In this lesson, we will talk about what we traders or investors concern the most-Forex Profit. Of course, everyone that enters an investment market expect to profit. No one buy an investment security in order to lose money. However, the cruel reality of the market is that someone is gaining money because another person is losing money.

For those who are new to the Forex market, knowing the fundamental philosophy and calculation of Forex trading profit is crucial.

Long and Short

The basic philosophy of profiting in any kind of security market is almost always to “buy low, sell high”. The Forex market is no different than other markets in this sense. Referring different status of buying and selling, people in the financial market uses the long position and the short position to express them.

Long Position

In Forex market, if you have bought a currency pair, you have entered into a long position. You bought because you believe that you were “buying low”, so you would be waiting for opportunity to “sell high”. And when that happens, you close the long position you were in.

Short Position

If Long is “buying low and selling high”, then Short is “selling high and buying low”. What is  the difference between these two?

It is the timing and order of buying and selling.

A short is selling before buying.

Yes, you can sell before you buy. You can sell without owning the stuff you just sold. In the financial market, it is common for people to short a security, they just borrow the security and s

ell it. Of course, if there is a demand, there will always be people willing to do it with a fee.

In Forex, a short to is to sell a currency pair (sell base currency and buy counter currency). And you wait for the price to go low enough so that you can buy back the pair. (i.e. selling high and buying low.) At that time you have closed your short position.

Square

Being Square or flat is when you have no position in the market. In this state, you have no risk because you are not holding a security or owing one. In a long, you can go flat buying selling what you bought. In a short, you can buy what you sold to square up.

Profit and Loss

Everyone who trades currency online trades with a margin account. A margin account requires you to deposit a sum of cash (deposit) so that you can control a bigger sum of money (margin deposit).
For example, if the leverage ratio is 100:1, then you can control a sum of $100,000 by depositing $1,000 as the margin deposit. So that you will be trading with the amount of $100,000!

What does this have to do with your Forex profit and loss? The brokers use a way to calculate your profit or loss and if your margin balance falls below a certain level, your broker has the right to close your positions without even noticing you!

The calculation of your margin balance = initial margin deposit + unrealized profit and loss + realized profit and loss
We will talk about realized and unrealized profit and loss in the next session.

The level of margin balance you have to maintain to prevent this from happening is usually denoted by a ratio which we call the margin ratio requirement. For typical small accounts, it is usually 100%.

This can be very dangerous when the market is going against you. Therefore, make sure you are clear about the margin requirements and liquidation policies of your broker. This is very different from other kind of margin-based equity trading where the brokers would issue margin calls. Your Forex account can just vaporize overnight without you realizing!

Unrealized and Realized Forex Trading Profit and Loss

So you have bought a currency pair. And just as you hoped, the price went up higher. At this point, if you sell immediately, you would gain some profit. But until you have really sold it, we call it unrealized profit.

Same for losses for other positions, until you close your positions, your profit and loss are considered unrealized and calculated with the market price at that point of time.

When you square up your positions, the profit and loss goes to your margin balance. These profit and loss are realized.

Forex prices fluctuate constantly, and hence your unrealized profit and loss and your margin balance.

Forex Pips Explained

Forex Pips or points are the smallest units of currency prices increase or decrease. Forex profit and loss are calculated in terms of number of pips. For some pairs, the norm is to trade in 1/10 pips or 0.5 pips.

Major currency pairs are usually quoted in 5 significant figures. For example, EUR/USD 1.3776

If it goes from 1.3776 to 1.3777, it has gone up by 1 pip. If it goes from 1.3776 to 1.3775, it has gone down by 1 pip.

For this pair and most other pairs, 1 pip equals 0.0001.

If you bought 10,000 EUR/USD and the pair went up for 1 pip, your unrealized profit equals 10,000 x 0.0001 = USD 1

Forex Profit and Loss are denominated in the base currency.

Remember,
if you are in a long position, price increase means profit while decrease means loss;
if you are in a short position, price decrease means profit while increase means loss.
These are all based on the “buy low, sell high” or “sell high, buy low” principle.

