subject: Generate Positive Returns Every Month With Forex Trading System Consistently [print this page] Generate Positive Returns Every Month With Forex Trading System Consistently
As a trader your ultimate goal is to be successful, to make money. While it's ok to make small losses from time to time, over a period of a month they should not be more than your profits. In this brief analysis we will look at how you can generate positive returns every month with a forex trading system. I will also be discussing about a high quality Forex software that is making me consistent returns every month.
If you are not familiar with forex trading or systems, let's briefly explain what it's all about: The term 'forex' simply stands for foreign exchange, that is foreign currencies. A forex trader is therefore someone who trades in foreign exchange. A trading system is the set of rules such a trader uses to guide him when he trades. It prevents him from making emotional decisions.
Traders will make use of technical or fundamental indicators when they develop their systems. A trader can for example have a rule saying that he should enter into a trade as soon as a specific currency start trading above its three week moving average and exit the trade again when the price drops below that level.
His system will also clearly spell out how much he should risk on any one trade. This is to stop him from risking his whole trading account on a single trade and thereby potentially wiping out everything he has to trade with. Many professional traders will never risk more than 2% of their trading account on any one trade.
Once the trader has compiled a set of rules that govern his trading activities, it's best to put it in writing. This set of rules is then called his trading system. It can be changed over time, but on any specific day the trader should closely adhere to the rules of the trading system.
One can nowadays buy a large number of automated trading systems on the Internet. If such a system has been developed by a professional trader, it can take many of the uncertainties out of trading for a novice trader. The system should clearly indicate when to buy, when to sell and how much to invest.
Sometimes an automated system is what is referred to in the industry as a black box system - it provides trading recommendations without saying why. If it works and you make lots of money, you probably won't care. If you are a novice trader and you want to learn how to trade yourself, it's better however to get an open system that will explain the reasoning behind its trading recommendations. Your ultimate goal remains to get to a point where you generate positive returns every month with a forex trading system, whether you developed it yourself or you bought it from someone else. I personally made more than 8 times on my money using a Forex automated trading robot.
