The Forex Market can be tempting, it can seduce and then tease you into thinking it’s a quick and easy way that you can make a bushel full of money, this all before lunch. The risk of loss which is associated with the forex market extremely slants towards the markets favor, sound familiar?
To really anyone’s educated surprise, the initial success rate of any new bright eyed forex trader is extremely and disturbingly low. If they happen to survive the initial chopping block floor, the trend does however reveal that the chances of “making it” does tend to improve. But for the majority of new traders, a percentile in the high 90%’s, it may never work out.
So after you decide on making some trades and then you post them as losses, defeated, many novice forex traders will just then simply give up, believing that the big bad forex market is not for them. But it doesn’t have to be that way.
How About Using A Currency Traders Forex Trade Signals
Forex Automoney is a currency market trade signal generator software program which was developed by professional Forex traders along with a group of mathematicians, programmers and financial industry specialists.
They have been trading in the Forex market offering years of experience, unlike other programs or those giving out trading tips and advice or theory for a fee.
How About Professional Experienced Forex Traders Giving You “Real Time” Forex Trade Signals
Forex AutoMoney is a membership based service providing currency pair “Buy and Sell” trade signals for their members. These trade signals will let you know exactly when you should be entering the market for a particular currency pair, as well as where to “Take Profits” and where to set your “Stop-Loss” settings as well.
So without having to take those costly Forex trading seminars, or purchasing other software or Auto Trade programs, Forex AutoMoney offers you Forex trading signals on a daily basis, recommending exactly which currency pair to enter, as well as when to exit the trade.Ad
The Forex Automoney program will issue two different trade signals, a “Buy Now” signal or a “Sell Now” signal for a particular Currency Pair. This software application will automatically send you these trade signals at the exact time that they analyze there will be movement in the market.
The service also gives signals allowing you to make trades on three different time frames: intraday for day trading, daily signals and weekly trading signals.
Paper Trade For Free Using Forex AutoMoney For Up To 60 Days
You’re able to test out these trade signals by “Paper Trading” on a demo account for up to 6 weeks, which is the length of the Money Back Guarantee. This way, you’ll be able to test out its long term performance and reliability of the signals. If you’re satisfied with the results, you can then continue with the signal service, as the cost will be obviously minimal as compared to the potential profit return. There is also a 3 day trial.
The Top Reasons Why Forex Traders Fail
Yes, Lots Of Experience Is Required So Paper Trade
Forex trading seems easy. You buy if you think a certain currency pair will move up, or you sell if you think it will go down. Simple, just look at the chart and it’s right there! But like anything new, forex trading is a little more complex and thus has an extreme learning curve.
But unlike learning any new skill such as playing the piano, you’re not sitting there potentially risking your life savings on a click of a mouse. Learning the finicky nuances of the currency markets as well as learning the basic disciplined trading principles, does not really rely solely on practice or trial and error. That may not even be the recommended approach in gaining the proper skills which are required to be a successful forex trader.
The majority of the online forex brokers will offer a free “Paper Trading” account or practice versions of their forex trading platform, which offers the exact same experience as if you were trading a real live “real-money” account. So once you create a “Paper Trading” Account, you’re then able to trade as well as deal as if you were risking the play money as if it were your own cold hard cash.
With these paper trading accounts, you will be able to see exactly how the currency market behaves, how the trading platform behaves, and how it reacts to fundamental economic conditions such as news or financial events without risking your own investment capital. You should be treating this play account seriously if you’re expecting to learn how to successfully trade from the experience, but many unfortunately do not.
Most will just shrug off a paper loss without really understanding why or how the loss occurred. If you do this, you’re wasting your time as well as setting yourself up for failure and disappointment. It’s recommended that you take full advantage of the forex market’s unique “Paper Trading” training tool before you decide to committing your own risk capital to a real trading account.
Don’t Expect Instant Success Have Reasonable Expectations
Forex has gained the reputation as the ultimate “Get Rich Quick” scheme and the hype is also perpetrated by most of the forex dealers and brokers. Although it’s true that there are those select few who has got extremely rich trading the forex market, but some also get rich by being professional athletes, or by flipping real estate. It just doesn’t happen overnight, it may take you years for you to be able to gain the confidence and the experience as well as insight to be able to turn forex trading into a lucrative, successful occupation.
For new traders, if you can manage to survive the forex trading game without losing all your money paper trading, or even a real money account in the first few months, then you may have the mettle as well as a chance to learn what’s really required to be profitable.
You Need A Proven Solid Trading System Or Plan
Right next to having those dollar signs in your eyes flashing of unreasonable expectations, or the huge risks which are associated with forex trading, or spending the time that’s required to be a successful trader, the most common mistake is the lack of a proven trading system. There should be just two components for your forex trading activity, an objective for your trades and a successful trading plan.
The trading objective should be the currency pairs which you plan to trade, the exact amount of leverage that you’re willing to risk, and the length of time which you intend to trade this particular currency pair. The plan should also include a rate of return for the successful trade that you expect as well. Also, included in your your overall objectives plan, you will also need to plan a reasonable exit strategy plan for potential losses for each trade that you make.
So you must be able to identify before making the trade, the level of risk and the exact dollar amount you will potentially lose before you close the positions out and take your loss or profit. This is the exact dollar limits which you’re prepared to go with before getting in the trade. Limiting your losses is where stop-losses come in.
Poor Focus And Discipline When Trading
A successful trading plan only works if you actually follow its plan and have the discipline as well as the patience to follow it to a tee. While this to many is difficult, it’s extremely necessary if you’re expecting to be successful. This is also the reason why you developed a successful trading plan prior to making the trade. As the currency rates fluctuate up and down once you’re in the trade, you will easily get caught up in the markets movements and it’s only a human nature reaction that you’ll begin to panic or second guess your trading decision.
