Currency Trading Articles

Forex Tips - Technical Analysis and Psychology of the Mass

noreply@blogger.com (Article Stream) — Sat, 06 Sep 2008 21:33:00 +0000

By A.J Abrams for Currency Trading Articles
A lot has been written about the effectiveness of technical analysis in trading. The academic community, for instance, has not accepted technical analysis as a scientific discipline. Fundamental analysis supporters also refuse to recognize it as a valuable trading tool.

And still, technical analysis is the most common used approach to trading, especially when it comes to forex trading. The liquidity and versatility of the forex market make it a paradise for "technicians". Technical analysis is also the basis of many automated forex trading systems. The question is whether technical analysis is indeed the right way to trade the forex market?

Well, I think that a good forex trader should know every aspect of trading, and that includes fundamental analysis. Economic forces influence the relatively strength of each currency and it is essential to be familiar with them. At the same time, technical analysis, which focuses on the price (in forex- the ratio between two currency pairs) is also important at least for one major reason - it reflects the state of mind of the mass in every given moment. For example, support and resistant levels actually create a psychological area. When support or resistant level is penetrated, the psychological barrier falls and the mass push the market in the same direction (down or up). In many cases, the price is stopped exactly at the level of a previous swing high (potentially creating a double top pattern) or swing low (double bottom). Another commonly seen phenomenon is a support line turning into a resistance line and vice versa.

Here is, for example, the GBP/USD 4H graph of May 19, 2008. See how the red resistance line turns into a strong support.

click on image to enlarge

Is this a mere coincidence? Probably not. The mass first identified the red line as a resistance area and promptly after the resistance has been penetrated, the same line remains and becomes support. A critical mass of traders gave this line exactly the same meaning and a "collective mind" has been born. This "collective mind" is now keeping the spot above the support, at least for a while and long enough for smart traders to identify the opportunity and exploit it for making money.

Graphs always tell us a story. We only need to understand the psychology of the crowd behind them and act accordingly. It is not an easy task. Some say reading the graphs is a combination of art and science which takes years to master. All true, but by trying to understand the psychology of the mass one can gradually develop a habit of being always one step ahead of the herd.

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Forex Trading - the subtle trap that causes most traders to fail

noreply@blogger.com (Article Stream) — Fri, 05 Sep 2008 20:32:00 +0000

Note: The following is an original article written for Currency Trading Articles. Enjoy your reading.
Dan K. for Currency Trading Articles
As the popularity of forex trading increases, so increases the number of new traders who get burned too early, losing their funds and never trade forex again. In reality, only a small group of elite traders (some say between 5 to 10 percent) eventually survive the learning carve and trade forex for a living.

The are many reasons for the above statistics. But the primary reason for the high percentage of failure goes down to the root of human nature. While a successful trader must be rational rather than emotional, most humans find it very difficult to control their impulsive, irrational behavior when they trade. And the reason for this difficulty is no other than EVOLUTION.

Evolution prefers impulsive/emotional reaction over rational thinking in terms of order of appearance. By default, emotionally driven behavior comes first. Why? Because the ability to survive thousands of years ago relied on a quick, instinctive reaction to danger. Evolution prefers the one who first run without thinking over the one who first stops to think and then run. The reason is simple: Statistically, it is better to run away at the slightest possibility of danger, even though 99 out of 100 times there is no real danger justifies running. Through the eyes of evolution, an individual who wastes time on rational analysis every time he feels in danger, might not succeed to save himself in the one single occasion out of 100 where the danger is real.

So basically we are programed to first act emotionally (impulsively) while rationality comes second. However, forex trading should be based on rational decision making. A prerequisite for winning the forex game is to rationally weight risk vs. odds prior to every single move. However, being products of evolution, humans tend to first act emotionally when they trade. This is the reason why traders enter a position impulsively (for example, in order to "catch" a quick market move), even though the risk/profit ratio is not in their favor; that is also the reason why traders move or cancel their stop loss order and significantly increase risk just because they want to avoid the emotional pain involved with losing real money. After all, you do not mind that your stop loss is hit while you DEMO trade don't you?

Indeed, EVERY successful trader has managed to control his emotions while trading. However, this is in contrast to our evolutionary psychology and, hence, a very hard thing to do. So hard, that it is almost impossible for the vast majority of traders, the losing 95%, to accomplish.

So how can you join the winning 5%? Here is a suggested action plan:

1. Get a good trading strategy with a precise, easy to follow set of entry and exit rules. A decent strategy with a good money management already includes the "rationality" aspect of trading.
2. Stick to your trading strategy. Sticking with the rigid rules of your strategy will help you to trade without emotions.
3. Learn to accept losing trades, although losing is painful. No matter which strategy you use, you cannot win them all. But if you trade your strategy and stick with it, you will be profitable in the long run.

Where to Start?

Developing your own trading strategy is a long and tedious process. This is the ultimate goal of every trader, but most newbies give up too early and drop along the way. Here are some recommended tools that can make the learning carve manageable. They are not free but I guarantee you that you will spend much more time and money if you just start trading without any guidance. In addition, the return on investment of these tools is absolutely extraordinary. Think about it rationally (risk vs. odds) not emotionally (how much it costs...) - just like successful businessmen and forex traders do:

Forex Trading Machine - An easy to follow trading system teaching you how to trade from scratch.
Forex Power Strategy Course - A comprehensive course that will give an edge over competition.
10 minute forex wealth builder - A bombastic title, I know. But in fact, this is a great system that can make a difference for you if you stick to its rules. This is a good solution for newbies who want to trade forex but cannot afford to quit their job (yet...).

Whichever tool you choose, it is a huge step in your trading career as long as you remember to stick with the rules. After all, we are all products of evolution.

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Forex Tip: Understand Leverage or Die

noreply@blogger.com (Article Stream) — Tue, 02 Sep 2008 12:56:00 +0000

By Ben Lipski for Currency Trading Articles
Most traders, usually newbies, focus on things such as trading strategy, charts and indicators. Important elements, no doubt. But lots of forex "victims" miss a crucial point that literally kills their accounts in the first 3 months of trading - they don't understand LEVERAGE. Leverage is the ratio between the actual size of the position and the amount of money the trader needs to deposit (or set aside) in order to control the position (margin). For example, if the position size is $100,000 and the margin is $1,000, the leverage is 1:100. It means that in order to "play" with $100,000 the trader needs to set aside only $1,000 for margin. If the leverage is 1:200, the trader will be able to control $100,000 with only $500 and so on. Some forex brokers offer leverage up to 1:400. But leverage can kill you. And that will be a quick and painful death.

