Forex Robots - Why They Will Not Give You Success!

Forex Robots - Why They Will Not Give You Success!

Forex robots if you believe the advertising copy means you can pay a miniscule amount of money normally a few hundred dollars and then get an income for life! Does anyone believe this nonsense? Yes loads of traders but its obvious they will never make you money for the following reason...

Never Traded - Never Proven

The aim of these systems is to make you money but they have never done this - when you strip through the copy and delve a bit deeper you will see this!

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading.

Umm, so it's made no real money and of course that's what you're hoping it will achieve and really you should pay attention to the last bit of the disclaimer kills all the hyped advertising...

"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".

So what is the point in having great copy and colorful packaging, when the forex robot has never done what it is claimed to do i.e. make money in the markets?

Exactly - no use at all.

You will find lots of people online claiming they have made money - but they are normally affiliates for the system and they are looking to make a percentage of the sale.

As a trader I get bemused by some of the comment they make trying to get you to buy them like...

It's a robot but be cautious, you need to practice with it otherwise you will lose.

Well, a robot means it should just give you buy and sell recommendations and make money, or am I missing something?

Furthermore, many robots say you can make money by investing just $100.00 or so, well try that with any system ( even a good one ) and you are relying on luck and luck, wont get you anywhere - your account will get destroyed.

You can practice in a demo account for a few weeks. Well this is no use any forex trading system needs to be tested over a 2 year period as a minimum really and most serious traders know this.

You also hear these so called users saying you don't need to know what your doing, or you can make money with your feet up, sleeping or on the beach but that's rubbish.

Even with a good system, you need to know how and why it works so you have confidence in it and can follow it in a disciplined fashion. If you don't know the logic and why it is likely to work you will never stick with it through losing periods.

Ask yourself this question:

If the forex robots really worked, people would all be trading and not working and your local bank, brokerage or investment house would sack all the high paid dealing teams and rely on them.

Strange I haven't seen this happen yet and nor is it likely to happen, for the obvious reason - they don't work and they never will.

Call me a skeptic ( or realist is a better description) but its obvious that these systems will blow your account up and do it quickly.

Futures Trading Systems - 60 Minute Trader Review

Futures Trading Systems - 60 Minute Trader Review

Playing the futures market in commodities trading as a speculator can be quite a gamble if you don't know what you are doing. Futures trading analysis depends upon many factors in today's global marketplace. Some of these factors include the changing trends in the weather, reports from market exchanges, and current political news. If you're going to be a successful futures trader, you need to have and follow a system that will assure you of success.

Speculators trade the futures market for the profit they can gain through predicting the movements in the market. They have no interest in buying or using the commodities in which they speculate. Their interest is in buying the commodity "on paper" and selling it for a profit.

Because successful trading in the futures markets can be so difficult, it is beneficial to have or be using a system designed to take advantage of certain trends in the marketplace. One such system is called the 60 Minute Trader. It was designed by a long-time futures trader who, like many others, figured out how to make successful trades based upon certain market conditions.

The system's developer, Chris Kobewka, will take you step by step through the very thought processes he personally uses in order to successfully trade the futures market. A few of the things he covers are: understanding the basics of how the market works; how to make money in a bear market; how to trade effectively, commission-free; learn what to trade and why; how to anticipate market trends; and learn about the real factors that drive the markets.

One of the advantages of this trading system is that it utilizes one specific time to trade during the trading day. This allows the trader to make his trade and not be tied down to his computer all day to monitor subsequent trades. The trader gets his trading signals and makes his trades during one part of the day, then he's done and can go on to take care of other business of the day. For those who wish to utilize it, the system does include a trading method for day trading, though this is not generally recommended for inexperienced traders.

The trading method that Chris teaches is easy to follow and easy to implement. Although using this system may not make you big money, it will, over time, be a consistent winner, getting you in and out of successful trades. As one successful student using the 60 Minutes Trader has said, "This system is the only one that I am currently using and have been doing for the past several months. It works, is fully back testable, and the results are truly amazing."

