forex currency exchange
By derekawalker
There are many aspects of forex trading (currency exchange) that make it difficult to achieve success. This article will spell out some of the factors that you'll need to be aware of, and outline specific tools and strategies that have worked well for me, and others.
Step 1
Online Forex Trading - Do's and Don'ts
Any experienced trader in the currency exchange market will tell you that there is one major thing that will limit your success - emotion. If you are trading foreign currencies, you have probably done your homework on statistical analysis and fundamental analysis, but are your emotions in check? I'm sure we've all experienced the sick feeling in our stomachs that occurs when we've sold too early, or held too long. Our emotional tie to our funds can make us do stupid things.
To avoid the heavy losses caused by emotion-induced trading, I suggest using an automated trading system with your foreign exchange portfolio.
Step 2
What is an automated forex system?
Quite simply, an automated currency trading system for foreign exchange allows you to make decisions before you actually enter the market. Sometimes, you may hear these systems called "expert advisors." With an automated trading system, you decide when to cut your losses, and how long to let your winners run, before you ever invest a dime. This way, you can make logical decisions before you are on the emotional trading roller-coaster.
Putting a system like this in place also makes your forex trading automatic. You no longer have to sit and watch charts and wonder when to pull the trigger.
Forex trading systems consist of software packages that allow you to enter your decision making triggers, then let them go to work for you. Currency exchange trading systems automatically place all of your trades at precisely the right times. You don't have to monitor anything once you've set them up.
Step 3
How do I know which Automated Forex Trading System is right for me?
There are thousands of currency exchange trading systems out there, each with its pros and cons. The goal of each system is to make money for its users. Of the thousands out there, I've found one that I believe to be very consistent, risk-averse, and brilliantly configured - which I'll recommend in step 5.
In the next step, I'll go over how to set up all of your accounts to get started with forex trading.
Step 4
Setting up an Online Forex Account -
The first thing you'll need to do is open an online forex trading account. There are hundreds of brokers to choose from. Do a search online, and when you find a few that you like, sign up for a free practice account. This will allow you to test their systems before investing any of you hard earned cash.
A few things to look for when choosing a system:
- Make sure that the brokerage offers the MetaTrader 4 trading platform. This is required by many "expert advisor" systems, including the one I recommend in the next step.
- If you are trading less than $20,000.00, look for a broker that will allow you to trade a small .01 lot size.
Step 5
Setting up an automated trading system -
Of the thousands of automated forex trading systems out there, I would recommend using Forex Cheetah (Website link available under resources at bottom of page). This system is very well thought out, thorough, and as you can see from their performance charts, quite stable and profitable.
At the time of writing, Forex Cheetah's forex trading system was making it's users about 2.5%-3.5% weekly on average. That's a possibility of over 130% each year! Not too shabby.
Step 6
Sit back and watch your account grow.
The beauty of the automated forex trading systems is that once it's set up, you literally don't have to do anything! It is 100% automated. You can just sit back, relax, and watch your trading profits soar.
Tips & Warnings
* Although anyone can use the mentioned systems with little or no experience in forex trading, please take the time to learn at least the basics of forex before you try any of the suggestions I've made.
* Remember, results are different for everyone. Nothing I've written here is guaranteed.
* Before investing in foreign exchange, you need to consider your investment objectives, experience, and risk tolerance. You could sustain a loss of some or all of your capital. Only invest with risk capital.
forex currency exchange
