Forex Manual Blog

Gerald Mason asked:


How you ever thought about doing a trade globally? Some people might be a bit hesitant to do such a thing, but the opportunity is just waiting for you out there. You don’t actually have to travel outside your country, if that’s your concern. With the availability of the Internet, you can actually do forex trading on a global scale even in your own home, at work, and regardless of your location.

The FX market seems complex, especially to new traders, and they find it rather difficult to go about the trade. But nothing is impossible once you’ve learned the trade. It is a worthwhile venture that you might want to consider even on a tight office schedule.

Being employed in a particular company may not give you all the money that you would need to finance your everyday living. Doing some extra work is often recommended specially in today’s times when money is difficult to find. Worry no more; the FX market is not far from your reach.

Identify your goals upon entering the FX market. This is the primary step, so that you will stay focused in your endeavor. Once you’ve set up a goal, you have to do all it takes to reach that goal, but it should be in a reasonable manner.

In going through forex trading, you will need an investment program, and a good one. Don’t settle for anything less because an effective way to succeed in forex trading is a good program.

Most rookies commit the biggest mistake of their lives by availing fake programs. The FX market is a huge industry, and the fact is, many scams and con artists abound the Internet, which actually provides useless materials for beginners. This often leads to frustrations of beginners because they’ve already failed even before they get to start the actual trade.

Find a legitimate forex investment program. Although it might require a bit of looking around, as well as a bit of your time, once you get what you’re looking for, you’re in a good start.

You don’t have to settle with expensive programs, nor with programs promising easy and quick profits with less the risk. You must be aware that though the FX market offers a lot of opportunities, it is also surrounded with a lot of risks. To become like the pros, you need to learn the forex trading system; and you have to be serious in learning it.

A good program is dynamic. It provides daily advice, manuals, DVD materials, computer disks, and other important forex trading stuffs or resources to transform you into a succesful trader. Check if their previous clients are satisfied with their services, and see if the company has built a good reputation in the business.

Professional traders regard forex trading as a science, some thinks it’s an art; and to start the real trade, you must undergo a lot of practice. After all, practice makes a perfect trader. Demo accounts are surefire ways to learn the different techniques used in the FX market. After you’ve mastered it, you can proceed to a mini account. Here you can do an actual trade but the risks are minimal. If you think you’re quite ready, then get a regular trading account. This is a highly effective step-by-step process because you get to learn a lot of things while your practicing. Always maintain calmness, and act like the pros. You are about to make big money, one that you probably never imagined in your entire life.

Forex trading is done on a margin. Margin trading allows you to control more money than what is actually in your hands. For you to trade one million US dollars, you should have a security deposit worth ten thousand US dollars. This is a typical example with the rate at 1%.

The FX market spans around the globe, so you can trade twenty-four hours a day. If you choose to do margin trading, the spread rate is much lower compared to futures trading. The requirements are also quite low.

Familiarize yourself with all the in and outs of forex trading. Trading globally poses a lot of risk; you must learn to overcome all these risks in order to earn big profits. Get a good forex trading program.



BOUSQUET

Andres Munoz asked:


Many people are into foreign exchange trading because of the profits generated in this kind of business. However, many are apprehensive because of the fear of having little or no knowledge on how the system works, especially in the international level using the internet. This is why putting your forex trading on autopilot is the best option.

The good news is that there are many systems available online being sold at a very minimal amount putting your forex trading on autopilot. Many of these autopilots do not require more knowledge from the user than to be able to click the mouse of their computers!

So how do you do put your forex trading on autopilot? All that is needed is for you to purchase a robot. A robot as it is called is an expert adviser on foreign currency trading. It is actually a system that is downloaded or a software installed in your computer and operates 24 hours a day. It does the work for the trader while he attends to some other important business. This means that the system generates money for him while he sleeps or attends to other matters. Since the trade is on 24/7 and human capacity is limited, the autopilot works at par with the ongoing business around the globe without the pressure on you!

The first step in doing this is looking around for the system that works for you. You can shop around the net for systems of this type. It is best to read reviews of the available forex trading autopilot systems, they can easily be found all throughout the net. The reviews will give you a background of each autopilot, how it works, how much it costs and the pros and cons of using it. You can also check each system one by one since almost every autopilot site offers a lot of discounts with operators standing by more than willing to speak with you about their product.

