Posts Tagged trading
Forex Trading Robot – Millions in Real Time Trading and Based on Easy to Understand Logic!
The Forex robots I see online normally irritate me, with there claims of 1,000% and less than 0.5% draw down which of course is better, than any of the worlds super traders and not true. These systems have made up track records and are never from traders, just programmers so it was nice to find a robot with a real track record based on the rules of a legendary trader. Let’s take a look at this robot in more detail.
The Turtle Robot is based on the rules Richard Dennis gave to a group of novice traders to show anyone could win with the right system and he was proved right as all the traders made millions in profit.
This story is well documented, the results were verified as real time trading and the experiment achieved world wide exposure when featured in the investment classic book – Market Wizards. The traders using the rules made 80% annual year on year gains and they did so, with tight money management risking just 2% per trade. The rules have now been computerized, the system is trend following by nature and currencies trend well so it’s an ideal market to trade.
What I like about this robot is you can read why the rules work and this will give you confidence when you come to trade. Forget all the robots that tell you they predict the future, Forex markets cannot be predicted and that’s a fact. These robots can only make money going backwards on paper, the Turtle rules make money going forward and are based on trading the reality of price change. If you reads the logic you will see why the rules work and be able to follow the system with confidence and discipline.
This robot is perfect for traders who want to make some great long term gains and automate their trading. It’s got the rules of a legendary trader, has made money in real time and is easy to understand and trade – check out the new Turtle Forex robot and see for yourself.
Tags: forex robots, trading, trading robotMake Money Forex Trading by Utilizing Volatility
Traders in the forex market are now a savvy lot. Almost everyone in the forex market nowadays are self trained in reading charts, or a user of some form of high technology software to trade the forex market. Some have graduated from using simple technical analysis to the new fangled sophistication of neural network forecasting and artificial intelligence. But yet a great majority of these professed experts fail in their trading, losing money from their trading rather than making profits. Why is it so?
The answer lies in the devil within. The traders who win are those who are capable of executing their trading plans with discipline and precision, and more importantly, they can cope with the VOLATILITY of forex trading.
Theory is if you can identify volatile movements, even if they are small, and execute trades with these volatile movements, buying on the lows and selling them at the peaks, you stand to make big profits. However, in practice, many volatile movements are too fast and tiny to be identified in time to be traded profitably. Where larger volatile movements are identified, it is error in judgment and the speed of execution of the trades that reduce the amount of profits.
When I was conducting research into writing a report on how a trader can recoup his losses after a horrendous period of bad trading, I was pleasantly surprised by a veteran trader who told me he was a profitable trader from day one of his starting trading. This is by no means a false claim, because this flamboyant trader has always been known both for his tremendous skill in trading and for being anything but decent about his skills and his ability to make the correct calls in the market.
Being surprised, I asked him what was his profession before he became a professional trader and a trading coach. His answer added to my surprise, because he said, ” I was a professional poker player and the runner up in the Australian poker championship!”.
Therein lies his great success as a forex trader as well, because as a poker player and a champion player at that, he was accustomed to taking calculated risks.
The secret to trading his style was to take calculated risks in his forex trading.
For example, if you have identified a trade, and you have placed a trade, do not place your stops too near the entry price because the odds favor the stops being hit most of the time.
Rather, you can assess the odds and probability of the stops being hit before you place them.
Again, when a trade presents itself, and you can compute that the odds of winning is in place rather than losing, it is then that you can increase your trades.
If you desire to win big, learn to compute the odds of winning, and like the successful poker player, bet big when the odds are in your favor and stay away from a trade where the odds indicate you will lose. This is where forex traders will measure their risk-reward ratios for their favorite trade setups and can identify which trade setup will result in bigger profits and with lower risks. This is a skill that you ought to learn to become more profitable.
Tags: forex trading, money, tradingMethods of Foreign Exchange Trading For Beginners
If you wish to succeed with foreign exchange trading, learn the trade methods. Foreign currency trading is not just giving out currencies as the other party needs. To control the success of the business flow, some methods are necessary. There are different types of transaction processes which you can follow.
1. Spot Currency Trading – This is the most important part of the foreign currency trading business. Spot currency trading usually involves two currency traders and often the buyer calls the seller. But initially the buyer will not yet reveal his intention of purchasing any currency offered by the seller. The seller should proceed to entertain the queries of the buyer and provide the necessary information. If the buyer is satisfied with the quoted rates the transaction is completed.
2. Forward Trading – This is a method that involves a long term investment. Fundamentally, an agreement to make the trade is finalized long before the actual day of exchange. Thus the parties, the buyer and the seller, would agree upon an exchange of their currencies for a specified date in the future regardless of the rates that their currencies may have by then. More often, the big companies trade in this way. It has two different types:
• Swap – This is the most common type of forward trading, where both the buyer and the seller agree to make currency exchanges for a specified period of time. Then their roles will eventually swap after the said period of initial exchange.
• Future – This is the forward trading used mostly by big companies. In future trading, a contract is drafted for the exchange with emphasis on the rates of maturity.
3. Option Trading – It is a flexible tool for starters in foreign exchange trading because, option trading is the extended version of forward trading. Whereas forward trading sort of binds the involved parties to make the specified transaction, option trading only provides the involved parties the rights to buy the currency at the agreed rates upon date or during the duration those lapses. In this system the strike price is crucial since this is the predetermined rate in terms of buying and selling.
These methods of foreign exchange trading may seem very promising to the beginners, but it is important to remember that all of them carry their own particular risk factors. Foreign currency trading is a volatile and dynamic type of business and these methods come with their own brand of advantages and disadvantages. Hence it is imperative that while using them, you fully understand their capacity first. Currency trading can be a very fluid business and these methods may also provide different risks for different transactions.
Tags: foreign exchange, trading