Many traders are daunted by the thought of forex trading so they decide to get help from an expert mentor or guru.

Let’s look at some tips on how to choose one.

Firstly, the vast majority of advice sold on the net is either available free anyway, or simply does not work.

Think about it:

If you do trades with 70% accuracy, you would be to busy trading your way to millionaire status than bothering to crow about how good you are on the net, for $100 or so.

The Day trading myth

You have seen them guys promising you 10 – 100 pips a day in profit, or systems that are so accurate and consistent they can’t possibly be true.

Day trading is where the bulk of the courses are sold.

The myth is you can make money consistently and long term – Absolute rubbish.

Day trading is done in short time spans and all short term moves are random, so kiss goodbye to your equity.

Ask for a track record and see if you get one.

I never have! And by track record I mean a real not hypothetical one.

And don’t fall for the testimonial from a friend, or guy with lucky trade.

The More Expensive advice is the better it is.

Some advice costs a lot more than $100 or so, you can pay thousands for it.

The novice trader thinks it must be good as its expensive - not so.

Judge A vendor simply by if they have made money – that’s the only criteria that counts.

Then decide if you understand the logic (if you don’t you wont be able to follow it with discipline) and without discipline you have no method in the first place.

Really want to succeed?

Go to your local bookstore and pick up some classic trading books, by traders who have walked the walk rather than are all talk.

Get these three great books

Market Wizards & The New Market Wizards – Jack Schwager

These are interviews with some of the top traders of all time and are great insight into what makes a great trader.

Trader Vic – Vic Sperandeo

This is a fantastic book - giving you everything you need to help you trade from money management to ideas on systems.

The above will cost you around $50.00 and will be money well spent.

There are other books but these are my favorites.

And if you read them:

They make clear that for success you rely on yourself and no one else.

Devise your own system (we have done loads of articles on this ) keep it simple, trade with discipline, show patience and perseverance and you can make it all on your own.

If you must buy advice get a track record and find one you understand and have confidence in but the best way to make money ( or the only way) is to do it on your own.

Sacha Tarkovsky
http://www.articlesbase.com/currency-trading-articles/forex-trading-tips-on-buying-courses-systems-113548.html

Automated Forex trading systems are popular and most new traders think there the way to trade an automatic way to make money, make a regular income and all for the price of a night out! They don’t deliver; here’s why…

If I walked up to and said give me $100.00 and I Will give you an income for life, you would laugh at me but when people by get rich quick robots that’s exactly what they do.

Common sense should warn traders that if a system looks to good to be true it is and these systems offer better track records than the worlds top traders who are on millions a year in salary, yet none of these traders would ever use such a system, because they don’t work.

Here are some of the claims made and the reality.

- Double Your Income Every Month

This is impossible in an odds based market!

Forex markets don’t move to a set mathematical theory, so it’s impossible to double every month with certainty. Anyone who thinks they can is very naïve.

- Trade with Less than 1% Drawdown

Not even the best traders in the world achieve this and it’s a fact, to make big gains, you need to take risks and risk goes with reward. You cannot hive big gains without drawdown.

- Losses last a couple of days

Pure fantasy, any trading system even the best, will lose for long periods of at least a few weeks.

- Sophisticated Algorithms are used to Predict Prices

Well most I have seen, are anything but sophisticated and even more important, money management parameters are no existent or based on unsound logic.

Most of these systems are not designed by traders but by marketing companies. If you are a trader you know that markets are an odds based market and don’t move to a mathematical formula

- Track Records Presented

Most are simply back tests done in simulation and knowing the closing prices. There are some that put out real results but there is no independent verification.

A quick look in online forums shows an army of affiliates taking about how much money their making with the system and a link back to their site to buy it - well if their making so much, why are they so keen to sell it? You will then find another group of people who have lost heavily and don’t understand why.

Do any Robots Work?

Yes they do but there not the heavily hyped ones, you have to seek them out and many produce independent track records of between 30 - 100% annually with 20 - 50% drawdown.

These are good solid systems and if you trade them long term and can ride out your losses, you can make great solid gains.

Always remember if it looks to good to be true it is and if making money was so easy the whole world would quit working and start trading, hasn’t happened though has it?

