Archive for the ‘Forex Trading’ Category:
Why Trading Forex Now Beats The Stock Market
You’ve likely heard the term Forex lately — it is becoming one of the hottest trading trends in the markets today. That’s a trend we believe will continue but today, I wanted to take a few moments to point out why as well as why you should take advantage of trading foreign currencies.
Just a couple of years ago, the foreign exchange markets were dominated by the big brokers and major banks around the world. Today, the ‘little guys’ have gotten in on the action — and the growth in currency trading has increased from $1.9 trillion to nearly $3 trillion in that short space of time (that’s the average daily turnover in the markets – a 50% growth in turnover).
But why should you trade Forex?
First, the Forex markets are highly liquid (in the major pairs) and have a strong tendency to ‘trend’ regardless of what is happening in other markets (stocks, commodities, bonds).
That liquidity also creates constant volatility — and the volatility is where the ability to profit from those trends happens. The greater the volatility, the greater the profit potential.
Second, the stock markets have been beaten down, rallied, fallen, rallied — and there are strong indications that another ‘fall’ is coming. The uncertainty in these markets is keeping them from a specific direction, or trend. In the Forex markets, however, traders don’t have to worry about “bull” or “bear” markets — the currencies are always in a trend (whether up, down or sideways).
Furthermore, the financial upheaval driven by the credit crisis and the massive government responses means investing or trading in the stock markets will never be the same – but these same events helped to create even greater opportunities in the Forex markets.
Forex trading is not without risk – and frankly, most people approach the Forex markets completely wrong. The current economic and financial conditions make this one of the best times to take on Forex trading, but only if done correctly.
35+ year trading veteran and forex educator, Bill Poulos, has recently released a new video on the RIGHT way to approach trading Forex.
See, most traders go into forex trading with the idea of getting rich quick. And they come out pretty poor.
What Bill shows you is how to get into trading forex by managing risk FIRST and taking profits SECOND. It’s completely turning the forex community upside down.
Watch this free video — see if you disagree with him.
How to Manage Your Forex Trades
We were talking with some forex traders about one of the problems affecting them while their trades were ongoing and found a common issue — watching winning trades become losing trades.
As we’ve talked about before, if you aren’t managing your forex trades, from entry point to exit point, you’re going to see this happen to you – and it will likely happen often.
Here’s the root of the problem:
A trade is entered along with an initial stop loss. What most traders do is try to get ALL their profit at once, but they don’t actually have a ‘target’ –
When the trade initially gets profitable, many traders will ’screengaze’ — they get focused on how much they’ve made or are making at that moment. What they don’t do is plan for exiting the trade — they overstay in the trade and frequently watch their profits evaporate when the market turns against them (and then compound that error by staying in EVEN LONGER to ‘get back’ those lose profits). This is a losing proposition in forex trading.
In short, they let GREED cause them to lose sight of the purpose of the trade.
What is the purpose of a trade? To maximize gain and minimize risk – it IS that simple.
Maximizing gain does not mean you exit a trade at the absolute ‘Top’ – it does mean that for the duration the trade is on, you have a set of rules that determine where you’ll exit for profit – and it isn’t where YOU think it is! More on that in a bit…
Minimizing risk means more than just setting that initial stop loss — you MUST manage your stop losses throughout the duration of a trade.
When forex traders enter a trade they must protect their capital first and think profit second. When their position starts trending up, they can take the right action to protect their capital AND their profits.
In fact, most successful forex traders ASSUME they’ll lose on every trade. They perform this psychological trick to make sure their risk strategy is always top of mind! Once a trade turns in their favor (much to their surprise), the first steps they take is get themselves into a break-even trade situation; followed by aggressive stop loss management to maximize their profits on the trade.
They think risk first, profit second.
Watch this video to see how it’s done.
