Can You Really Make Money Day Trading Forex Markets?

By Nial Fuller

What if I was to tell you that day trading forex could potentially be the most dangerous and unprofitable activity for you and your portfolio. Honestly, there are better ways to trade forex than day trading, and easier ways to trade with much higher odds, but first let me explain these wild claims... 

Not only am I about to share with you the truth about forex day trading, I believe I will change your expectations and move your thinking towards trading higher timeframes with the aim of taking advantage of slightly longer term moves over several days of trading activity.  

Let me begin by asking you how many successful day traders you actually know or have ever met? Do you really believe beyond doubt and with complete evidence that you can point out a day trader who makes serious money consistently in the forex market? If you know of one, then I am happy for you go and learn from that trader, however if you are yet to meet a genuine day trader in the flesh, or if you're struggling to find a genuine strategy to day trade forex, it's likely because day trading is the rarest and most difficult form of speculative short term trading. In fact, the term "day trading" was invented in the hype of the 1980's bull market mania and has survived the modern tech boom and commodities booms into was has become a sustained euphoria of lies regarding glamorous trading lifestyles and quick easy money. This giant industry wide hype continues to pass through each generation of novice and aspiring traders, making it now a widely accepted false reality for many financial market educators and retail traders.  

So heres where I give you a big reality check, the one you needed.  
Facts prove, almost 99% of day traders lose money using a common day trading strategy and the brokers promote it as this is where they make the serious money. They basically rely on market addicts and losers to make money from high frequency day traders, ever heard the word bucket shop? This pertains to firms that offer leveraged trading with small deposits, these firms don't even hedge your trades in the real market, they simply take the other side of your trade, and most often they win because you're stuck in the cycle of losers playing around as a 'wanna-be' day trader, go figure...  

Day trading forex has a low win rate and low strike rate  
Let me share with you something very important. Shorter timeframes allow for a high margin of error and require a high win rate and low risk reward, this makes the task of day trading extremely emotional, stressful and almost impossible. The reason is simply this; high volatility on small timeframes makes it easy to be stopped out of trades. It's ironic isn't it?, because day trading requires a high win rate since the risk reward available is so low. Remember, the lower the potential risk reward, the higher the win rate must be. This entire concept alone creates a casino situation which creates a genuine "houses edge", where the house being the broker, and the trader being the gambler.  

Intraday forex trading computers work against humans in this tightly controlled yet massive market. It's a market with huge players, banks and large companies who you play against every day, so what makes you think you can truly ever beat them, after all they own the market, not us small retail traders.  

Why day trading is most likely going to cause you financial ruin.  
I come back to my statement on trading short time frames intraday.  
The shorter the time variable the more random chance there is in the event, the more volatile it is, the harder it is to predict. That's why I have moved my trading on to larger timeframes as they offer a more predictable and more cumbersome slower moving market signal to work with,.  
Moving to higher time frames with your forex trading is the key to profits
As a 8 year veteran of the currency markets, if you choose to take my word for it, I will share with you something important, but pay attention.  

Ever thought that these bucket shop brokers make the industry this way to earn brokerage on the pip spreads?, Maybe they need you to lose to make money from your losses?, or maybe the majority of this crooked industry is just simply out of their mind and have no idea?, that's the more likely answer. I rarely come across anybody who has any idea what it takes to be a trader nor do I ever see a truly efficient trading platform, which aims to make trading simpler for the client, its all part of the plan they have to siphon off your money. I never see brokers promoting longer term strategies, you know, the stuff that truly works, they want to hide that from you, they want to hide the stuff that is easy to understand.  

Trading is not about following momentum and trading break outs, it is certainly not about using indicators, and it is not about trading news and economic data intraday, it is something unrelated to any of these, yet your unlikely to ever discover it amongst the hype of the brokers and the market education bandwagon.  

So what's the path to currency traders rehab?  
Let's firstly change your trading mindset altogether and move you into trading higher timeframes, period! Let's take your existing day trading mindset and throw it in the garbage and start from scratch. Lets get you to start following daily timeframe charts, and remove all your indicators and magical systems from the charts.   This article is designed to wake you up and get you to start exploring the other side of this industry, the position traders, the longer term approach in which we aim to capture multi day moves from the volatility of these great markets. The swing traders of this market make the largest profits, so it's time to learn how to get on board these multi day and multi week price moves, we must learn to tail ride the the hedge funds, the interbanks and the multinational companies all whom work together.  

