Forex trading advertised nowadays by most brokers and peddlers of trading software is often presented as an intra-day business. As such, many aspiring traders are lured into the business with the thought of earning $200-300 every day.
The truth though, as most people learn, is that the amount you earn is a direct consequence of the amount of your deposit. The less your deposit with your forex broker, the less you can profit with – and risk – with each trade. The fact is, intraday trading could be very volatile and quickly wipe out the account of an unwary trader. With so many price fluctuations it could be difficult sometimes to determine the underlying predominant trend.
However, intraday trading offers the advantage that since one is going for about 10 to 20 pips per trade, one can risk less (about 20 to 30 pips) compared to those who trade on longer-term charts and have to place a 50 to 100-pip stop-loss to gain 200 pips.
Intraday trading may therefore be more suitable for someone intending to risk less money, i.e. starting with a mini account with balance of about $500. Sticking to the rule of not risking more than 2 to 5% of one’s account on any one trade, a 20-pip stop-loss on a 1 minilot trade would be risking 4% of a $500 account. Many intraday trading systems could easily achieve a profit target of 20 or more pips per trade on such an account. If one wanted to take longer-term trades on such an account it would be definitely wiser to trade with micro-lots instead.
That said, intraday trading could still be potentially very profitable – a good trading system could recognize and generate signals for such profit opportunities. Monitoring the charts for these trade opportunities and executing them day after day could however be a toll on even the hardiest trader. This is where installing an automated system would be indispensable. It is extremely difficult however to find such a software or robot that is robust enough to trade without large drawdowns and account losses.
Most automated robot software are only good enough when back-tested on previous time charts – subjected to the rigors of real-time trading they fail to stand up to the test. One of the best trading software on the market however, and probably one of the best ever written for commercial purposes, is FAP Turbo. This software was built from the modified code of the already best-selling, wildly succesful Forex Autopilot System. Even though the sales copy on the website may seem slightly banal, there’s nothing that can be said against multiple proof s of profits in live trading, on multiple accounts sizes! As they say, results are the bottom line. Definitely this would be a trading system worth checking out, and for a low price of $150 it is almost a steal, concerning the potential profits one could make from it.
Thus it can be said that such a good system could easily out-perform the day-trader. Taking the strain of having to spend countless hours monitoring charts and indicators, waiting for trading opportunities, it would allow one to build even a the small capital of a mini account to desirable profit targets. It would also give one the opportunity to develop other trading systems.
Monday, January 26, 2009
Tuesday, January 20, 2009
The Ultimate Home Business
In these times of financial turbulence and unstable employment, even top company executives know that their fortunes could change within the twinkle of an eye. If your income is solely based on a day job, what are you gonna do when you get laid off? Even with benefits?
It makes sense therefore to have one, two or more streams of added income. Even if there were no risk of your getting sacked (probably only if you founded the company itself, profits are sky-high and the board members are not planning against you), couldn’t you do with some extra cash? I could!
It would be necessary however to choose something that would bring in passive income for months and years to come, something that would require minimum effort and input to obtain maximum profits. By now it should be no secret that most work-at-home programs advertised on the internet are scams, or at least notorious for underdelivering. But what of investing in the financial markets? Specifically, forex?
The average person would prefer to stay out of the financial markets nowadays, especially with the topple of financial giants (Lehman Brothers, Merill Lynch, AIG and others) last year. Their fall occurred at the peak of the crisis in the global stock, commodities and energy markets. We cannot even say if that was the only peak of the financial meltdown we will see! Even the currencies have experienced unusual volatility over the last eighteen months as Central Banks of nations have in turn adjusted interest rates, leading to currency devaluations.
But through it all, I dare say astute currency traders made huger profits even than those who sold oil when it peaked at $140! The foreign exchange market offers so many more advantages over others, that a losing position in the stocks market for example would have been easily converted to a forex winner!
There are several reasons why forex is so much better than other markets:
-it is by far the largest market in the world, bigger than all the others put together with over $3 trillion traded daily.
