A Reality Check about Automated Forex Trading Systems

We love automated Forex trading systems, but as professional currency traders at ForexTradingSuccess we believe that it is important to outline a few truths about them, which we feel are sorely lacking on the internet these days.

As you are reading this, you will no doubt have come across hundreds if not thousands of other web sites or blogs, which promote Forex robots or automated trading systems. There is so much hype associated with some of these Forex systems these days that you could almost choke on it. Most of these web sites are amateur sites that seem to focus on a just few automated systems like FAP Turbo and Forex MegaDroid, that tell you why these automated trading systems are not scams, and only go on to highlight the good points without drawing attention to some of the less positive issues about automated Forex trading systems in general. We also find that the official web pages of most new automated Forex systems show fantastic financial returns and claim or insinuate that all you have to do to make similar profits is plug in the expert advisor into your MetaTrader platform and then let the cash roll in. We feel it is not only dangerous to make or insinuate these claims, but also morally and factually wrong.

What is reality?
The reality is that you will not make a fortune over night trading Forex, whether from using a Forex trading robot or automated system, or even from using a manual trading system. If you are using a good automated Forex trading system you can expect to make between 5-25% return on capital per month. Even then, don't expect every month to be a winner! This is the reality of trading Forex. Furthermore, it should also be pointed out that many of the automated forex trading systems currently available on the market actually result in traders losing a great deal of money.

The second reality is that those one-page sales letter web sites that show or insinuate $3,000, $5,000 or $10,000 in regular profits from a single Forex trade fail to mention that you need substantial investment capital in the first place to achieve these returns. To make $5,000 on a single trade you would need to risk several thousand dollars on that trade (that you could also lose), and even then this should represent no more than 1-2% of your capital base. The reality is that these large trade profits are only going to be achieved from trading with a capital base of tens of thousands of dollars! Again, this is far beyond what the average Forex trader can expect to make using an automated trading system.

Fortunately, it's not all bad news about automated trading systems. Some of the more positive points about them are as follows.

Automated Forex trading systems offer people an excellent way to start making money from the Forex market, particularly those who do not have the knowledge or time to spend on learning the intricacies of Forex trading. They are ideal, therefore, for those people who have busy full time jobs and are looking for a way to make additional income.

The Forex market is a 24/5 business. So, even those traders who like to trade using a manual trading system can't trade all day. Automated systems allow a trader to trade 24 hours a day every day of the week. A number of good Forex trades therefore can be captured using a robot whilst a trader is sleeping or doing something else. They also allow for multiple currency pairs to be traded in various time frames all at the same time.

Automated Forex systems remove human emotion from the trading equation. One of the biggest factors causing traders to lose money from manually trading Forex is their emotions, causing them to do things they should not do. Robots therefore stick to the rules of a trading system unlike most Forex traders.

An automated Forex trading system can be an excellent complement to a manual trading system. So, when a trader is making losses with a manual trading system, an automated Forex trading system could help offset those losses against trading gains, particularly if they are trading on different currency pairs.

In summary, automated trading systems can be a great way for someone to indulge in the Forex market for the first time and/or to achieve a second stream of income. However, trading with automated systems is not a quick win game. It is not easy money, it is not a sure thing, and it is not a one way bet. Many robot developers and their marketing people want you to think otherwise. Furthermore, the promoters of automated Forex systems fail to mention that to make a lot of money trading Forex you are going to need a lot of money to invest in the first place. Forex is a difficult profession. It takes skill, capital and time and even then success is not guaranteed. So, be careful, don't be gullible and don't believe everything you read. Do take your time choosing your automated trading system and choose your system wisely.

By Andrew Searle

3 Things You Need to Know to Succeed in Forex Trading Online

Firstly, never succumb to the 'gamblers addiction' when you are trading online in Forex. This is the downfall of perhaps hundreds of people who go into the Forex market without any sense of money management. Do not take unnecessary risks because taking risks means you are not thinking. You are not thinking about market psychology, prospects, the global political economic climate, market movements, currency behaviour and trends all over the world. You need to think to take calculated risks and there is no such thing as hope in the Fx market. Hope is the arena of the weak and the foolish because it has connotations of not knowing what you are doing. When you are dealing with your money, your time and the fate of your future, you have to know exactly what you are doing.