If you are trading non-US pairs, your profit and loss are still denominated in the base currency. So if your margin balance is in USD which is common, you need to convert the profit or loss back to USD with the exchange rate at the moment.

Forex Profit and Loss and Margin Requirement

The last thing you want to see for your margin account is that it falls below the required ratio and positions be liquidated by the brokerage. To prevent this from happening, we need to be clear with pips and profit and loss calculations so that the trade or position you are about to enter is not too big.

Always keep an eye on the price point at which your account would fall below the margin requirement. One of the most stupid but sadly common mistake a forex trading beginner could make is to set his stop-loss price below that price point. It will never reach the stop-loss, because the position will have been liquidated before it got there!

There are as many Forex sites on the internet as sand on a beach, however, almost all of them are used as either a marketing tool or simply as an article directory that publish articles with regurgitated information related to Forex. If you are looking for organized information which really teaches you systematically how to trade currency, you’ll probably feel frustrated after wasting an afternoon going from site to site that are filled with affiliate links.

Feeling the same way as you are, I decided to write a free online Forex day trading course that really provide good currency trading training. I research the subject personally using resources other than google so that what you find here is not something I just copied from some other sites. We all know that the internet is flooded with rubbish information “written” by internet marketers. I know you hate it, because I use the internet, too.

In this article, I’m going to give you an overview of what we will talk about. What will cover things from basics to advance. No useless talk.

First, we need to know what are currency pairs, what are long and short positions, how to calculate profit and loss and understanding price quotes of currencies.

Currency Pair

What currency trading really fascinates me is that you are actually selling money for money and buying money with money. The whole experience makes you really think about the whole monetary system in the modern society.

What actually is money?

It is simply a vehicle that carries buying power. It can be a piece of paper, stone or metal. In our world, money is quickly becoming purely digital. Money is just a number that exists only in our mind. So when we are trading currency, after all the operations, we need to store our buying power somewhere. And that is usually still one kind of currency. Therefore, we trade currencies by exchange one currency with another. We call this a “Currency Pair”.

Currency pairs are expressed with ISO (International Standardization Organization) codes.

Your first step to becoming a forex trading expert is to familiarize yourself with these common terms and nicknames of the currency pairs.

In this crazily chaotic world, US dollar is still the safest currency, therefore, most of the major currency pairs are U.S. Dollar pairs, i.e. involving US dollar on one side of the deal.

In contrast, currency pairs that do not involve US dollar are called “Cross-currency pairs” or “Crosses”.

Obviously, crosses are used to target specific currencies in case of significant news or events that affect the prices.

Base Currency/Counter Currency

So now you know currency pairs are denoted as GBP/JPY in case of sterling-yen, for example, what are the difference between the currency in the front (GBP) and the one in the back (JPY)?

The one written in the front in called the “base currency” while the one in the back are called the “counter currency” or “secondary currency”.

Traditionally, base currency is the stronger one compared to the counter currency.

The base currency is also the face amount of the trade. Remember, when you buy or sell a currency pair, you are buying one currency and sell another at the same time. So for example, if you buy 10,000 USD/JPY, you bought USD10,000 and sold equivalent amount in JPY. If you sell 10,000 USD/JPY, you sold USD10,000 and bought equivalent amount of JPY.

One last thing but definitely not the least, the PROFIT of a trade is denominated in the counter currency instead of the base currency. Of course, losses are denominated the same way, too.

So this is our first lesson in this forex trading course. See you in the next lesson in which we will be talking about profit and loss of a forex trade.

What is a Currency Trading Platform

Currency Trading Platforms are independent Forex dealers who have a certain credibility and capability. They provide bid ask prices of currencies to investors 24 hours a day, everyday except holidays. They are also responsible for take the buy sell request of investors. A currency trading platform itself are allowed to trade with other investors with its own capital. When there are scarce transactions in the market, a currency trading platform can act as the counter party to complete a transaction so that customers do not need to wait for a counter investor to appear. And by doing so, currency trading platforms maintain the liquidity of the market by promoting continuous flow of transactions.

