Category: Forex Broker

By Nicholas Jarder

Amazing Forex System is an eBook about a forex trading strategy developed by Robert Borowski. To an experienced trader, there is really nothing amazing with the eBook nor the trading strategy contained therein. However, the trading strategy never-the-less is a proven technique and employs well-founded and logical reasoning.

The Amazing Forex System employs a popular trading strategy called ‘trading the news’ which I have often used myself in the past with a great deal of success. Basically, the strategy calls for placing two orders (a buy and a sell order) simultaneously just minutes before a highly anticipated, market moving news hit the wires. The news comes in the form of agency reports which by law are mandated to be released publicly and on a calendared basis. The news normally contains economic data and/or policy pronouncements that may greatly impact the currency market. Economic news reports of great significance often throw the market into a frenzied state. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can drive the market crazy.

Since the release of such highly anticipated news is often followed by substantial price movements, there is nothing more for the trader to know except to pin down the exact date and the exact time the news is to be released to the media. Where ever the market goes, up or down, or however the major players react to the news will be of no consequence. With this strategy, the trader is sure to catch the trend and trade the opportunity for profit.

The Amazing Forex System may be too simplistic and rather straightforward to many sophisticated traders but it works! In fact I have seen an automated trading system that has incorporated a robot built with the same principles. Besides, as I have said earlier, I have used a similar trading strategy in the past with great success.

There is no perfect trading system. They all have flaws. Similarly, the Amazing Forex System has its own flaws. Here are some of them.

The market becomes highly volatile during important news events. During such times, the dealers widen their spread. This will definitely impact your bottom line.

Big market moves especially those triggered by news events are often accompanied by equally big whipsaw movements. Prices may soar in one direction for a while only to be whipsawed back to the other direction. This can turn your profit into losses if you are not fast enough to get out of the market while you are still ahead! Or, if you have not cancelled out your other entry order, it could be triggered by the whipsaw move leaving you locked up with losses. To avoid such situations, you need to place OCO (one cancels the other) orders.

The stop loss order in this strategy is set at 10 pips. In a very volatile market this is considered too tight! For all you know, the market may momentarily move against your position, trigger your stop, then return again to resume its move. In short, with the tight stops it employs, you can be unnecessarily taken out of the market despite trading in the right direction.

But even with these misgivings, I still think the Amazing Forex System is a workable trading system which can be a profitable after a few adjustments. With some more fine-tuning and a lot of actual hands-on testing of the Amazing Forex System may yet prove its value with consistent profitable trades!

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The Basics Of Forex Trading For Beginners

by

DivisaFX

If you\’re just getting started in the currency markets, you should make sure that you know the basics of Forex trading before you consider risking your hard earned money. Otherwise, you can be sure that you will blow out your account very, very quickly. Many of the so called Forex \”Gurus\” out there will cover one or two off these basics adequately, but you need to have all three in place to truly be prepared for the challenges of trading Forex for a profit.

The basics of Forex

trading I\’m talking about are Method, Mindset and Money Management. These 3 Ms form the foundation of every successful trading operation, ignore one or more and you are guaranteed to lose money. The first of these, your Method, covers how you analyze the market, make your trading decisions, and manage your trades. The second of these, your Mindset, has to do with whether you are disciplined and consistent in your trading, and if you are in control of your trading or if it is control of you. Finally, your Money Management strategy is a crucial and often overlooked component of successful trading. Without the proper money management strategy, you are always at risk of blowing out your account, and you will find it very hard to hold on to your profits.

Here\’s how to master these 3 essential basics of Forex trading:The Basics Of Forex Trading #1: Method Without a proven Method for consistently extracting profits from the market, you are essentially gambling every time you enter a trade. A successful method covers not just your trade entry, but the entire process from analyzing the markets, identifying trade opportunities, entering and exiting your trades, and setting your stop loss and target profit zones. You should also have a solid underlying concept, be it trend following, range trading, breakout trading or targeting the overbought/oversold areas. So how do you put a successful Method together? First and foremost, you begin by studying the historical prices of the currency pair that you want to trade. If you\’re just starting out, you\’re better of focusing on just one pair and getting really familiar with the market behavior of that particular pair, instead of spreading yourself too thin over multiple currency pairs. As you observe how the prices fluctuate over time, take note of the opportunities that exist within the market. You can then begin to quantify your potential entries, exits, stop and profit points and test them to find the optimal combination. Alternatively, you can invest in someone else\’s strategy or system, and adjust it to suit your own observations and research.The Basics Of Forex Trading #2: Mindset One of the basics of Forex

trading that is often overlooked by beginners especially is the importance of the right Mindset. It may surprise you to discover that most people don\’t lose money in Forex because they don\’t have a profitable method. They lose money because of trading mistakes that stem from a lack of emotional control and poor application of discipline. Even if you have the best method in the world, but your poor Mindset prevents you from applying it correctly, you are going to lose money.

When you first start trading your system, you should do it on a mini or micro lot account on the lowest possible size. That way, you eliminate the emotional part of trading that is related to winning and losing money, and instead allow yourself to concentrate on applying your Method correctly. After 2-3 months of consistent performance and strict adherence to the rules of your system, you can progress to trading a full account. Don\’t get complacent when you increase your account size though, continue to be cautious and focus on trading well, not the monetary results of your trading.The Basics Of Forex Trading #3: Money Management Last but not least of the basics of Forex

trading is Money Management. Good Money Management will allow you to grow your capital optimally, while minimizing your risk of drawdown due to a bad streak of losing trades. You may have heard of the 2% rule of money management in Forex, which means that you can only risk 2% of your capital on any given trade. For example, if you have $10,000 in your trading account as risk capital, you can risk up to $200 on one trade. Let\’s say that you have a trade with a stop loss of 20 pips away from your entry, meaning that your worst case loss is 20 pips. Therefore, your maximum position size is 1 full lot, which puts your risk on the trade at $200.

Whenever you\’re not doing well in your trading, it\’s probably down to the failure to adhere to one or more of these basics of Forex trading. To improve your performance, you should work on these fundamentals, and you\’ll have a firm foundation to build on in your pursuit of Forex trading profits. Divisa Capital

LP (\”DCFX\”) is an investment house incorporated in New Zealand under the Companies Act 1993 and registered with both the Financial Services Providers Register(FSPR) and Financial Services Complaints LTD (FSCL).

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