Category Archives: ForexAuthority

Binary Options

An important part of your binary options career is being able to honestly assess how successful your trading actually is. This is important for many reasons, the most obvious being that if you know how much money you are bringing in, the better you can handle your finances. You don’t want to stick with something that is a constant drain on your bank account, but you also need to make sure you give yourself time to surpass the learning curve. Trading binary options is tough, so you want to give yourself plenty of time to learn.

Measuring your success goes beyond dollars and cents, although this is the most basic metric for your ability. You also want to examine your correct trade rate. This is especially true for beginning Binary Options traders who might not be varying their amount risked. For example, if you are trading a flat $100 with every trade, your success rate is going to be very important. If you are not right often enough to overcome the gap between the payout and the loss amount (usually around 25 percent), you won’t be making money. This means that you need to be right more often than 50 percent of the time in order to be profitable. One simple way to evaluate this is to look at a hypothetical 100 trades of $100 each and plug in what your correct trade rate is. You also need to plug in what your return rate is. Assuming that you have a return rate of 75 percent and a correct trade rate of 58 percent, the math looks like this:

58 x 175

58 for being right 58 percent of the time, and 175 for the return of your investment ($100 initial risk amount plus $75 additional return). If you take into account the $10,000 that you would be risking over the course of 100 trades, this equals a profit of $150.

Of course, once you advance your trading career, your amount risked will not remain static. You will pump more money into the trades you are most confident of. This means that a simple correct trade rate will no longer be a good way to measure your success. Instead, you need to start looking at percent returned, rather than the dollar amount returned. Percent returned has a more universal appeal to it since this would be the same way for a small trader and a bigger trader to compare their success. A 15 percent return shows comparable ability regardless of the size of your trades. Think of it this way, who is more successful: the man who earned $100 trading with $1,000 units each time, or the man who earns $100 with $10 units? They both earned the same amount, but the man trading $10 units has a much higher return on his investment. This indicates that if he were trading larger amounts, his dollar profit amount would be much higher.

So measuring your success is a good way to know whether it’s time to bump up the amount you are risking. It also will let you know if trading binary options is a leak on your bank account. Either way, measuring your success in a consistent and effective manner is an integral part of trading binary options.

In order to stay on top of the market

One must consider the use of forex alert services

Since currency exchange spreads over the whole world and all of the 24 time zones, the forex market is a 24 hour a day market. This is a great thing as it ensures that billions upon billions of dollars are transacted each and every day. Though this also causes forex traders to have a ceaseless inflow of information to keep track of, unlike the securities market, where once trading concludes at 5 p.m., that is it. So with all of this information, how do forex traders stay on top of it all? The great majority use forex alerts of some kind.

Forex alerts are available from many online companies, especially forex brokers and educators. Forex alerts are simply messages sent to the user informing him of the most recent developments in the market and often they recommend some action to be taken aswel. These alerts can be sent via e-mail or mobile text message.

The thought behind them is that no one can follow all the markets all the time. Even if you confine yourself to just the “majors” — U.S., Eurozone, Great Britain, Australia, Japan and Switzerland — that is still 15 currency pairs to keep watch of. What’s more, sometimes movements and events are steady for long periods of time, whilst other periods are noteably marked by much activity.

The places that offer forex alerts approach it in one of two fashions. Some just send out alerts every 24 hours, offering up the latest info on the forex market. Others send alerts only, if something crucial occurs in the market. These systems use formulas of their own to ascertain what constitutes “something crucial,” and they may charge a lot more for their more specific alerts. And of course it is still up to the individual trader to act on or brush aside the information sent to him in these alerts.

Some brokers include forex alerts as part of their service, while other brokers charge for them. Some are a part of a larger alert program that can also handle stocks and/or bonds. You can tailor the type of alerts you get founded on whether you’re a conservative or aggressive trader, and how actively you plan to trade.

Many serious traders who use forex alerts highly recommend them. No system is perfect, naturally, and a bright trader will always do a trifle browsing on their own to make sure his last alert did not miss anything crucial about the current market. But alerts are an invaluable way of simpler trading for busy investors to go about each day of their lives without being forced to perpetually keep an eye on all of their favourite currency pairs.

by Gerrad Ross – 31-10-09

Success in the Hunt for a Profitable Expert Advisor

Considering Getting FX Training Online?

For many currency traders out there it is very difficult to see through the marketing campaigns full of hype and hysteria when searching for profitable metatrader EA software. Seasoned forex traders are often quoted as saying they would never purchase a forex auto robot with any type of marketing campaign related to it. Many an EA in the past has been badly coded and therefore never or very rarely profitable, thrown together with a pretty picture and then thousands spent on the marketing and PR compaigns in order to make money out of selling it to expert advisor forex traders and speculators alike.

For many seasoned forex traders, who stear clear of these overly flashy and too good to be true EAs, their opinion of marketing and performance being mutually exclusive was thrown out completely when, or should I say if, they bought Fapturbo. Fapturbo has turned the world of forex auto robots upside down with its extensive marketing campaign never really seen before in the expert advisors mt4 market but with actual performance and profitability to back it up. When you do go and buy expert advisor Fapturbo and trade with your own money.  You immediately see why the developers of this software spent so much on their launch. Reviewing Fapturbo you’ll find the robots performance is steady. Therefore, not making gains in one market condition then giving it all back when the market changes state. Its drawdown is lower than some of the most conservativel traders and the support given is nothing short of top notch.