How to Pick the Best Currency Trading Platform?

There are countless currency trading platform from different regions or countries existing in the Forex market. On the outside, they are all the same. But in fact, there are subtle differences which can mean a lot to your forex trading career. For forex trading beginners, it is dazzling to pick the best out of all the currency trading platforms. Forex Trading Systems Centre is committed to help forex beginners to succeed in the market. We are going to make it simpler for you to pick the most suitable one.

Common Selection Criteria of Currency Trading Platforms

First of all, let us review how average investors select a platform to work with:

Looking for a Bargain
These investors pick platforms that offer cheap packages and a lot of additional “benefits” like account setup bonuses.

Looking for Convenience
They look for currency trading platforms great support and services. For example, 24 hours free phone support, online forex forums and forex trading advices.

Passive Selection
This group of people pick whatever agents or friends recommend.

Independent Review
No careless blind follows. These investors research and compare different platforms all by themselves.

In a new emerging market, there are more type 1 investors. In Asia, perhaps due to cultural and regional reasons, there are more type 1,2 and 3 investors compared to US. But obviously, these are less wise methods to make an important choice like picking a currency trading platform. Together with the development the market, there are more careful type 4 investors. They do decisions objectively, asking wise questions. In selecting the best currency trading platform, there are two main focuses: First, the credibility of the agency. This is a question concerning the safety of your capital and the execution of your transaction commands. Second, technical capability of the platform. Is the platform stable? Is the currency exchange rates reported real time?

Credibility of a Currency Trading Platform

First, one of the most important evidence of credibility we look for, is whether there are independent regulators in the country of the currency trading platform. If there is, make sure you check the registration of the platform at the official regulator. Usually, the regulator is responsible of making related rules for the forex trading market that aim at controlling the dealers and protecting the rights of investors. Investors can check the condition of the platforms’ registration, customer complains if any or make a complaint on the website of the regulator.

Online Forex business begin in Europe and US around late 90’s. Different government treated the industry differently due to its high risk, highly speculative nature and the complexity of regulations. Some European countries and places like Japan and Hong Kong, began to accept the business and trying to regulate it. These include US, Britain, Australia, Canada, Japan and Hong Kong. The ways they did it are very different, however, they mainly regulate the forex market according to the regulations of securities and futures, adding additional guidelines and provisions when necessary.

Recommended Currency Trading Platforms

Easy-Forex
Full leverage on funds: Enabling 100% use of funds for leverage, no extra collateral
Leverage ratio: 1:50, 1:100, 1:200; plus special tailor-made leverage ratios.
Mini and various scope accounts; Special terms accounts: Yes
Minimum Initial Deposit: US$25.-
Minimum Transaction Size: US$5,000.-
Non-currency Forex products: Gold; Silver; Oil & other energy commodities
Quotes on wide selection of currencies: All main currencies
Fixed Spreads: 2-5pips
Upload account on-line: Yes

Currency Exchange Basics

Blessed is he who is poor in spirit. Same for beginners that want to learn how to trade forex. They must keep their patience and learn gradually. Never open a real trading account before you have real understanding and confidence in forex trading. Do not compare with others. Everyone has different learning curve and progress. In virtual demo trading, you can make yourself familiar with different operation strategies and conditions. When the probability of winning grow higher and higher day by day and your monthly profit increases every month, you are well on the way to opening your first real foreign currency trading account.

1. Currency Trading For Dummies: Never Risk What You Can’t Afford To Lose

It takes capital for all kinds of investment including forex trading. You should never use a sum of money that you need for living for forex trading and hope that it gives you a return. This is not investment. This is gambling. I have seen too many people deceiving themselves by calling what they do “investment” while in reality they are merely gambling. Many did not end pretty. The pressure of using a sum of money that you can’t afford to lose would leave you unable to make objective decisions and hence increasing your investment risk.

