading quickly from paper trading. While the standard lot is 10,000 units, the beginner trader can increase trading to more lots or units as he gains experience and confidence, and as his profits increase as a result of disciplined trading.

One hidden benefit of trading the mini forex account is that traders can become familiar with the quality and also the reliability of the forex trading platform or trading station of his broker. This is because the forex mini account utilises the same state-of-the art trading software as that for normal sized forex trading.

Mini accounts are recommended for traders with account balances of less than $10,000, allowing them more trading opportunities without over leveraging their account and hence get more staying power in the market.

We will discuss how you can exploit these features of a forex mini account to your advantage in Part #2 of this article so that it is easier to earn a consistent income trading on low capital and lower risk.

About the Author: Be sure to read Part 2 of this article to discover how you can acquire the powerful trading knowledge from an experienced mentor to trade mini forex and where to secure an online mini forex trading account. Visit my blog http://1forex-trading.blogspot.com to read Part #2 of this exciting article.

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Learn Forex - How To Make Money Trading Forex, The Trade Process

Submitted by: Tom Leroy

On the forex market we are trading currencies, exchanging a currency for another. So we buy a currency hoping its value will increase compared to the value of the one we are selling. Yes, we, at the same time, buying a currency and selling another currency. An example may be a little more understandable.

We have dollars and want to buy euros. The pair traded here is EUR/USD, and the exchange rate is 1.25. You can read it like this : 1 euro equals 1.25 dollar. We hope that the euro value will be higher so that later we will buy more dollar. The exchange rate increase to 1.35, in this case we bought 1 euro using 1.25 dollar, and it now equals to 1.35 dollar. So we exchange our 1 euro back into dollars and now have 1.35.

We bought 1 euro for $1.25 and sell it back for $1.35, we made a 10 cents profit. Of course on the forex market you will not buy only one euro, this will be few hundreds or thousands, depending on your budget and the leverage offered by the broker.

Exchange rates are always moving. When I say that you "hope" the value will increase, many factors can be used to predict the rate, based on technical or fundamental analysis. This is not the topic of this article so let's have another example of a selling trade.

We take the same pair (EUR/USD) as above starting with the same exchange rate (1.25). We want to sell euros so we can buy it later at a lower price. Here we hope, or know that the value of the euro will depreciate. We sell one euro for $1.25. The exchange rate drops to 1.15. That means that now we only need 1.15 to buy our euro back. We exchange our dollars back into euros and again, make a 10 cents profit.

When you buy or sell, you always buy or sell the base currecy. The base currency is the first one in the pair. In the pair EUR/USD, the base currency is the euro and the USD is called the quote currency. When you decide to buy, you buy euro and sell dollars. When you decide to sell, you sell euros and buy dollars.

Think that you always need to exchange something two times. If you buy something and want to make a profit from it, you would prefer to sell it at a higher price. And so, if you are selling something that you will need to buy again, you would prefer to have it at a lower price.

About the Author: You can find more forex resources on Forex Business Opportunity website.Learn Forex at http://www.ForexBO.com.

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The Forex Market: Can You Really Make Money in the Forex Market?

Submitted by: Robert Strakkenn

If you've never traded before or just getting started and Forex trading you may or may not believe that you can make money by trading in the Forex market.

The truth of the matter is that you can and it may not be nearly as difficult as you think. This is not to say that you can take $100 and make money with no idea what you are doing. You can start with a modest amount of money and grow that amount into something substantial over time.

There are a few basic rules to follow that apply to all trading and to all markets. The first rule is to adjust your expectation levels. Don't blindly believe the hype that you see advertised just because some guy who says he has made a lot of money in Forex shows you a picture of a large bank balance. We've all seen the ads similar to this, "I make six figures a year trading Forex and you can too starting with as little as $100." It is highly unlikely that you will make six figures yearly from a $100 investment in a short period of time.

