The claims make by these systems is you are going to get a track record of gains which would make the true trading greats like Warren buffet, look average and all you pay is a couple of hundred dollars or less – it seems to good to true and it is.

These systems never present a track record of gains which have been verified by an independent source; you just get figures from the vendor or a meaningless, back tests across back data, knowing the closing prices ( not exactly hard!) and that doesn’t inspire confidence.

The fact is when you look behind the clever copy, catchy names and look at the systems trading algorithim, you see systems which have been made to fit past data in simulations and money management suffers as result. The systems soon get taught some respect by the markets and the trader, who was naïve to believe he would get the track record of a super trader, for a few hundred dollars ends up with a loss.

It’s a nice fantasy, doubling your money each month, while your robot works for you, as you have a beer, sleep or take the dog for a walk – but if Forex trading was a simple as these systems would lead you to believe, 95% of Forex traders wouldn’t lose money.

If you want to make money in any business in life, you need to do the basics and learn skills and Forex trading is the same but if you do make the effort and you have a desire to succeed, you can make a lot of money. So get yourself a decent Forex education and do your homework, you will be well rewarded for your efforts.

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A person may question him/herself why they would be interested to trade online with FOREX. There are just two simple reasons one is that FOREX trading makes a great deal of profit. The other reason is that the traders desire a great deal of secured position by eliminating risks of trading that comes from the movement of the foreign exchange rate.

FOREX is digital, unlike the average exchanges, such as the Tokyo Exchange and Wall Street, which are both digital foreign exchange system. With the rate of currencies changing so rapidly, traders have to be able to react to those changes within seconds. FOREX online allows them to get rid of the need of a stock broker. They obtain much opportunity to make trades with an easy click of a button, as a substitute of making hundreds of telephone calls back and forth to make trades.

For those in the industry, the ease of trading grasps a definite appeal. These traders get all the facts they need for victorious FOREX trading online. The charges for the exchange are reorganized consistently at many websites. They can purchase a currency when the rates are lesser and sells it when it gets higher. There will definitely be losses, but in spite of the gamble, there are tons of people who take part in FOREX trading are joining daily.

Being updated, the traders are competent to stay away from losses whenever trading currencies. They will be obliged to learn which countries are going through a slump and the ones that are facing economic growth. It is also crucial that the trader bears in mind that it is much better to invest their money that evidently grows economically. While FOEX trading is not suitable for all people, it can be exceptionally worthwhile for those who use familiarity and skill when making trades

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Forex, or foreign exchange, trading is the buying and selling of currencies through dealers or brokers. Currencies are traded in pairs.

This market attracts a lot of traders because of its many benefits. A new trader can join the market with a little start-up trading capital on his account and still turn up some decent profits. Forex trading also offers leverage, which enables a small player to fare relatively well in the market.

Also, forex trading is extremely flexible. A part-time trader can do business when he wants to, thanks to the forex market’s 24-hour operations. In forex trading, you make no personal commitments to a company or to a boss for that matter. Forex trading offers market players the option to personally oversee transactions or, they could just choose to employ a forex robot.

Yes, a forex robot.

A forex robot is computer program that can do the trading in the stead of a human trader. The forex robot relies on trading signals and built-in trading systems that enable it to function independently. Integrated signals allow a forex robot to “decide” on the perfect time to buy or sell a currency pair, while the systems facilitate the actual trading process. These features make these robots popular with new traders who are virtually clueless about forex trading.

These powerful trading robots are gaining popularity because they literally make money for their owners. Also, because the forex market is open 24 hours a day, a person can keep trading while he is working his day job through his forex robot. Robots help their users optimize time and capital.

But the rising fame of robot utilization leads to the manufacture of substandard versions that are a total waste of precious resources. Some robot manufacturers promise get-rich-quick schemes to market their products. This should be a pitfall that new traders should be aware of. Not all trading robots are efficient. With the infestation of the robot market, finding good and efficient ones can be tough. It is important to do a lot of research before deciding on a robot to purchase.

Also, even some efficient robots can lose you your money. But when this happens, do not shut down your robot just yet. That is normal. Losing is a part of the trading world. You can never be a true trader until you have experienced the frustration of losing some money over a transaction. If the perfect robot is created, then why would the inventor even want to sell it to you?

Therefore, a serious trader must know that a robot can only be as efficient as its user will be. Forex trade, just like any other known trades, still relies on the presence of human minds.

A robot is good for something, but it can never be good for everything.

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Mathematical theories are not new and theories such as Gann, Elliot Wave and Fibonacci have been used by traders for decades and today we have the Forex robots and expert advisors which claim there complex mathematical algorithms can beat the market, so we have a lot of theories to choose from.

In our search for the best mathematical theory, let’s make a point:

Forex markets are moved by humans.

Humans by there very nature do not think logically so markets cannot move to mathematics and they did, we would all know the price in advance and there would be no market! For a theory to be mathematical it must work ALL of the time otherwise its not mathematical! No theory that claims to be mathematical works all the time and thats a fact.

So the answer is there is no way of beating the market and no hidden order that allows you to predict Forex price movement but you can win at Forex trading. You must however see the Forex market for what it really is.

The Forex markets move to probabilities, not certainties; the good news is you can spot high odds trades and by trading high odds set ups, you can become a winner in the long term. All you need to do is keep your losses small and run your profits.

Another key fact you need to keep in mind is simple systems, work best in an odds based market and the following fact proves the point.

In the last 100 years, the ratio of winners to losers has not changed and this is despite all the advances we have seen in technology in the period.

