Effective Forex Training

It's important to succeed at Forex trading, is it not? So, what's it like when you imagine quickly and painlessly trading the Forex successfully?

Then, just imagine how great you'll feel when you can quickly and easily spot the market conditions and setups that will lead to successful and profitable trades.

It's easy to do for traders who use proven methods , tested Forex trading strategies, and most importantly good coaching and training. After all, winning is what proven coaching and Forex training does for you.

The role of the truly effective trading coach is to create the right conditions for learning to happen, and to continually motivate their students. Most Forex traders are already highly motivated and therefore the task is to maintain that motivation and to generate excitement and enthusiasm.

The roles that an effective trainer/coach undertake are many and varied. At some stage they will be your: instructor, assessor, friend, mentor, facilitator, demonstrator, advisor, supporter, fact finder, motivator, counselor, organizer, planner and the fountain of all knowledge - so it's important to find a good one.

With the thousands of different Forex training courses available, how do you know who's got one that works? There are many to choose from, all making the same claims. Plus, Forex training is notorious for being filled with charlatans out there selling their get-rich-quick snake-oil.

The reality is that not everyone can make thousands of dollars overnight. If you could, we would all just buy the latest "Miracle Money System" DVD set for $500 and quit our jobs tomorrow. Yeah right!

The problem with being new to the Forex is that you don't know who to trust. So let me show you seven "must haves" to get a real, genuine education in Forex.

You should get, as a minimum:

One - 24/7 Access to online training materials - professional videos, recorded live trading sessions etc. It's important to be able to have access to them on your own time, and at your own pace. Plus, it's nice to review things when you're trading.

Two - A comprehensive written manual - some people learn better by reading than watching videos and nothing can substitute for well written teaching materials.

Three - Look for courses that offer live interactive sessions that let you look over the shoulder of a professional trader in real-time. These should be offered at least monthly but weekly or daily is even better.

Four - You want live monthly extended day-long online classes that allow you to review, all the information you received, get updates on the current market, and learn what's working now.

Six - One-on-one mentoring (this one should probably be #1) to give you specific actionable trading advice. Encourage you to make progress and correct bad trading habits or techniques. This is the big one! Nothing works better than personalized coaching.

Seven - The live onsite option - Look for courses that offer periodic onsite training opportunities. An in-person seminar has its own dynamic and its own unique learning opportunities that you miss in ebooks, videos, or email and telephone mentoring.

Look for those seven features in a Forex training course that is offered by a successful professional trainer, with proven abilities to teach. After all, just because someone's a great trader does not mean they can teach. Michael Jordan was a legendary basketball player, but openly admits he can't coach.

Remember, success comes with commitment and action "period".

Forex Swing Trading

Forex swing trading is easy to learn and apply and is an ideal method for novice traders to make money with – let’s look at the advantages.

Essentially you have 3 time frames you can target trends in and they are:

Forex day trading, swing trading and long term trend following and forex swing trading is the easiest for novice traders - so lets compare these 3 methods and see why.

1. Day Trading

More novice traders try this method than any other - but it doesn’t work at all!

All short term volatility is random, you can’t get the odds on your side and you can’t win – PERIOD.

For those of you who are still are thinking about it – try and find a track record that has made real profits (not simulated or hypothetical) and you won’t find one.

It’s a loser’s game, so don’t try it.

2. Forex Trend Following

This will give you the best profit potential if you can lock into the long term trends and hold them.

This looks a lot easier than it really is and requires tremendous discipline and discipline is a hard skill to learn.

1. You need to be patient.

You need to wait for the right opportunities and it requires discipline, to sit for weeks or months on end waiting for them.

Most traders want to be in trading and trend following simply only suits patient traders and most are not.

