Author: Monica Hendrix
I read this story over 25 years ago and it still inspires me - How did ordinary people (with no trading experience), learn to trade in just 14 days and make hundreds of millions of dollars?

Curtis Faith was one of these traders in Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders he outlines how and it's simply a great, educational and inspiring read.

If you have never heard of the turtle experiment here is some background:

Legendary trader Richard Dennis was convinced that anyone could learn to trade - if they had the right mindset and the right method.

He set out to prove it.

In just 14 days, he taught a group of people of all ages, both sexes and of varying educational abilities to trade -the end result?

They made him over $100 million in just 4 years and many went onto become trading legends.

The experiment proved conclusively

Anyone can learn to trade but if course 95% of traders don't win, not because they can't but because they underestimate the discipline that is needed to win.

Anyone can learn a trading method but the hard part is applying it with discipline when you hit a losing streak. If you can't continue trading with discipline, then you have no method.

Way Of The Turtle

Curtis Faith in Way of The Turtle explains just about everything you need to know about the experiment from an insiders perspective (he was one of the most successful turtles), why trading appears so easy and why success is so hard to achieve.

Faith tells us, there is no secret to trading success its all down to a simple method executed with discipline and this has always been the case.

All systems lose and when they do you must stay on track and stay with it.

Successful traders analyze markets to find an edge, then remain disciplined enough to pursue that edge and keep their emotions in check.

He knows what he is talking about to, as he made $30 million as a trader.

Curtis Faith writes concisely and clearly and describes what an effective trading system should contain, what its core component parts are and he of course makes reference to the Turtle trading system.

If you are looking for a short cut to trading success or looking to discover some secrets, you will be disappointed - but if you want sound advice, from a trader who has walked the walk and done it - Way of the Turtle is an inspirational book.

Curtis Faith and the Turtles made millions after just 14 days training - could you?

Maybe not, life simply isn't like that - but the opportunity is there and maybe just maybe...

Article Source: http://www.articlesbase.com/currency-trading-articles/way-of-the-turtle-how-ordinary-people-became-millionaire-traders-357857.html

Author: Monica Hendrix
The above title refers to one of the classic investment books of all time -The Disciplined Trader: Developing Winning Attitudes by Mark Douglas. If you have not heard of this book, then you should get it - it's simply one book every trader should own.

"Emotions kill successful trading."

Think about this fact:

Anyone can learn to trade - it's a totally learned skill yet. 95% of traders lose their money. This ratio is
the same today as it was 100 years ago.

You would have thought the win ratio would have improved, with the quicker delivery of news in both quantity and quality, the power of personal computers and advances in software - but it hasn't.

Why?

Because traders will always be emotional creatures and their emotions destroy their trading plan and their equity.

You perhaps really have to read this book, to understand how important and how difficult it is to become a disciplined trader. The book rammed it home to me 25 years ago, after wiping myself out I read it and it never did that again!

This book was one of a few that really helped me understand myself and more importantly, how to keep my emotions in check.

Why Trading Success is So Elusive?

The above is the theme that runs through the book. 95% of traders lose, not because they can't win - but because they cannot control their emotions.

In The Disciplined Trader, Mark Douglas, shows why most traders are simply unprepared for the different-often alien-strategies which they need to apply for success in the trading environment.

The skills needed to survive and profit are actually ones that are hard for most individuals to do. Douglas demonstrates why the beliefs learned to function effectively in society are psychological barriers in trading.

Why Trading is so Hard an Example

Just one example - In normal everyday life, we all want to fit in and be accepted.
We try and fit in with the crowd, of course in the markets this is fatal, as the crowd lose but you try and step away from the herd - it's hard.

The above and many other barriers are discussed by Douglas and the moral and use of the book is:

Make Your Trading Less Stressful and Profitable

To trade successfully you need a method but if you cannot apply your method with discipline - you have no method at all and will lose The Disciplined Trader helps you join the elite 5% who have learned to control themselves by developing a systematic, step-by-step approach for winning by applying their methods with total discipline.

My only criticism of the book is - it's a bit long but that's minor. If you think you can't turn your trading into a fun profitable activity rather than a stressful losing one get this book. The disciplined trader should be any traders library.

