Trading education » Robots

Learn Stock Trading Or Use a Stock Trading Robot? – Which is Best For Stock Trading Success?

admin — Thu, 08 Apr 2010 16:30:20 +0000

Many people are now flocking to trade in the stock market. The ease and convenience of online trading has made it simple for individuals to trade from the comfort of their own home or office. With so many new advances in trading technology many beginners find it difficult to know where to start.

There is no reason why a beginning trader could not learn stock trading and use a Stock trading robot. It should go without saying that it’s logical to learn stock trading if you do expect to profit. It would also be great to be able to use a completely automated robot that will make the trading decisions as well as place the trades for you.

Trading using a robot sounds like a dream come true to many. In reality really is a dream come true, but the challenge is finding a robot that actually will be profitable in the future.

Beginning traders need to exercise caution when considering using a trading robot. It is very easy to become mesmerized by the technology and automation. Levels of sophisticated automation should never overshadow a trader’s primary goal. That primary goal is to trade stocks profitably. Regardless of how sophisticated a robot may be it will be a waste of time if it cannot perform profitably. The challenge with most robots is that they were designed using past stock market data. They were also evaluated on their performance in past market conditions. It should be noted that this does not necessarily translate into how well the robot may function in the future.

Those starting out are devised to build a solid foundation and learn stock trading. With this solid foundation traders can grow and adapt to the ever changing market conditions. It is less likely stock trading robot will be able to do so.

By: Carl G. Robertts

Forex Trading Myths – The Biggest 3 of All That Cause Losses

admin — Mon, 05 Apr 2010 06:49:19 +0000

There are lots of Forex trading myths and here we will cover the biggest 3 of all that cause the majority of novice traders to lose their money…

Here they are in no particular order of importance – there all important!

1. You can Follow others

Most traders think they can follow a system with a simulated track record from a vendor and make money and Forex Robots and predictive systems are heavily sold online. The gains they present, are fantasy land and based upon back tests knowing the closing prices or in simple terms made up. I wouldnt trust a system with a simulated track record as it proves nothing and neither should you.

Even if you do find a good system to follow which has made real gains, you still need to get the right Forex education, to have confidence in the system, to follow it through periods of losses with discipline. Following a system when it losses is hard and that leads me onto the next point.

2. Not Expecting Drawdown or Losses

Many traders believe the myth that you can trade with 80% accuracy, predict prices and never have more than the occasional loss – but this is another fantasy perpetrated by vendors of simulated systems.

All the best trading systems win long term but have losses which can last for up to several weeks in the short term. You need to be mentally prepared for these and stay on course, until you hit profits again and this needs tremendous mental discipline which is based upon confidence and inner understanding.

3. Forex Trading is Easy

95% of traders lose and it’s not yet, most traders think they can simply turn up and win and assume working hard, using a complex trading system or being intelligent guarantees success. In Everyday life this is true – but not in Forex.

You wouldn’t expect Forex trading to be easy, with the rewards on offer – you need special skills they can all be learned and now for the good news:

How to Win

The way to win in Forex trading is to understand the keys to success are: A simple system, you have learned, understand, have confidence in and can apply with discipline, to seek long term gains. It’s a combination of mindset and method and you need to understand that you need to lose short term and keep your losses small, to win long term and stay on course.

The myths that you simply make money with no effort by following others, will have no losses and it’s easy to make money, leave traders unprepared for the reality of the brutal world of trading.

If however you understand this article and you can see through the myths and know what is required to win, no other venture will reward you with such fantastic gains for your effort.

By: Kelly Price

Currency Trading Tutorial – Getting Started in Currency Trading

admin — Sun, 28 Mar 2010 11:13:02 +0000

This is a concise currency trading tutorial, which will give you all you need to get started in currency trading and develop a trading system for triple digit annual gains…

The first point you need to keep in mind is 95% of traders lose and only 5% win. While anyone has the ability to learn currency trading and win, most lose.

So what separates out the winners from the losers?

The real difference is mindset and currency trading is really 20% method and 80% mindset and some explanation will make this clearer.

Discipline and Self Control

Anyone can learn a forex trading system but the key to success is, executing it with discipline when you are losing. It’s not easy to keep putting in your trading signals, while the market hands you losses and makes you look a fool. You need to be disciplined until you hit a home run.

