Is Trading FOREX Right For You?

Being a forex trader is not for the faint of heart. The foreign exchange market is a fast-paced world that operates 24 hours a day, 5 and a half days a week. For some traders, fortunes are made and lost very quickly. Yet for someone with the right know-how and enough motivation and drive, forex trading can be rewarding both personally and financially.

How many people make their living as forex traders? It’s hard to say for sure, but we know the number is smaller than the number of stock traders. Most forex traders are actually international banks and other huge corporations; private citizens comprise only about 2 percent of the entire forex market.

Nonetheless, they are out there, and the number is growing. As the Internet and other technological advancements make it more accessible, the forex market becomes more manageable and more average citizens become traders. To begin with, most of these “day traders” keep their regular jobs and do forex as a side project. It’s notoriously difficult to make a living as a forex trader at the start, and most new investors find they must allow for the learning curve before they’re really ready to do it full-time.

Once a new trader gets the hang of it, buying and selling currencies with some degree of confidence and turning a profit, he may find that he can quit his day job and focus on trading full-time. There is certainly enough activity to fill a forex trader’s day, with news that could affect currency rates coming in almost constantly. A smart trader watches this information continually, almost obsessively, always on the watch for a sign that the time is right to buy or sell.

With home computers and high-speed Internet service available nearly everywhere, being a trader from home has become feasible. Some traders eventually become brokers, but the excitement -- and the potential profit -- lies in working for yourself. With a stock market, a bad day could mean disaster. But with the forex market, a bad day for one nation’s economy hardly matters, since there are still a dozen more strong, viable currencies to be traded. In that way, some consider being a forex trader slightly more stable than being a stock broker. Either way, there is always risk when money and speculation are involved, but with dedication and resourcefulness, you can make a handsome living as a forex trader.

Mini FOREX trading - The Low Risk Way To Trade

Mini FOREX trading is good for people who have just started in the FOREX market and with not enough funds to open a regular account. It requires a smaller capital compared to regular FOREX accounts, a minimum of $300. With mini FOREX trading, you can control a $10,000 currency position.

The key here is leverage. Because of leverage, a trader can trade in a commodity more than the money available in his account. Say with a $250 deposit, one could trade a maximum of 5 mini lots. This kind of leverage is greater than stocks or day trading. Of course, it is recommended to start with a manageable leverage that allows greater flexibility in transactions.

What are the perks of mini FOREX trading? With just a small stake involved, you get to enjoy free trading platform and benefits that regular FOREX traders get to enjoy. These would include state-of-the art trading software, charts and resources. With a leverage of 200:1, the trader can trade in a commodity regardless of the amount of money available to him.

Mini FOREX trading also allows for lesser losses as the contract size is only 1/10th the size of a standard FOREX account. There is also greater flexibility with regards to customizing trades and minimizing risks. Ideal for those with smaller capital, the trader has a chance of investing in more areas of the market with lesser risk as there is lesser capital to be lost. He need not be hesitant with his transactions as there is lesser capital involved.

With the same freedom enjoyed by regular FOREX traders, a mini FOREX trader can trade as many lots as he likes. Although the standard trade size is 10,000 units, you are free to trade as much as 50,000 units or more. In this way, the trader also builds up his confidence in his trading skills at the same time slowly increase his profit and trading position in the market. He gets to manage his money before going for the higher stakes in regular FOREX trading.

The trader likewise gets to develop a sound trading strategy without getting too emotionally involved in possible losses and profit. For practice, a newbie in FOREX trading can practice through paper trading. But in the real market, he can start small with mini FOREX trading. There is lesser capital involved and the practice builds up the trader’s trading game plan for future explorations in regular, higher stakes FOREX trading.

Here Is A Good Example...

On a regular account, a 25-pip stop loss is equal to a loss of $250. Since a mini FOREX account is just 1/10th of the standard FOREX account, this is amounting to $25 only. If you trade in units of 10,000, the trader is given more flexibility in terms of customizing his trades and lessening the risks of loss.

They say that business is for the risk-taker. But if you’re just starting out, it’s wise to be cautious and think about your moves. In the world of foreign trading, mini FOREX accounts provide the wisest and best option especially for a neophyte. It requires lesser capital, lesser emotional investment, and slowly builds up your skills and confidence as a trader. In a way, it’s a way to prepare the trader for the higher stakes in the more advanced world of foreign trading.

Automatic FOREX trading- 3 Major Benefits

I'm guessing that since you have taken the time to visit this blog, you have an interest in an automatic FOREX trading system. I'm also guessing that you don't really know the benefits of using an automatic FOREX trading system, but you have heard that the use of a system like this can be very profitable.

Well, guess what! You came to the right post today! In this post, I will try to point out some of the 3 major benefits of putting a system like this to work for you!.

Before I go any further, I really have to stress the fact that just because the system is automated, it doesn't guarantee that you will make money. FOREX trading is not something that a system can master because there are so many variables that come in to play. An automatic FOREX trading system will help you a lot, just don't be upset if you see a small period of losses. Usually, the gains by far outweigh the losses in the long run, but some traders pull out at the first sign of losing money. With that being said, I want you to make your own decisions on whether or not an automated FOREX trading system is for you.

