As a novice what does it require to know about forex before you begin trading.

The first thing you should do is get familiar about basics of forex trading. You can find a lot of free information online about forex as well as buy some forex trading course (like Peter Bain's).

The next step is to start virtual trading. Virtual trading does not require any money from you and it is a great way to experience forex trading without any risk on your part. Practice with virtual trading for a few months and you will know whether you are capable of making any money from forex, or not.

When you become confident enough, you may start real trading.

Good luck!

When forex tradeing why cant I trade both sides and use a stop loss? It seems like it would work if the market moved enough.
I know that I have the cost of the spread, but it seems like this would work, why doesnt it, if the trailing stop loss is active. Both going short and long.

Hi garryh41,

I advise you not to do manual trading either short or long. Because manual trading is always affected by panic, greed and fear. If you really want to make money, you should use an expert advisor.

As I monitored, currency market is most volatile market and implementing “stop loss” may result to loss of all investments. So “averaging strategy” is most perfect for making money through forex market. I have a lot of experience of manual trading in Forex Market. And on the basis of my long experience of a few years, I suggest you not to do manual trading. I also listened and read about a lot of Forex Robots and tried a few of them.

Currency market is most liquid market of the word. With the use of correct strategy anyone can make money through Forex market. It's a simple process to understand, buy a nation's currency when their economy is weak, and then trade the currency to make a profit when the global economy starts to change.

Forex trading is a very profitable business in today's world. Unlike the domestic stock markets, the forex currency trading is open for trades 24 hours a day. A successful Forex trader is one for whom the total amount of profit eventually outweighs the amount of loss. Using an auto trading software will eliminate the chances of the trader's emotions affecting his or her decisions. Therefore, to be successful in Forex market, one should do Auto trading.

Myself a most successful Currency Trader. With the Forex Market I am making money daily without any risk.

I have a great experience of Forex Trading both manual and Auto. I am a successful currency trader. I had uses a lot of Forex auto robot. But none found like Aeron Forex Auto Trader (www.aeroninfo.com). It is really for making money.

I friendly advise you to visit www.aeroninfo.com

I am thinking about getting forex megadroid, the new Fap Turbo. I want to know is it good for beginners. I have Fap and it is good I guess, but I am a noob and want to hear from anyone who has purchased it. I read the reviews ( http://forexrobotsystems.info ) but I am still not sure. I have heard only good things about it but then that's to be expected from reviews.

The best ROBOT is Forex AutoPilot Turbo. I have spent months testing and comparing robots.

If you need more info, do not hesitate to ask.

http://www.forexapt.com

This is my first time for paying income tax on ForEx, being a US citizen i believe i have to pay tax on forex income, but i have no clue what do i have to do for that. Thanks for your help.

Normally you need to file them as capital gains or losses (like you would with stocks or options).

But you can make a special election that will allow you to split them as 60% long terms capital gains and 40% regular income, which is advantageous for tax purposes since long term capital gains rates are lower.

http://www.onlineforextrading.com/learn-trading/forex-taxes

Is there anyway to trade the forex market without any indicators. I have used all indicators, and they have brought my total disappointment, even with money management.Please help!

The most important indicator in Forex is the price. Specially if you're trading on the short term.
On the long term fundamentals take an important role. So if you don't want to use indicators, you don't have to use them.
Money management is the most important part of trading. Even if you consider yourself good at money management, remember you can always get better.

I'm just starting forex trading and was wondering what tracking program would be best for me to begin to do Technical Analysis with. It would be nice if I could use a free program or at least a low cost one but if I need to I'll spring for a program to help me track currencies and develop a trading strategy. User friendliness is key because I'm a totally novice trader. Any reading materials for learning better TA or websites are also greatly appreciated.

A lot of people seem to use MT4, and many brokers offer this trading platform free with a demo account or with a real money account. It has many technical indicators you can use for free.

I'd probably recommend InterbankFX as a good place to start. They have a lot of educational information as well as offering free demo accounts.

If you were just learning about Forex Markets a good idea for you would be what is called the Forex mini account. The mini account is also great for those who want to start off with a fairly low investment. A mini account can be opened with only $250 while a regular one has to involve a minimum of $2,500. The option of the Forex mini account is definitely a more realistic option for smaller businesses that would like to get involved in the world market with very little available capital.

Many people wonder if those who are owners of these Forex mini accounts suffer any disadvantages because of the need for less capital. In most cases they do not, and than can definitely be a huge draw to those looking at the world market and not wanting to get taken advantage have by larger companies. Free trading platform and small spreads are just as easily available to Forex mini account holders as they are to anyone else involved in the Forex markets.