Do not be afraid to pull out when things go sour and save what capital you have left for another day of investing. Take advantage of the wonderful liquidity of the Forex market, pull out when the signs are bad and weather the storm from a distance. This is especially true if you are new at this game and are not experienced enough to spot the safety signs and capitalise on a panicky market. Assess the situation and your own expertise and make the right moves, even if the move is for you wait out and see. Once you are able to learn the inherent patterns of the market and how the psychology of the big players will affect market movements, then you can plan ahead and make bigger risks. Speaking of risks, you also need to have some sort of risk capital at the ready.

Disaster might strike at any time, that is the reality of any commodities investments, and you need to be prepared. It is like going into the storm without a raincoat. Have some risk capital on the side, preferably 20 - 30% of what you are investing and make sure you have great money management skills to go along side it. With risk capital you are able to pump in money on safe currency pairings when your risky moves do not go as planned. Recouping your losses is quite impossible when you have no more money to do so and owing money to your broker is quite a bad position to be in.

The last thing you need to know (in this article, there are plenty of other factors that need to be weighed in) is that the market is affected by a great many things, and you need to keep your finger on the political and economic pulse of the world. Inflation, price movements, consumer trends, political upheavals - they all play a part in influencing currency movements and exchange rates, and this is the bread and butter of your investment strategies. The best FX traders constantly are in the know about political and economic situations, and they can often predict the movements and growth of certain currencies due to their global analysis. This is the person you have to be in order to succeed in Forex online trading.

By chris M Lee

Forex Power Strategy

Turn chaos into profit with your own escape vehicle.

Instead of sitting back and waiting out the next few years, wouldn't you rather take charge of the situation and come out the end of the tunnel financially set for life?

It really isn't any harder to make money in bad times than in good times, you just have to know what to look for and what to do when you find it. The fact is, when so many people are losing money during bad times, it isn't really "lost" at all. That money has simply found a new home...going directly into the pockets of people who know how to turn chaos into profit.

About 2 years ago I discovered an amazing way to earn money in the foreign exchange markets. It works very nicely in calm markets, but it works even better in crazy, chaotic markets...like those we are experiencing now.

I have carefully tested this method and it simply works. The profits have been sizable and-best of all-dependable. This process is so simple that I could teach it to anyone...even my 82 year-old grandmother.

Of course, all of the normal legal disclaimers apply. Trading is inherently risky. Past performance does not guarantee future results. Be sure to read the full legal disclaimer before purchasing. Investing isn't for everyone.

If you are ready to learn a new way to invest then check it out further Click Here!

By Becky Wild

Making Money on the Internet

When the internet first started, there were a few lucky people who were able to take its full potential and made a lot of money out of it. These online businessmen pioneers were there to see how powerful the internet can be and took advantage of it right away. Today however, you will see that almost every type of online businesses is congested. There are simply too much competition and you need to double your efforts in order for your online business to stand out from the rest. If you want to make money online today, then you may want to try out new forms of income making businesses from the internet.

So, just what are the new ways to make money online?

First of all, if you have a new kind of online business that only few people know about, then you can be sure that you will be able to take a big slice of the big pie. In the internet, being the first is the one who will always profit. You should be able to take advantage of something that has potential early on in order for you to avoid a lot of competition.

So, here are some of the new ways to make money online.

The first is by becoming an online stock or FOREX trader. Thanks to the power of the internet, the stock market and the FOREX market have made available for everyone to trade. Also, you don't even need to have hundreds of thousands of dollars in order for you to start investing in the stock market or even in the FOREX market. With a few hundred dollars, you can start trading.

Today, you will see that there are quite a lot of online stock and FOREX brokerage websites that offer online stock or FOREX trading. What you need to do is sign up with the website, open an account, invest a minimum amount of money, and start trading.

All these things can happen right at the comforts of your own home. As you can see, you don't need to be on the market floor to trade, and you don't even have to own a multinational company to do so. With a computer with an active internet connection and some money to invest, you will be able to start trading stocks or currency.

Another new way to make money online is by becoming a blogger. Many companies today are now trying to outsource man power because it is a lot cheaper and more efficient to do so. Besides, by outsourcing things that are not really that vital for the company, you will be able to free up more office space that can be used for things that are vital for the survival of the company, such as expanding the research and development department.

Bloggers are one of the positions that companies today outsource. Although it is not really an important part of the company, you have to remember that many people today are now visiting the World Wide Web. Even if a company is already well known and has a steady flow of consumers, you have to remember that they will do whatever it takes in order to get more people to buy from them. So, because people are constantly visiting the internet today, companies will hire bloggers to write about their products and posting it on various websites that are owned by the company.

