Friday, May 09, 2008

More information on forex trading system software

FOREX Day Trading - Day Trading Doesn't Work So Don't Try It

The logic of day trading is totally flawed and will never make you money over the longer term and will wipe out your equity.

If you want to prove it ask anyone who says it does to give you a real time track record of profits and you won?t get one.

Why? Because day trading does not make money.

Before we begin, you may ask yourself why there are so many people claiming they make money at day trading?

Well the answer is it?s a good story and appeals to peoples greed.

This creates system sales and revenue for the vendor OF these day trading methods so they make money you lose.

Here are the reasons day trading does not work:

1. Time Period

A day is to short a time period to judge market trends accurately.

Think about it.

Trillions of dollars are traded everyday and prices can go anywhere and there is no way of guessing what the volatility in a day will be or the direction.

Short term moves are simply random.

You could probably flip a coin and do as well as most day traders.

2. Stops

Day traders use the daily range to buy and sell and set stops.

Stops therefore tend to be close to entry by the very nature of day trading.

Volatility in a single session is impossible to judge and most times simply picks off the stops and creates small losses which add up.

3. Banking profits early

Most day traders are looking to scalp a few pips here and there.

They do have some wining trades (more by luck than by judgment) but of course they break the fundamental rule of trading leveraged investments which is:

Run your profits to cover your inevitable losses.

As they have a lot of losses and marginal profits the net result is the erosion and eventual wipe out of account equity.

Day Trading is a good story, but in reality day trading doesn?t work over the long term.

Simply ask any vendor who sells a day trading system for this:

A real time track record of their profits over 3 years and see the answer you get.

The conclusion from all of this?

You guessed it ? Avoid day trading if you don?t want to lose your money.


On all aspects of becoming a profitable trader and more on profitable forex trading methods visit our website at

Another article on inversion en forex

Set Yourself A Set Of Forex Trading Rules And Stick To Them

One of the biggest problems for the new Forex trader (and quite a few experienced traders) is that they are no real rules to Forex trading. Now in some ways that's one of the beauties of forex trading and it's nice to have the freedom to trade when you want to, to enter and exit positions whenever you feel like it, to increase or decrease an existing position and simply not to trade at all if you don't feel like it.

But within this freedom there also lies considerable danger.

No matter what we do in life there is no doubt that we do much better if we have a clear objective in mind and a roadmap to get us there. However, even though having a road to follow is essential, it is also important that we have a set of rules to follow to keep us on that road and to stop us from taking a wrong turning and ending up heading off course or driving up a dead end road.

In Forex trading there's no doubt at all that traders who follow a strict set of rules meet with far greater success than those who simply 'wing it'. Also, if you speak to traders who do follow a set of rules they'll tell you that, nine times out ten, when they have a bad day it's because they don't follow the rules and, when they have a good day, it's because they stick to them like glue.

The problem is that, since Forex trading doesn't really have any rules, you have to create a set of rules for yourself.

Now exactly what rules you will lay down for yourself will depend very much on your own trading plan and your rules will need to be reviewed whenever you update your plan - which you should do on a regular basis. So what sort of rules are we looking at?

Well, you might for example decide that you will never enter a trade without ensuring that you have a stop loss order in place. You might also decide that you will only enter a trade if certain analytical conditions are met. In other words, you will not enter a trade simply because you have a feeling about it, but will only do so if the numbers tell you that you should do so. In addition, you might decide when you are in a profitable trade you will move your stop when your profit reaches a pre-determined level in order to protect your position.

These are just a few ideas and your own list will need to meet your own particular trading strategy. However, whatever shape your list takes and however long or short it is, it is vitally important that you draw up a list, having thought about it very carefully, and that you then stick to it and also review it at regular intervals. is the ideal place to learn Forex trading and provides information on a wide range of topics including currency exchange rates and the benefits of testing the water through mini Forex trading.

Tips On Choosing Automated Forex Trading Systems And Software

If you plan on learning Forex, or foreign currency exchange trading, software-developed automated Forex trading systems will be the way you make your real and your practice trades. Most individuals will start out with a demo, or practice account, that will allow them to simulate Forex trades in order to build their level of proficiency. When choosing Forex software, here are some important considerations to keep in mind.

There are many online brokers that will offer a variety of demo and real accounts that are easy to open, along with a variety of learning resources. Some of the demo accounts may have a small fee, which will usually be waived once you become confident enough to open a real account. It is certainly worth paying the small fee to get started, as the first step toward becoming a Forex trader should be practicing with a demo account.

To make a profit with Forex, it is essential to develop your skills, and to let the learning curve be with virtual money, rather than with real money. Once you are consistently making a profit, you can then take your knowledge to real world trading, and transition to an actual account. Another advantage of using a demo account is that it lets you become familiar with the software and the system itself, so when you do start trading you will be comfortable and can concentrate on the trades themselves.

Automated Forex trading systems usually come as either desktop-based or Internet-based software. The Internet based versions usually have several advantages. For example, by using Internet-based software, you won't have to deal with maintenance issues, and the software will usually offer more data security than software that is based on your desktop. Normally, the system will be on a data-encrypted secure server, similar to a credit card, which will protect your security.

An Internet system will also be more convenient, as you will be able to check your account anywhere, which can be a plus if you travel frequently, and you won't have to deal with downloading or storing the software on your computer. However, the effectiveness of internet-based trading systems is also determined by the speed of your internet connection. Having a DSL or a broadband connection is usually the best.

Its worth taking the time to find a Forex software system that works for you. Once you settle on a place to house your demo account, you'll want to keep your real account in the same place. You can then continue to use the demo account to test alternate moves, and also to shadow the moves you make in your real account, to see if you are being too prone to risk, or too conservative.