Many systems converting forex trading on autopilot offer free trial for a period of time with money back guarantee in case you are not satisfied with their service. Be sure to know the detail of every feature of the system before availing one for yourself. The usual requirement of the system is a metatrader 4 platform, a forex trading software that manages trade operations and technical analysis of data. Metatrader 4 can be downloaded for free.

After choosing what system to use, setting up is easy as it comes with a manual or guide on how to install and activate the system. One good feature of the available systems is the ability to back test previous data or test even future data without putting real money on the line. You can then somehow gauge the accuracy and reliability of the system. The robot itself will analyze the data and place your trades for you without you having to do the analyzing or deciding. You can then go on living your life while making money by simply putting your forex trading on autopilot.



FYFFE

Andrew Daigle asked:


Your chosen Forex trading strategy will drive the trading decisions that you make in the Forex trading system. If you are new or a novice to Forex trading systems, you will need to develop an appropriate strategy that will evolve over time. The following steps outline the approach to building a Forex trading strategy that may be adapted and tailored to your needs.

Develop a Forex Trading Plan - A Forex trading strategy should never be considered absolute or complete. Part of having a Forex trading strategy is incorporating a plan for making adjustments to the strategy. You will need to be able to make adjustments without completely revamping your strategy. Though you may consider your trading strategy to be more technical than fundamental or vice versa, you should take advantage of any available market data in making your trading decisions regardless of which discipline it falls under.

Initiate a Forex Trade - You must decide on the currency pairs that you which to trade and the number of units to trade. You must establish either a buy or sell position. You are then ready to initiate a trade as either a market order or a limit order. A market order initiates a trade at the current market price while a limit order permits a trade to be executed when the market price reaches a limit that is predetermined by you. As a safeguard for online trading, particularly with limit orders, you should also establish limits to take profits or stop losses. Take profit and stop loss limits become particularly important with online trading when your Internet connection is loss. In the time it will take to reestablish a connection, the market price may change and fall outside of any established limits. Your trading platform may be able to calculate a suitable set of limits. Limits are set as either the percentage of the trading range or as distance from the market entry price. If you have established an open position, you may adjust these calculated values to suit your needs.

Determine When to Exit a Forex Trade - If a trade moves in favor of your established position you must evaluate the move. In a long position, a move is considered significant if it is in the range of 15 to 20 pips. In response to such a move, it would be advantage to raise your stop-loss limit above the market entry price and your take-profit limit by about 20 pips or the number of your choice. If the trade continues to move in your favor you should continue to raise the stop-loss and take-profit limits. This aspect of a trading strategy allows you to continue to generate profits while the market is working in your favor. Unless, for some reason, you feel you need to manually exit the trade, you should not exit the trade until the market reverses to trigger your stop-loss order. A take-profit limit should not be used to signal an exit from the trade. If a trade moves against your established position, you have two options. You may manually exit the trade before your stop-loss limit is reached or stay in the trade until either the stop-loss or take profit limit triggers an end to the trade. It would not be beneficial to lower the stop-loss limit with the expectation that the market price will reverse for a short period of time. While such a reversal is possible, the odds of this type of market action are low and your Forex trading strategy should not depend on this type of anomaly.



SWORD

Stephen Todd asked:


How to Make BIG Profits with Currency Trading Systems

FOREX markets turn over trillions of dollars per day and are the world’s biggest investment medium.

In recent years, FOREX trading systems using technical analysis to predict trend changes have become increasingly popular as a way of catching the big profitable trends.

Catching the Longer Term Trends for Big Profits

The longer-term trends in FOREX markets mirror the underlying health of the economy. As periods of expansion and contraction take years, so do currency trends and a good FOREX trading system can help you lock into, and profit from, these trends.

When picking a currency to trade, it is important to have good long-term trends and liquidity.

Good major currencies to trade include the US Dollar, Swiss Franc, Euro, Japanese Yen, British Pound, and Canadian Dollar.

FOREX trading systems remove the emotional component from trading, which is the major reason the majority of traders lose.

