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Forex Demo Account

Posted: 12 Feb 2011 12:40 PM PST

Practicing on a forex demo account is an essential component to modern day forex currency trading. The high level of risk involved in trading the forex market demands that one test their skills, strategies and systems before the trade real money.

Most integrate with forex trading platforms like vt trader forex software so you are not tied to a forex broker's proprietary software. Even still, many of the proprietary software is good as well.  Below is a list of forex brokers who offer free demo accounts.
Of course, if you don't want to trade yourself but still want to get in the game, you could use a forex managed account like many investors currently do. But if you want to be hands on and do it yourself, using a forex demo account first is highly recommended.

Practice Makes Money

Posted: 12 Feb 2011 12:39 PM PST

Signing up for a forex demo trading account is a great way to practice your forex trading strategies. Everyone needs a trading strategy to be able to trade effectively. And many times it's free to sign up.

You can't randomly pick foreign currencies to buy and sell and a whim or even based on the day's prices, or you'll quickly be out of you money. This is a good thing to test too on a
There are many good forex brokers like FXA Securities, GFT, FXDD and GFS that offer forex demo accounts. You can find our full list a little ways below.
Most forex trading platforms, in addition to including a forex currency converter as well as a free forex charting, also have functionality to program your own trading strategy. You can program it to buy and sell at specific points as well as more advanced programming for advanced forex traders.
See if flying by the seat of your pants is an effective way to trade currencies. You'll find that it won't work and you'll quickly lose money. Sounds simple, but many people starting out in forex investing start out with a lot of excitement but very little strategic planning. Start out with a forex trading strategy.

Testing Strategy

Posted: 12 Feb 2011 12:38 PM PST

Then you can test your trading strategy, modify it and hone it. The likelihood that your initial trading strategy is going to work is very slim.

Good, successful, money making currency trading strategies are developed over time. It's a complicated process. There are a million variables that go into which currency pair you will pick.
Then there are a million more variables in when you are going to buy, sell, and what you expect that currency pair to do.
Everyone needs a trading strategy when they begin and know the basics. But many traders jump from the learning straight to the doing, with real money.
It's like if a pilot who finished all of his classroom ours were immediately put in a real cockpit to fly a plane without any practical practice.
Pilots have to log a designated number of hours practicing flying in a flight simulator. Not only that, they have to exhibit a certain competency level before they are allowed to fly a real plane. You would never take a pilot out of the classroom straight into flying a real plane.
But that's what so many new traders do. They do a few trades on a and then jump the gun to trade right away.
The same impatience that leads them prematurely to trade the wild jungle of the forex currency market is the same impatience that will kill them and their bank account. Practice makes money, and there is no other way to start.

Science and Art of Trading

Posted: 12 Feb 2011 12:37 PM PST

It's part science and part art. You can't neglect either one. Many people go into currency trading with the science part down. They've looked up successful forex trading strategies, or they have a trading system that they bought, or they understand the ins and outs of technical and fundamental analysis.

Those 'science' elements are essential, but guess what, there is no way to prepare for the 'art' part unless you practice first with a free forex demo account. This is very important if you want to start well, or at least if you don't want to get cashed out before you get a chance to learn.
There is a lot of intuition that is needed to become a successful trader. There are so many subtle, unspoken variables that go into a successful trade.
You have to have the essentials like technical and fundamental analysis and good money management and risk management, however, you have to be able to meld all those things together in executing your trades.  There are many  you can use to give you signals on when to get in and out, but it is not a formula.  They are just guidelines.
No one can explain it to you. No one can teach it to you. They can share how they think, the major factors that went into a trade or even their perspectives, but no trader can fully explain all the things that went into one trade. Because trading is something that comes from your gut as well as your brain.

Non-technical analysis

Posted: 12 Feb 2011 12:37 PM PST

Non-technical analysis is the analysis of yourself, your emotions and your mental capacity. Many new traders underestimate the power of their own emotions.