I hope that wets your appetite so far  and has gotten you very excited about what may lie ahead for your trading if you're prepared to change your mindset and jump the fence from day trading to position trading with a simple set of price action strategies, ones which I can help you discover.


For more quality information and education on the art of swing trading trading higher timeframes and trading price action, you can visit my Forex Education and Training website Forex Trading Education.

 

For Media Enquiries Visit the Contact Us Section of My Website

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

 

Forex Market Open Times - How to Benefit Off it

By Cedric Welsch

Trading the foreign exchange market is now a very common way of earning an income from the comfort of your home office. And one of the keys to being successful is understanding about the forex market open times. If you want to get great results from your forex trading efforts, then understanding the ways that you can maximize your efforts is very important.

Forex trading is the short version for foreign exchange trading. What this means is that you make profits from selling one foreign currency or buying others. You normally trade in the top eight currencies in the world, which includes the British pound, US dollar, Japanese Yen, Canadian, Australian & New Zealand dollars, the Euro, and the Swiss franc.

The market that you work within is open 24 hours a day as the world markets are all open at differing times. This means that regardless of where you live, you can participate and earn profits on your trades. The market is open from Sunday night in Australia to Friday night in New York and it closes over the weekend.

Forex market open times are generally from eight in the morning until four in the afternoon in each particular country. While it is possible to trade at any time in 24 hours, the best times to trade are usually when there is the highest concentration of trading happening, as this is when you see the biggest gains.

The highest concentration of trades generally occurs when the biggest markets are open, and that means Tokyo, New York, and London. Therefore it is usually best if you are ready to trade when these markets are open and operational.

To really maximize your profits, it is even better to trade when more than one market is open at a time. There is really dynamic action that happens then. In order to work out when this is occurring, you can use time converters online, which show when markets around the world are open or shut.

Forex trading is really taking off as a way for people to either earn themselves a living income or a bit of extra pocket money. How it will work for you depends on the time that you put into understanding the system and the way that foreign exchange works. To make sure that you get the best results you can, you need to understand how to make the forex market open times work for you.

Do you want to know how to really make more profits with forex business? Make sure you get fresh currency updates ahead of everybody else. Go here: Forex News 

 

Also, you need to know how to read and analyze the trading market well. Learn Forex Analysis.

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

Forex Market Open Times - Take Advantage of Them

By Cedric Welsch

If you are just getting into the world of forex trading, then knowing about the forex market open times is an important part of ensuring you get the results that you are looking for. This style of internet based work is now so common because there is a massive capacity for making profits if you understand the way it works and learn as much as you can about the market.

Forex trading is short for foreign exchange trading and it deals with making profits off the trades that you make in pairs of currency. To be successful, you need to keep up to date with the market and be able to identify trends in the market.

The forex market is operational 24 hours a day, for five and a 1/2 days each week. It opens in Australia on Sunday night and it closes in New York on Friday evening. This means that you can make trades at any time in this window time. However, there are some strategies that you need to be aware of.

Forex market open times generally are between 8 in the morning until 4 in the afternoon in the country that the market is based in. This means that you can find markets that are open any time around the world in order to do your trading. Even though you are able to trade at any point in the day, it is best to trade when there is the highest concentration of trades going on.

In general, it is best to make your trades when one of the three largest markets is open for trading. The three biggest markets are London, Tokyo and New York. You want to trade during these times because that this is the period of time in which there is the most movement in exchange rates and therefore the most money to be made.

There is even more action taking place when two markets are operating at the same time. This is when you really want to be sitting up and taking notice of what is going on. There are time converters for forex trading available online, which can help you identify when markets are open and closed.

Getting into forex trading is a potentially very profitable business. The key to being successful is to understand the system and the way that everything works. Understanding how to work together with the forex market open time to maximize your results can help you become profitable more quickly and see impressive results for your work.

Do you want to know how to really make more profits with forex business? Make sure you get fresh currency updates ahead of everybody else. Go here: Forex News 

 

Also, you need to know how to read and analyze the trading market well. Learn Forex Analysis.

