Being successful at Forex trading means putting in a lot of work, understanding the game and learning to be disciplined, objective and above all else being in control of your emotions.

The risks in Forex trading are significant but if you know what you’re doing and learn the basics prior to investing any money at all, you stand a better chance of success.

The reason for writing this post is that many people jump into forex thinking that they can make a quick buck, and whilst it is possible to make good money, more people just end up losing it. So the following principals, if you follow them will hopefully help you not to become such a person.

Don’t expect to earn an income from Forex trading

This is perhaps the most important principle of all. It’s more to do with your mindset than anything else. You should enter into the Forex market with surplus cash you hope to invest. Never expect an income as the risk is too great to expect this.

If you can treat it as a game which you pay to play, you will be able to focus on getting good at the game. As with anything this will take time, and it will cost you a few losses first.

Find a system you can work with

Learn as much as you can about Forex and how it works. Furthermore, find a system of trying to gauge which trades to make and when, so you have a blueprint to follow. No blueprint will be guaranteed to work all the time, but you should do your research to find and understand one that gives consistent results.

A common mistake is to spend all of your time looking for the ultimately system (which doesn’t exist by the way), you would be better off just finding a good, simple system and focus your time on learning to use it well and consistently.

Work with play money to start with

The best way to understand how trades work is to use play money. Imagine you buy a certain amount of one currency and then put your system into action. Give yourself a pot of $2,000 to start. See how your trades work out and add or subtract the relevant amount from the pot as you proceed. This will make it easier to make real trades when you have accumulated knowledge and play money.

It is tempting to put in real money right away, especially if your first “pretend” trade goes well – but to make money you need to be able to win consistently; otherwise you are just gambling.

Be prepared to learn over several years

Don’t rush into this market expecting or hoping to make a quick profit. It could happen but it is far more likely to happen over time rather than immediately. Be prepared for the long journey.

Keep Accounts For Your Play Money

As I mentioned above, if you can’t win consistently you are gambling. Stick to play money and keep accurate accounts so that you can see exactly how you are performing.

If you don’t keep accounts it is easy to convince yourself that you are about breaking even when in reality you are losing a little bit here and there, and that can really add up.

Summary

The Forex markets are no place for a novice. But the more you learn and the more you understand, the easier it will be to press ahead and become one of the traders who actually do well. There is money to be made here – but it might be more challenging to do than you think.

About the Author   Ricky Peterson  (1 Posts)

This post was written by Ricky from currencyconverter.co.uk , a site dedicated to currency, exchange rates and the money markets.

4. AvaFX

Click here to open an account with Ava FX

AvaFX is a reputed forex broker that has many advantages. Service features of this forex broker include:

• Variety of billing options including PayPal
• Meta Trader Platform
• Automated trading strategies
• Award winning unique platform for those who don’t use MT4
• CFD, Metals and Oil trading in addition to forex instruments

Broker Rating: ★★★★★★¼☆☆☆ 

3. Etoro

Click here to open an account with eToro

Etoro is one of the most innovative forex brokers in the market. Its newbie-friendly platform is exclusive and helps traders make the right decisions from day 1. The latest addition to its service arsenal is the CopyBook trading which literally allows traders to copy other successful traders automatically. Etoro’s service highlights include;

• Newbie friendly platform
• Web-based trading platform
• Excellent customer support
• Various funding options including PayPal
• Muslim friendly accounts available on request
• Excellent FREE forex course for live account traders
• Attractive deposit bonuses

Broker Rating: ★★★★★★★☆☆☆ 

2. Plus500

Click here to open an account with Plus500

Plus500 is one of the most undervalued brokers in my opinion. Except for not supporting Meta Trader 4 as a trading platform, Plus500 is an excellent forex broker whether you want to trade forex, CFD, commodities or index trading. Please be advised that this broker may require document proof of your identity before you can withdraw your profits. This procedure is in fact a measure of protecting its clientele, so its another reason to be confident about Plus500 as a brokerage firm. Residents of Russia, Ukraine and some other post-soviet union countries are not allowed to open accounts at Plus500.