Day Trading - The Dow Emini, Review For Wednesday

Day Trading - The Dow Emini, Review For Wednesday

It was another tug of war type of market day on Wednesday which saw the Dow endlessly struggle to keep from losing more ground. The financial news from today was mixed, and this contributed to the market appearing to have no idea what direction to take for the majority of the day. Market and YM volume was slow at times, erratic at others and this caused the point moves on the YM chart to be very questionable throughout the day. As has been the case the past two trading weeks, the potential trade set ups seen on the YM chart today continued to be choppy.

There were many times today where a trade trigger was indicated but the actual entry spot quickly disappeared as a big point candle engulfed the safer buy area. This was then followed by a lull in the action where the point move would actually come to a complete stop or the volume would slow to where you had no idea what was going to take place next. The trend of the safer trades occurring during the first two hours was in effect again today, but even the majority of those set ups were ones that made me think twice about trading them. It's always easy to go back and look at the better point gaining trades at the end of the day and think about what could have been, but at the time those trades developed there was little indication that the point move would result in a decent gain.

I stuck to my game plan of trading cautious today and even though I missed a couple of decent winners I'm happy that I didn't get caught up in making the same mistakes I made yesterday. I could have easily made those same mistakes today but it was obvious after the first two hours of trading that the risk factor and odds of making a mistake were increasing so my decision to slow down was the correct one, at least for me. There's always another day and another opportunity to do better.

I mentioned earlier that news from today was mixed and here's a quick description of what the bigger headlines were. Oil prices slightly dropped, US factory orders gained a bit in July and the battered financial sector gained some ground on the day. Yet, the market struggled the entire session to keep from rolling over and playing dead. Joe Battipaglia, chief investment officer for Ryan Beck&Co was quoted as saying, "All of the market data the past two weeks has been very good," pointing to Wednesday's factory order data, falling oil prices and a recent revision upward of the second quarter GDP. He was then quoted as saying, "Despite all of that, you didn't get a commensurate market performance and that's troubling." In Deacon Mike's translation, Joe means that since the market didn't display a sustained upward move over the past few weeks and the volume levels in the market are low, be prepared for the markets to head lower.

Maybe the markets will tank and maybe they wont. I doubt anyone really knows what's going to happen tomorrow much less a month or so down the road. I do know that there's a lot more negative factors out there that can effect the market than there are positive ones. The drop in oil prices doesn't seem to have much of a positive effect on the markets right now and we still have pending hurricanes that could cause the price of oil to jump. We still have a bunch of geo political issues to deal with and the housing and financial sector problems are nowhere close to turning the corner. I tend to think that all of these overhanging issues are the reason traders are either being cautious or sitting on the sidelines. This results in seeing what we saw today, back and forth market action with little conviction or support for any type of trend that was created. I guess the lesson here is to be prepared no matter what the market does.

The Value of Day Trading Charts

The Value of Day Trading Charts

Almost all people who are within the confines of the stock market business are perfectly aware that such a place constantly undergoes change. Thus, they deem that there is the dire need for the so-called algorithms in order to appropriately analyze their actions as they partake in day trading. Foresight is one valuable factor that day traders need in visualizing the possible outcome of their endeavors. In order for them to achieve such foresight, what they depend on are the day trading charts.

The day trading charts paint a clear picture regarding what is basically going on with the stock market. Are the prices going down? Is there any possibility that the prices will go up? As a matter of fact, every second counts in the algorithms reflected in these charts. Among the general features which are promoted by the trading charts are the TRIN, TIKI, fair value, and the TICK all of which are market internals that play integral roles in the course of your trading. With these market internals, you can define the suitable strategy that you may adopt.

The day trading software permits the entry of some technical indicators like those of the morning averages and the RSI within the market internals that you are currently using. The software thereby allows you some trial periods so that you may identify if such application works to your own advantage. It is however important to take note that the applicability of the day trading software will also have something to do with the technique that you employ in trading.

The charts therefore gift you with the ability to foresee what is likely to happen the next day whether there is the tendency for the prices to go down or go up. Take note that prices in the stock market often fluctuate. They can't even be held steady for a matter of a few hours. With the stock prices' direction as shown by the charts, you may be able to vividly draw out the points wherein you need to focus on as you continue with your trading spree.

