I know that with stock trading, it’s 28% and 15%, but I’m not sure what the rate is for currency trading profits. I heard that it’s a bit confusing.

Here we are going to give some currency tips for beginners who want to get involved in the exciting and potentially lucrative world of currency trading. Could you be successful at currency trading? Read on …

Firs things first.

You will see a lot of people telling you currency trading is easy don’t believe them – its not and you wouldn’t expect it to be with the rewards on offer.

The good news is – anyone can learn to trade currencies and have the potential for big gains just follow these tips.

Get Educated For FREE

The net has a wealth off forex education that’s free and can give you all the basics you need to get started. You simply need to hunt around to get it but what should you be looking for?

The Best Way to Trade

Is using forex technical analysis and forex charts so learn about why it works and the various chart formations that repeat which you can trade for profit.

If you trade using forex charts, you will simply be following trends and trying to spot and lock into them for profit. They come around all the time and by following charts your not bothered about why they emerge you just want to lock into them when they do.

Forget News Sources

The news will simply make you lose, as your emotions will get involved.

Why?

Because news is simply stories or opinions and reflects the majority of currency traders, who end up losing remember – 95% lose!

So avoid the news and simply follow the reality of price on forex charts.

Forex Systems

There are plenty of forex e-books and systems on the net making outrageous claims using hypothetical track records and most are junk – avoid them.

There are some good ones and these generally focus on the reality of trading i.e. its not easy and their easy to find.

If you want to buy one go ahead – but make sure you get guarantee and you don’t see claims that look to good to be true being made by the vendor – as they old saying goes, if they look to good to be true, they probably are.

Don’t day trade

The biggest myth of currency trading is that day trading makes money – it doesn’t and you will never find a day trading system with a long term track record of profits.

Either swing trade looking for moves of a few days to a week or so – or follow long term trends of weeks or months.

For novice traders swing trading is easier it requires less patience and trades come around more often.

Learn currency trading yourself and don’t follow anyone else – this is really the key to currency trading success. The reason for this is simply – if you don’t understand what you are doing, you wont have confidence to follow your system with discipline. when it hits a losing period ( and trust me they all do) you need to have discipline to follow your method or you have no method in the first place.

Trading looks easy but most traders fail as we said earlier the figure is 95%.

The reason most traders lose is they buy systems that are simply marketed on simulated track records that look to good to be true – they are and traders who follow them soon throw in the towel, when they hit a few losses – the bulk of them are in day trading, a graveyard for novice traders.

The best way to win is to do it yourself.

There is loads of free information to help you as we have said.

If you learn a simple system, based on technical analysis and can apply it with discipline, you are ahead of most novice traders!

Our currency tips for beginners above, will point you in the right direction to get started and in part 2 of this series, we will show you how to build a simple forex trading system for profit.



By: Kelly Price

There are many currency books but here I have selected three that every trader should have in their library of books. If you are seasoned pro or novice trader these books are great forex education.

1. Market Wizards (Jack Schwager)

Schwager interviews 17 trading legends including Richard Dennis, Paul Tudor Jones, Ed Seykota, Marty Schwartz, Tom Baldwin and others. The traders interviewed are not just traders their super traders. There methods may all be different but there is something to learn from all of them,

One of the top-selling trading books of all-time and with good reason – if you can’t learn from these guys then there really is no hope

2. What I Learned Losing a Million Dollars – (Jim Paul Brendan Moynihan)

This books focus is on losing and may seem an odd choice as essential reading but it is for this reason as it correctly states

There are many different ways to make money but only a few ways to lose it.

Part biography and part a lesson in money management – if you only thought money management was placing a stop you need this book.

One of the most unique trading books you will ever read.

It focuses on the fact that trading and investing are personal journeys; about finding out who you are, and then how to manage what you find and use this understanding to trade successfully.

The reason why most traders never make money is they don’t understand that success comes from within and that trading is all about self knowledge not the method they are using.