Article Source: http://www.articlesbase.com/currency-trading-articles/the-disciplined-trader-developing-winning-attitudes-for-huge-gains-357856.html

Author: Mike Wright
The sell off on Friday was caused not by all time highs, but by the worst US jobs data for five years. Initially shares attempted a recovery as rumours of emergency rate cuts did the rounds. According to analysts, the jobs data solidifies the prospect of 0.75 base point cut at the next FOMC meeting. However, this wasn't enough to lift the gloom and the weak rally soon turned into a rout.

Tremors from the mortgage sector continued to worry traders, as US mortgage foreclosures reached all time highs, and mortgage hedge fund Carlyle Group failed to meet a margin call. Not only is this global credit crunch far from over, there are signs that the crisis is directly impacting the wider economy. The Bank Of England's weapon of choice in such circumstances is to cut interest rates, but their hands are currently tied because of soaring commodity prices. To make matters worse, the impact of a rate cut may have little effect on consumers, as the cost of lending remains stubbornly high.

Following the black Monday crash in 1987, markets effectively traded in a range for 8 months. Even though shares recovered, it took two years for the Dow Jones to regain the previous highs. Given the recent slew of poor economic data, the bulls could think themselves lucky if a range trading environment is the picture for the coming months. The benchmark S&P 500 index is now within 23 points of its January lows, if these hold the bulls will be breathing a huge sigh of relief.

Next week is thankfully lighter on the economic data front, but there is still enough to keep traders busy. Notable data to be released next are UK Industrial production and PPI figures on Monday, US trade balance on Tuesday, US core retail sales on Thursday, the Swiss interest rate decision also on Thursday, and Finally Core CPI and Consumer sentiment on Friday.

With little headline data from Europe next week and a 0.75 base point cut already starting to be priced into the Dollar, further upside on the EUR/ USD could be limited next week. A No Touch trade predicting that the EUR/ USD won't touch 1.5750 over the next 7 days could return 10% with BetOnMarkets.

Article Source: http://www.articlesbase.com/currency-trading-articles/oil-hits-a-new-record-357193.html

Author: Louis Vozza
You have traded currencies before and like ninety percent of people who have traded forex you lost money. Quickly. Or you had profits and rode them into losses. For you Forex became a four letter word.

Is there a way to make money trading currencies? How do the big banks and hedge funds do it? While there are no guarantees, there are a number of things you can do that will increase your chances of becoming a winning Forex trader.

It is not an easy path to success. Some stories of overnight riches are true but they come with years of preparation and a great deal of tolerance for risk taking.

First you need to decide if you are going to be a fundamental trader, a technical trader or a combination of both. If you choose the former you must pay close attention to the markets. You cannot wake up in the morning,place an order to buy or sell and expect to make money. You must do your research. You should have some working knowledge of the fundamentals of major countries. That is you need to know both long and short levels of interest rates, GDP and growth potential, inflation and of course a the employment situation of a country.

If the charts are what you fancy you should take a course and read a couple of books on technical analysis.Then decide which area is right for you. Will you be a long term breakout trader or will you follow pivot points. Will Fibonacci be your thing or will you stick to RSIs.

Once you have that down you must examine your financials. How much of your net worth are are you willing to risk.What is the maximum amount of money you can lose and not impair your lifestyle. It is probably a good idea to open a demo account with an online broker. That way you can practice entering the various types of orders. You can see in real time how much profit or loss you would have and you can adjust your style accordingly. You need to become proficient in stop orders, limit and market orders so when the real thing comes you will not be nervous or anxious. You can think about one thing only. Trading.

Next work on controlling your emotions. This is a huge factor in Forex trading. It is much different trading real money than some demo account. I have seen it happen too many times where people lose their cool and turn profits into losses. Or much worse,losses into bigger losses. You are not going to make money on every trade. That is just the way it is. But if you keep your emotions in check and are disciplined in setting your stop levels, and sticking to them, you give yourself a much better chance of success.

Finally, risk control is the key to your trading career. Making the right decisions on how much to risk on a currency or how large of a position you should carry is of paramount importance in Forex. This way you can stay in the game so that when the big move comes you can catch it. And then Forex is no longer a four letter word. It will be a five letter word. Profit.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-is-not-a-four-letter-word-356480.html

Author: Gabriel Peters
Every forex expert is talking about Forex Killer for online forex trading. Lets see what this is all about.