2. Forex Trading For Beginners: Get A Demo Account

This is a must do. Before you risk a dime of your money, get a demo account and practice with numbers. You can get a demo foreign currency trading account easily by doing a google search for forex brokers. Don’t compare with other traders. Focus on your own progress and do what you should do. The one thing absolutely critical for forex trading success is discipline. Make a schedule, decide how long you would practice everyday and stick with it. Monitor your progress by journaling your probability of winning and the account value. Before you notice, you have made a long way on your journey of becoming a great forex trader. Remember, even the biggest forex trader started as a beginner.

3.Basic of Currency Exchange Basics: Never Depend On Luck

When the number of your winning trades exceed the number of your losing ones and your account value is increasing constantly, you might feel very encouraged and think that you have finally grasped the key to forex trading. But don’t make this conclusion too quickly. If you lost $2,000 in 5 trades and make $3,000 in another one, although your account value increased, but that doesn’t mean that you have mastered the skills. You might just be lucky. Be cautious in all your decisions and continue to learn the basics of forex trading.

4.Intuition Without Currency Trading Strategies Is Putting Your Money At Risk

It is not enough to produce winning results in demo accounts, you need to understand forex basics and know the cause of producing winning trades. During your practice, you should aim at developing your personal profiting operation habits. Intuition is very important for investments. But Intuition without strategies is unacceptable and won’t get you anywhere.

5.Foreign Currency Trading Basics: Use Stop Loss

When you are burying your head inside the trades, don’t forget to set a stop loss range and use it to manage your risk so that you won’t suffer huge losses that kick you out of business. The range of stop loss should be determined with reference to the size of your found. Normally it is around 3-10%. When the amount of loss reaches the limit of your tolerance, close the position without regret. Keep yourself cool and do not find excuses to allow yourself go forward like a hopeless gambling addict. And even if the market turn the other way 5 minutes after you closed the position, don’t feel pity because you have get rid of the risk to lose all of your money. You must draft a trading strategy and follow it. You are the master of your trade, don’t become a slave of risk and adrenaline.

You should always control the amount of your trades according to your account value and avoid over-trading. For example, if your account value is less than $3,000, you should maintain only one open position at a time. If your account value is between $3,000 and $5,000, and unless you are very sure that the trend of the market is doing great for you, you shouldn’t maintain more than 2 open positions at a time. If you have $10,000 in your account, it is probably better to keep it under 3.

This is a rough idea of how many open positions to keep at one time. The idea is to estimate the risk you can take and formulate a trading strategy that works safely. Having too many openings at the same time is not good because it is easy to give rise to an uncontrollable loss.

6. Forex Basics: Learn To Consistently Execute Trading Strategies Without Excuse

One of the most devastating mistake you can make in forex trading is to find excuses to avoid closing a position and realizing the loss when you have reached your stop loss point in a trade. If you keep giving yourself false hope and excuse to wait for the market to turn, you would only expose yourself to unlimited loss.

The market is cruel. It won’t turn the other way just because some stupid guy is waiting for it to do that. You would eventually have to give up and close the position anyway, because it may go to a point where it scares you. But the sad part is by that time you already lost a substantial part of your capital. You cannot have too many this kind of experience before you will never come back to forex trading.

You center of this stupidity is clear-greed. Proverb says “So are the ways of every one that is greedy of gain; which taketh away the life of the owners thereof.” It is the worst thing you want to avoid, because it can make lose an amount that you cannot hope to recover and worse still, it would kill you confidence and strength.

You can avoid this kind of mistakes. That is to force yourself to obey the strategy you have set. Once the risk passes the decided region, don’t hesitate, close it.

7.Foreign Currency Trading Basics: Have Enough Money

This advice may sound trivial but it is extremely important. The smaller your account value, the higher the risk. A $1000 account cannot tolerate even one mistake, however, even the biggest forex trader in the world cannot completely avoid making wrong judgements sometimes.

