How does the Financial Market work?

Before falling headlong into FX Market, let's take one thing into account: How does the Financial Market work?

As already explained above, the Forex Market is based on the exchange of international currencies, so that there is a valuation and a devaluation of the currency (Yes devaluation! Because we buy cheaper and sell when it is valued), the Stock Exchange of each Nation, is who dictates the Values ​​of Change.

What is the Stock Exchange?

The Stock Exchange is in short a huge Global Network, responsible for organizing the Market, responsible for moving huge amounts of money every day.

 In total, more than sixty trillion (60,000,000,000,000) euros are traded per year. More than the value of all goods and services throughout the world economy.
 However, Iphones or Chinese products would never be the strength of this market, but predominant are Capital Securities.

Securities, participation in companies, are the most active, mainly in the form of Shares.
 An Action represents a stake in a company.

Why Sell Stocks?
 Well, to begin with, the value of a stock is related to the company behind it. If you think that a company, will increase its value against the Market, we can exemplify:
Let's imagine that a big company like Twitter is a Pizza, and you buy a Slice of that Pizza Company, we know that the bigger the size of the Pizza, the bigger the size of each Slice (Action). Let us suppose that Twitter can increase its profits a lot with a new business model.
The size of Pizza companies will also increase and as a result, the value of their stock as well. This is great for shareholders.
In short: A slice of the Twitter Pizza that you perhaps bought for 40 euros could now be worth 55-60 euros.
And when it is sold, it represents a profit of 15 to 20 euros per share!

But what does Pizza (Twitter) gain from this?
 The company that you chose for your business, can raise funds by selling stocks and investing or expanding their business.
Facebook (Your Biggest Competitor), for example, earned $ 16 billion (sixteen billion dollars) from its listing on the Stock Exchange.

 Stock trading, though, is often a game of chance. No one can say which company will do well and which will not. If a company has a good reputation, investors will support it.
A company with bad reputation or poor performance will find it difficult to sell its shares.

 Unlike a standard market, where we: Let's go after the Product> We choose the right product for a certain function> We pay the product and take it home on the Stock Exchange, only virtual goods are available to buy.
 They appear in the form of stock prices and tables on monitors. Such prices may suddenly be unannounced: Rise or Fall in seconds. Because of this, the Shareholders must act quickly so as not to miss a good opportunity. Even a simple rumor (Speculation) can result in the demand for a falling stock, regardless of the actual value of the company. Of course the opposite is also possible.
 If a large number of people buy weak stocks (Companies that are low in value at the time of purchase.) Buying because if they see, for example, great potential (speculation) behind an idea, their value will increase as a result.

In particular, young companies, which are now launching the market, can benefit from this. Even though their sales may be falling, they can generate money by putting their stock.

At best, this will result in your idea becoming reality.
At worst, this will result in a speculative bubble with nothing but hot air. And like the case with bubbles, at some point, they will burst.

The value of the thirty largest companies in Germany is summarized in what is known as the DAX stock index.
The DAX shows how good or bad these big companies are doing economically in real time. Of course! the Stock Exchange of other countries also has its own indexes. And all these markets together create a global network market.

And it is from there that c Forex Market, will work.

Automatic Forex Trading Software:

Automatic Forex Trading Software:

As a Forex trader, you will know how trading can be tiresome, especially if something goes wrong. There are marketers who dream of a partner who is smart, not exposed to emotions, logical, always looking for lucrative deals and who can execute negotiations almost immediately.

If this is something you are looking for, then we must tell you that these qualities above describe the automated Forex trading software.

A wide variety of such programs is easily found. Its main task is to operate without the presence of the Forex Trader, by scanning the market for profitable currency trading using pre-set parameters or projected parameters and then programmed into the system by the user.

In short, with automated software you can turn on your PC, activate the program and then go away while the software trades instead of you. This is the basic principle.

And they work in 2018?
Hypothetically, novice, experienced or veteran Forex traders can benefit from using automation software to make their first trading decisions, or to stay in the safe trading state. And these Softwares can be found in the most varied styles, layout, facilities that a client can find to his taste, of the most varied values, and some free (not very recommendable).

