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Forex Trading Strategies

Forex Trading Strategies. 1

Forex Trading StrategiesHow to Be a Super Successful Forex Trader


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'ou are encouraged to print this boo% for easy reading.

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Table of Contents

Table of Contents ...........................................................................................................3What is Forex Trading? .................................................................................................

I!"ortan#e of Forex trading ..........................................................................................$

Fo%r &ain T'"es of Orders in Forex &ar(et ...............................................................)

Forex Trading *ri#e &o+e!ents,-o and Wh' &ar(ets &o+e and -o to *rofit ..//

'ou predict the Forex expense trends .......................................................................11

The )ar%et obeys Scientific *aws ..............................................................................11

+usiness an be made of -ews .................................................................................11

#ctual xpense Trends ..............................................................................................1(

!in the ompetition ...................................................................................................1(

+e mperfect but -ever a *oser ..................................................................................1(Forex Traders: The Need to 0e Ob1e#ti+e ................................................................../3

Forex Trading Tools ...................................................................................................1/

The Three Trend line Strategy ....................................................................................1/

-o to Win ith Forex: The 2te",b',2te" 2e#rets ..................................................../$

Success omes From !ithin .....................................................................................10

iscipline 2 *osses ....................................................................................................13

# Trading dge ..........................................................................................................13

Success is in '45& 6ands ........................................................................................13

angers of Getting E!otional Abo%t Forex Trade ....................................................45

Forex Trading 2trateg' , Channel 0rea(o%t ..............................................................44

Forex Assassin +s. Forex

*oer 2trateg' .............................................................................................................46

The Corre#t Ti!ing in Forex Trading .........................................................................47

)a%ing Proper 5se of Support and &esistance ..........................................................(7

!hy +uy *ow and Sell 6igh oesn8t !or% .................................................................(7

t Ta%es 9uts : +ut t )a%es )oney ...........................................................................(0

The I!"ortan#e of 8eal Ti!e Forex Charting ............................................................49

Cal#%lating Interest on

Forex Trades ................................................................................................................35

The Ad+antages of A%to!ated Forex Trading ...........................................................34

Choosing the 8ight A%to!ated Forex Trading 2oftare ..........................................36

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Forex Trading Strategies. at the most

appropriate time to profit from the transaction. 9ood ability to forecast plays a vital role here. 4ne

may wonder how Forex trading can be such a lucrative earning opportunity since fluctuations in

exchange is so little.

+ut remember, when done in big volumes, a minor change can mean a lot. There are many non:

monetary advantages to it as well. #nyone who wants to deal in Forex can do so, since only the

basic %nowledge is re?uired for it.

Forex can help you earn a lot of money. +ut there are certain conditions to follow before trading in

Forex. Firstly, one must have a thorough %nowledge about the trends in the stoc% mar%et, the

basics of trading and ris%:ta%ing ability. 'ou will get all the help you need for attaining these

conditions very easily.

There are many sites on the internet which can help you clarify your basics and help you brave

rough weather. # good reason why Forex trading can be considered is the fact that there are

fre?uent fluctuations in currencies, though in percentage terms it may be small.

'ou gain if the fluctuation favors you and the reverse holds true as well. -o one can accurately

predict the trend of the currencies. *i?uidity is another reason why Forex trading is so popular.

-ow the most important part @ in Forex, you can ma%e huge sums of money even if your initial

investment is on a lower side. 'ou can invest as little as A/B,BBB. &ich people have no upper cap

to the amount of investment. So remember that even with a nominal investment, the earning

ability is undoubtedly very huge.

)ost of the great businesses are connected to the world of internet today, and Forex trading is no

exception. 'ou can deal in foreign currencies right from your home. n fact, it is fully conducted

online. 'ou have the liberty to choose when you want to trade, and you don8t need to meet any

deadlines.