2. You need discipline to accept big gains!

This may sound easy as we all, want to make big gains but sitting on a big open gain while volatility eats into your gains is anything but and most novices snatch profits early – trend following is simply hard - sure you can learn it, but if you’re a novice trader swing trading is a great place to start here’s why:

3. Swing Trading

You can swing trade with just a few indicators and support and resistance and the advantages are:

1. It’s very simple to learn and apply. You can learn a swing trading system in a few days.

2. There are trades at least a few times a week, so for the trader who likes action they will see it quickly.

3. Trades are right or wrong quickly and the discipline and patience needed is less in this than in trend following.

Its very easy to do – you are trading for periods of 2 days to a week or so and its easy to master the mindset to do it to and while the profits maybe smaller per trade than trend following, you can make huge profits over time if you have a logical robust system.

A Basic Swing Trading System

A swing trading system is easy to build and a good one would be based upon trading into support and resistance.

You then use momentum oscillators to confirm the trade and price direction is with your trading signal and finally, always have a target no trailing stops – hit the trades, hit target and bank them.

Stop losses in association with support and resistance are obvious and finally, incorporate breakouts in your swing trading strategy for greater profit potential.

Forex swing trading is easy to learn, easy to apply and can be profitable and fun – discover it and see for yourself.

Forex Trend Following

If you want to make money in forex trading then you need to learn forex trend following and how to lock into the big trends and milk them for all there worth. The big trends last for months or even years and can offer fantastic profits, if you learn to follow them.

So how do forex trend follow correctly?

Let's start with some basics:

The big trends in currencies last a long time, because they reflect economic cycles and they last for months or years, so currency trends do too.

Forex trend following does not mean trying to day trade or scalp this is a way to lose money, as all short term volatility is random so don't try it.

How do you catch and follow forex trends? You need a robust, simple, forex trading system which is based on forex charts. Here are the basics of a system that will catch EVERY Big move.

Buy breakouts - FACT:

Most major forex trends start from new market HIGHS, so you need to buy breaks of resistance.

The more times a resistance level has been tested the more valid it is and if possible the time frames should be weeks or months apart. The more tests, in more time frames and the wider they are apart the better.

When you buy these breaks make sure price velocity is on your side.

You can find out by using some momentum indicators these are covered more fully in our other articles - but two great ones are the stochastic and RSI Indicators. If they support the break then you have a potential high odds trading signal.

The stop is then easy - right below the breakout point.

With this method you're not interested in trading for the sake of trading, you need to be patient as the big high odds trades don't come around every day and sometimes you need to wait weeks or even months for a high odds trade to present itself but they always do and when they do offer stellar profits.

Your not interested in trading for fun - your interested in trading for big gains so forget all the lows odds trades.

Once you have locked into a trend and it's underway, you need to get ready for the hard part:

Following the trend and this takes a lot of discipline.

The bigger a profit becomes the more tempted a trader is to take it or lock in profits by moving his stop. The bigger the profit becomes the bigger the temptation is to take it, that's human nature - but you must stand firm.

You are going to have to sit on open equity swings against you which eat your open equity however so long as the long term trend is intact, hold it.

Trail your stop very slowly and way outside of random volatility and accept the fact when the trend changes you are going to have to give a good chunk back - but that's ok, if you caught 70% of every major trend you would be very rich.

Forex trend following is all about having a simple system, being patient, buying valid breakouts and following breakouts with discipline - its not easy to do - but if you can do it, you will make huge gains and enjoy currency trading success.

Top-ten Mistakes Forex Traders Make

You are ready. You’ve done your homework. You have read the all right trading books, watched all the right professional trading videos and attended a few of the right live seminars presented by big-name professional traders. You’ve researched your brokers, did your trials of various electronic trading platforms, and have your trading account ready to go. It’s day one of your new career—hopefully the one that will finally send you down the road to financial freedom. Congratulations, you are now a FOREX Trader.

But the odds are against you. You know that. You’ve read the statistics and heard the critics; but you are confident you won’t be the one to fail. You have the best trading system and you have planned for every contingency you can think of. Your charts, analysis and research are up-to-the-minute and instantly ready for every market you are going to trade. It’s go time. You take a deep breath and click the mouse…your first trade is LIVE; you’re in the game.

Fast forward six months. Your account balance is lower than when you started. Sure—you had some great trades and looking back, your analysis of most of the markets you traded was correct; but where is the profit you could have had? How did this happen? How do you get back on track?

