Tag Archives: Forex Tips

Best Forex Broker

3 Quick Tips for Choosing the Best Forex Broker

To run a forex trading business successfully, it is really important to have the best forex broker. These days, a lot of people are considering getting involved in the forex business because of the opportunity it offers for making money. But, with a good broker, trading strategies and trading system, it is hard to make any money at all. In fact, you will be losing what you have invested.

    Best Forex Brokers

  • DukasCopy: This Swiss forex broker has excellent reputation as one of the best online forex brokers.
  • Forex eToro: If you can’t afford to go for dukascopy, then you may consider eToro.

Now, when it comes to choosing a broker, here are some tips that can help you make the right decision.

Reputation
With so many brokers already making their places in the currency trading market, it is important to get hold of someone who has a good reputation. You can find a lot about the reputation of different brokers on review websites and forums. These reviews are usually posted by people who have had experience trading with certain brokers. These are unbiased and will tell you exactly what you can expect from the brokers. You will also get an idea whose services are the best and who all are fake.

Regulations
The broker you choose should be regulated. There should be regulatory authorities in his country that monitors their activities. The best forex brokers would conform and adhere to the rules and regulations of the industry.

Pip Spread
Forex brokers charge commission based on the pip spread difference of the trading currency pair. This value will be determined by your broker and most of the time they change it to suit their interest. When they fix a greater fix spread, they will be making a huge commission on the currency you trade and you will be making less. Therefore, to maximize your profit, look for a broker who has low pip spread and has the value fixed.

These are some of the tips that you can use to get the best forex broker. For a more detailed explanation see our guide on how to choose the best forex broker here.

Managed Forex Accounts

Forex, short for Foreign Exchange, is where one nation s currency is converted for that of another. With over $3 trillion being converted everyday, the Foreign Exchange Trading market is presently the world s biggest fiscal marketplace and hence very attractive to investors. The market has no corporal position and it runs through a worldwide network of banks, institutions and individuals. Nowadays, importers and exporters, multinational companies, bargainers and many others all have an progressive interest with the Forex market relating to their financial proceedings. Many such establishments choose to sustain managed forex accounts for such roles.

A managed currency trading account, also known as an automated managed forex account, admits an investor the chance to take part in the international s most significant market without having to monitor the market trends 24 hours a day. The managed currency trading accounts, as the name may imply, are dealt and handled by professional people with huge experience in the market. This alone belittles the risks of losses while profit-maximizing yields on the investment made. Managed foreign exchange trading accounts are ideal for those that choose the capital invested to be managed efficiently. There are many profits to be reaped through applying a managed forex account. The investors would still be efficient to hold liquidity of assets, which is holding the deposit and withdrawal of funds at their discretion, while receiving real-time account management and reporting as well as currency trading strategies and related information of the market. The forex trading account managers also use several analytical methods, both mechanical and technical, to check the most exact investment entry and leave tips to hold moneymaking results.

Whether you use a managed forex account or do it yourself, investment in forex is not for everyone. Many professional people also advocate spreading chance of investment through regarding the capital in different opportunities and not just one. In picking out an appropriate managed forex account, it should also be noted that previous performance is not suggestive of future solutions. However, committing in a managed forex account would enable an individual or foundation to deal in worldwide currencies without having to analyze the market yourself. The professionals are more than efficient to do it for you, with the wide added up benefit of their expertise. All the investor then has to do is to allow the needed capital, where the nominal investment would be around $10,000. If you either miss the necessary capabilities to trade in the forex marketplace alone or do not have the resource of time on your hands it would be perfect to get an automated account to do the task for you.

However managed fx trading accounts are mostly costly. A better solution is to go for an automated forex trading robot. I advise you to get a reliable forex robot like FAP Turbo.

Currency Day Trading

Forex Day Trading & Scalping For Quick Profits

Forex day trading and forex scalping are ways to make money fast in currency trading, but at the same time it is as risky as any other currency trading method, if not more so. Profits are never guaranteed in the forex market and day trading requires some special attributes. If you are new to forex scalping I suggest you to check out Delphi Scalper system.

Many beginners start with day trading because they like the idea of being in and out of the market quickly. It seems to a beginner that there must be less risk because you are not exposed to danger for so long. But in fact this is not true. The chances of having a trade go against you are just as big.

Of course, it is common for forex day trading strategies to involve a smaller position than longer term trading, or they can have a smaller range in terms of stops and profit targets. So in a sense the risk is lessened, when looking at one trade. But when you consider all of the trades that the system undertakes in a month, it is clear that overall there is no particular safety in day trading.

