Archive for September, 2009

Lots of people are selling Forex trading secrets online and telling you how you can beat the market but the fact is you can’t but you can win, if you learn the real secret of Forex trading success which is enclosed.

The secret we are going to look at is related to a Forex fact and the fact is a well known one and that’s 95% of traders lose and 95% of traders lost 50 and 100 years ago – so why is this so significant?

Because it shows the market cannot be beaten and very importantly, cannot be beaten by technology as many claim think about it:

How many technology advances have we seen in the last 100 years? So many life has changed life beyond recognition but it has made no difference to the number of winners and losers. Lot’s of people think the market can be predicted, with a cheap Forex robot and they all lose. The problem is Forex markets can never be predicted and the Forex secret of trading success actually lies within you, let me explain why…

Forex trading is an odds market, it’s a market of probabilities not certainties and in this type of market, simple systems work best and always will because they are more robust than complex ones, as the constant ratio of winners to losers.

Now anyone can learn a simple system but the reason most traders fail is, because they cannot get the disciplined mindset needed to apply it. The reason for this is they do not have the discipline to cut their losses and just as importantly, they don’t have the courage to run their profits. if you can’t keep losses small and run profits, you will lose it’s as simple as that.

So how do you get mental discipline and win?

Unlike what the huge number of self confessed gurus and mentors will tell you, you need to know what your doing and have a good education, so you have confidence; if you don’t have confidence, you won’t have discipline.

Anyone can learn to trade, because Forex trading is simple as we have said and anyone can get a disciplined mindset if they want to; in Forex trading its not the market that beats the trader, he does that all by himself. If you understand this article, you now know what to do to achieve Forex trading success.

For a beginner who wants to learn forex trading it may at first seem to be a completely different world but in reality the basics are in no means hard to learn. Once You have a command and understand the different buzz words and trading terms and a basic concept of how the markets work.

The name of the game is to make substantial money in a extremely short time, this is what forex currency trading is all about! It is extremely possible for a trader to make a large quantity of money extremely quickly because the rates of exchange on the Forex market often rise and fall exceptionally fast.

This also means that there is a possible chance of losing a lot, forex trading is the same as most things in life that provide the potential of high returns. If you had ever exchanged currency for your trip you may have notices that the rates have changed when you changed it back.

A excellent example would be you change $100 into another currency for your trip, and then discovered that you would not need it and converted it back. There is a fair chance that the rate of exchange had changed and you either made a profit or loss money.

The smartest Forex traders deal in currencies with the intention of making a profit all of the time, but their not changing money at the bank instead they are using a broker. Almost all of these type transactions today are done online. As you many begin to see it is not all that much different from trading stock.

You still have the same capacity to execute trades using margins this is where you maintain a small balance with your broker and can use it to control many bigger deals. It should also be noted that buying on margins can be terribly risky, if you get a margin call you will need to come up with the funds to cover the call, if you can’t then the broker will start selling you holdings until your call has been covered.

One of the subtle differences from the securities exchange trading is forex traders are not restricted to trading in just their own country. You are can trade any two currencies no matter where you reside. This means that the forex market is truly international. Based on the many different time zones, Forex operates 24 hours a day starting on Monday morning in Australia until Friday afternoon in New York.

All currency is shown using 3 letters: the Australian dollar AUD, the Canadian dollar CAD, the US dollar is USD, British pound is GPB, the Euro is EUR, Japanese Yen is JPY, CHF for the Swiss franc, etc. The way the exchange rate between two different currencies could be expressed something like this: USD/CHF 1.14. What this means is if you wanted to purchase one US dollar you would need 1.14 Swiss francs. I

If you are considering getting into forex trading one of the first thing you will need to do is find a broker or investment management company that you know that you can trust. It will be worth your time to shop around and check out a number of online forums for recommendations.

You want to look at how long the company has been doing business and be sure you know what rights you have and all your liabilities. Make sure you take the time and read all the fine print.

Most if not all the successful traders are using a bot to make their trading for them. These automated forex trading software programs can run for you 24 hours a day based on the trading rules that you set. Almost all of these forex robots have a demo option that you can set up and assess the trading system and the trading rules that you have set before you spend any real money.

You can find many different forex robots on the Internet and more coming out every day, most of them have clear instructions for the beginner that wants to learn forex trading.

Enclosed we will cover a story which has gone down in trading history, where a group of novices with no trading experience, learned to trade in just two weeks and went on to make hundreds of millions of dollars and if you study the story it can lead you to bigger Forex profits.

The story relates to the turtles who were a group of ordinary people who ranged from a security guard to an actor who were taught to trade in two weeks and became trading legends. Dennis simply set out to prove anyone could win with the right education and not only did they win they learned to win quickly.

The fact that stands out is the success of the group in a market where 95% of all traders lose money. So what was their secret of success?

The secret of their success was built on a simple long term, breakout trading system and it was very simple the rules are public now and even after 25 years, it still makes money but the real problem with it is – following it with discipline and this is the problem for most traders with any system.

Learning a method that can make money is easy, applying it with discipline is another matter. In terms of the system the turtles used, you have far more losers than winners and have to take them and keep them small and then have the courage to hold your winners and its hard, I have tried it and I have been trading for 22 years. It’s simply hard to take a lot of losses, even though you know the winners will cover them and make a huge profit!

Discipline is hard for most traders because they always let their emotions get involved, you can get a disciplined mindset and it’s based on a good education, knowing what your doing, confidence and leaving your emotions behind.

Anyone one can learn to trade successfully as Dennis proved and you don’t need to be a geek or have a college education to succeed but you do, have to trade with discipline and if learn to do it and you can make a great second or even life changing income.