-being extremely liquid you are never at a loss to sell or buy
-from Monday to Friday a 24-hour seamless market is run. As such, there are rarely gaps in market prices. And guess what? You may have just come home from your day job. After a short rest you could make a trade, make a profit in under twenty minutes and go on to bed!
-you are never stranded with a losing currency. Currencies are always traded in pairs, so the devaluation of one means the appreciation of another. NO bear market!
- you have access to a tremendous amount of leverage – 1:100 in most cases. Some brokers even offer up to 1:500! And with microlots allowed by some brokers now, you could trade with as little as $10!
-there are only 8 major currencies that offer enough liquidity for the best trading opportunities. Thus you would mostly be trading crosses of these currencies. No need to be befuddled over hundreds of stocks to monitor and trade! (for more tips on which 8 currencies, please stay tuned to this blog.)
With all the aforesaid, I dunno but to me it would seem insane for one not to take advantage of these markets. With currency movements sometimes exceeding 200 interest points in a day, the potential for profit is enormous.
But so is the potential for loss.
A trade could easily go in the wrong direction if made unwisely – and that’s where the danger of forex trading lies. The highly volatile markets could just as easily take out your capital, as return profits to your account.
Anyone who has traded forex for even a few days would be quick to admit that learning the technicalities is far easier than mastering the psychological demands of trading. In fact, most would agree that the two most important things required to trade are:
-a good, robust system with well-defined entry points, stop losses and profit targets.
-an iron will to implement the system through thick and thin. [For whatever you may have heard, there is no trading system that is incapable of losing. The forex market, like any other, is composed of human beings. Since when could one predict exactly every single nuance and action of these humans?]
The first is easy enough to find. Good, solid trading systems abound – you could even develop one yourself. (For tips on how to develop your own trading system, please keep visiting this blog for updates!)
The second is not so easy to get.
So what to do? Get a program to trade on your behalf!
Forex robots (called Expert Advisors on the MetaTrader trading platform) are not new to the market. They offer the advantage of removing emotional shortcomings of fear and greed that would otherwise prevent the proper execution f a good system.
Problem: not being human, most forex robots are ignorant of the nuances that only a human being would be sensitive to. A poorly written robot software could make disastrous choices (and trades) in some abruptly changing conditions.
Because of this I had my own misgivings about using Expert Advisors. In fact, I had used 2 or 3 (no name-mentioning here) that only let me down in crucial times. But then I saw the results of the 2007 Automated Trading Championships. The winning robot increased its initial $10,000 deposit to $130,000 in three months! That got me thinking. Unfortunately the programmer refused to put his winning system up for sale. But just think – if I could have gotten hold of a such a good, well-written software, I could have built a $10,000–dollar account to $130,000 in just three months!
I got to searching online. Unfortunately many of the Expert Advisors advertised in various sites met the mark, until I saw this one. One thing you could judge forex trading robots by, is if they could trade in live conditions (i.e. how would they perform under forward testing?) countless many of them show impeccable results when backtested, only to fail when run in real time. Not this robot! Just to prove it, several unbiased sites have also found little fault with it.
If you want to take advantage of the most potentially profitable market in the world, but with little risk and with minimal effort …there’s nothing better than to take advantage of this opportunity. Just go to sleep and watch your profits soar!
It makes sense therefore to have one, two or more streams of added income. Even if there were no risk of your getting sacked (probably only if you founded the company itself, profits are sky-high and the board members are not planning against you), couldn’t you do with some extra cash? I could!
It would be necessary however to choose something that would bring in passive income for months and years to come, something that would require minimum effort and input to obtain maximum profits. By now it should be no secret that most work-at-home programs advertised on the internet are scams, or at least notorious for underdelivering. But what of investing in the financial markets? Specifically, forex?