Many day traders generate their own dooms when it comes to playing with the figures of the stock market prices. What they don't realize is that the charts can do something significant for them. You should not be the next victim of the lack of foresight. If you wish to succeed in line with day trading, you may check out the availability of the day trading software online and purchase one for your own use.

Trading The Global Futures Market For Wealth Creation

Trading The Global Futures Market For Wealth Creation

With the persistent downward movement in the global stock market, the allocation of some portion of investment capital to futures trading can provide a means of achieving greater portfolio
diversification and a potentially higher overall rate of return on investments. Unlike investment in equity, a trader in futures market can make money when the market goes down as well as when the market goes up. There are also a number of ways futures and options on futures can be used in combination with other investments to pursue larger profits or to limit risks.

*WHAT IS A FUTURES CONTRACT?
Futures contracts are legally binding agreement to buy or sell a commodity such as metals or financial instrument such as stock indexes at a later date. Futures contracts are standardized according to the quality, quantity and delivery time and location for each commodity. There are two types of futures contracts, those that provide for physical delivery of a particular commodity and those that call for an eventual cash settlement. The commodity itself is specifically defined, as is the month when delivery or settlement is to occur. A july futures contract, for example, provides for delivery or settlement in july.
During the last two decades following the advent of microcomputer, participation in futures trading by individual traders has grown tremendously. Trading software has proliferated as an increasing number of traders have embraced online trading methods to participate in the global financial markets.

*TRADING THE FUTURES MARKET
Futures' trading is a technique whereby one can buy and/or sell a variety of raw and processed commodity items, as well as contracts on financial instruments, stock indices, and even individual stocks, for anticipated delivery at some point in the future. A person who buys a security futures contract enters into a contract to purchase an underlying security and is said to be 'long' the contract. A person who sells a security futures contract enters into a contract to sell the underlying security and is said to be 'short' the contract. The price at which the contract trades[the 'contract price'] is determined by relative buying and selling interest on a regulated exchange.

In order to enter into a security futures contract, you must deposit funds with your brokerage firm equal to a specified percentage[usually at least 20 percent] of the current market value of the contract as a performance bond. Moreover, all security futures contracts are marked-to-market at least daily, usually after the close of trading. At that time, the account of each buyer and seller reflects the amount of any gain or loss on the security futures contract based on the contract price established at the end of the day for settlement purposes[the 'daily settlement price']. For example, E-minus, like other futures are traded in units called 'contracts'. These contracts represent a bidding agreement to buy or sell electronic mini lot of a future contract at a specified price. You can buy contracts on oil, cotton, pork, bellies etc. Using E-mini S & P 500 futures index for our illustration, you earn [or lose] $50 per point per contract and pay a commission of $6. 20 per round trip.

Each movement of the contract between prices at which profit or loss is recognised is called a 'TICK'. For instance the S&P E-mini ticks like this:1422. 00, 1421. 75, 1421. 50, 1421. 25, 1421. 00
In other words it is divided into 4 ticks per point. Each full point is worth $50 per contract. Each tick is worth $12. 50. So if you made 6 points on 2 trades of 5 contracts each, your profit picture would look like this: 2 x 5 contracts x 6 points
=60 points x $50 =$3, 000

The only thing we have not taken into account in the above equation is the market maker's commission. Assuming the brokerage deal of about $6. 20, the commission would be $62. 00 for the trades[$6. 2 x 10], so your total profit on the 2 trades would have been $3, 000 - $62 =$2938.
The NASDAQ E-mini contracts are worth $20 per point. The NASDAQ E-mini ticks like this: 2420. 00, 2419. 50, 2419. 00.

