Your Money Tips

Learn Forex Trading

There are a ton of Forex expert advisors on the internet today, in fact hundreds of them. It virtually makes it very difficult to spot the expert advisors that essentially work. With so many choices and such a big amount of different Foreign exchange robots trading on multiple currency pairs there needs to be an answer to identifying the right trading robot. The first thing one must ask themselves when looking out for a quality Forex expert advisor is, what sort of past performance will the trading robot have? What sort of trading accuracy are we dealing and which currency pairs will the trading robot trade on? The worst mistake that most expert advisors make is attempting to offer a solution or mathematical formula that works for each currency pair. It’s simply not feasible to have a Foreign exchange robot be an expert on each currency pair because of the fact that each pair has it’s own patterns and daily ranges. Therefore when identifying a trading robot one of the first things we look for is an expert advisor that focuses on just one currency. Secondly we investigate it’s previous performance over the last 5 years. If the trading robot has performed well with minimal draw down and has sustained profitable months, than we are half way there. Next, we analyze the Forex robots money management. We’ve got to ask ourselves, what was the maximum drawdown over the past 5 years? Anything with less than 30 p.c draw down over the last 5 years is a definite positive. Another query we would ask ourselves is, will the trading system employ a stop loss? Some trading systems won’t employ a stop loss and agree with it not can be terribly profitable. A system that doesn’t employ a stop loss has to have a trading accuracy of eighty percent or higher where the winners obviously out weight the losers by over half re dollars. Finally, figure out how much risk you are prepared to take. Trading with an expert advisor or any system at that matter does need a little bit of risk, yet if handled properly can be intensely profitable. Never use a trading robot without first testing it in a demo account. Only after the trading robot is able to sustain profits after a quarter should one think about using the trading system in a live account. Be certain to find a system that has a very high success rate, uses correct money management and has been completely back tested and you’ll be bound to end up a winner.

Register for Forex Time Machine

Why are such a lot of forex traders NOT succeeding? I had an opportunity to discuss with Bill Poulos today and posed that question to him. Do you know what he said? ‘most experienced forex traders wait too long to move stops to guard their positions and often watch their profits disappear.’ And that wasn’t all — he went on to explain a straightforward concept, similar to Gambler’s Ruin that permeates the forex trading world. Basically, once a trader sees profit in a trade begin evaporating they get solely centered on getting back the lost profits. They forget to see the need to guard the profits that they still have in the trade. The result? A reversal continues, the once-profitable trade becomes a loss-making trade and the trader’s frustration mounts. I have seen this myself and it’s the easiest trap to fall into, because you convince yourself the Euro Buck just hit that intra-day high and it can get back up there! Except – it doesn’t and it continues to drag back till your 20 or thirty pip gain turns into a twenty or 30 pip loss. that could be a pretty dreadful example – but have you had that happen to you? What do you do? Bill had an answer for that, too! He said most traders do not know what the available profit potential is for any single trading event — that is, they don’t set profit targets which allow them to take what the market gives them and then exit the trade in multiple steps. And, without a technique that protects capital first and manages profits second, there is no way the average forex trader can survive in the foreign currency markets. in order to position yourself correctly, traders MUST have a multi-part methodology — one that teaches them the simple way to identify the BEST available trades, obviously sets out a profit target, helps manage the taking of those profits and from the outset, teaches traders how to protect their valuable capital! He calls this handling risk first, taking profits second – and it’s actually groundbreaking thinking. Watch the first part of his new, free video series on this right here [*CO].

Profits Run – Forex Time Machine

By learning to manage risk FIRST, traders will find their trading transformed as they can approach forex trading with an entirely different mind-set, a plan for erasing risk and a solid set of rules by which to trade.