5 FOREX BEGINNER TIPS THAT WILL SAVE YOUR MONEY

                                                                                  

Forex Beginner Tip 1. Money Management

The 5 forex trading tips listed below are mentioned throughout this book. That's because even though they can't guarantee success ― nothing ever can, otherwise everybody would be successful ― they can save you a lot of money. Experience shows that many beginning forex traders bleed money mainly because they fail to follow the next five principles:

Rule number 1 for every forex trader is to survive. Every trader has losing trades, but when you go broke you can put yourself in a position where you can no longer have winning trades. Therefore, before everytying else you have to make sure you stay in the game.

Many beginning and/or consistently losing traders focus exclusively on having a profitable trading strategy. But even though a good trading strategy is definitely important, using solid money management and having a rational, disciplined trading attitude will get you further at the end of the day.

Two rules of thumb for good money management are not to risk more than 3% of your trading capital per trade and making sure you have enough trading capital for at least 40 trades when you are a beginner.

Forex Beginner Tip 2. Always use a stop loss

The stop loss is perhaps the most powerful weapon in your arsenal as a forex trader, just as the most powerful weapon of the professional poker player is the fold (if that means anything to you). The stop loss allows you to predetermine your risk down to the pip, therefore ALWAYS use it!

There are really only advantages to putting in a stop loss. It forces you to think about when the trade you're about to put on would be considered a failure. After you've opened the position you might talk yourself into staying in a trade going bad, using all kinds of irrational excuses. But if you've set a stop loss before opening the trade (when you were still thinking rationally) you'll always have that shining beacon, reminding you that you'd be a weak, emotional idiot if you stayed in the trade after the stop loss is triggered.

Setting a stop loss also forces you to think about your profitable trades/losing trades ratio. Suppose you want to risk 50 pips to win 100 pips, that would mean you'd need a winning trade at least 33% of the time to break even. Does your trading strategy get you a profitable trade 33% of the time?

Another advantage of the stop loss is that you don't have to be afraid that one badly chosen trade will kill your whole account in case the trade goes bad and for some reason you're not in a position to close it manually. So remember to always put in a stop loss and never move it further away after opening the trade.

Forex Beginner Tip 3. Be realistic

Unless you are amazingly lucky you can't expect to close 80% of your trades profitably or turn a $500 trading capital into a $10,000 trading capital in six months. With those kind of expectations you're simply setting yourself up for disappointment, frustration and failure. (unless you're very, very lucky).

Try to look at things realistically right from the start. Determine an attainable percentage of winning trades considering your strategy and experience. Ask yourself how much time you can spend on trading and learning. When you have a clear view of your trading tools and conditions, you will find it much easier to work towards a profitable trading strategy.

For example, suppose you're a day trader with a trading strategy where you risk, on average, 15 pips to win 30. After doing about 200 trades, it turns out that 50% of your trades reached their profit target of 30 pips; the other 50% of the trades went sour and triggered your stop loss. So you've won 100 x 30 pips = 3,000 pips and lost 100 x 15 pips = 1,500 pips, for a gross revenue of 1.500 pips total. Gross revenue, because you still have to deduct the spread, i.e. the transaction cost you pay your broker, remember? Let's say the spread is 2 pips per position, meaning your 200 trades costed you 400 pips. Your net revenue then, was 1.100 pips over 200 trades, or 5.5 pips per trade.

Of course data on 200 trades isn't enough yet to be of statistical significance, but at least it would give you something to work with: on average, each trade nets you 5,5 pips.

Forex Beginner Tip 4. Interact with other traders

For beginning traders an often overlooked source of information is other traders. Of course, reading books about forex is important. Books can provide you with a solid basis in a short time, providing a foundation to build on.

Practicing is another important factor to get the hang of things quickly, but you'd be surprised to find out how often fellow traders can give you valuable feedback about your trading strategy, or about alternative ways for putting on a particular trade. You should therefore become part of an online forex community and consider starting a trading blog, so people can comment on your strategy.