Notice that the NASDAQ is only divided into 2 ticks per point. Each full point is worth $20. Each tick is worth $10 per contract. To trade E-minus or any futures contract for that matter you have to maintain a certain level of cash in your trading account. That amount is called 'Margin', if your broker requires a $3, 000 margin per contract [very common amount with many brokers for short term trading accounts then you would need $6, 000 in your account to trade 2 contracts. You will also need some funds over and above that as a cushion, just in case the trade does not go your way. So as in the above example, if you had a $3, 000 margin and wanted to work with 2 contracts, you would need to have about $8, 000 in your account [$6, 000 for the margin and $2, 000 cushion]. You could do it with less, but you will be required to have at least the margin in your account or you won't be allowed to make any 2 contract trades. Commissions are often expressed in terms of 'Round Trips'. That means a buy and sell, or a sell and buys. Each time you get in a trade and then back out is a round trip. You will see various prices all over the net for these commissions. Some brokers will give you a very low commission rate, but a higher margin. It is worth it to you as a trader to pay a slightly higher commission if you can get a nice low margin! The low margin will allow you to play with more contracts and increase your profits with less money in your account.

*PARTICIPATION IN FUTURES MARKET
Individual, investment group or corporate organisation can trade in any of the major futures market of their choice. This is made possible by the advent of online trading. Online trading allows traders to actively participate in buying and selling of futures and equity in any major stock exchange market across the world. The trader is link up directly into the market through software called platform.
A platform is the software you will actually use to make trades with. Your demo account is a platform. When you go live you will be using the same software or platform [or at least you should learn the platform, is part of the battle in becoming a trader] that you used with your demo. Since trading in the global futures and equity market is real time, therefore, an aspiring successful trader must have the right tool, system and attitude to succeed. Traders must also have some level of capital and the relevant knowledge required to analyse the market proper. There are two ways to carry out market analysis. [a] Fundamental analysis [b] Technical analysis.

Fundamental analysis focuses on external factors such as interest rates, the general economic performance, and social and geo-political factors that drive supply and demand that affect the performance of companies that makes up the component units of financial markets. Three main factors that impact stock market movements from a fundamental perspective are:

[a] GOVERNMENT POLICY AS IT RELATES TO INTEREST RATE: The cost of borrowing within the local economy. Since this is a direct cost to corporate organisations, it has an effect on profitability on companies operation.

[b] ECONOMIC INDICES: These are the indicators that show the state of health [performance] of the economy of the country where the market is situated in one hand and the state of world economy in general.

[c] GEO-POLITICAL FACTORS: This is the extent of social stability across the world. The effect of events such as crisis, change in government, natural disaster, threat of terrorist attack, policy changes play a significant role in determining the ability of corporate world to operate profitably. While technical analysis involves the forecasting of stock price movement based solely upon statistics and price pattern. Simply put, technical analysis is the analysis of the market based on price action. While fundamental analysis looks at economic factors and geopolitical conditions [such as economic numbers, capital flows and key political events] in an attempt to forecast exchange rates;technical analysis relies on the statistics and patterns in price movement for its forecast. Technical analysis has gained great popularity in recent history, especially as trends in computerized trading continue to develop and active traders continue to refine their strategies to best assess what is going on in the market at all times. Coinciding with the increasing popularity of computerised trading across all investment arenas is the ability for traders to employ technical analysis. As markets tend to become inundated with information and as charting applications are able to provide traders with an increasing array of data, technical analysis has become both practical and relevant. I n today's marketplace, technical analysis has become an essential tool for any aspiring trader.

Forex Signals Generators

Forex Signals Generators

The foreign exchange market is swamped with investors and interested individuals that want to earn a lot of profit from trading currencies and making lifetime investments. You as an investor basically trade currencies in the foreign exchange market and earn profit from it. Since foreign exchange or FOREX is an ever-changing business, the investor must monitor the rise and fall of the value rates of the currency you are investing in. With 24 hour access and easy trading of all kinds of currencies, the foreign exchange market is a place where you can make a lot profit easily. Forex trading was once done manually, but that was a long time ago. Now with the creation of auto trading robots and expert advisors (EAs), you can easily gain access in the Forex markets 24 hours a day and can make trades and investments online. With this development, investors can now sit and relax while making trades online.