Simple systems work best, as they are more robust in the brutal, ever changing world of Forex trading than complex ones which have to many elements to break.

So get yourself a simple Forex trading system and trade the reality of price change as it happens, rather than predicting and you will get the odds on your side. You then simply need to apply your system with discipline, keep your losses small and run your profits.

Traders continue to buy into the Forex robot and Forex expert advisor myth, that claims science can beat the market but all these systems all lose money and do so quickly.

Currency trading success is open to anyone. You can learn to trade successfully, you just have to see the markets for what they really are a market of probabilities. Complex mathematics and technology enriched our lives and made them easier over the years but to assume technology can help you gain an edge and predict the markets is not based on any facts and the opposite is true, simple systems work best and always will.

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Follow the 5 points below and look for them in any trading system you intend to buy.

1. Real Track Record of Simulation

Most Forex trading systems sold, only produce simulated track records or ones that are not verified by an outside source – never trust them! Look for an independent audit, of at least two years.

2. The Presentation

The advertising copy, will tell you if the system is likely to be real or not and if you see statements like the ones below, the system is a loser.

- Double your profits each month

- Predict the markets with accuracy

- Trade with little or no drawdown

The above claims are ridiculous but many traders still believe them.

Let’s be clear, the best systems will return around a 100% per annum and no system no matter how good it is will have a drawdown of less than 20% or a duration of a few weeks. Over the long term, that’s a very healthy return and will compound up quickly – so be realistic.

3. The Rules and Logic

Need to be revealed and if there not, you will never have the confidence to trade the system so pass it by.

4. Money Management

All the simulated and made up Robot track records have no money management rules or ones based on unsound logic. This is ok going backwards when you know the closing prices but will lead to a swift equity wipe out in the real world.

5. Support and Ease of Use

Look for a program that is easy tom run and with prompt technical support, your system if you have problems with it or if it has bugs will cause you serious problems.

It’s a simple checklist- but will save you a lot of money by helping you avoid losing systems and lead you to one which can help you make big profits and enjoy long term currency trading success.

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The problem with Forex Expert Advisors is they don’t work and the name is really a contradiction in terms. Any Forex trading system that calls itself an Expert Advisor has probably been developed by someone who hasn’t traded or made any money.

But I have seen the track records they make money!

Yes they do but it’s never real or verified by an outside source.

Most of these systems simply make up a track record in hindsight, knowing all the highs and lows and that is easy; trading not knowing the closing price is the hard part.

To many traders today, think they can make money without making any effort. By paying a hundred dollars or so, to a so called expert they can get a lifetime income!

If anyone is naïve enough to believe they will win doing the above, they are going to get taught a lesson by the market.

95% of traders lose in Forex trading and only a small minority win, it’s obvious that to enter the small minority of winners, you need to make an effort.

Forget these get rich quick trading systems and focus on getting yourself a solid Forex education and you can win. Forex trading is a learned skill and success is open to anyone, you just have to make the effort to learn skills.

Forget Forex Experts and Robots that promise you riches with no effort and a small outlay, you know it’s not true! Instead, get the right Forex trading education and mindset and enjoy currency trading success.

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Following the progress of beginners using the forex robots I have decided to write a list of tips that will help them trade successfully.

#1 Understand risk management

#2 How Lot size affects risk

#3 When the Broker refers to leverage what does he really mean?

#1 Risk management.

The first rule of trading is “Don’t risk money that you cannot afford to lose” sounds simple, but people do. The next point is paper trade (use a demo account) until you are confident you have an understanding of what is happening for each trade and you are totally familiar with the settings and what they actually mean. The more you understand the better you will trade (even with a robot). The next rule you will have heard is don’t trade more that 1% of your margin per trade. That is sensible if you have a larger capital. If on the other hand you are trading with under $1000.00 that rule is not realistic. However you do not want to risk all your capital on one trade. If it goes wrong you are out of the game.

#2 How Lot Size Affects Risk.

This is not always clear to beginners, but it is the size of your transaction that depicts the size of your risk. Let me explain if you buy 1 standard lot , that is valued at 100,000 units of the base currency. To make it easier we will use the USD as the base currency, therefore you have traded USD$100,000 and you might only have $1000 as your capital. To find out the leverage you must divide the transaction value by your margin.

Example. 100000/1000 = 100, so for every dollar you have, you have risked $100.00.

If you traded a mini lot valued at $10,000 with the same margin

10,000/1000 = 10, for every dollar you have, you have risked $10

If you traded a micro Lot valued at $1000 with the same margin

1000/1000= 1, for every dollar you have , you have risked $1.00

# 3 When The Broker Refer To Leverage, What Does he Really Mean

When you first open your account the broker will offer leverage 100:1, 200:1 and sometimes 400:1.

This is not true leverage as we have already understood that the Lot size determines the risk/ leverage you use. What the brokers are saying is the minimum amount of margin you must have for each trade. 100:1 means they will require $1000 margin per $100,000 traded. 100:1 is just the % stated as a ratio.

100:1 = 1%, 200:1 = 0.5% etc.

Agreeing with the broker to have 200:1 or 0.5% as a minimum margin does not mean that each trade has to use the full amount they will offer.

Example:

$1000 margin , you can still trade only a mini lot value of $10,000 and your leverage is 10 (as above #2) The advantage of having a small margin requirement is to enable you to trade with a small starting capital. However do not risk all your capital on one trade. Also if you have more than one trade open , the risk of all open trades is added together.

Good luck trading .

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