10 Reasons Not To Trade Forex

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Do you trade forex? Do you consider trading forex? Do you consider learning how to trade forex? Don’t do it. I like the profit opportunities that currency trading carries. I like also the risks involved, it wouldn’t be fun otherwise. But I don’t like the idea to trade myself. Where is why:

1. Trading forex is work

If you want to make your money work for you, trading forex is not an option. You will have to work for your money. Day trading may look exciting for someone who never tried it, but once the initial excitement is gone you’ll realize it’s just a computer based work like any other.

2. Trading forex is too risky

This sounds paradoxical from the keyboard of a high risk investor but I really think forex is too risky. There are thousands of websites offering forex trading strategies. Have you heard for any super-successful one? Sure, some make it for a while, but no strategy guarantees long term success. This is because forex is unpredictable. There is too much probability and too much volatility in it. That’s why you are unlikely to see serious hedge fund to invest in forex ever.

3. Trading forex does not add wealth to the world

If you want to make money, you need to create wealth. What exactly is the wealth that a forex trader creates? What is the value he adds to the world? I can’t think of any.

Forex trading is a zero-sum game. If you make money, this is because someone else is losing it. If the intellectual energy put into currency speculation was put into something else, this could make the world a better place.

4. You don’t grow

I am sure many professional forex traders will be mad to hear this, but seriously, how exactly does day trading helps your personal or professional development? Sure, you’ll learn some strategies, maybe build some self-discipline and… what else?

5. You need money to make money

Let’s imagine after few years of investing your time, money and hard work you finally become a highly successful forex trader who achieves consistent 5% monthly ROI. This is quite unlikely considering that probably 95% of the new forex traders fail miserably, but I know you are smart, so let’s hope it will happen.

Since forex trading is work, like explained in point 1, you will probably do it all the day and will rely entirely on it for your income. So if you want to earn $5,000 monthly you’ll need $100,000 startup capital. Uh.

6. Trading forex is addictive

Just like gambling, day trading is highly addictive activity. Each small success leads you to believe that you can do better and better trades. Each bad trade forces you to trade more so you can make up for the loss.

Gamblers and forex traders often sell or bet their homes to feed their passion and hopes. If you lack self discipline, forex trading is one of the worst professions you could ever take.

7. Day trading is stressful

Do you really want to watch the computer screen all the day, to worry about your open positions when you go out for lunch and to wake up in the night because an important even happens on the other side of the globe and you can not miss the currency fluctuations produced by it? Think seriously about this because this is what the life of a professional forex trader is.

If you dream about lifestyle of freedom and leisure and are picturing yourself with a laptop on the beach, trading forex is most probably not for you. It’s an activity for people who like to live in stress and risk.

8. The forex trading knowledge is useless in other professions

Seriously, do you think the years you spend in studying forex can be useful if one day you decide to do something else? It won’t help you even for similar activity like stock trading because the systems and strategies are completely different.

In most professions whatever you learn during your experience can be extremely useful if you switch to a related (and sometimes totally unrelated) field. This is not the case with forex trading knowledge and experience.

9. There is too much fraud

Not all Forex brokers are as honest as we would like. Every professional trader has heard about big Forex brokers scamming away. See for example how several brokers were shut down in 2007.

When trading Forex you don’t have full control over your money. A dishonest broker can close down and run away or just deny you to withdraw your money.

10. You can have others trade for you at almost no costs

Why trade forex yourself, when you can get professionals trade your money? The managed forex accounts give you access to expert’s knowledge for a share of the profits. You don’t have to pay anything upfront. Isn’t that cool?

Yes, most managed forex account suck in performance and that is because of the reasons given in points 2, 6 and 7. Chances are if you trade yourself you’ll also achieve the same pathetic results but will lose not only money, but time and intellectual power too. Besides that, some managed trading accounts do well and actually make money.

Regardless of anything, I think forex investing is something to be considered. But if you plan to trade yourself, you must be very sure that you want it. The life of the forex trader is not romantic or carefree. At least this is not the life of most forex traders.

Forex Trading Robot Software That Works


Anyone who has ever dabbled in forex trading knows just how risky it can be. Looking over stats, weighing the market, and trying to predict the winning foreign exchanges is a serious time consuming challenge. The money is there and the forex trading market can be very lucrative for those with experience and the right evaluation system. Developing a successful system for evaluating trades can take a lot of time and cost you a lot of money in the beginning. Simply put, the learning curve is a steep one for most investors starting out in this type of financial venture. The good news is, with the advent of the computer and software development, the gap between evaluations of forex trades and choosing a winner has been dramatically reduced.

