Tutorial Forex

If you are familiar with Forex, I bet this is one of those questions that got your brain juices running.

My early days of trading were spent searching the net for the best Expert Advisor out there. I got caught up in this never ending search for the “holy-grail” trading system and believe me I wasted a lot of time and money in the process. I wish I could go back in time and change some of the decisions I made but you learn from your mistakes and as long as you do not repeat those same mistakes again you are on the right track.

Why are we so obsessed about Automated Expert Advisors?

Below are some of the main reasons why traders are attracted to Automated Expert Advisors:

- System is on autopilot

- No sitting in front of the PC the whole day long looking for the right set-up

- More time to relax

- Less stress

- Easy to use

- No thinking required

- Help documents available

As a trader, those are the benefits you will be exposed to having an Expert Advisor trading on auto-pilot. Those are great features indeed but not so great when you take into account the negative side of it. The fact is that more that often Expert Advisors do not deliver on their original promise leaving your trading capital in ruin.

There are thousands of automated Forex providers on the net nowadays. This number is increasing day by day and funnily enough they all seem to have insane winning rate some even with a 100% success rate (hmmm). The common sales pitches used by those providers are:

- Make money on autopilot – No experience required

- No losing Forex Robot that can turn $500 into $5000 in less than a month

- Make $1000 on autopilot every day

- Robot with 100% success rate turns $100 to $1000 in a month

If half of the above were true I would be sitting on a nice beach as we speak enjoying the sun and sipping on a cocktail, however, here I am sharing with you my experiences about automated expert advisors. Systems that promise to make you thousands overnight or 500%+ return per month are simply B.S. You are more likely to lose than actually make money.

If you have stumbled across this article before making any purchase consider yourself as being lucky. I am among the few people out there that will tell you the truth about Expert Advisors. Most expert advisors are just a waste of money. They don’t and will never work. If they did, all the major Banks and Hedge Funds would sack their entire FX department and use those robots instead.

The fact is that banks and the big institutions rely heavily on their currency traders to take advantage of the Forex market. They understand that the currency market is way too unpredictable and volatile to allow a robot to be in control. Market conditions change all the time and the only way to adapt to those changes is to have a human mind in control. A robot for instance cannot bend the rules and thus does not cope well if conditions of market changes violently.

Forex robots are many a time designed my mathematicians or engineers who believe they cracked the code to Forex trading. Well no offence to them but if they have already cracked the code, why am I still not profitable. You see the nature of the Forex market is such that changes in market conditions cannot be predicted. This is due to news, catastrophes, political changes etc Do you believe those robots can take all those changes into account?

The following are some of the major points you need to clear out if you are thinking of purchasing a Forex robot:

- The back ground of the developer (make sure the developer is a successful Forex trader and not another engineer or mathematician claiming they have cracked the Forex code)

- Has the system been tested on a live account? If yes what are the monthly returns.

- How long has the system been in operation?(2+ years)

Potential monthly return

- Maximum draw-down.

If all the above questions check out okay then you got yourself a winner.

I have spent a large sum of money over the years trying all sorts of Forex robots. The result was that I lost as much hair as I lost money! Quite frankly, I was quite disgusted with all those Experts advisors until the day I came across a guy named Ashkan Bolour.

I knew nothing about Ashkan Bolour at this point. I researched the net for more information and learnt that he was a highly successful money manager who was well respected in the Forex world. He had featured in many trading books and had become quite an authority in the foreign exchange arena. I decided to try his product after seeing the nice monthly returns he had on his live accounts.

Well the results were quite amazing. It was not a system making 500% or even 100% return each month but it was making some very consistent profits with small draw-downs. If ever you are looking for a proven system backed by consistent profit made on live accounts, Ashkan Bolour’s system, the FXprofit Mountain is a must.

Many forex exchange traders should know what the trend is. The rhyming saying The Trend Is Your Friend isnt just a simple rhyme, but an obvious tip for a trader if they know how to use it. The trend in a currency pair is usually a good place to start. It can give you an indication on the general direction of the market. Although not in all cases it is good to stick to the trend, for the most part it is a good idea of where the market is turning.

In some cases in forex exchange trading, it can be a little difficult figuring out when a good time to follow the trend is and when to take your own intuition on the trade. There are many different world events that can affect your currency values and put a change of direction into the market. A great way to keep up with this is to read current local and global news every day. Being aware of events going on around the world can have a positive influence on your trading intuition.

When working in forex exchange, it is an important aspect to constantly be absorbing information about the market and effecting market news. Not just a short time frame before your making your trades. Preparing for hours, or even days of information and market conditions is usually the best tactic. If you have gone behind a day or two on up to date market conditions and world wide events, chances are your trading skills are also a day or two behind. Most new traders don’t realize this and wonder why they are not a successful trader.

Being a forex exchange trader, constantly saturating yourself with information on the market, you are going to find that trades come easy to you. The reason for this is that your mind is constantly absorbing and connecting the information you read about without even realizing it. You may find that your trading will become a second nature. The successful day traders do this everyday and make a career out of it. The reason to their success is their constant intake of information.

Sticking to the forex exchange trend is a good starting point, but you need to take your skills beyond that to get the real results you need. Dont be the average trader, and a failing statistic. Become consumed by your trading mindset, and you will be able to become a master. Second guessing yourself can also be a bad move, know your nature, your either good at what you do or average. Which do you want to be?

If you want to reduce the loss you receive from your forex trading and earn more regularly, you need forex trading strategies that work well. If you are competent to achieve powerful policies, it will enable you to gain always anytime you place your deals and minimize losses. You can find range of policies and guidelines all over the internet and your ability to get substantial and profitable ones is not simple. I will write about some forex policies which you can choose from to enhance on your forex trading techniques.

You should also remember that it is likely for you to formulate your own strategies. All you need is to learn mechanical and news analysis and from there you can discover what works. Due to the fact that this opportunity requires sufficient amount of time and steady hard work, most of people do not require these, they are just in search of something that works and can be capable to make money quickly. If this is what you wish you can get it, just keep on reading.

The strategies I am about to disclose to you deliver the same amount of benefits. All it does is to help you to increase your profit from any business you place. It will keep your trades secured and help to shed them from the biggest enemy of forex traders which is loss.

The first policy is known as stop loss order. If you are able to put a restriction to your placement strength, it will assist to guide your trades from heavy losses. When you include stop loss order to your business, it will be able to stop your trade every time your trade attains a certain limit. With this your account will rarely run out of money, in other words this means that you will still have extra money left to deal some other time even if your financial credit had the ability to use all the money in it.

The next policy is termed as automatic entry order. It is used by retailers to place a trade at the time the price is accurate for them to purchase or sell. You will merely make use of it when the price you are expecting comes in.

The last type of policy is known as leverage. With this strategy, you will be proficient to utilize additional money more than the ones you deposited. You will be able to dig out the best of the basics of trading forex without any requirement to execute extra deposits. In order for you to buy higher prices currency, you have to boost the quantity of your initial deposit multiple times.