Don't be embarrassed because you're a beginner; remember that we all started out as beginners at some point, and many of the traders you'll meet on online trading forums are also just starting out.

Forex Beginner Tip 5.Keep your emotions under control

This last trading tip is perhaps the most important one. As previously said, trading on the forex is exciting, fun and dynamic, but it's crucial not to get carried away because of this. Successful traders approach trading like a business, not a hobby.

You use your trading capital to make business decisions; some will make you money, others will cost money, it's that simple. But as soon as you lose sight of your rationality I promise you that the losses will stack up pretty quickly.

I'm talking about those moments that you do move your stop loss, because you just can't get yourself to take the hit. Or those moments that you decide to get in right now, even though your trading plan tells you to wait, because you're so scared to miss the trade, or perhaps you're just bored. Those moments that you're so mad that you lost 10 trades in a row that you start trading with triple your normal risk, taking positions in currency pairs you normally never trade in.

Those are the moments you lose in 30 minutes what it took you three weeks to build up.

The Essentials to Picking Forex Robot

Forex robots have become wildly popular over the past few years. With the overabundance of Forex robot sales pitches, it is hard to find a robot that is actually successful. In this article, i will show you how to find the best Forex robot for your trading style, as well as what you need to know about your EA and what your realistic goals should be.

If you are looking to purchase a Forex robot, you are most likely looking to make a profit. This means different things to different people. You may be content making $50/week, or you may be seeking much bigger money. The greater your risk tolerance, the greater the chance you will strike it big. At the same time, taking on more risk also means the chance to take bigger losses.

Your risk tolerance is going to be a key factor in dictating which robot is best for you and your trading goals. After determining this, you should look for robots that suit your trading style and analyze various statistical factors including maximum drawdown, profit factor, expectancy and efficiency.

One thing you should realize upfront is that finding the robot that is best for you is going to cost you both time and money. There are numerous elements to look for when choosing your robot. Much of the key statistical information needed to make a sound decision can be found in the best Forex robot toolkit. In this article, we will focus on one key criterion called robustness.

It is crucial to understand that most Forex robots only work efficiently in certain types of markets. What does this mean? Some robots perform better in range bound markets while others are more effective in trending markets. The problem lies in that it is often very hard for a trader is to determine if the market is in a range or trending. One key thing you must remember is in order to achieve success with your Forex robot you should never give up the gains that it makes during a favorable market when the market is unfavorable.

So what does this mean? Assuming that your robot is most efficient in a trending market, as soon as the market starts to range you will run into complications and might begin losing money. In order to be successful with this robot you cannot lose money during the ranging market that you made during the trending market.

Furthermore, you must determine if your robot is sustainable which entails backward and forward testing it through a range of market conditions. If your robot's profitability is sustained, than it can be considered robust. Keeping this in mind, you must always remember that past results are never an indication of future performance.

You need to assure that a robot has been both back and forward tested by the vendor before even considering making a purchase. Once you have decided to go forward with the purchase you need to perform your own testing. A good Forex broker can show you how to do this. At this point, if you are unhappy with the robots performance, you should return it if possible. On the other hand, if you are happy with the robots performance, you should run it on a live micro account at first so you are only risking minimal capital in the beginning.

LAST BUT NOT LEAST

MT5 FX ROBOT give you the best experience in using Forex Robot. MT5 FX ROBOT has a lot of uniqueness that you can not find it in others Forex Robot. 

MT5 FX ROBOT has numerous advantages as :

• You can verify the results by login into the trading terminal used for MT5 FX ROBOT with the investor password feature
• Programmed by experienced and well known forex robot coders.
• All the trading algorithms are following how an actual trader trades. His daily profits have been ranging from $10K to $100K every single day.
• Provides quality and different customer support options like e-mail, live chat support and skype. 
• You do not need any trading experience. However it is advisable that you must have basic trading knowledge on money/risk management if you wish to change those settings.