Let's take two typical traders for example. They both have the same amount of money in their account -- $10,000. They both use the same trading system and for the sake of illustration they even place the same orders at the same time with the same currency pair -- EUR/USD.

Andy uses 1:25 leverage and trades one regular lot ($100,000). He goes long on the EUD/USD with a 50 pips stop loss order. Andy's margin for this position is $4000. Ron, on the other hand, wants to maximize his profits. He uses the highest leverage offered by his broker -- 1:400. This leverage enables him to trade 10 regular lots ($1,000,000). That's a lot, and Ron becomes a little bit greedy. But hey, he is here to make money. And the margin is only $2,500. So he goes long on the EUR/USD with a 50 pips stop loss, like Andy.

The market goes against the poor traders and the stop loss are hit. Andy's loss is $500. He still has $9,500 in his account so he easily moves to the next trade. What about Ron? He lost in this single trade $5,000. This is half of his account! What a slap in the face, from which he might not recover mentally. If he does not change his money management and risk management, the high leverage will kill his account very shortly. Maybe even in the next trade. It does not mean that Ron cannot analyze the market or cannot spot good trading opportunity when it comes. It only means that he does not trade to survive. And in order to survive the forex market you need to fully understand the implications of high leverage.

So regardless of what your broker tries to sell you, pay close attention to your money and risk management and do not leverage too much. Because as shown in the example above, the temptation to leverage might be lethal.

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Learn how to manage your positions and prepare yourself mentally to win. Click here for more details on the real "Subtle Trap of Trading".

Free 'Must Read' e-books

noreply@blogger.com (Article Stream) — Sun, 24 Aug 2008 14:10:00 +0000

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Technical Analysis - Reversal Patterns: Double Top

noreply@blogger.com (Article Stream) — Wed, 13 Aug 2008 08:58:00 +0000

*Based on article by Dan Karagher

Reversal patterns are a very efficient technical tool. One of the most common and reliable bearish reversal patterns is the "Double Top". A classic Double Top pattern is formed when the currency pair reaches a certain high, retraces and then reaches again the previous high level. If the pair does not break the previous high level (so that a second top is formed), the probability of a bearish reversal is very high. Like most technical analysis tools, the larger the time frame, the more accurate is the trading signal generated by the pattern.

For swing forex trading, we usually scan the daily and 4H graphs of multiple currency pairs on a regular basis, looking for patterns. In the last few months, a classic Double Top pattern has been formed in the EUR/USD pair. Here is a screen shot of the EUR/USD daily graph taken today, August 13, 2008. Note the clear Double Top pattern:

click on image to enlarge

Obviously, the opportunity to go short occurred much earlier, actually near the second top of the pattern formed in mid July 2008. When we noticed that a second top is being formed, we waited for the right moment to place a trade. As always, we used additional factors to validate the possibility of a short position: A very important factor was the fact that the EUR/USD reached an "all times high" level (at 1.600) in both tops of the Double Top pattern. An "all time high" level is considered a very significant resistance area which strengthens and validates the bearish Double Top pattern. In addition, the relevant economic data as well as the behavior of other major USD pairs such as GBP/USD and AUD/USD also supported a bearish reversal.

Finally, we used some common technical indicators such as moving averages and parabolic SAR together with the Forex Killer signaling software. This time, the software provided a very strong bearish long term signal with probability of more than 80%. We ignored the short term signal as we planned to hold the position for a few days at the minimum. Here is a screen shot of the Forex Killer signal we used:

click on image to enlarge

On the basis of the above analysis, we entered a short position on July 23, 2008 at 1.57001.

Our conservative profit target of 1.53344 was hit on August 7, 2008. It is a very nice 365 pips move in our favor, resulted in a total profit of $US 10,971 (we traded 3 standard lots of $100,000 each. With a leverage of 1:200 it means that we had to set aside as margin only $1,500).

Here is a screen shot of the MT4 trading terminal with all the details:

click on image to enlarge

As you can see, the EUD continued to depreciate vs. the USD and while writing the spot is 1.48880.

http://currency-trading-daily-articles.blogspot.com

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A Message From Brian McAboy - The Trading P.I.T Club Program

noreply@blogger.com (Article Stream) — Sat, 09 Aug 2008 00:01:00 +0000

Brian McAboy's "Trading P.I.T Club" program on emotional intelligence has already been introduced here. For those of you who have not yet read Brian's message - here is another chance, as we truly believe that Emotional Intelligence is the real "holy grail" of trading. This 5 minutes reading could be the most rewarding investment in your entire trading career...

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This report by Brain McAboy is a must read for every trader who considers forex as a source of income. As you already know, the top traders over the years have something in common. They approach trading differently than the "stupid" losing herd (no offense...). This report reveals the proven formula of these successful traders. It goes down to the basics of trading and assists you to build the foundation of your Forex business. Are you serious enough about becoming a profitable trader?

So first you might want to bookmark this page (Ctrl+D). If you later decide to become a member of the Trading P.I.T Club, just send an e-mail to Article.Stream@gmail.com [re: P.I.T club Free Bonus"] and the bonus will be sent to you as soon as your membership is confirmed.

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The Only Thing You Must Know About Forex Trading

noreply@blogger.com (Article Stream) — Sun, 27 Jul 2008 11:39:00 +0000

Forex Trading looks too easy to new traders. When one realizes the huge potential of this market, especially in times like this when the stock and commodity markets are unstable, it is sometimes very tempting to open live account and start trading right away. But the fact is that most newbie traders are being slaughtered by the professionals and do not survive more than a few months. Other keep struggling with forex until they quit.

So what separates the boys from the men in the forex market? Unlike newbies, experienced traders know that the forex game CAN be easy, if you play it right. Through a process of trial and error, winning traders came to conclusion that what separates winners from losers in the forex market is one single thing; a thing that seems so close but for many traders is often unreachable. This "thing" is the trader's Emotional Intelligence. Once you understand this, you are automatically one big step ahead of the herd on your way to become a winning forex trader.

It does not matter how well you master technical and fundamental analysis. At the end of the day, it is your ability to master your emotions that counts. Beginners may not fully understand the importance of this, but veterans know that the trader's state-of-mind determines everything in trading including money and risk management, entry and exit points, profits and losses. This is really the only thing you should know about forex trading. Anything else - like trading strategies, technical analysis, fundamental analysis, economic news etc. - can be found for free all over the internet.

Therefore, if you are struggling with forex you should first look into yourself. Sometimes a small mental change is all it takes to make a huge difference in your trading.

