Edward Lomax asked:


rex traders are looking for a profitable Forex trading system. We want something we can follow with predictable results. And as no system can be 100% accurate… we want a trading system that is profitable… one that makes it worth our time trading.

But once we find a Forex Trading System that works… we tend to stop looking for ways to make it even more profitable. I understand the hesitation… making changes could cost you winning trades and money. So, once the profitable system is found, traders trade that system without wondering if the system could be improved.

While coming up with a winning trading system is no small feat, how do you know you are trading the most profitable way? You don’t, unless you test! The purpose of this article is to give you three things to look at that could make your trading more profitable.

Look At Your Forex Trading System Stop Loss

You should always trade with a Stop Loss. If the market changes direction, you need a safety net to keep the losses in control. But a tight Stop Loss that keeps your potential loss really low might be keeping your from a higher percentage of winning trades.

The trick is to find the “sweet spot” when placing your Stop Loss. Pay attention to the currency pair you are trading as well as the Chart (M15, H1, D1, etc), you are trading. Then you need to test different Stop Loss ranges to look for the one that lets the trade develop without stopping you out of the trade prematurely, but that also limits risk. Again, the only real way to find this “sweet spot” is to test.

Look At Your Forex Trading System Take Profit

The way you decide to EXIT the trade is just as important as entering and managing the trade. If you want a high win rate, you can set your Take Profit close to the entry level… but that is not the most profitable way to trade. Again, there will be a “sweet spot” according to the currency pair and chart time.

Imagine if you can get an extra 10 pips of profit for each winning trade without reducing your winning trade percentage. Just think of how much MORE money you make with the SAME trades. While your take profit targets should be reasonable, don’t leave money on the table.

Look At Your Forex Trading Systems Money Management

Even a trading method with a high winning percentage can lose you money if you don’t know how to manage your money. And really, your money management should be based on your Stop Loss, Take Profit targets and risk tolerance. First, you need to figure out how much of your account balance you’ll risk on each trade. Then you need to determine a LOT size that fits with your stop loss and take profit strategy.

Once you have a trading system that hits the “sweet spots” with a solid money management plan, you can rest assured you are getting the most out of every winning trade… and controlling your loses. But if there is one thing you should take away from this article it is that just because your system may be profitable… it does not mean it can’t be improved! And each little improvement means a lot more money for you.

Bernice Eker asked:


There are hundreds or even thousands of companies and manufacturers in the internet that are offering the secret to winning consistently in the foreign exchange market by using an automated forex trading program.

There are more people involved in trading foreign currencies that fail and lose their money because of misjudgement. Consistency is the trick so that a trader can last long in the world of forex trading.

It is no secret that trading is difficult and mistakes are very common. Experts say that the best way to avoid this is to take up forex education first and learn about the basic principles and methods of trading. After that, they should practice using demo accounts that provide somewhat of a simulation of the market itself so the aspiring trader would be able to catch a glimpse of how the market actually works.

Sometimes all the education and training isn’t enough to make anyone a successful trader because they do not have the innate skills required for the job or they do not have the time. This is where an automated forex trading system comes in. This does everything for the trader. Monitoring trades, analyzing charts, the market and the upcoming trends and based on that information, it will do the proper action.

If it is able to predict that a particular trend is going to go up, it can immediately trade in that trend. The best part about this system is that it can react faster than any person. Once a change happens in the market it can do the proper action in milliseconds thus, minimizing the risk and maximizing the profits of the trader.

The automated forex trading system is usually based on the trading style of a successful trader. More often than not, these successful traders are the ones who create these systems to spread their knowledge about trading foreign currencies and help aspiring traders. It uses a sequence of mathematical codes and calculations to make the best possible trades and in effect, earn consistently.

When it comes to choosing one of the many automated forex trading systems available in the internet, there are a few things that you should look for. First thing is that it should be created by a forex trader who has a good background in the market. Next, the system should have a demo account so you can test its capabilities and if it has what you need or want. Another important part is making sure that the statistics presented by the company are real.

The best place to get all of this information is not with the product’s website, but through third party websites which gives a review on different forex trading programs. They also have comments from those who have tried the program. The website should be a third party so that the reviews and comments are unbiased. It is very important to do your research and your homework before buying a particular product so that you can be sure you are getting your money’s worth and not just something you will regret later on.

Daniel S. asked:


Many people who have not really traded in the market think that forex trading is very simple, it’s easy to earn quick money and get rich fast. Well, from my years of trading in the forex market, I can tell you that it’s not that easy after all if you do not understand the market well. When I recall the past, I’m happy to say that I was determined enough and did have a mindset for success before I became successful in forex trading.