+asically, you can be your own boss. The process of online trading is fairly simple for anyone to

understand. 'ou "ust need to open an account for Forex trading with a recogni$ed bro%er and

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they will complete the rest of the formalities. The only bit you need to do is get ready with your

investment amount.

So, it is thus clear that Forex trading can be one of the best businesses to earn money. Though

there is a level of ris% attached to it, but it can be avoided with due care and an alert mindC

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I!"ortan#e of Forex trading

Foreign xchange =Forex> involves exchanging of different foreign currencies for a profit. The

reason for buying the currency of another country may be the need to buy some commodity of the

said country as well, besides ma%ing money through the difference in exchange rates.

n the latter case, people buy currency of a foreign country when the rate in the mar%et is low, and

sell it off when the rates go up. urrency trading is usually done between the central ban%s, the

government, speculators and )-s. -ations cannot trade with each other without the presence

of a foreign mar%et.

# huge amount of money is daily traded in the Forex mar%et, though the amount invested by an

individual trader may be very low. -o one individually can have any influence on the Forex

fluctuations, not even the government. So it can easily be concluded that the level of the currency

reflects the strength or the wea%ness of the economy of a country. So this ma%es the Forex

mar%et a good place for competition.

The government and the central ban% do try to stabili$e the currency of their country by

speculating, by buying and selling currencies at appropriate times. So they can influence the

mar%et if they conduct a trade in huge volumes, though. To buy its own currency, however, the

government or the central ban% must have huge reserves of foreign currency with them. So it is

virtually impossible to inflate the currency value artificially.

+an%s trade a lot in foreign currencies and this forms a chun% of the volume in the Forex mar%et.

They buy currencies not only as individual bodies, but also on behalf of their clients. They trade in

lots of futures. Till a few years bac%, the bro%ers could influence the volumes of trading in the

Forex mar%et. +ut due to the electronic services available now, the services of bro%ers is not

re?uired. t8s easy to operate electronically.

Trading with international countries is possible only with the existence of Forex mar%ets. !hen

there is no Forex mar%et, there is no common currency between two countries, so one cannot

evaluate the value of one currency with respect to the other.

The buyer pays the seller in the former8s currency. !ith the money so received, the seller buys

goods in the buyer8s country and sells those goods in his =seller> country.



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Fo%r &ain T'"es of Orders in

Forex &ar(et

There are many %inds of orders which traders can place to transact in the Forex mar%et, for

ma%ing profit out of it.

&ar(et Order

The mar%et order is the most simple and common %ind or order. 6ere, the trader buys

and sells the currency at the rate prevailing in the mar%et at the time of placing the order.

ue to the huge si$e of the mar%et and the high volatility, trends can reverse any instant,

so people prefer placing orders at the mar%et price to guard themselves against any

adverse trend.

Li!it order

n this case, the trader specifies a price at which he may wish to buy or sell the currency.

Suppose a trader has bought 9+P against the 5S at 1.D01B, then he can place a sell

order at 1.D0(/, when the exchange will execute the order and he will profit from it. The

order will get cancelled if the target price is not achieved during the day.

2to" loss order

ue to the volatility, stop losses are essential. They determine the maximum loss a trader

is willing to suffer. Suppose in the above instance, the ris%:ta%ing ability of the trader is

low, then he may place a stop loss at 1.D0B/, at which level the exchange will boo%

losses for him, and he won8t be affected by any fall below 1.D0B/.

Entr' order

Such an order is filled only when certain conditions are met in the mar%et, which the order

specifies. The entry order can be a limit entry order or even a stop entry order.

: Li!it entr' order

#s an example, let8s assume that the current mar%et price for 9+PE5S is 1.D0B/:1B.

This implies that the trader can transact at these levels. 6ere, a trader can put a limit

entry order to sell his holdings at a price more than the mar%et price, say, 1.D01/. 6is

order would be executed only if that price is attained. n the similar manner, he can place

an order for buying at a level of, say 1.D0BB, and his buy8 order would remain pending till

the price falls to that level.