You only get discipline from confidence and understanding.

This means, learning currency trading basics, on how and why prices move and getting the right forex education. You can then build a simple currency trading system.

Sheep Get Slaughtered

The traders who act like sheep and try and follow others, by buying forex robots or gurus and mentors never win.

Most of the forex advice just mentioned, is poor and even the minority which is good, a trader who doesn’t understand the markets will never have the discipline to follow it.

You must accept success is on your shoulders and comes from within – NOT someone else!

You must understand what you are doing and why it will be successful and this point cannot be stressed enough.

Getting a Simple System For Huge Profits

Any currency trading system that is successful is simple!

Many traders think the more complicated they make their system, the better the chances of it being successful – but this is simply not true.

Simple systems work best and always have as they have fewer elements to break in the volatile and brutal world of currency trading.

A simple long term breakout system, with a few confirming momentum indicators, is all you need and we have covered how to build one in simple steps in our other articles, so look them up.

Why Anyone Can Win

Its because currency trading is a learned skill – you just need to work smart and learn the right forex education and have the right mindset and now I want to tell you a story to inspire you…

Richard Dennis decided to prove anyone could learn to trade so he picked a group of people of all ages, both sexes and of varying levels of intelligence. The varied in occupation from a security guard to an actor and Dennis set about teaching them.

In 14 days they had completed their trading education and went on to trade, they quickly went on to make $100 million dollars and go down as trading legends.

So why did this group do so well?

They had a good teacher for sure – but he only taught them a simple trading system.

The key element he gave them was the confidence and discipline to apply it for themselves and in later interviews, many of the traders said:

Learning the system was the easy bit – remaining disciplined was hard.

So get a simple system you understand and the chances are, you will be able to maintain discipline and go onto achieve currency trading success.

Anyone can win at currency trading and the real lesson to take from this currency trading tutorial is:

That the market doesn’t beat the trader, the trader beats himself.

So work smart, have the right mindset and you could be making a great second income, or even get on the road to financial freedom and remember – success can be yours if you understand the points in this article.

By: Kelly Price

Best Forex Education – The Best Ways the Learn FX Trading Techniques For Huge Gains

admin — Sun, 28 Mar 2010 03:14:20 +0000

Here we will look at the best Forex education to get you on the road to trading success including, the best free education, sources to avoid and the best ways to learn quickly.

Let’s first, look at some education you need to avoid and top of the list are any Forex robots and sure fire trading systems. The cheap Forex robots all lose money and anyone who thinks, they are going to make money by spending a hundred dollars and just sit back as the money rolls in, is going to end up disappointed.

Also ignore any systems which claim they have found the natural order of market movement and they can see the future if you try them, you will see there as accurate as your horoscope.

Forex trading is a game of odds not certainties and to get the odds on your side, let’s tart with the best free education, there is plenty of information that costs nothing and can get you on the road to Forex trading success. The best way to make money in Forex is to become a chartist, its time efficient and works.

All you need to do is learn high odds chart patterns and you will find all the information on how to do this free online. Learn all the best patterns and add a few confirming indicators to help time your trades and you will have a robust system which can make money.

Forex trading is not just about learning a system, its about getting the right mindset to succeed, 95% of traders lose money, always have and always will, because human nature is constant and losing traders cannot trade with discipline. Go to your local online book store and seek out some books by from successful traders and one of the best is Market Wizards by Jack Schwager. This book interviews true trading legends, who all give an insight into how to get the right mindset for success.

If you want to cut your learning curve and get ready made strategies you can try for free, you can try a Forex course. Forex courses come with proven strategies, daily classrooms so you can see the strategy in action and unlimited support. They all come with money back guarantees, so if you don’t think they have helped you become a more successful trader, you can get your money back. These courses are ideal for the trader who wants some guidance and wants to cut their learning curve.

The best Forex education comes in many forms and your personality, will determine the method you choose to learn Forex trading and remember,no other industry can reward you so well for your efforts so learn Forex trading the right way and get on the road to a great second income in 30 minutes a day.