I think I was like a lot of people before, whenever I saw any forex signals, I will start reacting to it and trade without thinking much… not planning…not strategizing. So I hope you are not doing what I did last time! I understand that some of you might have frustrations now, because those forex system you bought out there doesn’t seems to work or if it works in the short term, it does not give the kind of expected results you want in the long term. Many people will complain things like:

- “Why does it seems to work for other people, but I just can’t get it right.”

- “What’s the trick to become a successful trader?”

- “Am I using the wrong set of forex trading strategies?”

- “I’m trying very hard, but I still lose to the daunting forex market!”

Don’t worry, you’re not alone. About 95% of people cannot win in forex because either they do not have good money management, a proven forex trading system, patience, discipline or they can’t get past their emotional/psychological barrier.

Other than that, what is stopping you from succeeding is mindset. If you do not have a strong and correct mindset, where do you find motivation and determination to succeed in forex trading? So when you lose a trade, or after a string of losses, you should ask yourself what has gone wrong and you will strive to do the correct stuffs next time round without making the same mistake.

A lot of traders gave up easily just because they lost some trades and think that it’s impossible to succeed or they have busted their trading capital. So if you really want to succeed in forex trading, you have to keep a close look on your money management to make sure you have enough capital to continue trading. You must also be patient, give yourself some time to learn and be fair to yourself, no one can succeed the first day when he comes into forex trading.

Kelly Price asked:


With the rise of online forex trading, we have seen the rise of forex trading software offered and many forex traders are looking for automated forex trading software to help them win and this article is about how to find the best systems…

Lets first start with a fact which many traders don’t think about, here it is and it will give you a clue to which are the best forex trading software packages.

Fact:

In the last 40 odd years since man landed on the moon the PC on your desk is far quicker, has more processing power and can do calculations quicker than Mission Control Houston. Yet, despite all the advances in technology that have occurred in the period the same number of traders lose as they did in 1967.

So it would appear that the application of complex advanced formula’s to forex trading haven’t helped achieve greater profits and this is true; simple systems today work better than complicated ones and the reason is obvious:

There is no point in applying scientific theory to forex price history, when prices don’t move to a scientific formula.

Many claim they do – but it’s obvious they don’t, because if they did, we would all know the price in advance and there would actually be no market!

Simple forex trading systems work best, as they are more robust in the face of ever changing brutal market conditions, with fewer elements to break.

I hear a lot about chaos theory, neural networks and artificial intelligence and sure these are great help in certain areas of society but in forex markets? There no help at all.

Advances in science are astounding and because they help us in certain areas of life traders think the appliance of science can help in the markets and it makes them feel comfortable, until they lose their money.

How to Win

You need to get a simple forex trading system based upon a few indicators and then trade it with discipline. I have used the SAME system for 25 years and never changed it its simple, it takes losses but over the longer term, I know it will win and the trick is to accept your losses, run your profits and don’t look for perfection in your trading, look for long term profits.

Today traders want to take on and beat the market and have no drawdown and huge gains and the myth this can achieved is perpetrated by vendors selling useless forex robots which have simulated paper track records and destroy equity.

If you want a simple robust forex trading software that works look up our other articles on the “4 Week Rule” this forex trading system has only one rule is free and has piled up countless millions in trading profits in the 30 + years its been trading.

Forex trading with advanced software, is one of the biggest forex trading myths, the reality is keep it simple if you want to enjoy success with your forex trading strategy and make big consistent profits.

Daniel S. asked:


Everyone has their own style and spotting trends in the Forex trading market. If you are hanging out with six different traders, they may all have their own angle to day use in each and everyone of them may be profitable.

I have a friend who has made a fortune doing forex trading online for years. I once asked him if there are any common principles of success when it comes to currency trading. My millionaire forex trader friend told me most successful currency traders tend to use forex trading techniques that they are comfortable and confident with.

He emphasized that what works for one person may not be so attractive to another individual and vice versa. However, successful traders do have a few things in common when setting their guidelines. He went on and confessed to me the top 10 forex tips and tricks to succeed in forex trading as follows:

1. Establish a plan and stick to it – you made a plan for a reason. You did research, you probably track investments over a long period of time and then finally identify the forex trading system that worked for you. Staying with this system and using good money management is a way to keep the money rolling in. Don’t make radical changes for no good reason.

2. Trends or transfer a reason – Use a good forex trend system and stick with it. If you’re trying to buck the system and go against a trend or predict one because of a gut feeling, you’re going to find yourself out of the forex market before you know. Follow trends and use them to make money.

