How Much Money Do I Need to Begin Trading Forex?

By Johnny Mitch

Forex trading has become very popular and one of the main reasons is that it can easily be accessed by almost anybody due to the very low entry barriers, compared to other forms of investments.

Whilst still a beginner, instead of considering what amount you need to invest, make sure you know at least the basics of trading. This can be easily done by opening a demo account where you can practice with virtual money and do trades as if in a real life environment. Although you will learn the basics keep in mind that live trading and trading within a virtual environment is a whole different experience. The reason is that, as real money is not involved your psychology is very different and the way you think and respond to your feelings can have a great impact on the outcome of your trades.

So practice first a great deal and begin to form your private trading strategy and day by day complete more and more successful trades. It's also essential to learn the fundamentals of forex techniques to analyze fluctuations in currency prices by utilizing technical and fundamental analysis within a your demo account. It takes some time to fully comprehend the use of such tools and use them to your advantage. Only when you believe you are ready I would recommend to open a micro account. Following that, should you begin to generate profits on regular basis go ahead in opening a mini account.

Even though you can begin trading with as low as one dollar the most common minimum entry amounts are from one hundred to ten thousand dollars. There is no magic number to enter the Forex market but I always recommend beginning with a small deposit and one that does not entail very high risk in case of temporary losses. Gradually as you gain more experience and complete more and more successful trades you can increase the numbers going for larger profits and risks.

Many traders get carried away and believe they will invest a small amount and turn to be millionaires in no time but let me assure you that this is a pure misconception. Should you decide to misuse the high leverage advantage within the currency exchange you are more likely to be doomed right from the start. Newbies must realize that experts often generate less than fifteen percent per year. Investors with small deposits usually presume they are able to earn double, triple or quadruple their money within a year's trading.

You need to remember that you should avoid trading more than two to five percent of your total deposited amount in one go. Controlling your losses is what will make you a successful trader and not winning the most trades. This is the most common mistake that novice traders do and they end up losing too much too soon and quickly abandon the Forex market extremely disappointed.

Therefore to recap, first you need to acquire the basic knowledge through studying, and then make sure you practice till you gain a certain confidence of your training methods and finally gradually enter the market with a conservative investment which you will systematically build up once acquiring more experience and steadily increase your profits.

Who else wants the Secrets, Most Effective Money Making Strategies and Awesome Tips to choosing the Best Forex Robots and start making some Serious Money? Get our EXCLUSIVE INTERVIEWS with THE TOP EXPERTS for VERY LIMITED TIME FOR FREE. CLICK HERE: http://www.tiny.cc/Experts-Interviews Thank you. Johnny.

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Some Of The Benefits Of Automating Forex Trading

By Saich M Kate

When it comes to forex trading, experts use two major methods. The first one is the traditional method whereby a forex trader picks a broker, fixes trading schedules, sets funds, analyzes price variations and finally makes investments. The second method involves the use of a forex trading robot. This robot is in essence a type of software that automates the entire system of forex trading. It is able to perform tasks such as data collection, analysis and setting schedules. This method is very popular today in forex trading since it offers the following advantages:

Works 24/7
A typical forex trader works for about 8 or 12 hours a day then goes home or to other business. On the other hand, forex robots are able to function all day and night without tiring out. This means, it will not miss any great opportunities that might present them after you have left the office. In turn, you will be able to maximize your profit.

A complete automatic system
These software tools are truly automatic and do not require your assistance in anyway. The only time you will need to help them is during the set up process. Once they are up and running, you will only need to check on the progress occasionally. It is as if your forex trading will be on autopilot. You seat back, relax and watch your profits grow.

Emotional control
Unlike humans, robots do not have any feelings, unless it is in some fictional science movie. This means, they are able to make decisions based purely on logic without any emotional influence such as greed. Therefore, they are able to make the best decisions possible during trading, which work to your own good.

Suitable for repetitive actions
If you are a forex trader, you are well aware of the numerous, tedious, repetitive tasks such as data analysis, comparison and numerical computations, which you must perform every time there is an opportunity. This is plenty of hard and tiring work, and at times you can make errors because of the magnitude of the work. Forex robots are able to perform these actions swiftly, accurately and efficiently.

All Knowing
In forex trading, you must acquire sufficient and accurate knowledge of techniques and strategies if you want to optimize your profit levels. Nevertheless, if you are using these software tools, you are able to make a trading decision even with little or no knowledge since the robots make that decision for you.