Another hard and fast rule that you must grasp in order to make money in Forex trading is that you must control your risk at all times. Risk control allows you to stay in the game and take advantage of the many profitable trading opportunities. One of the most important functions of risk control is to make sure that no series of losing trades will take you out of the game.

You see every trading system will have times when things don't go as planned. During these periods of time a trader will experience a drop from an equity peak to an equity valley, this is commonly called a drawdown. It should go without saying that if you do not have enough capital in your account that you will not be able to survive these drawdowns.

This is why properly funding your trading account is of paramount importance, although you will see many advertise a ridiculously small amount that you may open a trading account with. I personally consider those small amounts of $100 and $250 to be practice accounts with real money. Also I don't know of any Forex trading system that could honestly recommend starting with $100.

Using a protective stop loss is one of the more popular methods of risk control. I do hear of people recommending not using stop losses. I personally believe using a stop loss is an absolute must. It simply does not make sense to allow a single trade or a series of unreasonably large losses to wipe out your trading account. Many a trader has blown out an account by hoping the market would move in their direction rather than assessing the worst-case scenario and putting a protective stop loss in place.

The phrase you should always keep in mind is, "If I control my risk, I control my reward". I know it sounds like common sense but you would be surprised how many traders overlook this simple phrase that can mean the difference between success and failure in Forex trading.

About the Author: I have a lot more Forex trading tips and techniques for you as well as Forex Avenger review information at http://www.NewForexReview.com

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“How To” Start Trading The Forex Market? (How To Read Forex Price Charts)

Submitted by: Martin Maier

Forex Price Charts, what DO they mean and HOW to use them?

Important numerous facts as discipline, trading rules, not being greedy etc., but one of the most important things is:

LEARN to read the charts as Charts represent the lifeblood of the market.

I admit that reading charts, and interpreting patterns, are more an art than a skill. Base and apply your entry and exit decisions on YOUR OWN combined methods of technical and fundamental analysis.

FOREX charts, are easier to interpret and to use. They reflect a slower moving, stable economy of a country, compared to the stock market, with its daily drama of company reports, Wall Street Analysts and shareholder demands.

Unlike stocks, currency charts do not spend much time in trading ranges and have the tendency to develop strong trends. Furthermore, Forex with its 4 Mayor currencies is easier to analyze than tens of thousands of stocks.

( Mayor currencies are: USD/JPY, EUR/USD, GBP/USD and USD/CHF)

The complimentary FREE live charting software, with the ultimate cutting edge technology provided by http://www.fenixcapitalmanagement.com/

TRADING PLATFORM

will be absolutely sufficient for you to analyze and watch any one currency pair.

Understanding just a few basic points about the technical analysis of currency chart can lead to increased profit potential.

Pricing - Price reflects the perceptions and action taken by the market participants. It is the dealing between buyers and sellers in the Over-The-Counter (OTC) or “interbank” market that creates price movement. Therefore, all fundamental factors are quickly discounted in price. By studying the price charts, you are indirectly seeing the fundamental and market psychology all at once , after all the market is fed by two emotions - Greed and Fear – and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.

Data Window Chart – FCM and most online charting stations, when you click on a price bar or candlestick, it will display a small box of data usually called a display window which will contain the following items:

DATA CHART WINDOW

H = Highest Price

L = Lowest Price

O = Opening Price

C = Close Price (or Last Price)

The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart:

Bars Charts -

Price bars are a linear representation (a line) of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. As an example, I use 10 minutes, 60 minutes and daily time interval for my systems. Each bar has similar characteristics and tells the viewer

several important pieces of information. First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period.

Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are now known, are used to represent the same information as Price bars. The only difference is that the difference between the open and close form the body of a box which is displayed with a color inside. CANDLESTICKS

A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open.

If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail.

Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars.

Chart Intervals & Time Frames:

A chart Time Scale & Period, or time frame, basically refers to the duration of time that passes between the OPEN and the CLOSE of a bar or candlestick.

