Sunday, 13 December 2009 09:02
administrator
By Daniel Novak
With the many FOREX currency systems available, you can in theory, simply turn your computer on and follow the signals to generate automatic profits.
That’s the theory - but the fact is, there are many FOREX currency systems sold that are obvious scams, and the systems will never work.
This article aims to give you tips on picking systems that can make money, and avoid the scams.
There are two main reasons why most FOREX currency trading systems fail to live up to their Hype:
1. Black Box Systems
These are systems where the logic is not revealed to the buyer - and for a FOREX currency trading system to be used successfully, the trader must have confidence in it.
If you don’t know the logic of the system, you will not have the confidence to follow it when a losing period occurs.
You need to follow a system rigidly to make money - otherwise you may as well not have a system in the first place.
Using a FOREX Currency trading system is all about having the discipline to follow the system - and if you don’t have confidence in the logic, you will never do this.
2. Curve Fitting and Optimization
Another indication of a currency trading system that is a scam, is one that involves curve fitting, or optimization.
These systems give a fantastic performance in back testing - because of the tweaking of the system rules, to make them fit the data, and produce profits.
A trader once likened this to shooting holes in a barn door, and then drawing circles around every hole - to make each shot look like a bull’s-eye.
Let’s face it, we would all be millionaires, if we had tomorrow’s news today - but we don’t.
Avoid any system that offers unique rules, or many variations for trading different markets.
If the system is based on solid logic - it should work on ANY trending market, and should not be optimized, or curve fitted to an individual market.
You will never see a hypothetical performance that fails!
Most unscrupulous vendors achieve great performance by making the system fit the data - and this causes the system to fail in real time trading.
Here are four tips, to help you separate out the scams, from the good FOREX currency-trading systems:
1. The Rules and Logic are Fully Explained
You will then have confidence in the system when it suffers a string of consecutive losses.
2. Some Evidence of a Real Time Track Record
Has the system has made money in the real world of trading?
This is the acid test of a system. If there is not a real record, look for a hypothetical audit done in real time - many systems do this before launching, and this gives a good indication of how the system will perform.
3. Look for Simple Systems
There is absolutely no correlation between how complicated a system is, and its profit potential. In fact, simple systems tend to work best, and will tend to be more robust in the brutal world of trading.
Most of the top FOREX currencies trading systems are based on simple logic.
4. Avoid any Optimized System
As already mentioned, if the system has sound principles, and then it should work on a broad spectrum of financial instruments - avoid any system that optimizes individual markets.
Not all FOREX currency trading systems fail - but if you want to get one that works, be realistic and do your homework first.
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Sunday, 13 December 2009 08:56
administrator
By Daniel Novak
You sell your money to the bank (or other) and it allocates some interest payments to your savings account from its profits. Have you seen a Bank's profits?
What do Banks do with your money? Well, they accumulate many small savers' money to lend to a borrower. The borrower buys his loan and repays it with added interest. The difference between interest rates is used by the institutions to pay salaries, pensions buy buildings and the usual business expenses.
THE WORLD PRESS occasionally reveals. "INSIDER DEALINGS" where an individual is accused of amassing huge profits from a fast book financial transaction that proves to be illegal.
Sandwiched between "INSIDER TRADING" and interest are a range of products on sale by banks. Mortgages, shares bonds and so on . Very rich individuals and organizations do not leave all their wealth in savings accounts. They trade in art. gold, diamonds, huge properties huge film productions, rare cars and such. Some buy and sell consumer items such as coffee, tea etc.
So can individuals with a few hundreds of their own currency hope to buy and sell something for a smiling profit? There's eBay. Antiques. Some gamble on a wide variety of events such as roulette, horse racing etc. On-line poker (5m PC users play every day)
Now revealed. There is a legal ethical place where you take profits and not interest. You buy and sell without taking delivery. It's far from the bottom layer of the sandwich, situated above shares. It's Foreign Currency.
Forex attracts about 2 trillion dollars a day in transactions. Someone may tell you that this makes dealings in shares small fry. Forex used to be the exclusive realm of the world banks, but computerization replaced old style traders. Banks fund Forex Trading rooms, worldwide.
Immediately, the reader identifies with a PC. Your machine may be capable of earning you a tiny, tiny part of the 2 trillion dollars. You may start with just a few hundred dollars of your own currency, but you essentially need some education, Powerful information to enable you to trade like a professional. You, buy and sell money?
How can there be a risk if you buy something and don't sell it, until there's a higher price? Forex systems eke out patterns of transactions, perhaps following the big loaves, expecting a crumb. Stories of $300 becoming $30,000 within a year: have you heard them? Banks make profits because they trade from especially designed rooms.
You do not need a degree in maths, experience or qualifications to make money 24/7 from anywhere in the world. Forex Day Trading is legal, ethical, exciting and profitable long term. A simple technique at the roulette wheel explains - the pattern is red, black, red, black - what would you choose next? That the pattern continues or is likely to finish? Make a decision and wait for that pattern to appear on any table's display, then act.
Whilst you may take the banks interest in one hand, the staff are elsewhere making huge profits.
Sunday, 13 December 2009 08:53
administrator
In this Forex course we will review some steps you need to take care before you venture into your trading journey. Most traders venture into the Forex market with little or no experience in the Forex market. This results in painful experiences like loosing most of the risk capital, frustration because it seemed so easy to make money, etc.
The first thing you need to realize is that, it is not easy to make money. As every other endeavor in life, where important rewards are to come after mastering it, you need to work hard. You need to get very well educated and experienced before having the possibility to receive important rewards on it. The key on mastering the Forex market relies on commitment, patience and discipline.
Ok, you have decided you are going to trade the Forex market, you have seen several advertisings featuring how easy is to make money in the Forex market. You might think this is your opportunity to reach your financial freedom, right away, time is money, why waiting any longer if you have the opportunity to make money now. I know, I’ve been there, but you have a chance now, I didn’t, no body told me what I am going to tell you.
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