• Some of the service features are:
•  FREE $20 on account opening
• CFD, commodities and index trading in addition to forex
• PayPal supported broker

Broker Rating: ★★★★★★★¼☆☆ 

1. TradingPoint

Click here to open an account with Trading Point

Trading Point is the most sort after forex broker that I have worked with so far. No requotes with transparent trading conditions to compliment excellent customer support. This forex broker also has numerous funding and withdrawal options including PayPal. Minimum account size for real accounts is very low so that you can actually trade even nano lot sizes.  This means you can even try Trading Point on a live account with a nominal deposit. Also has muslim friendly accounts on request. Overall Trading Point is the best forex broker that meets majority of the feature-requirements demanded by both newbie and expert forex traders.

• Trading Point forex broker’s features include;
• Meta Trader 4 platform
• Web-based and mobile trading platforms as well
• Attractive bonuses on deposits
• Very low minimum account size
• No requotes
• Muslim friendly accounts
• PayPal and numerous other funding options

Broker Rating: ★★★★★★★★☆☆ 

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

With just a click of a button, you can follow almost any trader you deem successful. But it certainly helps to do some research before starting. The included ranking system is quite useful, but be warned; only closed trades are taken into account for ranking purposes. I personally have seen some traders keep several losing trades, even over weekends for the sole purpose of maintaining their track record.

If you somehow happened to chose one of those traders who win at rate of 100%, be prepared to maintain high draw-down levels in exchange for trades closing in low profits. Because their take-profit levels are bare minimum and usually they don’t have a stop-loss (if they have any SL, it would be multiple times larger than the profit margin). So with a little bit of technical analysis and natural fluctuation of the instruments, trades usually trigger the take-profit levels.

Then there are some truly successful traders who naturally don’t mind having the odd losing-trade. These sort of traders have a winning ratio around 90%. But the winning ratio alone is not a sufficient yardstick. Its also important to assess the smoothness of their growth chart, number of current open trades and so forth.

The burning question is how to find perfect traders within the Etoro Openbook system? Sure, its not easy. But certainly not impossible. A good rule of thumbs is not to put all the eggs in one basket. Its obviously a low risk approach to copy 4-5 traders who has a good reputation given that you constantly monitor your trades. Remember, monitoring the trades can substantially improve profit levels.

Another brilliant strategy is to find traders who trade smaller time frames 15min-4hr. This is helpful in maintaining a low draw down, because trading on longer time frames (more than 1Day chart) can hurt smaller accounts with heavy draw down at times.

Overall, Etoro’s new social trading platform – Openbook rocks in the sense that the average person don’t have to worry about all confusing technical or fundamental chart analysis any more. If you select the right traders to copy and manage your funds correctly, you can be absolutely certain to make lot of profit by trading forex on Etoro’s Openbook.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

Does Elliott Wave trading work? That’s a question to ask the expert traders who subsequently do not miss to apply the theory in some way in their trading methods. Whether it’s forex, stock or options, Elliott Wave theory is a popular strategy amongst best of the traders. On the outlook it must be an effective method, this many traders using the Elliott Wave theory should make it one to consider at least.

There are two types of trading indicators. Leading indicators and lagging indicators. Leading indicators provide trade signals before a trend occurs while lagging indicators give trade signals after a trend or a reversal occurs. Oscillator indicators based on Elliott Wave theory makes up great little leading indicators for longer profit rides. But one has to be very careful with the amount of fake signals that leading indicators usually produce.

The Elliott Wave theory is the heartbeat of the collective traders’ soul. Which means if you want to understand the Elliott Wave theory you need to understand the mass psychology of the traders. When you look at real time charts, they actually move in waves whether it’s a strong movement because of a news release, you would probably be able to spot smaller reversal waves within the overall trend.

Smaller waves within a bigger trends are more visible in smaller time frame charts of the same market. One might guess that these are practical display of the behaviors of the collective mind of traders and rightly so, is there any other explanation for this?