By: Kelly Price

Stock Trading – 5 Categories of Investors You Need to Understand

admin — Fri, 26 Mar 2010 14:13:37 +0000

Investing in stocks is an art that has gained tremendous acceptance in recent years globally. Today, many a investors do trading online employing the services of stockbrokers via the internet, there are those that depend on online robots programmed to buy and sell stocks depending on trends per time. A vast majority of investors do offline investing which is more accepted, most investors are at home with offline investing since they are able to monitor almost directly their portfolio with their stockbrokers.

Generally, whether you do online or offline stocks trading, investors fall into five categories and they see stock investing from different perspective which I shall be highlighting in the course of this article. So let’s get you started, shall we?

SENTIMENT DRIVEN INVESTORS
The first kind of investor that form the bulk of the investing public are sentiment driven stock investors. These are men and women who depend on rumors, hype, manipulated articles of investment stock reports on some investment newspapers and magazines relating to specific stocks and the prediction of so-called experts for their investment choices.

EMOTION DRIVEN INVESTORS
Emotion driven investors are those who are emotionally attached to:

1. Certain stocks because they made profits from such previously
2. Certain stocks because they fall into a sub-sector or industry for which they have soft spot for.
3. Certain stocks because they have fallen in love with the products or services of the company.
4. Certain stocks because of their temperament and beliefs.

TRADITIONAL DRIVEN INVESTORS
Traditional driven investors are folks whose minds have been moulded by long years of outdated trading patterns that are no longer relevant in the present times of jet-age information. They refuse to accept modern sophisticated stock trading trends.

KNOWLEDGE DRIVEN INVESTORS
Knowledge driven investors are those who by reason of knowledge and understanding gained by consistent personal education in stock trading trends have been able to reduce risk to the barest minimum. Knowledge driven investors take responsibility for their trading actions and decisions; they don’t entirely leave their stock picking choices in the hands of stockbrokers and analysts. They have a direct input in the direction of their portfolio; they see the input of a stockbroker and analyst as complementary rather than authoritative.

In conclusion, I submit that with what is obtainable worldwide as far as stock trading is concerned, it will be of tremendous benefit to you, if you can spare some time and money to invest first in stock trading education, because in the long run, you shall be better off for it.

By: John Efetobor

Free Forex Trading Strategies – 2 X Trading Systems the Pro’s Use That Have Made Millions in Profits

admin — Mon, 08 Mar 2010 22:24:56 +0000

It always amuses me, when traders buy Forex robots for a hundred dollars or so and thinking they will get rich with them – but none of them work as they have never been traded in real time and are simply back tested simulations. The 2 Free Forex trading strategies we will look here, have made hundreds of millions in real time profits, lets take a look at them in more detail.

The systems we will look at have worked for over 25 years and unlike the popular Forex Robots you see for sale online, these systems are from trading legends not just programmers, these systems work in real time, not just in back tested simulations.

The first free Forex trading strategy we we will look at is “The 4 Week Rule” which was devised by the grandfather of modern trend following Richard Donchian. We have written in detail on this strategy, in other articles but in summary, its a one rule, trend following system which is based on breakout trading. While incredibly simple it works and always remember, the best trading systems are simple, as they have fewer elements to break than complex ones.

If you apply the 4 Week rule correctly, you can make some great long term Forex profits with a system that has stood the test of time.

The next strategy we will look at which you can get for free, comes from Richard Dennis, who incidentally, was also a fan of the 4 Week Rule; His strategy was based on the same logic, trading long term trends via breakouts and it made huge profits. The rules he devised, were used by a group of novice traders to show that anyone, with the right education and system, could win at Forex. Dennis was proved right and in just two years, his group of novices made $200 million real time dollars with it!

The system rules are available free and if you look at the strategy it has all the elements a good strategy has and I personally think, any traders should look at it for the money management rules which are a great example of how to preserve equity. The system is less effective today than when it was first used, as markets have become more volatile but for showing you the basics a good strategy needs to succeed its a great system to look at.

Two simple systems, by true trading legends you can learn from and there both free! Look them up and make them part of your essential Forex trading education and if you learn from them, they will help you enjoy currency trading success.