The forex industry is the largest currency exchange trading industry on the earth today, with a daily turnover of 3 trillion dollars! Till late 90's only banks and large firms were allowed to trade in forex industry. You could also trade if you were a millionaire but now days have changed. Now even small investors are allowed to do forex trading through the internet. But this market is not only full of riches and exciting but it is also very risky.

To utilize the power of trading on internet and earn maximum by minimizing the risk involved, forex trading software was invented.

When it comes to forex trading, Forex Killer is very essential now but it is more essential to see that you choose the best software available online. There are so many companies available online competing to sell their software that choosing the right Forex Killer is quite a difficult task.

Buying and using a software requires you to go through few essential considerations of which the most important is security. Your Forex Killer should include a 128 bit SSL encryption which will prevent hackers from accessing any of your personal details and information such as credit card details, account balance, transaction history, etc.

Another important factor when it comes to software providing company is to check whether the software is reliable or not and that the software should run 24 hours a day without any problem. The company should provide technical support at any time needed. Security of highest level should be a must sought feature.

Automated online forex trading using a software is really a complicated process. Therefore, a manual explaining in detail how to use the software should be provided. A mentor should be provided by the company so that you not only understand how to use and fix problems using the software, should any arise, but also get useful instructions on online forex trading.

Once you ensure all of these features in the Forex Killer, no one can stop you from being successful in forex trading industry.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-software-for-online-forex-trading-356417.html

Author: Ladi Dairo
Foreign Exchange Market (FOREX) is the arena where a nation’s currency is exchanged for that of another at a mutually agreed rate. All currencies are traded in pairs, and each is assigned with an abbreviation. (E.g: USD = United States Dollar, GBP = Great British Pound). Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global economic situations. Profits and losses are dependent on the fluctuations in the exchange rate between the two currencies.

In today’s volatile money market environment the traditional forms of investing are rightfully inviting more scrutiny and caution. The New Year has brought with it an impending sense of tough times to come. The FTSE 100 dropped below 6000 points for the first time in almost two years, a performance that was mirrored by Dow Jones, Hang Seng and other major indices around the world. Now more than ever investors are focusing on alternative avenues to channel those hard earned funds.

FOREX is a serious game. Play it with the pros.

Forex trading involves substantial risk of loss, and may not be suitable for everyone.

Advantages of Trading Forex

It may be difficult to imagine that there is market that is not only growing, but is also renowned for its flexibility and liquidity. Forex is flexible in the sense that it has no central trading location or exchange with traders, sellers and buyers in the traditional sense; most of the trading is conducted via a global ETS (electronic trading system) that operate 24hrs a day. Concurrently, liquidity is a powerful attraction to any investor as it suggests the freedom to enter or exit the market at anytime. These advantages subsequently enable investors to respond to any new adverse or positive information immediately. A luxury not afforded by the more traditional forms of risk.

Also, in forex trading, a small margin deposit can control a much larger total forex contract value. This obviously gives investors the ability to make extraordinary profits with relatively minimal risk. Unlike with other forms of risk where numerous factors affect the unit prices, (a good example of course is the recent sub-prime crisis in the US) the chief aim and focus of any good forex investor is to manage as best as possible the varying risks associated with fluctuations in worldwide currencies. With the current trepidation that characterises traditional forms of investments, it is no surprise that there has been a big growth in regulated firms that offer forex investment contracts to cunning individual investors.

It must be said however that a good understanding of the relationship between freely transferable currencies is required in order to dabble into this exciting arena. The concept really is quite simple. Currency exchange rates fluctuate, investors who trade in the forex market hope to profit from those fluctuations. Investors should always be aware though that as with any other form of investment, investors who consult with a financial adviser limit their exposure to excessive fluctuations. A general rule of all investment tools that carry a degree of risk is that investors should input funds that they can generally afford to lose without affecting their finances adversely. Risk capital should be seen as disposable income for any discerning investor.

Here’s to a profitable future for you all

Article Source: http://www.articlesbase.com/currency-trading-articles/money-market-advantages-amidst-volatility-354589.html

Author: Maco
Forex or FX, no matter how you may call it, it all refers to foreign exchange. Forex basically deals with buying and selling of currencies, or in other words currency trading that is made available at the ongoing price in market. It involves investing money in the foreign currencies and earning profit by selling them at the higher price. That is to say, that you are extending the one you are holding, only to buy the other one for a lower price.

