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  1. #11
    fxb trading is offline Member
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    Avoid the pitfalls of forex trading robots

    Forex trading robots have become a popular tool in the personal forex market. They’re often attractively priced and are marketed as ‘Expert Advisors’ that can operate on many of the favoured trading platforms. However, an increasing number of traders have been left disappointed with the purchase of their automated forex trading program that ends up performing well below expectations, which leaves them feeling cheated and even results in claims of fraud.

    Sold on profits

    Anybody with a product to sell will focus on the product’s most attractive features to get you to buy it, and that is especially true about automated trading products. Often, they’re presented as offering the path to financial freedom and being easy to use; claims that are backed up by historical trading profits and glowing testimonials from seemingly satisfied users. In reality, the evidence of their success is just a small sample of trading when the software enjoyed a profitable spell and leaves out the less impressive other periods which more accurately reflect its true capabilities and how it performs for most of the traders who buy it.

    The disclaimer makes it alright

    Every forex trading robot is sold with a disclaimer (sometimes well hidden) that denies any responsibility for how it will perform in the future. The words may be different each time, but the message always amounts to the same thing: there’s no guarantee this software will trade profitably based on its historical performance and is there to protect the vendor from potential fraud claims.

    Get a refund but not your money back

    In an effort to placate customers who were unhappy with their trading robot purchase, many vendors would simply offer a refund. But while the purchase price of the forex trading software would eventually end up back in their bank account, the money they lost using it was gone.

    Trawl through any online trading forum and it won’t be long before you come across a thread full of unhappy traders who feel they’ve been misled by false advertising about forex trading robots that fail to deliver profits.

    Traders who purchased the forex trading software through Clickbank tend to have an easier time getting a refund. Legitimate claims made by the purchaser within the 60-day / eight-week period are usually dealt with quickly and efficiently.

    While it is not recommended that traders purchase a forex trading robot, if you do so, make the purchase using Clickbank and thoroughly test the software during the risk-free trial period to minimise the financial impact if the trading results prove to be disappointing.

    Too good to be true

    The saying goes: if it’s too good to be true, it probably isn’t. Genuine innovation has made our lives easier and better, but if trading software was capable of delivering the results vendors claim it can – and for such a small investment – why do banks continue to pay their forex traders six figure salaries?

    The simple truth is that it isn’t possible for trading software to deliver positive results on a consistent basis. Successful forex trading can be learned and is highly profitable, but it requires skills and judgement that simply can’t be replicated by software.

  2. #12
    fxb trading is offline Member
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    Forex coaching pays dividends

    Trading forex is a bit like driving, if you don’t get a few lessons from someone who knows what they’re doing you’ll probably crash. A good forex trading coach will help you become a profitable trader far sooner than if you dive into trading without proper training.

    A good trading coach, much like a good driving instructor, is aware of the mistakes a novice is likely to make and is able to steer you around or away from them and can explain why a certain course of action or choice is the better option. Much like driving, most of us want to learn so that we can use it safely, frequently and of course successfully. Driving without caution or at high speeds, without understanding the dangers, mirrors unprofitable or high risk trading and inherently increases the chance of losing money.

    Once you’ve accepted that coaching is the best way to start the next step is choosing which coach is right for you. In most situations where you need an expert, your natural instinct is to gravitate to the best available. This is where most people run into their first hurdle, as the industry is littered with so-called ‘forex gurus’ but who are not even professional traders.

    A recommendation from someone you know and trust is always a good place to start, but if no-one you know can advise you on coaching for forex trading there are some things to look out for which will help you make an informed choice.

    ‘Try before you buy’ is a good way to get a better idea of the quality of the training a forex coach is able to provide, so it makes sense to look into some of the free training advice your potential coach might offer on their website.

    If the coach you’re looking at doesn’t offer any advice for free and is simply trying to sell you a product that makes some grand promises based on past performance it is best to stay clear.