8.All About Forex and Currency Trading: Learn From Mistakes

Mistakes are inevitable. Do not waste time blaming yourself. Treat your mistakes as opportunities to learn. Just like a Christian walking with the Lord Jesus. When we make a mistake, we admit it, repent, push delete and sign back up again. The faster you admit you mistakes, analyze them and learn from them, the faster you grow. Learn to control yourself. Don’t be led by emotions and feelings. Know that all traders learn from losses instead of wins. Understand the reason behind every loss trades and walk on the path of righteousness.

9.Renewing Your Forex Trading Concepts: The Greatest Enemy Is Yourself

The greatest enemy of a trader is his/her own greed, impatience, uncontrolled temper, carelessness, egotism. These bad personalities would induce bad trading decisions. Don’t open a position simply because you have nothing to do or you feel bored, instead, follow your strategies and identify profitable opportunities. Even if you only had one trade for 3 days, but that trade brought you handsome profits, it means that you have made a good decision. This takes great patience.

10.Best Forex Trading Education: Journaling Every Reason For Your Trades

For whosoever hath, to him shall be given, and he shall have more abundance: but whosoever hath not, from him shall be taken away even that he hath. If you treasure what you have learnt, you will learn even more quickly. If you don’t, what you think you know would slip through your fingers without even you noticing.

Journaling is one of the action that indicates that you are treasuring what you have learnt. Everyday, take detail record of the causes that give rise to a particular result. Were there any incidents or information that pushed you towards your decision? And what was the profit or loss of that trade? Analyze the situation and ask yourself “what can I learn from this experience?”

You experience will become your best teacher. Next time when the similar situation comes up, your journal will help you make the right decision quickly. And the losing experiences will tell you how to avoid the same kind of mistakes to happen again. I suggest keeping a digital journal, because you can use things like search function to help find what you need to refer to quickly.

11.Learn Forex Day Trading From The Masters: Refer To Experiences Of Others

Your trading decisions should be based on your own interpretation and feeling about the market, but there is great value to look at others’ opinions, too. If your analysis is the same as another seasoned trader, good. But on the other hand, if they differ from each other, you don’t have to panic right away. Look at the reasoning of his/her interpretation and try to compare it with yours objectively. If you are still very confident about your own decision, go for it! If it wins, it wins. If it doesn’t, you learn from mistakes. Either way you come out on the top!

12. Go With The Flow, Not Against It

Get this ancient investment principle on your heart: end losing positions as quickly as possible, prolong profiting positions as long as possible. Another important principle is that never let a winning position to become a losing one. In the case of sudden turn over, choose to close the position without profit instead of allowing it to go negative hoping it would turn around again. All these are base on a wisdom: flow with the current.

13. Never Try To Recover By Trading In A Rush

When you face a loss, keep cool. Don’t let go of your rationality and rush to recover yourself by opening new positions. For most of the time, this would only make things worse. Think about it, if you close a losing position and open a new one immediately after, you are implying that your original forecast and decision were completely incorrect. Do not try to play guessing games with the market. It is always better to miss a supposing profitable opportunity than producing real losses.

14. Best Forex Trading Education: Learn Step By Step, Never Try to Run Before You Can Even Walk

With a humble attitude, refine your trading skills in demo accounts. When your technique becomes more mature and your profit keeps increasing consistently, you decide to enter the real market and try the real thing. But then you will notice the difference between the virtual and the real. It is like a samurai sword fight. You practice with a wooden sword. You familiarize yourself with the skills and feeling of fighting with a wooden sword. But when you fight someone with a real sword, you will suddenly feel that it is a whole different ball game. Suddenly it is a matter of life or death.

You don’t need to risk life in forex trading, but the pressure is just as great. In a demo account, you trade with a risky shift because you know that it is fake. Not a dime of your money is risked. Even if you win the champion in a virtual trading contest, it doesn’t necessarily guarantee that you will do as well in a real account. There is something about forex trading you can only learn when you are trading with your real money. Keep yourself humble, for there is grace for the humble.

15. Do Virtual Trading As If It Is Real

Do virtual trading like it is real. The more you engage yourself in the practice with real seriousness, the quicker you can develop suitable skills and habits that work in the real world. Convince yourself that you are working with a real fund and constantly reviewing whether what you are doing can be done in a real account with real money.

