By Bercle George

There are several markets for day trading like currency, stocks, futures and commodities. Many people have heard the buzz about day trading. They have all heard the stories of fortunes being made and lost. With day trading accessible to anyone with a phone or Internet connection, along with the lure of tax free trading it is becoming more popular then ever. With its ever increasing popularity, many more people are asking themselves, what is day trading? Day trading is a style wherein traders either sell all long positions are sold or cover short positions at the end of the trading day.

Some Facts You Should Know In Day Trading:

1. Day traders typically suffer extreme financial losses in their first months of trading.
2. A disciplined day trader can make more money faster day trading, and with less risk, than the average stock trader.
3. In day trading, you usually finish the day with cash in hand, to avoid holding any risks.
4. Most of the day trading systems have about one to three trades each day.
5. One of the biggest enemies of a trading system is transaction costs.

Some Benefits Of Day Trading:

1. One of the benefits of day trading is that since the positions are closed at the end of the trading day, any sudden news of events doesn”t affect the opening prices of trading.
2. The main advantage of day trading is that one’’s stock positions are not held beyond the current trading day.
3. Secondly, day trading allows for lesser speculation as the trader may not see a lot of variation in the values during a span of a day.
4. Awareness regarding day trading stock picks allows a day trader to gain maximum returns from the market.

Some Tips For Day Trading:

1. Like all broker-dealers, day trading firms must register with the SEC and the states in which they do business.
2. One point to remember in stock market day trading is that there is a limit on the gains from a single share.
3. If you plan to invest your money in day trading, make sure you do not put in all your hard earned savings in one go, as this might prove to be quite dangerous for you.
4. In order to use several markets simultaneously, good trading software should be able to open several windows by dividing the screen.
5. Follow the day trading system rule by remembering the number of open positions.

The Forex Trading;

Forex Trading generates a volatility of 500 versus 60 to 100 in liquid stocks, and there are no transaction fees or commissions in the trading of currencies. Day trading, despite differences in times zones throughout the world, is also popular because the forex market remains open 24 hours a day. There are many forex-trading companies that can train you for day trading so that your transactions are not reduced to gambling.

Trading Software:

Good trading software could cost as much as $1,000, but it ensures high-quality service by helping the user to develop and check indicators under different scenarios. Trading software is not only important but necessary to survive in today’’s competitive market.

Some Trading Media:

1. While there are many day traders who do their trading using only the computer, there are others who trade using telephone and mobile phones.
2. The computer age and the Internet revolution are the foundation for electronic day trading.

Day Traders Should Be:

1. A person is considered a day trader when they can accomplish four or more day trades in a five business day period and has two unmet day trade calls in 90 days.
2. In day trading, the trader does not hold stocks until the next day; instead dispose it off by the end of the day.
3. Day traders are more particular with buying and selling not the bottom line.

About The Author

For more information, visit http://www.daytradingabc.com/

By Jason Fielder

A “breakout” is when the market suddenly and quickly jumps out of its recently established range to either gain, or lose, price dramatically. Often times a breakout will occur out of a counter-trend market, but this isn”t always the case.

In fact, many of the articles you will find about breakouts online will actually be focusing only on breakouts that come out of a counter-trend market. While this is the most common type of breakout that Forex trading systems concentrate on, the other breakouts should not be ignored because they also offer excellent opportunities for a Forex trader to make good money.

When a market is counter-trending, traders are watching a market that is staying contained between a high and low range, but the market is moving sideways. When a day’’s trading ends up pushing the currency value out of that contained channel, that’’s a breakout to the upside, and it can go either way, higher or lower. No matter which direction it takes, there is money to be made off of it as long as you”re on the right side of the breakout.

But breakouts aren”t limited just to forming out of counter-trend markets! They can also take place coming out of a trending market. When a market is trending in either direction, there still is a normal range that determines a trend. When the market breaks out beyond the normal range of the trend, that movement is also considered a breakout.

Breakout trading offers opportunity since jumping on the right side of a breakout early offers potential profit in a Forex market. They provide a chance to ride a strong sudden surge of volatility to provide quick and large profits. While breakouts are rarer than other types of market movement, they offer the most money to be made.

This strategy sounds simple, but the problem with playing a breakout is that breakouts are technically unstable, and no one knows how long they will last or when they will suddenly reverse. There are also “false breakouts” where the market appears to be breaking, but isn”t.

