As a result, I rarely paid heed to those new techniques, fads and forex robots. Especially robots. Most don’t work. I never invested in a forex book other than Forex for Dummies!

But today, I changed my mind. A long time acquaintance of mine met up with me early this morning sharing how his forex life had completely turned around after reading a little manual called Forex Rebellion. He invited me to check out his stats which I did.  What I saw floored me. He has almost six trades a day for a week now and each one earning almost $300 to $800. His base capital prior to starting the system was a meagre $39,000. Now… it’s much much more than that. He incurred zero losses since starting on it.

I’m really intrigued. I scanned the system and noticed that the technique follows certain never heard of rules… tricks that not even the most jaded traders at forexfactory use. Some are even counter intuitive!

Now notwithstanding his monstrous success and the amazingly easy steps outlined within, I doubt I’d shift to the Forex Rebellion method. I’m already too comfortable with my  EMA system and the currency meter at fx4caster.com.

Anyone else tried this system? What’s your take?

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Today, a pal went to me to prove me wrong. With a fistful of data sheets, he showed how this moderately priced forex robot trader called FapTurbo actually doubled his base investment after using it for a month. Needless to say I was skeptical, but the numbers looked good.

I didn’t believe the printouts at first, so I insisted to login directly into his metatrader account to ascertain for myself the performance of his forex robot. He agreed. I spent 1 hour pouring over transactions entered into by this rather popular bot.

From what I noticed, this autorobot makes sparing moves. Sometimes it wouldn’t trade for days. Sometimes it executed multiple trades within a 12 hour span. The algorithm apparently searches for certain flags in the market- like convergences, spikes and trending. Once the conditions are met (and subject to the aggressiveness level set by the user), the robot opens a position then closes after a predetermined profit was set.

My friend set the bot on a rather aggressive mode. His actual charts showed a few losses (stuff he didn’t include in the printout. Ha!) and a many more wins.  There was a problem: when the robot loses, it loses big time. So 5 wins can be wiped out in just one loss.

I pointed this out. My friend was nonplussed. Whipping out his calculator he pointed out that the net GAIN was actually worth more than his initial capital. He earned $58,945 and lost $27,291. This totalled to a net gain of $30,000

Hmm… in my book, that was frightening. I could never imagine losses of $27,291… even if it were paper losses. What if prevailing economic conditions were worse and the robot actually lost $58K and gained $27k? I’d be out of business!

Still he stuck by his guns. He pointed out that I earned a SURE $15,000 in a month with the forex grail system, but I had to expend time nursing the account. He, on the other hand let the robot trade on auto while he went out partying.

Was this an acceptable trade off? I’m not a lazy person, I’d rather watch what is being done and earn without loss. Fapturbo is not for me… but for people like my friend, it’s the only way to earn big in forex.

Is this your cup of tea?

Check out this software at Forex Robot Trader

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1. My Experience With Forex Autopilot

So do you really need to know nothing about Forex if you want to use the program? Having downloaded and tried the software myself, I would think not. Before you start using this software, you should still have a basic knowledge of Forex Charts and some understanding of technical analysis. This is so that you can understand what exactly the robot is doing.

2. The Difficult Learning Curve Of Trading Forex

If you have tried trading the Forex market, you may already realize that there is no guarantee of profits, no matter how much time you spend trying to learn it. This is because no one can predict the market conditions perfectly. Statistics today show that almost 95% of Forex traders lose money.

To maximize your profits in Forex trading, you will need the right systems to maximize your chances.

3. How Does Forex Autopilot Work?

This bot basically imitates the actions of a trader, and works automatically to identify optimal entry and exit points. It picks up its own signals without any action from the user.

If you read the Forex Autopilot System author’s disclaimer, you will understand that even with the help of this automated bot, your trading activities will still involve some form of risks. But once you understand that you are only taking calculated risks, you should expect a realistic 5 to 10 percent returns with this system every month.

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Most traders have a psychological problem in running profits.

The typical forex trader gets a profit and feels pleased. The bigger it gets though, the more tempted he is to take it. Swings in price go back against his position and eats his open equity and this causes emotional problems.

The bigger the profit becomes the more tempted the trader is to take it. The trader ends up snatching the profit early, as open equity swings cause him to panic and he banks it and then what happens?

The trade continues the way he thought and goes on to pile up $10, 20 30,000 or more and he’s not in.

