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Pursuing the Perfect Day Trading Forex System

Creating a better day trading forex system is always possible, for many traders. Much like business success, different personality traits are needed. The people who make it in the business world are not the ones having the best university degrees. But rather the ones that are bold in taking new risks. A good day trading forex system is not that different to a new business challenge. The creator of that system has to be bold enough to break barriers and look beyond the obvious. Many other traders fail to develop such systems because of lack of confidence. Even though they are educated, they are simply afraid to take unknown risks and handle the day trading pressure. Wise forex CFD traders take day trading very seriously, but lightly at the same time. They are capable of developing CFD trading systems of extremely high dependability. The whole purpose of having such a system is to feel safe and comfortable. This is their first concern. And because dependable day trading systems treat each trade as unique. They are the closest one can have to a perfect system. Generic systems on the other hand only scratch the surface of the markets. And they fail far too often, as market volatility fools them very easily into giving the wrong signal. There is no unique way to figuring out the best forex trading strategy. Many different concepts and methods of analysis may lead to identical trading signals. This is because there is an underlying truth in the market charts. And this truth is hard to find just by looking at the charts through a simple, naive mindset.

Profitability of a Good Day Trading Forex System

Any good day trading forex system typically focuses on very few currency pairs, and is not generically used on all pairs. A system expected to predict 20 different currency pairs, through the same methods of analysis, is bound to be a generic system. And it will be defeated by the markets sooner or later. An efficient day trading system focused on a single currency pair can be very selective. And hence very profitable. Not because it will have many winning trades, but because many losing ones are cleverly avoided. That’s how the best forex trading strategy can really be made possible. It’s far more important to focus on avoiding losers, than on picking more and more new entry points. The profitability of such systems and strategies can be so big. That it is practically possible to start with a $5,000 CFD forex account and make over $100,000 in just over a year.

A Perfect Day Trading Forex System — Achievement requires being an expert. All successful professionals are specialists in one field. Traders are not different. If a forex trader is enough of a specialist, earning $100,000 a year is a perfectly realistic goal.

Traders Need to Pursue Realistic Goals

Traders need to define their goals well. And doing so requires clarification of facts, as to what is and what isn’t realistic. Traders who learn forex basics dream about making $100,000 in their first year. The money figure is not totally unrealistic, but their judgment on the markets and their skills, probably is. While, for a slightly more experienced trader, one who has traded for 2 years or more. The goal of having a very profitable year, reaching $100,000 in profits may be realistic. What differentiates realistic goals from pipe dreams is the gravity of the trading system. This alone reflects many key skills that the trader will have. Profitable forex trading systems have huge complexity, which varies from day to day. But if the trade is too hard to figure out, complexity can run in great depth. Poor trading systems on the other hand are generic, simple, and fail to handle the huge complexity of the markets themselves.

Learning through a CFD Trading Demo Account Online

Learning with a CFD Trading Demo Account

A modern CFD trading demo account offers more than just basic training. On how to use the real thing later on. A demo account triggers the creativity in the minds of new traders, in unique ways. And because it’s CFDs that are traded, it helps explore so many new possibilities. Classic stock investors have the chance to evaluate their hedging skills, and reassess the management of their entire stock portfolios. A CFD trading demo account takes them out of the stone age of stock investing, and many years into the future. This future is the result of globalization and better financial trading infrastructure. An inevitable, natural evolution which investors and traders cannot afford to ignore. Online CFD trading has helped many stock and commodity investors reinvent their portfolios and their strategies. And the first steps and possibilities were explored through a humble demo CFD account.

Online CFD Trading Demo Account — Hedging ideas for stock portfolios rely on the fact that metrics such as momentum are not symmetrical. If things were smooth and symmetrical all the times, then hedging would not be possible, as not only losses but also profits would be exactly offset by hedging trades at all times.