There are strategies and indicators that that try and pin point a potential breakout. Some of the most popular include:

1. Using pivot lows and pivot highs to determine potential “pivot points” that indicate an upcoming breakout
2. Fibonacci retracement methods
3. Using multiple moving averages

There are many methods to try and find a breakout, and once an identified breakout begins, a trailing stop is one of the best ways to take maximum advantage of this situation.

About The Author

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

By Asoka Selvarajah

In my opinion, the second biggest challenge that you face in your online forex, stock commodity or futures trading is distraction.

Now, I say the second biggest challenge, because the first challenge is to know what the heck you are doing in the first place! Frankly, if you don”t know that- and most beginner and many intermediate level traders really don”t- then you”re going to need all the distractions you can get to keep you away from the markets so that you don”t keep losing your money!

However, assuming that you do know what you are doing in the markets and have a sound plan, then the next major challenge that you face is distraction. It goes back to what we have discussed about the need for mental focus. However, the issue of distraction is wider ranging. When we spoke about focus, we were talking about the need to focus within all the vast variety of choices available to you in the trading world.

With distractions, the issue is much wider and potentially worse still. Here, we are talking about literally everything that can distract you from your online trading. If you are a private trader working from your home, this can be an endless list; the postman, your cat, the need to get some bills paid,the shopping,the fact that it’’s a sunny day and you”d rather be outside,surfing the internet, checking your email, the telephone, odd jobs around the house, and so on. If you are in this position, I am sure you can add to the list.

Even if you are an investment bank trader, there are still plenty of distractions. Some of the above- email and the internet for example still apply- and there are others. Chatter from your colleagues, meaningless bullshit meetings that you must attend and are not allowed to get out of, the endless stream of media “information” and more.

At least for the institutional trader, it is understood that trading is a business. It is literally his/her job. There is daily accountability involved and it cannot therefore be mistaken for a hobby and treated as one. However, for the person working at home, this is a much easier mistake to fall into, especially at the very start, when you may not have decided upon your trading routine.

Speaking personally, I have to say that distraction is something that I have a big problem battling against, since I do operate from home. The problem is that if your mind is not totally focused upon what you are doing in the financial markets, and getting the process right, the margin for error quietly widens and things can start to go wrong.

The key point to come back to is that trading has to be a business, if it is intended to be your primary source of income for yourself and your family. If that is the case, then it is imperative that you treat it with the seriousness that it deserves. That means that even though you may be working for yourself at home, you need to impose some business disciplines that you would find in a standard office environment.

If at all possible, you should establish for yourself a separate room for your online trading. Wherever possible, you need to give very serious thought to closing the door to family and pets in order to concentrate on what you are doing. (Now, I know that this is hard because my two cats basically have total access to me, and I can”t see that changing. But as the saying goes: do what I say, not what I do!)

Let’’s not forget that neither your friends, your pets, nor your family would have access to you if you were working at an office job somewhere, would they? Hence, closing the door closes out an enormous source of distraction.

Use effective time management principles to deal with other distractions. In other words, schedule other things that need to be done appropriately so that they do not interfere with your trading. Maybe you need to fix upon a time when you check and deal with your email once in the day, or at most twice, but you certainly do not keep looking at it every five minutes or so.

Do you know what constantly checking your email all the time is like?

It’’s like going to your front door every few minutes to see if there is anyone there! Did you ever think of it like that? Well, if you would never do that, why check your email every 5 minutes?!

What’’s the big deal? Well, it takes time away from you focusing upon your business, which is trading, not email checking or chatting idly. When you break your focus, then it takes a certain period of time to restore it. If this keeps happening the whole time, your mind is working hard just to stand still, i.e. to keep getting back to where it left off last time.

That is why it is so vital to get this under control. If not, it is not the trading that is exhausting you, so much as the sheer amount of clutter that you have allowed to invade your own brain. They say that failing to plan is planning to fail. Hence, starting today, sit down and plan out what you can do to minimize the distractions during your trading day. Consider the email challenge. Consider too scheduling certain activities together, e.g. make all of your outgoing calls at the same time, when you go out to the shops, make sure that you get that post office visit done too. Try to handle pieces of paper that come onto your desk once, and don”t keep coming back to them over and over again.

This is all about organizing you, and you are unique. Hence, it is impossible for me or anyone else to give you a list. You have to come up with it yourself, and then go to work to reduce the distraction to your trading. I”ve given you a broad hint in what we have been discussing, but it is ultimately down to you.

Remember, your online trading is a business, not a hobby. It will ultimately, if it is not already, be your primary source of income and that upon which your family depends. Hence, you owe it both to yourself and to them to get serious and to get professional, no matter whether you trade from home or on the proprietary trading desk of the biggest firm on Wall Street.