I’ll tell you how it happened—because it happened to me; more than once. It happened because the real world of trading and the textbook world of trading are two completely different things. You need to be ready for that reality or you run a very big risk of being the one who makes part of the statistics.

If you want to read the whole story of how I got to be a professional FOREX and Futures trader pick up a copy of The Art of the Trade (Wiley & Sons publishing August 2008). I think you will be surprised to learn what is really required to be successful. In fact, I bet you are downright shocked to discover what is required.

If you would rather not read another book and simply want to get down to making your fortune, then I would encourage you to at least take the next few pages very seriously. Find a way to keep the thoughts you find here at your fingertips and consider them equally or more important than all your pre-trade preparation and analysis. If you seriously want to avoid the worst that could happen; then take some advice from someone who knows.

Before we get to The Top Ten Mistakes FOREX Traders Make, I want to give you some perspective. I started my career at a time when the markets were only just beginning to see the growth and public interest that they have today. The technology you and I take for granted today hadn’t even been invented yet. It took me years to learn what I needed to learn to be successful, without any of the help you have available FOR FREE anytime you want. You need to accept one very critical thing: the most important part of lasting trading success has nothing to do with the markets. It’s all in your head. All this FREE stuff is not going to offer you an easy road.

If you are willing to consider that the human element—the way you think and how you behave—is the REAL variable to lasting trading success; then I think you will get where you want to go a lot faster and with a lot less headache. If you are ready to get serious about your personal trader psychology then please come to my twice daily FOREX training sessions. If you really want to avoid the disasters you have read about then take my advice; don’t make these mistakes.

So let’s get’s started…

MISTAKE # 10

PAPER TRADING TOO LONG

Paper trading is hypothetical trading. If you have never traded anything before, you will probably do some paper trading. The benefit of paper trading is that it will help the new trader become acquainted with the basics of interfacing with the markets. This is often a “demo” account with a broker or clearing firm that provides real-time market data but provides a hypothetical balance. You are allowed to buy and sell as much as you want, just like in a “live” or “real” account. Your hypothetical gains and losses are accrued against your hypothetical account balance over time. As time goes on, most traders find that they can gain quite a surprising amount of paper-profits in a very short period of time. These traders are now completely convinced that they can easily duplicate those hypothetical results in real time with real money. They open their real trading account and POW! Within about three to four weeks they are down usually more than 50% of their equity. This is not my opinion—this is actual fact. Ask any broker in the industry what happens to “paper-traders” who open a real account. The ratio of “paper-traders” to “winning traders” is about one in ninety.

Why does this happen?

Because there was never any real risk to the trader.

Let me illustrate by telling you a story:

I am a private pilot. I soloed on my 17th birthday. In 1979 I was an Air Force academy appointee. I have flown a T-38 Jet fighter in extreme conditions. Just knowing that, I think most people would agree that I probably have a certain amount of experience flying airplanes.

Here in the suburbs outside of Chicago there is a small airport that has a “Fighter Pilot for a Day” program. This is where you fly co-pilot with a retired military pilot in high-performance aircraft. You are allowed to fly the aircraft (with the real pilot’s hands on the controls) in an attempt to “shoot down” an “enemy” fighter; which is another co-pilot flying another airplane with HIS retired military pilot. You are awarded a “kill” if your laser guns hit your opponent. It’s like a very expensive high-stakes game of laser-tag.

I went for a day to have some fun. As it turned out, I was flying against a complete novice. Of course, I didn’t tell him I had some Air Force training. I asked my adversary what kind of training he had. He very confidently told me that he was the top scoring “ace” from his on-line club and various other national methods of playing of high-tech video games. He told me that he could “out-fly” almost anyone in the Microsoft Flight Simulator in both the F-16 Falcon and F-15 Eagle. I agreed that his credentials were very impressive and proceeded to blow him out of the sky no less than six times in 20 minutes. To start with, this novice had never flown in aerobatic conditions so he spent most of his time trying not to throw-up. He stalled and spun most of the other time. If he wasn’t flying with someone he’d be dead. In the end he had to quit early because he simply couldn’t take the physical punishment. To add insult to injury, I have never played Microsoft Flight Simulator (ever). I do the real thing. BIG DIFFERENCE between the two as you can see.