One best way to find out, if Elliott Wave trading works in the real world, is to apply the theory in historical data. There are plenty of software freely available that you can test your trading system based on Elliott Wave trading, simulating a real time trading environment. Testing and practice gives traders more confidence on their trading systems.

Elliott Wave trading is more unlikely to be successful when used on it’s own. It is very effective in taming the trader look for the trend, making that behavior itself the cause of the Elliott Wave.  it’s a mammoth task to actually prove the phenomena scientifically or mathematically.

While, Elliott wave theory or any other theory for that matter, might work wonders for some, others may find it difficult to bring it inline with their trading styles and personalities. So a short answer is, Elliott Waves trading definitely works. But does Elliott wave trading work for every trader, may be not.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

If you are actively trying to locate best forex brokers in the market, you must already know its not easy as locating the best barber in town. Because ‘Best’ in Forex is defined by its own terms and not necessarily by the quality of service which almost every so called “top forex brokers” willingly provide.

What makes the situation even worse is that a majority of novice forex traders don’t even know the consequences of trading with supposedly the “best forex broker”, who eventually turns out to be just a reverse market trader. Do you know what that means? It means many novice traders are running a race they can never win.

Nuf danger signs and alarm bells! Now you wanna know how to make a shortlist of best forex brokers. Dealing desk brokers act as another entity between your trades and the actual market. So, dealing desk brokers have full control over your positions.

Unlike other financial markets, forex does not have a central body to regulate rates and data. This makes forex a true dynamic market which provides talented investors a nice opportunity to thrive. But, and this is a huge ‘BUT’, this very nature of the forex market is being heavily exploited by few greedy brokers to profit at the expense of unsuspecting innocent traders.

Just because a broker claims to be non dealing desk, does not necessarily mean the broker actually operates in a non dealing desk environment. Do everything within your reach to verify that your list of best forex brokers include only non dealing desk brokers.

You need a simpler solution? Use ECN forex brokers. If you are still in the phase of choosing a best forex broker, then you probably are new to forex trading. Top forex brokers who offer genuine ECN forex accounts may demand relatively higher initial deposits for ECN accounts. So smaller forex accounts in ‘micro’ or even ‘standard’ sizes, usually will not be offered as ECN accounts, even if the broker is an ECN forex broker.

Other criteria to find best forex brokers

Minimum Deposit Amount – This does not indicate anything about the broker. It’s totally a personal thing, but there is no point in trading with a forex account with less than $1000 as an initial deposit. If you have traded a similar account first up, you will know why.

Maximum Leverage – When it comes to leverage, less is more. Because low leverage reduces the losses when you lose trades. Again, this has nothing to do when you decide upon the best forex broker for you to trade with.

Spread – Real non dealing desk and ECN forex brokers simply cannot operate with fixed spreads, because fixed spreads by nature are against the philosophy of non dealing desk environment.

Number of pairs – Number of instruments or currency-pairs supported, do not say anything about the integrity of the forex broker. Instead its just a reminder that you are choosing a forex broker with long term trading plans in mind. So make sure all top forex brokers in your shortlist support all the instruments you want or you may want to trade in the future.

Knowing how to distinguish best forex brokers is one thing. But hwen you actually go about doing it, there are many difficulties faced by new traders. e.g. there is no such entity as a perfect forex broker. In other words best forex brokers don’t exist. So, you’ll have to stick with the next best choice. Better brokers.

Last but not least, top forex brokers have the approval from financial regulatories from major countries, in order to be able to operate in those countries.

All in all hunting for the best forex broker is no easy task. One thing you should avoid though is to open a dozen demo accounts with every top forex broker who made it into your shortlist. Because if you do, it will only complicate things even more.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

When traders are winning money the broker is losing it. So obviously in this type of environment winners are not very welcome. Furthermore, if you win consistently on a long-term basis, your account will be banned or suspended and your profits will go nowhere or into the greedy brokers pocket. Shocking ha? Well it is the bitter truth. But this writing is not an attack on each and every dealing desk broker, though most of the dealing desk brokers do what they do.