One of the best programs in the field of forex emotional intelligence today is Brian McAboy's "Trading P.I.T Club". We Know Brian for a couple of years now and the guy truly knows what he is doing when it comes to trading psychology. Brian focuses on the emotional aspects of forex trading for many years and his special educational approach has changed the lives of many traders worldwide. Among others, he is the author of "The Subtle Trap Of Trading" which helped hundreds of traders to improve their emotional skills and finally achieve a true forex freedom. His recent "Trading P.I.T Club" is a step-by-step 26 week training program for becoming an emotionally intelligent winning trader.

This unique program is the outcome of many years of trading experience and is the most professional Forex Psychology program available online. So before you place another trade, make sure you read Brian's message at The Trading P.I.T Club.

Happy Trading,

http://currency-trading-daily-articles.blogspot.com

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How to Test Almost any Forex Trading Software Completely Risk-Free?

noreply@blogger.com (Article Stream) — Mon, 14 Jul 2008 11:04:00 +0000

Every trader is a unique individual with his own approach to trading, trading experience, level of knowledge and skills. Some traders may feel comfortable with one system and make money with it while others may consider it a scam. Therefore, whichever system you consider to purchase, you should test it yourself with a demo account for a few weeks before making a final decision. Your private experience with the system will provide you with the best answer to your "million dollar question": Does this system worth my money?

Many forex traders dedicate hours and days for searching other traders reviews of popular forex trading software. It is natural and understandable as no one want to purchase a trading software just to find out later that it is a scam. However, there is a much easier and reliable way to eliminate the risk of being scammed.

Most popular Forex Trading Software can be tested risk-free

Why? because the best forex trading software are listed with ClickBank. For those of you who do not know, ClickBank is the internet's leading retailer of digital products. It means that every serious vendor who ever created a digital product (such as Forex Trading Software or Forex e-book) also listed the product with ClickBank in order to reach millions of potential online customers worldwide. For that reason, some popular forex system such as Forex Autopilot, Forex Killer, Forex Tracer, Forex Trading Machine and alike are listed with ClickBank.

ClickBank hates scammers and lousy products because they damage its good reputation and credibility. In order to prevent scammers from listing their product with them, ClickBank have a very strict policy: every product listed with ClickBank must have a 60 days "no questions asked" money back guarantee offered by the vendor. Product that has a high refund rate is usually taken out of the list and cannot be distributed through ClickBank. In order to ensure credibility, ClickBank makes sure that unhappy customers get their refund very quickly. In view of the above, you can be sure that ClickBank money back guarantee is one of the best guarantees in the business.

This reliable 60 days money-back guarantee attached to every ClickBank product enables you to test your favorite Forex Trading Software yourself, without the confusing, biased reviews that are everywhere online. 60 days are more than enough to make a decision whether the product is a scam or just doesn't fit your trading style.

For more information, including a step-by-step instructions how to test any Forex Trading System with zero risk visit www.forex-systems-review.blogspot.com

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Forex Killer Signaling Software - Trading the GBP/USD

noreply@blogger.com (Article Stream) — Sun, 13 Jul 2008 11:45:00 +0000

In the past few weeks we have been using Forex Killer signaling software as another powerful indicator to validate the signals of our own trading strategies. This time we used the software in order to assess whether to go long with the GBP/USD pair. The GBP/USD is a relatively "aggressive" and volatile pair that moves quickly when trending.

On July 10, '08 we spotted a good entry opportunity in the GBP/USD around the 1.9740 level.

1. The technical analysis and economic date supported a long position (i.e, buy GBP). Technically, we spotted a bullish Japanese Candlestick pattern ("Hammer") in the 1h chart. Other indicators such as RSI, MACD and Stochastic also supported a bullish move.

Here is a screenshot of the 1h chart:

click on image to enlarge

2. To validate the signals of our trading strategy, we loaded the data from the 1h chart to the Forex Killer software. The software processed the data and generated a strong "BUY" signal at 1.9741(both in the short and long term) with probability of almost 70%.

Here is a screenshot of the forex killer software signals:

click on image to enlarge

We placed a stop loss order of 30 pips at the bottom of the pattern at 1.9711 with a trailing stop. We also set the "profit target" just below the previous high in the 1h chart at 1.9820.

The profit target was hit at 1.9820 (stop loss automatically moved to 1.9764). Grand Total: +79 pips; $US 2,370 profit.

Here is a screenshot of the 1h chart with the full details (date, entry order, stop loss, exit, profit etc.):

click on image to enlarge

For more information on Forex Killer Software visit Forex Killer official site.

http://currency-trading-daily-articles.blogspot.com
http://top-10-forex-trading-systems.blogspot.com

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Trading the Non Farm Payroll Monster with Forex Killer

noreply@blogger.com (Article Stream) — Tue, 08 Jul 2008 10:36:00 +0000

The Non Farm Payroll (NFP) is one of the most important economic data for forex traders. It reflects the change in the number of employed people in the U.S during the previous month, excluding the farming industry. Usually, the NFP is released on the first Friday of each month. The combination of importance and earliness makes for hefty market impacts. And when the market is volatile, there are also good trading opportunities.

This month (July 2008) the NFP data has been released one day earlier than usual (on Thursday, July 3) due to the US holiday on Friday (July 4). It was a very interesting release that gave the US dollar some steam. We managed to grab some pips shortly after the release in the USD/JPY and the EUR/USD pairs. We used simple technical analysis and two strong trading signals generated by the Forex Killer signaling software. Here are screenshots of the NFP trades:

USD/JPY (MT4 chart and Forex Killer Software screen side by side)

click on images to enlarge

Note that the short term signal in the Forex Killer chart is "No Trade" in view of the market inactivity just before the NFP release. Nevertheless, the long term Forex Killer signal is a "strong buy" with probability of 87.94% to go long. As you can see in the USD/JPY chart, we managed this trade very conservatively (due to high market volatility after the release) and grabbed $374.

EUR/USD (MT4 chart and Forex Killer screen side by side)

click on images to enlarge

In this case both Forex Killer Software short and long term signals indicated "strong sell" with probability of above 60%. In addition, prior to the NFP release the spot was near the 1.590 resistance area and supported our decision to go short. As shown in the MT4 chart, the pair moved aggressively soon after the release. The position yielded more than 200 pips by July 7.

http://currency-trading-daily-articles.blogspot.com
http://top-10-forex-trading-systems.blogspot.com

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Forex Strategy - Weekly Close Scalping

noreply@blogger.com (Article Stream) — Mon, 23 Jun 2008 14:33:00 +0000

There is a say among savvy traders: "keep it simple". The following strategy is a simple part time strategy that fits all of you 9-to-5'ers who want a piece of the action.

Set-up:
open GBP/USD weekly chart.

Entry Rules:
On Monday during European session place entry orders 50 PIPS above (Buy) and below (Sell) the previous week's close. For each entry order place fixed 30 PIP stop.
Some guys also use a signal software as an additional indicator that filters most of the wrong entries. When the spot comes close to the Buy/Sell level, the signal software can validate or invalidate the trend.