Forex Robots, The Great Debate: To Automate or Not Automate your Forex Trading
One of the dirty little secrets in the forex market over the last few years has been the huge growth in so-called “robot” trading — Robots are nothing more than automated programs that work off of fancy mathematics based on historical market patterns.
But there’s a real problem with Robots: They don’t work.
Oh, you’ll hear all the fancy talk about how so-and-so turned $10,000 into $ 150,476 in just seven days…
…but it isn’t true. It’s hype and it’s based on ‘hypothetical’ historical trading.
Fact: Most forex traders who use forex robots LOSE MONEY.
Truth: Robots lose money because they have disproportionate RISK MANAGEMENT rules built into them.
What the Robots go after are small, quick profits — 3 pips, 7 pips, 9 pips. And over the course of a series of trades, the Robot’s ‘Winning Percentage’ will be very high — 85-95% winners.
BUT the Robots have a fatal flaw: their stop losses are out of line with typical reward to risk ratios, usually on the order of 1:5 or 1:10 (that means you, the trader, are risking $10 to win $1. In gambling, this is known as “sucker betting” and you’re the sucker.).
Here’s what’s really going on with those Robots: The stop losses are set so wide that ONE TRADE can wipe out the profits from those “85%” winners. That’s because the gains you’re making on the winners are miniscule compared to the losses you take with the built-in risk – or lack therein.
Dirty little secret #2: The percentage of winning trades is inversely proportionate to the reward:risk ratio. The higher the percentage of winning trades, the lower your reward ratio; the lower the percentage of winning trades, the higher your reward ratio.
This means if a Robot claims to have 90% winning trades, your reward to risk ratio will be around 1:10.
Truth? Don’t fixate on ‘winning percentages’ — focus on managing the risk in every trade and keeping the reward to risk ratio in YOUR favor.
Watch this video proof of how this concept can radically change your forex trading.
Why are so many forex traders NOT succeeding?
I had a chance to chat with Bill Poulos today and posed that question to him. Do you know what he said?
“most experienced forex traders wait too long to move stops to protect their positions and frequently watch their profits disappear.”
And that wasn’t all — he went on to explain a simple concept, similar to Gambler’s Ruin that permeates the forex trading world.
Basically, once a trader sees profit in a trade begin evaporating they get solely focused on getting back the lost profits. They forget to see the need to protect the profits that they still have in the trade. The result? A reversal continues, the once-profitable trade becomes a losing trade and the trader’s frustration mounts.
I’ve seen this myself and it’s the easiest trap to fall into, because you convince yourself that the Euro just hit that intra-day high and it can get back up there! Except – it doesn’t and it continues to pull back until your 20 or 30 pip gain turns into a 20 or 30 pip loss.
That’s a pretty severe example – but have you had that happen to you?
What do you do?
Bill had an answer for that, too!
He said most traders don’t know what the available profit potential is for any single trading event — that is, they don’t set profit targets which allow them to take what the market gives them and then exit the trade in multiple steps. And, without a strategy that protects capital first and manages profits second, there’s no way the average forex trader can survive in the foreign currency markets.
In order to position yourself correctly, traders MUST have a multi-part strategy — one that teaches them how to identify the BEST available trades, clearly sets out a profit target, helps manage the taking of those profits and from the outset, teaches traders how to protect their precious capital!
He calls this managing risk first, taking profits second – and it’s really groundbreaking thinking.
Click here to watch the first part of his new free video series.
Learn how to trade Forex THIS way…
Our research and surveying has confirmed that too many new and inexperienced forex traders simply do not know how to manage risk in each trade — and all too often, the result is the same: they wipe out their accounts.
Here’s what we find is happening. Forex has grown in popularity so quickly that many traders who are new to forex trading have just waded into the waters, opened an account and have begun putting on trades without any real thought or planning to how to approach trading.
It should be obvious that the problem with this thinking is little to no understanding of how to approach trading foreign currencies and the significant risks to capital that it poses. All to often, new traders try to trade first and learn second.