Forex trading market can also be termed as the largest financial market of the world and thereby also makes available the most lucrative options as well. Also, with technological advancements, forex trading signals can be accessed online. It is the introduction of these forex signals that have increased its popularity considerably, as it is readily accessible at the comfort of the home of various investors. There are various companies that provide forex trading signals over the Internet. For this, a person first has to sign himself up with the website of that company and submit a yearly or monthly fee as these services are made available on paid basis only. Most websites that offer a trading platform makes available the forex signal trading system. This involves sending of newsletters about the daily market trends by a professional broker, trader or a market analyst to its members. These are very helpful as the basic purpose of every trader is to provide profitable deals in forex by utilizing all the information that is made available to him. There are different prices that are charged for these forex signals services and the services are also made available accordingly. While some of them will send the email, others will keep you updated by its forex alerts via cell phones. Live charts are another feature that is made available in some higher subscription services. Generally the minimum amount of subscription is a minimum of $100.

Though forex is a highly lucrative market, still it has equal risk involved, so it is important to have forex strategy system to ensure that you are not losing more than earning. Optimization of risk in accordance to your reward is important to make sure that you into successful trading. Every forex trading strategy must follow a disciplined approach along with taking risks. That is to say, limiting the risk, while making the best and the most constructive market moves possible is essential to become a successful trader.

Another technical analysis or forex trading strategy is the one that involves deriving “resistance” and “support” levels. The base for this is that forex market will generally trade below its level of resistance and also above its levels of support. In case the resistance or support level is wrecked, the market is also anticipated to follow the same direction at that time. These levels can be decided by assessing the resistance in previous years, unbroken support in the market and by analyzing its chart. Hence, to become a successful trader it is better to follow forex strategy system.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-and-its-strategies-353808.html

Author: Monica Hendrix
Here we are going to look at forex trading basics and 6 character traits that if you have them, you are going to lose. The vast majority of the 95% of traders who get wiped out have them, so to enjoy currency trading success you must avoid them...

1. Wont accept responsibility

This is a common trait.

People continually try and shift responsibility for their success to others - but only you can give yourself success. You can do it - BUT success rests on your ability to learn the right forex education and execute your forex trading strategy with discipline.

2. Want To Have Fun

It always amuses me when I see traders who say they like to have fun, that's why they trade.

Trading is not fun in itself, its satisfying, when your making money. I don't trade for fun, I trade to make money. Sure, if I win I have fun with the money but that's not the same as having fun trading.

If you trade for fun above all else - chances are you like the action, so take low odds trades and lose.

3. The Action Man

This really can be combined with point 2.

This trader cannot stay out the market and lacks patience.

He is trading in the hope that the more he trades, the more he will make but markets don't reward you for effort, they reward you for being right with your trading signal and that's it.

4. Believe Experts

This group of traders like to trust expert opinion and believe what CNBC news tells them or some bank trader.

This always reminds me of will Rogers's famous saying:

"I only believe what I read in the papers"

He was joking of course but its surprising how many people believe anything their told by an expert.

This also goes for the vast group of traders who buy a Forex trading system from a vendor and think with no effort, they will make money. Sadly, forex trading is not that easy.

5. Thinking Your Clever

There are many traders that think their clever and that this will bring them success. It doesn't - they tend to over complicate their forex trading strategy and lose. Simple strategies work best and this is a known fact so keep it simple.

Another problem with people who think their clever is they come with egos and a big ego means they have a problem accepting they are wrong and in forex trading, you are going to be wrong - refuse to set stop losses or run losses to far and you will be wiped out.

6. Lack of Discipline

Comes from a combination of all the above. This is the single biggest cause of traders losing.

To acquire discipline you must learn currency trading the right way and get the right education, so you understand fully and have confidence in what you are doing.

If you don't understand and have confidence in what you are doing, you will not stay disciplined through inevitable periods of losses.

To win at currency trading, you must stay disciplined through periods of drawdown, to enjoy long term trading success.

ANYONE Can Learn Forex Trading

It's a fact that everything about successful currency trading can be learned by those people with a desire to win and the willingness to learn the right information.

Once you have the right method, you then need to have the discipline to apply it. If you cannot apply your method with discipline you have no method.

Forex trading basics means - Not only getting the right forex education but also the mindset to succeed as well.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-basics-10-losing-character-traits-that-will-wipe-out-your-equity-353395.html

Author: Monica Hendrix
Do you want a currency trading system that's so simple, you will understand how and why it works in ten minutes, that has been used by some of the top traders of all time, is free and makes money? Then read on.

