Consider the Following...
A nice, simple trading strategy will win out nine times out of ten, almost guaranteed.

Forex, in case you don’t already know, is basically an abbreviation of the Foreign Exchange Market. The Foreign Exchange Market acts in plenty of ways like the Stock Market, except without the mass jumble of ticker symbols. Look at it this way, if you go to Singapore, and exchange your United States money for their money, you’re in essence participating in the foreign exchange market, just on a relatively smaller scale.

If you’re trading on the market with a good trading strategy, you’re trading your native currency for a foreign currency, in hopes of trading back for your native currency, preferably yielding a quick profit. Sound easy? Lets keep it that way, shall we?

There are many automated forex trading programs out there, and they seem to be gaining sophistication by the day. When coupled with the MetaTrader4 program, these “Expert Advisors” will automatically trade your way to huge profits, even while you sleep. These programs have been widely proven by expert and novice forex traders alike, and are seemingly never going to lose their profitability.

However, if an automatic trading strategy simply is not for you, then take a look around the site, and you’ll find several manual strategies that are sure to earn you a quick return on investment once applied.

Why I Trade Forex and You Should Too

Hi! Welcome my new blog, Free Forex Tips, dedicated to sharing what the Forex market is and what it really takes to succeed, including free forex strategies, online trading broker reviews, technical analysis and more. To receive free forex lessons and tips, I invite you to subscribe to my newsletter now and come back soon!

Why I Trade Forex & You Should Too

Forex trading offers many advantages such as:

• Only six major pairs to trade.

When I was swing trading stocks, I always had 100-500 stocks I was watching, with around 25-50 favorites. Trading Forex simplifies it down to just six. What a relief!

• Forex is a 24 hour market.

A day in the Forex market is considered from 5:00 p.m. one day to 5:00 p.m. the next, but you can call any hour of the day or night your cut-off point. It’s really nice to be able to trade whenever you want, on your schedule.

• Best potential of any market to make money quickly.

Volatility is a good thing, if you know how to use it. With Forex, you can see big swings happen in short time frames, creating massive opportunities for gains. (And, yes, the flip side of the coin is that there is also the potential for large losses. Any good trader will control for this with stops.)

• Great market to day trade.

If you’ve never watched a one-minute Forex chart, you’re missing a real show. Coming from the world of stocks, I was stunned to see how much movement could go on in Forex in a matter of 15 minutes. With Forex, you can often get in and out of a day trade with a good profit in an under an hour and be free the rest of the day.

• High Liquidity

The currency market is the largest trading market in the world. As long as you are trading major pairs, you’ll never have to worry about getting out of a trade gone bad.

• High leverage

In Forex, most brokers will give you a 100:1 leverage. This allows you to leverage a very small amount of money for a potentially much larger gain than you could otherwise expect. And, while many people fear losing huge amounts of money this way and experiencing a dreaded “margin call,” the fact is that most brokers have a safety policy in place to prevent you losing any more than you actually have at stake. Hence, if you choose a good broker and set up your account properly, you can not go “into the hole.”

Well, that’s all for today. I’ll be posting once or twice a month so stay tuned for free forex tips and strategies coming soon. If you would like to know when there’s a new article or receive free forex tips directly in your box, please feel free to subscribe to my newsletter. I promise I will never flood your inbox with junk nor sell or share your address with any third party.

Tips for Developing an Effective Forex Trading System That Will Work

Who wouldn’t want to participate in the largest, most potentially lucrative market on this planet?

Forex trading is a very exciting place to do business and if you know what it’s about, you could stand to earn a lot from it, too.

To do so, you’ll need an effective forex trading system to help you put your strategies together.

Here’s how you can develop one:

Know your limits.
Generally, it’s the leverage you’re looking at when you’re trading forex. A 100:1 leverage will make you bless the day you found forex, IF it works in your favor and curse it if it goes against you. Maximizing your leverage may put you at a high potential for a very lucrative profit but it also places you at a high risk of losing it all.

Try to work using a forex trading system that lets you limit the risk in your favor. The key here is to manage your account and your money and not to throw it away on a whim.

Always put a limit on your trades.
Decide on how much exactly you want to trade and stick to it. You should also decide up to what point you want to take your losses. Respect this covenant with yourself. Break it only if you’re already well-experienced, know exactly what you’re doing and can take the risk.

Learn to read the trend.
Forex trading is heavy on trends, something you should watch out for. If you want to develop an effective forex trading system, learn to read daily and later, weekly charts. This will help you analyze the direction the market is going. Find the indicators you want to work with and use those to determine if it’s the right time to start trading.

Dear Forex Trader,

The problem that most would be currency traders encounter is a lack of appropriate literature. Most of the books on the subject deal with macro economic theories. If you want to study economics you are better off enrolling in a university class. In the real world with such knowledge and 10 dollars you can buy yourself a lunch. The real world is inhabited with real people. And real people eat little geeks for breakfast. Welcome to the world of currency trading.

Let's have a look at the figure below.

The figure above is a daily candlestick chart for EUR/USD covering a six month period. As we can observe from the chart at the beginning of April 2007, EUR/USD was trading at approximately 1.34 and by mid September 2007, it was trading at approximately 1.40. It is close to a six percentage point change in as many months. It doesn't look too impressive, does it?

We will now pay attention to T1..T5 arrows that are displayed on the chart. They represent five different short term trends that took place during the six month period. By using the proper leverage catching any of those multi day moves would have more than doubled our account. Catching two of them would have quadrupled our initial start up capital. Is it realistic to expect to ride all of the five trends from the above example? Not realistic at all. However, catching two or even three of them is definitely within our reach.

Let's go straight to the point. What is forex trading all about? Is it about finding your inner self? Is it about understanding of how currency markets provide global trading equilibrium? Is it about becoming a better person? I don't think so. I would say that forex trading is about making money. It is as simple as that. And that is precisely why you are here...