So does that mean we should not do it? Not necessarily. Just be sure to do it for the right reasons.

Some people consider that day trading systems are less stressful. Again this can be an illusion, but it is true that day trading seems to suit some people better than others. The pace of trading is much faster, with decisions being made on a very tight timescale under more stress. But on the other hand, at the end of the day you can switch off your computer knowing that every trade is closed and nothing is going to happen to your account balance while you sleep, so it can be easier to relax and forget about trading when it is time to take care of the rest of your life.

If you are considering day trade currency systems, be aware that an estimated 80% of day traders are losing money. Of course this may be because so many of them are beginners who do not know what they are doing. However, you want to be sure before you start that you have a good chance of being in the other 20%. This means testing out systems thoroughly in demo mode as well as back testing before ever considering going live in the real market.

Then start small because it is hard to know how the pace is going to affect our decision making powers until we are trading for real. Never assume that because you made money in demo, it is going to be easy when it comes to the real market. Many people make this mistake: you will surely have seen people complaining in forums about some system that worked in demo but not when they went live. They do not seem to understand that this is not likely to be the fault of the forex day trading system!

Good Forex Trading Systems

Why Is It So Hard To Find Good Forex Trading Systems?

Is it possible to make money with forex trading systems? Beginners often wonder why it is so hard to find good forex trading systems. Advertisements all over the internet and on Television draw the average Joe into the lucrative but risky forex trading market with dreams of striking it rich, but he quickly finds that making a lot of money in currency trading is not as easy as he hoped.

Before you even start looking for forex trading systems, you need certain qualities. You need to be comfortable with figures. You need to be cool headed and, in a certain way, ruthless; while you don’t have to deal with other people too much, you do have to face your own fears. You need to be able to take risks without being a gambler who will stake all for a win.

Then if you fit the mold or think you can learn to, it is time to look around for instructions on how to trade. There are a huge number of forex trading systems available and all you need is one that works, so it should not be too difficult … right?

In fact, the idea of a forex system that ‘works’ is misleading. Trading systems do not work all by themselves, unless they are automated, and even then you have to set them up in the right way in order to maximize the potential profits without exposing yourself to too much risk. Manual systems depend even more on the individual who is using them.

So one of the reasons that people find it hard to track down good forex trading systems is that they are looking for the ‘one size fits all’ perfect currency trading system, and it does not exist. If you look in forex forums you will not find a single system that has 100% positive reviews. There is always somebody who ‘couldn’t make it work’ for one reason or another. This is because not all the traders will be comfortable with certain trading systems however good the forex trading system may be. For instance traders who are mainly into short term trading may find forex scalping as the best option and will definitely agree that a good scalper system such as the Delphi Scalper system is the right choice. On the other hand traders who would like to take the advantage of 24 hours market may go for automated forex trading robots such as FAP Turbo or Forex Megadroid.

However, you should be able to find a currency trading method that works for you if you have the right attitude when you are looking. That is, search for something that fits your own trading style. If you do not yet know what that is, just try out a few free systems in demo mode to see if you are better suited to day trading or longer term trading, and how much you can handle in terms of technical analysis.

    Recommended Forex Trading Systems:

  • Delphi Scaler: DelphiScalper is highly recommended for forex scalping.
  • Forex Rebellion: This is a simple yet effective mechanical forex trading system.
  • FAP Turbo Robot: The most popular commercial forex expert advisor or automated forex trading robot.

Many people find day trading more stressful but it has the advantage that at the end of your trading hours you have normally closed all of your trades so you can switch off completely and relax. Long term trading involves leaving trades open, and you might find that there is always a little worry at the back of your mind, especially at first. You might be sneaking off to the computer at all times of day or night to see what is happening to the prices. Give yourself a little time with various forex trading systems in demo, and you should soon find one that is righ

Forex Strategies for Profits

A Simple Forex Strategy To Increase Your Profits

There are a few forex strategies that you can use to increase your profits, no matter what forex trading system you may be using. Here is one simple trick that can help you to make more out of each successful trade.

Of course, all traders know that you should set a limit order or at least include a profit aim or closing signal in your plan and keep to it. It is important not to keep a winning trade open until the moment ‘feels right’. Either you are aiming for a certain number of pips or you are waiting for something like an oversold or overbought signal and then close immediately.

Keeping a trade open for an undefined time, hoping to make the most of it and profit from every last pip, is a road to ruin. Successful forex strategies are never based on feeling. Sure it is annoying to close out a trade at 50 pips and then see the trend continue to 200, but how often does that happen? We tend to remember trades like that and forget the others, so if you do not keep a record of what happened after you closed a trade, now is the time to start.

