Is Forex Trading For You? Fact of Advantages and Disadvantages

The fact is most people who start to trade Forex fail and it's a whopping 95% of all traders. The good news is you can win, if you have the right mindset and here we will give you both the advantages and disadvantages so you can see if you have what it takes to win.

So what are the advantages?

- There are always opportunities to make money, as currencies fluctuate and trend every day.

- There are always profit opportunities and never a recession, as one currency rises another must fall and vice versa.

- You only need an internet connection, a computer and some seed capital to get started.

- Forex trading is a totally learned skill, so anyone can learn to trade.

- The best Forex trading systems are simple so anyone can learn them.

- You only need to spend 30 minutes a day on your trading strategy.

- You can leverage your investment by up to 200:1, to make even bigger gains.

Now on the face of it that's a lot of advantages but don't be deceived, making money is not a walk in the park and you wouldn't expect it to be, with the rewards you can potentially make.


So here are the disadvantages of trading Forex and how to combat them.

- Leverage creates risk as well as opportunity and tight money management is needed

- You cannot predict Forex prices in advance and all the cheap robots you see which claim you can make money with no effort are not correct and these systems all lose.

- You will face a period of weeks at some point, where you will have loss after loss and you must keep these losses small. This is the hard part of Forex trading, holding your discipline when times are tough.

- You must run your profits and running an open profit requires confidence and courage.

If you look at the disadvantages above, you will see that the route to success is to have the right mindset.

Most traders cannot take responsibility for their actions and they cannot keep losses small. This is the challenge of Forex trading, keeping losses small and running profits; anyone can learn to do it but most simply don't have the confidence to trade with discipline.

If you like to trust others or get advice from others, you will fail at Forex trading, but if you can take responsibility and trade with confidence then Forex trading is for you and you can make more money, in less time than in any other business. So get the right Forex education and the right mindset and your all set for success in the worlds most exciting business - international Forex trading.

By Kelly Price

GU Double Top


As we can see.. There was a "Double Top" form in GU yesterday. After the double top, we see a immediate down trend

Forex....

I've been trying out forex for more than a year, demo and live account, tried various types of indicators, robots, you name it. I read forums, blogs, to get more information on forex. I've created and tried out my own systems. It worked, and started winning trades the way i wanted, but only for few months, after that, started going down hill. Those systems just coundn't stand the test of time. This keep happening. I'm sure you have encountered this too.

I start thinking there must be a way of trading which will stand the test of time. I spent few weeks staring at the charts without trading. Then i realise, why should we use all those lagging and inconsistence indicators. I deleted all those indicators in my chart and stared at it for few more weeks (I'm just another noob, i'm no genius). As i staring at the chart, i see hope again. I found something that can really stand the test of time...... THE PRICE......

Compared to the ever changing, lagging indicators, the price has magic in it. I'm sure all the traders out there seen it too. The price is repeatedly in the same pattern. Is either uptrend, downtrend or sideway. It is easy to say, but how to know whether the price is going uptrend, downtrend or sideway?

Then i found a way. Everyday, at certain time, the market is inactive, which mean it is a sideway market, and when open market time comes, the price will break, it's either up or down. We know in our heart, it happens everyday. But still, a problem, how to place and enter a trade? If anybody out there, sharing the same thought with me, and found a best way to place or enter a trade, please share with me, and share with all the readers of this blog. You can leave your comment here. Thanks for sharing.

Pips Count

When i just entered forex world, i think that the more pips i got in a day, the more i earn. It took me more than 6months to realise the hard truth, but actually no.

In the beginning, my targeting pips/day is very high, i'll try to hit as many pips as possible in a day. However, it always turn out the other way. So i started to trim down the targeting pips, and re-do the math... After a year, i trimmed down my target to 25pips/day, just to make it easy to hit. But i know, all i need is 10pips/day. With proper money management and a little bit knownledge of Risk Reward Ratio, 10pips/day can make you reasonable money. Every human being wants to rich, but be reasonable.

Of course, targeting tiny pips will always have problem with Stop Loss, which is very important in forex trading. It is really up to the traders how to set the Target Profit (TP) and Stop Loss (SL), everyone has their own way. We welcome you to share your thought here, how you manage your money, how u set TP and SL, or anything else, just leave a comment.

Free Forex Signal

The links below are some site that provide forex signal for free which i found. The site i like the most is Accuratesignal (AS Team), their target is minimum 500pips/month. Check out their site for more details. They provide monthly profit report. Daily30 is quite a good site too. Try out with your demo account before you go live. Goodluck!

Accuratesignal
http://d6f11d42.linkbucks.com

Daily20pip
http://48433ddd.baberepublic.com

Daily30pip
http://fe3521e4.tinybucks.net

Piphut
http://d4780ef3.linkseer.net

Frefxsignal
http://299e368b.realfiles.net

Price Pattern

Below are some price pattern you might find very useful. Believe it or not, you can trade this pattern without any other indicators! Try it.