3. The Way of the Turtle – (Curtis Faith)

While visiting a turtle farm, legendary trader Richard Dennis had a bet with his big pal and trading partner – Bill Eckhardt that traders were not born – they could be taught.

To settle the bet, they recruited a group of individuals from all walks of life, gave them accounts to trade, and trained them for 14 days and nicknamed them the Turtles.

The Turtles proved Dennis right and earned more than $100 million in less than four years.
Here the most successful turtle Curtis Faith goes through the experiment in great depth offering his unique perspective on the experiment.

He explains why the Turtle Way works in today’s markets and how to apply it. He also shares his wisdom on taking risks, choosing your own path, and learning from your trading mistakes.

So there you have 3 currency trading books that are essential forex education.

Keep in mind:

Currency trading is relatively easy to learn in terms of method the real problem is getting the right mindset and all the above books will give you a unique insight into getting the right mindset to succeed in currency trading.

Treat yourself and get these 3 currency trading books and learn from true market pro’s.



By: Kelly Price

I want to trade currency. Please suggest good trading platform for currency trading.

Thank YOU!!!

Many traders have forex trading systems that can pick the direction of the currency correctly but they continually get stopped out by volatility and cannot stay with the trend. Here are some money management tips to help you stay with the trend and enjoy currency trading success…

A typical scenario which occurs for most traders is they enter a trend with their currency trading signal the price retraces, takes out their stop and then the trend immediately goes back the way they thought, piling up thousands of dollars and their not in!

If this has happened to you, you’re not alone. Most traders have this problem and volatility is the cause.

Of course prices don’t trend in a straight line otherwise currency trading would be easy – they constantly retrace against major trends. Quite simply, you need to employ money management rules to keep you in the major trend and not get stopped out so here are some tips.

1. Don’t Trade the Market Noise

If you want to avoid getting caught by random volatility avoid short term trading strategies such as forex scalping or day trading. All volatility in a day is random. So if you place stops using daily support and resistance you are wasting your time.

Forget day trading and look at long term trend following.

2. Be Selective

You don’t get paid for how often you trade you get paid for being right with your trading signal and getting your market timing right. The big high odds trades don’t come around every day and you need to be patient to wait for them. I know traders who trade less than a dozen times a year, who make triple digit gains and you, can to.

You will also find many of the best trading moves come from breakouts and you need to look for these.

3. Use Breakouts.

Most major trends start from breaks of highs and lows and pick valid ones (check our other articles for more information on breakouts) When a break occurs your stop is obvious below the breakout point. If the breakout continues do not trail your stop to close! This is the major error of most traders in any form of trend and we will discuss this next.

4. Moving Stops

Most traders fail to win because they trail stops too soon. They want to restrict risk so much they create it by bringing their stop within normal volatility and getting bumped out the trade.

Make sure you leave your stop until the trend is well underway and trail outside of random volatility.

A good way of doing this is using the 40 day Moving average as a stop. Sure you miss a bit of the trend when it turns – but you can’t predict that anyway, so there is no point in trying. If you caught 50% of every major trend you would be very rich.

5. Deciding Risk per Trade

Today you can get leverage of 200:1 or more but for a small trader to use all of this is madness.

Sure your gain will be huge – but your stop has to be so close, you are guaranteed to get stopped out. De-leverage and use 10 or 20:1 and risk more per trade.

In forex trading you have to take a risk and you need to be outside of daily volatility with your stop, or you’re going to lose. Risking more to your stop means your chances of winning are higher, if you hit high odds trades and that’s what you need to do.

Volatility can destroy your account quickly, if your forex money management doesn’t handle it.

The above tips will work. In the next series of these articles we will look at how to measure volatility and look at standard deviation of price, which is essential forex education for any trader and a great tool to help time trading signals – the Bollinger Band.

Many traders think forex money management takes care of itself, it doesn’t and you need to get protection for your trades and deal with volatility to win.