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

 

Factors That Drive the Forex Market

By Jeffrey Cochran

There are several factors that affect the forex market. One of the things you'll need to learn in the trade is to understand those factors that cause currency rates to fluctuate each day, and how to respond to them. Economic, political, social and natural factors that occur in a given country or region can either have a negative or positive effect on forex trade. Therefore, it is always important to keep abreast with such indicators. Normally, these indicators are released through forex authorities, financial institutions, government organs and private organizations.

Broadly, the factors can be studied as fundamental or technical analysis. Fundamental analysis looks at those factors at an outer scope while Technical analysis looks at a more internal range within the forex market. One of your duty as a trader is to analyze such factors and come up with a course of action whenever they arise. Information on forex indicators can be obtained from annual economic reports which are usually published by the government as a measure of country's economic growth, policies as well as major events. They can also be provided by financial institutions, forex authority or through your broker.

Among the commonly used indicators in forex markets is the GDP (Gross Product Domestic), which is the total market value of goods and services produced by workers and capital within a country during a given period of time. Others include country's exchange rate, level of unemployment and political stability. The exchange rate of a given country is the ratio of the value of goods and services that the country has imported, against the one that it has exported. Exchange rate is more swift, and so, it has a very dynamic effect on the day-to-day trend of forex trade rather than long-term.

Among industrial countries, Industrial reports acts as reliable indicators of economic movement in the forex exchange. The report shows variations in the production of goods in factories and other production utilities. It is considered healthy in forex market for the country when it is producing more than it is importing or consuming as the interest rate and the exchange rates will be ideal.

Another key factor that acts as an indicator of forex market performance is CPI (Consumer price Index). Consumer price Index is the average value of goods and services used by a common consumer. CPI takes into account more than 200 categories of items to indicate level of inflation. The report is normally of much importance not only among forex traders but also among the policy makers as reflects on the long-term economic growth trend in a country.

There are many other factors that affect forex trade. Although these indicators tend to relate to each other, the degree of impact on your trade may vary; and so, it is important to understand how each force works, and how to respond to each case. This will go along way in avoiding making huge loses and rather take profitable opportunities to grow your business.

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Factors Affecting Trends in The Forex Market

By Ryan Kaufman

The big-daddy of all markets is the foreign exchange or forex market. And since more people are investing in it, forex market is growing at a fast pace. This market can make millionaires in seconds but it is also the most volatile market to trade in. The dynamism of this market is huge and even small news can create large ripples.

If you plan to jump in the forex arena, then you should know about the factors which affect the trends of forex market. Currency movements can be very fast and you need to know all the factors to accurately predict the right direction of the trend. This helps you make the right move at the right time. Forex trends can be influenced by three prime factors. These are mentioned as follows:

Economic Factors
Economic situation of a country can heavily influence the trends in the currency market. Economic terms like budget, foreign policy, debt etc can trigger a mass reaction which can directly affect the forex market. The economic data is released everyday and its instant reaction can be seen on the currency market.

Key economic indicators such as gross domestic product (GDP), interest rates, unemployment rate, and consumer price index help project the overall economic health of the state. This can mould the attitude of the trader. If the data is positive, naturally, the trader will invest with high spirits.

Political Factors
Politics is directly related to economy because they are the policy makers. An unstable political sector can trigger negative reactions in the market. The time of election is considered to be the most troublesome for forex markets. Quick movements are observed during elections. Even local political events may lead to change in investor's attitude. Political factors surely have a deep impact on the currency market.

Psychological Factors
This is what drives the whole market and the investors. The speculation done by the investors is what keeps the market dynamic. Currency fluctuations depend on whether the trader wants to invest or not. If more people want to invest in the market, it will definitely result in high liquidity.

For instance, if an event has created turmoil in the region, then it is natural for the investors to invest somewhere else. They will definitely play the safe bet. It is usually, seen that when a country's economy looks promising, then large number of investors converge on the market to trade and thus country's currency becomes stronger.

Besides these, there are many other factors which affect the currency markets. People also tend to follow a long term trend and invest accordingly. They compare economic data over a period of time and then make their move. The foreign exchange market is highly volatile and unpredictable. If you wish to be a forex trader, then do devote time to learn the best strategies and tools required to successfully execute trades.

Be up to date with various current economic trends, both locally and internationally. An event anywhere in the world can affect the currency market. In order to reap benefits from this volatile yet lucrative market, you need to thoroughly understand the factors affecting the forex market.

If you would like more information on Forex Trading please Click Here.