About The Author

Discover FREE expert Trading videos, podcasts and articles packed
with secret strategies to super-charge your Trading and rocket
your profits. Dr. Asoka Selvarajah also offers you his critical
FREE report, “The 7 Deadly Mistakes Of Online Trading”. Visit
http://www.OnlineTradingRebel.Com right now!

By Jason Fielder

Trend trading is where the big money is in the Forex market. While there is money to be made in counter-trending markets, there is only so much that can be made when the market is essentially moving sideways.

Trading when the market trends is where there is the opportunity to make (and if you”re on the wrong side without a stop-loss, possibly lose) major money.

A market goes into a trend anytime there are more buyers than sellers or more sellers than buyers over a prolonged period of time. This trend can be with prices going up (more buyers than sellers) or down (more sellers than buyers). There is money to be made regardless of which way the trend goes, since all trading is done with pairs.

Figuring out the best way to trade trends involves knowing extensive technical analysis, so having a proven and profitable trading system helps immensely. Without a prove and profitable trading system, it’’s very unlikely that over the long run, you will profit from Forex trend trading.

While there are all sorts of technical tools for analyzing trades, the simplest way to spot a trend, or what might be the beginning of a trend, is to watch and see if each time period’’s high keeps getting higher, indicating the market is steadily trending up in price, or if each period’’s low continues to get lower, indicating a downward trend in price.

If you decide to use bands to help your trend trading, remember that a basic rule when using bands is to wait and see when the high price penetrates the upper band. This is your signal that an upward trend is about to start. You want to buy when that price penetrates the upper band and go long, with a trailing stop loss. There’’s a good chance the market will make an upward trend that a long position can profit from.

When the price penetrates the lowest band of your corridor, you want to sell and go short, watching the market for any confirmations on any further trends, counter-trends, or pivot points that indicate a trend reversal.

The basic goal of trend trading strategies is always the same. While you don”t want to be the first to test the market, once a market trend reveals itself: join the move early!

Then hold your position, making as much money as possible, until the trend reverses and then get out. This is where using a trailing stop loss can help maximize the profits you earn from any market movement.

Trend trading is where the big money is at, and recognizing and getting in on trends early will make you a very happy (and wealthy) trader in the Forex market.

About The Author

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder, Founder, ForexImpact.com

By Bill McCready

To succeed as a futures trader, you need to think creatively about commodities. The story of Sam Brannan, California’’s first millionaire, serves as an excellent example:

At the beginning of the 1848 Gold Rush, Sam Brannan, who owned a general store in Sutter’’s Fort, discovered that John Sutter and James Marshall had discovered gold. Understandably, the discoverers wanted to keep the strike a secret. Brannan agreed, then quietly scoured northern California buying up every shovel, pick and pan he could find until he had cornered the market.

He then went around town yelling, “We found gold!” and the Gold Rush was on. Hundreds of people flocked to northern California, all needing shovels, picks and pans to search for gold. And there was Sam, the only source for hundreds of miles around! Sam Brannan never lifted a shovel, never swung a pick, never shifted a pan in the search for gold, but he became the first millionaire of the Gold Rush — selling shovels.

COMMODITIES PROFITS AND THE INTERNATIONAL APPROACH
There is often more than one way to profit from commodities. Money can be made not only by betting on the need for resources, but on the processing and transporting of those resources. Remember that futures trading is global. Creative thinking requires that you consider the need for resources in one part of the world and probable suppliers and processors who may be located in other parts of the world.

In thinking creatively about commodity futures markets, factor in the following and see where it leads you:
1. Population

We are at the start of what is expected to be the greatest explosion in population growth in human history. The United Nations estimates that world population will increase by 1 billion people per decade for the first five decades of the 21st century. That means that the number of people on our planet will increase from 6.5 billion today to 9 billion by 2050. Population growth has become exponential.

In the 19th century it took 130 years to add 1 billion lives to the planet. Barely 200 years later in the 21st century, it takes just 13 years. More people means greater demand for natural resources (i.e., commodities). Greater demand means rising commodity prices.

2. Urbanization

People need a place to live and are increasingly being lured to cities where the bulk of the world’’s jobs can be found. The exponential growth in population is being accompanied by the greatest increase in urban development the world has ever seen. In the early 20th century, less than 15 percent of the world’’s population lived in cities, according to United Nations statistics. In 2005, a full one-half of the world’’s population lived in cities. By 2030, the U.N. predicts that 60 percent of the world’’s people will be crowded into cities.