Do you see the point I’m getting at? PRETENDING to do something is never the same as actually doing it. Yes, it is helpful up to a certain point to simulate certain things but that can only take you so far. In the case of air-to-air combat, PRETENDING to be a fighter pilot will likely get you killed if you ACTUALLY go up against a trained fighter pilot. In fact, the US Army Air Corps learned this the hard way back in WWI. They sent young men into combat with oftentimes less than 10 hours of actual flying time. Imagine how fast those men were killed when they went man-to-man with Richthofen, Boelke and Immelmann. Everyone concluded flying was “dangerous” when in fact it was the lack of training that was “dangerous”

I’m not trying to impress you with my flying skills. I’m trying to impress on you that paper-trading is exactly like playing Microsoft Flight Simulator. It is pretending to be something you are not while convincing you that you know what you are doing. Paper trading hides from you the need for real skills. Paper-trading will get you killed because when you go up against real traders with real money it’s not a game anymore. If you make the wrong move you lose equity. There is no “do over” button. If you stall your F-16 in the simulator, you get another chance; stall your F-16 in combat and you die. Lose money in your paper-trading account; just sign up for another trial account. Lose money in your real account and you go home broke.

Paper-trading is a waste of time because paper-trading will never give you the real skills you need to trade. All paper-trading can do is help you learn how to use the functions of your trading platform. In fact, that is a good thing. But once you learn the functions of your platform and your account is ready to trade, everything you learned paper-trading goes out the window because NOW IT IS DO OR DIE. There are no second chances.

Don’t make mistake #1; don’t think you know what you are doing because you pretended to trade without taking any real risk.

HOW TO MAKE THIS MISTAKE WORSE: Continue paper-trading for more than 30 days and/or go back to paper-trading if you have lost money in your first real account.

SOLUTION: Open the absolute smallest account your broker will allow and trade for 90 days the absolute smallest size possible. If you are ahead, increase your equity size and your trade size by a factor of 20%. If you are losing, stay with the real thing; it’s the only way to learn.

MISTAKE # 9

NOT HAVING A TRADING PLAN

Suppose you called your 401K manager this afternoon. Suppose you asked him “What is your plan for the next six months?” Suppose he told you “Oh—whatever. I just try to get on the right side and if I don’t I just get out”

How long would that guy be managing your retirement money if you had any say in the matter?

Many traders take the same attitude with their daily work habit and many don’t even know they do it. Not having a clear and concise plan for your daily trading presence is a serious mistake and you need to address it. The best way to describe a sound plan is to let you read one from a professional full-time trader. This is an actual trade plan form a friend of mine who is an E-mini trader:

2006 Trading Plan

My goal is to earn 100% on my trading equity before the end of the year. To maintain my focus I will set a near term goal every quarter to be at a 25% gain and I will plot my equity daily. If I reach my quarterly goal ahead of the last trading day of the quarter I will take a two-day break. I will hold any open positions that are at a profit but any open trade losses I will close at that point before I take a break.

If my open trade gains continue into the new quarter I will add to those winning positions by a factor of 25%. I will move my protective stops up to reduce my exposure on the entire position.

If I am behind on my trade goal for the quarter, I will take a five-day break. I will re-evaluate my trade system and ask the question: “Has my market quality changed to something my system is not able to perform at best?”

During the year I will not trade more than three markets. I have learned I cannot focus well on more than three markets at a time.

If I have more than four losing trades in a row in any of my three markets I will take a trading break for five days. Again, I will leave open position winners alone in the other markets but close all losing positions. I will again roll protective stops to reduce my risk.

When I take a trading break, I will enter resting limit orders in the open trade winners to take the objective profit should I be unavailable and the market gets to those levels during my break.