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: 2to" entr' order

Such an order is generally used when the trader has sufficient grounds to believe that the

currency is trading in a fixed range and believes that it is on the verge of a brea%out from

that range. 6e might want to buy at a price higher than the mar%et price or sell at a lower

price than the mar%et price. n the same example, the trader may go ahead and buy at

1.D0(B or sell at 1.D7DB, where he believes that once these levels are attained, thecurrency will only go up or fall further, as the case may be. # trader exercises the stop

entry order only when a trader has reasonable grounds to believe that there will be sharp

movements in the currency rates in the Forex mar%et.

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Forex Trading *ri#e

&o+e!ents,-o and Wh'&ar(ets &o+e and -o to *rofit

5nderstanding expense trends of Forex is not easy at all. +usinessmen often get wrong ideas

and ma%e agendas based on them and suffer losses. The following can help you understand the

trendsG

o% "redi#t the Forex ex"ense trends

+usinessmen observe a certain level and "umps on to it thin%ing that it8s stable. 6owever, this is

simply based on assumption and that never wor%s in Forex business. There is no accurate

prediction.

f wining is the goal, you have to base the business on the sure shot expense trends. &elated to

this, there are certain factors given below.

The &ar(et obe's 2#ientifi# Las

There is a notion, which believes that mar%et trends are based on logic. Some believers are

9ann, lliot and the followers of Fibonacci.

6owever, if everybody %new everything, prices would never have been a surprise and mar%ets

would be non:existent. The layman would accept these ideas and their fantastic suggestions.

6owever facts say otherwise.

0%siness Can be !ade of Nes



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t is not advisable as news is actually insignificant. The way news is supposed is what decides the

movements. *et8s see how trends occur.

A#t%al Ex"ense Trends+asics H ndividual nsight into them I Forex )ar%et Trends

People are seldom rational. They often function emotionally, which is why logical reasoning does

not always hold true. The real human psychology is consistent but these matters have no logicG

1. People ma%e costs move to extreme and these passing points can be used profitably.

(. arry on with business. on8t get into guessing.

Win the Co!"etition

Forex is a sport and competition is based on chances. 'ou may not be able to determine chances

but you will never lose.

That applies not for every instance but try out on big probability situations and you will surely ta%e

the ca%e with very few losses. 9et huge proceeds in due course of time.

Joracity and panic fluctuate costs, creating points that are visible on Forex schedules and can be

used gainfully.

t8s a game so when prices fluctuate on your side, get to business. ontrol your finances well andbe a winner.

0e I!"erfe#t b%t Ne+er a Loser

Forex mar%ets teem with those who attempt guessing and try to get a non:existent undisclosed

trend cipher. ven though Forex expense trends seem disordered, basing your business on cost

fluctuations will ma%e you a winner.

t may not be an ideal business for many, however if done right, you can ma%e a lot of moneythrough forex trading.

Forex Trading Strategies. 1(


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Forex Traders: The Need to 0e

Ob1e#ti+e

t is difficult for Forex traders to reali$e that the currency mar%et is extremely unpredictable. #s

new traders spend a long time trying to learn the mechanics of the foreign exchange trade and

focus their time and energy on trying to find a method for predicting movements, they naturally

expect there to be rules governing the movement of the mar%et. This not being the case, many

traders find themselves at a disadvantage.

!hile Forex traders have a number of tools at their disposal, which allow them to "udge the right

time to open or close a position, many prefer to rely mostly on one tool. So, having opened a

position, they watch their favorite indicator and, to a large extent, base their trading decisions

solely on it, ignoring the others.

This wor%s well enough until that indicator starts telling them something different from what the

others are. Traders caught in a open position which their favorite tool is telling them to hold, will

often do so, despite the fact that other tools are telling them to close and get off the mar%et, and

end up losing money.