By: Kelly Price

To make money trading currency, understand what makes the currency for a country go up or down in value, and use data from financial magazines and software to help make decisions. Learn why investors want to be short on negative currency accounts and long on positive accounts with information from a financial consultant in this free video on currency trading and investing. Expert: Roger Groh Bio: Roger Groh is the founder of Groh Asset Management. Filmmaker: Bing Hu

Trading currency is essentially the process of earning money through dealing different foreign currencies. This is where you make some predictions about the rise and fall of the different foreign currencies against each other. When you say trading currency one thing that will automatically come into your mind is the money. While it is true that obviously it has something to do with money, have you ever really thought of giving up your day job in exchange for the currency trading as a means of living?

The nagging question is that, does anyone who lacks the basic knowledge and skills when it comes to currency trading can have a good chance of having a decent living in currency trading? The answer of course is a clear NO! It is because in any profession or career that you want to pursue, in order for you to become successful, you have to acquire the basic expertises that are required so you can fulfill your task more efficiently. Though the use of forex robots are not really highly advisable to use due to the unrealistic promises that they make, it will somehow help you gain information if you are thinking of adopting currency trading for a living.

If you desire to do the currency trading for a living, you should go for it provided you are well-equipped and that you know what you are really up to otherwise you will end up losing a lot of money in the end. This is a serious business and it is something that should not be taken very lightly. The advent of the modern technology, like the internet and computers, have made it easier for the traders who are considering currency trading for a living because even at the comfort of their home they can conduct trading transactions.

It is really possible for you to make trading currency for a living as long as you know what you are doing and that you understand fully all the techniques and strategies on how to effectively manage your money. Aside from a good source of living, currency trading can actually make you a millionaire very rapidly. A simple tool that you will need to understand how the currency trading works is a basic calculator and this tool is very affordable.

To get you acquainted with the essential things that you have to learn, setting a practice trade account will give you a few numbers of ideas on what you should expect should you decide to make trading in real situations.

Once you have learned all the necessary skills in order for you to do the currency trading for a living and become successful, the next thing that you have to do is to allot a reasonable chunk of your money that you will need for the trading. This aspect of trading should be given extra care because when you are in this business there are only two ways that you can go – win or lose. Either way, you really have to be very careful because there is a high probability that at some point you will lose. So, it is important that you allocate enough sum of money for your living expenses.



By: John Callingham

Hi,

How to report profit or loss incurred from Currency Trading on Canadian IncomeTax Return. It doesn’t fall inot Capital gain or loss Category.

Please help

Trade Forex Currency Online using automated software. If you would like to Forex trade while you sleep, work or even while your on vacation, then Automated Forex Trading software may be the answer.

Adjusting your trade size on a fixed percentage isn’t a good idea. That we established in part 1. Now, how exactly do we apply this “money management secret”?

After all, you can’t just hold one trade size indefinitely.

When do you adjust your risk per trade? If you never adjust it, your risk per trade will probably become much too large or too small eventually.

Here is the rule of thumb.

If your account is between $1000 and $10,000. At this stage, only readjust your risk per trade once you’ve increased your account by 50% or decreased it by 20%. Then once you’ve readjusted it, do not readjust it until your account grows by 50% or decreases by 20%.

If your account is between $10,000 and $100,000. At this stage, only readjust your risk per trade once you’ve increase your account by 40% or decreased it by 20%. Then once you’ve readjusted it, do not readjust it until your account grows by 40% or decreases by 20%.

If your account is above $100,000. At this stage, risk only 1% of your account per trade. Only readjust your risk per trade once you’ve increase your account by 30% or decreased it by 20%. Then once you’ve readjusted it, do not readjust it until your account grows by 30% or decreases by 20%.

Now, if you’re trading an account under $1000, you need to be trading micro lots. Just knock a zero off of all the numbers above and you have your money management rules.

For example, If your account is between $100 and $1000. At this stage, only readjust your risk per trade once you’ve increased your account by 50% or decreased it by 20%. Then once you’ve readjusted it, do not readjust it until your account grows by 50% or decreases by 20%.



By: Nathan Pennington