16. Avoid High Volatility During Virtual Operation

Forex trading beginners should avoid time period that fluctuate vigorously and unpredictable. One of these occasions is a New York Sunday night. It is Monday morning in Asia. During this period, currency prices fluctuate and are very difficult to anticipate the changes. Another unpredictable time period is New York Friday, especially during morning. On this day, many people in the market are trying to handle all the trades of the week which may give rise to very unexpected fluctuations. Also, considering the current unstable US economy, many people would consider selling US dollar. If you start learning foreign currency trading, you would feel more confused and less likely to build up a healthy confidence.

17. Practice With Demo Account At A Regular Hour Everyday

At the beginning of your forex trading life, you should fix a time at the same hour everyday to practice virtual trading. This will help you grasp the behavior of different currencies. During different hours of the day, a foreign currency would have a particular kind of behavior. It is very difficult to understand the different condition of changes. Fix time operations would make it easier for you to figure out the up down tendency of a particular currency. Before and after your daily trading session, read forex news and all kinds of information that affects the market, in order to help you make sound trading decisions.

Conclusion

It is difficult for businessmen to succeed in the business world, it is even more difficult for a forex trader to achieve success. Forex trading is not for the lazy. But if you are determined in this aspect, make up your mind and pursue it with diligence, humility and faith. You will reap what you have sowed in due time.

What is auto forex trading?

Forex Trading has evolved quite a bit over the history of mankind. It started from primitive hand to hand exchanging of bills, to telephone deals and to the instant online forex trading nowadays. I’ve seen people marking prices on blackboards with chalk and drawing simple “XO” charts. In contrary, now trend lines, MACD, RSI and countless other technical analysis tools appear on the screen with a click. Undoubtedly, computer is a very important changing force behind that shaped the trading and analysis of the forex market.

Automatic forex trading system is a complete trading system that is capable of recognizing the market, carrying out trades and deciding the entry and exit points of a transaction.

In May 1997, Deep Blue Supercomupter triumphed over the reigning World Chess Chmapion, Garry Kasparov. In 1991, The US army won the Gulf War by using large amount of computer simulations on strategies and tactics. Auto trading systems are of the same essence.

It sounds too good to be true for a software to exist that actually earn money automatically for you. Everyone like you and me wants to ask one question: Do forex automatic trading robots really work?

How does forex auto trading work?

Forex automatic trading systems can be categorized into two big groups: Arbitrage and Nonarbitrage. Arbitrage means capturing profit by manipulating the difference between two brokers. For me, I’m more interested in Nonarbitrage autotrade forex systems which require higher level of technical knowledge.

Nonarbitrage programs normally use historical data to analyze the market and identify technical indicators to determine buy sell decisions. For example, a trader who believes in moving average index can write a program that send out buying signals whenever the ten day moving average intercept with the twenty day one. The program must also take care of the data and variables after opening a position, like stop loss and stop win. Of course, in reality, it is much more complicated because the trader would have to consider many more technical indicators and combine the effects to make a decision. Here is problem: the number of technical indicators together with their combinations is more the number of stars in the sky. And I have not mention fine tuning all their parameters yet!

What are the adventages of forex automated trading?

The biggest adantage of forex automatic trading is probably discipline. The trading system make clear buy sell decisions all by itself mechanically. There is no human judgment and, hence, not affected by subjective emotions or other unstable psychological factors. And most systems consist of a stop loss algorithm which can effectively control the risk within tolerable range.  This kind of auto trading can also be applied on different currencies and even other financial vehicles like stocks and futures.

The disadventages of using automated forex system trading robots

Robot is robot.  Although it can do mechanical works for human, it can never do it one hundred percent like a man does it.  Forex system trading robots cannot ensure one hundred percent accuracy either.  When wrong decisions are made, the only option left is to stop the loss.  There are so many possible technical indicators and combinations; it is an enormous task to find an efficient program that works for long term.  Besides technical analysis, there are many other factors that affect foreign exchange market like wars and natural disasters.  There is no way for computers to forecast these factors and take them all into consideration.  Even if you can find an effective program that works for long term, you have to keep updating it and fine turning it continuously because of the changes that will always happen and change the environment of the market.