For instance, with your broker software, you will be able to view a currency pair, in a 1-hour time frame over a 2-day period, 5-day period, 10-day period, 20-day period and 30- day period.

1 minute 5 minutes

1 hour

Most of the short-term time intervals (5-min and 1-min charts) are used for entry and exit points and the longer- term time intervals (1-hour and daily charts) are used to see where the general trend is.

About the Author: Written by Veteran Trader Martin Maier, Founder of Fenix Capital Management He is the developer of various futures and commodities trading programs and his systems have been ranked and rated by various large American Investment Profile Rating Companies such as STAR and MAR.

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Forex Market Vs. Stock Market – Which Is Right For You?

Submitted by: Chris Murphy

You have probably traded stocks before, but have you ever traded currencies? Currency trading goes back thousands of years and was the first market used by nations, traders and merchants to facilitate the open market process. The trading of national currencies has its own market called the Forex, which is an abbreviation for The Foreign Currency Exchange Market. The Forex Market allows individuals, companies, banks, governments and nations to take advantage of currency fluctuations in the world market to profit from judging the correct direction a currency moves against another currency. Currencies are traded as currency pairs.

The Stock Market:

The stock market has been one of the more traditional ways to make a profit from an investment. You often hear how the stock market can make a person more money from an investment than just about any other market. While you can make double digit profits from the stock market, and it usually produces more of a return than CD’s or bonds, it is not always the easiest market to participate in. With tens of thousands of companies to choose from when investing, it can be downright daunting. Of course you can stick with mutual funds or index funds and make low double digit gains; it is still difficult to perfect a system that can make more than 10 to 15% on a yearly basis. The stock market can be complicated to say the least. Not only do you have to really do your homework, but you never know when a company will decide to go bankrupt or fold altogether. Penny stocks are notorious for losing people money. The large cap stocks are decidedly better, but we all know what happens when a rogue CEO gets in trouble…the company’s stock tanks. There is a lot of risk and uncertainty when trying to play individual stocks while going for 20 to 30% gains in short periods of time.

The Forex Market:

The Forex Market is a lot simpler and tame compared to the stock market. However, it can take more self education than the stock market since there aren’t as many TV and radio shows dedicated to Forex or FX Trading. Since the Forex Market is an over the counter (OTC) market, by definition it is an open, worldwide market with no central trading floor. If it were a market that had one central trading floor, it would be unable to be open 24 hours a day for traders. By definition and not by obligation, the Forex Market is open to everyone and it is open 24 hours a day, five days a week.

Forex Trading takes place with currency pairs, which are two currencies that are traded in relation to each other. Some currency pairs are more popular than others, so the need to learn all of them, and there aren’t that many, is not absolutely necessary. The key to trading Forex Markets is to develop a good strategy and stick to it. When you get to know a currency pair and your research points you to a certain position that you feel will make you a profit, you can then work that position all day and night if you wish. This allows for potentially much greater profits than you can find in the stock market. If you enjoy doing your own research and not simply following what everyone else does, then the Forex Market may be the perfect investment tool for you.

About the Author: Chris Murphy is a freelance writer who publishes articles which are of interest to his readers. For additional information on the Forex Market vs. the Stock Market, please visit http://www.lyonsforex.com

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Forex Trading: Spread, Trend and Leverage

The Spread

A spread is the difference between buy and sell, or the Bid and Ask (demand and supply). In other words, this is the difference between the selling price of the broker to its customers, and the purchase price of the brokers to their clients.

If you buy a currency pair and sell it immediately (ie before there is a fluctuation in the exchange rate), then you will lose money. This loss is due to the spread of money. At any given time, the amount required to sell a currency pair will be less than the amount needed to purchase the same currency pair.

For example, rates of supply and demand EUR / USD might be 1.1515/1.2515 on your bank, which would be equivalent to a spread of 1,000 Pips (Pips = Percentage in points. One Pip is equal to 0.0001 of the rate currency exchange.

