Currency Trading Systems - This Ones Totally Free Has Made Millions and is Enclosed!

by K Price

If you want a free currency trading system, that is extremely simple to understand, has a track record stretching back over 25 years and works, you will find it and the rules of operation enclosed...

There are of course lots of currency trading systems sold online - but most in real life disappoint users, because the track record presented is a back tested simulation and most are curve fitted.

The Dangers of Simulation

What curve fitting means is the vendor simply buys and sells in hindsight and bends his system to make a profit on a past segment of data history. Of course, as no two data segments ever repeat exactly the system collapses and losses in real time trading.

The one we are going to look at has worked for a quarter of a century and will continue to work, as long as markets trend. Let's take a look at it.

Real Profits for over 25 Years

The system was originally designed to trade commodities by Richard Donchian who is considered the grandfather of modern trend following and his system is a simple breakout system based on a 4 week cycle.

It only has one rule to consider and it gives this currency trading system its name - the 4 Week Rule. Here is the rule.

The System Rule

When prices make a new 4 week high buy and then hold the position. When a 4 week low is made liquidate the long trade and take a short and keep reversing the position on each new 4 week high and low and always hold a position in the market.

That's the rule - it's totally objective, you don't need to make any subjective judgement and its simple and it works - here's why.

Why the System Works

If you look at any forex chart you will notice that most new trends start and continue from new market highs or lows and these trends can last for months or even years. These long term trends, are a reflection of the underlying economic cycle of the country they represent which last a long time and so do the currency trends that reflect them.

This system will get you into and keep you in all the long term trends. In essence this is a simple forex trading breakout system and as long as markets continue to trend, it will work.

Using the System

It's a long term forex trading system and will take losses when markets don't trend but these losses will be more than compensated for when they do but you can also add a filter and exit on a shorter time frame say, 1 or 2 week low. Then go flat until the next 4 week signal. Either way, it will make money longer term - but this filter will smooth the equity curve.

Despite this systems proven track record, most traders won't use it for the following reasons.

1. They think it's too simple - Well maybe but that's an advantage in currency trading! They like the comfort of complexity but in the market it won't help you make money - simple is best.

2. It's not based on flavour of the month or far out theories such as, Neural networks, Fibonacci, or artificial intelligence - but that doesn't matter it works!

3. It's to long term and most traders don't have the discipline to trade and hold long term trends but holding long term trends is the way to make money!

4. No fancy name and packaging. The simulated forex trading systems have these names that insinuate they will clean up in Forex and great copy but that's no help without a real time track record.

A Simple Time efficient System for Big Gains

This currency trading system has been used by savvy traders for 25 years and been at the heart of many a great Forex Trading strategy. If you are interested in making money long term, it's a system that will deliver big gains and it's free.

Take a look at the 4 Week Rule and you will have a solid system you can apply in 15 minutes a day that piles up big long term gains and can give you currency trading success.



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Forex Trading Forecasting - Mathematical Order in the Market and How to Profit From I

Forex Trading Forecasting - Mathematical Order in the Market and How to Profit From It

By: kelly Price
There are many trading theories which believe in mathematical order in the market and you can predict the future. Human nature is constant and therefore if you know the law of market movement you can make money but what are the best scientific theories?

The three major ones are those based on Gann and Elliot wave and the Fibonacci number sequence.

They all claim to be scientific but to be a scientific theory, they must conform to the following:

- Be totally objective with a set of rules to follow

- Work all the time.

This is the definition of a scientific theory and none of the above are.

Gann and Elliot wave are totally subjective and while you get various levels you can buy or sell to with Fibonacci, they certainly don't work every time!

Markets are not scientific and while human nature is constant, it cannot be predicted with scientific accuracy and that's a fact.

This is why all the scientific theories and complex computers today have not increased the amount of winners. Indeed, if a scientific theory did work we would have no market, as everyone would know the price in advance.

How to Win Without Science

A great book which any speculator can learn from is the Zurich Axioms.

This book devised a set of rules which a group of Swiss bankers, who used them to get rich and it lays out a number of rules and principles for speculators to follow and one of them is on forecasts which is very true.

"Human behavior cannot be predicted. Distrust anyone who claims to know the future, however dimly". As the books points out if astrologers were always right they would all be rich and there not. Predicting markets is actually doomed to failure just like astrology and the book makes clear:

"Do not look for order where order does not exist." And the book goes on...