19 things you need to know to be a successful trader

Forex has caused large losses to many inexperienced and undisciplined traders over the years. You need not be one of the losers. Here are twenty forex trading tips that you can use to avoid disasters and maximize your potential in the currency exchange market.

1. Know yourself. Define your risk tolerance carefully. Understand your needs.

To profit in trading, you must make recognize the markets. To recognize the markets, you must first know and recognize yourself. The first step of gaining self-awareness is ensuring that your risk tolerance and capital allocation to forex and trading are not excessive or lacking. This means that you must carefully study and analyze your own financial goals in engaging forex trading.

2. Plan your goals. Stick to your plan.

Once you know what you want from trading, you must systematically define a timeframe and a working plan for your trading career. What constitutes failure, what would be defined as success? What is the timeframe for the trial and error process that will inevitably be an important part of your learning? How much time can you devote to trading? Do you aim at financial independence, or merely aim to generate extra income? These and similar questions must be answered before you can gain the clear vision necessary for a persistent and patient approach to trading. Also, having clear goals will make it easier to abandon the endeavor entirely in case that the risks/return analysis precludes a profitable outcome.

3. Choose your broker carefully.

While this point is often neglected by beginners, it is impossible to overemphasize the importance of the choice of broker. That a fake or unreliable broker invalidates all the gains acquired through hard work and study is obvious. But it is equally important that your expertise level, and trading goals match the details of the offer made by the broker. What kind of client profile does the forex broker aim at reaching? Does the trading software suit your expectations? How efficient is customer service? All these must be carefully scrutinized before even beginning to consider the intricacies of trading itself.

4. Pick your account type, and leverage ratio in accordance with your needs and expectations.

In continuation of the above item, it is necessary that we choose the account package that is most suited to our expectations and knowledge level. The various types of accounts offered by brokers can be confusing at first, but the general rule is that lower leverage is better. If you have a good understanding of leverage and trading in general, you can be satisfied with a standard account. If you’re a complete beginner, it is a must that you undergo a period of study and practice by the use of a mini account. In general, the lower your risk, the higher your chances, so make your choices in the most conservative way possible, especially at the beginning of your career.

5. Begin with small sums, increase the size of your account through organic gains, not by greater deposits.

One of the best tips for trading forex is to begin with small sums, and low leverage, while adding up to your account as it generates profits. There is no justification to the idea that a larger account will allow greater profits. If you can increase the size of your account through your trading choices, perfect. If not, there’s no point in keeping pumping money to an account that is burning cash like an furnace burns paper.

6. Focus on a single currency pair, expand as you better your skills.

The world of currency trading is deep and complicated, due to the chaotic nature of the markets, and the diverse characters and purposes of market participants. It is hard to master all the different kinds of financial activity that goes on in this world, so it is a great idea to restrict our trading activity to a currency pair which we understand, and with which we are familiar. Beginning with the trading of the currency of your nation can be a great idea. If that’s not your choice, sticking to the most liquid, and widely traded pairs can also be an excellent practice for both the beginner and the advanced traders.

7. Do what you understand.

Simple as it is, failure to abide by this principle has been the doom of countless traders. In general, if you’re unsure that you know what you’re doing, and that you can defend your opinion with strength and vigor against critics that you value and trust, do not trade. Do not trade on the basis of hearsay or rumors. And do not act unless you’re confident that you understand both the positive consequences, and the adverse results that may result from opening a position.

8. Do not add to a losing position.

While this is just common sense, ignorance of the principle, or carelessness in its employment has caused disasters to many traders in the course of history. Nobody knows where a currency pair will be heading during the next few hours, days, or even weeks. There are lots of educated guesses, but no knowledge of where the price will be a short while later. Thus, the only certain value about trading is now. Nothing much can be said about the future. Consequently, there can be no point in adding to a losing position, unless you love gambling. A position in the red can be allowed to survive on its own in accordance with the initial plan, but adding to it can never be an advisable practice.