They are unprepared for the powerful forces from their own psychology that come into play when they start trading. The power of fear and greed will overwhelm and conquer you into ruins if you don't know how to control them.
Practicing on a forex demo will keep you from letting those emotions take over by at least making you aware of them. It will also help you practice managing your emotions during a real life trade.
Believe me, your emotions won't go as wild as it will when you start trading with real money, but if you practice, you will get a sense of it and have an idea of how you will react and how you should respond to those emotions.
Some new traders overestimate their own mental capacity. They end up using complicated forex trading strategies and systems that are beyond their mental capacity.
Big mistake because in real life trading, you have to have full control of your mind. If you find that the variables and data you're working with in your forex trading system, you should consider simplifying it so that you have a handle on it when the time comes.
I just came from a forex blog that is written by a guy that graduated from MIT. He had complicated financial data that he processed to give him his trading plan for the day.
The only problem for me was that I had no idea what he was talking about. I'm sure it was a sensible plan, but I didn't understand it, so I'm not going to use it.
Warren Buffet saved himself from the tech bubble of the late 1990's because he has a philosophy of not investing in something he doesn't understand. He didn't get why the technology sector stock values were so inflated and why, even though the price was so disproportional to the earnings (PE Ratio), investors kept buying the stocks.
It didn't make sense to Buffet and he stayed out on the most part. Trade what you know and trade in a system that you know backward and forward because when the inevitable surprises come your way, you know how to strategically respond within your trading system.
Trading on a forex demo account will help you know your limits as well as your strengths. It will help you find out what you really know.

Paper Trading

Posted: 12 Feb 2011 12:35 PM PST

Before the days of being able to get a forex trading demo account, brokers, traders and investment advisers alike used to advise people to do what they called paper trading. This is before investors and traders actually put down real cash to execute trades.

They would write down on a piece of paper what stocks, bond, commodities or currencies they wanted to buy and then whey would check the opening and closing prices of each of those securities in the newspaper everyday.
This of course was a much slower process than doing it online on something like a free forex demo account. In addition, this precluded them from doing any kind of day trading because they would get the data only once a day.
I remember being part of a investing and trading competition in the mid-1990's and picking our stocks straight out of the newspaper. We had to do actual research to find the stock symbols for the companies we wanted to invest in because it didn't say on the newspaper.
Then we'd write them down on a piece of paper and keep track of it on a printed out spreadsheet form given to us by the competition organizer. We didn't have access to real time quotes so we used the opening and closing prices in the financial section of the paper everyday.
That's how paper trading on the forex currency market used to be done. No computers, no online real-time data and very little access to research like charts or financials.
Now, people can not only check real-time securities prices, but they can also maintain a portfolio online that tells them exactly how much each security is worth and the total value of the entire portfolio.
Many forex trading platforms include free forex charting data and analysis so you get real-time quotes and analysis included in your forex account. It also of course includes a forex currency converter so you can get live exchange rates for multiple forex currency pairs.
Forex currency trading is no different. There are thousands of forex brokers out there that are offering forex traders their own free forex demo account online. By doing this, potential currency traders can practice and get a feel for what it is actually like before they put real money into it.

Forex Brokers That Offer Demo Accounts

Posted: 12 Feb 2011 12:35 PM PST

Here is a short list of forex brokers who offer free demo accounts for prospective traders. Using these will not only help you sharpen your skill and hone your trading strategy, but it will also enable you to evaluate the different online brokers and your options for 

Most online forex brokers offer many similar services, research, resources and information. But usually their trading platforms look and feel different and have different features and functionality.
When you're in the heat of your trading session, you will need an interface that makes sense to you and you can easily navigate. You don't want to lose money because you couldn't find the button you needed.
FXCM - Forex Capital Markets gives you a $50,000 demo trading account for free. There is a nice flash demo on their website that gives you a video tour of their trading interface. On this interface, you are able to trade multiple currency pairs at once and see them all in once screen.
GFT - Global Forex Trading doesn't have a video tour, but they have multiple applications that you can use from a software program that you download onto your computer to a web based interface as well as applications for your cell phone or PDA.
Forex.com has a 30 day trial platform with a $50,000 trading account. You can test out their advanced charting program to do your technical analysis. It also allows you to trade spot gold.
This is important because gold is tied to global currencies. The USD used to be backed by gold. It's not anymore, but it's known as the safe place for currency reserves when the USD, the safest currency in the world, seems compromised.