Ever since the groundbreaking discovery of the many uses of the World Wide Web, many people of all professions have turned to the Internet in order to get things or information easier and faster. Doing things manually has become so tedious to the impatient human being, this including serious business transactions like Forex, that almost everything is being converted virtually and placed in a website online. Yes, foreign exchange investors are now looking for more ways to make trading and investing easier and less time-consuming compared to manually monitoring the foreign exchange markets manually. With the help of Forex auto trading tools and services available for investors online, Forex trading and building investments can be done in just a matter of minutes and can be updated 24 hours a day. Forex signals can also help Forex investors by sending alerts and notifications about what currency pair to buy and sell now. Forex signals generators are primarily programmed to send these alerts to the investor, so if you are planning on depending on forex signals to update you while you are away from your computer, get the best, most effective, and most updated forex signals generators available on the World Wide Web in order to keep the cash flowing in and to lessen losses as much as possible.

You can find websites hosting forex signals generators and can download the software immediately by just paying a certain fee for purchasing the product. Make sure that the forex signals generators you are planning on investing in are reliable and reviewed by professionals to ensure that you are not buying a worthless program and wasting time and money on it. Since the Internet has allowed scammers a wider arena for their scamming projects, it will take a lot of smart thinking and heavy decision making to be able to find the best forex signals generators out there that are updated and are easy to use. Incorrect and inaccurate Forex signals can lead you to making a lot of bad investments and decisions in the market, so be careful and choose wisely which generator will serve you best.

Future Option Trading

Future Option Trading - CBOT Future - Can You Make Consistent Profits?

Can you make money consistently in future option trading? Is the CBOT Future really a place that you can profit day in and day out? Those are good questions and the answer is a resounding "Yes!" Yes, you can make consistently good profits in future option trading. Yes, the CBOT future is a place where you can make money day in and day out. You came here to find out what the biggest mistake traders make in future option trading. Here it is:

A lack of discipline is the absolute biggest reason why traders fail in future option trading. As a result of a lack of discipline, emotions get in the way and the result is disaster. What is needed is a trading system when it comes to CBOT future. Trading with a system does away with emotions from future option trading. If you don't have a strategy and you try to make decisions when the market is moving, you are bound to become emotionally attached to positions. Usually what follows is panic and indecision when the market does go your way, as you do not have a prepared response. That's when most CBOT future traders lose their money. If you follow a system you will know what to do no matter what the market does.

Th big question is: How do you learn to exercise discipline with future option trading? That is not an easy question to answer but can say that the cheapest and most direct route to consistent profits in CBOT future trading is accomplished by trading under someone. I am talking about getting a mentor or coach. If you know someone that has been successful in future option trading then I would advise getting under their wing and learning all that you can. If you do not have a coach currently you may want to click on the link below. They are offering a FREE coaching session with a professional team of CBOT future traders.

Forex Trading Basics - 10 Commonly Held Wisdoms That Will Destroy Your Account

Forex Trading Basics - 10 Commonly Held Wisdoms That Will Destroy Your Account

There is a lot of good forex trading education on the web and a lot which will ruin you. The 10 so called common wisdoms on how to make money don't. This might be why 95% of traders lose, so avoid them and get the right forex education and win.

1. You can Follow a Forex Robot and Win

You can but there are very few robots that do win.

It's an industry designed to appeal to greed and the fact is most of the robots have never even been traded - they are all simulated in hindsight ( check the disclaimer) and never likely to win going forward, as there simply made up knowing the past - How hard is that? Not very. Pay $100 and make $100,000 a year, is not real life!

2. You need to predict prices to win

Prediction is another word for hoping and guessing and wont get you far and you will find your market timing and you're trading signals are as accurate as your horoscope!

Act on the reality of price change on your forex charts and forget prediction - know one knows the future, so trade the reality and the truth and you will have the odds on your side.

3. Buy low and sell high is a Great Way to Make Money

It would be if you could do it but you can't and you will get involved in prediction and also keep in mind this simple fact - most big trends start from breaks of new market highs, so you need to buy and sell higher, to catch the really big forex trends.

If you are not familiar with breakout trading make it part of your forex education if you do, you will catch all the best moves and be in on the high odds trades

4. You Should see if You Can Win With a Demo Account

You might win with a demo account but what does that prove? Nothing, as real hard cold dollars are not on the line.

There is no pressure and forex trading is a pressure industry. To win you have to trade with the pressure on you and demo accounts don't do this.