9. Restrain your emotions.

Greed, excitement, euphoria, panic or fear should have no place in traders’ calculations. Yet traders are human beings, so it is obvious that we have to find a way of living with these emotions, while at the same time controlling them and minimizing their effect on our lives. That is why traders are always advised to begin with small amounts. By reducing our risk, we can be calm enough to realize our long term goals, reducing the impact of emotions on our trading choices. A logical approach, and less emotional intensity are the best forex trading tips necessary to a successful career.

10. Take notes. Study your success and failure.

An analytical approach to trading does not begin at the fundamental and technical analysis of price trends, or the formulation of trading strategies. It begins at the first step taken into the career, with the first dollar placed in an open position, and the first mistakes in calculation and trading methods. The successful trader will keep a diary, a journal of his trading activity where he carefully scrutinizes his mistakes and successes to find out what works and what does not. This is one of the most importance forex trading tips that you will get from a good mentor.

11. Automate your trading as much as possible.

We already noted the importance of emotional control in ensuring a successful and profitable career. In order to minimize the role of emotions, one of the best of courses of action would be the automatization of trading choices and trader behavior. This is not about using forex robots, or buying expensive technical strategies. All that you need to do is to make sure that your responses to similar situations and trading scenarios are themselves similar in nature. In other words, don’t improvise. Let your reactions to market events follow a studied and tested pattern.

12. Keep it simple. Both your trade plans and analysis should be easily understood and explained.

Forex trading is not rocket science. There is no expectation that you be a mathematical genius, or an economics professor to acquire wealth in currency trading. Instead, clarity of vision, and well-defined, carefully observed goals and practices offer the surest path to a respectable career in forex. To achieve this, you must resist the temptation to overexplain, overanalyze, and most importantly, to rationalize your failures. A failure is a failure regardless of the conditions that led to it.

13. Don’t go against the markets, unless you have enough patience and financial resilience to stick to a long term plan.

In general, a beginner is never advised to trade against trends, or to pick tops and bottoms by betting against the main forces of market momentum. Join the trends so that your mind can relax. Fight the trends, and constant stress and fear will wreck your career. 

14. Understand that forex is about probabilities.

Forex is all about risk analysis and probability. There is no single method or style that will generate profits all the time. The key to success is positioning ourselves in such a way that the losses are harmless, while the profits are multiplied. Such a positioning is only possible by managing our risk allocations in accordance with an understanding of probability and risk management.

15. Be humble and patient. Do not fight the markets.

Recognize your failures, and try to accommodate them if they can’t be eliminated completely. Above all, resist the illusion that you somehow possess the alchemist’s stone of trading. Such an attitude will surely be ruinous on your career eventually.

16. Share your experiences. Follow your own judgment.

While it is a great idea to discuss your opinion on the markets with others, you should be the one making the decisions. Consider the opinions of others, but make your own choices. It is your money after all.

17. Study money management.

Once we make profits, it is time to protect them. Money management is about the minimization of losses, and maximization of profits. To ensure that you don’t gamble away your hard-earned profits, to “cut your losses short, and let profits ride”, you should keep the bible of money management as the centerpiece of your trading library at all times.

18. Study the markets, fundamentals, and technical factors leading the price action.

That we have placed this so low in the list should not surprise the experienced trader. Faulty analysis is rarely the cause of a wiped-out account. A career that fails to begin is never killed by the consequences of erronerous application or understanding of fundamental or technical studies. Other issues that are related to money management, and emotional control are far more important than analysis for the beginner, but as those issues are overcome, and steady gains are realized, the edge gained by successful analysis of the markets will be invaluable. Analysis is important, but only after a proper attitude to trading and risk taking is attained.

19. Don’t give up.

Finally, provided that you risk only what you can afford to lose, persistence, and a determination to succeed are great advantages. It is highly unlikely that you will become a trading genius overnight, so it is only sensible to await the ripening of your skills, and the development of your talents before giving up. As long as the learning process is painless, as long as the amounts that you risk do not derail your plans about the future and your life in general, the pains of the learning process will be harmless.