Removing the Emotion from Trading with Systems

One of the best starting points on the effect that emotions have in trading, are the works of legendary trader W. D Gann, whose works on the subject are essential reading.

Other authors worth reading are: Edwin Lefeurve, Jake Bernstein, Larry Williams, Ken Roberts, Van Tharpe and Jack Shwager whose book “Market Wizards & The New Market Wizards” interviews some of the top traders of all time, including the legendary “turtles”.

FOREX Trading Systems for Profit

The developments in computer software, and the growth of the Internet, have seen system trading reach a wider audience than ever before.

Packages such as Tradestation, Supercharts and Omni trader, allow traders to build and back test systems, using technical indicators such as stochastics, Bollinger bands, moving averages, RSI etc., to realistically see how the system would have performed in the markets over time.

Traders who do not have the time, or inclination, to develop their own FOREX Trading systems, can buy a variety of systems off the shelf.

What Makes A Successful FOREX Trading System?

If you are buying a FOREX trading system from a vendor, there are several things to consider:

1. Do you want to be a day trader, or a longer-term trader? You need to pick a system that suits your personality.

2. Do you want to have any manual input into the system, or do you want it to make all the decisions for you?

3. Do you want to trade just one currency, or a spread? Trading one currency can increase the profit potential, but keep in mind that it can also increase the risk.

4. What is the logic of the system? It is a fact, that if you understand the system and its logic, you will have more confidence in it, than if you buy a black box system where the logic concealed.

5. What is the profit potential and what are the drawdowns? The important point here is that any system will have periods of drawdown or losses, and you need to be able to have the confidence to follow the system through good periods and bad. Generally, the bigger the profit potential, the bigger the drawdowns tend to be.

When you are buying from a vendor, check out their experience, record of accomplishment, customer support etc., and make sure you are comfortable with them.



BOLLING

chris asked:


A lot has been researched and documented about the Forex (Foreign Exchange) money making secrets. I being one of those part-time traders for a few years now, is approaching the whole Forex money making aspect from a different angle. The

ideas that are listed below are not rocket sciences, but it is basically aimed at minimizing the amount of time that you spend sitting infront of your computer, watching the Forex trading charts etc but make a reasonable returns on your investments. This article is NOT written with full-time Forex day traders in mind as they will always have to go through the daily grind of candlesticks and pips and whatsoever. This article is for those who have a full-time job or something but want to try their hands in the Forex market, but they either donot have the necessary expertise nor have the time and energy to do so.

(1). Get to know Forex traders in your Area/State/Country:

I actually find this idea the best choice if you want to make money in Forex. The reason being obvious,you donot want to spend time, neither do you have the expertise, so why not leverage on an expert trader’s skill. You can scour the Yellow Pages, Internet Business/Trade directories, manuals, journals, newspapers, articles etc to get to know about Forex Traders in your area.

Next, do a little bit of research (a.k.a due diligence) and see if they are operating a Managed fund or so called Hedge fund. Any professional Forex trader who is trading on behalf of his clients, will have to be legitimate. Filter down your list to a bunch of Forex traders who operate a Managed fund. Refer to their websites, articles, press releases etc and evaluate their Forex trading skill and professionalism. Make a visit to their office once, get to know their offers, Forex trading methodologies etc and then make a decision if you want to make some investment with them.

The best choices would be an established Forex fund manager in your area, rather than an XYZ in a ABC Country. This gives you the best chance of monitoring their performance, communication and more importantly their authenticity.

However, there are Forex traders who does not operate on a large scale and does not own a Company or anything of that sort. In this case, you can still approach them a depending upon the law in your country/area, you will have to give him the Power of Attorney to manage your Forex funds.

(2). Friend/Close associate/Collegue/Boss:

This is quite similar to (1), however this does not involve the legalities of Hedge fund management. However, this idea is more discrete and it all depends on your acquitance with other retail Forex traders anywhere in the world. Note that, a mutual trust and a healthy relationship is what it matters in such association. This way, you both will share your Forex trading secrets, merge trading methodologies of yours and evolve a new innovative platform and thus rewarding mutually. You can join in various Forex forums, business seminars, chat rooms and make your presence felt with your knowledge. Donot approach these forums with the sole idea of meeting someone special to make you big money in Forex. Such relationships takes time.