Online customer reviews of such FX programs will reveal their strengths and weaknesses. Often, some programs offer a free demonstration period along with other incentives to buy and / or test the program.

One of the positive aspects of Forex trading software is that the marketing incentives to buy specific packages can provide extra tools for trading. But to be clear, these programs do not work miracles, do not buy one, with the conviction that all your negotiations will be successful, since stability of negotiations are unpredictable, it turns out that FX Programs are functional in the distribution of time and work, for those people who do not have 100% of their attention to negotiate in the market.

How does it work?
Automated Forex trading software is a PC program that analyzes currency price charts, and market activities. It determines the signals, covering spread discrepancies, price trends and news that can affect the market in order to locate trades of potentially beneficial currency pairs.

For example:
 A software program will use user-defined criteria, determine a currency pair trading that meets predefined profitability parameters, and convey a buy or sell alert. In this alert, the software can be programmed to automatically perform the trade.

The advantages of automated Forex software:
Although we do not recommend any automated Forex software, it is still important to outline the advantages of it. Being the one that most motivated these systems to be created: it is the removal of emotional and psychological influences in identifying what to change. Automated software makes your trading decisions consistent and completely emotionless by exploring the parameters you've previously set or the default setting you've previously installed.

Traders who are starting now and even experienced can sometimes make a negotiation based on some psychological trigger that disobeys the logic of market conditions. With automated trading, human traits of judgment such as doubt, fear, optimism simply do not exist.

And also for currency speculators, who do not do business based on interest rates, but on particular currency spreads, automatic Forex trading software can be quite useful. This is because price discrepancies, have their information is immediately read by the trading system (Stock Exchange, Stock Market), and consequently a trade is executed.

Also, other elements of the market can trigger buy or sell alerts, such as average crosses of movement, chart settings (such as triple bottoms or tops, or other indicators of support or resistance levels). In addition, automated software programs also allow operators to manage multiple accounts at the same time, which would be a huge advantage, which would be partially difficult, or virtually impossible on a single computer ..

For Forex Investors the automated Forex trading saves a considerable amount of time, and it is possible that they could use to study the markets, analyzing different charts or attending to various events that in some way influence currency prices.
They also allow the trader to free themselves from the computer monitor while the program examines the market for trading opportunities, which does business when conditions are right. This implies that day or night the program is constantly in operation and does not need human supervision.

Choosing Your Automated FX Trading Program:

Although not everything on the internet works well, or provides quality service, there is a good chance we will find something ultil, and that meets our requirements.
But we have to be smart, because some companies announce to have a very high percentage of winning negotiations, which end up holding and catching our attention, and final bo is nothing we expected, it ended up becoming time and money spent for nothing.
We must be careful about that. such advertising statements must be verified. because the internet is always full of people and companies with ulterior motives, and may not be good. But we must not generalize, the best companies will always offer you proof that their service is undoubtedly the best in the market, showing us authenticated results of negotiation history, to show the effectiveness of the programs they are offering, but one thing is clear and we should be aware of this:
It is not because a result or performance of the company and its platform were good in the past, would still be the best of today.

Adhering our Purpose:
As automated trading systems vary in agility, performance, programming customization, and complexity of use, what is good for one Forex Trader may not be good for another. Some Forex Traders may want more tools for their growth in the market, to analyze their data, is real-time monitoring, market data, others are looking for something simpler and easier to use with an intuitive interface.
And for those who travel a lot, or spend a good deal of time away from the Computer, Remote Access is vital. Therefore, your program should allow access and functionality from anywhere in the world, through any Internet access, or a web-based program can be an easier way as well, since it is not limited to a computer with the Automated Forex Automation Program.
Another thing to take into consideration when looking for your Forex Automation Program, is the segiran├ža, because first of all, we are working on the internet, an environment where you never know where we can be attacked, because of this problem, some companies Forex, as well as companies connected to Internet security, offer Virtual Private Server (VPS) services that isolate your internet program and its connection through various encryptions, ensuring direct and fast response of the server on which you want to connect, from effective and secure, and many of them with excellent technical support, which guarantees more quality in the service, as well as influence your profits, as you will be safe from hacking attacks, and a quick response between the Forex Market and your Personal Program.

