Friday, February 1, 2013

5 Lessons to Learn From Losing Your Money

By []Joseph CK Chua

While losing a great amount of cash in forex trade is no one's joy, this will actually provides an opportunity for you to learn several important things. If this has happened to you, you may want to look at the positive side and enjoy these hidden but tangible benefits:

1. Learn what went wrong: If you lose anything more than 10% of your investment then it means that there are some terrible mistakes you must have made. Perhaps that should give you an opportunity to learn what went wrong so that you can avoid going that way again. You may want to step back briefly and review among other things:

� What motivated you to enter the trade

� The reasons you exited that particular trade

� Things you believe you should have done differently

The advantage of analyzing your failure is that you will definitely learn to do things differently as you proceed with your business.

2. Review your reasons for entering trade: Failure gives you an opportunity to review your motivation for entering the trade in the first place. Perhaps you entered the trade in the spur of the moment as a result your emotions. If you think that you did everything according to everything you knew best, it could be possible that you were impatient or perhaps you need to learn more strategies. It is always important to keep a journal on your trading pattern by recording information such as:

� The time, type and size of trades that you enter including stop-loss limit orders

� Reasons why you have entered a particular trade

� The time as well as the price of your exit as well as any loss of profit you have made

3. Learn your reasons for exiting the trade: There are many forex traders who have good reasons for entering a trade but surprisingly they cannot give you a proper reason for exiting the trade when they do. Normally, the number one reason why anyone should exit a trade is because they have made a profit that they intend to keep in their account. However, you could also exit a trade because you realize that are not going as they ought to go and you must do something about it. It is always important for you as a trader to develop and advance plan on what you are going to do with those trades that go the opposite direction. You may want to address important issues such as:

� How far you are willing to go with any trade that goes down south. Perhaps you have a stop-loss order that is too wide or you probably ignored it.

� The criteria you used to determine that this sale is not a proper idea and what signals prompted you to determine it was time to exit.

� The criteria you will employ to raise or lower the stop-loss order that was in place.

4. What you are going to do differently: It is important to take time to learn what things you are going to do in a different manner than you previously did. You may want to talk to a friend or colleague who is more enlightened on matters of forex trading. You may want to learn whether it would have been prudent to avoid the trade altogether or you should have perhaps waited fro much longer before you closed the deal. After you have made a decision, you may want to talk to your mentor or any other professional who can assist you to double-check your decision to make sure that it will not lead you to a similar situation. You may also want to set a different set of goals and get a person who will keep you accountable to them.

5. Get a second opportunity: After you have done your review, you can shore yourself up to take a second stab at the forex trade with the knowledge you will have gained. Promise yourself not to make the same mistake again and take time to complete a fresh trading plan. Commit yourself to carry out the plan and channel your anger towards implementing the new goals you will have set.

Find out more about []trading psychology and learn how forex trading success can be more about your mindset and less about the markets.

Article Source: [] 5 Lessons to Learn From Losing Your Money

Thursday, January 31, 2013

What Is a Forex Trading Robot?

By []Le Dang Thao

Forex is the trading of currency and is mainly accomplished through an online broker. This has developed an instant trading platform with shorter trading periods that has created a faster, smoother, easier way to trade currency in today's market for the average person.

In almost all countries, people are quoting on major currencies as a result of the trading available all day every day through the week. It usually occurs through exchanging one currency for another, therefore an investor will purchase one to trade for the other and expect that the value of the currency traded will decrease and the currency exchanged will increase.

The forex market is extremely important and valuable for numerous businesses, companies, banks, brokers and individuals. Many areas of the import and export economy benefit largely since currency trading originally began in 1971.

With the wide range of investors and the general public using this platform to buy and sell currency at fluctuating exchange rates, it can either be exceptionally useful or can become detrimental to someone who does not fully understand all the elements involved to become a successful trader. It has become a hobby and enjoyment for many individuals across the globe that have invested and predicted correctly.

An automated forex trading system is often referred to as a forex trading robot. It is a computer based system used to assist a buyer using specifically developed trading signals to determine whether a trade should be made between two currencies. The psychological aspect of forex trading can set an individual at a disadvantage.

Forex trading robots have recently become quite popular on the internet, these robot trading systems are essentially computer programs that tell you exactly where to enter and exit and drastically reduce the need for human interaction.

One of the great advantages of using a forex trading robot is that an individual, business or company can let the robot trade by utilizing its superior automated trading system. This can give a significant advantage for investors who do not want to watch the trades all the time.

With an incredible performing trading pair and new features, the forex trading robot now has the ability to double currency deposits in as little as a month. The versions which is updateable gave the latest addition incredible features that be more effective and proven to produce a profit over the months. Back-testing has proven this newer, more sophisticated version of an automatic forex trading system has significantly high profit margins and more flexibility.

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Article Source: [] What Is a Forex Trading Robot?

Wednesday, January 30, 2013

The Most Common Mistakes In Forex Trading

By []Shawn Sofo James

Trading the financial markets, especially forex, is increasingly becoming a popular career of choice for most people. However, there are common mistakes that traders, particularly beginners, make when trading. Here is a description of some of them.

Lack of adequate training is one of the most common mistakes in trading. Many traders jump into forex trading without grasping the ins and outs of the business. As a result, they end up losing a lot of money while trying out different strategies. Before starting to trade the forex market, it's essential that you spend your time and resources in knowing how the market operates. Importantly, you should practice your skills in a demo account before trying them out in live market conditions. Once you've gained enough confidence and perfected your skills, then you'll find forex trading to be very enjoyable.

Next, improper money management is a trading mistake that make traders blow out their accounts faster than they expected. Most traders, driven by the false motive of making quick returns, fail to set their risk parameters appropriately. Specifically, if you use too much leverage on your account, you can amplify your losses. As much as leverage is a good money making tool in the forex market, you should use it with caution. When trading, it's advisable to not risk more than 2 per cent of your account on every trade you enter. You should avoid the temptation of getting rich quick through forex trading by practicing proper money management.

Another common mistake in forex trading is trading without a plan. As the common saying goes, "failing to plan is planning to fail." If you fail to plan your trades, then the results could be disastrous to your trading account. Without a trading plan, you are bound to make trading decisions based on emotions and without much thought. To solve this problem, you should develop a robust trading plan and follow it in every trade you take, regardless of the conditions of the market.

Lastly, is not analyzing your trades, whether they are winners or losers. The forex market is very dynamic in nature and you should capitalize on every opportunity to improve on your trading. And, the best way of doing this is through analyzing your trades. Analyzing your trades will help you identify weak areas you need to work on. As such, you will be able to take your trading career to the next level.

Shawn Sofo James has 7 years experience in the Financial Markets, for PRO Investment Bank as an Investment Analyst, before becoming a Forex trading expert.

If you have more []Forex questions please post them online.

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Article Source: [] The Most Common Mistakes In Forex Trading