There are also some additional benefits to being a holder of a foreign exchange mini account. Those who own these mini accounts only needs fifty dollars as a margin deposit for a ten thousand dollar trade. This benefit of having leverage is one of two hundred to one, when you own a mini account. This means the trader can trade more in a commodity than the amount of money they available to them.

There is also another advantage with an FX mini account, in regards to losses and minimizing its losses. This type of accounts contract size is 1/10th the size of standard contracts and this is how they can save themselves from too much of a loss. These mini lots in a mini account are excellent way to save money in potential losses, depending on you set up your stop loss.

Also with a Forex mini account you are allowed more flexibility in regards to customizing your trades and minimizing your risks. This means that those with less money in their bank account can do better in this type of account. They can feel more comfortable in using the mini accounts because of the advantages and the fact that they have less risk because of them. This can help those with smaller bank accounts have a chance to invest in more areas without as much of the risk. In the end, Forex mini accounts are the best way to go for those with not as much cash available to them and yet want to minimize risk, and still be able to trade on the world market.

Michael Williams
http://www.articlesbase.com/finance-articles/forex-mini-account-am-i-eligible-50415.html

I read a lot of material on forex trading systems and the great copy offering me huge profits for $100 or so, sounds great!

Then when I come to buy the system I look for one thing and one thing only to see if it’s worth me parting with my money.

Its obvious but most forex system buyers don’t think to ask the obvious its:

The real time audited track record from the vendor.

After all if they make claims about how great their system is shouldn’t they be trading it and shouldn’t they have some proof it makes money?

Of course they should!

In most cases however with forex trading systems all you get is a hypothetical track record at best, or a load of vague claims without substantiation.

A hypothetical track record means absolutely nothing.

Let’s define exactly what this means:

It means the person had all the closing data in hindsight and can simply make the profit and loss whatever they want it to be.

You never see one that loses money.

Let’s face it, if we are doing a track record knowing the closing prices anyone can make money as they know what the prices did.

My 10 year old boy can do that!

There are some good forex trading systems out there and the best way to get one that is reputable is to get a trader who puts his money where his mouth is and trades his own system.

Would you take driving lessons from someone who had not driven before?

Of course you wouldn’t!

Use the same rule in trading if the vendor doesn’t have the confidence to trade his own system why should you?

Don’t fall for the hype

Fact is, there are many forex trading systems sold by vendors without track records and they know their systems don’t work and that’s why they don’t trade.

Of course, they make money from greedy and foolish people who fall for the copy.

Vendor wins you lose – Simple.

People will say the fact that a froex trading system just because it has made money in the past does not mean it will make money in the future and of course this is true, but I Like the fact the person selling at least has shown profit and has the confidence to trade.

My view is never trade a system without a real time track record of at least two years.

Sacha Tarkovsky
http://www.articlesbase.com/currency-trading-articles/forex-trading-systems-thinking-of-buying-one-then-look-for-this-106290.html

Investing in any kind of business or industry entails not only knowledge and hard work but also the perfect and best strategy for a winning game. Forex trading business has been one of the most attractive moneymaking opportunities for lot of people these days. You read it in the papers; you watch it in the news. Everybody’s is raving for a piece of winning from it.

Staying on top of a big and risky business, such as forex trading, needs the best forex strategy, wherein you can continuously use all throughout the trade and still not lose in the game or can upgrade and develop over time. Such strategies should keep maximizing your profits and giving you a big slice of the forex cake.

But did you know that to establish the best forex strategy, it is important for a trader to understand other strategies that the market has been dealing with for sometime? These strategies will be your basis in formulating your own workable forex strategy.

Normal Trading Day. This happens when the market is experiencing a normal trading day, wherein the currency price begins quite below or above 75ma. Next, it stretches a little, and then back to 75ma. This event refers to a certain currency being stable, showing the smallest sign that you should make some adjustment son your position.

Slow Trading Day. This happens when the market is witnessing a slow trading condition, wherein the currency price starts at 200ma, but stretches no over than 20pips,a and goes back to 200ma on that same trading day. When it happens, this paves the way to a normal trading day. After which, you make some adjustments on your strategy because it indicates stability of the value of currency.

Fast Trading Day. It happens when the market is having a fast trading day, wherein the currency price is quite below or above 21ema. It ascends and descends afterwards. Then, returns to 21ema. This signifies optimistic movements of the features that affect the mother country’s currency, although such movements can be both for the good or bad.