The lower spreads are better for investors because it means that they need a much smaller movement to profit from trading operation.

The Trend

The trend analysis is based on the idea that what has happened in the past can give traders an idea of what will happen in the future. Although this may seem very easy, to be able to identify when a currency pair is in a trend and when not, it will really help to increase your chances of having a consistent success in the Forex market.

You should be able to locate the direction of the trend and take advantage of the movement, placing an order in that direction.

If a trend is upwards, then the exchange rate is increasing, so by buying the currency pair will give you a better chance of profit. Conversely, if the trend is downwards, or the exchange rate is decreasing, by selling the currency pair will give you a better chance of making money.

The easiest way to identify a trend is taking forms through the graphs of the price. These forms, or patterns, can tell a lot about the fact that the market is moving in an upward or downward trend.

Leverage

Leverage is a very important part of Forex trading, and it is vital that you know exactly how it works and how to use it. It is in fact the means by which traders use to refer to the portion of total investment in the real value of a position.

Online Brokers usually provide their customers with several options to borrow capital, so that traders do not have to invest thousands of dollars to make a profit. When you trade with a leverage of 1 to 100, this means that for every dollar you invest in the market the broker will invest $ 99 for you. As a result you can control an amount of $ 10000 investing only 100.

You probably already know that a great opportunity involves a great risk. In fact, as small fluctuations of currency exchange may earn you a significant sum of money, you can also lose your money very quickly. The higher the leverage, the higher the profit, the faster you will be subject to losing your investment. With a leverage of 1:300 you can make more money than a leverage of 1:100, but also exposes your initial investment at a higher risk. 

About the Author

Article Written By: LonelyPen 

Forex Trading: Creating a strategy

One common mistake for those who are entering the world of forex is to start trading without a strategy. Because of the attractive features of this market, most new traders are starting too eager to test themselves. This approach is dangerous because they often believe they can operate earning right away, sometimes they also think that they can make a fortune in a short time, but pretty soon they get tired and end up having the wrong approach that leads them to a path of repeated losses.

The first step to operate profitably is to create a strategy or trading plan. Creating a trading strategy is of crucial importance and is also quite easy. To proceed with the creation of a strategy, traders should consider the following:

Before opening an operation there must be a good reason. Very often traders open operations out of boredom or to feel involved, but with these reasons you go straight to the disaster. The reason to buy or sell a currency pair has to make sense, does not matter if it is based on fundamental analysis or other techniques, the important thing is to have a reason.

The choice of the currency pair to trade can seem simple but in reality it is not. Experienced traders always suggest to focus on some of the main cross (EUR / USD, GBP / USD, USD / JPY).

Define the timing, especially when placing the operation and how often to perform trading operations. From here you establish if you are day trader, or if you prefer to hold positions for longer periods of time. You must consider whether to open positions before or after important economic news, if during the night, the opening of different markets etc.

Define the objectives, the ultimate goal of trading. What are our objectives of take profit and stop loss. It is important to try to place your take profit and stop loss before entering the market, since they can always be changed later if the market changes. Most traders tend to close the transaction quickly, in case of profit, while allowing continued operation in case of loss.

Placing a stop loss at the beginning of the operation will be easier to have a reference point, and it will allow to have more discipline. In addition, many beginners tend to have very unrealistic goals. You can have high returns during the first year of investment, but it is not easy to achieve. With these unrealistic expectations, many traders do withdraw, even before they had time to learn the behavior of the market.

For the first year, the draw is a good target. In fact, the majority of traders do not get to draw and those who make 20% or 30% on their initial investment can be counted on fingertips.

Money management is the main aspect of trading. First you have to accept the fact that no one can have 100% of transactions closed in positive, and that everyone, even the experts can make mistakes. The key point is to accept the fact of being wrong, before the mistakes can affect your money. To do this you must specify the amount to invest, after which what you are willing to risk on each transaction.

