Forex Trading Methods - Automated Trading Systems Vs Manual Ones Which Are Best?

When you are looking at forex trading methods you have choice between following an automated trading system or trading manually to set of rules so which is best lets take a look...
Forex Robots
Have rules build into them and there simply plug and play time efficient and require very little trading knowledge.
There are some good ones about that are sold online but most (about 99%) don't work and the track records are simply made up and simulated in hindsight. Most carry the disclaimer below, look out for it and forget it:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
There are some that have been traded and tested and have real time track records but be careful - you still have to follow it with discipline and for this, you need to know how and why it works long term.
You need to be confident enough in its logic, to stick with it through periods of drawdown, if you dont understand how and why it works and have confidence in its ability to win longer term, your discipline will go and you have no system.
There are even some free ones that make money. I have written frequently on Richard Donchian's 4 week rule and this incredibly powerful but simple system, is free! Look it up in our other articles.
Trading an automated trading system ( if you find the right one) is time efficient and easy - but you must have a disciplined and patient personality, to keep executing the signals in line with the rules and this is hard, when you had a losing period!
Manual Trading
There is a right way and a wrong way when trading manually - lets start with the wrong way.
The "shoot from the hip" news and story trader - He simply trades on a whim and of course as news is instantly discounted and his emotions are to the fore he losses.
The other trader is the trader who likes to do every trade manually but is still guided by rigid rules in terms of, executing his trading signal and money management.
I am this sort of trader and it suits me as I am involved and although I use rules I can pick and choose the best trades in terms of risk reward - this trading method is obviously my personal choice and each trader will know which method is right fof them.
You can make money with forex robots, just choose wisely and be prepared to have confidence and discipline in the system you follow. As a manual trader you still need discipline but it probably suits the trader who enjoys a challenge.
Which ever trading method you choose, remember to have a disciplined approach and make sure you employ rigid money management criteria, to lead you to long term currency trading success.
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Can Forex Trading Signals Be Wonderful Pointers to the Market?

The accurate prediction of the best time to sell or buy a product or service is the normal trading strategy. However, it is vital that you have to give predominant consideration to the changes that occurs in the currency conversion rate in the given time frame for maximizing your profit. It is essential that you have to buy the currency at the lowest rate and sell at its highest rate. Better understanding of currency rate fluctuation and the factors behind the fluctuation facilitates you to earn more profit from Forex trading.
Professional Forex traders study the relevant data thoroughly to evaluate the connection between various currencies that ultimately determine the Forex prices. However, most of the investors are either not interested or have no time for research that articulate the complex connection, instead they buy the precise but accurate information from a Forex market analyst and mostly gain from better deals.
Amateur investors are being facilitated by the brokerage houses to use the processed information, better known as 'signals'. The users are levied a fee for the access, otherwise it is available only for professionals. The signals are actually a combined analysis of many market analysts. This facility of Forex brokerage houses helps the amateur investors to enjoy a hassle free Forex marketing.
The professional analysts who are behind the preparation of signals make sure to supply updated information with a regular interval because they are very vigilant about the volatile nature of the Forex market and the importance of signals for better trading experience.
The first fact that you have to consider is nothing but 'predictions are only predictions'. The same thing is applicable in the case of signals. It facilitates you for a better guess but it does not assure you any success and profit in the Forex market. But it ensures to produce more winners than losers. However, you must not let down yourself when losses occur. Try to learn more from the past mistakes and try to find out which signal that you missed. If you do so, you will be a winner when similar situations occur in the future.
There are risks in every big Forex deal. It is inevitable or can not be eliminated altogether. You can consider signals as good indicators but do not consider them as 'perfect' indicators. It is obviously an inevitable criterion, but do not relay only on signals for your decisions. It can not do any magic for you. So, it is better to have a seasoned Forex trader to guide your decisions. Then you will be a successful Forex trader within a short duration.
Find out more about Forex Trading signals.
for more understanding forex trading, just visit Forex Million Dollar blog at http://www.forexmilliondollar.com

Forex Trading - 2 Weeks Education and These Novice Traders Made Millions!