Its not easy finding a MetaTrader 4 broker who offers a true non-dealing desk environment. Although lot of them claim this but its all pure crap. If they have fixed spreads, they cannot be a ‘non-dealing desk’ broker. Any broker who has fixed spread by definition, cannot be offering a non-dealing desk platform.

Just be aware that, when there is a dealing desk involved (be it a human or a computer), you are not trading in a true market environment. A dealing desk broker which acts as a market maker may be trading against your positions. they randomly increase the spreads to kill your scalping trading systems. they even send you fake spikes to hit the stop loss limits. They also send you off quote errors when you try to close the position in profit, telling you fake stories about crazy market conditions and banks liquidity.

The big question is, how do you get around this? The solution is simple. Use ECN brokers.

Here are the advantages of Non-dealing desk ECN brokers.

• No inherent conflict of interest. Real non-dealing desk ECN brokers do not trade against their clients. As facilitators of trading they do not take positions that may, time to time conflict with the interest of individual traders

• Market access. Non-dealing desk brokers offer every trader, big and small, equal access to the interbank market. The rates, bid and ask prices on a non-dealing desk platform are not those set by an individual broker but those derived from active trading between participating banks, institutional investors, FCM’s and individual traders. The process itself makes every trader, regardless of size, and independant market maker.

• Healthy trading Environment. Non-dealing desk broker spreads as well as bid/ask prices come directly from the interbank system. they are not filtered or otherwise manipulated or spiked by the broker to gain a trading advantage.

• Transparency. No mind games. What you see is what you get.

However there are a few disadvantages of the non dealing desk too.

• First of all, there is the higher spreads. Spreads are variable, not fixed. Forex is an extremely fluid market. Spreads are in a constant state of flux. During peak trading hours, spreads can drop to zero, while during off peak hours spreads can be considerably higher.
• Secondly, higher cost of trading. Non-dealing desk brokers don’t offer or execute trades based on fixed spreads. they charge a nominal transaction fee which is bit high. Such is not the case with a dealing desk broker.

In conclusion, is there any chance to find MT4 ECN brokers? The good news is YES.

One of my earlier posts ‘Best Forex Brokers‘ has an extensive list of brokers including both dealing-desk and non-dealing desk. Now its really your choice to find the best MT4 forex broker to suit your trading system and style.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

It’s only fare for your forex broker to give you a commission when you recommend their services to potential forex traders. Of course you have to be satisfied with the services of your broker. But forex brokers like Avafx do not need an introduction in the market. Their forex brokerage services sell by themselves.

If you have a Forex blog or site this is an opportunity that you don’t want to miss.

When I first joined this program, for once I thought they were boasting about industry leading commissions. But they honestly provide the affiliates with the best possible commission scheme in the industry, to say the least. Forex brokers are able to run high return affiliate programs because of the nature of the forex trading industry.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

1.       BabyPips.com is the first place to visit…

It’s almost ridiculous so much valuable information is available free of charge. It’s even worse when you think about the effort put by Big Pippin in putting up the site together. But it is there to take it for granted. Make sure you don’t take it for granted and give enough weight to what you read, because the knowledge you gain from BabyPips.com could make you a fortune in the long run.

2.       fxclub.com/learn-forex is great…

Plenty of great forex learning material found here. If you are looking to understand different perspectives of forex trading by professionals, you don’t want to skip this site.

3.       EarnForex.com is awesome…

With an organized set of articles that can feed the souls of novice traders systematically, EarnForex.com is one not to miss. Well written, expert articles provide everything a forex trader needs to develop or improve forex trading skills.

There are forex mentors who can guide you in the right path to boost your confidence. Unlike learning forex trading online on your own, getting the help of experts cost money. Remember forex trading is a business and you are learning it to earn money, and not just to spend lavishly on learning the trade.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

‘Forex easy trade methods’ as an expression does not need a definition. Though it is quite difficult to differentiate certain aspects of being at ease, as a forex trader I would certainly be contained with a winning forex expert advisor which could relieve me of staring at the charts for hours. In my opinion, easy trading means or perhaps should mean, a hands off, tension free, systematic, automatic and most importantly a winning strategy that generates forex profits day in day out.

