Learn to trade forex for free

lordoftruth

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Welcome to my thread where you can learn how to trade the Forex Market for free.Just pure learning! It will be of great fun.The top of the thread is where your quality education material resides. The material is all created by myself and not copied from anywhere. There is a lot yet to come since there is a lot that you need to learn, and there is a lot that I need to share with you! So please just be patient – it will be worth it.You can judge by yourself the quality of information that I will be giving you in the next pages. So just go now and start learning!

Below is a quick guide of how this thread is structured, so you can find what you are looking for fast. Remember that I update the pages every day so either check back often.

In this section you will find quite a long article of what Forex is all about. If you are a beginner, this is a must read. It explains in detail what is required to start trading, what you should do and not, typical traps to avoid as a beginner and a lot of valuable information which you as a beginner must digest and learn prior opening any Forex account with real money.​

In this section you will find your road map on how to become a real successful trader couple of months as from today.​


In this section you will know the 3 major areas – Technical Analysis, Fundamental Analysis and Trading Physcology.​

In this section you will find a gold mine of information about the technicalities of Forex. We will start from the very basics covering all the Forex jargon words which you will be hearing every day and we will be taking you up to the level required to finally learn to trade like a pro – technical analysis, also found in this section.​

In this section you will see the tips that will help you stay away from crap forex products, which unfortunately the Forex market is invaded with.​

This section has a very detailed article on how to avoid being scammed in this ruthless world of Forex. I will explain in detail six tips that you need to look for prior purchasing any products. Even though most of the time you may claim your money back,the time wasted is never returned. You should have used that time to learn how to trade! Read it!

FEAR STRIKES OUT
Rumor and rumors of rumors finally took over common sense and fear was at a premium. The VIX soared to a four year high as "sell stocks and ask questions later" became the mood for the day. Rumors about a French credit downgrade and the health of some French banks created a selling frenzy. Forget that all those rumors were denied by all major reporting agencies, when traders are blinded by fear they might believe almost anything. When people trade irrationally there can be some marvelous opportunities for those that keep a calm head and a keen eye. The best way to combat fear is to have a plan that seeks to find moves that are overdone based on reality and to doggedly control your risk. If you have a solid plan that you stick to then fear goes away and you can take advantage of what the market brings you. Jimmy Piersall was crazy and he has papers to prove it and I may be crazy(not endorsed by any rating agency) but as bad as things are (and they are bad) they are not as nearly as bad as yesterday's market action would have you believe. Now I'll admit that some fear was totally justified especially last week but now for many stocks and some commodities, it is getting a little bit silly. I am not calling a stock market bottom necessarily, but at the same time a lot of stocks are ridiculously oversold due to fear and the loss of any rational thinking. When you trade by fear you will make bad decisions. Fear strikes out and so will you. The best way to combat fear is to have a plan which includes taking your losses if necessary only so you will have the capital to take advantage of the values that those driven by fear will give you. If volatility is too much for you, stay on the sidelines because if you had a good plan you should be out and you can then wait for...........

THE SUN TO RISE AGAIN.
 
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lordoftruth

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E currency trading

So you heard about E Currency Trading or heard about Forex or FX and probably you got overwhelmed with all the information available on the Internet. Probably you read so many conflicting articles that contradicts one another. Even worse you could have read some articles written by a marketer and not a real trader selling you some kind of products promising $$$ in return.

Irrespective of what you have read, in this article I will explain to you what you need to know to start DEMO Trading with no fluff and sales pitches. Hopefully after reading this lengthy article all your conflicting information and doubts are cleared out, and definitely you will have solid foundation to start learning the exciting stuff in Forex. So let’s start!

What is Forex?

Forex, Foreign Exchange, FX, Currency Trading they all refer to the same thing – exchange of money from one currency to another. Believe it or not, the probability is that you had already traded currency in your life, that time for pleasure, but now we will learn how to do it for business.

If you live in the UK, the country currency is the Sterling (£). If you go for a holiday in most European countries, you will need Euros (€). So you will go to your bank, and exchange your Sterling money into Euros. When you return from your holiday, you may exchange back the remaining Euros to Sterling. Similarly if you go to any country using US Dollars ($) you will need to do the same.

Now, you may do the same thing but for business – to earn money. And this is Forex. You buy / sell currencies simultaneously. Forex is the largest financial network in the world with over 2 Trillion Dollars turnover transactions a day! You may also trade a variety of currency pairs.

OK, so I buy / sell currencies, do I need to go to the bank? How can I make money? I will answer these questions shortly.

What time can I trade?

Forex is traded 24 hours round the clock. The four major financial centres in the world are Sydney, Tokyo, London and New York.

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Even though the London market closes at 5.00pm it doesn’t mean that you can’t trade the Sterling. Similarly even after the New York market closes, you can still trade the dollar. This is why the Forex market is 24 hours and you can trade anytime, anywhere.

I believe that if you live in Europe, you are a bit of an advantage due to the time zone. London is a major market and you can capture large moves, day in day out. There are trading systems based specifically to trade the London Market. I will be sharing my trading system with you later on for FREE. I use this system everyday with great success.