We provide the best info about free forex trading robot. For further details please visit the provided link.

Article Source: http://EzineArticles.com/?expert=Saich_M_Kate

7 Secrets to Forex Successful Trading

By Larry L. Taylor

Some people are able to make a killing on the foreign exchange market. Others end up losing everything and quitting totally. If you want to find yourself in the former group, not the latter, you need to do your research. This article has seven amazing secrets which can help you find great Forex success.

1. Set Goals

The most important thing you can do is set goals. No matter what you are trying to accomplish, from losing weight to quitting smoking, goals are what keep you focused and determined. Set goals for every part of your progress, from start to finish. Reward yourself when goals are met and then set new goals to keep yourself motivated. If you continue to best those goals, you will only find success in the future.

2. Set Time Frames

As you figure out what your goals are, you need to set time frames for when they need to be reached. Short-term goals will keep you motivated from week to week, giving you standards which are easy to reach. Long-term goals will remind you of what you strive for and what the little goals will lead to. Make sure your rewards match the goals, smaller treats for short goals and big treats for long-term goals.

3. Select the Right Broker

Choosing a broker has to be done with care. Select someone who comes recommended from traders you trust. Look online for reviews to determine the quality of the broker's services. Also be sure to select a broker who offers the amount of leverage you need.

4. Open Demo-Practice Account

When you know which broker you will use, open a demo account and start practicing. As you learn how the software works, you will also be able to hone your strategies. Treat it as if it is a real account so that you are building techniques which will work with real money as well. Don't move to a money-based account until you are completely comfortable.

5. Begin With a Small Mini Account

When you are ready, start with a mini account. This allows you to trade in small sums without using leverage, which is very risky. You can build your comfort even further as you see that your strategies are beginning to work. This builds your research skills and ensures that you will be able to start trading with larger sums without any anxiety.

6. Trade With Home Currency

The best bet when beginning to trade is to start with the currency of your home country. You will know the situation locally as far as the economy is concerned, meaning you can avoid the research necessary if you were to invest in a far away currency. You will also be able to understand better how the currency compares to others, allowing you to choose pairs which offer the greatest rewards. Once you are able to master your own currency, you can move on to others around the world.

7. When Comfortable - Slowly Expand to Other Currencies

These ideas may seem like common sense, but many traders ignore them and fail as a result. Be sure to use them all as you craft your Forex strategies. You will be left with large profits, small losses and an overall income boost.

You can learn more about the Forex Trading by clicking the SUCCESSFUL FOREX TRADING Link in the resource box below.

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Important Things To Consider Before Buying Bitcoins

By Umer Waqas Mehar

When the central bank in Cyprus froze bank accounts and limited the amount of cash that could be withdrawn from bank accounts it created a huge uproar that was felt around the world. If consumers did not have access to money how could they buy and sell the things needed to carry on in our modern world? The reality is they cannot so consumers around the world started to look for safer alternatives to fiat currency. Fiat currency is currency that has no tangible value aside from what the government assigns to it.

Consumers are looking for a way to store their buying power to protect themselves from having bank accounts frozen for indefinite periods of time. Many people started trading in Bitcoins. This is a crypto-currency which means it cannot be easily counterfeited but before anyone starts buying into this new currency it would be prudent to understand the risks.

Bitcoins are not issued by any central bank or government so there is no accountability whatsoever. If you are dealing with Dollars,Euros or Pounds you have the assurance that the government behind it will honor the debt while Bitcoins do not provide any guarantees at all. The fact that no one truly knows who made this currency so there is no way of knowing whether it could be stolen right from under our eyes.

These Bitcoins are stored inside a digital wallet that can be encrypted on your computer. While this should provide a sense of security if your computer is lost your Bitcoins are gone as well. It is not like a credit card where you can get a replacement and carry on like nothing has happened.

While the security of this currency is a concern by far the biggest worry is the value of it. The perceived value of a Bitcoin can change in a moment and unlike fiat currencies that are backed by hard assets owned by a country if a Bitcoin value drops you have nothing of value at all.

There are a few exchanges around the world that sell and buy Bitcoins, but you should not buy them thinking they are going to rise in value. They are a digital commodity which some would classify as a "fad". Tomorrow it could lose all its real value and never recover.

So to recap the risks, you do not have any real security with Bitcoins since they are not provided by a government. The value if highly volatile and could be reduced to zero in a heart beat and the simple fact that the currency has only been around for a few years shows it is not proven to be reliable.