Looking at the historic charts for certain instruments it seems that if a trader is capable of accurately recognizing bigger trends even at the half way mark of the complete trend say in the 4hr time frame, the system is the “holy grail”. However, in reality such systems do not exist because nobody can predict market movements “accurately”. But if we can break down the accuracy level and target a base level of 75-80% then we might be in with a chance of finding very ‘easy’ forex trading methods that actually work.

I was recently introduced to such a forex strategy. It’s easy to follow, easy to understand the concept behind it, and more importantly it makes easy pips. If only the system was fully automated, it would pass the standards of forex-easy-trade methods in flying colors. Nevertheless the strategy was easy enough in my eyes, so I thought to post it here as an easy forex trading method.

Before I reveal the system and the resources, here’s what you should know. I don’t recommend you to risk real money on any system or forex strategy before you feel comfortable trading it. Because forex traders find their comfort zones far from being similar to each other, specially when it comes to trading, me or another trader making some pips with a system does not necessarily mean it will be the same with you. 1. Demo trade 2. Forward test for 1 month 3. Forward test for another month and then decide.

Phew… right, with that disclaimer of earning potentials out of the way, here’s the actual system.

The system works on standard fractals indicator in MT4, a custom indicator named ‘Price channel stop’  and two standard MT4 oscillators namely ‘Accelerator’ and ‘Awesome’. The system is not created by me and all credit goes to mighty ‘pipjunky‘. Required custom indicators can be found here

Free Fractal Strategy EA / Indicator video 1

Free Fractal Strategy EA / Indicator video 2

Free Fractal Strategy EA / Indicator video 3

A conclusive video number 4 is on its way. I will update this post as soon as it’s released by ‘Pipjunky’.

Again this is not a system developed by me. The credit goes to pipjunky. But this system should be enough proof that Forex easy trade methods are not just myths. This strategy based on fractals is not only very easy to follow but makes plenty of easy pips.

Enjoy!

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+

In Forex Trading, foreign exchange in the form of currency pairs are traded similar to that of Stock Exchange shares (or Other Securities) in stock and other trading markets. In essence, speculating the rate changes in currency markets can result in consistent profits.

The term “Foreign Exchange” is the name of the most liquid market in the world – every day there are almost 2 trillion U.S. dollars exchanged. This is a market without a physical center, on which 24 hours a day, 365 days a year, trading is conducted. This trade is now accessible by private small-time investors, as opposed to being an inter-bank only market in old times. Another advantage of forex trading are the low spreads (margins between buy and sell price), especially in comparison to the stock exchange, and very low transaction costs, which generally amount to only a few pips.

Investors buy a certain currency against another in the form of forex instruments or currency-pairs in hope of gaining a profit when the rate fluctuates again. The possible investment period is unique and individual where some trades last only a few seconds while others are indeed very long. For trades completed within a day is now being called with the established term “day trading”. The risk may be greater, of course, if shorter periods of speculation is chosen. A long-term foreign exchange system however should always be preceded by a thorough fundamental analysis with respect to the currency standing behind the national economy.

A special feature of the forex trading is speculation, using so-called leverage. This speculation of investors for example, a commitment of 1000 dollars using a (quite usual) leverage from 1:50 yields the outcome of the trade in x-folds of the initial investment, in this case 50 folds. Which also means the potential profit or possible loss is equally amplified by the amount of leverage or speculation used by the investors. After all a complete loss in Forex trading is quite possible.

About the Author   Ameen Aliyar  (72 Posts)

Ameen Aliyar is a Freelance Writer blogging at Business Inspiration. Ameen has been writing since 2008, specializing in business and investment-related topics. He has completed numerous ghostwriting projects for clients across the globe and has an advanced certificate in English from Middlesex College, United Kingdom. +Ameen Aliyar+