 We should also be aware that some companies tend to charge extra fees and negotiation fees. As well as companies that declare they do not charge for their successful businesses. It is good to be aware because commissions and fees can reduce our profit, so we must carefully read user agreement, and in doubt, strongly clarify the doubt with the Company.

Another thing we must observe when choosing a company is to be attentive to its different types of accounts, with varied guarantees of return (Common-Premium-VIP accounts), which end up generating market competition, improving the quality of service provided, and variation prices.

Another point to raise, would be the evaluation / test of the product, after all we can not buy a cargo ship without knowing what it carries (I do not think it is a better example), so a good part of the Forex Programs companies offer a period of evaluation, so that the client can choose to buy or not the product of the company, and for that some companies, sell the product but for a certain time, so that the client chooses to stay or look for another platform, returning the money PAYMENT BY THE PROGRAM, and your Invested Capital (Be it with the profits obtained during the valuation, or your lower balance than it started, in case of miss it of course).

And another modality that some companies offer is to give you a demo account with "fake money" that can be replenished anytime, using real-time market parameters of a currency, or a variety of them, like the Dollar, the Euro, and some risk the Cryptomoedas, so that the customer can try out their tools, interface and their way of negotiating, so that the customer chooses to stay or leave, in addition, make sure that the software is programmable and flexible so you can change any pre-installed default settings.

 Most of the most popular auto Forex trading software will actually trade the major currency pairs with the highest volume and most liquidity. These will include USD / EUR, USD / GBP, USD / CHF and USD / JPY.
We must also take into account the trading methods that each platform has to offer, ranging from conservatives (with programs designed to scalpel some points in a negotiation) or a more adventurous (risky) trading strategy. The user must decide which approach to use, and whether the strategy can be customized for each direction they choose.

 We should read reviews of customer products posted online before buying, in company forums, especially in public forums, which contains mostly candid reviews and reviews on a particular platform, as they are a good source of information about the automated currency trading software.

Price competition currently favors the consumer, so look for the best deal, but do not sacrifice quality for the price. The prices of commercial packages can range from hundreds of dollars to thousands. Finally, look for a high level of service and technical support. This is crucial for Forex investors at any level of experience, but it is especially significant for beginners and beginners.

Finishing:

No matter what level of experience you have in Forex Trading. Whether you are a beginner, experienced or veteran trader, automated Forex trading software can help you.

 There are always potential risks when trading in any market - and it's the same with the automated one.

There are many scams on the internet. Fraudulent software can be avoided through good research on our part, and by looking for complaint and complaint websites.

And especially, understand that no automated Forex software can guarantee a 100% rate of winning trades.
It is also important to remember that past performance does not guarantee certain success in the future.
Before diving headlong into this business model, try to get informed, learn, learn from mistakes and right answers, and especially, take time to study!

Thanks for reading here. We are working hard to bring quality content to all of you ..
To the next!

Foreign Exchange Markets

Foreign Exchange Markets
 
When we are looking for ways to invest our money, a rain of investing starts to appear in front of us, with the most different acronyms, styles, investment methods, especially with strange names, and one of several options of investing our time and one bit of our free money, is Forex, abbreviating FX Market.

But after all, what is forex?
As its name suggests, it is a decentralized financial market (multinational operation), which works with International Currency Exchange in pairs, for example:

EUR (Euro) / USD (US Dollar).
JPY (Japanese Yen) / USD. (Obs)

It is estimated that this Financial Market moves 2-5 trillion US dollars per day. According to data from 2007, this market moved around 3.43x more than the sum of all Securities Markets in the World, and 9.63x the volume traded in the World Stock Market.

