My Pick For The Best Book For Learning Forex Trading

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Bird Watching In Lion Country is not some $7.00, 10 page, quickie report, churned out overnight for a fast buck. This is a serious ebook written by a practicing successful trader and mentor of many successful traders. It challenges your accepted ‘truths�� and surefire techniques. It exposes the tricks of marketing wizards. It reveals the edges that became second nature for market wizards. It sets you up to run a profitable personal trading business.

In short, it’s for those of you seeking an understanding about how to make money with currency trading – written in plain English.

During the last five years I had the opportunity to engage in discussions with hundreds of students of Bird Watching in Lion Country and it became clear, based on what they were saying, how and where I could improve on the book. Also, we are talking about a fast-moving, and changing market in which certain structural trading changes had taken place. What all of this meant was that for Bird Watching in Lion Country to remain current and ahead of the pack it required a substantial update.

When you purchase your copy of the all new 썚 Edition of Bird Watching in Lion Country, you will not only receive the steadfast wisdom imparted five years ago but also the added input of readers who made the book work for themselves.

I have substantially updated and revised Bird Watching in Lion Country to incorporate the latest tricks of marketing wizards, the impact of regulatory changes world-wide as well as the effects of the credit crunch on the personal Forex trading business owner and how to adapt to these challenges.

Based on the experiences and input of hundreds of readers and personal Forex mentoring clients, I have gained a wealth of new insights about how to explain my low-risk Forex trading strategy to get you up and running as soon as possible. I have incorporated these insights by expanding the text with another 100+ pages, mostly covering the 4×1 strategy and relational analysis.

Lessons In Forex Automated Trading Systems

You see and hear all the hype about automated trading systems, and they can seem like the perfect answer for anybody who wants to start making money with forex or currency trading but does not know anything about it. While forex trading can be a very lucrative way of making money, it is also extremely risky, like any other form of financial speculation. In order to trade successfully on your own account, you need a lot of skill and training. All of this takes time and costs money. If you are a beginner, you could not expect to start today, be trading live and actually make any money using a manual system.

However, automated trading systems or forex robots seem to cut the learning curve right down to zero. They will apply a system for you to the letter every time. You just need to leave the software running on your computer, connected to the internet over broadband, and they will open and close trades for you according to whatever settings they are given.

They also have the advantage that you can set them and forget them. It is easy when you are starting out as a forex trader to become hooked on the market to the extent that you can hardly step away from the computer. You do not want to eat or sleep in case something happens in that time. Of course this leads to burn out very quickly. Experienced forex traders know how important it is to have a life away from the computer. Using a forex robot can help you achieve this from the start.

However, there are a few things you should know before you switch on your robot for the first time. First, there is a wide choice of robots available. Some are more effective than others. Check reviews and user feedback to be sure that you are buying one of the best.

Second, you will need to understand at least the basic terminology of forex trading, and spend some time mastering the settings, in order to optimize the robot so that you have the best chance of success. Do not become frustrated if this takes you a day or two. You then need to test it out in demo mode to be sure that everything is set up correctly. If you go live too soon, the results may be surprising, and not in a good way.

Third, you must accept that you will not see winning trades every time. There will be some losses. Overall if the robot is working well you should make a profit, but at times, the losses could exceed the gains for a while. Because of this, it is important that you do not risk too much of your money on each trade. Never risk more than 5% of your total funds on one trade, and if you want to be safer, aim for 1% to 2%. Set stop losses so that the trade will automatically close if the price goes the wrong way. This controls your risk.

One of the biggest benefits of using a forex robot is that it takes the stress out of trading. Many beginners do not realize how important this is. It sounds like just a feel good thing, but it is not. Stress affects us physically. It causes us to make snap decisions, often diverting us away from a tried and true system into emotional trading that will end up in disaster. Forex automated trading systems will remove any possibility of this.

What You Need To Know About Losing Trades.

I’m going to let you in on one of the most important forex trading tips, take a moment to think about something that most people do not want to know, and yet it is one of the most important strategies to master if you are going to have any chance of succeeding with forex trading. This is how to deal with losing trades.

Everybody wants to hear about winners and how to make money. Nobody wants to hear about losing. However, it is clear when you think about it that minimizing your losses is just as important as maximizing your gains when it comes to making a profit. In this respect forex trading is just like a business: in order to increase your profits, you can either increase your income or you can reduce your costs. Loss management in forex trading is a question of handling the losing trades in such a way that they do not stop you making a profit on the bottom line.

The first thing to understand is that losses are inevitable. There is no point even beginning to trade live if you read that statement thinking, ‘Yes, but not for me.’ If you expect to win every trade you are going to have a bad shock which could throw you right off course. For the unprepared, a loss can make them lose faith in their system. Soon they have abandoned the system for random trading according to wild guesses about the way that the price might move. As all forex trading tips will tell you, abandoning your system is a recipe for disaster.