Samuel Leslie Berkovits
http://www.articlesbase.com/currency-trading-articles/automated-forex-trading-systems-a-great-way-to-wipe-out-your-account-quickly-705353.html

You will see a lot of Forex scalping systems advertised and they all claim they can make big gains but which do and which don’t? Check a simple point and we can reveal the answer…

Check this key point before you consider buying any Forex day trading or scalping system.

Look at the track record and see if it has the words “hypothetical”, “back tested” or “simulated” written on it and immediately discount it, as its not been traded for real and has been done on past data knowing the closing prices and thats easy so pass it by and guess what?

You’re probably thinking well, all I need to do is look for one with a proven real time track record. Of course this is true - but get ready for a long and fruitless search.

You won’t find one with a real time track record over the longer term (say 2 years) I have been looking for 25 years and not found one, so let me know if you do.

The reason of course why you won’t find one is simple - in today’s world of instant communications and volatile price action, you have random volatility in a day and you cannot predict the price in a few hours or minutes and to think anyone can you would have to be able to work out the following:

What millions upon millions of traders, who all use trading different methods, who all have different skills and most are influenced by their emotions, are going to do in a short space of time and the task is impossible.

That’s why you never see a real time track record on any system sold online.

If You Want to Win

Trade time periods where you can get the odds on your side and that means long term trend following or swing trading.

Both methods have their merits and both can make you money as you have a long enough time period to calculate the odds so focus on these two methods and pass by Forex scalping systems with their simulated track records - simulations will not turn into real profits.

Sonia Kristina
http://www.articlesbase.com/day-trading-articles/forex-scalping-systems-finding-the-ones-that-make-huge-regular-gains-681571.html

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I\’ve been trading currencies for some years now and love to visit forex forums and blogs at least on weekends when there is no trading. I\’ve found out that one of the most popular subjects discussed there is how to find a perfect automated forex trading system. That quest is also called looking for the “Holy Grail”.

Why is that such important issue?

The answer is simple. Trading currencies can be very profitable, however, to achieve great results, you need a proper combination of resources (trading capital, time, and skills/knowledge) and you have to remove emotions (fear, greed, etc.) from your trading. The best way to do that is by using a right automated forex system.

What are the benefits of using an automated forex system, or in other words, how can it make your trading consistently profitable? Well, the right automated forex system will make your trading stress-free and will help you make the best use of your trading capital, will save you time and energy. And often money too…

Trading with automated forex software is almost like earning money on autopilot. You do your initial setup, e.g., regarding what currencies to trade, when to trade (time/day), what time frames to use and profit/loss settings (most important!) and after that all you have to do is to ensure that your computer stays on.

Three most important advantages of using automated forex systems are: 1/ removing emotional factor and human error from your trading; 2/ taking over management of your trading capital by using consistently (automatically) precise profit targets, stop losses, entries and exits; 3/ finding trading opportunities (trading signals) 24/7 for every currency pair and every time/day/time frame combination and for various styles of trading (news, swing, position, etc.).

With such important benefits of using automated forex systems, it\’s obvious why so many traders or potential traders are ready to pay significant amounts of money to get hold of such powerful tools. And, with such promising opportunities for profit, they are not concerned too much with drawbacks of using the automated forex systems.

But using automated forex trading systems does have some disadvantages, although they are not serious enough to discourage potential buyers.

For example, some of those autopilot systems don\’t work too well during news releases. Some experts comment that it\’s due to the fact that news trading is based on fundamentals, while the trading systems are based on technical analysis (indicators). That\’s true in most cases, but what also needs consideration is the fact that most of the brokers do spread adjustments around the time of the news announcements. It\’s not so easy for the systems to account for that, unless a system incorporates interdisciplinary theories, such as chaos theory, fractal geometry, etc.

The other drawback often mentioned is the fact that a system performed well in the past doesn\’t guarantee that it will do the same in the future. Well, it\’s true and no software developer can make any claim to the contrary. In fact, any sales letter has to disclose that forex trading has both large potential rewards and potential risks and that past performance of any trading is not necessarily indicative of future results.

Those disadvantages seem to be minor when compared to potential profits from trading currencies on autopilot. That\’s why automated forex trading systems are so popular.