How to set EA (Robot) on mt4 chart

Expert Advisor(EA) is a combination of programs of mathematical and analytical trading process on mt4 platform. Many traders face problem to set up EA on their chart. In this tutorial, traders will get idea about detailed process how to set up this EA.

1. Copy your desired EA. Open your mt4 chart. Click on “File” from menu bar. Then click on “Open Data Folder”.

2. Now click on “MQL4”.

3. Then click on “Experts”.

4. At last, paste your EA. You can paste your EA on local disk drive.

5. From your menu bar click on “Tools”, then click on “Options”. You will see new window. Click on “Expert Advisors” tab. Check “Allow automated trading” for enable live trading.

6. In “Navigation”, you will see experts advisors. Then select your EA and drag your EA on your chart. Then you will get new window where you can customize your EA. In “Common” tab, you will find “long and shorts”. It indicates that EA will take both buy and sell entry. Check “Allow live trading” to enable EA. Check other options as like below figure.

7. In “Inputs” tab, you can customize inputs value. Double click the value to customize that value. Then press “Ok” to finish the installation of the EA.

8. In tools bar, you will see “Auto Trading” tab. Click on that tab to enable the EA. After enable, you will see smile at the top of the right of your chart. It indicates that your EA is fully ready.

Currency Pairs

Currency pairs are among the most popular questions I am always asked. Sometimes it surprises me how someone wants to trade forex while he/she still doesn’t know about currency pairs. But I should not be surprised, because we always focus on advanced topics like technical analysis, candlesticks and indicators and … that we forget about the basics. We do not consider that beginners may have difficulties in understanding the currency pairs that is the foundation of forex and forex trading.

In stock market, you trade shares of companies. You buy and sell them. You pay money to buy stocks. But what if you wanted to trade or buy and sell a currency?

In the stock market, companies’ shares are commodities and the currency you pay to buy them is the money. It is the same in any other kind of trading. You pay money to buy a commodity. In forex or foreign currency exchange, you trade currencies. So again, you have to pay something to buy something else. You pay a currency to buy another currency. You sell a currency against another currency. To be able to do that, they have created currency pairs. For example EUR-USD is a currency pair. In each currency pair, the first currency is the commodity and the second currency is the money. In EUR-USD, the first currency which is Euro is the commodity and the second currency which is USD is the money. When you buy EUR-USD, in fact you pay USD to buy Euro. No matter in what currency your forex trading account is. You can have a trading account in USD, GBP, CAD or any other currency. When you want to buy EUR-USD, your broker changes your trading account capital into USD and then pays that USD to buy Euro. This is how it works. Any trade in forex market has to be done through USD. US dollar is the main currency and is the axis of all transactions in the forex market. Any currency pair that you buy or sell has to be done through USD. However, all of these process will be done automatically and you just need to click on the buy or sell buttons.

Note: If you are new to forex trading, then I strongly recommend you to start from here. Instead of spending too much time on reading too many articles, these information help you learn what forex is and how you can trade forex within a couple of hours.

What are the most common currency pairs traded in the forex market?

There are many official currencies that are used all over the world, but there only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of the United States economy, the American dollar is the world's most actively traded currency.

In general, the eight most traded currencies (in no specific order) are the U.S. dollar (USD), the Canadian dollar (CAD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Japanese yen (JPY).

High-Frequency Forex Trading (HFT)

High-Frequency-Trading or HFT is a trading technique using sophisticated numerical algorithms implemented on high-end computers that run the trading orders within milliseconds. The term high frequency originates from this. Compare that to traditional trading houses and banks. As a matter of fact, HFT is still a buzz word and still the term is a mystery and extravaganza.

So what really these HFT algorithms do that makes them so rewarding? So lucrative that multimillion schemes had been undertaken to reduce the network lag time between financial hubs in the United States? In 2006, over 40% of trading orders were the work of HFT companies in the London Stock Exchange alone. In 2006 25% of total orders in the Foreign Exchange markets were generated by HFT!