By: Samuel Leslie Berkovits

Understanding Forex Trading – Trading Currencies

admin — Sat, 27 Feb 2010 07:08:56 +0000

Forex Trading is trading the currencies of two different countries. As there is a difference between the base prices of currency that is unique to every country – trading them would fetch a trader a profit or a loss depending upon the trends.

The base prices and the fluctuations there on are dependent upon various facets like the political stability of a particular country, the monetary well being, the stature the country has in the world economy & politics and many like factors. These variable facts on which the prices of a country depend are too varied to be analyzed. Traders who are able to make sense through the patterns in these are the better players in the Forex market.

The returns are good provided people invest in the trade considering it to be a professional and analytical trade. People lose when they assume this to be a game of speculation and want to take their chances in there.

In the past few years, the number of people who have invested in the trade has consistently increased. Awareness and the shift of Forex Trade from the real world to the virtual world is the reason for the same. Since the time online Forex Trading and the aids facilitating the same has increased, the volume of trade in the Forex market could be compared to that of the world’s largest stock markets of the world.

Without formal education, any profession would be a risky game to play. When it comes to Forex, the risk is even higher. There are free online introductory courses make available by the Forex Broker’s site that you would get associated with. However, these are very basic once. One might consider a paid education alternative before entering into Forex.

Nevertheless, there are various Forex Trading software that can help your life easy. The choice of the right Forex Trading software could take you places. These are automatic Trading software, also called as Forex robots that could trade on your behalf with very less or no human intervention.

By: Francis Murphy

Forex Trading Made Easy – How to Win at FX Trading When 95% of Traders Lose

admin — Fri, 12 Feb 2010 04:54:36 +0000

How can Forex trading be made easy, when such a huge amount of traders lose money? The answer is it can, if you get the right education and adopt the right mindset which most traders fail to do. Let’s look at how you can make a great second income from Forex trading in around 30 minutes a day.

The first point we need to make is while you can win at Forex trading and it’s easy to learn a strategy which can help you make money, you do have to make some effort and most new traders don’t do this.

Most traders buy one of the hyped Forex robots or Forex Expert Advisors and think they will get a life long income, with no effort and all for under a couple of hundred dollars! These systems look to good to be true and they are; they don’t work so avoid them and get some decent education.

When learning Forex trading, it’s important to keep two key points in mind firstly, you don’t need to work hard and secondly, you don’t need to be clever to enjoy success. When trading you simply need to learn the right knowledge, you get no extra money for effort or working hard, just being right with your trading signal. You also need to keep your Forex trading strategy simple, because the more complicated you make a strategy, the more chance there is of it having to many elements to break.

Anyone can learn a simple strategy which can maske money but you need to clear one more hurdle before you can enjoy Forex trading success and its this – you need to adopt the right mindset to become a winner.

To win at Forex trading you need to focus on staying disciplined and keeping your losses small. You are going to hit periods of drawdown and it’s how you deal with these periods which is very important. If you get frustrated when you lose and start to run losses or over ride your trading signals, you will lose. You have to keep your losses small and preserve your equity and if you do this, you will get trades you can run for big profits.

The hardest part of Forex trading for most traders, is keeping their emotions out of their trading and its a fact anyone can learn a strategy which can win but most traders can’t trade it with discipline and lose.

Getting the right mindset is based on a good education, confidence in what your doing and an acceptance that you have to lose in the short term to win long term – it really is that simple.

By: Samuel Leslie Berkovits

Learn Forex Trading – Become a FX Trader From Home in 3 Simple Steps

admin — Wed, 10 Feb 2010 08:00:22 +0000

Anyone can become an FX trader from home and make a great second income, its a totally learned skill yet, 95% of traders fail to win. The reason these traders fail to win is they simply have the wrong education or don’t adopt the right mindset, in this article we will give you 3 simple steps to Forex trading success.

Lets start with the most common error most novice traders make which comes from greed and pure naivety.

1. Avoid – Forex Robots and Other Sure Fire Systems

Does anyone really think for a hundred dollars or so, they are going to get an income for life with no effort? Yes, a huge amount of traders believe this and they all lose. These systems are obviously to good to be true because if you could make a huge income with no effort, everyone would give up work and trade! The fact is, these systems are so cheap because they don’t make money and use them and you will lose.