Its hard holding a profit in a long term trend and taking short term swings against you, by sometimes thousands a day – but if you want to catch and hold the long term trends that’s what you have to do.

It requires total understanding of your trading system and confidence in it – and this is why most traders can’t do it they are emotional “shoot from the hip” traders or following a guru.

A good forex trading system will normally win 30 – 50% of the time (forget the traders who claim 90% their lying) so your losers will be normally more or the at the same level as your profits. So you need to have a profit 3 – 5 times bigger than your loss to make good profits on your overall trading account.

Most traders simply don’t have the patience and discipline to follow long term trends but you must to win. However, look at the major forex trends and you will see they last for months or years and can make you rich – IF you can lock into and hold them.

Many forex traders simply can’t cope with trend following so they try day trading and vendors present it as way to scalp small profits and build them over time – good story, doesn’t work. Day trading is a loser’s game as all short term volatility is random.

If you find long term trend following to stressful, try forex swing trading as profits and loses come quickly and you don’t need to endure the open equity dips you do in trend following.

If you’re a novice cut your teeth on swing trading and build up your confidence and discipline to try long term trend following – if you can catch these trends, accept open equity dips and keep your eyes on the end prize, you could make huge profits.

Trend following is hard but very lucrative – if you have the mindset you can turn these trends into huge profits and understand forex money management is not just about taking losses its also about accepting big profits to.

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Learn Forex Online Currency Trading

Forex is also known as Foreign Exchange and FX and it basically involves trading the world’s currencies. Forex trading is big business and it is different to the stock market in the fact that it does not get conducted by a central exchange. Instead it is conducted by an over the counter market which is known as “Interbank”.

The trading is done between two counterparts and the Forex market is accessible 24 hours a day. For beginners, Forex trading is typically done through your own online account. This way you can see what is going on every minute of the day instead of having to go through a broker.

There are certain things that you will need to watch out for when you learn online Forex currency trading. One thing that you need to be aware of is Forward Outrights. Now when a purchase is made on a currency, it is usually settled immediately. However, there does tend to be an interest charge which will vary depending upon which currency you have traded. Some will carry a very small fee, whilst others will have a large one. So it is worth finding out this interest fee before you agree to trade. However, it usually does not make much of a difference unless you are planning to hold a position with a large differential for a long period of time.

Learn to Trade the Forex

Once you have a good understanding of what online Forex trading involves, it is then time to research more about actually trading the Forex.

What you are looking to do is research the currency movements. So you need to keep an eye on how each currency is doing. Before you purchase any currency you want to look at the markets and see which currency is currently doing well. It is always better to start off small. Beginners tend to be over enthusiastic so be careful until you know what you are doing.

If your chosen currency is doing well and you spot another currency that is not doing so well, you could potentially trade yours for a good price. For example, if you have US Dollars and you notice that the Euro is dipping a little, then if you trade your US Dollars for the Euro you could potentially make a good profit because there is every chance that the Euro will improve and you will get more back than you originally paid.

For beginners, Forex trading can be complicated if you do not do the right amount of research. However, as you gain a little experience you could potentially make a lot of money. You just have to be aware of the pitfalls as well as the benefits if you are to truly make a success of online Forex currency trading.

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There are several things you must write down in your plan. In fact, you should even do this before venturing into Forex trading in the first place. They include:

(1) How and when you will enter trades. The key to good entries is putting on trades where there is relatively low risk compare to much higher reward. You should write down clearly when and how you should enter a trade.

(2) How and when to exit a trade. You should define an initial stop point for your trade, at the point where the trend is invalidated. You will also need to define a ‘trailing stop’ technique to protect your profits.

(3) What type of orders you will use to enter and exit. To be a winner in Forex trading, you must write down what type of orders you will use to enter and exit a trade. When entering a trade, some Forex traders use limit orders, good for the day, while exits are often market orders. This is because limit orders allows you to define your risk and reward clearly on the entry of a trade, while when you need to get out, market orders allows for immediate exit compared to risk of missing your exit with a limit order.

(4) What broker you will use. The broker to use should be included in your written plan. This is because finding a good broker is very important to your success in Forex trading. Your focus should be finding a broker who gets you speedy and fair execution of your orders.

Writing down you goals and plans will definitively fire you to win profitably in your Forex trading.