The basic problem, of course, is that the trader is not loo%ing at the mar%et as is, but through the

lenses of his own expectations about it and further using his favorite indicator to reinforce those

ideas instead of loo%ing at the bigger picture. #nd, encouraged by the fact that his chosen

indicator is forecasting the profit he wants, the trader is focusing more on money than on the

mar%et.

f the Forex mar%et was not unpredictable, it would collapse because all traders would profit all

the time. There are many tools that can help traders predict the direction of the mar%et and they

usually do an efficient "ob. +ut even in the hands of the most experienced traders, the best tools

occasionally fail to predict the mar%et8s movements correctly.

*osing in trade because of predicting the mar%et wrongly is an innate part of Forex trading and

traders need to accept it. +esides, they need to learn to avoid getting in a position where they do

not have many choices.

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For this, the trader needs to accept the fact that the foreign exchange mar%et pretty much has a

mind of its own and the traders have to follow its movements instead of trying to ma%e it go in the

direction they want it to.



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t is not a good idea to rely completely on a short time trend line. They merely give you a defined

picture of current price action. These are bro%en often during the course of a day. Their main use

is to give you a clear, instantly recogni$able graphical representation of current price behavior.

f you notice price coming bac% to test a trend line on the higher time frames, loo% at other factors.

raw in hori$ontal lines to mar% %ey support and resistance using previous highs and lows. rawFibonacci retracement and extension levels. alculate the daily pivot points and put them on your

chart. 6ave the (BB )# Kxponential )oving #verageL shown on your charts.



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-o to Win ith Forex: The

2te",b',2te" 2e#rets

!hen D/M of traders lose money, what ma%es you thin% you can winN To see your chances

of succeeding as a forex trader, here is a chec%list for you to see and become one of the elite

traders, who ma%e tremendous long term profits.

Following are a few ways to lose money. 'ou may wish to change your mind immediately if

you are thin%ing of trying any of them. o this to avoid losses and continue your forex

educationC

/. Folloing a Forex 8obot ith 2i!%lated Gains: 'ou can apparently achieve success

without any effort as promised by these. 'ou are as%ed to accept their trac% records

simulated going bac%wards. 'our e?uity will get destroyed by trying them.

4. a' trading and 2#al"ing ,ue to the random short term volatility, simply doesnOt wor%.

*i%e the robots, even people selling these always have simulated trac% records.

)any more of these all fall into the category of trying to find someone else to give you

success. This does not wor% in forex mar%ets.

#part from needing a trading edge, you also have to understand ways and reasons of it

leading you to success. *et8s loo% at this in detail.

2%##ess Co!es Fro! Within

The combination of a simple robust helping you to understand and trade with discipline is what

forex trading is about.

'ou need to %now what you are doing to trade with discipline. This translates into having

confidence, which you definitely donOt get from someone telling you what to do. 'ou get

confidence by from your own %nowledge and learning.



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is#i"line ; Losses

#s you have to %eep executing trading signals through losing periods, discipline is hard. This hasto be continued till you hit a home run, even when the mar%et is fooling you and ta%ing your

money.

A Trading Edge

!hat separates out your forex trading system from the D/M losers is your trading edge. 'ou can

answer what is your trading edge and how will it help you beat the ma"ority. 'ou don8t have one if

you donOt %now what it is.

Few succeed in the simple loo%ing forex trading. These elements are present in the winners8

forex trading strategyG

5sing simple robust forex trading system

: 6aving solid grounding in the basics of forex trading

: nowing exactly why their system will lead them to success

: 6aving confidence and discipline to stic% with their plan

: nowing only they are responsible for their Forex trading success

'ou have to stand alone, be confident of your actions and be disciplined to follow your plan in

forex trading.

2%##ess is in O


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Forex Trading Strategies. 1D


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angers of Getting E!otional

Abo%t Forex Trade

9etting emotional in the stoc% mar%et is the worst thing that can happen to investors. The same

goes for Forex traders as well. Seeing paper losses in everyday trade is pretty common.