The great thing about being a blogger is that the pay is actually quite good, and you will be able to work right at the comforts of your own home.

As you can see, there are quite a lot of ways to earn money online. These are just some of the new forms of income generating jobs and businesses from the internet that you can try.

By Carroll Willis

On Wanting To Dabble In the Forex Game

Mr. Smith is interested in possibly looking into buying and selling foreign currencies as a sideline. To start with, he just wants to try things out in a small way on paper to see if he could make a profit before really playing for money.

Mr. Smith does not relish the thought of studying all types of forex jargon and complicated expressions. Consequently, he has to know at least something to get him started. Here are some words which people like Mr Smith may wish to be conversant with.

When looking at a forex quote, there are always two currencies involved. These are the Base currency and the Quote currency. When looking at a forex quote of say CAD/USD, the second currency is base currency. Therefore in this case, the Canadian Dollar would be worth (depending on the rate), X American Dollars.

The Bid price is the price when you are buying (going Long)a currency pair, and the Ask price when you are selling a currency pair (going Short). The difference between the bidding price and the asking price is called the Spread.

Often you hear the mention of the Non Farm Payroll Report. This is a report by the Bureau of Labour Statistics in which can be found the position of monthly gained or lost jobs in the USA, but excluding the farm jobs. Furthermore, it gives the unemployment percentage rate position as well as the average hourly earnings. Employment changes are included.

The initial sum of money invested is called the Principal Value. In case you are not sure what GDP stands for, it is The Gross Domestic Product and it refers to the extent of the income of the nation and its production and manufacturing within its borders. The middleman acting between the retail trade and the commercial institutions is called the Broker and the fee he charges his clients for dealing for them is called Commision.

Often you hear the word Cabel. It is used when referring to the GBP/USD currency pair. It goes back to the days in the 1800s when the dollar/pound sterling exchange rate was done by using a transatlantic cable.

Resistance and Support are often mentioned. Take two lines, one at the top of the other. At the top line the resistance and the bottom line the support. If the price goes over the top line level then that level is automatically the new support level. Naturally if the price goes beyond the support level, then the opposite is the case.

A Bull market denotes an increase in price and a Bear market is the opposite. This expression is being used constantly and is really quite easy to understand for almost everyone who speaks fluent English. Although frequently mentioned, there are a number of people who do not completely know the meaning of Bank Rate. It is the rate which the Central Bank of the country will lend money to the domestic banks there. Another expression is the Rally and this refers to the time when prices climb higher.

SWIFT is the short for Society for Worldwide International Telecommunication and is used for sending money from one country to another, the money is being sent within the United Kingdom then it is usually sent via CHAPS which stands for Clearing House Automated System.

Good luck to those who will be like Mr Smith and dabble a little in the Forex game, but later when and if they get a taste for it, they must study in earnest and learn a whole lot more of course.

By Paul Dubsky

Adopt a Smart Approach to Forex Capital Markets

This article is focused at those Forex traders and aspiring Forex traders who are looking at entering Forex market with an intention of building a long terms career in it. We will discuss the importance of narrowed down research, amount of research and the learning to put the research to identifying and entering winning trades with available funds. In short - adopting a smart approach to Forex Markets

Be convinced that Forex trading is 80% about research. Also your ability to do an honest self appraisal of your current position in the market and what you are capable of achieving in the market situation will also do you a lot of good.

Before you begin to research, make sure you know what are looking for! Focused researching of information will mean you will not be wasting time on reading through information and the data that you do not really need.

Keep five things into consideration while doing your research. They are (i) Identifying the trade (ii) in-depth fundamental analyses of the trade (iii) financial analysis of the trade (iv) assessing the potential trade as against the existing real market conditions and (iv) managing the open position until it's time exit the trade.

If an capital investor or Forex broker keeps the above factors in mind, he/she will be able to carry out the research that will be far more fine-tuned and it will help him to upgrade and enhance the quality of trading.

If you want to become a successful Forex trader you will also have to learn to be honest with yourself in assessing the size of your trading capital. You will have to accept and understand that you cannot trade on every opportunity, since you have limited funds so you will have to be smart about selecting the trades that you do enter.

As a smart Forex trader you will also need to decide on just how much research and data is right for you to gain enough leverage about the market. This will help you make a lot more winning trades. Also, understand about your own trading style. It finally boils down to your approach.

