The Do's And Don'ts Of Online Forex Trading Systems.

By John Eather

What is an online Forex trading system? First off, Forex, Foreign Exchange or FX are all used to when describing the trade of currencies throughout the world. It is the biggest market out there with trades exceeding 3 trillion dollars a day. This type of trading is on done on the hopes of making a profit. A trading system allows you to trade these currencies over the internet.

Always having someone to trade with provides you with superior liquidity. Especially considering that this market is available for trading every day all day and night. You don't have to wait for a ringing bell.

There are several do's and don'ts in Forex trading. What are they? Well, pay close attention. These tips could save you some trouble.

Trading based on prior market history is what trading robots do. Don't use them to do your trading for you. Everyone would use them if they earned you money.

Knowing that not every trade is going to be a winner is important. You are going to have some losses. Telling the future is not possible so, make sure the odds are in your favor with every trade you make.

Do not follow the lights. Think through your decisions to buy or sell. Don't rely on a green light or red light to make those decisions for you.

I don't care what your broker tells you, they are in it to make money. The term commission may not be used but they do make money off of every trade. They call it the spread. It is the same thing as commission.

I've discovered that the longer you sit in front of your computer trading, the worse you do. Why is that? You start second guessing your trades and end up undoing everything you just did. Then again, it means that you won't have a life either. Take about 20 minutes each day to place your trades and then use the rest of time to do things that actually make you happy.

Finally, waiting for the economy to get better can be a mistake. Waiting on the media or someone else to tell you what is going on is not going to help you. Reason being is that the stock market, or economy, does not effect currency trades or potential profits in the world of Forex. Decreasing your risks and maximizing your potential are the most basic rules to being a success regardless of the economy. - 23222

About the Author:

Want to find out more about online forex trading system, then visit John Eather's site on how to choose the best forex trading robot for your needs.

Fibonacci ... Pivot Point Trading (Part II)

By Ahmad Hassam

Pivot points are considered to be leading indicators unlike most of the other technical indicators. This makes them highly useful to the traders to tell them about the market sentiment whether it is bullish or bearish. There are a number of pivot points that you need to calculate. How is the pivot levels calculated? Beginning with the main Pivot Point that is calculated from the previous day's key price points, the resulting support and resistance are subsequently derived from the following calculations:

Resistance 1 R1 = 2PP- Previous Low. Resistance 2 R2 = PP + (R1-S1). Resistance 2 R3 = Previous High + 2(PP-Previous Low).

PP (Pivot Point) = (Yesterday's Low + Yesterday's High + Yesterday's Close)/3.

Support 3 S3 = Previous Low-2(Previous High -PP). Support 2 S2= PP- (R1-S1). Support 1 S1 = 2PP - Previous High.

Now most of the trading software has the inbuilt function to calculate the pivot point for you. The main pivot point can be calculated for any time interval. The main pivot point is very important. After calculating these pivot points they are plotted on the currency price chart. Trader's can calculate the current day's pivot points using the above formulas based on the previous day's price data.

Many traders are afraid of pivot points. They consider them to be difficult to understand and master. Nothing is far from the truth. Breakouts or bounces may be traded with pivot points. Once these pivot levels are calculated and plotted, they are used in much the same way as Fibonacci Retracement. These pivot points are often also used as profit targets. Pivot points also indicate whether the market sentiment is bullish or bearish. Traders also use pivot points as reference levels to provide information as to whether the current price is relatively low or relatively high within its expected price range for the day.

You can further refine your pivot point levels by using the S1, R1 and other levels. S1, S2 and S3 as well as R1, R2 and R3 are used as references in pivot point trading. For example, traders may look for long trading opportunities with the view that the price will reasonably move towards equilibrium around the main PP level if the price is near the day's S2.

Many traders use different time frames in their trading decisions. You can also calculate the pivot levels for a week and for a month time frame too. Instead of calculating the pivot points for the current day you can also calculated the above levels for 4 hour charts as well as 8 hour charts.

When calculating the pivot points for the other time frames just replace the day's highs, lows and the closing prices with the appropriate time frame highs, lows and closing prices. Both Fibonacci and Pivot Points are excellent technical tools that often encompass entire trading discipline in themselves.

In an extremely bullish market condition, the pivot point can become the target low for the trading session. This number represents the true value of a prior session. It is important to understand that it can be used as an actual trading number in determining the high or the low of a given time period, especially in strong bull or bear market conditions.

If the market gaps higher above the pivot point in an uptrending market, then a retracement back to the pivot will attract buyers. Until that pivot point is broken by prices trading below that level, traders will step in and buy the pullback. The opposite is true in an extremely bearish market condition; the pivot point will act as the target high for the session.

Technically speaking, in a bearish market, the highs should be lower and the lows should be lower than in the preceding time frame. Generally prices come back up to test the pivot point if a news-driven event causes the market to gap lower after traders take time interpreting the information and the news. Sellers will take action and start pressing the market lower again if the market fails to break that level and trade higher. - 23222

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. Try These Cash Printing Forex Signals From Heaven! Learn Fibonacci Retracement

What You Need in Forex Software

By Joe Mantelli

Because of automatic forex trading systems, there has been an increase in interest in making money through foreign exchange trading. This was a market which only saw banks and other large financial investors as players in years gone by but these days it has become attractive to medium and small time speculators. What happened? What makes this one of the largest financial trading markets in the world?

