If you have just started trading in the FOREX market or your considering it , These four basic rules could save you a lot of money and keep that shirt on your back. Of course Fap Turbo ,Forex megadroid  and a host of other forex trading robots are waiting in the wings but we will look at them later

 

The Five Basic Rules for FOREX Trading

Yes it is worrying starting your journey into FOREX trading .The rules and methods of trading can seem like a lot to deal with . Of course you will learn many things along the way , like which currency pairs perform the best and trends in the market.

There is however key rules and methods you should be aware of in order to keep loses to an absolute minimum and maximize profits. You will avoid many pitfalls as well as recognize opportunities that will boost your profits in the FOREX market.

These are the four rules/methods we will cover : 

1) Don’t Over Leverage Your Investment 

2 ) Quit When Your Ahead Know When That Is

3 ) Do your Research Before Making Trades 

4) Stop Loss Orders Protect Yourself From Large Losses 

5) Consider Getting Trading Robot That Will Save You Time and Money 

1-Don’t Over Leverage Your Investment 

It’s so easy to get caught up in the buzz of FOREX trading , However Leverage is a two edge sword. Leveraging is basically trading more money than you have in your portfolio . For example If you  have $2000 in you account some brokers will allow you to buy $50,000 of a currency . 

Its better to get the know the market over time than take unnecessary  risks. Don’t get carried away as you need a steady well thought out approach to make a long term consistent  income with FOREX trading  . 

2-There Is A Time to Quit - Know When It Is

When your riding high on a profitable trade ,many people don’t want to sell in the hope there profits will just keep on rising . Well values can fall as well as rise so don’t get greedy and lose your gains. 

However you don’t want to cash in to quick and miss those few extra gains. Some trades you make won’t be successful. But over time and careful studding the market trends , you will get a feel for when to start and stop trading. Even Experienced traders have a few losses along the way , but over all they have far more wins that losses and you will too. 

3-Doing Your Research Before Making Trades

Research is a word many people don’t like , because it involves extra work with no apparent benefits . Well in the FOREX Trading market , having an idea of history and current trends can be the difference between winning and losing . Don’t treat the FOREX market like a casino because you will lose far more than you win. Do your research. 



4-Stop Loss Orders For Protection

Stop loss is part of a system that stops you from losing too much of your investment  or profit , basically if the value of the currency falls to the value you set in the stop loss , Stop loss will sell and stop you from losing any more profit .

Stop loss should be st up before you start to trade ,and  you need to decide the value that the stop loss activates.  The successful traders use this safety method all of the time . 



5-Consider Getting Trading Robot That Will Save You Time and Money 

Well after reading the four rules above you must be wondering if there is an easier way . 

Well yes there is , FOREX automated robot software , not only trades on average better than humans it can also trade night and day with no interaction from you. Real live account studies have shown one particular Robot Doubling Profits every month . 

To discover which is the best FOREX trading robot  visit the review site below 

Click Here: Top Three FOREX robots Reviewed

www.softe4u.com/fap_turbo_review/



Thanks to Forex Trader for contributing this article to our Currency Trading blog:

Trade Currency Options

Can you answer Sir M’s question about Currency Trading?:

Hello.

I love to know what is the best Foreign Exchange (forex) Platform trading in year 2009. I want to start trading forex but still confuse to choose the best platform.

Best Currency Trading Software

It is becoming increasingly easier to pick a winner in the Forex market – and when I mean easier I mean, short the US Dollar.

The US Dollar dropped to its lowest point in a year against a basket of currencies on Tuesday after broad gains stocks brought a return of risk appetite.  Trading volume was markedly higher as investors returned from their vacations and began to assess the happenings of recent weeks.