Anyway, I have friends that live in America that wake up at 3.00am (their time) to trade the London Session!

So who trades Forex?

Forex is traded by large banks, central banks, currency speculators, corporations, governments and speculative funds. There are also people like you trading from home. Of course there are also mini banks, medium sized companies and professional traders where trading is their daily job.

So of course you are not trading alone (well you can’t trade alone ). Just be warned that large banks and other financial institutions have an army of professional well trained traders whom they trade millions and millions of dollars daily.

Most Popular Currencies

You may trade any currency that you want however there must be enough liquidity in the currency pair that you are trading. Every currency that you are trading always come in pairs, because you are buying one currency and selling the other currency. Remember the holiday example?

For example: EUR/USD currency pair means Euro / US Dollar. USD/JPY means US Dollar / Japanese Yen

The six most important currency pairs are the following:

EUR/USD (Euro / US Dollar)
GBP/USD (Sterling / US Dollar)
USD/JPY (US Dollar / Japanese Yen)
USD/CHF (US Dollar / Swiss Frank)
USD/CAD (US Dollar / Canadian Dollar)
AUD/USD (Australian Dollar / US Dollar)

These are called the Major Currencies and have the most liquidity. As a beginner you should always start with EUR/USD.

The other pairs are called the Exotics like GBP / JPY, AUD / NZD – (Australian Dollar / New Zealand Dollar). Of course there are many other exotic currencies apart from these two.

What do you need to trade Forex?

With the above basic understanding, what do you need to start trading? Here is the list in order:

A computer / Laptop / Mobile – mobile only if you are already experienced trader.
Reliable Fast Internet Connection
Forex Broker Account
Trading and Charting Platform Software – provided by the broker for FREE.
At least ONE successful trading system.
Solid Money Management Technique
Discipline – since you need to control your fear and greed.

EH? Discipline? What are you saying? This is big topic and I will be writing a lot about it. My personal problem when I started trading was fear – I was afraid to enter the trade because I was afraid to lose money. It took me a while (couple of months) to get over it!

Now be careful, since controlling your emotions (discipline) is mostly used as a sales pitch by Marketers especially those that sells robots. They say – “Robots take away your emotions, since they will always enter the trade at the right price, and exit the trade at the right price, since they follow exactly the trading system rules.” That is a valid argument, but there are many other factors to be considered prior entering a trade that robots can’t do. But they don’t say this to you. This is another topic that I need to write a lot about, and once you start learning for free in this blog about how to analyse the charts, you will realise that robots in no way can make you money. Robots that make money are not for sale. Full stop.

Typically their blogs will be full of great comments – like “I recovered the cost of the course in 2 days”, “I made $500 in my first trade”. You will also be flooded with emails that the system will not be anymore on sale, so buy the system now – you know this creates an urgency in you and you end up buying the system, since you think that you can’t lose the opportunity of your life – the chance to change your life. You know what I mean. And how many times you got disappointed? I think 99% of the time. In the Forex market, it is 99% of the time, and if you are a beginner it is 100% of the time. And guess what? The system will be resold again (probably under a different name) few months down the line. These kind of people are internet marketers and not traders and 3 names just came in to my mind right now. They sell useless systems every 2 months or so, and people like chickens buys these useless systems.

Brokers

As I said, you will not go to your bank to trade Forex. You will trade from your home or office or even while on the go with your mobile! So you need what is called a broker. You will need to deposit funds to your broker, download their trading platform and you may start trading. You will be presented with a number of currency pairs, charts and trading indicators and you can start buying / selling with a click of a mouse.

That’s it.

When you open your currency pair chart, you will see the Ask / Bid prices of each and every currency pair that can be traded. You can also open the currency chart to analyse the currency price action using technical analysis – a FREE course later on. Once you think that now it is the right time to buy / sell, you will place your order and the broker will then process the order and eventually execute your trade in the market.

That’s basically the procedure, but if you just follow what I said and you are a beginner, you will loose all your money in a blink of an eye.

First, you need to find a regulated, reliable honest broker that works with you and not against you. You will need to learn how to use the trading platform, and most importantly you need to learn how to trade by DEMO trading for a couple of months. During these months you will be applying technical analysis to analyze the charts and the behaviour of the currency pair. Using technical analysis, you will be entering high probability trades that in the long run will make you money. During this period you will also be building confidence in the trading system that you are applying, and also getting used to the currency pair personality. Yeah every currency pair has its own personality and behaviour but you will quickly get used to it by simply demo trading it. When you are confident with your skills, the trading systems that you are using and you are confidently making money in the demo account, only then you may start trading for real money. At this point, you must be careful to be always disciplined. But if you did money demo trading, you will make money trading live now. And trust me you can make truck loads of money but you need to learn how to the proper way. And I sorry for repeating – DO NOT USE ROBOTS!

I was carried away a bit with that but I wanted to give you a high level overview for the path of success.

Back to the brokers, there is a lot to say on brokers and how to select your broker, and I will be writing another article on how to choose one. Remember, your broker must be your friend. On the other hand, don’t blame your broker if you lose money like many people do! There are thousand ways of how to lose your money other than your broker!

