The Benefits of Forex Trading Tutorials

Excellent forex trading tutorials are available online. For beginners, a tutorial provides a complete overview of trading forex, including guidelines, terminology, strategies, tips, and technical analysis.

trader at desk

A tutorial can often be downloaded from the provider’s website as a PDF for a leisurely read or browsed right at your computer desk.

A forex trading tutorial is sufficiently insightful to give you a decent overview as the people behind them usually come from a trading background.

Many of the ideas and strategies available do not always have a mention in books. The forex trading tutorial method, through both audio and video, makes the learning process exciting and motivational and learning can be a realistic simulation of a live trading situation.

Finding The Best Online Trading Tutorials

Many membership-based websites also exist where forex traders can interact. These websites often provide a forex trading tutorial for a fee and sometimes even free. Here are five of the best online tutorial websites to consider:

1. The Forex Trading Coach

A highly recommended online tutorial called ‘The Successful Trader System’ which includes live trading room webinars

black and white chart on a screen

2. Forex4Noobs

It targets helping novice forex traders in understanding how price action works through analysis and tips.

3. Trade with Precision

A selection of training courses and tutorials that shows you how to develop strategies, risk management techniques and having a trader mindset

4. Learn to Trade

A forex education site with free resources and tutorials that cover the needs of anyone new to forex trading

5. Market Traders Institute

If you are looking to take your forex education to the next level and learn about software and strategies

Moving Forward to Live Trading

open a demo account

It is essential to open a trading account with an online forex broker once you develop proficient forex knowledge through tutorials.

Most brokers provide you with a demo account to test their software before you commit to opening an account and trading with your capital.

It will allow you to test your trading knowledge and start developing strategies and techniques through testing leading to your successful trading system.

Final Thoughts

Trading tutorials are essential. Without learning the basics of forex, you cannot trade without incurring losses on your brokerage capital account. Although knowledge is vital, you cannot trade without a trading strategy. A trading system will allow you to trade with discipline and without emotion.

Trading is a two-step process. Build knowledge and then build a trading strategy.

Forex automated trading systems and software explained

No product becomes popular without possessing something attractive and beneficial for the targeted user. The industry of trading has become quite popular and there are number of reasons for this popularity. Some of the benefits include the fact the foreign exchange market is open day and night all over the world and is extremely liquid. Currently, it has been reported that every day 2$ billions changes hands.

automated fx software

Automated trading systems play an important role in this industry. Through the program you can trade currencies online on autopilot, without needing any human supervision. The aim of the program is to maximize your profits to its full potential. It achieves its purpose by identifying and capitalizing on signals when to initial or exit trades as per the parameters initially defined.

They are scripted and encoded in a way that the mathematical algorithms are able to produce money-spinning results. It is worthwhile to mention that functioning of these systems is dependent very much on the extent of how well the system has been executed and programmed.

forex samurai

Although the systems work on autopilot, your trading skill and the experience you have as a trader is also important as it increases your chances of finding and exploiting more trading opportunities. Trading programs can be aiding tools in the process of your earning money, but your trading skills remain your most important assets.

They can only help but not lead the way to success. Also, you have to understand that there are no immediate returns, systems can be beneficial in long term and you must understand how they function.

It is generally claimed that most programs can generate a regular income for $100 or so to say the least. But that is not always true. The back tests that they offer as a proof are not actually a proof. The reason being those tests are conducted in only favorable conditions without projecting the element of unpredictability of the market. Often it is assumed that the simulation profits of the software will actually repeat itself in real life. However, it is not history. Simulation track record never repeats itself.

master scalper software

It is a very difficult choice as in which autopilot system is suitable for you. There are numerous trading systems available. Not all of these trading systems are useful. Some of them are just worthless pieces of software. But is it not like going to the moon and back to find an affordable system which actually performs well. I would suggest that you choose systems, which has good price and all the functions are as per your business needs.

Avoiding Mistakes – Forex Tips for beginners

currency graph

Depleting your capital account with your online broker is undesirable.

As an inexperienced trader, what are the ways that you can cut out mistakes and limit trading losses?