If you are looking for a way to preserve value then precious metals like gold,silver and platinum may be more beneficial since they have been used for centuries as a medium of exchange.

When it comes to investing you should never make rash decisions but weigh the risks and potential payoff and remember that there is no sure things when it comes to digital currencies like Bitcoins so approach at your own risk.

If you are interested in buying or selling Bitcoins you can visit this site https://mtgox.com/ which is one of the most popular exchanges for these highly sough after coins.

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High Frequency Trading Explained

By Martha Stokes, CMT

Proponents argue that High Frequency Traders provide needed liquidity while opponents raise the flag of the "little guy" aka the small lot investor or retail trader, as being harmed by HFTs. The question is whether the average investor is truly a victim of HFT activity when most investors buy mutual funds, in addition the largest mutual funds do not use the exchanges for their large lot orders and are therefore rarely impacted by intraday HFT trading on the exchanges.

The question of whether High Frequency Trading is good or bad for the financial markets is not as simple as the news would have everyone believe. The problem and any solutions are as complex as the world of HFTs, which trade across all financial markets around the world.

The roots of High Frequency Trading came from the Day Trading Floor Traders of the 80's and 90's. The market makers of that era decided to try squeezing out the growing nuisance of rogue floor traders, who broke away from their prior employers on the exchanges to trade independently with the brand new PC computer that allowed them to trade at home. These independent day traders ushered in a new era of quick in and out trades, that took advantage of the wide spreads between the ask and the bid of the fractions pricing structure of that day.

Market makers lobbied for decimal pricing structure believing that a tighter bid and ask would squeeze out the professional independent day trader and the newly minted retail day trader. These traders could see the huge lot orders of the institutional clients moving through exchanges, and would jump in ahead of the huge lot order forcing price up. This infuriated the institutions and the market makers who managed those large lot orders on behalf of the giant mutual and pension funds.

Decimal pricing replaced fractions in 2002 and did for a short period of time reduce the day trading activity, however this was only a short reprieve.

By 2005 computers had evolved to provide much faster speeds, and more sophisticated software provided algorithms and formulas that could track orders moving through the system. Without the large spreads, day trader professionals turned to faster speeds. Faster speeds meant that they could trade more frequently with even a penny or half penny spread and still make profits.

HFTs quickly caught on and the huge liquidity that these firms provided became a highly lucrative opportunity for exchanges, that had seen a steady loss of revenues as more of the smaller exchanges emerged along with more ECNs. The Dark Pools also started taking more and more of the order flow away from the exchanges. Dark Pools were a direct result of HFT trading on exchanges. Now instead of the large lot orders moving through the exchanges, large lots were being filled in Dark Pools. This caused the exchanges to lose more money.

Then also exchanges went public and as public companies, their goals and business structured changed dramatically. The NYSE and NASDAQ needed to make their shareholders happy instead of simply providing an excellent exchange trading experience for their clients. They sought out more HFTs to fill the void caused by the loss of the large lot investors, who no longer used the exchanges for their millions of shares of orders. HFT activity increased as exchanges offered these firms maker-taker rebates to provide liquidity for the exchanges.

HFT activity peaked in 2009, with an SEC confirmed 56% dominance of all orders on the stock market at that time. It has been stated in several internet sites that it was as high as 77%, but that was ALL automated orders and not just HFT order flow.

Because the HFTs offered liquidity and could trade anywhere, exchanges offered a maker-taker contract with many of the HFT firms. A maker-taker acts at times like a market maker, however the maker-taker is not required to "make a market" as a market maker is obligated by regulation and law.

A maker-taker is a rebate program designed by exchanges that pays a rebate back to the HFT whenever they provide liquidity to the exchanges. The exchanges needed the HFTs to provide liquidity because there was an unexpected negative side effect to changing from fractions to decimals.

With the tighter spreads, more and more market makers discovered they could not make sufficient profits and compete with high-speed computers. Slowly market makers on the NYSE floor disappeared leaving only a few from what had once been a busy, crowded trading floor. Across the US in every exchange and every financial market, market makers began disappearing.

The exchanges lost more liquidity as HFT dominance in the stock market rose between 2005-2009, driving giant lot institutions to Dark Pool venues known as Alternative Trading Systems ATS.

The decimals that everyone believed would make the markets more efficient had resulted in less efficient markets, a huge need for maker-takers to fill the role of the declining market makers and the ever increasing speed of transactions.