    Another simple test to carry out is to discover if you are dealing with a real person. A forex coach who features in his or her own videos and uses their real name is more likely to be a genuine trader with something useful to offer. Try out the phone number, email or any other contact information provided and check out if they are really on the other end of that communication line. If they are present it means they’re also accountable and that is a sure sign they are confident in what they’re offering.

    People who constantly seek out new learning tend to be more successful than those who settle on what they know and plod a familiar path. Coaching provides an ongoing learning process, even for those who are already at the top of their own mountain. When Rafael Nadal achieved Number 1 status in the tennis world the first thing he did was increase his coaching staff.

    It’s one thing to learn something, learning to apply that knowledge is the next step then learning from your own experiences is yet another. This applies as much to forex as it does to all walks in life that require special skill or knowledge. Forex coaching provides the opportunity for continuous learning, regardless of how long you’ve been trading, and is an essential component of long-term success.

    One-on-one training has been shown to increase the rate someone learns by 70%-80% and there is no quicker way to learn how to make consistent profits in forex trading.

    5 reasons why coaching will make you a better trader:

    1. Our natural instincts teach us to learn from our mistakes and novice traders naturally employ this trial and error method. However, this results in a novice taking longer to learn how to trade profitably, sometimes years, and in that time they are likely to have picked up some bad habits. A trading coach will challenge the way you think and your trading paradigm, the trading coach will also identify your bad habits and help you replace them with profitable strategies.

    2. Nobody likes being told they’ve done something wrong and it’s one of the reasons some traders resist the idea of training. But throughout our lives the biggest and most important lessons we learn is through the mistakes we make, not our successes. A good trading coach will be able to offer constructive criticism and teach you how to learn from mistakes.

    3. Some, if not most, people who start out in forex dream of achieving huge wealth and overnight success. Forex trading is about creating a plan with realistic weekly, monthly and yearly goals that get a trader to a target. Having a target without a plan is simply dreaming. A forex coach will help you establish realistic and achievable goals that will ensure you reach your target.

    4. A common problem novice traders face is becoming overwhelmed with irrelevant information. A trading coach will help you to focus on the information that matters and how to stay focussed on the information and avoid wasting time on details that can steer a trader away from their targets.

    5. Another common problem that afflicts traders is when they get stuck on a certain level of knowledge. It can be hard for a trader to recognise this in themselves which is why having a coach is vital as they will see it and know how to get a trader to move forwards again.

    In short, a good coach will tell you what you need to hear when you don’t, and see what you need to see when you can’t. A good coach will help you achieve your goals.

    In the past coaching was seen as something that only professional athletes used, but successful traders have realised the benefits of forex coaching. In the long term it saves a trader time and money and eventually proves to be a worthwhile investment for the future

  3. #13
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    Profit from North Korea crisis

    The North Korean crisis has been preoccupying the minds of investors for a few months now. Back in April, North Korean leader Kim Jong-un ordered missiles to be fired over neighbouring Japan. The ensuing market instability prompted varied reactions from investors.

    The risk averse headed for the safe haven markets, while others tried to capitalise on market volatility.

    Today, the picture for investors has changed significantly.

    As you read this (September 18) world stocks are at an all-time high. Investors have regained their appetite for trading in risky assets. Currency trading appears unaffected by events on the Korean Peninsula.

    MARKETS BREATHE SIGH OF RELIEF

    The markets have breathed a collective sigh of relief and for traders, with the risk of a nuclear war averted, North Korea has drifted to the back of their minds – for the time being.

    The note of caution is sounded because it’s far from being a settled issue, and major powers are already drawn in.

    On Sunday (September 17) US President Donald Trump appeared to mock Kim Jong-un.

    “I spoke with President Moon of South Korea last night,” the US president wrote. “Asked him how Rocket Man is doing. Long gas lines forming in North Korea. Too bad!”

    Despite the rhetoric employed by Trump and the US administration that “fire and fury” would be the US reaction to Kim Jong-un’s continued missile firing, their preference, so far, has been to see economic sanctions imposed on North Korea.

