Forex and Trading

Mechanical Forex Trading System – A Checklist On How To Choose The Best Systems

If you want to use a mechanical Forex trading system and make profits you need to be aware that most systems don’t make money and if you are choosing one, you need to pick one that has a good track record but one that has these key points..

Its verified as correct by an outside independent party which has audited it and it should be at least 2 years in length and this will get rid of all the mechanical trading systems that simply claim big profits and produce no track records that are verified!

Look online and you will see lots of cheap Forex robots and Expert Advisors who claim they will make you money with no effort, for $200.00 or less and don’t produce any verified track records, all you get are:

Meaningless back tests done on historical data knowing the closing prices and it’s so easy to make money doing this a child could do it.

Or

Figures the vendor tells you to believe without any independent check! Your supposed to take the word of the vendor but he is selling the system so this is not an independent check.

These systems are all easy to spot by the ridiculously large gains to drawdown they claim and you will very often see 100 – 300% annual gains and drawdown of 1% or less! This would be great if it were true but not even the world’s best traders manage this and a two hundred dollar Robot doing it? Don’t think so!

If you want a mechanical trading system, look for one with a verified track record two years in length and the best will do 50 – 100% gains with 20 – 50% drawdown and these drawdown periods can last for a few weeks to a couple of months. When trading ignore these drawdown periods ( they simply happen) and keep your eye on the long term performance.

If you want to trade a Forex trading system focus on the long term and accept drawdown, all systems have these periods but that won’t stop you making a lot of money long term, if your system is based on sound logic.

If you want to trade a mechanical Forex trading system choose one with real performance figures which are verified, learn the logic so you have confidence in it, focus on the long term and you can generate a great second income for 30 minutes work or less per day.

An Introduction To Forex Trading, And What You Need To Know

The word ‘Forex’ is a contraction of ‘Foreign Exchange’, and is interchangeable with ‘Foreign Exchange Market’ and ‘Currency Market’. At the simplest level Forex trading is about buying one form of currency, and selling it in exchange for a different currency, making a profit as you do so.

For example, if you purchase a sum of money in one currency, and then a few weeks later the exchange rate fluctuations mean that the value of that currency has grown relative to a different currency, then you might sell that sum in exchange for the other currency, effectively increasing the value of the sum you started out with.

Many people assume that to have any success with Forex trading you need a real understanding of how foreign markets work, of trading in currencies and of carrying out detailed financial research. In fact whilst this is all certainly true, there’s something else which is perhaps more important, and that’s simply an awareness of what is going on in the world.

If you read or watch the news, and have a reasonable idea of what’s happening politically in terms of the relationships between various countries then you have a sound basis for moving into trading in foreign currencies.

For example, if you had purchased a stock of Euros a few weeks ago you may well have watched the news and seen Greece’s financial problems escalating, and you may have guessed that this could have a detrimental effect on the value of the Euro in relation to the US dollar This would in turn have led you to convert your Euros to dollars. In fact Greece’s problems did result in a significant fall in the value of the Euro, and those who moved into a different currency early on made either the most profit, or the lowest losses.

But obviously whilst a sound understanding of how the behaviour of the leaders of various countries may affect the exchange rates, it is also important to have a sound understanding of how the foreign currency trading system works. There’s nothing like practical experience to help you achieve this, but practical experience can be expensive. That’s why it is often recommended that for anyone starting out in Forex Trading it is best to open a demo account and try your hand at virtual foreign currency trading. This allows you to gain practical experience without risking your own cash.

One thing which you will often hear is that Forex Traders have a gut instinct, and work very much on gut feeling. If you believe this then you’re best off forgetting foreign markets and instead take up Blackjack or Roulette.

Forex trading requires careful analysis, sound plans and specific goals, and it requires note taking and a good deal of learning from mistakes and successes. This is why it is particularly important to try virtual Forex trading before ‘spinning the wheel’ and losing large sums of capital you can’t afford to.

Forex Trading – U.S. Dollar Index

The U.S. dollar index measures the value of U.S. dollars in comparison to six other major currencies-euro, yen, British pound sterling, Canadian dollar, Swedish krona, and Swiss franc. In forex trading, this is measured by the weighted geometric mean of the U.S. dollar against the six global currencies. The index is updated twenty four hours a day, seven days a week. The U.S. dollar index serves as the general assessment of the value of the U.S. dollar.