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2. Are broker commissions eating up all your profit? The Forex trading system doesn’t charge you commissions. Your Forex broker profits by taking the difference in price between the ask price and the bid price for the currency being traded.

3. The Forex trading market works in real-time. This means no delays between when you place an order and when it actually gets filled. Delays are a way of life for the stock market. Unfortunately, this can often mean making a killing or losing money. You won’t find this on the Forex trading market which conducts trades virtually instantly.

4. Forex trades don’t have to go through a middleman. This means that a Forex trader can make the transaction directly from an entity that determines the price. When trading through the stock or futures market, you must go through an intermediary which results in slower progress and often, higher costs to you.

5. The Forex trade market is not influenced by any one person or company. Not true in regards to the stock or futures market. We have read about so-called experts telling us to buy a stock when it is low and assuring us that we will be OK in the end. Truth be told that the investor doesn’t always win in this scenario. Often the company is the only winner here. But the Forex trade market represents a country’s economic health, not a sole company or person.

6. The Forex trade market primarily focuses on the four major currency pairs, although you can access dozens of different currencies. Compared to the stock or futures market, they have over 8000 stocks to trade on the NASDAQ alone. This can be overwhelming for the average investor, not the mention the beginner since you will want to read up on the different stock’s news and do your analysis. The Forex trade market can greatly simplify this, reducing your research time and letting you start trading much more quickly.

7. Forex trading has limited risk. The most you can possibly lose is the money you have in your Forex trading account. This is because the trading platform that you use should automatically issue a margin call if the margin amount required by your account is in excess of the actual capital in your account. With the stock or futures market, it is possible for a margin call to occur at a loss. You would be liable for any amount not available in your account.

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Currency trading is regulated by the official stock exchange of a particular country. The price of the currency is fixed by the developments in the international market. The currency is traded on the basis of the rate it can fetch against a US dollar or Euro. All international currencies are traded against the US dollar since the international market transaction takes place in the US dollars. In the European Union countries, it is the Euro, which is active and strong. So stock exchanges in the European Union countries trade in the Euro currency against local currencies. Similarly, in Japan, it is the Yen, which is traded against the US dollar and in China; it is the Yuan, which is traded against the US dollar. In the Pacific Oceania region, it is the Australian dollar that rules the roost. Therefore, traders have a tendency to stack up the Australian dollar. However, worldwide, the most preferred currency for trading is the US dollar.

For an agency to trade in currency, it has to clear certain stringent norms and procedures. The bank should necessarily comply with the conditions laid down by the federal bank of the country. In many third world nations, only the government agencies and nationalized banks are eligible to engage in currency trading. There have been relaxations in case of certain agencies, which have been permitted to engage in currency trading. However, these agencies are constantly monitored to ensure that they are following the norms are laid down.

It is illegal for individuals to trade in currency in some countries. Any individual or agent found engaging in currency trading in violation of the stipulated rules could end up being penalized. There are chances that the agent could even lose the trading license and could be barred from all future trading in the stock exchange.

It is necessary for agencies and banks to keep a tab on the movement of the currency in the international market to make quick earnings. There are possibilities of the currency weakening against each other due to various forces acting on the market. Since the stock markets are extremely volatile, it is difficult to predict which way the currency will swing.

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What happened? There are actually a number of things that came into play.

1. First and foremost. They believed all the hype that they would become rich over night.
2. The did not buy a good course on how to trade the commodity markets.
3. They picked up some books on trading at the library, or worse, they signed up with a trading forum on the Internet and believed everything the so called experts said about getting rich in the futures markets.
4. They did not have a trading plan before they placed a trade. A disaster in th making.
5. They believed everything their broker told them. A NOTE: All brokers are not bad.

So what are new traders supposed to do. How do they keep from losing all their money in their first month of commodity trading?

There are two very basic ways to learn the craft of trading.

1. Paper trade.
2. Trade Mini-Futures contracts.

There are multitudes of commodity trading books on how to make money trading futures contracts. However, a person will be hard pressed to find how-to books devoted exclusively to trading Mini-Futures. The reason I believe is that Mini-Futures lack the glitter and claims to instant wealth found in the more traditional commodity trading manuals.

It’s unfortunate, but an alarming number of new traders will read one or more of the how-to books on commodity trading and jump right in and place a trade order not fully comprehending the real risks involved in trading.

Futures prices can and do make extreme price swings. New traders, because they lack experience, are unprepared to handle the large losses when trading standard futures contracts when prices move suddenly against their position.