Trading Platform

The most popular trading platform that you will be using as a beginner is MetaTrader. It is the easiest to use although not the best. But it suits is purpose for beginners / intermediate traders. You will find a lot of video tutorials on You Tube and I will be doing some as well in the future.

What is nice about MT4 is that you can program your own manual processes and imbed them into your trading ploatform. This is how robots are created. From my side I have a number of indicators that help me on daily basis in my trading that I will be sharing with you shortly.

eToro is also a very trading platform, although in reality eToro is a broker and an excellent one too.

DealBook is another trading platform and is one of the top trading platforms used by some brokers.

How shall we trade?

The mechanics of making profit or losses in Forex is very simple. You either buy the currency or sell the currency. If you think that the currency will go up, so buy it now and sell it later at a higher price. Similarly, if you think that the currency will go down, sell the currency now and buy it at a lower price. Simple no? Buy low sell high, or sell high buy low. If you think it is that’s simple than you are completely wrong.

Once I was discussing with a friend whether the price of a particular currency will keep on going up or will retrace back. He jokingly replied : it’s 50% 50%. Well if you think about it this is very true. You will never know where the price will be going. You can only make an educated guess. So we must analyze chart patterns (using technical analysis) and take decision whether to buy, sell or just stay away from this the currency pair for now.

When we enter a trade being buy or sell, we must only do so when the odds are in favour of us. That is we know that we are entering a trade with a high probability of success, let’s say 30% 70%. What this means is that we can predict the price movement 70% of the time. Only this way, in the long term we will be profitable.

So how can we predict price movement? We use technical analysis studies with proven indicators that will help us take decisions – whether to buy, sell or stay away.

Technical analysis is simply price action, chart analysis study only. You will need to learn how to draw correct trend lines, how to pin point strong support / resistance levels and more and take action based on the technicals on your chart.

Other traders use news releases released by the big dogs (large banks, government statistics etc.) and they trade according to these new releases. So they base their decision whether to buy or sell simply by trading the news. This is called Fundamental Trading. Here you can find a forex calendar when such releases are to be scheduled.

So what shall we use to trade? Technical or Fundamentals? I use both! Yeah, I simply use technical trading to trade, and the Forex calendar that fundamental traders use to just stay away from trading. During news releases, prices go crazy, some brokers also freeze their trading session, so I just stay away. Further to this, I don’t understand a word of what they are saying so for me is useless. See a whole article on Technical and Fundamental here. However don’t take me wrong, Fundamental trading is very profitable too and the whole books on it and proven trading techniques, but it is just not for me.

Trading Systems

So till now we know that we need to use technical analysis to enter a high probability trade, and stay away from your charts when major news are going to be released like the FOMC, Payroll etc. Having said that we need a handful of proved trading system that guarantee a long term profit if traded successfully.

I will be giving away proved trading system that guarantee to work long term if you abide to the trading rules. Discipline! You will find many around for free if you Google it, but be aware that many trading systems are experimental or do not work at all. And stay away from expensive courses, I will cover everything needed here for you to be successful. I have been scammed myself, so I know what there is outside here.

You need to find your Personality

By demo trading for a couple of months, you will need to discover what type of trader are you. What? Let me explain. You can trade in 3 ways.

Scalper. Is a kind of trading strategy with the intention to open a trade for a short period of time – sometimes less than 1 minute for a quick profit.

Intra Day Trader. Is a kind of trading strategy where you trade 5 minute, 15 minute, 30 minute, 1 hour, 4 hour charts with the intention to close the trade at some point during the day. You may take more than one trade of course. You need of course be staring at the charts most of the time.

Day Trader. This is a trading strategy where a trade can be left open for weeks and even months. You will normally trade at the end of the trading session and adjust stop losses, profit targets etc. at that time.

Although technical analysis is used in all cases, you must integrate trading in your daily life style. If you are a busy person, scalping or Day trading can be suitable for you. But believe me these two are completely different strategies and require different skills. In scalping you need to think and react fast. In day trading you may take hours to place a trade as long as you place it prior the next day open session. This also requires huge stop losses and many people can’t live with that.

By demo trading, you will need to explore all three kind of strategies and find which one fits your trading style and life style. All three can be rewarding! Of course you can use a mix of both or why not, all the three of them!

So by now you may start realising that trading is not just open and account and start making money! Reality is very from that!

Risks Involved

As like all kind of investments, forex is no exception. If you open an account with $1000, you may wipe your account in less than a day if you are not careful of what you are doing. Forex is a wild animal and it moves fast too!

The problem is that in forex there is high leverage, which in simple words it means that every time you place a trade, your broker is lending you money to trade with. This is why you can make money fast or lose money fast. Just to put some numbers into perspective, if you place an order of 1 lot for the USD/CAD currency pair, you are effectively buying 100,000 Euros! So you are playing with huge money there. A slightest change in price which is called a pip, means a $10 profit. Forex is so fast and so dynamic that the currency pair can move 10 pips in less than 1 minute, meaning you did $100 profit, or -$100 loss if it moved against you.

Trades are expressed in lots. You can trade with lots, mini lots, micro lots and now even nano lots. So lots are equivalent as follows.

