Forex Trading Systems and Tips
If you are looking to trade on the Forex then you need to seriously think hard about whether it is for you. Trading on the foreign exchange or forex can be a very hazardous way to make money but at the same time a very lucrative one. People from all over the world trade the foreign exchange and about 5% make exceptional money, 10% make a good living, 10% make a living and get by and the rest lose their money.
Not everyone can make money on the forex as with anything there will always be winners and losers. What you must ascertain before you start trading first and foremost is that you can afford to lose the money you are starting with. Above all never start trading with money you cannot afford to lose.
With that in mind, you have decided that trading the foreign exchange is for you and you need to decide how, what, where and why. There are many forms with which trading the forex can take from manual trading to automated trading robots.
Manual trading can be fun and if you have nerves of steel and a cool head then this may be the way to trade, however if you are not of this mind then there are the alternatives of the automated trading robots.
Automated trading robots offer the ability to trade on the foreign exchange with little fuss, with the robots making the trades for you and because the parameters are set at certain levels the losses and wins are taken or lost at certain levels.
If you decide to trade with a robot there becomes the necessity to either run your computer twenty four hours per day, seven days per week so that the robot is able to watch the market trends and make the trades accordingly. If you do not want your computer to run twenty four hours per day and seven days per week then there are many companies that can be found on the internet that will host your robot for you for a nominal fee.
Not everyone wishes to run an automated trading robot and as such will need to adopt some kind of system to maximise their chances of success. As mentioned earlier you will need a strong will and mind to trade efficiently and successfully. There are many systems that can be found on the internet and with a little research much information can be learnt but sometimes it can be better to learn a tried and trusted system which can cut out much of the learning curve.
When looking to trade on the forex or foreign exchange you will find that there are a number of platforms that can be downloaded free of charge that allow you to trade demo accounts to try you luck prior to actually placing any stake money on the forex market. One such platform would be the Meta Trader 4 platform.
When trading on platforms there are many type of trading indicators that can be used but you must learn how to read and understand them. Obviously if you are using an automated robot then there is no need to learn and read then as the robot takes care of the trades for you. One of these indicators is the IBFX Daily pivot Indicator. This is a free indicator and can be downloaded
and added to the Meta Trader 4 platform that you have on your computer. This indicator uses pivot points and has been widely used for technical analysis of the foreign exchange.
The L-regr indicator is also known as the Linear-regression Channel and consists of two parallel lines, equidistant up and down from the line of linear regression trend.
The Zig and Zag indicator should be included on most Meta Trader 4 platforms under the custom indicators but should it not be there you can download a copy free from the relevant websites. This indicator will draw lines for you on the platform to show the current and past trends and so lead to an indication of with way to trade.
One thing to remember with trading on the forex is that you can make winning trades whether the price goes up or down. Which way you trade is decided on whether you buy or sell you currency trades. If the price of the currency you are looking to trade is going up then if you buy a trade and it keeps going up then you win when you close the trade providing that it is higher that when you bought it.
If the price of a currency is going down then you will sell your currency and providing the currency price keeps falling then when you close the trade then you make the difference as profit. Please remember that though that currency prices go up and down every second of the day so trading with a demo account first will always give you an insight into what trading is all about