Exit:
There are a few options, depending your trading style. Each one has its pros and cons:
1. Do not Place a profit target. Just leave the position open until Friday and exit toward the end of the US session. Pros: Profit maximization; no intervention required. Cons: lack of profit protection; exposure to market volatility.
2. Place profit target (at least 100-150 PIPS). Pros: lower exposure to market volatility. Cons: premature exit.
3. Use trailing stop of 75 PIPS and let the position ride. Pros: dynamic profit protection; Cons: premature exit.

The strategy is based on the tendency of the weekly trend to establish itself at the beginning of the week (Monday or Tuesday) and keep moving in the same direction until the end of the trading week (Friday).

For a more aggressive approach you can use the following rule:

If the "Buy" entry order is executed, move the "Sell" order up to the previous week's close.
If the "Sell" order is executed, move the "Buy" down to the previous week's close.

This rule is for those who can risk twice the amount of the original stop loss (30 PIPS). Remember that in many cases this approach results in a big winner.

Example:

GBP/USDPrevious weekly close: 1.9759
Buy: 1.9809 Stop: 19779 aggressive approach: If "Sell" order is hit, move "Buy" entry to 1.9759
Sell: 1.9709 Stop: 1.9739 aggressive approach: If "Buy" order is hit, move "Sell" entry to 1.9759

Try to demo trade first with volatile currency pairs (GPB/USD, USD/CHF). The strategy works well also with EUR/USD and AUD/USD.

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Forex Automated Trading Systems - A Roulette or a Valuable Edge?

noreply@blogger.com (Article Stream) — Mon, 16 Jun 2008 19:46:00 +0000

Forex opposers often claim that Forex trading is equal to gambling. And when it comes to Forex automated systems - these are considered a "home-based casino". Forex supporters believe that making money in the forex market is an achievable task, not gambling.

The truth is somewhere in the middle. It is well known that a casino, offering all kinds of gambling, is one of the most profitable businesses out there. The reason for that is the fact that in the long run the casino (a.k.a "the House") cannot lose simply because in all sorts of gambling the odds are in its favor. Mathematical calculation ensures that the "House" has more than 50% probability to beat the gambler in every game, whether it is Black Jack, Roulette or cubes. Sure, gamblers do win occasionally. Casino houses want you to hear about those random winners in order to encourage you to keep betting.

But what if YOU were the "House" - the owner of a super efficient money machine? Assuming that you are not going to open a legal casino in the next future, is it possible for a forex trader to become the "House" in the forex market?

In reality, some forex brokers are a version of the known casino. Those brokers have an interest to turn forex trading into gambling while they function as the "House" (and the "House" always wins, remember?).

But here comes a huge difference between forex trading and gambling: In forex, unlike gambling, you - the trader- can be the "House" if you play the game right. The absolute proof are the top 10% of forex traders who have been making money for years. That means that they are doing something right. That "something" simply turns the odds in their favor. While in the casino even the best gambler cannot shift the odds in his favor - but only to minimize his risk - in forex trading it can be done because of the unique nature of trading. Savvy forex traders know to calculate risk/reward ratio in any given moment, to spot the right opportunity at the right time and exploit the market movement in their favor. It is hard task with a tough learning curve. Simply put, forex "survivors" are traders who manged to become the "House" in terms of probability.

Many savvy traders use automated trading software in order to get the valuable edge in their trading, just like large investment banks who execute thousands of buy & sell orders per day. Over time, savvy retailer forex traders as well as large investment banks are making money from currency trading. Their automated trading systems just turn the odds in their favor, day in and day out.

A good automated forex trading system can flatten the learning curve of a forex beginner and become a stable source of income. However, "over the counter" automated trading software might be useless. Hence, if you are inclined to have such software please consider to buy only one that you can thoroughly test before risking real money. ForexAutopilot™ (a.k.a F.A.P.S) is an example of a highly effective forex trading software that can be tested risk free. ForexAutopilot™ creator - a forex insider named Marcus Leary- allows you to try his system completely risk-free for 56 days. Here is a ForexAutopilot™ review that explains step-by-step how to take this system for a test drive.

Whichever trading system you choose, the rule of thumb is always "try it first". Some systems are just junk. Others are good but do not fit your trading style or technical skills. So before you spend your money try to get a real feeling whether the product is for you. In most cases, creators of good automated trading systems will give you the option to test their system risk-free.

Market Watch - AUD/USD 4H Breakout 6/13/08

noreply@blogger.com (Article Stream) — Fri, 13 Jun 2008 10:03:00 +0000

The triangle pattern in the AUD/USD 4H chart has developed nicely. The odds for a short breakout were higher and indeed we managed to grab some pips in this move.

Here is a screenshot of Friday, June 13, 2008, 10:08 AM GMT:

click on image to enlarge

http://currency-trading-daily-articles.blogspot.com

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Forex Psychology - Your Self Evaluation Checklist

noreply@blogger.com (Article Stream) — Sun, 08 Jun 2008 21:14:00 +0000

One trait every successful trader has is constant self evaluation. You have probably heard this before but in trading it is an absolute truth: you are your biggest enemy. The following checklist may help you to identify the psychological obstacles every trader encounters throughout his trading career. Take a few minutes to read it, be honest with your answers and re-read the list from time to time. You will be amazed of your progress and will see actual results in your trading account balance.

After a losing trade, do you have an urge to "revenge" and immediately enter another trade just to regain money lost? If so, do losses often followed by further trading losses? When you are in a "revenge" mode, do you tend to widen your stop loss order or to trade without stop loss at all? You will notice that your trading performance is poor when you are upset or disturbed for any reason.
Do you work on yourself mentally while the market is close? Do you analyze your trading activity and try to identify what you’re doing right and wrong in your trading each day with specific steps to address both? Good traders always review their latest trades and analyze them. They even keep a trading diary and write down comments, do and don't do. It is called business quality control which enables successful traders to change with the ever changing forex markets;
What influence do days where you lacked discipline and/or proper risk control have on your total profit/loss? Do you have and strictly follow risk and money management rules?
What is your state-of-mind while you trade? Before you enter a trade: Are you thinking about the money you will make? Does the trade itself exciting you? Savvy forex traders do not think in terms of money while they trade. They think in terms of pips. If you think about the money it means that you are not acting from the right motives. In addition, good traders do not look for excitement, self esteem or recognition in the forex market. They trade to make pips. And in most cases you will not be able to tell whether they had a good or bad trading day.
Do you have any self-talk while you trade? If so, What is the quality of your self-talk? Is it angry and frustrated; negative and defeated or encouraging and optimistic? Is your self-talk constructive, and would you want others to be talking with you that way while you’re trading?
Do you exit trades too early just to see the market rally in the direction of your closed position? Do you become stubborn when facing losing positions, turning small losers into large ones?Remember: cut your losses short and let your profits grow. This is a simple rule and a key to success but you will find it very hard to follow.
Do you enjoy trading? Are you feeling happy while you trade or trading is a continuing agony for you? Forex trading is a hard, sometimes tedious work. The revenue might be huge but this work is not for every one. Are you built for forex trading?
Do you spot real trading opportunities and trade them? Or you have the habit of creating opportunities when they are not there? inexperience, undisciplined traders have the tendency to push the trigger to often and not according to their trading plan.
Do you have a unique trait that gives you an edge over other traders? It might be super tight spreads, fast computer and special tool or an unusual disciple and perseverance. If you are able to identify your special edges and maintain them, you will gradually come close to the top 5 percent of traders who make most of the profits in the forex market.
How much are you willing to sacrifice in order to become a successful forex trader? Think of the time and money every professional had to sacrifice in order to make living from his profession. Forex trading is not exceptional.