1 Lot = trading with $100,000, 1 pip move is equivalent to $10

1 Mini Lot (0.1 Lots) = trading with $10,000, 1 pip move is equivalent to $1

1 Micro Lot (0.01 Lots) = trading with $100, 1 pip move is equivalent to $0.1

1 Nano Lot (0.001 Lots) = trading with $10, 1 pip move is equivalent to $0.01

Just note that the broker is lending you money, and his money is never at risk. The broker will close automatically your loosing trade prior even his money is at risk. This is called margin call.

Money Management

Following of what we have just said, you need a solid money management plan, so when you lose a trade, you will lose little capital so you can remain in the game, you can keep trading! You will never win all the time, you will always have loosing trades. So you need to minimize your loses and keep profits run! This is easier said than done, but that is the whole philosophy and is the right approach to trade and be profitable.

I see many trading systems and robots that risk let’s say $70 to earn $10. This is called the risk to reward ratio and in this case it is written as 7:1. Do you think that this makes sense, 7: 1 ratio? So this system must have a strike rate of over 70% for me to be in profit. It is more than 70% but let’s keep numbers simple.

So let’s assume that we had 8 successful trades, so we are $80 in profit. Then we hit a bad trade, lost -$70. So we are still $10 in profit – cool. What if we hit another bad trade now? Let’s say we had another good trade, so +$10, and then we hit a bad trade. So ($10 + $10) – $70, so you are now -$50. Such trading systems always fail even if they have high strike rate. Remember that every trade is independent from the others, so what happened in the previous trade may happen again in this trade irrespective of probabilities.

So you need to go for at least 1:1 risk to reward ratio with a strike rate of over 50%. Best trading systems have 1:2, 1:3, 1:4 or more risk to reward ratio. It does not mean that in every trade you will make twice as much the risk because you need to take from the table what the market gives you, but your trading system is designed with such ratio in mind. There are a lot of trading systems with this a good risk to reward ratio, so don’t worry!

So now, when you see a robot for sale, ask the risk to reward ratio and probably they will tell you (if they understand you) 5:1. Recently there was for sale a number of trading systems and the top one (supposedly meant to be the best one) was going for 10 pip profit for 50 or more risk. Complete nonsense.

So how much profit can I make?

You have been waiting a bit for this answer. By now you should realised the risk involved, how pips are measured in the forex market and you need to have a trading system with a least 1:1 risk to reward ratio.

So how much money you can make? You can lose a lot fast – this is a fact. Realistically you need to aim for 5% a month of your trading account. You will have days where you will lose money. You will have days where you make money. What is most important is to stick to your trading strategies and trade consistently. With a solid trading system and a good money management you will consistently start making over 5% per month – if the market permits!

Final Words

Forget about rich quick schemes with Forex. Those are all lies. But you can make it, but there is a bit of a learning curve to go through, but once you learnt, that means that you have now become independent for life since then you will be able to rack in money from the market consistently.

The market will become your ATM machine. But like anything else, you need to work hard to get results and forex is no exception. If you think that with forex you can get rich tomorrow, just forget it and go and do something else.

So are you prepared to learn? Follow me to the Basic Forex Course offered for free here in this thread – and start learning today!
 

lordoftruth

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E currency trading map

The following is your road map on how to become a real successful trader couple of months as from today.

Step 1

Understand the general idea of what is the Forex Market and its internal mechanics. To be honest it is a very simple concept.

Step 2

What time Forex can be traded? Forex market is actually 24 hours market, but certain currencies are best suited to be traded within specific hours of the day.

Step 3

Who is trading currencies beside you? Being an alley with the big dogs by trading in the same style they trade is key for success.

Step 4

Which are the most popular currencies? Starting to trade with the major pairs is of paramount importance and EUR/USD is the best currency to start with.

Step 5

There is a list of fundamental requirements that are needed so you can start trading. Read the article to find out. Too much to repeat here again, sorry.

Step 6

You must have a reliable broker. Reliable in terms infrastructure, regulated and most importantly honest.

Step 7

You need to learn how to use the trading platform offered by your broker inside out.

Step 8

How shall we trade? Using Fundamentals or Technical Analysis or both?

Step 9

We need to find and trade using reliable profitable trading systems. These systems must be profitable in the long term. Do not expect that you will win every trade.

Step 10

You need to find your trading style. Are you a scalper, intraday trader or day trader? How will you fit in trading within your daily life?

Step 11

Trading Forex involves huge risks. Be careful to understand these risks.

Step 12

Further to Step 11 you need to have a solid money management plan and you stay disciplined and stick to it even when things are going wrong.

Step 13

Make realistic expectations of profit but only when you become profitable with consistency when demo trading. 3%-5% per month are realistic expectations. Yes we will not make millions as internet marketers say.
 

lordoftruth

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Forex trading tutorials

It is good to know the Forex Market is split into 3 major areas – Technical Analysis, Fundamental Analysis and Trading Physcology. You also need to learn the basics of trading.

Tip 1: Learn the Forex Basics

Before you start trading there are certain things that you need to know and learn. Learning and understanding the basic concepts is extremely important and the starting route that you need to take to become successful.

