Forex Trading - Does The Holy Grail Exist?

<div id="article-content"> Forex trading has become very popular in recent years. It used to be that you couldn't open an account unless you had a minimum of $50,000! Now with most brokers you can open an account with less than $100. The Forex market is easily the biggest and most active market in the world. It is currently estimated to have a turnover in excess of US$4 trillion every single day. With this kind of money changing hands every day, it is no wonder everyone wants a piece of the action!<br /> Every day more and more people enter the Forex markets to try their hand and attempt to make their millions. Most are looking to get rich quick. They start their search of "the holy grail" which they were promised is a perfect system where you will never lose. They were promised that Forex trading is as easy as a push of a few buttons to make fortune in their trading account. These Forex "traders" keep searching for that one system that is foolproof so they can just sit back and watch their accounts grow exponentially with no effort at all.<br /> So does this holy grail exist? I hope I don't break too many hearts when I say that no, it does not. There is no such thing as a 100% accurate system. If you are one of those people I described above, please save yourself the wasted time and stop looking. With central banks and billion dollar hedge funds moving and controlling the markets every day, nothing is guaranteed in Forex trading. We are just the little guys playing their game.<br /> With that said, can you trade smart and still turn a consistent profit? Yes, you can. There are many ways to make money with Forex. The most important part of the game is to have one proven Forex trading strategy and to stick with it. Every single method will have a drawdown at some point. The key is to have good money management and the mental capability to stick through that time and come out on the other side.<br /> Forex trading is a serious business. If you want to be successful at it, it should be treated as such. I can guarantee you that professional Forex traders and hedge fund managers do not take their jobs lightly. Neither should you. Like any other business, it will take time to become profitable. But with desire, determination, and proper Forex trading education, it is very possible to succeed. Once you have mastered the skill of Forex trading, there is nothing stopping you from reaching all of your dreams.<br /> </div> <div id="article-resource"> My name is Shawn, and I have been a Forex trader since 2007.<br /> Forex trading is my passion and is something that I will be doing for the long haul. I would love to help any aspiring traders reach their dreams as well so visit my site and check out my Forex trades. If you have any questions about anything, just leave a comment or send me an email and I will be more than happy to help!<br /> </div> <div style="overflow: hidden;"> <br /> </div>

Forex trading has become very popular in recent years. It used to be that you couldn't open an account unless you had a minimum of...

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The Holy Grail of Trading - Risk Management by Ken Mann