Losses should be accepted as a normal part of trading. You should plan for them in the sense that you always set up a stop loss when you open a trade. ALWAYS. You do not hang onto a bad trade thinking it ‘must’ go right because your system is going to produce winners every time. You accept that this one is a loser and cut your losses at the right moment. You do not start kicking yourself or wondering what went wrong. You accept that this was one of the 1 in 5 or 10 losing trades that statistically your system will produce, and you move onto the next trade without giving it another thought.

What can be harder, of course, is when there are a lot of losses in a short time. Say that your system normally throws up 1 loser in 8, but lately you have had a run where it’s almost 1 in 3. The result is that for this month you may be showing an overall loss. What do you do in this situation?

Again, before throwing out your system, make sure that this is not just a question of statistics balancing themselves out. If you look at the whole year, are you still within that 1 in 8 ratio? If so, there is no problem. Your system is still fine. Just keep an eye on it.

If you just started trading for real and this happens, then maybe you were not quite ready psychologically and there have been some mistakes. Look over your records to check that the signals were always exactly right. You may need to go back to demo for a while to be comfortable operating your system again. Then take extra care to work on stress management and clear thinking when you do go live.

Finally, if you look over your records and conclude that your system might be at fault, for example because you have stuck to it to the letter and things are just going from bad to worse, it might be time to go back to school. Take a break from trading for a while and take some training or maybe even find a mentor. In the process you may discover what went wrong with your system or you may find a better one. You will certainly pick up a lot more forex tips that will help you in the future.

Global Currency Trading Courses

If you want to get into the lucrative global currency trading market, you will need some training. There are a lot of courses available these days, especially online. In fact, it is not at all hard to find a forex or currency trading course, but it can be difficult to work out which one will be the best.

The best place to look for forex trading courses is usually online. You can get everything from an inexpensive ebook explaining the basics of the global currency trading market to a high ticket seminar series or coaching. A lot of materials are even given away free.

Do not assume that the quality of materials is precisely related to the price. By this I mean that you can sometimes get information for $20 that will make you more money than attending a $500 seminar. If you are a beginner the $500 seminar might be completely over your head and you might get virtually nothing from it. What matters is getting hold of the right information for your level.

Beginners need to cover three main areas when they are looking for currency trading training.

1. Terminology

Like most subjects, forex trading has its own language in some respects. You will need to understand terms like pips, spread, bid and ask prices, base and quote currencies, etc.

2. Practical Matters

Next you should move on to practical subjects like how to choose a broker, how to read a candlestick chart and use indicators, taking account of news and the economic calendar, and how to set up a simple trading system. If your forex ebook or course includes a system, you will want to know how to practice that in a demo account.

3. Mindset and Success Notes

This is probably the most important area of all, but it is hard to appreciate that when you are just starting out. How you deal with stress, fear, excitement and risk are vital to your success. Read as much as you can on this subject and make notes of practical steps that you can take to assess and manage your risk, deal with stress, etc.

As I have said, a forex trading training course can take many forms such as the articles and videos on my website. The ebook is one of the simplest, and if it is accompanied by videos so that you can see how things actually work on a live trading system, it can be one of the most effective. Ebooks range in price from free to around $100 or more. What it covers is more important than the price. One ebook will not necessarily contain all that you need to know, but if it has a few nuggets that you can actually use to make money, it was a good buy. You can see this as an investment in your global currency trading training since you should be profiting from the information if you apply it correctly.

Forex Market Trading Strategy For Success

You will find a lot of forex market trading strategies on the internet but many times these apply only to one or two systems. Beginners will often pick up a system and try to run with it without understanding some of the most important strategies that apply to all forex trading systems. They are looking for the ‘holy grail’, the system that will ‘work’ for everybody in every situation. Unfortunately it does not exist.

Disappointment and often, heavy losses can result from assuming that your system is always going to make money for you. Professional traders understand this and plan to handle the losses instead of dreaming of huge wins. The truth is that there are some forex strategies that should be followed by just about everybody, and these are the strategies related to risk management.

1. Set Your Risk Per Trade And Stick To It

Risk management is about the most important skill that you can develop as a forex trader. It beats technical analysis or any other technical skill hollow. The reason is that you can succeed without understanding every mathematical indicator on your chart, but you cannot succeed without good risk management.

Letting your risk go too high will mean that sooner or later your funds will be wiped out. This is statistical fact, it is not a matter of luck. But how high is too high? That is the question.

As a general rule, 5% of your funds is the most that you should risk on any trade. In most cases you will want to go lower than that. 5% might work for small funds where you are prepared to take a chance that you might lose all of the money. Then you would gradually reduce the percentage risk as the fund grows.

Most professional traders are dealing with risk levels of 1% per trade or lower. This makes sense when you are dealing with large amounts of money. A lot of traders would not be devastated to lose a $500 balance when they first start out, so they might take a bigger risk with that. But when you have anything over $100,000 in your forex market trading account, protecting it must be your first priority.

2. One Trade At A Time

Another principle of good risk management is never to have more than one trade at risk at a time. This means that you would never open a second trade until your first trade is in profit and you have moved the stop loss to a position where that first trade cannot lose. This applies whether the second trade would be in the same currency pair or a different pair.