4nce to ta%e a decision to buy something and ma%e losses, you still hold on even if situations

turn from bad to worse, only because you feel that things might turn bac% in your favor once

again. The main problem here is that, the decision to stic% to a losing trade for a long time is an

emotional one, since you are in no mood to accept a loss and get out of the trade.

Forex mar%et is largely influenced by the general mar%et and you must always trade on what the

indications based on the mar%et are, and not "ust initiate one since your heart tells you to. #t

times, you might be so emotionally attached to a given currency in the Forex mar%et, that most of

your exposure to the Forex mar%et would be in that particular currency.

-othing wrong with it, as if you have reasonable grounds to believe that the currency will do well,

then you will actually profit from the exchange. The wrong8 thing is opening up a trade in a

currency "ust because your heart tells you to.

n the case, if you strongly feel about any given currency, then it8s better to chec% the reality by

having the loo% at what the mar%et is indicating. That will give you a clear picture of whether or

not you should trade in that currency.

The basic thing that is needed to be remembered is that once you have initiated a trade, and are

incurring paper losses, and by all indications, things are li%ely to get even worse for you, then it is

much better to boo% losses and come out of it rather than stic%ing to it till a time you ultimately are

able to see some gains from it. &emember, the mar%ets have little room for emotions.

Forex trading is not a win:win situation. +e prepared to lose on some trades as well. That8s the

precise manner in which the mar%et wor%s. t is not really a ?uestion of whether you are right or

not, the fact remains that mar%ets move in an unexpected way and they have a %nic% of surprising

people when they least expect it. #ll the fundamentals and even experience may be thrown into

the air when the mar%ets decide to do something.

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Forex Trading 2trateg' ,

Channel 0rea(o%t

Forex system happens to be the greatest global trade. t taps into some movements for

businessmen to gain well. 4ne accepted Forex business agenda utili$ed rather gainfully in the

business is called hannel +rea%out.

Forex Trading hannels @ hannels consist of paths made on a schedule to trace the array

where exchange had been transacted in a time span. They can be simply constructed. 4bserve

the schedule in a time span and draw lines lin%ing the comparatively tall spot business expenses,

and down under lin%ing a comparative low spot business expenses. This will give you a picture of

the business array existent during a time span li%e, six months.

hannel +rea%out @ 4nce the value of exchange goes up the pea% networ% line, there is a rising

networ% getaway. #lso, once the value goes down below the lowest networ% spot, you get a

downward networ% getaway. -etwor% getaways happen upwards and downwards. !ith enough

Forex input with scientific scrutiny, everyone may utili$e the process for getting a gainful

exchange business agenda.

'ou have to build the channels very carefully. very meeting of lines doesn8t indicate a proper

getaway. f there is any fallacy in the line construction, what you observe is business out of the

array, which "ust leads you bac% inside. Therefore, before anything else, gain enough %nowledge

on Forex.

9ainful ontrol of Forex channels @ !hen you figure out the wor%ing of networ%s, gains will

happen. onstruct the business with enough pauses. Then, in case of an incorrect getaway sign,

you will get tolerable losses or if luc% favors you, a very low profit.

+ut if you are on the correct side of a proper networ% getaway, the tiny lac% you received will be

moved away and you get a good big satisfactory gain.

#ny proper Forex business shareholder worth his name capitali$es on channel brea%outs. n case

you want to cash in the exchange mar%ets, ta%e out a certain amount of time for a Forex

education to build this agenda and various technological scrutiny processes.

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That will build up the exchange agendas, which would yield gainful conse?uences. f you don8t

give some time to completely figure out the sta%es and yields contained in a Forex business

agenda, you may not get the desirable conse?uences. So you see, your gain "ust depends on

you.

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Forex Assassin +s. Forex

*oer 2trateg'

For those who have an interest in the huge ; trillion dollars a day foreign exchange mar%et it is

common %nowledge that to be able to remain on the right side of the Forex mar%et what you

re?uire is to constantly discover new plans to minimi$e your losses and to maximi$e your profits,

and to always adapt so that you can grab any and every opportunity to get a bigger share of the

pie.