How did a group of traders with no experience, learn to trade and end up making hundreds of millions of dollars. To find out we need to go back over half a century to one of the most famous trading experiments of all time and see what we can learn.
The Experiment.
Trading legend Richard Dennis had a theory that anyone could learn to trade if they had the right mindset and the right method so he set out to prove his point.
He nicknamed the group the turtles and they have gone down in trading history.
He took a group of people and the only thing they had in common was that they had never traded and had not one bit of trading experience.
The group was a mixed bunch - a female auditor, a boy who had just left school a couple of card players and a security guard to name just a few.
He then taught them in two weeks and gave them some trading money and accounts.
The result is history - $100 million dollars in the first four years and many of these traders went on to become legends.
What You Can Learn
Think about it for a moment - this group is no different to you!
So it means you have the potential to - sure, you may not become as rich as the turtles but the opportunity is there and that's an inspiration.
Secondly 95% of traders lose so what did this group do right?
The answer is they had a simple method and it was so simple anyone could learn it, but that's not the hard part of trading - executing your trading system with discipline is.
Dennis was well aware of this so he made sure the group knew exactly how and why it would work (it was essentially a breakout system) and made sure they had confidence in it.
Confidence is essential to execute a trading system with discipline and keep in mind, if you have no discipline to execute your method you don't have one!
Most traders lack discipline they don't have the confidence to follow a system because they follow others or they get the wrong system and believe the numerous trading myths that are circulated.
Trading success comes from within.
Trading success is down to you and that's what Dennis taught the turtles.
Once you accept this. its getting a system you have confidence in and can follow with discipline which is the key and not following a vendor with a useless system with a simulated track record!
There are no trading secrets - trading is down to you and the ability to control your emotions that was true 25 years ago and is still true today.
You Can Do It Too!
Trading isn't easy and you wouldn't expect it to be, with the rewards on offer but there is a huge difference between something being beyond you and being possible.
Sure, you will have to work at the basics and get the right education but isn't that a small price to pay, for the riches that successful trading can bring?
I hope the story of the turtles inspires you to trade, it inspired me and sure I haven't made as much money as them - but I have been successful and got a lot out in terms of rewards for the effort I have put in.
You can be a successful trader to just have desire and a willingness to learn and your all set.
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The 5 Benefits of Forex Software Trading Systems

Many investors are looking to make money in the foreign exchange market, also known as "Forex" or "FX." Forex trading is inherently complex as you are trading currency pairs, and requires very advanced technical analysis and a good financial strategy in order to make profits. Luckily, automated forex software has been developed to help investors overcome these problems.
1. Automatic Forex Software runs 24 hours a day, 7 days a week. The FX market never sleeps, but humans have to. Software robots, however, do not need to sleep. A good forex system will conduct trades at any time of day or night once specific requirements are met. They will buy low and sell high even when their owners are asleep or on vacation.
2. An Automated Forex Trading System knows no boundaries. The currency exchange is global, as you are trading currencies in markets all over the world. As such, making the trades in person is effectively impossible and trading via the phone cannot keep up with the fast moving FX market. Good forex software, however, uses automated on-line exchange information to quickly and instantly make trades as soon as they become available anywhere.
3. Forex Software is Self-Adapting. Forex software updates itself constantly with new information coming in from all over the world. While it might take a human only a few minutes to read and think about the global exchange rates, a computer can read through them all in a few fractions of a second and update instantly. This gives FX software a decided informational advantage.
4. Automatic Forex Software is Fast. FX software is automatic and will conduct trades almost instantaneously, as soon as they become available. Forex software will grab any good trade regardless of when and where it is, and make the deal without delay. Automated trading systems won't miss a trade because they were too late. Every trade is performed at the computer's transactional processing speed.
5. Forex Trading Software is Affordable. FX software automates currency trading to insure that the process is as efficient as possible. By eliminating human errors and the other problems inherent in having human traders, automatic forex software will give you quality of service that in previous years would have taken dozens of highly paid employees. Today's forex trading systems are very inexpensive, especially in lieu of the massive profits that they can deliver.
David Linton is an internet entrepreneur and expert on Forex trading, Forex Currency Exchange Markets, and money making on-line businesses. His Forex strategies can be found at http://www.WinningForexSystem.com/?id=ezineF04

Trading With News Releases

Forex market is opened 24 hrs which is a key advantage of currency trading; it is opened from 5pm EST on Sunday until 4pm EST Friday. For short-term movements in any market Economic data plays an important role, this is true in currency market, it not only responds to the US economic news, but also from the news around the world. In Forex trading there are 8 major currencies available for trading with most of the currency brokers and derivatives 17 of them, during the release a part of economic data is released through which a trader can inform before taking any new position. Most closely followed by the 8 major curriencies or countries not less then 7 pieces of data are released daily. There are many opportunities for people who choose to trade through news. From the news released we look which economic release are there which are equivalent to the Forex market, and how trades act on the moving data.
News released for trading is not so easy what it sounds. The reported figures are not only important, but apart from it the revisions and the whisper numbers are also important. Some releases are much more important than the other news released; it can only be understood in terms significant both the country releasing the data and the importance of the release with relation to the other pieces of data released at the same time.
When Are News Releases Issued?
The approximate timing (EST) has been listed in Fig.1 at what time economic releases which are important for each of the following countries are published.
Country

Currency

Time (EST)
U.S.

USD

8:30 - 10:00
Japan

JPY

18:50 - 23:30
Canada

CAD

7:00 - 8:30
U.K.

