Forex Made Easy - Because It's Really Not That Complicated

Forex trading is a relatively new concept in the world of financial investments. The high leverage offered and the 24-hour availability of this market is simply too irresistible to ignore.

However, many would-be Forex traders are afraid that Forex trading is only meant for the 'smart', or people with exceptionally high intelligence.

Although common sense is obviously required, you'd be surprised to find out that most profitable traders only have an average IQ! In fact, there are many university scholars who fail miserably at Forex trading.

You see, succeeding in the Forex market actually has very little to do with how intelligent you are. The keys to being a profitable trader are to simply have common sense, discipline, an open mind, and a willingness to learn. That's really all you'll need.

Now, don't get me wrong - I don't mean that Forex trading will be easy to learn. You'll surely have to put in hard work, and have the persistence to carry on despite inevitable setbacks. Your tenacity to overcome obstacles will be a better predicator of your level of success as a trader, than your IQ score.

Many university scholars and 'top students' often think they're smarter than everyone else, and they let complacency and arrogance take precedence over humility and a willingness to admit mistakes.

Learning From Mistakes

This is the one factor which causes many people to fail at Forex trading. They refuse to admit that their trading decisions are wrong, and stubbornly hang on to obviously bad trades.

Admitting that you've made a mistake is not easy. But the market doesn't care about how you feel. If you go against the market, you'll be the one who has to face the consequences.

So it's really a matter of conquering your own mind.

Be willing to accept temporary defeat, if it makes you a better trader at the end of the day. You may lose a battle now, but in the long run you'll be in a much better position to win the war.

To learn more, Click Here to download my free 26-page guide, "Forex Trading Traps!"

Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading tips and resources.

The Best Time Of The Day To Trade Forex?

The great thing about forex trading is that the markets are open 24 hours a day during the week and you could trade the markets all day every day if you so wished. However if you've been trading for any length of time you will know that there are some periods of the day that are more volatile than others.

As well as times that are more volatile than others, there are also sessions that are easier to trade than others.

Let's start by discussing the most volatile period of the day. This is nearly always the period between 1.30 and 4.30PM UK time and most affects the major currency pairs, particularly the US dollar pairs.

Why? Well because not only is this the time when American traders are just beginning their trading day, but more importantly it's the time when the major economic data releases are announced, and these can often cause sharp movements in the dollar currencies.

So is this therefore the best time to trade if you're a forex trader?

Well if you're one of the very few people that are able to make consistent profits from trading the news, then yes it probably is the best time of the day to trade, but for most of us, this period is simply too volatile and unpredictable. These data releases can make a mockery of technical analysis so I personally don't really like to trade during this time.

The best time of the day to trade in my experience is the start of the European session which is around 8.00 to 12.00 UK time, although this could even be extended to include the hours between 6.00 and 8.00 as well because you often get some strong moves during this period as well.

Apart from a few economic announcements from the UK and other European countries, which usually do not have a major impact on the markets, this session is not only heavily traded but it's free of any major market moving announcements. Therefore it lends itself perfectly to technical analysis which is why so many traders, including myself, like to trade during this time.

Of course not everyone around the world can trade during this time due to time differences, but it is unquestionably the best time to trade the markets.

If you are based in Asia or Australia, or even the USA, then you could still make consistent profits from trading, but your best bet would probably be to trade the Yen-related pairs such as the GBP/JPY or the USD/JPY as the other major pairs such as the GBP/USD and EUR/USD are extremely quiet during the Asian session.

So to sum up, although you can potentially make profits at any time of the day, the best time of the day to trade in my experience is during the start of the European session because you get strong movements and trends and you don't have to worry about the market-moving US data releases that often occur later on in the day.

James Woolley runs a blog offering tips and strategies related to forex currency trading and a review of Forex Trading Machine.

Automated Forex Trading Software - Beware Of These Trading Software

These days, if you search for the phrase 'Automated Forex Trading Software' you'll be bombarded with countless offers that claim to give you instant wealth.

"Make $500 in barely 1 hour!"; "Just set it and forget it!"

Such ludicrous claims are unfortunately believed by many unsuspecting people. Can one really get rich in the Forex market simply by purchasing and using such so-called 'automated trading software'?

Please give me two minutes to explain my views, and see if you agree with me.

Issue #1 - What's the formula?

One of the biggest problems I see with such software is the fact that no one (other than the software developer) knows how it works. You see, with the boom of the internet revolution comes a whole new generation of 'anonymous sellers'. These are people who sell products using incredible claims, and yet hide their true identity behind the anonymous blanket of the web.

Now I don't know about you, but I personally wouldn't trade with any software that I don't know how it works. It simply leaves too much space for scammers to operate.

From another point of view, if there really were trading software that can consistently make money for you on autopilot, don't you think that there would be powerful (and rich) individuals who would purchase this technology and keep it to themselves? I certainly would.

If something sounds too good to be true... well, you know the rest. All the truly profitable traders I know got that way through hard work, persistence and having common sense.

Issue #2 - The dependency problem

Assuming that profitable trading software did exist, and you've been using one for some time now... what happens if it stops working for any reason at all? Where does that leave you? You'd be caught dead in the water.

You see, I'd never advice anyone to put the fate of their finances in the hands of a piece of software. If you're lazy and don't want to spend the time to learn how to trade for yourself, then find a trustworthy friend to trade for you, or put your money with professional traders.

There are no free lunches in life... and trading in the Forex market is no different.

To learn more, Click Here to download my free 26-page guide, "Forex Trading Traps!"

Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading tips and resources.