(3). FreedomRocks/ FusionATS:

I am not going to go into great details about these Forex trading platforms as there are tonnes of information available on the Internet about them. These sites basically help a novoice trader to make reasonable (if not big) profit in the Forex market by making use of their trading strategies. This does not call for a thorough knowledge on Forex, but just

the basics would do. However, as time goes by, and your knowledge improves, you can make the system work really well for you.

Finally, Forex market is BIG, it’s really BIG and very liquid and definitely money is there for those who has the will to do so. So, good luck with your Forex venture.

Chris

www.forexaim.com



STROZIER

Andrew Daigle asked:


Online trading has caused a major paradigm shift in investing. At the turn of the millennium, there are over 6 million online investment accounts, up from 1.5 million in 1997. As a result, start-up firms now compete directly with financial institutions to serve investors in the new Economy, and the clear winner is the customer. The competition between the brick and mortar institutions and the Internet-based companies has dramatically lowered the costs of investing, and empowered the individual investor to take control of their own investment strategy.

On-line trading will revolutionize the currency markets by making it accessible to the small and medium sized investor. For the first time, these investors have the ability to execute transactions of between $100,000 and $10,000,000 at the same prices the Interbank market offers for deals well over $10,000,000. This benefits both those who wish to speculate on the direction of the currency markets for profit, as well as the money manager or corporate treasurer looking to hedge against unwanted exposure to future price fluctuations in the currency markets. I am going to discuss the Benefits of Trading Forex.

Very few on-line brokers are able to offer their clients real-time bid/ask quotes, which facilitates instantaneous deal execution - no missed market opportunities. Real-time prices also allow investors to compare an on-line broker’s dealing spread with that of other pricing services, to ensure they are receiving the best possible price on all their Forex transactions.

Many on-line Forex brokers require their clients to request a price before dealing. This is disadvantageous for a number of reasons, primarily because it significantly lengthens the execution process from just a few seconds to possibly as long as a minute. In a fast paced market, this could make a significant difference in an investor’s profit potential. Also, some of the more unscrupulous brokers may use the opportunity to look at an investor’s current position. Once they have determined whether the investor is a buyer or a seller, they ’shade’ the price to increase their own profit on the transaction.

Timing is everything in the fast-paced Forex market. On-line trades are executed and confirmed within seconds, which ensures that traders do not miss market opportunities. Even the incremental extra time it takes to complete a transaction over the phone can mean a big difference in profit potential. Introduction simply, executing trades electronically reduces manual effort, thereby lowering the costs of doing business. On-line brokers are then able to pass along the savings to their client base. The fast-paced nature of the Forex market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.

Access to timely and relevant information is critical. Professional traders pay thousands of dollars each month for access to major information providers. However, the very nature of the Internet affords users free access to reliable market information from a variety of sources, including real-time price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, trader chat forums etc.

The main advantage of the Forex market over any exchange-traded instruments is that the Forex market is a true 24-hour market. Whether it’s 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading Forex so that investors can respond to breaking news immediately. In the currency markets, your portfolio won’t be affected by after hours earning reports or analyst conference calls. The ECNs (Electronic Communication Networks) exist to bring together buyers and sellers when possible.



HADDIX

John Callingham asked:


With the unreliability of the stock market these days, more and more people are looking into Forex trading. Why, you ask? It’s really simple - because it’s easier to make money in Forex trading than in any other financial markets out there, and the risks involved are notably less.

If you are interested in beginner investing for Forex trading, you’re in the right place. The Internet is home to a number of websites dedicated to helping beginners like you make it in the foreign currency market. Almost every piece of information about anything and everything under the sun is readily accessible nowadays, thanks to the advancements in technology, and doing some research is the first step in your journey if you want to earn big bucks in the Forex market.

Instead of going out of your house and browsing through rows upon rows of shelves at the bookstore, just type in the right set of keywords onto the search engine and after a few seconds, voila! You have all the information you need for beginner investing for Forex trading. You won’t have to spend a dime, and you can easily sort out the authorities on the subject matter at hand from the wannabes. It is very important to filter information and trust only those that come from credible sources; otherwise, you’ll be working your way through the Forex market like a blind person.

