A Beginner’s Guide: Forex Trading Systems

A Beginner’s Guide to Forex Trading Systems

Good day, everyone!

I have been earning some extra cash promoting the foreign exchange market and I got tied up with the greens and almost forgot to update this blog.  I realized that it is now the time to introduce you the forex trading systems.  Forex trading is exciting and fast-paced. It comes with so much risk, yet so much potential. Every new prospector is drawn to the adrenaline rush of speculative currency trading. It is that element of risk that makes success that much sweeter.

That same element of risk drives so many new investors to seek out the ‘ultimate trading system’. You get into Forex and you realize it is not as simple as it looked from the outside. The speed and complexity of market movements is mind-boggling. Perhaps you’ve already opened a demo account, and practiced making trades. Maybe you went ahead and opened a live account, lost an embarrassing chunk of money, and are back at square one — looking for that ‘magic bullet’. The question to ask yourself is: “Do I really need a better trading system, or do I just need a better grip on Forex?”

It may surprise you to know that the answer is: “Both.”

Why?

Quite simply, the better you understand Forex, the more likely you are to choose a trading system that fits your needs. Put another way: the less you understand Forex, the more likely you are to choose the wrong trading system!

In order to see why, let’s discuss the nature of Forex trading systems and what they’re really intended to do for you.

First, there are roughly two kinds of trading systems: ‘signal service’ systems and ‘complete’, strategic systems — and I almost hesitate to refer to ‘signal services’ as ‘trading systems’ at all. Keep reading, and you’ll see why.

Signal services are convenient tools for experienced spot traders. The primary role of a signal service is to send you ‘signals’ or ‘alerts’ about market movements as they arise, according to popular Forex indicators like the Relative Strength Index and MACD lines. Typically, these services send ‘buy/sell’ alerts (and/or general ‘movement’ alerts) to their subscribers via the subscriber’s preferred method of communication: e-mail SMS or text-message alert, etc.

What many of these services do not do, however, is provide with you with a trading strategy or ‘auto-trading’ option. In order to get that kind of service, you must go with a broker who provides a ‘complete’ trading system, and not merely a glorified signal service.

Forex Trading Tutorial: Tricks and Trades

Forex Trading Tutorial: Tricks and Trades

There are several profitable strategies available for forex traders. Most costs a fortune. Mine is free to grab. Apply them at your own risk but it seems to work for most followers. I will publish my forex trading tutorial / experience later for profits. Right now my suggestions are considered a beta version.

Scalping is a terminology used when a trader is strategizing to make small profits while exposing a trading account to minimal risk,which is due to quick open/close trading method. Using this strategy with 10-20 pips plus spread per demo trade before going live with it is the best forex trading tutorial advice. This is a simple and easy to use strategy you could apply from the start and see how it works.

Good trades are during morning trades between 9-noon London trading session and bad trades are afternoon trade(New York trading session) between 2-4 pm London time.

No news means good news for technical traders (nothing is affecting the currency). When trading using technical indicators make sure to close your open trades 10-15 minutes before news comes out, or enter into a position 10 to 15 minutes after news has been released.

The set up:
insert on your chart exponential moving average to 4,
linear moving average 10,
Modify moving average convergence and divergence indicator (10,24,7)

signal:

Buy when the exponential moving average 4 punches through the linear moving average 10 going up and,also confirm with moving average convergence and divergence indicator punching through its zero line.

Sell when the exponential moving average 4 punches through the linear moving average 10 going down,also confirm with the moving average convergence and divergence indicator going below its zero line.

Tune in to more tricks and trades in forex trading tutorial. Best yet, Forex Robot was written with scalp trading logistics in mind.  Read my previous forex trading tutorial.

Forex Trading Tutorial: Forex Robot

Forex Trading Tutorial: Forex Robot

Forex robot software is changing the way currency traders do business.  The old days of pencil and paper trades are gone.  Fortune favors those who obtain the latest tools and technologies. Today’s best forex software includes the ability to help formulate and execute your trade. Forex Robot software also imparts discipline to traders helping to avoid common trading mistakes.

There are several different strategies traders are pursuing. They can often prove complicated and requires simulations and practice. Forex software combined with the “play money” mode provided by most currency brokers enables this phase to be completed without risking a single dollar. Skeptic traders are provided demo accounts with free cash credit to start.

Emotions could have the adverse impacts when trading. Many trades can be counterintuitive requiring a very difficult mindset. That is why traders often find it beneficial to have the ability to calmly input data and then have it efficiently executed by a robot when it comes time to battle.

Traders from all over the globe match wits and skills in the forex market during many hours of the day. This enables many available trading hours, however human stamina often proves to be a significant limitation. A forex autopilot robot can run without break for food, water and has no family with which to spend time. After the one time software fee the robot essentially becomes your trading slave.