If I am ahead of my plan for the year at any point I will take a break. I will take 30% of the new equity out of my account and place that into a secure place. If I am behind I will not add equity under any circumstances. If I reach a 40% drawdown from my high equity I will quit for the year.

I will record my daily trade activity in my trading log and review this weekly. I will know my ratios and results; I will look to improve them by 5% each week.

I will trade only from the bull side because my analysis tells me that all three of the markets I have selected have more than a year of solid bullish fundamentals. I will learn how to use options this year because I see from last year I could have protected more trades if I had a solid grasp of when to use options and when not to. I will invest two-hours a week on option knowledge.

My son is leaving for Europe in May. I will not trade the week before he leaves or the week after. I plan to join him in the fall for Oktoberfest for one week and will not trade the three days before I leave or when I get back. I know I suffer from jet-lag so the week after I am back I am not at my best. I have blocked out these times on my trade calendar so I will not be tempted to trade anyway.

If you read between the lines you will notice that his trade plan included all the things that were in his control—NOT things outside of his control; like the markets. If you want to get serious about writing a solid trading plan pick up a copy of my first book Trading Rules That Work: the 28 essential lessons every trader must master (Wiley & Sons Publishing, October 2006). I also teach about trading plans in my daily broadcasts and in my Psychology of Trading course. Please see my website for details.

HOW TO MAKE THIS MISTAKE WORSE: Base your trading plan on hypothetical profits or on how well you did paper-trading, Ignore your personal emotional needs when compiling a plan, Ignore your family while making a plan, keep thinking you can trade everyday or all the time, average your potential over a period of time and think results will equal a daily amount.

SOLUTION: Ask a professional trader to show you his daily/weekly/monthly or annual trading plan. Ask yourself if you can make a plan that addresses similar things. If the professional you have selected can’t show you or won’t show you his plan then ignore what he has to say. If he isn’t using a plan then he is likely unable to assist you in building wealth. There are resources for writing trade plans on my site; please use them.

MISTAKE # 8

TRADING TOO LARGE FOR YOUR ACCOUNT

The fastest way to go broke is to bet it all—all the time. Most traders don’t learn this lesson until they have had at least one blow-out; by that I mean they have lost all their equity quickly and have had to start over.

For some reason, there is a tendency for traders of all age and experience levels to trade too large for the actual cash in their account. This is a symptom of a larger problem and unless you are willing to consider that you personally might have this problem already you most likely will be trading too large for your account right now today.

What is this larger problem?

GREED, BABY—GREED

It is unrealistic for you to believe you are going to make a killing on THIS ONE TRADE RIGHT NOW. Sure, you might be on the right side of a large move but that will take time and evidence to see. For this moment, any trade you have on has the potential to run the other way against you and if you are trading too large, your potential to lose a lot on only a few trades is huge. No matter your age, education, skill or experience level you are not going to make 100% winning trades. Therefore a certain percentage of your trades will simply not work. Those trades cannot be so large that you lose a significant portion of your equity in the process.

To beat the greed habit you need to make a few changes to both your equity management and more importantly to your thinking.

First, trading is a business. You need to treat it like one. There are certain things every business needs to run effectively and the first thing is liquidity. Simply put, if you run out of cash to play you can’t remain open.

Second, if you had a reasonable plan in place already then it is a good guess that your plan calls for only a reasonable amount of percent gain on your equity regularly. If you were to use some basic mathematics while creating a sound trading approach one of the things you would be looking for was a realistic “risk-to-reward” ratio. That means for every dollar you lose you expect to make a certain number of dollars and out of every 100 trades a certain percent will be winners and some will be losers.

If you put this all together and asked the “what-if?” questions you get this base-line number that statistically will be a winning set of results:

42% winning trades out of 100 taken

Two dollars out for every dollar you give back

This is not my opinion, this is the Probability of Ruin Matrix and you can research it yourself if you have time. Of course, if you have higher percentages of winners and take more out on those winners you make money a lot faster but the point is if your results are at least this good consistently you are on your way to success. I teach more about that in Trading Rules that Work and in my Psychology of Trading course.