The currency trading system we are going to look at here is simplicity itself and you will easily understand why it works.

Many traders think it can't work because it's so simple - but when you consider trading legends such as Richard Dennis have used it in their forex trading strategies, then you will understand its well worth considering!

So what's the system?

It's Richard Donchian's 4 Week Rule

This system was originally devised in the late seventies, to trade commodities, by the father of modern trend following - Richard Donchian.

He noticed the predominance of the 4 week cycle in markets and based his system upon it. Here it is - just one rule:

Close out short positions and take long position when a price exceeds the highs of the previous 4 calendar weeks. Close out long positions and take short position when a price falls below the lows of the previous 4 calendar weeks.

That's it!

You can't get simpler than that and it works, check a long term time period on your forex charts and you will see it does. The downside of the system is that it will get chopped about and incur loses, when the markets consolidate. Here you can add a filter:

To enter positions on the 4 week rule and exit the position on a shorter time frame.

Periods that are frequently used are 1 or 2 weeks and then re enter on the 4 week rule.

Not only is this system simple, its totally mechanical and you have no subjective judgment to make, you only need to execute the trading signal based upon a clear rule and the filter and that's clear cut.

Now it's simple to learn, easy to use and it makes money - but most traders won't even consider using it!

Why?

1. Because it's too simple for most traders

They feel more comfortable using trendy indicators or systems and this one is not trendy but on the other hand, it will beat 99% of the forex trading systems sold by vendors.

2. It needs discipline to follow it.

It needs more discipline than many systems, because it is not fussy about pinpoint market timing and this is hard for traders to accept - even though it makes money.

3. It doesn't trade often

Most traders don't trade to make money, they trade for the thrill of trading and this system definitely won't suit this group!

Simple currency trading systems work best and always have, as their more robust in the face of brutal ever changing market conditions.

This trading system beats numerous complicated ones, as they have too many elements which break.

The above system works longer term and always has - its based on simple methodology but that doesn't mean it's not profitable, it is.

If you take the time to look at it you will see the merits of incorporating it in your forex trading strategy and you're in good company, with the number of top traders who use it or have used it over the years.

This currency trading system should be part of any trader's essential forex education so look at the profit potential of the 4 Rule.

Article Source: http://www.articlesbase.com/currency-trading-articles/currency-trading-systems-a-simple-free-system-that-is-proven-to-work-353394.html

Author: Monica Hendrix
The key to huge gains when trading forex with leverage is to make sure you have a specific forex money management system in place. Very few traders pay much attention to money management but it's vital for success and it's much more than simply placing a stop.

Here are some simple tips on money management that will allow you to defend what you have and stay in the game to hit and hold the big profitable trades.

Money Management on Your Overall Account

You should always see the risk you take on a trade in relation to your overall account.

If you have some profit its easier to lose that psychologically than your core equity. If you doing well then increase your bet size - f your not doing so well you decrease it.

It's a fact that poker players make great traders and the reason for this is they know how and when good times to vary their betting style are.

You should not bet the same size all the time forex trading is all about taking calculated risks at the right time and if you have the trading signal and the trade looks right bet as much as you can afford.

If you make a lot of money quickly, don't be afraid to put some money in the bank and liquidate your position or take partial profits.

Monitor your overall equity all the time.

Stop losses

Each and every trade should have a stop loss which is your get out point, should the position go against you. If you assume you are wrong from the start things can only get better!

Understand Random Volatility

When you place a stop you must NOT Place your stop in areas of random volatility.

This is a common mistake traders place their stops close to their entry point thinking it gives them less risk. On paper it does, in reality it means random volatility stops them out - this is why forex day traders always lose. If you want to understand random volatility you need to learn about standard deviation of price. We don't have time to discuss it fully in this article but we have covered it fully in other articles so look them up.

Place your stop where if it's taken out a lot of other traders will be to i.e its valid support or resistance.

When trailing stops don't be to keen to get them to close once your past breakeven if you are following long term trends keep the stop behind random volatility.

The enemy of all forex traders is volatility - spotting the trend direction most of the time is easy getting in at the best risk reward is difficult. You need to strike a balance your stop must not be to close but close enough!