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forex-trading

Forex Trading Just Got Easier And Way More Profitable

Because of the previously mentioned gap between evaluating and choosing, someone got a brilliant idea to develop software that could keep track of the market trends and evaluate the potential profitability of available forex trades. Thus the forex trading robot software was born, or created. This was revolutionary! What a great tool! Everyone that uses this fantastic software application will become rich over night! No, I’m afraid not. Why is that? Mainly because like most new software programs they still needed a lot of work. They were good at a few things, and those things were good things to know, but they failed to give the bigger picture of the forex trading market place. As time has gone by, forex trading robot software has gotten better and better. Forex trading robot software has become smarter and more reliable at evaluating the forex market place. Thus, this is one of the best times to give forex trading a whirl.

Getting Started In Forex Trading

Forex trading is fast becoming a big Internet past time. This is mainly due to the convenience of using the Internet to access forex market information, and the ease of using a home personal computer. A good tool to use for evaluating the forex marketplace and doing the actual trades is a forex trading robot. The one you should look at and consider is FAP Turbo; it is fairly new to the market place, but has steadily been gaining a favorable reputation.

“How to turn $1,000 into $1,000,000 in 24 months”

Some traders using this system have reported amazing streaks of up to 30 winning trades in a row (I’ve included the testimonials below). From a trading system standpoint, that’s pretty amazing.

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Fig.1: 5emas Forex Trading System Performance

And depending upon the exit strategy selected, the system generates monthly returns of between 30% and 55%.

Trading Advisor Included

Included (for free) with the 5EMAs Forex Trading System is an Expert Advisor for the MT4 forex trading platform. It doesn’t auto-trade for you, but what it does is to generate audible alerts when trade entry criteria have been (or are about to be) met. You have to do next is to confirm the trade with the rules and principles taught in the course, and then place your trade.

Fig. 2: USDCHF Trade using the 5EMAs Forex Trading System

Once you get an alert, simply confirm the set-up is valid and place your trade.

While auto-trading is great, most of the time manually confirmed trading systems have the advantage of having the human eye gauge the current market sentiment for the final “Go Ahead” on a trade. This is something that a computer program can’t replace, especially if you have trading experience.

How to do Forex Trading (Currency Exchange) Successfully Online

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There are many aspects of forex trading (currency exchange) that make it difficult to achieve success. This article will spell out some of the factors that you'll need to be aware of, and outline specific tools and strategies that have worked well for me, and others.

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Instructions

Difficulty: Moderate

Things You’ll Need:

• A PC
• An online Forex Trading account
• A Forex Advisor

Step1

Online Forex Trading - Do's and Don'ts
Any experienced trader in the currency exchange market will tell you that there is one major thing that will limit your success - emotion. If you are trading foreign currencies, you have probably done your homework on statistical analysis and fundamental analysis, but are your emotions in check? I'm sure we've all experienced the sick feeling in our stomachs that occurs when we've sold too early, or held too long. Our emotional tie to our funds can make us do stupid things.

To avoid the heavy losses caused by emotion-induced trading, I suggest using an automated trading system with your foreign exchange portfolio.

Step2

What is an automated forex system?
Quite simply, an automated currency trading system for foreign exchange allows you to make decisions before you actually enter the market. Sometimes, you may hear these systems called "expert advisors." With an automated trading system, you decide when to cut your losses, and how long to let your winners run, before you ever invest a dime. This way, you can make logical decisions before you are on the emotional trading roller-coaster.

Putting a system like this in place also makes your forex trading automatic. You no longer have to sit and watch charts and wonder when to pull the trigger.

Forex trading systems consist of software packages that allow you to enter your decision making triggers, then let them go to work for you. Currency exchange trading systems automatically place all of your trades at precisely the right times. You don't have to monitor anything once you've set them up.

Step3

How do I know which Automated Forex Trading System is right for me?
There are thousands of currency exchange trading systems out there, each with its pros and cons. The goal of each system is to make money for its users. Of the thousands out there, I've found one that I believe to be very consistent, risk-averse, and brilliantly configured - which I'll recommend in step 5.

In the next step, I'll go over how to set up all of your accounts to get started with forex trading.

Step4

Setting up an Online Forex Account -
The first thing you'll need to do is open an online forex trading account. There are hundreds of brokers to choose from. Do a search online, and when you find a few that you like, sign up for a free practice account. This will allow you to test their systems before investing any of you hard earned cash.

A few things to look for when choosing a system:

- Make sure that the brokerage offers the MetaTrader 4 trading platform. This is required by many "expert advisor" systems, including the one I recommend in the next step.

- If you are trading less than $20,000.00, look for a broker that will allow you to trade a small .01 lot size.

Step5

Setting up an automated trading system -
Of the thousands of automated forex trading systems out there, I would recommend using Forex Cheetah (Website link available under resources at bottom of page). This system is very well thought out, thorough, and as you can see from their performance charts, quite stable and profitable.

At the time of writing, Forex Cheetah's forex trading system was making it's users about 2.5%-3.5% weekly on average. That's a possibility of over 130% each year! Not too shabby.

Step6

Sit back and watch your account grow.
The beauty of the automated forex trading systems is that once it's set up, you literally don't have to do anything! It is 100% automated. You can just sit back, relax, and watch your trading profits soar.