It’s great to be on the high side of the matrix but most of us didn’t start there and that is why you have to TRADE SMALL at first. To protect yourself from being greedy about your trading and to help you stay focused on long-term success it is important to make your trade size small enough so that it won’t leave you in a position of not being able to play at all should you have a string of losses all at once. I found that limiting your risk/reward ratio to a factor of about 1.5% on any one trade is a great way to stay focused and not get greedy.

This means that for any one trade you take, no matter how you think of the trade or how certain you are of a win; you will not risk more than 1.5% of your account balance at any one time. This means that if you are trading so that your average loss is 3-5% of your account balance at any one time—you are trading TWO to THREE TIMES TOO LARGE for your account size. In that case, the Probability of Ruin Matrix will work against you and you will likely run out of capital before you make money with your approach.

If you are the greedy trader right now and you are guilty of making this mistake; If this means you have to drop your trading size down a few notches then you had better call your broker today and fix it—because if you don’t you are an accident waiting to happen. It only takes making this mistake THREE TIMES IN A ROW to drop your account balance 15% or more in a heartbeat; especially if you are day trading!

HOW TO MAKE THIS MISTAKE WORSE: Convince yourself you are so good at trading that this couldn’t possibly happen to you, convince yourself that your analysis is good enough to help you find 80-90% winning trades all the time, trade without a stop-loss order “just this once”, double-up on the next trade after taking a large loss.

SOLUTION: Immediately reduce your account balance; take 20-30% of your cash home. Trade position sizes that are no more than 300% as valuable as your account balance. In other words, if your account size is $10,000, don’t trade anything that has a total contract value larger than around $30,000. If that means trading mini’s instead of big-board you had better do it.

---------------------------------------------------------

We hope you’ve enjoyed the first few mistakes that traders make, and that it opens up your eyes to the Forex markets a little more! This is a mini version of our TOP 10, which we like to spread around for your overall knowledgebase, and to show you the quality you get with the Forex Brotherhood. Once you become a member with us, you get the rest of this guide, two daily live webinars/broadcasts, two daily hot reports, an automatic EA, a VIP forum to mingle at, and obviously a learning curve that will be shortened 10 fold with our curriculum and premiums.

Please consider me a friend in the business. I have many products and services available to you that have been created from my hard-won experience. They are all designed to help you do two things: Stay focused on what really matters when trading FOREX and stop making costly mistakes. I hope you will consider joining me and my online community for my twice-daily internet FOREX broadcasts.

Good luck and Good Trading

Forex Robot Revolution

More millionaires have gained their wealth from the stock market than any other one source. And now, automated currency trading programs like Forex Tracer are changing the way profits are being reaped, and those doing the reaping. A market once dominated by professionals is now gaining momentum with ordinary opportunists seeking and gaining wealth thanks to these smart robot programs. Not only are they capable of making profitable buy/sell decisions but they do what humans can't - work 24/7. As long as there is a market open somewhere, robots are trading and turning profits. So while you're making dinner, watching TV, playing golf, and even sleeping, you can be building wealth. And the trend isn't expected to stop anytime soon, if ever.

How does it work?

In plain English, computer programmers and seasoned currency traders have joined forces to write software capable of detecting peak buying and selling signals. Devoid of human emotion, and able to execute at precise moments, they rival or defeat even savvy professionals. No human intervention is required, or recommended. This is commonly referred to as "running on auto-pilot."

Sound complicated?

While the mathematical logarithms integrated into Forex Tracer are highly complex, the program itself is easy to use. No prior trading experience is needed. This is a large factor of its success. Not only are industry traders buying into it; but also are home-based business entrepreneurs, and other seekers of supplemental part-time income. Its inexpensive entry point, money back guarantee, and demo account features make an attractive package. Moreover, the upside potential is not just tens of thousands of dollars per year, but possibly hundreds of thousands. Not having to quit the day job to give this a go with a 30-60 day demo account before investing the nest egg is another sought after perk.

How much does it cost?