The more experienced traders risk 1% to 4% of what they have on the trading account. Although to the new traders may seem too low, this will help avoid big losses and create the necessary discipline that, by continuing to operate in the market, will help to enhance the experience. It is very important to have a higher percentage of transaction and a positive average profit higher than average losses. If the average loss is twice the average winnings then the traders would be forced to close 10 transactions in positive, to cover 5 negative.

About the Author

Article Written By: WolfingerStain 

Forex Trading: Forex Indicators for Beginners

When you start in the forex trading market, it is important to avoid errors. Usually there are a number of common mistakes that investors make, especially those who are still new. Since forex trading is one of the most unpredictable investments you can make, partly because of market volatility, it can be difficult, if not impossible, to find a strategy that is infallible.

What are the best forex trading indicators and how to be successful in this market, even working from home in your spare time? Generally there is no exchange market indicator, best of all, because there isn't always one indicator which function perfectly. It is only by combining the various currency market indicators that you can build a solid trading strategy to be successful.

Two of the indicators used by traders at the beginning in the currency market, are the simple moving averages and Bollinger bands.

The simple moving average is calculated starting from the average price of a given currency pair for a specified number of periods. You can create moving averages starting with the opening, the maximum, the minimum and the closing values.

Bollinger bands give an idea about the instability of the market and help to determine the standard deviation of the market. This gives the trader an indication of the scenarios overbought and oversold, helping to choose its entry points and goals.

Two other indicators to consider are the stochastic and the Relative Strength Index. The first is used to find trends in the market, so that you can always know exactly which way to open up their positions. The stochastic is instead considered by many to be the indicator as to the final decision to open a position or not. It is easy to use and very effective.

So we have seen that these are the best forex indicators for beginners operating in the forex market. Being able to learn their use really helps the trader. They can in fact be used to make trading in the direction of the trend or even to trade against it. 

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Article Written By: WolfingerStain 

Forex Trading: 4 Stop Loss Techniques

Since the stop loss subject is extensive, involving many other topics, I will discuss only the initial stop loss that is necessary to control the losses if the trade will not be successful. Let us now see the four best stop-loss techniques applicable to many different trading systems.

Stop based on volatility (Volatility Stop)

Imagine a market where the candles have a width of 120 pips. It makes sense to put a stop loss at 5 pips away from your point of entry? Unless your strategy is not a form of super-extreme scalping the answer is No. If you get into a certain direction you have to ask if you're giving the market time to develop in your favor, without which, insignificant fluctuations close down your position prematurely. On the other hand, one stop too distant, will lead to losses that you can hardly recover. Looking at the average volatility you can understand, therefore, where it makes sense to place the stop loss based on the breadth of recent market movements. Thanks to the ATR (Average True Range) indicator you can easily obtain the volatility of the last N bars. The value obtained will be the basis for choosing your stop.

Stop based on support and resistance

Another powerful way to set the initial stop loss is based on what is the reality of the graph. Markets will offer a wealth of information: the prices are clearly moving in one direction? The prices are moving wildly within a certain range? Through observation you can have a number of ideas to find a price level above which we have little hope that the trade turns in our favor in the short term, or not to proceed further against us by exposing them to excessive drawdown.

Stop based on indicators

Some traders, lovers of technical analysis, tend to base every aspect of their trading on the results offered by various indicators: list the various methods used would be impossible, so I will limit myself to one example. A fairly common technique is to enter and exit a trade based on the crossing of two moving averages.

Stop fixed to N pips

The stop loss is set at a certain number of pips from the opening portion of each position. This is an ordinary technique, where the distance is fixed and equal for each trade, such as 20 pips. You should exclude the idea of ??using a stop of this type since there are important gaps.