Tip 2: Technical Analysis

Technical Analysis is the study of charts and price action of any particular currency pair. This is very popular among traders. It involves finding the correct resistance / support lines, drawing of trend lines, use of indicators, pivot points and much more.

Tip 3: Fundamental Analysis

Fundamental Analysis in Forex is a type of market analysis which involves studying of the economic situation of countries. This will enable you to trade currencies more effectively. Figures and statements given in speeches by important politicians and economists known as economical announcements can have great impact on the currency market moves. In particular, announcements related to the US economy like Non-Farm Employment Change and FOMC are typical news releases that traders keep an eye on.

Tip 4: Trading Physcology

Having a great trading system and a large account it is pretty useless if you don’t control your emotions while trading. Most probably you will wipe out your account. You need to be disciplined and follow strict money management rules. Furthermore you need to control your fear and greed. Are you afraid to lose money, so you just let go by a good trade? Or are you in a trade and you are in profit and you want more profit? In the meantime the market turns around and now you are in a loss. You must be disciplined and follow your trading strategies.
 

lordoftruth

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Forex trading courses

Welcome to your training resources in which you are encouraged to read / watch and definitely learn – all for free. I am developing this material myself so please be patient until I write the content and develop a video where necessary. Similar material with probably lower quality or useless information is being sold elsewhere on the internet and some of them are quite highly priced. Here is all free. I got fed up with scams so here is all my knowledge that I have gained throughout my trading experience. Hope you will find it useful. I am sure you will!
You may find two courses below, a course for complete beginners and I am also creating a detailed technical analysis course.

This 18 lesson course is aimed for complete beginners. You will learn the most important things to become a real trader in clear simple way with examples. You will learn all what is needed to know on the Forex Market in general, most important currency pair, which and what time a currency pair should be traded, price quotes, bid and ask prices, lots, pips, leverage and a lot more. Start learning now!


Technical Analysis Course

This is where things starts getting interesting. This is an in depth course on technical analysis were we go through the tools that you need to master to become successful. How to find support /resistance lines, how to draw proper trend lines, pivot points and lots more is covered in the course. It is FREE as well.
 
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lordoftruth

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102
Forex Scams Tips

Tip 1

Make sure that there is refund policy. If so, read carefully the terms and conditions and how to claim your refund should be clearly outlined. If the refund is offered from a reliable source like Clickbank, it is even better.

Tip 2

Do not believe the claims and the potential profit that the seller is claiming. Most products fall short of thew claims. Read the article to see how for a beginner it is impossible to make $500 in 1 day.

Tip 3

Most testimonials you find on the marketing website are false, especially if the product is just released on the market. Beta testers do not exists for most of the products.

Tip 4

Reviews in the majority of the websites are biased and they do not own or have tried the product. They just want you to click and buy the product.

Tip 5

Don’t get blind with bonuses. Most of the time they are garbage!

Tip 6

Check if profit results are listed, see whether they are authentic or not. This is very difficult to get, especially where trading systems are involved, but for Forex Robots it is pretty simple – do not believe the back tests!
 

lordoftruth

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Messages
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Forex Scams

The Forex Market in particular is full of scams. In this article I will share with you some tips which will help you identify whether the product you are purchasing is worth your time to try it or not. I will explain in detail what things to look for that will simply alert you to take extra precautions. If you are just starting out in Forex, it is extremely important to stay away from crap products since you will be learning the bad things, and indirectly these will keep haunting you in trading for years to come.
Definitely there are good legit products, but most of the time these do not get the exposure they deserve. But unfortunately what arrives in your inbox on a daily basis are mostly crap products.

Forex Reality

The problem is that there are people who

0.5% really sell genuine products / services
70% sell CRAP products and they do it bluntly in a very unprofessional way…but you still buy this crap
29.5% sell CRAP products in a professional way.

The latter manage to build a great reputation on the internet where they portray themselves as being real traders and that they sell real profitable systems. Most often their systems are sold for over $1000. You may receive the system at home with in a nice package and all the crap, or a really sophisticated website with a number of videos and you don’t know from where to start.
Typically their blogs are full of great comments – like “I recovered the cost of the course in 2 days”, “I made $500 in my first trade”. You will also be flooded with emails saying that the system will not be anymore on sale, so buy the system now – you know this creates an urgency in you and you end up buying the system, since you think that you cannot lose the opportunity of your life – the chance to change your life. You know what I mean. And how many times have you been disappointed? I think 99% of the time. In the Forex market, it is 99% of the time, and if you are a beginner it is 100% of the time. And guess what? The system will be resold again (probably under a different name) a few months down the line. These kind of people are internet marketers and not traders and 3 names just came in to my mind right now. They sell useless systems every 2 months or so, and people like chickens buys these useless systems.
I don’t call these people scam artists, since they have a reputation to defend so they will refund your money IF YOU FOLLOW CLOSELY THEIR REFUND POLICY. So read the terms and conditions carefully. Eventually you will get refunded, but you will lose shipping cost and most importantly you will lose TIME and MONEY if you are so ‘idiot’ to trade live with their system. And normally the beginners will do trade live straight away since they are still brainwashed with the idea that this system should work, so it should be profitable. This is what they were promised. So they keep trying, they will get some good trades of course but in the long run, the system is just a failure. They lose money, they get demoralised and probably they quit trading.
Something else.. do you think that these internet marketers invented the systems themselves? No way! They found them for free in forums, did some tweaking and sold them to you for $1800 +. That’s the truth guys – sorry. And if the system is based on lagging indicators, it is nearly certain that the system will fail.