"The Historian's trap is a particular kind of orderly illusion. It is based on the age-old but entirely unwarranted belief that history repeats itself. People who hold this belief - which is to say perhaps ninety-nine out of every hundred people on earth - believe as a corollary proposition that the orderly repetition of history allows for accurate forecasting in certain situations.... Don't fall into this trap. It is true that history repeats itself sometimes, but most often it doesn't, and in any case it never does so in a reliable enough way that you can prudently bet money on it".

In hindsight you can prove anything and this is known as the chartist illusion

"Beware the chartist's illusion - it is characteristic of human minds to perceive links of cause and effect where none exist"

You can of course when you have all the facts at your disposal see things as orderly when there not.

Traders do this all the time - they test rules and parameters over a section of data and bend rules to fit it and think it will work in real life but of course the exact data sequence never repeats again and they lose.

Ever wonder why all those forex robots sold online, never make money in real life - despite having great track records?

The answer is the track record is a simulation backwards which appears logical- but when it's traded going forward, it collapses.

Why You Can Make Money

Despite the fact markets don't move to science you can still make money from them, if you see them as an odds game.

If you took a game of poker as an example of an odds game and talk to the best poker players, they know they are not going to win every hand - but they are confident of winning longer term. Why?

Because they know that if they bet on high odds hands and fold or pass by low odds hands, they will win longer term.

If you take trading forex who are some of the top traders in the world?

You guessed it - poker players!

So forget about predicting and science, see forex as an odds game and trade the reality of price change sure you wont win every trade but you will win more than you lose and this can mean huge profits.

Don't look for perfection look to make money.

About the author:

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Forex Brokers- How do I Find The Right One?

Author: Ray Caran

As in any other market there are a multitude of brokers to choose.

Points to evaluate:

Low Spreads - The spread, calculated in "pips", is the difference between the price at which a currency can be purchased and the price at which it can be sold at any given point in time. You should know that Forex brokers don't charge a commission, so this difference is how they make money. In comparing various brokers, you will find that the difference in spreads in Forex is as large a spread as you would find in the stock market.

To keep more of your profits keep the spread lower.

Quality Institution - Forex brokers are usually tied to large banks or lending institutions because of the large amounts of capital required. Forex brokers should be registered with the Futures Commission Merchant (FCM) and regulated by the Commodity Futures Trading Commission (CFTC). You will find this important information on the website of its parent company.

Make sure your broker is backed by a well known and stable institution.

Tools and Research - Forex brokers offer a multitude of trading platforms for their clients. Before committing to your chosen broker, be sure to request free trials to test different trading platforms.

Find a broker who will give you the correct tools you need to succeed!

Questions to ask your prospective broker:

What are the normal spreads?

Are the spreads fixed or do they vary?

Do the spreads differ depending on ticket size?

Do all clients on your platform get the same spreads?

Some types of transactions

Margin Trading
Margin means borrowing money from a broker to buy a stock, or commodity, or currency pair and using the investment as collateral. It is, to all intents and purposes, a performance bond in cash or another means of security deposited by a trader.

Barriers
This is a standard option that automatically cancels out if spot trades through a prearranged knock-out level. This level is set below the initial spot for a call option, and above spot for a put.

Reversals
Reversals are primarily a Floor Trader strategy used to capitalize on minor price discrepancies between calls and puts. As implied by its name, reversals are the exact opposites of conversions.

Types of brokers

Market Operators

This most reliable group includes big commercial banks which are regulated according to bank laws and rules. If you elect to deal with such banks you will need large amounts of money to start. Minimal lot is approximately $1, 000, 000.

Market-makers

Market makers are financial which work with smaller broker companies and offer probable opportunities of Forex trading to individuals whose trading capitals exceed $50,000. They offer lower cost of Forex market trading. The minimal size of the bill is $50,000.

Small brokers

Smaller brokers working with individuals' small capital - which ranges from hundreds up to several thousand dollars. Risks of carrying out of deals begin when these little broker enterprises clear orders of their clients and work with the dealer or a market-maker.

Kitchens

The scheme of "kitchen" works fine if somebody doesn't start to win all the time. Their founders know that many clients just lose their money. And the profit of "kitchen" is these clients' losses. Then "kitchen" is closed with the remnants of clients' money and about two months later appear under other name. The scheme usually works like that. They offer to teach you for free and to learn how to trade in Forex market. Be aware that anytime money is involved, some one will try to help themselves to it.

Hopefully, I have helped to whet your appetite for Forex Trading.

There are some amazing Forex Trading Autopilot programs available. Do your research.

Article Source: http://www.articlesbase.com/finance-articles/forex-brokers-how-do-i-find-the-right-one-455290.html

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