Here are 4 common myths that most new forex traders make and end up losing all their money quickly. If you fall for any of them, you will end up a loser. Let's look at them.

Myth

You Can Follow a Forex Robot with a Simulated Track Record and Win
Many traders are just naïve or stupid and believe if they invest 100 dollars in a forex robot they will get a guaranteed income what they end up getting is a guaranteed loss. Quite simply, these traders don't look and see the robots come with paper simulated track records and gains NOT real ones!

There simply made up knowing the past we can all do that but trading without knowing the price closes is vastly different.

Myth

Buy Low Sell High is the Aim of Successful Forex Speculation

It's a well worn phrase and its dead wrong if you try and buy low and sell high, you will miss most of the big moves which actually start and accelerate from new market highs and lows.

All the best trends come from these breakouts and if you don't trade them, you will miss the best opportunities.

Myth

You Need to Predict to Win

This really goes with the above myth. Traders get obsessed with predicting tops and bottoms but of course if you are predicting, you are hoping and guessing and that won't get you very far in life let alone forex trading. Trade the reality of price change and never predict if you want to win.

Myth

Intelligence and Hard Work Bring Success

Not at all, you don't need to be intelligent to win and clever people who think they deserve success end up disappointed. Furthermore, hard work doesn't guarantee success. The only criteria you are judged on is how much money your trading signal makes and it doesn't matter if you took 5 minutes over it, or 5 hours it's the result that counts.

Myth

Forex Trading is Easy

Many vendors of robots, day trading systems and forex signal services promote this myth because it's in their interest but of course it's not easy, if it were 95% of traders wouldn't lose. Only 5% win and make really good money from forex trading and if you think trading is a "walk in the park" the market will hand you a lesson in respect.

The rewards are so high because it's not easy, forex success is achievable but you need a strong forex education and the mindset to succeed.

The above 4 are not the only forex myths traders' fall for but there very common and if you believe them your trading account won't last long.

Article Source: http://www.Free-Articles-Zone.com

There are lot of forex robots for sale but most will soon wipe your equity out but there is a tiny minority which win and we will look at a checklist you should follow, to find them and get the right one for you...

Here is your checklist for finding the best forex robots.

1. Get a Real Track Record

Most of the forex trading systems online fail on this basic point - they don't have one! All they have is back tested simulations on data and of course we can all make money doing this. You will normally see the words "simulated", "hypothetical" and in "hindsight". Lets be clear you are buying a trading system on the basis that it will make you money and if has never been traded why would you trust it?

If you pass by the simulated systems you already have got rid of 90% +. When looking for a real time track record two or three years is the minimum period you should consider remember, anyone can fluke a few weeks or a month and this time period means nothing.

2. Risk Tolerance
You will normally find that a system will lose for weeks on end, that's just the way forex trading is so make sure you prepared for this and look at the biggest loss and time to recovery - i.e. if you joined the system on the worst possible day.

3. You Need to Know The Logic

Never by a system which doesn't have the logic disclosed. Ideally, it should tell you the exact rules and parameters used and the logic behind them. This will give you the confidence to keep executing the trading system through periods of losses until you hit a home run.

You need to maintain discipline of execution and make sure the trades are placed exactly as the system dictates. If you can't do this with confidence and discipline you don't have a system.

4. Curve Fitting

The reason most simulated trading systems fail is because they are curve fitted. This means the rules are bent to fit the data. As no two pieces of data ever come around in the same price sequence again the system collapses in real time trading. Even proven systems get curve fitted. The system makes money, so the vendor offers new improved rules but don't fall for this, use the original ones, curve fitting sees systems fail.


5. Best Time Periods

The idea of an automated trading system is to save time and you should really use a swing trading or long term trend following system - never a day trading system. Day trading is based on logic that doesn't work and anyway, you will never find a real track record so steer clear.

Follow the above 5 points and you will find the best forex robots and then you can choose one that fits your risk criteria. Forex robots do work but don't forget they will lose for long periods to so you must have the confidence and the discipline to take these loses, until profits come.

There are some good automated forex trading systems and the above information will help you to find one which will lead you to currency trading success.

Article Source: http://www.Free-Articles-Zone.com

Regardless of the forex trading strategy you use, it must contain the key element enclosed yet, most traders never even consider it and when asked what it is get it wrong! If you don't want to join the majority of losers, make sure your strategy has it and get in the winning minority...

The key to success in forex markets is:

A trading edge which you can define and which you have confidence in can help you NOT join the losing majority or the 95% of traders who burn their money.

Obvious?

Yes it is - but most traders think the statements below are trading edges and they are not! If you think they are, you will soon see your account wiped out.

Agree with any of the following statements and you are odds on to lose

 I have a forex robot with a simulated track record in hindsight and think it will make me money

- Forex day trading and scalping are a great way to trade

- I like to trade breaking news stories and react quickly

- I like to predict forex prices in advance.

- I believe in a scientific method of trading and science is the answer

- I am clever so am bound to succeed

- I work hard and will get there in the end

- Knowledge is power and I will learn everything I can about forex

There are many more - but show me anyone who agrees with the above and I Will show you a loser.

The problem is most forex traders just don't understand what an edge is and the above are either myths, thinking forex trading is a walk in the park, or they can follow other people.

Forex trading is hard and that's why the rewards are so big for the small minority who can get a trading edge.

The good news is anyone can learn to trade and get an edge with the right education.

A trading edge is personal but it is the key factor which will give you confidence and allow you to follow your chosen forex trading strategy through periods of losses (and don't believe anyone who says losing periods don't last - they can last for many weeks and this happens to even the worlds top traders) and stay on course with discipline until you hit a home run.

In forex trading its dealing with the losses that is the hard part and if you think it's easy to stay disciplined when the market makes you look a fool time after time, you have never traded.

In forex trading you must love your losses and see them as part of being successful.

A trading edge has nothing to do with being clever or working hard or having a complicated strategy.

It's a fact that simple systems work best and always will, as they have fewer elements to break. Furthermore, your strategy on its own even if its logically based still needs to be applied for this you need confidence and this will lead to discipline.

Lack of discipline is the key reason most traders fail because, if you can't follow your trading system with discipline you don't have one.

To win at forex trading you need to work smart not hard; you can learn forex trading in a few weeks, gain confidence, get discipline and then start trading and get on the road to currency trading success
 
Article Source: http://www.Free-Articles-Zone.com

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is almost US$ 4 trillion


The foreign exchange market is unique because of



its trading volumes,

the extreme liquidity of the market,

the large number of, and variety of, traders in the market,

its geographical dispersion,

its long trading hours: 24 hours a day except on weekends (from 5pm EST on Sunday until 4pm EST Friday),

the variety of factors that affect exchange rates.

the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)

the use of leverage



Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD.As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks. According to the BIS,[1] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this.



This $3.21 trillion in main foreign exchange market turnover was broken down as follows:



$1,005 billion in spot transactions

$362 billion in outright forwards

$1,714 billion in forex swaps

$129 billion estimated gaps in reporting

Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%.

In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).