Mini-futures are not immune from the same extreme price move. However, the dollar loss is considerably less. Mini futures contracts will let a new trader survive a sudden market shift and have money left in their trading account for the next trading opportunity.

What about limiting your losses with Loss orders? They are supposed to keep you from having large losses. Right? Not necessarily. There is what is called Daily Limit Moves, known as Limit Move, in futures trading. A Limit Move means that a commodity price can only change up or down a certain amount during a trading session. When that happens trading stops until whatever caused the drastic price shift changes.

When a commodity makes a limit move against you it can shoot through your stop loss as if it did not exist. If you are unfortunate enough to get stuck in a Limit Move against you that last two, three, or more days and you will be wishing you never heard of trading commodities.

This is not an everyday occurrence that you have to lose sleep over, but you need to be aware of it.

Trading futures can be a very profitable way to earn a living if you treat it as a business. Trading futures is an extremely high-risk business and as with any business you must first learn the business so you won’t lose everything you own.

Think of it as if you suddenly wanted to be a high wire performer in a circus. You would be in serious trouble if you put on the flashy tights, went up 50 feet and inched your way out on the wire before you learned the craft of tightrope walking a foot off the ground. Fifty feet is a long way to fall without a net to catch you.

Trading in the futures markets, and even the FOREX markets is considered very risky. You must learn how to do it without putting your entire financial world at risk. When I say risk I mean how much money you stand to lose if a trade goes against you. Your risks are anywhere from 20% to 50% less with mini futures over the more standardized commodity contract.

As an example a 20-cent move against you in corn is $1000 while the same move in the mini corn is only $200. Another great feature of the mini futures markets is the investment required to trade a mini commodity is also 20% to 50% less. A mini soybean contract requires less than $300 to trade while the full size contract requires more than $1300; mini corn is around $100.

A final note: the FOREX markets also have mini-contracts. But, the same risks apply. This series of articles will hopefully show you how to limit your exposure to a financial disaster.

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Day trading is described as the purchase and sales of a commodity within one business day. The forex market is an arena where brokers trade in foreign currencies for fun nad profit.

Forex day traders are the creme de la creme of forex trading. These folks are often the most experienced in market fluctuations and they often trade in large amounts of funds. They labor at forex trading 12 hours a day, seven days a week. Their aid to the market is massive, as they accumulate to critical  liquidity value. Without these fanatical day traders, it’s difficult for the more informal, longer term holder, to discern buyers at the time they are required.

Understand that forex trading is for the stout of spirit. You should have a powerful understanding of the forex market and all its intricacies. Realize, you’re fighting with seasoned commodity forex professionals who invest nearly all their waking hours scrutinizing and executing trades. Your knowledge ought to equal theirs or you’ll drown. Never be suckered by  systems being offered that promise you enormous forex returns for a tiny investment. Every business man knows that “get rich quick” scheme are a myth! You should understand it all perfectly in order to succeed.

Next, you must amass a fair amount of capital. Commodity Forex day traders are regularly institutional buyers. The traders control large sums of cash on a regular basis. With a piddling investment, you can’t stand against the big guys and expect of big forex returns. The adage says, “it takes money to make money”, is very true when it comes to any commodity forex trading. Gargantuan market swings in any twenty four hour period are highly unusual, so large profits only come from large investments. If you explore forex day trading market with the agenda of a quick fortune,  you’re much more likely to lose your investment. As with enterprise, you must make sure that the amount you invest is what you can afford to lose. Cash can accumulate on a small-balance account, but the process is a glacial one. You require the knowledge and safety measures that a good commodities forex broker can proffer.

Thirdly, always craft a plan. As you digest the books and understand the process, you will indubitably run into some “systems” that can be deployed powerfully. In addition, you’ll come up with your own rulebook as you gain skills with trades, either real or in trial accounts. Many of the hot systems being used successfully and have solid histories are called swing trading, trading news and arbitrage.

The popularity of forex trading and especially day trading, has been rapid. This has raised many questions. There are some who will divert you away from forex day trading with a passion. Others say that day trading is the only way to build a substantial income in the forex trading markets.

Now there are two things I realize: 1) Beginners are best off handing the forex day trading market to the experts 

2) Day traders provide the liquidity the forex require to continue.

Be careful, become educated, or get professional advice before embarking on a forex day trading strategy.

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