Setting up an expert advisors on metatrader (MT4) has in the past been only the place for people with technical knowledge of forex and at the least, some experience. This fundamental and limiting factor has all changed with the introduction of Fapturbo. For one, there is support that is dedicated to actually supporting the metatrader EA owners and two, the installation instructions are not just a pdf manual but a series of camtasia videos that take the non technical person through a regular metatrader EA set up and further into how to get the most from your software.

To sum up my opinion of this new and exciting currency trading strategy in a product that is Fapturbo, I’d have to say its a great piece of software for the forex and trading newbie that will make you money.  For the seasoned professional it is another nice EA for the trading armoury with a variety of tweaks and changes you can make to the settings in order to really rake in the dollars.

by Gerrad Ross - 13/5/09

Want to Learn Currency Trading?

Considering Getting FX Training Online?

For a beginner wanting to learn currency trading, it may come across to be a massive un-learnable new world. When in reality the basics of currency trading are simple to learn quickly. You mainly just need to understand some different trading terms and frequently used buzz words then grasp the basic knowledge of how markets work in general.

Essentially, trading the forex market you want to aim at making large sums of money in a short time period. It is possible for all traders to make large gains quite quickly due to the rates of exchange on the foreign market having quite the tendency to rise and fall rather quickly. This does of course mean that it has inherent risk involved and there is the real chance of losing your money quickly. Not unlike most things in investing that posses the chance of big returns.

As you may well have already experienced, if you exchange currency for a vacation or overseas purchase, the rates are not always the same and are in fact constantly changing. You might change $100 into another currency before setting out to travel, later only to find that you have no need for it and you get it changed back. The rate will undoubtedly have moved up or down in the meantime. You may even have unknowingly made a profit out of your exchange of currency.

Forex traders trade currencies aiming to snare a profit whilst doing it, but instead of changing money at a bank they use the services of a broker. These days almost all transactions of currency are handled via the internet. It is not much at all different from stock and company share trading. There is the same ability to trade with margins and employ the use of leveraging your money so that a small balance held for you by your broker can in fact control much larger amounts than itself.

Trading the Foreign Exchange market can be done from anywhere. You can trade whatever two currencies you desire not restricted by where you live. The market is international and due to time zone differences, it is open 24 hours a day from Monday morning in Australia to Friday afternoon in New York.

A single currency is represented by 3 letters: the US dollar is USD, the British pound is GBP, the Euro is EUR, the Japanese Yen is JPY, the Swiss franc is CHF, the Canadian dollar is CAD, the Australian dollar is AUD etc. To express the exchange rate of two currencies they would be shown as: AUD/USD 0.7445. This shows that to buy one Australian dollar you will need 0.74 US dollars or 74 US cents.

If you want to begin fx training online and learn currency trading you will first have to find a suitable broker or investment management company that you can trust and learn comfortably with. It is worth taking a look around online forums and un-biased review sites to gather enough feedback to decide what broker you feel most comfortable with. Check out how long the company has been in business, make sure they are reputable and do not have bad feedback about cutting into client’s profits with large spreads or stop hunting and other dodgy broker activities.

You will, like most that learn currency trading start to run a bot or two or what are referred to as Expert Advisors (EAs). These pieces of software do your trading and analysis for you. This is basically automated forex trading software that will trade all hours of the day according to the rules that are coded into it and/or that you adjust in order to vary its performance. You can choose to run these EAs on demo accounts before you let them trade with your real money. Many who get fx training online deposit their own money but adopt safe EA trading strategies by adjusting risk settings so that losses are minimal but profits are still able to be made. There are many forex robots or EAs available on the market and the majority of them come with full and clear instructions for people who are experienced but also for people who are just beginning to learn currency trading.

by Gerrad Ross - 24/6/09

Forex Trading Room

Forex is a fast-paced way of trading, even longer term deals demand the ability for the dealer to make quick decisions if the market starts to move the wrong way. It is therefore essential to take any advantage offered along the way.

There are a number of different types of trading rooms available over the internet, all of which provide different facilities, some of which come at a price.

The most expensive type of trading room are those which feature a market expert, allowing traders to watch the deals being executed, almost as a tutorial.

This type of trading room links directly into the live market-place and allows those present to see the signals the expert looks for, as well as both the entries and exits from trades. As the trades are being performed in real time, there are no guarantees over what will arise but there are usually opportunities for those who have paid to enter to question the expert as he trades in order to fully understand his actions.

Just like any other type of trading room, there will be live charts feeding straight through to those present as well as analysis of the markets, usually of a technical nature.

An additional feature on some of these `expert` sites is the facility to copy trades made on a longer term basis, rather than just one session, with the help of a downloadable tool.

However, not all trading rooms operate in this way – some are more aimed at providing a guide to those looking for some help in reading the market and less of a concentrated learning environment.

Many of the trading rooms available feature moderators who make calls based on the market and highlight what they perceive as good moves to make. It is a particularly rapid way of trading and those entering for the first time may feel overwhelmed by the speed at which positions move. However, with some practice it is possible to read the calls from the moderator and enter and exit positions based on their recommendations.

Some trading rooms do not actually offer the chance to trade, despite being called a trading room – rather a contradiction in terms. These type of facilities are more often than not free of charge and can be a useful place to pick up tips, guidance and advice and generally gain exposure to other traders in the market.

This type of room can still provide benefits, especially to new traders who execute their deals at home and have no access to their peers.

The important point to emphasise about all of the facilities on offer that ultimately, the decision to execute a deal is down to each individual trader and just because some-one has set up a forex trading room, does not automatically make them an expert, despite what they may say. It is therefore essential that before risking any money following the live leads that some monitoring is carried out first to ensure the actions back up any claims of success.