People in urban areas consume more natural resources than those in rural areas where life is more sustainable. As urban areas expand, more natural resources and industrial metals will be needed to provide the necessary infrastructure: houses, roads, buildings, cars, hospitals, schools, etc. Whereas cities may have been initially located near plentiful natural resources, the mega-cities of the future may require resources from across the globe.

3. Industrialization
In the 19th century, the first industrial revolution transformed Western Europe and North America. While industrialization has slowly been creeping across the globe during the past century, we are now poised for a second major industrial revolution in what are called the BRIC countries: Brazil, Russia, India and China. The need for natural resources in these countries is enormous and rising fast, pushing up commodity prices as demand rises.

Over the next few decades, China is expected to become the world’’s largest consumer of commodities. Of total world production in 2004, China used one-half the cement; one-third of the steel; one-quarter of the copper and one-fifth of the aluminum. China was also second only to America in oil consumption.

About The Author

Bill McCready is a futures trader. His trading course, Futures Trading Secrets, has helped students all over the world improve their trading. To get 11 FREE futures trading lessons, a video, and free ebook, THE TRUTH ABOUT DAY TRADING, visit his website, http://www.FuturesTradingSecrets.com

By Stephen Campbell

For you to become a successful forex trader you need to know what forex trading is and how to successfully trade foreign-exchange. Sufficient knowledge is essential to foreign exchange trading. You can learn some strategies through on-line foreign exchange tutorials.

An on-line foreign exchange tutorial will explain how the foreign exchange market flows and will also explain the types of foreign-exchange orders that are available to you as a foreign exchange trader. It will also let you know about technical indicators and what they mean, the economic indicators you will need to be aware of and the various options and strategies that are available to you as a forex trader.

Joining the forex trading bandwagon with both feet? Here are some must-know tips on foreign exchange trading and mini-forex to help you stay afloat in the Foreign Exchange currency market.

1.Know your foreign-exchange trading market- educate yourself about the currencies that you trade. The more you understand about the country whose currency you are trading in the forex market, the more precisely you will be able to predict which way the money will move.

2.Practice makes perfect-but it’’s not the real world- practice forex trading accounts are ideal for learning how a particular trading account works but they are not the real world. Many experienced traders recommend starting off with a mini foreign exchange account to minimize your losses while you get acclimated.

3.Pick a forex trading system and stick with it- savvy forex traders will tell you that system is everything. It by system lets you automate your trades based on history, following the traditional peaks and valleys. Set up a system and live with it to make the most of your forex trading.

4.Keep your eye on the margin- margin trading is a great way to lose a lot of money quickly. Stay away from forex margin trading until you are sure you know what you are doing.

5.The only win that counts in foreign-exchange trading is the bottom line- in foreign exchange trading, the bottom line is how much money you made at the end of the day. Don”t count won or lost trades only dollars and cents.

The most essential aspect when it comes to forex trading is to educate yourself about it so that you understand how to trade and how to trade efficiently, successfully. The more you educate yourself with foreign exchange trading the more understanding you will have and the more success.

About The Author

To read more on how to effectively learn about forex trading tips, visit http://www.forexandstocks101.com/

By Jason Fielder

Wouldn”t it be great if you could find a charting system that instead of focusing on minutes, half-hours, hours, days, and weeks, actually followed and tracked the value itself? Point-and-figure charts are charts that do precisely that: they follow the money.

Point-and-figure charts are charts that follow changes in prices, and not time. Many charts are set up on a time scale, and comparisons are then made between the price as it varies from hour to hour or day to day.

These charts are very different in that any column from a point-and-figure chart can represent any amount of time. There is no set amount of time for each figure. Movements take place only when the minimum determined price moves. If the value doesn”t change, no new markings appear on the chart.

Point-and-figure charts differ in several ways from other types of popular charting, but there are 3 major differences that set point-and-figure charts apart.
1. They have simple, well-defined trading rules
2. They eliminate the clutter of price reversals that are below a minimum box value
3. There is no time factor.

Point-and-figure charting was first credited to Charles Dow, who used them around the turn of the century to make a killing on the stock market. Because the technical aspects of point-and-figure were sound, this strategy was picked up for use in analyzing other markets, as well.

Another major difference between point-and-figure charting and some of its technical counterparts is that it has a relatively strict and simple system of buying and selling, so you don”t need to be a math whiz or rocket scientist to figure out when to do what. A “box” is a measurement of a price movement.