The Forex #ssassin formula and the Forex Power Strategy course are two of the most widely

used currency trading tools. +oth these tools have received great reviews, but their operating

principles are entirely different. #s a Forex trader, how would you understand which is the better

tool for youN To help you out of your confusion, "ust read on.

The Forex #ssassin formula is designed as a solution to the busy man8s problems with forex

trading. This tool is ideal for the average D to / professional who wishes to generate some extra

income through Forex dealings but can8t muster the time to either monitor the mar%ets throughout

the day or study intricate technical formulas, analysis and graphs.

Forex #ssassin is a simple and convenient strategy that can be used with little or no

understanding of how the mar%et actually wor%s. t normally ta%es about a ?uarter of an hour

every wee% to prepare and assign a trading strategy, after which you "ust have to relax and allow

the mar%et to do its wor%.

t is very straightforward, but on the flip side also rather limited, as you are not re?uired to have

much understanding of the mar%et. The whole target is to allow the dummy to ma%e limited

money by minimi$ing his chances of loss, which however is not certainly the best way to ma%e

the most money.

onversely, the Forex Power Strategy tool offers a detailed and an in depth course in the

dynamics and economics of the mar%et. t ta%es into account a whole lot of material, and includes

all levels of trading. #s a result it re?uires a high investment of your time and attention to ma%e

the most of the course and absorb its lessons. So unless you can commit ?uite some time to it,

the Forex Power Strategy tool is not ?uite for you.

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+ut in return you have the assurance that by the time you complete the course, you will have

achieved a better and sounder %nowledge of how the mar%et wor%s, and thus your earning

potential will be correspondingly higher.

+ut no matter which tool you choose, using either is better than trading "ust blindly in the mar%et

and ending up with huge losses.

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The Corre#t Ti!ing in Forex

Trading

!hen you sense a trading opportunity, the deciding factor is to %now exactly when to buy.

5nfortunately this is the very point at which most loose the plot by timing their entry levels

improperly. +ut here are some basic guidelines to help you at those crucial momentsG

&a(ing *ro"er


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target is rather, to Qbuy high and sell higherR @ i.e. you should try and do ?uite the reverse of what

the general crowd is doing. Try and %eep a loo%out for any brea%throughs in support and

resistance, and then sell and buy correspondingly.

It Ta(es G%ts , 0%t It &a(es &one'

The policy of going against the crowd ta%es courage to practice. +ut thin% over the strategy with a

cool head and you shall find it is the most logical thing to do. 6ow often have you heard of traders

buying into support, but the mar%et continuing its freefall, brea%ing the supportN

#nd again, haven8t you heard tell of the price continuing to soar and never getting to support,

thereby ma%ing the trader miss the chance to capitali$e on the trendN

So rather than be traditional and lose money, it is easier to adopt the brea%outs policyG you won8t

be comfortable on entry but you will be ma%ing money. The tric% is to brea% away from the patternthat the losing ma"ority sets and to do what is productive and logical considering the common and

predictable response.

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The I!"ortan#e of 8eal Ti!e

Forex Charting

o you want to earn money in the arena of foreign exchangeN n order to accomplish so, you

should possess in:depth technical %nowledge, focused on the capability of trac%ing currency

exchange rates, through interpreting actual forex charts.

f you are an amateur in this f ield, you should ?uic%ly discover authentic forex charts from the

nternet or may opt for free actual forex charts. The best option is however, to ta%e the help of

free chart recognition software and mastering on it, you are well suited for this business.

4nline forex charts %eep you updated about currency values at any time, even between short

time gaps li%e minutes to long intervals li%e several years. The graphs depicting the oscillations in

rates are line graphs, or bar diagrams or candlestic% charts.

*ine charts are easy to interpret and help you to broadly chec% ups and downs of prices. t aids

you to trac% the current trend of rate movement. 4n the contrary, bar charts are not as lucid as

line graphs but supply a much in depth information.