Mary Cala
http://www.articlesbase.com/insurance-articles/benefits-and-drawbacks-of-using-automated-forex-systems-671736.html

http://StockTips.Weebly.com You must check this site out if you are at all interested in forex trading! It is awesome!
Review of Forex Education - Forex Trading Systems

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The Currency markets never sleeps and several trillions dollars are traded everyday, making the Foreign Exchange Market the World’s biggest and most exciting investment market. In recent years, mechanical currency trading systems, using technical analysis to predict trend movements have become increasingly popular as a way of locking into, and profiting from the longer term currency trends.

Forex trading systems are ideal for generating profits from longer-term currency trends, and they occur in all currencies. The longer-term trends in Forex markets reflect the state of the economy. As economic cycles are relatively long and take years, so do the currency trends that reflect these cycles. A good Forex trading system can enable traders to lock into, and make profits from these longer-term trends. When choosing currencies to trade, it is important to have good long-term trends, but just as important is liquidity, which enables traders to lock in profits and exit losing trades quickly.

Currencies that offer good trends and liquidity include:

- The US Dollar

- Swiss Franc

- Euro

- Japanese Yen

- British Pound.

Forex trading systems remove emotions from trading, which is the major reason the majority of traders end up losing. There has been plenty of material written about using currency trading systems, and the works below provides informative reading for anyone thinking of using a Forex trading system.

Traders should try to read the following authors:

Edwin Lefeurve, Jake Bernstein, Larry Williams, Ken Roberts, Van Tharpe and Jack Shwager whose books “Market Wizards” and “The New Market Wizards” interview some of the most successful traders of all time, including the turtles. The Turtles are group of traders who had no prior trading experience, but went on to earn hundreds of millions of dollars, using very simple mechanical trading systems.

The developments in recent years in computer software, the growth of the Internet, and online trading, has seen Forex trading systems become more popular than ever. Software Packages such as Tradestation, Supercharts, Omni trader, and many more, allow traders to back test systems, using a variety of technical indicators that include:

- Forex Autopilot (F.A.P. Turbo)

- Stochastics

- Bollinger bands

- RSI

- moving averages

- ADX

And many more.

The Forex trading system picked can then be analyised, to see how it would have performed in the markets with commissions and slippage deducted. Traders, who don’t want to develop a currency trading system, can buy systems off the shelf from vendors.

How do you Choose a Successful Forex Trading System?

If you are buying a Forex trading system, there are several things to consider before parting with your hard earned cash:

1. Are you interested in being a day trader, or a trader looking for longer-term trends? You need to pick a system that you’re comfortable with and this is mostly down to personal preference. Some traders like the excitement of day trading others prefer a longer-term approach.

2. Do you want to have any input into the system, or do you want it to be totally mechanical?

3. Do you want to trade just one currency, or a basket of currencies? Using a Forex trading system that trades just one currency can be more profitable but keep in mind, the converse is true, i.e losses and drawdowns can be larger.

4. When choosing a trading system you need to have confidence to trade with it, and follow the system through losing periods. To do this you should know the logic the system is based upon. If you understand the system and its logic, you will derive confidence and be more likely to follow it - in contrast to one where the logic is not revealed.

5. What are the average profits you can expect in relation to drawdowns? All currency trading systems will have periods of drawdown and losses. Generally the larger the profits the bigger the drawdowns tend to be over time - so pick a system that reflects your investment aims and risk tolerance.

6. When you are buying a currency trading system, check out the system seller’s experience, track record, customer support. See whether they have a real-time track record, or a hypothetical one.

A real time track records means the system has performed in the market and made money. Trading systems that simply rely on hypothetical track records mean they have been back tested and with the benefit of hindsight we can all make money.

While hypothetical track records should be treated with a degree of caution, you can find out a lot about whether the system is likely to make money, by knowing the logic the system is based on. When considering a hypothetical track record, look for one where the logic is revealed and not a “black box system” where you have no idea how to system works.

In conclusion, you can make your own Forex trading system, or you can buy one from a vendor. When choosing one from a vendor make sure you do your homework, and remember, if it looks too good to be true, it probably is.

Jason Hamilton
http://www.articlesbase.com/currency-trading-articles/making-money-from-forex-trading-systems-674433.html

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The forex market is the largest and oldest financial market in the world. It is the biggest and most liquid market in the world, and it is traded mainly through the 24 hour-a-day inter-bank currency market. The forex market is a cash (or ’spot’) inter-bank market. By comparison, the currency futures market is only one per cent as big.