Awesome is not it?
In this Fantastic Financial World, there are Exchanges and Negotiations among major Banks, international Central Banks, Multinational Corporations, Governments, and other financial institutions.
And in a thin slice of the whole amount, we are small investors. Restricted to acting in this financial environment, only through Forex Brokers or banks that have this type of forex investment for their clients, allowing us to participate and capture a section of this huge business.

And how has Forex started to work?
 The first negotiations of this model were initiated from exchanges according to the Base Price established for Gold at that time and the establishment of values ??of other Currencies referring to the exchange for gold, thus acquiring the values ??of all the major currencies that circulated in the world market (they went through a speculation of base value to occur exchanges of values)

And in practice?
With Forex trading, we can buy or sell trading options by predicting whether the exchange rate of a currency will increase or fall. These speculations are made with Coin Pairs, that is:
* The amount of secondary currency that is required to purchase a unit of the base currency, for example:
* In the Euro / USD pair, the Euro is the base currency and the rate will show the USD amount required to buy 1 Euro.
* Now, if we predict that the price of the euro will rise, we buy the business and we can sell when we have profits.
* Or it will close automatically when you reach a predefined profit level at the beginning.

What are the Risks and Advantages of this business?
First of all, like all the forms of negotiations that exist today, all kinds of business, where the market is always volatile and unpredictable, we always have the present risk, where we can end up doing a bad business and lose our invested Values, we can get a Business that is stable or going a little bad and surprise us with the positivity and profit that it can provide us, so just like other forms of business, we have to take into account to prepare the mind and to have Cold Blood to delve into any type of Business. And just as we all have our Advantages and Disadvantages. I will quote them below:

Benefits:
* You can set the stop (stop) and profit withdrawal options that avoid large losses.
You can close the position at any time when you see the level of profit anticipated.
In forex trading, you receive the leverage option offered by the broker, which is the investment in partnership with the brokerage firm, according to the option chosen.
In forex trading, the margin allows you to increase the investment when you find a potential winner in the option.

Disadvantages:
* You can not predict maximum profit.
* There is a greater risk with Leverage.

Forex - What is Leverage?


The concept of leverage is widely used by companies and investors.
We investors use leverage to significantly increase the returns that can be provided on an Investment. They leverage their investments using various instruments that include options, futures and margin accounts.

Already companies can use leverage to finance their assets. Companies can use debt financing to invest in commercial operations in an attempt to increase shareholder value. In Forex, investors use leverage to profit from the swings in exchange rates between two different currencies.

The Leverage that is used in the Forex market is one of the most profitable strategies that investors can choose to make.
Leverage is like a loan provided to a negotiator by the broker who is dealing with your Forex account.
When a trader decides to enter the Forex market, he must first open a margin account with one of the Forex brokers.

Stop ...

Let's take a short break, so you do not absorb so much information at once.
As we have seen above, it is a Market with a good variety of Market Dynamics and Negotiations. And let's look at One by One, and from there you choose the one that best fits your profile. It does not matter if you are a Small Investor, or a Big Investor, like any form of business, the Risk is always High.
And in the Forex Market, we can always take a more passive and cautious stance, negotiating and aiming for profits gradually, or we can use an Aggressive Posture, Trading High, being able to Succeed in the Transaction, getting very high profits or losing your money invested, For like all types of business, High Wagering also means Great Risk too.

Revealed the Secrets of Day Trading Systems

Revealed the Secrets of Day Trading Systems

Hi. It's Adam Halpern here from the Indicator Warehouse. And in a moment, Erich Senft will join us from supportandresistance.com. So today, we're going to do something a little different. In fact, some of the things you'll hear today might even shock you a bit. Today, we're going to reveal some secrets about indicators and day trading systems, and how they are created. Now, my goal with this presentation is to help you either build your own system or evaluate a system currently on the market that you're thinking about possibly buying.