The U.S. dollar index was invented back in March 1973 to replace the Bretton Woods system. That period was chosen as the zero point because it was significant in the history of forex options trading market. This implies that during the time most currency trading nations were quoted freely against one another. It was agreed upon in the Smithsonian Institution, Washington and was considered by market theorists as a victory against the Bretton Woods system that promotes the collapsed fixed rate invented 25 years ago.

The U.S. dollar index is now used as an indicator in forex trading by most speculators who uses currency pairs that involves the U.S. dollar. Besides, the forex market is all about the highs and lows of the U.S. dollars. Taking into account the value of the American greenback by using U.S. dollar index is a good signal to the trader as to when to enter a trade. This shall be an addition to the growing knowledge of traders when it comes to the ins and outs of the financial market.

Timothy Stevens is a Forex Options Trader who owns – He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit

More About Forex Trading Log

Forex trading requires close monitoring of various aspects of the business. At times it may be difficult to keep all the essential activities and transactions required in mind. Therefore, it is important to have a way of analyzing and evaluating your actions in order to run smoothly. One of the most important tools when it comes to forex trading is a trading log. A trading log helps you put down and keep on track all the major tasks and transactions. This is a very efficient approach; else you can easily get overwhelmed by the trade chores especially when the business is at the pick.

A forex trading log can be a simple tabular grids with entries such as the date, the price, number of lots opened, exit price, initial protective stop level, commodity, quantity and so on. Although most traders have been using personal diaries as the trading log, there are standard logs which have been designed specifically for forex trading. Some logs are in book form while others are digital. Both of them may have the same formats but vary with convenience and flexibility.

With the digitalization of business book-keeping and accounting practices, more and more business owners are turning to digital trading logs. Spreadsheet programs can make a very good trading log for your business since they come with a host of computing and data management capabilities. Updating figures in the log can be easily automated allowing you a great deal of flexibility. Some of the commonly used spreadsheet programs which can be used to create a simple trading log include the Microsoft Excel and The Lotus 1-2-3.

There is also quite a number of forex trading software that are available in the market that can help you out in various forex related tasks; among them keeping a log book. The software will most likely include market analysis and forecasting tools as well as order entry and management capabilities; giving you a worthy package in the management of your forex undertakings.

A trading log can help you optimize your business weaknesses and make the best out of the venture. However, first you need to ask yourself why and what you should make entries and exits in the log. Else, it will be difficult to know what went wrong or what went right. Make sure you have a field where you will put the remarks after a fixed period of trading. This will play a big role when it comes to making important decisions regarding the strategies to adapt in your profitable forex trading business.

Forex Trading Robots – The Shocking Truth

Forex trading robots are an automatic way of seeking profit potential from global forex markets and the logic is you simply follow the rules and have a disciplined system for profit – that’s the theory but the truth is…

Very few will make you money and the reason is they have never made any “real money” just paper profits in hindsight. You will almost always see this and it makes the track record to present worthless:

“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”.

Will a track record with this on it help you make money? I doubt it.

Don’t fall for the hype check the facts and if you see the above ask yourself why you should trust a made up track record? We would all be rich if we knew the future and tomorrows price now but that’s not life.

Today, most novice traders are looking to take short cuts or think a guru mentor or robot can give them success but the reality is ( as with any venture where there is a lot of money to be made ) you need to do your homework and get the right forex education.

There are good automated forex trading systems out there with REAL track records but you need to keep one more point in mind, if you want to enjoy currency trading success.

Keep this equation in mind:

Forex Trading method + Disciplined Application of = Forex trading Success

When you have a good trading system, you still have to apply it with discipline and keep in mind, if you don’t have the discipline to apply it, you don’t have a system – it’s as simple as that.

So if you find one with a real track record you like make sure that you know how and why it works, so you have confidence in it when it hits a losing period and don’t let anyone tell you otherwise even the best system draw down for weeks or months at a time.

Forex Robots can make money and the above information will put you on the right track in finding one.

Picking A Top Or Bottom In Forex Market Ussing Elliot Wave Forecast.