Where a CFD Trading Demo Account Can Take You

A good CFD trading demo account will help you unlock a lot of your hidden creativity and investing potential. Because CFDs are highly beneficial. And they are much more than the average investor gives them credit for. More specifically, CFDs allow wise investors and traders to hedge a huge part of market risk. Thereby giving them an edge, that seems almost unreal. But it is 100% real! Hedging and advanced hedging is what sophisticated hedge funds do. And in fact, CFD traders are at even more advantage over many large size hedge funds. Because really smart hedging techniques are not possible to scale up to millions of dollars. Today’s online CFD trading provides most liquidity to small traders and investors. But the margins of liquidity are still way too large for most retail traders. The elusive dream of trading online made easy has no place in the serious trader’s mind. Serious, wise traders are willing to work hard to achieve their goals. And works starts with a demo CFD account, where different what if scenarios are scrutinized. It’s not really easy, and it takes effort and dedication. But the potential rewards are enormous. One only needs

The Hidden Benefit of Simulation

The hidden benefit of simulated CFD trades is that the traders are able to shorten their learning curve each and every time. Hedging techniques that would otherwise have taken years to figure out, only take weeks. CFDs reveal their edge when one digs deeper into market volatility, momentum and asymmetries in those metrics. A CFD trading system developed for hedging, takes advantage of these market facts. CFD simulated trading through a demo account, in the hands of a wise trader, can deal with exactly these kinds of tasks. Moreover, things work this way because classical statistics doesn’t recognize the fact that the markets exhibit such asymmetries. Where event A becomes more probable than event B. Classical statistics is based on the concept of large samples, long time frames, and that the probability of the market moving higher or lower, is 50% at all times.

Trading CFD without Leverage

Trading CFD with low, or no leverage at all is a good choice in some cases. Especially in CFD accounts where the objective is to trade commodities or certain types of stocks. Some stocks for example, such as penny stocks and low price stocks in general are easily affordable at 100% of their value. So not using leverage allows the trader to feel comfortable without worrying about having to meet margin calls. Trading CFD is extremely profitable in the case of low price stocks, in the hands of even partially experienced traders. These stock traders don’t fit the profile of neither classic traders nor that of classic investors. Rather, they are somewhere in between, and their CFD trading systems use logical analysis of all levels. Such stock traders may have small or even large trading accounts. They simply don’t want to worry about potential margin calls. So they use low leverage, or no leverage at all. And apply similar money management that classic buy and hold investors have been using for years. Online CFD brokers facilitate very good trading conditions which make profitability possible. Above all, they like stock trading of this type, because each stock has a different story to tell. And each company is chosen and analyzed by different criteria. This is why logical analysis prevails over all other, one-sided analysis methods.

Trading CFD with no Leverage — New ideas may be new products and breakthroughs of new companies, after the IPO. Or new strategies of long established companies with small past success, which have deceptively cheap stocks. If the company becomes a takeover target, the stock will go up. But even without a takeover, profitability for such a company may be huge. Due to not having good prior economic numbers, classic valuation models will tell you that such a stock is worthless (no past sales, low profitability etc). Only logical analysis investors will figure it out, and will also make non-leveraged, affordable CFD purchases on that stock, because it will be a cheap stock to buy.

Trading CFD through Logical Analysis

Trading CFD through logical analysis is all about company uniqueness. So that two companies in the same sector are never considered to be alike. Hence their stocks are expected to perform differently as well. Logical analysis is about analyzing technological trends. And how technology and new products render other products obsolete. Most of these trades are based on time frames of around one year long. But many more smaller weekly and monthly trades can be made over that period. Stock CFD traders want to see stable trends, and trades they understand. Penny stock trades also work the same way. As most penny stocks are relatively new stocks, without much prior history. Classic stock valuation models will tell you that such stocks are worthless, or that are exactly right priced. But these models fail to deal with logical analysis, and always fail to predict penny stocks that break out. In general, it is not wise to apply technical analysis or fundamental analysis to any new, low price stock. The question is what does the underlying company do, and how likely it is to succeed. If it is going to be successful, most classic analysts will be oblivious to the signs. Stock traders can infer good CFD trading signals from this logical analysis. And because most of these stocks are very cheap, there is no need for much leverage.