Trade Breakouts

A good way to trade is to trade breakouts and stop protection is self explanatory behind the breakout point and if you only trade valid breakouts you will have the odds on your side.

Money management is far harder in my view than picking trend direction. I very often get that right, only to see my position stopped out and then reverse and go back the way I thought!

Defend Core Equity at ALL Costs

My own view on money management is to defend my core equity and see everything in relation to how it moves. I risk more when I am doing well and am never afraid to bank money in to keep my equity curve smooth. On placing stops I always make sure there outside of random volatility and in logical places where if I am stopped out a lot of other people will be to.

Forex money management is the key to longer term gains and a trader once said to me (and he's right) If you concentrate on defending what you have above all else the profits will take care of themselves.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-money-management-the-key-to-huge-gains-353391.html

Author: Kelly Price
Most Forex trading systems and I would say about 99% lose money and one way to spot the good trading systems from the losing majority is - to look for curve fitting. If you don't know what it is then read on, as it's an essential part of your forex education.

Curve fitting involves bending a trading systems rules in hindsight, to fit the data.

In reality what happens is a trader cannot get his forex trading system to work on the parameters or rules he has set - so he keeps adding parameters or adjusting the rules until he has a profit.

However the same market price sequence he tested it on, is never likely to repeat itself EXACLTY again.

The fact the system has been bent to fit the data, means that it is likely to lose in real time forex trading.

A trader I know compared this to shooting blind folded at a barn door and then afterwards, drawing a chalk circle around each one, to make it look like a perfect bulls-eye!

There are those who curve fit on purpose and know it doesn't work and this involves the vast group of vendors selling trading systems. They don't care if it works or not they just want to sell systems! They simply put this disclaimer on to cover themselves:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

They know the system won't make money they just want to sell systems with hyped advertising copy and the novice trader who doesn't really understand he is being duped falls for it and loses.

The other group are:

The traders who are trying to devise a forex trading system for themselves and they do it unintentionally. They curve fit without realizing what they are doing and why it will fail

How To Spot and Avoid Curve Fitted Systems

So how do you spot a curve fitted system and what are some rules to stop you doing it in your own?

Here are some guidelines:

Curve fitted systems tend to have lots of rules and parameters, have different rules for different markets and different trading conditions.

This means the system is obviously bent to fit the data.

A non curve fitted forex trading system, will use only a few rules or parameters which are the same for all markets and conditions.

The simpler the system, the less likely it is to be curve fitted.

This goes with the fact that - simple systems work best, are the most profitable and this has always been true.

Today the power of computer software and their number crunching ability means that it is easier than ever to test and unfortunately curve fit systems.

If you are buying a forex trading system from a vendor or your making your own, avoid curve fitting or lose your money quickly.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-systems-curve-fitting-a-danger-to-your-fx-profits-spot-it-or-lose-353330.html

Author: Kelly Price
If you want to learn the right forex education then you need to study the story enclosed in this article. We are going to look at a group of traders who had no experience but with just 14 days training went on to make over $100 million in 4 years.

The story takes us back 25 years as legendary trader Richard Dennis set out to prove a point:

The Experiment

That anyone regardless of their educational background, age, sex or profession could learn to trade so he gathered together a diverse group he nicknamed "the turtles"

The diverse group consisted of an female auditor, an actor, a couple of professional card players and a security guard - so a diverse group.

The only thing they had in common was they had never traded before.

Dennis set them to work and in 14 days had them trained and they were given accounts to trade and the result was hundreds of millions in profit.

Dennis had proved his point - Anyone can become a trader if taught the right knowledge.

The Paradox

You maybe thinking - if anyone can learn to trade then why do 95% of traders lose their money?

You can learn the answer to this from the turtle experiment.

Dennis knew that teaching a method is easy but the problem is the trader must have the right mindset to apply the method - If you don't have the discipline to apply your method you don't have one.

He taught them a simple method - but also everything about it, terms of the logic behind it and why it works. This meant they could have confidence in what they were doing and the discipline to apply it.

Discipline the Key to Forex Success

A forex trading system is easy to learn, executing trading signals through is strong of losses is hard even for experienced traders. If you think it's easy try it and see.

The turtle experiment shows that trading success is open to all - regardless of educational background, age or sex. We all have a chance to succeed, what we make of that chance depends on our forex education and mindset.