Here are the 3 major benefits of automatic FOREX trading:

1. No chance of human error

Lets face it... when there is money involved, humans will usually make poor decisions. We have a tendency to be over-zealous and sometime down right lazy. Sometimes, we put too many apples in one basket, or we put all of our apples in a basket that we know nothing about!

An automatic FOREX trading system takes the human error aspect out of the equation. It will help you make quality decisions at the right time. Actually... it has the ability to make the decisions for you, if you choose to run the system like that!

2. The system works 24 hours a day!

The FOREX market is unique because it never closes. The market is always open in some time zones all over the world! An automatic FOREX system takes advantage of this feature of FOREX trading by working for you all day! If you have a broadband connection, you can put the system on autopilot, and go on a vacation!

3. Trade multiple systems

There are many different trading systems that you can benefit from, all which have their own indicators and trade different currency pairs. If you learn how to put multiple systems to work for you, you are diversifying your risk and giving yourself a much better opportunity to make some good profits.

As you can see, the benefits of using an Automatic FOREX trading system are very appealing. This generation is known for taking advantage of technological advances, and we all should have guessed that technology would play a role in the future of trading! Check back frequently, because I will continue to try and educate you more on Automated FOREX trading.

Automatic Forex Trading - How To Read A FOREX Chart

One of the most basic tools of a FOREX trader is the FOREX chart. A FOREX chart is used to graph the performance of a currency pair over a period of time. If you plan on getting in on the FOREX market, you MUST understand a FOREX chart. Even when using an automated FOREX trading system, it is still important, so that you can adjust your strategies.

The FOREX chart is among the most basic tools in a FOREX trader’s arsenal. Simply put, it is a graph of a particular currency pair’s performance over a given period of time. Reading FOREX charts is essential to a trader’s business, so it’s important to know how to read them and understand what they mean.

Every FOREX chart will be labeled with a currency pair: EUR/USD, USD/GBP, etc. Remember, all FOREX trading deals with different countries’ currency in relation to each other. The EUR/USD chart, for example, tells you how the euro and the U.S. dollar compare.

Along the bottom of the chart is the timeline -- 15 minutes, an hour, a day, a week, or some other period. Going up the right-hand side are incremental amounts. For the EUR/USD chart, the amounts might be 1.2531 at the bottom, going up to 1.2561 at the top. And of course the middle of the chart shows what position the EUR/USD pair held at what time.

The FOREX chart is useful because it shows in graphic terms how a currency pair is doing. You can see at a glance whether a currency is getting stronger or weaker, and you can act accordingly. Choosing the time frame helps you see very minor trends (in a 15-minute period, say) or more long-term ones (over the course of several days, perhaps).

You can find FOREX charts all over the Internet, on Web sites for FOREX brokers, tutors, and on other FOREX-related sites. Those are fine for glancing at trends now and then. But to be a serious trader, you need to have access to charts much more readily, without having to go to a Web site. That’s why the automated FOREX trading systems will give you plenty of FOREX charts (it is recommended that you have a broadband Internet connection. That way, you can stay connected all of the time). Obviously, if you’re going to be trading, you need to have convenient access to the very latest charts.

With dozens of world currencies, there are far too many possible currency pairs for anyone to keep track of mentally. FOREX charts show at a glance what any currency pair is up to, and good software allows you to save multiple charts as “favorites.” Naturally you’ll want to keep an eye on the charts representing investments you’ve already made, and it’s smart to have a few additional ones saved, too, so you can watch for trends in currencies you haven’t traded yet. You never know when a lucrative new opportunity is going to be revealed.

Automated Forex Trading - Put Your Money To Work For You

With the continuous growth of technology, everyone should have guessed that even something as complex as investing would become completely automated with automatic forex trading. The majority of people posses the “Work Smarter, Not Harder” mind set, which seems to be a very good mind set to have- especially in the FOREX market. FOREX trader’s now have a lot of different automated forex trading systems to put to work for them!

How Does An Automatic FOREX Trading System Work?

An Automated FOREX trading system is a highly intelligent computer program. The coding uses mathematical algorithms to control when to buy and sell currency. With the data that it collects, It completes the transactions for you. All you have to do is put money into an account and the system begins to do all of the work for you.

Isn’t Automated Forex Trading Risky?

You are probably thinking that automated FOREX trading seems pretty risky; however, humans usually make mistakes that a piece of software normally would not make. When there is money involved,everyone tends to let their emotions get the best of them, causing bad choices and loss of money.

Using an automated FOREX trading system, you don't need to worry about human errors. The software consistently monitors the massive amount of data, making only the best move for you!

If you are looking to learn a little bit more about how automatic FOREX trading works, Forex Killer is offering a completely free automated FOREX trading course. In this course, FOREX Science explains the science of FOREX trading and shows you how to maximize your profits while trading FOREX automatically. Click Here to get started with your free automated FOREX trading course

Automatic Forex Trading

Welcome to my automated forex trading blog. If you are looking to make money putting by automatic forex trading systems to work, check back regularly for the latest in automated forex trading tips and tactics.