This means that if world war three suddenly breaks out and major spikes trigger your stop losses, you do not end up with multiple losing trades. It also means that if your second trade turns out not to be so simple you can give it your full concentration without also being stressed about the first one.

3. Risk Versus Reward

When you are evaluating a system, always consider the risk versus the reward. For example if your system requires you to set a stop loss at Ȝ pips and your profit goal is 30 pips per trade, you have a high risk and low reward. On paper this looks okay as long as you have more than 67% winning trades, but in practice you will find that it is possible to have several losses in a row and this could wipe you out. So unless you are very sure that you know what you are doing and can handle large losses both psychologically and financially, it is better to look for a forex market trading system with a profit goal that is equal to or higher than the stop loss.

FX Forex Trading: 5 Reasons Why

FX Forex trading: 5 Reasons Why

FX forex and foreign exchange are all ways of describing currency trading. This is a way of making money online that you can do at home. It is a little like stock trading in that it is a speculative form of investment. The risks and also the potential returns are large.

However, it has some advantages over stock trading. In this article we will look at 5 good reasons for getting into FX or forex trading.

1. It is easy to get started. You just need a computer and a broadband connection, and most people in the western world have those at home these days anyway. You will hook up to websites of a forex broker where you can log in and trade.

2. It can be risk free in the beginning. Most brokers offer demo or dummy accounts so that you can try out their systems and tools without risking any real money. This means that you can learn to trade successfully in demo mode, and not go live until you are sure that you can be profitable. Hint: do not be impatient because this will lead to losses.

3. Unlike the stock market, the FX forex market is open 24 hours a day during the business week. This is because forex trading is not limited to your own country. It involves all of the world’s currencies. From Monday morning to Friday night it will always be business hours somewhere in the world, so trading is happening there and via the internet anybody can join in. The advantage of this, of course, is that if you have a job or other responsibilities during the day, you can still trade in the evenings or early mornings.

4. You do not necessarily have to spend a lot of time watching the markets. Some systems rely on longer term trading where you might only have to check the markets once a day. This can be useful if you do not have much time available. On the other hand, if you can be online for longer and prefer to be in and out of the market fast, there are day trading and scalping systems to suit that style of trader.

5. Training does not have to be expensive. While there certainly are forex seminars that can cost thousands of dollars, you do not need that when you are just starting out. You can learn the basics from websites, books and inexpensive ebooks. You also have access to many forex forums online where you can get help and advice from other traders.

Forex trading is nothing like having a regular job with a salary. There is no security and plenty of risk. In this respect it is like starting your own business. Even if you are very successful you will never make the same amount two months in a row. So you must be an adventurous type of person if you plan to take up FX forex or currency trading.

Support and Resistance – the two key words

To really understand the behavior of a currency on the Forex market it is important to see how it has behaved over a period of time. Taken over the course of a very short space of time, it is possible to make data mean just about anything. This, in turn, means that the data will be almost worthless. Over a longer period of time, however, patterns always seem to assert themselves, and establish a firm basis for predicting the future behavior of a currency price. Among the most important figures that appear in a pattern are the support and resistance points.

The point of “support” for any currency is the price level beneath which a currency never trades – effectively its market “bottom”. Whenever the price reaches this level, it almost always bounces back upwards, and for this reason many people will invest when a currency hits that point. Conversely, the ��resistance” point is the traditional high point of a currency price, above which it never trades. If you are looking to cash out, this is a good reference point.

Of course, the old saying “there’s a first time for everythingâ€� exists for a reason. There will come a time when a currency breaks its support or resistance levels, and this is seen as hugely important. When a currency does this it will be expected to continue this trend, possibly for an extended period of time. It is therefore a good time to get “in” if it is rising or “out” if it is falling.

Analyzing the market to your advantage

It has been said by many experienced traders that Forex is a more volatile market than any of the available options. The theory goes that it is difficult enough to judge a single company’s value at a given time and in the future, just imagine how hard it is to do the same thing with a whole country. This philosophy takes the point of view that analyzing the Forex market relies on careful reading over a period of time. Some knowledge of world affairs is also advantageous, as it allows you to be aware in advance of the timing of important announcements which can cause market volatility.

Others will treat the Forex market exactly like they would treat any other stock market, and take a more technical approach to analyzing their next step. This is not as simple a process in Forex as it is in the stock market, as the Forex is a 24-hour market, and the data-gathering systems require some modification to work effectively on Forex. Nonetheless, where these methods of technical analysis have been correctly applied, they have proved to be an effective way of making a profit on the Forex market just as their original forms proved on other markets.

While the first method is more of a global, evidence-based approach and the second tends towards techniques and patterns, both have been proven to be successful if correctly applied. It is highly advisable, though, to recognise which one to apply at a given time, as confusion can easily arise around what exactly the data tells you. Pick the method that you require and use the other to supplement it. That is the only way you can confidently operate in the long term.