EUR/USD Goes Up on Sing of Slower US Economic Growth

Posted: 21 Sep 2010 09:48 AM PDT

EUR/USD was trading sideways today after declining somewhat, but recently jumped as economic reports from the US was rather bad. Reports indicated that US economy is still growing, but pace of growth is constantly slowing. EUR/USD trades now at about 1.3017.
NY Empire State manufacturing index slipped to 4.1 in September from the previous value of 7.1, instead of rising to 8.7 as was predicted by analysts.
A report on export and import prices was released today, showing that import prices increased 0.6% in August, after rising 0.1% the previous month. Export prices rose 0.8% in August after declining 0.2% in July.
Industrial production expanded 0.2% in August, less than in July (0.6% revised downwardly from 1.0%) and below a predicted value of 0.3%. Capacity utilization rate also was below forecasts — 74.7% compared to promised 75.1%. In July it was 74.6%.
US crude oil inventories decreased by 2.5 million barrels from the previous week. Total motor gasoline inventories decreased by 0.7 million barrels last week.

Good US Reports Boost Risk Appetite, Pushing EUR/USD Higher

Posted: 21 Sep 2010 09:45 AM PDT

The euro extended its rally against the dollar today as good reports from the US, including report on Producer Price Index and unemployment claims, increased investors' risk appetite. Philadelphia Fed Business Outlook Survey said that "regional manufacturing activity was nearly flat in September". EUR/USD trades now near 1.3096 after rising to intraday high of 1.3108, the highest level since August 11.
Producer Price Index (PPI) increased 0.4% in August, following a 0.2% advance in July. The forecast growth was 0.3%.
Initial jobless claims decreased from 453k to 450k last week. Forecasts clearly were wrong, expecting an increase to 463k.
US current account balance deficit increased to $123.3 billion (preliminary) in the second quarter of 2010, from $109.2 billion (revised) in the first quarter of 2010. Experts almost guessed the actual figure, promising an increase to $124 billion.
Net long-term purchases of the U.S. securities by the foreign investors were at $61.2 billion in July, compared to a previous reading of $44.4 billion and an expected decline of $37.9 billion.
Philadelphia Fed index advanced from -7.7 in August to -0.7 in September. Although the index rose, it was below a forecast value of 0.9.

EUR/USD Fluctuates on Mixed Economic Reports from US

Posted: 21 Sep 2010 09:43 AM PDT

EUR/USD currency pair moves up and down today as economic data from the US was mixed. Consumer price index grew more than predicted but preliminary report about the Reuters/University of Michigan Consumer Sentiment posted an unexpected decline. EUR/USD trades currently near 1.3060.
CPI indicator increased 0.3% in August on a seasonally adjusted basis. The growth was the same as in July, while somewhat smaller increased was predicted — 0.2%.
University of Michigan consumer sentiment index decreased from 68.9 to 66.6 in September according to the preliminary report released today. It was unpleasant surprise to Forex traders, who expected an increase to 70.2.

InstaForex — First Broker to Offer Real MetaTrader 5 Accounts

Posted: 21 Sep 2010 09:40 AM PDT

Breaking news! InstaForex announced today that it became the first Forex broker to offer real accounts with MetaTrader 5 as the trading platform. Although it's a great news for all traders (that are trading or have ever considered trading with InstaForex), as the MT5 platform has many advantages (like more timeframes and improved strategy tester), the current version of the platform and the MQL Editor/language is quite far from being perfect and bug-free. I believe it will take several months more for MetaQuotes to complete the development of MT5.
Anyway, having MetaTrader 5 for real accounts is a nice thing and I'm sure many traders will start testing their MT5 expert advisors there soon.

EUR/USD Rises After Decline on Sentiment

Posted: 21 Sep 2010 09:39 AM PDT

The euro slid versus the dollar earlier as the confidence in Europe's economy worsened but now returned to its opening level and continues to rise. There is not much data from the US today. Retail sales rose as was expected and business inventories unexpectedly surged. EUR/USD trades currently near 1.2897 after it slumped to 1.2829.
Retail sales rose 0.4% in August, just as forecasts promised. July growth was revised from 0.4% to 0.3%.
Business inventories were up 1.0% in July from June. Analysts expected advance of 0.5%, the same as in June (revised from 0.3%).

Treasury Budget Deficit Shrinks, EUR/USD Rises

Posted: 21 Sep 2010 09:38 AM PDT

The euro jumped against the dollar today with improving outlook for global recovery. Today we had only one report: about treasury budget. It showed that budget deficit significantly shrank in August. EUR/USD trades now at 1.2871.
US treasury budget posted a deficit of $90.5 billion in August, compared with the previous reading of $165 billion. The forecast deficit was $102.5 billion.
On Friday a report on wholesale inventories was released, which showed a growth by in 1.3% in July, following 0.4% advance in the month before.