<div id="article-content"> Ken Mann assumes for this article that the reader has little to no experience in trading and yet professional traders over the world are now using this book to explain risk management to their organizations. Anticipate occasional Forex Trader jargon that might be beyond the scope of a true novice. This occurs rarely enough... the value remains high.<br /> Ken is a teacher. As you read the book you can sense that he may have been a professor in an earlier career. The book begins with his definition of Risk Management. I found that while clearly written there were continuously new insights as I re-read the text prior to this review.<br /> One of the most helpful parts of the book was a list of six "must haves" for a traders risk profile. After slogging through the details the true magic begins.<br /> With a series of 10 trades over 60 day period ", Ken meticulously details each trade prior to entry and as it occurs. Theclarity of screen shots and illustrations are only exceeded by the seemingly unbelievable results. Prior to writing this review I sought and gained documented evidence that the trades occurred in one of Ken's live accounts.<br /> With permission I close the review with direct quotation from the book which tells the story far better than I could do.<br /> Ken writes on pages "50-51"<br /> Now that we have finished our 10 trades, let's have a look our pips and time inventory.<br /> Started on 15 Oct 2010<br /> Finished on 9 Dec 2010<br /> Nearly 2 Calendar Months<br /> Trade 1 closed with 290 pips gain<br /> Trade 2 closed with 170 pips gain<br /> Trade 3 closed with 40 pips loss<br /> Trade 4 closed with 405 pips gain<br /> Trade 5 closed with 27 pips loss.<br /> Trade 6 closed with 209 pips gain.<br /> Trade 7 closed with 160 pips gain.<br /> Trade 8 closed with 652 pips gain.<br /> Trade 9 closed with 307 pips gain<br /> Trade 10 closed with 35 pips gain.<br /> Gained pips count: 2228<br /> Lost pips count: 67<br /> ------------------------------<br /> Balance 2161<br /> We took only 10 trades in the period of almost 2 calendar month and come out with 2161 pips gain. That's about 1080 pips per month and 54 pips per day for 20 trading days in a month. Most importantly achieved over 1:5 risk reward ratio.<br /> These results are based on 1 instrument traded. We could have been trading multiple instruments and results may have been different in either way. I kept it to 1 pair to save myself capturing a lot of charts and writing more.<br /> I have tried to demonstrate the importance of a Risk Management and its implications. Along the way I have added further information on other aspects of trading as and when appropriate beside risk management.<br /> As long as we can define a sensible Risk Profile for ourselves and strictly adhere to it, Let winners run and cut losers quickly may be considered as a cliche by some but it's a golden one. I have also tried to demonstrate the power of this cliche."<br /> While I freely admit to being somewhat awestruck by the authors trading skills, I offer this final endorsement of this book. Get it. Read it. Place it in your trading library. Currently available via electronic download but soon to be available in Kindle Format on Amazon.com<br /> </div> <div id="article-resource"> Do not wait for publication Download this book and three more by Ken Mann http://www.acegazette.com/en/resources/downloads.html after joining our site and becoming mate. courtesy of Stephen Gibson aka "acegazette nosbigs" and all the Ace Traders and mates at Ace Gazette.com".the Aces. Ace Gazette's founder Ken Mann and his crew of POG are building a trader community with all traders learning to trade "Supply and Demand" with emphasis on price action. 8 professional traders and 11 Academy traders assure your education is with competent traders who do believe in the words, " We are traders helping traders."<br /> </div> <div style="overflow: hidden;"> <br /> Article Source: http://EzineArticles.com/7394062</div>

Ken Mann assumes for this article that the reader has little to no experience in trading and yet professional traders over the world a...

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Renko Charts - Can You Still Lose Forex Trades Trading Off Renko Charts?

<div id="article-content"> There is little doubt in the mind of Renko Chart enthusiasts that Renko Charts give them a decided advantage over the rest of the market participants when trading Forex. Early entrance into the market at the start of a trend, and an early exit when the trend starts to collapse are just two advantages Renko Chart users have over Candlestick and Bar chart traders. However, this does not mean that Renko Chart traders never lose a trade. In fact, quite the contrary is true.<br /> Having used Renko Charts for close to three years now, I can attest that while they have made my trading life simpler and have pointed me towards many more winning trades than I found using traditional charting methods, I still lose my fair share of Forex trades.<br /> I've stated this many times in the past, and will continue to repeat it for as long as necessary: There IS NO SUCH THING as a "Holy Grail" trading method, in Forex or in any other trading venue. No one wins every trade they take. NO ONE!<br /> All you can hope for is to find a method, or as in the case of Renko Charts, a form of price presentation, that will give you an edge over the rest of the traders in the market. Forex trading is a zero sum game. That means for every dollar you win in a trade, some other trader in the market lost a dollar. That trader could be a small retail trader like the rest of us, or it could be Citibank. Who it was that lost that trade doesn't matter. The point is, on every trade, someone wins and someone loses.<br /> The true benefit of Renko Charts is that they give you the chance to be the "someone" who wins the trade more often.<br /> But losing trades is a fact of life, and any trader who has the desire to build their fortune through the Forex markets had better get used to the idea that there will be winning days and there will be losing days when trading Forex. A key to success is limiting your losses on the losing days to a handful of pips, and letting the winning trades run as far as possible on the winning days, allowing you to maximize your pip gains.<br /> One way to keep your losses at a minimum when trading Renko Charts is to follow the "One Bad Candle and Out" rule. This rule simply means that when you enter a trade, you decide you will exit that trade as soon as the first opposite color candle forms and closes. If you are trading a smaller Candle/Box size (anything under 8 pips) you will likely find yourself getting in and out of trades more often, as price tends to move back and forth within a 15 pip range on many occasions.<br /> However, if you use a larger Candle/Box size (9 pips or more) you'll find that you end up in plenty of 40-100 pip trades that may take several hours to develop, but you won't see an opposite color candle during that time, and as price ultimately moves in your direction, the amount of profit you can safely lock in with an adjustable stop-loss will grow with it.<br /> Losses trading Forex are a fact of life, and every single trader in the Forex markets has to deal with them from time to time. Renko Chart traders simply don't see as many of them as the Candlestick and Bar chart crowd do, and because of the One Bad Candle and Out rule, Renko Chart traders can limit their size of their loss to just a handful of pips which can easily be earned back on the next good trade.<br /> </div> <div style="overflow: hidden;"> <br /> </div>