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Recommendations Before Entering the Stock Or Forex Markets

By Mostafa Soleimanzadeh

You had better know that stock market and Forex market have good returns, but risk is also guaranteed. Therefore, keep the following recommendations in mind and then start your investments.

1 - It is not recommended to sell your capital and start trading gold, stocks or Forex symbols. It is not recommended to sell your car, house or company to trade in the Forex market.

2 - If you are not professional, do not take facilities and do not borrow from others to deal and trade in the Forex market.

3 - If you had no experience it is recommended to take a short-term investment class. Nowadays, there are so many classes specifically about the Forex.

4 - When you decide to trade, notice that trading in the Forex market is associated with risk and you may lose your money in the market so think seriously about this point.

5 - Do not think that miracles occur in the Forex trading market. There are some people try to give false information for their own benefit. Thus, get advice from which you trust and do not follow rumors.

6 - For example if you have 10 thousand dollars, you must select several symbols to trade. Thus, your risk is reduced. This distribution helps you reduce your risk.

7 - In daily transactions in the stock market or Forex market, do not involve with all budget. It is a very risky act because you may lose all money. It is recommended to use maximum 50% of your money in daily transactions.

8 - If the market occurred with fluctuated motions do not anything. Experienced traders in these positions don't sell or buy, but try to get more and true information about the market.

To be informed about how you can be successful in the stock market and forex market refer to our sites: Ideas about investing in the Stock Market and details about Trading in Forex Market

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

7 Characteristics of Forex Markets

By Adewale Olofinnika

What is forex? is the electronic medium of which one nation's currency is exchanged for that of another country. Another question, is forex market meant for every Jack and Harry? My answer is capital NO. Forex is a market of choice for those interested in trading as a profession and have the stomach to absorb financial risk or losses. Highlighted below are the characteristics of the market.

1. Liquidity: The market is highly liquid with money on the table round the clock (24/7/365) and your profiting from the market then depends on your scheming ability.

2. Tradable: Although, many currencies inter-play in the market, but there few tradable where the big dog hits their big target. In fact, there are four (4) dominant currency pairs and you need to specialise in one.

3. Equality: There is an equal playing field. That is the profit potentials in the market is equal for all players irrespective of the market situation whether bullish or bearish.

4. Manipulation: This is the only market known to man that is not subject to price manipulation. So, there is no entities that can adjust the market price to their favour.

5. TA: In this market, pure Technical Analysis work best compare to other market analyses or indicators.

6. Investment: You need a less capital or cash to start-up this business in comparison with other investment channels and their return on investment.

7. Leverage: Here, you have opportunity to trade with greater leverage as oppose to other markets. The minimum leverage is 100:1 and you can trade with greater leverage provided you know how to take care of the back sword (adverse effect).

Adewale Olofinnika is a multi-disciplinary professional, internet marketer and expert writer who has made a landmark in various niches on the internet. He is also a major player in some freelancer sites. Of paramount importance in all deals are professionalism, ethics, attention to details, integrity, uprightness etc.

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Forex Markets - Know the Fundamentals and Be Automated

By Matt Paul

Forex trading comes with many complexities and problems as the amount of traders expand all around due to power of modern technology. We all know the majority fail but the fact that most go that way is due to the fact many do not engage in learning the Forex Markets.

We can take this further to say that the amount of work that goes into knowing the fundamentals is just not done by an aspiring trader.


Forex Markets

What ever you do never start trading until you have done all your homework. Of course everyone will be eager to start of trading straight away and make profit from the Forex Markets. However not knowing the environment with the influence the worlds events have means a very short capital period during your trading career.

If your new, best advice you can get apart from having the capital is make sure you do your homework and understand how the markets work. It does not matter if you wish to use a Automated Software, for which I am a big fan. Learning the fundamentals and strategies allows you to have a greater chance of success.


Automated helps

One of the key parts of becoming a successful in Forex is getting the best tools. We have mentioned information which becomes a tool. Automated trading software is the same thing in that the right software gives you more options.

Automated trading allows you to trade more often 24/7 if you like. So, you can go about your life with profits running and losses maintained via your stop loss. No human emotion is taking you out of your trade or into one that you should not go, plus the software will allow you to implement the strategy you have chosen.

However, it is not that simple in the sense you will have to find the right software...believe me this is easier said then done.