Now the argument about how to regulate and control the HFTs is gaining political popularity and once again, the financial markets face a crossroads moment. Any change to how the financial markets operate from something that seemed as simple as changing from fractions to decimals, does create reverberating impacts that can't be foreseen, projected, or even comprehended at the time.

No one in 2002 thought that decimals would give rise to a new form of high frequency day trading. No exchange in 2005 really understood how HFTs would alter not just intraday activity, but the overall volatility of the markets. No one could predict the demise of market makers who had been an anchor for the market that held it steady, stable, and strong for decades.

Solutions that have been presented are lacking in a thorough understanding and comprehension of how a small change can have massive repercussions for not only the stock market, exchanges, ATS, and every market participant but for every other financial market globally as well.

HFTs do need to be regulated but their true roles, benefits, problems, risks, and areas open to fraud must first be identified. So far none of these have been empirically documented by anyone.

Martha Stokes, CMT Chartered Market Technician and CEO of TechniTrader® The Gold Standard in Stock Market Educationhttp://technitrader.com learn "How To Invest For Consistent Success" (c)copyright 2014 Decisions Unlimited, Inc. dba TechniTrader a registered trademark.

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Day Trading - Why 98% of People Lose Money in the Markets

By Ray Plummer

Almost all people that venture into the world of Day Trading do so with grand thoughts of wealth and easy money. 99% of these people will wind up handing their hard earned money to myself and others which have figured out the game. Yes, it is a game that is extremely hard to master and has endless dead ends. It can begin to feel as if you are a mouse in a never ending maze. You can spend years running around the maze working on endless ideas and methods all of which lead to the same inevitable end.. Losing money!

You might be wondering, who is this guy writing this article? How did supposedly he, and others learn the secret to the game. I would like to claim that I have superior intelligence but that would not be true. Like Edison the inventor of the light bulb, once you have done things wrong long enough, lost enough money, and have been beaten down to the point of giving up, only then, if you can muster the fortitude will you finally begin to see through all of the hyped claims of the failed systems and unyielding methods from your past.

The plain truth is, the sooner you stop looking for the easy money the quicker you will begin to understand why and how those that do win the game take an unfair advantage over those that don’t.

Each person's first introduction into the game of trading is always because someone has been sold on the idea that trading is simple and easy if you purchase the “right system” or methodology from the guru of the hour.
These marketers are relentless at taking your money. They are system/methodology designers which understand exactly how to manipulate the various system components to fit anyone‘s taste and temperament. How many times have you been told that you simply need to find a system that fits you and your personality. This is a half truth as no system will fit you for very long if it is not consistently profitable.

Most systems being sold on the internet today clearly explain a entry set-up, but are so vague in regards to exit that they are completely useless. I can’t tell you the number of systems/methods that I have personally purchased that are nothing short of out right fraud in regards to their advertising. Most systems have been back-tested and optimized to the point that on paper they look unbelievable, but in real time they simply fall apart. It seems that people are willing, even anxious to hand over their hard earned money to anyone claiming to hold the key to easy riches.

Now that you have been warned about the fraud and false claims within the industry lets discuss one of the primary reasons that most people lose money. It is the bid/ask spread of entering and exiting the market along with the cost of commissions that stack the deck heavily against those that use methods which try to scalp small profits out of the market. These costs can easily cost you any chance of being profitable. Let me explain, if using the S&P 500 e-mini contract, the minimum tick size is .25 point or $12.50. When you enter and exit a position you will be giving up 2 ticks or $25.00 plus commissions to the spread. Lets say you are using a method in which you are trying to achieve a 2 point target or $100.00 with a limited risk of also only $100.00. Your spread give-up and commission will run you at least $30.00 per contract. This means that the position is already deep in the hole before you begin. The market will have to move and extra $30.00 before you will achieve your target. Theoretically in price movement terms, a win is worth $70.00 and a loss will cost you $130.00. You must win almost 2 times to every loss just to breakeven.

The first thing that you must realize is that there is no way around these costs. The only thing that you can do is minimize them as much as possible. The only way to do this is to only use trading methods in which the profit targets are large enough to reduce these costs to a small percentage.

Example:
$30.00 Cost and a $100 Profit Target = 30% Cost of trading.
$30.00 Cost and a $300 Profit Target= 10% Cost of trading.