There is little doubt in the mind of Renko Chart enthusiasts that Renko Charts give them a decided advantage over the rest of the mark...

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The Holy Grail: The Multiple Expert Advisor Strategy

<div id="article-content"> The latest evolution in trading that is making the rounds of traders around the world are forex robots, or expert advisors. Forex robots are mathematically derived systems that predict movements in currency markets and enter trades on the trader's behalf, completely automating the trading process. All the trader does is purchase the robot, upload it to an appropriate platform, fund their account and turn it on.<br /> Expert advisors have been used profitably by investment and trading banks for many years and have now made their way into the "retail" world. The idea came after the cold war ended, when trading banks discovered that they could employ mathematicians at a low price. The trading banks combined the maths experts with I.T. experts and the end result were automatic trading systems.<br /> Some however feel that these products may be too good to be true, or a scam. While we are not assuming that every single robot manufacturer is trying to take advantage of the trader, most would be well versed to understand exactly how they work and what can realistically be expected from them. The scam impression generally comes from "someone knew someone who once had an expert advisor." It usually revolves around the idea of the robot having a bad patch. All robots have a bad patch and no robot manufacturer to our knowledge claims a 100% success rate.<br /> Expert advisors usually utilise technical analysis for their trade signals. Technical analysis is the use of chart formations and mathematical algorithms to define future movements of financial markets. Technical analysis is now a broadly accepted way of trading, with many believing that this is actually the only way to trade short to medium term price movements profitably on a consistent basis.<br /> Additionally, expert advisors also have their own money and risk management algorithms. These systems can either use the default settings, or else be set by the user to allow tailoring towards individual trading needs. Risk management generally revolves around maximum trade size, maximum risk per trade (stop placement) and number of trades to be initiated at any one time.<br /> Robots take their advantage in that they can both analyse and execute trades. This means that very small projected price moves, of as little as a few pips, can be taken advantage of. These are the type of trades that are usually taken by "scalpers." Robots tend to work well in liquid, fluid markets that are cheap to trade, which makes them perfectly suited for foreign exchange.<br /> The complaints usually arise when a robot hits a losing patch. Like all traders, robots also get the market wrong at times, and the trader can feel extremely disempowered when a "machine" is losing their money. The trader needs to know from the beginning that this is an inevitable part of trading.<br /> The object is to utilise the benefits of trading financial markets with expert advisors and limiting the negative aspect of suffering a bad patch. The best way to do this is for the trader to utilise some diversification their automatic trading strategy.<br /> Diversification, also known as portfolio theory is the act of reducing the risk of negative returns in any one robot, by utilising two expert advisors at the same time. Diversifying the trading robot strategy will at times result in both robots profiting at the same time. At other times, when one robot is performing poorly, it is hoped that the other will perform well and counteract the losses on the first. It must be clear however that there is a risk that both robots will perform poorly in tandem.<br /> It is best to combine expert advisors of different trading styles to ensure that they complement each other. This can be done by purchasing one robot that specialises in short term price movements in addition to purchasing another expert advisor that seeks to profit from longer term price moves.<br /> The final word on diversification of the trader's expert advisor strategy is allocation. It makes the most sense to allocate even amounts to each robot. For example, if you are using two robots, allocate 50% of your funds to each. This will ensure that the trader is not "gaming" the individual robots by trading against them.<br /> </div> <div id="article-resource"> Hamilton Rhodes is an Australian based brokerage providing execution and research in all asset classes.</div>

The latest evolution in trading that is making the rounds of traders around the world are forex robots, or expert advisors. Forex rob...

