Forex" is the informal term for the foreign currency markets, which are extremely accessible to anyone with a computer. Read on to discover the basics of forex, and some ways you can make money by trading.



If you want to get some good looking revenue, you need to make sure that you are in control of your emotions at all times. Don't think about earlier deficits and spend your time trying to avenge them. When working in a foreign exchange market, you are going to have ups and downs constantly.




If you want to pursue forex trading, one thing you should do is to recognize the three different types of markets. These include up trending, range bound, and down. You should aim to have different strategies for each of these different types if you plan on being successful doing forex trading.



Don't let your emotions get the better of you when you are trading, or else you will find yourself looking at significant losses. You can't get revenge on the market or teach it a lesson. Keep a calm, rational perspective on the market, and you'll find that you end up doing better over the long term.



Don't allow a few successful trades to inflate your ego causing you to over-trade. A few successes does not mean that you will never lose. Too many novice traders taste victory and decide to go all in and then they lose big. If you run into consecutive losses like that, just step away for a day or two and return and remind yourself that you are never guaranteed success in trading even if it has happened to you before.



Emotion is not part of a forex trading strategy, so do not let fear, greed, or hope dictate your trades. Follow your plan, not your emotions. Trading with your emotions always leads you astray and is not part of a successful forex trading strategy for making a lot of money.



Find out who is behind your broker for more safety. Your broker probably works with a bank or a financial institution. Find out if this bank is located in the U.S. and if they have a good reputation. A foreign bank or an establishment with a bad history should be red flags and you should move on to another broker.



Forex trading should only be attempted by those who can truly afford to experience some degree of financial loss. While trading losses are not a complete inevitability, they are likely to occur at one point or another, and therefore it is important that they come out of savings, not essential funds. By using only surplus money for trading, it is possible to learn a great deal without risking one's livelihood.



To succeed with forex trading, you need to set boundaries for your investment budget and then further research which markets that you understand. Taking some extra time to research companies you know about, will help you to produce a sound investment strategy. Make sure that you are not investing more than you need to survive, as you may find you need those extra funds for an emergency.



A common error made by traders in the foreign exchange currency markets is to try to successfully target the tops and bottoms in the market before they are clearly formed. This strategy has defeated many savvy investors since the highs and lows are very illusive to define. A better approach, that can reduce your risk, is to let the tops and bottoms clearly take shape before establishing your position. Doing so will heighten your chance to walk away with profits from the transaction.



The momentum line in Forex is always at least one step ahead of the price movement. The momentum line will lead either the advance or decline in prices, so remember to pay attention to this line before you attempt to lock in any trade. Ignoring it may result in some pretty big losses in Forex.



If you are in a long position and the market is moving in the upward direction, do not double up your trades. Do the opposite. Buy fewer currency units. Adding more trades to your account can put you in the position of disastrous consequences.



Choose the right professionals to help you. You need a good Forex broker to guide you in your trading career, and you'll need a pro-trader to help you learn the Forex signals. Keep your eyes open while you are practicing your skills on your demo account. This is the time to make good connections with people who can help you in your Forex career.



Choose your Forex trading broker with great care. Be sure that s/he has the proper authorization and is correctly connected with a major financial institution. Look at the price spread of the broker you are considering. It should be neither too low nor too high. A price spread that is too low will cause your broker to be tempted to increase the profit margin in clandestine ways. A price spread that is too high will not be good for your profit margin.



Before entering a trade, you should establish a risk and reward ratio. This ratio will indicate how much money you are willing to lose, in comparison to how much you could potentially make. You need to look for positions where the potential gain is much higher than the potential loss.



When money is involved, emotions can often run high. And when emotions run high, we don't always make the most logical decisions. Successful traders with excellent money management skills, therefore, have learned to walk away from the "trading table," so to speak, when their emotions are running high and wait until they're in a calmer state of mind before making trading decisions.



Having a written plan that allows you the freedom to take advantage of every opportunity to improve your results in forex trading is an important goal for every trader. Clearly outline your goals with a definite timeline and you will be less likely to just take a shot without thinking things through.



Unlike traditional stock market trades, Forex involves global trading. You'll be dealing with trades from all over the world. With patience and self-discipline, you can use these tips to generate higher profits from your forex trades.z35W7z4v9z8w

If you are currency trading using a system, keep the system as simple as possible. The more complicated the trading system, the more likely it is to fail. Putting too much effort into trading does not guarantee success, so it is best to work smarter rather than harder to achieve the results desired.