If it turns out to be true then you might want to back test the results of increasing your profit aim per trade, but in 90% of cases you will find that this does not happen often enough to justify that. What you may find, however, is that it is worth closing half of your position.

Of course, to do this you must either be trading more than one lot or have a broker that accepts fractional lots. You can set a limit order for the first half but you need to be watching the market so that at that time, you can set a new limit order for the second half and at the same time, move your stop loss. The new limit order could be half of your original profit target or it could be the same amount again, but not more.

There are several options for the positioning of the new stop and it is a good idea to back test these for your particular system. First option, if your stop was originally 20 pips out from your opening position, it now moves to 20 pips from the price at which you just closed half of the order.

Second option, your stop moves to your entry position plus or minus the spread. So if the trend now turns on you, you will have a profit on the first half of your trade and break even on the second half. Third option, the stop moves to half way between the opening price and the current price. What is best depends on the original position of your stop. Of course you do not want to move it so close to the current price that it is triggered too easily.

Equally, never be tempted to apply this technique to a losing trade. It would be a big mistake to only close half of a trade when it hit your stop, unless you are testing different positions for the stop. Forex strategies should maximize your profits, not your losses!

Euro Trading

Euro USD is one of the most popular currency pair in forex market. Most of the traders when they start out making money with forex trading they go for Euro trading against the dollar. However, unfortunately most of these traders know practically nothing about the Euro trading. The only thing they look for is the euro to dollar conversion or the exchange rate. But when you are doing currency trading in euro there couple of significant facts that you should be aware of.
Unlike other currencies the euro is a very unique currency because it is not the historical currency of any nation. The euro was introduced after the formation of European Union or the European Economic Community. The European country leaders and European bureaucrats realized that it would boost their economic activities if they have a common currency. Today, Euro is the second most traded currency (after the US dollar), in the forex market. Naturally Euro is a very significant power in financial markets.

History of Euro:
The European Economic Community or the European Union was formed as a means of lowering trade barriers between nations in Western Europe. Over the years it has extended to include countries in Eastern Europe. However the most important factor for expansion of euro trading is the formation of the European Monetary Union (EMU) and the introduction of the currency euro, which happened during the beginning of this millennium.

Facts You should know while Trading in Euro
The euro is controled by the European Central Bank (ECB). Because of its status as a multinational regulatory bank, its remit is a little different than the US Federal Reserve. The European Central Bank is concerned solely with interest rates and maintaining price stability within the Euro zone, while the Federal Reserve and most other national central banks also have to consider the effects of their decisions on employment levels. Continue reading

Limit Order in Forex

When you learn forex trading you might have come across the terms stop/loss and limit order. What are they and how they benefit for you to make money from trading?
limit-orderLimit order and Stop/Loss are conditional orders. We call these conditional orders because they will not come into effect unless certain conditions are met. There are two types of conditional order that you can place while trading forex. They are the stop loss (which is also known as stop/loss) and the limit order.

The Stop/Loss
The stop loss is a familiar order that controls the risk involved in a trade. With a stop loss, you are giving instructions to the broker, “If the price goes this far against me, I want out.” So if you have bought a currency pair expecting an increase in price, but then the price falls, your whole account balance will not get wiped out. The stop loss will be triggered when the loss reached at certain level according to your settings and protect the majority of your funds.

A Limit Order
A limit order is similar but applies to the opposite situation, the condition where you have a winning trade. With a limit order, you are instructing the broker, “If the price reaches this level, that’s enough, I’ll close there and take it.” Once set, the limit order will be activated if your pre arranged price (desired profit level) is reached and the trade will be closed at that price.

Many new forex traders are reluctant to use limit orders when they first start out. For them limit order seems counter intuitive. After all if the market is going your way, why would you want to close the trade? Wouldn’t you want to hold on as long as possible to get the most profit out of it? This is a serious mistake committed by many new traders.
The trouble with that approach is that sooner or later the price will reverse, and often it does it sooner rather than later. If you do not place a limit order, when will you close the trade? How will you know when it has gone as far as it is going? If you wait too long, a sudden reversal could see all of your profits wiped out.

So unless you have a system that is set up with very precise criteria to tell you when to close a trade, you will probably be better off if you use limit orders.

And where do you set them? Back testing your system can be helpful here. You can check through the last months and years of markets that would trigger a trade under your system and figure out what would have been the optimal setting for the limit order. However remember that past results are not necessarily going to be repeated in the future. Testing your limit order settings in a forex demo account is also useful.