    SANCTIONS SO FAR

    The United Nations Security Council passed sanctions against North Korea. In turn, Kim Jong-un responded by firing another intermediate-range ballistic missile that flew over Japan and a promise that more tests were on the way.

    These sanctions seem to be taking effect on the country, hence the reference to “Long gas lines”, if not Kim Jong-un himself.

    A notable side effect to the crisis has been its effect on US/China relations which saw US Treasury Secretary Steve Mnuchin threaten a trade war with China if it didn’t uphold its sanctions against North Korea.

    The markets would react with far more volatility if this were to transpire, and you can be sure investors will be paying special attention to US/China relations as the North Korean crisis unfolds.

    ASIAN MARKETS SOARING

    But, for now, it seems investors have become desensitised to the North Korean issue. As long as Kim Jong-un holds back from declaring all-out war and US/China trade relations remain intact, the market seems to have decided that trading shouldn’t be affected.

    Stock markets in Asia are at their highest level in a decade (Monday, September 18) and this positivity is mirrored in markets around the world.

    However, if fears about war increase again, look out for its effect on the value of the USD.

    Historically, the USD’s value plummets when there is trouble on the Korean Peninsula. Going back to 2010, when tensions were provoked by South Korea, the value of the USD dropped significantly against other major currencies.

    Both the US and North Korea show no intention of backing down, so an escalation is still possible. In the short term, this would most likely see the value of USD increase, as it’s a war North Korea can’t win. But war in the region would inevitably see South Korea and Japan being sucked in and result in collateral damage to those nations. They are both trading partners with the US and this could end up having a negative effect on the value of the USD

  4. #14
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    German Elections: Will Merkel hold on to power?

    Elections in economically powerful countries like Germany have always provided an opportunity traders can take advantage of, because of the market volatility that preceded them.

    The uncertainty that surrounds an election result creates turbulence in the markets, which are exactly the conditions traders need to make bigger profits on their trades.

    If recent history has taught us anything, it is to expect the unexpected when the German Election takes place on Sunday 24th September – regardless of what exit polls and the media are reporting will happen.

    EXIT POLLS ARE LESS RELIABLE THAN BEFORE

    Opinion polls have consistently predicted that Angela Merkel will secure a fourth consecutive election victory for her Christian Democratic Union (CDU) party and their sister party the Christian Social Union (CSU).

    However, exit polls are not as reliable as they once were. Britons were expected to vote against Brexit and Hilary Clinton was considered a more likely US President than Donald Trump.

    The pulse of the voter is far more difficult to anticipate, and more susceptible to change.

    The impact of social media and other, less predictable influencers, can have a significant effect on the opinions and perceptions of voters, especially in those critical last few days before the election itself takes place.

    No outcome is certain until the last votes have been cast.

    MARKETS BECOME MORE VOLATILE AROUND ELECTIONS

    This uncertainty creates volatility in the markets, which tends to become more pronounced as the polling date approaches and even more so if the outcome is in the balance.

    That volatility is magnified when an unexpected outcome is declared, as when Britons voted in favour of Brexit.

    This is why the German election offers the potential to make some money.

    In the immediate aftermath of the Brexit vote Sterling (GBP) plunged to its lowest level since 1985, and two years later it has yet to recover.

    Another unexpected result in Germany would trigger another period of market turbulence.

    Traders are already calculating how to react depending on the outcome. This is an opportunity to make significant profits – it’s a question of picking up on the right indicators.

    HOW WILL GERMANS VOTE?

    On the face of it German voters have less reason to produce a surprise result. The country is economically strong and thriving. But recent statements and actions by Merkel, such as her decision to welcome over one million refugees into Germany came in for heavy criticism and resulted in her personal popularity dropping to its lowest in years.

    How much of an influence will this have on voters come the election?

    Merkel’s record as Chancellor is impressive. She has successfully navigated the recession that has affected most of Europe. But their manufacturing might has never been in doubt, Germany was always better prepared than its European neighbours to come through the economic crisis in good shape and without its people suffering any great hardship as has been witnessed in other countries.