It varies by manufacturer with most systems listing in the $300 range. Forex Tracer at the time of this writing is offering a promotional price of $97. The recommended strategy is to run the test environment 30 days to see results prior to investing real dollars. Once the user is familiar with expectations, go the next 30 days with a live account. Accounts can be opened with as little as $500. With this approach, both demo account and live account results are realized within the 60 day return window offered by Forex Tracer.

Is it foolproof?

Demos will illustrate that while some trades will be negative; they are generally small losses with the majority of trades being positive and larger gainers. Thus the net is a gain. Running in the test environment will demonstrate this.

Where can I get more information?

The link below will provide additional information, including a compelling YouTube video capturing actual trading results from an experienced independent trader and tester.

Best Forex Expert Advisor

To find the best Forex expert advisor is indeed a daunting task as there is a vast amount of options available on the market these days. A Forex expert advisor is a sophisticated tool designed for the Metatrader trading platform which helps you make more intelligent and informed trading decisions in the market, and they can also completely automate your Trading if you wish. You can download the software's for free from some websites, while other programs that have been thoroughly tested and proven, require you to pay a certain sum to seek the services of their so called "Forex Robots".

Not all expert advisor are the same and they all contain unique features and benefits, depending on their trading plan and strategy. Some EA's are very simple and could've been designed by anyone who has a basic understanding of Forex Trading, while others are remarkably complex and require immense experience and knowledge within the Forex Market. This is why you will see some Expert Advisors out there that are priced a little bit higher than others; it also depends on how the EA has performed in Live market Conditions and if it can offer regular updates, however with that being said a good Forex expert Advisor can range from anywhere between $100-$400.

Recently expert advisors have gained immense popularity amongst the Forex Trading community, and I believe this can mainly be attributed to their exceptional benefits, which easily outweigh their costs. After purchasing a Forex expert advisor for a small payment its benefits are endless, they can help you make a ton of money off the Forex Market and also organize your time more efficiently, as they can be completely automated, meaning you don't have to sit infornt of your computer and monitor the market all day long. The money you invest on these systems can be made back within minutes as just one winning trade will probably lead you to get your money back and after that it is all profits (if you stick to proper money management techniques). Traders that are just learning the ropes of how the market works are easily attracted by expert advisors as they can help them make some money while they are still learning the ins and outs of the market. However I strongly recommend that you have a firm grasp of Technical analysis and how the Forex Market Operates before you purchase any expert advisor and risk your own money on Live Markets, this is just to make sure you know exactly what your doing and how the Forex EA functions.

Now before you go out and part with Your Hard Earned Money here a few key principles to consider when looking for The Best Forex Expert Advisor:

- Firstly always make sure that the seller of the EA is fully legitimate, there are a lot of scammers out there and you don't want to fall prey to these vultures. The best way to see if the site is legit is to look for an email contact, most likely if there is no email contact then the site is a scam and should be avoided.

- Look for a trading system that suits your trading personality and personal requirements. You may want an aggressive strategy with a moderate level of risk involved or you may want to trade with a conservative strategy with minimal drawdown. It is entirely up to you so make sure you do your research and look around to make comparisons of different systems to see which one is best suited for you and your situation.

- Always look for Forward Test Statements, or better yet Live Forward test statements. Live forward test are conducted on real money accounts in real time and are the closest things to letting you know how the EA will perform in actual live market conditions. Forward Test statements will easily let you know the profitability of a certain EA and are the most important things to look for when purchasing an expert advisor; do not buy an EA that doesn't provide Forward Test Statements.

- Lastly I believe it is absolutely essential that the seller of the EA is the creator of the EA and offers regular ongoing after sales support about his product. Ideally the site should contain some sort of a Forum, Live chat support or email support. By offering after sales support it lets you know that the seller is dedicated to making his system work for himself and others and is serious about helping people make money off the Forex Market. It also lets you know that you are in good hands as you will receive regular updates and will have prompt answers to your inquires if you shall encounter any problems.

Therefore if you adhere to the guidelines above then they will certainly help you when choosing a profitable Forex expert advisor and you should be able to give any expert advisor a through examination before you make any final decisions.