If you want to win, you need to forget about anyone else giving you success, with you making no effort and get some good Forex education but the really great news is in the next Point

2. Don’t Over Complicate Your Strategy Forex Trading is Simple

Simple systems work best, because if you try and make one to clever or complex, it will simply have to
many elements to break. Keep your strategy nice and simple and if you do you will have one which can make you gains long term. Next you need to pay attention to the key point which will lead you to success and if you fail to learn it, even a good system won’t help you, here it is…

3. Remember Discipline is the Key to Forex trading Success

If you can’t execute a system with discipline you don’t have one and it’s a fact most traders can’t, because they cannot accept losses and if you can’t you will lose. You will have periods of losses and in these periods, you need to keep executing your strategy with discipline, do what most traders do which is to run losses and hope they turn around or deviate from the system rules and you will get wiped out.

You can win, because big trends will always come back which you can run to recover your losses but decide now, do you want to be right all the time or make money? Because the Forex market won’t allow you to do both!

You can Win Anyone Can

Discipline is the key to success and you can become disciplined if you want to, just accept your losses cheerfully and have confidence in what your doing which comes from a good eduction and Forex trading success can be yours.

By: Kelly Price

Forex Trading Education – Novice to Pro Trader in 2 Weeks Here’s How to Do It

admin — Thu, 28 Jan 2010 18:19:08 +0000

If you want to get the right forex education and trade like a pro in just 2 weeks, then this article is for you. I was inspired by the story enclosed and it will inspire you too…

Let’s look at the story first and it will make you think.

Novice to Pro Millionaire Traders in 2 Weeks!

Richard Dennis was a famous trader who set out to prove that anyone could learn to trade and he set about proving it in 2 weeks.

He got a group of people together, who had never traded before and they were a diverse group. They ranged from an actor, to a security guard SO, just ordinary Joe’s. he taught them to trade in 14 days, gave them money and trading accounts and they rewarded him – by making $100 million in just 4 years!

Now this might strike you as a bit of a paradox, as 95% of forex traders lose! The reason is not because they can’t learn, it’s because they learn the wrong information, want to follow others, or have the wrong mindset.

Today how many traders start trading without really understanding how markets work? – The bulk of them.

You Need Confidence and Discipline to Win

Most traders want to follow forex robots that haven’t even been traded, or follow a guru or mentor. Their lazy and wont take responsibility for their actions and lose.

Taking Control of Your Destiny

Dennis knew that he could give them the system – but he knew they would get nowhere with it, unless they understood it and had confidence in it. Only if they understood it and had confidence would they have the discipline to follow it, through losing periods until they hit a home run.

You Don’t Need to Work Hard You Need to Work Smart!

If you want to learn to trade forex and win you don’t need to work hard, you need to work smart. That means a few weeks study – forget all the rubbish said about you have to keep learning – you don’t!

Once you have your system, your then down to 30 minutes a day work and that’s it.

You Don’t Need to be Clever to Win Either

In forex trading there is no correlation between how much effort you put in and how much money you make – you get rewarded for being right and that’s it.

The next point to keep in mind is you don’t need to be clever. The simpler a system is, the more robust it will be and the more likely it is to be successful.

The group Dennis taught were given a simple, long term trend following system, based on breakouts and this is always a good place for any novice to start.

Base your forex trading system on breakout methodology and focus on the long term trends. We have written on how to put together a system based on this methodology in our other articles so look them up.

Forget complicated systems they break and you need to keep it simple just a few rules and parameters is all you need.

The Hard Part!

The hard part as we said earlier is being disciplined. It sounds easy – but it’s not, as you have to keep on track while the market hands you losses and makes you look a fool and it’s hard even for experienced traders sometimes.

If you have built your system, understand how and why it works, discipline will be easier for you to achieve.

Now I am not saying you will get as rich as the group Dennis taught – but the opportunity is there, for anyone to learn forex trading and become a winner.

Sure it a challenge and sure you have to accept success sits on your shoulders but if you want success, the door is open for you.

Remember the market doesn’t beat the trader, the trader beats himself. So have confidence and a burning desire to succeed and you can enjoy currency trading success.

By: Kelly Price