In most cases you will want the limit order to be further from your starting point than your stop loss, even after spread is taken into account. This will mean that you only have to score a 50% success rate to be in profit. Setting the limit order at twice the pips of the stop loss, either before or after spread, might be appropriate. However, this depends on your system. Don’t skip the testing.

Using limit orders has another valuable benefit too. Once you have both stop loss and limit order in place, you can walk away from the computer and get on with your day. Though you won’t get the kind of freedom you can achieve through automated forex trading robots, with limit order and stop/loss in place there is no need to watch every little fluctuation of price until one or the other is triggered. This reduces stress and makes it less likely that you will panic and deviate from your original plan. So using limit orders in forex trades makes for a happier, more profitable trader.
For complete hands-free forex trading I suggest you to get a good automated forex robot like Forex Auto-Pilot Turbo (See FAP Turbo Review) or Forex Megadroid.

How to Use Scalper Expert Advisor

How To Use a Scalper EA to Make Profits

Forex scalping, if it is done correctly can be highly profitable. Using a forex scalper EA (expert advisor) can be a very lucrative way to trade the currency in Fx markets though it also very risky. Some forex traders seem to make a ton of money with scalping while others lose their shirts. So what is the difference and how can you stack the odds in your favor when you are using a forex scalper expert advisor?

1. Choose your broker carefully
It is crucial to get the correct broker when you are using a forex scalping system or a scalper robot. Many brokers do not like scalping strategies and particularly object to the quick profits that can be made with scalper software.

Usually these brokers will be market makers who will carry the risk of a trade themselves until they can match it in the ECN. If your scalper EA moves in and out of the market very fast, they do not have a chance to cover their risk, and so you profit will be their loss. As you can imagine, if you are very successful they will soon decide that they do not want your business.

Brokers who have a place in the ECN and do not have to rely on a third party are more likely to be happy to accept your robot’s scalping strategies. To find an amenable broker either ask the developers of your EA or look for recommendations from other scalping traders in forex forums.

2. Manage your risk
Many people new to forex trading assume that because scalping strategies rely on many small trades, they are less risky than systems relying on a higher profit per trade. This is not true at all. Scalping is just as risky as any other form of forex trading. Risk management is essential if you do not want to be wiped out of the game.

For the same reason it is important not to overstretch in terms of leverage. Certainly, do not choose a broker by looking for the one that gives you the highest leverage, unless you are very sure of the drawdown of your system and that you can cover it.

The problem with a high leverage means that triggering a stop loss will mean a greater loss. Sure, the profits are higher too, but when you go through a bad patch you can run through your funds very quickly. It is important that your account can take the battering. It is much more likely to be able to do that if you have kept your risk and your leverage low.

3. Understand your Scalper EA
It is also important to understand what your scalper expert advisor is doing. This means having realistic expectations about things like the number of times it will trade in a week, how much on average it will make on a successful trade, how much it will lose on an unsuccessful trade, what percentage of trades are successful, etc.

All of this helps you to know what you can expect in terms of your bottom line in the long term and what will be the optimum level of risk. When it comes to risk, by the way, always assume that the worst case scenario is at least twice as bad as the worst patch that you have seen.

You cannot rely on information from the developers or from other users in this respect. This is not a matter of trust, it is just that different variables will apply to each individual. So do your own back testing and demo testing before you start to use a scalper expert advisor live.
I suggest you to check out FAP Turbo or the new Forex Black Panther robot for automated scalping software.

Forex Investment

If you are interested in investing in forex market it is essential that you know the basics of forex trading and learn how Forex investments can be profitable.

fx investmentFirst let’s see what exactly is, Forex trading. The word Forex is an acronym for FOreign Exchange which is also known as currency trading. In a nutshell, when you invest in forex trading you are going to buy foregn exchange for a low rate and sell it when the rate increases to make profit. Forex investments can be considered similar to stock market in principle with some key differences which makes Forex unique.

Forex Market is open 24 hours for Investment:
Unlike the stock market, forex trading market is open 24 hours a day during the 5 business days in a week. This is because the forex trading market is global. While the stock trading is done through the national stock exchange, forex traders deal globally by exchanging currency of country for another. The traders observe the price movements and enter into a trade when they feel the price point is right, and then they exchange the currency back to close the trade to earn profit.
By the time the forex market in United States close the Asian market is open. Thus it is the foreign exchange market is open somewhere in the world all the time, except on weekends and non-business days. One of the major advantages of forex investments is that you can do trading at just about any time of day or night, according to your convenience. You might also have to take the currency pair and the trading system into consideration while deciding your trading time. You might want to learn more about the best time to trade forex.
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