Further reading on Forex Trading Psychology & related resources:

Visit Currency Trading Articles to enhance your knowledge about forex.

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Forex Trading - the Silent Forex Wealth Builder

noreply@blogger.com (Article Stream) — Wed, 04 Jun 2008 16:58:00 +0000

Nowadays, when home-based trading is so accessible, many think of forex trading as a quick way to get out of the rat-race. However, when the newbies meet the professionals, the battle is over too early for the newbies. When I say "Newbie" I do not suggest that the person is not intelligent or educated. On the contrary. Many lawyers, doctors, dentists, psychologists, navy pilots - you name it- lost their panties in the forex market. Is it because they are not clever enough? or underfunded? Probably not. They just tried to win the forex game without the required forex mental and technical tools. Unrealistic expectations and underestimation of the forex market make savvy, educated people to pour money into their accounts just to see it fading away.

The right way to approach forex trading is the "tortoise way". I guess that if you are reading this article you probably have a 9-to-5 day job and you are looking for additional source of income. Forex is a great option but only if taken step by step. Here are the guidelines you should follow if you have the patience and ambition to succeed:

1. Learning: This should be your first step. At the beginning you should learn whatever you can about forex. Read a lot. Ask questions and look for answers. There is a vast amount of free knowledge out there.

2. Get real. Get prepared: When you feel ready to trade, aim for realistic goals. Do not bet the farm at the very begining (many do). Instead, open a separate saving account and deposit small amounts every month from your paycheck. This should be money dedicated to trading and that you can afford to lose. At the beginning even a $100 per month will do.

3. Look & Feel: Then, while you are still keeping your 9-to-5 job, start experimenting forex trading. At first stage, open a free demo account and start practicing what you have learned.
You will make many mental and technical mistakes. And you will lose most of the time. But it is better to lose virtual money isn't it?

4. Open live account: Demo trading is good up to a certain point. At some point, you must open a live account because demo trading is never like the real thing. I can assure you that your decision making process is totally different when real money is involved.
If you do not have the time to trade, you can use one of the forex automated systems available to retailers. As long as you use proper money and risk management, those systems are a great way to generate passive income that can accumulate to considerable amount within a short period of time. You will be surprised to know that a mere $300 can turn into $30,000 in just six months! All it takes is 20 pips per day on average.

Remember that even if you decide to use an automated system, you must know what you are doing. You still have the power to decide when to turn the system on and how. So if, for example, the market is volatile, just stay out and keep your automated system off.

5. Sharpen your skills: This is the part that actually never ends. If you are persistent enough and keep moving step-by-step, you will gradually reveal other dimensions in your trading. Eventually, you will be able to quit your job and enjoy the freedom you have always dreamed of.

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Explore currency-trading-daily-articles.blogspot.com to enhance your knowledge about forex trading. If you consider automated forex trading, you cannot afford to skip Forex Autopilot risk-free bonus site.

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Technical Analysis - Tunnels

noreply@blogger.com (Article Stream) — Tue, 03 Jun 2008 14:21:00 +0000

Tunnels are created when the market moves sideways. A tunnel is actually a range in which the market moves for a certain period of time. There are 3 types of tunnels: descending, ascending and horizontal.

Here is an example of descending tunnel in the GBP/USD 4h graph:

click on image to enlarge

The problem with tunnels is that by the time we are sure that a tunnel is formed, it might be the end of the market moving sideways. It just might be too late to place a trade. The rule of thumb is that it takes at least three picks and three bottoms within a clear range to define a tunnel.

There are two major ways to trade a tunnel:

1. Range trading: The goal is to exploit the movement of the market within a more or less identified range inside the tunnel. When the market reaches the tunnels "ceiling" it might be a good opportunity to go short with a stop loss order at the ceiling area. When the market touches the tunnel bottom, it is a bullish reversal signal and it might be the time to go long with a stop loss order at the bottom area. The advantage of this method is the relatively tight stop loss.

2. Breakout trading: As every sideways movement comes to an end, patient traders do not trade the range and just wait for the unavoidable breakout. The downside of this method are the false or premature breakouts. A common strategy is to wait for a confirmation candle which opens and closes outside the tunnel (i.e, candle's whole actual body is out of the tunnel range) in the direction of the breakout. The above image of the GBP/USD 4h chart demonstrates a bullish tunnel breakout. In many cases, the market retraces after a breakout and "re-checks" the tunnel. In a bullish breakout, the upper tunnel line might function as support area and in a bearish breakout as a resistance area. Hence, it is recommended to wait for the "re-check" and only then consider to place the trade.

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Forex Autopilot© risk-free test drive & special bonus site.

http://currency-trading-daily-articles.blogspot.com

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Market Watch - AUD/USD Breakout 6/2/08

noreply@blogger.com (Article Stream) — Mon, 02 Jun 2008 08:37:00 +0000

Further to our last market watch report regarding the AUD/USD triangle pattern, the expected breakout occurred on friday May 30 and is in progress today, June 2.

Here is the screen shot of June 2, 8:40AM GMT:

click on image to enlarge

Note the 0.9500 support area that might restrain the breakout and hold the spot at +0.95 level.

http://currency-trading-daily-articles.blogspot.com

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Market Watch - AUD/USD Triangle Pattern

noreply@blogger.com (Article Stream) — Thu, 29 May 2008 13:21:00 +0000

A clear triangle pattern is being formed in the AUD/USD 4h chart.

click on image to enlarge

As the pattern is at the end of the rally, it is actually a classic "flag". It would be interesting to follow the AUD/USD in the next hours and look for breakout of the pattern. Typically, a flag formed after a long rally is a continuation pattern. However, the AUD/USD is at a 25 years high level so we would be cautious here and wait for clear signal.