5. Learn From Your Losses

Learn what - you lost! Big deal losing is part of the game. If you executed your trading signals in line with your system you learn absolutely nothing, don't bother it's a waste of time

6. Continually Learn

If you have a forex trading strategy that's logical you have confidence in and works - why change it?

We all want perfection but it's not possible. I have used the same system for 22 years and never changed it.

Sure, my forex trading system is not perfect but no ones is; it works and makes money and that's good enough for me.

7. Day trading and Scalping Works

Really? Ever seen a day trader with a track record of real profits?

Exactly, there all simulated profits not real ones, just like the forex robots we referred to earlier.

Forget this form of trading, the data is too short to try and work out what millions of traders will do in a few hours is futile.

8. Only Risk 2% Per Trade

Maybe if you have 100k or more but for small potato investors you can't take such small risks as your account will be destroyed by volatility - look to risk 10 - 20% and trade only high odds sets ups...

Better to risk more on these great trades, than low odds trades with 2%.

Most traders try to avoid risk so much they create it - don't make the same mistake.

9. Diversification Reduces Risk

It also dilutes profit potential. If you have a good high odds trade, don't dilute its potential for profit with low odds trades.

Diversification, if you have 100k plus can work but really it's not a way to make a small accounts equity grow quickly.

10. You Need Information Quickly

Why? It doesn't help you win and never will. Everyone has the information quickly, so you can't respond to it or gain an edge, so don't bother trying.

This is one of the biggest myths of forex trading and will make you lose. Stand back and watch the big picture, not the impact of every short term event.

So there you have some currency trading basics, in terms of wisdoms, that are commonly accepted and you should avoid. keep in mind the majority doesn't win so, what most think is true ...well - You know the answer!

Ten Trading Tips to Contemplate

Entry Strategy is important for making profits and minimizing risk. Knowing when you are going to buy a share will always give you an advantage because, if you buy under the right conditions, then you will have less to lose than if you buy at the very top of the market.

Exit Strategy means having a plan for either taking profits or minimizing losses. No exit strategy means more losses.

Taking Profits is about having a business plan that enables you to make a living from the share market. Businesses make profits for their owners to spend on their lifestyle. Share traders work for themselves and need to make profits to survive. Regularly taking profits on the share market is how traders make their money. Other people will leave their money in a share stock for years and, in some cases, they will see a reasonable return, but more often than not, the majority of people wished they had of sold their shares when they were at their previous highs.

Minimizing Losses is as essential to survival on the share market as taking profits is essential. Cutting losses quickly means that you are not financially and emotionally damaged from a huge loss. A series of large losses can blow your bank or even bankrupt you, whereas a few profitable trades quickly cover a series of small losses.

Key Indicators are the only tools that you need to use to trade successfully. Trading is easier than people realize. For the Technical Analyst, there is no need to be studying reports and having to have an ear glued to the news. Simply using about half a dozen basis indicators is sufficient to be successful as trader. In fact, the fewer the better.

Basic Patterns help you understand how simple the market is to read. There are excellent formations like a double bottom and an inverted head and shoulders, which are very reliable and other formations within a trending market, like triangles and pennants that confirm the trend.

General Trends give an idea of what is happening in the market. Some stocks will buck the trend, but most will not. What happens to these stocks forms the trend. Because of this is it profitable to trade the indices.

Small Caps are known as the lower end of town, and this is where some very good value trades can be made, because they have greater a chance for growth.

Large Caps can be safe investments, but often they are slow movers. Exceptions are when there is a mining boom and large mining companies are growing or some other industry is experiencing phenomenal growth. Meanwhile the other industries might be lagging for years and the companies fully capitalized or over capitalized. Unless you are using options, it is best to keep away from large caps, if you are looking to make serious money.

Trading Options provide excellent leverage on large caps. This is the way to make money on these stocks. Owning a share might cost you $40.00, but the option may be obtained for only $1.00. If the share moves up $4.00 and you sell the share, you will make very little because you will have to pay brokerage of the total value of the share and not the $400 profit on the 100 shares sold. On 100 options you would make 300% profit and only have to pay a small amount on each option purchased. The difference in outlay and profit is enormous.