So you might be wondering, why are we doing this? Well, this presentation came to me from listening to our customers, traders just like you. Now, of course, not all traders are alike. But every trader does share a common desire to succeed. And therefore, you share common concerns. I know this for sure, when we start talking about trading indicators or collections of indicators to make a complete system, everybody's first question is always the same. And that is, does it work? Or maybe even more to the point, how much money can it make me? Hey, we're all human.

And as crazy as that question may be, it's what we all really want to know. Well, here's the dilemma I want to point out. Vendors who sell day trading software often publish results as so-called, quote, "proof" that it works. A little while back, we even published an article on our blog about this very issue. It was in response to the CFTC Warning about day trading system vendors who try and entice you with statistics on how much money you can make with their software. The CFTC Warning reminds consumers, and I quote, "to obtain these results, trading system promoters typically pretend they traded futures contract at market prices that occurred sometime in the past.

Then, they calculate the trading results of these purported trades would have achieved had they been placed, based on actual historical prices." In short, these sneaky vendors are not showing you a real account from a real person. They are simply talking about what could have happened had certain trades been taken, very much like if I said to you at a roulette table, hey, if you'd bet on black, you would have won. How useful is that? Now, I think you'll agree this information is definitely not in the category of real results. In fact, it's totally distracting and useless information. The CFTC knows this, and that's why they advise consumers to be aware not get suckered.

At Indicator Warehouse, we'd sooner close shop than talk about what could have happened in the past. Frankly, I would be just too embarrassed to do it, let alone the unethical issues it raises. Instead, we focus on carrying day trading software with tangible features that make your trading easier and safer, so as to give you every boost possible to be more profitable. A quick browse through our store and demo videos will clearly demonstrate how our indicators and trading tools do exactly that. OK. We still need to address the question of what features make a solid day trading system. And therefore, you might be wondering what system or indicators you should buy, especially when you consider your account size, your experience, the market you wish to trade, and the time frames you plan to work with.

Well, thankfully, Erich Senft is going to take it from here and crack the code, so you know exactly what to consider when building or buying a day trading system. As you'll see, cracking the code is a guide to buying indicators or systems from any vendor, not just Indicator Warehouse. So without further ado, here's Erich Senft, a 17-year trading veteran and certified Commodities Trading Adviser. Thanks, Adam. All right, everyone. So today, we're going to discuss some of the things that go into developing an effective trading system, give you some examples, and maybe even a few recommendations. So you want to build a system where you're looking at a system. Where do you begin? Well, you begin with the end in mind. Essentially, you need to decide what it is you want that system to do. Are you looking for a system to give you short-term trades? Are you looking for long-term trades? Are you going to day trade? Are you going to position trade? It seems rather simple and straightforward.

But you'd be surprised how many people will buy a scalping system when actually they're looking for trend-trading system, and vice versa. Let's start with a little bit of an overview of what a trading system is. A trading system is more than just a buy signal. A complete trading system actually has three components to it. There's an entry, an exit, and money management. Each of these are equally as important. However, most trading systems out there will only give you one piece of the puzzle, usually the entry signal. Sometimes, you'll find a system that gives you two pieces of the puzzle, usually an entry and an exit signal. But very rarely will you find a system that encompasses all three components of what you need for a successful strategy. The single most important feature is that it is simple and clear to use.

Your system has to be clear, unambiguous. You have to be able to look at the chart and make a decision. And it's really a little bit of a balancing act, because the system has to be simple enough to use. Or simple and clear enough to use, but complex enough to filter out market noise. Those are usually the opposite sides of the same trading But ultimately, your system is going to depend on you.

You're going to determine what kind of signal generators you're going to look at. Are they going to be short term or long term? What their settings are going to be, and how you're going to use them. What kind of stocks you're going to use. What kind of money management you're going to use. These are all important considerations that you need to make it right out of the begin. All right. So which markets are you going to trade? This is also an important decision that you need to make as you go.