A Simple Forex Trading Strategy

Crude oil can offer a simple, reliable forex trading strategy through the inversely correlated USDCAD currency pair. This pair trades so that it trends to move in the opposite direction that crude oil moves. And because crude oil is a relatively fundamentally stable commodity, it offers many great trends. More specifically, crude oil tends to set either linear directional trends, or range-bound sideways trading. In both cases, traders can trade USDCAD with a lot of confidence which is not found in any other pair. Foreign exchange currency trading online for beginners can be based exclusively on USDCAD and crude oil. While wise CFD traders can also temporarily hedge uncertain trades on USDCAD through trades on crude oil. There is no need to diversify into other commodity currencies either, as this will overwhelm the new trader. But one commodity such as crude oil, is quite unique, and offers all the profit potential one will ever need. Traders can make serious money trading USDCAD alone, and doing so on more than one time frames. They can practice currency trading in various ways, all focused on USDCAD. And the deeper they are able to dig in this specific currency pair, the more the will be able to handle risk and market uncertainty. A forex trading strategy doesn’t have to include many currency pairs. But it can include one commodity and one related currency pair alone.

The USDCAD Forex Trading Strategy

The SUDCAD forex trading strategy is nice for various reasons. The most important is the solid trend that crude oil provides from time to time. Since the entire crude oil industry is behind these trends. And this is in huge contrast with other currencies that are very country-specific, and therefore inherently less stable. And being less stable means that fundamental factors can create sudden movements in a currency pair. Movements that will easily defy all technical analysis. A good forex trading business opportunity for many beginner level traders can be perfectly based on USDCAD. But apart from crude oil itself, traders can enhance such strategies further by looking deeper into the US dollar. The US dollar cannot change the solid trends of crude oil. But it can nonetheless have day to day impacts on crude oil price, and also on USDCAD. Traders can use these intraday extreme price swings to make day trades. It also helps to know that one day’s extreme price action cannot possibly change the daily trend. And a lot of research has to be focused on the daily charts of these markets. Intraday movements are mostly caused by news, and only last for few hours to a single day. Counter-trend movements lasting for several days are corrections of the major daily trend itself, and are natural and expected to happen. But even these can be predicted to quite an extend.

CFD Trading Simulator for Pros

Traders can use a CFD trading simulator, which is either provided by their CFD broker as a virtual trading platform. Or through other available software, which accurately simulates the real thing. A good CFD trading simulator will cover the requirements of all tests. Good CFD trading systems can be based on simple logic, little curiosity, and few basic calculations. The tests needed to confirm these systems against real market movements are quite realistic. Since they include all the effects of volatility and the most unexpected moves. The concept of trading online made easy by practicing through simulation tests is real for many traders! Trading does in fact become easy, but that’s only because the hard work has been done in advance, during these tests. There is no free lunch and effortless trading. There is however well prepared trading, which does in fact work very well. Critics of paper trading argue that using a simulator is not real trading, and therefore it cannot provide serious trading. But that’s just their opinion, and is actually a premature assumption on their part. The fact is that paper trading is subject to less emotional pressure, and the testing trader actually takes more risk. Risk they would not take directly on a live account. All wise traders have used simulation software and have done paper trading at some point. After all, even a thought process is actually a simulation of reality. And there is nothing wrong with testing assumptions and ideas. In fact, even bad ideas that eventually fail, do help one’s creativity and original thinking. Wise CFD traders are wise only because they think wisely, accept failure, and are not afraid to fail again and again. And much of this is done in a demo CFD account. So that eventually they can trade a live account with confidence. Critics of paper trading do not realize that both live and demo accounts deal with the same, real underlying market. And in fact, many good trading systems are left unused by potential investors. Only because they wouldn’t allow a demo account trader to trade with their money. So instead they wait to find the super successful live account trader, to do their trading. Except that this trader never comes, either because they don’t exist, or because they prefer trading their own account.

Online CFD Trading Simulator — We are simulation machines anyway, and all our thoughts help simulate real world ideas. So critics of simulated trading talk nonsense. How real something is depends on how good the observation is. Even live account trading, under poor observational conditions, will not help the trader develop. It’s that critics cannot handle the truth, the truth that an under-financed trader can outperform their big size trading.