The Dollars fall was also sparked by the rise in commodity prices such as gold which traded above $1000 for the first time since February.  Concerns over the USD’s status as the reserve currency were also a factor as a report by the United Nations which called for a new World Reserve System diminished the demand for the Dollar.

 at 11:15PM GMT, the Us Dollar was trading down 1.14% to the Euro to 1.4494, down 1% to the Japanese Yen to 92.23, down 1% to the Sterling to 1.6494, up .07% to the Canadian Dollar to 1.0785, down .8% to the Australian Dollar to .8622, down .5% to the New Zealand Dollar to .6959 and down 1.4% to the Swiss Franc to 1.0463 

The US Dollar dropped to its lowest point in a year against a basket of currencies on Tuesday after broad gains stocks brought a return of risk appetite.  Trading volume was markedly higher as investors returned from their vacations and began to assess the happenings of recent weeks.

 

The Dollars fall was also sparked by the rise in commodity prices such as gold which traded above $1000 for the first time since February.  Concerns over the USD’s status as the reserve currency were also a factor as a report by the United Nations which called for a new World Reserve System diminished the demand for the Dollar.

 

At 11:15PM GMT, the Us Dollar was trading down 1.14% to the Euro to 1.4494, down 1% to the Japanese Yen to 92.23, down 1% to the Sterling to 1.6494, up .07% to the Canadian Dollar to 1.0785, down .8% to the Australian Dollar to .8622, down .5% to the New Zealand Dollar to .6959 and down 1.4% to the Swiss Franc to 1.0463

The Australian Dollar has been stellar in the past few months, and I have made no secret of my love for this currency. But, it is the US Dollar that has now caught my eye as the most lucrative trade, whichever currency it is paired up with, if you happen to be on the short side of things you have been doing quite well.  Even against the pathetic Sterling the Dollar has been losing and I do not foresee this changing anytime soon.

One reason for this is the new development out of the United Nations, which openly called for a “new World Reserve” currency system – a new world order of things if you will.  Now, keep in mind the UN has not been a fan of the US for some time now, despite the US paying most of its bills and being a staunch supporter of most of its social programs such as UNESCO and UNICEF.  The world hates the top dog and if it were not for the veto power the US holds, I know there would be much more open criticism and dare I say, sanctions, against the world’s largest economy. 

But the announcement from the UN comes on the heels of President Obama deciding that he will be the first sitting US president to chair the all powerful (I am being cynical here) Security Council.  In a gesture meant to help bridge the gap between the impression the world has on the “stuck-up” and “maverick” United States, the President wants to approach the world stage with an open hand and show that we can all work together.  Now, I will bet that this move has less to do with nuclear proliferation than it does the UN’s call yesterday – but I am not qualified to make such an accusation.

In the online Forex marketplace we have seen the Dollar start its collapse.  China, which had kept mum on its concerns over the Dollar for a few months, is also back into the picture.  Speculation is that their $2 Trillion Dollars in USD reserves is being liquidated quietly and relocated to gold – which would explain the sudden increase in the shiny commodity.  Aside from this, they are also becoming vocal once more, sending a top Communist party official to the media using words like “dismayed” to describe how they feel about the US’s free use of the Treasury printing presses to cover their bills. 

Cheng Siwei, a top leader in China told the UK’s Daily Telegraph that Beijing was being compelled to redesign its foreign currency reserve policy.  No doubt this is having a grave affect on the USD  and it is the reason why I believe that no matter what the data shows about a recovery, the USD is destined for a downward trend in the coming few months.  China does not do things half assed, and you can bet that this is not the last we will hear about discontent from the US’s largest lender.  The season is ripe for a controversy – its September, and historically it has not been a good month for the USD – my bet is that this will be one of the worst on record.  Sit back and short – you won’t be sorry you did.

 



Thanks to Forex Ace for contributing this article to our Currency Trading blog:

Making Money Online

Can you answer Tom C’s question about Currency Trading?:

I’m after a book introducing me to the inner workings of Forex trading. I’ve taken a quick look at a few books, but they all appear to be written by people that make a living from Forex trading, rather than writing about how to do it & providing seminars?

When you Google or Wikipedia the authors, you don’t seem to find a lot of information about them, other than they have written a book!

Best Currency Trading Software

Can you answer Bonibert J’s question about Currency Trading?:

If I have the money, how do I make it grow in forex trading?

Forex Trading Strategies