Things to look at prior you purchase of any forex robot or system

1) Refund Policy

Is there any money back guarantee in place? If so, for how long? Typically it is between 30 – 60 days from the date of purchase. Do you have time to test the system, read the ebooks or whatever you are purchasing?
With which company is the money back guarantee being offered? Ideally if it is through reliable companies like Clickbank and Plimus it would be even better. If not, make sure to read the terms and conditions and it is clearly explained what you need to do to get a refund.
The terms and conditions should be clearly written and I believe it is by law – but I stand to be corrected on this. Irrespective if it is by law or not, it should be clearly stated what you need to do to claim your money.
If it is not clearly put out for you, just close the browser.

2) Impossible Claims of Profit

You know why a beginner cannot make $500 in 1 day or 2 days? Let me tell you why. Do you really believe that the market gives money this easy? If so, everyone will be rich. Even if you have the perfect trading system with precise entry and exit rules, as a beginner you may still lose money. Why? Because a good system is just 1/4 of the whole story. You need
1. a good trading system
2. discipline (do not get greedy, or keep looses running etc.)
3. strict and effective money management
4. to be able to trade without emotions
But let’s assume that the system is so perfect that it has clear entry – exit points, and your emotions play no tricks on you. And before I continue, it is by professional traders’ law that while trading you never risk more than 2% – 5% of your capital per trade.
For a newbie to make $500 he needs to trade with 1 lot per trade. So if he risks 2% of his account, and has 35 PIP stoploss, he needs an account of $18,000 capital to start off with. How come? It is simple maths – 2% of $18,000 is $360, you will be trading with 1 lot, have a stoploss of 35 pips, so potentially you may lose $350. Now as a newbie do you really have that startup account? Furthermore if you see a trade going against you, do you have the nerves to control your emotions when you see your trade being -$280, be disciplined and have the balls to close your trade with -$350 loss later if it continues to go against you? – remembering you are just starting out. I am pretty sure that you will not have the mental strength to manage your trade properly. The trade may instead go in favour of you, and make 50 pips, for $500 profit. 50 pips profit is quite possible per trade, but my point here is that for a newbie, no way you will be making $500 per trade! It is impossible! (1 lot = $10 just to keep things simple)
OK, you may argue that he may have traded with smaller lots, so lets assume that he traded with 0.1 lots – fair enough. So this guy in his very first day has earned 500 pips – wow pretty impossible. Ask any real trader and he will simply tell you to f*** off. (0.1 lot = $1 just to keep things simple)
BEWARE: Crap systems have a stoploss of over 60 + pips, so you will be risking more. And if the system has an extremely bad risk to reward ratio you are in deep trouble.

3) Invented Testimonials

Another trick to be cautious of is on testimonials. If the system is brand new, how come you have valid testimonials? It is typical these days that for highly expensive systems, they create some kind of anticipation and they will start e-mailing about the system release some 3 weeks before.
On the day of release you will be bombarded with mails and messages stating that the system is live and you can now buy it. Of course they change the sales page, and here you go, you find testimonials on the page and the system has just gone live! Impossible! Do you think that these people got the system before to test it out? No way. Do not believe the crap.
Mind you, there are products with legitimate testimonials, but for this to happen the product should have been on sale for months – not just released!

4) Biased Reviews

It will be good to ask in forums about the product and the trader behind the product. Ask about the product, if any one has used it, and what are their views. Baby Pips forum is a great place to ask. If the product is real bad, you will notice it immediately from the comments. Sometimes however you may find conflicting information. Some people may have liked it, others not. You cannot please everyone in life, and in Forex this is even more valid, since every trader has his own trading style. So if the system is based on scalping strategy it will not go well with day traders. In this case you need to use common sense and evaluate from the comments if it is right for you or not. Remember to check always the refund policy.
It is always a good idea to see if the seller has other products for sale or if he has released other products in the past. Do the same search for reviews in forums. If you find bad reviews on the old products, what are the chances that the new product will be better? Nearly None!

5) Crap Bonuses

Most of the times the bonuses offered with inflated values are crap. Some books even have conflicting information with the product that they are selling. You will get nuts if you read them both.
It is really funny to read about the bonuses. They may offer free bonuses that also generate money for you. “Hey, wasn’t the system I am yet to buy from you generates money as well? So why do I need another system that generates money?”
Don’t be silly to think that with the added free bonus you will have two systems which generate money for you. If you are paying good money for a system that generates money, you do not need another one! Scam – run away!

6) Any Test Results?

If they provide test results on the sales page, do not just believe them. Evaluate the results. I know this is very difficult but at times you will find really conflicting information. Again ask in forums and get a feeling of how other people did with the product.
If you are into robots – and you definitely should stay away, do not believe back tests results. The results can be manipulated easily.