Currency-Trading-Daily-Articles.blogspot.com

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GBP/USD Support & Resistant Graph

noreply@blogger.com (Article Stream) — Thu, 22 May 2008 22:48:00 +0000

For those of you of could not open the GBP/USD 4H graph (article of May 19), here it is again:

click on image to enlarge

http://currency-trading-daily-articles.blogspot.com

Forex Autopilot System - 3 rules to avoid forex autopilot scams

noreply@blogger.com (Article Stream) — Wed, 21 May 2008 13:16:00 +0000

By A.J Abrams
Forex autopilot systems have bad reputation. I guess that a smart forex trader who encounters forex autopilot trading software or any other kind of trading robot always asks the same question: Is this forex autopilot a scam? Well, in most cases forex autopilot software are indeed scams. They promise the moon but fail to deliver. Be aware of those.

However, it is just logical that there are SOME forex autopilot systems that do work. For example, it is well known that major investment banks do some forex speculation on a regular basis and it will be quite sure to assume that they are doing well. Have you ever thought who places the trades for those big institutes? True, they do have teams of professionals traders who analyze the economic news and get the "big picture". But as the forex market is open 24 hours a day, 5 days a week and the number of trades executed per day is huge, be sure that investment banks have automated trading systems that execute the trades. With a good build in money management and risk management rules, these industrial automated forex systems make a fortune for the big dogs on the long run. These automated money making software are among the best kept secrets of the industry.

In the last few years, forex trading evolves and becomes available to private home-based traders. Soon enough, "home use" forex autopilot systems began to pop-up. As mentioned above, most of these systems worth nothing. But if you have 9 to 5 job, using forex autopilot is probably the only way for you to start generating residual passive income from forex trading. So here are 3 rules you should follow in order to avoid forex autopilot scams:

Rule#1: Look for a Money-Back Guarantee:
Never buy forex autopilot unless the merchant offers a free risk money back guarantee. Sellers who developed good systems have trust in their product and will not hesitate to promise you full refund in case you are not satisfied. You should check very carefully the terms of the guarantee. Do not be lazy. Read the "small letters". Also, look for guarantees of at least 45 days, which is enough time to test the system with your demo account.

Rule#2: Check vendor's Customer Support:
Do it before you buy. Serious vendors keep a customer support team that should be available during working hours on-line and via the phone. Simply contact the support team a few times prior the purchase and ask questions such as: How will you refund me if I decide that the system is not for me? Has the system been tested prior to launching and for how long? What is the system's maximum drawdown? and so on. The answers you get (or not...) will help you to make a decision with confidence.

Rule#3: After you buy - demo trade your autopilot system
Do not risk real money before you get to know your forex autopilot system. You WILL make technical mistakes and you do not want to pay real money for these mistakes. Take the time and master the software. Customize it to your own needs and trading style. If it works for you then fine - you have an additional income generator that might be your primary source of income in the future. If it does not work - ask for your money back before the guarantee expires.

I cannot stress this enough - follow the above rules and minimize your risk exposure to virtually zero. Otherwise, you might be scammed.

Here is a suggested forex autopilot system that you may find just right for you. It meets our 3 rules and has good feedbacks. Visit the official site at www.forexautopilot.com for more details.

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Forex Killer Review - Forex Killer And The 3 Golden Rules Of Forex Trading

noreply@blogger.com (Article Stream) — Thu, 15 May 2008 10:12:00 +0000

Dan K. for Currency Trading Articles
Forex Killer is a popular trading signal generator that can be used for a wide range of currency pairs and time frames. The creators of the software are kind of a "dream team" when it comes to forex trading- A professional forex trader (Andreas Kirchberger), a mathematician and a psychologist. Apparently, Forex Killer is currently one of the most popular forex trading software. Maybe it is the relatively low price together with the temptation to trade from day one with a straight forward - no guessing - system. However, I do have some concerns when I am thinking about what can happen if forex killer finds its way to the wrong (newbie) hands.

There is a lot of hype around Forex Killer. Hence, I conducted an on-line research on the subject. I encountered lots of supporting testimonials but naturally, the bad feedbacks were more interesting. Most of Forex Killer unhappy customers say something like "I am using Forex Killer but could not make consistent profits" or even "Forex Killer is a total scam, I lost a lot of money using it". When I went even dipper with my research I corresponded with some unhappy Forex Killer customers over a few respectable forex forums. I found out that traders who did not succeed with Forex Killer have something in common: First, in most cases they are newbie forex traders - most of them have trading experience of 3 months or less; Additionally, the vast majority of them traded only on the basis of the Forex Killer signals without using any trading strategy; Finally, they all purchased Forex Killer with the expectation to make piles of money in a very short period of time. It also appears, that the satisfied Forex Killer customers are probably more experienced and sophisticated traders.

The conclusion is that Forex Killer can make you money only if you are PREPARED to make money as a trader. A trader is prepared to trade for a living only when he really masters the 3 golden rules of forex trading:

#1 - Knowledge: You cannot expect to beat the professionals over night without understanding the basics of forex trading. You must learn every aspect of the forex arena BEFORE you start applying any trading software. The best traders never stop learning.

Note: For a quick introduction of the forex world visit the forex education category. In addition, here is a good free e-book with all the basics you MUST know (just click on the green link at the middle of the page for the free PDF file).

#2 - Trading System: There are a lot of decent forex trading systems out there. A good system includes rules for entry, exit, stop loss (risk management) and money management. You can either buy one that somebody else developed and tested or create one by yourself through a process of trial and error. It does not matter which system you use as long as you tested it with a demo account and decided that it works for you. Happy customers of Forex Killer are using the software TOGETHER with their trusted and proven trading system.

Note: Here is a good place to start the "doing-it-right" process: The Proven Formula of all Highly Profitable Traders.

#3 - Discipline: Winning traders have the discipline to stick with their proven strategy no matter what. There is no use of purchasing Forex Killer if you cannot follow your own rules. Be honest with yourself - Are you disciplined enough to trade your strategy? Do not underestimate this question. The truth is, being a disciplined trader is one of the hardest things you will ever face and the biggest obstacle for successful trading.

Note: As you will find out at The Subtle Trap of Trading there are no short cuts when it comes to discipline. For further reading on Forex Killer, please click here.

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Forex Trading Psychology - Top Resources

noreply@blogger.com (Article Stream) — Sun, 11 May 2008 17:35:00 +0000

Understanding Forex Trading psychology is the key element that separates the top 5% elite traders from the rest 95% losers.