Its not just a case of getting an Automated Forex Software, its a case of getting one that will provide a profit...a proven system http://www.forexthatworks.info

And don't forget about the fundamentals...its the cornerstone to successful profitable Forex. Get a free Forex Strategy at http://www.theforexway.com

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

Forex Trading - Basic Analysis and Strategies

By Budi Ferianto

Forex trading is the exchange with different currencies from around the world. At the forex market, meet individuals, companies and banks, who expect to gain profit from trading currencies. The basic of forex trading is to sell a currency and at the same time buy another. By waiting for the correct time for this business, traders can obtain perhaps large profits under some circumstances. The difficulty is to find the correct time.

Since it is also possible to make large losses under normal conditions by the wrong action, foreign currency brokers are adjusted, which are been versed with the forex trading and so they can assist traders. They could give experiences with the events at the market and to know around statistics and trends that can give statement about the exchange rate fluctuations.

To analyze the market situation, there are two different techniques, technical analysis and fundamental analysis. Although exchange rate fluctuations are affected by many factors, like e.g. economic developments, political events or the felt atmosphere at the market, then nevertheless only the pure effect at the market is crucial for the technical analysis. The reasons, which stand behind it, are unimportant. The fundamental analysis, however, deals almost exclusively with the causes of market fluctuations and takes their forecasts for the future price movement due to this.

Now, forex trading can in turn lead to two basic strategies: On the one hand traders can act with little risk, which always sell currencies at to some extent satisfyingly high price and so that make an appropriate profit. On the other hand traders can accept and try also a higher risk to predict the price movements somewhat more exactly. If a trader plays well with the prediction, then a very large profit can be obtained. However, if the presumption is wrong, then the loss is more serious. When choosing the right strategy, a forex broker should help you.

Forex trading therefore has its advantages and its pitfalls. With a reasonable method and the right sense, it may be a good source of income.

to find out more about forex trading basic tips, information, articles and news about forex, please visit http://forextradingbasic.com

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The Key to Dominating the Forex Market

The forex market is a great place to make some extra money even if you don't have the experience. What many traders are beginning to embrace and do is using currency exchange robots to do their trading for them. This is what you need to know about currency exchange robots, why they're effective, and whether or not they are for you.

The forex market keeps much longer hours than the traditional stock exchange. This is because it takes place over a number of international locations and markets. Because of this, the forex market technically remains open for a full 24 hours a day during the week and even extends long into the weekend, as well.

Because of this, it's important to be aware of the value of one currency to another for the vast majority of this time, making the forex market like a job and a half when it comes to just keeping on top of it.

Many traders turn to using currency exchange robots because they keep a full constant 24-hour watch over the market. When they detect a profitable trading opportunity, they trade accordingly and track that trade's performance in the market. Once the market turns out of your favor and that trade does with it, you'll begin losing money which is why these programs recognize this at the earliest possible indication and get out, thus protecting you from loss.

For all of this, currency exchange robots are ideal for beginner traders as well as those who don't have the time to devote to the market themselves. In fact many of the robots out today are designed with beginners in mind.

For an in depth review on what is the best of today's currency exchange robots click on this link in this paragraph and start on your path to financial independence today.

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Forex Trading - Forex Broker Frauds

Wherever there is money around, you find scams around it. If you are a trader in Forex market, this is not new for you. But if you are new to Forex trading then this is something you should know and be aware of.

You need a broker for trading in any financial market. Forex market is not regulated. So you need to be extra careful while choosing a broker.

You can follow the below points while choosing a broker.

1. Avoid brokers that belong to third world countries and those who don't even state where they are based.

2. I am hearing a lot of broker scams these days. Get all the details of the broker you want to choose. Strictly avoid them who do not give their full details including address and phone number.

3. The forex broker you choose can not trade against you. There are lot of brokers out there doing this. Be aware of this situation.

4. Do good research and read reviews on the broker you want to choose.

5. Observe what other traders think about him, his executions,and even inquire about the customer support he is offering. Visit his website and find out his details.

Remember that if the broker is allowing you to trade for just $100, then he might want you to have a big leverage. Using big leverage out of small amount is not a good idea.

You can get ripped off with a loss. You might lose your entire amount.

So go ahead and do deeper research to find good and solid forex brokers.

Get a review of the Most Popular Trading system software. Forex Trading System Reviews is the place to visit.

See Which Trading Software REALLY Works! Visit forex-trading-system-reviews.com

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