Is Your Forex Broker A Scam?

If you do an internet search on forex broker scams, the number of results returned is staggering. While the forex market is slowly becoming more regulated, there are many unscrupulous brokers who should not be in business. Fortunately, they eventually get weaned out. However, when you're looking to trade forex, it's important to know which brokers are reliable and viable, and to avoid the ones that aren't. In order to sort out the strong brokers from the weak, and the reputable ones from those with shady dealings, we must go through a series of steps before depositing a large amount of capital with a broker. Trading is hard enough in itself, but when a broker is implementing practices that work against the trader, making a profit can be nearly impossible. (For forex trading tips, check out Top 4 Things Successful Forex Traders Do.)

Separating Fact from Fiction

When faced with all sorts of forums posts, articles and disgruntled comments about a broker, we must remember that many traders fail and never make a profit. Many of these disgruntled traders then post content online that blames the broker (or some other outside influence) for their own failed trading strategies. Thus, when researching a potential forex broker, traders must learn to separate fact from fiction.

In many cases, it may seem to a trader that a broker was intentionally trying to cause a loss. Complaints such as: "As soon as I placed the trade, the direction of the market reversed;" "The broker stop hunted my positions;" or "I always had slippage on my orders, and never in my favor" are not uncommon. These types of experiences are common to all traders, and it is quite possible that the broker is not at fault.

New forex traders often fail to trade with a tested strategy or trading plan. Instead, they make trades when psychology dictates they should. If a trader feels the market has to move in one direction or the other, there is a 50% chance he or she will be correct. When the rookie trader enters a position, often he or she is entering right at a time when their emotions are waning; experienced traders are aware of these junior tendencies and step in, taking the trade the other way. This befuddles new traders and leaves them feeling that the market - or their brokers - are out to get them and take their individual profits. Most of the time this is not the case, it is simply a failure by the trader to understand market dynamics.

On occasion, losses are the broker's fault. This can occur when a broker attempts to rack up trading commissions at the client's expense. There have been reports of brokers arbitrarily moving quoted rates to trigger stop orders when other brokers' rates have not gone to that price. Luckily for traders, this is not likely to occur. One must remember that trading is usually not a zero-sum game, and brokers primarily make commissions with increased trading volumes. Overall, it is in the best interest of brokers to have long-term clients who trade regularly and thus sustain capital or make a profit.

The slippage issue can often be attributed to a psychological phenomenon. It is common practice for inexperienced traders to panic; they fear missing a move, so they hit their buy key; or they fear losing more and so they hit the sell key. In volatile exchange rate environments, the broker cannot ensure that an order will be executed at the desired price. This results in sharp movements and often slippage. The same is true for stop or limit orders. Some brokers guarantee stop and limit order fills, while others do not. Even in more transparent markets, slippage occurs, markets move and we don't always get the price we want. (Learn about different forex trading strategies in Place Forex Orders Properly.)

Therefore, often what is perceived as a scam is just the trader not understanding the market he or she is trading.

The Real Problem

Real problems can begin to develop when communication between a trader and his or her broker begins to break down. If a trader does not get email responses from his or her broker, the broker fails to answer the phone, or provides vague answers to a trader's questions, these are red flags that a broker may not be looking out for the client's best interest.

Any arising issues should be resolved and explained to the trader and the broker should also be helpful and display good customer relations. One of the most detrimental issues that may arise between a broker and a trader in this case is the trader's inability to withdraw money from a trading account.

Five Chart Patterns you need to know…
Protecting Yourself
Protecting yourself from unscrupulous brokers in the first place is ideal. The following steps should help:

_Do an online search for reviews of the broker. Take what is said and filter it based on what was said in the first section; could this be just a disgruntled trader? In the same search, find if there are outstanding legal actions against the broker.

_Make sure there are no complaints about not being able to withdraw funds. If there are, contact the user if possible and ask them about their experience.

_Read through all the fine print of the documents when opening an account. Incentives to open account can often be used against the trader when attempting to withdraw funds. For instance, if a trader deposits $10,000 and gets a $2,000 bonus, and then the trader loses money and attempts to withdraw some remaining funds, the broker may say he or she cannot withdraw because the bonus cannot be withdrawn. Read the fine print and make sure to understand all contingencies in regards to withdrawals and whether incentives impact withdrawals.

_If you are satisfied with your research on a particular broker, open a mini account or an account with a small amount of capital. Trade it for a month or more and then attempt a withdrawal. If everything has gone well, it should be relatively safe to deposit more funds. If you have problems, attempt to discuss them with the broker. If that fails, move on and post a detailed account of your experience online so others can learn from your experience.

Note: It should be pointed out that a broker's size cannot be used to determine the level of risk involved. While big brokers get big by providing a certain standard of service, the 2008-2009 financial crisis taught us that a big or popular firm isn't always safe. (If this seems a little over your head, check out our Forex Walkthrough Charts, Economics, Trading, or you could start at Beginner.)

What If You're Already Stuck With a Bad Broker?