Foreign exchange simply means the buying of one currency and selling another at the same time. In other words, the currency of one country is exchanged for those of another. The currencies of the world are on a floating exchange rate, and are always traded in pairs. In excess of 85 percent of all daily transactions involve trading of the major currencies: Australian Dollar, British Pound, Canadian Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar.

Unlike the futures and stock markets, trading of currencies is not centralized on an exchange. Forex literally follows the sun around the world. Trading moves from major banking centres of the U.S. to Australia and New Zealand, to the Far East, to Europe and finally back to the U.S.

How foreign exchange trading systems work? There are 3 kind of forex trading systems:

Trading with Brokers

Foreign exchange brokers, unlike equity brokers, do not take positions for themselves; they only service banks. Their roles are to bring together buyers and sellers in the market, to optimize the price they show to their customers and quickly, accurately, and faithfully executing the traders’ orders.

The majority of the foreign exchange brokers execute business via phone using an open box system – a microphone in front of the broker that continuously transmits everything he or she says on the direct phone lines to the speaker boxes in the banks. This way, all banks can hear all the deals being executed.

Because of the open box system used by brokers, a trader is able to hear all prices quoted; whether the bid was hit or the offer taken; and the following price. What the trader will not be able to hear is the amounts of particular bids and offers and the names of the banks showing the prices. Prices are anonymous. The anonymity of the banks that are trading in the market ensures the market’s efficiency, as all banks have a fair chance to trade.

Direct dealing

Direct dealing is based on trading reciprocity. A market maker-the bank making or quoting a price – expects the bank that is calling to reciprocate with respect to making a price when called upon. Direct dealing provides more trading discretion, as compared to dealing in the brokers’ market. Sometimes traders take advantage of this characteristic.

Direct dealing used to be conducted mostly on the phone. Phone dealing was error-prone and slow. Dealing errors were difficult to prove and even more difficult to settle. Direct dealing was forever changed in the mid-1980s, by the introduction of dealing systems. Dealing systems are on-line computers that link the contributing banks around the world on a one-on-one basis. The performance of dealing systems is characterized by speed, reliability, and safety.

Dealing systems are continuously being improved in order to offer maximum support to the dealer’s main function: trading. The software is rather reliable in picking up the big figure of the exchange rates and the standard value dates. In addition, it is extremely precise and fast in contacting other parties, switching among conversations, and accessing the database. The trader is in continuous visual contact with the information exchanged on the monitor. It is easier to see than hear this information, especially when switching among conversations.

Most banks use a combination of brokers and direct dealing systems. Both approaches reach the same banks, but not the same parties, because corporations, for instance, cannot deal in the brokers’ market. Traders develop personal relationships with both brokers and traders in the markets, but select their trading medium based on price quality, not on personal feelings. The market share between dealing systems and brokers fluctuates based on market conditions. Fast market conditions are beneficial to dealing systems, whereas regular market conditions are more beneficial to brokers.

Matching systems

Unlike dealing systems, on which trading is not anonymous and is conducted on a one-on-one basis, matching systems are anonymous and individual traders deal against the rest of the market, similar to dealing in the brokers’ market. However, unlike the brokers’ market, there are no individuals to bring the prices to the market, and liquidity may be limited at times. Matching systems are well-suited for trading smaller amounts as well.

The dealing systems’ characteristics of speed, reliability, and safety are replicated in the matching systems. In addition, credit lines are automatically managed by the systems. Traders input the total credit line for each counterparty. When the credit line has been reached, the system automatically disallows dealing with the particular party by displaying credit restrictions, or shows the trader only the price made by banks that have open lines of credit.

As soon as the credit line is restored, the system allows the bank to deal again. In the inter-bank market, traders deal directly with dealing systems, matching systems, and brokers in a complementary fashion.

Nofie Iman
http://www.articlesbase.com/finance-articles/understanding-forex-trading-systems-63094.html

http://www.forexstrategysecrets.com/jump-start

It's essential to have good forex trading tools: 1. Use a good trading system. 2. Be a disciplined trader.

This series teaches how to succeed in forex trading regardless the trading system you adhere to.

Duration : 2 min 57 sec

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