As a beginner, it’s important that you invest in books. Beginner investing for Forex trading requires you to study the history of the Forex market and, more importantly, predictions for future trading strategies. You also have to learn how to read charts and master the foreign currency lingo in order to feel at ease, feel right at home whenever you’re trading. While you can find several e-books online, most of the reputable guides and manuals written by Forex market experts are published outside of cyberspace. The books you buy and the information they’ll give are priceless, so you can expect great returns for your little investment.

The most important thing in beginner investing for Forex trading is keeping yourself updated. Make it a point to read the newspaper everyday. Don’t just turn right away to the business section; the value of a particular currency rests on many factors, including politico-economic issues and natural disasters in the country of that currency. It’s best if you read every page of the paper. Moreover, the market landscape of Forex trading changes everyday, that’s why it’s vital that you make it second nature to keep yourself abreast of the changing market value of different currencies, especially the major ones, so you know what to buy and what to sell.

Finally, don’t forget to take down notes. While it is exciting, Forex trading is in truth a hit and miss thing. There’s no or little insider information and the values are constantly fluctuating, not fixed. Remember to keep a record of all your losses and your profits. This is the only way you can point out your mistake and avoid them in the future.

With a little help, you can be successful at beginner investing for Forex trading.



SALGADO

Andres Munoz asked:


Whether you have been a forex trader for years or a newbie in the business, it is most likely that you have been looking for the best forex trading software considering its advantages.

To find the best forex trading software, ask around. You might have friends, family or business partners who use a particular software in forex trading, ask them about their experience with and what they like and **** about it. Second, shop around. The internet is packed with resources regarding the topic and each site you’ll find will give you additional knowledge on what to look for to consider one the best forex trading software.

So once you have a list of software to consider, what are the basic features your software should contain?

First, it must assist you not only on the installation aspect but all throughout your use of the software. Manuals must be enclosed with the software which will guide you in its use. The best forex trading software provides assistance through e-mails, 24-hour telephone service, 24-hour maintenance service and technical support anytime you need one. Some autopilots even include tips and training materials on the forex trading business which are useful whether or not you use their platform or not. It will not hurt to familiarize yourself with these data at hand if you want to stay long in the business of making money with little effort.

The second feature you should look for is security. You are providing a lot of information about yourself and your finances when you are trading online. The software must have firewalls and must be able to block hackers and keep them away. You must be able to securely fund your tradings without fear of disclosing your credit card information or other accounts. This is one feature you should not compromise in finding the best forex trading software and make sure you are not lured by the promise of big profits in exchange of security protection.

Integrity is another feature your software should provide. By this it means that all information that you need to know and will affect you and your business should be disclosed to you upfront. You should be able to test your software for a period of time, others give 60 days, others, longer for trial. You can try back testing historical data to see if they yield the promised and desired results without risking your money yet. Take advantage of this offer in order to see if you will be satisfied with the results. Many experts believe that software offering large amounts of profits in a short period of time should not be relied upon. The real deal is when you are able to make steady profits over a period of time even if you start small in capital and in yields. Contrary to what most people believe, forex trading is not a gamble but takes careful planning, consideration and decision-making to ensure better revenue. Traders that make the most money use a proven method.

These tips should help you in finding the best forex trading software so you can start making your fortune. Go ahead, start making a healthy income on the side or full-time!



SAND

Gerald Mason asked:


Why Forex trading?

This is probably one of the questions that you need a reasonable answer. There are hundreds of investments out there that you can prefer, but why go trading foreign currencies instead?

Forex investment is unique in various aspects.

Its trading volume is relatively huge compared to other market.

It has extreme liquidity or the capability of either buying or selling the currency without causing significant movement in the market price.

It has the largest number and variety of traders.

It is one of the markets that have long trading hours (24 hours each day, except during weekends.

Trading locations are almost everywhere, not just in the United States or major cities of Europe.

There are different factors that affect foreign exchange rate.

