Professional Forex Trader - Live the Dream in 4 Simple Steps

Becoming a professional forex trader is the dream of many and for most it remains just that - but if you follow the simple tips enclosed, you could change your financial future forever and be making big consistent gains, in just an hour or so a day.

FACT:

95% of traders lose all their money, yet everything about forex trading can be learned, it’s just the majority of traders don’t get the right forex education, or have the wrong mindset to apply what they have learned.

Anyone one can become a successful forex trader from home however you need to do the opposite of the majority, it’s not hard to do and do your homework.

1. Adopt the Mindset For Success

Most traders are lazy or naive or both.

They read about how easy it is to make money and think someone else can give them success.

Most of the information sold on the net is junk and wont help you win and even if you do find some good education, you cant follow it blindly, you need to understand it.

If you don’t understand how and why your system works, you wont have confidence to apply it with discipline and you will lose.

Keep in mind if you don’t have the confidence and discipline to follow your system you don’t have one!

If you like to blame others and don’t like responsibility don’t trade forex, it’s as simple as that.

2. Work Smart Not Hard

You don’t need to work hard you need to work smart and this means only learning what is relevant.

Many traders think the more knowledge they have the better but you don’t get rewarded for effort in forex trading, you only get rewarded for being right.

In 1983 legendary trader Richard Dennis proved this point in spectacular fashion. He took a group of people who had never traded before and taught them to trade in 14 days – the result?

They made him a $100 million dollars and went on to become some of the most successful traders of all time.

Working smart means working on a forex trading strategy that will get the odds on your side and that’s what we will look at next.

3. A Forex Trading System for Success

I am amazed at how many traders simply base their systems on logic that doesn’t work, for example:

Most novice traders try day trading yet all short term volatility is random so they can’t win, yet they don’t stop to think how dumb day trading is.

Or

They believe in scientific theories that tell them they can predict the market in advance and don’t stop to think that predicting is impossible.

If it were possible, we would all know the price in advance and their would be no market!

The best you can do is trade with the odds on your side.

Of course, you will lose but your profits should be bigger than your losses and you can pile up big gains over time.

You can build your own forex trading system easily, just educate yourself on.

- Support and resistance and breakouts
- Time your trades with momentum oscillators
- Keep it simple trend lines and 2 -3 confirming indicators max

If you build a system based upon the above it will be simple to understand, simple to apply and will be robust.

Don’t try and be too clever and cram too much into your system. If you do, it will have too many elements and break in the real world of trading.

If you do the above, you will have a simple robust system that you can apply in an hour a day or less.

One other point, I constantly read writers tell you to educate yourself all the time, study your profits and losses etc– Rubbish! If you have a system you believe in leave it alone.

You will have winners and losers but if it’s soundly based then you simply should just apply it.

4. Building Long Term Gains

What is a realistic amount to aim for?

If you made 100% per annum you will be up there with the top traders in the world and you don’t need to do many trades – keep your trading focused on high odds trades only.

So there you have it, a simple plan to live the dream of becoming a professional forex trader from home.

It’s a challenge but one anyone can take up and anyone can win – if they want to.

Are you up for the challenge?

If so, welcome to the worlds most exciting and lucrative business.

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Forex Beginner Systems - A Step-By-Step Guide to Trading Profit

(by Joe Ward)

This forex beginner systems article is a comprehensive guide to the steps needed in devising a forex trading system as a beginner. Knowing which way to jump with all the information floating around can be a daunting proposition; so having a step-by-step guide by a successful experienced (and humble: lol) trader is obviously a great start. There aren't any in depth explanations here as the purpose is to highlight the areas which require further investigation, and in what order of importance. I have articles specific to each category on my website which I will link to at the bottom of the page. Anyhow, follow through with each of these steps and you will be well on the way to forex trading profit.

The main steps are:
1.) Get background information on what forex trading entails.
2.) Learn how to manage risk and size positions correctly.
3.) Find a strategy you are comfortable with.
4.) Test your strategy.
5.) Interpret the numbers.
6.) Find a broker.
7.) Rake in the cash!

Basics:
First of all, with forex beginner systems, it is important to know just what you are getting into. Forex trading is just like any other business. You wouldn't go off and try to build houses without reading a book or getting some lessons now would you? Constructing systems is much the same. Without any knowledge of the market you are essentially building a "house of cards". You don't need a Phd in macro-economics, but a solid knowledge base will only aid in your trading decisions and help ease your mind throughout the entire process.

Risk Management:
The next thing to learn is how to manage risk and size positions. These factors should be the cornerstones of any system. In essence: you need to know how much to risk losing on each trade. People often make the mistake of ignoring this factor; that's why over 90% of traders fail. Think of it in terms of being a gambler or being a casino; we know who always wins right? Do your due diligence on risk management and position sizing and you will be well on the way to becoming one of the 10% of successful traders.