When trading forex start out with a small sum of money that you are willing to lose. If you make good trading choices you can use the profits to increase the size of your account. This allows you to get a good feel of the market without taking a big risk.





Pick one of the big markets when you start trading with Forex. New York, London, Tokyo, Singapore and Germany are all big players in the Foreign Exchange Market. Try to avoid the really small markets. The smallest you should deal with is a market like Hong Kong, holding roughly 4% of the market.




Relative strength indices will help give you an idea of the average losses or gains of certain markets. It doesn't quite display your investment, but does clue you in on the profitability of certain markets. You should probably avoid markets that historically don't show much profit.



With all of the information you just read about forex, you should start feeling confident with understanding a few ways that you can go about making some money through forex. Remember that the only way you're going to see success, is if you actually take the initiative. Be sure that you apply all that you know and you should have no problem becoming successful.

For a long time, little was known about online Forex trading. Mostly wealthier individuals and companies were the only ones investing because large amounts of money are needed to invest in order to actually make a profit. Now, however, many individuals are becoming interested in the online Forex trading market because it is an easy way to make money.


A person can invest a smaller amount of money than larger companies and still make a small profit. They then choose to invest the same amount of money in addition to the profit they just made, and slowly work on building up their money so that they can invest larger sums of money.

In order to trade in the Forex market, one must open up an account for the market, and having a broker is a necessity. There are several articles available online that can help individuals figure out all of the details about how to choose a broker and what they need to consider when opening up an account.

For example, many brokers charge fees. For most, there is a fee for every single trade. This is relatively insignificant when a person is only interested in investing a small sum of money, and then letting it sit for a while. If a person only plans on making a few trades, this probably does not seem important.

On the other hand, many investors like to jump right in, or they wind up making more trades over time, they will need to take this into consideration to make sure that they do not wind up losing money.

The online Forex market is a great way to make money, but it can also be a quick way to lose money as well. If a person makes the wrong trade or does not understand how the market works, they can quickly wind up with almost no money.

This is one of the most important reasons that individuals are encouraged to read as much as they can about this form of investing before taking the steps to open an account. There are several software programs available that are becoming increasingly popular as more individuals are choosing to jump into the market.

These programs help keep an eye on the market, and can then let individuals know when is the best time to make a trade. Most of them include data tools that are used to formulate reports about the market and can help identify market trends. Some even take things a step further by having the option to make a trade for users.

With these programs, the users have to do almost nothing. They simply install the program, set the settings, and then decide whether they are comfortable with the robot making the trades for them. It can really be that simple.

Online Forex trading continues to increase in popularity among the average joe now that the internet allows any person to trade one currency for another. The invention of the internet has opened up this opportunity to allow every individual to enjoy making money through this market, and software programs continue to make it easier than ever before.

Sakura FX is one of the most trusted companies that is used on a regular basis for FX trading software. They offer a wide variety of solution for clients, and pride themselves on making sure that every single customer is satisfied. If a customer is not happy with a product, they can easily cancel their subscription; there is no long term commitment required. This well-known company also offers the most innovative trading platform, and other programs, such as money management to assist customers in every aspect of their trading accounts. Contact information for customers can be found quickly and easily on their website if potential customers have any questions

In today's article, I would like to summarize several important points that helped me quickly to become a better trader in the area of automated trading. Some of the points might be a little bit surprising, but I believe that there will be interesting topics you can think about.

1. COOPERATION


There isn't any other thing that would help me to improve my own trading so dramatically as cooperation with other traders. In the past, I used to be an unapproachable trader, proud of my self-sufficiency. On the other side, I got the opportunity to work with other, really skilled people, and I consider this to be the best what could happen to me and to my colleagues.

Team spirit and cooperation with people, that are on the same wavelength, where every team member has his unique skills, extraordinary experience, and know-how, this all can perform miracles. This experience has also taught me to be much more open in other projects. The trust is, of course, crucial, and in my case, it takes always a long time before my co-workers deserve my full trust. What I have always cared about, was their broad- and open-mindedness, because these are, according to my experience, the most important values that my co-workers need to have (and their high level of skills, of course).