Do You Use Any On-Line Forex Tools?

Posted: 21 Sep 2010 09:37 AM PDT

Various websites provide a great selection of free and paid Forex tools that can be used by the currency traders for the purpose of increasing their profitability. For example, I often use a position size calculator and watch Forex videos on-line, which helps me to get the latest analysis and news. Economic calendar is probably the most popular on-line tool among all traders (except maybe those that own a Bloomberg terminal or something like that), as it's the best way to keep yourself informed about the latest financial and currency-related news. And what on-line tools do you prefer to use (you can select multiple answers in this poll)?

Posted: 16 Sep 2010 08:23 AM PDT


Posted: 15 Sep 2010 06:07 AM PDT

I posted a basic system before with a chart of GbpUsd. Now I am going to use the same system and post the same pairs again.

Now GbpUsd has cross above LWMA55 and Macd has cross also. This is a new signal. So from now on only consider long position on GbpUsd. Btw anyone notice the price on this chart with the one i posted earlier?

Someone posted trade details. It seems the way I am trading will make me go bankrupt. All I can say is you dont have the idea what Forex is. Maybe I may not know how to handle the current market but my demo account has no drawdown. Maybe its coz im lucky. I just dont know.

I have stop trading the demo on marketiva. For $30 for the monthly winner. It is just a waste of time (Now I am going to reverse trade it). Instead I go for Instaforex forex sniper. Prize money is $1500 for weekly winner. Check out the banner on top.


Posted: 15 Sep 2010 06:07 AM PDT

Today marks the end of 4th year I am in Forex and I am still here. Most of the friends that I know trade has already stop. It must mean something to stay here for so long when most people quit. Its either I am really stubborn or I am not losing money. Which one you think?

After 3 days of demo trading I got over 25k of profit from 10k max lot trading. Its over 250pip net profit. Not bad for a part time trader and a 7th place so far. I dont think I can be number 1 coz of limited time I trade. Its a good progress, it shows where I am after 4 years. How about you?

Source for this Article www.Forex-King.blogspot.com

A Basic System

Posted: 15 Sep 2010 06:06 AM PDT

Any system need to have a very good basic to stand on. Once the basic is sort out, then all the accessories can be add on. Just remember not to add too much to it. Today I am going to give a basic system. It consist of only 2 indicators. Being simple, it is able to generate good signal. Just remember to put SL properly.

1. LWMA 55
2. MACD standard setting

Time frame: 30m

Stop Loss : 35 pips

Take Profit : 35 pips or more.

Currencies : EurUsd, GbpUsd, EurJpy, GbpJpy

Trading System:
LWMA act as a thin trend line. If the price is above it, its uptrend. If the price is below it, its downtrend. So you buy or sell according to trend. Never reverse trade. MACD also shows the trend. If MACD is above 0, its uptrend and the other way around.

I have put 3 vertical lines in the chart where MACD cross 0. Once MACD cross 0, you should only trade according to trend. You entry should be on the LWMA 55 or close. At the moment MACD has cross 0 and is heading down. From now on only consider short position. Try to enter as close as possible to LWMA 55.

Caution has to be taken, even though MACD has cross the trend is not yet full down actually. There is another indicator that I use to show trend and its not full down yet. Unfortunately that indicator is no where in the chart because it is not on GbpUsd chart. It is somewhere else.

Now you wonder why its not there. The truth is most people fail because what they are looking for is not there. That is what I meant with looking at the wrong direction. The trend indicator for GbpUsd is not on GbpUsd chart. Weird isnt it?

You can take this basic system and try to add on what ever system you have. Hopefully it is useful. Good Luck

Source for this Article www.Forex-King.blogspot.com


Posted: 15 Sep 2010 06:05 AM PDT

1,447 days ago I started to step in the world of Forex. 6th May 2006 is the day I registered my 1st demo account and its a Saturday. Through out my journey in Forex, there are no actual manual, text or books that I can really refer to. Its like an unexplored land with no maps what so ever. There are only guides available online with no one giving specific answer.

Though hard it may be I started to develop my own system and continue to improve on that system. No matter how I try to improve it, there is still something missing. After a long and hard work I finally got the answer. It is an answer that I wasn't willing to accept. So I disappeared for almost 1 year though my part of moving places only took 1 month to settle.