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The Downside To Forex Trading Forums

<div id="article-content"> The beginning of any forex trading career is always going to be a bit rocky. It's only natural since you are still in the very early stages where everything is brand new to you and you don't really know where to turn. One of the places that most new traders visit are forex forums. For example, forex factory always has thousands of new traders signing up with them everyday.<br /> That's exactly what I did when I first started getting into forex trading. The whole idea of trading the forex market was so perplexing to me that I just needed a place to get my bearings. Forex forums are great for this. There is a lot of content on those sites. The major downside is that most of the content is useless.<br /> You are presented with all of this information, and it's such a shock to the system. You scan all the threads and there are countless posts regarding forex trading systems, trading robots, custom indicators, etc... You feel like the holy grail of trading is somewhere in these pages and if you find it, you are going to be rich. But guess what? All of these "shortcuts" don't add up to anything in the long run.<br /> If you just want to learn the very basics of trading the forex market, like "what is a market order" or something along those lines, then these forums are wonderful for that. But once you start scanning the threads for "the holy grail", then you have ventured way of course. You've lost focus on the long run.<br /> If this is you, you need to look at yourself, and ask "am I just looking for the easy way out?" Because that is all that you are really doing. If would be truly wonderful if something like a holy grail exist, but it doesn't, and just to save you time, I will tell you that it will never exist.<br /> I remember wasting so much time on these forex trading forums, looking for something that would make me rich. After months of doing that, I realized that I had nothing to show for all that time spent. All I had was a bunch of useless gadgets and I knew nothing about the actual market.<br /> Once a trader gets rid of that "shortcut" mentality, then trading becomes a lot easier, and much more profitable. Learn about things like technical analysis and price action, and there is no telling how far you can go when you use traits like subjectivity in your trading arsenal.<br /> </div> <div style="overflow: hidden;"> <br /> </div>

The beginning of any forex trading career is always going to be a bit rocky. It's only natural since you are still in the very ear...

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Forex Trading is 70% Psychology, 20% Money Management, and 10% Technique

<div id="article-content"> Students and acquaintances often ask me to teach them Forex trading techniques to profit in the Forex market. Is there such a Holy Grail that can provide guaranteed winning trades? I listen as an acquaintance continues to complain that he is losing too much money, that he is never on the right side of the market, that he keeps making the same mistake repeatedly, and why does he keep getting stopped out? After about 30 minutes of his ranting, I interject and tell him that maybe he should start learning about trading psychology. With a disappointed face, he looks at me dumbfounded.<br /> Many Forex traders give up after one year while some traders continue to jump from system to system, looking for the ever-elusive Holy Grail. It seems that after learning a number of different trading techniques, traders tend to plateau, and are unable to improve, regardless of what they do. Somehow, there is always a new trading course offered by a most successful trading guru or an ultimate indicator claiming unparalleled results that is a must-have.<br /> The Forex industry is so polluted with scammers and marketers that it is impossible to sort out who is telling the truth. It is extremely sad to see so many people losing money in this market; however, it is the greed that continues to recruit more neophytes. It is like a gambler looking for an easy way in life to make a lot of money in the shortest amount of time. There are traders claiming that they are not gamblers and have never stepped into a casino in their life. Welcome to the twenty first century, where gambling comes in many forms, and the casino comes to your house via Forex internet trading.<br /> In order to gain an advantage in Forex trading, you have to realize that what you need are not the indicators or ground-breaking Forex trading techniques. The skills that you need to acquire are discipline, emotional control, patience, and the right mental attitude toward losing. It is about how you respond to pain and pleasure, greed and fear. The keys to being successful in Forex trading are all internal. It is not so much about finding the highest probability and lowest risk point of entering in the market. Regardless what you do, there is always a risk and a chance of losing. You must accept the consequences of losing or being stopped out in the market. Lacking emotional control will cause you to experience pain whenever your account goes negative and experience pleasure whenever the account goes positive. You have to realize that psychology contributes to 70 percent of your trading success. If you don't learn the proper trading psychology then you have diminished your chances of success.<br /> Money management technique is twice as important as Forex trading techniques. If you rush to earn a lot of money in a short period of time, you will take larger risks and are more prone to wipe out your trading account. There are no shortcuts in building wealth, regardless of what industry you are in. Whether it be with manual Forex trading or Forex managed accounts, if someone claims to make consistent profit month after month, then it is likely to be a scam because there is no risk involved.<br /> </div> <div style="overflow: hidden;"> <br /> </div>