    If the economy isn’t a significant factor affecting voting then other matters could be more prominent in voters’ minds. Germany’s role in a fragmenting Europe, or its support of military campaigns abroad against Isis and the retaliations it has provoked in France, the UK and Spain may persuade votes that a change in policy is needed.

    COALITION IS THE ONLY CERTAINTY

    Despite being the dominant party, Germany’s electoral system has required Merkel’s party to form coalitions in all three of the CDU/CSU’s successes. If anything is certain about the forthcoming election it is that it will be another coalition government that takes power.

    In 2013, the previous coalition government failed to gain the necessary majority of seats needed to maintain power. Coalition partner, the Free Democratic Party (FDP), attracted less than 5% of the vote which resulted in a coalition being formed with the Social Democratic Party (SDP). It was referred to as “a grand coalition”. But this may not be repeated given the fall-out between the respective leaders – Martin Schulz of the SDP and Merkel – over the issue of immigration.

    Schulz is considered Merkel’s biggest challenger as Chancellor. The SDP are expected to achieve around 25% of the vote according to the latest opinion polls, making them the CDU/CSU’s biggest competitors.

    Schulz’s popularity has strengthened following his stint as President of the European Parliament and he is liked by a significant number of the country’s voters.

    If Schulz was to overcome Merkel on September 24 it would send shock waves around the world, the markets are likely to go through another period of instability and the Euro (EUR) might be affected in the same way Sterling (GBP) was affected by Brexit.

    If Schulz garnered a greater portion of the vote, but not enough to replace Merkel, it could still increase his influence on policy making. Assuming the coalition remained intact, the Euro (EUR) is likely to strengthen as Schulz is in favour of strengthening the EU.

    Some will certainly feel backing the Euro (EUR) makes a lot of sense as the election approaches. Schulz’s heavy criticism of Brexit (he called for the UK to re-run the referendum) could have further ramifications for Sterling (GBP). The prediction by one prominent global investment bank that Sterling (GBP) will be valued on a par with the euro by the end of 2017 would seem far more likely.

    Merkel has been far more diplomatic to the UK following Brexit and promoted the benefits of Germany and the UK maintaining a strong economic partnership. Following through on this stance will raise optimism that Sterling (GBP) will rally.

    CREATING COALITIONS DISRUPTS THE MARKETS

    In the days before the elections prominent European indices, notably Germany’s DAXX and the wider European indices such as STOXX 50, expect increased volatility. This will be magnified or return to stability dependent on the outcome of the September 24 vote.

    However, if a revised coalition is created, this might also prompt increased volatility.

    After the last German election it took around three months for the new coalition to be sworn in. Equity markets fluctuated between periods of increased volatility and inaction during that period, depending on how coalition negotiations were perceived to be going.

    The Euro (EUR) was similarly affected until the outcome was confirmed.

    Staying up-to-date with the events leading up to the elections and observing the effects they have on the markets will give an insight on how the markets will react as we approach September 24.

    Clearly, we shouldn’t be surprised if another ‘shock’ result came about. But whatever the eventual result the opportunity lies in judging how the market is reacting every step of the way and taking full advantage of the opportunities as they arise.

  5. #15
    fxb trading is offline Member
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    Don’t write off Sterling prematurely

    Last June’s post-Brexit vote sent GBP values plummeting against EUR and pretty much every international currency as the market tried to price in the negative implications for the UK economy.

    As unexpected as the vote to leave was, the market reaction – perhaps overreaction – was entirely predictable. The vote was preceded and followed by a raft of analyst predictions of a weak GBP amid fears Britain’s economy would grow more slowly outside of the EU.

    However, amid the eye-catching headlines, pro-Brexit economists said that leaving the EU would cause a shallow downturn at first but would end up boosting the UK economy in years to come.