What a CFD Trading Simulator Does

A CFD trading simulator offers traders unique insights into techniques for handling open losing trades and uncertain trades. It’s not about handling winning trades, anyone can close a profitable trade and lock-in the profit. The hard task is dealing with risk, and losing trades. Simulated trading allows wise CFD traders to solve much of this problem. And to also make the transition from being an average trader to being among the pros. And even pro level traders continue to test new ideas once in a while. As curiosity never stops, it’s just that they become more selective traders through more and more experience. And the learning curve required devotion and accepting failures. Trading CFD for dummies is actually possible and not a far fetched scenario, and this is about profitable trading. This is because beginner trader have the curiosity to test their ideas on a demo account. And they can move fast onto trading a live CFD account. As CFD trading is very affordable, and trading size can be small. The live account trading experience, even at small size can offer all the money-related emotions that demo trading doesn’t offer. So the two accounts together make up a complete experience which does deal with the unforgiving reality of the financial markets. And it is unforgiving because there is no much room for mistakes. Wise traders learn from their failures, and move on. While easily intimidated traders quit before the battle even begins. And they are easily intimidated because of not having done sufficient, well observed simulated trades.

Where can I practice Currency Trading Effectively

New traders who ask the question of where can I practice currency trading wisely, should focus on their choices first. So as to settle down with one strategy that best matches their needs and comfort zone. Before even asking the question where can I practice currency trading wisely and efficiently, they have to know more about themselves. Learning from other trader’s mistakes is very difficult, because nobody can get into the mindset of another trader. We can only make assumptions about the way they think and make trading decisions. Learning from other people’s mistakes is very difficult when it comes to trading. New traders can practice currency trading through a CFD demo account, and come face to face with the tough reality of the forex market. They can make mistakes and place losing trades, and learn from each one of them. In fact, losing trades teach you a whole lot more than any profitable trade ever will. So losing trades and failures are good, especially during your first steps. Attempting to do fast trading, such as day trading forex live, will teach you many lessons. You as a new trader get to see that the markets are really hard to trade, and intimidating in nature. There goes the myth about trading online made easy. Trading can actually be made easier, but the trader needs to do the hard work and pave the way for success. In any case, it helps to remember that losing trades and bad decisions are your biggest friends. Because you will tend to remember those at the right time, and improve your trading. There is no reason to be embarrassed about failure. In fact, all stable forex trading systems are based on such stability, which arises from the losing trades, not the winning ones. Winning trades provide the money, losing trades provide stability through their reality check.

Where Can I practice Currency Trading online? — Failures are eye openers, and help you become very objective and ultimately avoid much bigger failures in the future. Successes on the other hand cause complacency! That is why losing trades perform a reality check on your trading, and are very valuable.

Where Can I practice Currency Trading and Eliminate all Failures?

They say practice makes perfect, but on the question of where can I practice currency trading so as to gradually eliminate all failures… The answer is on a small live CFD account! A demo account will also work just fine. But a small live account will also help you handle psychological pressure to some extent. Actual psychological pressure varies from trader to trader, for many traders a small live account is not that different to a demo account. One needs to be careful, and take this risk. As putting some money on the line will help them get used to managing stress and risk. Forget all about easy and fast, such as the trading online made easy notion. During your first steps as a trader nothing will be really easy, and the only thing that can happen fast is blowing your account entirely! As with all things in life, there are very few ways for things to go right, and a million ways for things to go wrong. It’s a law of the physical world. So when one embarks on forex trading, the going will be tough and extremely challenging. Things don’t become easy for at least a couple of years. It is impossible to train so well on a demo, or small live CFD account, so as to eliminate all failures. It is impossible to train perfectly, even a period of 2 years will not suffice. Just remember that losing trades will always be there, and that deep down, they are not bad at all.

How Much Training Do I need?

Forex training could last for anything from few weeks to several months. There is no ideal amount of time. Neither there is a requirement to focus on one or two foreign exchange currency symbols all the time. Training is about exploring many different currency pairs, trading methods and ideas, and expanding your horizon. Profitable traders never even knew in advance which way they would eventually go. Most profitable traders had loose plans, they set out to become day traders, and became swing traders. They set out to trade EURUSD, and end up trading totally different pairs. Their early training helped them make these decisions, based on reason and deeper observations. You can keep on training until you find your own comfort zone, there are no restrictive rules to abide by.