Best Forex Trading Indicators

What are the best forex trading indicators and how do you use them to make your forex trading strategy succeed? Here we will look at how to do just that.

Firstly, there is no such thing as a best forex trading indicator on its own, as no indicator works all of the time however if you combine the right Forex trading indicators you can build a robust forex trading strategy and seek currency trading success.

Here we are going to give you a subjective view, of the best forex indicators and how to combine them for success.

When trading forex markets, we always like to use simple bar charts and see support and resistance as the initial paint on the canvas. We can see support and resistance and the direction of the market clearly and then decide with our indicators areas of value to buy and sell.


Here are some indicators we have been applying for 25 years and have made money with and the some advantages we think they give to any trader.

Simple Moving Averages

We all know prices come back to an average and we find the most useful the 40 day MA, for defining the biog long term trends and in strong trending markets, we like to buy or sell back to the 20 day MA, to enter fresh positions in the direction of the trend.

Bollinger Bands

Gives you the volatility of the market and they are a great help in determining the standard deviation of the market from the norm. This of course gives you clues to overbought and oversold scenarios, entry points and targets.

Anyone who trades forex, needs to be aware of volatility and standard deviation, so make it part of your essential forex education and use Bollinger Bands.

While you can see trends support and resistance and volatility, this is just setting up areas to trade now you need to do market timing. You should never predict a move, you should always confirm it with momentum indicators to get better market timing.

Here are two great forex trading indicators to do this.

Relative Strength Index

A great indicator you can use it to time entries if the RSI is in your favour and strong, in existing trends - or when it diverges from trends ( particularly when its over bought or over sold) to enter contrary trades.

Stochastic

We love the RSI - But our ultimate indicator to trigger trades is the stochastic; it's simple and very effective. We always use crossovers to confirm any move we are looking at. In contrary trades we love stochastic crosses with bullish or bearish divergence ( from over bought or oversold areas) against the prevailing trend.

A Great Toolbox Of Indicators for Any Forex Trader

So there you have our best forex trading indicators and they can be used for trend followers, contrary trading or swing trading. We can't give you every advantage of them here but look them all up and study them and you can blend them, into a powerful forex trading strategy for profit.

Best Forex Training Programs

It has been statistically proven that only about 5% of Forex traders actually maintain consistently profitably results. Although there are other factors involved experts agree that the main culprit for this is a lack of education and knowledge of the Forex market. Nothing can guarantee your success, but choosing the best Forex training program or Forex trading course will definitely put the odds in your favor.

There are many programs available, but not every one of them suits the needs of every trader. Below are some important aspects to consider when searching for the best Forex training program.

One of the first indicators of a good program is the content. Many programs and courses spend most of the time going over the basics, and although they are important, just learning the basics isn't going to allow the student to create consistent results in the long run.

The best Forex training program will cover much more in depth subjects like technical and fundamental analysis and the three pillars of Forex trading. Lets take a brief glance at these.

Technical and fundamental analysis are the two main approaches adopted by all successful Forex traders. Technical analysis attempts to forecast future price movements by examining past market data while fundamental analysis studies the core underlying elements that influence the economy of a particular entity.

Now lets look at the three pillars. If a course does not mention these then it is definitely not the best Forex training program.

1) Money management.

Many successful traders consider this to be the single most important factor of trading. It helps to increase profits while at the same time limit your losses.

2) Forex trading system development.

If you want to have consistent profitable results it is a necessity to have a good system in place. If you ever second guess your system then it is not the right system for you and you need to move on and try something different.

3) Trading psychology.

Being aware and knowing how to handle the psychological barriers that affect every trader decision will put the odds in your favor.

Other important aspects to keep an eye out for on your search for the best Forex training program should include: Developing habits for success (such as discipline patience, taking responsibility of every action, commitment, etc.,) understanding and taking your trading as a business, risk and trade management.

Trading the Forex market is no easy task. It requires a lot of hard work. . Just remember to take your time and find the program that will give you all the tools to ensure your success as a Forex trader.