Can you actually afford to trade the market? If you're looking at a market like bonds that have $tick value, you're not going to be able to trade a market like that with a $5,000 or $10,000 account. Is the market going to be volatile enough for you? If you're looking at a scalping system or you're looking to design a scalping system, you're going to need a certain amount of volatility in the market in order to generate enough signals. Conversely, is it too volatile? If you're looking at a trend trading system, you're probably going to be focusing on a market mix that caters more to trending. For instance, the currency markets or perhaps the index or the interest instruments, which all tend to trend a little bit better, versus trading something like crude oil, which with its volatility may be better suited for a scalping type market.

You're also going to be looking at time frames and chart styles. Now, when I started trading many years ago, our charts still showed up in the mail, in a book. Shortly thereafter, computers came on the scene and online trading was born a little bit after that. When I started, you had a choice of time-based charts. That was it.

Shortly after that, tick charts arrived, then volume-based charts. And now there are so many charts, so many different charting styles, ranged charts, a whole slew of Japanese chart styles. Everybody's looking for some sort of edge. It's important for you to settle on one and settle on your settings and stick with it. You can also do a combination of settings and a combination of charts if you choose. But it's important to settle on something and work with it. The reason is, every time you change your chart style or your chart settings, you're essentially starting over. Now, there will be some adjustments that need to be made, but you're going to want to try to minimize that. So here we have the three components of a complete day trading system. You need a signal generator, you need an exit strategy, and you need a money management system. Now we're going to take a look at each of these in a little bit more detail. Let's start with the entry. Now, the entry is the most exciting part. This is the part where traders spend a lot of their time and their money perfecting their entry.

This is the sexy part of trading. Once again, you need to get very clear signals from your trade. That's the most important part of your system. It's more important, in fact, than accuracy, believe it or not. Right or wrong, you need to be able to look at a chart and make a decision from it. So if you look at the charge on the left, and that's actually a chart from one of our former students, you'll see that it has so much information on there that you can't possibly make a clean decision from.

In fact, when I saw that chart, I asked the person, I said, OK, show me a buy signal. And they weren't able to do it. Even in hindsight, they weren't able to show me a clear buy signal. The chart on the right has very clear signals, very simple, easy to make a decision versus the charge on the left, which is all convoluted. Now, your signal also has to match your trading style. For instance, if you're scalping, you're going to need to generate more signals. You're going to need a system that's more sensitive. You're going to rely on shorter term price swings. And vice versa if you're looking at a trending tool, you're going to want the system to be a little less sensitive to take advantage of those bigger price moves and perhaps filter out some of that market noise that's happening at the time. Now sometimes, it's as simple as adjusting your settings to meet your style requirements.

For instance, if you have your charts set up with your indicators set up the way you want, and you're not generating enough signals, sometimes it's a simple matter of just shortening your timeframe somewhat. And likewise, if you're looking at a trending signal, the opposite is true. Sometimes it's just a matter of extending the time period a little bit. Essentially, there's two basic styles of systems. There's only two types. There's a price based system, or an indicator based system, or a combination of the two.

Most new traders are better served by an indicator based system. And there's pros and cons for each. But the big pro with an indicator based system is that it gives you a clear go, no-go signal. When you're in the heat of the moment, and you're generating signals, and you're trading, you need to be able to look at that and say, yes, this is a buy signal. Or this is a sell signal. You have very little time for subjective thought. That's the big pro of an indicator based system. Of course, the big con for indicator based systems is that because indicators are mathematically based, they rely on historical information going back x number of periods to actually generate what it is you're seeing in the indicator. And as such, all indicators tend to be lagging to some degree or another. Some are more sensitive. Some are less sensitive. Of course, that's where price shines is that price is super responsive, super quick. You develop signals faster if you know what to look for.

And of course. That's the big downside with trading a price based system is that it usually requires a lot more knowledge and experience, sometimes years worth of knowledge and experience. I heard of a very successful Italian investor who was famous for his investing skills. And when somebody asked him, how do I learn to trade, he said, sit in front of a chart for six hours a day for 10 years.