When looking for co-workers, I recommend not to hurry and slowly test their limits, especially when it comes to their skills. It is also important to work with people, that understand trading and have real experience in trading, as well as experience in live trading - without this experience there wouldn't be enough of pragmatism, caution, and care (as beginning traders without any real experience are rather naive).

2. PAPER, PEN AND CHART SCREENSHOTS

I probably couldn't count a number of trading hours that I spent just with paper, pen and chart screenshots.

I have found out that this old-fashioned technique is really powerful. You are not disrupted by other tasks, you don't over-complicate things and you can focus on what is really important.

Mostly, I print out the chart containing several indicators, trades or breakout levels and I just think about them - if I get any idea for a rule, system, or how to make the trades better. I just let my creative part of my brain flow and I make notes.

I spend all day making notes (you can get really a lot of ideas within a day), then I move to the computer and start to work and test those ideas.

Trading is, to a certain level, a creative process and pen and a paper have really improved my trading more that I can even admit to myself.

3. MARKET SYSTEM ANALYZER

Successful automated trading is about a portfolio. It is about the ability to see the bigger picture.

I have learned this in the moment when I started to put my strategies together and test the output of the combinations, using Monte Carlo Analysis.

The portfolio is the key. Some of the strategies will fail in the future - that is a reality that even the best traders in the world have to face. Thanks to my international project I am in personal contact with several of them and I can say that all of them have in their portfolio constantly about 20% of the strategies failing. It is the part of trading. On the other side, high-quality, diversified portfolio and sufficient capitalization that is based on the Monte Carlo Analysis, make this unpleasant reality quite bearable. In a good, diversified, portfolio, the failing strategies never make too much harm and they only represent a small, acceptable, risk. Using Market System Analyzer I have learned really a lot, especially to be able to see the bigger picture and understand the wider consequences. Think big, not small.

4. LOSING TRADES

I know that none of us likes losing trades and drawdowns - and who should.

On the other side, even these unpleasant moments have their positive impact. When you experience drawdowns, you can be depressed, or you can take it as a great moment and an opportunity to get better, to improve your strategies and all your trading.

Personally, every time when all goes well and my equity grows, I have tendencies to get lazy and practically forget about trading. But trading is a highly-competitive business and it is always good to spend a couple hours with trading every day - even in the good times. For me, the losing period is always an impulse when it is time for improvement. This is why I see in losing periods lot of positive, lot of opportunities.

Mostly, during the losing period, I go through the most recent losing trades that caused the drawdown and I start questioning myself - why did that happen? I start to compare the trades, check volume, volatility, thinking what has changed. Sometimes, I just observe and wait what pops up in my mind. Sometimes, I just let the things absorb (to get some space for an idea). Either way, sooner or later comes some idea - and that moves me forward. As you can see, even losing trades can be beneficial, if we are willing to learn something new.

And that really is all for today.

Happy trading.

Tomas Nesnidal is a European trader and developer, with 10+ years of full-time trading experience. You can download an example of his strategy for FREE on his blog

This automated software negates the need for human traders to be present, allowing trades all over the world to be executed by a computer system. Using the right program will also allow you to tweak the technical parameters and amend lot size, risk parameters, stop losses and take profits.

First coined during the emergence of online retail exchange in the late 1990s, automated trading systems - sometimes known as 'machine' or 'black box' platforms- use algorithms to dictate the timing, pricing and quantity of the order so they can be initiated automatically.


Fully-automated software will enable you to buy and sell across a myriad of markets and time frames. The benefit of automated trading is that it remains entirely unaffected by psychological elements, unlike human traders. Besides, computers generate more trades per market than you yourself would be capable of.

But if you're new to Forex trading, how do you know which one to invest in?
Many leading developers will fully utilise their online sites, allowing their software to be downloaded or purchased through the page.

You will also be able to discover details about their company, and whether they are a trusted and reputable source. Unfortunately, the Forex marketplace is highly attractive to scammers, so it's important to fully scope out a company before giving them access to your personal details. Have a look through their credentials and any customer testimonials that might be listed.

The most user-friendly programs will require no previous experience, so look out for products which advertise this. They should also be compatible with all PC types, but double check with a customer-service representative through their online chat facility or helpline number if you're unsure.

Try to find a development company who offer a free trial of their software. This will enable you to get to grips with how it works without committing to anything. You should also check that by signing up for a free trial, you're not then going to be billed at the end of that period should you forget to cancel your membership. The best companies should provide a 'stop at any time' policy.

