Every currency will range at one time or another. Especially after large moves, traders need to take a break and step away, and so the currency tends to range back and forth. But some currency pairs are absolute goldmines for trading ranges.

Let’s start here – you know that interest rates are a huge factor (in fact, maybe the single most important factor) when it comes to the foreign exchange. You will get the best range trading opportunities on currency pairs where each country’s interest rate is similar.

So that means that currency pairs like the EUR/CHF and the CHF/JPY are going to be good excellent range trading pairs. That is because their interest rates are very similar, so money is not flowing strongly into either currency in comparison to another. Bring up a chart of the either of these currencies and you will see that they do not move around that much.

On the other hand, currency pairs whose countries have large interest rate differentials between each other (i.e. AUD/JPY and AUD/CHF) will tend to range much less.

Some quick basics on range trading:

1) You don’t have to wait for the price to actually hit the top and bottom of the range to enter a trade. Divide the range into 4 even sections, wait for the price to reach the upper or lower quartile, and then look for indications the market is turning.

2) Use Bollinger bands, the ADX indicator, or the Average True Range indicator to tell you then the market may turn.

3) Always put your stop loss outside of the range – never inside.

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Richard Dennis was a trader who had the view, that with the right education anyone could make money trading so he advertised in the paper and collected a group of people together, who only had one thing in common – they had never traded before. The group included an actor, a security guard, a clerk and a kid who had just come out of high school.

This group, were then taught a system and the logic behind it, in just 14 days; they then started trading and the results were astounding, as they piled up hundreds of millions of Dollars in profits.

So what can you learn from them in your quest for currency trading success?

- Dennis proved that anyone, has the potential to be a successful trader and he proved that trading was a learned skill.

- The system used was incredibly simple, so simple in fact the traders learned the system and the logic behind it in just a couple of weeks. There is a myth that complex systems beat simple ones but the opposite is true – A simple system is more robust than a complex one with fewer elements to break.

- The system traded long term and focused on the big trends which last for weeks or months, because these are the trends that yield the biggest gains. Contrast this, with the huge amount of Forex traders, who scalp or day trade, they make a lot of effort but end up losing because their trading the noise of the market and taking low odds trades.

- The system had strong money management and actually had far more losses than profits but the fact the system cut losses and ran profits, meant it made huge gains.

- The traders all said the system was easy to learn and they could see why it would work yet, they all had problems following it and taking losses. Of course this is true – we all hate to look stupid and lose money but in Forex trading, cutting losses and sound money management is the key to making long term profits.

Why You can Win at Forex Trading!

As you can see from the above, the group taught by Dennis, made huge gains with a simple system, they learned the right education and learned to trade quickly, they also lost more trades than they won but because they traded with discipline, they made huge long term gains. So if you have a desire to succeed and the motivation to learn, there is nothing to stop you achieving long term currency trading success.

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The first thing you need to realize is that, it is not easy to make money. As every other endeavor in life, where important rewards are to come after mastering it, you need to work hard. You need to get very well educated and experienced before having the possibility to receive important rewards on it. The key on mastering the Forex market relies on commitment, patience and discipline.

Ok, you have decided you are going to trade the Forex market, you have seen several advertisings featuring how easy is to make money in the Forex market. You might think this is your opportunity to reach your financial freedom, right away, time is money, why waiting any longer if you have the opportunity to make money now. I know, I’ve been there, but you have a chance now, I didn’t, no body told me what I am going to tell you.

We, Forex traders, make transactions based on a set of rules. These sets of rules are what we call a Trading System. Our systems tell us the exact time where we need to get in the market and out the market in order to make a profit (i.e. buy low sell high.)

Creating a system is the first big step you need to take care first. Why is this so important? Because you need to build a system that suits your personality, otherwise you are going to find hard to follow it, thus hard to profit from. A system can be based on technical indicators or what we called a mechanical system or based on experience and intuition or what we call discretionary systems. I highly recommend using and trying first a mechanical system, because discretionary systems are dangerous during the early stages of a Forex trader (can lead to indiscipline.) With experience, on later stages, you will find out which signals work better and which ones to avoid.

The next step in this Forex course is to try your system on a demo account. Most Forex brokers offer a demo account, an account with virtual money. This is an excellent choice to test your trading system as there is no money at risk. In this step you will figure out if the strategy works for you. If you feel comfortable trading it, then it is most likely to produce good results. How much time should you stay in this step? It varies, but you shouldn’t go one step further until your system gets consistent profitable results over a period of time. It can take many months, but remember, you need to be patient.