All things being equal, lets say that you have discovered a method which is 60% accurate after covering the spread (a very healthy system). It has a 1 to 1 risk-to-reward ratio. (That is the risk and reward are equal.)

Winner: +$100.00 Loser: -$100

Win: 60% times $100.00 = +$60.00 less commissions of $5.00 = +$55.00 Gain
Loss: 40% times $100.00 = -$40.00 plus commissions of $5.00 = -$45.00 Loss

This very healthy and difficult to develop system will net you on average $10.00 per trade. Is it any wonder that most people fail. As the system that I am describing is much better than most available on the market today.

If you have been trading for a while, you know the saying “Let your profits run and cut your losers short”. This is the basis for many trend following systems which have profitable trades which are much larger than their losers. This is done at the expense of the win-to-loss ratio though. Meaning the larger the profitable trades the lower the percentage of winning trades. Most of these types of systems have winners in the 30% range.

An example of this type of system:

Winner: +$400 Loser: -$100

Win: 30% times $400 = +$120.00 less commissions of $5.00 = +$115.00 Gain
Loss: 70% times $100 = -70.00 plus commissions of $5.00 = -$75.00 Loss

This is another example of an extremely healthy system which will gain +$40.00 on average per trade.

The systems discussed above, are both hypothetical and would be considered top in their class and worth millions of dollars to a system buyer.

The bottom line is, do not be fooled by false claims from system designers that promote unbelievable results and then offer their products to anyone willing to pay them a few hundred dollars. If they actually had a system which performed as promoted they would not share it with anyone because within a few short years, they themselves would be extremely wealthy without any of your money.

If a systems "hypothetical" performance record seems to good to be true, it probably is. Don’t be the next person to be suckered into giving away their hard earned money.

Lets suppose that you have been really lucky and have discovered a decent system that has a positive expectancy regarding profits in the long-term. You still have a problem and it’s a big one. In the next article, I will discuss the next reason why you will inevitably fail. If you don’t understand this next road block you are just as doomed to defeat as those which still hold onto substandard systems.

The author, Ray Plummer is a long time trader and investor with over 20 years of hard knocks in the markets. Ray lives in Charlotte, NC along with his wife and two children. Ray day trades index futures contracts and position trades stocks and options. He is the developer of several private equity trading systems which are not available to the public. His only public system can be found at Collective2 a independent website which tracks the real time live performance of trading systems. A free trial to his system is available to serious traders.

It can be viewed at: http://www.collective2.com/go/onetradeaday

Article Source: http://EzineArticles.com/?expert=Ray_Plummer

An Overview of the Best Forex Tools

By Emma A John

In order to analyze the data from the stock markets and improve their performances, Forex traders make use of certain tools. These tools allow stock market traders to:

1. Identify and track of market trends and movements
2. Count the pips gained
3. Formulate better strategies according to upcoming changes etc.

The most important tool required is a dependable and convenient trading platform. Individuals ought to seek reliable brokers for trading who can offer security of funds. When it comes to finding a reliable platform people should make sure to spend some time with the different demo accounts to evaluate them.

One of the most vital tools for amateurs or beginners learning how to trade in the stock markets is the free demo Forex account. It offers a simulation practice to prepare these traders for real Forex trading. Through this account these traders become familiar with:

1. The basic information regarding the stock markets
2. Practicing their trading skills
3. Testing their trading strategies without risking their own money etc.

Those traders who need assistance with identifying the best time to buy or sell a currency pair should make use of the Forex signals tool. This tool acts as an indicator for amateurs and is ideal for those traders who have busy schedules and don't have enough time to monitor the trade trends.

When it comes to making decisions in the real world about whether to trade or invest or not, Forex traders can make use of tools like Forex charting which allows these traders to get a better understanding of currency and market trends which is summarized through graphical information. There are multiple Forex charting tools available for traders which they can select from according to their likes and requirements.

Trading can be a lonesome and intimidating activity, not only for the beginner but also for the seasoned trader working in the stock markets. The situation gets more depressing if the market worsens. This is the time when investors or traders should opt for the Support network tools created especially for Forex traders which allows them to learn through the experiences of others to gain from their guidance and support.

After all there is no harm in learning from the people who know better about the stock markets and applying their tried and tested methods to earn more benefits from the stock market. There are multiple Forex trading tools available for traders which will help them in making profitable decisions to become successful in the stock markets.

If you are looking for the best forex tools, please visit http://www.forexminute.com/. Here you will find latest Forex news, tools, analysis and trends.

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