More Info

You can read more about the experiment in Jack Schwagers excellent book Market Wizards and from one of the most successful "turtles" Curtis Faith in "The way of the turtle" where he outlines everything about the experiment and its application including the rules and the challenges the turtles faced.
Finally

The story of the turtles inspired me to trade over 20 years ago and I hope it inspires you as well.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-education-how-a-group-of-traders-made-millions-after-just-14-days-training-353329.html

Author: Gregory DeVictor
Forex is an abbreviated name for foreign exchange. The Forex trading market is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. For many years, the Forex market was dominated by large institutions such as banks and brokerage firms. However, the Forex market has experienced a major change over the past several years, as a growing number of private investors and traders just like you have started to actively participate and trade. The purpose of this article is to reveal Forex trading strategies that withstand the test of time.

Have An Open Mind: According to Mark Twain, It's not what we don't know that hurts us; it's what we know for sure that just ain't so.

Good Money Management Alone Is Not Enough: According to Monroe Trout, Good Money Management alone isn't going to increase your edge at all. If your system isn't any good, you're still going to lose money, no matter how effective your money management rules are. But if you have an approach that makes money, then money management can make the difference between success and failure.

Do Not Play Catch Up: According to Richard Dennis, I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.

Trading System: According to Howard Abell, The trading system gives the trader the ability to control his or her emotional states rather than allowing them to control him. A system is a disciplined method for organizing dynamic, ever-changing market phenomena.

Trade Small: According to Mark Ritchie, I think it's generally a good idea that when you put on a trade, it should be so small that it seems almost a waste of your time. Always trade at a level that seems too small.

Be Greedy When Others Are Fearful: According to Warren Buffet, Be greedy when others are fearful.

Courage: According to Bill Lipschutz, It is not enough to simply have the insight to see something apart from the rest of the crowd, you also need to have the courage to act on it and to stay with it. It's very difficult to be different from the rest of the crowd the majority of the time, which by definition is what you are doing if you are a successful trader.

Limit Your Losses: According to Linda Bradford Raschke, The market will decide how much profit to give you. Only you can decide how much to limit your loss.

Good Trades: According to Van K. Tharp, Good Trades Seldom go too far against us.

Always Changing: According to Jack D. Schwager, The markets are always changing, and they are always the same.

The Strategy: According to Sun-Tzu, All men can see those tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.

Sit On Your Hands: According to Bill Lipschutz, If most traders would learn to sit on their hands 50 per cent of the time, they would make a lot more money.

Psychological Makeup: According to Leo Melamed, You learn to distinguish the good traders from the bad, the successful techniques from the unsuccessful, and the good habits from the faulty. You also learn to distinguish the lover from the fighter, the winners from the losers, the serious from the frivolous, the cerebral from the superficial, and the friend from the foe. But above all, you learn that the psychological makeup of the trader is the single most critical element of success.

Trading Forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-strategies-that-withstand-the-test-of-time-352517.html

Author: James Woolley
Forex trading is considered by many to be nothing more than gambling. After all whenever you take a position in a particular currency pair, you are essentially betting on the price to either go up or down by taking a long or short position. So is forex trading really just another form of gambling?

Well to the uneducated person or the inexperienced forex trader, it would appear to be very easy to arrive at this conclusion, particularly if you start watching the chart of any currency pair and observe how it moves in a seemingly random fashion.

However many large financial institutions around the world, and indeed individual traders, make consistent profits from trading forex markets, so you can be pretty sure that they're not gambling away huge amounts of money every day at random.

There are of course many different ways you can give yourself an edge trading forex. The main way is of course through technical analysis. This is basically the study of charts and technical indicators to identify trading patterns and help you find potentially high probability trading positions.

They work so well because traders all over the world watch the same charts and the same technical indicators and see the same patterns repeating themselves over and over again. This allows them to take positions knowing that the price will most probably behave the same in this instance as before.

For example if the GBP/USD has found support at say 1.9600 three times before, and does so once more on this occasion, then many traders will have also noticed this and will be encouraged to take a long position, and in many ways it becomes a self-fulfilling prophecy.

Furthermore with the advancement of technology these days so many people can quickly and easily track any technical indicators they want thanks to the internet so technical analysis has become an even more valid way of trading forex.

So while it is true that on a very short-term basis, there is an element of randomness in the markets, if you look at the longer-term charts and use technical analysis to analyse the markets and make trading decisions, you can place the odds of winning firmly in your favour.