You must be honest to yourself; you need to take every single signal generated by your system, not only the signals you thought were going to work, otherwise, you are going to have problems in the next two steps.

Ok, by know you had consistent profitable results on your demo account. You might think its time to go full. Nope, nope, nope. There is a big difference between trading a demo and a real account. The most important difference lies on emotions (fear, greed, anger, etc.) These are psychological barriers that affect every single decision made by traders regardless of what he/she is trading (stocks, bonds, Forex, futures, grains, etc.) These emotional factors, in my opinion, are the most determinant factor that separates profitable traders from the others.

The next step in this Forex course is specially designed to deal with emotions and to confirm the results obtained in the prior step (consistent results in a demo account.) At this step you need to trade in a real account with limited funds. Some brokers offer fractional lot trading. Meaning you are able to trade any desired amount (even cents.) The important thing here is that these emotions we’ve been talking about are present only when there is real money at risk. At this stage, you are going to see if you are really comfortable trading your system and if you are able to trade with such system, remember different systems produce different emotions. If you are able to produce similar results than those obtained in a demo account, then ready for the next step. If you didn’t, then you might need to create another system, there is chance your system never fit you. If you created consistent profitable results on this stage, you have a chance to produce similar results in the next one, on the other hand, if you didn’t produce good results in this stage, you will not be able to make on the next stage. Remember, you need to do things right, and be honest to yourself.

The last stage is trading in a real account with sufficient funds. If you are at this stage, and have passed successfully every prior stage, then you have a chance to make it, go ahead and try it, you need to be confident in yourself and in your system, your strategy have already produced consistent profitable results, there are reasons to believe you are going to make it. Very few traders fail at this stage (if passed successfully prior stages.)

Trading successfully is no easy task, it requires a lot of work, patience, discipline, and education. By completing the steps outlined in this Forex course, you have a chance to produce profitable results. I repeat it again, you need to be honest to yourself about the results obtained in every stage. Some times you might need expert guidance regarding your system development strategies.

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Sadly, the software just stands back and awaits its inevitable doom. This is one of the disadvantages of this software. It has a no stop-trade mechanism. If you are searching for a robot that can do this, there are several robots that have the stop-trade feature. To compensate, the robot has other features worth noting. Prior to actual trading this software is able to predict market movements for 2-4 hours before the actual movement. This gives the trader more than enough time to come up with his strategy and to determine which trades to engage in. The trader has therefore thoroughly assessed and determined which for him would be winning trades. Furthermore the software assists in determining winning trades by remembering past trades and picks similar scenarios from current trades. The robot then presents the same to the trader. This is its Reverse Correlated Time and Price Analysis feature. As another safety feature it blocks similar trade scenarios that ended in failures or losses. The trader is no longer presented with such trades. This is artificial intelligence working overtime. Thus, prior to the lapse of the 2-4 hour period the trader is all too ready with his well thought of plan and his fool-proof trades.

This system has worked and convinced so many others to try this software. Reviews upon reviews have been written attesting to trade wins and profits of this robot. If you still fear the effects of such a disadvantage, just remember the robots power-up! Although damage may be irreparable, note that the robot maintains an artificial intelligence feature that can be your power-up in the next trading.

The disadvantage may be great but is it not the advantages also worth looking at. This robot only exemplifies the plight of other robots as well. They all have advantages worth noting and disadvantages worth looking into. If you know how to compensate such a disadvantage or it its other features fully compensate the disadvantage then there is nothing to fear. Remember that to succeed one needs a good virtual assistant: one that the trader has the capacity to handle not only the advantages but the disadvantages as well.

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Generally when traders refer to “higher time frame” charts they are talking about four hour, daily, weekly, or monthly charts. As you move up in time frame what ever method you are using to trade the forex market will generally become more accurate but will generate less signals. Trading higher time frame charts lends itself very nicely to the method of price action analysis. The problem with using indicators on higher time frame charts is that often by the time the indicator(s) generate a buy or sell signal the move is over, this is why many traders that only use indicators to trade get whipsawed and blow out their trading accounts.

When you trade daily charts using pure price action you really get the best of every world because you allow yourself the ability to get in on big moves right as they break but you still are getting accuracy and reliability that a higher time frame provides.