And the result of that learning is the loss of their account balances. Hey, let’s be honest, trading on a demo account is never the same as trading with real money. You do not apply the same emotional control, the same trading principles or rules, you’ll take greater risks with the demo account and play too safe with the live account (often to your own loss).
Reverse your thinking: learn first, trade second. In fact, across the board, the need to reverse people’s mindsets about forex is what is needed. Learn the right way to trade first, and THEN take that knowledge to the market and trade with it.
As part of that learn first scenario – the NUMBER ONE element to trading forex that new, inexperienced or unsuccessful traders should learn is how to MANAGE RISK FIRST in every single trade.
Today, one of the most well-respected Forex educators, Bill Poulos, released a video that teaches traders EXACTLY how they should be trading forex. And, how traders can put more trades in their favor by erasing risk — it’s very cool thinking and it isn’t what’s being taught by most of the so-called ‘Gurus’ out there.
By learning to manage risk FIRST, traders will find their trading transformed as they are able to approach forex trading with an entirely different mindset, a plan for erasing risk and a solid set of rules by which to trade.
Evil Genius Trade Package!
I consider myself a law abiding, stand-up citizen. You know, I always try to do what’s right. I’m not one that condones cheating or telling secrets.
That’s why when I came across this ‘sin’sational package, I was faced with a Dr. Jekyll and Mr. Hyde moment. I knew it really wasn’t cheating, but as I plowed through the information, it sure did feel like it.
Even as I compose this email, I wonder if I’m doing the right thing. Then, I think again and I know down deep that it would be a crime for me to horde these jaw-dropping tricks of the trade.
So I’m passing this along to you. Click here at your own risk.
Have I scared you? Ok, let me explain what you’ll be exposed to by downloading this ‘evil genius package.’
An Interview with the Evil Genius Himself
- It’s a ‘behind closed doors’ interview with an evil genius trader & system developer extraordinaire.
- I’ve had the pleasure of personally speaking with him before and can honestly say that with over 20 years of trading under his belt, Mark knows his stuff. (In our inner trading guru circle, Mark is known as that quiet guy who has alot going on ‘up there.’ You know, he’s not all about the limelight or craving his 15 minutes of fame. He’s much more calculated than that. I’ve seen people try to crack his shell, only to be met with a smile and a nod (and your butt whipped when it comes to trading!)).
- This interview exposes not only Mark’s clear strengths, but his embarrassing ‘slip-ups’ when it comes to his trade career. It’s *quite* the revealing interview…
Click here to listen to it now.
The Classified Cheat Sheet
Basically once this is implemented it will become the ‘make it or break it’ tool in your trader’s tool box. (You won’t even believe how fast & easy this can be!)
- Find out THE number 1 step-by-step plan to get a beginner trader up and running in no time flat.
- Discover what the heck this ‘trailing’ business is all about? And most importantly, how can it make money?
- An INTRICATE look at the nasdaq emini 144 tick chart.
- Plus 8 other ‘CliffNotes’ trade teachings that you can quickly skim and nearly pick-up through osmosis.
I know I’ve struggled with giving this out, but I must say I’m looking forward to watching you transform into the evil trading genius you were meant to be.
Click here to Download it now.
Happy Trading.
Forex Income Engine 2.0 - Free Preview
Bill just re-opened access to a special members website “preview” that showcases 4 Forex Income Engine 2.0 trade videos that he recorded, and he gave me permission to share them with you.
Check it out:
- Each one uses a different timeframe (5 minute, 15 minute, 30 minute, and one-hour bars)…
- Some of the trades look as little as 10 minutes from entry to exit…
- Now, they can’t all be good trades, of course; but 88.24% of them turned a profit…
- Total profit was 793 pips, or $7,720 had you traded 2 standard lots. Not bad for a few minutes of “work”.
I think you’ll agree with me if I say that’s awesome…
To watch them, just login to his Forex Income Engine 2.0 member’s website preview. This is similar to the site you get access to when you become a student.