The average person would prefer to stay out of the financial markets nowadays, especially with the topple of financial giants (Lehman Brothers, Merill Lynch, AIG and others) last year. Their fall occurred at the peak of the crisis in the global stock, commodities and energy markets. We cannot even say if that was the only peak of the financial meltdown we will see! Even the currencies have experienced unusual volatility over the last eighteen months as Central Banks of nations have in turn adjusted interest rates, leading to currency devaluations.
But through it all, I dare say astute currency traders made huger profits even than those who sold oil when it peaked at $140! The foreign exchange market offers so many more advantages over others, that a losing position in the stocks market for example would have been easily converted to a forex winner!
There are several reasons why forex is so much better than other markets:
-it is by far the largest market in the world, bigger than all the others put together with over $3 trillion traded daily.
-being extremely liquid you are never at a loss to sell or buy
-from Monday to Friday a 24-hour seamless market is run. As such, there are rarely gaps in market prices. And guess what? You may have just come home from your day job. After a short rest you could make a trade, make a profit in under twenty minutes and go on to bed!
-you are never stranded with a losing currency. Currencies are always traded in pairs, so the devaluation of one means the appreciation of another. NO bear market!
- you have access to a tremendous amount of leverage – 1:100 in most cases. Some brokers even offer up to 1:500! And with microlots allowed by some brokers now, you could trade with as little as $10!
-there are only 8 major currencies that offer enough liquidity for the best trading opportunities. Thus you would mostly be trading crosses of these currencies. No need to be befuddled over hundreds of stocks to monitor and trade! (for more tips on which 8 currencies, please stay tuned to this blog.)
With all the aforesaid, I dunno but to me it would seem insane for one not to take advantage of these markets. With currency movements sometimes exceeding 200 interest points in a day, the potential for profit is enormous.
But so is the potential for loss.
A trade could easily go in the wrong direction if made unwisely – and that’s where the danger of forex trading lies. The highly volatile markets could just as easily take out your capital, as return profits to your account.
Anyone who has traded forex for even a few days would be quick to admit that learning the technicalities is far easier than mastering the psychological demands of trading. In fact, most would agree that the two most important things required to trade are:
-a good, robust system with well-defined entry points, stop losses and profit targets.
-an iron will to implement the system through thick and thin. [For whatever you may have heard, there is no trading system that is incapable of losing. The forex market, like any other, is composed of human beings. Since when could one predict exactly every single nuance and action of these humans?]
The first is easy enough to find. Good, solid trading systems abound – you could even develop one yourself. (For tips on how to develop your own trading system, please keep visiting this blog for updates!)
The second is not so easy to get.
So what to do? Get a program to trade on your behalf!
Forex robots (called Expert Advisors on the MetaTrader trading platform) are not new to the market. They offer the advantage of removing emotional shortcomings of fear and greed that would otherwise prevent the proper execution f a good system.
Problem: not being human, most forex robots are ignorant of the nuances that only a human being would be sensitive to. A poorly written robot software could make disastrous choices (and trades) in some abruptly changing conditions.
Because of this I had my own misgivings about using Expert Advisors. In fact, I had used 2 or 3 (no name-mentioning here) that only let me down in crucial times. But then I saw the results of the 2007 Automated Trading Championships. The winning robot increased its initial $10,000 deposit to $130,000 in three months! That got me thinking. Unfortunately the programmer refused to put his winning system up for sale. But just think – if I could have gotten hold of a such a good, well-written software, I could have built a $10,000–dollar account to $130,000 in just three months!
I got to searching online. Unfortunately many of the Expert Advisors advertised in various sites met the mark, until I saw this one. One thing you could judge forex trading robots by, is if they could trade in live conditions (i.e. how would they perform under forward testing?) countless many of them show impeccable results when backtested, only to fail when run in real time. Not this robot! Just to prove it, several unbiased sites have also found little fault with it.
If you want to take advantage of the most potentially profitable market in the world, but with little risk and with minimal effort …there’s nothing better than to take advantage of this opportunity. Just go to sleep and watch your profits soar!
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