Good afternoon, everyone. Elliot wave principle is what I used to trade the Forex market. I really believe that the market move following the Elliot waves patterns and the fibonaccies number.

I have seen many times how the famous Elliot wave pattern is repeated in many cycle and to the point when do not miss even by a single pip. we as trader tend to make human mistake and always believe we have the correct count , we as human always trying to go to the minimum time frame possible. Many times this pattern is visible and workable in those small frames sometimes not , sometimes created a illusion or idea to be a correction and then break as a impulse . Today , I will explain how many traders and good traders are always trying to pick a top or a bottom.

Picking as I call it is a illusion , many times we are waiting for a level and we believe that the top or bottom just to found out that the market pass by the level without any resistance , so what was wrong , where picking a bottom or top is a mistake . the best bottom or top is the one we all knows , is waiting for the top or bottom formed by its self , seeing five waves in the hourly chart and the when wave A and C overlapped , getting in favor of the trend or five waves .

I know if all fellow traders practices this theory they should be able to make more money and less painful days .I believe the human factor and greed sometimes tends to created those false illusion , so picking a top or bottom is easy , please do not do it , just wait for the market to show the top or bottom.

Indicator For Day Trading Gold

Attention traders – if you have ever wanted a gold (GLD) indicator for NinjaTrader or TradeStation, there’s a new, fully-automated system / method called the Gold Line.

What does the Gold Line do? When trading, the Gold Line indicator tells you when to go long and short by plotting a line across a GLD chart on either NinjaTrader or TradeStation. This new indicator allows traders to stay on the correct (profitable) side of trades: stay with long trades when price is above the Line, and go with short trades when price falls below the Line. This price action behavior is the only rule a trader needs to remember. Price action method techniques go hand-in-hand with this indicator.

Here’s why the Gold Line is the best indicator for GLD trading:

* Fully automated indicator – easy to install, use and understand. No parameters to change; no configuration; nothing to cause confusion.

* Affordable – for less than $100 a month, you can use the Line whenever the market is open. Six month licenses are available.

* Proprietary software – no other indicator on the market can offer its exclusive functionality

* Free customer support

* Compatible with other indicators – the Line is identical in operation with NinjaTrader and TradeStation.

Whatever platform you’re using, rest assured that you’re getting the premier gold trading indicator. The Line does not change during the trading day once it begins plotting. You’ll see how price interacts with the Line, bouncing off of it to maximize profits. Signals are given for when you should enter and leave the market. Free webinars offer you the chance to see the Line before before you buy. Interact and ask all of the questions you’d like.

Want to find out more? The offical website is . See demonstration videos at the YouTube account (go to and search for user goldlinetrader).

How Bruce Kovner Started With Only $3,000 And Ended Up Making $11 Billion Trading Forex

Bruce Kovner was a NYC Taxi Cab Driver who didn’t have money to trade forex. So in 1977, he borrowed $3,000 on his credit card and started his journey trading forex and futures. He eventually made $11 Billion.

Many people don’t know his name. But he is a legend of forex trading who started with no money and ended up making a true fortune. This is a lesson to all those who procastinate and think that trading forex requires a lot of money. What this story shows is that anyone with determination can start trading forex with no money and end up making a fortune. Now, don’t take me wrong! This does not mean that you and me can repeat the success story of Bruce Kovner. What it means is that if we want we can also make a mini fortune something like a few million dollars in the next few years trading forex.

Forex is a huge market. Everyday something like $3 trillion get transacted in the global forex market. You too can take part in this global forex trading game and if you are really good at it claim your share.

How do you play a game? With determination and will power to win the game. This is exactly how you should also play the forex trading game.

Now, as shown by Bruce Kovner, you don’t need a lot of capital to play this game of currency trading. You can start with only a few hundred dollars and over time compound that small amount into a huge fortune.

However, what you need is the right methods and the right forex trading strategies. This requires determination, effort and learning on your part. But one thing is clear money is not important in starting forex trading.

What is more important is your mind, your discipline and your determination in winning the forex trading game. Trading is all about discipline and right strategies.

Let me give you another example of Richard Dennis. Richard Dennis is another trading legend famous for his Turtle Traders. Whatever, once upon a time, he was a small time trader. He started trading commodities with only $300. Guess, how much he made eventually in the next few years? He made $200 million plus. What these stories illustrate that all great traders had started small but they had the determination to succeed big. You too can follow in their footsteps. You don’t need money to trade forex, you only need determination and the right skills! Good Luck!