GBP

2:00 - 4:30
Italy

EUR

3:45 - 5:00
Germany

EUR

2:00 - 6:00
France

EUR

2:45 - 4:00
Switzerland

CHF

1:45 - 5:30
New Zealand

NZD

16:45 - 21:00
Australia

AUD

17:30 - 19:30
What Are The Key Releases?
You should first know when trading news is going to released and actually what do you expect the market that week. The calendar provided by Daily FX is very comprehensive, apart of this there are many ways to do this. Which data is important is a key for you secondly. Calendar provided by Daily FX releases the figures and also the important releases. As these are the most important figures or data for the economic release for any country generally discussed.
1. Interest rate decision

2. Retail sales

3. Inflation (consumer price or producer price)

4. Unemployment

5. Industrial production

6. Business sentiment surveys

7. Consumer confidence surveys

8. Trade balance

9. Manufacturing sector surveys
Which Currencies Should Be Your Focus?
The following are the eight major currencies:
1. U.S. dollar (USD)

2. Euro (EUR)

3. British pound (GBP)

4. Japanese yen (JPY)

5. Swiss franc (CHF)

6. Canadian dollar (CAD)

7. Australian dollar (AUD)

8. New Zealand dollar (NZD)
This is just a sample of some of the more liquid derivatives based on the currencies above:
1. EUR/USD

2. USD/JPY

3. AUD/USD

4. GBP/JPY

5. EUR/CHF

6. CHF/JPY
It can be easily viewed from the list above, that span the entire glob and currencies which can be easily traded. This means that you can pay particular attention to the economic release and the particular currency which you have to trade. The U.S. economy release tend to be leave most pronounced impact on the market, as on the other hand U.S. dollar of all the currency traded is 90% as being a genera rule.
This article puts a flash light on trading with news releases. In this article you will find the description of TRADING WITH NEWS RELEASE

Day Trading - The Critical Mistake Made That Causes Losses

Day trading is very popular with traders and is seen as a way to keep risk low and earn a regular income - but most day traders forget one key point and this causes losses...
The problem for day traders is that all daily volatility is of a random nature.
Therefore, support and resistance levels cannot be used and are meaningless - the net affect of this is the odds are not on your side and you can never win long term.
Think about this key fact and you will see why day traders lose.
Around the world millions and millions of people, all contribute to the price of a currency and they are all individuals with their own unique makeup. They are using different methods, have different skill levels, have different aims and all are governed by greed and fear - this vast mass of people cannot be predicted!
In the short term i.e. hours, prices do NOT take any notice of daily ranges so support and resistance levels are of no help.
Do NOT believe these two misconceptions
1. The Track Records You see are Real
Vendors sell systems and present a track record but forget it being real, check the small print and all you find is a back tested simulation and anyone can make money if - they knew the price in advance but they don't.
These systems simply collapse in real time.
2. Prices Move to a Scientific Theory
This theory is loved by the far out crowd who love Fibonacci numbers and other nonsense - but if prices did move to a scientific theory, then there would be no price movement, as we would all know the price in advance!
Common sense really - but traders still believe scientific theories, despite the fact they lose, strange but true!
How to Win
Forget Forex day trading and scalping and take a longer term approach.
Either swing trade the intermediate trends, or trend follow the long term trends. Here you can get the odds on your side and when you can trade the odds you can win.
So forget day trading and get the right Forex education, trade longer term and enjoy currency trading success.
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The Forex Tracer Review - Is the Forex Tracer a Scam?

Is it simply possible to make money on the foreign exchange market like the Forex Tracer purports? For those new to this market which put simply is the buying and selling of one currency for another to make a profit; if you are not already aware yet, 90% of traders lose money on the Forex market. This suggests that it's much harder to make money in this market than it would be to produce and publish an automated trading system such as the Forex Tracer.
1. What Are The Secrets That Make 10% of The Remaining Traders Successful?
The absolute, ABSOLUTE critical factor is to have a well proven and profitable system in place, followed by 100% DISCIPLINE. What you DO NOT want to do is start trading willy nilly, with no plan of what you want. The obvious mantra is to start buying low and selling higher to get pips. In the long run this is the well trodden path novices tread, slowly but surely to the Forex graveyard. With no stop losses and take profits in place, greed takes over and closes the door on many fledgling Forex careers.
2. Always Have Your System In Place - Never Divert Until You Jump Ship.
Prior to establishing your system, be true to yourself that you really have the discipline to follow suite until you get out of the trade. Once this is accomplished, you then have the initial knowledge to take stock and understand the reason why your Forex trading is not successful. With this discipline and understanding in place, you have the foundations to apply your confidence successfully.
3. What Exactly Does The Forex Tracer Do and How Will It Help You?
This autopilot software which runs its little robot to route out trades with stop loss and profit margins in place will reduce the stress that comes with trading, as it eradicates rather archaic methods of studying charts and endless hours spent in front of the computer screen.
With complex algorithms and detection mathematics in place, you are then required to input price data each seven days. It will then calculate your stop losses and trade profits. From here autopilot trading will take place within the margins specified, 24/7, thus adhering to a disciplined tried system.
You can put this system to the test on a Demo account first. You can do that here at http://www.forextracertrading.com which allows you to trade with play money, so you won't be risking a penny. After you've tried, tested and retested, you can then open your real account and collect $100 and start trading on Autopilot immediately. STAY FOCUSSED and YOU WILL SUCCEED.