Strategies:
Once you understand the numbers a little better you can look at specific strategies to trade. Forex beginner systems should be quite simple. As with many other things; simple can also be very effective. I have found that trend trading and swing trading in particular can be very simple and also very effective. The main thing though, is that you feel comfortable trading a strategy. Psychology plays a large part in forex trading too, so having a simple yet effective strategy is often the best. It's a case of K.I.S.S. (keep it simple stupid!).

Testing:
The next aspect of creating forex beginner systems is testing. Testing your system is all important in knowing if you will turn a profit or not. Don't "go off half cocked"; you may wind up with a "blown up" trading account. It's a step closer to being a "casino" and another step away from being a "gambler". To add further perspective; just imagine if boeing didn't test their planes before they used them..... Would you be getting on one? I didn't think so! It's much the same with trading; test your hypotheses and make sure they work.

Analysis:
Analyzing the results of these tests is the next thing to do. Anyone can see if a system will be relatively profitable from the results of testing. The hard part comes with understanding how to interpret the results and how they will effect your trading in real time. Analyzing the results and making necessary changes to your forex beginner systems will also likely make you substantially more profitable. There is no end to what can be done with statistics. Again let's look at our jet-plane analogy. From flying the plane we know it doesn't crash. But how much fuel per mile did it use? How much will we need to fly from our place to a nice island in the Maldives? How can we get their faster or without using as much fuel. You get it? Knowing how to get there is one thing; but getting there the cheapest and fastest way possible is harder.

Brokers:
Now it's time to find a broker to trade your forex beginner systems with. Brokers offer free trial accounts with play money to check out their wares. By all means take advantage of these offers. Also, you should be aware of some of the different types of brokers and the features they offer. This is important as well. Think of it as choosing to fly "Econo-miser" or "Champagne" airways.

Conclusion:
Now you should be all geared up with some shiny new forex beginner systems if you have investigated all these things thoroughly. If you're still not sure, there is loads more information on my site and others. There are loads of people researching new ways to make money in the currency markets, so please, check the web regularly and see what else they have found. Some offer their information free (like me) and others charge for their info. Do not be too tight with the purse strings though; as one profitable trade can often see an item paid for many times over. Now off you go and rake in some of that cash!

The original article with links to all relevant articles can be viewed here

Joseph Ward is an experienced, successful currency trader. He teaches his simple, practical and profitable forex trading methods, for free, via his website www.forex-trading-profit.org Take a look at some articles, tutorials or reviews and start your journey to forex trading profit today for free!

Successful Forex Trading

(by Martin Bottomley)

Forex trading is fast becoming one of the easiest ways to earn large amounts of money on your investment. Then again, it can also be the easiest way to lose all of your money in a short period of time. That is, if you do not know what you are doing. The fact is that even seasoned traders make mistakes and only through the understanding of basic principles and the application of sound strategies can you be assured of earning money in the long run.

One of the most basic things that you have to understand about Forex trading is that there will always be losing streaks along with the winning ones. Having this fact in mind will keep you going during those times that you do not get a good deal. The best way to handle Forex trading is to have a reliable trading system coupled with a rigid money management system.

There are many different strategies employed in Forex trading today. What you should do is either adopt one of them or come up with your own. No matter which path you choose to take, the important thing is that your trading system has been proven or can be proven to be reliable. How would you know that your trading system is reliable?

It is quite simple, really. A reliable trading system is one which gives you more winning trades than losing ones. More than this, your winning trades should be – in general – of greater value than your losing trades. You do not need to be a rocket scientist to figure this one out. More wins with greater value equals profits. No matter how you come up with your trading system, the bottom line is that you get consistent results.

Once you have come up with your trading strategy, try it out first. You can do this by using a demo account before trading live. Using a demo account is advantageous as you will be doing exactly the same thing as live trading – without real money. This way, you can test your strategy and pick out the flaws f there are any.

If, after you have tested your strategy, you are confident that you are getting consistent results, you could go live. Your strategy should not stop there, though. Once you engage in live trading, you must take care to instill strict discipline when it comes to money management. Do not deviate from your strategy once it is put in place. This is perhaps the foremost reason for traders to suddenly lose everything. Always remember that you cannot win all the time and that losses are part of trading. If you have a strategy in place, do not scramble to recoup your losses outside the boundaries of your strategy. The trend is that winning will come soon after your losses.

One rule you should stick to is never trading with more than 2% of your account at risk on a single trade. Whether you win or lose, this percentage is going to get you the long term results that you are aiming for.

Martin Bottomley is a co-founder of Stealth Forex Trading Systems as well as being a full time forex Trader. http://www.stealthforex.com . Article submission service by rcplinks team.

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Forex Trend Following - A Key Tool Most Traders Don't Use But Should

(by Sacha Tarkovsky)

If you want to catch the really big trends there is a key tool for FOREX Trend following that you should use.

If you use this tool then you will have a much better chance of catching and holding the really big trends that can yield the big profits of $10,000 or more.

So here it is:

It’s the weekly chart.

Most traders simply use daily charts but if you are after the big trends the weekly chart is essential.

Why?

Quite simply, because it gives you the big picture of the prevailing long term trend.