Increasing Your Forex Trading Knowledge

When you increase your knowledge and experience in forex trading, you will obviously also increase your opportunities to maximise profits and minimise losses in the activity. You will know the exact opportunity when to sell and when to buy the currencies being traded to accomplish this purpose, a skill that only the expert forex traders have mastered to a fine art.

Well, of course, becoming a master forex trader takes time, effort and money. The forex market is a complex, competitive and sophisticated system that demands full attention from the participants who desire maximum profits and minimum losses. In other words, forex currency trading is not suitable as a hobby, a pastime or a recreational means.

Lest you think, nonetheless, that forex trading is only for math geniuses and investment gurus, think again. We must all start somewhere and with forex, it starts with education followed by practice with dummy and live accounts. Lets discuss these aspects.

First, getting educated can mean two paths, namely, formal and informal. Formal education means enrolling in university classes dealing with finance with emphasis on the forex market and its related industries. Online sites also offer equivalent instruction with the benefits of learning at your own convenience.

Informal education about forex trading can take the form of do-it-yourself plans and mentor programs. Basically, you read a wide range of reading materials on the subject including books, journals and newspapers, of which there are plenty of specialised issues. If you can, you may also request for the assistance of an expert forex trader to establish a mentor-student relationship.

The best way to get educated about the forex market is a combination of both. Even when you are enrolled in a formal forex class, reading newspapers is a great way to keep updated about the market.

When you feel that you already know the basics by heart and you have the confidence to apply your newfound knowledge, its time to open a demo forex trading account. This is a baby step toward a live account in that you will hone your buy and sell strategies as well as your entry and exit tactics without losing any real money. You have the benefit of using the demo account for as long as you wish until such time that you feel comfortable gambling real money in the real world, so to speak.

We dont suggest lingering too long with a demo account, however, as real profits wait with the live trading account. You can always choose to play with a small amount of money on your first forays and then slowly build up your account as you gain more confidence in your trading skills. Slowly but surely on the profits, indeed.

Yes, forex trading may not be for everybody because of its rigorous demands and high risks but it can be for you, too. The trick is in learning and practicing the art and science of forex market trading.

Sure Shot Intraday Trading Tips

Intraday Tips can be either extremely profitable or extremely non-profitable. Intraday traders can generate either huge percentage returns or huge percentage losses. But we will say Intraday Trading is an art because many day traders manage to earn millions per year solely by Intraday Trading.Intraday Trading looks to be very simple but in Intraday Trading one has to be really fast and quick. Intraday trading can become very risky, especially if one has poor discipline, money management. Stock brokers usually allow bigger margins for day traders.Every trader is tempted to know how intraday trading works and how they can make profits at the end of the day. Most of the investors earn profits At the end of the session the investor can book profits while trading on large volumes at a much smaller price so that the profits can be recorded. An important point to be considered is that the investor has to be realistic because they should know how to control losses with the help of Intraday Tips.

There are many ways to invest and gain profit. One of the best options is by investing in stock market. People who are risk takers can work in this market and earn handsome amount without leaving the comforts of their homes. Through these stock market tips, you can learn how to make more money and for many people the income from the stock market is the major source of earnings.Learning everything you can about this business should be your first step. It is important to know that proper awareness is important for any goal. One of the best techniques when it comes to share trading is called intraday trading. This is a strategy that involves the buying and selling of shares within the same day. It is true that intraday trading is fast and rapid so you need all the experience and patience to be more effective in this trade. Some reliable Intraday Tips help you along the way.It is important to find a reliable Intraday Tips provider that can help you minimize the risks that you have to take.

Mostly the strategy regarding the day to day trading is similar to the long term investing in the stock markets. However there are some specific Intraday Tips too which can come in handy when you are thinking about making some fast bucks. Before proceeding further let us understand about intraday tips in respect to share market. To analyze this further this can be described with the help of an example a new intraday high means the security has reached a new relative to all other prices during a trading session. In some situation the intraday high is equal to closing price. Most traders pay heed to price movement with the help of real-time charts so that they can get maximum profit from short-term price deterioration.