First, it disregards the fact that volatility varies over time and is never fixed. Generally, the shorter the timeframe used, the greater the possibility that the volatility changes. Secondly, it is not connected to the reality of the markets: it does not consider resistance and support or other guidelines which may provide an assessment of the graph.

The only people who I think can use a fixed stops are experienced traders who intend to work with a very short term scalping technique, while maintaining a very tight stop loss.

Choosing an option or the other, would simplify what cannot be simplified. Every trading system, and each trade is a special case.

I have tried to provide meaningful tools to check your initial stop loss: making good use of them can greatly improve your trading. 

About the Author

Article Written By: WolfingerStain 

Forex Trading: When it is not advisable to trade

We know that the Forex market is opened 24 hours on 24, five days a week, or from Sunday evening until Friday evening. The weekend all the exchanges are closed, so even currencies are stationary. The Forex opening on Sunday coincides with the opening of the first exchange of the week in the East.

Although it might be possible to do Forex in every moment of the day and in each of the times when the currency market is open, this does not mean that every moment is also good. There are times when it is more suited to trade currencies.

To have the greatest chance of success is absolutely indicated to do trading at one of these periods, not outside. The fact remains that even outside the periods of greatest importance is possible to have good results.

Surely, you do not make trading Sunday evening, as the majority of exchanges are still closed, especially those of greatest importance, such as the New York Stock Exchange or the London Stock Exchange which is the first in the world for currency traffic.

Also Friday and Monday morning are times to be avoided, since it is more difficult to make forecasts, and you risk to lose everything you have done during the week or starting on the wrong foot.

Then you should not trade close to, and just after, the release of a very important news. The reason is simple in this case, it would be better to wait for the market reaction to this news and try to ride the wave.

Also you should not do Forex during holiday periods, such as at Christmas or at mid-august, since the trades are substantially more thin and it is difficult to make a good prediction.

All other times are more or less good. Remember however that also depends on your way to trade. 

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Article Written By: WolfingerStain 

Managed Forex Trading Software Service: No Forex Trading Required

Submitted by: Winsor AGA Hoang

Have you ever come across a TV ad, spam email or other media about trading 15 minutes a day in the Forex market? Seriously, it does not work. Forex is a 24-hour activity, and unfortunately, we cannot stay awake 24 hours a day, trading the market. All successful traders are full time professionals, and they work extremely hard 10 to 12 hours a day, monitoring the market to earn their paychecks. Fifteen minutes a day to participate in this market is not feasible, as it would only give you enough time to turn on your desktop computer and launch your trading platform, let alone be successful in trading this market.

Many inspired traders have full time jobs or don’t want to commit to full time trading; hence, the notion of trading the Forex market 15 minutes a day is extremely tempting. Imagine that the Forex market is filled with professional full time street ball players. If you only practice 15 minutes a day and come onto a court, the professionals will take your money before you know it. So why are there always new and inspired traders thinking that they will conquer the Forex market? It is very simple. Every two or three days, there is a new top Forex trader preaching about his or her streamlined Forex trading strategies. They always claim that their systems are a must know strategy to capture consistent profits with little time required. Before purchasing a book, software, or a trading system, you should ask yourself a simple question, “Is the author making money from trading or from the profits of selling the item?”

Most professional traders are too busy earning big money trading the market and have very little time to write, unless they are retired. All good traders dedicate 100% of their time trading, and it is not in their nature to trade and write books at the same time.

How can you find out if your Forex instructor is honest? You just need to ask a simple question, “How long would it take me to become a good trader if you were my full time trading mentor?” If the answer is a few months, you should ask for your money back and walk away. All medical students have to perform two years of residency before they can become new doctors. Most professional trades require 12 to 18-month apprenticeships before they are licensed to work on their own. Trading is a profession and should require similar apprenticeship or mentoring duration.

