How do you get into forex trading?
when you entered the trade and waited during the choppy zone while some other pair was making a solid move. Trading the market that turns up and down and takes back all the profits during a series of losses feels like a slow torture…
Forex Trendy is a software solution to avoid trading during uncertain market periods. Instead, pick the best trending pair at the current time.
It uses no indicators, but the trend is determined by pure price action.
It quickly scans 34 Forex pairs on all time frames from minute to monthly. That’s 34 x 9 = 306 charts. Forex Trendy analyzes all the charts for you every second! This way, you get the best trending pair and time frame at any time you want.
The software runs on our powerful computers so you instantly get the result online. Therefore, you can use your favorite trading platform such as MetaTrader, NinjaTrader, TradeStation… and there is nothing you have to download or install. It is very easy to use.
The truth is that most Forex systems or robots make money with the trend, but loose money in a choppy market. For example, imagine you trade a system that makes 50% winning trades, but another 50% are losing trades. By following the trend you would dramatically increase the odds of winning. If you increase the odds of winning by only 20%, that would make 70% winning trades and 30% losing trades. This can make the difference between losing (or breaking-even) and winning.
Forex trading is very popular, but if you are new to trading I must warn you:
The Forex markets are extremely volatile, and you can easily make (or lose) thousands of dollars in a day. Many Forex brokers offer “free quotes and charts” and “no commissions”, but keep in mind that nothing is for free: You are paying a spread, i.e. you can NOT buy a currency and immediately sell it for the same amount. It’s like at the exchange booths that you know from your holidays: You exchange $100 into 80 Euro, but when you change the 80 Euro back into dollars, you only receive $96.
Same when trading Forex: You are paying at least 2 “pips”. This amounts approx. $20, depending on the currency pair you’re trading. Another disadvantage of Forex trading is that you are NOT trading at an exchange: There is no “Foreign Exchange”. You are trading against your broker: If you are selling, then your broker is buying from you and vice versa. And that’s why your broker is giving you the quotes for free: He can basically give you *any* quote since there are no regulations. Scary, isn’t it?
So basically I support kzajko’s answer: Don’t.
If you really want to trade currencies, consider trading currency futures. First of all you make $12.50 per pip (instead of approx. $10 in the Forex market), it is regulated and you get good margin rates, too.