Day Trading Forex Currency, Hype, Lies and TANSTAAFL

Day trading Forex currency is all about making big money. Some investors have found it quite easy to make a large amount of money by day trading the Forex currency markets as they change hour by hour. But, you see that "some" in the previous sentence? What that means is that a lot of people don't make a dime and even lose a lot of money.

Usually a Forex trading system course is hyped as an easy way to make a bundle. Get your Forex trading secret and your Forex trading tool and you're golden - day trading Forex currency for vast riches. Lies. What you tend to find is that there isn't any Forex trading secret, it's the same old tired stuff repeated over and over on sales page after sales page, generally by so-called "experts" who aren't. And that so-called Forex trading tool or software? Another lame canned system that promises but won't deliver.

And now, what's TANSTAAFL? Online and offline this is the antidote to the big con. There Ain't No Such Thing As A Free Lunch. Fast, easy, no work, instant riches. Doesn't exist. Absolutely anything that is worth your attention is going to cost you effort, time and probably money. Anything else is a pack of lies, hype or deceptive sales yap.

It is important to learn that limit orders can be only placed at least the minimum distance from the current market price.

You will probably not make much money day trading Forex currency. In fact, you will probably lose money. Unless you are really smart about how you do it and who you listen to. Sorry, but that's the real truth. There is no secret, no magic tool, no perfect Forex day trading strategy.

What you're going to find are a bunch of Forex trading systems, courses, techniques and tools that purport to tell you just what to do and when and how to do it. If you buy into one of these things - a ready-made off-the-shelf turnkey Forex trading system course, you're going the wrong way. This is just the same old tired search for a magic, easy, thought-free and work-free solution that lies behind every successful scam. If it were that easy, we'd all be rich already, wouldn't we? If there really were a genuine Forex trading secret, tool or strategy that would make you rich, do you actually think anyone would be stupid enough to sell it? Think about it when you see one of those hyped sales pitches claiming it's easy and quick and the money will be rolling in.

In the Forex currency market, despite all the nonsense about leverage, timing and signals - if you test it out, you'll find most signals are little better than random noise and that trying to time the market will usually end up with you experiencing consistently bad timing. Canned, simplistic approaches to a complex market just don't work.

How about technical analysis like you'll find in many a Forex trading tool? It's been said (though not by the "wizards" selling technical analysis systems with some spiffy name) that of all the major markets, Forex is the least amenable to technical analysis.

Even the basic wisdom of "buy low, sell high" needs to be seen within a special context when you start working at day trading Forex currency.

If this seems overly discouraging overall, you need to remember the sheer amount of hype and outright lies that are prevalent in this area. You need to be prepared to be coldly realistic. You absolutely have to think of Forex as a serious, complex real business. One that requires close attention and serious study. You need to be careful getting into it, careful whose advice you take, and careful about learning as much as you can from a real expert.

Certainly it's possible to make money. But, your chances of making money by day trading Forex currency will be vastly increased if you are wide awake when you get into it. Stop dreaming about fast easy money with no work or effort. Get to learning the realities so you can develop your own Forex trading strategies, ones that work for you. It will take time and effort, but then, maybe Forex trading will truly be your road to financial freedom.

Copyright (c) 2006 Richard Keir

Richard is a researcher, writer, programmer and marketer and he's tired of all the hype. Discover the realities of day trading Forex currency now.

Automated Trading Orders in Forex Trading

Practical trading involves lots of simulations and automated trade orders using the power of computer. Charting, graph plotting, and automated trade orders; all these are used to enlighten your routine trading work and it spares you more time in studying the market.

Some of the well known trading orders are zero stops, stop order, limit orders, good till cancelled (GTC), as well as market on close order. These orders are used along with different trade strategies in different trading market. In Forex trading, limit orders and stop loss orders are the two auto-trade order used.

Limit orders:

As a trader, you can place these orders when you wish to buy/sell the currency at a better price compare to current market. Limit orders are often used to take win automatically when the price reaches certain level. For example, current EUR/USD is at 1.2693 and your predetermined limit order is to sell all at 1.2700. The order will auto-execute whenever the price reach 1.2700.

It is important to learn that limit orders can be only placed at least the minimum distance from the current market price. Also, such order can be cancelled or modified anytime by you as long as the limit order price tag is set further than the minimum distance allowed.

Stop orders:

Stop orders, or sometimes known as stop loss orders, are automated orders used to restrict and limit the losses of an open position. It can also be used to lock on a profit in your trade when the market is going in your favored direction.

Stop orders work similarly to limit sell orders, it predetermine what is the lowest price to sell in certain deals. For example, EUR/USD 1.2693 with stop order at 1.2685, the system will sell your portion of USD if the price touches the 1.2685 level. The price 1.2685 is guaranteed on such case, meaning even if the market sink too fast and it falls below 1.2685, you still can sell your money in the price that you set earlier. Stop order works perfectly well in handling your risks profile.

Forex nowadays had become one of the most fast growing trading markets in the world. Since the currency exchange market is opened to public in year 1998, we are seeing more and more traders involve in the FX market. Trading Forex might sound easy but the risks involved are extensive. We suggest beginner traders to sharpen their skills and fully utilize trading orders to maintain their risks profile.

Teddy, experienced writter and webmaster. Get useful Forex trading tips and secrets at http://www.golearnforex.net

 

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