Big Range Day. This pertain to the lows and highs of the range of the subject - that is 20pips apart. It signifies the currency’s instability. It can also be good or bad. At this case, your strategy should be flexible enough for anything that might happen.

Any forex strategy have to be taken with flexibility, vigilance and utmost caution. Most traders have learned to establish their own strategy to ensure the success of their financial ventures. However, there is no perfect or absolute forex strategy or method over time. Strategies have to be updated and enhanced every now and then because the market conditions are dependent on a per day basis.

To learn the real art of forex trading is never that easy. It takes a lot of patience, observation, critical mindedness, awareness, motivation, wisdom, and understanding to really get into the business for the longest time.

John Callingham
http://www.articlesbase.com/finance-articles/forex-strategywhich-strategy-is-the-best-519313.html

Here are 4 fail-proof ways to solve the Pip Auction Game problem, and to guarantee that you’re not going to play it again. You have heard this before, and it’s true, but until now you still have not lived by this rule. You should never risk more for pips than they are worth. You should cut your losses short.

If your trade does not produce a profit for you, then you should close it. Practically, here is what you do. These are not hard and fast rules, but you will be able to mold them to your use easily enough.

1. If your trade does not work out within X minutes, then close the trade. X minutes is the number of minutes during which your trade just sits and does not move very much. You’re at a loss, but not a large loss.

2. If your trade immediately starts to move against you, ask yourself: did you make the right decision? If you did, then stay in until your stop loss is hit. If not, exit NOW, regardless of your stop loss being further away. More on this later — but a few words now:

How do you know that you did not enter the trade for the right reason? If you traded on emotion, if you entered the trade within 5 minutes of sitting down at your computer, if you did not follow your trading plan (later chapter), if you have a feeling deep inside that you made a mistake — all of these are good signs that you have made a trade for the wrong reasons.

Here’s the next way to avoid the Pip Auction Game:

You can’t lose what you don’t risk. Of course, if you have any desire to be rich at all, you’re thinking that this is the dumbest advice you’ve ever received.

1. If you have lost more than 9% of your account value, within ANY period of time, stop trading live NOW. No exceptions.

2. Trade on a demo account for 1 week for every 2% of your account that was lost (and maybe even more). If this seems like too much of a burden, ask yourself: “How much of a burden would it be to lose my entire account?”

This can be really hard to do. For instance, if you are trying to pay your bills and live off your trading account, and you are asked to stop trading live, you are going to wonder where you’re going to get the money to live from. The simple answer is that you have started trading live too early, and it is better to have $2,000 (or any amount) that you cannot trade live, than it is to have nothing left at all.

I once worked with a trader that refused to stop trading live and move to a demo account because “demo trading will take away the excitement. I’m not sure I could stay interested in trading if I’m only trading a demo account.” He lost everything. Twice.

1. Every week, print your account history from your trading platform, and spend 2 hours away from your computer (preferably outside your house, in the library, or a restaurant, or someplace that you can think away from your trading area) looking over the report.

2. Look for your mistakes. They should be easy to identify. They are the trades that were losers.

3. Realize that every losing trade is a mistake. If you believe otherwise (the old, “Well, it’s good because I’ve learned my lesson”), then you are going to at least enjoy losing your entire account. Get with the program, man! Would you be happy to have set your hair on fire, because now you can say, “Well, I’ll never do that again!”?

4. Get someone you trust to look over your statement for you. Ask them to be brutally honest with you. If this person says, “You are going to lose everything,” believe them. Just go ahead and believe them. So many times, traders who have lost 50% of their account feel that “I’ve finally turned the corner, and this is it. I’m not going to lose anymore.” They don’t switch to demo trading, and they lose everything. Don’t do this. It feels awful.

The last point here. I recently worked with a wise trader in Fiji, who realized that he wasn’t following a system with proven results — that although he had intermittent (large) wins, he also was having occasional losses that left him feeling uneasy about trading. So you know what he did? He stopped trading.

Wisely, he kept his account balance intact while he worked out the details. How long did it take him? It does not matter. My friend was willing to trade on a demo for as long as it took him to get back to trading a proven system that he could trade with confidence.

You could learn from our friend from Fiji. When in doubt, don’t take more live trades. Take NONE.

Martin Chandra
http://www.articlesbase.com/finance-articles/forex-pip-auction-game-problem-83987.html