And you will learn how to trade. And obviously, he was a price based type trader. With enough experience, you will get good at recognizing what the market is going to do next. More often than not, however, it's a blend of the two, where you take some price into consideration and you take some indicator into consideration. And you develop your system out of that. But remember, whatever you do it has to be clear. Clear, clear, clear. I cannot stress that to you enough. All right. So that's your entry, the things that you should be looking at. Now, what about your exit, your exit strategies? Most systems never address this question. And yet, it's one of the most important questions that you need to deal with.

What are you going to do with it once you're in that trade? Now, you do have some options. Are you going to go all in, all out? Are you going to trail a stock? If you're going to trail a stock, how are you going to trail it? If you're going to go all in or all out, where are you going to take your profit? Again, you need to keep it simple. When you're trading, you don't have time to think. You only have time to react.

And I love this photo here of the base jumpers, because that's exactly what trading feels like, isn't it? You jump off, and you don't know. You don't know. Is it going to go higher or is it going to go lower? At least these guys know they're going down. But here, too, you only have time to react. You don't have time to think through something complex. All right. Now, let's go on to the most important part-- or what I consider to be one of the most important parts-- of the trading puzzle and the one that is most neglected, which is money management. This is really the key to your strategy and to your success. But money management is not what you think it is. This quote here from Paul Tudor Jones should be printed out and hung above your trading computer.

And you should look at it every day. It's that important. Paul Tudor Jones, one of the most successful traders of recent times, said, "Where you want to be is always in control, never wishing, always trading, and always first and foremost protecting your ass. That's why most people lose money as individual investors or traders, because they're not focusing on losing money. They need to focus on the money that they have at risk and how much capital is at risk in any single investment they have. If everyone spent 90% of their time on that, not 90% of the time on pie-in-the-sky ideas on how much money they're going to make. Then, they will be incredibly successful investors." Let's take a look at what he's saying here. What Paul Tudor Jones is saying is that money management is not about risk/reward ratios. Did you catch what he said there? Did you catch what he said about risk? Let's go back one more time, because it's that important. He says, you need to focus on the money that you have at risk and how much capital is at risk in any single investment.

You should spend 90% of your time on that. And yet, where do most traders spend their time? Thinking about the reward side of the equation. But when you focus on the reward part of the trade, that's the part of the trade that you have absolutely no control over. So it doesn't make sense to focus on the reward part of the trade and not on the risk part. Everybody tells you that you need a risk/reward or at least a risk/reward in order to take a trade. I'm sorry. That's all a bunch of baloney. In fact, I could do a whole webinar on the fallacy of risk/reward ratios and why they don't work. But in a nutshell, they don't work because nobody knows where the market is going to go next. Why would you not take a trade, because you cannot envision a suitable reward side to your trade? Look at the markets today. The markets went-- I guarantee you-- much higher than anybody anticipated that they would, or almost everybody anticipated that they would. A lot of people stayed out of trades today, because they thought the market was going to hold up at the recent highs.

Well, it didn't. It blew well past those highs. Risk/reward ratios are not the way to go. In fact, the only part of the trade that you should focus on is the risk part of the trade. And this is so important that we actually put together a tool. It's a free tool for you to use. It's at this link here. You can copy it down and go visit it later. And it will teach you the importance of managing your risk. In fact, remember early on how I told you with your entry that you don't need an accurate entry, that it's more important that you have a clear entry over an accurate entry? Well, using this tool, you're going to Revealed why, why you can have a 50% winning system. That's right. You can be wrong half of the time and still make money. In fact, the cutoff line seems to be about 45%. So you can have a system that's wrong more than half of the time and still make money, if you manage your money correctly.

And that's all about managing your risk, managing your capital, taking advantage of the market when it presents it to you, and limiting your losses when the trade does not work out in your favor. It's all about position sizing and correct money management. In short, you never want to over-capitalize a bad trade or under-capitalized a winning trade. And that's what good money management allows you to do. All right. So after that you have your entry, you have your exit strategy. You know about money management now, how to control your risk. What do you do now? Now, you test and you test and you test some more.