Another whooping fact that will make you excited to go on Forex trading: it has an average turnover in traditional foreign exchange market of around $1.88 trillion daily, according to the Triennial Central Bank Survey of the BIS (Bank for International Settlements). Here are the daily averages of turnover on the Forex market for the last 17 years:

$500 billion (April 1989)

$750 billion (April 1992)

$1.18 trillion (April 1995)

$1.48 trillion (April 1998)

$1.16 trillion (April 2001)

$1.88 trillion (April 2004)

From the figures alone, you will notice that the average trend of Forex turnover is increasing. It is estimated to reach as high as 2 to 3 trillion dollars within the next 8 to 10 years, if the number of traders around the world will continue to increase. As a matter of fact, everyone have the chance of getting a substantial slice of the Forex market wealth pie, especially that the Forex trading marketing is now on its automation process.

The concept of automation becomes the new trend to the foreign exchange trading market. The Interbank spot Forex market has also considered switching to the automated method as well.

There are several benefits that a Forex trader can derive from automated Forex trading. Here are some of such benefits and figure out why Forex trading as well as other investments (futures and commodities) prefer the automated process.

Through automated process, transactions can now be done in real time. Although manual systems have existed for quite some time now, it is difficult to achieve such benefit that the automated Forex system can offer to its traders. All of the trades can happen within a few milliseconds and can be a big plus for automated transactions against the manual system. In fact, there are problems that are addressed using automated Forex trading especially if the trader is losing a few times in a row that prevents him from making new trades. Such problem could be addressed using the automatic trading system.

With automated Forex trading, you will have a greater diversification. It means that you can trade in various markets in different time zones at a time. You can execute trades with traders from Singapore or London even it is already 12 midnight in the United States. This benefit allows you a multiple exchange model option. You can use varying trading models to evaluate short-term data. This means that you will be able to predict the trend for a shorter period of time, let us say from fifteen minutes to half an hour.

As previously mentioned, the Forex market is unique because of its extreme liquidity. This liquidity is increased when the market goes automated.

Risk management problems are solved through automated Forex trading. International checks, which are commonly used in making purchases on Forex market, are synchronized through automated technology. Since the transaction in an automated process is now on real time, there is a slim chance that the payments will be delayed, reducing the risk of non-payment by either parties. Although there are problems noted with the use of the automated system, it can be fixed through consistently-updated technologies.

With automated Forex trading market, the prediction of $2-3 trillion average daily turnover within the nest 8 to 10 years can be changed within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be among the existing lucrative business around the world.



BRISBON

Rob Best asked:


Imagine being able to pull large sums of cash out from the biggest market on the planet, at any time you wish, day or night. Imagine being able to access this cash from anywhere - a cafe in Paris, a Californian beach, an Alpine ski resort. Imagine making profitable trade after profitable trade, week in and week out, and making more than enough to fund your luxury lifestyle.

Sadly, for most people, it’s really not that easy.

Here’s a frightening fact: nearly 50% of foreign exchange traders lose money to the point where they have to stop trading altogether, and go and do something less risky instead.

If you’re trading currencies right now, or you’re thinking about starting, then you have a 1-in-2 chance of losing your trading pot.

They’re not very good odds, are they?

I’ve been trading currencies for over twenty years, on and off, and mostly without great success. When I discovered that nearly half of all traders lose money over time, I nearly gave up myself!

The one thing that kept me going through the dark days was knowing that the foreign exchange trading software, now available to the individual trader for a modest investment, or even for no investment at all, are all much better than the software that professional City forex firms were paying many thousands a year for only a decade ago.

I reckoned that the quality of the trading software tools available to us would continue to go up over time, and prices would continue to come down. And one day, we’d have access to some of the best foreign exchange software at silly prices!

I believe that day has now dawned.

As ‘amateur’ forex traders, we now have the choice of three directions to take that will allow us to play with the “Big Boys” - and win.

Option 1 - Pay For Trade Signals

There are plenty of companies and ‘expert’ individuals out there who will deliver trade signals to you by phone, SMS or email. I’ve used a couple of them myself, and they can be pretty good.

Just so we’re all clear, trade signals basically come from the market. They are either fundamental (good farm payroll numbers, an interest rate change and so on) or they are technical, from patterns forming on the charts, or a combination of the two.