Therefore to answer the original question I would say that forex trading is definitely not another form of gambling because with a bit of education you can become an accomplished technical analyst and determine high probability trading positions where you win far more than you lose.

Article Source: http://www.articlesbase.com/currency-trading-articles/is-forex-trading-essentially-just-gambling-352237.html

Author: Harold Hsu
Demo trading is an indispensable aspect of every retail trader’s career. It would be foolhardy to trade ‘live’ in the Forex market without first getting your feet wet with paper trading.

What Is Demo Trading?

Demo trading (or ‘paper trading’) involves normal trading activities such as entering into buy (or sell) trades, setting stop orders, and exiting the market. It’s basically the same as actual trading except for one crucial difference: you’re not trading with real money.

Most Forex brokers provide this service at no cost to retail traders because they hope the retail traders will move on to using their paid services when ready to ‘go live’. The brokers will typically provide you with a demo trading account where your winnings (or losses) are calculated, and also a trading platform for you to monitor the market and to place your trades with.

Why Is Demo Trading Recommended For Beginner Traders?

It allows new traders to familiarize themselves with the brokers’ trading platforms - for example, to learn how to place buy and sell orders, as well as how to set stop orders etc.

It’s a common occurrence for new traders to enter into a buy trade when they want to sell, and vice versa. Without a paper trading account, they’ll be paying for such simple errors with real money!

What Demo Trading Can’t Help You With

Within the ‘safety net’ of a paper trading account, many conservative traders are unwilling to start ‘live trading’ accounts. These traders take comfort in knowing that they can’t lose any real money.

This is a dangerous mindset to adopt because actual trading inherently involves taking real risks. When amateur traders grow too comfortable within the confines of a demo account, they stop their learning process: the important aspect of psychological discipline is ignored.

So don’t wait until you’re completely sure that you’re making money before you trade ‘live’. That day will never come. My advice is to trade live as soon as you’ve mastered the controls of your trading platform, but to trade with smaller amounts first.

One of the most important lessons to be learnt in Forex trading is how to manage the psychological impact of actual losses, and you can’t get that by paper trading.

Article Source: http://www.articlesbase.com/currency-trading-articles/forex-trading-education-how-long-should-i-demo-trade-353427.html

Author: Harold Hsu
In this article, I will discuss 2 of the most common Forex trading mistakes made by traders.

Problem #1 - Scalping

Compared to all other types of trading (ex. swing trading), scalping is by far the hardest to master. Many amateur traders make the mistake of thinking that by trading in the very short term, they increase the probability of profiting from a trade. It’s intuitive to think that small, quick trades are easier to profit from, isn’t it?

In the Forex market however, the reverse is true.This is because of the volatile nature of the Forex market; market prices can fluctuate rather violently without any good reason at all. Although you risk smaller amounts of your capital when scalping, you’re actually dramatically increasing the probability that your stop losses will be hit.

Although I’ve personally met people who are proficient scalpers, it might do you well to know that they are highly trained and experienced traders. I’ve never met a beginner trader who was successful at scalping. If you want to try your hand at Forex trading, do try to trade on larger time frames such as using hourly or daily charts instead. Avoid trading using minute charts at all costs!

Problem #2 – Trading The News

This is one of the most appealing schools of thought among the Forex trading community. Who wouldn’t like to benefit from a quick 100 pip gain in less than 10 minutes? This is the equivalent of roughly $1,000.

The allure of quick, one time profits is what drives many traders to try their hand at news trading. Personally however, I would strongly discourage most inexperienced traders to news trade.

The reason is simple: the institutional traders (i.e. the big players) have all the advanced technology and knowledge in the world to beat you at this game. Their news feeds are faster, and they have their own in-house economists and currency strategists that have been carefully hand-picked from the top Ivy League schools.

What do retail traders have? A top-notch desktop computer with a high-speed internet connection at best? Even their broker platforms won’t be able to keep up with the volatility that occurs during news announcements. And not to mention the larger spreads that retail traders pay compared to the institutional traders.

To be a rich retail trader, you’ll have to work on your strengths and avoid your vulnerabilities. News trading is definitely not for the average retail trader, so please pick your battles wisely.

Article Source: http://www.articlesbase.com/currency-trading-articles/in-this-article-i-will-discuss-2-of-the-most-common-forex-trading-mistakes-made-by-traders-352224.html