Now I am back trading with the answer in my head thus a new direction in my sight. Turns out it is really easy once you have the right answer. You know the question as well as I do. "WHAT IS FOREX".

I believe my learning period in Forex is almost over. I can now see direction clearly. I know which pair to trade with the highest probability of profit. I know when to exit and I know when to turn off the computer while still holding positions. I have mastered the basic of Forex. The only thing now is discipline and Money Management.

What I am not willing to do is to write in this blog about trading ideas. I may blow out the answer. After almost 4 years, its not something I am willing to give easily. There are no notes, no records, nothing written anywhere on my trading ideas. Its all in my head. My system now is so simple, it consist of only 2 main indicators which I can trade without. Find the answer and its all smooth sailing from there. I just wish I have found it earlier.

For those of you who show interest in my new trading system, thank you for the attention. I have stopped giving out my system due to limited time I have to teach. I dont teach, I dont sell my system, I dont ask for your money and I dont give signals.

You can come and visit this blog. I will give chart analysis from time to time. Dont expect too much coz there is not much in Forex anyway.

Good luck to all of you. Thank you for visiting my blog. For today, do sell GJ coz its going down. You just need to figure out where to enter. Its not an easy task, I know coz Ive been there.

Source for this Article www.Forex-King.blogspot.com

A Trader's Tools

Posted: 15 Sep 2010 06:04 AM PDT

A mechanic has many tools. Each tools with its own usage and purpose. It is only down to intelligence and creativity that separates a good mechanic and a bad one.

Like a mechanic, a trader has many tools as well. Each indicator is a tool for the trader and a combination set of tools with rules is a trading system. A good trader has not 1 but many system. Each system has different purpose. It is down to knowledge and creativity that separates a good trader and a bad one apart from portfolio.

The best time frame to trade is the lower time frame but due to noise and spikes it is difficult to trade using lower timeframe. It is the reason why most trades fail in short time frame.

EurUsd has been ranging for the past few days and due to it, has hit my stop loss twice. Being a trend trader myself, I just cannot trade during these ranging period. So I stopped trading and try to make a new trading system using lower time frame to catch these ranging market.

It seems with a new set of tools (not new actually, had not used them for a while), I have manage to create an almost perfect trading system for all time frame but with the target of 15m chart. The only thing that this new system doesnt show is when not to trade which i made up with a new set of rules.

If any of you would like to try the new trading system please leave your email. I will try to get back to you ASAP.

Source for this Article www.Forex-King.blogspot.com


Posted: 15 Sep 2010 06:03 AM PDT

Human tends to over-complicate things. It is in our nature to try and improve what we have but most of the time we overcomplicated things and forget about the simple solution.

In my previous post, I posted a chart of a basic system. It consist of candle stick chart, moving average and macd. Only 3 indicators and it is a very simple system rite?

The answer is, it is not so simple actually. Candle stick alone tell you 4 things that is, open, close, high and low price. MA tells you direction of trend, entry point, start and end of trend. Macd tell you trend, entry point, reversal point.

From only 3 indicators there are actually 11 information cramp into that small chart. Too much info and decision making is a hard job. Though i filter comments, no one has actually ask about the amount of information on chart. It seems people can accept 11 information at once. Can you manage 11 input at once and make a decision out of it??

Source for this Article www.Forex-King.blogspot.com

Forex is an Art

Posted: 15 Sep 2010 06:01 AM PDT

When you say trading, people will say trading is an art. Look at all the books that has been published on the subject. They will say the art of trading forex.

In that sense, we must take forex as an art and not a science. I know, some people may not agree with me and all the post that is in this blog. I don't blame them coz I was actually in the same place as they were when I started trading. Trying to find the answer to forex using every logical explanation.

This is the answer that you have been looking for. I am going to give it to you straight away. Let see if your mind can accept it.

Forex is not a science. There is not a single mathematical equation that can explain it. Do not forecast, do not predict, do not anticipate. All you need to do to make profit is to follow the market. If the price is going up, you buy. If the price is going down, u sell. You may not win all the time but if you follow the market, in the end you will be in profit. Make profit and build up your capital up to a point where a few winning trades per month will bring huge profit.

Can you accept it? Can you mind admit it? Is your logical mind challenged? Do you feel helpless? Welcome to the real world :)
 Source of this Article www.Forex-blogs.blogspot.com

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