There are literally hundreds of different signals to choose from, and a service should pass on to you only those they think have the highest probability of creating a profit. By the time you get a trade signal, though, it will simply tell you the currency pair, whether it’s a Buy or a Sell, and some idea of stop-loss and profit-take levels.

The problem in this system lies in the information being delivered at the right time, and you being on hand to act upon it. The other problem is cost - some of the better ones will charge you several hundred dollars a month for their service. Of course, this adds to the pressure on your trading account, as you have to make the cost of the FX signal service back before you start to make any money for yourself.

Option 2 - A Managed Forex Account

Here, you hand over your trading capital to a professional forex trading company who will trade for you in the markets.

There are several advantages to this route…

* You are hiring a team of full-time professionals to trade on your behalf

* No matter how good your trading software might be, theirs will be even better!

* You need spend no time at all staring at screens and analysing charts

* If you find a good team, it can work out very profitable for you.

However, there are fees to be taken into consideration. Generally, you will be charged a yearly management fee of between 1% and 3% of your trading capital, and a performance fee (usually charged quarterly) of between 10% and 35% of any profit made.

(If the performance fee seems high to you, think of it this way. Your team of foreign currency traders are trading currencies for a living, and you are benefiting from their expertise. Plus, if they charge you 25% of profits, you’re still getting 75% of a sum that would not otherwise have been made. And, last but not least, a performance fee will motivate the team to do well for you - and that’s what you want!)

The downside, for me at least, is the lack of control. I get a real buzz from trading, and I don’t want to lose that by handing over my trading capital to a professional team.

You’ll also need at least $10,000, probably nearer $50,000, in order to get started with a managed account.

Option 3 - Generate Your Own Trade Signals

Years ago, this meant pouring over yesterday’s paper charts (for which you had to pay a small fortune to get!) with pencil, ruler, and a stack of charts going back several months.

Nowadays, all that can be done with a good paid charting service such as eSignal, or even for free with BigCharts.

However, it still takes time, and you still need to know what you’re looking for, and it takes further time to build up a skill and an affinity with charts before you start making consistent, profitable trades. (And that’s if you’re in the lucky 50% of traders!)

Recently, a new solution came onto the market that takes away the potentially expensive learning curve, and all this time-consuming analysis, and basically does it all for you.

This is the option I like! Here’s how it works.

Step 1 - you download a very inexpensive ($198) piece of stand-alone software. This is what will generate the trade signals for you.

Step 2 - you feed it the latest data from the market you want to trade. All you need to do is take data from your online trading platform (and it doesn’t matter which one you use) and feed it into the software.

Step 3 - if it brings back a trade signal, you trade it (or ‘paper trade’ it if you want to test it first)

Step 4 - your profit-taking limit is hit, and you bank the profits!

Does this sound a bit too good to be true? Well, let me give you a bit of background.

First off, the guy behind this incredible trade signal generator is a very successful trader in his own right, who used to work for a major international bank, and who now makes thousands of dollars a day using this self-same software. A behavioural psychologist and a mathematics professor helped him in developing this trading tool.

Second, last year he took $100,000 and turned it into $641,147 in just two months, using his forex trade signal generator! Now, that was surely an incredibly good run, but it does demonstrate just how consistently good these trade signals are.

Happily, you don’t need $100,000 to get started! You can open a forex trading account with as little as $500 but, realistically, you’d want to start with between $2,000 and $5,000 of trading capital.

You also don’t need experience. The software is easy to use for anyone from a complete novice to a seasoned trader. It comes with full support, an accompanying manual, plus a lifetime of free upgrades, as and when they happen.

So there you have it - three ways to significantly increase your profits from forex trading. The quality of paid-for signals varies enormously, depending on the skills and abilities of the person or group supplying them. If you get a good management team in place, they should be looking to deliver around 5% per MONTH on your money (though you must understand the accompanying risks, too).

Using the software in Option 3 - well, you’ve seen the results the creator had over a 2-month period. No one can guarantee you’ll see the same, of course, but it is an extremely fine track record! If you were able to get results that are even half as good, wouldn’t you be delighted?



JELLISON