We highlight what essential controls need to be maintained to at least give yourself a chance to make profits as a forex trader.

Essential controls to avoid trading mistakes

1 Master one strategy at a time

If you are new to forex trading, trying to learn too many strategies could slow up your learning process and cause losses on your trading account.

As you become more experienced, it is reasonable to use different trading strategies, but at the beginning, master one strategy at a time.

2 Simplify your trading

Novice traders tend to overcomplicate trading creating technical indicators and trying different expert advisors.  If you use chart software, your chart may obscure by all the technical indicators flashing up on the screen.

It is best to focus on the raw price action that presents itself on every chart. Learn what the price is telling you, and the simplicity of trading will become apparent to you.

3 Avoid trading in different markets

Novice traders tend to trade on multiple markets with little understanding of the market. Known as noise trading, traders enter trades without the proper technical or fundamental research to justify the trade. If you want to trade on different markets, it is essential first to trade them on a demo account.

4 Over leveraging positions

Inexperienced traders are often susceptible to using too much leverage in their trades. Online brokers offer levels of leverage that put the capital account of a new trader at risk. Leverage of more than 100:1 is not uncommon. As the amount of leverage magnifies the profit and loss on a trade, it needs monitoring.

5 Lack of research

Proper research of a currency pair or currency market is essential to trade successfully. In-depth analysis should shed light on entry and exit timings and market trends. There may be slight differences between currency pairs and how they work. Detailed research is essential to put a proper strategy in place.

Simulated Forex Trading: Vital Research for Traders

Simulated trading uses a theoretical trading balance to practice on instead of using your capital held in your brokerage account. There are two types of simulated trading which we will now cover for you.

A Look at Back Testing

With backtesting, you use trading software along with historical data to place theoretical or dummy trades to simulate as if you were trading during the period under analysis.

back testing historical data

It does not matter if your dummy trades are manual or employ automated trading software. It is an excellent way to test new trading software, which you may be considering using to form part of your broader trading strategy and is essential work.

Looking back through historical data allows you to fully understand how a currency pair moves and how it reacts to specific macro events, particularly economic data. Backtesting is crucial as it is entirely relevant to the market conditions at the time.

For a novice trader backtesting is crucial. It builds confidence that a trading strategy you want to implement will work. Undertaking specific trades or a strategy when your capital is on the line with a low degree of certainty is undesirable.

You will understand the statistical expectancy if you can undertake fifty dummy trades or more using historical data as a trading basis. It is the likelihood of knowing if your strategy has a good chance of making a profit over the long term.

Employing Demo Trading

The second type of simulated forex trading is using a demo trading account or demo trading. Most online forex brokers give the option of practicing with a demo account, which is just like a live trading account except you trade with a theoretical balance.

The trading platform and the price action are similar to the experience of using your capital in live market conditions.

Simulated forex trading is an excellent way to build experience because you can take the fundamentals you get from backtesting and apply them using your funds and find out if the system you developed will work.

Our Final Thoughts on Simulated Trading

Simulated trading is essential. For the new trader, it allows for the exploration of a strategy that will work based on positive expectancy. A robust trading system will lead to trading with discipline, not on emotion, the forex trader’s bane. It is a great start to moving forward and trading on your brokerage account profitably.

Forex Killer Signal Software Review

forex killer software

A signal generator or a program that does all the analytical work in finding trading signals for a chosen currency pair has plenty of merits as part of a trader’s broader trading system. A problem facing traders is when to correctly enter a trade if there is doubt over the strength of a signal.

Automatic and unbiased trading signals from the signal generating software helps eliminate the uncertainty of whether to enter into a trade.

By taking out the analytical work involved in technical analysis, traders can focus on other research areas, including price action and fundamental analysis. One of the best forex pickers is the forex killer.

Forex Killer Is A Signal Generator

As a signal generator, Forex Killer should not be confused with automated trade programs like Odin or Vader, which carry out the actual trading work.

Forex Killer requires a little more from you in this respect and is ideal for traders who want more control over their trades than an automated program that finds trading opportunities, acts on them, and then pulls out when that trade goes south.