To summari$e, the length of a bar chart depicts the amount of rise or fall in price and the breadth

gives the duration, which has witnessed this. nitial and final rates are mentioned on chart so that

you can identify the range and whether it8s a fall or rise. There are pattern recognition software

available that interpret the bar diagrams for you and ma%e your tas% easier.

The apanese were first found to use candlestic% charts to plot their amount of their rice

production. Since then they have been increasingly popular. Though they are similar to bar

diagrams, they are colored.

ach color acts as a code to signify the rise or fall in price. The index is written on the graph itself.

Thus candlestic% plots are much more user friendly than bars. andlestic% charts have uni?ue

patterns and they are as pretty as to be named after natural beauties. #s soon as you are able to

identify the particular pattern you will identify the mar%et trend.

#n actual forex chart is often complemented with many technical indicators such as trend,

strength, volatility and cyclic movements. # forex chart is useful itself, but this ad"unct information

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Cal#%lating Interest on

Forex Trades

4ne of the best things about Forex trading is the fact that one can trade using leverage, thus

borrowing as much as 1,BBB times your capital in order to ma%e a trade. 6owever, borrowing

money for trading in foreign exchange is the same as borrowing it for other purposesinterest

must be paid on the loan.

6owever, as currency trading involves both buying and selling, the interest due on your loan can

be offset by the interest earned on the currency you buy. +efore going on to particular examples,

let us ta%e a loo% at interest rates in general, to see how the foreign exchange mar%et is affected

by it.

n central ban%s, interest rates are set in accordance with a country8s monetary policyhigh

interest rates ma%e the currency more expensive to buy and lower interest rates ma%e it less so.

magining the government of a country with high inflation will help you understand how interest

rates are used.

The government, because of rapidly rising prices, might decide to raise interest rates. This would

increase the cost of the country8s currency, and ma%e demand and consumption fall, as

borrowing would be more expensive.

This in turn would cause prices to fall and inflation rates would come down. Similarly, a country

undergoing recession might lower interest rates to boost the country8s economy, as lower price of

currency would cause demand, and, therefore, supply, to increase.

nterest rates set by central ban%s also determine at what rate commercial ban%s can borrow from

governments and lend to their customers, including forex traders. !hich tells us how interest

rates affect this trade.

# trader who, for example buys 9+PE5S, needs to borrow the ollars to buy the Pounds and

will, thus, pay interest on the 5S and earn it on the 9+P. f the interest rate the +an% of ngland

sets for the 5 Pound is higher than the one set by the Federal &eserve for the 5S ollar, the

trader will earn more on the 5 Pounds he bought than he pays on the 5S ollars he borrowed,

thus ma%ing a profit.

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6owever, unless there is a significant difference between the two interest rates, the net profit or

loss will be marginal. +esides, while interest rates are set on an annual basis, trading positions

are usually opened for short periods. This serves to significantly lower any gain or loss on interest

rates.

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The Ad+antages of A%to!ated

Forex Trading

Forex trading is nowadays the preferred form of investment for an increasing number of people

these days. t is apparent why this is so.

#s the largest trading mar%et in the world, the Forex mar%et has a steadily growing trading

volume, which has risen from around A/BB billion to about A( trillion in the last twenty years.

#dditionally, since it is not tied to any particular trading floor, it is an unusually li?uid mar%et.

4perating around the cloc% also ma%es it a permanently open mar%et. Thus, since many mar%ets

are opening and closing at the same time, one can effectively follow the mar%ets around the

world.

+oth big and small traders are thus being attracted to Forex trading. They en"oy a wide choice of

trading strategies based on the various aspects of the foreign exchange rates. )any traders

coming into the mar%et find the different things that affect currency exchange rates very attractive

for a very simple reason @ they can use a wide range to tools when wor%ing in this exciting and

stimulating mar%et.