Final Thoughts on obtaining forex trading success

After all, computer auto trading system is a computer program.  In the center of a computer program is an algorithm which are produced by the logical thinking of the programmer.  Before a perfect auto forex trading system exists, there must be a perfect forex trading strategy in the first place.  Therefore, the key is still in the head of the trader and not the program.  Do not think that you can succeed in the forex market using a robot without a thorough understanding of forex trading strategies. It’s a good idea to read more forex trading systems blog where people share their experience using the systems.

The foreign exchange market commonly called the Forex market is a world wide market where currencies are traded with each other. In the Forex market you can exchange a particular currency for another when the price of this particular currency is low. When the price rises again you can exchange it back. This is how you can make money in this market. With the excess cash that you make from trading in the market you can consider do not have the adequate finances.

Thus if you are burdened with a lot of debt, then you can invest in the Forex market and earn profits with which you can pay off your debts. Some of the advantages of investing in the Forex market are as follows.

1. You can start with a small investment: When you are in debt and do not have the adequate finances to pay your creditors, you will not have much to invest as well. One of the most important advantages of Forex trading is that you can invest a very small amount and make profits. In most places abundant capital is required to ensure that you make profits, however, in case of the Forex trading market you can start with very little. When you are in debt and are considering debt reduction, investing in the Forex market is a better option than any other investment as you can start with very little. You can pay off your debts with the profits that you make.

2. You can trade anywhere: Forex trading can be done anywhere as the brokers offer online trading. This implies that you can work from where ever you like. The only thing that you need is the internet facility. You can make investments in the Forex market even if you are away on holidays. You can also buy or sell even while you are at work. Thus, you carry on with your job and are also able to make money by investing in the Forex market. The extra money that you earn by investing can be used for debt reduction.

3. You can trade anytime: The Forex market is open 24 hours a day unlike other trading markets. Thus, you can trade at anytime of the day. If you are doing a regular job, you can trade after your work hours. Flexibility of time ensures that you can make the best out of the benefits of the market.

4. You can easily predict price movements: There may be a lot of fluctuations in the price of currencies but they always follow a predictable pattern. When prices in the Forex market rise or fall trends are created. Thus, if you use technical methods and strategies you can gain huge profits by investing in the Forex market. You should know that more than 80% of the trading is speculative in nature. Thus, you have greater surety of earning profits than in any other market as you can study the trends and then invest.

These are a few of the advantages of investing in the Forex market. So, if you are in debt, then you can invest and make huge profits that can be used to reduce your debts.

The US Government requires companies to disclose the underlying risk of their investment products. The commodity and futures trading in the Commodity Futures Trading Commission has enormous profit potential, but at the same time bears enormous risk. When you decide to trade commodity and futures, you must understand the sources of risk and be willing to accept them. You should never trade with a sum of money that you can’t afford to lose. The Fapturbo is not released as a support or invitation to buy or sell commodity or futures. You should understand that the past performance of any forex trading systems does not represent their future profit. So when you see all the hype in the selling pages and the tremendous victories people had with FAPturbo, do not be overly excited and know that all of those do not mean that you can get the same result.

Forex trading is a very risky form of investment and is not entirely suitable for all investors. In the process of forex trading, usually high leverage ratio is used. Once again you should never trade with a sum of money you cannot afford to lose. Before you decide to trade forex, you must carefully consider your investment objective, your level of investment experience and your ability to handle the risk involved. Besides you must acknowledge all the risk involved. If possible, I suggest you to get professional advice from independent financial consultants. The market is ever evolving. No two moments are exactly the same. Therefore, past results does not necessarily indicate your future success. No forex trading systems can give you guarantee on profits. No matter how much backtesting you have done, there is always a probability of losing in actual tradings. In the end, the only person who will be responsible for any loss you suffer is yourself.