Not surprisingly, the psychological aspects of forex trading are often underestimated or totally ignored by new traders. Learning to master your human traits that sabotaging your decision making is a hard and tedious process. Only traders that survive the painful trial and error journey will make it in the forex market. These are the "chosen" 5% of profitable traders out there.

Following are some top quality tools that can make the difference for you. They are not free but certainly worth their weight in gold. Having them will probably save you lot of money, time and frustration. If you DO get one or more of these tools, it is highly recommended to go through it thoroughly prior to trading with real money. It is also recommended to re-read the material periodically in order to ensure you are on the right course.

Forex Psychology #1: "The Subtle Trap of Trading"

This exceptional guide by Brian McAboy was written for smart people who cannot see the subtle trap that causes them to fail with their trading. This book will help you to:
1. Understand the reasons you are locked into the wrong mindset.
2. Know the key elements for successful trading.
3. Avoid crucial mistakes that KILL most newbies trading accounts.
4. Build a stable, long lasting Forex business.

Visit The Subtle Trap of Trading for more information and purchase details.

Forex Psychology #2: "The Proven Formula of all highly Profitable Traders"

This $7 report by Brain McAboy is a must read for every trader who considers forex as a source of income. As you already know, the top traders over the years have something in common. They approach trading differently than the "stupid" losing herd (no offense...). This report reveals the proven formula of these successful traders. It goes down to the basics of trading and assists you to build the foundation of your Forex business. The price of $7 is kind of a challenge - Are you serious enough about becoming a profitable trader? If so, you probably understand that in this ridiculous price the risk/reward ratio is by far in your favor.

For purchase details please click HERE.

Forex Trading - Why Most Forex Traders Lose Money?

noreply@blogger.com (Article Stream) — Fri, 09 May 2008 11:15:00 +0000

By A.J Abrams for Currency Trading Articles

Trading Psychology? Don't nag me, I want to make money here!

Forex trading is quickly becoming an attractive business opportunity. Thousands of traders all over the world are tempted by the thought of making piles of money from the comfort of their home. It is just too easy to start trading forex nowadays. All you need is a PC, internet connection and a little amount of spare money. Any forex broker will give you a state-of-the-art trading platform, free charting package and basic forex education. Anyone can do THAT. But if you are smart enough, here are a few quick questions for you:

Don't you feel something is missing here?

Have you ever asked yourself WHY 95% of retail forex traders lose money? And if so, WHO are the true winners in the forex arena?

Are the big dogs in the forex industry doing it to the "stupid" herd again, just like the tobacco industry did not long ago?

Well, your instincts are right. Once again, someone is not telling you the truth: "There is no easy money in forex trading. Period". In addition, if you are a typical newbie, your chances to be a forex money maker are virtually zero in the long run. The forex industry knows that. They know that free chart packages, numerous indicators and free technical and fundamental analysis courses will not turn you into a profitable trader. Actually, most forex brokers count on it and exploit it for their own good. They know that even above average, smart people are missing the most important thing which is a prerequisite for any successful trading career. So here are two more questions:

In a market with a daily transaction volume of a few trillion dollars, someone has to make money, right? It goes without saying.

So if most forex traders lose money throughout their short careers, what makes the "blessed" few who survive and trade for a living so special? What is the "secret" ingredient most traders miss?

Here is the answer in short: most traders, being human, have fundamental human traits. Every human has these traits. It is in our nature. Part of our D.N.A code. I am talking about traits such as fear, greed and hate of loss. I can name a few more but the important thing is that these traits all have something in common - they have a DESTRUCTIVE effect on your trading. In fact, they are a success KILLERS. If you are "infected", and you probably are because you are human, no trading system or set of fancy indicators will help you. If you have some trading experience and you are currently losing money, you know what I am talking about.

Trading Psychology - What separates the men from the boys

The real "holy grail" of trading is mastering yourself. Controlling Your own human traits. Winning traders are very disciplined and self controlled. They know how to cope with losses. They remain focused and objective no matter what. They trade without the fear of loss and they know how to overcome greed. And the traits of winning traders have not changed for decades. Winner traders are those who fine-tuned their trading psychology over the years and did not quit after a few losses. This small group of traders achieved what the vast majority of traders will never learn. It is a hard process, much harder than learning technical analysis, reading charts or understanding the news. It is so hard because it is about controlling our most basic human traits.

Conclusion - Focus on Trading Psychology just like you focus on Trading itself

There are no short cuts in trading, just like there are no short cuts in practicing law, playing professional basketball or orchestrating an orchestra. But if you prepare to do what it takes, you will be rewarded. The winning 5% of the forex traders are a living proof to the power of trading psychology.

For further reading and additional insights on forex trading psychology visit The Subtle Trap of Trading.

Currency Trading - 3 Reasons Why You Should Trade With Stop Loss

noreply@blogger.com (Article Stream) — Mon, 05 May 2008 16:15:00 +0000

Ben Lipski for Currency Trading Articles
A stop loss order is a common order used by experienced forex traders to limit their risk. Simply put, by setting up a stop loss order, the trader actually define in advanced the amount of pips and money he is willing to lose per position. For example, if a trader goes long on the EUR/USD pair at 1.5500 trading 1 regular lot (i.e, $100,000) and sets up a stop loss order at 1.5450 it means that the trader risks 50 pips equal to $500. If the stop loss is hit at 1.5450 the trader will lose the above amount.

Many newbie forex traders trade without a stop loss order. Others set up stop loss but when it is close to be hit they tend to move the order (increasing their potential risk) or just cancel it. If I have to mention only one single thing I learned in the course of my active trading experience, here it is: Never enter a trade without stop loss order. If you do enter a trade without stop loss order - you WILL fail in the long run.

There are 3 major reasons why you should always use a stop loss order when trading forex:

1. DISCIPLINE: Discipline is a key to success in the forex arena. Assuming that you use a proven trading strategy (otherwise you are not in the right business...), this strategy MUST include stop loss rules. Once you do not use stop loss you break the rules of your own strategy which is typical to the losing 95 percent of the herd. As discipline is 90% of the forex game, you cannot win the game if you do not possess it. Successful traders, the top 5 percent, always use stop loss.

2. MONEY MANAGEMENT: Another major key of success. If you have a good money management (and you should), it means that you risk no more than 1 to 3 percent of your trading capital on each trade. As mentioned above, your risk is determined by the position of your stop loss order. If you do not use stop loss, it means that your risk is virtually unlimited. Without a stop loss, nothing stops your trade from going against you until you receives a margin call. For those of you who do not know, in the forex market a margin call means - "Game Over".