The only way to be successful with Forex trading 15 minutes a day is to use managed Forex trading software service. Look for creditable and trusted Forex companies to rent their trading software. Most profitable Forex companies will not sell their trading software as it is part of their intellectual property. Beware of companies and individuals trying to sell their Forex expert advisors for $300 or $1,200. Ask yourself a simple question, “If you own a Forex expert advisor that can make $1,000 per month, why would you sell it for only $300?” Don’t trust forum postings or testimonials. Look for long term trading results of six to nine months, not software that claims to be profitable in just the last 3 weeks.

About the Author: Registered Professional Engineer Winsor A.G.A. Hoang, Founder of http://www.ctsforex.com . He has developed 5 managed Forex trading software for auto trading. His automated software is internationally ranked with live trading results published every 30mins, use as free Forex trading signals.

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Forex Trading Education - How To Learn Forex Trading To Become A Profitable Trader

Submitted by: Peter Lim ,CFP

If you are seeking to educate yourself about forex trading, most probably your main objective is to gain trading skills so that you are able to trade independently and to be able to create personal consistent wealth through forex trading. Most forex traders are independent traders or individuals who are trading from the comfort of their own homes and not institutional traders who are backed with large quantities of capital by commercial organisations or sponsored by large investing funds.

The distinction between private forex education and academic education

If you are an individual private forex trader, then what you need is a practical forex trading education that will encompass the practical aspects of trading and how to make money from your trades rather than an all comprehensive education involving the historical background of forex, the intricacies of price movements or the more mundane academic statistical studies of finance and currencies. So if you are someone entering into the forex market with the intention to make money from trading forex, then look for someone or a mentor or a trading course that can allow you to learn how to trade profitably.

As a wealth creator, this is what you should look out for in planning your own forex trading education or learning plan.

"Trader, Know Thyself"

It is important for you to research your own trading profile. By this, I suggest you should consider whether you wish to be a day trader, who will be trading several times a day and whether you are able to spend time on the trading terminal, watching prices or are you better placed as a swing trader who makes a trade within days or a long term position trader who cna hold a trade for several weeks. Each type of trader trades on a different time frame, and each method of trading is different. So you will need to zero down on the type of trading you wish to learn.

Risk Profile

The second consideration is your personal risk profile. Are you an aggressive trader or a conservative trader? This is important form the aspect of forex education because you will not be able to fit into day trading forex if you are a conservative trader who is not looking for multiple trades a day. On the contrary, the aggressive trader will like to be proficient in day trading and learning how to trade as a forex day trader will be suitable for him. By knowing your own risk profile, you will be able to start in the correct direction finding a mentor or a trading course that is suitable for your own needs.

Trading Platform

What has a forex trading platform to do with your forex education? Plenty! For one, the forex trading platform must be suitable to your trading methodology. This is because you will need the trading indicators in your charting interface of your trading platform. In learning to trade, you will need a suitable trading platform that contains the trading indicators you need to implement in the trading methodology. At the same time, you will need to practise your trading strategy and to work with a demo account.

Gaining Experience in Trading

Here is one secret that can shorten your learning curve as a forex trader. Get yourself a trade simulator and practise your trading methodology repeatedly till you are consistently profitable before you trade. Practice makes perfect, and you can pick up years of experience as a forex trader within weeks on a trade simulator with a large database of price movements.

Mini Forex Trading Account

For the beginner trader, the use of a mini forex trading account will greatly reduce his risk as he puts into practise whatever he has learnt in forex trading. A mini forex trading account possesses more leverage and a trader can start to trade with very low capital, and therefore reduced risk. In that way, he can start to maintain discipline in trading without worrying too much on losing a big sum of money.

On the basis of these guidelines, it is possible for a person to craft or design an initial plan to acquire personal forex training and education so that he can become a professional or private forex trader.

About the Author: Be sure to read Part #2 of this article to discover how you can acquire the powerful trading knowledge from an experienced mentor to trade forex successfully in the shortest possible time. Read Part #2 on my blog http://1forex-trading.blogspot.com

Source: www.isnare.com

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