#utomation is perhaps the greatest influence today on the future growth of the Forex mar%et, as it

brings with it more advantages than disadvantages. )anual systems trying to operate in a fast

paced and volatile environment bring with them several losses.

# simple time delay in buying and selling may cause a row of losses in a manual system and thus

cause the trader immense frustration. #utomated Forex trading allows trade to be conducted

anywhere in the world, in real time, and eliminates the losses seen in manual systems.

4perating in a wide range of different currency mar%ets at the same time, without worrying about

the time $ones of the places concerned, is another advantage that automated Forex trading

brings. Sitting in -ew 'or% at ( o8cloc% in the morning, one can conduct business with traders in

different countries on the other side of the globe, simultaneously and with great ease. #ll than%s

to automated Forex trading.

&is% management is often a source of worry for traders, but even this is reduced with automated

Forex trading. Payments can now be synchroni$ed in real time and this leaves traders satisfied,

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as opposed to manual trading where there is always uncertainty about payment being made after

completion of trade. The automated trading system is developing progressively, and that brings

with it hopes that the settlement system will be updated and mar%ets ris%s will soon cease to

exist.

f there is one technology that has advanced by leaps and bounds over the past few years, it is

computer technology. ndeed, one hopes that it will continue to grow for many years to come.)ost importantly, advances in computer technology spell good for traders who wish to access the

best Forex automated trading.

#ccess to technology easily and cheaply from the comfort of the traders8 homes means they can

manage their own investments with ease. #utomated Forex day trading will thus come as a

welcome addition to a fully empowered investment vehicle for those in the currency:trading world.

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Choosing the 8ight A%to!ated

Forex Trading 2oftare

#utomated forex trading has a few advantages of its own. 6ere all you have to do is follow trade

signals that are generated and if you are able to execute them with discipline and if your system

is logical, then you can easily pile up gains.

+efore loo%ing at the various ways you can gain profit through these software, let8s ta%e a loo% at

what not to do.

)any traders find forex robots online and buy them. +ut you must %eep in mind that most of these

are pieces of "un% and have never been traded in real time. Ta%e a loo% at the trac% record and

then at the disclaimer. t is probably hypothetical or stimulated and that is no sure indication of

future results. t is strange how some one can "ust ta%e a test and claim to ma%e money with it.

4f course, they do ma%e money for the vendor, they get the sale of the software and the trader

gets span%ed in the mar%et. -o one gets 1BB% annual income for a hundred buc%s. 'ou will never

ma%e any money with these stimulated systems so try and steer clear of them.

*et8s now ta%e a loo% at how automated forex trading is done in the proper way and discuss the

options.

+uy a system with a trac% record that has been audited over two years. These may not be cheap

but they can pay for themselves many times over. 'ou only ma%e sure that you understand and

agree with the logic before you begin to use it.

Try the free systems. *oo% up our other articles to %now more about them and you will reali$e

why this is a great place to begin your automated forex trading career.

9o ahead and build your own. This is easier than it sounds. t is also a better way of trading

because if you build and customi$e the system, you will gain more confidence and you will be

able to trade with discipline, even during periods of loss.

f you do decide to build yourself a system, we have it covered in our articles. +ut the best way to

go is to trade brea%outs, to new highs or lows, have momentum indicators to time your moves

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and focus on long term trends. The simpler it is the better. This will enable it to face the ever

changing mar%et condition. Pac%ing it with too many indicators might brea% it down.

4nce you are in possession of a system, get hold of a forex software pac%age, program the rules

and you are all set.

eep in mind that all forex trading systems, including the best ones will suffer losses that cancontinue for a long period of time. 'ou need to continue trading until you hit a home run and

because of this discipline and money management is necessary.

f your system does between /B:1BBM compounded annually, you are a part of the best

automated forex trading software and you can trade mar%ets and en"oy currency trading success.

79258580 Forex Trading Strategies 2

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Transcript of 79258580 Forex Trading Strategies 2