When you know how to read price action a four hour, daily, or weekly chart will take on a whole new look to you. Price action analysis on higher time frame charts supplies you with a unique market perspective that lets you analyze what the big players are doing in the forex market. Once you learn how to spot a few consistent price setups on a naked price chart you will come to see that the market inherently tells you everything you need to know to profit consistently.

When you learn to trade higher time frames charts with price action analysis you can take a short look at the charts every day after the session close and know exactly what you are looking for. If your specific price setup is not there then you simply wait until tomorrow or for the next four hour bar to close out. Traders who start using lower time frames to trade off of often end up seeing signals that are really just noise and as a result of this they end up over-trading and blowing out their accounts before they really ever give themselves a chance to learn the ropes. Stick to the higher time frames and use as few indicators as you can and you will be on the right track to correctly analyzing the information naturally supplied by the forex market.

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1. Spot Currency Trading – This is the most important part of the foreign currency trading business. Spot currency trading usually involves two currency traders and often the buyer calls the seller. But initially the buyer will not yet reveal his intention of purchasing any currency offered by the seller. The seller should proceed to entertain the queries of the buyer and provide the necessary information. If the buyer is satisfied with the quoted rates the transaction is completed.

2. Forward Trading – This is a method that involves a long term investment. Fundamentally, an agreement to make the trade is finalized long before the actual day of exchange. Thus the parties, the buyer and the seller, would agree upon an exchange of their currencies for a specified date in the future regardless of the rates that their currencies may have by then. More often, the big companies trade in this way. It has two different types:

• Swap – This is the most common type of forward trading, where both the buyer and the seller agree to make currency exchanges for a specified period of time. Then their roles will eventually swap after the said period of initial exchange.

• Future – This is the forward trading used mostly by big companies. In future trading, a contract is drafted for the exchange with emphasis on the rates of maturity.

3. Option Trading – It is a flexible tool for starters in foreign exchange trading because, option trading is the extended version of forward trading. Whereas forward trading sort of binds the involved parties to make the specified transaction, option trading only provides the involved parties the rights to buy the currency at the agreed rates upon date or during the duration those lapses. In this system the strike price is crucial since this is the predetermined rate in terms of buying and selling.

These methods of foreign exchange trading may seem very promising to the beginners, but it is important to remember that all of them carry their own particular risk factors. Foreign currency trading is a volatile and dynamic type of business and these methods come with their own brand of advantages and disadvantages. Hence it is imperative that while using them, you fully understand their capacity first. Currency trading can be a very fluid business and these methods may also provide different risks for different transactions.

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There are some important reasons for hiring a forex broker who is expert in dealings with US dollar currency. It gives you the exposure to the experiential and the technical aspects of the current forex market. The role of US dollar in today’s market is very important because it is a kind of base where other currencies pin their rates, so when the US dollar fluctuates, it tends to change the course of the trading market as well. When you enter the trading game, Liquidity is something that you should be ready to face.

Here are some important points you must keep in mind when it comes to choosing among USA forex brokers.

1. Ensure that the forex broker is duly regulated:
The US bank and its related financial agencies have a hold on the players in the forex market. Therefore, it is vital that you get in touch with these sorts of people. The advantage of hiring forex brokers who are regulated is that, they are quite meticulous with their process. Their efficiency results from the fact that, besides liaising with you and their business spread partners, they also need to submit their financial standing and reports to the regulating authorities. This way, you can ensure that you are dealing with the best.

2. Be specific about your trading platform:
Although forex brokers are known to employ their own trading platforms, it is always advisable for you to be the one giving directions for this system. Your trading platform should depend on the amount of time you give to the project and your work system. There are various trading systems which you can use. You can either choose to have your trading run on autopilot. Secondly you can purchase licensed trading software, or you can simply log online to an open source trading network. You can seek the expertise of the forex brokers, to help you in choosing the platform best suitable for you.

3. Trading methods:
Besides knowing the trading platform you are using, you should also thoroughly know the specifics of the trading methods being used by your preferred forex broker. Here you will come across things such as spread, funds safety, and fractional trading. All of these are the key ingredients that facilitate your forex business.

Do not be overwhelmed with the varied choices for USA forex brokers. Choose your forex broker wisely and always go for the qualified individuals with whom you can have a good rapport.

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