If for instance that the currency rate pair suddenly moves up and surpasses your originally set “Take Profit” point, you will be tempted to just hold out in hopes of a higher profit return. Alternately, panic sets in if the price drastically drops below your previously set stop limit level, but you’re hopeful that there’s a big rebound in store just around the corner. You may just be tempted to keep that order open, hoping that it will reverse.
Either scenario however makes absolutely no sense. Before you actually entered the trade, you had a solid reason for both of your take profit and your stop loss limit levels. So how is it possible that the market conditions has altered so much that you’re now prepared to suddenly change your previous assessment during the heat of the battle? At this point, you’re reacting on pure emotion rather than on a sound technical plan.
This is why having a solid trading plan is critical. It will save you the grief and stress of reacting to any emotion which is bound to arise when the market happens to become volatile.
But also keep in mind that any trading plan can be altered or revised. In fact, the most successful traders usually assesses their overall objectives as well as re-examining their trading method every few months, or for some, more frequently if and when required. Also, you may at times decide to abandon a trading plan even mid-trade if the market conditions warrant it. But this is usually the exception and not always the norm.
At times, the currency market can be extremely volatile that no prior technical planning will be able to produce positive results or vice-versa. If this is the case, then perhaps the best option may be to just simply not trade the market at all until you’re able to get a better read on things. The most common reaction is getting into the “I have to make a trade today” trap. At times, it’s just better to exercise patience by doing nothing at all.
Using “Stop-Loss” As Well As “Take Profit” Settings
When you’re placing a market order on a trade and decide to just leave it open without making any profit or loss settings which will automatically close the order, this is when trading the forex market becomes gambling. You can potentially lose every single dollar that’s in your account as a result. For this very reason, you should be adding a “stop-loss” in every open position.
For Example, you’re holding a long Euro EUR/USD position, speculating that the pair will rise in price. You should be adding a stop-loss order that will automatically cancel the order which in turn sells that long position automatically if the rate happens to fall to that predetermined level. What this does is it will limit the exact amount which you can lose on that trade. This can also come in extremely handy if you’re unable to constantly monitor that trade.
Take-profit orders are the complete opposite. Instead of losses, you can place a “take profit” order exactly at the rate in which you want the EUR/USD to close out that position, so you’ll lock in guaranteed profits. You’ll need to decide at what exact rate you’re wanting to take profits. The trading platform will automatically close the position out once it reaches the take-profit rate that you set.
Using Excessive Trade Leverage
This will depend on your experience level as a forex trader. Trade leverage can be an extremely powerful tool allowing you to take maximize returns, or it can also be your downfall. So this isn’t something that you should be taking lightly, and if you don’t quite understand how it works, then do not trade this method until you fully understand.
Too Many Open Trades
It’s not a good idea to have too many trades going on at once as you may not be able keep up or react quick enough to the market conditions. As a forex trader, this is one of the sure ways you will end up broke.
Holding A Losing Forex Position Too Long
One of the biggest differences between a successful money making experienced forex trader and someone new on the block, is their ability to know when a losing trade isn’t going to get any better. They know when to throw in the towel and start fresh another day. They never let ego or pride dictate the trade and would rather swallow the trade instead. So other than they just continuously holding on to the trade and hoping, disciplined seasoned traders will just take the loss.
This is another excellent reason why you should be setting a protective stop loss on all trades. If you use a calculated technical stop, you can then keep the emotion out and limit your losses without spending the time to babysit the order. If the trade happens to hit the stop-loss, you will know exactly how much you lose, thus preserving your capital.
Impact Spreads And Rate Spread Fluctuations
The exchange rate spread is the difference between the bid and the asking price. Knowing what it is, is of paramount importance which directly affects the profitability of every trade that you make. You’ll need to be know that spread differentials can often fluctuate wildly during the trading day. At times, it can turn a profitable trade and make it a losing one, knocking out your stop-loss setting.
You should also be aware that spreads can often widen during the hours when the markets are closed and the liquidity and the volumes are lower. Also, the spread will often widen in anticipation of important fundamental events such as a news report announcing impending interest rates or the latest employment figures.
Solution – Use A Professional Traders “Real-Time” Forex Trade Signals
Forex Automoney is a solution which has become a popular provider for forex currency pair trading signals for close to 10 years. Their process is actually pretty simple: for each trading day, while you are a member of Forex AutoMoney, you will receive a variety of Forex trading signals on currency pairs in real time. What’s required by you is to manually enter the trades based on their recommendations. This is not an Auto Trade program.
These real-time trade signals are offered in almost all the available currency pairs as well as in several trade frames. So these signals will apply if you’re wanting to day trade, intraday trade or trade on a weekly basis. All you need is a Forex Broker Trading platform to Trade these signals.
Using A Forex Broker With ForexAutomoney
Forex Automoney is not a Forex broker, what they offer are currency pair trade signals, allowing you to trade the Forex market using their signals which you manually place using a Forex brokers trading platform.
However, not all of these Forex brokers are created equal. You’ll want to work with a reliable as well as a dependable broker to make sure they execute your trades correctly. You’ll also want an easy to use trading platform to help you maximize your profits while using Forex AutoMoney.
Recommended Forex Broker
The recommended Forex broker which works well with Forex AutoMoney is the eToro platform. They have an easy user friendly interface and system, excellent support, reliable, and offer small spreads, allowing you to maximizing profits.