Students and acquaintances often ask me to teach them Forex trading techniques to profit in the Forex market. Is there such a Holy Gr...

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How to Start Your Own Forex Signal Website Business

<div id="article-content"> Forex trading is getting more and more popular among retail traders. Every day we see advertising on television and online. The truth is that Forex trading is not an easy task to do is very obvious for those who have been trading currencies for at least few months. Everyone will agree that it is hard to fight against the huge Foreign Exchange market. And it is even more harder to earn money in Forex trading in the long run. That is why 95% of the Forex traders are struggling to find that "holy grail" trading system, Forex robot or Forex signal service that earns money in the long run. If you happen to have profitable trading experience you can sell it to people. Having your own customers will give you much more revenue that you could imagine. A small Forex signal website business with only 10 customers paying a small $100 USD monthly fee would generate you $1000 USD profit each month. Get yourself 100 customers and you have $10,000 USD income every month. Yes, it is that simple. You can set monthly, weekly or even daily recurring payments.<br /> Although it is not hard to start your own Forex signal business, you will still need to do some work and have some money. First what you will need is special software that can send Forex trades to your customers. Luckily there are several ready-to-use software available online and you can purchase unlimited license anytime. Now be wise and careful when you choose software for your Forex trade delivery. Such software should come with the control panel website where you and your customers can login to manage their profile info and trading settings. Usually customer side software is locked to a single account so your signals will be protected. Customer will be able to use software and receive trading signals only to a single account. Software usually is locked automatically on the first launch, but a customer can easily lock it to another account if needed. But in any case he/she can use the software only on a single account.<br /> Trades are delivered to customer accounts in 1 second, and that ensures that the entry price will be the same. There will still be rare cases when the entry or exit price is different, of course, but that is out of our control. This happens because of different spreads, slippages, price quotes and delays among the Forex brokers. Although best solution is to use the same broker for master and slave accounts, the software allows you to use any broker and is not limited to account type. Software should work on any account including ECN, STP, Dealing Desk, 4 and 5 digit brokers. Software should automatically adapt itself to the master or slave account it is working on.<br /> The best thing about this is that you can connect your Forex signal website with the payment processor or your choice using special plugins. Most popular payment processors supported such as PayPal, ClickBank, Plimus and Click2Sell. These plugins will allow you to have your payments automatically handled each and every month. This way you will not need any human intervention to run your business. Once new customer signups on your website, he/she will receive a welcome message with the login info and download link. This allows to start using software and receiving new trades in minutes.<br /> Your master account should start sending trading signals automatically when customers pay a subscription fee. Usually they are automatically billed each month until the subscription is cancelled, and when they run the client software on their account, they will start receiving Forex signals automatically. So from there no human intervention is needed, and when you make money, your customers make money too.<br /> </div> <div style="overflow: hidden;"> <br /> </div>

Forex trading is getting more and more popular among retail traders. Every day we see advertising on television and online. The truth...

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