Forex Trading vs Stock Investing

Everyone says that the safest way to make money in stock market is by long term investing. In fact long term investors could have the big disadvantage. Active forex traders can get higher returns.

There are many reasons why forex trading can be a safer than a long term stock investing. Traders can make money both market direction. Unlike a long term stock investor only makes money in bulls market and loses his money in a bears market, forex traders can take advantage of the long or short market .


Successful forex traders base their conclusion of price, the trends and patterns. This is a better way to grow your capital because what you make  is ultimately what the stock does not what the company does.

If you are actively trading in the forex market you can learn from your past trades. The more you learn the better trader you will become. While someone who invest for the long term can´t use what they learned from their past trades into their new trades because their last trades lasted 30 years.

Even 50 Pips a Month Can Make You Rich

Read this short article and you may realize that becoming rich on Forex is not as difficult as other people keeps telling you.
All you need is to remember this:

"Even 50 Pips a Month Can Make You Rich"

It is absolutely true!

So let´s do some math. You have $1,000 starting capital. You set your lot size to 1 mini lot to trade safely. Now let´s assume you make 50 pips profit each month. That is 600 pips a year. And that equals approx. to 60% ROI (return on investment)

Now let´s see how much it gives you if you compound your profits every year.

Years	Profit
10	$109,951
12	$281,474
15	$1,152,921

Really nice, right? And if you invested $10k instead of $1k at the beginning, you would make your first million in 10 years.

So trade safely and remember: Even 50pips monthly can make you rich soon.
If you do not know how to trade yourself, you can auto-copy other forex signal providers (traders).

Difference Trading vs Gambling

Many forex traders are likely act like gambling. This is mostly because of the unpredictability of the forex market. As in gambling, outcome of any trading action in stock or currency markets is likely uncertain. If the players always knew the outcome then everybody could become rich overnight. They act and think like gamblers, they have behaviour using greed, fear and hope.


What trully separate good traders from gamblers? The fact is most of forex traders gamblers do trade by emotion. But there are important differences which make day trading in forex currencies unlike gambling. It is a good trading plan, tools and trading rules.

There are several tools available for a day trader which are not available in gambling. In markets there are a large number of traders. None of them can influence the market. The market is driven by news. In gambling it is allways a matter of chance.

Average ROI on Zulutrade

Average ROI on Zulutrade is hard to calculate. There are thousands of signal providers and their ROI vary from -3,000% to +3,000%.
However, the top signal providers on Zulutrade have ROI between 100 and 300% per year.
You can see top providers on the ranking page.

Forex Expert Advisors

Forex expert advisor or forex robot is a very sophisticated forex software tool for trading on the Forex Market. They are constructed based on a strict set of rules and parameters and they are designed to easily fit into your trading platform to execute your trades automaticaly.

Majority of Forex EA can be automated while others are only to be used at your own discretion. It is up to you how you wish to use them and profit from their distinct features.

Many traders fail on the Forex Market because they give into their emotions while trading, and make wrong decisions based on your fear, greed or to chase losses.

The expert advisor has a fixed trading plan, and because it is a trading like a robot it will stick to its plan no matter what, without being influenced by outside factors like emotions, stresses, fatique or in other words the robot trade fully disciplined.

Average Pips 211 per trade

Today (3. November 2012) I am going to review new #1 Zulutrade Signal Provider : "good good system"


Here are basic stats:

Zulutrade Ranking: #27
Pips Profit: 17.3k
Trades: 82
AVG. Pips: 211
Win%: 95%
Average trade time : 16days
Weeks: 12
Max. DrawDown: 5% (800 pips)
Followers: 1238
Max. open trades: 30 , recently changed to 5
NME (Necessary Minimum Equity): $394


Review:
Altough this SP is in a big profit, we think that this profit was generated with a medium risk (30 open trades, 800 pips dradown). So as chart shows , you can really make a very nice profit, but set your lot size according to these stats., so that your account can survive 800 pips drawdown. So according to NME you should have at least $394 of your capital for every micro lot you will trade. And remember, this provider used to open 30 trades at same time, altough changed recently to 5 only.