The HFT algorisms evaluate the market within such tiny period of time that human forex traders will never be able to manage with that speed and that precision.

Computer aided trading has revolutionized the formation of major equity and Forex markets ever since the HFT companies have started. The way liquidity was structured before had a clear directional bias. Today, the market liquidity has increased so much due to the volume of the HFT companies that the brokers offer now prices with 5 digits instead of 4. Some MT4 brokers are even offering quotes in 6 digit pips!

The typical HFT strategies include arbitrage, pair trading and trend following. It comes at no surprise since most of forex traders use speculation based strategies to profit with directional bias.

Usually the HTF has a directional input given by either a human analyst or the algorithm is designed to find the trend by itself.

Once the algorithm figures out  the “trend” it will apply certain technical indicators to buy and sell currency but the way the humans do. However, the algorithm may open and close hundreds of orders with a high speed in a low price movement.

For example, human forex scalpers work from five minute charts. As opposed to that, many HFT algorithms trade from a ten second chart where it will try to win 0.02 pips or less compared to typical 20-30 pips profit targets of the human traders.

Although the HTF trading had caught the interest of media and academic finance, we must remember that it is not a “holy grail”.

It is a just an automated strategy that uses smaller timeframes. Since the days of 2008 global financial crisis, the HFT trading has also seen huge losses and there was an article by Nathaniel Popper on the New York times that many HFT firms are indeed struggling to even breakeven now days. In 2012, HFT trading gained only $1.25 billion of profit, almost 75% down from the peak from 2009.

Finally, the trading robots. Do not rush to buy one of those scam-robots being painted with extraordinary profits by the robot-selling websites or  automated-forex-trading companies.

Do not forget that the HFT companies have a team of forex analysts to correct and re-adjust the HFT robot the way the racers of Formula 1 drive their car and make no mistakes! Those cars aren't designed for casual driving or cruising down the interstate.

Besides, most likely you do not have that kind of financial resource the HFT companies do.

Finally, even if the HFT algorithm you are using is a real deal, you need an experience in analyzing the forex markets. The HFT is not a holy grail but an extra tool to support your strategies and decisions.

Forex trading for beginners – Choosing MT5 FX ROBOT

Forex trading for beginners is a new blog section brought by popular demand and the perfect excuse to provide basic knowledge to all traders out there who want to learn about the currency exchange market and how to minimize risk and maximize profits. 

Forex robots have become wildly popular over the past few years. Granted, there has been an overabundance of forex robot sales over the past few years, but a good robot can adapt to your trading style and ground your forex goals, enabling for a more efficient trading. 

The forex robot, more popularly known as the expert advisor, is a piece of automated software used to automatically trade currencies in the forex market, and it's widely used by both expert traders and newbies to gain competitive advantage over the increasingly profitable forex market. 

If your forex trading for beginners or expert strategy requires strictly mechanical decisions and doesn't depend on a human decision-making process, you can use
MT5 FX ROBOT to trade for you 24 hours a day. 

A great advantage for forex trading for beginners is that MT5 FX ROBOT are programmed with complete ability to read historical data, interpret equations and analyze market patterns in order to make accurate forecast. This can come in handy when time to make decisions is tight and a person's judgment and interpretation could be clouded with confusion or inexperience. The MT5 FX ROBOT prediction is entirely based on facts and the conclusions were done objectively. 

Its always important to make sure that the MT5 FX ROBOT has been tested back and forward by the seller, and additionally, perform your own tests. Once you start using it, run the robot on a small account with minimal investments while you get the hang of it. 

Demo Accounts

I already tested this robot on demo, and the results so fantastic. You can login to your MT4 platform using investor password to see the results.

Login Details:

Broker : UMOFX

Login : 30595

Password : ncf2itb

Server : 120.50.38.76:443

Myfxbook

Started: 17.04.2015

Broker: UMOFX
Account type: demo
Starting balance: $10.000.00

Read more at the MT5 FX ROBOT website