You can see the weekly charts on many free chart services

Keep in mind that the long term currency trends last months or even years, as they reflect the underlying health of the economy.

By looking at the weekly chart these trends are clear to see and you can then time your entry via the daily chart.

The best set ups for trading are when support and resistance line up on BOTH charts.

You know then that if they hold or if they are broken they are much more significant than simply points on the daily chart.

So the way to catch the really big trends is to do the following:

Look at the weekly chart for the long term trend, then time your entry on the daily chart by looking for important resistance or support.

Once this is done you need to time your entry.

Don’t simply trade on breaks or holding of support or resistance.

CONFIRMATION

Once you have lined up support and resistance on both the weekly and daily chart you need to watch price momentum.

You want price momentum to either be with you on a break of support or resistance i.e. strong momentum or if you are looking for these levels to hold you want to watch for weakening price momentum.

Use these indicators

1. The stochastic

2. RSI

They are great indicators and discussed in our other articles.

If you use them to see and trade with price momentum, the odds of your trade being successful are dramatically increased.

This METHOD

Will ensure you get in on all the big trends, with the odds on your side and help you make the really big profits.

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On all aspects of becoming a profitable trader including features, downloads and some great FREE Trading PDF's visit our website at http://www.net-planet.org/index.html

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Fibonacci Trading - Key To Forex Profits

(by Alexandros Louizos)

If you have at least a few months that Forex came into your life you have surely heard of Fibonacci levels in Forex charts. But what is Fibonacci?

Fibonacci sequence is a series of numbers. Every number is being produced by adding the last Fibonacci number to the previous. The first numbers of Fibonacci sequence are 1,2,3,5,8,13,21,34,55,….etc But what has Fibonacci sequence to do with Forex Trading? IF you divide two sequential numbers you get the result 1,618. The square of 1,618 is 1,27. The inverse number of 1,618 is 0,618. The inverse of 1,27 is 0,786. These numbers are called Fibonacci numbers because they result from Fibonacci sequence number’s analogies. The 1,618 number was called ‘Golden Mean’ by ancient Greeks and other ancient cultures. They called it so because they observed that this number is found everywhere in nature.

The result of creations, living organisms to space galaxies, that have this number embedded is symmetry. But enough with maths and science! Let’s see the use of Fibonacci numbers in trading. Since the beginning of investment industry, traders have noticed that prices tend to change direction in levels that are very close to these numbers I mentioned above. For example in an uptrend prices will go up and then swing down to a level that is a Fibonacci number before continuing the uptrend. These levels are called Fibonacci Retracement levels.

The most common Fibonacci levels in Forex market are 0.382, 0.5, 0.618 and 0.786. Nobody knows why prices tend swing in these Fibonacci levels. And nobody knows at which exact Fibonacci level will the price change direction in advance. How could you use this knowledge to improve your trading? Well, you should know that prices tend to reverse at Fibonacci retracement levels. A lot of novice traders use the exact point of a fibonacci retracement level e.g. 0.618 as a trade entry. Experienced traders know this fact and wait for other traders to get their stop loss hit and then enter the market. Fibonacci retracement levels should be used as an indication of entry and not as the exact point of entry. Moreover the bulk of traders use 0,618 and 0.386 retracement levels. Experienced traders know this tendency and wait for other retracement levels not widely used like 0.786 or 0.707 in order to enter a trade. Use these Fibonacci retracements as well. Make the difference! But how would you know at which Fibonacci retracement level will the price change direction? Fibonacci retracements, like other technical indicators are more valid when they are calculated for a greater time value.

Do not pick minor swings to calculate Fibonacci retracements. Pick greater price swings instead. Moreover, a Fibonacci level becomes more valid when it coincides with another technical indicators such as trendline resistance or support, MACD or RSI divergence and so on. The most valid retracement level should be choosen keeping in mind that further confirmation from other technical indicators should be taken into account. You wouldn’t like to put your money on risk with only one reason, would you? So choose the Fibonacci retracement level that coincides with other reverse signals. Last of all let’s see the use of Fibonacci numbers in trading time analysis. It is a method that only few traders know. Pick a significant hi or a low in a daily chart. Then calculate trading days (excluding weekends) from that point and on using Fibonacci sequence.

You would have the first, the second, the third, the fifth the eighth trading day and so on. Watch that in trading days that are Fibonacci numbers, prices tend to reverse direction! Isn’t it amazing? Add this tool to your chart analysis and you wont lose! After all these years of trading experience and research I have found that Forex charts iclude some special patterns created by price swings. These patterns are formed under certain Fibonacci relations between their swings. Fibonacci Patterns can give low risk and hi reward trading entries.

The accurancy of these patterns is as high as 80%. It takes some practice to recognize these Fibonacci patterns correctly but the result is highly rewarding. You could learn more about Fibonacci Patterns by clicking here.

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If you're looking for a forex trading platform, I can highly recommend Easy Forex. They offer competitive spreads, guaranteed stop-losses if required, live training and support, and you can start trading with as little as $25.