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!

A Simple Swing Trading Strategy You Can Put To Use Right Now

(by Dean Saunders)

I started to develop a swing trading strategy after 2 years of trying to day trade the EURUSD. I found trading the longer time frames were not only far more profitable but also less stressful and freed up allot of time to do things I enjoy.

A good swing trading strategy must trade with the longer term trend, all we are looking to do is cut our losses short and let our profits run. It must be simple, anything complicated is only making our trading decisions more difficult.

Lets go through what rules I follow and how I identify a good trade. I trade the 4 hour charts with this swing trading strategy, it works well on this time frame and I suggest you do the same.

First we need to find the trend direction on the daily charts, if price starts in the bottom left and finishes in the top right of your screen then we are in a up trend. If price starts in the top left and finishes in the bottom right then we are in a down trend. If you have trouble show the chart to a child they will get it right every time!

Next we have to go back to the 4 hour chart to find an entry point that gives us good odds of price going in our favour. Look for retraces to the 50% fib level that coincides with good support/resistance levels, I also like to target 00 areas as this is what the larger institutions will be targeting for there orders. Remember only take trades with the trend on the daily chart!

Once you have found a suitable entry point set your order with a 50pip trailing stop loss. Please note that if you trade a currency pair with higher volatility then you will have to increase your stop to suit, 50 pip stop is for the EURUSD which is the main pair I trade.

Once your order is triggered just sit back and watch, do not interfere with the trade, you have a trailing stop to do the work for you. As soon as your position is in profit the trailing stop will move up keeping your stop exactly 50 pips behind and locking in any profit along the way.

Although many new comers looking for a swing trading strategy will laugh at this simple system I can assure you that it works. The more you get a feel for the market the more you will profit with this strategy. Trading forex does not need to be difficult, it is the human physiology that makes it hard for people to see profits disappear. Unfortunately this is part of the business and you must focus on the month to month gains not the day to day gains.

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