People are always asking, how long do I have to test it for. We've all those things, trade it for three months and then go trade real money. Well, it doesn't work that way. I would rather you put a number on it. I always tell people that you should test 100 trades. And the reason you trade 100 trades or test 100 trades is because then you have a very simple definition of your winning probabilities. If you have 60 winning trades out of 100, you probably have a 60% system. And if you have 30 winning trades out of 100, well, then you probably need to do something with your system. So very simple. Track your results. I cannot emphasize that enough either. It's important that you make a note, that you keep some sort of trading log. It does not have to be very elaborate, but you do need to track your results. Back-test 100 trades. Forward-test 100 trades.

This is going to do a couple of things for you. First and foremost, it's going to increase your confidence in your system. Remember, I've been mentioning how important clarity is to you. Well, testing will give you the confidence that when you get the signal, you're going to know what to do with it. And you're not going to have any doubt or hesitation to take it. This is also the time that you're going to want to tweak your system a little bit. If your system is performing pretty well, but it's a little light in some spots. Well, this might be the time to tweak a setting on an indicator, or your timeframe, or something. But we're talking tweaking, we're not talking changing. We're not taking momentum out of the equation and putting in, or Stochastics in, or something like that. If you go that far, then you've actually just developed a new system. And you need to start the process over again. But it's important that you don't cheat yourself during this phase. Testing is paramount. At Indicator Warehouse we test and test and test, until we know that the system is reliable, that the signals are clean, that they're easy, and obviously that they work.

Once you have that, then you're off and running. So there you have it. If you get those three components in place, you will have a successful trading system. And then, all that's left for you to do is go make your fortune. .



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Structure of Automated Forex Platforms:

Structure of Automated Forex Platforms:

Forex Platforms are designed to handle currencies, stocks, futures and other popular instruments in a variety of financial markets. On most platforms, we have access to a list of different currencies available, provided that you select only those required.

We can monitor the current quotes, negotiate with just a mouse click and view the data of the selected business. Also, we can open new charts and start working with it. Generally the platforms two systems of location of slides of change, that is: compensation and coverage. The payment system is available only as a financial paper and is traditionally adopted in the foreign exchange markets.

The clearing system allows only an open position in each financial instrument and is adopted for a long time in the foreign exchange markets. At the same time, the accounts with the hedging option allow, in the same financial instrument, the opening of several positions that are taken separately from each other. This allows you to negotiate, in an asset, running various trading systems also with the use of thefts.

Multi-platform functionality allows you to implement any trading strategies: you can trade directly in the market or use pending orders with a user-defined duration. When submitting the trading request, you can specify the opening, Stop Loss and Take Profit levels.
For technical analysis, there are dozens of indicators, lines and channels embedded. In addition, you have varying financial market graphs ranging in real time, this comprehensive view of options allows you to manually define whether '' x '' business is a good deal to do or not, platforms also allow you to place and exclude orders directly on the chart, we can predefine the levels of Stop Loss and Take Profit. and if you want to take control, just use the manual mode, open the market book and directly egociar.

The trading panels also allow you to switch between trading accounts, execute scripts on charts, indicators and trading robots. In the Tools window, on the Negotiation tab, your open information and requests are viewed. The Assets tab allows you to improve the status and current accounts, and is able to generate reports in real time. And they also have a News tab, Business calendars so that you are always updated with the most important events, and with the addition of translation tool if you do not know the source language of the currency you are trading.
Usually in the libraries of the platforms, we are able to find more than 6,000 commercial companies and service provider that can be downloaded and used for free for data collection and monitoring. In addition, a Market Guide has thousands of trading and analytics apps that you can buy or lease. In Signal guides are online your trading transactions.

In just a few clicks (If available, of course). we can configure the access, through our own VPS network, or the one offered by the platform company, but many already come with this system implanted, it may be possible if you want to change for a VPS service of your choice.
Segment models vary, but they all tend to be quite effective since there is a lot of money involved.

This is just a summary of what would be an automated Forex platform, so they can understand what works best for you, and what you should look for and see when it comes to choosing a platform to work with.