If you see a box of X’’s, the overall value went up. A box of O’’s means the overall value went down. When a box of X’’s has an X one higher than the last box’’s, it’’s time to buy. When a box of O’’s goes one below the last column of O’’s, then it’’s time to sell. There are variations, but that is the base system.

What’’s sometimes bizarre about business is when everyone gets caught up in a new system or trend and they”re so intent on adding to it and perfecting it that an old system that works stops getting used. Where’’s the common sense in that?

If you”re trading, you want to be able to keep track of the money. If there’’s a charting system that let’’s you follow the money, and make a profit, who gives a darn if it’’s trendy or not? Going back to common sense, point-and-figure charting is the one method that shows you the money, because it’’s the charting system that only moves with the money.

About The Author

And now I would like to offer you free access to a Forex trading system that is 89.1% accurate, so you can literally start trading the Forex today. You can access it now by going to: http://www.foreximpact.com/reports/89percent/

From Jason Fielder: Founder, ForexImpact.com

By Sam Beatson

Forex trading is not for individuals who are not smart. It is for sophisticated traders who know how to trade the markets. However forex is marketed like it’’s the money-tree that everyone was searching for - and all you have to do is sign up to “our brokerage” and suddenly you”ll have “the keys to the kingdom!”

Fat chance! Chances are that if you”re in forex, like 95% of others, you are actually a “loser”. It’’s not a nice word to use, but unfortunately, a new “industry” of forex brokers, courses, introducing brokers, mentors, authors and commentators would not have spawned unless there were millions willing to spend money like consumer gamblers trying to make their fortune based on the lies of advertising and marketing.

Therefore, most of the people trading forex as retail investors, despite the fact they may have spent literally tens of thousands on seminars and courses, still don”t have the slightest clue of what they are actually doing or where they are headed with their trading.

The result is that they complain and they moan and they try to find the “holy grail” of forex trading in forex forums, through more books, courses and through spending more money gambling in the forex market. If that is you, here is where it ends.

Forex involves huge amounts of money with contracts and volume that make the US stock market seem like Mickey Mouse. The real winners are the brokers and the banks who have inside information, capital and influence to be able to profit and keep on profitting no matter what direction the market is moving.

A “piece of the action” is just another way of marketing a short-term fix (you being able to trade using a forex brokers platform from your family PC) for your long-term pain (the losses in time, money and energy you will incur from not really knowing what you are doing apart from you want to get rich quick or at least make some money). The truth, the whole truth and nothing but the truth about forex continues…

You can rest assured that there will be many “versions” of this original article on the internet within weeks if not days. This is because the marketers and those trying to cash in on the forex explosion will plagiarise and do anything they can to get their message out as well - after all, it’’s your money that everyone is after.

In forex, a successful forex broker will trade. They made trade against their unwitting clients (to “mop up” capital they can keep for themselves) and also because they are in the position of power and knowledge that we talked about earlier.

Being able to know what trades have been placed on the books puts the forex broker at a huge advantage. Same as with the bank trading floor leaders. A team leader will instruct their team (for example a team trading the EUR) when to buy and sell. Sometimes it will be to take out stop losses of their clients and then get in at the start of moves in the opposite direction, other times it will be following the lead of mor influential players. Either way the forex broker wins. And that is how a lot of people have made money in forex - by being a broker, not limiting themselves to just trading, but sales is a part of the banking system, is it not? After all, diversification is a kind of rule in investment circles too, correct? What makes forex any different?

So the key therefore to successful trading without the capital and “insider knowledge” advantage of the leading forex broker is to be able to understand what the moves are that the forex broker team leaders identify as the entry points for their teams and therefore the market direction effectively. That is not to say that forex broker teams, hedge funds or banks control the market direction as individual entities neccessarily, but it assumes the broker is successful at trading.

Once the way in which the brokerage trades is identified - the strategy is elicited, a whole new doorway is opened up for the retail investor. The forex trading game no longer becomes a game of chance and luck with the odds dramatically against, it is a game of skill with some luck added in to the mix. This is the state of the forex market today.

Further to the “insider information” of how to trade forex like a professional forex fund, having a business plan and being able to action it are of course vital. This means that the person who is the forex trader needs to learn and grow, to be flexible and to be able to think independently.

About The Author

Sam Beatson of http://www.fasttrackforex.com is known as “THE Master Forex Trainer”. Specialising in helping the retail forex trader to become extremely successful, he also offers training to the recruits of banks and brokerages in how to outshine their greatest expectations.

