Trade Like a Forex Time Machine

Forex Trading Strategy
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Emini Trading – The Trading Learning Curve

I sometimes get the questions from people interested in trading emini futures for a living about what basically amounts to asking about the length of the trading learning curve.

Here is the answer that I gave one or two of these fellows when I really thought that it was the best and most honest answer taking into account not only the very question but other things they mentioned in their emails: “if you need to ask this question, you don’t have what it takes to make it as a day trader.”

Yes, I know that there are vendors out there who would want you to believe that you can become a trading champ overnight or something to this effect, except that they are plainly dishonest because how exactly would they really know it? No one can know how long it will take you to master day trading. One can only talk about some approximate range, and it’s a pretty wide range. From my experience with many of my students, it is from days (in exceptional cases of people who are well prepared and smart) to weeks and months, even years in some cases. This depends on many factors, and hence how long it takes in individual cases is, on the whole, unpredictable.

If you cannot accept it, then what this tells me is that you cannot accept uncertainty, and hence you are a poor candidate for trading because trading is essentially about handling uncertainty or the risk that comes with it.

And then there is another issue that should be rather easy to understand for every thinking person: your learning curve never really ends. You learn all your life as you should if you want to stay competitive in your field, and the more competitive this field is, the more you need to learn. Day trading, especially day trading highly leveraged markets such as emini futures, is one of the most competitive fields you will ever enter.

But that does mean that you need to keep on trying new things all the time. I don’t think this is really necessary. You may stay within the same framework, and I think this is even much more advisable than the alternative option. What this rather means is that if you are not willing to better yourself as a trader, not willing to perfect your trading, not willing to learn new tricks and study things on your own and practice as much as you can, you may find that your trading becomes rustier and rustier.

I have been trading emini futures for about 9 years now and even if more than half of this period I have spent trading the same methodology, I continued learning all this time. In fact, I believe that in the last four years I have progressed more as a trader than in the first four. I realize that this may sound strange to those who think that there is some definite learning curve, but as this example illustrates, there just isn’t.

There is yet another issue that my experience points to. Namely, that those who after two or so years of trading think they are as good as traders as they ever will become are most likely wrong. What’s worse, believing so may interfere with their growth as traders.

So don’t ask a vendor about the learning curve of the trading course he markets unless you want to find out if he is an honest man. Because if his answer is that it’s short or anything definite and optimistic of this kind, then it’s a sure sign you are dealing with a guy who wants to sell you something desperately and so may be tempted to employ “advertising shortcuts,” to put it euphemistically.

The proper and honest answer is that it varies, but if you want to become a person who trades for a living, the answer is that it ends with your trading career.

What Is The Forex Market?

The foreign exchange market – Forex or FX is the leading liquid financial market with over $3.2 trillion trade volumes, daily. Trading world currencies for profits is the sole objective of the Forex market. The profit yield is high, so is the risk. Investors can participate across the global markets either individually or with the help of a broker.

With the introduction of free exchange rates and floating currencies, the notion of Forex trading was born in the 1970s. Initially, only banks could transact on Forex, today, any individual keen to earn surplus cash can enter the markets. The market thrives on the supply and demand concept, and investors own the exclusive rights to determine the price of currencies, as the market is not controlled by any exchange like NYSE.

The advent of the Internet has made the approach to Forex market more convenient and comfortable. Meanwhile, the technology has automated the process of trading, resulting in increased profits. However, a thorough knowledge of the market is essential for climbing the growth chart.

Jargon:

An investor must be aware of the following terms.

A ton of money – The Bureau of Engraving and Printing identifies the term “a ton of money” equivalent to $908,000. You are a millionaire if you earn a ton of money!

Gold Standard – It defines the exchange rate of currencies, and reflects the monetary difference for one ounce of gold between two currencies. The term had been used from 1875 to 1914 and during the growth periods between the world wars.

Fundamentals of Trading:

Prior participating in the Forex market, investors must possess an in-depth knowledge on the subject matter – currency trading. Learn how the market fluctuates. Study the factors/trends that dominate the fluctuations. Since, the market is open for trade round the clock, often it becomes a cumbersome process to participate in trade during the night or wee hours of morning. Is there a way to earn profits during these awkward hours? An automated Forex trading system/robot is the best solution to your dilemma. Robust, reliable and time-tested software can help you optimize profits by gauging the market rise and fall, and placing profitable trades in your absence.

Whether you’re a pro or beginner, market can be aggressive, and trading tips from a seasoned foreign exchange broker is a tremendous help. Seeking the services of a trustworthy broker enables you to climb the ladder of success faster than transacting alone. A quick customer support, wider and competitive spreads, and certified broker should be your yardstick.

With all the knowledge, automated system in place and assistance of a reputed broker, you are on your way to make surplus profits, in a market that’s live 24/7, 365 days a year. So, what are you waiting for?

Regulated forex broker for Safe and Secure Trading

When one really wants to have big profits in the foreign exchange market that is now exploding all over the world, one should be able to make sure first that any invested fund will never be used for needs other than the trading. It means that one should make sure first that the safety and security aspect of one’s effort are of the top level. For this, the resources that one is going to use should be reliable. After the basic knowledge of the relatively new market had been obtained and gave sufficient for making a start, the next thing to be ensured is that the payment system is of the most convenient as possible. Fortunately, there are online-based fund management account providers that are widely available, like e-Wallet and PayPal.

With the online fund management account had been ensured, a trader can have more relax stance since the trader needs only to choose the right forex broker and start to participate in the competition. But this is where tricky stage lies. Not all of the firms are able to give the best security and safety for the traders. To have a firm that really guarantees these two important aspects, a trader should be able to find only the regulated firms. By regulated it means that the firm is enrolled in a membership in an authority organization related to the business. Although one enrollment is sufficient to consider the firm to be healthy, enrollment in two or more authority organizations can give more assurance for the trader. With the regulated firms, a client needs not to be worry about the client’s deposit. This is because the firm is subject to detailed documentation over the deposit, transactions, disputes and regular reporting to the authority in which the firm enrolled in. This way the firm is accountable and transparent which can be greatly help in times of negative relation between the client and the firm.

The most obvious security feature of a regulated firm is that the deposits of the clients are managed in separate booking by the regulated firm. Thus a client can be sure that the client’s deposit is always available when the client needs it for making a movement in the market. The client can be sure too that the firm will not use any of the deposit for financing the day to day technical operation of the firm.