To use Forex Killer, you need to have a basic knowledge of the forex market that extends to technical analysis.

Forex Killer works well to spot trends and signals

Dramatic names aside, Forex Killer is a very competent and powerful forex signal software tool designed by a successful forex trader called Andreas Kirsch Berger. Its algorithms, which it uses to trade, are based on several winning trading techniques, all bundled into one trend scouring forex picker.

Forex Killer also makes use of behavioral overlaps finding strong trends from the past and looking for similarities in the current market for a currency pair. Professional traders have always used historical data for trading directions regularly.

Forex Killer Key Features

  • Free lifetime software updates
  • An easy to understand software tool
  • Independent software that is compatible with many trading platforms
  • Works with wide ranging currency pairs
  • Suitable for both new and experienced FX traders

Results

Traders report profitable outcomes using Forex Killer on signals generating a 75% probability and upwards.

The Importance of Demo Trading in Forex

A vital forex tip is to use a demo account when you first start trading online.

forex charts on a screen

Undertake demo trading for the first three months before you start trading with real money. All good online brokers will offer a demo account.

It is a crucial tip to cut your teeth on the forex trading demo account. Familiarize yourself with the software and the platform. It is essential only to study one or two of the major currency pairs; the major currency pairs are the best to follow as they are the most liquid.

Demo trading allows you to develop a feel for the market

A demo account allows you to get a feel for your chosen currency pairs’ movements. Demo trading also allows you to hone your wider forex strategy through backtesting and paper trading until you are ready to progress to real money. F

or example, Cable or the GBP/USD can be very busy in the morning European session but is quieter once the American market gets into full swing. Learn and get a feel for these and other such trends before you start trading with real money.

The best way to trade forex is to confirm a trend. A trend is confirmed by looking at a chart, a process known as technical analysis. Many traders make it their business to predict where the market is going before it happens and trade accordingly. It is a crucial and essential for forex trading.

Bonus tip

Depending on what time frame you want to take a strategic position will make a big difference for your overall strategies. A bonus tip is if you are taking a position over the short term, perhaps one week to one month, then you do not want to be looking at a long term chart. When you are starting, have a plan, and keep everything simple.

Considerations When Buying Forex Trading Software

Purchasing the right forex trading software at the outset is crucial if trading software is part of a broader FX strategy that you want to pursue. Opting for the wrong software and your forex trading career could go from very good to very poor in a short time.

FX software

The concept of using forex software, which provides you with charts and graphs and sends signals, may seem desirable. However, to justify the implementation of software, your sole concern when undertaking research should be functionality alone.

Search online and find out as much as you can. Do your homework and make sure you understand what you need to know. Unless you know how all the features in forex trading software works, you will not be in an excellent position to analyze the software by backtesting and paper trading as part of a broader strategy.

Forums as soundboards

If you feel you may have identified the right forex software package, hold off instead of purchasing it immediately. Authoritative reviews and forum feedback on the software are essential reading. You need to invest in the software only when your exhaustive research has identified that it is the best option for any more comprehensive trading strategy.

The best forums for foreign exchange where you can interact with the Forex Community, including for trading software include but are not limited to the following:

EarnForex

A forum with a large community ensuring quick answers to your questions

MT5 Forum

A valuable forum dedicated to software around the MetaTrader trading platform

Forex Abode Forum

A forum with a large community with a heavy emphasis on the subject of analysis

Babypips Forum

A forum focusing on the needs of beginners which is the overall aim of the Babypips site

Historical charts, patterns and signals

chart software on a screen

Professional forex traders use charts to check the markets daily, and view historical data to make informed decisions as part of their overall trading strategy.

Basing decisions on historical forex charts, records and patterns in order to make sound and rational decisions is common sense. For example, cable has sat below 2.40 since 1980 and has never been back to the same spot ever since. Such data, must be valuable to a position trader.