The key to successful Forex Trading is good asset management and risk control. The reason why we use Forex Trading Systems or robots to do automatic trading is not because we believe that they can predict the future but that they can help prevent human mistakes. A robot is perfect is discipline because all it does is following what it is told to do. And that is exactly what is needed for long-term steady victory in the Forex market.

Human beings are instinctive and greedy. When we look at a trade, if we sense that it gives a good feeling, most would tend to bet more. And that’s the problem of most Forex investors and that’s why most investors lose money in the market. For people who use robots to trade, if you often intervene with the robot just because you feel good about a certain situation, than it’s better for you to skip the whole idea of auto trading.

In conclusion, we must take good care of our money by following strictly to our protocol. This is the key to gaining steadily and to survive the Forex market well and beyond.

I suggest people to adjust the risk control level of each trade to between 1%~2% of the total asset. Take US$5,000 as an example. The 1% of 5000 US Dollars is 50 US Dollars. This $50 is the maximum amount allowed to be lost (the risk). For example, we set the affordable risk in one transaction to be 50 pips. $50 divided by 50 equals $1. Therefore, $5000 of total assets and 1% risk control would make 1 pip of lost $1.

One pip represents the smallest price change in Forex trading which is in points of percentage. In the Forex Trading market, usually prices are quoted to the nearest 4 decimal places. E.g. EUR/USD is bid at 1.1909 and offered at 1.1913 then the spread is 4 pips wide. I said usually because Japanese Yen is quoted to 2 decimal places only.

A standard lot requires US$1000 which is leveraged at 100:1 to allow US$100,000 to be controlled. A mini lot requires US$100 which is leveraged at 100:1 to give $10,000 base currency.

In FAP Turbo, there are two kinds of assets control, manual or auto. We recommend using Auto mode, because it can adjust according to the amount of account assets. The amount of trade as well as the gain or loss of every trade would change the account value, because guarantee is required for every trade.

For FAP Turbo to control the money, it must be allowed to adjust two factors. The first one is Scalper_UseMM which should be turned on. MM stands for money management. The second one is Scalper_LotsRiskReductor or LRR for short. This is the risk control level we set, like 1 for 1% of risk.

EA Shark has a tested accuracy of around 88% which is not as accurate as MegaDroid. However, it trades in similar manner as the MegaDroid and good pretty good result in long term conditions. It gets in and out of trades usually within 2-3 hours. Account would be left in drawdown normally. On average, EA Shark trades more often than other robots, with 88% accuracy, we would say this is a pretty good one.

Same as Forex Autopilot, the service response comes quite slowly, at least it feels that way, especially when you have your money risking at the month of the Shark. Nevertheless, they do have a support hotline and email support that are answered by real people. One of the biggest drawbacks we think is that the purchase does not guarantee a refund. Nowadays online products are almost 100% refundable. We don’t know what their marketing strategy is but they chose that way. Maybe that’s why they put up so many live trading results on their sales page.

The setup of EA Shark is easy. We got it done in 5 minutes. It comes with instructional documents too. As long as you have some sort of forex trading experiences, that would be rather straightforward. Again you should always back test your settings before betting real money and avoid days around big events like significant news or holidays.

EA Shark trades Euro US dollar pairs. It refers to a number of famous indicators including the moving average convergence divergence, a complicated stochastic model, momentum and stop and reverse. One thing that may sound trivial but important is that it does use stop loss. Some robots out there create “no loss” result simply but preventing itself from closing a lost trade. That way it would never really lose but that severely undermine the user’s capital.

We run a robot comparison on several popular forex trading robots over a period of one and a half years and found that EA shark did not give a result as effective as other competitors but the kind of no-big-fall steady growing trend is pretty promising. And as we saw from the long term back test run by the owner, long term performance of EA Shark can be very versatile.

In 2009 April, EA Shark 5.0 is released which has good improve on the accuracy making EA Shark an even better EA product.

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