By Jim Brown

Before choosing a particular online trading system to invest monies and trade stocks, an investor might access several trading systems on the internet just to find out what discount offers they provide and to establish an account with that firm. Online brokerage firms use established trading systems to track monetary trading transactions that occur around the world and they have ample room in the operating budget to accommodate additional investors too.

Some of the trading systems available online will offer investors free access to operating software that will let them practice the various methods used to conduct online trades. Some of these software packages will deal only with trading options and futures, and would not be a good tool to use by the investor who is also interested in trading online that include World Banks and foreign currency exchanges that occur 24-hours a day, around the world.

The trading systems used for FOREX or foreign currency exchanges might include software that works on an individual account, or if the investor is part of an investment group, it might offer trading in foreign currencies on a platform basis which is complex to monitor by one individual. The trading tools offered in the trading systems for FOREX investors could make a dramatic difference to the amount of money that is earned every trading day.

If these tools were not available through certain trading systems online, then investors would choose another that did provide what they needed to make money. Some employ a limited number of brokers because the system is automated. Some investors do not feel confident about turning over control of large sums of cash to a software program and will turn to those online trading systems that believe in providing investors with personal contact with an investment professional at any time of the day.

Even with software programs installed on the home computer system, some trading investors still want to get a feel about performing online trades for a while before placing real cash on the line. This is the time when free trading using virtual money is the hottest commodity around. Investors feel that gaining knowledge about the online trading system will have a direct reflection on the amount of money that is made per day, and trading systems available online that do not have tutorials are of no use to the perceptive investor who wants to learn about all the trading options at his disposal.

The online trading systems that provide investors with several methods to chart trade prices will gain the most favor. The world of trading is very exact, yet complex and trading in different markets at one time will require a somehow accurate trading system capable of monitoring all activities at once. While trading brokers can advise on certain buys and sells, an investor will feel more confident if they can view the buying and selling trends for themselves through the charts that are loaded and made available on the online trading operating system.

About The Author

James Brown writes about http://www.latestcouponcodes.com

By James Woolley

Forex trading is often a very lonely profession which is why so many traders like visiting forex forums and chatting with other like-minded traders. However, what a lot of people don”t realise is that forex forums can actually be responsible for making a dent in your bankroll.

Why?

Well there are a few reasons for this.

Firstly, if you visit any forex forum you will nearly always find that there are some posters who love broadcasting their trading positions to the other forum members and enjoy the attention they get from their loyal followers. It’’s basically an ego trip. If they make a few good calls, then they seem to get instant adoration and inexperienced traders will start to follow them and even copy their positions.

This is a trap that you really don”t want to fall into. The minute you find yourself copying other peoples” positions is the time when you should take a step back and have a good look at yourself.

You may not even realise you”re doing it. For example, you may consider taking a position but decide to go to the forums to see if other traders are taking the same position, for confirmation. It’’s important to note that just because lots of people on the forum are all taking long positions, for example, the price will not necessarily go up.

I was on a forum last week and nearly all of the regular forum members were going long on the GBP/USD. However all of my indicators were indicating that we were heavily overbought, and despite being in the majority I traded using my own tried and trusted system, took a short position, and as I write this article the GBP/USD is about 210 points lower.

So always make your own trading decisions and then you only have yourself to blame. Don”t look to others for advice or confirmation.

Similarly, on the other side of the coin, you don”t want to be the one who goes onto forums and boasts about how good a trader you are and announce your positions to everyone. This may boost your ego but it can affect your trading.

For example, if you announce your latest position to the forum and it quickly moves against you, you may disregard your normal stop loss policy and stay in a position longer than necessary in order to justify your position to your loyal followers. This could lead to even further losses.

So please don”t become one of these people. After all do you really think the best traders in the world hang around on forex forums? No of course they don”t, they”re too busy making money.

Finally there is one other way in which forex forums can damage your wealth and that’’s by following systems given on forums. Sure you can pick up some great ideas, but be careful about jumping in and blindly following the latest new trading system.

Always be sure to thoroughly back-test any system you may come across and either use a demo account to test it out for a period of time or use very small stakes.

Forex forums can be a very valuable resource for learning new trading ideas and strategies, but be careful about blindly following any one system or poster, and try not to start broadcasting your positions as soon as you achieve any level of success.

About The Author

James Woolley runs a blog at http://theforexarticles.com where you can learn forex trading. You can also read his review of Avi Frister’’s Forex Trading Machine by visiting http://theforexarticles.com/forex-trading-machine-review