Henceforth, their fees should be affordable. You may want to shop around to find the best deal, but again, be sure you are using a licensed company before you sign up, no matter how small their fees. Ensure they also advertise 'secure downloading' as you won't want to find that your computer has been infected with a virus or hacked into.

The most effective trading platforms will be able to monitor your stats 24/7, which is what you want from an automated system. Make sure this is the case before you make a purchase so that you know your trades will be well managed.

Try and find a development company who've integrated all their advantages into one trading solution - there should be auto stop loss functions, no back tests or historical data, and the software should be fully adapted to the hectic current exchange market. The program should also come fully loaded with optimised default settings for your charts, so you don't have to spend time customising it.

You will be able to choose from micro, mini and standard sized lots, so make sure you assess all your options and the different prices advertised.

Using effective, safe software is the best way to make money in the Forex market; you can make daily trades with steady growth, at a minimal risk. Just make sure you spend time researching your options before you commit.

Sakura FX Trading provides trading solutions to clients all over the world. Since their inception, they have been successfully helping both individuals and corporations to generate profit and grow revenue in the Forex marketplace.Having served over 1200 customers worldwide, the company have recently been acclaimed the best Forex trade copy service of 2016, and are fast establishing a prestigious reputation across the globe. The company prides itself on offering the best customer support and technical advice, while allowing traders access to their user-friendly, safe and effective software for those with minimal experience or time

In this article I would like to present to you the best principles one should focus on in filtering what makes an automated Forex trading system a consistent winner throughout the years, after its creation during real live trading. There are certain metrics and concepts that are available and can show us which strategy is likely to perform well when real money is put on the table. They are a total of 5 and every one of them is important and one cannot make up for another one. Let`s start!

Long-term backtesting


The best auto systems have performed well during a wide variety of market occasions. As we all know from experience markets are always changing from quiet to volatile, from trending to sideways and corrective, from uptrend to downtrend etc. When a trader backtests a system during all mentioned market cycles it gives more confidence that it would gain again in the future. The longer the backtest period, the better.

It is imperative to check as many different market scenarios beforehand as possible, which can be done only using a large time span for backtesting. There is no minimum threshold for the number of years, but at least 5 years must be covered regardless of the trading strategy.

Simple trading logic

Many automated strategies fail because they are just curve fitted to the past data. Fooling yourselves with a great looking equity curve on backtesting is not very lucrative and can be avoided. We should bear in mind that we are examining a past period in order to exploit the fact that the markets tend to be similar over the years. Similar, not exactly the same!

Different market patterns could be tracked back many, many years ago - like double tops and bottoms, head and shoulders, etc. Since the markets act similarly, we should leave them a breathing space to do so and not to expect a strong bull trend 5 years ago to be repeated exactly the same next year. One of the ways for giving the leeway is using simple trading logic without having a lot of inputs. From 2 to 3 major settings are more than enough if we want to remain within the simple area.

If an auto Forex trading system has 7 major inputs and each of them can be set up in 10 different levels, then we can end up with 10x10x10x10x10x10x10 or 10 000 000 possible sets. We can agree that out of so many different results at least few of them would be very profitable. The important question here is what is the likelihood of these sets to remain winning in the foreseeable future. The less degree of freedom (inputs) the lesser the chances of overfitting the past data (bigger the leeway).

Robustness test

After its creation every Forex system should be tested for its robustness. There are many ways that could be applied and I would like to share with you the one that is most difficult to pass and thus most secure.

Changing the chosen inputs by a lot would give us the needed confirmation whether we have curve fitted or not. Since the markets are similar we should expect them to behave a little bit different compared to the backtested period. By changing the settings we are checking if our automated Forex strategy would perform good if the market conditions are different. If a small change in inputs results in a big difference in the end results, it signals to us very loudly that the system will be profitable only if the market conditions repeat 100% from the backtested period, which for sure no one is expecting.

It shouldn't be expected that every single set of inputs will be profitable either. The greater the change of settings and subsequent good looking equity curve, the more robust the Forex strategy. For example if the entry inputs are changed by 220% and the system remains profitable - this is the kind of behavior we would like to see, to call a system robust, not curvefitted.