Charts can give you a long term report of the position and strength of certain pairs. Inevitably there will be pairs that remain strong throughout.

charts on a screen

Charts are crucial for making rational decisions based on signals and patterns

As well as trading software, credible historical forex charts are made available by economic institutions that have been involved in the long term analysis of fundamental and technical trends.

It is important that you derive your historical charts from a reputable institution as the value of the chart is diminished based on the lack of accuracy.

The Difficulty With Short-Term Forex Trading Strategies

chart analysis

Trading in short time periods, typically within a trading day, for day traders means volatility is more unpredictable than the effect of volatility over the longer term for position traders.

Support and resistance levels in short term charts are less reliable to use than long term technical indicators. It is challenging to try and trade from hourly charts or even shorter time frames.

If your forex trading strategy does rely on using a system to trade the short term, it necessitates having a tight stop loss. It allows you to get in and out of trades up to several times a day if you are scalping the market.

Scalping using leverage and a strategy with a narrow edge to make money from the market does not leave much margin for error.

Without a tight stop-loss and disciplined money management trading 1% to 2% of your trading capital account, then short term strategies can cause significant losses. A tight stop-loss may be as low as ten pips from the current underlying market

The Effect of Macro-Events on Short Term Trading

The problem with short term trading lies in an unexpected macro-event or news that moves the market more than your hourly chart or technical analysis on a given day.

If there is a catastrophe or an unexpectedly lousy piece of economic data that comes out, the currency pair you are trading could quickly move more than one big figure. Without a tight stop-loss and a disciplined strategy, your forex trading losses would rapidly get out of control.

If You Can, Trade for The Long Term

Many forex traders cannot trade for the long term and becpme position traders. Day traders need to make money every day to earn a living by scalping the market. A couple of pips here and there only create a decent trading profit through frequent trading.

Taking a longer-term strategic position will require a deeper stop loss and trading with a higher percentage of your capital account. A larger transaction size justifies inactivity in the market by holding out for more significant currency moves.

A long-term trading strategy means that you are not affected by what happens on any one given day. You can forget trying to predict short term trends.

A Parting Thought

The forex markets are a market of probabilities and not certainties. Trading long term forex trends make big profits; if you have the means forget about trading the short term where unpredictable or unforeseen events will always mean that the odds are always on a knife edge.

Take the Easy Path to Forex Trading

charting software

The key to successful trading, if you are new to forex, lies in choosing only one or two major currency pairs to trade.

Whether it is GBP USD, EUR USD, or USD JPY, you must follow these currency pairs until you have a good feel for price action and understand how they react in certain market conditions and to your selected technical indicators. You will need to use charting software as part of your overall FX strategy.

Before you start trading, it is essential to decide upon a strategy and not just enter the market blindly. 

  • Decide whether you want to trade based on fundamental analysis, technical analysis, or both.
  • Do you want to be a scalper or a position trader?
  • Do you want to include manual or automated software as part of your forex trading system?
  • Do you want to trade one session spanning either the European, US, or Asian trading day?

The Importance of Technical Analysis and Charting Software

Most forex traders use technical analysis. In technical analysis, the charts supply plenty of data on what is happening to a specific currency pair, and in most instances, the fundamentals reflect in the charts.

Many believe that a trader is only as good as the charting software employed as part of a trading system. There are excellent software charting tools on the market, and many can also plug into your brokers’ Electronic trader platform. Good charting software includes Trendspider, an AI-powered technical analysis tool, and TradingView, which provides cloud-based charting software that you can access from anywhere.

open a forex demo account

Online forex software available to suit all trading styles is why online forex trading has become so popular. From manual charting software to the growth in Expert Advisors, which help you trade using algorithms, the choice can appear overwhelming.

As a beginner, you should also open an FX demo trading account to practice and test your techniques. Most online broker companies will allow you to open a demo account without committing to trade through a live brokerage capital account. It will also enable you to undertake backtesting of multiple trades to test your trading system against historical data and see how the statistical expectancy looks.

Our Takeaway

It would help if you remembered that technical analysis will always be an essential element of your forex trading strategy. For an easy path to a profitable strategy, spend time learning technical analysis and integrating the best charting software that you can find.