Your username is: readyto
Your password is: enroll
(make sure you type the username & password all in lowercase)
To see the live trade videos, go to the “Pip Vault” section after you login to the site.
Be sure to check out the entire website, because Bill also put up some previews of all the CD-ROM modules so you can get a taste of what the course is like.
I hope you’re as excited as I am about being able to get access to the entire Forex Income Engine course next week. And as you watch the live trade videos, I think you’ll agree that this method makes it possible for you to truly create a new income stream on YOUR SCHEDULE, trading as little or as long as you want.
More soon!
Good Trading.
Free Forex Income Engine 2.0
Bill’s going to give away the very first copy of the Forex Income Engine 2.0 to one lucky trader next week.
Click here for all the details on how to join the giveaway.
…and follow the link in the lower-right corner of the page after you watch the video.
It’s not every day we get to sink our teeth into this much complimentary, juicy Forex content as well as participate in a big giveaway “on the house”… so I hope you are enjoying it as much as I am…
New Forex day trading discovery UPDATE (video 1)
Last Fall, during a late-night Forex trading research session, one of the industry’s most respected trading educators made a discovery around day trading Forex that he shared with a limited group of traders.
Now, 6 months later… the same trading educator recently re-emerged from a marathon follow-up research session where he analyzed the killer results his initial group of traders got and discovered 3 different ways to make them even BETTER.
From what I’ve seen, NO ONE is trading Forex like this (yet)…
not to mention this completely turns traditional “day trading” on its ear…
He recorded a new training video this past weekend that “pulls back the covers” on this updated discovery & reveals how you can shield your portfolio from risk every single time you trade especially if you’re inexperienced & have little time.
THE BIG SURPRISE?
During his research, he confirmed what I (and others) suspected for a long time:
* The collapsing global stock markets and economies are creating pressures that, in turn, are creating more profit potential than we’ve ever seen before in the Forex markets.
That may come as a big surprise, especially if you’re new to trading… but he explains in his training video why this is happening, and how you can get in on it.
You’ll also discover:
- How you can literally TRIPLE your profit potential when you use a little-known trick that has to do with the predominant trend…
- 2 “retracement tricks” most traders flat-out MISS, which, if you know how to spot them, can turn an otherwise losing trade into a profit powerhouse…
- The huge “edge” you get over other traders when you automatically identify the predominant trend at any point in time… and then “throw yourself in front of it”…
- The #1 key to trading Forex you MUST do EVERY SINGLE TIME before you place a trade before even thinking about profit. When you do this, you automatically “up the odds” that a profit will unfold…
- …and a TON more.
If you’re interested in Forex, or have been a little “spooked” by what’s been going on in the markets, then this may be the most important trading video you’ll ever see this year.
Why? Because after you watch it, you’ll be SCRAMBLING to start trading Forex this way…
It finally brings flexibility and customization to Forex day trading so that ANYONE can have an “edge”, whether you only have 20 minutes to trade, or if you have all day. Your choice.
It’s awesome (and surprisingly simple)…
Triad Trading Formula is 77% Sold Out After 1 Day!
All I can say is WOW!!
In just the few first days traders around the world have already BLOWN through over 700 copies of Triad! Absolutely amazing!
I am very happy to see how many serious traders out there are sick and tired of:
- NOT being in control of their trading
- NOT trading with absolute confidence
- NOT making the kind of mon ey they should be as Forex traders
By now you’ve probably picked up your copy of the the Triad Trading Formula if you are serious about taking your forex trading to the next level…to The Triad level.
So if you have get ready! In just 10-14 days from now your copy of Triad will be arriving in the mail, and remember the shipping is on them!
If you haven’t yet snatched up your copy, please remember, they can only release 997 copies because of support issues they might face if they went over that number (top notch support is essential for Jason.)
So when they’re gone…they’re gone.
I know Jason looks forward to taking his next trades with YOU on the Triad team!