3. RISK MANAGEMENT: Maybe THE key element of currency trading. In order to be a profitable trader in the long run, you MUST have a reasonable risk management plan. It means that your risk/reward ratio on every trade should be at least 1:1 (I prefer 1:3). For example, if the track record of your trading strategy shows that 60% of the trades are winners but you risk 20 pips for each 10 pips profit (i.e, risk/reward ratio of 2:1), after a hundred trades you will find out that you are losing money [10pipsX60- 20pipsX40 = (-200pips)]. If you trade without stop loss, it means that your risk is unlimited. Hence, your risk/reward ratio CANNOT be in your favor. Just for the seek of illustration, let's say that you have a magnificent trading system that produces winners 90 percent of the time. Now, imagine you trade without a stop loss order. So out of 10 trades let's say you have 9 winners in a row, 50 pips profit each (450 pips profit so far). But then you have this 1 out of 10 loser trade where the market goes against you. Since you traded without a stop loss, your risk is unlimited and you can easily lose more than the 450 pips you gained in the last 9 trades. One lousy trade wipes out 9 successful trades. Bottom line: you are losing money.

New traders tend to underestimate stop loss orders. I hope you got the point by now. The truth is, there are many other factors and key elements that one should master in order to succeed as a forex trader. If you are new to currency trading, it is highly recommended that you get a proper "forex education" before you start trading with real money.

A word of CAUTION: Do not rely in this regard on the free stuff provided to you by your forex broker. It might be a good broker and decent material but remember that the interest of your broker is not always in line with your best interest. It would be more wise to invest a relatively small amount in a non biased education. I am not talking about a $5,000 forex course here. This is totally unnecessary and overrated. The following low-cost highly efficient tools are a very good start:

The Forex Power Strategy Course covers the basics of trading the forex market and gradually builds up to more and more advanced trading strategies. Toward the end of the course, the author reveals a super-strategy that has earned him consistent profits.
Forex Assassin: A forex trading system presenting unique and different approach. It contains a complete guide on how to paper trade before you activate your real account. This way you can test the system and let your confidence soar. When it comes to RISK MANAGEMENT, Forex Assassin protects your trading capital because it cuts your losses short and rides your winners - reducing the risk of losing capital.

I assure you that this small investment will save you tons of time and money. Just consider it as part of your risk management approach. You will be rewarded.

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Trading Forex From Home? - Do Not Quit Your Job Yet

noreply@blogger.com (Article Stream) — Sun, 04 May 2008 09:59:00 +0000

The following article was written exclusively for Currency Trading Articles
By Dan K.

What do you do for a living?

The world is changing. Globalization, rising of the new markets in east Europe, India, China and south America, as well as the rising of information era, created a new reality for the average employee. Unlike the previous generation, most of the western world employees no longer feel secure in their jobs. The first babyboomers, children of the post world war 2 are gradually retiring, and values such as "social security", "corporate pension" or "secure job" are gradually disappearing.

It does not matter whether you work for the big ones or for a small local business. The whole approach towards working power has changed. Massive cutbacks are everywhere. No one is immune. And one of the world biggest companies has a clear policy in this regard - your performance is constantly monitored. If at the end of the year you are at the bottom 5 percent, you are out. Fired without questions. Indeed, it might be cold out there.

An absolute truth #1:

I guess you feel this pressure too. You work hard and do your best, trying to avoid the unpleasant conversation with your boss. And if that is not enough, you sometimes feel that this race is too tedious or even useless. At the end of the day, the rich get richer but you stay behind, fighting to get another lousy raise while your boss builds his new mansion.

An absolute truth #2:

A lot has been written about the ways every employee can get himself out of the modern rat-race. Recently, along with the "globalization hype", more and more people discover currency trading, a.k.a Forex (stands for "foreign exchange"), as a way out. Basic knowledge, a decent PC and a small initial investment is all it takes to make killer profits and quit your day job, right? The truth is, you cannot get more wrong than that. Lots of dreamers trade in the forex market only to lose their money to a small group of elite professional traders. Those dreamers often have a boring day job and a dream to become their own boss, work from home and have a financial freedom. However, most of them have a "get-rich-quick" approach and therefore they fail in 9 out of 10 cases.

An absolute truth #3:

It is possible to make money from forex trading. But first, you MUST abandon the "get-rich-quick" approach. Additionally, unless you have been working as a forex expert for a major investment bank for the last ten years, do NOT quit your job yet. Why? because the right way to enter the world of forex trading is step by step, with a good money management and without risking funds you cannot afford to lose. You need your day job to pay the bills and help you build a stream of residual income. Some former employees did it patiently, acquired knowledge and forex trading experience along the way, and gradually the residual forex income became their primary source of income. We are talking big money here. So playing it safe and wise while keeping your day job at early stages is the golden key to freedom.

How can anyone trade forex and keep a day job anyway?

Right. You cannot be a day trader if you keep your 9 to 5 job. The good news is that forex day trading is for professionals traders and especially NOT for you (at least at this stage). What you need is a system that requires a few minutes or so every day to set up, whether before you go to work or at the end of the day. Some veteran forex traders have spotted this specific need and developed powerful trading systems that enables you to do exactly that - to trade forex successfully without leaving your job.

These systems are not free, but the return on investment is literally immediate. Considering the cost of these systems (approx. between $50-$150), the risk/reward ratio is by far in your favor. If you prefer to rely on that forex course/e-book your broker gives for free, you are at risk to lose a LOT more than the cost of a decent system. Guaranteed. Remember - like everything else in life, proper education, preparation and some sort of investment are prerequisite for any financial success.

Following is a list of forex systems designed especially for traders who have a day job and cannot dedicate to trading more than a few minutes per day:

Forex Assasin: This forex trading system presents a unique and different approach. It contains a complete guide on how to paper trade before you activate your real account. This way you can test the system and let your confidence soar. When it comes to RISK MANAGEMENT, Forex Assassin protects your trading capital because it cuts your losses short and rides your winners - reducing the risk of losing capital.
10 Minute Forex Wealth Builder: A great new system that requires 10 minutes of your time every day. This is a good solution for newbies who want to trade forex but cannot afford to quit their job.
Forex Trading Machine: This e-book became a best seller. It presents a price driven approach for trading forex, which means that no technical analysis is involved. You also get all the basics you need to know in order to implement the system successfully. The main strategy presented in Forex Trading Machine is the "Cash Cow" strategy which requires you to dedicate a few minutes at the end of each day.

You do not have to buy more than one system. Read carefully the official sites of these systems and chose the one who best fits you. As a starting point, each one of the above systems provides you with better tools than the expensive forex "guru" courses out there. If you stick to the rules and trade with discipline, you will be one huge step ahead of the herd.

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