Most trading strategies are said to buy low and sell high. This seemingly obvious piece of advice is ignored by most forex traders. When a currency is low they are hesitant to buy it for fear that it might go lower. When a currency is popular and soaring it often proves hard to sell when greed insidiously comes into play. Forex software with a robot can ensure that you are both buying and selling at the times you previously ascertained would be most advantageous.

Unfortunately, many traders just log into their accounts each day and select positions on an arbitrary guess. Don’t attempt to trade against one bare handed. Having a edge in the forex game is what differentiates the profitable traders from the losers. Forex robot software has shown to give traders that edge. For more, check out forex software reviews and decide on what you see.

Forex Trading Tutorial: You or Your Broker

Forex Trading Tutorial: You vs. Your Broker

After being informed earlier in our forex trading tutorial about the other side of leverage, we would like to emphasize once again that there is no free lunch here. Leverage can be your worst enemy. A 400-1 leverage could mean that even a small move against your position could erase your account clean.

From the broker perspective, your lost is his gain. Forex firms make their own markets by deriving the bid-offfer price to their clients. They do business on the probability assumption that as most highly leveraged traders (like you) lose, then it’s good business to take the opposite position to you. This is still a speculation remains to be seen because there is no evidence to support such claims but there’s a concerned worth mentioning.

Let’s say, when a client buys Dollars against the Yen, the broker sells short the Dollar. When the client covers the position (either for a profit or loss) the broker is taken out also. If the client wins the broker loses and vice-versa. This is how the leverage game is played. Understanding how leverage works is cruicial in deciding on which broker to choose for your trading.

Usually the broker has a statistical advantage by offering high leverage trading platform.

Becareful with huge positions on a limited amount of capital because the odds of gaining even for the best and most talented traders are less.

It is important therefore to have an understanding about leverage on forex and how it works. If you want to make money currency trading, give yourself a fair chance and our forex trading tutorial advice is not to go more than 10x. What’s the hurry to make money?

You must overcome greed and impatience to become a successful forex trader. Nothing worthwhile in business or life can be achieved overnight. One of the most popular forex trading systems out there is based on very low leverage.

This forex trading tutorial neither encourages nor discourages forex trading at super high leverage. That’s a personal decision, but a decision that can only be made sensibly with a professional understanding of all the implications of leverage and what they mean to your chances of prospering at forex trading. It’s probably fair to say that unless you have a professional understanding of leverage that your chance of even surviving at forex trading is slim to none.

Forex Trading Tutorial: Videos of Two Trading Examples

Forex Trading Tutorial:  Vidoes of Two Trading Examples

Below is an example of two trades made on the Forex tool.  Some of the terms used in the video should be familiar with by reading our earlier forex trading tutorials.  The video shows and tells some very basic tool used to trade.  Most of the terms used here have been mentioned in our earlier forex trading tutorial except ‘candle-stick’.  Candle-sticks are the red and green verticles bars along the lines.

Remember that trading tools and practice are key points in the success in any business.

Enjoy!

Forex Trading Tutorial: MACD part 3

Forex Trading Tutorial:  MACD part 3

Previous two posts (forex trading tutorial) also mentioned when market price is either in bullish or bearish mode.   Now we are trying to explain the rate of MACD Histogram in relevant to MACD and MACD Signals.  Watch the video how histogram is used with MACD Divergence with price to prove that MACD Divergence is better:

Forex Trading Tutorial: MACD part 2

Forex Trading Tutorial:  MACD part 2

Earlier forex trading tutorial MACD signal Line Crossovers are the most common signals but not as reliable as this MACD part 2.  They took too long to take actions. MACD Centerline Crossovers (referred to previous forex trading tutorial) are reliable for longer term but yet they are lagging abit.  MACD Divergence with price is the most reliable signals.  The video explains exactly why divergence with price is the best.

 

Forex Trading Tutorial: MACD Indicator part 1

Forex Trading Tutorial:  MACD Indicator part 1

The video shows you what MACD is and briefly describe different components of MACD.  MACD is ‘moving averages convergence divergence’, please refer to earlier forex trading tutorial for the definitions of indicators.  The video also refers to signals for trading opportunities as well.  The term ‘bullish’ and ‘bearish’ are also defined briefly here.  We will discuss the terms in later forex trading tutorial.

 

Forex Trading Tutorial: Signals Video II

Forex Trading Tutorial News: Forex Day Trading Signals II

This forex trading tutorial is a continuation of the last video describing forex trading signals. The video gives a prediction on the weekend’s markets based on the previous numbers, for instance, “keep away from directional trade”, and the Canadian unemployment rate will affect the currency values.

Enjoy!

Forex Trading Tutorial: Forex Signals Video I

Forex Trading Tutorial:  Forex Signals Videos

Below are video illustrations of Forex Signals which emphasize some of the three topics discussed in our earlier forex trading tutorial.

Forex News: Forex Day Trading Signals I
Please review your forex trading tutorial especially the terms: pips, spread, etc.
The video shows the world’s markets such as EUR, AUD, CAD, US, and other key players who actually triggers the market fluctuations.