By Vahid Chaychi

What is Forex

If you read about investing, you've seen the word forex pop up. But because forex doesn't get much publicity in the major publications and websites, many investors don't know that forex is just short for "foreign exchange." So trading the forex market is simply trading foreign currencies. As recently as ten years ago, currency trading had high barriers to entry, so only large banking and institutional firms had access to the tools and systems required to play in the forex game. Recently, however, technology has developed to the point that any individual investor can hop right in and trade with one of the many online platforms.

When buying and selling in the forex market, you'll see that there are four "currency pairs" that dominate the percentage of trades. Those four are the Euro vs U.S. Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Pound.

The goal when investing in currency is to be holding a currency that appreciates in value in relation to the other currencies. To use an overly simplistic example, if you bought 50 British Pounds for 100 US Dollars, held the Pounds for 1 week, and in that period the value of Pounds increased in relation to US Dollars, you could then convert those Pounds back into dollars for, say, $120.

Unlike the domestic stock markets, the forex is open for trades 24 hours a day. Much like the phrase "it's always noon somewhere," it's always business hours at some region of the globe. Since every country trades on the FX market, and it's open all day, the daily volume is roughly $1.2 trillion, which dwarfs that of the NYSE. Another comparison to make in order to truly realize the magnitude of the forex market is with the currency futures market (which has around 1% of the daily volume).

One other important distinction to make is that currency trading is not centered on an exchange like the NYSE or NASDAQ. There is no central body or organization required to act as middleman. Trading circulates between major banking centers around the world.

Until recently, there were strict financial requirements and massive minimum transaction sizes which prevented individual investors from trading. But with the advent of the internet came the FX brokers. A forex broker is similar to an online stock trading account such as etrade. Anybody can open an account and buy and sell in any quantity. Because the brokers have thousands of investors placing orders through them, they are able to meet the large minimum transaction size by purchasing in large blocks and distributing currency amongst the purchasing investors.

Although it is now easy to start trading forex, it is a complicated and complex market. While it offers fantastic opportunity for wealth, it is also very easy to lose your shirt in a hurry. Before trading forex, do your homework and read as much as you can find before investing your hard earned money.

By Francis Gillen

Secret Settings For Forex Ivybot -Learn For Free How To Trade Fore

The automated forex robot IvyBot struck the forex world on 28th July, 2009. This appears to have been an critical day for the traders as they have been waiting for this moment since many months. It is a computerized forex robot that will trade currencies without any help. This product has got a novel capability to handle each currency pair separately which isn't present in any other software. Read on to see more about forex megadroid setting, signals and how it compares to ivybot forex.They use this technique in the calculation of every currency pair. IvyBot is dissimilar and uses different robots to cope with four trading pairs present in the market. It is changeable and gets modified according to the variations in the market. It will get automatically updated according to the current conditions in the forex world.

Folk are excited and pumped up about the new software which has hit the market. The question still remains among the crowd if this product is efficient or not. Here are a few points which will help you in understanding the features of this new software.

They don't desire to spend money on products which won't be helpful for them in the future. IvyBot is the most suitable option present in front of you if you want to buy software that will last you a life time. They work for you without any beefs. It will increase the profit levels within a few months and make you better in the province of trading. IvyBot forex robot has created a ripple among the crowd. It's the hot topic of the forex world and people are excitedly talking about the efficiency of this new software. Read on to see more about forex megadroid setting, signals and how it compares to ivybot forex.

Here are the answers to your questions which will help you in understanding more about this product. Automated forex robots have been a hot commodity nowadays and IvyBot has become fairly popular in this class. You can get this software for a special discount price in relation to its launch. IvyBot has created a new excitement among the traders and is helping them in bringing their careers to a new level. IvyBot is the only forex trading software which comprises different androids to deal with different trading pairs. Read on to see more about forex megadroid setting, signals and how it compares to ivybot forex. They especially deal with four currency pairs and the algorithm used for the calculation are also different in these androids. This is a crucial feature present in this programme. If your robot cannot update itself then it becomes pointless within a short period of time.

There are many sites which will help you in gathering additional information relating to this product. Read on to see more about forex megadroid setting, signals and how it compares to ivybot forex. To make things simpler the company is providing this software on trial for 1 week. You can make your decision after using IvyBot in your business and seeing the result. It is safe, trustworthy and efficient in the field of online trading.
By Linda Mscarel