Forex trading can be both lucrative and exciting, and its worth spending the time finding a Forex software trading system that you will be comfortable with, and that you can understand. Internet-based software offers several advantages over desktop-based software, but whichever one you choose, ease of use and the ability to practice are essential.

Amy Wells is an enthusiast of Forex
trading and writes and reports on consumer finance issues. You can get
more information on forex
software at:

Forex - How Can I Put the Odds in My Favor?

How does an investor set themselves up for success when thinking about a market as large and volatile as the Forex? Also known as the Foreign Exchange market, the Forex allows investors to speculate on the movement of currency exchange rates between different countries. It is impossible to accurately predict the movements of the market all the time but many of the top investors maintain that there are ways to increase your odds of anticipating market fluctuations and capitalizing from them. Here are just a few ways to enhance your chances for success with Forex technical trading:

1. Only trade at end of day

2. Avoid over-trading

3. Do not read FX reports

4. Backtest, backtest, backtest!

All investors are tempted to believe that they must constantly be ?in the know? or risk getting caught out of position. Thus, these dedicated investors may sit in front of a computer screen all day and monitor their investments for fluctuations. For those living in North America, the end of the business day is 5 p.m. EST or 2 p.m. on the West coast and this really is the best time to consider trading?and note the word consider!

At the end of the business day, there are two factors in your favor: First, traffic tends to be down so there are fewer chances for price fluctuations. Second, if you wait until the end of the business day, then you can look at information flowing in from the East to help guide your decisions.

Over-trading is basically like going back and back to a casino thinking your odds are actually improving?because they are not! Over-trading increases your chances of jumping into a position too late and getting burned or out of position too early and missing out on profits. Put stops in place that can safeguard you from losing more than you can afford?and then let them alone and relax!

Reading what someone else says about the outlook on the market is going to do one thing: cause you to question your strategy. None of us are going to get it right every time and no one can predict the future so reading those reports can only harm, not help, once you have purchased a position. If you are going to read those reports, do so before buying in?after that, just leave them be.

Investors buy and sell positions based upon their theory of the market and where a particular currency pair is headed. While you should not change your stops while already having a position, you can certainly continue to test your theory by backtesting. People capitalize in the Forex market by identifying trends and buying a position on that trend and riding it for as long as possible. Continuous backtesting helps investors hone their theory and better identify trends quickly and take advantage of them for profit.

The Forex market may be the largest and most volatile?but it also holds the greatest potential for profit. The few tips listed above will help ensure your success in Forex trading and they will greatly enhance your odds of success. Be sure to review them carefully!

Article by Kent Douglas, author of "The Simple Forex Solution: The Easiest Currency Trading System Anywhere." To learn how you too can succeed in Forex and Currency Trading, please visit

Currency Forex Trading System - When To Abort A Trade

When the world markets, including the stock markets started to slide a few days ago, many experienced traders would only smile. Not that they were not affected, but they were smiling because they knew markets do go up and come down. It is only at what point in time is it necessary for a trader to quit a trade that has gone wrong- and these experienced traders could smile because they knew when to quit the markets, irrespective whether it is the currency markets, the stock market or the futures and commodities market.

Whether it is a smile or a smirk, these experienced traders have a good reason to do so.

Because when you quit at the appropriate moment, before a market collapse, you would make a lot of money getting out of the markets before the big drop. Those who quit immediately on the confirmation of the drop would not have done much worse, because they would also salvage a large part of their gains that have been obtained over the many months the markets have gone up. It is only those that hold on to their stocks, or shares or financial instruments they are investing in, that will feel the pain as the values of their holdings start to erode... and fall further, and further.

So the big question to ask today is"When exactly is the time to abort a trade?"

Many adopt stop losses, or make a certain cut off point to get out of their stocks.

So let us have some instruction today on the effective way to get out, or the correct timing to abort a trade.

There are two main ways to abort a trade.

The first way is to fix a time determinant to get out of a trade.

For example, for the day trader, if he or she has a basic understanding of a chart pattern leading to a trade, and believed that the chart pattern will work, and has entered a trade based on that chart pattern, but the conditions for that pattern to perform is no longer present, then he must immediately quit the trade, especially if a set number of trading bars have occurred.

For example, if you identify a break out pattern of an ascending triangle has occurred, and you have opened a trade by buying, but soon after you have purchased, your expected outbreak pattern has not occurred after 3 bars, then you may wish to abort that trade when 3 bars have occurred and yet the outbreak has not occurred.

When the time determinant as signified by the 3 bars have passed, it is easy to recognise the conditions for the trade have not occurred and you must then terminate or abort the trade.

The second way to know when to abort a trade is to do so when there is a pattern failure. Again, using the breakout of an ascending triangle as an example, if the price has broken out of the triangle, but then has fallen back into the triangle, signifying a failed pattern, then the conditions for the expected pattern have changed and it is no longer feasible to hold on to the projection of an ascending triangle. In other words the pattern has simply failed and it is the best time to abort the trade immediately.

Any delay is going to hurt you financially. It is wisest to quit a trade when the expected conditions are not fulfilled. Markets have a way to hurt the trader who procrastinates and wastes the earlier chances to get away with a profit, no matter how small.

Getting out of a trade is crucial for you to make profits. Discover how a professional trader gets in and out of forex trades with the ease and accuracy of a sharpshooter by using 3 specialized and easy to use trading systems WITHOUT INDICATORS, and how you can adopt these same powerful trading methods in your own trades to create massive profits, by visiting the author's blog at