The advent of teh internet and advanced communication technologies coupled with automated forex trading systems means today anyone can start trading provided he has a computer with an internet connection, a forex brokerage account and good knowledge of how the system works. The global market is open all the time so to keep your finger on the pulse, you need to monitor the market closely. With the help of automated systems, you can pick up currency information as well as its asking and selling price ahead of any buying decision. With the help of a broker and your seed investment amount, your purchase and sales orders can be carried out immediately.

Automatic forex trading systems can help you reap the profits of the market despite the fact that you are not a professional trader. When managed accounts use an automated trading system, the program can easily manage everything for you. Since you do not perform the actual trading yourself, these auto systems help you save time. Unlike manual trading, the auto systems allow you to manage multiple accounts simultaneously with the help of a trading platform. These systems have the advantage of trading with multiple systems in more than one market which can be difficult to manage manually.

With forex trading systems that operate automatically, you can trade any time of the day or night and you do not have to be present. There is less chance of missing any profitable opportunity if you are not present in front of your computer. Taking advantage of multi-prong forex strategies and various systems therefore becomes a lot easier. Each system is designed to be activated by some specific trade factors so you can spread your investment and get maximum returns with minimum risk.

The automated forex trading system also does away with all human emotions which often affect rational trading decisions. You have the power to manage several money-pairs and effectively trade in them too.

Several factors and variables influence the forex market so just using an automated system can not guarantee you long term success in this venture necessarily. Forex software such as these automated systems are simply a way to help you make better decisions and execute them in a timely fashion. To suit your personal needs you can always program and customize the automated forex trading system. - 23222

About the Author:

Looking for the best forex software to help automate your trading? Click on the link.

Day Trading Forex Currency

By Joseph Frankler

The forex market is still a very new market to most people. They are not yet familiar with the possibilities that it holds. Even if you currently are a stock trader you may not know that you can become very wealthy day trading forex currency. The time is now and bedrooms around the world are becoming headquarters for currency exchanges.

With around $2.5 trillion per day in exchanges this is by far the most dynamic market on earth. And the fact that you can get in on the action from your living room 24 hours a day, five days a week, is very exciting. The time is now to learn and get started. The money to be made is infinite.

One thing that makes day trading forex currency preferable is the use of leverage. With forex, every time you make a trade you can actually control very large sums of money. This means the returns that you get are a lot larger than normal. With some brokers offering leverage of 500:1, you can really get a bang for your buck.

Day trading forex currency is all about the system that you're using. A trader is only as good as the system that they employ. If you don't have a winning system, then you're probably not going to be very successful in the field. It takes a system with a proven track record to profit in this industry.

Advancements in technology has led the forex day trader to robots and expert advisors. Where we once spent hours analyzing charts, this now is done for us in minutes automatically with a piece of software. The time its saves you is priceless and is yours to test new strategies.

Your money management strategy is going to be a huge part of your success day trading forex currency. This is what is going to control your risk on any particular trade. Most traders try to stay within 1-3% of their total account per trade. This prevents you from losing everything on one trade but still allows you to profit.

Finding a good broker is also an important step that you'll need to take before you start trading. There are many different brokers out there that would gladly extend you an account. However, you need to figure out which one works best for you. You want them to be regulated in a country that you feel comfortable with. You also want them to have all of the options that you need as a trader.

Regardless of how you decide to start trading, the important thing is that you take all of the necessary steps to becoming a day trader. Day trading forex currency isn't something that you just pick up overnight. It is a skill that can be learned and once you have the knowledge, you will benefit from it forever. - 23222

About the Author:

Interested in day trading forex currency? Jim Sullivan's blog is constantly updated with the latest info. http://tradingforexblog.com

The Importance Of Forex Blogs

By Bart Icles

A blog is the shortened term for "weblog" and which is a type of website that is maintained by a person who makes regular or daily entries like commentaries and descriptions on certain subjects and events of interest, and supplemented with some form of graphics or videos. The entries are showed in a reverse chronological manner. The word itself can be used as both as a noun and a verb. In this case, we will be discussing a Forex blog.

Forex blogs are very helpful mediums, especially for those new to Forex trading, of which can broaden and impart many useful information of anything relevant in the Foreign exchange community. A Forex blog may contain some very important information that revolves around Forex trading and the Forex market, breaking news updates, current market trends, market analysis, articles, and Forex trading forums, to name some. The Forex blogs that can be found on the Internet differ in scope and coverage. Majority offer some of the best useful information and advices that most find very helpful, and yet one may encounter others that are more than just plain a waste of your precious time and effort.

Aside from this, it can provide some lessons not found in a Forex trading course or tutorial that can widen anyone's knowledge on the currency market. The good quality Forex blogs are a great ally when it comes to teaching someone lacking the skills and knowledge needed to operate the market correctly and safely. The most popular and most visited sites are being run by those who have an unquestionable understanding - the actual and experienced traders - who all have been in the business for many years already and knows how the market works forward and back.

When searching for a Forex blog, some things to watch out for is if the site is maintained by a legitimate Forex expert or Forex trader who has a lot of experience trading the market for quite some time already. Also, it should have information and data on the market that is current, offers some insights and advices regarding past and present trade transactions.

As a business investor, the ability to survive and go on to become a success depends on being able to acquire the latest and most relevant events in real time. With the Forex market being a very volatile investment market, fluctuations and changes happen by the minute, so having the most updated market trends and other essential information can really mean the difference between profiting big time or to losing it all in one day. - 23222

About the Author:

Forex managed fund starts with a desire to learn and a drive to become a great trader. Learning mini forex trading platform takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.