Unfortunately, options are very limited at this stage, however, there are a few things you can do:

Read through all documents to make sure that your broker is actually in the wrong. If you have missed something or failed to read the documents you signed, you may have only yourself to blame.

Be stern with your broker, but not rude. Point out the course of action you will take if he or she does not adequately answer your questions or provide a withdrawal. Steps may include posting comments online, reporting the broker to the regulatory authority or marking them as a scam on forex "policing" sites such as https://www.forexpeacearmy.com/

Summary

Supposed scams are often nothing more than traders not understanding the markets they are trading, and then blaming the broker for their losses. But there are times when brokers are at fault. A trader needs to be thorough and do research on a broker before opening an account. If the research looks good, then a small deposit should be made, followed by a few trades and then a withdrawal. If this goes well, then another deposit can be made. If you are already in a problematic situation, you should verify that the broker is doing something illegal, attempt to have our questions answered and if all else fails, report the person to the regulatory body.


Final Note

So are there any good products out there? Yes there are but as I said they don’t get too much promotion. Also by demo trading yourself you get the feel of the market and what is going on. So by yourself you will start filtering crap products automatically.
There is nothing bad to try the product if you can’t tell if it is of value or not. Just always check the refund policy. Request a refund if it is of no value to you – simple. Of course be a gentleman and do not request a refund if the product is good.
Be careful guys. Too many sharks out there.
 
Last edited:

lordoftruth

Private, 1st Class
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Forex for beginners course

Welcome to the Forex for Beginners course. As a reminder the course is aimed for complete beginners. I tried to keep the lessons short and to the point giving out clear examples and videos where required. I like feedback! Please do let me know if you that there is something not well explained, or need further examples or explanation or you want a topic that you should like to cover.Enjoy your learning!


Lesson 1. Trading Currency Pairs

trading currency pairs Forex for Beginners
In this lesson we explain which currencies are the most liquid, most volatile and the best currencies to trade for a beginner. We also explain why major and exotic currencies are.

Lesson 2. What is scalping?


what is scalping for Beginners
In this tutorial we give a brief overview of what is scalping, how can you trade it and what is expected from you as a scalper.

Lesson 3. Intra Day Trading

intraday trade Forex for Beginners
In this tutorial we give a brief overview of what is intra day trading, how can you trade it and what is expected from you as an intra day trader.

Lesson 4. End of Day Trading

end of day trading Forex for Beginners
In this tutorial we give a brief overview of what is end of day trading, how can you trade it and what is expected from you as an end of day trader.

Lesson 5. Traders Psychology

traders physcholoy Forex for Beginners
Scalping, Intraday trading and end of day trading. Which one suits your personality and lifestyle?

Lesson 6. Best Trading Hours

forex market trading hours Forex for Beginners
In this tutorial we see which is the best time of the day to trade the major currency pairs.


Lesson 7. How to interpret Prices of Currency Pairs


currency exchange prices Forex for Beginners
How can you read and interpret the price quotes shown by brokers? Lets see how…

Lesson 8. Forex Pip

forex pip Forex for Beginners
What is Pip? Lets explain what it is since this is the most important term that you need to understand.

Lesson 9. Bid Ask Forex Prices

bid ask forex prices Forex for Beginners
In the Forex Market actually there are two price quotes – the bid and the ask prices. What is the difference between them? Why we have two prices?


Lesson 10. Broker Spread

broker spread Forex for Beginners
Every trader speaks about the spread. What is the broker spread? How it effects you?

Lesson 11. Currency Leverage and Margin


broker leverage Forex for Beginners
Brokers offers high leverage even to beginners. You will see leverage advertised in every broker’s adverts. What is leverage? How does it effect you? Is it good to have high leverage?

Lesson 12. Forex Lots

forex lots Forex for Beginners
By now we learnt what a pip is, the bid and ask prices and the spread. Now it is time to learn what lots are.

Lesson 13. Forex PIP Value


forex pip value Forex for Beginners
Knowing how much 1 pip is valued in the currency trading pair that you are trading is extremely important for money management. See how easy it is to calculate the pip value in this tutorial.

Lesson 14. How to Calculate Profit and Loss


how to calculate profit and loss Forex for Beginners
Although measuring your profit and loss is done in pips, it is good to know how much money you have lost or profited in your real currency. So let’s see how we can calculate the profit and loss for your trade.

Lesson 15. Currency Trading Platform

currency trading platform Forex for Beginners
You can’t trade without a trading platform. The trading platform software is provided by your broker for free. However which features a trading platform must have to be of any use?

Lesson 16. Forex Bar Charts

forex bar charts Forex for Beginners
Using Bar Charts is one way of studying and analysing charts. In this tutorial we will go though the basics of bar chart patterns and how they are used.

Lesson 17. Candlesticks Charts

candlesticks charts Forex for Beginners
Candle sticks charts are more popular than the Bar Charts and there are a lot of studies about the candlesticks patterns like for example patterns that may indicate trend reversal. In this tutorial we will go though the basics of candlesticks patterns and how they are used.

Lesson 18. Bars or Candlesticks Charts?


forex bar charts candlesticks charts Forex for Beginners
After knowing the difference between Bars and Candlesticks charts, which one to use?​
 
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