Not broker/spread and slippage dependency

When an auto Forex trading strategy is a high-frequent trader and thus has a very low average trade measured in pips, then the real-time performance is very dependent on the commissions we pay to the broker, the spreads we are working with and the slippage. The latter could be severe when it comes to publishing important news like non-farm payrolls and interest rates updates. Since the backtest environment cannot simulate 100% the real trading conditions because of using only fixed spread, no slippage, etc. one would need a long time of live trading in order to see whether this particular system is profitable or not. It is a kind of a validation test after the backtest. Most scalpers and arbitrage systems fall into this category.

You can avoid deterioration of live results compared to backtest by focusing on systems with high average trade in pips. Like 4+ pips as a bare minimum and choosing a realistic or even bigger spread during the backtest. These precautions will put you in a safe zone and you will get similar to backtested results in your live trading. Thus even a big slippage and occasional wide spread will eat only a small part of your profits. If you subtract 0.5 pips slippage from your 4 pip average trade, there would be enough remaining for you. If you are working with 0.5 pips average trade, then it can lose all profits in spreads and slippage.

Avoiding dangerous approaches

Long-term profitable automated systems usually don't use any of the approaches I will include in this section. By avoiding them, one will save a lot of money. They may seem compelling sometimes but most of them just increase the risk in order to create more profits and Return/Risk ration won't go up.

- Martingale money management: you are increasing your risk when a losing trade occurs.

- Averaging up/down: you are adding to a losing trade.

- Tight profit target: your take profit is set to 1-2 pips.

- No Stop Loss: you don't limit your losses.

- Tight Stop Loss: you don't allow the market to fluctuate and often you are stopped out.

Summary

By applying all the above mentioned approaches the odds of successful real-time trading are much, much greater. If a trader backtests a simple, not dangerous system for a long period of time and it passes the robustness test, then the odds are in his favor. It is a very conservative approach and most of the automated Forex systems will fail to pass the test and this is the way it should be - only a very small proposition of trading strategies is making money long-term and our task is to focus only on them by filtering the rest.

You will find quite a few products out there that fall into this category. You need to be careful though to ensure what you get is going to really help you. Take the time to learn what particular FX trading software programs offer. If available, explore the features with the demo so you can find out if you like it or not.


User Friendly
Don't waste your time with FX trading software that is difficult to understand or to navigate. There are plenty of wonderful programs out there with a simple to follow navigation process. They also have tutorials and free support so you can always ask questions or gain new information when you need it.

It doesn't make sense to struggle with the FX trading software when there is something so easy to use out there. In reality, many people have the misconception that Forex trading has to be difficult. Therefore, they assume understanding the program they use has to be that way too but it simply isn't true.

Fast Transactions
Speed should be a factor that influences your choice of FX trading software. You will quickly become frustrated if you have to wait for long periods of time for each of your entries to materialize. When the transactions are done quickly, it allows you to get more done in less time. Look for a program that allows you to have many fields pre-filled in.

Then you only have to change those areas or add specific details. For those trades you engage in often, this will save you plenty of data entry. It is a very efficient way for you to see the results you want without a great deal of input. The more you enter in the beginning, the less you have to enter when you repeat those types of transactions later on.

Set your Details
It is a good idea to use a program that allows you to set details and filters. For example, you can set the parameters for the level of risk you would like to take. This includes limits and rates. With a stop-loss element in place, you never have to worry that you must get into your system and make some changes and trades in a hurry.
You can relax and know it is all taken care of for you. Make sure the program you have offers you an optimum level of security and overall safety too. Don't use any program that has a bad reputation for personal and financial details being compromised.

Easy to Track it All
Only use FX trading software that makes it easy to track it all. You should be able to customise reports so you can see the details of your investments. You should be able to see the costs involved, your returns, what you have purchased, what you have sold, and other details that help you determine your next steps.

This data is important to collect and to evaluate on a regular basis. It will help you to see what you are doing well when it comes to Forex trading. It can help you determine if you need to make some changes to your overall strategy or if what you have in motion is working in your favour overall.

It doesn't matter what your experience is with Forex trading, you can count on us at [http://www.sakura-fxtrading.com] to help you get the best possible results. We have excellent software to assist you with your trading efforts and to help you get the best possible results. You don't have to pay someone to do the trading for you. With the right system at your fingertips, you can do it on your own. You don't need to be a trading expert to have fun, to develop a strategy to grow your nest egg, or to be able to track your investments and results.