    GBP RECOVERS DESPITE GLOOMY PREDICTIONS

    Despite difficult Brexit negotiations and the continued uncertainty surrounding the UK’s relationships with the EU going forward, GBP’s subsequent recovery says plenty about its historical importance and longevity and that needs to be factored in when predicting its future value.

    GBP’s is the oldest actively traded currency on the foreign exchange market, it’s also one of the most popular currencies traded on forex as a result that London is one of the biggest trading hubs in the world.

    Political uncertainty and war has triggered volatility in GBP’s value over the years, but it has always stood the test of time and has been relied upon as a global safe haven for investors.

    History seems to be repeating itself.

    BARCLAYS FORESAW GBP RECOVERING

    Back in March this year Barclays, one of the UK’s most prominent financial institutions, wrote to their clients to say they could see GBP recovering against both EUR and USD.

    On September 17, 2017 HSBC admitted it was wrong to predict a deep dive in the value of GBP this year. The banking giant had previously said GBP would end the year at $1.20 and around parity with EUR, their bearish currency analysts have now revised their forecasts to $1.35 and €1.12.

    The difference is that GBP is now behaving like a normal, cyclical currency and moving after things like data events. It is now less susceptible to Brexit developments.

    The Bank of England’s (BoE) announcement that a first interest rate rise in a decade sent GBP to its highest level since the day after the Brexit vote. The BoE said rising inflation and stronger household spending merited an increase in the coming months.

    UK ECONOMY LOOKING AT NEW MARKETS

    BoE Governor Mark Carney, in remarks prepared for Washington today (September 19), said a long period of inflationary pressure on the UK was expected as it reorients its economy toward new markets and away from the EU.

    In the immediate aftermath of the Brexit vote and GBP’s dramatic fall in value Carney said he was happy with Sterling’s level and wasn’t averse to a further depreciation. He explained that a weaker GBP was an important reason why the economic effects of the vote to leave the EU would be less than gloomier pre-referendum predictions suggested.

    In other words, a weaker GBP was helping to limit damage to the British economy during the Brexit process. The natural reaction to ‘weakness’ is that it is to think of it in negative terms. However, certain situations warrant a weakened currency valuation. UK produce became cheaper, this stimulates demand, and helps cushion the wider economy from turmoil.

    The UK lessened the damage of global financial crisis in 2008 in a similar way.

    ECONOMIC GROWTH AND STRONGER GBP PREDICTED

    While the long-term ramifications of the Brexit are unknown Brexit supporters have consistently argued that it will result in greater potential economic growth and appreciation of GBP through a reduction of government spending and the establishment of trade alliances independent of EU regulation.

    Carney describes Brexit as a unique example of deglobalisation and while the economic effects of Brexit are subject to “tremendous uncertainty” it will mean lower immigration to the UK which will potentially boost domestic wage growth while new barriers to trade would lead to higher prices for goods and services.

    While the long-term future of GBP’s value looks safe, unpredictability is a possibility in the short-term.

    GBP WEAKENS IN 2018?

    Upon revising their GBP valuations HSBC added that 2018 is likely to see Sterling weaken again. Their economists feel that politics will have a greater influence on GBP’s value as the deadline to Brexit nears. They offer a worst-case scenario where no Brexit deal is agreed and the UK economy starts to slow as a result of BoE interest rises.

    HSBC concluded that GBP would drop “well below” $1.20 and around €1.05. But as they were forced to admit yesterday, they might be wrong.

    There’s little doubt business fears are rising.

    More than 100 companies, including Ford, GE and IBM, wrote to Britain’s top Brexit negotiator and his EU counterpart on Sunday urging the two sides to agree a transitional period of up to three years so that they could make investment and employment decisions.

    Britain’s Prime Minister Theresa May is hoping some momentum will be sparked by her speech when she visits Italy on Friday (September 22). It will a key address designed to set out Britain’s latest position. Talks will resume the following Monday and it remains to be seen how they will develop and how investors react to any developments. One thing for sure is that it will be a thrilling journey for GBP.

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