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Trading System Plan vs Emotion Trading

This is already a never ending battle between Forex Trading system vs Trader emotions. When you are trading with emotions, you are simply gambling. On the other hand, when you use a proven forex trading strategy and a good trading plan on your side, trading can be as easy as 1-2-3. The key to a trading plan is to keep each investment consistent. When you are consistent and the odds are in your favor, it is no longer gambling stye.

Everyday something strange happen to a trader’s mental health like losses. Seeing your account balance rise and fall can take a huge toll on your mental health and influence the way you place future trades. When you are angry, it’s likely you will ignore pivot, support or resistance points, as well as your own proven systems, techniques and strategies, simply to blow off steam.

There is not better way to boost your trading profits than to switch from your emotional system of chance and luck to a very planned, formulated trading strategy that will produce nice profits in the long run. Using a good plan to outline your trading decisions makes your trading easier. Making money trading only happens by taking number of quality trades that present great reasons which warrant for you to pull the trigger. There is still a large difference between those traders who trade on mathematics principles and those who trade simply on luck and gamble of their own superior intellect.

With a simple and proven forex trading strategy on your side, it is almost impossible to lose your capital in the long run. By staying true to your solid trading plan that generates winning trades, your long-term financial health will still remain in the green. Even with just a snall 5% profit with each account balance turnover, you are on your way to financial freedom.

Forex Charting Software

Should you trade the forex currency then you should also know the different strategies of reading the forex chart. For this reason you should attempt to get the latest data about reading the forex charts. Then you would be also able to earn huge market profits simply speaking in very little duration of time.

You’d realize that the very experienced trader would always make proper trading training before jumping into the market of forex. In case you are a beginner learner then it is wise to start your trading using the nominal amount. You must not invest a big amount at a certain point of your time.

Forex charting software offers a relief for people who wish to become a successful trader and need to get the offer they wish. You will find very different methods which will help you to analyze data that you want to own.

If you are using any charting software like your tool then you should study the variations which might be going on in forex. The data you get would allow you to trade in the market.

Artem1584: New #1 Top Zulutrade Signal Provider

Today (1. November 2012) I am going to review new #1 Zulutrade Signal Provider : "Artem1584"


Here are basic stats:

Zulutrade Ranking: #1
Pips Profit: 10.4k
Trades: 1606
AVG. Pips: 6
Win%: 55%
Average trade time : 15hours
Weeks: 52
Max. DrawDown: 18% (1.8 k pips)
ROI: 303%
Followers: 1015
Max. open trades: 16
NME (Necessary Minimum Equity): $455


Review:
Altough this SP is in profit, we think that this profit was generated with a medium risk (16 open trades, 1.8k pips dradown). So as chart shows , you can really make a very nice profit, but set your lot size according to these stats., so that your account can survive 2k pips drawdown. So according to NME you should have at least $455 of your capital for every micro lot you will trade. And remember, this provider open 16 trades at same time.

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Japanese Candlestick Charting

The very beauty of candlestick charts is the candlestick shapes when viewed in relation to another form patterns many of which have been named such as ‘Morning Star’ or ‘Dark Cloud Cover’ and once you learn how to recognize these patterns it is easy to identify trends in the market.

These candlesticks were invented by Japanese to analyze rice contracts. The candlestick charts are very similar to bar charts but are much more easier to read because they are color-coded. For example, green candlesticks shows rising prices while red candlesticks shows us falling prices.

Traders should have an ability to keep track of currency pairs by learning their skill of reading live or real time Forex charts to simply recognize the pattern and get to know how to use it. Then you will be well on your way to trade with a fair degree of confidence.

Real time Forex charts can give you a huge deal of information about your currency pair which is often supplemented by using a number of technical indicators like trend, strength, volatility and cycle indicators all of which are well used to predict both movements of the market and market volume.