3. Keep your money safe – you can do this by limiting your forex investment to 3 to 5% of your overall bankroll. Think about it, this allows you to have 20 dead deals before you would ever be out of the market. If you’re doing your homework, the likelihood of this is very slim. Those that get overconfident because they have had a succession of profitable deals may decide that they can increase their profitability by committing their entire bankroll to one trade. You can all but guarantee that trade will be a loser and they will be broke.

4. Don’t push a bad position – when you’re faced with a losing deal, cut your losses and get out as soon as you can. There is no shame in admitting that he lost a little money as it happens to everyone sooner or later in this market. The key is to minimize your losses and get your money back out into a more profitable situation.

5. Take the Money and run – a lot of traders don’t know when to get out. They get involved in a trade and don’t set target profit and have no idea when the right time to sell is. Your research should give you a good idea of how much money you can make on your deal. Know what the limits are and set yourself target profit even before you enter the trade. Regardless of how fast you get there, take your profit before the trend reverses and you get buried.

6. Be emotionless – it may sound a little cold, but there is no room for emotions in the forex trading. Trading is cut and dry, you win some and you lose some. Any trader worth their salt will sit there and you’ll have no clue if they just made a fortune or got buried. You simply need to keep your emotions out of the game.

7. If it doesn’t come from you, don’t use it – this is a pretty basic rule and won the absolutely must follow. Do not trust any information that comes from anyone else other than your own research. When people try to give you tips, say thanks but no thanks and avoid the pratfall of trying to make easy money.

8. Keep a log – everyone has to learn from their successes and failures. Keeping a journal of what you bought, how much you bought it for and when you sold will enable you to look back at all of your previous deals and break down better what worked and what did not. This will make you a much better trader in the future.

9. Where there is doubt, there should be no trade – you’re going to have too many positions that you feel strongly about to make a mistake and investing in something that you are not 100% sure is going to make money. This is not to say every deal that you do make is going to be profitable, but risking your money in a doubtful situation is never a good idea.

10. Don’t over extend – some traders get themselves into a position where they are looking at several different profitable opportunities all during the same period. While it would be great to be involved in them all, it is simply not realistic. Spreading yourself out too thin will end up with your investments being out of control and you not being able to manage them. The best way is to only enter the second trade when the first trade has breakeven or have protected some profits.

Edward Lomax asked:


e disciplined enough to stick to a strict set of trading rules, mechanical Forex trading systems can be very profitable. Just enter the trade when the rules tell you to, and exit the trade when indicated. This is one of the most profitable ways to trade Forex. The point is, if you want to be successful trading Forex, you MUST have a plan, or set of rules to guide your trading. Now, regardless of whether you study everything you can get your hands on about Forex Trading and come up with your own system, or follow a Mechanical Trading System ALREADY producing great results… there is one big problem! No Mechanical Forex Trading System Is Perfect Yes, it is true. No mechanical, or automated, Forex trading system is 100% on delivering winners. But the good news, is you don’t have to win all the time to be profitable trading Forex. You can still be profitable while breaking even on your wins and losses if you have proper money management in place! So, not being 100% is really not the problem. But is is a factor that leads to the problem. The Search For The Holy Grail Forex Trading System Since no mechanical Forex trading system is perfect, it leaves room in traders minds for doubt. Even if they find a system that makes them profitable trades consistently, they are still looking for a “trick” to make their trading better. What happens is they jump from one trading system to another with the hopes of finding something that works better. And this is the big problem. When traders are off searching for a better mechanical trading system, they are not trading the system that already works profitably. They keep buying more products. They keep testing more systems. They won’t commit to trading ANY system until they find the PERFECT system (which we already know doesn’t exist). How To Eliminate This Problem I believe the fastest way to eliminate this problem is to choose a mechanical Forex trading system ALREADY getting great results and then dedicating yourself for a full 30 days to using the system. ONLY open charts with that ONE system and ONLY trade that ONE system for a full 30 days. Keep track of all the trades you make. your winners and losers, lot sizes and risk management, etc. At the end of the 30 days, I’m sure you are: 1. Going to be a better trader. After all, when you practice only 1 trading system you are going to get better at it. This usually results in more profits! 2. Going to make a lot more money. After all, when you are searching, testing and playing around you are NOT making any real trades! Don’t keep thinking the grass is greener on the other side. Pick a mechanical Forex trading system and stick with it. When you stop pursuing every wild claim made by “new” Forex products, you can focus on becoming the successful Forex trader you’ve always wanted to be.